Thursday, 09/09/2021 22:18 (GMT+7)
The research team of the University of Economics and Law (VNU-HCM) has revealed solutions to create the driving force for economic recovery in Ho Chi Minh City during the 4th COVID-19 outbreak.
Photo for illustration. (Source: vnexpress.net)
The given solutions are based on 2 assumptions: The city and neighboring provinces will basically control the 4th COVID-19 epidemic in September 2021 so that they can return to work under the new normal conditions in October. At the same time, the COVID-19 vaccine will continue to be administered on a large scale so that by the beginning of the fourth quarter of 2021, 70% - 80% of people in Ho Chi Minh City and neighbouring provinces will be fully vaccinated. By December 2021, basically 70% - 80% of Vietnamese people will be vaccinated with at least 1 dose.
The research team proposed that the National Assembly and the Government apply specific mechanisms to create impetus for the city and help the economic recovery process take place as quickly as possible, creating spillover effects leading to the growth of the key economic zone in the South and of the whole country.
Assoc. Prof. Dr. Hoang Cong Gia Khanh, Vice Headmaster of the University of Economics and Law, as representative of the research team, proposed solutions to issue Government bonds and transfer this capital to the city for use, with interest charged.
In addition, from the 2022 budget year, the city budget regulation rate is suggested to increase from 18% to 23%, and the city’s public debt ceiling will be raised to enable to issuance of municipal government bonds, helping the city have enough resources for investment and development.
The research team recommended that the city create a driving force through a job-regeneration support package with a proposal to support 25% of the regional minimum wage for businesses to maintain the threshold of the labor rate, and establish a new demand stimulus program on the basis of the interest rate support program which has been very successful for many years.
At the same time, the city should build an online wholesale market, improve the capacity of the health system, focus on the speed of digital transformation and increase the sustainability of regional linkages./.
BTA