HCM City’s Industrial Growth: A Beacon for Investment

HCM City is rapidly becoming a focal point for industrial development in Vietnam. In 2025, industrial parks and export processing zones within the city attracted an impressive total investment of $5.3 billion. This figure not only marks a 0.37% increase year-on-year but also exceeds the annual target by a remarkable 17.5%, indicating a strong and steadfast growth trajectory in the region’s economic landscape.

Leased Land Area and Factory Space

One of the most striking aspects of this growth is the substantial increase in leased land area and factory space. The total leased land area reached over 470.5 hectares, which is a 69.5% increase compared to the previous year. Similarly, the demand for factory space surged to over 492,075 square meters, nearly 2.6 times higher than the previous year’s figures. This spike reflects not only confidence from investors but also a robust economic environment conducive to scaling operations.

Foreign Direct Investment Surge

The foreign direct investment (FDI) landscape in HCM City is vibrant and burgeoning. In 2025, FDI amounted to over $3.39 billion, reflecting a mix of new and expanded projects. While the number of newly licensed projects saw a slight decline, FDI continued its upward trend, with 210 new projects amounting to $1.93 billion. In contrast, 179 existing projects opted to increase their capital significantly, demonstrating a 74.5% increase year-on-year.

Investors from Hong Kong, China, and Singapore predominantly led this influx. Hong Kong topped the list with 66 new projects worth nearly $392 million, while Singapore’s contribution was even more remarkable, totaling over $415 million—making it the largest source of newly registered capital in the city.

Sectors Attracting Investment

When it comes to industrial sectors, mechanical engineering is a clear favorite among investors, attracting 52 projects with investment exceeding $258.5 million. Other sectors like plastics and rubber, and electronics also showed promise, drawing in 22 projects and 21 projects respectively. This diversification of investment not only strengthens the industry’s foundation but also aligns with global technological trends, offering potential for sustainable development.

Domestic Investment Growth

Domestic investment is also on an upward trajectory. In 2025, domestic capital reached over VNĐ48 trillion (approximately $1.9 billion), marking a 17% increase from the previous year. A total of 99 newly licensed projects accounted for about VNĐ33.6 trillion (around $1.3 billion), indicating a healthy domestic economic environment. Prominent sectors attracting domestic funds include mechanical engineering, services, and real estate, all fostering a multifaceted industrial ecosystem.

Future Growth Momentum

According to Võ Văn Thân, the chairman of the HCM City Industrial Parks Business Association, the city now boasts the largest industrial space in Vietnam due to recent administrative mergers. With 58 industrial parks and export processing zones operating over a combined area of 22,400 hectares, the city maintains an average occupancy rate of around 75%, a promising sign of effective space utilization and demand.

Looking ahead, HCM City envisions a robust future by aiming for 105 industrial parks covering nearly 49,242 hectares by 2050. The focus is on developing new-generation industrial parks that prioritize high technology and eco-friendly models, aligning with global sustainability trends.

Strategic Investment Priorities

HCM City has smartly identified four priority industrial groups poised for growth: microchips, semiconductors, batteries and new materials; selective chemicals; precision engineering, automation and robotics; and food and beverage processing. These sectors not only promise higher technology content but also pair well with global sustainability objectives, minimizing environmental impacts while maximizing economic returns.

Regional Industrial Ecosystem

A synergistic industrial ecosystem is gradually forming in the region, with HCM City at its core. This emerging structure fosters innovation and services, while neighboring areas like former Bình Dương Province focus on manufacturing, and Bà Rịa–Vũng Tàu handles logistics and seaport operations. By harmonizing these functions, businesses can significantly reduce costs and enhance competitiveness.

Infrastructure and Administrative Reforms

The city’s strong infrastructure and ongoing administrative reforms play a vital role in attracting investors. The synchronization of transport networks, transparent administrative processes, and a green development strategy are crucial in maintaining HCM City’s allure as an investment haven. Furthermore, a “one-stop shop” mechanism simplifies procedures for businesses, aiming to streamline administrative burdens and enhance efficiency.

In summary, HCM City’s expanding industrial landscape, fueled by foreign and domestic investments, sets the stage for continued economic growth and competitiveness in the region. With strategic initiatives and cohesive development plans, the city is solidifying its reputation as a prime destination for industrial investment.