5 key proposals on industrial transformation in Ho Chi Minh City to attract high-tech investment

Expanding administrative boundaries helps Ho Chi Minh City reduce costs and improve competitiveness through developing value chains from production, logistics, finance to consumption and services.

Dr. Nguyen Minh Thao - Photo: NGUYEN KHANH

After the merger, Ho Chi Minh City will have more space and resources for development, contributing to firmly consolidating its position as the economic locomotive of the country, and can create a breakthrough in growth. The new Ho Chi Minh City is expected to be a large multi-centered metropolis in the Southeast Asian region.

The forum "Advice on industrial and commercial development in Ho Chi Minh City" conveyed the remarkable perspective of Dr. Nguyen Minh Thao - Institute of Strategy and Economic - Financial Policy (under the Ministry of Finance ) - on this important issue.

Expanding administrative boundaries is still not enough to create a breakthrough.

The industrial sector is one of the city's key growth drivers, playing a leading role in developing the city towards green growth. The industrial value of Ho Chi Minh City after the merger will still maintain its leading position, accounting for more than 25.5% of the country's industrial value (in 2024).

However, expanding administrative boundaries is not enough to create a breakthrough in growth of this industry, but requires a new development approach with strategic vision, restructuring industrial space, attracting investment in high technology, and optimizing the value chain.

According to statistics, after the merger, Ho Chi Minh City has more than 330,000 enterprises, accounting for nearly 35% of the total number of enterprises in the country. However, previously the proportion of high-tech industry only contributed more than 23% of GRDP, the city also set a target to increase to 40% by 2030.

The above target is in line with the national orientation. According to Decision No. 569, the Government sets a target that by 2030, the value of high-tech industrial products in the processing and manufacturing sectors nationwide must reach at least 45%.

Therefore, to consolidate its leading position in the country and region and ensure the implementation of the set goals, Ho Chi Minh City needs to focus on industrial transformation in the direction of attracting investment in high technology, strategic technology, and developing high-tech application industry.

Great potential, big barriers

Working scene at a production facility in Ho Chi Minh City - Photo: NGOC HIEN

Vietnam has upgraded its comprehensive strategic partnership with most countries with developed semiconductor industries. Our country in general and Ho Chi Minh City in particular are assessed by international organizations as attractive destinations for foreign investors.

However, the business environment still has many problems. Up to now, many of the city's policies have been slow to be concretized or are not attractive enough to attract many strategic investors.

Notably, the number and scale of many investment projects in the fields of high technology, strategic technology, and green technology of the city are not commensurate with its position as an economic center of the country and the region.

In addition, the level of connection and attraction of domestic enterprises, especially small and medium enterprises, to participate in the high-tech industry chain is still limited. Support policies for this group have not been effectively exploited.

To promote sustainable industrial development and create a breakthrough for Ho Chi Minh City's growth, it is necessary to focus on restructuring industrial space within the new boundaries, perfecting policies to attract investment in the high-tech sector and creating a synchronous foundation for green industrial development.

5 proposals for restructuring the industrial space of the new Ho Chi Minh City

Firstly , upgrading the ecosystem associated with industrial transformation such as infrastructure, human resources, logistics, improving inter-sectoral connectivity to facilitate industrial transformation to high technology, green technology, and sustainable economic models.

This will affirm its position as the country's economic center, with the ability to compete regionally and internationally. At the same time, it will support a network of small and medium-sized enterprises to participate in niche areas in the high-tech ecosystem.

Second , to restructure the industrial space in the new territory, industrial clusters and industrial zones can be concentrated in Binh Duong and Ba Ria - Vung Tau (old). In Ho Chi Minh City (old), focus on developing high-tech industry.

Third , focus on developing High-Tech Parks, with priority given to perfecting mechanisms and policies to attract investment, developing strategic technologies such as semiconductors and artificial intelligence, and creating spaces for technology testing. Thereby improving the capacity to master technology, contributing to the creation and development of key, strategic industries for the country.

For the semiconductor industry, international experience shows that in the early stages, most countries that are successful with the semiconductor industry tend to choose a key stage or product in the semiconductor industrial value chain.

Fourth , effectively exploit the policies and solutions set out in Resolution No. 57 on breakthroughs in science and technology development, innovation and national digital transformation; Resolution No. 66 on innovation in law making and enforcement; Resolution No. 68 on private economic development and specific mechanisms for Ho Chi Minh City.

Support high-tech enterprises to access capital from the Investment Support Fund and preferential policies applicable to public-private partnerships in the fields of science, technology, innovation and digital transformation. At the same time, there are policies to support and encourage private sector enterprises to master and apply technology to meet increasingly stringent requirements on the environment and green standards.

Fifth , improving the business environment is an effective tool to promote industrial transformation. For large investors, a transparent, stable, low-cost business environment is an important condition for deciding on investment choices. It is necessary to create a "green channel mechanism" for high-tech enterprises, enterprises with investment projects to produce high-tech products, and enterprises with high-tech application projects.

The new spatial and geographical appearance is a favorable opportunity to reposition and restructure the growth model of the city's industries. Along with focusing on industrial transformation, the city also needs to combine with solutions to develop other areas such as renewable energy, green logistics, and green finance.

Need to maintain and affirm global trade position

Global agreements and treaties on sustainable development, environmental protection, climate change response, along with new-generation free trade agreements (FTAs) such as CPTPP, EVFTA, as well as green agreements of partner countries set higher standards for goods, linking trade with requirements for sustainable development.

Therefore, to maintain and affirm its global commercial position, Ho Chi Minh City enterprises need to focus on investing in technology and applying green economic models to meet green standards in trade. This is also an important premise to promote the city's industrial transformation towards high technology, greening and sustainable development.

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DR. NGUYEN MINH THAO (INSITATE FOR ECONOMIC AND FINANCIAL STRATEGY AND POLICY)

Source: https://tuoitre.vn/5-de-xuat-then-chot-ve-chuyen-doi-cong-nghiep-tp-hcm-de-thu-hut-dau-tu-cong-nghe-cao-20250909214604773.htm