HCM City seeks to improve growth quality, economic competitiveness

According to Professor, PhD Nguyen Trong Hoai, Vice President of the University of Economics, said the southern metropolis should promote effective and innovative economic models while targeting long-term goals by making efficient use of resources such as technology, infrastructure and institution.

Simultaneously is improving performance management (including activities which ensure that goals are consistently being met in an effective and efficient manner) by using information and communication technology for public transactions as well as investing in human resources.

The city needs to expand connectivity and development space via improving infrastructure networks for satellite urban areas, restructuring production and business, and training highly-skilled workers for sectors that the city has been and will prioritise to develop.

Professor Nguyen Thi Canh from the Center for Economic and Financial Research under the University of Economics and Law held that it is necessary to focus on such factors as investment capital, investment structure, high-quality labour training, and market development to increase the total factor productivity (TFP) for economic growth.

She suggested attracting investment in intensive development projects and pushing ahead with technological reform. At the same time, it is important to have policies to support more effectively capital for small-and-medium-sized enterprises (SMEs).

The southern economic hub should also prioritize hi-tech investment projects to reduce labour-intensive industries, she added.

She highly recommended the development of support industries and other key industrial sectors towards improving investment efficiency and reduction of import costs.

She also suggested building a coordination mechanism between enterprises, administrative agencies, training facilities, universities, colleges and vocational training centers to improve the quality of human resources.

PhD Luong Van Khoi from the National Centre for Socio-Economic Information and Forecast under the Ministry of Planning and Investment highlighted the private economic sector; institutional reform and business environment; and science-technology and labour productivity as core contributors to the city’s economic growth.

Therefore, the city needs specific strategies and policies to increase productivity for businesses and build a global value chain with major enterprises playing the leading role, he proposed.

Another solution is enhancing the connectivity between HCM City and proximate localities to expand development potential and optimise advantages of the whole region, experts suggested.

Local authorities should propose a mechanism to boost connectivity in the southern key economic region – which HCM City will play a central role in terms of finance, high technology and trade.

The application of this mechanism will help the city and other southern localities to build a value chain of goods, especially industrial and agricultural products.

Secretary of of the municipal Party Committee Nguyen Thien Nhan said the programme to improve growth quality and economic competitiveness is one of the seven breakthrough programmes of the city to meet the demand of integration in 2016-2020.

He added that there are still a lot of resources for the local development such as land, scientific and technical staff, and the capital attraction capacity.

HCM City maintained annual average growth of 8.2% in 2015-2017, according to Director of the municipal Department of Planning and Investment Su Ngoc Anh.