During the 2026-2030 period, Ho Chi Minh City (HCMC) aims for the digital economy to account for 30-40% of GRDP; total social expenditure on research and development (R&D) to reach 2-3% of GRDP; and at least 4-5% of annual budget spending to be allocated to science, technology, and digital transformation. These targets are set to position the city as a leading regional and global center for economics, finance, and science-technology.
To achieve these goals, HCMC plans to:
(1) establish a multifunctional high-tech center including innovation, Artificial Intelligence (AI), Geographic Information System (GIS), and semiconductors, and a High-Tech Industrial Park;
(2) develop high-quality education and healthcare systems;
(3) strengthen the commercialization of research outcomes by supporting technology refinement, testing, product standardization, and the protection and exploitation of intellectual property;
(4) design a distinctive digital-economy development model tailored to the characteristics of a dynamic, innovative megacity and the nation’s largest economic hub; and
(5) establish dedicated task forces to provide timely and direct support to strategic investors.
However, the city leaders acknowledge persistent challenges, particularly the lack of a fully coherent institutional framework and difficulties in attracting and retaining high-tech talent. To address these issues, the draft amendments to Resolution 98 propose several breakthrough mechanisms, including allowing a 200% deduction of actual R&D expenses for corporate income tax purposes and applying a preferential 10% tax rate for 20 years, with a four-year tax exemption for new projects in the semiconductor industry, AI, R&D centers, new materials, semiconductor materials, and other high-tech supporting industries located in the Free Trade Zone (FTZ). Once the amended Resolution 98 is adopted, the city will have a stronger foundation to accelerate research in emerging fields such as AI, semiconductors, high technology, energy infrastructure, digital infrastructure, and petroleum technology, thereby creating new growth drivers for the future.
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Reference: Sai Gon Giai Phong, 2 December 2025
