Ho Chi Minh City: Great aspirations and historic opportunity

Ho Chi Minh City has become an administrative-economic entity with new stature on the map of major regional and global cities, carrying with it great aspirations and a historic opportunity. To realise the aspiration to become one of the most liveable cities in the world by 2030, besides the advantages, the city has to overcome many challenges.

Great stature

Ho Chi Minh City has been the country’s economic engine with strengths in finance and services, a place with a startup and innovation ecosystem, with a prominent position in the region and the world. Binh Duong Province, with its industrial infrastructure development among the best in Southeast Asia, receives strong FDI inflows and rapid urbanisation comparable to those in developed countries.

Ba Ria-Vung Tau Province, an international maritime gateway, is emerging as a national marine economic centre with the Cai Mep-Thi Vai Port complex - one of the world’s top 21 deep-water ports, having competitiveness at the Asian and global levels. The merger of these three localities will create an economic triangle that combines all the elements of financial services, high-tech industrial production, logistics and sea ports.

All three localities possess the country’s leading institutional and digital governance foundations. These foundations create a pioneering metropolitan region, leading not only in growth rates but also in governance quality. These localities also possess strengths in high-quality human resources, smart and modern urban development, strong healthcare and education, and social welfare policies.

After merging with Binh Duong and Ba Ria-Vung Tau, the new Ho Chi Minh City will have a total natural area of 6,772.59 square kilometres, and a population of over 14 million. The city contributes 24% of Viet Nam’s GDP and nearly 40% of government revenue.

Ho Chi Minh City Chairman Nguyen Van Duoc said this is the Party and State’s strategic decision, which marks a new chapter in the revolution in streamlining the administrative apparatus. The new Ho Chi Minh City is not merely a combination of geographical spaces, but a synergy that creates a new momentum and new space for development at a higher level.

“Three of the nation’s most dynamic economic poles have converged into a financial, high-tech, industrial, marine economic megacity with the highest development density in Southeast Asia, striving to be among the 100 most liveable cities in the world”, shared Duoc.

According to Associate Professor Tran Hoang Ngan, a member of the National Assembly and assistant to the Ho Chi Minh City Party Committee Secretary, there is no place like today’s Ho Chi Minh City where such a strong growth momentum has converged. In the future, there will be more new momentum, such as the Thi Vai-Cai Mep international transit port combined with the Can Gio international transit port. From there, a free trade zone will be formed, in combination with Ho Chi Minh City’s international financial centre and Dong Nai’s Long Thanh International Airport, creating new momentum for the development of the Southeast region.

Ho Chi Minh City will not be confined within the boundaries of the three merged localities but will expand to neighbouring provinces in the future to implement a regional development strategy. The city is not only the nucleus and driving force with a leading role but also fosters strong inter-regional connectivity.

Speaking in a recent working session with the leaders of the former Ho Chi Minh City, Binh Duong Province and Ba Ria-Vung Tau Province, General Secretary To Lam emphasised: “The new vision for Ho Chi Minh City is to become Southeast Asia’s international megacity - a smart, green, creative city, exemplary not only in economic strength but also in cultural, artistic, sporting, entertainment offerings and a modern, dynamic lifestyle. And Ho Chi Minh City must not only be the national economic engine but must be a modern city with influence in the global city network.”

Perfecting the new governance model

With its large area and population, Ho Chi Minh City, alongside its strong potential, is also facing major challenges in urban governance. As directed by General Secretary To Lam, the new governance model must be stronger than the provincial level, more flexible than the regional level, capable of administering a tri-polar megacity in the era of global integration and competition.

It is necessary to establish a smart, modern, comprehensive and synchronised governance system. The merger of the three localities aims to optimise not only tangible resources but more importantly institutions, mechanisms, policies, and building a facilitative, transparent and effective digital administration.

According to Associate Professor Tran Hoang Ngan, this is a revolution in organisation, thinking and action that creates new opportunities in the new development phase. An institution that is sufficiently broad and flexible, suitable for the scale of population, economy, and security and defence characteristics of each locality is an inevitable requirement. At the same time, decentralisation and devolution of power to localities must be promoted in accordance with the principle that localities decide, localities implement and localities take responsibility.

Sharing the same view, economist Le Ba Chi Nhan stated that although each locality has outstanding strengths, when merged, challenges in restructuring the administrative and governance apparatus will be unavoidable. Without specific, clear plans for decentralisation, devolution of power and resource allocation, it could easily lead to overlapping functions, conflicts of interest and the emergence of governance issues.

According to Nhan, it is necessary to promote building a smart city and digital government. Simultaneously, resource allocation and ensuring sustainable development are also challenges that need to be solved given the limited budget. For Ho Chi Minh City to truly be a launching pad for Viet Nam’s economy, it is a must to correctly identify the difficulties and proactively resolve them with practical, scientific solutions suitable to practical conditions.

Nhan provides a specific example that currently, routes connecting the centres of Ho Chi Minh City are regularly overloaded, with prolonged congestion, resulting in increased logistics costs and negatively affecting the region’s competitiveness. Several key projects such as Ring Road 3, Ring Road 4, Bien Hoa - Vung Tau Expressway, inter-provincial urban railways are still in the investment preparation phase or implemented slowly, failing to meet the requirements for the southern key economic region’s rapid and sustainable development.

To be able to manage and promote the development of a megacity like Ho Chi Minh City, alongside institutions, people are considered an important factor. Reality requires human resources that are qualified and capable of shouldering new responsibilities, ensuring the apparatus operates uniformly, smoothly, transparently and efficiently. To retain and develop talented people, those with dedication and vision, there must be adequate remuneration policies.

It is no easy task to realise the vision and expectations for Ho Chi Minh City. In a recent working session in Ho Chi Minh City, General Secretary To Lam emphasised the need for a sufficiently great aspiration, a sufficiently strong will and a sufficiently high political determination from the entire political system.

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