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Industrial repositioning in Ho Chi Minh City - Lesson 2: Finding the core strategy
14/06/2023
There are five core task groups that Ho Chi Minh City needs to implement to reposition the industry and increase its contribution to the national economy.

In the context of increasingly limited land fund, technology gradually becoming obsolete because most of since the 1980s, the development model is outdated…, the position and contribution of industry in HCMC has begun to decline. for several years. The repositioning of the industry is very urgent but requires a methodical, specific strategy and long-term vision.

Increase smart production
Talking to Ho Chi Minh City Law, Dr. Truong Minh Huy Vu, Deputy Director of the Institute for Development Studies of Ho Chi Minh City, said that the re-orientation of the industry should be based on five pillars.

Tái định vị công nghiệp TP.HCM - Bài 2: Đi tìm chiến lược cốt lõi  ảnh 1

A corner of Ho Chi Minh City Hi-Tech Park. Photo: HOANG GIANG

Firstly, it must aim for high-tech products and smart production models. Second, focus on regional connectivity, ie connectivity and reciprocity between Ho Chi Minh City and other provinces and cities of other countries, even with provinces and cities of regional countries. Third, it is impossible to reposition the industry without relying on research and development (R&D). After that, the city focused more on training and human resource development. Finally, it is necessary to aim at promoting the development of the circular economy - green economy - digital economy.
Explaining these pillars, Mr. Vu said that the city can develop high-tech products and smart production models based on existing resources and platforms, especially the high-tech park (SHTP). , industrial parks, export processing zones (such as Tan Thuan Export Processing Zone, Tan Binh, Cat Lai, Hiep Phuoc Industrial Parks). The city needs to prioritize electronics, semiconductor chip production, biological industry, manufacturing robots, smart devices, nano systems; software production, information technology services. In which, it is necessary to soon build and complete the specialized industrial park(s) in the field of information technology.

At the same time, Ho Chi Minh City also needs to expand and attract new investment projects such as areas established but not yet implemented (eg Le Minh Xuan 2, Le Minh Xuan expansion, Phong Phu, Northwest Cu Cu). Expansion spending, Vinh Loc expansion) and established projects (eg Vinh Loc 3, Hiep Phuoc 3)…
Assoc. Prof. Dr. Nguyen Phuong Thao, Director of the Center for Infectious Diseases Research (National University of Ho Chi Minh City), proposed the formation of a biomedical and pharmaceutical urban area, operating in the form of public-private partnership (PPP). , led by both the private and public sectors. Ms. Thao affirmed that Ho Chi Minh City is fully qualified to do this. In the face of increasing population aging trend, limited domestic drug supply capacity, the development of biomedical urban areas and domestic medical supply chain is extremely important.

The nucleus in the region link
The second pillar is promoting regional linkages and building regional industrial clusters. It is necessary to imagine that Ho Chi Minh City is not only a center of high-tech industry and innovation, providing commercial-financial, medical-educational services, but also a center of supporting industries. Meanwhile, the surrounding provinces and cities will be satellite cities with a focus on their own strong industrial clusters.
MSc Nguyen Manh Linh, Research Institute of Strategy and Policy of Industry and Trade (Ministry of Industry and Trade), suggested that the city should develop industrial clusters, expand value chains and supply chains in key industries with the whole region and between HCMC and other regions, in which HCMC plays the core role. On the one hand, this helps to capitalize on the strengths of the provinces, and at the same time enhances the role of HCMC in the value chain and in supporting the development of linked cities. On the other hand, regional linkage also helps to connect and spread high-tech development, thereby raising the development level of the whole Southeast region.
Sharing this view, General Director of Roland Berger Vietnam, Deputy General Director of Roland Berger Southeast Asia Bui Dao Thai Truong also emphasized the role of Ho Chi Minh City in the industrial structure of the whole region and country. The industrial development of the city needs to take advantage of the economic development belts of the whole region to achieve long-term and sustainable effects.
Mr. Stephen Higgins, General Director of Cushman & Wakefield Company, also recommended that in the coming period, Ho Chi Minh City needs to focus on logistics activities and supporting industries, because Vietnam still has room to develop the port system. The sea, which is a common point of developed cities in the world such as Singapore, Dubai, Shanghai... In the same opinion, Assoc. Prof. Dr. Lai Quoc Dat, University of Science and Technology (HCMC National University), suggested With the minimum group of processed products, the city should only invest in technology development and transfer it to other localities. The city should only focus on investing in preservation infrastructure, deep-processed products and high-value-added products with export orientation.

Promote R&D and high-quality human resources
The third task is R&D activities, that is, promoting scientific and technological research and development, innovation in industrial production, making science technology and innovation really become the main driving force. for rapid, sustainable and inclusive industrial development.
Regarding solutions, MSc. Nguyen Manh Linh suggested that HCMC needs to (i) research and issue breakthrough policies to encourage businesses to invest strongly in innovation, absorption and mastery of technology, especially core technologies, source technologies, digital technologies; (ii) forming an innovation zone centered on the High-Tech Park of Ho Chi Minh City, and (iii) giving priority to the development of technology incubators and business incubators in the fields of high technology and innovation. creative new.
From a business perspective, Mr. Pham Van Tai, General Director of Truong Hai THACO, also made three recommendations to promote R&D activities. First, there should be “leaders” in each industry to lead the change. In addition, new incentives and support policies from the central government and HCMC government are needed to facilitate change. Finally, it is necessary to establish an industrial technical support center.

As for the fourth task group - human resource development, Dr. Truong Minh Huy Vu said that the city needs to renew policies and create a favorable environment for training and developing highly qualified human resources to serve the needs of the community. industries and centers of research, development and innovation. Accordingly, Ho Chi Minh City needs to come up with mechanisms and policies to train experts and scientists working in research, development and innovation centers; study the mechanisms of socialization and improve the training quality of general education institutions, universities, vocational training institutions, research institutes...
It is important to find ways to form a network of connections and information exchange between the demand side and the labor supply side; particularly among labor training institutions, labor research agencies and enterprises, mass organizations and organizations wishing to recruit workers, especially FDI enterprises.

Circular economy - green economy - digital economy
The fifth task in the repositioning of HCMC's industry is to promote the circular economy - green economy - digital economy. Regarding the circular economy, Dr. Truong Thi Ai Nhi, Institute of Circular Economy Development (ICED), Vietnam National University, Ho Chi Minh City, said that the city has many advantages in terms of a network of industrial parks, which can participate in the circular economy. Learn lessons from other countries, such as Germany's ProgRess resource efficiency program.
Meanwhile, according to Assoc. Prof. Dr. Phan Thanh Binh, former member of the National Assembly Standing Committee and former Chairman of the National Assembly's Committee on Culture and Education, green economic transformation is a strategic goal that Ho Chi Minh City has achieved. Ho Chi Minh City needs to do to adapt and minimize the impact of climate change; fulfilled Vietnam's commitment during the 26th United Nations Conference on Climate Change (COP26) to reduce CO2 emissions by 43.5% by 2030, moving towards the goal of becoming CO2 neutral by 2050. Green economy also creates a driving force for fast and sustainable growth in the future.

ĐẠI THẮNG
According to Ho Chi Minh City Law Newspaper
 

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