As the economic hub of Vietnam, Ho Chi Minh City is an attractive destination for foreign investors (Photo: VietnamPlus) HCM City (VNA) – Attracting 2.9 billion USD in foreign direct investment (FDI) in the first half of 2023, Ho Chi Minh City maintained its position as one of the 10 localities receiving highest evaluation from investors for its investment environment prospects.
After more than 30 years of opening, FDI has been an important resource for the city’s socioeconomic development.
Belonging to the southern key economic zone of the country, HCM City has a favourable strategic position, coupled with high quality human resources, making it an ideal destination for foreign investors with strong and sustainable financial capacity.
After more than two years affected by COVID-19, a number of indicators of the city dropped. But by the end of the first quarter of 2023, HCM City has clinched its position among top 10 localities with brightest investment environment outlook as evaluated by investors.
According to the General Statistics Office, as of June 20, total FDI inflow in the city had reached nearly 2.9 billion USD, up 30.7% year on year.
Particularly, 231 million USD was invested in 514 newly-licensed projects, including 93.9 million USD poured in the retail and wholesale, automobile and motorbike repair sectors, accounting for 40.6%. At the same time, the construction sector drew 53.7 million USD, accounting for 23.3%, while 44.5 million USD was injected into professional activities, science and technology.
In the January-June period, Singapore led all countries and territories investing in the city in terms of newly-licensed projects with 89 projects worth 126 million USD, accounting for 54.6% of the total newly-registered FDI. It was followed by Japan with 43 projects totaling 21.7 million USD, and Hong Kong (China) with 36 projects worth 12.7 million USD.
Ho Chi Minh City aims to attract more than 50 projects in high technology sector with at least one reputable high-tech group in 2025 (Photo: VietnamPlus)
Notably, capital contributions in the field of finance-banking and insurance reached received 1.5 billion USD, accounting for 68.3% of the total contributed capital in the period.
Meanwhile, the capital contribution transactions in the real estate sector was 99.6 million USD.
Nguyen Khac Cuong, Director of the HCM City Statistics Office said that in general, the total FDI amount rose 30.7%, showing investors’ strong confidence in the investment environment of the city.
According to the municipal Department of Planning and Investment, the city is building a project to attract FDI in the 2023-2025 period with a vision to 2030, targeting strategic investors.
The project aims for more than 50 projects in high technology sector and at least one reputable high-tech group in 2025, with total FDI of at least 3 billion USD.
Real estate has been an attractive sector for investors (Photo: VietnamPlus)
In the 2023-2025 period, the ratio of capital from the key group of investors is expected to reach 70% of the total FDI, while priority will be given to multi-national groups with close connectivity with domestic firms to form connection clusters in particular sector following value chains.
Previously, HCM City mainly attracted investment in the fields of trade, services, wholesale and retail, but now it the city is making a shift in the number of large licenced projects.
Of the projects, the majority are in the fields of industry, processing, manufacturing, real estate, science and technology and information and communication sectors, which are also prioritised sectors of the city.
However, experts said the city still faces manychallenges, especially in infrastructure, labour productivity, logistics, as well as investment procedures./.
