From a special mechanism
Resolution 45/2022/QH15 of the National Assembly on piloting a number of specific mechanisms and policies for the development of Can Tho City, effective from March 1, 2022 and implemented for 5 years, has identified 6 specific mechanisms for the development of the city.
In particular, Can Tho is allowed to borrow through the issuance of local government bonds, loans from domestic financial institutions, other domestic organizations and from foreign loans from the Government to the city to borrow back, with the total outstanding loan balance not exceeding 60% of the local budget revenue received according to decentralization.
The total annual borrowing and excess expenditure of the city budget is decided by the National Assembly according to the provisions of the State Budget Law.
At the end of 2023 session, the People's Council of Can Tho City passed Resolution 48 on approving the policy of issuing local government bonds. The maximum issued bond volume is VND 2,000 billion (of which the allocation in 2024 is VND 1,000 billion and in 2025 is VND 1,000 billion).
The purpose of issuance is to implement key projects under the Medium-term Public Investment Plan approved by the City People's Council according to regulations, including: Western Ring Road Project of Can Tho City (connecting National Highway 91 with National Highway 61C), Provincial Road 917, Provincial Road 918, and new resettlement areas.
However, in 2024, Can Tho could not issue bonds.
Not enough to cover expenses, urgent capital mobilization
Can Tho's Project on issuing local government bonds clearly stated that as of April 30, 2025, the outstanding city budget in 2024 is more than VND 4,526 billion, all of which have been allocated for spending, not enough to allocate capital for urgent projects.
Can Tho City People's Committee acknowledges that the task of collecting the budget in 2025 is difficult, so the maximum collection target is only at the assigned budget"...In the context of a large demand for spending, especially spending on internal and inter-regional projects, highways... Therefore, mobilizing domestic capital for development investment is very necessary in current conditions" - the Project clearly stated.
According to the People's Committee of Can Tho City, the urgent issuance of these bonds will help ensure a balance of development investment capital to implement key projects, such as: Western Ring Road; renovating 5 key intersections; City Library...
The maximum issuance volume of bonds is expected to be VND 2,000 billion. In 2025, more than VND 884 billion will be issued, in line with the total loan amount assigned by the Prime Minister and the City People's Council to decide on the annual estimate.
These bonds are issued with a term of 10 years and 15 years. Based on the interest rate framework announced by the Ministry of Finance and the market situation at the time of issuance, the People's Committee of Can Tho City decides on interest rates for each issuance period.
Can Tho City People's Committee also committed that bondholders are guaranteed full and timely payment when principal and interest are due...
