At a meeting on September 9, Nguyen Van Duoc, Chairman of the HCM City People’s Committee, said the southern metropolis has maintained momentum since its administrative merger with Binh Duong and Ba Ria-Vung Tau provinces earlier this year, playing a key role as the country’s growth engine.

“The city has seen bright spots, but public investment remains a bottleneck that must be resolved to sustain growth,” he said.

The city’s industrial production index rose 10.2% in August from a year earlier and climbed 6% in the first eight months, with key industries expanding 11%.

Retail sales and consumer service revenue grew 15.6% year on year to about VND1.24 quadrillion (US$48.6 billion) during the period, while tourism services surged nearly 39%.

Exports reached US$61.2 billion in the eight months, up 6.35% year on year, while imports rose 9% to US$65.7 billion.

Foreign direct investment inflows jumped 58% to nearly US$6.9 billion, underscoring confidence among overseas investors in Vietnam’s largest urban economy.

Officials said the city’s recovery has been supported by resilience in both traditional and high-value industries, along with policy measures aimed at boosting consumption and attracting capital.

Public investment lags

Despite these gains, the city disbursed just VND51.5 trillion in public investment as of August 29, equal to 43.3% of the central government’s plan and only 34% of its own expanded allocation.

The slow pace of land clearance has been a major obstacle, with local-level authorities lacking experience and clear coordination mechanisms, according to Duoc.

“When leadership pushed hard in the second quarter, disbursement rose to 43%. But in the past two months it barely increased by 1%, showing the process is not yet sustainable,” he said, urging departments and districts to identify shortcomings, especially at the grassroots level.

The city has committed to accelerating land clearance, speeding up compensation for major projects, and preparing proposals for priority infrastructure works in the 2026–2030 period to drive growth.

Macro-economic significance

Home to over 10 million people, HCM City accounts for about 23% of Vietnam’s GDP and one-third of national budget revenue. 

The city’s ability to sustain growth and mobilise investment is seen as critical to the country’s overall economic stability, especially at a time of global uncertainty.

Economists note that while strong industrial output and FDI inflows highlight the city’s competitiveness, the underperformance in public investment, a key driver of infrastructure upgrades, could undermine productivity gains and slow its contribution to national growth.

HCM City has been allocated nearly VND151.4 trillion in public funds this year, 127% of the central government’s initial target.

The city aims to accelerate disbursement in the final months of 2025 to support its gross regional domestic product (GRDP) growth target of 8.5%.

Project management boards in HCM City and Binh Duong and Ba Ria-Vung Tau provinces (now part of the enlarged HCM City) said they are stepping up efforts to launch new projects, speed up site clearance, and push contractors to complete construction work on time.

The transport project management board of HCM City, which controls more than VND16.8 trillion in public investment this year, said it has disbursed 55% and pledged to complete 100% by year-end.

City officials stressed that stronger accountability, more decisive leadership, and streamlined coordination between departments will be crucial for accelerating public investment and sustaining the city’s role as Vietnam’s economic powerhouse.

Vietnam to start building US$7 bln international financial hub in HCM City

Ho Chi Minh City will begin construction of a long-planned international financial centre (IFC) in September, part of Vietnam’s push to position itself as a regional financial hub alongside Singapore and Hong Kong (China).