Ho Chi Minh aims to become international megacity
Throughout Vietnam’s journey of national liberation, construction, and development, particularly during the 50 years of national reunification and nearly 40 years of implementing the Doi Moi (renewal) process, Ho Chi Minh City has consistently made a strong impact that has helped shape the nation’s comprehensive development. Many of its successful economic models, solutions and management approaches have inspired other localities, driving innovation for the country’s common progress.
In the years immediately after liberation, especially in the late 1970s and early 1980s, the city faced daunting challenges as its Gross Regional Domestic Product (GRDP) growth slowed to just 2.7% per year. Yet even during those difficult times, HCM City actively experimented reforms to remove bottlenecks, paving the way for Vietnam’s broader renewal policy adopted at the 6th National Party Congress in 1986. Since then, the city has continued to advance its production and reaffirmed its position as the country’s “economic locomotive.”
Breeding ground for new economic models
HCM City has been the birthplace of many new economic models. It transformed inefficient trade cooperatives into the Saigon Union of Trading Cooperatives (Saigon Co-op) retail chain. In 1987, it launched the country’s first joint stock bank (Saigon Bank for Industry and Trade); and in 1991, it established Tan Thuan Export Processing Zone - the first of its kind in Vietnam. The city also founded the Ho Chi Minh City Stock Exchange in 2000, marking an important progress in building the financial market.
The establishment of the Saigon Hi-Tech Park in 2002 marked a turning point in attracting foreign direct investment (FDI), shifting from labour-intensive to high-tech and innovation-driven projects. Notably, in 2010, Intel put its 1-billion-USD chip assembly and testing plant into operation at the park, making the city’s presence on the map of attractive global investment destinations. According to Intel Vietnam General Director Kenneth Tse, after 20 years of operation in Vietnam, the plant has exported over four billion products, contributing over 100 billion USD to the Vietnamese economy.
The city also pioneered the establishment of an investment fund for urban development and pilot issuance of municipal bonds even before a legal framework was in place, while introducing BT and BOT models for infrastructure development. Major projects such as the Phu My Hung New Urban Area, Nhieu Loc–Thi Nghe Canal upgrade, Nguyen Van Linh and Vo Van Kiet boulevards, Saigon River tunnel, and Ben Thanh–Suoi Tien metro line stand as milestones of its dynamism.
Assoc. Prof. Dr. Phan Xuan Bien, Vice President of the Vietnam Association of Historical Sciences, said the city was the cradle of initiatives that broke the barriers and dared to think and act, laying important foundations for innovation. Despite accounting for just 0.6% of Vietnam’s land area and 8.56% of its population, HCM City has for years contributed 21.3% of GDP and 29.38% of state budget revenue.
Today, the city hosts a robust private sector with around 278,000 enterprises and 220,000 household businesses. Its 2024 economy (including Binh Duong and Ba Ria–Vung Tau) is valued at 2.71 quadrillion VND (108 billion USD), equal to 25% of national GDP, while cumulative FDI stands at nearly 60 billion USD across some 14,000 projects.
Long dubbed Vietnam’s “startup hub,” HCM City is home to more than 2,000 startups - about half of the national total, supported by over 100 venture capital funds. Its startup ecosystem is valued at 7.4 billion USD, attracting more than 260 million USD in venture capital. The city aims to be among the world’s top 100 startup hubs by 2030.
According to Chairman of municipal People’s Committee Nguyen Van Duoc, the city has pioneered high-quality growth through science, technology and innovation, raising per capita income to nearly 7,800 USD in 2024, with a target of 8,500 USD by the end of 2025.
Toward an international megacity
From July 1, HCM City merged with Binh Duong and Ba Ria–Vung Tau to form a new megacity, envisioned as a regional and global hub for finance, manufacturing, logistics, and innovation.
At a recent working session with municipal leaders, Party General Secretary To Lam repeatedly emphasised that the city’s new vision is to become Southeast Asia’s “international megacity” - a smart, green, and creative metropolis that excels not only in economic power but also in culture, arts, sports, entertainment, and modern lifestyle.
Under its 2025-2030 plan, the city will integrate its three major growth poles - finance and high technology in the central area, large-scale industry in Binh Duong, and the maritime economy in Ba Ria–Vung Tau - into a high-density regional hub. Its long-term goal is to join the world’s top 100 most liveable cities by 2030, with a vision extending to 2045.
To achieve this, six strategic priorities have been identified, including developing a world-class coastal tourism zone (Ho Tram–Binh Chau–Long Hai–Vung Tau); expanding diverse entertainment options such as golf, maritime tourism, casinos, and eco-resorts; establishing a free trade zone linked to the Cai Mep-Can Gio transshipment port; and developing the Can Gio eco-tourism site associated with the world biosphere reserve. The city is also pressing ahead with plans for an international financial centre, a multi-purpose hi-tech park, a core urban area, and the Binh Duong industrial–urban complex.
HCM City has earmarked nearly 800 hectares across District 1, Ben Thanh, and Thu Thiem for the International Financial Centre, with a 9.2-hectare core area in Thu Thiem to house financial supervisory bodies. Leveraging its long-established financial ecosystem, the IFC is expected to position both the city and Vietnam on the global financial map.
Chairman Nguyen Van Duoc added that a new master plan is being urgently drafted under the strategic orientation of “one space – three regions – one special zone,” with the central city as the financial and high-tech hub, Binh Duong as the industrial hub, and Ba Ria–Vung Tau as the maritime economy hub.
With this new development vision, grounded in long-term, sustainable, and science-based planning, HCM City continues to affirm its role as the nation’s economic locomotive and a gateway connecting Vietnam with the region and the world./
