HCM City makes restructuring progress - HCM City makes restructuring progress - Website Ho Chi Minh City
Ho Chi Minh City has achieved success in implementing a project to restructure its economy, including public investment, State-owned enterprises and the banking system in the 2011-14 period, heard a meeting held last week in the city.
From 2011-14, public investment in the city remained stable. Total state investment accounted for 24.3 percent of the city's total investment in 2011. It fell to 21.8 percent in 2012 and 20.9 percent last year.
On average, total state investment accounted for 22.3 percent of the city's total investment, according to figures from the city's Department of Planning and Investment.
Meanwhile, total investment from non-state sectors rose from 59.9 percent to 62.7 percent of the city's total investment last year. Foreign direct investment went up slightly from 15.5 percent in 2011 to 16.1 percent last year.
In addition, the city has created the most favourable conditions and incentives for the private sector to develop infrastructure and other potential industries, products and services.
The city has also achieved positive results in restructuring the banking system, including all 14 joint-stock commercial banks in the city.
The State Bank of Vietnam Governor has approved the restructuring plans of 11 commercial banks, and is considering the plans of the remaining three commercial banks.
The city targets that by 2015 there will be no weak commercial banks, and commercial banks will be established at the regional level.
As for the restructuring of State-owned enterprises, the city has a total of 108 State-owned enterprises, of which 15 businesses are under the process of merging, closing or bankruptcy, and will be sold to other organisations.
The city has approved a plan to equitise 14 corporations.
Cao Sy Kiem, member of the National Assembly Economic Committee, said HCM City achieved positive results in restructuring the economy, which can be seen as a model for other localities to follow.
For example, the city attracted more investment from the private sector and reduced its reliance on funds from the State budget. It also established a modern administration management system for enterprises, he said.