Ho Chi Minh City wants to grow, must have many brave businesses

The leaders of the Department of Industry and Trade affirmed that completing the planning of a new development space for Ho Chi Minh City after the merger is a long-term task, requiring the support and advice from businesses, experts and the press to help Ho Chi Minh City make a breakthrough.

Mr. Trinh Tien Dung - Chairman of the Board of Directors of Dai Dung Construction and Trading Mechanical Joint Stock Company - believes that Vietnamese enterprises can completely M&A international enterprises - Photo: QUANG DINH

The seminar "Proposing strategies for industrial and commercial development in Ho Chi Minh City" was held on the afternoon of September 5, with the theme "Industrial development in a new space", following the online forum, with the participation of many senior experts and large enterprises.

Need to create many leading enterprises to lead the economy

Mr. Trinh Tien Dung - Chairman of the Board of Directors of Dai Dung Construction and Trading Mechanical Joint Stock Company - resolutely said: businesses and the Government need to change their thinking, change their approach, change their strategy and change their way of doing things to have truly large businesses.

In fact, Vietnamese enterprises are completely capable of taking on large projects, but the problem is that they only take on the role of subcontractors, so they cannot prove their capabilities. "So we have to change our approach. We have to consider M&A with companies that have experience, have designed, have done... and are recognized to reap opportunities, infrastructure and know-how," said Mr. Dung.

Citing an example from China, this country, after attracting foreign investors, has required technology transfer, as well as increased localization rate in products. With such localization requirements, domestic enterprises are nurtured and developed.

Next, it is necessary to focus on capable and competent enterprises to receive support in terms of land funds and state investment capital, because "not everyone can do big things". "It is necessary to create many leading enterprises, creating many driving forces to lead the economy", Mr. Dung said.

Mr. Dam Quan Truc, representative of Dai Quang Minh Company, affirmed that domestic private enterprises are ready to participate in major national projects - Photo: QUANG DINH

Mr. Dam Quan Truc, representative of Dai Quang Minh Company, said that Thaco is currently a multi-industry corporation, successful from the model in Chu Lai (Da Nang). More than anyone else, the enterprise recognizes the great potential of the new Ho Chi Minh City model, especially in the field of traffic infrastructure.

For example, the current and future metro systems could be up to thousands of kilometers when adding Binh Duong and Ba Ria - Vung Tau. Therefore, investing in the construction of a metro line requires huge capital. "We boldly propose to borrow capital with reasonable incentives when participating in implementing infrastructure development projects in Ho Chi Minh City," said Mr. Truc.

Acquiring foreign businesses to quickly enter the international supply chain

Dr. Pham Van Dai, Fulbright School of Public Policy and Management, said that if we cannot build strong domestic enterprises on the scale of Ho Chi Minh City in particular and Vietnam in general, it will be difficult to develop.

However, when building a domestic enterprise, Mr. Dai said that the biggest challenge is not being able to participate in the international supply chain.

"We went to Taiwan and asked chip-making businesses in Vietnam how to receive orders from Taiwan. They replied that even if Vietnamese businesses work for 0 VND now, they still won't accept. Because your 0 VND doesn't mean our 0 VND. We have to send people to supervise, control quality, and ensure there are no mistakes... That means it's very difficult for Vietnamese businesses to participate in their supply chain," Mr. Dai gave an example in the semiconductor industry.

From there, Mr. Dai proposed a way to do mergers and acquisitions (M&A). "We can directly acquire businesses that are in the supply chain. If it is difficult to buy F1 businesses in the supply chain, we can buy F2 and F3 businesses. We can control that business and gradually set foot in their supply chain. Then expand. That is a way that many successful countries have done," this expert explained.

An example cited is the case of TSMC (Taiwan). From the beginning, they were funded to buy chip foundries from their competitors. And gradually they bought them all. Until there were only two or three competitors left and they have developed to this day. Specifically, the state can have policies to support domestic enterprises in terms of capital to M&A with foreign enterprises or enterprises in the supply chain.

Especially now, when many businesses started in the 60s and 70s in Taiwan and Korea, the first generation has reached retirement age but the second generation does not want to take over.

"There are many such businesses existing and that is an opportunity for Vietnamese businesses to do M&A and enter this supply chain," Mr. Dai suggested.

Mr. Nguyen Xuan Tao, head of the energy department of Kumho Tire Vietnam Co., Ltd., said that after the merger, administrative procedure reform also needs to have a breakthrough - Photo: QUANG DINH

Mr. Nguyen Xuan Tao, head of the energy department of Kumho Tire Vietnam Co., Ltd., said that industrial development in the new Ho Chi Minh City space creates many opportunities, but also comes with many challenges for FDI enterprises, including issues related to infrastructure or traffic infrastructure in particular.

According to Mr. Tao, the concentration of industrial production in the new Ho Chi Minh City in Binh Duong also needs to consider energy infrastructure, when most of the 110kV high-voltage stations are already full. It is necessary to consider the development and expansion of electricity infrastructure. In addition, foreign enterprises after the merger of Ho Chi Minh City also expect improvements in administrative procedures. Procedures need to be more open and have more support channels for enterprises.

New planning connects infrastructure, labor and industrial chains

Mr. Ha Van Ut, Deputy Director of the Department of Industry and Trade of Ho Chi Minh City, affirmed that industry and enterprises are the two engines that help Ho Chi Minh City make a breakthrough - Photo: QUANG DINH

Mr. Ha Van Ut, Deputy Director of the Department of Industry and Trade of Ho Chi Minh City, on behalf of the leaders of the Department of Industry and Trade, thanked businesses and experts for their many contributions to state management.

"With the new space, we will have a new approach and a new model. We will recalculate the planning, what are the advantages of each area, so that when arranging and shaping the space, we can develop the advantages of that area," said the department leader.

Specifically, the hot areas that need to be focused on are infrastructure, transport infrastructure not only roads, but also waterways and railways. There are currently proposals to build railway lines from neighboring provinces connecting to Ho Chi Minh City.

With high-quality labor, the city plans to associate high-quality labor with suitable occupations, giving priority to Ho Chi Minh City. As for unskilled labor, it will be given to suitable areas. The human resource training model should consider promoting the connection between businesses and schools.

Establishing raw material centers and chains. Specifically, establishing specialized and supporting industrial zones or clusters so that businesses can support each other and take advantage of infrastructure.

The city has identified this as a long-term task, requiring support and advice from all parties, experts, and the companionship of Tuoi Tre newspaper. "All these opinions will be gathered to report to the leaders of Ho Chi Minh City. We all have a responsibility to each other to develop Ho Chi Minh City," affirmed Mr. Ha Van Ut.

Tuoi Tre newspaper leaders said that on September 23, at Rex Hotel (HCMC), the organizing committee will hold a workshop and summarize the forum "Advice for industrial and commercial development in HCMC". Through the program, the opinions and suggestions of businesses and experts over the past time will be gathered to be presented to state management agencies.

Binh Duong does not have a single meter of highway yet.

Mr. Nguyen Liem, General Director of Lam Viet Company Limited, said the connection between industrial parks needs to be tighter - Photo: QUANG DINH

Mr. Nguyen Liem, General Director of Lam Viet Company Limited, stated that Binh Duong is currently the area with the strongest production potential among the three localities forming the new Ho Chi Minh City.

With statistics showing that Binh Duong's wood industry accounts for more than 50% of Vietnam's total wood and wood product export turnover in 2024, Mr. Liem affirmed that wood export is a great strength that needs to be facilitated in this locality.

Vietnam's wood industry is currently one of the most favorable industries, with available raw materials, self-sufficiency in packaging, and Binh Duong is confident that the entire wood industry supply chain is local.

"But Binh Duong does not have a single meter of highway," Mr. Liem said. He also emphasized the need for a railway connecting to Ho Chi Minh City. If there is one, logistics costs for the wood industry will be greatly reduced.

In addition, the wood industry also needs to be communicated with a more attractive and clear image, when many people do not yet understand what wood processing means. "We have to recruit human resources from abroad," Mr. Liem suggested.

The seminar “Proposing strategies for industrial and commercial development in Ho Chi Minh City” is a continuation of the online forum of the same name, organized by the Department of Industry and Trade of Ho Chi Minh City, Tuoi Tre newspaper, Ho Chi Minh City University of Economics and ISB International Training Institute.

Journalist Tran Xuan Toan, deputy editor-in-chief of Tuoi Tre newspaper, shared that after Ho Chi Minh City rearranged the new space including Binh Duong and Ba Ria - Vung Tau, Tuoi Tre newspaper continuously received many opinions and suggestions from domestic and international experts and businesses in the fields of industry, trade, logistics, etc.

Opinions are all hoping to improve the competitiveness of Ho Chi Minh City with cities of other countries in the region, not just domestically. In addition to being posted on the Tuoi Tre newspaper ecosystem, the data will also be included in the proposal sent to the Ho Chi Minh City Party Congress scheduled to take place in October 2025.

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Source: https://tuoitre.vn/tp-hcm-muon-lon-manh-phai-co-nhieu-doanh-nghiep-ban-linh-20250905203832306.htm