On the morning of October 15, the first Congress of the Ho Chi Minh City Party Committee for the 2025-2030 term concluded its final session.

Speaking at the event, Lam Dinh Thang, Director of the Department of Science and Technology of Ho Chi Minh City, emphasized that science, technology, and innovation (STI) have proven to be vital driving forces for the city’s economic growth.

In this field, the city has achieved notable results that serve as a foundation for its development over the next five years.

Specifically, the Total Factor Productivity (TFP) index, which reflects the contribution of STI to economic growth, is expected to reach 59% by the end of 2025 and will remain a key growth driver in the following five years.

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Lam Dinh Thang, Director of the Ho Chi Minh City Department of Science and Technology, delivers remarks at the congress. Photo: Provided by the organizing committee

In 2024, the digital economy contributed 22% to the city’s Gross Regional Domestic Product (GRDP), and this is projected to rise to 25% in 2025.

Currently, Ho Chi Minh City ranks second nationally in both the Digital Transformation Index and the National Innovation Index.

Its startup ecosystem ranks 110 globally and fifth in Southeast Asia.

The city also ranks 30th in the world for blockchain development.

To achieve these milestones, the city has introduced unique policies and mechanisms to attract talent and investment.

These include non-refundable financial support for innovation, competitive salary policies, and the establishment of internationally accredited research centers.

According to Director Thang, the city has actively pursued administrative reform and investment facilitation.

Nearly 300 administrative procedures related to production and business have been eliminated, saving an estimated 1,900 working days.

Moreover, dedicated task forces have been formed to directly and promptly support strategic investors.

As a result, the science and technology sector attracted $1.6 billion in foreign direct investment (FDI) in the first half of 2025 alone, accounting for 40% of the city’s total FDI.

Ho Chi Minh City currently hosts over 140 science and technology enterprises, ranking second nationwide.

Many of the world’s leading tech corporations have established offices and R&D centers in the city, including SAP (Germany), Marvell, and Qualcomm (USA).

Particularly noteworthy is the city’s investment in workforce training, with nearly 100 high-quality educational institutions operating locally.

More than 55% of Vietnam’s programmers are based in Ho Chi Minh City.

Since the beginning of 2025, over 40,000 government officials and hundreds of outstanding students have received training in artificial intelligence (AI).

Three strategic breakthroughs for science and technology

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Various tech innovations featured at the exhibition celebrating the first Congress of the Ho Chi Minh City Party Committee, term 2025-2030. Photo: Nguyen Hue

Despite these achievements, Director Thang acknowledged several major challenges facing the city’s science and technology sector.

Management mechanisms in the sector remain inflexible and not yet aligned with market dynamics.

There is a lack of experimental spaces for new technologies, and the data infrastructure is incomplete for a comprehensive digital transformation.

The city thus requires support from central ministries and national agencies.

Additionally, the "triple helix" collaboration model (government - academia - enterprise) is still underdeveloped.

Total social spending on research and development remains low.

According to Director Thang, the city has set several major targets for the next five years:

First, increase TFP’s contribution to at least 60%, and ensure the digital economy accounts for 30-40% of GRDP.

Second, transform Ho Chi Minh City into a world-class innovation hub by 2030, a goal assigned by the Central Steering Committee under Resolution 57.

Third, elevate the city's startup ecosystem into the Top 100 most dynamic cities globally.

Fourth, establish at least five internationally accredited research centers in strategic technology sectors.

To realize these ambitions, the city will focus on three key strategic breakthroughs:

The first is improving policies and investment attraction.

Ho Chi Minh City will prioritize attracting strategic investors in science and technology.

“A major development is that UAE-based G42 Group is planning to invest nearly $2 billion in an AI megadata center here in the city,” Thang revealed.

The city will also further develop its high-tech zones and experimental areas for new technologies under special mechanisms and promote private sector investment in science and technology.

The second breakthrough centers on strategic technologies and the innovation ecosystem.

Ho Chi Minh City will prioritize areas of strength such as artificial intelligence, semiconductors, robotics, blockchain, and biomedical technologies.

The city also needs to establish a new model startup fund to attract capital from venture capital firms.

In partnership with Vietnam National University Ho Chi Minh City, the city plans to propose a project to become a global innovation hub.

The third breakthrough focuses on digital governance and human resources.

The city will accelerate the construction of digital infrastructure and platforms to implement a data-driven urban management model.

Director Thang added that the city will expand cooperation under a “four-sector model” involving schools, the state, businesses, and investment funds/banks, along with promoting technology diplomacy and attracting international experts.

Simultaneously, Ho Chi Minh City will boost the development of digital human resources to sustain and strengthen its leadership in the science and technology field.

According to its official website, G42 is a global company headquartered in Abu Dhabi (UAE), specializing in artificial intelligence.

It views AI as a core strength to enhance human capital and industry, shaping a sustainable future.

G42 is backed by world-class investors including Mubadala, SilverLake, Microsoft, and the Dalio Family Office.

Tran Chung