After more than two hours of discussion, Chairman of the Ho Chi Minh City People's Committee Phan Van Mai made this statement while delivering a closing speech at the 2024 Friendship Dialogue with the theme ‘Industrial transformation: Development experience and cooperation priorities’. He said that through this program, participating localities have better understood each other's transformation journey, gained valuable lessons, nurtured bilateral and multilateral cooperation initiatives, and fostered friendship between localities.
Chairman of the Ho Chi Minh City People's Committee Phan Van Mai also approved the Chairman's Statement of the 2024 Mayors' Conference.
The Statement was issued in recognition of the necessity for industrial transformation as well as acknowledge that localities are integral components of the international community that must evolve to achieve sustainable development. The statement clearly makes people understand that international cooperation is essential to enhance advantages and mitigate constraints of this process.
Parties arrived at an agreement to enhance relationships and foster a collaborative atmosphere to facilitate industrial change in regions, emphasizing sustainable growth and innovation as well as regularly exchange knowledge, experience, and mobilize resources to solve common challenges.
In addition to acceleration of projects, it is necessary to promote bilateral and multilateral projects and initiatives, focusing on developing new technologies, digital transformation, green, circular and industrial transformation that positively contribute to the industrial ecosystem of each locality.
Furthermore, parties also agreed to establish focal points in localities to promote cooperation in industrial transformation. Plus, they also agreed to establish focal points in localities to facilitate cooperation in industrial transformation.
Earlier, speaking at the conference, Chairman of the Ho Chi Minh City People's Committee Phan Van Mai stated that according to the Organization for Economic Cooperation and Development (OECD), industrial transformation has become a global trend, with investment in high technology and digital expected to reach about US$1.5 trillion by 2030. All people are living in a period of profound industrial transformation, where innovation and sustainable development become decisive factors for success.
He emphasized that the industrial transformation in Ho Chi Minh City is not merely a choice but a pressing necessity for the city itself and for urban centers worldwide. Facing with the dual pressure of maintaining economic growth while meeting increasingly stringent environmental and social responsibility standards, innovation and adaptabilities are a must. Ho Chi Minh City's industrial transformation journey is driven by both internal drivers and global trends.
Though the current proportion of high-tech industries accounts for only about 23 percent of the city's total GDP, city government desire to increase this proportion to 40 percent by 2030, thereby not only maintaining the city's contribution to the national economy but also consolidating the city's leading position in the country and the region while it can maintain competitiveness and sustainable development. In order to achieve this goal, Ho Chi Minh City must transition from conventional industries to high-tech and high value-added industries.
A significant global trend is emerging in the international market, emphasizing sustainable and responsible production practices. A report from McKinsey & Company indicates that approximately 70 percent of multinational corporations have pledged to cut their carbon emissions by a minimum of 25 percent by the year 2030. Recent free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), establish elevated standards that connect trade with sustainable development. Consequently, to sustain a robust position in the global market, Ho Chi Minh City must align with these standards.
According to the Chairman of the Ho Chi Minh City People's Committee, the city has applied a dual strategy, combining green transformation and digital transformation. Accordingly, it focuses on developing high-tech industries, investing in automation, smart factories, and advanced manufacturing technology to upgrade the value chain.
The International Labor Organization (ILO) has published a report indicating that advancements in automation and high-tech solutions could boost labor productivity by as much as 30 percent over the next decade. This shift is expected to decrease reliance on natural resources and improve overall competitiveness.
Based on a report from the Ministry of Science and Technology, embracing digital technologies like artificial intelligence (AI), the Internet of Things (IoT), and Big Data has the potential to lower production costs by as much as 20 percent and minimize carbon emissions by up to 15 percent per unit of product.
He pointed out that the southern largest city aims to build a sustainable, inclusive, and resilient economy that can serve as a model for other localities. Nevertheless, achieving the desired outcomes is a journey that requires collaboration and cannot be accomplished in isolation.
In addition, studies carried out by the World Economic Forum (WEF) indicates that approximately 60 percent of successful industrial transformation initiatives stem from collaboration among governments, businesses, and individuals, both at the national and international levels. This underscores the significance of today's conference. It serves as a platform to exchange knowledge, share effective practices, and identify new avenues for collaboration.
He said that he feels confident that thanks to concerted efforts, the city can thoroughly develop innovative solutions to the challenges posed by industrial transformation. Whether it involves technology transfer, investment in green and digital infrastructure, or fostering partnerships and joint ventures in high-tech sectors, there are numerous opportunities to work together and advance sustainable development, Chairman Phan Van Mai stated.
The city officials promise to be a good partner with communities in the globe because they think that by fostering a culture of friendship and collaboration, all can not only accomplish shared objectives but also create a brighter future for all people. It is hoped that the 2024 Friendship Dialogue will provide more chances for communities, companies, and individuals to interact and work together to grow stronger more.
