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Gov’t outlines ways to keep business afloat
Major measures will be taken to minimise the impact of the global economic downturn in 2009, according to HCM City People's Committee.
"We must help businesses with their difficulties so they can survive the global recession," said the chairman of the HCM City People's Committee, Le Hoang Quan, at a meeting on Friday.
Quan asked Government agencies to work together with the business community to promote production and trade and attract more foreign direct investment to reach the city's 2009 targets.
He said the city's GDP growth for the year must exceed 10 per cent, while the consumer price index (CPI) in the city must be lower than 15 per cent.
Efforts would also be taken to speed up administrative reform to ensure order, security and traffic safety.
Quan also told Government agencies to simplify administrative and investment formalities to create favourable conditions for enterprises.
Top priority would be given to solutions to traffic problems, said the director of HCM City Department of Transportation and Public Works, Tran Quang Phuong.
Phuong said this year a number of transportation infrastructure projects would be accelerated, including beltroads No 1 and 2; the road from Phu My Bridge to Rach Chiec Bridge; the expansion of Ha Noi Highway and the National Highway No 13 linking HCM City with Binh Duong Province; expansion of Highway No 10 linking the city with Long An Province; and completion of Phu My Bridge and Nhieu Loc-Thi Nghe Canal project.
Phuong said HCM City licensed 40,000 automobiles in 2008, bringing the number of automobiles in the city to 372,000, not including some 60,000 entering the city every day.
The city has some 3.7 million motorcycles, a year-on-year increase of 10 per cent, not including some 1 million motorcycles from other provinces now operating in the city.
Deflation is another major problem facing the city in 2009. Although commercial banks have lowered interest rates on their loans, businesses have still found it hard to get access to loans.
Nguyen Thi Hong, deputy chairwoman of HCM City People's Committee, has asked banks to help businesses deal with challenges.
Banks should have sufficient cash, she said, adding that they must have plans to allocate the soft loans offered as part of the Government's recent economic stimulus package.
According to HCM City People's Committee's figures, despite the global economic downturn, the city's GDP growth rate in 2008 was 1.7 times higher than the rate of 2007.
Total revenues of the city in 2008 amounted to VND122,240 billion, exceeding the target by 24 per cent, and a year-on-year increase of 34 per cent.
Viet Nam News
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