Economic Scale of Localities After the Merger
- Virtus Prosperity
- Apr 18
- 3 min read
According to Resolution 60 of the 11th Conference of the 13th Party Central Committee, the Central Committee has agreed that the number of provincial-level administrative units after the merger will be 34 provinces and cities (including 28 provinces and 6 centrally-governed cities). As a result, the economic scale of localities following the merger is expected to undergo significant changes.
Ho Chi Minh City: The Economic Powerhouse Stronger Than Ever
As the consistent “locomotive” of Vietnam’s economy, Ho Chi Minh City (HCMC) is undergoing a substantial transformation in its economic scale following the merger with Binh Duong and Ba Ria – Vung Tau provinces. Previously accounting for about 15.5% of the national GDP, the city’s share is expected to rise to nearly 24% post-merger.
In comparison, the GRDP (Gross Regional Domestic Product) of HCMC after the merger is nearly double that of the capital Hanoi. The city's economic scale is also twice as large as the combined total of the six newly merged localities in the Southwest region. The difference in state budget revenue between the “new version” of HCMC and the smallest economy, Dien Bien, reaches a staggering 423 times.
The merger of two provinces—key hubs of industrial production and southern tourism-services—has further cemented HCMC’s role as the "backbone" of the national economy. However, the gap between HCMC and major regional cities remains significant. Its economic scale stands at approximately USD 68 billion, while cities like Bangkok, Jakarta, and Manila range between USD 130–250 billion, and Singapore tops out at USD 561 billion.
Fluctuations in Economic Scale of Provinces After the Merger
Provinces and cities post-merger are also seeing considerable changes in their economic rankings. Hai Phong, after merging with Hai Duong, has risen to third place in terms of economic scale, while Quang Ninh—without any merger—has been surpassed by other provinces such as Bac Ninh and Phu Tho. Lam Dong, which previously was mid-ranked, has climbed into the top 10 localities with the largest economies after merging with Binh Thuan and Dak Nong.
In this context, Northern and Central provinces post-merger are projected to have economic scales 2 to 5 times larger than before. For instance, Ninh Thuan’s economy will triple in size after merging with Khanh Hoa, while Dak Lak will see a 3.2-fold increase after merging into Phu Yen.
The localities with the smallest economies after the merger are those with no change in administrative boundaries, including Cao Bang, Lai Chau, Dien Bien, Lang Son, Son La, and Hue City.
GRDP Per Capita: Quang Ninh Rises to the Top
Quang Ninh is currently leading the country in GRDP per capita, reaching VND 249.3 million. This is a remarkable achievement compared to other centrally governed cities such as HCMC, Hanoi, and Hai Phong, which follow with VND 199 million, VND 164 million, and VND 160 million, respectively. Ba Ria – Vung Tau, which previously held the top spot in this metric, will now be merged into HCMC.
Hue City, one of the six centrally governed cities, shows a significant gap in economic scale, state budget revenue, and GRDP per capita compared to the other five cities.
Meanwhile, provinces with the smallest economic scales post-merger, like Cao Bang and Dien Bien, still have GRDP per capita figures ranging between VND 45–50 million.
Boost in Budget Revenue and FDI Attraction
With its large economic scale, HCMC maintains its leading position in domestic budget revenue. In 2023, HCMC collected approximately VND 395.11 trillion, significantly higher than Hanoi’s VND 381.45 trillion. Other cities like Hai Phong, Da Nang, Can Tho, and Hue collected less than VND 100 trillion each.
In addition, HCMC also led the nation in attracting foreign direct investment (FDI), reaching USD 8 billion in 2023, far surpassing other cities such as Hai Phong (USD 4.93 billion), Hanoi (USD 643 million), and Da Nang (USD 261 million). This not only reflects HCMC’s strong appeal to international investors but also underscores its vital role in driving the national economy.
Goods Exports: HCMC Continues to Lead
In terms of goods exports in 2023, preliminary data from the Customs Department shows that HCMC remained the leader, with export turnover reaching nearly USD 79.12 billion—higher than the combined total of Hanoi (nearly USD 16.66 billion), Hai Phong (over USD 36.25 billion), Da Nang (nearly USD 3.68 billion), Can Tho (nearly USD 3.7 billion), and Hue (nearly USD 1.12 billion).
Accordingly, the estimated export turnover of the six centrally-governed cities is approximately USD 140.52 billion, accounting for 39.61% of the country's total export turnover in 2023.
Comments