Spearhead to make Ho Chi Minh City the leading import-export center in the region

Expanding Ho Chi Minh City has the opportunity to become the leading import-export center in Southeast Asia. The question is which areas and methods should the city focus on?

Goods are being processed for export at Cat Lai port, Ho Chi Minh City - Photo: N.BINH

With the advantage of converging deep-water seaports, supporting industrial systems, logistics and financial centers, expanded Ho Chi Minh City has the opportunity to become the leading import-export center in Southeast Asia.

Choose key export sectors

The question is which areas and methods the city should focus on to not only develop rapidly but also sustainably and integrate effectively into the global value chain.

Import and export is not simply a matter of customs clearance. It reflects the production structure, technological level, management capacity and stature of an urban economy . With its new position, the expanded Ho Chi Minh City needs to build an import and export ecosystem based on three pillars: high technology, international logistics and financial services, and green value chains.

Experience from megacities around the world shows that to rise to the top, one cannot rely solely on traditional advantages such as seaports or geographical location, but must know how to choose the right key areas, invest in depth and build a global brand.

In 2024, Ho Chi Minh City's import-export turnover will reach about 128 billion USD, accounting for nearly 20% of the country's total turnover. However, most of it still relies on processing, with low added value. Meanwhile, Singapore, with a population of just over 6 million, has reached more than 1,100 billion USD in trade in goods and services.

Shanghai, the port alone, handled more than 49 million TEU containers in 2023, holding the top position in the world. These figures are both pressure and motivation for Ho Chi Minh City to expand and make a breakthrough, taking advantage of the port and supporting industries to reach the regional level.

Towards green exports

First, the city should focus on high-tech exports and deep processing industries. After many years of relying heavily on textiles, footwear, and electronics assembly, Vietnam in general and Ho Chi Minh City in particular are facing the challenge of low added value. The necessary direction is to shift strongly to the fields of semiconductors, medical equipment, biotechnology, renewable energy, and artificial intelligence.

Singapore has succeeded in transforming itself into an export hub for pharmaceuticals, chips and digital services; Shenzhen has become the world’s “technology factory” by choosing the right electronics and software industries.

Expanded Ho Chi Minh City, with the industrial foundation of Binh Duong and the logistics advantage of Ba Ria - Vung Tau seaport, has all the conditions to build a value chain for the semiconductor and electronics industry, software export and digital services. This will be the pillar for the city to avoid the low value-added trap, creating momentum for the knowledge economy.

Second, the city must become a logistics and financial center serving import and export. Currently, Vietnam's logistics costs are still high, accounting for about 16-18% of GDP, while developed countries only account for 8-10%.

To compete, the expanded Ho Chi Minh City needs to re-plan the logistics system according to international standards, develop transit centers, bonded warehouses, dry ports and multimodal transport services. Experience from Shanghai or Rotterdam shows that seaports are just a link in the chain, the important thing is the entire logistics ecosystem from electronic customs procedures, financial and insurance services, to data centers for supply chain management.

Expanding Ho Chi Minh City must aim to become a financial-logistics “hub”, a place that not only handles cargo but also prices, insures, makes payments and manages global trade risks. In particular, the presence of international banks, commodity exchanges and cross-border payment centers will help the city rise in the global trade value chain.

Third, the new trend in the world is green trade and circular economy. The European Union, the US and Japan have all applied carbon standards, forcing imported goods to meet environmental standards. If there is no quick change, Vietnam's export goods will face major barriers. Expanded Ho Chi Minh City needs to take the lead in building a green production chain, exporting products that meet ESG (environmental, social, governance) standards.

Not only the agricultural and seafood industries, but also the processing, textile and electronics industries must apply renewable energy, reduce emissions and recycle materials. Experience from Seoul and Tokyo shows that megacities that know how to switch to green exports will not only maintain their markets but also create long-term competitive advantages. If Ho Chi Minh City expands its positioning as the “green export hub” of Southeast Asia, this will be a brand that attracts international investors.

Expanded Ho Chi Minh City is not simply the combination of three localities, but a strategic vision of an economic megacity and international commercial center.

In the context of the global supply chain shifting, emerging megacities are taking the opportunity to upgrade their roles, the expanded Ho Chi Minh City needs to quickly establish its position as a high-tech import-export center, international financial logistics and green trade.

Need to know how to promote the "tool" of specific mechanisms

In addition to the three pillars above, the city also needs to focus on building a national brand strategy associated with the region's key products.

Expanded Ho Chi Minh City can completely build the brand of “technology seaport”, “green export center”, or “logistics super city”. In addition, training high-quality human resources, reforming customs procedures towards comprehensive digitalization and regional connectivity to avoid internal competition are also key conditions.

Each locality in the region cannot act alone, but must have a common strategy under the leadership of the city. The most important thing is the determination in policy.

Successful cities such as Singapore, Shanghai or Dubai all have centralized direction from the central government, giving great power to local governments, creating an open institutional environment to attract global capital, technology and human resources.

With the special mechanism approved by the National Assembly, expanded Ho Chi Minh City has the opportunity to apply pioneering policies: testing free trade zones, applying digital customs, building financial-logistics special zones, or issuing green standards for the entire industrial park.

Together "Contribute to the development of industry and trade in Ho Chi Minh City"

Tuoi Tre Newspaper in coordination with the Department of Industry and Trade of Ho Chi Minh City opened a forum "Providing advice for developing industry and trade in Ho Chi Minh City".

To listen to ideas and solutions from businesses, researchers and people to build and develop industry and trade for the new Ho Chi Minh City, forming a strong urban area in industry - trade - services, with international competitiveness.

Mr. Bui Ta Hoang Vu - Director of the Department of Industry and Trade of Ho Chi Minh City - said that he respects and listens to every opinion and suggestion from people and businesses to advise the People's Committee of Ho Chi Minh City on breakthrough solutions to develop industry - trade - services.

Readers participating in the forum can send information to the editorial office of Tuoi Tre newspaper (60A Hoang Van Thu, Duc Nhuan ward, Ho Chi Minh City) or email: kinhte@tuoitre.com.vn.

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MSc. NGUYEN TUAN ANH

Source: https://tuoitre.vn/mui-nhon-de-dua-tp-hcm-la-trung-tam-xuat-nhap-khau-hang-dau-khu-vuc-20250822114555318.htm