Promoting and developing digital economy

The digital economy and digital services are not only an inevitable global trend but also the fastest and most effective way for Ho Chi Minh City to reaffirm its pioneering position after the merger.

A new engine of growth

Amid the sweeping impact of the Fourth Industrial Revolution, the digital economy has emerged as a new growth driver for many nations and major cities across the globe.

According to a World Bank report, the global digital economy currently accounts for about 15% of GDP, a figure expected to rise rapidly over the coming decade.

Digital services, from e-commerce, fintech and telemedicine to online education and smart tourism, are fundamentally transforming the ways people produce, consume and manage society.

For Ho Chi Minh City, the role of the digital economy is particularly significant. As the country’s largest economic centre, contributing some 20–22% of GDP and 25–27% of national budget revenues, the city has long been at the forefront of innovation, investment, services and technology.

Experts argue that after the merger, the city’s expanded population, land and development space create opportunities for planning, restructuring and building new service sectors founded on digital platforms.

Focusing on the digital economy and digital services will not only enhance governance efficiency and optimise traditional service industries but also open up entirely new fields, providing the momentum for breakthrough growth in the city’s new phase of development.

Moreover, digital transformation allows traditional sectors such as finance, commerce, logistics, education and healthcare to optimise operations through digitalised processes and automation, helping reduce costs while improving services for residents and businesses.

More importantly, the digital economy creates entirely new areas of activity such as cross-border e-commerce, fintech, creative technologies and applied artificial intelligence, offering fresh job opportunities and attracting new investment flows.

To realise the city’s ambition of becoming a “global mega-city” in Southeast Asia and one of the world’s top 100 most liveable cities, breakthrough solutions for key service industries are urgently required.

Cao Minh Nghia,
MA, Ho Chi Minh City Institute for Development Studies

As Viet Nam’s foremost economic hub, Ho Chi Minh City, if it capitalises on the opportunities of digital transformation, will not only consolidate its leading position but also generate momentum for a breakthrough, building a modern, dynamic economy and integrating more deeply into the global economy.

According to Cao Minh Nghia of the Ho Chi Minh City Institute for Development Studies, in the current context, services are no longer just a component of the economy but are positioned as the principal driver — the key factor in reinforcing and promoting the city’s role as the nation’s economic locomotive.

To realise the city’s ambition of becoming a “global mega-city” in Southeast Asia and one of the world’s top 100 most liveable cities, breakthrough solutions for key service industries are urgently required.

These solutions must fully exploit the advantages of the merger, address existing bottlenecks and anticipate global development trends. Priority should be given to core service sectors such as finance–banking–insurance, e-commerce, premium tourism, logistics, and high-quality healthcare and education.

Towards becoming a digital economy hub

To drive forward the digital economy, information technology and telecommunications infrastructure must serve as the backbone of digital transformation and digital service development. Ho Chi Minh City enjoys many advantages in this field and has set specific targets for technological breakthroughs.

The city has invested heavily in fibre-optic networks, ensuring the highest internet coverage rate in the country, with growing numbers of households and businesses connected to broadband.

At the same time, smartphone penetration is among the highest nationwide, providing a strong foundation for citizens and enterprises to readily access digital services.

Projects to expand 5G coverage are already underway in several central districts and are expected to extend citywide in the coming years.

Ho Chi Minh City is also planning to develop international-standard data centres to serve the storage and processing of Big Data and the application of artificial intelligence (AI).

These platforms will enable more efficient e-government operations, while supporting businesses in leveraging data for research, commerce and services.

With these steps, Ho Chi Minh City is well-positioned to lead the country in building a smart city, implementing e-government and fostering robust growth in the digital economy and digital services, reinforcing its role as a regional hub.

According to Cao Minh Nghia, to become a national and regional centre for the digital economy and digital services, Ho Chi Minh City must develop a comprehensive e-commerce platform covering a wide range of goods with extensive reach.

It is also essential to strengthen oversight of e-commerce platforms to protect the rights of consumers and legitimate businesses.

In parallel, customs procedures must be simplified, with greater support for businesses engaged in digital transformation, such as adopting single-window electronic customs systems and using AI for automated clearance of low-value e-commerce goods, thereby reducing cross-border delivery times.

Support programmes should also assist enterprises, especially small and medium-sized firms, in adopting digital technologies and joining digital platforms, particularly those producing advanced industrial and agricultural products.

According to Dr Tran Minh Duc of Thu Dau Mot University, Ho Chi Minh City’s success in becoming a mega service city will depend not only on expanding its economic scale but also on linking service growth with innovation and digital transformation.

With its current standing, the city, if it seizes opportunities and learns from international experience, could well rise to become a global hub of digital and creative services, making a vital contribution to Viet Nam’s sustainable development in the years ahead.

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