Biology of Business

Ho Chi Minh City

TL;DR

Still called Saigon by residents, HCMC generates 23% of Vietnam's GDP through a river-delta niche that survived colonialism, war, and central planning.

By Alex Denne

Saigon fell on 30 April 1975. It was renamed Ho Chi Minh City, but most residents still call it Saigon—a quiet act of cultural transmission that reveals the limits of political rebranding. The city generates roughly 23% of Vietnam's GDP and contributes over 27% of national budget revenue from a population of approximately ten million, making it the economic organism that the political capital Hanoi depends on but cannot fully control.

The pattern is ecological succession compressed into decades. French colonial Saigon built the port, rail, and boulevard infrastructure. The American era (1955-1975) layered on military logistics, English-language education, and commercial networks. Post-reunification, the city stagnated under central planning until Doi Moi reforms in 1986 triggered a phase transition: foreign direct investment flooded in, and Ho Chi Minh City became Vietnam's manufacturing and export gateway. Samsung, Intel, and hundreds of Taiwanese, Japanese, and Korean firms operate factories in the city's industrial zones, with electronics now the top export category.

The Mekong Delta to the south functions as a source-sink system: agricultural labour migrates to the city's factories while remittances flow back to rural provinces. Ho Chi Minh City's Districts 1 and 3 concentrate financial services and luxury retail in the old colonial core, while Districts 7, 9, and Thu Duc have been consolidated into Thu Duc City—a 'city within a city' modelled on Shenzhen, designed to house the tech and innovation economy.

The biological parallel is an organism that has been wounded, renamed, and restructured multiple times yet keeps growing because its geographic niche—a river delta port connecting the South China Sea to the Mekong interior—is irreplaceable. Ho Chi Minh City's metabolism runs on foreign capital and cheap labour, but rising wages and infrastructure strain are forcing another adaptation. The organism that survived French colonialism, American war, and communist central planning now faces the more mundane challenge of traffic gridlock and flooding from subsiding land.

Key Facts

14.0M
Population

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