Friday, October 24, 2025 7:09:38 PM - Markets open
VN-INDEX 1,683.18 -3.88/-0.23%
HNX-INDEX 267.28 +0.50/+0.19%
UPCOM-INDEX 110.87 -0.17/-0.15%
Việt Nam’s southern metropolis targets $120 billion economy in 2025
Vietnam News - 10/24/2025 9:26:04 AM
 (0 ratings. You must sign in to rate.)

The new metropolis formed from the merger of HCM City, Bình Dương, and Bà Rịa–Vũng Tàu is projected to generate a Gross Regional Domestic Product (GRDP) of VNĐ2.97 quadrillion (US$114 billion) in 2025, eyeing to become a regional powerhouse with global influence.

Yet, structural bottlenecks threaten its ability to lure foreign investors, multinational corporations, and major financial groups.

A regional powerhouse takes shape

The merger unites three complementary economic engines, described by experts as the “three legs of a tripod” forming a dynamic, self-sustaining urban ecosystem.

HCM City anchors the region as a financial and commercial hub, hosting major banks, securities firms, insurance companies and professional services. Bình Dương brings advanced manufacturing and a knack for attracting foreign investment, Bà Rịa–Vũng Tàu  adds deep-sea port infrastructure, a diverse energy portfolio spanning oil, gas, and renewables and coastal tourism potential.

Trần Thị Mỹ Xuân from Thủ Dầu Một University said the merger creates a strategic “urban–service–innovation triangle” for southern Việt Nam.

However, experts warned that fragmented urban planning post-merger has led to overlapping functions and disjointed spatial development, weakening regional connectivity, logistics efficiency and synergy among ports, industrial zones and transport networks.

Logistics costs, which consume 16-17 per cent of Việt Nam’s GDP, far exceed those in Japan (11 per cent), Singapore (8 per cent), Malaysia (13 per cent), or Indonesia (13 per cent). Limited multimodal transport links spanning sea, road, rail and air, coupled with low digitalisation in supply chains, fuel inefficiencies. Persistent congestion and overburdened infrastructure further erode competitiveness.

A shortage of skilled workers in fields like big data, AI, international finance and logistics 4.0 also hampers growth and deters investors.

Three breakthroughs for transformation

The ongoing digital transformation and fourth industrial revolution offer unprecedented opportunities to HCM City to develop advanced digital services, fintech, e-commerce and other high-tech sectors such as AI, blockchain and the Internet of Things (IoT).

With a combined seaport capacity expected to reach 32.7 million TEUs annually once projects are completed, the city could rival Singapore’s 37 million TEU capacity and other major regional ports, cementing its indispensable role in global value chains, especially in IT outsourcing, cross-border financial services, logistics and supply chain management.

Cao Minh Nghĩa from the Ho Chi Minh City Institute for Development Studies, stressed that achieving Southeast Asian mega-city status and a spot among the world’s top 100 most livable cities hinges on breakthroughs in finance, banking, insurance, e-commerce, luxury tourism, logistics, health care and education. The rise of digital, green and circular economies offers a chance to restructure toward sustainable growth.

Experts recommended focusing on three core breakthrough: institutional and policy reform, enhanced infrastructure connectivity, and a diversified service ecosystem.

Major projects already in motion are set to generate huge growth momentum. The Tân Sơn Nhất International Airport's new Terminal T3 and the Long Thành International Airport in neighbouring Đồng Nai province will boost aviation, logistics, and tourism.

Ring Roads 3 and 4 will cut cargo transport times and enhance regional competitiveness. The Cái Mép-Thị Vải port complex, ranked among the world’s top 20 container ports, will solidify the city’s ambition to become a regional logistics and distribution hub, defining its path to global mega-city status. — VNA/VNS

Read original article here

Older News
22/10 Việt Nam to advance ESG data ecosystem in finance
15/10 Firms encouraged to leverage EVFTA rules to boost exports to EU
08/10 VN projected for 6.6 per cent growth rate in 2025
08/10 US website highlights Việt Nam’s impressive economic growth
03/10 MoIT prepares draft decree to boost rice exports
01/10 ADB raises Việt Nam’s 2025 growth forecast to 6.7 per cent
01/10 HCM City attracts $4.4 billion into industrial parks in nine months
25/09 Steel nerves as Việt Nam faces trade remedy risks
10/09 PM directs stronger measures to boost rice production, export
08/09 Rice under pressure as Việt Nam tackles Philippine pause
 
Newsletter Signup
Top Stories
FTSE Russell upgrades Việt Nam to secondary emerging market status
ACB becomes first bank to launch its own gold bullion brand, trading begins October 10
Việt Nam ramps up compliance inspections for gold trading enterprises
Banks focus on increasing charter capital in second half of year
From pioneer to leader: Việt Nam's stock market hits 25-year milestone
Market Update
Last updated at 3:10:02 PM
VN-INDEX 1,683.18 -3.88/-0.23%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.