Mr. Phan Van Mai: Ho Chi Minh City's concern is still public investment.

In the first two months of the year, Ho Chi Minh City has only disbursed about 2% of public investment while the first quarter target is 10%, so Mr. Phan Van Mai said this is a big concern for the city.

The above information was stated by Chairman of Ho Chi Minh City People's Committee Phan Van Mai at the meeting to assess the socio-economic development situation in the first two months of the year on the morning of March 6. Accordingly, the city's major concern is focusing on the progress of public investment as this source of capital is considered as seed capital for the economy.

In the first two months of the year, Ho Chi Minh City disbursed VND1,600 billion in public investment capital, an increase of more than 4 times compared to the same period in 2023 but only reaching about 2% of the annual plan. The city set a target of disbursing 10-12% in the first quarter, equivalent to VND8,000 billion.

Thus, in March alone, Ho Chi Minh City had to disburse more than VND1,000 billion per week, which is considered a challenge. "We still have to persevere with the target of disbursing public investment in the first quarter, at least reaching 10%," said Mr. Mai.

Ho Chi Minh City Chairman Phan Van Mai (standing) speaks at the meeting on the morning of February 6. Photo: TTBC — Ho Chi Minh City Chairman Phan Van Mai (standing) speaks at the meeting on the morning of February 6. Photo: *TTBC*

To speed up the resolution of the above concerns, the Chairman of the Ho Chi Minh City People's Committee reminded contractors of their responsibilities regarding construction materials. "Contractors have signed contracts, which include the responsibility of ensuring construction materials. Therefore, contractors cannot tell the Committee to take care of construction materials for them. This responsibility lies primarily with the contractors," he emphasized.

In March, the city assigned project management boards, investors, and districts to review and strictly handle weak and unserious contractors. Site clearance for projects must be completed by June 30.

For key projects, Mr. Pham Van Mai suggested that contractors work in 3 shifts (3 shifts per day, rotating between 4 groups of employees). Any problems in the projects must be reported promptly, so that the progress will not be delayed until the end of the year if there are problems.

This year, the economic locomotive aims to disburse 95% of the total allocated capital of about VND 79,200 billion - VND 11,200 billion higher than last year. Before today's meeting, the Ho Chi Minh City People's Committee issued the "Action Program to promote disbursement of public investment capital in 2024" to speed up progress. In particular, it requires departments and branches to shorten at least 30% of the time to process documents for appraisal and approval of investment projects, contractor selection plans, construction drawing designs - estimates.

Along with public investment, private investment in Ho Chi Minh City is also "hot and cold" intertwined. Over the past two months, foreign direct investment increased in quantity but the value only reached 195.45 million USD, down 47% compared to the same period last year.

The number of newly established enterprises was nearly 6,300, with a newly registered capital of more than VND 56,800 billion, an increase of 18.2% in quantity and 44.4% in registered capital compared to the same period in 2023. More than 4,300 enterprises resumed operations, an increase of 15.3%. However, a total of 14,700 enterprises temporarily suspended operations and dissolved.

Enterprises have not been bold in investing, reflected in low credit. Total outstanding credit in the area by the end of February increased by 9.52% compared to the same period in 2023, but only increased by 0.6% compared to the end of January and decreased by 0.34% compared to the end of last year.

To promote private investment, Chairman Phan Van Mai said he will continue to promote working groups in charge of attracting FDI, solving difficulties in real estate and state-owned enterprises, and promoting projects under the public-private partnership (PPP) model according to Resolution 98 in the fields of culture, education, health, and transportation.

In addition to investment challenges, the bright spot of Ho Chi Minh City's economy in the past two months is the industrial production index (IIP) which increased by 4.3%, the highest in the same period in 3 years. Total retail sales of goods and consumer service revenue reached nearly 184,888 billion VND, up 14.8% over the same period (same period increased by 6.1%), accounting for 18.5% of the country.

Exports, after two years of lows, have also begun to recover, reaching 6.3 billion USD, up 11.6% over the same period last year. "The good news is that there is an improvement in real estate and some export industries such as textiles and wooden furniture," said Mr. Mai.

Telecommunications

Source link