Ho Chi Minh City (HCMC) 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.
Located in the south of Vietnam, HCMC has a population of around 10 million people. 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.
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.
The next hi-tech city
Quang Trung Software Park is a software park situated in District 12. The park is approximately 15km 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.
As of June 2006, the city had three export processing zones and twelve industrial parks. 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.