Industry plays a vital role in Ho Chi Minh City’s economy but in recent years the sector has exhibited signs of slowing growth and reduced competitiveness, the Ho Chi Minh City Institute for Development Studies (HIDS) has reported.

It has therefore called for restructuring of the sector within the overall restructuring of national industrial production.

Figures reveal that industrial production’s contribution to the city’s gross regional domestic product (GRDP) fell from 22 per cent in 2010 to 18.1 per cent in 2022.

The southern economic hub aims to become a modern industrial city by 2030 and a city with advanced industrial production of the same level as other major cities in Southeast Asia and Asia by 2050.

To that end, it has targeted the proportion of industry in local GRDP reaching 18-20 per cent during the 2024-2025 period, in which the proportion of manufacturing and processing will be over 90 per cent and high-tech industrial products in these sectors at least 15 per cent.

HIDS Deputy Director Truong Minh Huy Vu said it is important to accurately identify the current situation and create breakthroughs in formulating policies for industrial development in Ho Chi Minh City.

“Concurrently, it is necessary to restructure the industrial sector to serve the city’s development planning in the 2021-2023 period with a vision towards 2050,” he added.