HCM CITY — HCM City needs to position itself as an attractive destination for entrepreneurs to live and contribute, a scientific seminar highlighted on 23 December.

The event, titled "A New Era, the Era of Nation on the Rise – Challenges for HCM City and the Southeast Region," was organised by the Advisory Council for the implementation of Resolution No. 98 and the HCM City Institute for Development Studies.

Dr Nguyễn Tú Anh, director of the Centre for Information, Analysis, and Economic Forecasting under the Party Central Committee's Economic Commission, noted that countries often fell into the "middle-income trap" when they failed to retain entrepreneurial talent, leading to a drain in wealth and intellectual capital.

To overcome this, he stressed the need for the city to become a desirable and equitable place to live, encouraging entrepreneurs to remain committed.

"This is Việt Nam’s moment to achieve rapid, sustainable growth and enhance its global standing."

"As the nation enters an investment-driven phase, the focus must shift to scaling investments and improving efficiency to attract capital," he said.

“The city must streamline its administrative structure, attract capable, dedicated individuals, and create incentive mechanisms that allow civil servants to confidently contribute.”

He also emphasised the need for digitalisation in governance, improving decision-making quality, reducing processing times, and standardising work processes using the "five clears" framework – clear responsibility, task, authority, timeline, and result – set out by Prime Minister Phạm Minh Chính.

“In the long term the city needs to prioritise digital infrastructure, establishing itself as a leader in this area alongside the development of extensive transportation and connectivity networks.”

Beyond roads, seaports and metro systems, the city should focus on high-value service industries such as R&D, education, healthcare, arts, tourism, and commercial hubs, he added.

The city must position itself as a national hub, not just a regional centre, playing a pivotal role in inter-regional connectivity instead of focusing solely on intra-regional links, he said.

Avoiding the middle-income trap

Prof. Dr Trần Ngọc Anh of Indiana University in the US highlighted Việt Nam's impressive transformation over the past 40 years from a poor nation to one achieving rapid economic growth, but also cautioned against complacency, warning of the risk of falling into the middle-income trap.

“Việt Nam, and HCM City in particular, need to improve public governance – transitioning to a ‘launchpad’ that allows the country to escape this trap.”

The city must have a workforce that possesses three key qualities – capability, motivation and a supportive environment – he said.

“In other words, officials must want to work, be able to work, and be empowered to work. The city must make breakthroughs in these three areas during the next term.”

He proposed raising salaries to ensure civil servants could lead a decent life, particularly for those in critical sectors, alongside establishing a fair and transparent evaluation system.

He also called for a creative, supportive work environment with measures to protect and encourage innovation, fostering trust among officials.

Strategic Breakthroughs

Assoc. Prof. Dr Trần Hoàng Ngân, assistant to the secretary of the municipal Party Committee, outlined three strategic priorities for the city's advancement: institutional reform, infrastructure development and nurturing high-quality human resources.

“These efforts are bolstered by three accelerators: science, technology, and innovation; digital transformation; and high-quality services.”

He highlighted the importance of a "Special Urban Law" tailored to HCM City's unique economic scale and advocated for prioritising green transitions, cultural and tourism promotion, and the development of high-quality human capital.

Prof. Dr Thoại Nam of the HCM City University of Technology stressed the importance of attracting investment, especially from major global corporations, to sustain growth.

The rising demand for mega-scale data centres presented both opportunities and challenges, he pointed out.

While many countries had established medium- and small-scale facilities, global corporations now sought destinations for large-scale operations, he said.

"The city must implement policies supporting land use, clean energy and computational infrastructure to attract these investments."

HCM City has already advanced in clean energy, including solar, wind and tidal solutions, and is exploring offshore wind energy in Cần Giờ District.

Efforts are also underway to install international fibre optic cables in Cần Giờ.

These initiatives aim to establish the city as a digital leader while laying the groundwork for attracting mega data centre investments. — VNS