Although Ho Chi Minh City has established cooperative mechanisms with neighbouring provinces and cities, coordination remains voluntary, lacking a strong regulatory body to address interregional issues.

A corner of Ho Chi Minh City.

As a result, each locality follows its own approach, leading to inconsistencies in infrastructure planning, investment attraction, and economic development.

A more effective regional coordination mechanism should be established, possibly in the form of a Regional Development Steering Committee or an authoritative organisation with decision-making power.

This body should not only serve as a connector but also have the authority to approve interregional infrastructure projects, allocate budgets, and resolve conflicts of interest between localities.

For instance, major interregional transportation projects such as Ring Road 3 or the Ho Chi Minh City-Moc Bai Expressway require the involvement of relevant provinces to ensure synchronised implementation.

Another crucial aspect is the need for a dedicated financial mechanism for regional development. The central government could consider establishing an infrastructure investment fund for the Southern key economic region, allowing localities to contribute and use funds flexibly.

This would address the current issue where each locality struggles to secure resources for its own projects, leading to unbalanced development.

With a shared fund, mobilising capital for large-scale projects such as interregional metro systems, seaports, logistics hubs, and key industrial zones would become more feasible.

From an institutional perspective, the central level could issue a resolution or a specific legal framework on regional linkage, clearly defining the responsibilities of each locality in interregional projects, benefit-sharing mechanisms, and financial obligations.

With clear regulatory requirements, provinces and cities within the region would have a collective responsibility, ensuring closer cooperation.

Another issue requiring the central level’s intervention is regional urban planning and land use.

Ho Chi Minh City is facing intense population pressure while neighbouring provinces such as Binh Duong, Dong Nai, and Long An have vast unused land that remains underutilised due to inadequate infrastructure connectivity.

A comprehensive regional master plan, positioning Ho Chi Minh City as the central hub with surrounding provinces as satellite cities, would lead to a more balanced distribution of population, labour, and businesses.

Additionally, the central level should facilitate Ho Chi Minh City in playing a central role in interregional investment promotion policies.

Instead of having each province individually seek investors, a unified mechanism could be established, with Ho Chi Minh City acting as the main gateway, enabling investors to access the entire region more efficiently.

While some investment cooperation models between Ho Chi Minh City and neighbouring localities have been implemented, they remain fragmented and lack a comprehensive strategy.

A well-planned, region-wide investment attraction strategy, combined with tailored incentive policies, would significantly enhance the appeal of the Southern key economic region to both domestic and international investors.