HCMC: ‘5+1’ MODEL AIMS TO LIFT SERVICES TO 75% OF GRDP BY 2040

Downtown HCMC by night - PHOTO: LE VU

HCMC – High-value services are set to account for 70-75% of HCMC’s gross regional domestic product (GRDP) by 2040 under a “5+1” development model centered on the Vietnam International Financial Center in HCMC (VIFC-HCMC).

The target is outlined in a recently issued plan by the HCMC government to turn the city into a major services hub for Vietnam and the region, with a focus on high-value, modern industries. The plan aims to reshape the economy toward a more efficient and sustainable structure.

During 2025-2030, the services sector is expected to grow by 12-14% annually and contribute 60-65% of GRDP by 2030 before increasing its share to as much as 75% by 2040.

To optimize resources, the city has grouped service industries into three categories, with priority sectors including finance and banking, information and communications, logistics, science and technology, and tourism.

A key element of the strategy is the “5+1” model. Under the framework, VIFC-HCMC will serve as the core, coordinating and connecting five specialized service hubs focused on maritime and logistics services, information and communications and science and technology, tourism, healthcare, and education and training. The model is intended to foster cross-sector synergies and strengthen competitiveness in international markets.

The plan marks a shift from labor-intensive growth toward a model driven by knowledge and technology. While services already account for a large share of the economy, authorities are seeking to channel investment into higher-value segments such as financial technology, artificial intelligence and cross-border logistics.

The success of the “5+1” framework will depend heavily on institutional reforms and the development of supporting financial markets. Building an international financial center will require regulatory mechanisms that go beyond conventional frameworks to attract global financial institutions.

Authorities also see investment in digital infrastructure and the development of highly skilled workers in areas such as AI, education technology and healthcare as essential to integrating more deeply into global services supply chains and reinforcing the city’s position as a regional services hub.

Source: The Saigon Times