HCMC Improves Investment Environment

HCMC Improves Investment Environment

Ho Chi Minh city concluded the second quarter of 2004 with fine economic achievements: the growth rate was 9.9 per cent (compared with 9.5 per cent in the same period last year), including 8.8 per cent in the service sector, 12.5 per cent in industry and construction, 9.8 per cent in the domestic economic sector and 11 per cent in the foreign invested sector. However, agriculture, forestry and fisheries decreased by 20 per cent due to bird flu and shrimp disease. Measures have been taken by the Municipal Administration at the end of the first quarter to step up administrative reform and mobilise capital for development.

Administrative reform

With the economic recession early this year, the Municipal Administration called repeated meetings of related agencies to find out the cause and solutions. The final analysis showed that, regardless of some initial progresses, formalities remain the main obstacle for investors. The consideration and approval of investment projects take at least a year, which have to pass through too many offices and agencies. Many Vietnamese and foreign investors have consequently invested in other places. Another problem is the shortage of land. The Municipal Administration has decided to apply the "one stop, one seal" for investors in industrial zones and export processing zones. From now on, investors will only have to go to the Department of Planning and Investment for submitting applications and receiving licenses. Party Secretary Nguyen Minh Triet of the city conceded that in the past Binh Duong and Dong Nai provinces had to learn from the city, and now people in the city should learn from those provinces in attracting investment. He also asked related authorities to step up administrative reform to attract more investment. Regarding the shortage of land, Vice Chairman Nguyen Thien Nhan, Ho Chi Minh People's Committee, pointed out that the "unclean" site clearance failed to ensure the full use of land, causing a decrease in foreign investment.

Orientation of restructuring

Party Secretary Nguyen Minh Triet said that to solve the problem of land shortage, the city must select and attract only high technology industries while arranging other investments away from the centre. He believed that it would also help restructure the industry and combine investment with labour restructuring. Bringing industry to Cu Chi, Can Gio would create parallel development, generating jobs and improving the living conditions in rural areas.

Ho Chi Minh City also considered the pressing issue of developing services following its decrease in GDP. Finance, credit, banking, insurance and transport services must increase their growth rates to over 15 per cent against the present 8.8 per cent, the Party Secretary urged. The development of biotechnology was also considered and an agricultural research centre shall soon be established.

Other problems in the big city were also discussed and some solutions were reached, such as the building of hospitals on the periphery to reduce the concentration in the city centre, accelerating housing projects for low-income earners, solving traffic problems, ensuring safety and increasing public transport.

• Cong Ly