Ho Chi Minh City's economy after a boost from the two-tiered government

In particular, the breakthroughs and many positive aspects in budget revenue, public investment, and attracting foreign capital in this megacity are largely due to the crucial role of the two-tiered government apparatus, especially the outstanding efforts of the local government.

The Vietnam News Agency (TTXVN) presents a series of articles titled "Ho Chi Minh City's Economy After the 'Boost' from the Two-Tier Government System," aiming to provide an overview of the operation of the two-tier government system in Ho Chi Minh City. This includes an assessment of achievements in administrative reform, positive impacts on the economy, international organizations' evaluations of the new system, and proposed solutions to optimize the investment environment and unlock resources for sustainable development, befitting its status as a global megacity.

Lesson 1: The "Leverage" of Administrative Reform

After more than five months of operating the two-tiered government model, significant changes in administrative reform, from streamlining the apparatus and decentralizing authority to digital transformation, have been "transforming" into a driving force for growth in Ho Chi Minh City, a megacity with nearly 14 million people. The city is also using administrative reform and digital transformation as its most important "lever" to thoroughly unlock resources and create an attractive and efficient investment and business environment.

Fundamentally reforming the government to be "service-oriented".

Photo caption — Officials and civil servants in Thai My commune (Ho Chi Minh City) frequently have to work overtime to process administrative documents for the people. Photo: Huu Duyen/TTXVN

With the motto "every voice of the people is a 'command' for the City People's Committee to adjust and improve its management and administration, the city government has been transforming and concretizing the spirit of "putting the people at the center of all operational and management activities."

The spirit of fundamental administrative reform – a "service-oriented" government model – has spread strongly from the city level down to every commune, ward, and special administrative region. Saigon Ward – the dynamic heart of the Ho Chi Minh City megacity – is recognized as a pioneering example in administrative reform and digital transformation. From July 1st to November 30th, the Saigon Ward Public Administrative Service Center received and processed over 33,000 administrative procedures, achieving a 100% on-time delivery rate. Notably, there has been a breakthrough in the application of information technology and online public services, reaching an impressive 98.6%, far exceeding the target of 80%.

Mr. Bui Truong Giang, Deputy Director of the Saigon Ward Public Administrative Service Center, said that the ward's rate of online public services is consistently maintained at a high level, averaging 95% or more. Along with that, the ward has proactively created a "digital government" model by implementing technological solutions such as testing intelligent robots to serve citizens and applying artificial intelligence (AI) in advising and assisting people in completing online applications.

“These innovations not only streamline processes and reduce paperwork, but also demonstrate a spirit of ‘friendly – professional – modern,’ contributing to resolving outstanding issues and building an efficient, effective, and effective working environment. To optimize the effectiveness of serving citizens and businesses, the ward is still proposing solutions to technical errors in the public service system and statistical functions to ensure smooth service,” Mr. Bui Truong Giang shared.

Similarly, Thai My, a remote commune in Ho Chi Minh City, is also recognized as a bright spot in administrative reform and digital transformation. A prime example is the "No Writing Day" model, held every Wednesday and Friday, aimed at guiding people in using online public services, familiarizing them with a paperless system, and minimizing the submission of paper and handwritten documents.

Simultaneously, Thai My commune implemented the "no-appointment processing" model, resulting in 100% of administrative documents being processed correctly and ahead of schedule, demonstrating the commune government's commitment to speed and quality in handling administrative documents. This model has helped raise the citizen satisfaction index to 100% (18/18 points), thereby building trust in the public administration system.

To meet the demands for speed and efficiency in handling administrative documents, Mr. Nguyen Duc Thinh, Chairman of the People's Committee of Thai My commune, said that the commune applies modernization measures such as maintaining online document processing and using digital signatures to handle work. In addition, with the spirit of "putting the people at the center of service," Thai My commune has arranged a separate citizen reception room and successfully resolved 100% of grassroots mediation cases. This demonstrates the innovation in listening to and implementing the "commands" of the people, effectively resolving their issues until they are satisfied.

The mark of public administration modernization.

The acceleration of digital transformation and modernization of public administration in Ho Chi Minh City also recorded many important milestones in 2025, especially after the official operation of the two-tiered local government system (1/7).

Ho Chi Minh City has built and piloted the first phase of its Digital Government Management Platform. The goal is for 100% of officials and civil servants to install and use this platform by December 15, 2025. Ms. Vo Thi Trung Trinh, Director of the Ho Chi Minh City Digital Transformation Center, stated that the platform's breakthrough function allows the Standing Committee of the City People's Committee to "immediately assign tasks" to leaders of 16 departments, agencies, and 168 communes, wards, and special zones, ensuring consistency, transparency, and task monitoring from higher levels.

Along with the digital government management platform, Ho Chi Minh City has also launched and encouraged citizens to install the digital citizen application, which serves as a genuine communication channel between citizens and the government. Mr. Nguyen Duy Trinh (residing in Xuan Hoa ward, Ho Chi Minh City) shared that the most outstanding feature of the digital citizen application is receiving feedback via the 1022 hotline. We can use this application to send petitions to the City People's Committee or wards and communes; and at the same time, track the resolution results. Many issues are resolved and responded to directly at home by local officials within just a few hours.

According to observations at the local level, since its inception, Dien Hong ward has consistently ranked among the top 10 wards and communes in Ho Chi Minh City in terms of service to citizens and businesses. According to Mr. Le Van Minh, Secretary of the Dien Hong Ward Party Committee, this achievement is due to the ward's early recognition of digital transformation as a key driving force for administrative reform, modernization of the apparatus, and improvement of service quality for the people.

“Digital transformation in Dien Hong ward has been implemented comprehensively, focusing on improving information technology infrastructure, upgrading specialized software, and efficiently operating the Public Administrative Service Center. A highlight is the digitization and reuse of data, reaching a rate of 99.65%. This facilitates citizens and organizations when carrying out administrative procedures, eliminating the need to re-declare information that has already been digitized,” said Mr. Le Van Minh.

Similarly, An Khanh ward (Ho Chi Minh City) also focuses on investing in a comprehensive and modern infrastructure for public administration, aiming to better serve the people. Mr. Nguyen Xuan Quynh, Vice Chairman and Director of the An Khanh Ward Public Administration Service Center, said that in addition to setting up an experience area with two robots guiding people to download applications and obtain queue numbers, the ward has also equipped administrative procedure lookup screens, information kiosks, and applications for obtaining queue numbers at home.

“The ward's public administrative service center has also expanded its area to serve approximately 10 or more people simultaneously who come to complete administrative procedures. Officials at the center work Saturday mornings and do not take a lunch break on weekdays, ensuring the quick and efficient processing of documents for citizens and businesses,” Mr. Nguyen Xuan Quynh shared.

Considering digital transformation as a prerequisite for the effective operation of the two-tiered local government apparatus, Ho Chi Minh City Party Secretary Tran Luu Quang requested that grassroots administrative units become models in digital transformation and administrative reform, and modernize public administration. “Ho Chi Minh City has 168 communes, wards, and special zones; with a two-tiered local government model, without digital transformation, it will fail,” Mr. Tran Luu Quang affirmed. (To be continued)

Lesson 2: The "Key" to Unlocking Investment and Development Resources

Source: https://baotintuc.vn/kinh-te/kinh-te-tpho-chi-minh-sau-cu-huych-tu-chinh-quyen-2-cap-bai-1-20251211103546384.htm