Investing in Greater Ho Chi Minh City offers potential for high-quality returns.

In a significant move, the southern region of Vietnam, consisting of Ho Chi Minh City, Binh Duong province, and Ba Ria-Vung Tau, is being merged into a single mega-urban region. This merger, initiated by the head of government Pham Minh Chinh, aims to deliver a metropolitan economy that can deliver scale with reliability.

The merger will unlock three key levers. Firstly, infrastructure can be planned as a network, solving logistics friction by planning corridors for the whole metropolis, aligning timelines, promoting intermodality, and setting measurable targets for truck turn-times, customs clearance, and port productivity. Secondly, administration can move to one digital window, harmonising regulations, resulting in a single promotion strategy, common environmental and fire-safety standards, shared data across departments, and a digital one-stop system for licensing and inspections. Lastly, the talent market can widen, aiming to increase the number of skilled workers, upgrade their skills faster, and retain them by creating one labor market and linking universities and vocational schools to industrial curricula in Binh Duong and logistics operations in Ba Ria-Vung Tau.

Each region will bring its unique strengths to the table. Ho Chi Minh City, known for its top universities, venture builders, and a sophisticated consumer base, will provide a strong foundation for the knowledge economy. Binh Duong, with its master-planned estates, reliable utilities, and pragmatic local governance, will offer a conducive environment for industries. Ba Ria-Vung Tau, known for its deepwater ports and logistics capacity, will play a crucial role in the region's logistics and trade activities.

International talent remains part of the equation, and the region should lower friction for domain experts to come, transfer know-how, and train local teams by providing clearer rules, faster processing, and multi-year visas for high-skill roles.

However, growing pains are expected during the implementation of the merger, including challenges in land acquisition, project sequencing, and ensuring synchronization of connectors and operating protocols. Mitigation of risks can be carried out through linking capital to milestones, choosing park operators with a track record of permitting and utilities, designing portfolios so a delay in one submarket doesn't halt the value chain, and budgeting for training.

Quality-of-life investments such as schools, healthcare, culture, and green space are crucial retention tools as cities compete on lifestyle as much as on wages. If executed correctly, Greater Ho Chi Minh City will not just be bigger on a map, but it will be better in investor portfolios.

Jack Nguyen, the CEO of Incorp Vietnam, emphasises the importance of reducing friction points and creating a larger, more coherent market with predictable rules for investors. The merger aims to solve the limitations of each region, such as Ho Chi Minh City's space and congestion issues, Binh Duong's lack of a seaport, and Ba Ria-Vung Tau's need for more value-add manufacturing and services.

In conclusion, the merger of Ho Chi Minh City, Binh Duong, and Ba Ria-Vung Tau is Vietnam's most serious attempt yet to turn a cluster of strengths into a single, investable story. It gives the south its best chance to convert potential into performance, and the task now is disciplined execution.

Investing in Greater Ho Chi Minh City offers potential for high-quality returns.