Informal economy in Ho Chi Minh City, Vietnam: urban livelihoods and policy issues

Abstract

This paper investigates the informal economy in urban Ho Chi Minh City through field research conducted since 2022, focusing on three representative groups of workers: street vendors, motorbike taxi drivers (both traditional and app-based) and small-scale sidewalk businesses. Drawing on 32 semi-structured interviews and participant observation, the study reconstructs the adaptive yet precarious urban livelihood strategies of informal workers. Findings reveal that this sector not only provides essential income for a significant portion of the urban population, particularly migrant and low-skilled labourers, but also plays a vital role in sustaining everyday urban life and local social relations. Nevertheless, informal workers face increasing pressure from rigid urban redevelopment policies and misaligned administrative regulations. The paper argues for a re-conceptualisation of the informal economy as an integral component of the urban socio-economic structure, deserving of recognition and support through flexible, context-sensitive and human-centred approaches to policy issues, thereby fostering sustainable and inclusive urban development.