Ho Chi Minh City Vows to Mobilize Domestic Capital to Reach Economic Growth Target

Strategic Insights -

Ho Chi Minh City, driven by a desire to meet its state-set economic growth target of 11.5-12 percent for 2004, has made a commitment to focus on capital mobilization and accelerate major economic development projects. Led by Mayor Le Thanh Hai, the city has outlined a plan to mobilize all domestic capital resources to reach the 2004 investment target of VND42 trillion (US$2.7 billion) for infrastructure projects such as roads, bridges, water, electricity, and low-income housing. A key component of this plan involves the use of site clearance compensation to expedite construction of these projects.

Key Takeaways:

  • Ho Chi Minh City aims to mobilize domestic capital resources to reach a 2004 investment target of VND42 trillion (US$2.7 billion) for major infrastructure projects.
  • The city plans to spend VND10 trillion ($637 million) on site clearance compensation to expedite construction of infrastructure projects.
  • The city has asked the State-run Development Assistance Fund to lend nearly VND4.7 trillion ($300 million) to develop four major projects: Thu Thiem Bridge, Thu Thiem New Residential Area, Hiep Phuoc Industrial Park, and Sai Gon High Tech Park.
  • The city plans to improve public transport, including increasing the rate of bus passengers from 5 percent to 10 percent of the city's population by 2005.
  • Ho Chi Minh City has recorded economic growth of 10.7 percent over the past nine months, with the service sector increasing 9.6 percent and the tourism sector showing 33.8 percent growth.

Statistics:

  • VND42 trillion (US$2.7 billion): 2004 investment target for major infrastructure projects.
  • VND10 trillion ($637 million): Amount allocated for site clearance compensation.
  • VND4.7 trillion ($300 million): Estimated loan from the State-run Development Assistance Fund for four major projects.
  • 5 percent: Current rate of bus passengers in the city.
  • 10 percent: Target rate of bus passengers by 2005.
  • 10.7 percent: Economic growth rate over the past nine months.
  • 9.6 percent: Growth rate of the service sector over the past nine months.
  • 33.8 percent: Growth rate of the tourism sector over the past nine months.

Sources:

  • (VNA), (date not specified)
  • Asia Pulse, October 5 (date not specified)
  • "Ho Chi Minh City Vows to Focus on Capital Mobilisation to Speed up Major Economic Development Projects" (original article, date not specified)