HCMC poised to become Southeast Asia's innovation, financial hub following merger: experts

Ho Chi Minh City, Vietnam’s southern metropolis, is expected to establish itself as a hub for finance, manufacturing, trade, logistics, and innovation in Southeast Asia, after its merger with neighboring provinces.

The statement was made by director of the HCMC Department of Industry and Trade Ta Hoang Vu at a Friday seminar held in Vung Tau ward.

On June 12, the National Assembly, Vietnam's legislature, passed a resolution that reduces the country's number of provinces and cities from 63 to 34. Accordingly, HCMC was merged with industrial centers Binh Duong and Ba Ria-Vung Tau to form the new HCMC.

According to Vu, expanding development space and adopting a multi-centered urban model is more than just an administrative adjustment - it represents a key opportunity to elevate the city’s position on Southeast Asia’s economic map.

The official noted that city leaders have proactively revamped the growth model, consistently targeting modernity and sustainability in economic development, and deeper integration into global value chains.

Do Thien Anh Tuan from the Fulbright School of Public Policy and Management commented that following the merger, HCMC has become a multi-centered megacity, combining its traditional role as an administrative, financial and consumer hub with dynamic industrial, logistics and seaport zones.

With a population of 14 million, around 13.5% of Vietnam’s total and comparable to Tokyo while surpassing Jakarta, the new city presents a vast consumer market, he said.

“The sharp rise in population, income and living standards following the merger will significantly boost HCMC’s purchasing power. Notably, the expanded city’s GRDP stands at around $120 billion, equivalent to 23.5% of the national GDP, affirming its role as Vietnam’s economic locomotive," Tuan highlighted.

He noted that HCMC is now well-positioned to become Vietnam’s most diverse hub for consumption and services, serving both as a distribution center and a key driver of national consumer trends.

Regionally, HCMC is emerging among the ranks of megacities functioning as commercial and logistics hubs, comparable to major urban centers such as Singapore, Bangkok (Thailand), and Shanghai (China). It boasts a dense network of shopping malls, supermarkets, wholesale markets, and modern retail distribution systems.

Tuan elaborated that Binh Duong accommodates warehouse zones, logistics clusters, and industrial parks under the Vietnam-Singapore Industrial Park (VSIP) model. Meanwhile, Ba Ria-Vung Tau contributes the Cai Mep–Thi Vai deep-water port system, which offers direct access to international shipping routes

The merger paves the way for a closed-loop ecosystem of commerce, logistics, and manufacturing, capable of responding flexibly to both domestic demand and export markets, he added.

Phan Huy Chi, a senior advisor at the Mercantile Exchange of Vietnam, argued that with the network of seaports and logistics infrastructure, HCMC should redesign its commercial development landscape and better leverage waterway logistics.

Truong Tan Loc, vice chairman of the HCMC Logistics Association (HLA), commented that HCMC should strengthen connectivity among its existing ports to pool resources for its transformation into a major international transshipment hub.

Sharing this view, Le Kim Cuong, deputy director of the Logistics Services Center under Saigon Newport Corporation, emphasized the need for waterway freight transport solutions, warning against over-reliance on roads, as it can take up to seven days to move containers from Cai Mep to inland container depots.

He suggested reviewing HCMC’s port system to better utilize the Dong Nai River and the upper Saigon River for barge-based container transport. Cuong explained that it would offer significantly lower costs than road freight while easing traffic congestion and cutting CO2 emissions.

After the merger, the new HCMC now spans more than 6,722 square kilometers and has a population of over 14 million. It comprises 168 commune-level administrative units, including 113 wards, 54 communes, and one special zone - Con Dao.

Vietnam will build one international financial center located in both HCMC and Danang, central Vietnam, in which initiatives like digital assets and sandboxes will be tested under control, according to a newly-approved parliament resolution. The resolution, passed by the National Assembly on June 27, will come into force on September 1.

The international financial center component in HCMC will house capital markets, banks, currency markets, testing mechanisms (sandboxes) on fintech, innovation in the financial sector, specialized trading floors, and new trading platforms.

The Danang section will develop green finance, apply financial technology, and promote digital services. The city will also test digital assets and digital currencies under control; promote payments; and attract investment funds, remittance funds, and small and medium-sized fund management companies.