The southern hub is to receive greater financial and administrative autonomy from the national government.
In a meeting with city leaders last month, Prime Minister Nguyen Xuan Phuc backed the move to keep more of Saigon's money in its municipal budget, reports VnExpress.
Although the southern hub accounts for just 0.6% of the country's total area, government statistics find roughly 6.6% of the national population lives within the Saigon city limits, according to the news outlet. The city also contributes 22% to Vietnam's GDP as well as nearly 30% of the state budget.
As such, city officials are now aiming to retain more of the city's income for use in its own projects. This request has been met with positive response by national officials, including the prime minister, as the government pushes to transform Saigon into an international city.
Prime Minister Phuc said the city must become “the pearl of the East Sea”, according to VnExpress.
He continued: “The Politburo has agreed to delegate more financial and administrative powers to Ho Chi Minh City. In terms of public financial management, the city will have more budget independence, including more control over budget revenue and investment projects. [In terms of administrative management], the city can make its own decisions on human resources and [functional] organizations.”
Saigon's economy has expanded by 7.47% so far this year and is expected to reach 8-8.5% by the end of 2016. Compared to national economic growth, Vietnam's GDP rose by 5.52% in the first half of 2016, down from the same period last year.
