More than 20 years of economic reform has resulted in remarkable achievements in the Vietnamese economy. Examples include the economy’s high growth rate relative to the region, an economic structure that is moving towards an industrial base, an economy that participates in more world trade, an improving standard of living, increasing income per capita, and reduced rates of poverty rate. Many of these achievements can be traced to the decisions of the Vietnam Communist Party and governmental initiatives that have led the country from a planned economy to a market economy based on multi-sector economy as well as to the motivation of the Vietnamese people themselves. This period has also been one of experimentation and a search for new mechanisms of governance appropriate to Vietnam. Many contributions to this process stem from local governments. In particular, Ho Chi Minh City contributes not only the highest share of GDP but also helps planners, policy makers create new policy, new economic experiments, new models and mechanisms for economic management, and new markets for the transition economy. This paper discusses two main points: (1) Ho Chi Minh City’s contribution to economic reform and development in Vietnam, and (2) Ho Chi Minh City’s contributions to the Vietnamese economy. The contributions of Ho Chi Minh City in establishing new policies for Vietnam economic reform and economic development propulsion process include: (1) Giving state enterprises autonomy. From Decision No 217-HDBT (November 1987) to directives of ministries, the autonomy of state enterprises was expanded in such aspects as planning production and trade; securing materials and manufacturing techniques; marketing products and fixing prices, finance and accounting, money, credit, labor, and salaries. (2) Implementing the state owned enterprises (SOEs) reform program, including the privatization, incorporation, or liquidation of a number of SOEs. (3) Developing a multi-sector economy, especially establishing Private Business and Company Laws ( now was combined into Business Law and Investment Law); (4) Attracting foreign investment by establishing a new industrial zone, infrastructure fund and ‘changing land by infrastructure’, applying BOT form of domestic investment for infrastructure development; (5) Reducing administrative formalities ; (6) Creating new programs to eradicate hunger and poverty. Ho Chi Minh City has played an important part in developing the economy of the country. As the largest economic center in Vietnam, Ho Chi Minh City has always been a leader in the economic growth of the country. Currently, Ho Chi Minh City has about 6% of the nation’s population and 5% of its labor force. Yet, the city accounts for more than 22% of Vietnam’s GDP. With high shares in sector II (industry) and sector III (trade and services) Ho Chi Minh City’s economy is helping Vietnam move to an industrial economy. In fact, Ho Chi Minh City’s manufacturing gross value accounts for approximately 36% of the total value of the country. Similarly, exports from the city account for nearly 40% of nation’s total, and its annual contribution to the national budget is more than 33%. Currently, FDI in Ho Chi Minh City accounts more than 30% of total FDI in Vietnam by investment value. The poverty rate has also been reduced. Finally, according to the Living Standards Survey, the number of people below the poverty line was reduced from 58.1% in 1993 to 28% in 2003 in Vietnam. The current poverty rate in Ho Chi Minh City is now only 2%.