Southern region urged to lead Việt Nam’s transition to high growth economy

Jun 10th at 13:25

10-06-2026 13:25:49+07:00

The southern economic region must move beyond its traditional role as the country's largest industrial and commercial hub and become a centre for innovation, high technology and regional integration if Việt Nam is to achieve double digit growth in the coming years, experts said at the second Việt Nam Economic Forum 2026 on Tuesday.

Economist Trần Du Lịch (middle) speaks at the Việt Nam Economic Forum 2026 in HCM City, highlighting the importance of regional connectivity and institutional reforms in supporting sustainable economic growth. — Photo nld.com.vn

The forum, organised by Người Lao Động newspaper under the theme “The Southern Economic Region: A Driver for Double-Digit Growth”, brought together economists, policymakers, business leaders and development experts to discuss strategies for sustaining growth in an increasingly competitive global environment.

Economist Trần Du Lịch said the southern region remains the country's most important economic engine, but future development will require a new growth model centred on productivity and innovation rather than relying on traditional factors such as labour, land and capital.

According to Lịch, one of the region's biggest opportunities lies in creating a unified economic space that allows localities to complement rather than compete with one another.

He said stronger coordination in infrastructure planning, industrial development and investment attraction would help eliminate overlapping projects and improve resource efficiency.

"The region has all the elements needed to become a growth centre comparable to leading economic regions in Asia. What is needed now is a governance model that encourages collaboration and long-term planning," he said.

Lịch also stressed that institutional reform remains one of the most important factors in unlocking growth potential.

Administrative barriers, fragmented planning and lengthy investment procedures continue to hinder business expansion and infrastructure development, he noted.

Meanwhile, Dr Nguyễn Đức Khương, chairman of the Organisation for Science and Experts of Việt Nam Global, said the southern region is entering a critical period in which global economic shifts could create both opportunities and challenges.

According to Khương, the restructuring of international supply chains, the rise of artificial intelligence and growing demand for green products are reshaping investment flows worldwide.

"Việt Nam has a unique opportunity to attract high-quality investment if it can improve infrastructure, strengthen human resources and create a more innovation-driven economy," he said.

Khương argued that the region should focus on becoming a destination for technology-intensive industries rather than competing solely on production costs.

He said sectors such as semiconductors, artificial intelligence, biotechnology, advanced manufacturing and digital services could become major growth drivers over the next decade.

The economist also highlighted the importance of developing world-class universities, research centres and innovation ecosystems capable of supporting industrial transformation.

Experts attending the forum agreed that human resource development will be decisive in determining whether the region can successfully move up global value chains.

Many businesses reported increasing difficulties in recruiting highly skilled engineers, technology specialists and management professionals despite growing demand from investors.

According to participants, stronger links between educational institutions and enterprises are needed to ensure that training programmes align more closely with labour market requirements.

Several speakers proposed special mechanisms to attract overseas Vietnamese professionals and international experts to contribute to the region's development.

Infrastructure development remained a major focus throughout the discussions.

Experts noted that despite significant progress in transport investment, logistics costs in Việt Nam remain relatively high compared with regional competitors.

They called for faster implementation of strategic transport projects, including expressways, ring roads, deep water ports, railway networks and logistics centres.

According to economists, improved connectivity between HCM City and surrounding provinces would create larger labour markets, facilitate trade and reduce transportation costs for businesses.

Delegates also discussed the growing importance of financial services in supporting economic expansion.

Several experts suggested that the city should accelerate efforts to develop an international financial centre capable of mobilising capital for major infrastructure and technology projects.

A stronger financial ecosystem, they said, would help businesses gain access to long-term funding and strengthen the region's attractiveness to international investors.

Business representatives participating in the forum stressed the need for continued reforms to improve the investment climate.

Many enterprises welcomed recent efforts to simplify administrative procedures but said additional measures would be needed to reduce compliance costs and accelerate project approvals.

Experts noted that the private sector currently contributes a large share of economic output and employment, making it an essential partner in achieving national growth targets.

Public-private partnerships, they said, will be increasingly important in financing infrastructure and supporting innovation initiatives.

Discussions also focused on green growth and sustainable development.

As international markets impose stricter environmental standards, speakers emphasised the need for businesses to adopt cleaner production technologies and improve energy efficiency.

The transition toward a green economy was viewed not only as an environmental requirement but also as an opportunity to enhance competitiveness and attract investment.

According to experts, the southern region possesses favourable conditions for developing renewable energy, green logistics and sustainable industrial parks.

Concluding the forum, participants agreed that the southern economic region will remain the primary driver of Việt Nam's economic growth for decades to come.

However, they stressed that maintaining high growth rates will require comprehensive reforms, stronger regional governance, accelerated infrastructure investment, greater support for innovation and a sustained commitment to developing high quality human resources.

Only through coordinated action across government, business and academia, they said, can the region fully realise its potential and contribute to Việt Nam's ambition of becoming a high income economy in the coming decades.

Bizhub

- 07:51 10/06/2026