On February 8th, Chairman of Ho Chi Minh City People’s Committee Phan Van Mai chaired the sixth meeting of the Advisory Council for the implementation of Resolution 98. After 18 months of official effectiveness, special mechanisms and policies have yielded positive results for the city’s development, contributing to overcoming institutional bottlenecks and mobilizing resources.
This is a significant milestone as Resolution 98 on pilot special mechanisms and policies for Ho Chi Minh City’s development has reached the halfway point before its mid-term review. Meanwhile, setting a double-digit growth target for 2025 requires the city to further leverage the resolution to address the challenge of attracting investment capital and boosting developmental drivers.
Appropriate Legal Framework
In his opening remarks, Chairman Phan Van Mai acknowledged that achieving double-digit growth is a challenge for the locality. However, the city has the foundation to aim for this goal and will strive to achieve it.
“We understand the difficulties businesses face at the end of 2024 and beginning of 2025, reflected in new business establishment figures, total capital, and the number of businesses ceasing operations. The city hopes experts can provide suggestions and analyses to overcome current challenges and aim for long-term sustainable development,” said Chairman Phan Van Mai.
Chairman Phan Van Mai chaired the Advisory Council meeting for implementing Resolution 98 (Photo: Q.Huy).
The city leader informed that the local government, along with the country, is facing significant changes in organizational restructuring and management methods. To prepare for the conclusion of Resolution 131 on urban administration, Ho Chi Minh City needs to consider and calculate to propose a Special Urban Management Law or alternative approaches suitable for the situation.
Chairman Mai stated that recently, the Ministry of Home Affairs suggested not establishing People’s Councils at district and ward levels, proposing a model where the People’s Committee consists only of a chairman and vice-chairmen operating under an administrative chief executive system. This model will bring significant changes to local governments and administrative agencies.
“The city expects experts to research and provide feedback. After concluding Resolution 131, the city can propose a separate law or different approach to establish appropriate legal infrastructure for Ho Chi Minh City’s development,” Chairman Phan Van Mai emphasized.
Dr. Truong Minh Huy Vu, Director of the Ho Chi Minh City Development Research Institute (Photo: Q.Huy).
Dr. Truong Minh Huy Vu, Director of the Ho Chi Minh City Development Research Institute, noted that after 18 months, Resolution 98 has yielded clear results, contributing to resolving bottlenecks and boosting socio-economic growth in the 2023-2024 period.
“Resolution 98 has ignited a spirit of creativity and boldness among the city’s staff,” Dr. Vu stated.
Moving forward, the implementation of Resolution 98 should focus on PPP projects for social infrastructure, especially cultural and sports facilities; developing TOD models; attracting strategic investors; and addressing green growth issues (green transportation, rooftop solar power, green economy, carbon credit market pilots, etc.).
Need to Secure 8% First
Assoc. Prof. Dr. Tran Hoang Ngan, Assistant Secretary of Ho Chi Minh City Party Committee, believes that to achieve 10% growth in 2025, the city must first secure 8% growth and then add another 2%. These solutions need to be implemented according to a realistic timeline.
Dr. Ngan recalled that in 2017, 2018, and 2019, Ho Chi Minh City easily achieved 8% growth based on traditional drivers. Social investment capital in Ho Chi Minh City was approximately 446 trillion VND, accounting for 33% of GDP in 2019. However, since the onset of the COVID-19 pandemic, social investment capital in the city has drastically decreased.
“In 2024, social investment capital in Ho Chi Minh City was only 395 billion VND, accounting for over 22% of GDP, significantly lower than pre-pandemic levels. To reach the 33% social investment capital ratio of 2019, the city needs to mobilize around 660 trillion VND in 2025,” Dr. Ngan analyzed.
Ho Chi Minh City needs to mobilize 660 trillion VND in 2025 to reach the pre-COVID-19 social investment capital ratio (Photo: Hai Long).
Of this, public investment and state sector capital account for about 100-120 trillion VND. According to Dr. Ngan, the key to securing 8% growth lies in mobilizing private and foreign investment, estimated at around 500 trillion VND.
Current solutions include providing land to investors at reasonable prices through the rapid development of new industrial zones and the restructuring of existing ones to create clean land for investment attraction. Additionally, the city needs to focus on addressing infrastructure issues such as transportation and social infrastructure.
“Resolution 98 has opened up institutional opportunities; however, the root of the issue lies in the investment environment and administrative reforms. We see projects still facing delays, and competitiveness indices need continuous improvement,” the expert highlighted.
The remaining 2% growth comes from new growth drivers in science and technology, innovation (Photo: Hai Long).
After securing 8% growth for 2025, Assoc. Prof. Dr. Tran Hoang Ngan believes that the foundation for achieving the additional 2% lies in leveraging the International Financial Center and the international transshipment port at Can Gio, integrated with the coastal city development and free trade zone. Additionally, Ho Chi Minh City needs to capitalize on new growth drivers in science and technology, innovation, and cultural industries.
“Securing 8% growth from traditional drivers and utilizing new factors to achieve the additional 2% ensures that Ho Chi Minh City will achieve double-digit growth in the near future,” Assoc. Prof. Dr. Tran Hoang Ngan emphasized.
Following the experts’ opinions, Chairman Phan Van Mai stated that the city has developed scenarios and branch plans to achieve double-digit growth. These plans involve mobilizing total social investment, resolving business issues, addressing stalled projects, improving the investment environment, and enhancing resource mobilization.
“This year, Ho Chi Minh City will allocate 230 hectares of land from industrial zones, mobilize 110 trillion VND in public investment, and attract 90 trillion VND in foreign investment. Recently, the city has worked with banks and determined that it can mobilize 350 trillion VND or more for social investment,” the Chairman said.
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