Ho Chi Minh City cannot maintain its leading economic position if…

Ho Chi Minh City cannot maintain its leading economic position if it continues to focus solely on traditional sectors and operate under outdated methods. These sectors, for the most part, have now exhausted their growth potential.

Accordingly, the city must focus on the circular economy, smart urban development, and high-tech industries. It needs to develop foundational industries, with a focus on high value-added sectors such as electronics and semiconductor manufacturing. Only by doing so can Ho Chi Minh City ensure sustainable growth while maintaining its leading position.

At the United Nations Climate Change Conference (COP26) in December 2021, Prime Minister Pham Minh Chinh pledged that Vietnam would reach net-zero emissions by 2050. This is an irreversible global trend, and Vietnam must seize this opportunity to restructure its economy toward a low-carbon model. As the economic engine of the country, Ho Chi Minh City should take the lead in driving the national economy toward sustainable development and achieving the Government’s 2050 commitments.

Three key challenges facing Ho Chi Minh City:

• Implementing COP26 Commitments: To meet the net-zero emissions target by 2050, the Government has issued the National Green Growth Action Plan for 2021–2030 and the National Climate Change Strategy to 2050. The business community plays a vital role in realizing these goals, responding to climate change, and promoting sustainable development.

• Accelerated Shift Toward the Circular Economy: The COVID-19 pandemic has accelerated the transition from a linear to a circular economy. Developed countries are now aiming for economic growth without depleting resources, encouraging innovation, and promoting green industries.

• Sustainable Product Demands in Global Supply Chains: Global supply chains are increasingly requiring “sustainable products” from Vietnamese suppliers. Businesses in the city must create products aligned with the principles of the circular economy—capable of regeneration and contributing to climate change mitigation. If they fail to adapt to these global trends, Vietnamese enterprises will only see short-term success before facing dead ends, rejection, and exclusion from global supply chains.

Given the challenges facing the city, the People’s Committee of Ho Chi Minh City (HCMC) needs to develop a comprehensive strategy to lead HCMC and the nation toward a circular economy model. Specific actions may include:

1. Establish a dedicated task force on “sustainable development”, directly managed by the HCMC People’s Committee, along with subcommittees within relevant departments. These bodies will guide members toward sustainable production and business practices, climate change mitigation, and integration into the circular economy.

2. Create specialized divisions to implement sustainable development and the circular economy, focusing on the specific characteristics of each sector. Priority should be given to five key sectors of the circular economy: construction, transportation, plastic packaging, fashion, and food.

3. Organize the HCMC Economic Forum 2023 with the theme “Circular Economy”, alongside thematic workshops to raise awareness, provide direction, and promote the sustainable development agenda and the construction of a circular economy. Identify and showcase exemplary entrepreneurs and enterprises—both domestic and international—that are actively pursuing sustainability and circular economy practices, to share real-world experiences.

4. Expand international cooperation with global partners, organizations, and enterprises in developed countries to access information and learn from established circular economy business models and practices.

5. Encourage and facilitate domestic and international real estate developers to invest in smart urban development projects in Ho Chi Minh City.

6. Enable access to “green finance” sources from banks and international financial institutions to support eco-friendly and sustainable projects led by HCMC-based businesses.

7. Collaborate with central ministries and agencies and advise the Government to improve regulatory frameworks, enabling HCMC—and Vietnam as a whole—to progress on its journey toward achieving Net Zero emissions.

Mr. Dinh Hong Ky

Vice President of Ho Chi Minh City Business Association (HUBA), Chairman of Secoin system