If there are pivotal changes in the economic structure and growth model, HCMC will gradually lose its competitive advantage, and its leading role in the economy will decline. The resistance forces against the city's economic development will become increasingly serious, the environment and living conditions for citizens will worsen, and the people's living standards will consequently decrease.

Why is now the best time for HCMC to make a strong shift, given domestic and global trends?

HCMC is at a rare advantageous moment. The city owns unique foundations: the largest economic-financial hub, the strongest capital accumulation, a top ecosystem of enterprises – universities – research institutes – hospitals, a dynamic business environment, and one of the most vibrant innovation communities in Vietnam.

At the same time, the city is opening new development space after merging with Binh Duong and Ba Ria–Vung Tau, forming a tightly linked urban–industrial–seaport structure, removing geographic barriers and unlocking much greater development potential.

Meanwhile, the country is entering a phase of strong reforms with institutional and policy conditions considered the best in many years. This creates room for HCMC to mobilize resources, break through, and truly become the engine pulling the national economy.

What are the challenges HCMC must overcome?

The investment-to-GRDP ratio has been low and falling, from around 29.5 percent in 2019 to over 24 percent in 2023, significantly below the national average of about 33–33.5 percent. This is a key reason for declining GRDP growth.

To reverse this trend, HCMC must mobilize large resources and use them efficiently based on market mechanisms, targeting core bottlenecks: overloading and traffic congestion, requiring modern, green, smart transport systems and improved intra-regional and inter-regional connectivity; flooding and pollution must be tackled decisively.

The city must transform or relocate outdated urban assets, especially industrial parks, export-processing zones, and obsolete port-wharf areas, to free land for high-tech industries, cultural spaces, and R&D centers. At the same time, it must form new corridors and economic zones: high-quality financial–service hubs in the city center; manufacturing and innovation clusters in former Binh Duong areas; and an industrial –energy – logistics – port – tourism belt.

How should HCMC create a favorable, friendly business environment?

A favorable, low-cost, competitive business environment is fundamental and decisive for attracting private investment.

Beyond components requiring time and resources, like infrastructure or human capital, the legal-policy framework must be transparent, stable and predictable, with strong implementation capacity, robust protection of investor rights and assets, and incentives for freedom and innovation.

Although national laws shape the common business environment, HCMC can request permission to pilot implementation under a “constructive state” approach, focusing on goals and results rather than rigid procedures.

This means HCMC may seek authority to cut procedures, remove unnecessary steps, and shorten administrative processing time; establish a quick-response team with sufficient power to help investors; develop capital-mobilization tools and new business models; and ensure political commitment across the system to accompany investors.

Forty years of economic reform show that dynamism, creativity, and boldness in local policy implementation, when serving the common good, build strong investor trust and mobilize large resources for breakthrough development.

What should HCMC do to attract strategic investors?

Strategic investors are not just “large investors” but those capable of restructuring the economy, spreading technology, capital, and management skills across the ecosystem. They bring new foundations in manufacturing, logistics, R&D, and smart urban development, and create satellite enterprise chains that raise competitiveness.

Therefore, selecting strategic investors must be based on criteria for long-term, systemic contribution to restructuring the economy and creating new growth drivers.

The city must build measurable criteria, such as investment scale, technology capacity, R&D commitment, localization rate or number of SMEs in the value chain, impact on jobs, fiscal contribution, and ESG standards.

HCMC must also shift from a “ask-grant” mechanism to a registration – evaluation –public - disclosure mechanism. The city should develop a Strategic Investors Catalogue to proactively invite them into major projects.

Regarding priority fields, based on HCMC’s bottlenecks, the city should focus on at least five: smart urban development – inter-regional logistics; digital economy – innovation – semiconductors and AI; clean energy – green and circular economy; high-tech manufacturing – automation – biomedical industries; and high-quality tourism – services – creative culture.

Tu Giang - Lan Anh