Expert sees Ho Chi Minh City as future ‘Silicon Valley’ of Southeast Asia

Under the national merger strategy, which took effect on July 1, new Ho Chi Minh City was formed by merging the city with Binh Duong and Ba Ria-Vung Tau Provinces.

Dr. Hoai underscored that old Ho Chi Minh City, former Binh Duong, and former Ba Ria-Vung Tau have strengths in these fields, making it easier for the new city to become the region’s ‘Silicon Valley.’

In particular, old Ho Chi Minh City serves as a financial, technological and innovation hub, while former Binh Duong functions as an advanced industrial center with numerous high-tech FDI enterprises.

Also, former Ba Ria-Vung Tau offers critical infrastructure through its deep-water seaports, facilitating connectivity and logistics.

“The integration of these industrial centers creates a mega economic zone with enormous potential to develop hi-tech industries and drive innovation-led growth,” Dr. Hoai noted.

The city now holds vast land reserves suitable for the development of hi-tech zones and strategic industries such as semiconductors, artificial intelligence (AI), aerospace, and unmanned aerial systems.

Over the past many years, old Ho Chi Minh City and former Binh Duong Province have consistently led the country in foreign investment attractions, especially in the hi-tech sector.

The city has maintained its top position in foreign capital inflows, backed by strong infrastructure, financial resources, and a robust industrial base.

Ho Chi Minh City’s other advantage is its large population.

It is home to a highly skilled labor force and thousands of engineers, specialists, and researchers.

With hundreds of universities and vocational institutions, the city has long been Vietnam’s leading hub for training high-quality human capital.

Ho Chi Minh City also enjoys a large domestic market, open development policies, and a range of special mechanisms and incentives aimed at supporting innovation and investment.

These factors position the city as a strong candidate for becoming a regional tech powerhouse.

Challenges ahead: infrastructure, energy, talent

Despite its strengths, Dr. Hoai acknowledged that the city must address several pressing challenges to fulfill its Silicon Valley ambitions.

Among these obstacles are traffic infrastructure, shortage of homes, and sky-high land prices.

To drive up the hi-tech sector, the city should perfect its energy infrastructure system, he said.

Hi-tech and strategic industries, particularly semiconductors, AI, and data centers, require a stable and clean energy supply.

“To become a leader in strategic technologies, the city must prioritize investment in clean and high-capacity power sources to meet production demands,” he emphasized.

In addition, the city faces chronic congestion, especially on roads connecting ports, while its public transit system remains underdeveloped.

Dr. Hoai suggested accelerating the construction of ring roads, expressways, and multimodal connections linking road, rail, air, and sea routes.

Notable priorities include new road and rail links between the under-construction Long Thanh International Airport in neighboring Dong Nai Province and Tan Son Nhat International Airport, and improved access from ports to central Ho Chi Minh City and former Binh Duong.

To lead in advanced technologies, the city must also focus on human capital.

He emphasized the need for policies that attract overseas Vietnamese professionals and international experts, particularly in engineering and emerging tech sectors.

Finally, Dr. Hoai advocated for the establishment of dedicated innovation centers and R&D hubs focused on priority sectors.

These centers should be supported by competitive investment incentives to attract global firms and startups in cutting-edge industries such as AI, semiconductors, aerospace, and drone manufacturing.