The HCM City government unveiled a plan on Tuesday to boost economic growth
next year, targeting to achieve a gross domestic product growth rate of 12%
compared to an estimated 11.5% economic expansion this year.

HCMC vice chairman Nguyen Thanh Tai, addressing the city’s
People Council session on Tuesday, said the city would strive for a gross
domestic growth of 12% with a total GDP value of VND475 trillion, or US$24.4
billion.

The higher economic growth target is seen obtainable as the
city’s economy has regained development momentum this year after a long period
of slowdown caused by the global financial crisis.

In an earlier report, the city government estimated its
total GDP this year at VND418 trillion (roughly US$21.5 billion), or a GDP per
capita of nearly US$3,000 given the city’s population at 7.25 million.

Tai in his report did not give specific targets for each
sector of the city’s economy in 2011. This year, the service sector, which accounts
for 54% of the GDP, is expected to expand 11.9% year on year, while the
manufacturing-construction sector, holding a 44.8% share in the city’s GDP,
grows by some 11.3%.

To promote sustainable development, Vice Chairman Tai said
the city would focus on key infrastructure projects.

The city will spend some VND15.2 trillion, or around US$750
million for 323 key infrastructure projects during 2011.

The city will also pay due care to production technology
replacement to improve the competitiveness of its economy.

“Next year, the city will also focus investment on upgrading
production technologies for the spearhead industries of the city such as
mechanics, information technology, chemicals and cooking processing to raise the
competitiveness of the city’s economy,” he said.

He clarified that the investment for technology renovation
would be channeled mostly into operational enterprises at industrial parks and
export processing zones.

The city will also carry out more programs for stabilizing
goods prices in the market so as to curb its consumer price index under 7%
compared to an estimated index of 9% this year.

In the opening sestion of the People’s Council meeting on
Tuesday, Tai also called on Council members to approve for nine programs
related to the socio-economic development of the city next year. One noteworthy
point in the programs is the suggested collection of environment fee by an
extra 10% charged on the selling price of tap water.

At the Council meeting on Tuesday, the vice chairman also
mentioned several issues of public concerns, including poor infrastructure
management and consequently the low quality of infrastructure projects, as seen
in the development of many “dead holes” on the street.

On Wednesday, members of the council will have a whole day
for discussing social and economic issues of the city as well as the nine
programs suggested by the people’s committee.

The question-and-answer session over urgent matters such as
traffic jams, slow progress of infrastructure projects, environmental pollution
and others will be held on Thursday between Council members and leaders of four
related departments.

Source: SGT