After half a century since liberation, Ho Chi Minh City has become the leading economic center of Vietnam, making its mark with impressive development achievements. The city has continuously promoted economic integration, attracted the presence of many international organizations and multinational corporations, gradually affirming its position as an important financial center in the region. In particular, Ho Chi Minh City is in the top 5 localities leading the country in attracting foreign direct investment (FDI), continuing to be an attractive destination for global investors.
Towards the 50th anniversary of national reunification (April 30, 1975 - April 30, 2025), the Government Electronic Newspaper had a conversation with representatives of international organizations and foreign enterprises in Vietnam to discuss the achievements of Ho Chi Minh City as well as suggestions and contributions to the City to develop faster, stronger and more sustainably.
Ho Chi Minh City - an attractive destination for British businesses
Ms. Alexandra Smith - British Consul General in Ho Chi Minh City affirmed: "The UK wishes to continue its close partnership with Ho Chi Minh City, together building a prosperous future" - Photo: VGP/Minh Thi
Ms. Alexandra Smith - British Consul General in Ho Chi Minh City:
I believe that the changes and transformations of Ho Chi Minh City and the southern localities in the past half century of peace and unification have been and are making a very important contribution to the overall development of Vietnam. From the post-war recovery process to becoming a dynamic economic center, the progress of this southern capital has been an important driving force for the overall development of Vietnam.
This growth has not only boosted the national economy but also significantly enhanced Vietnam’s position regionally and globally. The UK is proud to be a long-standing partner in this journey, supporting Vietnam’s continued economic progress through trade, investment and cooperation.
In the process of strong development of Vietnam, Ho Chi Minh City is emerging as the leading economic center of the country. With flexible, adaptive and innovative policies implemented by the City, it has created remarkable achievements in recent times.
It can be said that Ho Chi Minh City’s proactive approach to attracting foreign direct investment has played a key role in the city’s success. Policies focusing on simplifying business regulations, improving infrastructure and nurturing a skilled workforce have created a favorable environment for businesses.
For British companies, these factors, along with the UK-Vietnam Free Trade Agreement and Vietnam’s membership in a number of other trade agreements, have opened up significant opportunities. Bilateral trade between the UK and Vietnam has doubled in the past decade, from $3 billion to over $6 billion by 2024.
We have seen strong interest from UK businesses in sectors such as technology, finance, education, healthcare and renewable energy. The City’s continued commitment to innovation and supporting its regulatory environment will further strengthen its position as a leading investment destination.
In the coming time, the UK has many plans and intentions to cooperate with the Vietnamese public and private sectors in the fields of finance, energy transition, education, health, infrastructure and technology. Each sector has its own role to play in attracting investment, increasing financial inclusion, developing climate-resilient infrastructure. Above all, business cooperation also contributes to promoting the attractive life in Vietnam in general and Ho Chi Minh City in particular.
Since 2022, the UK Government has been actively supporting Vietnam in designing and reviewing policies and regulations for these financial centres, as well as organising capacity building programmes for Vietnamese government officials. The UK Government’s financial support, through TheCityUK, demonstrates the UK’s commitment to supporting Vietnam in fostering a strong financial services sector.
With the UK joining the CPTPP trade bloc, expanding the combined GDP growth value to $15 trillion, UK and Vietnamese businesses can enjoy a vibrant trading environment, reducing tariff costs and administrative procedures in both our countries.
To truly develop in the new era, Ho Chi Minh City needs to grasp the digital economy to improve its competitiveness, especially in the context of strong international integration and digital transformation as it is today.
The future of Ho Chi Minh City is very bright.
The City’s strategic location in the heart of Southeast Asia, its young and dynamic population, and its growing digital economy will position it for continued strong growth. Further investments in sustainable infrastructure, digital transformation, and skills development will be key to unlocking the City’s full potential.
The City’s focus on innovation and strong entrepreneurial spirit are also important assets. We foresee continued growth in sectors such as technology, finance, education, healthcare and renewable energy, creating further opportunities for collaboration between the UK and Vietnam.
I would like to highlight Vietnam's aspirational goal of becoming a high-income country by 2045 by strengthening Vietnam's role in global value chains and leveraging digitalization to drive economic growth.
The development of financial centres, the International Finance Centre (IFC) in Ho Chi Minh City and the Regional Finance Centre (RFC) in Da Nang, are seen as key components to achieving these goals. The IFC initiative not only promises economic growth but also underscores Vietnam’s commitment to sustainable development and global integration.
Ho Chi Minh City needs to grasp digital economy for development
To truly develop and transform in the new era, I think Ho Chi Minh City needs to improve its competitiveness, especially in the context of strong international integration and digital transformation as it is today.
Therefore, In this era of constant change, Ho Chi Minh City needs to focus on investing in infrastructure and digital skills, which is crucial to embracing the digital economy. Further simplifying regulations and improving the ease of doing business will attract more investment. Sustainable development and environmental protection are also key to long-term growth and will attract environmentally conscious investors. Fostering a culture of innovation and entrepreneurship will boost competitiveness in the long term.
I am proud to say that the UK has been a trusted partner for Vietnam on this journey. In March alone, we hosted two business delegations on healthcare innovation and a technology business delegation to Vietnam, promoting business partnerships and enhancing dialogue between experts from both countries.
Each delegation, including UK Government representatives, signed Memoranda of Understanding with Vietnamese government agencies responsible for digital transformation, to develop areas such as smart cities, fintech, healthtech, etc.
The sharing of knowledge and skills in all areas continues. And on top of that, high-level meetings between the two countries’ leaders have become stronger than ever with Deputy Prime Minister Nguyen Hoa Binh’s visit to the UK last month, with discussions on a wide range of topics, including the development of an international financial centre in Ho Chi Minh City.
Vietnam has established a solid reputation with investors.
Mr. Travis Mitchell, Executive Director of AmCham Vietnam, said that Vietnam has built a solid reputation with foreign investors and Ho Chi Minh City has a lot of potential and opportunities to break through to become an important center for international business activities - Photo: VGP/Minh Thi
Mr. Travis Mitchell, Executive Director of AmCham Vietnam:
I really admire the rapid development of Ho Chi Minh City every day along with the general development of Vietnam.
It can be said that Vietnam has built a solid reputation when it is assessed by foreign investors as a country with a strategic location, a safe and attractive investment destination thanks to its policy of developing a stable macroeconomic environment, high and sustainable GDP growth.
AmCham highly appreciates the timely policies and directions of the Vietnamese Government to address global economic challenges and promote a stable macroeconomic environment and economic recovery in Vietnam.
I believe that the Vietnamese Government in recent times has made quick, timely and comprehensive decisions to manage the socio-economy to achieve the results as I mentioned above.
Ho Chi Minh City has many potentials and opportunities to break through.
We are witnessing the development of Ho Chi Minh City as an important center for international business activities. With nearly 10 million people and the role and importance of the economy, not only for Vietnam but also for the region, Ho Chi Minh City has great potential and opportunities for the role of a regional financial center and to break through to become a leading city in the region.
The foreign business community here has grown strongly, which has had a significant impact on Vietnam's overall economy. HCMC's infrastructure has improved dramatically since 1998, and the general population is now wealthier, more educated and more globally minded than before.
On the policy front, Ho Chi Minh City has simplified administrative procedures and created a strong, reliable framework for businesses to set up and grow. The city has built its brand as a business and tourism hub that welcomes everyone.
Not only is Ho Chi Minh City large in population, it is also known as one of the important manufacturing and export centers in Southeast Asia. Meanwhile, the US business community focuses a lot on the export sector. In particular, the quality of young labor makes the city an attractive target for investors from the United States.
Ho Chi Minh City is also known as one of the important production and export centers in Southeast Asia - Photo: VGP/Minh Thi
Ho Chi Minh City: Self-change and self-transformation to promote development
For Ho Chi Minh City, to truly fulfill its role as the country's leading city and a major economic and social center in the region, especially to promote development in line with the new growth era of the country and the world, I think Ho Chi Minh City needs to continue to change and transform itself to promote development.
However, to create more favorable conditions and attract more FDI capital, in my opinion, Vietnam, including Ho Chi Minh City, needs to have more specific innovations in many areas such as: Developing comprehensive regulations for the digital economy along with procedures to rationalize the import of digital equipment will help maintain economic competitiveness; bringing the tax regime into a more disciplined manner, in line with international standards; promoting Vietnam internationally as a top destination for foreign tourists; consistently following a clear and balanced framework to implement new environmental protection regulations.
The city needs to continue investing in infrastructure to meet growing demand. Businesses need modern, convenient roads, bridges, ports, airports and public transport to move people, goods and resources quickly and efficiently. Therefore, to compete regionally and globally, Ho Chi Minh City needs to proactively look ahead to balance long-term growth potential with the practicalities of a developing market.
Minh Thi (performed)
Source: https://baochinhphu.vn/tphcm-diem-den-hap-dan-trong-mat-cac-nha-dau-tu-quoc-te-102250405115251094.htm
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