Southeast Asia is home to several fast-growing cities, driven by rapid economic development and urbanization. Among them, Hồ Chí Minh City—fknown as Sài Gòn—stands out as Viet Nam’s most dynamic urban center. With its rich history, fast-paced lifestyle, towering skyscrapers, and unique cultural blend, Hồ Chí Minh City (often abbreviated as HCMC) is one of Southeast Asia’s most captivating cities.
Let’s explore the past, present, and future of this rising megacity in Viet Nam.
Rich Historical Tapestry
During French colonization in the 19th century, Sài Gòn became the capital of Cochinchina (southern Viet Nam) and evolved into a key economic and political hub. It was transformed into a major port and metropolitan center filled with villas, grand public buildings, and tree-lined boulevards.
In 1940, Sài Gòn was occupied by the Japanese, although French colonial authorities continued to administer Viet Nam until 1945. Following Japan’s surrender, the Viet Minh organization led by Hồ Chí Minh declared Viet Nam’s independence in Hà Nội.
Soon after, the First Indochina War broke out between Vietnamese forces and French troops, ending in 1954 with the Geneva Conference, which divided Viet Nam into the North and South. From the 1960s to the 1970s, the Second Indochina War (Viet Nam War) erupted, with Sài Gòn serving as the headquarters of U.S. military operations. In 1975, North Vietnamese forces captured the city and renamed it Hồ Chí Minh City, in honor of the revolutionary leader.
This renaming symbolized not only a historical turning point but also the resilience, sacrifice, and determination of Southerners to come back to their homeland.
One of Southeast Asia’s Fastest-Growing Cities
Cities like Bangkok and Kuala Lumpur are known as fast-developing urban centers in Southeast Asia. According to Statista, Hồ Chí Minh City ranked as the second fastest-growing city in the world, highlighting its economic vitality.
Gateway to the South
HCMC plays a vital role as the economic engine of Viet Nam. Located in the Southern Key Economic Region, its strategic position and robust infrastructure have attracted multinational and tech companies. It is also home to some of Viet Nam’s top universities, research centers, and Tan Son Nhat International Airport, the country’s busiest airport.
The government aims to focus HCMC’s development on technology, telecommunications, healthcare, and education, while other regions will develop based on their own demographics and geographic advantages.
In 2024, HCMC’s economy grew by 7.17%, up from 5.8% in 2023, showing a strong recovery and building the foundation for a projected 10% growth in 2025. These numbers reflect not only economic stabilization but also a promising upward trend.
Housing Policy in the Heart of Southern Viet Nam
With a growing population, HCMC faces increasing challenges related to population density. People migrate to the city for work, education, and better living standards, creating high demand for public services, infrastructure, and especially housing.
To address this, the government is investing in social housing for low- to middle-income earners and vulnerable groups such as women, people with disabilities, war veterans, relatives of martyrs, and families affected by natural disasters.
Between 2021 and 2030, the city aims to build 1 million social housing units. From 2021 to 2024, six projects were completed, delivering 2,745 units. In 2025, the city plans to approve investment in five more projects totaling 20,000 units.
The Future of Viet Nam
With clear urban planning, rapid economic growth, and strong market potential, Hồ Chí Minh City has the ability to become one of the wealthiest and most innovative cities in Viet Nam. Attracting investors and gaining public trust will be key to sustainable development. This requires strategic collaboration, stakeholder engagement, and resilient planning.
However, challenges remain. Traffic congestion, pollution, and overcrowding are pressing issues. Demand for infrastructure and public transport continues to grow rapidly.
Looking ahead, the city’s economy could benefit from shifting beyond manufacturing toward knowledge-based industries like finance, technology, and the creative sector. Creating tech hubs and encouraging high-value, innovative businesses will be essential to driving long-term growth.
Sources:
Statista. (2024). The 10 Fastest-Growing Cities on Earth. Retrieved from https://www.statista.com/chart/33200/fastest-developing-major-cities/
Vinpearl. (2024). Meaning of Sài Gòn: The Mystery behind the Old Name of Hồ Chí Minh City. Retrieved from https://vinpearl.com/en/meaning-of-Sài Gòn-historical-and-fun-facts-about-this-city
Britannica. (n. d.). Hồ Chí Minh City. Retrieved from https://www.britannica.com/place/Ho-Chi-Minh-City
Vietnam Investment Review. (2024). The Blueprints to Unlocking Hồ Chí Minh City’s Potential. Retrieved from https://vir.com.vn/the-blueprint-to-unlocking-ho-chi-minh-citys-potential-110859.html#:~:text=The%20city's%20leadership%20has%20been,city's%20infrastructure%20and%20public%20services.
Vietnam Briefing. (n. d.). Hồ Chí Minh City: How Vietnam’s Emerging Megacity Will Develop. Retrieved from https://www.vietnam-briefing.com/doing-business-guide/vietnam/where-to-invest/ho-chi-minh-city-how-vietnam-s-emerging-megacity-will-develop#:~:text=Under%20the%20plan%2C%20the%20central,Ho%20Chi%20Minh%20City%20develop?
Rising Vietnam. (2024). HCM City Strives to Achieve Double-digit Economic Growth Target Next Year. Retrieved from https://english.vov.vn/en/a-rising-vietnam/hcm-city-strives-to-achieve-double-digit-economic-growth-target-next-year-post1145512.vov#:~:text=Positive%20economic%20growth,%25%20and%207.92%25%2C%20respectively.
Vietnamnet Global. (2025). Hồ Chí Minh Prioritizes Women for Social Housing Rentals under New Policy. Retrieved from https://vietnamnet.vn/en/ho-chi-minh-city-prioritizes-women-for-social-housing-rentals-under-new-policy-2381434.html
