Public-private partnerships can turn potential into reality

First and foremost, it’s important to recognise that in a megacity like Ho Chi Minh City, the public sector plays a crucial role in guiding, planning, and creating the overall environment from which specific projects attract private capital.

- Truong Bui, partner and head of Roland Berger Vietnam, offers an insightful perspective into the issue.

In our experience, there are three main function groups which the public sector needs to retain the leading role. The first group acts as the conductor, the chief engineer, setting the overall development direction for the city. From there, the public sector implements general plans for different sectors and industries in a clear and transparent manner, creating conditions for private sector investors to participate in specific projects in the future without disrupting the city’s overall direction.

The second group creates a clear investment environment with transparent procedures and consistent processes across all levels, which materially reduces investor risk. In reality, many investors are more ready for market risks and are very cautious about institutional risks, which often causes them to delay or scale back.

And finally, the public sector must directly lead strategic connectivity infrastructure projects: including multimodal transport (ring roads, metro, and inter-regional connections), logistics infrastructure, digital infrastructure, and energy. These are fundamental factors that determine operating costs and the connectivity of businesses.

If these bottlenecks are not addressed, private capital, even if available, will find it extremely difficult to deploy effectively or will only be concentrated in short-term areas.

The key thing is that the public sector doesn’t need to do more, but rather to do the right things and do them well enough. If the issues are resolved, private capital will naturally shift to sectors that create greater value for the urban economy, rather than focusing solely on short-term opportunities.

Improving effectiveness

After incorporating two other provinces last year, Ho Chi Minh City has become a true megacity, with approximately 14 million inhabitants and an estimated regional GDP of around $120 billion, contributing around one-quarter of national GDP in 2025.