Vietnam Govt to Sell US$1.25B Bonds to FundHCMCity Projects
The Vietnamese government will issue bonds worth VND22 trillion (US$1.25 billion) to fund two cash-strapped major projects in HCM City, Minister of Finance Vu Van Ninh said at a working session with municipal authorities March 26.
Ninh also approved the city’s proposal that it receive in advance more than VND2 trillion from the central budget as bonus for achievement fulfillment of tax collection target last year.
The proposals had been made by the municipal People’s Committee vice chairwoman Nguyen Thi Hong to help the city finance ongoing projects, launch new ones and expedite work on the Hiep Phuoc Port Industrial Park and the Thu Thiem New Urban Area.
Minister Ninh said the two projects would help attract foreign investment in the years to come and pledged the MOF would work closely with the city administration to carry out projects beneficial to the country.
The city also wanted the Government to advance money for implementing the two projects.
Hong attributed the current shortage of funds to the additional VND8 trillion that had to be given to support displaced residents in the Thu Thiem New Urban Area.
The first phase of Hiep Phuoc Port Industrial Park is nearing completion and its second phase is underway. The project is expected to be up and running in September.
The Thu Thiem New Urban Area has finished about 60 per cent of site clearance and compensation work but is still short of funds.
The city’s Taxation and Customs departments have forecast a sharp fall in this year’s budget collection by roughly VND12 trillion, or 20 per cent of the initial estimate. (VNS)
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