VNBusinessNews – HCM City will boost the flow of credit to businesses and stimulate consumption to sustain economic growth in the face of the recession, its leader has said.

Speaking at a meeting in the city on Thursday to discuss social and economic development in the coming months, People’s Committee Chairman Le Hoang Quan said the measures were urgently needed after the economy contracted last month.

Exports fell 6.8% year on year while industry shrank by 0.1%.

He said the city would continue to implement measures recommended by the Government to spur growth, stimulate investment and consumption, and control inflation.

Dao Thi Lan Huong, director of the Department of Finance, said bank procedures should be simplified so that businesses can quickly access credit and the Government’s 4 per cent interest rate subsidy provided to help small-and medium-sized enterprises.

She admitted that the global recession had affected the city’s financial system and impeded growth.

Quan said another imperative this year was to check prices. The administration has tasked the Department of Industry and Trade with stabilising prices, ensuring supply of essential goods, and preventing counterfeits and fraud.

People’s Committee Deputy Chairman Le Trung Tin said to stimulate foreign investment, the city needed to simplify paperwork and quickly put in place vital infrastructure like roads, bridges and anti-flooding facilities.

He promised early completion of major works like the Chu Y, Calmette, Nguyen Van Cu and Phu My bridges and the East-West Highway section from Binh Chanh District to Thu Thiem.

He said foreign direct investment pledges in January fell 29.5% compared with the same month last year.

Quan stressed the need to speed up administrative reforms to combat the recession and stimulate production, investment, and consumption. (VNS)