HO CHI MINH CITY NEEDS ADDITIONAL $3.5BN IN FDI IN H2 TO MEET 2026 TARGET

To meet its 2026 target of attracting approximately US$11 billion in foreign direct investment (FDI), Ho Chi Minh City needs to secure at least an additional $3.5 billion in the second half of the year while prioritizing high-quality investors and high-value projects with strong spillover potential.

Workers at a South Korean-invested company manufacture products for a major technology corporation. Photo: Nguyen Hien / Tuoi Tre

Registered FDI in the city reached nearly $7.5 billion in the first six months, equivalent to 68 percent of the annual target, Truong Tan Vu, deputy director of the Ho Chi Minh City Department of Finance, said at a conference on Friday reviewing the finance sector's performance and tasks for the second half.

With this result, Ho Chi Minh City ranked second nationwide in FDI attraction, behind Thai Nguyen Province in northern Vietnam.

As of June 30, the city had more than $146.8 billion in valid FDI capital across 21,351 active projects.

FDI has mainly flowed into five sectors: real estate; wholesale and retail trade and motor vehicle and motorcycle repair; information and communications; manufacturing and processing industries; and professional, scientific, and technical activities.

During the second half of 2026, the city aims to increase registered capital, improve FDI disbursement, shorten the time needed to bring projects into operation, and strengthen linkages between foreign-invested enterprises and domestic businesses.

Vu said Ho Chi Minh City will implement six groups of measures to improve the quality of FDI attraction.

The city will shift its focus from attracting investment based on quantity to selecting high-quality investors, giving priority to projects with high added value and strong spillover effects.

Instead of competing through individual incentive policies, Ho Chi Minh City plans to compete by offering a transparent investment environment, modern infrastructure, a highly skilled workforce, and strong business support services.

The city will translate government resolutions into action programs linked to its goals of achieving double-digit economic growth, developing the digital and green economy, building an international financial center, and promoting strategic industries.

It will also strengthen oversight of foreign-invested enterprises through post-investment inspections, focusing on project implementation progress, technology adoption, environmental protection, labor management, land use, and compliance with financial obligations.

Meanwhile, Ho Chi Minh City will continue reforming administrative procedures and accelerating digital transformation.

Bottlenecks related to investment, land, planning, and specialized administrative procedures will be addressed, while planning information, investment project lists, and available land resources will be made publicly accessible to facilitate investment.

In investment promotion, the city will prioritize attracting multinational corporations, investment funds, and technology companies to high-tech industries, semiconductors, artificial intelligence, research and development, international finance, logistics, biotechnology, and smart urban development.

The city will also mobilize public investment and private capital to develop transport infrastructure, logistics, seaports, digital infrastructure, data infrastructure, and energy projects.

At the same time, it will prepare cleared land and develop a high-quality workforce to accommodate new FDI inflows.

Source: Tuổi Trẻ News