Ho Chi Minh City’s Dual Transformation for Sustainable Growth
Ho Chi Minh City embarks on a dual transformation—digital and green—to reclaim its economic leadership in Southeast Asia, aiming for sustainable and inclusive growth by 2030.
Table of Contents
Economic Challenges and the Need for Transformation
Historically, HCMC contributed over 25% to Vietnam’s GDP. However, recent years have seen this figure decline to around 16%, with the city’s per capita GRDP ranking fifth nationally, trailing behind provinces like Ba Ria–Vung Tau and Quang Ninh. The COVID-19 pandemic further exacerbated this downturn, with the city’s GRDP contracting by 6.78% in 2021, while the national economy grew by 2.91%.
In response, the city has set ambitious targets: achieving an annual economic growth rate of 8-8.5% by 2030 and elevating the digital economy’s contribution to 25% of its GRDP by 2025, aiming for 40% by 2030
Embracing Digital Transformation
HCMC is investing heavily in digital infrastructure to foster a robust digital economy. Initiatives include the development of a digital government, society, and economy, with plans to ensure comprehensive 5G coverage and the integration of AI in various sectors. The city has also launched a digital citizen app to enhance connectivity between residents and administrative services.
These efforts aim to position HCMC as a leading digital hub in Southeast Asia, attracting foreign investment and fostering innovation.
Advancing Green Initiatives
Parallel to its digital ambitions, HCMC is prioritizing green development to address environmental challenges and promote sustainability. The city is implementing policies to encourage the use of renewable energy, with projects like the installation of solar panels on public buildings and the development of green urban areas.
Additionally, HCMC is exploring mechanisms for carbon credit exchange and offset, aiming to become a model for green urban development in Vietnam
Infrastructure Development and Regional Integration
HCMC is also focusing on infrastructure development to support its dual transformation. Projects include the expansion of public transportation systems, such as the Saigon Bus Rapid Transit (BRT), and the promotion of electric vehicles to reduce emissions .
The city is enhancing its logistics capabilities to strengthen regional integration, aiming to become a central hub for trade and commerce in Southeast Asia.
Outlook and Future Prospects
With these comprehensive strategies, HCMC is poised to revitalize its economy and reaffirm its status as Vietnam’s leading economic center. By embracing digital innovation and green development, the city aims to achieve sustainable growth, improve the quality of life for its residents, and contribute significantly to the nation’s overall progress.
As HCMC continues to implement these initiatives, it serves as a model for other cities in the region seeking to balance economic development with environmental sustainability.
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