throughout the city. Ho Chi Minh City currently also has 40 international schools invested by consulates and education companies. In terms of university education, there are over 80 schools in the city, most of which are managed by the Ministry of Education and Training.
Tourism: Ho Chi Minh City attracts the largest number of domestic and international visitors among provinces and cities every year. As a young city with only 300 years of history, Ho Chi Minh City has built many architectural works and possesses a diverse culture.
Environment and development conditions:
Ho Chi Minh City is an economic, commercial, cultural, scientific, technological center and an international exchange hub with an important position in the Southern key economic region and the whole country. According to the master plan for urban development in Vietnam until 2020, the city has strengths in developing industries and services, while agriculture also plays an important role in providing environmental goods and services, and is the green corridor of the city;
- Has a large number of scientific and technical staff, a potential for developing industry, services and agriculture.
- The city has strengths in transportation, post and telecommunications. As a hub for transportation and post, the city has road, waterway, sea and air traffic. It can be said that goods, raw materials, supplies, machinery and equipment from the airport, port, train station and post office are all concentrated in the city and from here spread to all parts of the country, to many countries in the world and the region.
- Ho Chi Minh City is associated with a developed neighboring agricultural and forestry region that is capable of supplying essential needs for food, foodstuffs, and raw materials for the processing industry and creating advantages for the development of eco-tourism and environmental balance.
- Ho Chi Minh City also has other advantages that other localities do not have. A densely populated city, with more than 7 million people, not to mention domestic and foreign people traveling through the city. A large population creates great purchasing power, increasing the output market of the industrial sector, and at the same time creating favorable conditions for the development of service industries; as a favorable international exchange center compared to the whole country, Ho Chi Minh City has an important position.
in implementing foreign economic relations in many forms such as: Import and export, production cooperation, joint ventures and foreign investment.
3.1.2 Overview of economic development
With the great efforts of the entire population, in recent years, the city's economy has achieved important achievements, demonstrated by the fact that most of the socio-economic goals set have been achieved and exceeded the planned targets.
Main achievements:
Economic development has contributed to improving the material life and intellectual level of the people, changing the face of the countryside, forming many new rural areas in the direction of civilization and progress. During the period 2060 - 2010, the city's economy grew quite well, with an average GDP growth rate of 10.9%/year; the period 2011 - 2015 saw an average growth of 12% and the period 2016 - 2020 saw an average growth per capita of 12%. See table 3.1.
Table 3.1: GDP growth index over the years
Unit: Percent (%)
TT
Target | Unit | 2006-2010 | 2011-2015 | 2016-2020 | |
1 | Average GDP growth rate | (%) | 10.9 | 12 | 12 |
3 | GDP per capita | USD | 2,984 | 4,967 | 8,822 |
4 | Gross domestic product per capita | 1000 copper | 56,247 | 121,202 | 266,403 |
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Source: Ho Chi Minh City Statistical Yearbook 2012 – 2017 [34]
In terms of economic sectors, the growth rate of agricultural sectors is decreasing, while that of industry and trade and services is increasing, thus proving that Ho Chi Minh City is shifting in the right direction.
Table 3.2: GDP structure in Ho Chi Minh City divided by economic sector in the period 2012 - 2017
Unit: Billion VND and Percentage (%)
Year
Total | Agriculture - forestry - fishery product | Industry - construction | Service | |||||
Value (percent) copper) | Structure (%) | Value (billion VND) | Structure (%) | Value (billion VND) | Structure (%) | Value (billion VND) | Structure (%) | |
2012 | 658,898 | 100.00 | 7,140 | 1.08 | 265,369 | 40.27 | 386,389 | 58.65 |
2013 | 764,561 | 100.00 | 7,769 | 1.02 | 310,640 | 40.63 | 446,152 | 58.35 |
2014 | 852,523 | 100.00 | 8,778 | 1.00 | 335,571 | 39.40 | 508,174 | 59.60 |
2015 | 874,511 | 100.00 | 8,971 | 1.03 | 350,504 | 37.74 | 516,152 | 61.23 |
2016 | 890.010 | 100.00 | 8,702 | 0.82 | 359,126 | 38.57 | 571,201 | 61.41 |
2017 | 959,748 | 100.00 | 6,102 | 0.71 | 419,115 | 31.21 | 613,398 | 68.08 |
Source: Ho Chi Minh City Statistical Yearbook 2012 – 2017 [34]
The table above shows that the proportion of the agriculture - forestry - fishery sector in the total GDP is gradually decreasing, from 1.08% in 2012 to only 0.71% in 2017; the industry sector
- Construction in 2012 accounted for 40.27%, in 2017 it was 31.21% and the service industry in 2012 was 58.65% and in 2016 it increased to 61.41%, in 2017 it increased to 68.08%, the service industry is suitable for the CD CCKT orientation of Ho Chi Minh City.
Main difficulties and problems:
Besides the achievements, the implementation of the city's socio-economic development programs still has some difficulties such as:
- The economy is growing at a high rate but the scale is still small, the economic restructuring has not met the city's inherent position and potential.
- Technical infrastructure for production and social welfare is already lacking and is seriously degraded, especially rural transportation, irrigation, tourist areas, etc., which have not met the development requirements of the economy. Many craft villages and concentrated livestock areas have caused environmental pollution in residential areas, affecting people's health, and have not been remedied yet.
- The problem of job creation for the labor force still faces many difficulties and obstacles, especially in purely agricultural areas and areas converting from agricultural land to industrial and urban construction.
3.2. OVERVIEW OF ECONOMIC STRUCTURE TRANSFORMATION IN HO CHI MINH CITY
Implementing the economic development policy of the Party and the State, with its specific conditions, Ho Chi Minh City has carried out economic restructuring in the direction of the economy. Practice has confirmed that this is a correct policy. Therefore, in recent years, the city's economic restructuring has achieved remarkable achievements.
3.2.1 Shift in GDP structure by economic sector
Table 3.3: Economic structure by sector in the City's GDP
Unit: Percent (%)
Branch
Year | ||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |
Service | 58.6% | 58.4% | 59.60% | 61.23% | 61.41% | 68.08% |
Industry and construction | 40.3% | 40.6% | 38.5% | 37.74% | 38.57% | 31.21% |
Agriculture | 1.08% | 1.02% | 1.0% | 1.03% | 0.82% | 0.71% |
Source: Department of Statistics and Calculations of the Department of Planning and Investment [30]
The table above shows that the city's economic structure has shifted in a positive direction.
- The proportion of the trade and service sector accounted for 58.6% in 2012, 58.4% in 2013 and 61.41% in 2016. The economic structure of the service sector has been relatively stable over the years; the average proportion of this sector in the city's GDP in the period 2012 to 2016 was 61.41%, and increased to 68.08% in 2017.
- The industry - construction sector, in 2012 accounted for 40.3% of the city's total GDP, in 2013 accounted for 40.6% of GDP with the average structure of the industry - construction sector in the city's GDP in the period 2012 to 2016 was 38.57% per year, by 2017 it had decreased to 31.21%. In particular, the industry sector has had a sudden increase and decrease in the last 5 years.
- Agricultural production is the industry with the smallest structure suitable for the transition orientation.
economic restructuring of the city. In 2012, this industry accounted for 1.08%, in 2016 it accounted for 0.82%, and in 2017 it still accounted for 0.71%.
In summary, Ho Chi Minh City needs to focus on supporting the shift of industrial structure to products and industries with high scientific and technological content and high added value, including: Mechanical engineering; Electronics, telecommunications and information technology; Chemical and pharmaceutical industry; Food and food processing with high added value, specifically:
- Mechanical engineering industry
- Electronics - information technology, telecommunications
- Chemical industry
- Food and beverage processing industry
3.2.2 Shifting investment capital structure by economic sector Table 3.4: Investment capital structure by economic sector
Unit: Percent (%)
Economic components
Year | ||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |
State economy | 18.0% | 17.2% | 17.0% | 16.5% | 16.6% | 16.1% |
Non-state economy | 58.5% | 59.0% | 59.0% | 59.5% | 59.6% | 60.0% |
Foreign Direct Investment Economy | 23.5% | 23.8% | 23.0% | 24.0% | 23.0% | 22.1% |
Source: Department of Statistics and Calculations of the Department of Planning and Investment [30] Through table 3.4 above, it can be seen that the proportion of the state economy has gradually decreased, in 2012 it accounted for
18%, 16.7% in 2017; non-state economy gradually increased and accounted for a large proportion, in 2017
2012 accounted for 58.5% to 2017 up to 60.0%. The economy with foreign investment capital from 2012 accounted for 23.0% to 2017 accounted for 22.1% with a stable trend.
3.2.3 Shifting the structure of construction investment capital
In general, the structure of investment capital for construction and development has changed in the direction of increasing local budget capital, decreasing central budget capital, and increasing credit capital.
Table 3.5: Structure of capital sources for basic construction investment 2012-2017
Unit: percentage (%)
Year
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |
Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
I. State capital | 53.1 | 46.4 | 38.8 | 29.8 | 31.2 | 31.5 |
1. State budget capital | 44.8 | 40.6 | 33.5 | 28.7 | 28.7 | 28.9 |
Central Ministry Capital | 34.7 | 30.3 | 17.0 | 9.5 | 3.1 | 3.3 |
NSTW capital | 9.0 | 8.2 | 12.3 | 9.8 | 0.7 | 0.8 |
Local budget capital | 1.1 | 2.1 | 4.2 | 9.4 | 24.9 | 24.2 |
2. Loan capital | 0.7 | 5.4 | 4.8 | 0.7 | 2.0 | 2.0 |
State investment credit capital | 0.7 | 5.4 | 4.8 | 0.7 | 1.1 | 1.5 |
Other loans | - | - | - | - | 0.9 | 0.8 |
3. Equity capital of state-owned enterprises | 1.3 | 0.4 | 0.5 | 0.4 | 0.5 | 0.5 |
II. Non-state capital | 46.8 | 52.2 | 59.5 | 62.1 | 68.7 | 68.3 |
1. Capital of TC, TD | 1.7 | 4.6 | 5.9 | 14.0 | 16.5 | 16.7 |
2. Household capital | 45.1 | 47.6 | 53.6 | 48.1 | 52.1 | 52.5 |
III. Foreign investment capital | 0.1 | 1.4 | 1.7 | 8.1 | 0.1 | 0.1 |
1. Joint venture capital with foreign countries | 0.1 | 1.4 | 1.7 | 3.8 | - | - |
2. 100% foreign investment | - | - | - | 4.3 | 0.1 | 0.1 |
Source: Department of Statistics and Calculations of the Department of Planning and Investment [30]
Through Table 3.5 above, in terms of state capital, it shows that loan capital accounts for an increasingly high proportion, in 2012 it only accounted for 0.7%, in 2016 it increased to 2% of the total social capital for basic construction investment. In terms of non-state capital, credit capital also increased rapidly, in 2012 it was only 1.7%, in 2016 it increased to 16.5%, in 2017 compared to 2016 there was not much difference. This shows the increasingly important role of credit capital in the city's CD CCKT. In addition to state capital sources, the capital structure of investment participants in the city has become more diverse, in which capital from households and capital from economic organizations and enterprises has a gradually increasing proportion, the proportion of state capital tends to decrease. Some foreign capital sources have been exploited, but the growth rate is uneven and the scale is still small.
State capital investment in basic construction has changed in structure according to production sector in the period 2012 - 2017. Capital for the production sector decreased, while that of the service sector tended to increase in proportion. In production, investment in trade and services increased.
noticeably faster.
Table 3.6: Structure of State investment capital for construction and infrastructure
Unit: Percent (%)
Year
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |
Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
I. Production area | 23.2 | 46.7 | 46.7 | 15.7 | 15.3 | 15.4 |
Agriculture | 15.9 | 14.5 | 12.1 | 8.1 | 5.2 | 5.1 |
Industrial | 6.4 | 28.6 | 32.0 | 5.0 | 6.3 | 6.5 |
Production & distribution of electricity and water | 0.4 | 2.8 | 1.7 | 1.6 | 3.8 | 3.8 |
Build | 0.5 | 0.7 | 0.9 | 1.0 | 0.0 | 0.0 |
II. Service area | 76.8 | 53.3 | 53.3 | 84.3 | 84.7 | 84.9 |
Commercial | 1.7 | 1.3 | 1.1 | 0.4 | 0.1 | 0.1 |
Transportation | 38.4 | 16.2 | 18.4 | 40.2 | 34.8 | 35.1 |
State Management | 17.2 | 15.2 | 13.6 | 12.8 | 10.1 | 10.3 |
Education and training | 5.0 | 10.0 | 7.3 | 13.0 | 16.3 | 16.6 |
Medical | 6.1 | 3.4 | 4.9 | 3.1 | 3.7 | 3.8 |
Culture | 4.4 | 3.0 | 3.7 | 6.6 | 11.2 | 10.6 |
Serving the community | 4.0 | 4.2 | 4.3 | 8.2 | 8.5 | 8.4 |
Source: Department of Statistics and Calculations of the Department of Planning and Investment [30]
The above table shows that construction investment capital for the production, service and trade sectors is increasing according to the economic structure trend of the city.
Meanwhile, attracting private capital to participate in projects in the city is still limited. That reflects that the Central Government has not paid due attention to regulating investment in CD CCKT in the city in Ho Chi Minh City.
3.2.4. Shifting labor structure
Through table 3.6, it can be seen that the process of industrialization and modernization of the city's economy has clearly changed the labor structure according to economic sectors.
Table 3.7: Labor structure in industries
Unit: Percent (%)
Year
Agriculture - Forestry - Fishery (%) | Industry & Construction (%) | Trade & Services (%) | |
2012 | 4.26 | 32.54 | 62.20 |
2013 | 2.95 | 32.25 | 63.40 |
2014 | 2.07 | 32.23 | 64.10 |
2015 | 2.55 | 32.65 | 64.80 |
2016 | 2.21 | 32.84 | 64.95 |
2017 | 2.36 | 33.01 | 64.63 |
Source: Department of Statistics and Calculations of the Department of Planning and Investment [30]
According to the data of the Department of Planning and Investment of the city in 2017, the city's economy continued to grow and had a positive impact on the labor market. The investment environment was improved, policies to support small and medium enterprises and start-up businesses were promoted and created an increase in the demand for human resources. Enterprises focused on recruiting trained workers with technical expertise. Especially in the context of globalization and towards the 4.0 revolution, labor quality is increasingly focused.
Resolution No. 54/2017/QH14 dated November 24, 2017 of the National Assembly on piloting specific mechanisms and policies for the development of Ho Chi Minh City will promote the strong socio-economic development of the city. The movement of labor from other provinces into the city will increase in both quantity and quality, contributing to making the labor market in Ho Chi Minh City vibrant and highly competitive. Job opportunities in Ho Chi Minh City in 2018 will be open to specialized, highly skilled workers, equipped with soft skills, especially communication and teamwork skills, discipline, professional ethics and labor responsibility, and the ability to apply information technology and foreign languages.
In addition, the city has always facilitated the implementation of the construction and approval of loan projects to create jobs and vocational training by the Department of Labor, War Invalids and Social Affairs in coordination with related departments. In early 2018, the city has appraised hundreds of projects with a total loan amount of thousands of billions of VND, creating tens of thousands of new jobs for workers.