31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
HCM City on track to become SEA digital economic hub by 2030
Ngoc Mai - Huy Khanh 18:41, 2021/04/30
The city by 2045 is expected to become a financial and economic hub of Asia and an attractive global city with GRDP per capita of US$37,000.

Ho Chi Minh City (HCMC) is taking firm steps to digitalize economy and society, making it to bdcome one of the Southeast Asia’s economic hubs by 2030 with a GRDP per capita of US$13,000.

 Production inside Saigon Hi-tech park. Photo: Huy Khanh

HCMC’s 11th Party Congress for the 2020-2025 tenure set the vision for the city to become a smart city and play a pioneering role in promoting innovation for greater socio-economic development.

By 2025, the city expected its GRDP per capita to average US$8,500 and five years later, the figure would rise to US$13,000 as HCMC would transform into an economic – financial – trade hub in the Southeast Asian region.

The Party Congress’ resolution envisioned HCMC by 2045 to become a financial and economic hub of Asia and an attractive global city with GRDP per capita of US$37,000.

Given such ambitious targets, HCMC’s leaders identifies the necessity to revise the economic growth model for greater growth quality, along with a focus on promoting spearhead economic sectors of high added value.

Another key priority is to apply science, technology and innovation to improve productivity. In the next five years, HCMC would focus on the development of financial services, banking, tourism, trade, and logistics infrastructure, along with a shift towards production and exports of products with high technological contents.

Such moves are expected to help local enterprises better integrate into global supply chains and enhance the city’s overall competitivenesss.

Unprecedented move

Last December, the National Assembly in an unprecedented move approved the establishment of a city within HCMC, namely Thu Duc, by merging three eastern districts of 2, 9 and Thu Duc. These three districts’ combined GRDP  in 2020 was higher than that of Binh Duong and Dong Nai provinces and made up one-third of the HCMC’s gross regional domestic product (GRDP).

The new Thu Duc city would develop based on the foundation of knowledge economy, with a strong focus on creating the growth driving forces for economy, education and healthcare.

Inside Thu Duc city, Saigon Hi-tech park is home for thousands of scientists and engineers to create products capable of competing on the international level.

Nguyen Anh Thi, head of the management board of Saigon Hi-tech Park said the growth rate of added value in products made at the park was estimated at nearly 18% as of late 2020.

Thi said for the 2010-2014 period, productivity was around US$114,000 per worker in the park, and US$292,000 for the 2015-2019, in which in 2019 alone, the productivity was US$373,000.

In the first 10 months of 2020, the combined value of technological products at the park was US$16 billion, accumulating  nearly US$81 billion as of present.

Saigon Hi-tech park targets to have total investment capital of nearly US$11 billion by 2025, localization rate of 35%, and export value of US$30 billion, representing a growth rate of 10% per year.

Amid the Covid-19 pandemic, the hi-tech park has played a pioneering role in developing Covid-19 vaccine and putting Vietnam among a handful   of countries having the capability to self-produce vaccine in the future.

As HCMC enters a new development period in 2020-2025, Thu Duc city would stay core in an overall effort to turn the city into a regional financial hub.

TAG: HCMC digital economic hub GRDP smart city Southeast Asia
Other news
18:16, 2023/16/04
Vietnam State Treasury to raise US$17 billion through Gov’t bonds in 2023
Government bond is an important source of revenue for the state budget and supports the development of the capital market.
12:00, 2023/00/22
Hanoi eyes comprehensive development in 2023: Mayor
In 2023, the city is determined to successfully implement its yearly socio-economic goals and realize part of the 2021-2025 key development tasks.
16:54, 2023/54/18
EU, Germany fund to enhance public financial management in Vietnam
A robust public finance management system will enable Vietnam to achieve its long-term socio-economic growth.
13:56, 2023/56/17
Vietnam proposed 30% cut in land lease in 2023
Last year, a similar cut caused the state to miss out on VND3.5 trillion (US$150 million) in revenues.
14:58, 2023/58/14
Vietnam's foreign reserves to return to US$100-billion mark by year-end
During the first 10 months of 2022, the State Bank of Vietnam (SBV) was forced to sell an estimated 20% of total foreign exchange reserves to stabilize the exchange rate.
11:03, 2023/03/07
Vietnam’s 2023 GDP growth forecast at 7.2%: Standard Chartered
The forecast comes from the country's solid growth of 8% in 2022.