Ho Chi Minh City accelerates green transition after expanding administrative boundaries

Nguyen Loc Ha, vice chairman of the Ho Chi Minh City People's Committee, emphasized this priority at the Ho Chi Minh City–Hyogo Economic Forum 2025, held on August 5. 

The event was co-hosted by the Ho Chi Minh City Investment and Trade Promotion Center and Japan's Hyogo Prefectural Government under the theme "Trends in Green and Digital Transition: For the Goal of Sustainable Development."

On July 1, Ho Chi Minh City officially merged administrative boundaries with Binh Duong Province and Ba Ria-Vung Tau. 

This move significantly increased its urban area, total population, and development capacity.

While the expansion brings challenges in governance, it also creates opportunities to restructure the city's growth model around sustainability and innovation.

Clean energy and green economy

"Green and digital transitions are no longer optional for major cities. They are now essential, especially in the context of climate change and shifting global supply chains," Ha said.

Pham Binh An, deputy director of the Ho Chi Minh City Institute for Development Studies, identified six sectors for transformation: energy, industry, transportation, urban infrastructure, trade and services, and agriculture.

A key direction is building the expanded Ho Chi Minh City into a national center for clean energy.

Plans include developing offshore wind power in Ba Ria-Vung Tau, expanding solar and waste-to-energy projects, and converting industrial parks into eco-industrial zones to reduce emissions.

Among these efforts, the "For a Green Can Gio" initiative is positioned as a flagship project. The goal is to reach net-zero emissions within five years.

Located about 50 to 60 kilometers from the city center, Can Gio is known for its coastal environment and mangrove forests.

Planned measures for Can Gio include expanding green transportation, increasing use of renewable energy, creating "green villages," and reducing plastic waste.

High-tech ecosystem

Alongside green initiatives, Ho Chi Minh City is also pushing for digital transformation to support its vision of a smart and sustainable metropolis.

According to Vo Minh Thanh, deputy director of the Department of Science and Technology, 96 percent of city residents now use smartphones, and fiber-optic infrastructure extends to the commune level.

This lays the groundwork for stronger digital integration across all sectors.

The city aims to increase the digital economy's contribution to gross regional domestic product to 25 percent by 2025 and 40 percent by 2030. 

To support this, it is building a high-tech ecosystem anchored by the Quang Trung Software City network. Major corporations like FPT, Samsung, and Intel are already involved.

Following the boundary expansion, Ho Chi Minh City has gained strategic value in the eyes of international investors.

Ono Masuo, Consul General of Japan in Ho Chi Minh City, said the city is a key destination for Japanese businesses, including those from Hyogo Prefecture.

Kobe Airport's recent upgrade to international status is expected to support direct charter flights to Vietnam, fostering cooperation in investment, education, human resources, and cultural exchange.

City leaders expressed their support for increased collaboration with Hyogo's business community, inviting them to join the local innovation ecosystem and explore opportunities in high-tech industry, smart city development, and workforce training.