Economy

Ho Chi Minh city at night

Ho Chi Minh City is the economic center of Vietnam and accounts for a large proportion of the economy of Vietnam. Although the city takes up just 0.6% of the country's land area, it contains 8.34% of the population of Vietnam, 20.2% of its GDP, 27.9% of industrial output and 34.9% of the FDI projects in the country in 2005. In 2005, the city had 4,344,000 laborers, of whom 130,000 are over the labor age norm (in Vietnam, 60 for male and 55 for female workers). In 2009, GDP per capita reached $2,800, compared to the country’s average level of $1,042.

Business area of the city Ho Chi Minh City Downtown

In 2007, the city's GDP was estimated at $14.3 billion, or about $2,180 per capita, up 12.6 percent from 2006 and accounting for 20% of the country's GDP. The GDP adjusted to Purchasing Power Parity (PPP) reached $71.5 billion, or about $10,870 per capita (approximately three times higher than the country's average). The city's Industrial Product Value was $6.4 billion, equivalent to 30% of the value of the entire nation. Export – Import Turnover through HCMC ports accounted for $36 billion, or 40% of the national total, of which export revenue reached $18.3 billion (40% of Vietnam's total export revenues). In 2007, Ho Chi Minh City's contribution to the annual revenues in the national budget increased by 30 percent, accounting for about 20.5 percent of total revenues. The consumption demand of Ho Chi Minh City is higher than other Vietnamese provinces and municipalities and 1.5 times higher than that of Hanoi. As of June 2006, the city has been home to three export processing zones and twelve industrial parks. Ho Chi Minh City is the leading receiver of foreign direct investment in Vietnam, with 2,530 FDI projects worth $16.6 billion at the end of 2007. In 2007, the city received over 400 FDI projects worth $3 billion.

In 2008, it attracted $8.5 billion in FDI. In 2010, the city's GDP was estimated at $20.902 billion, or about $2,800 per capita, up 11.8 percent from 2009.

By the end of 2012, the city's GDP was estimated around $28,595 billion, or about $3,700 per capita, up 9.2 percent from 2011. Total trade (export and import) reached $47.7 billion, with export at $21.57 billion and import $26.14 billion.

Sectors Saigon Port with many cargo ships

The economy of Ho Chi Minh City consists of industries ranging from mining, seafood processing, agriculture, and construction, to tourism, finance, industry and trade. The state-owned sector makes up 33.3% of the economy, the private sector 4.6%, and the remainder in foreign investment. Concerning its economic structure, the service sector accounts for 51.1%, industry and construction account for 47.7% and forestry, agriculture and others make up just 1.2%.

Hi-Tech Park, District 9.

Quang Trung Software Park is a software park situated in District 12. The park is approximately 15 km from downtown Ho Chi Minh City and hosts software enterprises as well as dot.com companies. The park also includes a software training school. Dot.com investors here are supplied with other facilities and services such as residences and high-speed access to the internet as well as favorable taxation. Together with the hi-tech park in District 9, and the 32 ha. software park inside Tan Thuan Export Processing Zone in District 7 of the city, Ho Chi Minh City aims to become an important hi-tech city in the country and the South-East Asia region. This park helps the city in particular and Vietnam in general to become an outsourcing location for other enterprises in developed countries, as India has done. Some 300,000 businesses, including many large enterprises, are involved in high-tech, electronic, processing and light industries, and also in construction, building materials and agricultural products. Additionally, crude oil is a popular economic base in the city. Investors are still pouring money into the city. Total local private investment was 160,000,000,000 dong (USD $10,000,000,000) with 18,500 newly founded companies. Investment trends to high technology, services and real estate projects.

As of June 2006, the city had three export processing zones and twelve industrial parks, in addition to Quang Trung Software Park and Ho Chi Minh City hi-tech park. Intel has invested about 1 billion dollars in a factory in the city. More than fifty banks with hundreds of branches and about 20 insurance companies are also located inside the city. The Stock Exchange, the first stock exchange in Vietnam, was opened in 2001. There are 171 medium and large-scale markets as well as several supermarket chains, shopping malls, and fashion and beauty centers.

Some of the larger shopping malls and plazas opened recently include:

Diamond Plaza Bitexco Financial Tower – the highest tower in HCM City Zen Plaza (1995) – 54–56 Nguyen Trai St, District 1 Saigon Centre (1997) – 65 Le Loi Blvd, Ben Nghe Ward, District 1 Tax Plaza (1998) – 135 Nguyen Hue Blvd, Ben Nghe Ward, District 1 Diamond Plaza (1999) – 34 Le Duan Blvd, District 1 Big C (2002) – Multiple locations (District 10, Binh Tan District, Go Vap District, Phu Nhuan District, and Tan Phu District) METRO Cash & Carry – Multiple locations (District 2, District 6, and District 12) Crescent Mall Lotte Mart – District 7 and District 11 Parkson (2005–2009) – Multiple locations (District 1, District 5, District 7, District 11, and Tan Binh District) Saigon Paragon (2009) – 3 Nguyen Luong Bang St, Tan Phu Ward, District 7 NowZone (2009) – 235 Nguyen Van Cu Ave, Nguyen Cu Trinh Ward, District 1 Kumho Asiana Plaza (2010) – 39 Le Duan Blvd, Ben Nghe Ward, District 1 Vincom Centre (2010) – 70–72 Le Thanh Ton St, Ben Nghe Ward, District 1 Bitexco Financial Tower (2010) – Hẻm số 2 Hàm Nghi Blvd, Ben Nghe Ward, District 1

In 2007, three million foreign tourists, about 70% of the total number of tourists to Vietnam, visited the city. Total cargo transport to Ho Chi Minh City's ports reached 50.5   million metric tonnes, nearly one-third of the total for Vietnam.

New urban areas

With a population now of 7,382,287 (as of Census 2010 on 1 April 2010) (registered residents plus migrant workers as well as a metropolitan population of 10 million), Ho Chi Minh City needs increased public infrastructure. To this end, the city and central governments have embarked on an effort to develop new urban centers. The two most prominent projects are the Thu Thiem city center in District 2 and the Phu My Hung Urban Area, a new city center in District 7 (as part of the Saigon South project) where various international schools such as Saigon South International School and Australia's Royal Melbourne Institute of Technology. In December 2007, Phu My Hung's new City Center completed the 17.8   km 10–14 lane wide Nguyen Van Linh Boulevard linking the Saigon port areas, Tan Thuan Export Processing Zone to the National Highway 1 and the Mekong Delta area. In November 2008, a brand new trade center, Saigon Exhibition and Convention Center, also opened its doors. Other projects include Grandview, Waterfront, Sky Garden, Riverside and Phu Gia 99. Phu My Hung's new City Center received the first Model New City Award from the Vietnamese Ministry of Construction.