Prime Minister Urges HCM City to Drive Việtnam’s Double-Digit Growth Ambitions
HCM City, The Gulf Observer: Prime Minister Lê Minh Hưng has called on Hồ Chí Minh City to further strengthen its position as Việtnam’s primary economic growth engine, emphasizing that the southern metropolis will play a decisive role in helping the country achieve its ambitious double-digit growth target.
Speaking during a working session with the Standing Board of the Hồ Chí Minh City Party Committee on June 13, Prime Minister Hưng praised the city’s Party organization, authorities, and residents for their significant contributions to national development. However, he also highlighted several longstanding challenges that continue to hinder progress, including slower-than-expected economic growth, delays in public investment disbursement, underutilization of special policy mechanisms, shortages of high-quality human resources, and unresolved long-delayed projects.
The Prime Minister further pointed to persistent urban issues such as traffic congestion, flooding, environmental pollution, and inadequate infrastructure connectivity, urging city leaders to address these bottlenecks with greater urgency.
Turning Special Mechanisms into Development Resources
Prime Minister Hưng stressed the need for Hồ Chí Minh City to streamline administrative procedures, reduce compliance costs for businesses and citizens, and create a more competitive and transparent investment environment.
He called for a comprehensive review of the city’s 2026 growth scenarios, focusing on unlocking untapped potential across key sectors, including manufacturing, pharmaceuticals, logistics, finance, and banking. The government leader urged authorities to implement effective measures to maximize growth in the remaining months of the year.
Regarding public investment, the Prime Minister emphasized accountability, directing agencies and project leaders to take responsibility for implementation delays. He advocated strict penalties for delays caused by subjective factors and encouraged the reallocation of funds from underperforming projects to those capable of faster execution, with the goal of achieving a 100 percent disbursement rate.
He also instructed the city to make full use of special mechanisms and policies approved by the National Assembly, transforming them into concrete development resources and new growth-generating projects. Close coordination with ministries and relevant sectors was encouraged to expedite the drafting and submission of the proposed Special Urban Law, which is expected to provide breakthrough policies in finance, land management, investment, infrastructure, science and technology, and urban governance.
Accelerating Strategic Infrastructure Development
The Prime Minister directed city authorities to accelerate major infrastructure projects while preparing conditions for several strategic developments, including Metro Line No. 2, the Cần Giờ Sea Bridge, the Thủ Thiêm–Long Thành Railway, and Thủ Thiêm 4 Bridge.
He also urged the city to leverage newly approved policy mechanisms to resolve long-standing projects and improve the management and utilization of surplus public land and assets.
Highlighting the importance of innovation-led growth, Prime Minister Hưng called on Hồ Chí Minh City to remain at the forefront of implementing Politburo Resolution 57 on science, technology, innovation, and digital transformation. He emphasized strengthening collaboration between research institutions, universities, and businesses to generate practical technological solutions and new growth drivers.
Priority sectors identified by the Prime Minister include artificial intelligence, semiconductors, digital technologies, logistics, renewable energy, and the green economy. He encouraged significant investment in digital infrastructure, innovation ecosystems, startup development, and attracting leading global technology corporations.
International Financial Centre and Housing Reform
The government leader underscored the strategic importance of establishing and operating an International Financial Centre in Hồ Chí Minh City. He called for internationally competitive policies capable of attracting major financial institutions and investors, thereby mobilizing long-term capital for sustainable development.
On housing policy, Prime Minister Hưng proposed a shift in focus from promoting home ownership to ensuring broader access to housing, particularly through rental housing initiatives. He urged the city to mobilize both public and private resources for housing projects linked to industrial parks and export processing zones, while launching large-scale developments capable of delivering visible results in 2026.
The Prime Minister also stressed the importance of ensuring the effective operation of the two-tier local administration model, enhancing digital transformation, strengthening administrative discipline, and promoting innovation within the public sector.
Strong Economic Recovery Continues
According to a report presented by the municipal Party Committee, Hồ Chí Minh City’s economy continued to recover strongly during the first five months of 2026. Gross Regional Domestic Product (GRDP) expanded by 8.27 percent in the first quarter, marking the highest growth rate in approximately ten years.
Industrial production increased by 11 percent, while total retail sales and consumer service revenue approached VNĐ800 trillion (approximately US$30.4 billion), representing a year-on-year increase of 12.8 percent. Tourism and trade activities maintained positive momentum, and major economic indicators remained stable.
State budget revenue reached nearly VNĐ402 trillion during the first five months, achieving 50 percent of the annual target and rising 24.3 percent compared to the same period last year. Foreign direct investment surpassed US$6.6 billion, accounting for around 60 percent of the annual target, while public investment disbursement reached 16.9 percent.
The city has also made notable progress in administrative reform, simplifying 570 procedures, reducing processing times by 39.18 percent, and lowering compliance costs by 22.49 percent.
Authorities reported strong implementation of Resolution 57, helping strengthen the city’s innovation-driven growth model. Hồ Chí Minh City currently ranks second nationwide in the Provincial Innovation Index and remains home to Việt Nam’s largest innovation and startup ecosystem.
Progress has also been recorded in resolving obstacles related to investment procedures, land use, and urban planning, contributing to faster project implementation and improved housing supply. Meanwhile, advancements in healthcare, education, culture, and public security have continued, with law enforcement agencies achieving significant successes in crime prevention and ensuring a safe environment for residents and international visitors.
Prime Minister Hưng concluded by reaffirming Hồ Chí Minh City’s pivotal role in the nation’s future economic development, urging local authorities to capitalize on new opportunities, strengthen regional connectivity, and transform policy advantages into tangible growth outcomes.
