Ho Chi Minh City Attracts Record $1 Billion in Investment

DNHN - The latest figures show that in 2023, for the first time, the total investment capital poured into industrial parks in Ho Chi Minh City (both new and adjusted) exceeded $1 billion, nearly doubling the plan and increasing by 84% compared to 2022.

The newly released figures show that in 2023, for the first time, the total investment capital poured into Industrial Parks (IPs) in Ho Chi Minh City (including both new and adjusted IPs) surpassed the $1 billion mark, nearly doubling the plan and increasing by 84% compared to 2022.

Of that total, foreign investment capital reached about $223 million, up more than 13% compared to 2022. Ho Chi Minh City recorded 16 new projects with registered investment capital of $63 million and 34 projects adjusting capital, with an additional capital of $160 million.

In terms of domestic investment, the total attracted capital reached VND18,531 billion (equivalent to $789 million), up 124% compared to 2022. Notably, Viettel’s project in Cu Chi district invested $624 million.

Mr Tran Viet Ha, Deputy Head of Ho Chi Minh City Export Processing and Industrial Zones Authority (Hepza), said that this is the first year that there has been a breakthrough in attracting investment into IPs. Previously, each year only attracted investment capital from $400 to $800 million. Notably, this year, Viettel’s project in the fields of data centres, information technology, and digital transformation has accounted for a significant amount of capital.

In addition, Mr Hua Quoc Hung, Head of Hepza, shared the good news that although the land fund decreased by 68% and the fund of the factory for lease decreased by 8.5% compared to the previous year, Ho Chi Minh City still achieved positive signals in attracting investment. The investment rate per hectare of land has also increased, specifically reaching an average of $8.1 million/ha, and for foreign investment projects, this figure is nearly $11.6 million/ha.

“We have been more selective and taken better care of investors and industries attracted to Ho Chi Minh City, in the context of increasingly shrinking land funds,” Mr Hung emphasised.

Resolution 98 of the National Assembly has opened up new space for Ho Chi Minh City (HCMC) to attract investment with large-scale, ambitious projects. The breakthrough mechanisms and policies applied under this resolution create great opportunities for HCMC to attract strategic investors.

The resolution has identified priority industries and professions to attract strategic investors to the city, including investment in building innovation centres, research and development (R&D) centres, investment in research and support for high-tech transfer in the fields of information technology, biotechnology, automation technology, new materials technology, and clean energy with an investment capital scale of VND3,000 billion or more.

HCMC also prioritises attracting large investors in the field of semiconductor integrated circuits, design technology, manufacturing of electronic components, integrated microcircuits (ICs), flexible electronics (PE), chips, new technology batteries, new materials, and clean energy industry with an investment capital scale of VND30,000 billion or more.

With this series of incentives, if implemented early and effectively, HCMC will have a great opportunity to attract strategic investors to invest. The Chairman of HCMC People’s Committee, Mr Phan Van Mai, in meetings with businesses, emphasised that HCMC is entering a new stage in the field of investment attraction. The city resolutely does not accept projects using backward technologies, consuming energy, and causing environmental pollution.

HCMC also commits to applying selective criteria for foreign investment, not encouraging, and will carefully consider granting licenses for projects that use a lot of labour-intensive and land resources. On the contrary, the city will prioritise countries with high technology and leading supply chains, focusing on developing a green, environmentally friendly economy based on the application of high technology.

However, Mr Mai also recognised that HCMC is facing a shortage of industrial land funds to attract large projects and large investors in new industries and professions. Supplementing the planning for Pham Van Hai I and Pham Van Hai II Industrial Parks is an important part of creating conditions for the city to develop specialised industries such as electronics, biomedicine, and supporting industries. On the other hand, HCMC has completed and is submitting the general planning dossier for Thu Duc City, and is expected to organise an investment promotion conference after approval, to promote local economic development.

Hung Hoa