HCM City seeks $948m in private investment for sports, cultural projects

A rendering of the HCM City Cultural and Arts Centre in Thủ Thiêm urban area in Thủ Đức City. — Photo courtesy of HCM City Department of Culture and Sports

HCM CITY — HCM City is soliciting private investment for 23 projects in the sports and cultural sectors with a total estimated value of VNĐ23.6 trillion (US$948 million) under the public-private partnership (PPP) framework.

During a recent investment promotion conference, Phan Văn Mãi, chairman of the municipal People’s Committee, said that this year the city will prioritise attracting investment for five key projects, each exceeding VNĐ2.3 trillion ($92 million).

These priority initiatives include the construction of an arts performance centre in District 5 (VNĐ164 billion); the Gia Định Theater in Bình Thạnh District (VNĐ250 billion); the HCM City Cultural Centre in District 1 (VNĐ295 billion); the HCM City Cultural and Arts Centre in Thủ Thiêm urban area (investment amount to be determined); and a multi-purpose cultural and sports centre in Cần Giờ District (VNĐ1.6 trillion).

In addition, 18 projects costing over VNĐ21.2 trillion were presented for business evaluation during the meeting.

During the discussions, several investors expressed concerns regarding the anticipated returns on investment in this sector, indicating that they are not particularly appealing, raising apprehensions about scenarios in which "revenue fails to cover costs."

Investors also highlighted the uncertainties surrounding support policies and the likelihood of low returns on their investments.

They called for the establishment of a dedicated contact point to facilitate more efficient communication with city officials regarding the complexities inherent in public land projects.

Mãi, chairman of the People's Committee, acknowledged the challenges, stating: "While cultural projects may not yield high profitability, the city is committed to supporting investors through flexible management models and compensation mechanisms for revenue shortfalls."

Nguyễn Văn Hùng, minister of Culture, Sports and Tourism, said that the ministry would collaborate with the city to address challenges that fall outside its jurisdiction.

The municipal People’s Council has recently approved several key socio-economic resolutions aimed at tackling the city's challenges and driving growth in 2024, including calling for investment in public projects in various fields.

In addition to the 23 sports and cultural projects, the council also called for six projects in the healthcare sector and 12 projects in the education and training sector. — VNS