The Government proposes 27 new policies for Ho Chi Minh City, autonomy in the arrangement of social housing land fund, mechanism to attract FDI

Presenting a report on the draft Resolution of the National Assembly on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City at the National Assembly meeting on the morning of May 26, Minister of Planning and Investment Nguyen Chi Dung said: In the Draft, the Government has submitted to the National Assembly 27 new and breakthrough mechanisms and policies that have spillover effects for Ho Chi Minh City.

The new policies for Ho Chi Minh City are designed to create conditions for the city to promote its role as a locomotive, leading the economic development of the country.

27 new policies, autonomy for Ho Chi Minh City

In which, there are a number of notable policies such as: In case Ho Chi Minh City is expected to have local budget revenue to arrange an increase in development investment spending in the medium-term public investment plan, it must be implemented before the distribution of funds. this revenue will be allocated to new projects, supplemented to the medium-term public investment plan, used as the basis for annual capital allocation, and reported to the National Assembly in the last year of the medium-term public investment plan.

The city may use the public investment capital of the city budget to entrust the Vietnam Bank for Social Policies to provide loans to support poverty reduction and job creation.

The Government also proposed Ho Chi Minh City to pilot the model of urban development oriented to traffic development (TOD): Using the local budget to implement independent public investment projects to carry out the work. compensation, support and resettlement for investment projects in the vicinity of railway stations, and in the vicinity of intersections along the Ring Road 3 for land acquisition and resettlement on site and create a land fund for auction to select investors in urban development projects.

Also, it is regulated on conditions that need to be met at the same time for organizing bidding to select investors to implement projects using land.

The draft also stipulates that Ho Chi Minh City is allowed to expand the field of application of investment under the PPP method for investment projects in the field of sports and culture and can proactively stipulate the size of the minimum total investment of the city. these PPP projects.

The city may apply a BOT contract to an existing road work project with the implementation conditions ensuring the interests of the people; To carry out investment projects under the BT Contract with money from the City budget. The city may use the local budget to implement regional and inter-regional road traffic projects and works; support other localities in the country and some localities in other countries.

The Government also proposed that Ho Chi Minh City regulate mechanisms and policies to free up resources for the Ho Chi Minh City State Financial Investment Company (HFIC), including increasing charter capital from revenue from equitization of enterprises. 100% state capital belongs to the city, from the remaining profit of HFIC after setting up funds. The People’s Committee of Ho Chi Minh City is also allowed to allocate public investment capital to support interest rates for investment projects loaned by HFIC in the priority areas of socio-economic development in the area.

The collection of money for maintenance and reconstruction of infrastructure of industrial parks and export processing zones from enterprises in the zone and the issuance of the Regulation on revenue and expenditure, ensuring transparency is also assigned to Ho Chi Minh City.

In particular, the Government proposed to allow pilot financial mechanism to implement measures to reduce greenhouse gas emissions according to carbon credit exchange and offset mechanisms; carbon credits are traded with domestic and international investors; The revenue from carbon credit transactions is 100% of the City’s budget revenue.

Allowing the use of roofs of administrative offices, public service units of agencies in the city to install solar power systems to provide electricity for the operation of the headquarters. . Specifying cases of national interest and community interest when adjusting construction and urban planning.

Regarding the regulations and policies on construction of social housing: The detailed planning task is formulated concurrently with the detailed planning project; To be allocated the social housing land fund within the scope of the commercial housing project, or have the planning approved, and arrange the social housing land fund in another location of equivalent size, outside the scope of the commercial housing project. commercial; Regulation of specific land types for social housing development.

Regulations on general conditions for granting construction permits with a definite term of public works (houses, parking lots, public toilets) on land managed by the State.

Ho Chi Minh City is regulated with preferential mechanisms and policies, giving priority to attracting strategic investors in fields such as chip production, semiconductor integrated circuit industry, new materials ..,; strategic investors need to meet; Procedures for registration of project implementation and selection of strategic investors.

The Government also proposed to assign Ho Chi Minh City to be provided with income tax exemption and reduction for individuals and businesses engaged in innovation activities and start-ups in the fields of science, technology, and innovation of the city. .

Along with the above new policies, the Government also submitted to the National Assembly for permission to continue applying mechanisms and policies to achieve results in Resolution No. 54/2017/QH14; supplementing appropriate mechanisms and policies that are being piloted in some localities and a number of mechanisms and policies included in the draft revised Land Law, and the revised Housing Law expected to be submitted to the National Assembly in the coming time.

Need more policies on budget revenue for Ho Chi Minh City

Presenting the Verification Report, Chairman of the Finance and Budget Committee Le Quang Manh stated that the Committee agreed on the necessity of promulgating a Resolution of the National Assembly on piloting a number of specific mechanisms and policies for development. Ho Chi Minh City development.

However, in order to have a solid basis for the decision, it is recommended that the Government report on the impact assessment in detail, both in terms of positives and challenges and negative impacts when implementing. Need more detail on outputs; especially policies affecting state budget revenues and expenditures; to the implementation resources…

The Chairman of the Finance and Budget Committee stated that the promulgation of the Resolution should be noted, the regulations need to promptly remove institutional obstacles that are hindering development, promoting potential, and overcoming inertia in the economy. implementation of the orientation last time; but absolutely do not take advantage of law-making to legitimize violations.

New policies need to be “breakthrough”, “outstanding” in the spirit of Resolution 24-NQ/TW, Resolution 31 of the Politburo, Resolution 81/2023/QH15 of the National Assembly; but need to be feasible, focused, not spread; avoid taking advantage of policies to cause loss and waste.

In order to continue to improve, the Finance and Budget Committee said that the Government needs to clarify whether the policy scope as in the draft is enough to remove institutional obstacles that are hindering the development process.

In terms of the number of policies, it is relatively wide, so it is necessary to have a choice, focus, and avoid spreading so that each policy has the opportunity to come to life. It is necessary to pay more attention to really breakthrough policies, creating a new step in exploiting potentials in accordance with Resolution 31; Avoid much in quantity but limited in weight, Chairman of the Finance and Budget Committee Le Quang Manh stated.

Budget collection policies such as taxes, fees, etc. are still quite thin, while Ho Chi Minh City has special characteristics and great advantages in exploiting revenue sources. Therefore, it is recommended to research, have feasible revenue policies, and contribute to balancing resources for budget spending policies.

At the same time, it is recommended to review policies that have a direct impact on the central budget such as proposals for tax exemption and reduction to suit the current context, especially when preparing to apply the global minimum tax. Although, it is necessary to have a preferential mechanism compared to other localities, it is necessary to attract talents and high-quality workers, but to avoid creating too big a difference in income between workers, the Commission’s verification report said. Committee of Finance and Budget stated.