In April 2025, the Vietnamese government approved the decision to merge Ho Chi Minh City with two key neighboring provinces — Binh Duong and Ba Ria–Vung Tau. This is part of a large-scale administrative reform: under this framework, 89 provinces and cities will be reorganized into 34 enlarged administrative units.
The goal of the reform is to improve the efficiency of regional governance and eliminate territorial imbalances in socio-economic development.
📊 For the southern region, this is an event of strategic magnitude:
- The new Ho Chi Minh City will combine an industrial hub (Binh Duong), the country's financial capital (Ho Chi Minh City), and a key logistics hub with deep-water ports (Vung Tau).
- The area of the combined territory will exceed 6,700 km², with a population of 13.7 million people.
- The total GDP of the region currently stands at approximately $114 billion, or 24% of Vietnam's total GDP.
📈 What this means for the real estate market:
- The impact of the reform will be long-term: price alignment, demand growth, and increased liquidity in previously peripheral areas.
- In Binh Duong, where housing prices are currently almost half those in Ho Chi Minh City, a gradual price readjustment is likely.
- The development of transport, industrial, and port infrastructure will serve as a strong driver.
Also as part of the reform, provinces in the Central Highlands, the south, and coastal areas will be merged. This is an important signal for investors: the regional structure is changing, and now is the optimal time to evaluate locations in terms of future growth.