Unblocking numerous projects
On the morning of August 9th, at the regular meeting on socio-economic matters for July, along with key tasks and solutions for August, Chairman of Ho Chi Minh City People’s Committee, Nguyen Van Duoc, together with leaders of departments and sectors, discussed the results after more than a month of Ho Chi Minh City’s administrative unification with Binh Duong and Ba Ria-Vung Tau provinces.
Director of the Department of Finance, Nguyen Cong Vinh, informed that in July, the Special Working Group of Ho Chi Minh City had inspected, handled, and concluded several large-scale projects.
A panorama of the meeting.
Additionally, the working group focused on resolving significant issues related to public assets, unused or inefficiently utilized headquarters, and enterprises’ stalled construction projects.
During this period, Ho Chi Minh City’s total budget revenue reached more than VND 472,588 billion, equivalent to 70.4% of the Central-assigned estimate and a 14.6% increase compared to the same period last year. Despite the budget revenue increase, the progress of public investment disbursement remains slow, reaching only VND 47,577 billion by the end of July, equivalent to 40% of the plan assigned by the Prime Minister (VND 118,948 billion) and 31.4% of the city’s plan.
The Challenge of Capital Absorption
Speaking at the meeting, Dr. Truong Minh Huy Vu, Director of the Ho Chi Minh City Institute for Development Research, assessed that the city’s economy continues to show signs of recovery, but the ability to “absorb capital” remains a key challenge following the merger with Binh Duong and Ba Ria-Vung Tau.
He emphasized that the issue is not about a lack of capital but rather ensuring that it reaches the right places at the right time to be effective. “The question is not whether we have the money, but where the money goes and whether it is invested in efficient projects,” said Dr. Truong Minh Huy Vu. “If the money flows into the market without proper control, inflation and consumer prices will rise.”
Dr. Truong Minh Huy Vu, Director of Ho Chi Minh City Institute for Development Research, speaks at the meeting.
In the past, the Ho Chi Minh City Institute for Development Research has coordinated with relevant agencies to review and identify seven laws that have been adjusted, directly affecting the implementation of mechanisms and special policies of Ho Chi Minh City. The next question is the “absorption” capacity of the new policies in the merged Ho Chi Minh City.
The Director of the Ho Chi Minh City Institute for Development Research suggested that it is essential to effectively communicate and apply these policies to all 168 wards and communes. Close monitoring is necessary to determine if the current policies are sufficient, reach the right beneficiaries, and have the desired impact.
Given the influx of investors interested in Ho Chi Minh City, capital will undoubtedly flow in, but it may not stay if the city fails to promptly meet their requirements and effectively absorb these policies and resources.
Based on this reality, the Ho Chi Minh City Institute for Development Research proposed implementing a model of “one center – three areas – one special zone.” The central area would serve as the policy hub, while the former Binh Duong and Ba Ria-Vung Tau areas need to be developed harmoniously, ensuring a smooth continuation of projects and constructions from before the merger.
The Need for a “Growth Directive”
Dr. Vu warned that any disruption could lead to interruptions in capital and project flows, as well as preparation work. Therefore, he proposed that the city promptly issue a “growth directive”, assigning specific tasks to each sector and unit, including state-owned and private enterprises.
Simultaneously, it is essential to prioritize social welfare policies until the end of the year to mitigate the impact of inflation and control consumer prices. Additionally, a long-term plan for social housing development should be established.
Ho Chi Minh City’s Budget Soars: A Stellar 472,000 Billion VND in Just 7 Months
The Chairman of Ho Chi Minh City People’s Committee has set an ambitious target of 8.5% growth in GRDP for the city, and it is now imperative for all departments to step up. This target is a mandate, and we must ensure that each sector contributes to this collective goal with clear and measurable objectives. It is essential that we, as a city, unite and work towards this common vision with a sense of urgency and dedication.
Proposed Land Price Index: A Consolidated Approach for Ho Chi Minh City in 2026
The Ho Chi Minh City Department of Agriculture and Environment asserts that the recently constructed land price frameworks of Ho Chi Minh City, Binh Duong, and Ba Ria-Vung Tau are well-aligned with the prevailing market realities.
Unlocking Legal Hurdles for Billion-Dollar Projects: Ho Chi Minh City’s Record-Breaking Land Revenue
By 2025, Ho Chi Minh City is expected to generate approximately 860 trillion VND from land price calculations for 153 projects across the city. This significant revenue stream underscores the city’s thriving development and strategic vision for the future.
The Expert’s Take: Quick Absorption Needed or the Capital Will Flow Away from Ho Chi Minh City
Post-merger, Ho Chi Minh City is presented with an opportunity to attract substantial domestic and foreign investment. However, if bottlenecks are not addressed promptly, the city risks capital flight, and the potential benefits of this merger may be short-lived.
A Fresh Proposal for the Can Gio Bridge Project: A $450 Million Vision
“Investors are proposing an exciting new project: a 7.3-km long Can Gio Bridge, totaling over VND 10,500 billion in investment, utilizing the build-transfer model. This ambitious infrastructure project aims to connect the southern area of Ho Chi Minh City with Can Gio, offering a much-needed alternative to the Binh Khanh ferry.”
