Beyond being a premier destination, Ho Chi Minh City is poised to elevate its standing as FDI capital from major players pours into high-tech, AI, semiconductors, logistics, and finance.
As it pursues a double-digit growth target this year, Ho Chi Minh City faces a significant opportunity arising from the wave of next-generation FDI. Foreign capital inflows are not only expanding in scale but also undergoing a qualitative shift toward high-tech sectors, AI, semiconductors, finance, and logistics. This momentum opens up the possibility of elevating the city's position within the global value chain.
*Dan Tri* newspaper is launching a series of articles titled "Riding the Next-Generation FDI Wave: Opportunities to Elevate Ho Chi Minh City's Economy," featuring analyses, proposed solutions, and insights from experts, businesses, and policymakers. Through this initiative, the city aims to attract and effectively leverage high-quality FDI to drive growth, foster innovation, and enhance economic competitiveness.
Intel has just completed the handover of 31 chip assembly and testing units to the Saigon Hi-Tech Park (SHTP) and Vietnam National University, Hanoi (VNU Hanoi), as part of a project to repurpose chip manufacturing equipment for training and research. After 20 years of operation, Intel’s facility at SHTP has produced over 4 billion units and contributed more than $110 billion in export value.
Over the years, Intel—alongside other technology corporations such as Samsung, Nidec, Jabil, Datalogic, Nipro, and Siemens EDA—has brought in FDI, helping to define and elevate Ho Chi Minh City's economy.
In early August, the LAPP Group (Germany)—a global leader in cable and connection technology—became the latest company to join the wave of foreign direct investment (FDI) in Vietnam by announcing the launch and establishment of LAPP Vietnam’s headquarters in Ho Chi Minh City.
Richard Lee, President and CEO of LAPP Asia-Pacific, stated that Vietnam is emerging as a strategic destination in the company's regional growth plan. As Vietnam accelerates the adoption of advanced manufacturing technologies, increases automation, and moves toward a sustainable industrial model, connectivity solutions are becoming increasingly vital.
"Vietnam will be a key market for LAPP, with a focus on high-growth sectors such as semiconductors, data centers, smart logistics, and automated manufacturing involving an increasing presence of robotics," said Richard Lee.
The competition for capital flows into Ho Chi Minh City is also a notable trend, highlighted by Japan’s MISUMI Group announcing an investment of approximately 4.6 billion yen (over US$29 million) to expand production in Vietnam and other countries. This investment focuses on manufacturing automated linear stages—critical components for equipment used to produce optical transceiver modules for data centers. According to the Japanese group, demand for these products is surging due to the widespread adoption of generative AI and the rapid growth of industries such as robotics.
Reporters from *Dan Tri* have observed a distinct shift in recent FDI flows into Ho Chi Minh City toward high-tech sectors, AI, semiconductors, finance, logistics, and research and development (R&D) centers.
Statistical data reflects this positive outlook; a socio-economic report for July from the city’s statistics office indicates that, as of the end of July, Ho Chi Minh City had attracted over US$9.8 billion in total FDI—a staggering 144.5% increase year-on-year. In just seven months, the city achieved nearly 90% of its annual FDI attraction target.
Beyond the increase in volume, the quality of capital inflows is also showing marked improvement. An increasingly favorable investment climate, combined with a strategic focus on attracting "new-generation" FDI, has established Ho Chi Minh City as an attractive destination for global technology corporations.
At the "Financial Roundtable" held at Columbia University (USA) in late July—organized by the Vietnam International Financial Center-Ho Chi Minh City (VIFC-HCMC) Executive Agency—technology giant Qualcomm expressed its admiration for Ho Chi Minh City's vision regarding the city's international financial center.
The company assesses that the international financial center in Ho Chi Minh City is poised to serve as a gateway connecting Vietnam to global financial markets, thereby contributing to the modernization of the financial system, attracting investment, and fostering innovation. Accordingly, Qualcomm has expressed a desire to participate in the development and operation of VIFC-HCMC and has committed to exploring opportunities for collaboration, investment, and knowledge exchange, designating Qualcomm Vietnam Co., Ltd. as the focal point for coordinating implementation efforts.
In terms of national capital flows, South Korea is currently the largest foreign investor in Vietnam on a cumulative basis, with over US$95 billion in registered capital across more than 10,400 active projects. This investment drives tangible impact, supporting approximately 10,000 South Korean enterprises operating in the country and creating over 900,000 jobs.
In Ho Chi Minh City, Samsung Electronics HCMC CE Complex (SEHC) has recently launched a rooftop solar power project with a capacity of nearly 28 MWp, while maintaining an investment scale of approximately US$2.8 billion. Its revenue is projected to reach around US$5.2 billion in 2025.
Following a similar trend, the Bosch Group (Germany) has established a Research & Development (R&D) and software development center in Ho Chi Minh City to serve its global network. According to Mr. Andre de Jong, General Director of Bosch Vietnam, the decision to ramp up investment in R&D and high-tech sectors in Vietnam stems from confidence in the country's growth potential and the quality of its workforce. Bosch is currently one of the largest German investors in Vietnam, with an investment capital exceeding €450 million and a workforce of nearly 6,000 employees.
"Vietnam is not only a key growth market but is increasingly becoming a vital hub within Bosch’s global network," said Mr. Andre de Jong.
Looking ahead, Bosch has announced plans to continue investing in technology and workforce development, as well as expanding partnerships with local universities and domestic entities, to help strengthen Vietnam's technology ecosystem.
“When selecting a location for an R&D center or high-tech projects, enterprises typically evaluate multiple factors simultaneously, including economic development conditions, workforce quality, the investment environment, infrastructure, and innovation capabilities. Leveraging Vietnam's existing advantages, the Group is intensifying research activities in AI and semiconductors through the engineering team at Bosch Global Software Technologies Vietnam,” stated Mr. Andre de Jong, Managing Director of Bosch Vietnam.
To date, Ho Chi Minh City has attracted 20,259 active FDI projects, with a total registered capital of nearly US$142 billion from 152 countries and territories. The FDI sector contributes approximately 20% of total social investment capital and over 50% of export turnover, serving as a key driver for the city's economic restructuring, productivity enhancement, and international integration.
Moving forward, Ho Chi Minh City aims to shift its strategy from merely attracting projects to fostering an ecosystem capable of capturing high-quality capital flows. According to international organizations, global FDI is trending towards smaller deal sizes but greater selectivity, focusing on sectors such as high technology, green finance, the digital economy, semiconductors, artificial intelligence, clean energy, and innovation. Consequently, competition for FDI no longer hinges on isolated incentives but rather on the capacity to build robust ecosystems and institutional frameworks.
A representative from Intel noted that Ho Chi Minh City remains a vital location due to its stable socio-political environment, strategic position, young workforce, and clear direction in attracting high-quality FDI. Intel continues to regard Vietnam and Ho Chi Minh City as integral components of its global manufacturing operations.
Alongside the results already achieved, many experts argue that to attract further FDI inflows from major technology "eagles," Ho Chi Minh City—and the country as a whole—must continue to improve the investment and business environment, particularly regarding administrative procedures and consistent policy implementation.
"The city should continue investing in high-quality workforce development, aligning training with the practical needs of businesses, while also implementing policies to help domestic enterprises raise their standards in quality, management, innovation, and international compliance. As both FDI and domestic enterprises enhance their capabilities, Ho Chi Minh City will have the opportunity to build a deeper technology ecosystem, enabling Vietnam to participate in higher-value segments of the global value chain," an Intel representative stated.
The Business Confidence Index (BCI) results from the European Chamber of Commerce in Vietnam (EuroCham) for the second quarter of 2026 surged to 79.7 points—approaching a seven-year high—reflecting a robust recovery in business confidence. However, the survey also reveals persistent administrative hurdles. To translate investor confidence into future "mega-projects," Vietnam must continue to accelerate reforms and resolve institutional and administrative bottlenecks.
According to EuroCham, despite rising confidence, 53% of businesses still identify administrative delays, inconsistent policy implementation, and a lack of transparency in tax administration as the primary obstacles to their long-term expansion plans. Alongside long-standing challenges, the survey highlights emerging pressures. The workforce shortage has been intensifying since the fourth quarter of 2025 and is now cited by 38% of businesses as one of their top three operational challenges.
Meanwhile, issues regarding certification, testing, and product standards have emerged as factors complicating business operations, reflecting the increasingly complex demands of Vietnam's economy as it enters a new phase of development.
Many businesses report that administrative procedures slow down the implementation of operations and projects, with 29% forced to divert resources toward administrative tasks rather than focusing on core business activities. Management teams are spending an increasing amount of time navigating multi-layered licensing procedures, repetitive approval processes, and overlapping documentation requirements. This administrative burden becomes a “hidden cost” of innovation, limiting the ability to reinvest in research and development (R&D) or expand production facilities in Vietnam.
Furthermore, inconsistent implementation of regulations across government agencies, a constantly shifting policy framework, and delays in Value Added Tax (VAT) refunds continue to create financial instability and impact corporate working capital.
It is worth recalling that in June 2025, Samsung SEHC (a subsidiary of Samsung Group), an electronics manufacturer based in Ho Chi Minh City, received a VAT refund of over VND 582 billion after voicing concerns about financial difficulties caused by prolonged refund delays. Prior to that, the company had engaged in numerous discussions with authorities and submitted official petitions, yet received no specific information regarding the refund timeline. This investor's case had dragged on for three years.
Mr. Bruno Jaspaert, Chairman of EuroCham, noted that as businesses grow in scale and complexity, they require a commensurate legal environment. Companies need clear regulations, efficient administrative procedures, and consistent enforcement to feel confident in committing capital for the long term.
For Ho Chi Minh City, high-quality technology capital is flowing in strongly; the key question now is how the city can capture and leverage this influx to create spillover effects for domestic enterprises and retain value-added benefits for the local economy.
Mr. Peter Kim, CEO of HSBC Korea, stated that familiar South Korean brands have become an integral part of Vietnam's industrial landscape. Samsung has invested over USD 23 billion and employs approximately 90,000 workers. LG’s total investment exceeds USD 8 billion, with a flagship USD 5.65 billion display manufacturing complex in Hai Phong. Hyosung has committed USD 4 billion and plans to invest an additional USD 4 billion. Meanwhile, SK is exploring energy projects in Central Vietnam, while Lotte, CJ, Doosan, and numerous supply chain enterprises are continuously expanding their presence.
Content: Thai Phuong, Le Tinh
Photos: Nam Anh, Bao Quyen, Lam Giang, Nam Phong
Design: Tuan Huy
Source: Dan Tri Newspaper