HCMC Enhances the Role as Vietnam Trade-Financing Centre

With energy, dynamism and creativeness, Ho Chi Minh City (HCMC) is increasing economic growth and quality, to become an industrial, service, education, science and technology centre in South East Asia, and a socialist, civilized, modern and hospitable city. Ms Nguyen Thi Hong, Vice-Chair of HCMC People’s Committee was interviewed by reporter My Chau on the issue.

 

In 2006-2010, HCMC recorded many important and comprehensive successes. The economic growth rates were high and economic transformation was in the right direction. All industries and sectors developed and contributed to the growth of the Southern key economic zone, as well as reasonable economic growth rates of Vietnam in the conditions of global financial crisis and economic recession. GDP of the city in 2006-2010 increased on average 11.2 percent a year. GDP per capita in 2010 was US$2,855, 1.7 times that of 2005 (US$1,660). Economic size in 2010 was 1.7 times that of 2005. The ratio of service-industry-agriculture in GDP in 2010 was respectively 53.6 percent, 45.3 percent and 1.1 percent. FDI, with 2,192 new projects and registered capital of US$19.5 billion in 2010, increased by the end of 2011 to some 3,800 projects and registered capital of some US$30 billion.

 

Alongside economic growth, urban management and development have also recorded fine achievements, making urban areas more civilized and modern. HCMC was in the forefront of public-private participation, diversification and mobilization of all resources for development, especially infrastructure development. So far, urban infrastructure has been markedly improved and together with other services has made the city more modern with projects like Nguyen Van Linh and Vo Van Kiet avenues, and Thu Thiem and Phu My bridges. Presently, the city is building Subway 1 of 19.7 km linking Ben Thanh and Suoi Tien; Subway 2 of 19 km connecting Ben Thanh and Tham Luong to improve mobility and reduce traffic jams in the city.

 

Besides, environment management and protection have been improved, education and training ameliorated, cultural and social activities as well as material and spiritual life upgraded. Science and technology activities have been accelerated contributing to the increase in productivity, quality and efficiency in production and competitiveness of products and commodities. Political stability and social security have been maintained; external activities, administrative and legal reforms successfully implemented.

 

Resolution 20-NQ/TW of November 18, 2002 of the Party Politburo set forth to build HCMC a modern and civilized city, making ever greater contribution to the Southern part and the whole of Vietnam, and gradually becoming a trade, finance, science and technology centreof Vietnam and South East Asia. Accordingly, HCMC has developed comprehensively and steadily its potential to build the city into a trade and finance centre of Vietnam and the region.

 

Regarding trade, HCMC has implemented several projects and programmes such as animal husbandry development strategy to stabilize food prices in 2008-2010 and vision of 2015; development of wholesale and retail sales networks in HCMC to 2015 and vision of 2020; and the e-commerce programme. Currently, HCMC trade sector is transforming into civilized service, developing modern distribution channels. The city has built and operated three source markets, 28 commercial centres, 92 supermarkets and chains of shops and modern retail sales stalls, reducing and reorganizing traditional markets. As a result, the city can combine production, processing and consumption, ensuring food safety and improving consumers’ experience. New methods of transaction and payment are being applied, such as e-commerce, internet and automatic sales.

Monetary-credit market in the city has also developed in diversified forms: Joint stock commercial banks, joint venture banks, financial companies, and leasing companies. By 2010, the city has some 2,000 offices and branches of credit organizations of various sizes and unceasing growth. Together with the expansion, banking services also developed providing increasing utilities for economic sectors, organizations and people. As a result, in recent years, credit growth continued to increase an average of 25-28 percent a year.

 

Meanwhile the securities market also recorded important progress. Stocks of many companies of various sectors (banking, EPZ, real estate, mining) have joined the listings, attracting more indirect capital of local and foreign investors for production and development. By April 15, 2011, 284 stocks and five fund certificates, 48 securities have joined the listings with total value of VND140,521 billion.

 

Currently, the city is implementing projects on development of financial market and on export exhibition centre in 2010-2020.

 

HCMC has a specialized office for investment promotion called Trade & Investment Promotion Centre with specific tasks: increasing FDI sources by providing new investors more advantages; assisting new investors with professional services meeting their demand for special projects; advising the city authorities on improvement of business environment to attract more foreign investors.

 

In addition, the city is determined to maintain political and economic stability, create a friendly investment environment with preferential treatment on taxation, stability of foreign exchange market and improvement of labour skill. The city also improved transport infrastructure and other utilities like electricity, water, waste treatment and supporting industries, organized and participated in conferences, trade and investment promotion fairs inside and outside the city as well as in other countries such as the US, China, South Korea and the EU.

 

Due to those efforts, in 2010, HCMC attracted 414 FDI projects with total investment capital of nearly US$2.5 billion, or up 6.7 percent in projects and 137.62 percent in registered capital. Leading countries in investment in 2010 were South Korea, Malaysia, Singapore and Japan. By early 2011, the total number of FDI projects operating in HCMC is some 3,800 projects with registered capital of some US$30 billion.

 

As a city of over 10 million people, a centre of the region and the whole nation in various fields, the city is fully aware of its role and position “together and for the whole nation” in national development. Therefore, besides effectively implementing policies of the central government, the city has creatively applied models and measures in compliance with the law and local conditions to create breakthroughs in socio-economic development and apply them in other parts of the country.

 

The success is due to the creative application of the annual plan by the entire system of local authorities of the people, by the people and for the people. All difficulties and challenges were overcome. The city often reviews policies and programmes to draw experiences and recommend to the State policies appropriate to local conditions. In most difficult times, the city is always side by side with businesses in solving difficulties and ensuring social welfare for the people from all strata.

 

The objectives of the city in 2010-2015 are: GDP growth rate of 12 percent a year, 1.5 times that of the whole country; GDP per capita in 2015 of US$4,800, and 120,000 new jobs created annually. To attain those objectives, the city will mobilize all resources to implement six breakthrough programmes: Upgrading of human resources; administrative reform; economic restructuring and economic growth; reduction of traffic jams; reduction of water submergence; and reduction of pollution.

 

I believe that with the determination of the whole political system, joint efforts from all levels and businesses and the support of the people, HCMC will achieve those objectives set forth by the IX City Party Congress, overcoming all difficulties and together with the whole nation, attaining the present targets of restraining inflation, stabilizing the macro-economy and ensuring social welfare.