HO CHI MINH CITY, Vietnam — Ho Chi Minh City continues to assert its dominance as the country's primary magnet for Foreign Direct Investment (FDI), signaling strong global investor confidence. According to the Ministry of Finance, while Vietnam attracted over $4.33 billion in registered FDI, the southern metropolis accounted for a significant portion of this influx.
Leading in Volume and Value
The city is not just attracting capital; it is driving activity. Ho Chi Minh City currently accounts for 35.5% of all new FDI projects nationwide.
The investment profile is diverse and robust:
• New Projects: 282 projects with a total capital of nearly $1.29 billion.
• Capital Adjustments: 137 existing projects increased their investment by a staggering $2.73 billion.
• M&A Activity: 260 capital contribution and share purchase transactions valued at approximately $323 million.
The sharp rise in adjusted capital suggests that existing investors are doubling down on their operations, reflecting a trend towards selective, high-quality investment.
Manufacturing Remains King
Despite the city's bustling service sector, the Processing and Manufacturing industry remains the "Golden Destination" for foreign capital.
• Manufacturing: Attracted $3.09 billion, accounting for a massive 71.3% of total foreign investment in the city. This aligns with the city's strategic pivot toward high-tech industry and modern production.
• Real Estate: Ranked second, pulling in over $1 billion (23.5% of total capital).
The Race: South Korea vs. Singapore
The data reveals a tight race between Asian economic powerhouses for a foothold in Vietnam's commercial hub.
• South Korea: Retains the top spot with $1.25 billion (28.9% of total capital), driven largely by capital expansions in existing projects.
• Singapore: A close second with $1.24 billion (28.7%), highlighting the fierce competition between these two key partners.
• China: While ranking lower in total capital, China leads in the number of new projects, demonstrating the agility and dynamism of Chinese enterprises in tapping into the local market.
Future Outlook: High-Tech and Sustainable
City officials attribute this sustained momentum to aggressive improvements in the investment climate, infrastructure upgrades, and administrative digitalization. Looking ahead, Ho Chi Minh City is pivoting its strategy to prioritize projects with high technology content and high value-add, aiming to climb higher in the global value chain while ensuring sustainable development.