A corner of HCM City. HCM City's investment stimulus programme will support various industries. — VNA/VNS Photo

The city's gross domestic product increased by less than one per cent in the first quarter, highlighting the inadequacy of the local economic structure and management institutions for a city of this size.

Recently, at a seminar organised by the HCM City Union of Business Association, the city’s chairman Phan Van Mai announced plans to submit several supportive policies to the City People's Council in July. These policies will offer immediate and long-term assistance to local businesses. The Department of Planning and Investment is collaborating with the City Business Association to finalise the policy proposal.

Mai said immediate policies will focus on market access support, inventory problem solving and facilitating export opportunities. Notably, the city will revive the investment stimulus loan programme, which was on hold for two years, to provide financing for unfinished projects, as well as new ones in priority sectors.

Nguyen Quang Thanh, Deputy General Director of Ho Chi Minh City Finance and Investment State-owned Company (HFIC), said HFIC is finalising the investment stimulus loan programme in collaboration with the Department of Planning and Investment and other relevant departments.

This programme will be presented to the City People's Council in the next meeting, emphasising greater support levels and an expanded scope of beneficiaries. Logistics businesses will be included in addition to those in the field of green transformation. The loan interest support limit will increase to VND200 billion (US$8.44 million), with support levels of 50 per cent or 100 per cent of the loan interest.

The investment stimulus programme will support various industries, including high-tech enterprises, innovation, digital transformation, education, healthcare, sports and culture, environment, high-rise factory construction projects, and key sectors such as mechanical engineering, food processing, electronics, telecommunications, plasticizing rubber, leather, footwear and textiles.

In addition to the business support program, HCM City is also actively addressing two crucial challenges: infrastructure and institutions.

Infrastructure development efforts focus on building Ring Roads 2 and 3, renovating the Xuyen Tam and Tham Luong – Ben Cat canal systems, and other key transportation projects.

Regarding institutions, a new resolution is expected to replace Resolution 54 and grant increased autonomy to HCM City. The forthcoming resolution aims to expand decentralisation, empower the city with more decision-making authority, introduce financial mechanisms to mobilise resources, and establish motivational policies beyond the current regulations' limitations.

The new resolution aims to alleviate existing obstacles while attracting investment resources from local, national, and international businesses, fostering growth and competition. — VNS