Creating specific mechanisms for HCMC to motivate national development

Tuesday, 2017-11-14 17:54:02
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NA Chairwoman Nguyen Thi Kim Ngan speaks at the NA meeting on November 14
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NDO - Chairwoman of the National Assembly Nguyen Thi Kim Ngan emphasised that creating specific mechanisms is not a way for Ho Chi Minh City to contribute less to the budget, but rather to facilitate the city to develop faster and contribute more to the nation.

The NA Chairwoman made the remarks at the ongoing NA meeting on November 14 which discussed the draft resolution on specific mechanisms for Ho Chi Minh City.

She said that according to the current budget allocation, Ho Chi Minh City only retains 18% of its budget revenue while the remaining 82% is contributed to the central budget. At this rate, the city will find it very difficult to create breakthroughs because of lack of investment capital.

"I think that if Ho Chi Minh City is allowed to retain less than 20% of budget revenue, it will grow very slowly. As the locomotive for the whole nation, if the city goes slowly, following carriages will also go slowly. Thus, specific mechanisms for Ho Chi Minh City is not for the city alone only, but for the whole country," the NA Chairwoman said.

She emphasised that the city will be given further decentralisation in the areas of land and tax including property tax.

She also noted that "creating motivation for the city, but not reducing the competitiveness of the city", adding that the city should not increase all types of taxes which may decrease its competiveness.

The NA Chairwoman also expected that the specific mechanisms for the city could be approved at this NA working session as it has been discussed and considered carefully before being presented to the NA.