Investments

The Vice Chairman’s Vision: Ho Chi Minh City’s Path to New Industries

Vice Chairman of the Ho Chi Minh City People's Committee, Vo Van Hoan, emphasized the need for the city to establish new industries such as new energy, pharmaceutical, cultural, and film industries. He believes that these industries will play a pivotal role in propelling Ho Chi Minh City towards a brighter and more prosperous future. With a keen eye for economic development and a deep understanding of the city's potential, Mr. Hoan's vision is to foster innovation and create a thriving environment for these industries to flourish. By doing so, Ho Chi Minh City can position itself at the forefront of these emerging sectors, attracting investments and creating numerous opportunities for its citizens.

Administrator

26 September, 2024

Prime Minister Pham Minh Chinh chairs the dialogue – Photo: VGP/Nhat Bac

In the afternoon of September 25, within the framework of the 5th Ho Chi Minh City Economic Forum 2024, a Policy Dialogue session took place, chaired by Prime Minister Pham Minh Chinh.

Reporting on the overview of Ho Chi Minh City’s industrial transformation, Vice Chairman of the Ho Chi Minh City People’s Committee Vo Van Hoan said that in the last 5 years, the city’s economy has continued to develop stably, playing a key role in many aspects of the region and the country. Annually, Ho Chi Minh City contributes 20% of GRDP and 25% of state budget revenue for the whole country.

In the city’s economic development, the industry has an important position and accounts for a high proportion. In the period from 2016 up to now, with the shift in the economic structure of Ho Chi Minh City, the industry has made strong and solid development based on 4 key industries: Mechanics; electronics – information technology; chemistry – rubber and plastics; and food processing. These industries have high technology and added value, creating a positive spillover effect on other economic sectors.

However, Vice Chairman Vo Van Hoan acknowledged that alongside the achievements, the city’s industry is facing challenges such as unsustainable development; a high proportion of assembly and processing; low added value; outdated technology after 30 years of investment and development; high resource consumption; and labor-intensive processes.

In addition, the slow development of supporting industries and the inappropriate distribution of export processing zones and industrial parks, with some currently located in the city’s core area, were also noted.

Vice Chairman of the Ho Chi Minh City People’s Committee Vo Van Hoan reported on the city’s industrial transformation – Photo: VGP/Nhat Bac

Therefore, according to Mr. Vo Van Hoan, to overcome these limitations, it is urgent and necessary to transform the city’s industry. The city’s industry must develop in the direction of high-tech application; electronic chip, integrated circuit, and semiconductor industries; supporting industries; green industry associated with digital transformation; and the development of industrial support services such as logistics, digital services (including information and communications), and financial services. Especially, new industries such as new energy, pharmaceuticals, culture, and film industries must be formed.

To successfully transform the city’s industry, in addition to the efforts of businesses and investors, Mr. Vo Van Hoan emphasized the need for accompaniment from the Government, ministries, central agencies, and localities.

First and foremost, there is a need to build strong and feasible incentive policies from the central government and the city authorities within their competence. At the same time, administrative procedures should continue to be reformed, and the investment environment improved to help businesses and investors effectively access resources through market mechanisms and take advantage of the support and cooperation of international organizations and countries around the world.

Nhat Quang