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Many see Ho Chi Minh City as a 'boom town'

vietnam

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.

Material possessions

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.

The down side

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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