The Contribution of Human Capital and Production Factors to the Economic Growth of Ho Chi Minh City

The study investigates the extent to which human capital and production factors (physical capital and total factor productivity) contribute to economic growth in Ho Chi Minh City (HCM City) from 2011 to 2023, using an extended Cobb - Douglas production function. The findings reveal that physical capital contributes an average of 67.10% to GRDP growth, labor (representing human capital) accounts for 18.27%, and total factor productivity (TFP) averages 14.63%, serving as a critical “shock absorber” during periods of uncertainty. Notably, TFP exhibits significant volatility, underscoring the pivotal role of knowledge and innovation in crises. To sustain growth, HCM City should improve the quality of the labor force, align human resource development policies with investment promotion strategies, encourage research and the development of business incubators, integrate social and economic policies, and transition to a growth model based on knowledge, technology, and innovation.