Industrial transformation marks the shift from traditional farming to a modern, innovation-driven economy, reshaping nations like Vietnam, with Ho Chi Minh City at the forefront.
Vietnam’s path to modern industrial development is at a crucial turning point, especially in dynamic urban centres like Ho Chi Minh City. Drawing on comparative insights from Australia, this article explores how Vietnam can pivot from traditional, labour-intensive industries to a resilient, technology-driven economy.
This policy brief is a condensed version of a paper originally presented by the late Saskia Loer Hansen, Deputy Vice Chancellor, International and Engagement, RMIT University at the Ho Chi Minh City Economic Forum in 2024. This policy brief highlights actionable strategies to attract global resources and talent to support Vietnam’s next phase of transformation, honouring Saskia’s legacy of visionary leadership and lasting impact.
Key takeaways:
- Ho Chi Minh City’s industrial transformation is reshaping Vietnam’s growth trajectory, driven by innovation, technology, and expanded global trade.
- To remain competitive, HCMC must act swiftly, navigating challenges including automation, climate risk, and rising global competition, especially in traditional sectors like textiles and footwear.
- Australia’s experience offers a valuable reference point, demonstrating the importance of innovation policy, targeted investment, and strong education-industry linkages to drive sustainable economic transformation
- Global talent attraction and FDI strategies, such as Australia’s National Innovation and Science Agenda and targeted tax incentives, can guide Vietnam’s next steps.
- The policy brief proposes five strategic priorities for HCMC, including adopting a selective FDI strategy, strengthening R&D and talent pipelines, leveraging targeted incentives for green tech, enabling smart city development, and using mechanisms like Resolution 98 for faster reform implementation.
- The path forward calls for bold, forward-thinking leadership. With time-sensitive targets, HCMC must seize this moment to evolve into a global innovation hub -backed by global experience, resilient policies, and inclusive growth.
