Vietnam’s southern metropolis targets over 120 bln USD economy in 2025

A corner of Ho Chi Minh City (Photo: nhandan.vn)

Yet, structural bottlenecks threaten its ability to lure foreign investors, multinational corporations, and major financial groups.

A regional powerhouse takes shape

The merger unites three complementary economic engines, described by experts as the “three legs of a tripod” forming a dynamic, self-sustaining urban ecosystem.

Ho Chi Minh City anchors the region as a financial and commercial hub, hosting major banks, securities firms, insurance companies, and professional services. Binh Duong brings advanced manufacturing and a knack for attracting foreign investment, while Ba Ria–Vung Tau adds deep-sea port infrastructure, a diverse energy portfolio spanning oil, gas, and renewables, and coastal tourism potential.

Tran Thi My Xuan from Thu Dau Mot University said the merger creates a strategic “urban–service–innovation triangle” for southern Vietnam.

However, experts warned that fragmented urban planning post-merger has led to overlapping functions and disjointed spatial development, weakening regional connectivity, logistics efficiency, and synergy among ports, industrial zones, and transport networks.

Logistics costs, which consume 16-17% of Vietnam’s GDP, far exceed those in Japan (11%), Singapore (8%), Malaysia (13%), or Indonesia (13%). Limited multimodal transport links spanning sea, road, rail, and air, coupled with low digitalisation in supply chains, fuel inefficiencies. Persistent congestion and overburdened infrastructure further erode competitiveness.

A shortage of skilled workers in fields like big data, AI, international finance, and logistics 4.0 also hampers growth and deters investors.

Three breakthroughs for transformation

The ongoing digital transformation and fourth industrial revolution offer unprecedented opportunities to Ho Chi Minh City to develop advanced digital services, fintech, e-commerce, and other high-tech sectors such as AI, blockchain, and the Internet of Things (IoT).

With a combined seaport capacity expected to reach 32.7 million TEUs annually once projects are completed, the city could rival Singapore’s 37 million TEU capacity and other major regional ports, cementing its indispensable role in global value chains, especially in IT outsourcing, cross-border financial services, logistics, and supply chain management.

Cao Minh Nghia from the Ho Chi Minh City Institute for Development Studies, stressed that achieving Southeast Asian mega-city status and a spot among the world’s top 100 most livable cities hinges on breakthroughs in finance, banking, insurance, e-commerce, luxury tourism, logistics, health care, and education. The rise of digital, green, and circular economies offers a chance to restructure toward sustainable growth.

Experts recommended focusing on three core breakthrough: institutional and policy reform, enhanced infrastructure connectivity, and a diversified service ecosystem.

Major projects already in motion are set to generate huge growth momentum. The Tan Son Nhat International Airport's new Terminal T3 and the Long Thanh International Airport in neighbouring Dong Nai province will boost aviation, logistics, and tourism. Ring Roads 3 and 4 will cut cargo transport times and enhance regional competitiveness. The Cai Mep–Thi Vai port complex, ranked among the world’s top 20 container ports, will solidify the city’s ambition to become a regional logistics and distribution hub, defining its path to global mega-city status./.

VNA

Source: https://en.vietnamplus.vn/vietnams-southern-metropolis-targets-over-120-bln-usd-economy-in-2025-post330974.vnp