Experts advise on HCM City's potential to become key service hub

At the conference held in HCM City on December 17. (Photo: VNA)

HCM City – Thanks to its distinctive business advantages, especially in boosting the growth of the service sector, Ho Chi Minh City has the potential to become a major service hub of the region, experts said at a conference in the city on December 17.

With a modern economic structure and a well-oriented transition, the value-added and technology-intensive service sectors have steadily grown, gradually making HCM City a hub for commerce, science, technology, and education in the region.

Over the past decade, the service sector has consistently accounted for over 60% of the city's gross regional domestic product (GRDP), solidifying its role as both a service centre and a growth engine for Vietnam’s service sector.

However, experts held that the growth of the city’s service sector has yet to match the position and potential of the city, while many issues need improvement.

Vice Chairman of the municipal People’s Committee Nguyen Van Dung said that many policies have been issued to encourage service development, particularly those that help the sector adapt to new demands. However, he pointed to the need for comprehensive research and assessment of the service sector, development trends, and identification of priority industries based on strengths and future prospects to realise sector goals. This will ensure a balanced and sustainable development both within the city and across the country.

Bui Dao Thai Truong, CEO of Roland Berger Consultants emphasised that lessons from leading service hubs such as Singapore, Shanghai (China), Dubai, and Bangkok can provide important strategies for Ho Chi Minh City. The city should identify and develop 3-5 key industries such as finance, technology, and logistics. A strong interconnection between these sectors will not only optimize resources but also increase value-added contributions to the economy, promoting sustainable and balanced development, he said.

Truong also pointed to the need to pay greater attention to human resources training and infrastructure improvement as well as establishing a free trade zone to draw more investment in the sector.

Economist Tran Du Lich said that in identifying high-end, modern service sectors with high added value, it is important to clarify the role of the government and local authorities in driving these industries forward, rather than relying solely on self-driven development and statistics. HCM City is pursuing green and digital transformation, so it is essential to determine which service industries should be prioritised, he asserted.

He advised the city to adopt stronger solutions and ensure inter-agency collaboration in developing the project, as relying on a single department will not achieve the goal of becoming the country and region’s major service hub with high-end, modern, and high-value-added services.

Some experts held that the city should focus on sectors with high value-added potential, including financial, banking, insurance services, information technology and communications, technology and innovation, education, and healthcare./.