Proposing Ho Chi Minh City to pilot an urban model developed according to traffic projects

27/04/2023
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Ho Chi Minh City will be piloted to develop an urban model according to traffic projects, pay in cash for projects under BT contracts, as well as have a special mechanism to attract talents and make strategic investments.

This content is stated in the draft Resolution on specific mechanisms and policies for the development of Ho Chi Minh City, submitted by the Government to the National Assembly on April 19. This resolution, when approved by the competent authority, will replace the Resolution 54 implemented over the past 4 years, to create a more breakthrough mechanism for the city.

The new point in this draft is that the Government proposes to Ho Chi Minh City pilot urban development in the direction of traffic development. That is, the city will mobilize socialization resources to invest in projects in the vicinity of urban railway stations No. 1 (Ben Thanh - Suoi Tien), No. 2 (Ben Thanh - Tham Luong) and intersections. belt line 3.

To do this, the draft Resolution proposes to allow the separation of compensation and resettlement support of neighboring projects into independent projects with no capital size limitation (the Law on Public Investment currently only allows separating site clearance projects from national important projects - group A projects - capital of 10,000 billion VND or more). The city's budget will be used to make these independent public investment projects, in order to create a clean ground for the auction of land plots, resources to implement large-scale transport projects and synchronously between urban development and urban development. market and traffic.

Currently, some countries such as Singapore and Hong Kong (China) apply similar policies.

The draft resolution also states that projects in the fields of sports, museums, cultural industries, etc. with an investment capital of at least VND 100 billion will be invested under the method of public-private partnership (PPP).

According to the Government, the regulation of the minimum total investment of PPP projects in the above fields is to attract private investment resources, but avoid rampant investment and uncontrolled risks. PPP projects involve obligations of the public sector (investment guarantees, revenue risk sharing mechanisms).

The Government also proposed for Ho Chi Minh City to pilot the use of budget capital, investment preparation capital and budget estimates to pay project investors under BT contracts.

Investment projects to build, upgrade, expand and modernize existing works shall be piloted to apply BT contracts. The city will increase the state capital ratio to a maximum of 70% of the total project investment, if the cost of the premises accounts for more than 50% of the investment capital, the ability to complete the project is not guaranteed.

In addition, Ho Chi Minh City will be allocated sources to increase local budget revenue outside the capital allocated in the medium-term public investment plan; allocate capital to arrange support for poverty reduction and job creation. In which, it is expected that the city's revenue increase of about 119,000 billion VND will be arranged for key and urgent projects. The City Council will actively decide when to allocate these capital sources.

Regarding the financial and budgetary mechanism , the draft allows the People's Council to decide to adjust the level or rate of fees and charges not yet in the list. The city budget will enjoy 100% of the additional revenue. Regulations on budget estimation and allocation will also be ensured in line with the orientation of budget restructuring, socio-economic development and important fields.

Ho Chi Minh City will be able to use the residual salary reform source to invest in infrastructure and spend additional income; increase spending on investment and procurement.

The city's total loan balance is increased, up to 120% of the budget revenue according to decentralization. Annually, the central budget will supplement Ho Chi Minh City not more than 70% of the increase in revenue from the revenues divided between the central and local governments.

In addition, the District People's Committee will be allocated an unallocated amount of 2-4% of the total district budget expenditure to spend on preventing, combating and overcoming consequences of natural disasters, disasters, epidemics, hunger relief, national defense and security tasks. security.

Regarding social housing development , the draft resolution provides a mechanism to increase supply for this real estate market.

According to the housing development plan for the period 2021-2030, Ho Chi Minh City is expected to have 2.5 million m2 of residential floors with 35,000 units. But in the past two years, the city has only had a completed social housing project with 260 units. Most of the projects are carrying out investment procedures.

To remove obstacles for this type of real estate, the Government proposed to allow Ho Chi Minh City to approve the planning and arrange the social housing land fund in the commercial housing project. The land price adjustment coefficient will be developed, promulgated by the city and applied to the calculation of land use levy and land rent. The compensation for land can be made in cash according to the land price of each type of land recovered; allow the collection of annual land rent.

Regarding the mechanism with priority industries to attract strategic investors, the focus is on the areas that Vietnam is prioritizing, such as semiconductors, chip production, new materials, new battery technology.

The Government also proposes a series of policies to attract talented people for the "leading" economy in the South, such as exempting personal income tax for 5 years with salaries and wages of experts, scientists, and people with special talents. In particular, creative start-up individuals work at innovative start-ups...

Innovative start-ups, innovation centers, and high-tech parks can enjoy a 4-year tax exemption and a 50% reduction in corporate income tax payable for the next 9 years.

The People's Council of Ho Chi Minh City decides on the criteria and conditions for experts, scientists, people with special talents, and creative start-ups to enjoy incentives. The city also regulates salaries, wages, welfare regimes, and preferential policies for leadership positions in public science and technology organizations based on qualifications, capacity and job requirements.

It is expected that the draft resolution on specific mechanisms and policies for Ho Chi Minh City's development will be considered and approved by the National Assembly at its meeting in May.

Quote source: Vnexpress.vn