HCMC Sustains National Economic Vitality

Vision
Accordingly, in the 2010 - 2020 period, HCM City will promote its central role in many aspects in the southern region and the country as a whole, accelerating development, promoting economic growth, efficiency and sustainability, and continuously improving the people’s quality of life. At the same time, the municipality will maintain political and social stability, gradually become a centre of industry, service, science and technology for Southeast Asia and contribute more to the reform, construction and protection of the Vietnamese nation.

 

Economically, the city targets GDP growth of 12 percent in the 2011 - 2015 period and 11 percent in the 2016 - 2020 period. Particularly, service sector growth will be 12.7 percent per annum, the industry - construction sector will climb 11 percent, and the agricultural sector will expand 4 percent. By 2010, the service sector is expected to make up 60.4 percent of local GDP, followed by industry and construction with 39.2 percent, and agriculture with 0.4 percent. The city will focus on nine potential service groups, namely trading; tourism; finance; transportation and warehousing; information technology and communications; asset and real estate business; scientific and technological consultancy; health; and education and training. At the same time, HCM City will focus on building specialised industrial parks for the mechanical engineering and chemical industries, among others.

 

The city will concentrate on developing agriculture in association with services like relaxation and entertainment. It will adopt highly productive production models like farming, cooperative and household economy.

Regarding urban development, the city will support existing urban zones and expand new ones to house about 10 million people in 2020. It will accelerate the construction of new urban areas like Thu Thiem, South Saigon (including the Hiep Phuoc port urban zone), Northwest Saigon, and other new residential areas to facilitate population relocation to become a standard modern metropolis.

 

In addition, the city continues to promote social programmes, combining poverty reduction programmes with socioeconomic development programmes. Per capita income is expected to reach US$2,500 in 2010 and US$6,000 in 2020. The labour force in service, industry - construction, and agriculture - forestry - fishery will be 62 percent, 36 percent and 2 percent, respectively. Trained workers will account for over 55 percent of labour force in 2010 and over 65 percent in 2020.

 

To realise the objectives set for the 2010 - 2020 period, HCM City will step up economic restructuring toward industrialisation and modernisation. Industrial development, especially high-tech, will play a pivotal role. Currently, the rate of technological renovation in Ho Chi Minh City is about 12 percent a year, the highest in the country.

 

The city is carrying out key development programmes based on highly competitive industries such as information technology, telecommunications, machine manufacturing, precision mechanics, automation and microelectronics. Also in the 2010 - 2020 period, the city will develop key industrial products together with southern key economic areas to optimise local resources.

 

Ho Chi Minh City will be built into a major financial centre of the country. Economic and service activities are inherent strengths of the city and have spill-over impacts on industrial development. Particularly, financial activities, stock market and banking services are extremely important to attract capital to the country. At present, the total value of securities transactions on the Hochiminh Stock Exchange (HOSE) accounts for 0.5 to 1 percent of the country's GDP.

 

In addition, the city will ask the government to channel state and ODA capital to build key transport projects, Long Thanh International Airport, and environmental protection works in Dong Nai and Saigon river basins, to build logistical infrastructure in the south-eastern region and connect the southern key economic zone with national and inter-regional systems. Complete technical infrastructure systems (traffic and warehouse) and management information networks (finance, banking, customs and taxes) are connected with industrial parks in the region.

 

More importantly, the city will expand and strengthen regional links within southern key economic zone. At the same time, Ho Chi Minh City will improve urban infrastructure systems to support the social and economic development of the city and the entire region.