With the development space expanding following the merger, Ho Chi Minh City is facing a rare opportunity to reshape its industrial strategy.
Speakers in the panel discussion – Photo: QUANG DINH
At the seminar "“Driving force for development At the "Ho Chi Minh City Industry – From Potential to Action" conference on July 17th, experts, businesses, and management leaders shared the common view that for the city's industry to achieve breakthrough growth, it needs to dare to think differently and act differently.
The "reverse problem-solving" mindset“
According to Dr. Tran Du Lich, chairman of the Advisory Council for the implementation of Resolution 98, in order to achieve double-digit industrial growth in the next five years, Ho Chi Minh City cannot follow the old model. "We must do the reverse calculation, envision what Vietnam will be like in 2030 and 2045, and from there determine the path we need to take now," said Dr. Lich.
He warned that if Ho Chi Minh City continues to rely on cheap labor and traditional models, the risk of falling into the middle-income trap is very clear. New industries must add value, based on green transformation., digital transformation and the application of high technology.
According to Dr. Tran Du Lich, it is necessary to redistribute space and build an industrial-service-seaport belt. He believes that the expanded space after the merger is an opportunity for Ho Chi Minh City to "redraw the map" of industrial development.
With over 8,000 hectares of existing industrial land and 1,000 hectares of high-tech zone, Ho Chi Minh City needs to allocate these resources rationally instead of concentrating them in the central area.
Therefore, it is necessary to form an industrial, urban, and service belt extending from Binh Duong down to the Cai Mep - Thi Vai deep-water port. At the same time, a free trade zone should be developed in Cai Mep to help businesses in the region participate more effectively in global supply chains.
To prepare for the wave of business attraction, the following are necessary: infrastructure Standards come first. Drawing from the success of industrial parks like VSIP, Mr. Nguyen Thue Duy – Deputy General Director of Becamex Group, likened investing in industrial infrastructure to "passing the golden ball" to the right place, at the right time, and meeting the needs of businesses.
Becamex's integrated industrial park model (industry – services – urban – commerce) currently attracts more than 4,500 businesses, with total FDI exceeding billions of USD.
“"We are not just developing land, but building an entire ecosystem: technical infrastructure, logistics centers, R&D centers, vocational training, and international connections with research institutes and universities in Singapore, Taiwan, etc.," Mr. Duy shared at the seminar.
According to Mr. Duy, Becamex has identified three priority areas: developing eco-industrial parks; investing in strategic transportation routes (My Phuoc - Tan Van, Ring Road 4); and connecting railway logistics to Cai Mep - Thi Vai port.
The bottleneck requires a rewriting of the "connecting melody."“
Dr. Truong Minh Huy Vu – Director of the Ho Chi Minh City Development Research Institute – believes that logistics infrastructure is the biggest "bottleneck." He likened the Long Thanh – Cai Mep route to a "disconnected song," as goods from the Tan Uyen and Bau Bang clusters still have to take a roundabout route, incurring high costs and relying on road transport.
According to him, the solution is to immediately invest in dedicated railways serving industry, connecting key production areas to seaports.
“"Without a multimodal logistics strategy, it will be very difficult to achieve double-digit industrial growth," Dr. Vu warned.
Another key pillar emphasized by experts is the strategic selection of industries. Ho Chi Minh City needs to move beyond its current "industrial meal" model and focus on developing high-knowledge industries such as high-tech industries, marine industries, and renewable energy.
According to Mr. Vu, the coastal route from Can Gio to Xuyen Moc could become a marine industrial chain, linked with offshore wind power, smart seaports, and logistics services for mechanical energy and international trade.
Beyond just discussing theory, businesses are also taking action. Mr. Do Minh Tam, General Director of Thaco Industries, said that Thaco has just received an investment decision for a 75,000 billion VND mechanical industrial park in Binh Duong, which will begin construction in August 2025. It is expected to be operational within just one year.
This is considered one of the largest key mechanical engineering projects in the South today, carrying the expectation of not only creating a large-scale production center but also serving as a "launching pad" for the development of supporting industries along the value chain.
Thaco stated that the project applies the "One in One" model within a single ecosystem integrating manufacturing, R&D, heavy-duty fabrication, train carriage assembly, robotics, industrial equipment, etc., and is closely linked with satellite businesses.
“"We expect to create a national mechanical engineering center that will act as a 'magnet' attracting domestic and foreign supporting businesses, helping to increase the localization rate and reduce dependence on imports," Mr. Tam affirmed.
Many businesses say that the development of green industries needs to be promoted more strongly.
Mr. Tran Anh Khoa – Head of Business Development at PV Gas – stated that the company's revenue in 2024 reached VND 105,000 billion, with a profit of VND 3,000 billion. PV Gas supplies gas to power plants, fertilizer factories, and industrial facilities. The company is currently boosting gas exports to the EU, which has strict environmental certification requirements.
Mr. Khoa suggested that Ho Chi Minh City needs to plan gas infrastructure such as electricity and water, with gas storage tanks and distribution stations in industrial zones. At the same time, a suitable gas pricing policy is needed in the initial phase to encourage businesses to transition to green technologies.
“"Currently, transporting gas from Thi Vai to Binh Duong is very expensive each time, and better logistics infrastructure is needed," Mr. Khoa said.
Businesses need mechanism, capital, clear direction
According to Mr. Nguyen Ngoc Hoa, chairman of the Ho Chi Minh City Business Association (HUBA), businesses need three things: clear planning orientation, specific industry strategies, and flexible financial mechanisms. Among these, small and medium-sized enterprises (SMEs) are the group that "needs capital but has the most difficulty accessing it.".
He suggested that Ho Chi Minh City should quickly establish an international financial center with its own legal framework, opening up a "playing field" for non-bank capital flows, similar to the Kazakhstan model. At the same time, it should accelerate infrastructure investment and reform procedures so that opportunities are not lost. "Breakthroughs cannot wait 10 years.".
"Businesses need an institutional boost in terms of capital infrastructure right now to join Ho Chi Minh City in entering a new industrial development space," Mr. Hoa emphasized.
