Tightening the Reins: Emphasizing Discipline and Order in Public Service

"At the meeting on socio-economic situation of Ho Chi Minh City in July and the first seven months of the year, one of the critical issues addressed by the Chairman of the People's Committee was tightening discipline in public service in the area. In the past, the concretization of the conclusions and the direction of the contents have not met expectations."

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Tightening Discipline in Public Services

On August 1st, Chairman of the People’s Committee of Ho Chi Minh City, Phan Van Mai, chaired a meeting on the socio-economic situation in July and the first seven months of the year.

One of the important issues addressed by the city’s leaders during the meeting was tightening discipline in public services. In the past, the concretization of conclusions and directives has not met expectations.

Mr. Mai, the Chairman, stated that after the six-month review by the City Party Committee, a resolution and conclusion were made. Subsequently, the People’s Committee also issued Document No. 3843 to heads of departments, branches, and chairmen of district-level People’s Committees to concretize these contents. However, up to now, basically, the departments and branches have not implemented it.

Mr. Mai emphasized, “The above resolutions and conclusions are key tasks that need to be implemented from now until the end of the term, with the main objectives and solutions to achieve the targets. Therefore, units need to review and concretize them for implementation.”

Chairman of the People's Committee of Ho Chi Minh City, Phan Van Mai, speaking at the meeting
Chairman of the People’s Committee of Ho Chi Minh City, Phan Van Mai, speaking at the meeting – Photo: Ho Chi Minh City PCC

Regarding the socio-economic situation in the first seven months of 2024, Ms. Le Thi Huynh Mai, Director of the Department of Planning and Investment, said that the city’s total estimated balanced revenue for the state budget in this period was VND 308,724 billion, reaching 63.9% of the estimate and an increase of 14% over the same period.

Specifically, domestic revenue is estimated at VND 226,927 billion, reaching 68.0% of the estimate and an increase of 23.9% over the same period. This includes revenue from state-owned enterprises estimated at VND 20,704 billion, reaching 69.2% of the estimate and an increase of 15.5%; revenue from the non-state sector estimated at VND 67,546 billion, reaching 73.7% of the estimate and an increase of 19.5%; and revenue from the foreign-invested sector estimated at 51,522 billion VND, reaching 73.7% of the estimate and an increase of 14.4%.

The total local budget expenditure for the first seven months of 2024 (excluding temporary advance) is estimated at VND 40,823 billion, reaching 27.2% of the estimate and a decrease of 10.5% compared to the same period.

In July 2024 alone, industrial production in the city continued to recover in all three indices (IIP of the whole industry increased by 9.6%, consumption index of the processing and manufacturing industry increased by 13.4%, and inventory index decreased by 17.8%). This contributed to a 6.2% increase in the IIP for the first seven months of 2024 compared to the same period last year.

Also, in the first seven months of the year, the city granted licenses to 29,991 new businesses with a registered capital of VND 245,096 billion, an increase of 8.4% in the number of licenses. Nearly half of these companies are in the commercial sector (buying and selling goods and services), an estimated increase of 20% over the same period in 2023.

Regarding the progress of some key projects, Ms. Le Thi Huynh Mai said that the projects in the city are being expedited to be put into operation soon.

The Metro Line No. 1 (Ben Thanh – Suoi Tien) project has completed more than 98% of the volume. It is expected that in August 2024, five parking lots will be completed; in September 2024, nine pedestrian bridges will be completed, and the Metro Line 1 project will be put into operation this year.

The Metro Line No. 2 (Ben Thanh – Tham Luong) project has basically completed the procedures for the issuance of Decision No. 584/586 on compensation, achieving 99.6%. Contractors are constructing the first items related to the relocation and re-establishment of water supply and drainage systems, signage, lighting, and traffic signals.

The Component 1 of the Ring Road 3 Project consists of 14 construction packages. Of these, 10 main construction packages have been bid and are being implemented. Component 2 is expediting the progress of compensation. Currently, the site clearance rate is 99%, with a total of 1,675 out of 1,692 cases having been handed over.

The National Highway 50 Expansion Project consists of seven construction packages. Four of these packages are for the construction of the parallel road to National Highway 50, expected to be completed in 2024, and three packages are for the expansion of the existing National Highway 50, expected to be completed in 2025.

The Tham Luong – Ben Cat – Rach Nuoc Len Canal Improvement Project has 9 out of 10 construction packages being implemented with test piles of reinforced concrete. The 10th package is in the process of compensating, supporting, and resettling residents (123 households in District 12 and 43 households in Go Vap District).

Two Economic Growth Scenarios

At the meeting, Mr. Truong Minh Huy Vu, Deputy Director of the Ho Chi Minh City Institute for Development Research, said that the indices prove that the economy of Ho Chi Minh City and the whole country is recovering but still faces many difficulties. Mr. Vu also presented two economic growth scenarios for the city.

In the first scenario, Ho Chi Minh City will maintain its growth target of 7.5-8% this year to create a foundation for growth of 8-8.5% next year.

The second scenario involves the city maintaining a growth rate of 7-7.5%. To achieve a growth rate of 7.5%, the city will need to make significant efforts in the third and fourth quarters. The obvious bottlenecks remain the rate of disbursement of public investment, the ability to absorb capital, and the promotion of import and export, which still face many problems.

According to Mr. Vu, based on the issues raised, the People’s Committee of Ho Chi Minh City has drafted a Directive on urgent, key, and regular tasks for July, August, and the coming months.

The key tasks are expected to focus on public investment disbursement and enhancing capital absorption capacity; administrative reform and delegation of authority; promoting effective public spending and boosting consumption and market stabilization; promoting import and export activities; protecting the environment and promoting projects for social welfare; fostering new growth drivers; and economic diplomacy and international cooperation.

Mr. Truong Minh Huy Vu said, “In these seven groups, the role of departments, branches, and sectors is very important. The Ho Chi Minh City Institute for Development Research is continuing to gather feedback from departments, branches, and units to finalize and submit to the People’s Committee for issuance.”