Ho Chi Minh City undergoes economic restructuring via regional merger

Ho Chi Minh City is undergoing significant economic restructuring following a merger with Binh Duong and Ba Ria-Vung Tau. This integration aims to create a multipolar economic structure by leveraging the specific strengths of each region: Ho Chi Minh City focuses on finance, services, and R&D; Binh Duong on manufacturing; and Ba Ria-Vung Tau on energy, logistics, and maritime ports.

Experts suggest this merger could foster a complete value chain from innovation to export. However, the success of this expansion depends on whether it can effectively increase productivity and value-added rather than just grouping resources. The region is shifting toward digital transformation, green transitions, and the knowledge economy.

In tandem with this structural change, the city is also evolving its MICE (meetings, incentives, conferences, and exhibitions) tourism sector. The goal is to move from a model of merely attracting visitors to one focused on comprehensive experiences to increase length of stay and economic spending. While Saigontourist has reported significant revenue from both domestic and foreign MICE groups, the sector still faces challenges such as traffic congestion, fluctuating airfares, and a lack of large-scale multifunctional exhibition centers.