VietNamNet Bridge - The HCM City government unveiled a plan on Tuesday to boost economic growth next year, targeting to achieve a gross domestic product growth rate of 12% compared to an estimated 11.5% economic expansion this year.

HCMC vice chairman Nguyen Thanh Tai, addressing the city’s People Council session on Tuesday, said the city would strive for a gross domestic growth of 12% with a total GDP value of VND475 trillion, or US$24.4 billion.

The higher economic growth target is seen obtainable as the city’s economy has regained development momentum this year after a long period of slowdown caused by the global financial crisis.

In an earlier report, the city government estimated its total GDP this year at VND418 trillion (roughly US$21.5 billion), or a GDP per capita of nearly US$3,000 given the city’s population at 7.25 million.

Tai in his report did not give specific targets for each sector of the city’s economy in 2011. This year, the service sector, which accounts for 54% of the GDP, is expected to expand 11.9% year on year, while the manufacturing-construction sector, holding a 44.8% share in the city’s GDP, grows by some 11.3%.

To promote sustainable development, Vice Chairman Tai said the city would focus on key infrastructure projects.

The city will spend some VND15.2 trillion, or around US$750 million for 323 key infrastructure projects during 2011.

The city will also pay due care to production technology replacement to improve the competitiveness of its economy.

“Next year, the city will also focus investment on upgrading production technologies for the spearhead industries of the city such as mechanics, information technology, chemicals and food processing to raise the competitiveness of the city’s economy,” he said.

He clarified that the investment for technology renovation would be channeled mostly into operational enterprises at industrial parks and export processing zones.

The city will also carry out more programs for stabilizing goods prices in the market so as to curb its consumer price index under 7% compared to an estimated index of 9% this year.

In the opening sestion of the People’s Council meeting on Tuesday, Tai also called on Council members to approve for nine programs related to the socio-economic development of the city next year. One noteworthy point in the programs is the suggested collection of environment fee by an extra 10% charged on the selling price of tap water.

At the Council meeting on Tuesday, the vice chairman also mentioned several issues of public concerns, including poor infrastructure management and consequently the low quality of infrastructure projects, as seen in the development of many “dead holes” on the street.

On Wednesday, members of the council will have a whole day for discussing social and economic issues of the city as well as the nine programs suggested by the people’s committee.

The question-and-answer session over urgent matters such as traffic jams, slow progress of infrastructure projects, environmental pollution and others will be held on Thursday between Council members and leaders of four related departments.

Source: SGT