Finance Minister Vu Van Ninh has agreed with a HCM City proposal that it issue VND22 trillion (US$1.3 billion) worth of bonds to raise additional funds for two major cash-strapped projects in HCM City.
During a working session with city authorities on Wednesday, Ninh also approved the city's proposal that it receive in advance more than VND2 trillion ($117.6 million) from the central budget as bonus for exceeding its tax collection target last year.
The proposals had been made by the municipal People' s Committee vice chairwoman Nguyen Thi Hong to help the city finance ongoing projects, launch new ones and expedite work on the Hiep Phuoc Port Industrial Park and the Thu Thiem New Urban Area.
Minister Ninh said the two projects would help attract foreign investment in the years to come and pledged his ministry would work closely with the city administration to carry out projects beneficial to the country. The city also wanted the Government to advance money for implementing the two projects.
Hong blamed the current shortage of funds on the additional VND8 trillion ($470.6 million) that had to be given to support displaced residents in the Thu Thiem New Urban Area.
The first phase of Hiep Phuoc Port Industrial Park is nearing completion and its second phase is under way. The project is expected to be up and running in September.
The Thu Thiem New Urban Area has finished about 60 percent of site clearance and compensation work but is still short of funds.
With infrastructure and road access to the new urban area due to be completed by the end of the year, the city has proposed that the finance ministry provides more funds to speed up site clearance and compensation for the remaining areas.
The city's Taxation and Customs departments have forecast a sharp fall in this year's budget collection by roughly VND12 trillion ($706 million), or 20 percent of the initial estimate.
Vietnam New
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