Resolution No. 98/2023/QH15 on piloting specific mechanisms and policies for the development of Ho Chi Minh City (hereinafter referred to as Resolution 98) was officially adopted by the National Assembly at the 5th Session of the 15th National Assembly.

Resolution 98 aims to establish specific and outstanding mechanisms and policies to create a robust legal framework for unleashing potential and advantages, creating breakthroughs, and resolving socio-economic development bottlenecks in Ho Chi Minh City, comprising 44 specific mechanisms and policies. Among them, 7 mechanisms are inherited from Resolution No. 54/2017/QH14; 4 mechanisms were previously promulgated for other localities; 6 mechanisms have been incorporated into draft laws being submitted to the National Assembly; and 27 specific mechanisms and policies apply exclusively to Ho Chi Minh City.

Piloting Unprecedented New Models and Innovative Approaches

With numerous specific policies, particularly permitting the piloting of unprecedented models and approaches, Ho Chi Minh City will have the opportunity to optimize all available resources and endogenous potential for breakthrough growth. This serves as a vital key not only for the city itself but also for propelling the Southern Key Economic Zone and generating positive spillover effects for the entire nation.

Ho Chi Minh City will pilot the Transit-Oriented Development (TOD) urban model. This model utilizes public transport orientation as the foundation for urban master planning and development, designating transit hubs as focal points for population concentration to optimize the efficiency of land use and public infrastructure, thereby contributing to alleviating traffic congestion and environmental pollution.

The total estimated capital required for transport infrastructure development during the 2021-2025 period is approximately VND 266,000 billion. Of this amount, municipal budget capital accounts for approximately VND 92,000 billion, while investment mobilization via public-private partnerships (PPP) stands at VND 174,000 billion.

To mobilize diverse investment resources for infrastructure development across the area, Ho Chi Minh City is permitted to apply Build-Operate-Transfer (BOT) contracts to investment projects for upgrading, expanding, and modernizing existing road works. Under this mechanism, Ho Chi Minh City will concentrate on major urban radial arterials, regional connectivity corridors, and national highways traversing the city, such as National Highway 1, National Highway 13, National Highway 22, and others.

Attracting private capital to expand investment scale and infrastructure through BOT is deemed imperative to decisively break through transport bottlenecks—one of the largest development constraints facing the city.

Creating Leverage to Attract Enterprise Investment

Resolution 98 also allows proceeds from the equitization of State-Owned Enterprises (SOEs) in the city to be allocated toward increasing the charter capital of the Ho Chi Minh City State Financial Investment Company (HFIC). Investment projects financed by HFIC in priority socio-economic sectors of the city may receive interest rate subsidies from public investment funds of the city budget. This is regarded as a strategic leverage mechanism for attracting long-term investment into the city.

"It is anticipated that this program will strongly encourage enterprise participation in stimulus initiatives across education, healthcare, high technology, and innovation; environmental sectors such as clean transportation, electric buses, and green public transit; as well as industrial sectors including automation, pharmaceuticals, food technology, textiles, and footwear..." shared Mr. Nguyen Quang Thanh, Deputy General Director of HFIC.

Empowering Autonomy to Unleash Full Potential

Promoting decentralization and delegation of authority, Resolution 98 grants Ho Chi Minh City greater autonomy over its organizational apparatus. Specifically, the City People's Council is empowered to determine the number of cadres, civil servants, and part-time workers in wards, communes, and towns based on population size, economic activity, and territorial characteristics, ensuring a streamlined workforce that does not exceed central government quotas.

The People's Committee of Ho Chi Minh City is also empowered to delegate certain functions, duties, and powers of specialized agencies under the municipal People's Committee to other specialized agencies, administrative bodies under the City People's Committee, District People's Committees, and Thu Duc City People's Committee.

Regarding the institutional framework of Thu Duc City, the People's Council, People's Committee, and Chairman of the Ho Chi Minh City People's Committee may authorize specific jurisdictional tasks to the People's Council, People's Committee, and Chairman of the Thu Duc City People's Committee across various fields. The City People's Council decides on the organizational apparatus, personnel quotas, and functions of specialized divisions and affiliated units under Thu Duc City.

The Success of Ho Chi Minh City Is the Success of the Whole Nation

Resolution 98 authorizes Ho Chi Minh City to pilot mechanisms that have never previously existed. The city will serve as a pilot locality to validate and pave the way for superior mechanisms and policies.

Far beyond serving as a specific mechanism exclusively for Ho Chi Minh City, Resolution 98 plays a pervasive role in driving socio-economic growth for neighboring localities, the Southern Key Economic Zone, the Mekong Delta provinces, and the entire nation.

On July 7, during an online working session between the Government Standing Committee and Ho Chi Minh City to deploy Resolution No. 98/2023/QH15, Prime Minister Pham Minh Chinh clearly highlighted: "It must be identified that the implementation of the resolution is not solely for Ho Chi Minh City. If executed successfully, the entire nation will benefit, making this a shared national mission."

Simultaneously, the Prime Minister emphasized: "The entire country must join hands with Ho Chi Minh City. Every individual and every agency, based on their mandated functions, tasks, and powers, must effectively execute their assigned duties in line with General Secretary Nguyen Phu Trong's directive: 'The whole country for Ho Chi Minh City, Ho Chi Minh City for the whole country.'"

Source: Industry and Trade Magazine