VNG chairman urges HCMC to focus tech resources on solving major challenges

Minh was speaking in the group discussion session held at the Ho Chi Minh City People's Council on Sept. 21 to addressed issues spanning urban planning, public budgets, energy, science, technology, education, and healthcare.

Minh started by saying speaking as a municipal delegate was a new experience for him.

He said his primary goal was to offer constructive inputs from the vantage point of a technology business.

Weighing in on the city's strategy to develop international-standard research hubs, he pointed out that the policy's biggest shortcoming is the failure to clearly define expected deliverables relative to the substantial funding proposed.

VNG Chairman Le Hong Minh addresses a group discussion at the Ho Chi Minh City People's Council on Sept. 21, 2026. Photo by An Phuong

Under the strategy, the city plans to select four organizations annually, task each with running at least one science, technology, and innovation initiative backed by an average budget of VND100 billion (US$3.9 million).

The total projected spending over five years is approximately VND2,000 billion.

Minh said: "When committing a budget of that scale, we must clearly answer what the city expects to gain in return and what concrete results it hopes to achieve. That accountability needs to be spelled out directly in the resolution."

He noted that while establishing quotas for published papers, technical reports, and research outputs is necessary, it is insufficient, and instead the city should deploy its scientific and technological resources to solve its own pressing challenges, such as traffic congestion, electric vehicle infrastructure, and digital urban management.

"Research and technology initiatives should set specific targets aimed directly at solving the city's problems."

He said policymakers need to pivot decisively from distributing piecemeal grants to isolated projects toward pooling funding for major strategic priorities.

"Instead of scattering modest funds across dozens of programs, the city ought to concentrate its capital on a handful of high-impact initiatives."

While minimal grants can generate theoretical reports, delivering tangible solutions that improve daily life requires focused, undivided investment, he said.

After reviewing two draft resolutions offering corporate and personal income tax breaks for innovative startups and introducing support mechanisms for global-caliber research centers, Minh said: "Ho Chi Minh City is starting off somewhat cautiously."

While the Urban Development Law opens up a vast policy sandbox for the metropolis, he noted that the current drafts focus heavily on procedural mechanics, spending caps, and payment guidelines—essentially "how to disburse the funds"—rather than articulating the transformative outcomes the city hopes to secure with its resources.

"From a business standpoint, I have to ask: What is the bottom-line result of all these policies? Right now, I still do not see that clearly enough."

Regarding tax incentives for innovative ventures, he argued that city officials should look beyond simply assisting early-stage enterprises, framing the policy instead as a broader regional race to attract top tech firms and elite talent.

Key tech and semiconductor executives view personal income tax exemptions as essential for attracting top talent. However, despite existing national laws granting these incentives, Ho Chi Minh City cannot enforce them until specific local regulations are issued.

In contrast, Da Nang issued and applied its own local implementation rules back in July 2025, he said.

The draft resolution's ambitions must be scaled up, he declared. Ho Chi Minh City needs to benchmark itself against peer localities so that its policies remain at least as competitive as others if it hopes to win over major businesses and high-caliber specialists.

A semiconductor laboratory at the Research and Development Center inside the Ho Chi Minh City High-Tech Park. Photo by Quynh Tran

He also referred to compensation caps for science and technology personnel, noting that the city's draft proposal caps monthly pay at VND150 million for certain positions.

In contrast, updated government regulations allow monthly compensation of up to VND300 million for chief architects spearheading strategic technology initiatives.

Commenting on this disparity, Minh said Ho Chi Minh City is the country's primary economic, scientific, and technological hub, and tackling its toughest urban hurdles would require enlisting the nation's best minds.

If central authorities have already established a higher benchmark, the city should match it at the very least, he said.

"I believe the city needs to be bolder with these policies."

Tran Thi Minh Hanh, party secretary and chairwoman of the of Chanh Phu Hoa Ward People's Council, pointed out that previous science, technology, and innovation aid schemes were hindered by burdensome paperwork and convoluted administrative steps.

These made it exceptionally difficult for institutions, individuals, and businesses to finalize applications and receive support, she said.

She urged the city to design a streamlined fast-track procedure, especially for organizations and individuals offering actionable scientific and technological solutions.

She also recommended that city authorities should increase policy outreach to intended beneficiaries, making sure that eligible organizations, innovators, and enterprises are fully aware of available programs, know how to apply for them, and could easily get government support.