To lead Vietnam’s growth, Ho Chi Minh City is pushing for new policies that go far beyond current frameworks.
A panoramic view of Ho Chi Minh City from above. Photo: Hoang Ha
To sustain its role as Vietnam’s economic growth engine, Ho Chi Minh City needs a new institutional framework that enables deep decentralization, strong investment incentives, and bold models such as TOD and free trade zones.
Empowering the city to attract strategic investors
On November 27 in Hanoi, the Central Policy and Strategy Committee, in coordination with the Ho Chi Minh City Party Committee, People’s Council, and People’s Committee, co-hosted a conference titled “Special and breakthrough mechanisms to attract strategic investment to Ho Chi Minh City in the new context.” The event aimed to gather expert input on proposals to amend and supplement Resolution 98/2023/QH15 of the National Assembly to better support the city’s development goals.
Organizers acknowledged that while Resolution 98 was a major breakthrough, it has revealed limitations that must be addressed. Ho Chi Minh City needs stronger legal foundations to resolve challenges in urban governance, resource mobilization, and fulfilling its leading role in the next development phase.
A key focus of the conference was identifying how to make Ho Chi Minh City a more attractive destination for strategic investors. Recommendations included expanding the list of priority investment projects to cover sectors such as high-end tourism and resorts, modern urban development, logistics, specialized healthcare, clean energy, and waste treatment. This would enable the city to proactively select financially capable investors for large-scale projects.
Moreover, project selection and implementation procedures must be simplified to the maximum extent possible. The city should be granted greater authority, including permission to appoint investors for strategic projects before investment policies are approved by higher authorities. In such cases, investors would not need to obtain construction permits but would be responsible for completing required documentation within a set timeframe.
A notable proposal suggested allowing the city to independently carry out land clearance and temporarily allocate land for groundbreaking activities in public, PPP, or government-directed projects to meet approved timelines.
Transit-oriented development (TOD) emerged as a hot topic. Experts proposed granting the city full authority over compensation, land fund creation, and adjusting zoning indicators around metro stations and Ring Road 3. Furthermore, the city should retain 100% of revenue from TOD land to reinvest in urban rail development - a critical component for sustainable growth.
A leap in institutional reform: Ho Chi Minh City Free Trade Zone
The city places high hopes on transit-oriented development (TOD). Photo: Nguyen Hue
Another strategic proposal involved establishing a Ho Chi Minh City Free Trade Zone. Investors here would benefit from highly liberal land and investment policies, along with exceptional corporate and personal income tax incentives.
Customs regulations would also be relaxed to maximize efficiency in logistics and trade - key pillars for positioning the city as a regional economic and financial hub.
On the matter of urban rail development, the conference supported continuing special policies under Resolution 188/2025/QH15 (dated February 19, 2025), which supports expansion of the city’s railway network. The Ho Chi Minh City People’s Council would be authorized to adjust and add new railway projects to the resolution's annex and report implementation results to the government.
Strategic policies should align with the long-term vision of transforming Ho Chi Minh City into a "super city" - a center for finance, manufacturing, logistics, and innovation. Experts emphasized the need for complete decentralization, based on the principle of “local decisions, local execution, local accountability,” especially in planning, investment, natural resources, and environmental management.
Identifying strategic projects and investor criteria
Ho Chi Minh City must implement bold, comprehensive institutional and legal reforms beyond the current policy framework.
Attendees proposed three strategic project groups: one focused on enhancing systemic productivity in manufacturing and industry; one targeting high-tech, globally relevant fields such as AI, semiconductors, and big data; and one ensuring national self-reliance in clean energy and the circular economy.
Strategic investor selection must not rely solely on capital size. Investors should also demonstrate technological influence, ability to attract satellite ecosystems, and strong social and environmental responsibility. All administrative procedures should be streamlined into a single process with clear timelines and a dedicated contact agency.
Ho Chi Minh City also proposed gaining the authority to negotiate and sign strategic investment contracts, drawing on models from DIFC (Dubai), ADGM (Abu Dhabi), and Singapore.
To secure resources for large-scale infrastructure projects, state-owned enterprises must take the lead. The city seeks to establish four wholly state-owned corporations in public utilities, financial investment, digital infrastructure, and urban rail. It also aims to create a Ho Chi Minh City Development Investment Fund modeled after Temasek (Singapore) and Khazanah (Malaysia).
A bold financial recommendation is to issue bonds backed by land use rights in TOD areas, exempt from public debt limits. This would provide the capital needed to accelerate infrastructure development in metro systems, digital infrastructure, healthcare, education, and sports.
The conference concluded with a strong consensus that the National Assembly should urgently consider these proposed amendments. A more robust legal foundation would enable Ho Chi Minh City to maximize its role as the nation’s economic engine and enter a new development phase - aiming for double-digit growth in the coming decade.
The event welcomed around 200 delegates, including representatives from central and local agencies, the Vietnam Chamber of Commerce and Industry, various business associations, and stakeholders across all economic sectors, along with experts, scientists, and policymakers.
Their contributions centered on two main themes: proposals to amend Resolution 98/2023/QH15 and broader policy recommendations for Ho Chi Minh City’s long-term development strategy.
Vietnamnet.vn
Podcast
.svg){kind=icon}
