The summary of Economic Phd thesis: Improving the quality of growth in Ho Chi Minh city in the context of implementing a specific mechanism

MINISTRY OF EDUCATION AND TRAINING 
ECONOMIC UNIVERSITY IN HO CHI MINH CITY 
­­­­o0o­­­­

LÊ TRƯƠNG HẢI HIẾU

IMPROVING THE QUALITY OF GROWTH IN HO CHI MINH CITY 
IN THE CONTEXT OF IMPLEMENTING A SPECIFIC MECHANISM

Department: Political Economy 
Code: 62310101

THE SUMMARY OF ECONOMIC PHD THESIS 


Ho Chi Minh City – YEAR 2020

The work is completed in:
Economic University in Ho Chi Minh City

Scientific advisor: 
ĐINH SƠN HÙNG . PhD
NGUYỄN MINH TUẤN/ ASSOCIATE PROFESSOR, PhD

The thesis will be protected before thesis marking council in Economic 
University in Ho Chi Minh City 
At …. hour …. month …. date ….. year 2020
Can find out the thesis in:
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PUBLISHED SCIENTIFIC WORKS
RELATED TO THE THESIS
1.   Le   Truong   Hai   Hieu   (2019).   "Institutional   impact   on   the   quality   of 
Vietnam's   economic   growth".   Research   level   at   school   level   ­ 
Economics University Ho Chi Minh
2. Le Truong Hai Hieu (2018). "Vietnam's economic growth model under 
the  impact  of the  industrial  revolution 4.0",  Journal  of  Economics ­ 
Technology, (24), pp.36 ­ 46.
3.   Le   Truong   Hai   Hieu   (2017).   "A   number   of   policies   to   promote 
investment and support business development in Ho Chi Minh City", 
Journal of Economics ­ Technology, (20), pp.72 ­ 80.
4.   Le   Truong   Hai   Hieu   (2017)   "Enhancing   the   competitiveness   of 
enterprises   in   Ho   Chi   Minh   City   in   the   context   of   the   Industrial 
Revolution   4.0"   ­   Proceedings   of   Scientific   Workshop:   Industrial 
Revolution   4.0   with   develop   science   and   technology   in   Vietnam. 
Publisher of National University of Ho Chi Minh City. HCM ­ ISBN: 
978­604­73­6617­0, tr215­223.


INTRODUCTION
1. Urgency of research topics
Improve   the   quality   of   growth   is   an   important   goal   of   most   of   the   country, 
especially   for   the   least   developed   countries   or   developing.   Improve   the   quality   of 
growth will create conditions for overcoming poverty, underdevelopment, improving 
the material life and spiritual people, contribute to solving the social problems, while 
protecting environment and ecology. However, today we have witnessed the downside 
of   rapid   growth   for   some   countries,   such   as   economic   growt     quickly   leads   to 
destruction of natural resources and ecological environment, economic institutions and 

political instability; increasing rich­poor gap, the development of culture ­ society does 
not keep up the development of the economy ... In this situation, the national as well as 
local   authorities   in   the   process   of   planning   the   development   policies   are   always 
interested   in   quality   of   growth,   how   to   both   rapid   economic   growth,   sustainable 
development medium; resolved harmoniously with the fastest growth in the quality of 
growth; simultaneously solving social problems, ensure social security; preservation 
and development of the ecological environment; build a stable economic institutions, 
effective.
Economic   growth   of   the   city   for   more   than   30  years   since   the   renovation   is 
always higher than 1.5 to 1.8 times the rate of overall economic growth of the country, 
which   has   contributed   put   the   city   became   the   economic   engine   of   the   country's 
"growth pole" the largest, is the economic center of the largest of the country, the role 
and   position   as   the   nucleus   of   key   economic   region   southern.   But   due   to   many 
different causes, through economic time in Ho Chi Minh City is still mainly perform 


the   method   according   to   the   width   of   growth,   growth   by   volume   and   scale   up   is 
essential. This growth method but there are certain advantages in achieving the goal of 
increasing the speed and scale of the GDP, but in the longer term and especially when 
the economy is increasingly integrated into the international economy, competition 
increasingly fierce, the main mode of growth in width, according to the number will 
reveal   many  limitations.   So   conversion   methods   growth   comes   primarily   from   the 
width, according to the quantity to the method of growth mainly in depth and quality is 
an   indispensable   and   urgent   requirements   as   the   world   and   Vietnam   steps   in   the 
industrial revolution 4.0. Can also say that improving the quality of economic growth 
is the content "nuclear ''; top content of economic restructuring in Ho Chi Minh City in 
particular and Vietnam in general economic. 
However, as the largest city of the country and along with Ha Noi, Da Nang are 
many difficulties, obstacles and limitations on authority, in institutions in addressing 
issues of urban infrastructure transportation, environmental, economic, socio ­ very 

need for decentralization and proper financial mechanisms to resolve quickly to needs 
as pressing immediate, medium long basic big cities.
Resolution No. 54/2017 / QH14 dated 24.11.2017 issued to date is 2 years, the city 
has implemented Plan No. 171 / 28.12.2017 KHTU day implementation of programs, 
schemes and plans to perform and the municipal people's Council issued preparing 
many resolutions relating to Resolution No. 54 of the National Assembly. Generally 
the application and implementation of the Resolution at the beginning, many programs 
and schemes are studied, many problems, new content related to laws, decrees and 
circulars applicable to the application of pilot must study; By comparison, consider, 
consult the ministries concerned and would like to direct the Central Government .... 
Therefore, the study of deep, full and comprehensive relationship between the quality 
of growth economic and specific mechanism that allows manipulate Congress on the 
territory of the city is needed. From that recap the results, the pluses and limitations, 
the   contents   should   be   added,   complete,   suggestions   for   improvement   pilot 
mechanisms specific and preliminary and final issue of raising the quality of economic 
growth in the City after when implementing this particular mechanism. At the same 


time after more than 30 years of innovation quality of economic growth in the territory 
of   the   city   is   still   not   commensurate   with   the   potential   and   advantages,   untapped 
existing resources, especially resources on land, the gray matter and technology of the 
city;   quality   economic   growth   The   city   also   unsatisfactory   and   restrained   by 
mechanisms and policies are not appropriate in the practice of a major city with a 
population   of   over   10   million   people.   Resolution   No.   54   issued   by   the   National 
Assembly   would   create   favorable   conditions   for   the   city   in   the   exploitation   of 
resources (especially land from internal resources, brainpower, knowledge, technology 
...). Therefore, the need to promote research, apply to the improvement of the quality 
of economic growth City.
That is why the author chose research topics: "Improving the quality of growth  
in the province Ho Chi Minh City in the context of the implementation of specific  

mechanisms" as a doctoral thesis economics, political economy, to analyze, study and 
assess the quality of the city's growth over time. Since then, the proposed orientations 
and measures to improve the quality of growth in the area of Ho Chi Minh City in the 
context of the implementation of specific mechanisms from early 2018 to date and 
preliminary ­ summing up to propose competent authorities to apply for the period 
after 2020 ­ 2025 and vision 2030.
2. Access to Research
­   Firstly,   access   to  quality   growth   characteristics   of   sustainable   development, 
including:   improving   the   quality   of   economic   growth,   in  association   with  the   fine 
determined well the social issues, ensuring social security; protect and develop the 
environment and ecology; develop mechanisms of economic stability and efficiency.
­ Secondly, access to assess the quality of growth purely in economic terms, on 
the basis of analyzing and evaluating the input factors affecting economic growth, in 
the form as a function of producing general expressions market dependent relationship 
between output and input factors.
3. Objectives, assumptions and research questions of the thesis
3.1. Research Objective
The objective of the thesis clarify the rationale and practice of quality growth in 


HCM   City   over   the   years.   Since   then,   the   proposed   orientations   and   measures   to 
improve   the   quality   growth   of   the   City,   in   the   context   of   the   implementation   of 
specific mechanisms under Resolution 54 of the Congress allocated to Ho Chi Minh 
pilot from 2018 to and to phase this in 2025, and vision 2030.
3.2. Research hypothesis
3.2.1. Theory and practice have shown the different growth models. Each model 
has its advantages and disadvantages, there are particular advantages and strengths. 
But in the perspective of the current economic development and on practical grounds 
in Ho Chi Minh City, the sustainable growth model proved to have many advantages 
and economic fit Ho Chi Minh City.

3.2.2. Quality economic growth in Ho Chi Minh follow the approach towards the 
characteristics of sustainable development, advancement of social justice and linked to 
a specific mechanism that Resolution 54 of the Congress has allocated How the City? 
3.2.3. Quality economic growth, Ho Chi Minh City is measured and expressed on 
these aspects;
­ Maintaining high growth rates reasonable and stable in the long run.
­ Convert the growth model and restructure the economy towards modern (by 
industries and sectors, according to economic sectors)
­ Productivity of total factor high (TFP) and contribution to more big on GRDP 
growth of the city.
­   Improve   the   quality   of   economic   growth   by   HCMC   improve   efficiency, 
productivity of inputs. According to the general production function and expression of 
the relationship between the dependent output with input factors: Y = Fi (i = 1, n).
­ Growth tied to ensuring enhanced economic efficiency and competitiveness of 
the   economy   (the   elements   of   effective   labor   productivity,   GRDP   /   person,   the 
proportion of investment of the social / GRDP. ..)
­   Economic   growth   combined   with   protection   of   ecological   environment   and 
sustainable development. Quality growth and social justice are the contents of "kernel" 
of sustainable development.
­ Economic growth associated with the implementation of democratic expansion 


and advancement of social justice, this is the core of the development. Quality growth 
and social justice have close ties, mutual reciprocity, is a precondition of the other.
3.3. Research question:
To achieve the objective, assuming research to answer the following questions:
(1) The growth model and the quality of economic growth in Ho Chi Minh City 
will have specific content, pepper even comparing like?
  (2) The content of social justice, sustainable development and the relationship 
between the quality of economic growth with social justice, sustainable development 

in the area of Ho Chi Minh City expressions like? 
(3)   Situation   of   the   economic   growth   associated   with   social   justice   and 
sustainable development in the area of Ho Chi Minh City last time how? The results 
achieved   and   the   cause?   On   these   exist,   what   restrictions?   The   cause   of   these 
problems, such restrictions? 
(4) The orientation and solutions to enhance the quality of economic growth and 
implementation of social justice in the city of Ho Chi Minhgiai period from 2015 to 
2020 in 2025, 2030, and in the context of implementation mechanisms particular with 
Resolution 54 of the National Assembly for Ho Chi Minh city as a pilot from 2018 to 
the   present.   Relationships   and   the   impact   of   specific   mechanisms   to   improve   the 
quality of economic growth in the City like?
4. Objects and scope of the research of the thesis
4.1. Subjects of research
(1)   Research   actual   quality   of   economic   growth,   progress,   social   justice   and 
sustainable development in HCM City on the aspects: economic structure, economic 
efficiency, safety social efficiency of State management; unemployment, polarization 
between   rich   and   poor   strata   of   the   population,   environment   and   development 
investment; ecological environment protection and mitigation of climate change. 
(2) Analysis and assessment criteria, the content quality of economic growth, 
social justice and sustainable development in the area of Ho Chi Minh City stage from 
2010 to 2018 and in so far as certain compare this with uniform criteria throughout the 
country. Identify achievements, constraints and learned the cause of the achievements 


and limitations
4.2. Scope of research
­   About   time:   the   limit   of   the   dissertation   research   focused   mainly   on   the 
situation analysis period 2012 – 2018
­ About space: dissertation research focused on the scope of the Ho Chi Minh 
City .

Data source research topics
First, the subject use of secondary data from the survey of living standards in the 
city   period   2012   ­   2018,   the   HCMC   Statistics   Office,   the   figures   in   the   statistical 
yearbook city Ho Chi Minh through the year, data compiled by the Department of 
Labor ­ Invalids ­ Social Affairs, the Steering Committee poverty alleviation city, the 
Department   of   Planning   and   Investment;   Industrial   and   commercial   facilities; 
Department of Education and Training ...
Second, subjects using primary data sources through the investigation, survey 
and consulted experts  in HCM City on issues  related to economic, social welfare, 
quality   of   life,   social   security,   education,   health,   environment,   mechanisms   and 
policies   ...   in   the   area   of   Ho   Chi   Minh   city.   Thereby,   there   is   a   more   realistic 
assessment of the problems related to research projects.
5. These new points of the thesis
Firstly,  inherited   and   developed   the   previous   research   work,   dissertation 
generalized to form the (construction) theoretical frame for the quality of economic 
growth,   social   equity   Social   and   sustainable   development,   the   proposed   model   of 
economic growth for the city of Ho Chi Minh and enhance the quality of economic 
growth.
Secondly,   the   thesis   analyzes,   lessons   learned   from   countries   such   as   Japan, 
Singapore,  China,  Thailand  and  France  in  improving the  quality of  growth,  which 
reference the successful experience also as the mistakes that other countries have gone 
through in order to clarify the purpose and requirements of the thesis research.
Thirdly, the thesis analyzed, evaluated overall picture quality of growth in HCM 
City,   firstly   on   the   quality   of   economic   growth   through   the   general   indicator   of 


economic   yield   synthesis   of   performance   effective   use   of   resources,   economic 
restructuring; quality solving social problems through the creation of jobs, improving 
social   welfare,   social   security;   environmental   quality   through   environmental 
protection,   ecology,   reduce   environmental   pollution;   institutional   quality   through 

administrative reforms, macroeconomic stability, policy enforcement. On that basis, 
pointing out the achievements and limitations, contradictions were raised about the 
quality of city growth phase from 2012 to 2018.
Fourthly, on the basis of generalized theoretical and practical quality of growth in 
the city of Ho Chi Minh City last time, incorporate the lessons learned from other 
countries,   the   thesis   given   system   orientations   and   solutions   basic   contribute   to 
improving the quality of growth in the city of Ho Chi Minh in the context of pilot 
mechanisms and specific policies that Resolution No. 54 of the National Assembly for 
Ho Chi Minh city as a pilot, the the impact of specific mechanisms to improve the 
quality   of   economic   growth   and   transform   the   growth   pattern   and   economic 
restructuring of the city.
6. Structure of the thesis
Besides the introduction, conclusion, list of references and appendices, the thesis 
consists of four chapters:
Chapter 1: Overview of research projects related to the thesis
Chapter 2: The rationale for the quality of growth, improve growth quality and 
specific mechanisms
Chapter 3: Research Methodology
Chapter 4: Situation of the growth in HCM City stage from 2012 to 2018
Chapter 5: Orientation and solutions to improve the quality of growth in the area 
of HCM city in the context of the implementation mechanisms and specific policies.

CHAPTER 1 
OVERVIEW OF RESEARCH PROJECTS RELATED TO THE 
THESIS


1.1. The research work in the country
­ Research: "Assessment of the economic growth model HCMC 1990 ­ 2010. The 
orientation and complete solution model of growth through 2020," Hoang Thi Chinh, 

University Economics HCMC 2011.
­ Research: "the views and solutions to ensure the link between economic growth 
and social justice progress" Hoang Duc Than. Hanoi in 2010;
­  The   study,  "Relationship relationship  between  economic   growth  with social 
justice   in   Vietnam   in   the   renovation   ­  Problems   and  Solutions"   Nguyen  Thi   Nga, 
National Academy of Politics and Ho Chi Minh. 2006
­   Topic:   "Research   proposed   solutions   to   promote   economic   restructuring, 
transformation of economic growth patterns towards competitive HCMC period from 
2011 to 2020 and vision to 2025"; Luong Minh Cu Huan Dao Duy, University of 
Finance and Marketing, 2013
­ The study: "Economic growth and social justice. Theory and Practice in the 
City "; Do Phu Tran Tinh.
­ Research: "Economic growth and progress, social justice in Vietnam"; Dinh 
Quang Company, Hoang Duc Than.
­   The   study:   "Innovation   models   Vietnam   economic   growth   period   of 
accelerating   international   economic   integration".   Magazine:   "The   problems   of 
economic and political world"; Bui Quang Binh.
­ Research: "The model of economic growth in Vietnam from innovation to date 
­ Achievements and limitations"; Cecilia Thanh, Bui Quang Binh;
­ Research: "Mounting economic growth with progress and social justice in order 
to reduce the polarization between rich and poor"; Ly Thu Hue, State Administration, 
2014, No. 222.
­ Research: "Promoting economic growth and implementation of social justice in 
Vietnam with the development of infrastructure in rural areas"; Vu Xuan; Advances in 
science and technology UD, 2014, No. 4.
­   The   study,   "A   number   of   social   issues   to   address   the   relationship   between 


economic growth and the achievement of social justice in our country ­ Status and 
recommendations"; Mai Ngoc Cuong; Economy and Development, 2013, No. 196.

­ Research: "Selecting models Vietnam economic growth for the period 2011 ­ 
2020. Nguyen Cong America; Economic management in 2012, No. 45.
­ The research: "The model of economic growth Vietnam ­ Status and choose for 
the period 2011­ 2016"; Nguyen Dinh Cung; Fiscal 2012, No. 1.
­   Research:   "To   ensure   coherent   economic   growth   with   progress   and   social 
justice   in   development   strategies   in   our   country   by   2020";   Nguyen   Huu   Dung; 
Economic development in 2011, No. 163.
­   Research:   "The   relationship   between   economic   growth   and   cultural 
development, implementation progress and social justice in the transitional period"; 
Pham Xuan Nam; Communist Review, 2011.
­ The study "Economics HCMC 30 years of construction and development (1975­
2005)"
­ Topic ministerial level scientific research "The relationship between economic 
growth with equity Vietnam society in the renovation period ­ problems and solutions 
"implemented in 2006.
­   Project"   economic   growth,   social   justice   and   poverty   alleviation   issues   in 
Vietnam, "the professor, progress Dr. Vu Thi Ngoc Phung.
­ Topic: "The concept and practice of economic development, social, fast speed, 
high quality sustainable in Vietnam" by Dr. Dinh Van An.
­ Monographs: "Growth and quality of economic growth" by Dr. Cu Chi Loi 
editor, published in 2009.
­ Monographs: "The pace and quality of economic growth in Vietnam" by author 
associate professor, Dr. Tran Tho Dat published in 2006.
­ Professor, doctor Nguyen Khac Minh City & Dr. Vietnamese Nguyen Hung 
(2010),   Changing   the   economic   structure   of   Vietnam   ­   IO   approach,   Journal   of 
Economic Development.
1.2. The foreign research works related to dissertation
­ Gylfason and Zoega; 2003. "Education, social justice and economic growth: an 

overview".
­ Clarke and Islam; 2004. "Economic growth and social welfare," the standard 
operating social choice theory.
­ Guisa and Frias, 1996 "Economic growth and social welfare in Europe".
­ Martin Evans, Ian Gough, Dao Thanh Huyen, Do Le Thanh Ngoc; 2007 "Social 
Security in Vietnam progressive to some extent".
­ Linder, 2004 "Increased public social spending and economic growth since the 
18th century."
­ The competitive research of many scholars have pointed out the role of national 
competitiveness powerful influence to transition the economic structure and decisive 
in   the   economic   takeoff   as   Adam   Smith   (1776),   Jasimuddin   (2001),   Dutta   (2007), 
Garelli (2004), McFetridge (1995), Heap (2007), Porter (1990) ... This is the scientific 
basis of the world economic Forum (WEF) launched index edge global competition 
(GCI) with 12 factors of 3 groups (1) basic elements, (2) improving the efficiency 
factor,   (3)   elements   and   modern   innovation.   However,   the   GCI   index   is   too 
comprehensive and very hard to pick a highlight for the implementation of certain 
elements. In addition, Schwab (2009) pointed out that the difference of the columns of 
GCI national impact is very different, the best example for the country but is not the 
best Burkina to Switzerland.
­ Hollis B. Chenery in work Industry and growth (Industrialization and Growth, 
1982)
1.3. Gaps in the research related to the thesis
No works yet­depth analysis of the quality of economic growth in the aspects of 
economy,   society,   environment   and   mechanisms   in   the   context   of   implementation 
specific mechanisms of decentralization and autonomy in HCM City. Especially when 
Congress enacted Resolution No. 54 on a special mechanism for HCMC applied to 
City from 2018 to now, it has no works any studies on the quality of economic growth, 
city   associated   with   the   mechanism   How   special?   Impact   relationships   between 
economic growth quality and a special mechanism like?

CHAPTER 2
THE RATIONALE FOR THE QUALITY OF GROWTH, 
IMPROVE GROWTH QUALITY AND SPECIFIC 
MECHANISMS
2.1. Theories about the quality of growth
2.1.1. Some concepts
2.1.1.1. Economic growth
Nature of economic growth is reflected in the change in volume of the economy. 
Today, in order to measure the output or income of the economy people may use the 
following   indicators:   Gross   Output,   Gross   Domestic   Product   and   Gross   Domestic 
Product Regional
2.1.1.2. Economic development
Be interpreted as incremental process on all aspects of the economy. Technical 
analysis is the process of change in terms of quality and economy, is a combination of 
tight   process   improvement   and   development,   both   economic   and   social   in   each 
country.
2.1.1.3. Sustainable Development
Summit in the world in terms of sustainable development held in South Africa in 
2002 has identified: "Sustainable development is  development that combines  tight, 
harmonious, reasonable between three aspects of development, including economic 
development,   improve   the   social   issues   and   environmental   protection   of   natural 
resources "
2.1.2. Some views on growth
Author has included in this study the classical view of growth, the views of Karl 
Marx and Growth neoclassical model of growth
2.2. Rationale for quality growth
Authors have presented views on the quality of growth and the views of the 
Communist Party of Vietnam on the quality of growth

2.3.  Rationale   for   a   special   mechanism   in   decentralization   recommended 
economic development of regions and cities.
This part referred to the concept of specific mechanisms, decentralization at the 
local   and   the   grounds   and   basis   for   Congress   enacted   a   special   mechanism   under 
Resolution No. 54 for HCMC pilot.
2.4. The experience of some countries to improve the quality of growth and 
lessons learned for HCMC.
In summary in Chapter 2, the author went deep analysis of the rationale for the 
quality of growth, improve growth quality and a special mechanism. In which the 
author makes clear reasoning about the quality of growth with the basic concepts of 
quality of growth; some perspective on growth include: the classical view, the view of 
Marxism ­ Leninism, views neoclassicism, views of JMKeynes, views Harrod ­ Domar 
growth, the perspective of economic modern, and also a clear analysis facilities of 
reasoning about the quality of growth with different views about the quality of growth, 
growth quality measurement.
In Chapter 2, the author also depth analysis perspective of Communist Party of 
Vietnam   on   the   quality   of   growth;   Resolution   of   pilot   mechanisms   and   specific 
policies for HCM (Resolution No. 54/2017 / QH14), and the author also deeply analyze 
experiences in improving the quality of growth of a  number of countries such as: 
Japan,   Singapore,   China,   Thailand,   the   Republic   of   France,   from   which   to   draw 
lessons for the City, in order to improve the quality of growth in the context of the 
implementation of specific mechanisms.


CHƯƠNG 3

RESEARCH METHODOLOGY
The author used two groups of methods as follows:
3.1.  Approach   to   research:   dialectical   materialism   method,   the   method   of 

scientific abstraction, system approaches and methods of analysis ­ synthesis.
3.2.  The specific research methods: Method of logic and history, methods to 
check   and   compare,   document   research   methods,   statistics,   describes   methods   of 
expert and desk research methods.
3.3. Processes and analytical framework thesis:
Synthesis of a general way the problems were studied to make a diagram of the 
frame of the project reasoning as follows:


CHAPTER 4
SITUATION OF THE GROWTH IN HCM CITY STAGE FROM 
2012 TO 2018
4.1. Introducing an overview of Ho Chi Minh City
Ho Chi Minh City is located in central South, in the coordinates: 10010 '­ 10038' 
north   latitude,   106   022   '­106   054   east   longitude,   north   of   Binh   Duong   Province, 
Northwest border province of Tay Ninh, East and North­east of Dong Nai province, 
southeast of Ba Ria ­ Vung Tau province, west and southwest provinces of long An 
and Tien Giang, the south China sea, has a coastline of 15 km. The natural area is 
2095.24 km2, divided into 24 districts with 322 communes, wards. A population of 
about 13 million people (including immigrants).
Ho Chi Minh City meets the favorable conditions on the road connecting the 
localities   in   the   country   and   is   the   country's   gateway   to   the   world.   Besides,   the 
concentration   of   universities,   colleges,   businesses,   hospitals,   commercial   centers, 
cultural   institutions,   restaurants,   hotels,   amusement  parks,   entertainment   ...,   human 
resources abundant high quality is facilitating economic development.
Late 2017, Congress adopted Resolution No. 54/2017 / QH14 "pilot mechanisms 
and specific policies to develop Ho Chi Minh City", which has opened up tremendous 
opportunities, but also full of challenges recipe for Ho Chi Minh City in the economic 
and social development
4.2.  Situation of the growth in the area of Ho Chi Minh City phase 2011 ­ 

2018
4.2.1. Real quality of economic growth
This section the author has analyzed the current status of economic growth and 
economic   restructuring;   Situation   in   the   province   capital   city;   Foreign   Direct 
Investment (FDI) in the province; Official Development Assistance (ODA); Situation 
revenue ­ expenditure on the City and the reality of enterprise development.
4.2.2. Situation solve social issues, culture, health, education ­ training on the  
territory   of   the   city   of:  addressing   social   issues   and   ensure   social   security,   build 


cultures imbued national identity, the situation of education and training and the state 
public health and health care community.
4.2.3. Situation of the environment and ecology in the City
4.2.4. Real quality of economic institutions
The application of information technology is widely deployed and has depth in 
state management, supporting the reform of administrative work. On 28/9/2018 issued 
the Decision No. 4250/QD­the PEOPLE's committee of the city People's Committee 
on the approval of the city's electronic authority architecture has the role, master plan 
for   the   lowest   deployment   orientation,   synchronization   of   information   technology 
application in the city State administration, building digital government, smart urban, 
improving the quality of service to people and businesses.
4.3.  Evaluate   the   results   achieved   and   the   limitations   on   the   quality   of 
growth in the area of Ho Chi Minh City last time
Quality of city growth phase 2016 ­ 2020 is lifted, improving clarity; basically 
economic   growth   based   on   the   basis   of   service   and   innovation,   initially   intensive 
scientific ­ technological factors capital intensive and labor decrease, instead raising 
factor productivity total factor (TFP), increased labor productivity, increase investment 
efficiency, reduce ICOR.
4.3.1. The results achieved
(1) The city has been proactive, timely, creative in the radiating and specifically 

the resolution of the party Central, Congress, government to conform to the situation 
of practice; Sensitivity, effective handling of socio­economic issues arising, contribute 
positively   to   the   whole   country   stable   macroeconomic,   curb   and   control   inflation, 
ensure social security, keep the defense. , security in all situations.
In the general difficulties of the world economy and in the country, the city has 
focused   on   promoting   business   activities   with   a   wide   range   of   solutions, 
comprehensive, creative, high efficiency, contributing to maintain the growth rate of 
the CA o, the consumer price index is controlled, not to the loss of supply and demand, 
while   exploiting   the   best   potential,   advantage,   gradually   transferring   economic 


structure towards improving the quality of growth, efficiency and competitiveness; 
Increased investment efficiency; Affirming the role as the head of nuclear vessel, the 
motivation of the southern key economic zone and the country.
 (2) The composition of the economy has moved in the right direction, increasing 
the proportion of area non­state economy, private economy, the economy with foreign 
capital,   reducing   the   proportion   of   state   economic   capital;   State   economy   is 
strengthened and promoted a pivotal role in the socialist­oriented market economy. 
The   types   of   markets   are   growing   and   prospering   signal,   namely;   commercial 
commodity markets and services meeting the growing scale, maintain high growth, 
contributing  greatly   to  the   economic   growth  of   the   city.   Total   retail  sales   and  the 
average service period 2016­2020 was estimated to increase 11.38% / year, exceeding 
the set target of 8% a year. Monetary and financial markets gradually stabilized, the 
bank's capital raising continuous annual growth (from 1.7 million in 2016 to over 2.2 
million billion in 2018), creating conditions bank credit expansion, meet capital needs 
for   growth   and   development;   continue   to   grow   market   share,   thriving   real   estate 
market,   including   the   growing   housing   needs   of   the   people   better.   Science   and 
technology   market   gradually   formed,   developed   and   grew   in   scale,   enterprise 
applications support new technologies, improve competitiveness; the foreign exchange 
market and gold market is stable, the market order is guaranteed. The structure and the 

economic sector of the correct orientation, 09 service sector and 04 key industry, fast­
growing, in the direction of improving the high­level services, industrial products with 
the content of science­technology , high value, urban agriculture developed efficiently, 
sustainably, modern steps, enhancing the application of biotechnology, focusing on 
production  of  cultivars,   livestock  with  high   economic   value,   implementation   focus 
"Agricultural model building Program The new village is increasingly civilily rich.
  (3)   Urban   planning   and   management   planning   and   development   has   many 
positive transformation to complete and cover the subdivision planning to serve as the 
basis of detailed planning implementation; Completing and reviewing the planning of 
the 24 districts to serve the urban development, making and adjusting the planning of 
several important areas of the city such as the plan of subdivision at the rate of 1/5000 


in   need   of   time,   adjust   the   planning   of   subdivision   1/5000   urban   Northwest   City, 
haoch5   details   1/500   Park   area   23/9   and   Ben   Thanh   railway   station.   Research   on 
reviewing and adjusting the general planning of Ho Chi Minh City until 2040, with a 
vision to the year 2060. The work of publication, public planning information has 
advanced, deploying the application of information technology in the publication on 
the   Internet   and   the   smartphone;   Building   a   database   for   planning   management 
contributes to the city's intelligent urban platform building.The planning of developing 
new urban areas is to complete the orientation of the creative urban planning area in 
the high­interaction of the east of the city in District 2, District 9 and Thu Duc District, 
based   on   the   knowledge   economy   and   high   technology   of   the   way   Network 
Technology 4.0;  The  plan  to regulate   the  district  to be   the  tourist  center,   nursing, 
ecology and conservation; The selection of the planning project of Thanh Multi – Binh 
Quoi   district;   Planning   the   source   space   and   underground   infrastructure   urban... 
Overall planning work has many innovation on the method of organizing, establishing, 
integrating   landscape   planning,   environment,   economy,   urban   development,   urban 
services,   urban   culture...   Focusing   on   urban   development,   the   construction   of   the 
infrastructure, the expansion of urban space, actively serving industrial development, 

services,   agriculture,   culture­society,   improving   the   population.   The   city   has 
implemented  many  mechanisms  and policies  to attract social  capital investment in 
infrastructure   development,   urban   correction,   making   infrastructure   systems,   urban 
appearance in many areas of better change, increasingly civilized , modern; Gradually 
reduce   the   urban   traffic   congestion   while   reducing   water   flooding   in   some   areas, 
reducing environmental pollution, actively responding to climate change in the area of 
the city.
(4) Career cultural, social, health, education and human resource training, sport 
has a positive change; research and application of science and technology step by step 
practical contribution to the development process; quality health care is raised, the 
material life of the people and the spirit of continuous improvement; the social security 
policy is concerned perform effectively with the community responsibility, shared by 
all   classes   of   people;   Sustainable   poverty   reduction   programs,   increase   household 


quite complete plan before the deadline set out, contributing to social stability, civil 
peace   in   the   context   of   the   international   situation   and   domestic,   there   are   many 
difficulties and challenges.
(5) The city has kept political stability and secured the social security order in all 
situations;   Defense­security   is   relentlessly   strengthened,   building   a   solid   defensive 
area;   Criminal   offence   is   inhibitions,   traffic   accidents   are   reduced   on   all   3   sides; 
Proactively strengthen the fire safety measures; The administrative reform achieves 
many positive outcomes, gradually building the administration of the Government is 
effective,   effective,   ensuring   consistency,   transparency;   The   judicial   work   has   a 
positive transformation; Prevention of corruption, wastage, citizenship, settlement of 
claims accusations has a lot of effort, the responsibilities of the head in the citizenship, 
the settlement of complaints and accusations of levels and sectors in the city are lifted; 
Foreign   economic   affairs,   international   cooperation   is   expanded   and   developed   to 
create a favorable environment for the socio­economic development of the city.
(6) In late 2017, Congress issued Resolution 54/2017 / QH14 on mechanisms and 

policies specific to the city of Ho Chi Minh has created more favorable, creating new 
conditions,   new   impetus   to   the   city   development   grow   faster,   stronger,   more 
sustainable. So far, the city People's Council has approved 2 projects and issued a 
resolution on the additional income increased 1.8 times for officials, public servants 
and employees of Ho Chi Minh City, Motivational new, more exciting, more secure 
additional income by improving the life, retain good people in the public sector, the 
state, limit the brain shifting the non­state sector.
Resolution   on   the   scheme   attractive,   regime,   remuneration   policies   talent, 
experts, warehouse school, special talent to implement its policy and talent deserve 
preferential   treatment.   The   city   is   preparing   12   Scheme   rest   through   the   People's 
Council   of   the   city   coming   to   create   real   changes   in   attracting   human   resources 
development of the city, improve the quality of economic growth and competitiveness 
of city economy.
4.3.2. Limitations, weaknesses 


(1) City economy growth is mainly based on capital and Labour contributed to 
64.7% (expected to 2020 and about 58%) To the rate of growth GRDP; The yield of 
aggregate factors (TFP) contributes to growth rate, although there is increased but low 
density, contributing 35.3% (expected to 2020 increased to 42%) Labor productivity is 
lower than countries in the Southeast Asian region.
The growth quality is not yet sustainable, competitive capacity is not high; The 
internal structure of the economic sector, however, has a positive transition, but rather 
low   value­added   content,   the   production   rate   of   machining   and   assembly   is   high; 
Competitiveness has not increased much. The city industry mainly develops according 
to the short­term goal, sustainable lack, competitiveness and the ability to participate 
in   the   regional   value   chain,   Global   is   also   limited;   The   alignment   between   the 
manufacturing   industry   and   the   supporting   industry   with   the   complete   product 
manufacturers is limited; The percentage of investment in technological innovation is 
low, the technology of production is not high, participating in the global value chain 

and the area is not yet clear, the increase in use efficiency, low labor productivity.
E­commerce   activity   grew   rapidly   and   the   trend   grew   stronger   but   more 
restrictive   and   difficult   on   state   management   of   taxation,   counterfeit   goods,   brand 
counterfeit goods, inferior quality. Unmounted Logistics and Export­import systems 
due   to   the   size   of   enterprise   logistics   is   small,   competitive   weak;   Logistics 
infrastructure   is   weak,   lacking   in   synchronization,   small   scale,   high   cost.   Export 
growth is mainly for assembly goods, based on cheap labor sources, low­added value; 
Has   not   really   participated   in   the   production   chain   and   circulation   of   global   and 
regional products. Slow economic restructuring, high­density services, CN products 
with a content of science and technology, high value added and aggregate yield factor 
(TFP)   contribute   to   limited   economic   growth   compared   to   potential   development; 
Scale, the density of the collective economy is too small.
The   development   level   of   low­market,   unsynchronized,   seamless   operations; 
Monetary   and   real   estate   financial   markets   also   underlying   many   risks.   Slow 
construction   of  technical   fence   systems   and   a   fully   qualified   and  effective   market 


management   system   to   protect   the   domestic   market   ,   a   healthy,   fair   competition 
environment, preventing trade fraud, counterfeit goods, and smuggling.
(2) Although there is a growth step, however the city agriculture still develops 
not   really   sustainable,   natural   disasters,   diseases,   agricultural   markets   lack   of 
stability,...   Still   occurs   frequently   affecting   the   life   of   a   rural   residential   division; 
Small   manufacturing   status,   dispersing   is   also   common,   low   competitiveness;   The 
form   of   organization   producing   NN   despite   the   transformation,   but   still   slow 
innovation,   not   yet   developed   the   production   of   strong   goods   in   the   countryside; 
Investment   in   infrastructure   development   for   agricultural   production   has   not   yet 
fulfilled the requirements of development; Abandoned land in the districts outside the 
city, large districts due to land­based status, the fertilizer was sold in agricultural land.
(3) The political security situation and the social security order in the city also 
complicates the complex, some localities also underlying the element of instability, 

causing anxiety among the people, the situation of prolonged grievance , complex in 
relation   to   the   home   field,   the   soil   is   many.   The   criminal   situation,   social   evils, 
especially evils, prostitution is still complicated. The administrative reform has not 
created breakthrough, the application of information technology is limited, still not 
meet the requirements, wishes of enterprises, people; Many models of administrative 
reforms have been effectively unbroadly implemented on the geographical table.
  (4)   The   linking   of   socio­economic   development   between   localities   in   the 
economic zone in the South is also limited, leading to the unspecified mechanism and 
solution in common between HCMC and provinces in the economic zone of the South 
Point to coordinate To solve the key areas in the area linking to the management: 
Master   Plan   of   Socio­economic   development,   general   planning   of   construction, 
development   planning   of   raw   materials,   urban   clusters   development   planning   , 
planning   for   development   of   transport   infrastructure   connection,   development 
planning of economic sectors, investment in infrastructure of the entire region is not 
synchronized,   yet   through   the   training   of   human   resources   and   environmental 
protection zone the most restrictive is the protection of the water environment , Dong 


Nai river system, Vung Tau, Saigon, VAM Lawn and stream system, channel, the 
region.
­ The cause of the limitations and weaknesses 
(1) Objectively, the world economy unpredictable risks, trade war between the 
major economies in the world, among groups of countries in the floor area regional 
and global scale outbreaks in recent years due to fierce competition, divide the market 
affected   region   among   major   economies,   blocks,   groups   of   countries;   political 
situation, regional security and international complicated and unpredictable. 
(2)  Regarding the   subjective   reason  is   due  to  the  capacity  forecast  economic 
situation ­ Social City is limited; mechanisms specific policies under Resolution 54 / 
QH14 issued more than 2 years, but the implementation is very slow so do not promote 
the advantages, potential and resources of the city, far People's Council, city through 

2/14   new   scheme   is   applied   this   mechanism,   12   scheme   also   in   preparation, 
consultation and seminars.

4.3.3. Problems set out in the quality of growth of Ho Chi Minh City in the last  
period
Through the analysis above shows that the city's economic growth has not really 
tied   to   the   quality   of   growth,   the   city   is   in   front   of   the   risk   of   economic   growth 
deficient and declining competitive capacity.

CHAPTER 5
ORIENTATION AND SOLUTIONS TO IMPROVE THE 
QUALITY OF GROWTH IN THE AREA OF HO CHI MINH 
CITY IN THE CONTEXT OF THE IMPLEMENTATION 
MECHANISMS AND SPECIFIC POLICIES.


5.1. The mechanism and policy of special development of Ho Chi Minh City 
has impacted and impacted the quality of economic growth of the city:
Resolution   No.   54/2017/QH   14   on   24/11/2017   of   the   National   Assembly 
(resolution   54   of   Congress)   on   pilot   mechanism,   special   policy   of   HCM   city 
development. HCM is a mechanism of breakthrough policy, synchronization, timely, 
appropriate requirements and development situation of the city in the period 2018­
2020, advancing to 2025­2030 (after 44 year unified country and more than 30 years 
of   innovation),   the   contents   of   land   management,   on   investment   management,   on 
financial management­the State budget and on the authorization mechanism.
5.2. Orientation and objectives to improve the quality of growth in the area 
of Ho Chi Minh City in the context of implementing specific mechanisms
5.2.1. Orientation for improving the quality of growth
Ho Chi Minh City has been adopted by the National Assembly through a piloting 
mechanism, a special policy of city development, which has created the city of high 

self­control and proactive properties to exploit the potential of the city in economic 
development   ,   social,   environmental   protection   and   planning   mechanisms   and 
economic policy effectively to accelerate the pace of development, thereby improving 
the   physical   and   spiritual   life   of   the   city's   people,   while   contributing   more   to   the 
general economic development of the country.
5.2.2. General objective to the year 2020, vision to 2025­2030:
Improving labor productivity, quality of growth and competitiveness of the city 
economy,   attaching   economic   growth   with   cultural   development,   building   happy 
families,   implementing   progress,   social   fair,   environmental   protection;   Improving 
social welfare, innovation and startups, growing faster and more sustainably, leading 
the role in the renovation of the country.
5.2.3. Specific objectives to improve the quality of economic growth
To implement these orientation requires promoting the synergy of the political 
system,   promoting   the   dynamic,   creative,   solidarity   of   the   party   ministry,   the 
Government and the people, mechanisms and special policies of the city. In time to the 
city it is necessary to perform the following specific objectives: