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Abstract
In the context of implementing the two-tier local government model from 2025, urban economic development has become a crucial requirement for Hue City — a centrally governed municipality characterized by its heritage, cultural, and ecological identity. This paper analyzes the current state of urban economic development in Hue City during the 2021–2025 period in relation to the transformation of the local governance model. The study employs statistical analysis, synthesis, comparative analysis, and policy analysis methods based on data collected from Statistical Yearbooks, socio-economic reports of Hue City, and relevant policy documents.
The findings indicate that Hue’s urban economy has achieved positive progress in terms of economic growth, industrial restructuring, infrastructure development, and digital transformation. However, several limitations remain, including the relatively small economic scale, the quality of growth, limited urban spatial connectivity, and governance efficiency. Based on these findings, the paper proposes several policy recommendations focusing on institutional improvement, growth model innovation, infrastructure development, digital transformation, and enhancement of governance capacity in order to promote modern and sustainable urban economic development under the implementation of the two-tier local government model.