Ho Chi Minh City Targets the Digital Economy for Growth
Ho Chi Minh City has entered a new strategic phase of development, with the digital economy identified as an essential engine for future growth. According to Lam Dinh Thang, the Director of the Ho Chi Minh City Department of Science and Technology, the city has positioned the digital economy as a key development pillar, setting ambitious targets that are 5-10% above the national average. The city aims for the digital sector to contribute a significant 25% to its regional GDP this year, with an even more aggressive target of 40% by 2030. This strategy is designed to drive a double-digit economic growth rate, which the city hopes to achieve starting from 2026. These goals were shared at a recent seminar co-organized by the city’s Department of Science and Technology and the University of Economics, highlighting the strong public-private and academic partnerships driving this transformation.
Strategic Pillars and Ecosystem Development
To achieve these ambitious targets, the city is building a strategic roadmap based on five key pillars. As outlined by Nguyen Huu Yen, the Deputy Director of the city’s Department of Science and Technology, these pillars include improving the institutional framework, developing robust digital infrastructure, enhancing the quality of human resources, building a dynamic innovation ecosystem, and strengthening regional cooperation. A core part of this strategy is to create a comprehensive digital economy value chain by leveraging the unique strengths of its neighboring provinces, integrating Ho Chi Minh City’s expertise in services and innovation with Binh Duong’s industrial strengths and Ba Ria-Vung Tau’s seaport and tourism potential. The city is also embracing a success formula that involves measuring impact through online tools and building a strong support ecosystem with e-commerce, online payments, and data analytics to optimize business operations.
Addressing Challenges and Empowering SMEs
Despite a clear vision and strategic plan, Ho Chi Minh City faces significant challenges in its digital transformation journey. One of the most pressing issues is the disparity in the level of digitalization between regions, particularly between the central urban area and its neighbors. Furthermore, as the city continues to grow into a “mega-urban area,” cybersecurity is emerging as a critical concern, with an increased risk of cyberattacks. The city also recognizes that changing the digital mindset and culture of both citizens and businesses, especially small- and medium-sized enterprises (SMEs), remains a long-term challenge. To address this, the Ministry of Science and Technology is implementing a plan to enhance the role of SMEs—which account for 97% of all enterprises—by developing digital transformation indicators and proposing tailored solutions like digital signatures and AI platforms. This focus is crucial, as the ministry believes successful digital implementation could boost SME productivity by 15-20%.
