Accordingly, Thu Duc was established by merging the three districts of 2, 9 and Thu Duc, with a total area of 211.56 km2 and a population of nearly 1.2 million people, equivalent to the central city of Da Nang.

The area has the mission of becoming a model city in Vietnam for the application of 4.0 technology, contributing 30% of GRDP of Ho Chi Minh City and 7% of Vietnam’s GDP.

Although Ho Chi Minh City authorities have made efforts to decentralize and authorize power for Thu Duc City, it is still a "super-district" and is in the form of the first "city within a city" in Vietnam.

Chairman of Thu Duc City People's Committee Hoang Tung said that after one year of establishment, the city is operating as a government at district level.

“When it was established, we all wanted Thu Duc City to be a real boon for HCM City's economy. But after one year, most of the time was spent on epidemic prevention. We are still waiting for specific policies and mechanisms," said Mr. Hoang Tung.

Thu Duc needs provincial-level mechanism

Thu Duc is waiting for a special mechanism from the central government, which is commensurate with its potential and expectations.

There are two options: a special administrative-economic model, or a provincial-level authority. If the latter is selected, it can be implemented very quickly, as this model is already available, and it will take longer for the first because it is a new one. Many experts favor the provincial-level mechanism.

During a recent meeting with Thu Duc City’s officials, Chairman of Ho Chi Minh City People's Committee Phan Van Mai suggested that the city would select 70-80% of the content of the provincial authority to propose for its specific mechanism.

Eight groups of specific mechanisms proposed for Thu Duc City

The People's Committee of Ho Chi Minh City said that it had asked the National Assembly to add a chapter on the specific development mechanism of Thu Duc City, with eight groups of proposals, to the new resolution on Thu Duc City.

The first is to strengthen the initiative and self-responsibility through decentralization and strong authorization of state management functions and tasks from Ho Chi Minh City to Thu Duc City.

Second, removing restrictions, allowing foreign investors to enjoy business investment conditions similar to domestic investors in a number of fields such as logistics, health care, education, commerce... with a pilot period of 5 years.

Third, reallocating the budget towards increasing the revenue sources for Thu Duc City.

Fourth, the authority to decide on investment policies will be given to the Chair of Thu Duc City People's Committee.

Fifth, organizing biddings for public land and public service provision in the city.

Sixth, a mechanism to receive support and contributions from people and businesses in infrastructure investment.

Seventh, separating compensation projects from construction projects.

Eighth, allowing Ho Chi Minh City to take initiative in allocating payroll for Thu Duc City and to have 4 vice presidents (an increase of one person compared to the recent regulations).

Ho Chi Minh City hopes that with these mechanisms, Thu Duc City will soon bounce back in the near future.

Ho Van