City calls for investment in 133 development projects

Wednesday, 2017-10-11 10:48:22
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HCM City introduces prospective projects to foreign investors. (Credit: NDO)
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NDO – Ho Chi Minh City calls for investment in 133 projects, including 73 transport infrastructure development projects, 21 urban refurbishment and resettlement schemes, 11 education projects and seven flood reduction plans.

The information was announced at an investment promotion conference organised by the HCM City municipal People's Committee on October 11, aimed at introducing potentials and calling for investment in transport infrastructure, urban development and industrial parks in the southern economic hub.

Speaking at the opening ceremony, Tran Vinh Tuyen, Vice Chairman of HCM City People's Committee, emphasised that the city is a special urban area with a leading role in attracting investment and promoting development in the southern key economic region in particular and throughout the country in general.

According to the HCM City Socio-Economic Development Master Plan by 2020, with a vision to 2025, the city seeks to reach an annual growth rate of 8.5% during 2016-2020. By 2020, the service sector will account for 56-58% of the GRDP; total social investment accounting for about 30% GRDP and per capita reaching US$9,800/person/year.

In order to achieve the above objectives, Tuyen said there should be contributions of domestic and foreign investors through capital contribution, technologies and effective solutions to promote sustainable economic development, adding that the city will prioritise the development of clean and modern industries with high scientific content.

The vice chairman also called on businesses to invest in 113 projects, focusing on 13 key sectors of industry and services, developing new urban areas, flood prevention and environmental protection programmes, as well as conservation and social housing projects.

In particular, special projects are being strategically prioritised in calls for investment, including metro line No. 1 (Suoi Tien - Ben Thanh route), metro line No. 2 (Ben Thanh - Tham Luong), a 100 ha science park in District 9, and Thu Thiem Urban Area (in District 2) including an international standard hotel, a theatre and an international school.

Tran Vinh Tuyen, Vice Chairman of HCM City People's Committee, calls for more investment to the southern economy. (Credit: NDO)

For transportation infrastructure projects, Le Nguyen Minh Quang, head of the HCM City Management Authority for Urban Railways, added that the city’s urban railway system consists of eight metro lines and three ground electricity bus or monorail lines with a total length of 219.25 km. The city aims to complete the first metro line by 2020 and phase 1of the metro routes No. 2 and 5 by 2024. The Hong Kong Trade Development Council is interested in one of the routes. Earlier, Korean and Russian investors were said to be interested in the No. 4 metro line. This is an optimistic signal for the city's investment attraction.

Pham Thiet Hoa, Director of Centre for Trade Promotion and Investment of Ho Chi Minh City said that the southern economic hub now contributes 21% of GDP, 1/3 of the national budget, 1/5 of total export turnover, and 30% of total FDI projects in Vietnam.

To attract future investment, HCM City will continue to improve its business environment, minimising administrative procedures, and preparing labour resources and land funds to better meet the needs of foreign investors.

Giving her assessment on the environment for investment in HCM City, Tina Phan, Director of Indochina Region Department under the Hong Kong Trade Development Council, said that HCM City is a dynamically developing city and an attractive investment destination for foreign businesses. She revealed that Hong Kong investors are particularly interested in transport infrastructure development and waste water treatment projects in the city.

According to Tina Phan, to effectively attract investment, the city should simplify administrative procedures, support ground clearance and actively share project information with investors. The involvement of experienced investors with strong financial backing in strategic projects would drive a robust growth for the city in the coming years, she added.

After the two day conference, domestic and foreign businesses will join a field trip to explore several local projects calling for investment, including the urban railway No. 1 (Ben Thanh - Suoi Tien), the central road and thematic park for Tay Bac Urban Area, and Hiep Phuoc Industrial Zone.