Foreign direct investment (FDI) into Ho Chi Minh City surged by over 45% in the first seven months of 2025 compared to the same period last year.

The city, which now encompasses Binh Duong and Ba Ria - Vung Tau following a recent merger, is benefiting from newly consolidated advantages and potential, fueling expectations for continued FDI growth.

FDI inflows rise more than 45% in seven months

Just one month after the administrative merger of Ho Chi Minh City, Binh Duong, and Ba Ria - Vung Tau, the new Ho Chi Minh City saw a sharp rise in FDI compared to the same period in 2024.

According to Nguyen Cong Vinh, Director of the Department of Finance of Ho Chi Minh City, the city attracted nearly USD 6.2 billion in FDI by the end of July 2025, representing a 45.67% increase year-on-year.

A notable highlight is that, within the first seven months of 2025, 1,073 new FDI projects were licensed, with a total capital of nearly USD 1.3 billion. The remainder came from capital increases, share acquisitions, and buyouts of stakes in local companies.

A significant share of this investment went into export processing zones and industrial parks. From January to July 2025, these areas received USD 2.43 billion in FDI, comprising 133 new projects with nearly USD 1.1 billion in registered capital and 106 capital adjustment projects totaling an additional USD 1.33 billion.

Importantly, over USD 1 billion of the total FDI during this period was directed into the high-tech sector. Noteworthy projects include the semiconductor equipment manufacturing plant by BE Semiconductor Industries N.V. (USD 42 million), a capital increase of USD 48 million for Amazon Data Services Vietnam, and a USD 133 million capital increase for GSK Vietnam Pharmaceuticals.

Director Nguyen Cong Vinh emphasized that, amid increasingly fierce global competition for FDI, a year-on-year increase of more than 45% reflects the strong confidence of international investors in the city’s investment climate.

Investors flocking to Ho Chi Minh City

At a recent meeting on the city’s economic performance over the past seven months, Nguyen Van Duoc, Chairman of the Ho Chi Minh City People’s Committee, highlighted FDI attraction as one of the most positive aspects of the city’s economic landscape in recent months. He noted that continued efforts to improve the investment environment have brought tangible results and reignited investor interest.

This is clearly reflected in the growing number of foreign investors meeting with city leaders to propose new projects or announce expansion plans. For example, Techtronic Industries (TTI) has revealed plans to expand its Milwaukee plant in the city’s High-Tech Park. Similarly, Japanese retail giant AEON announced it would open three additional large-scale shopping centers in the city, with total investment in the billions of dong (tens of millions of USD).

In infrastructure, Malaysia's Gamuda Land has proposed researching the construction of a metro line connecting Ho Chi Minh City to Long Thanh Airport, along with other urban railway lines. PowerChina and Sucgi (China), in joint ventures with local firms, have expressed interest in investing in metro line 2 (Ben Thanh - Tham Luong) and other lines.

In the high-tech sector, the US-based Smart Tech Group has proposed investing between USD 340 million and USD 850 million in a battery manufacturing plant in the city. Data center development is also drawing attention from major names such as Eaton (USA), Evolution Group (under Warburg Pincus - USA), and Hyosung (South Korea).

In the financial sector, the city's announcement of the National Assembly’s resolution establishing an international financial center in Vietnam has sparked immediate interest. Notable parties include Milcon Gulf, the Trump Organization, and several Kazakhstani firms.

Following a roundtable meeting between Ho Chi Minh City and Astana (Kazakhstan) business leaders, organized by the city government and the Astana International Financial Centre, the two sides are expected to sign a memorandum of understanding on cooperation in developing the city’s financial hub.

Salvatore Banco, Head of the Ho Chi Minh City and South China Office at D’Andrea & Partners Legal Counsel, observed that post-merger, the city's combined industrial capacity from former Binh Duong and seaport infrastructure from former Ba Ria - Vung Tau position it as Vietnam’s gateway to ASEAN markets and global supply chains.

Developing an international financial center will further accelerate foreign capital inflows. Coupled with the creation of smart logistics corridors linking industrial zones, seaports, and airports, this transformation will make Ho Chi Minh City an increasingly attractive destination for investors.

"Ho Chi Minh City's gross regional domestic product (GRDP) is now on par with many major urban centers in ASEAN. The strong post-merger growth is reinforcing its potential to attract high-quality foreign investment," Banco stated.

PV