Bumpy ride: Customers at a cafe along the Saigon River in Ho Chi Minh City. Experts say the city’s industrial sector has become outdated, relying on resource-intensive and labour-heavy processes with low added value. — Bloomberg
HO CHI MINH CITY: Industrial production is supporting the steady growth of the south-east region, with Ho Chi Minh (HCM) City moving towards high-tech industries and Binh Duong expanding its role as a key industrial centre.
In the south-east region, local authorities are using various strategies to facilitate industrial development, concentrating on new technologies, green materials and energy, and sustainable growth.
The People’s Committee of HCM City said that the Industrial Production Index increased by 6.4% in the first eight months of 2024 compared to the same period last year, with the mining sector growing by 51.4%, manufacturing by 6.1%, and electricity production and distribution by 6.7%.
In the same period, the manufacturing sector’s consumption index increased by 9.7%.
Significant growth was seen in rubber and plastic products, which rose by 41.2%, wood processing and wood-based products jumped 34.9%, and chemical products increased 18.9%.
However, the contribution of industry has been steadily decreasing, now making up only 17.8% of the city’s gross regional domestic product, while the service sector accounts for 65.6%of the city’s economy.
Experts said that HCM City’s industrial sector has become outdated, relying on resource-intensive and labour-heavy processes with low added value.
Therefore, transitioning towards high-tech industries is seen as essential for the city’s ongoing development.
Nguyen Ngoc Hoa, chairman of the HCM City Business Association, said that industrial transformation will add significant value to the city, meeting both domestic and international demand.
This new direction will help HCM City avoid falling behind global standards and improve the quality of products for the local market.
In Binh Duong province, several industrial parks and multi-sector industrial clusters have been developed, with numerous large-scale supporting industry projects from international corporations such as Kolon (South Korea), Polytex Far Eastern (Taiwan), Tetra Pak (Singapore), Mitsubishi (Japan) and Lego (Denmark).
Binh Duong is now a key industrial centre in Vietnam, featuring 28 active industrial parks covering 7,000ha, with more than 93% of the space already leased.
Key areas like electronics, telecommunications, mechanics, and export manufacturing are crucial to the province’s economic development.
HCM City is actively pursuing several initiatives to ensure sustainable development. One such effort includes transforming five outdated export processing zones into eco-industrial parks, high-tech areas, or logistics areas.
The city is also encouraging innovative startups that focus on sustainability through competitions and projects.
Binh Duong province aims to become a centre for smart manufacturing, with widespread application of automation in production to enhance productivity, quality, and competitiveness.
According to its vision until 2030, the industrial and construction sectors will constitute 64% of the economy, with 87% of the workforce trained to meet the demands of the industrial sector.
Binh Duong is also taking steps to boost growth, including setting up the “Binh Duong innovation zone” project to promote digital transformation and improving industrial infrastructure alongside urban development.
These initiatives will attract greater foreign investment and improve the province’s competitiveness, positioning Binh Duong as a leading destination for global companies in industrial production, high technology, and industrial services. —Viet Nam News/ANN
