HCMC – Party General Secretary To Lam has outlined a new vision for Ho Chi Minh City (HCMC) to become an international megacity of Southeast Asia, following the merger of Binh Duong and Ba Ria-Vung Tau provinces into the southern city.
At a working session today, June 18, with leadership of the Party committees of HCMC, Binh Duong, and Ba Ria-Vung Tau, Party General Secretary To Lam said the merger would mark an unprecedented turning point in Vietnam’s urban development. The plan aims to form a leading hub for finance, industry, and seaport services.
The expanded HCMC would be a smart, green, and innovative metropolis, excelling not only in economic development but also in culture, the arts, sports, entertainment, and modern urban living. The city is expected to position itself as a global innovation center by 2045, with higher per capita income and regional and international position.
To enable this transformation, the General Secretary of the Party Central Committee called for a governance model beyond the provincial level, which is more flexible than current regional structures, capable of managing a three-pillar megacity. He urged the establishment of a transparent and efficient digital government to drive innovation and maintain public trust.
HCMC is also expected to overhaul its governance system with smart administration and comprehensive digital transformation, improving services for residents and businesses. Economic restructuring, knowledge-based growth, and enhanced global competitiveness were highlighted as key priorities.
One strategic goal is to develop an international financial center in Thu Thiem to attract global capital. The city will also create a network of smart urban areas connecting HCMC with Di An, Thuan An, Thu Dau Mot, Ben Cat, Phu My, and Ba Ria-Vung Tau.
Lam also suggested establishing an innovation corridor from Thu Duc City to major industrial, service, and port zones, and developing the Cai Mep–Thi Vai–Can Gio port cluster into a smart digital port system. High-end eco-tourism and wellness destinations are planned for Vung Tau and Can Gio, with a focus on sustainability.
The Party chief also stressed the need to build an ecosystem for science, technology, and innovation alongside a robust private sector, moving beyond slogans to concrete action. Development policies must ensure social equity, safety, and wellbeing.
HCMC seeks revenue retention for infrastructure
At the meeting, HCMC Deputy Party Secretary Nguyen Thanh Nghi proposed allowing the city to retain 100% of land-related revenue over the next five years to finance post-merger infrastructure.
Under the revised draft State Budget Law, HCMC would only keep 70-80% of revenue from land, a shift from the current full retention.
According to Tran Hoang Ngan, former head of the HCMC Institute for Development Studies, the expanded city will require major investments in transport infrastructure. The existing HCMC alone needs around VND1.1 quadrillion in public investment by 2030, with half of that expected from land use revenue. A 30% revenue cut would result in an annual shortfall of over VND33 trillion, affecting key projects such as metro lines and regional connectivity roads.
Prime Minister Pham Minh Chinh supported the proposal in principle, suggesting a compromise where 80% of land revenue remains with the city and 20% goes to the central State budget.
HCMC also called for a National Assembly resolution to establish the Thu Thiem international financial center and a special mechanism to attract strategic investors and support infrastructure, science, and digital transformation projects.
Meanwhile, Ba Ria–Vung Tau proposed piloting a special mechanism for Con Dao and setting up a free-trade zone linked to the Cai Mep Ha deepwater port.
Local authorities also requested support from the central Government for diverse transportation development, especially new urban rail lines such as the Suoi Tien–Binh Duong New City and HCMC–Thu Dau Mot–Binh Phuoc routes.
