Dong Nai’s elevation to centrally governed city: A once-in-a-century opportunity requiring new thinking

The prospect of Dong Nai becoming a centrally governed city, if viewed from the right perspective, is far more than a change in administrative status. Rather, it marks a pivotal moment in which the locality stands on the threshold of transforming from a “successful industrial province” into a “strategic coordination hub” for the expanded Southeast region and Vietnam’s economy in a new phase of development.

Long Thanh International Airport, expected to commence commercial operations by the end of 2026, will serve as a new growth driver for Dong Nai. Photo: Pham Tung.

Therefore, the issue must be approached from a different angle. The question should not merely be whether Dong Nai has met the criteria to become a centrally governed city. More importantly, it should be: what kind of development model will Dong Nai embody once it attains this status? Will it remain a mega industrial province with an urban façade, or evolve into a new type of regional city where flows of goods, capital, services, data, energy and human resources are organized on a larger, more efficient, greener and globally competitive scale?

At present, Dong Nai has essentially satisfied all seven criteria required for centrally governed city status under Resolution 112/2025/UBTVQH15 of the National Assembly (NA) Standing Committee, with a population nearing 4.5 million, an urbanization rate of almost 57%, and the proportion of wards exceeding the prescribed threshold.

Yet precisely at this window of opportunity, Dong Nai is in greater need of a new perspective than ever before. Vietnam’s development history has shown that upgrading administrative status does not automatically translate into stronger development capacity. Without a change in its mindset, the label “centrally governed city” risks becoming merely a broader institutional garment draped over an old economic structure. In such a case, Dong Nai may grow in size without improving in quality; appear more modern on paper without becoming smarter in operation; and expand in population without achieving higher productivity.

This reality calls for candid discussion. For years, many localities have relied on a familiar growth model: expanding industrial parks, enlarging urban areas, attracting more FDI and exploiting land resources. Dong Nai has achieved remarkable success with this approach. However, that very model is now reaching its limits. No locality can sustain growth indefinitely by increasing factory space, container traffic and migrant inflows. As logistics costs rise, land becomes scarcer, environmental pressures intensify and urban living standards decline, quantitative growth inevitably begins to erode qualitative gains.

In other words, what Dong Nai needs at this juncture is not an expansion of the old model, but a transition to a new one. According to the authors, this new model must be built on a clear mindset: Dong Nai should no longer see itself merely as an expanded industrial province, but rather as a platform for coordinating strategic flows across the region.

Phuoc An Port, the largest seaport in Dong Nai, is a key node connecting maritime logistics, inland waterways, and the logistics industries. Photo: Pham Tung.

Why is “the coordination of flows” emphasized? It is because in a modern economy, the strength of a development hub lies less in how much industrial land or how many projects it hosts, and more in its ability to attract, organize, connect and amplify multiple flows. Where goods move, value accumulates. Where capital circulates, economic power gravitates. Where high-value services concentrate, productivity and growth quality emerge. And where skilled talent settles, the future of that locality is written.

From this perspective, Dong Nai is holding a rare opportunity. Long Thanh is not merely an airport; it plays a strategic role in reshaping the entire economic geography of southern Vietnam. Phuoc An is not just a port; it can become a key node for maritime, riverine and logistics industries. Expressways, ring roads and connections to Ho Chi Minh City, the Central Highlands and Hoa Lu International Border Gate are not simply transport projects; they are the “lifeblood” of a new development space.

Dong Nai plans to develop the Dong Nai River corridor axis into an area of new growth driver. Photo: Pham Tung.

However, to convert infrastructure into development power, Dong Nai must avoid a familiar temptation: treating Long Thanh solely as an airport project, Phuoc An merely as a port venture, and urbanization as a real estate expansion story. If this approach is adopted, the province will only create isolated “growth hotspots” rather than a new integrated development system.

What is required instead is a more cohesive development architecture.

First, in terms of goods flows, Dong Nai must shift from being a “transit point” to a “value-adding hub.” Beyond traditional logistics infrastructure, it needs to seriously consider free trade zones (FTZs), bonded warehouses, cold-chain logistics, light assembly, labeling and re-export services, air cargo distribution centers, and logistics services for agricultural and high-tech products. In doing so, goods will not merely pass through Dong Nai; they will generate value within it.

Second, regarding capital flows, a major logistics hub without financial infrastructure risks becoming an efficient transit center for others. Dong Nai should envision an appropriately scaled supply chain finance center, not to compete directly with Ho Chi Minh City’s large international financial center ambitions, but to serve local trade, logistics, manufacturing and import-export activities. Trade finance, supply chain finance, maritime and logistics insurance, currency hedging and fintech solutions for small- and medium-sized enterprises (SMEs) are the financial products it needs most urgently. Without this layer, the “fat” of the value chain will flow elsewhere, leaving Dong Nai with only the “bones.”

Third, service flows represent a traditional weakness for many industrial localities. To escape the low-value processing trap, the economy must be supported by high-value services such as international commercial legal services, inspection and certification, ESG standards, CBAM-related services, arbitration, sector-specific MICE, green transition consulting, technology advisory and innovation services. While Dong Nai neither needs nor should compete with Ho Chi Minh City across all types of consumer services and integrated financial services, it can position itself as a specialized service backbone for the region, particularly for services related to logistics, airport economy, high-tech industry and green trade.

Fourth, urban and human resource flows will determine long-term success. A locality may attract capital for five years and goods for ten, but without attracting and retaining talent or creating a livable environment, its growth will eventually erode. Long Thanh must not simply be a place where people work and leave; it should become a true “airport city.” Phuoc An – Nhon Trach should not remain just a port-industrial cluster, but should evolve into a “seaport city.” The Dong Nai River corridor should move beyond scenic value to become a “river city” integrated with culture, tourism, services and quality of life.

In other words, if Dong Nai becomes a centrally governed city, it must follow a new development logic: logistics integrated with urban development, finance embedded in trade, energy linked to industry, data underpinning governance and culture aligned with growth strategy.

Notably, Dong Nai is also opening a totally new development axis: the hydrogen economy. Provincial leadership has called for coordinated implementation of hydrogen development strategies, promoting energy transition, emissions reduction and the formation of a clean energy hub in Southern Vietnam.

This is a crucial strategic signal. Why? It is because if Dong Nai remains solely an industrial-logistics hub, it will continue competing on location and infrastructure. However, by integrating logistics with hydrogen, airport economy with green industry, and urbanization with Net-zero standards, its competitive advantage will rise to a new level. It will become not only a fast logistics hub, but also a node in a low-carbon supply chain aligned with global trends.

Dong Nai has strong industrial foundations and is shifting toward high-tech industries. Photo: Workers on a production line at Dong Phu Cuong JSC, Phu Cuong Industrial Cluster, Thong Nhat commune. Photo: Pham Tung.

From this standpoint, according to the authors, at least five key groups of policies stand out that Dong Nai must pursue decisively if its elevation to a centrally governed city is to be truly meaningful.

The first group is special institutions. Dong Nai cannot rely on the governance toolkit of a traditional industrial province. It needs tailored policies for FTZs, supply chain finance, transit-oriented development (TOD), underground infrastructure, low-altitude space, data governance and technology sandboxes. Without robust institutional frameworks, Long Thanh risks reverting to a narrow airport–real estate model; with the right institutions, it can anchor an entirely new development paradigm.

The second group is flow-based planning rather than static territorial planning. Every planning from now on must answer three questions: What flow does it generate? How does it connect to other flows? And what value does it retain locally? A road is not merely a road; it is the lifeblood of a value chain. An urban area is not merely housing; it is a platform for organizing labor, services and quality of life. A data platform is not just a technological tool; it is the brain of development governance.

The third group is strategic investment promotion packages. Instead of fragmented sectoral promotion, Dong Nai should build integrated packages such as FTZ-logistics-cold chain, airport economy, supply chain finance, hydrogen and clean energy, and smart urban-tech infrastructure ecosystems. When investors see an ecosystem, they recognize opportunities on a far greater scale than when they see fragmented, standalone projects.

The fourth group is a new brand positioning. Dong Nai must move beyond the outdated image of a “large industrial province” and reposition itself nationally as a “logistics – green energy – airport economy hub,” and internationally as an “emerging green supply chain and airport economy hub.” A locality can only truly enter a new phase of development when it is able to tell a new story about itself.

The fifth group is data-driven governance. A next-generation centrally governed city cannot rely on delayed reporting and fragmented directives. Dong Nai should adopt digital twin models for logistics, urban systems, environment and investment. Whoever controls data controls flows; and whoever controls flows shapes the future.

Analysis suggests that Dong Nai must pursue centrally governed city status through a new development scheme, with a new commitment to the Central government and the entire nation:not just bigger, but more modern;  not only richer, but greener; not only more populous, but more productive; and not only more administratively empowered, but more valuable to the national economy.

If achieved, Dong Nai could become not merely another centrally governed city of Vietnam, but the first model of a post-industrial regional urban system nationwide, where airports, logistics, green industry, supply chain finance, data and quality of life converge in a unified development structure.

The opportunity is real, yet the window of time is limited. Central policy has been set, Long Thanh is taking shape and hydrogen is on the agenda. What remains is whether Dong Nai is ready to embrace new thinking for a once-in-a-century opportunity.

At this juncture, it is fair to describe the moment as a historically significant turning point, opening unprecedented opportunities for the province.

Becoming a centrally governed city is not merely a change in designation, but a confirmation of status. Dong Nai now enjoys a convergence of favorable timing, strategic location and harmonious human relations. With its role as a gateway to the southern key economic region, rapidly developing infrastructure linked to Long Thanh Airport, and a solid industrial-logistics base, it is well positioned to restructure its growth model—from expansion to depth, from assembly to advanced manufacturing and high-value services.

Moreover, this is an opportunity for Dong Nai to upgrade development quality, modernize urban infrastructure, attract substantial domestic and international resources, and establish high-tech industrial, logistics and large-scale commercial-service centers. If leveraged effectively, the province could emerge as a new national and regional growth pole, leading supply chains and strengthening global connectivity.

From the perspective of the young business community, this is indeed a “golden moment.” Achieving centrally governed city status would grant Dong Nai greater autonomy in investment attraction and resource allocation, opening doors for young enterprises. There is strong expectation that a new urban governance model will deliver tangible improvements, not only in management but also in overall socio-economic development, with more breakthrough policies supporting innovation and startups.

Transport infrastructure in Dong Nai has seen strong development in recent years. (Photo: Phan Thiet – Dau Giay Expressway, put into operation in late April 2023). Photo: Pham Tung.

There are also expectations for growth that is not only fast, but also efficient, high-quality and sustainable, with the emergence of high value-added spearhead economies elevating Dong Nai into a modern industrial, logistics and service hub. The business community anticipates a streamlined two-tier governance system, faster administrative responses and shortened investment procedures—key competitive advantages. Equally important is a transparent, innovation-driven and digitally connected business environment.

With the government taking the lead in digital transformation and urban governance reform, there is hope for a transparent ecosystem that supports enterprises. Beyond economic prosperity, Dong Nai is expected to become a truly livable city - smart, sustainable and capable of attracting and retaining talent and international experts.

As Dong Nai transforms, residents will undoubtedly benefit from higher incomes and improved quality of life, with better transport, healthcare, education and housing, alongside a greener, cleaner and safer environment befitting a modern city.

With determination and correct leadership direction from the Provincial Party Committee, People’s Committee and local authorities, the dynamism of the business community and public consensus, we believe that Dong Nai is well positioned to seize this historic opportunity and achieve faster, more sustainable growth towards a new height.

By L.X.Minh, H.H.D Nghia – Translated by M.Nguyet, Thu Ha