City sets ambitious target for high-tech sector to constitute 40% of GRDP

Leaders from HCM City and 37 international cities at The Friendship Dialogue 2024 seminar themed “Industrial Transformation: Experiences and Priorities in Development Cooperation,” held recently in HCM City. — VNA/VNS Photo

HCM CITY — HCM City has established an ambitious target for high-tech industries to comprise 40 per cent of its gross regional domestic product (GRDP) by 2030, a city official said.

Speaking at the recent Friendship Dialogue 2024, Phan Văn Mãi, chairman of HCM City People’s Committee, said it was vital to transition from traditional industries to high-tech and value-added sectors.

“Industrial transformation is not merely an option; it is an urgent necessity for HCM City and cities worldwide,” he noted.

High-tech industries currently account for only 23 per cent of the city’s GRDP, he said, adding that by increasing the percentage, the city wants to maintain its economic prominence both nationally and regionally.

In response to the global shift towards sustainable production, the city has embraced a dual strategy that merges green transformation with digitalisation in order to foster sustainable and inclusive growth.

The city will increase investments in high-tech industries, with a focus on automation, smart factories, and advanced manufacturing technologies to enhance its value chain.

The city grew 6.46 per cent in the first half of the year, the highest level since 2020, which included a 5.55 per cent increase in the industrial and construction sectors, according to the city’s Statistics Office.

The industrial production index (IIP) rose by 5.6 per cent, representing the highest increase in three years, contributing to an export turnover of $20.6 billion during this period.

International cooperation

Experts have advocated for global collaboration among governments, businesses, and citizens to drive industrial transformation through technology transfer, green infrastructure investment, and high-tech partnerships.

They emphasise sustainability, innovation, and inclusivity, agreeing to share knowledge and advance projects that promote green and digital economies to enhance urban ecosystems.

Mãi, chairman of HCM City’s People’s Committee, said that international cooperation is vital for maximising industrial transformation benefits while minimising negative impacts.

Federico Penino from Montevideo highlighted the city’s focus on attracting investment in biotechnology, agriculture, and tourism.

Mark Chandler from San Francisco underscored the need for education, training, and robust infrastructure to attract skilled workers and investors.

Key strategies for transformation include investing in research and development, cultivating skills, offering tax incentives, and fostering collaboration.

The International Labor Organization (ILO) expected a 30 per cent increase in labour productivity over the next decade due to automation and technological advancements.

The Friendship Dialogue 2024 seminar themed “Industrial Transformation: Experiences and Priorities in Development Cooperation,” was attended by leaders from HCM City and 37 international cities with friendship ties. — VNS