The Merge of HCM, Ba Ria - Vung Tau and Binh Duong will form a stronger economic region

Savills has released an analysis of this historic development, highlighting the vast potential in economic and urban growth, plus key factors that must be aligned to ensure the merger is effective and sustainable.

HCMC is currently drafting the merger plan with Binh Duong and Ba Ria – Vung Tau, and expects to submit it to the Government before May 1. As scheduled, the resolution will take effect on September 1, and the new HCMC will officially begin operating on September 15.

On April 18, at the 22nd extraordinary session, the HCMC People’s Council (10th tenure) officially passed the resolution endorsing the merger of the three localities: HCMC, Binh Duong, and Ba Ria - Vung Tau.

Following the merger, the new administrative will retain the name HCMC, emerging as a megacity in Southeast Viet Nam. The political and administrative centre will remain in HCMC, with two auxiliary administrative centres maintained at the existing locations of the other two provinces.

The merger should create a new, highly competitive economic and urban hub, leveraging the advantages of natural, geographic, and infrastructure.

Their adjacent locations and integrated transport systems will enable more effective and coherent spatial and urban planning. The expanded land bank provides room for decentralisation strategies, the development of satellite towns, and the construction of modern metropolitan areas. Simultaneously, infrastructure systems, particularly roadways, waterways, and seaports, are expected to be standardised to enhance regional connectivity and improve logistics capacity.

Addressing this matter, Giang Huynh, Director of Research at Savills HCMC, emphasised that for the administrative merger to be effective and urban land use to be ooptimized four key factors must be addressed in synchrony.

First, administrative and land procedures must be reviewed and simplified. Second, master planning needs unified land and infrastructure planning. Third, financial mechanisms involve establishing efficient disbursement channels for public infrastructure investment. Fourth, a clear and cohesive development strategy must be in place.

“Planning a larger land area after the merger will create flexibility to introduce new planning decisions, shaping future infrastructure and residential zones. This helps address urban decentralisation and unlock new housing supply. However, these areas must prioritise strong connectivity to the city centre to attract genuine residential demand. In parallel, there must be a clear strategy for new infrastructure development and investor attraction to these zones”, said Giang Huynh.

Assessing the strengths of each area, Giang Huynh notes that HCMC is currently the financial and economic centre, offering hospitality and residential services to the largest population. However, the city’s infrastructure is under significant pressure due to its high concentration, resulting in increasing congestion. Binh Duong is recognised as an industrial hub with rapid urbanisation, while Ba Ria - Vung Tau benefits from tourism and industrial development.

According to the Savills expert, “The merger of these three areas will create a powerful economic region, diversified across manufacturing, residential, commercial services, and tourism. To fully unlock this potential, it is critical to implement integrated planning strategies and efficient administrative procedures.”

The present infrastructure to connect HCMC, Binh Duong, and Ba Ria - Vung Tau remains limited. Despite major national highways and expressways such as HCMC - Long Thanh (and upcoming routes like HCMC - Thu Dau Mot; Bien Hoa - Vung Tau), congestion persists, especially at key intersections like An Phu Roundabout, with potential spill-over into surrounding areas like Long Thanh.

The timely completion of key infrastructure projects such as Ring Road 3 and the expressways connecting HCMC – Thu Dau Mot and Bien Hoa – Vung Tau is essential to alleviate pressure on existing infrastructure and unlock the potential of peri-urban areas awaiting infrastructure development. These new infrastructure plans are necessary, especially those offering more effective connectivity between HCMC, Binh Duong, Ba Ria - Vung Tau, and neighbouring provinces such as Dong Nai.