HCM City (VNA) – Leaders of Ho Chi Minh Cityrecently held a meeting with foreign-invested (FDI) businesses, calling on themto work side by side with the southern metropolis of Vietnam toward the goal offast and sustainable development.

The event on April 21 drew representatives offoreign businesses’ associations and nearly 200 FDI companies in HCM City.

Secretary of the municipal Party CommitteeNguyen Thien Nhan said over the past years, HCM City has made efforts toimprove investment climate, step up administrative reforms, streamlineprocedures, increase transparency and boost IT application in the settlement ofadministrative procedures to enhance the attractiveness to foreign investment.

As a result, the city attracted 6.6 billion USDin FDI in 2017, surging over 90 percent from the previous year. In the firstquarter of 2018 alone, the figure stood at 1.37 billion USD, compared to 5.8billion USD of the entire country.

However, he said, HCM City is also facing anarray of challenges typical of a big city such as outdated transport system,and overloading in infrastructure, hospitals, schools and housing due to rapidpopulation growth. Meanwhile, heavy climate change impacts and risks of seriousflooding have also negatively influenced local people’s life and businesses’activities.

Secretary Nhan called on FDI enterprises to takepart in key socio-economic development projects, noting that the city particularlyencourages them to suggest measures and share experience in building a smartcity.

He affirmed that HCM City considers businessesand people’s satisfaction as the meter of the development and efficiency of itsadministrative apparatus’ performance.

[Ho Chi Minh City tops nation in FDI attraction]

At the meeting, many FDI companies described HCMCity as a dynamic city with fast growth rate and a destination drawing foreigninvestors’ interest. However, they also said to attract foreign capital forfast and sustainable development and smart city building, the city will have totackle policy and human resources problems.

A representative of the European Chamber ofCommerce in Vietnam (EuroCham Vietnam) said European companies wants HCM Cityto put forth more open and transparent policies. The legal system regardinginvestment activities needs to be consistent in both theory and practice. It isalso necessary to improve the quality of human resources, not only manualworkers but also middle- and high-level manpower, in order to meet foreignbusinesses’ demand.

Sharing the same view, Saranya Skontanarak,Chairwoman of the Thai Business (Vietnam) Association, said manpowerquality not only affects the attractiveness to foreign investment but also servesas a decisive factor of smart city building success.

She added HCM City, and on a larger scale,Vietnam, no longer has labour cost advantages. Therefore, the city must havesolutions to promote labour productivity and quality. Building a smart cityrequires not only modern technology but also capable personnel to operate thesystem and enjoy the benefits it will generate.

Seck Yee Chung, Vice President of the SingaporeBusiness Group - HCM City Chapter, said HCM City and many other cities inVietnam want to build smart cities, which is a necessary step toward modernisingcities and solving hot issues pertaining to transport infrastructure,environment and database. 

Singapore is experienced in smart city buildingand technology-based development, and it is ready to help HCM City and Vietnam.However, he said, the country needs policies which are more open to investmentin technology services.-VNA