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This research paper is focused on analyzing situation of economic development in Ho Chi Minh City after nearly 30 years implementing economic reform policies in Vietnam to specify the position and role of Ho Chi Minh City economy in comparison with the whole nation’s. In this research, we applied qualitative method with data description and economic development indicators comparison. Data are secondary data which were obtained from Statistic Yearbooks of Vietnam and Ho Chi Minh City in TẠP CHÍ PHÁT TRIỂN KH&CN, TẬP 17, SỐ Q3-2014 Trang 27 periods 1990/2000/2005-2013. Results indicate that the Ho Chi Minh City economy remains the Vietnam’s largest which accounts for more than 20% GDP and a third of the national budget. The annual economic growth and average income per capita are 2-3% and two times higher than those of Vietnam respectively. The poverty rate is also the lowest in the country. Factors that positively affect the Ho Chi Minh City economic growth are capital and labor as reflected by higher productivity and efficiency (specifically Ho Chi Minh City’s ICOR is 1.5-1.78 times lower than Vietnam’s and laborproductivity is two times higher than that of Vietnam) and the greater contribution of the capital and labor factors to the economic growth. However, there are signals that Ho Chi Minh City economic growth is unsustainable, including (1) slower export volume and FDI; (2) reduced weight of industry sector, especially the slow growth of key high-technology disciplines; (3) the downgrading of the urban environment quality which reduces the green GDP growth; and (4) the gradual decrease of the total factor productivity (TFP) and its very small contribution to the Ho Chi Minh City economic growth. Based on the results, this paper suggests some solutions to a sustainable development for Ho Chi Minh City in the next period.

HO CHI MINH CITY ECONOMY IN RELATION TO THE VIETNAMESE ECONOMY AND FACTORS AFFECTING HO CHI MINH CITY ECONOMIC GROWTH