Although Ho Chi Minh City has established cooperative mechanisms with neighbouring provinces and cities, coordination remains voluntary, lacking a strong regulatory body to address interregional issues.

A corner of Ho Chi Minh City.

As a result, each locality follows its own approach, leading to inconsistencies in infrastructure planning, investment attraction, and economic development.

A more effective regional coordination mechanism should be established, possibly in the form of a Regional Development Steering Committee or an authoritative organisation with decision-making power.

This body should not only serve as a connector but also have the authority to approve interregional infrastructure projects, allocate budgets, and resolve conflicts of interest between localities.

For instance, major interregional transportation projects such as Ring Road 3 or the Ho Chi Minh City-Moc Bai Expressway require the involvement of relevant provinces to ensure synchronised implementation.

Another crucial aspect is the need for a dedicated financial mechanism for regional development. The central government could consider establishing an infrastructure investment fund for the Southern key economic region, allowing localities to contribute and use funds flexibly.

This would address the current issue where each locality struggles to secure resources for its own projects, leading to unbalanced development.

With a shared fund, mobilising capital for large-scale projects such as interregional metro systems, seaports, logistics hubs, and key industrial zones would become more feasible.

From an institutional perspective, the central level could issue a resolution or a specific legal framework on regional linkage, clearly defining the responsibilities of each locality in interregional projects, benefit-sharing mechanisms, and financial obligations.

With clear regulatory requirements, provinces and cities within the region would have a collective responsibility, ensuring closer cooperation.

Another issue requiring the central level’s intervention is regional urban planning and land use.

Ho Chi Minh City is facing intense population pressure while neighbouring provinces such as Binh Duong, Dong Nai, and Long An have vast unused land that remains underutilised due to inadequate infrastructure connectivity.

A comprehensive regional master plan, positioning Ho Chi Minh City as the central hub with surrounding provinces as satellite cities, would lead to a more balanced distribution of population, labour, and businesses.

Additionally, the central level should facilitate Ho Chi Minh City in playing a central role in interregional investment promotion policies.

Instead of having each province individually seek investors, a unified mechanism could be established, with Ho Chi Minh City acting as the main gateway, enabling investors to access the entire region more efficiently.

While some investment cooperation models between Ho Chi Minh City and neighbouring localities have been implemented, they remain fragmented and lack a comprehensive strategy.

A well-planned, region-wide investment attraction strategy, combined with tailored incentive policies, would significantly enhance the appeal of the Southern key economic region to both domestic and international investors.

Merging provinces to expand development space: former deputy minister

Merging provinces and organising two-tier local administrations without the district-level one can generate positive results, particularly for the expansion of development space and further development vision, said former Deputy Minister of Home Affairs Dr Tran Anh Tuan.

PM urges global partners to support Vietnam's AI, semiconductor development

Prime Minister Pham Minh Chinh has called on international partners to help Vietnam advance its technological capabilities and transform its development trajectory, particularly in artificial intelligence (AI) and semiconductor.

Bac Giang province and FPT JSC ink cooperation agreement on development and investment research

BAC GIANG - The People's Committee of Bac Giang province (PPC) and FPT Joint Stock Company (FPT) on March 11 inked a Memorandum of Understanding on development cooperation and investment research.

Vietnam scales up eco-industrial parks to promote sustainable development

The eco-industrial park (EIP) model is emerging as a key driver of Vietnam’s industrial and economic development. This approach not only delivers economic benefits to businesses and communities but also plays a crucial role in environmental protection and enhancing workers' quality of life.

PM hails women's contributions to society, national development

According to the Prime Minister, Vietnam is one of the countries that has achieved the Millennium Development Goal on gender equality and women's empowerment ahead of schedule. In 2024, it ranked 72nd out of 146 countries in the global gender equality index. Notably, the proportion of female deputies in Vietnam’s 2021-2026 National Assembly stands at 30.26%, a high level compared to other countries in the Asia-Pacific region.

Vietnam needs clear strategy for private economic development: Party chief

Party General Secretary To Lam has stressed the need for a clear strategy to develop the private economic sector that is conformable with Vietnam's current economic development level as well as new geo-economic and geopolitical space, ensuring its strong adaptability, resilience and competitiveness.