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New PM Supports Plan to Let HCMC Retain More Budget Revenue

The city currently has the lowest budget retention rate of any locality.

VnExpress reports that Prime Minister Phạm Minh Chính supports a proposal from the Ho Chi Minh City municipal government to increase the proportion of budget revenue that it is allowed to keep.

Currently, the metropolis retains just 18% of of the money it brings every year, a figure that was reduced from 23% in 2017. Nguyễn Thành Phong, chairman of the municipal People's Committee, has asked to return to that percentage for the 2022–2025 period.

Ho Chi Minh City contributes 27% of Vietnam's total national budget, by far the most of any individual locality, yet it keeps less than any other city or province. Hanoi has the second-lowest budget retention rate, at 38%. Phong aims to use increased funding to develop Thu Duc City, which city leaders hope will eventually contribute 25% of national GDP on its own.

In the first four months of 2021, the southern metropolis collected over VND140 trillion in public revenue, exceeeding the official projection by 38.4%.

Meanwhile, the city has struggled to move forward with much-needed infrastructure projects due to financial shortfalls. Major developments such as the first metro line, Thu Thiem 2 Bridge, Long Thanh International Airport and an expansion of Tan Son Nhat have all faced delays in part due to money problems.

Prime Minister Chính visited the city last week, marking his first official trip since taking office earlier this year.