HCM City Needs $1B for Transport Infrastructure Projects Annually

Ho Chi Minh City is estimated to need VND20 trillion ($1 billion) for transport infrastructure projects annually, Doan Kim Thanh, an official from the municipal Institute for Development Studies said at a meeting on May 17.

The municipal budget, however, meets only 0.25% of the sum, Thanh said, proposing the city to attract idle capitals from residents for these projects.

The proposal received strong support by many participants at the meeting.

If applied successfully, this will be an effective channel to attract people who get site clearance compensations to buy shares or convertible bonds of infrastructure developers, Thanh noted.

Former Deputy Minister of Natural Resources and Environment Dang Hung Vo said the ineffective use of compensations have caused social evils in many localities over the past recent years, therefore, it is necessary to mobilize people’s idle capital.

Ho Chi Minh City disbursed VND11.88 trillion for infrastructure projects in the first three months this year, up 15.1% from a year earlier. The city expects to invest VND33.665 trillion in development projects this year.

TBKTSG

Tags: HCMCity Transport Infrastructure Projects, Vietnam Infrastructure