IMPROVING THE EFFICIENCY OF ATTRACTING FOREIGN DIRECT INVESTMENT IN HO CHI MINH CITY TOWARDS QUALITY AND SUSTAINABILITY

Thoroughly implementing the Politburo's resolutions on socio-economic development and ensuring national defense and security in the Southeast region, Ho Chi Minh City is proactively undertaking a strategic shift in attracting foreign direct investment (FDI). The shift from quantity to quality, selectively focusing on technological excellence, is not only an objective requirement but also a key political task aimed at realizing the goal of industrialization and modernization of the country.

1. Affirming confidence and leading economic position
Amidst the complex geopolitical landscape of the world, FDI flows into Vietnam in general and Ho Chi Minh City in particular have maintained impressive growth. By the end of 2025, the city continued to hold the leading position nationwide with a cumulative total of approximately US$142.2 billion. Notably, in 2025, the city attracted over US$8.37 billion, reflecting the absolute confidence of the international investment community in the stability of the political system and the investment environment in Vietnam.
This result not only demonstrates the attractiveness of a dynamic economic center but also proves the correctness of the Party and State's policies and guidelines. The partnership of multinational corporations, especially the Japanese business community with over 80% of their companies choosing the city as their operating base, affirmed the city's status as a "promising land" for the country's economic powerhouse.

2. Shifting the investment attraction model: From "breadth" to "depth"
In implementing the orientation of reforming the growth model, Ho Chi Minh City has clearly defined its FDI attraction strategy for the new phase as being closely linked to high knowledge content and added value. The city is determined to:

Prioritize high-tech projects: Focusing on semiconductors, artificial intelligence (AI), digital technology, and green energy.
Limit labor-intensive projects: Persistently aiming to gradually reduce traditional manufacturing industries with low added value, high energy consumption, and potential environmental pollution risks.
Attract "core technologies": Proactively approach multinational corporations holding core technologies to promote knowledge transfer and sustainable connections with the domestic business sector.

This is a necessary step towards building an independent and self-reliant economy linked to deep international integration, ensuring sustainable development and protecting national interests.

3. Improving institutions and creating breakthroughs in policy implementation
The leaders of the Ho Chi Minh City Department of Finance affirmed that the city will implement strong reforms and take more substantive actions in 2026. They will also review incentive mechanisms to reduce fragmentation, increase post-investment support based on project effectiveness, and propose to the central government the removal of overlapping regulations and the improvement of tax and customs policies to ensure consistency and fairness.
Reforming administrative procedures, promoting digital transformation, and digitizing data on planning, land, and projects are key solutions to shorten the processing time of applications.
Simultaneously, Ho Chi Minh City aims to selectively attract multinational corporations with core technologies, innovate investment promotion activities through a "partnership with investors" mechanism, improve the quality of human resources, increase dialogues, and resolve obstacles definitively to strengthen investor confidence.
"The project 'Improving the effectiveness of FDI attraction in the period 2023-2025, with a vision to 2030' of Ho Chi Minh City was previously approved, but it is currently awaiting approval of sectoral development plans and the Ho Chi Minh City Master Plan to 2040, with a vision to 2060. If these plans are announced early, investors will have a basis to implement their investment plans" – suggested a leader of the Ho Chi Minh City Department of Finance.
Regarding investment attraction activities, Mr. Tran Phu Lu, Acting Director of the Ho Chi Minh City Investment and Trade Promotion Center (ITPC), said that this year the city will strongly innovate in a targeted direction, prioritizing large corporations from the United States, the EU, Japan, South Korea, Singapore, etc., in the fields of semiconductors, AI, renewable energy, international finance, and smart infrastructure. At the same time, the city will increase dialogues, monitor, and definitively resolve project obstacles.
One of the issues of particular interest to foreign investors is the development of the new Ho Chi Minh City master plan. Regarding the progress of the general planning documents, Mr. Vo Hoang Ngan, Director of the Department of Planning and Architecture, informed that Ho Chi Minh City has completed the documents and submitted them to the Ministry of Construction of Vietnam for early signing and issuance of the accompanying plans and maps.
In addition, regarding the expansion of land for investment attraction, Bui Minh Tri, Head of the Ho Chi Minh City Export Processing Zones and Industrial Parks Management Board (Hepza), said that this year Ho Chi Minh City will strive to put 4 new industrial parks into operation, raising the total number of operating industrial parks in Ho Chi Minh City to 63, to promptly serve the needs of investors.

Conclusion
Ho Chi Minh City's selective FDI attraction journey in 2026 and beyond is not merely an economic challenge, but also a testament to the resilience of the country's largest economic center in pioneering the Party's strategic goals. With foresight and decisive actions, the city will continue to be a "beacon" attracting global talent, contributing to Vietnam's steady progress on the path to prosperity and happiness.

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IMPROVING THE EFFICIENCY OF ATTRACTING FOREIGN DIRECT INVESTMENT IN HO CHI MINH CITY TOWARDS QUALITY AND SUSTAINABILITY