Thu Thiem is a peninsula located across the Saigon River from District 1 and possessing a huge land bank of 657 hectares, Thu Thiem is to be redeveloped as a new centre of HCMC and is destined to become not only the new Central Business District, but also the city’s cultural hub of arts, entertainment, and leisure.
Thu Thiem has the potential to generate far-reaching improvements to life in Ho Chi Minh City and bolster the city’s image and standing on the world stage. However, We believes that radical new policies are required if the government’s vision of creating a “Pudong of Saigon” is to become a reality. The project must be accorded the status of a national priority and requires stronger support from the central government. Authorities should introduce special privileges and incentives to attract more investors to the area. In addition, the local government of Thu Thiem should be given special status by the central government to allow it to operate more effectively and enact policies which will assist and encourage the development of the area. If this is done, local and central governments will be able work together to encourage potential investors by introducing incentives such as tax deductions or exemptions. It is vital that the investment procedure for potential foreign investors is made clearer and simpler. The introduction of a “one stop” approval procedure for foreign invested projects will remove much of the uncertainty that could be inhibiting investment; minimize speculation and prevent land prices from becoming prohibitively high. Other suggested measures include limiting approvals for projects on the West bank of the Saigon River as these may deflect potential investment away from Thu Thiem.
The implementation of the measures outlined above will ensure Thu Thiem will stand out as the single most attractive focus for potential investment in Ho Chi Minh City and will support its development as the city’s new economic and financial centre.