New development space from "breakthrough

Investment capital will certainly flow strongly, but if the mechanism cannot adapt in time, if the machine cannot move in time, that capital may "stop" and leave. This accurate warning has just been given by experts at a series of recent seminars and discussions.

Over the past two years, Resolution No. 98/2023/QH15 on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City has made an important contribution to the city's economic recovery and gradual stable development on the basis of renewing the growth model, restructuring, associated with the application of science - technology and innovation, contributing to the completion of the general legal system. However, in the context of streamlining the apparatus and arranging administrative units, when Ho Chi Minh City expands its natural - urban space and socio-economic space, the "98 key set" should be handed over to more people to simultaneously open new doors of opportunity, even to surpass them.

The dual driving force for Ho Chi Minh City is the resonance between the specific mechanism and the spirit of "local decision, local action, local responsibility". The level of budget independence, proactive rights in the organization of the apparatus, and the ability to access international capital flows will create new momentum. In addition, with the four pillars of the Politburo (Resolution 57 on breakthroughs in science and technology development, innovation and national digital transformation; Resolution 59 on international integration in the new situation; Resolution 66 on innovation in law-making and enforcement to meet the requirements of national development in the new era; Resolution 68 on private economic development), the scope for connection, exploitation and development is also opened and cleared in both breadth and depth. Therefore, Resolution 98 should be "updated", especially in the contents of fundamental, visionary and forecasting nature.

The proposed amendments and supplements to Resolution 98 this time are therefore very noteworthy, focusing on two important and practical contents: 1 amendment (Policy to attract strategic investors) and 1 supplement (Policy related to Free Trade Zones). In which, issues with forecasting nature accompanied by warnings, preferential commitments with binding "legal" and transparent nature are presented convincingly.

Because to be worthy of being a “strategic investor”, equity is only a necessary condition; the sufficient condition must be measured by credit history, ability to mobilize capital, experience in implementing similar projects, management capacity, human resources and more importantly, commitment to sharing long-term benefits (7-10 years). Many opinions also proposed a value-added mechanism, avoiding focusing only on large investors, ignoring potential domestic investors. Independent appraisal, public selection data and contracts should be added.

Along with that, technological criteria must be placed on par with financial ones: prioritizing the application of advanced technology, global innovation, linked to digital transformation and sustainable development. All of these will increase transparency and attractiveness; be a “block” for screening, thereby truly attracting strategic investors with quality and long-term vision.

For urban railway projects, an important recommendation is to bind the responsibility of enterprises when transferring projects. For the addition of the Free Trade Zone model, in the new development space, the vision should not stop at tax and fee incentives, but should be linked to the maritime economy, seaports, the transport and logistics network, tourism and trade services.

The tax and fee incentive package is very broad, and if not linked to efficiency, it may contradict the global minimum tax standard. On the contrary, if the incentive design is linked to logistics, transit, research and development, greening indicators and timely adjustment mechanisms are put in place, Ho Chi Minh City can turn this commercial area into a new “integration gateway” for the region and the whole country.

The above-mentioned additional and adjusted suggestions are “echoes” reflecting the needs of reality and paving the way for practical development. Ho Chi Minh City after the merger will not only be a large urban area in terms of area and population, but also “large” in terms of mechanism, vision and aspiration. Resolution 98, if given timely support, will be the tool to realize that aspiration.

NGUYEN QUAN CAT

Source: https://www.sggp.org.vn/khong-gian-phat-trien-moi-tu-nhung-chinh-sach-dot-pha-dac-thu-post812019.html