Muong Chuoi sluice gate as part of a large-scale flood control project worth nearly VND10 trillion is underway in HCMC. Under an imminent resolution by the National Assembly, the city government will have jurisdiction over many large-scale projects in the future, instead of seeking approval from the Prime Minister

Speaking with reporters on the sidelines of the NA sitting in Hanoi on November 14, Vu Hong Thanh, chairman of the NA Economic Committee, said the new mechanism will allow the city government to set new taxes and fees, have a wider jurisdiction on land use as a valuable resource, and enjoy a certain extent of autonomy in the city’s State machinery.

“Special policies and mechanisms are meant to make better use of resources. Land is an important resource, and the NA resolution will allow the city to turn farmland into service land,” Thanh told reporters.

It is noteworthy that the municipal government would be delegated more power in a wide range of management areas, Thanh said. For example, large-scale projects which must be approved by the Prime Minister under the current rules would be decided by the city government when the resolution is adopted, thus simplifying procedures to help both authorities and enterprises save time.

The city government will also be authorized to set new taxes and fees, including taxes on assets and properties, as long as such regulations do not contradict the Constitution.

In addition, the NA resolution will allow the city government to raise salaries for State employees, while current policies on salaries and pay rise apply to all State employees across the country. The municipal government will also be allowed to decide the scale and organizational structure of the State apparatus within the city’s precincts, according to Thanh.

Many other NA leaders at the meeting on November 14 also upheld a special mechanism for HCMC with an aim to bring about better efficiency in the city’s socio-economic development.

NA chairwoman Nguyen Thi Kim Ngan stressed that a special mechanism for HCMC will mean a lot to not only HCMC but also other parts of the country.

According to Ngan, HCMC is the locality that generates the highest revenue and contributes the most to the central budget. However, the city is currently permitted to retain only 18% of total revenues, declining by 5 percentage points from the period before 2017.

That HCMC can retain such a modest proportion will impede its development, whereas the city is the country’s locomotive, Ngan said.

Ngan agreed to let HCMC decide its budget estimates based on total collections and spending set by the NA. “We need to adjust the mechanism to actual conditions of the locality,” Ngan was quoted by Nguoi Lao Dong newspaper as saying.

Under the draft special mechanism for HCMC, the city can enjoy revenues generated from the equitization of State firms in the city.

Commenting on the mid-term public investment plan to allocate HCMC a sum of VND18.8 trillion to prevent flooding and build two hospitals, Ngan said such a budget should not be taken back by deducting other allocations for the city.

“If HCMC has VND18.8 trillion, it can make many more sums of VND18.8 trillion,” Ngan said. She added that if resources are scattered, there would not be breakthroughs in development.

Restating the goal to have HCMC as the economic locomotive of the national economy, Minister of Finance Dinh Tien Dung noted that the special mechanism must be aligned with the Constitution but more liberal than the existing regulations.

SGT