Ho Chi Minh City Poised to Become a $10 Billion Drone Capital, Says Truong Gia Binh

On the afternoon of December 9th, Mr. Tran Luu Quang, Secretary of the Party Central Committee and Secretary of the Ho Chi Minh City Party Committee, met with the science and technology community, innovative startups, under the theme “Ho Chi Minh City Towards a Digital Economy Hub and International Innovation and Startup Center.”

Reporting to the Party Secretary, Mr. Truong Gia Binh, Chairman of FPT Corporation, stated that the Low-Altitude Economy Alliance, comprising FPT and related enterprises, is collaborating with Ho Chi Minh City to establish a $10 billion UAV industry within the next decade, creating approximately one million jobs. To achieve this goal, Vietnam must maintain an annual economic growth rate of 60-70%, double the global average.

“We aspire to build a drone capital in Vietnam,” shared Mr. Truong Gia Binh.

According to the FPT Chairman, Japanese partners revealed that Japan is preparing to announce 17 strategic technologies this year. Japan is also adjusting its international cooperation policies, shifting from a single-line model to expanding into Southeast Asian countries, with Vietnam as the top priority. One area of particular interest is the low-altitude economy, though implementation faces challenges due to Vietnam’s incomplete institutional and procedural framework.

Mr. Truong Gia Binh proactively invited Japanese partners to pilot models in Vietnam, with the possibility of applying them in Japan once Vietnam’s legal framework is finalized. “Japanese partners aim not only for bilateral cooperation but also to produce UAVs for the global market,” he added.

However, the FPT Chairman noted that the most significant bottleneck is the near absence of institutional frameworks. Vietnam lacks definitions for sandboxes, technical standards, licenses, and certificates of origin for UAVs. Meanwhile, Japan is ready to support Vietnam in building this entire legal framework.

He proposed that Ho Chi Minh City allow FPT to directly participate in developing the city’s pilot sandbox as a precursor to national-scale expansion.

Currently, Vietnam’s UAV industry is valued at approximately $100 million annually, with a target to increase it 100-fold within a decade. According to Mr. Truong Gia Binh, Vietnam’s advantages in labor costs and software development capabilities position it for global competitiveness. “Software is a field where we can excel in almost any arena. I believe the low-altitude economy will follow suit,” he affirmed.

During the discussion, Secretary Tran Luu Quang questioned the scope and focus of the low-altitude economy: whether it should concentrate on UAV production or their application in daily life. In response, Mr. Truong Gia Binh suggested that in the long term, UAVs will be integral to national defense, with Vietnam’s greatest opportunity lying in global production due to the current supply shortage. Regarding applications, he highlighted agriculture as the most promising sector, with several successful models already implemented. UAV delivery models are also feasible if Vietnam establishes a standardized digital addressing system for all delivery points.

At the meeting, Ho Chi Minh City leaders engaged with scientists, technologists, and innovative entrepreneurs to position the city as a digital economy hub and a national and international innovation and startup center. Delegates discussed mechanisms and solutions to boost science, technology, and innovation, exploring how these fields can contribute more significantly to the city’s socio-economic development. They also addressed what steps the city should take to remain a pioneer and leader in science, technology, and innovation.

Concluding the dialogue, the Secretary of the Ho Chi Minh City Party Committee emphasized that developing science and technology is imperative, not just for the city but for the entire nation. This task is challenging, as the city must also address more immediate issues, particularly the four Central Committee-assigned tasks: flooding, traffic congestion, pollution, and drug-free initiatives. However, advancing science and technology will ultimately help the city tackle these pressing problems.

Mr. Tran Luu Quang stressed that Ho Chi Minh City leaders must prioritize science and technology. Institutional issues go beyond incentives and priorities, encompassing administrative reforms to foster innovation.