Dr. Tran Quang Thang - Director of the Institute of Economics and Management of Ho Chi Minh City said that the scale of budget revenue of 1 million billion VND is unprecedented in the city's development history, but completely feasible.
The economic structure of Ho Chi Minh City has strongly shifted to the service sector, currently accounting for over 60% of total revenue. Therefore, expanding revenue from this sector is a key direction.
Notably, the potential from the International Financial Center when more and more financial and technology corporations are expanding their operations; revenue from logistics, seaports, import and export - a sector in which Ho Chi Minh City is accounting for about 40% of the country's turnover.
In particular, when Can Gio International Transshipment Port comes into operation, Ho Chi Minh City has the opportunity to become the leading logistics center in Southeast Asia. In addition, the field of high-tech manufacturing and innovation continues to play an important role.
Ho Chi Minh City High-Tech Park alone brings export value of over 23 - 25 billion USD each year, maintaining stable growth momentum. Tourism, culture, and night economy industries are also expected to increase revenue thanks to high spending by tourists in the city.
Dr. Tran Du Lich: To achieve the 1 million billion VND target, the core thing is not to "increase revenue at all costs" but to expand the economy and improve revenue management efficiency.
First of all, Ho Chi Minh City needs to maintain high and stable economic growth, because when businesses develop, revenue from VAT, corporate income tax and personal income will automatically increase accordingly. The largest room is in the service and digital economy sector, accounting for more than 60% of the economic structure, including e-commerce, finance, logistics, tourism and the night economy.
Ho Chi Minh City needs to promote the development of the International Financial Center, attract financial institutions and technology businesses to expand revenue from financial services and cross-border transactions. At the same time, import and export and logistics continue to be pillars, especially when large seaport projects are implemented.
In the short term, revenue from land and public assets still plays a supporting role, through legal removals, accelerating land valuation and effectively exploiting the surplus real estate fund. However, this is not a long-term sustainable source of revenue.
In parallel with exploiting revenue sources, Ho Chi Minh City needs to improve the efficiency of tax management, combat revenue loss, combat transfer pricing, control e-commerce and business households, and promote digitalization and data interconnection.
In addition, administrative procedure reform and improvement of the investment environment are considered fundamental conditions.
