Article 3: Ho Chi Minh City’s Industry: Seeking Momentum in a New Phase

Recovery: Positive Signs, but Still Insufficient

In 2024, Ho Chi Minh City’s industrial sector recorded a 7.26% growth in added value compared to the previous year. However, this growth remains below pre-COVID-19 levels, reflecting ongoing difficulties in regaining its previous trajectory.

Key industries such as pharmaceuticals and electronics have shown clearer signs of recovery compared to others. Notably, the pharmaceutical sector has achieved stable production growth, emerging as a bright spot in the City’s industrial landscape.

Meanwhile, traditional industries, including textiles, garments, and leather, continue to contract in production volume due to the global shift away from labor-intensive sectors. Mechanical engineering and food processing also face challenges from high input costs, leaving businesses in these fields reluctant to invest heavily in production innovation.

Technology Innovation and the Workforce Challenge

A key factor influencing the speed of recovery and development in Ho Chi Minh City’s industrial sector is technological innovation. However, local businesses face difficulties in accessing capital to invest in modern technology.

The primary challenges stem from high production costs, particularly labor costs, while productivity remains insufficient to offset these expenses. Additionally, a shortage of skilled labor poses a significant obstacle. Most workers returning to the City after the pandemic are untrained, complicating efforts to implement advanced technologies.

Restructuring and Long-Term Strategies

Ho Chi Minh City’s industrial sector requires a comprehensive restructuring strategy, focusing on areas with high development potential and strong competitiveness.

The City should prioritize high-tech industries such as electronics, pharmaceuticals, and precision engineering. These sectors not only offer high value-added potential but also align with global trends in green and digital manufacturing.

Digital Transformation: Accelerating digital transformation in manufacturing is another critical solution. Businesses should adopt technologies such as automation, artificial intelligence, and big data to enhance efficiency and product quality.

Conclusion

Ho Chi Minh City’s industrial sector faces significant opportunities for transformation and breakthroughs. However, achieving these goals requires synchronized policies, investments in industrial infrastructure, and improvements in workforce quality.

By fully leveraging its existing potential, the City’s industrial sector can not only recover but also emerge as a high-tech industrial hub for the nation, elevating Ho Chi Minh City to new heights in the global competitive landscape.

By Van Tam