The southern Ho Chi Minh metropolis should focus on improving domestic supply capacity and linkages of key markets with the southern economic region to promote industrial production and maintain the pillar role of the industrial sector in the economy.
Vo Van Hoan, Vice Chairman of the municipal People’s Committee, stated that in recent years, the economic structure of the city has changed, basically in line with the general trend of development. Currently, the services sector represents a high proportion of the economy, 65%, while industry and construction account for 31%, and agriculture around 1%.
However, a sustainable economic sector must be based on industrial production and agricultural production to create goods for consumers. An economy that is too focused on services, without a solid base in industrial production, is at the mercy of external economic ups and downs.
Therefore, although the economic structure of the city is transforming towards modernity, the town must also pay attention to promoting the development of production to create a balance and ensure long-term economic sustainability.
According to Hoan, the city developed industry quite early, as it is home to many industrial parks and export processing zones that have been operating since the 1990s. This means that many technologies are now outdated. These industrial parks use a lot of resources and labor with little added value, even in the large manufacturing companies in the city.
Meanwhile, there has been no investment or development in new and potential industries, such as fashion, film, culture and ancillary industries. Thus, the local economy requires a drastic change in the mentality and actions of leaders at all levels. This is especially the case for the business community, in order to create a revolutionary breakthrough for the city in industrial production in the coming years.
Dr. Truong Minh Huy Vu, Deputy Director of the Ho Chi Minh Development Research Institute, said the town is one of the major industrial centers, making an important contribution to the country’s industrial development.
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However, the industrial density of the city and the industrial structure of the country are experiencing a downward trend. In 2010, the industrial sector of the city represented 15.38% of the country’s industrial added value. In 2021, the share dropped to just 8.7%, 6.68 percentage points less than in 2010.
Currently, the services sector represents a high proportion of the economy, 65%, while industry and construction account for 31%, and agriculture around 1%.
In fact, the city does not have resources for industrial development, especially land. In addition, the city’s policy of limiting the attraction of investment projects in labor-intensive industries, together with the trend of relocation of industrial production from the city to other provinces, also slows down the growth of the industrial sector.
According to Vu, in the near future, the city should focus on exploiting local potential and advantages as the country’s science, technology and innovation center for industrial development. The center must effectively exploit the land and highly-skilled human resources, while applying the achievements of the 4.0 revolution to improve the productivity, quality and efficiency of industrial sectors and products.
Ho Chi Minh also needs to support the development of priority industries, develop industrial land fund, support capital and attract investment, and support science-technology and market development, and trade promotion, Vu suggested.
Article republished from the Vietnamese state media VNA in the framework of an agreement between both parties to share content. Link to the original article:https://en.vietnamplus.vn/ho-chi-minh-city-to-reboot-industrial-development-strategy/252799.vnp
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