From a southern trading hub to financial megacity

Ho Chi Minh City has, over the decades, emerged as the nation's economic engine. Mickaël Driol, CEO of Mekong Partners, offered insights into the city's next phase, a transition that will require both scale and depth of reform.

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As the financial ecosystem expands in Ho Chi Minh City, regulatory pressure will rise

(Le Toan)

To Chi Minh City's rise has been driven by its ability to convert early market liberalisation into rapid private sector expansion, faster than any other urban centre in Vietnam. The city absorbed capital at an unmatched pace thanks to higher risk tolerance, faster decision-making, and a strong entrepreneurial base.

By the mid-1990s, it was already capturing a disproportionate share of new businesses, foreign-backed projects, and service growth, a momentum that has sustained over time. Despite having less than 10 per cent of the population, the city consistently contributes around a quarter of GDP and nearly a third of fiscal revenues.

A key structural advantage lies in logistics and trade networks. Strong port and airport connectivity, combined with proximity to the southern industrial belt, enabled firms to coordinate operations from a single hub.

Even as manufacturing moved to nearby provinces of former Binh Duong, Dong Nai, and Long An, the city retained high-value functions such as headquarters, finance, and supply chain management, creating a dense and self-reinforcing ecosystem.

The labour market has also been a critical factor. Migration from the Mekong Delta and central regions expanded the workforce and supported key sectors. Efficient labour absorption helped sustain productivity, while private firms adapted flexibly to infrastructure constraints.

Finally, deep integration into global capital flows positioned the city as Vietnam's primary gateway for international investors and a launchpad for domestic firms expanding abroad, reinforcing its role as the country's economic engine.