The Vietnamese government has offered HCM City special financial and budgetary policies and incentives to improve its infrastructure to maintain its status as the country's economic hub.
Under a new decree, the city will be eligible for receiving advance payments from the state and lending sources to hold auctions of land-use rights, after which it will refund the state and repay the loans, Vietnam News Agency reported Wednesday.
The government has also prioritized official development assistance (ODA) funds and preferential capital sources for projects related to urban infrastructure and environmental protection.
In addition, Ho Chi Minh City will be allowed to mobilize investment from public-private partnerships (PPP) and other public-private funding models.
The city needs a 500 trillion Vietnamese dong (23.5 billion U.S. dollars) to invest in urban infrastructure between now and 2021, according to the Ho Chi Minh City Finance and Investment Company.
Experts said the government could giveHo Chi Minh City a bonus if its tax collections exceeded expectations. They also said the city should have more autonomy to regulate expenditures and spending in accordance with its needs, with priority given to new construction and renovation and infrastructure development.
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