HCMC eyes $4.5 bln in FDI for 2023

Ho Chi Minh City, Vietnam’s biggest economic hub, seeks to attract foreign direct investment of $4.1-4.5 billion this year on stable socioeconomic conditions and controlled inflation, according to the municipal planning and investment department.

HCMC received $179.04 million in registered FDI capital during the first 20 days of January, up 73.78% year-on-year. The figure included $86.86 million of 50 new projects, $37.51 million of additional capital for 20 existing projects, and $54.68 million of stake purchases.

Of the 50 new projects, 44 were conducted by wholly-owned foreign businesses and six by joint ventures.

Singapore was the leading investor with 12 projects worth $77 million, accounting for 24% and 83.4%, respectively; followed by Taiwan with three projects worth $3.2 million, and Hong Kong with three worth $2.2 million.

HCMC is facing challenges in attracting FDI, including the limited land bank and high labor cost, said Pham Tuan Anh, deputy head of the foreign economic relations office, under the municipal planning and investment department.

As a result, the city will focus on luring FDI into supply chain hubs, which feature HCMC specific activities, like supply chains with research centers, training centers, logistics centers in the city and production activities in nearby localities, Anh added.

FDI in the metropolis reached $3.94 billion in 2022, up 5.41% year-on-year, the highest figures among all 63 localities in Vietnam. FDI has focused more on the science-technology and manufacturing-processing industry, and less on realty business, Anh added.

FDI businesses in HCMC contributed VND78,112 billion ($3.31 billion) to the state budget in 2022 and posted an import-export turnover of over $25 billion, accounting for 17.07% and 61% of the city’s results, respectively.