HCMC targets business promotion breakthrough

09:58 | 19/04/2018 Economy- Society

(VEN) - Ho Chi Minh City (HCMC) is striving for a breakthrough in business promotion policy to increase the contribution of local enterprises to its socioeconomic development, said HCMC Party Committee Secretary Nguyen Thien Nhan at a March 17 meeting between HCMC leadership and leading businesses.

hcmc targets business promotion breakthrough
The USM Company in the Saigon Hi-Tech Park produces cardiac stents at one-third the cost of imported products of the same kind, for domestic sales and export to the US and Japan

HCMC Party Committee Secretary Nguyen Thien Nhan said HCMC reached an average annual economic growth of 8.15 percent in 2016 and 2017, 1.25 times the country’s average, and has contributed about 22 percent to the national economy. The HCMC economy for the first time exceeded VND1,060 trillion in value.

Almost 78,000 enterprises totaling VND904 trillion in registered capital were founded in the city in 2016 and 2017, while 119,000 other city-based businesses registered to change business lines and increase capital by a total of more than VND563 trillion.

In those two years, the city attracted an additional 1,697 foreign direct investment (FDI) projects totaling US$3.68 billion in capital, while 375 other city-based FDI projects increased capital by US$1.65 billion. In addition, 4,338 foreign investors completed procedures to contribute US$4.73 billion worth of capital to domestic enterprises, taking the total to US$10.06 billion in 2016 and 2017. In the first two months of 2018, the city attracted an additional FDI capital of US$2.1 billion.

However, according to HCMC Party Secretary Nguyen Thien Nhan, the city’s investment environment is still hampered by backward transport infrastructure, heavy housing pressure, increasing climate change, complicated administrative procedures, and inefficient performance by policy implementation officials.

HCMC People’s Committee Chairman Nguyen Thanh Phong said that in 2018, apart from attracting investment for 127 projects with an average capital of more than VND500 billion per project, the city will launch a smart city development plan, including building a shared data warehouse and an open data ecosystem; forming a center for the city’s socioeconomic development simulation and forecast; constructing a smart city management center; and building an information security and safety center.

Phong said the city would continue to ensure policy stability and consistency, improve the investment environment, and strive for 70 and 30 percent of online public services to reach level 3 and level 4 by 2020, respectively. The city also plans to help businesses reach sustainable, international standard development; improve its startup ecosystem and promote innovation; ensure that all policies under research and implementation will help enterprises grow and not burden them; and protect the legitimate rights and interests of enterprises. Enterprises will only be inspected once a year as part of this policy trend, he said.

The Vinh