Many see Ho Chi Minh City as a 'boom town'
But not all share in its economic growth
October 17, 1996
Web posted at: 10:15 p.m. EDT (0215 GMT)
In this story:
HO CHI MINH CITY, Vietnam (CNN) -- The former capital
of South Vietnam has a promising future -- or so the
thousands of migrants who flood there each year hope.
Once known as Saigon, the city was renamed Ho Chi Minh City
in 1975, after Vietnamese Communist troops conquered it.
Now, in the era of economic reform, Ho Chi Minh City is
leading Vietnam's recovery from the devastation of war and
the era of communism. Its hardworking population of 5 million
fuels the engine pushing economic growth in what is still one
of Asia's poorest countries.
The city attracts one-third of all international investment in
Vietnam. Ho Chi Minh City's economy is growing at an annual
rate of 15 percent, much faster than in rural areas or in the
Communist heartland of the north.
Le Thanh Hai, deputy mayor for development, is proud of that
record.
"It is true that our city now has a faster pace of economic
development compared to other parts of the country. And of
course, along with that, life for the people is better," he
said.
Ho Chi Minh City's rapid growth has created a boomtown
atmosphere. Per capita income has risen to over $900 a year,
more than four times the Vietnamese average. Consumers with
money are hungry for more material goods.
The city's first bowling alley opened this summer, and
promptly became the chic place for the young to see and be
seen. The boom is attracting people from all over the
country.
Bui Van Bac moved down from the north last year to find a job
as a mechanic.
"I moved south because I want to find new jobs. In order to
find good opportunities for my life," he explained.
But the future is not all bright for Ho Chi Minh City.
Corruption is rife, and good roads, water and power are in
short supply. City officials say they are hoping to cut away
some of the red tape that is hampering investment.
"We've been allowed by the government, starting early this
year, to use a one-door, one-stamp permit system in some
localities," the deputy mayor said.
The benefits of the booming economy also are still to be felt
in many parts of the city where people continue to live in
squalor.
The city expects to create at least 160,000 jobs a year
through the rest of the century, and hopes to attract
$6 billion in job-creating international investment.
But it's an open question whether Ho Chi Minh City will be
able to provide enough work for all the immigrants pouring in
from other parts of the country.
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