Ho Chi Minh City is positioning itself for transition, aiming to build a new knowledge-driven growth model anchored in innovation and digital transformation as global competition shifts toward knowledge, technology and innovation, and advantages tied to natural resources or low-cost labour are fading, according to Lam Dinh Thang, Director of the municipal Department of Science and Technology.

Speaking at the HCM City NextGen Conference on November 27 — a flagship event of the HCM City Week of Innovation, Science, Technology and Entrepreneurship 2025 — Thang said the strategy aligns with the Politburo's Resolution 57-NQ/TW on breakthroughs in science, technology and national digital transformation.

The 2021–2025 period recorded several important milestones, with total factor productivity (TFP) contributing more than 50% of the city’s Gross Regional Domestic Product (GRDP) growth, reflecting a clear shift towards a knowledge-based development model, he stated.

HCM City remains Vietnam’s start-up hub, hosting more than 2,000 start-ups — over half the national total — with an ecosystem valued at 5.22 billion USD. The city ranks fifth in Southeast Asia and is close to entering the world’s top 100 most dynamic start-up ecosystems.

Digital infrastructure is also expanding. The city leads Vietnam’s Digital Transformation Index (DTI) with 82% 5G coverage and 16 data centres in operation. Under the targets set by the HCM City Party Organisation’s Congress for the 2025–2030 term, the city aims to become a regional centre for science, technology and innovation by 2030.

To realise this goal, HCM City will focus on three strategic breakthroughs for the 2026–2030 period, focusing on institutions and policies; strategic technology and innovation ecosystem; and digital governance and digital human resources, according to the official.

“To break through and compete globally, Ho Chi Minh City must build a NextGen — not only the young, but an inter-generational ecosystem where youth innovation combines with expert experience,” he noted. “This synergy is how we master technology and create sustainable, humane, inclusive value.”

At the forum, Daniel Theobald, co-founder of MassRobotics and founder & Chief Innovation Officer of Vecna Robotics (US), highlighted opportunities for cooperation in robotics, automation, AI and start-up ecosystem development.

He urged the city to prioritise real-world industry challenges — especially export-focused supply chains, one of the city’s core competitive strengths — rather than pursuing headline-friendly trends such as humanoid or general-purpose robots. Instead, he said, the focus should be on co-investment in R&D, patent creation, simulation and testing environments, and the establishment of technology standards, which form the basis of long-term value.

Theobald also recommended expanding infrastructure and resource access for start-up founders, including workspaces, free legal services for business registration and patent filing, investment review support, and deep mentorship programmes.

He further suggested establishing direct channels to Silicon Valley and other major markets, while encouraging major tech firms operating in the city to support emerging companies. Strategic engagement from leading enterprises, he said, will create the pull necessary to strengthen the city’s innovation ecosystem./.VNA