Ho Chi Minh City

Ho Chi Minh City demonstrates the power of economic phase transitions. Before 1986, Vietnam was a virtually closed, centrally-planned agrarian economy. The Doi Moi reforms triggered what biologists would recognize as an adaptive radiation—rapid diversification into new economic niches once barriers fell. Real GDP grew 6.7% annually from 1990 to 2023, and the urban population share doubled from 20% to 40%.

The city now anchors a mega-region (including Binh Duong and Ba Ria-Vung Tau) that generates 25% of Vietnam's GDP with $108 billion in output. As of late 2025, Ho Chi Minh City leads the nation with $141.9 billion in cumulative FDI across over 20,000 projects. Per capita income reached $7,800 in 2024, targeting $8,500 by end of 2025. Singapore, South Korea, and Hong Kong are the largest investors.

What makes Ho Chi Minh City's growth particularly interesting is its position in the "China+1" strategy. As multinational firms diversify production beyond China, Vietnam has become a prime beneficiary—industrial capacity expanded 116% over the past decade, outpacing regional peers. Manufacturing now accounts for 24% of national GDP and attracted 66.9% of 2024's FDI. The city aims to become an international financial center, essentially replicating the development trajectory that Singapore followed decades earlier.