Research on establishing a fund to develop the Southeast region's transport system

On July 7, Ho Chi Minh City People's Committee held a conference to exchange and cooperate with provinces in the Southeast region.

At the conference, Mr. Truong Minh Huy Vu - Deputy Director of the Ho Chi Minh City Institute for Development Studies said that there are currently 3 bottlenecks in the Southeast region: planning, traffic infrastructure and human resources. To solve these 3 bottlenecks, the key is institutional issues.

Mr. Vu analyzed that Resolution 24-NQ/TW of the Politburo on the direction of socio-economic development and ensuring national defense and security in the Southeast region to 2030, with a vision to 2045, pointed out a number of important institutions such as regional councils, regional planning, key regional projects and regional linkage mechanisms related to infrastructure investment funds.

Hanoi Highway connects Dong Nai province with Ho Chi Minh City at the eastern gateway.

To ensure capital for key regional connectivity projects; to finance management, administration, research and capacity building activities, the establishment of a regional transport system development fund is essential.

According to the Deputy Director of the Ho Chi Minh City Institute for Development Studies, this fund is formed from the State budget (including the central and local budgets), socialized sources and other sources, used for the whole region with an open mechanism, will promote the development process and link localities in the Southeast region, especially in terms of infrastructure and transportation, a factor that is hindering the development and exploitation of the full potential of the region.

Mr. Vu said that through current analysis, there are two options for establishing the fund. First, Ho Chi Minh City and the provinces in the region can establish a regional transport infrastructure development fund.

However, the regulatory framework does not allow localities to mobilize, allocate and share resources to carry out regional activities. After the National Assembly passed Resolution 98/2023/QH15 on piloting the development policy mechanism of Ho Chi Minh City, only the city has a mechanism to use local budgets to invest in regional projects.

The second option is that it could be established by the Prime Minister, directly under or associated with the Southeast Regional Coordination Council which is in the process of being established.

Mr. Truong Minh Huy Vu said that it is possible to choose the option of the Government establishing a fund and linking it with the Regional Coordination Council to mobilize resources; ensuring connectivity and coordination between localities and relevant parties. If designed appropriately, the fund becomes an effective basis and tool to promote the role of the Regional Coordination Council.

"If choosing this option, Ho Chi Minh City and the provinces need to prepare proposals to form ideas for priority transport infrastructure projects at each stage to propose. During the formation of the regional fund, Ho Chi Minh City can take advantage of the provisions in the pilot content of specific mechanisms and policies for Ho Chi Minh City's development.

That is, the Ho Chi Minh City People's Council decides to use the city budget to implement regional and inter-regional road traffic projects and works located on the administrative boundaries between Ho Chi Minh City and other localities, national highway and expressway projects passing through the city... to implement regional and inter-regional works," the Deputy Director of the Ho Chi Minh City Institute for Development Studies proposed.

Chairman of Ho Chi Minh City People's Committee Phan Van Mai speaks at the Conference on exchange and cooperation with provinces in the Southeast region.

Will study the establishment of a fund to develop the Southeast region's transport system

According to Chairman of Ho Chi Minh City People's Committee Phan Van Mai, at the conference to deploy the Resolution on the Government's action program to implement Resolution 24 at the end of 2022, he proposed this mechanism and the World Bank strongly supported it.

Later, in the conclusion, the Prime Minister assigned the Ministry of Finance to study this plan, but it would take a long time. Therefore, it is possible to propose allowing localities to use the budget contributed to the fund, plus international loans, the central budget, and corporate funding to implement it.

Mr. Phan Van Mai said that at the first conference on exchange and coordination between the People's Committee of Ho Chi Minh City and the People's Committees of Binh Duong, Dong Nai, and Ba Ria - Vung Tau provinces last March, the localities agreed to successfully implement a number of contents, especially the coordination in implementing the Ho Chi Minh City Ring Road 3 project and regional connecting traffic routes.

The Chairman of the Ho Chi Minh City People's Committee requested local leaders to continue discussing the promotion of regional connectivity projects. In particular, focusing on planning the development of ecological urban areas, high-class urban areas along the Saigon River, Dong Nai River and developing trade, services and industry along regional connecting routes. Researching the establishment of a Southeast Regional Transport System Development Fund with mixed capital sources to invest in key regional transport projects.

At the same time, review and survey the material sources in the area where the connecting traffic project passes through, organize the exploitation of suitable construction materials, ensure the source of construction materials for key traffic projects. Research to establish a regional disease control center and build a regional end-line hospital.

Research on extending Metro Line 1 by 50km to Dong Nai and Binh Duong The extension of Metro Line 1 (Ben Thanh-Suoi Tien) connecting Ho Chi Minh City with the two provinces of Dong Nai and Binh Duong is being researched and implemented by the transport sector.

Tuan Kiet - Ho Van

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