Ho Chi Minh City sets bold vision as mega metropolis

Ho Chi Minh City sets bold vision as mega metropolis

A conference between city leaders and the foreign-invested business community opened in Ho Chi Minh City on October 30.

A conference between city leaders and the foreign-invested business community opened in Ho Chi Minh City on October 30

At the conference, representatives from leading foreign business associations presented strategic recommendations, highlighting six key areas to improve the investment environment in Ho Chi Minh City.

The top priority was administrative reform and the investment environment. The associations called on the city to simplify administrative procedures and resolve overlapping functions among departments. The primary demand is to enhance transparency and predictability in law enforcement, particularly in investment licensing, land use, customs, and visa processes.

Regarding the establishment of an International Financial Centre (IFC), the associations strongly recommended that the city adopt greater autonomy and international best practices to develop a regionally competitive IFC. They suggested a focus on green finance, fintech, and innovation to attract talent and investment.

In infrastructure and logistics development, the associations urged the acceleration of key transportation projects such as the metro system, airports, and seaport networks, along with the development of public transport.

Other recommendation included the promotion of a circular economy, renewable energy, emissions management, and green finance policies, as well as public–private partnerships for sustainable development. They also emphasised the need to strengthen vocational training, digital and green skills, and international cooperation to cultivate high-quality talent, especially in line with global standards such as International Financial Reporting Standards, environmental, social, and governance (ESG), AI, and fintech, while emphasising the need for a clear regulatory framework on cybersecurity and data protection.

The year 2025 marks a transformative milestone for the city as it enters a new phase of development following the administrative and spatial integration with Binh Duong and Ba Ria-Vung Tau provinces.

The newly expanded Ho Chi Minh City is positioning itself as a mega metropolis, a regional and international hub for economy, finance, services, trade, logistics, high-tech industry, and coastal tourism.

In his opening remarks, Tran Phu Lu, director of the Investment and Trade Promotion Centre (ITPC), said that the foreign-invested business community has contributed capital, technology, and advanced management expertise, and helped foster a spirit of integration, innovation, and sustainable growth.

“Despite global challenges, foreign investors have continued to demonstrate strong confidence in Ho Chi Minh City, a dynamic, open-minded, and continuously innovative locality. This confidence serves as the driving force for the city to further improve administrative reforms, enhance the investment environment, and support sustainable business development,” Lu said.

Dr. Truong Minh Huy Vu, director of the Ho Chi Minh City Institute for Development Studies, highlighted that the integration with Binh Duong and Ba Ria-Vung Tau represents an unprecedented milestone in Vietnam’s urban development history.

“This event opens a once-in-a-generation opportunity to reconfigure the entire development space, shaping a new Ho Chi Minh City into a unique administrative and economic entity. The city is envisioned as a national growth engine and regional leader, aspiring to become a true international megacity of Southeast Asia,” Dr. Vu noted.

According to data from the Institute for Development Studies, the new Ho Chi Minh City now covers more than 6,770 square kilometres with a combined economic scale of VND3.03 quadrillion (approximately $123 billion), accounting for 23.5 per cent of Vietnam’s GDP.

The city’s regional GDP per capita has been estimated at VND220 million ($8,944) in 2025. This is 1.7 times higher than the national average.

The city is expected to contribute VND737 trillion ($28.3 billion) to the state budget, representing 36.7 per cent of total national revenue. The expanded population is projected to reach 13.6 million people, including a workforce of about 7.3 million.

For 2025-2030, Ho Chi Minh City is aiming for rapid and sustainable socioeconomic growth, targeting an average annual regional GDP growth rate of 10-11 per cent. By 2030, average incomes are expected to reach $14,000-15,000.

“The city will focus on improving growth quality, with total factor productivity (TFP) contributing 60 per cent to growth, with the digital economy accounting for 30-40 per cent. The long-term vision to 2045 is to rank among the world’s top 100 cities,” Dr. Vu said.

To realise this acceleration and breakthrough vision, the city will pursue five strategic pillars, including institutional improvement; transformation of the growth model, development of strategic infrastructure, investment attraction; and human resource development.

Among these, institutional reform stands out as a top priority, including proposals for special administrative mechanisms, breakthrough policies on renewable energy, and solutions to obstructions in real estate, capital, and digital transformation.

In terms of science and technology, the city is committed to increasing total research and development expenditure to 23 per cent of regional GDP, while advancing key infrastructure projects such as the Can Gio transshipment port and facilities for the IFC.

According to Nguyen Thanh Toan, deputy director of Ho Chi Minh City Department of Finance, the newly integrated Ho Chi Minh City has reaffirmed its position as Vietnam’s top destination for foreign investment, with total valid foreign direct investment capital reaching $141.2 billion across 19,840 projects as of September 30.

In the first nine months of 2025 alone, total new and additional registrations reached nearly $7.13 billion, marking a remarkable 37.43 per cent increase compared to the same period in 2024.

VIR