Ho Chi Minh City Expects to Attract $7.4 Billion in FDI in 2023

According to a report by the Department of Planning and Investment of Ho Chi Minh City, in the first 20 days of 2023, the city recorded an FDI investment of over $179 million, a 74% increase compared to the same period in 2022.

So far, 50 foreign investment projects have been granted investment registration certificates with a total registered capital of $87 million, including 44 100% foreign capital investment projects and 6 joint ventures. 

Singapore leads the list of countries with the most investment projects in the city, with 12 projects worth $77 million accounting for over 88%. Taiwan and Hong Kong follow closely behind.

However, the city is facing challenges in attracting large-scale production projects due to limited land funds and high input costs. 

As a result, the city needs to focus on attracting supply chains to the region, such as head offices, R&D centers, logistics centers, and training centers.

In 2022, despite the impact of the Covid-19 pandemic, Ho Chi Minh City attracted $3.94 billion in FDI capital, a 5% increase from the previous year. 

FDI inflows have shifted towards science and technology, manufacturing, and processing industries, reducing investment capital for the real estate business. 

In 2022, FDI accounted for 13% of the total investment capital in the city, contributing $78 trillion to the budget revenue and $25 billion to import and export turnover, which accounted for 61% of the city's import and export turnover.

Source: ZingNews