Which 27 Special Mechanisms for Ho Chi Minh City Approved on June 24th?
27 New Points in the Draft Resolution Submitted by the Government to the National Assembly on June 24th.
The changes bring many new and breakthrough points for the development of Ho Chi Minh City, including allowing the city to use local budget to implement:
- Regional and inter-regional road projects and infrastructure;
- Local support within the country as well as abroad;
- The city is allowed to pilot the Transit-Oriented Development (TOD) model for urban development, utilizing local budget to implement independent public investment projects for compensation, support, and resettlement in certain transportation projects;
- Ho Chi Minh City encourages and supports the transition of transportation vehicles from fossil fuels to clean energy; and promotes the use of public transportation to reduce congestion.
These changes are further manifested through the following specific policies:
HCMC continues to pioneer the pilot implementation of new and specific policies
In terms of budget, taxation, and financial mechanisms:
In the case of Ho Chi Minh City having local budget revenues to allocate increased investment expenditure in the mid-term public investment plan, it will be implemented prior to allocating these revenues to new projects, supplementing the mid-term public investment plan as the basis for annual capital allocation.
The government intends to supplement regulations exempting or reducing income tax for individuals and businesses engaged in innovation and entrepreneurship in the fields of science and technology, innovation on the local territory; allowing a pilot financial mechanism to reduce greenhouse gas emissions through carbon credit exchange and offsetting; carbon credits are traded with domestic and international investors. Ho Chi Minh City’s budget will enjoy 100% of the revenue from carbon credit transactions.
The city is also empowered to autonomously determine mechanisms, preferential policies, and prioritize attracting strategic investors in the fields of chip production, integrated circuit industry, and new materials.
In terms of construction, planning, and investment:
The draft resolution grants authority to Ho Chi Minh City to allocate social housing land funds within the scope of commercial housing projects or equivalent locations in terms of scale; specifies the specific types of land for social housing development; and stipulates cases involving national and community interests when adjusting construction and urban planning.
The city is expanding the application of Public-Private Partnership (PPP) for investment projects in the sports and cultural sector, and actively setting the minimum total investment scale for these PPP projects.
In terms of structure and administrative organization:
The government proposes that the National Assembly authorize the establishment of the Food Safety Department for Ho Chi Minh City. This department will be responsible for inspecting and handling violations of food safety laws and administrative violations related to food safety. Additionally, the city is regulated in terms of the number of deputy positions in the People’s Committee of Ho Chi Minh City, as well as in the ward, commune, and township People’s Committees. It also regulates the election, recruitment, management, and utilization of officials and civil servants working at the commune and township levels and the ward-level officials.
Ho Chi Minh City is authorized to establish, reorganize, and dissolve public career units under its jurisdiction. It specifies the delegation of certain tasks and powers of the People’s Council, People’s Committee, and Chairman of the People’s Committee of Ho Chi Minh City to the People’s Council, People’s Committee, and Chairman of the People’s Committee of Thu Duc City. It also stipulates the establishment of certain boards, departments, and offices under Thu Duc City by the People’s Council of Ho Chi Minh City.
The new points in this draft resolution are seen as a rapid response to update Resolution 54, which has proven to be ineffective for Ho Chi Minh City after 4 years of implementation.
After the Government submits the draft resolution, the National Assembly will discuss it in committees and plenary sessions before voting on it on June 24.
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