Prime Minister Nguyen Xuan Phuc on July 20 asked Ho Chi Minh City to speed up the implementation of a number of key investment projects and avoid wastefulness in project management.

Prime Minister Nguyen Xuan Phuc tells Ho Chi Minh City to accelerate
implementation of investment projects and avoid capital loss 

The city must keep a close eye on the implementation of investment projects in an effort to detect and stop corruption, wastefulness, and losses in investment, PM Phuc explained to municipal authorities and representatives of various ministries during the working session.

Expressing his dissatisfaction at the slow pace of implementation of several investment projects, PM Phuc requested the municipal administration and relevant ministries strive to iron out business snags to accelerate the operation of all economic sectors.

Priority must therefore be given to accelerating private and public investment, as well as other sources of investment, in a bid to get the southern city’s economy back on track in the remaining months of the year, PM Phuc noted.

It was reported that HCM City was able to achieve economic growth of just 1.02% during the first half of the year, far below the national average of an estimated 1.8%. Indeed, its six-month rate in previous years has been between 1.3- and 1.5-fold higher than the national level.

Moreover, the city has been allocated a sum of approximately VND41.7 trillion in public investment this year. By mid-July it had managed to disburse roughly VND19 trillion, or 45% of the annual plan, a figure that is higher than seen during the corresponding period last year.

The city has set a target of disbursing 80% of the total amount by October and raising the figure to 95% by the end of the year. 

At the working session, municipal authorities reported to the Prime Minister and ministries on a number of problems they have faced in undertaking projects funded by official development assistance and foreign preferential loans. The most notable examples are the Ben Thanh – Suoi Tien metro line No1 and Ben Thanh – Tham Luong metro line No2.

They also outlined some of the problems and difficulties that must be addressed on a number of projects implemented in the form of the public-private partnership or foreign investment.