However, Ho Chi Minh City is also facing significant challenges in transitioning its growth model to enter a new era of high and sustainable growth, particularly regarding infrastructure and a skilled workforce.
Sustaining growth momentum
Currently, Ho Chi Minh City contributes 19-20% to the national growth rate and accounts for 16% of the country's economy. The city's per capita GRDP in 2024 is estimated to exceed 7,500 USD, 1.7 times higher than the national average. Its economic structure remains positively aligned, with the service sector accounting for the largest share (over 64%), while agriculture holds a minimal proportion of just 0.5%. The city also serves as a financial, commercial-service, scientific-technological, innovation, and high-tech industrial hub for the southern region and the nation.
According to Prof. Dr. Nguyen Trong Hoai from the University of Economics, Ho Chi Minh City, who is also a member of the Advisory Council for Resolution No. 98/2023/QH15 (dated June 24, 2023, by the National Assembly on piloting specific mechanisms and policies for Ho Chi Minh City’s development), the city's annual economic report indicates that, amid its gradual transition from labour-intensive to high-tech and green growth models, the city's economy in 2024 has continued to maintain stable growth momentum.
The service sector has achieved a high growth rate and nearly regained its pre-COVID-19 growth trajectory. Meanwhile, the industrial and construction sectors have yet to achieve robust growth rates or return to their pre-pandemic trends. Although the city’s industrial sector is making strides in the right direction, the pace of transformation remains below expectations.
Traditional industries such as textiles, apparel, and leather are generally experiencing a decline in output. Meanwhile, except for the pharmaceutical and chemical industries, other key sectors (food and beverage, electronics, and mechanical engineering) have yet to exhibit a significant increase in post-COVID-19 production volumes.
Experts note that Ho Chi Minh City consistently ranks among the top localities for attracting foreign investment, with a focus on high-tech, advanced industries and high-value-added products. Simultaneously, the city's workforce quality has improved through the adoption and transfer of modern global technologies.
The development of science and technology in Ho Chi Minh City is also geared toward achieving the city's socio-economic development goals, with a strong emphasis on applications in industries such as manufacturing, agriculture, and construction. These efforts have resulted in the creation of high-quality and competitive products and services. The city has taken the lead by establishing the Centre for the Fourth Industrial Revolution (C4IR) at the Hi-Tech Park and the Ho Chi Minh City Digital Transformation Centre. It has also been ranked among the top 100 emerging innovative cities globally and placed 53rd out of 152 cities for the best local online services worldwide.
Education and training continue to advance, with the city leading the nation in universal education initiatives. To date, Ho Chi Minh City has achieved its goal of universalising upper secondary education, thereby raising the overall educational standard. UNESCO has recognised 64 cities from 35 countries as members of the Global Network of Learning Cities, including Ho Chi Minh City.
Confidently stepping into new era
Ho Chi Minh City remains Vietnam's largest hub for innovation and startups, where the material, cultural, and spiritual life of its residents continues to improve. The city’s international relations, cooperation, and integration efforts have achieved significant positive outcomes. Administrative reforms and measures to improve the investment and business environment have progressed significantly, creating favourable conditions for socio-economic development.
However, the city has yet to fully leverage its potential and advantages. Increasing competition from other localities in attracting investment has somewhat diminished Ho Chi Minh City’s exceptional dynamism, creativity, and leadership role within the region and the nation.
Moreover, the city faces persistent challenges such as underdeveloped infrastructure, overloaded transportation systems, and recurring flooding caused by rising tides. These long-standing issues have become critical bottlenecks hindering the city’s growth.
According to Prof. Dr. Nguyen Trong Hoai, Ho Chi Minh City faces three major challenges in its development journey including a high-quality workforce, investment from domestic and foreign enterprises, and infrastructure.
Experts agree that addressing the infrastructure challenge should take priority. Therefore, in 2025 and the years beyond, the city must allocate resources to promptly complete key infrastructure projects.
Focusing on infrastructure development and improvement serves as a critical foundation, establishing a robust backbone that will significantly influence Ho Chi Minh City's growth rate in 2025 and its progress in the new era.
To ascend to new heights, Ho Chi Minh City should actively and persistently develop the "3:3:3 model", which includes three strategic breakthroughs (in terms of institutional reforms, infrastructure development, high-quality human resources); three accelerating drivers (science-technology-innovation, digital transformation, high-quality services); and three sustainable practices (green transition, culture, tourism).
In both the past and present, during difficult periods and challenging times, the city has always demonstrated its resilience to overcome obstacles and has consistently made significant contributions to the nation's development. An important asset that Ho Chi Minh City has always had is its resilient revolutionary tradition, its status as a heroic city, and the dynamic, creative spirit of its people, businesses, and government—the spirit of daring to think and act.
With its favourable geographical location, as a gateway for international integration, and being a centre for economics, finance, culture, education, science, technology, innovation, and creativity, along with a high-quality workforce, the city will stand strong alongside the entire nation as it steps into the new era of the nation's rise.
