General Secretary To Lam and Prime Minister Pham Minh Chinh, along with a central delegation, met today with the Standing Committee of the Ho Chi Minh City Party Committee, as well as the Party Committees of Ba Ria - Vung Tau and Binh Duong provinces.

The discussions focused on implementing recent resolutions and conclusions by the central government, restructuring the organizational apparatus, national defense and security issues, economic growth, and social welfare efforts.

After listening to the delegation and leaders of the three localities, the General Secretary delivered concluding remarks.

He affirmed that the merger of Ho Chi Minh City with Binh Duong and Ba Ria - Vung Tau marks the start of a new development phase. The city is set to become not only Vietnam’s largest economic, cultural, and financial hub but also one of Southeast Asia’s most prominent urban, financial, and port zones.

Each of the three localities brings distinct strengths to the merger.

Binh Duong represents Vietnam’s 40-year journey of renovation. Once a traditional agricultural province, it has transformed into a leading industrial and urban center, attracting 4,500 FDI projects worth nearly 45 billion USD. It is especially appealing to international investors with its integrated industrial-urban-service model.

Ba Ria - Vung Tau is positioning itself as a national marine economic center, anchored by the Cai Mep - Thi Vai port cluster, one of the top 21 deep-water ports globally. The cluster is undergoing expansion and modernization to become Vietnam’s largest international transshipment hub with Asia-level competitiveness.

Meanwhile, Ho Chi Minh City is undergoing a strategic transformation to maintain its position as Vietnam’s economic engine and elevate its regional status. A standout initiative is the International Financial Center, envisioned as a space for testing new institutions, financial technologies, and modern governance models. The city ranks in Southeast Asia’s top five startup ecosystems and 110th globally – its highest ever. In 2024, it also placed second in Vietnam’s digital transformation index.

“All three localities possess leading institutional and digital governance frameworks. These are laying the foundation for a pioneering urban region driven not only by growth speed but also by governance quality, institutional reform, and innovative development,” the General Secretary noted.

However, structural bottlenecks still hinder sustainable growth, with investments not fully aligned with potential, and international competitiveness remains limited.

Ho Chi Minh City, before the merger, was the country’s largest economic center but suffered from constrained development space, overloaded infrastructure, heavy population pressure, environmental pollution, and chronic flooding and traffic congestion.

Its 2024 provincial competitiveness index ranked only 29th. On global livability rankings, the city typically falls outside the top 100, while cities like Bangkok, Kuala Lumpur, and Singapore rank much higher. It is falling behind not only regional peers but also several domestic localities.

Binh Duong, despite its industrial and FDI success, still relies heavily on labor- and land-intensive manufacturing. It lacks high-quality training centers, modern social infrastructure, and innovation capacity. Urban development hasn’t kept pace with industrial growth, and quality of life varies significantly between areas.

Ba Ria - Vung Tau, though advantaged with deep-water ports, struggles with regional linkages and value chain development. Cai Mep - Thi Vai has international competitiveness, but its logistics ecosystem is underdeveloped. Tourism remains seasonal and lacks integration with smart urban systems or premium services.

“These limitations must be addressed head-on so that the merged city can both maximize strengths and overcome weaknesses,” To Lam emphasized.

A new Ho Chi Minh City reaching farther will help Vietnam advance faster

The creation of a new Ho Chi Minh City is a transformative event in Vietnam’s urban development. According to General Secretary To Lam, it represents a comprehensive spatial restructuring, consolidating dynamic economic hubs into a megacity combining finance, industry, and ports.

Post-merger, the new city covers about 6,722 square kilometers with a population of 14 million, leading the nation in GRDP and budget contributions. On the global stage, it surpasses some Southeast Asian nations in either population or economic size.

In his conclusion, the General Secretary stressed that after the merger, the mindset of the new city’s leadership is crucial. Ho Chi Minh City is no longer a local entity but one aspiring to be a global megacity in Southeast Asia, not only Vietnam’s economic leader but a modern urban center influential within global city networks.

“Ho Chi Minh City’s ambition to become a smart city of global standing is not just its own but the nation's collective desire. As the city rises, so too will the nation,” To Lam said.

He proposed setting concrete goals for 2035 and 2045: What income bracket should the city reach? Where should it rank in regional innovation? What should the average per capita income be? Can it enter the top 50 most livable and smart cities globally?

To meet these targets, forming the city’s new Party Committee is vital. The governance model must be more powerful than a province, more flexible than a region, capable of managing a megacity. Data should be centralized, but decisions must be made close to citizens. Thus, grassroots governance will be crucial.

Signs of parochialism and vested interests in personnel and policymaking