Vietnam HCM City Institutional Reform Strategy Transforms the Investment Landscape

Published on January 24, 2026

Just weeks after gaining approval from the National Assembly, HCM City has commenced an exciting transformation, fueled by the HCM City Institutional Reform Strategy. This framework aims to dismantle long-standing procedural blockages and reshape the city’s approach to attracting capital. Rather than simply vying for volume, the focus has shifted toward engaging investors who are committed, knowledgeable, and ready to grow alongside the city.

Four Long-Delayed Projects Finally Break Ground

On January 15, HCM City celebrated a significant leap in its development narrative by launching four major infrastructure projects simultaneously. This shift marks the end of a long stagnation characterized by stalled plans and regulatory hurdles. The newfound momentum is represented by the movement of cranes across the skyline, signaling that institutional reforms are beginning to yield tangible outcomes.

These four projects, boasting a combined investment value of over VNĐ239 trillion, target some of the city’s most urgent needs, including transport capacity, regional connectivity, and public facilities. The projects are:

• Rạch Chiếc National Sports Complex
• Cần Giờ Bridge
• Metro Line No.2 (Bến Thành–Tham Lương)
• Phú Mỹ 2 Bridge

Through their simultaneous rollout, these initiatives illustrate an improved coordination among various agencies and demonstrate the growing confidence in the city’s ability to transition from approvals to actual execution.

Redefining what a Strategic Investor Means

A critical aspect of this phase is the evolving definition of a “strategic investor.” No longer is capital size the sole criterion. Investors are now expected to contribute knowledge, governance capacity, and technological expertise that can redefine economic structures over the long term.

The city prioritizes partnerships that can offer:

• Long-term cooperation rather than fleeting project cycles
• Support for green transitions and digital transformations
• Technology and management knowledge transfers
• Development of high-productivity service ecosystems

This evolution mirrors the overarching objectives of the HCM City Institutional Reform Strategy, which emphasizes creating long-term value over seeking immediate financial returns.

A Sports Complex Becomes a Test Case

Few projects encapsulate this shift as effectively as the Rạch Chiếc National Sports Complex. Initially proposed over thirty years ago, it remained dormant for years due to ambiguous financing and mechanism issues. Its revival has become possible through a public-private partnership structure, employing a build-transfer model to leverage private resources while fulfilling public objectives.

Upon completion, the complex is projected to:

• Seat about 70,000 spectators
• Host significant regional and international sporting events
• Support elite athlete training
• Broaden access to public sports facilities

Beyond its scale, this project serves as a model for delivering extensive social infrastructure without overburdening public finances.

From Policy Design to Practical Delivery

Recent years have granted HCM City increased autonomy, allowing it to tailor effective solutions for its unique role as a mega city. Previous attempts to attract major investors often faltered due to overlapping regulations and roles. However, recent changes in the investment policy reform framework have streamlined procedures and clarified responsibilities across governmental bodies.

Experts maintain that the most notable improvement isn’t merely speed; it’s the enhanced direction. Strategic investors are now guided toward priority sectors rather than incentivized through broad, one-size-fits-all measures. This sharper focus aligns private capital with long-term urban and economic objectives.

Business Confidence Rises, but Expectations are Higher

HCM City is presently at a unique juncture where institutional reform, available land, and pressing infrastructure demands converge. Plans to establish an international financial center are perceived as strategic moves to attract a mix of domestic and foreign capital via improved regional competitiveness.

This proposed center is poised to bolster the city’s standing as a hub for capital flows and financial services. Nonetheless, business leaders emphasize that incentives alone won’t suffice; consistency in policy application is paramount, backed by decisive leadership engagement.

What Global Investors are Looking For

Modern investors assess a multitude of factors when contemplating long-term commitments, including:

• Transparent and predictable administrative procedures
• Access to skilled human resources, particularly in technology and finance
• Quality urban living conditions to retain professionals
• Reliable transport and digital infrastructure
• Stable and clean energy supplies

Notably, energy security has surfaced as a pressing issue for many contemporary industries. Addressing it effectively could substantially enhance the city’s competitive edge in attracting high-quality capital.

Building a More Resilient Growth Model

As implementation becomes increasingly consistent, HCM City is progressively distancing itself from quantity-driven investment promotion. The current focus is on selective partnerships that advance sustainable urban infrastructure development and foster long-term economic resilience.

If this momentum persists, the HCM City Institutional Reform Strategy stands poised to do more than merely unblock delayed projects. It could fundamentally reshape the city’s growth trajectory, its collaboration with investors, and its positioning within regional and global markets, setting the stage for a sustainable development model that can withstand the test of time.