Ho Chi Minh City: Market Guide for Foreign Investors

22Apr2025

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This article is written in English and automatic translation is used for other language versions. Please refer to the English version for accurate content. Although we strive to ensure the accuracy of the original information, please check separately for each information. Interpretations and future prospects are the personal opinions of each researcher.

Ho Chi Minh City (HCMC) is the largest economic center in Vietnam, with rapid growth, developed infrastructure, abundant labor force and an increasingly favorable business environment, creating favorable conditions for foreign investors to expand production, trade and services. This article provides an overview of the city through important factors: geographical location, infrastructure, labor market, economic context and investment opportunities.

Geographical location

Ho Chi Minh City, located in the South of Vietnam, serves as the economic, financial and cultural center of the country. With its strategic location, Ho Chi Minh City is easily connected to countries in the Southeast Asian region, an important gateway for international trade activities. The city borders Binh Duong, Dong Nai, Long An and Ba Ria – Vung Tau provinces, forming the key economic region in the South of Vietnam.

Location of Ho Chi Minh City on Vietnam map

Source: Vi.wikipedia.org

Infrastructure

Ho Chi Minh City is witnessing strong development in infrastructure to meet the needs of a rapidly growing economy. According to the report of the Vietnam Chamber of Commerce and Industry (VCCI) in 2022, Ho Chi Minh City ranked 8th in the ranking of provinces in terms of infrastructure index[1]. This index reflects the quality of industrial parks, traffic routes and public utilities.

Currently, Ho Chi Minh City has 17 industrial parks and 2 export processing zones, with a total area of over 5,000 hectares, playing an important role in attracting investment and promoting the city’s economic and industrial development[2]. Some notable industrial parks include Dong Nam Industrial Park (Cu Chi district), Vinh Loc Industrial Park (Binh Chanh district), Tan Binh Industrial Park (Tan Binh district), Hiep Phuoc Industrial Park (Nha Be district) and Tan Tao Industrial Park (Binh Tan district)[3]. In particular, recently, Ho Chi Minh City has been actively expanding and developing many new industrial parks to meet the increasing investment demand. Specifically, the city has planned to add 800 hectares of industrial land, including projects such as Hiep Phuoc Industrial Park Phase 2 (nearly 597 hectares), Le Minh Xuan Industrial Park Expansion, Le Minh Xuan Industrial Park 2, and Pham Van Hai Industrial Park I & II[4]. In addition, the planning project for the 2021-2030 period also proposes to add 10 new industrial parks with a total area of about 2,465 hectares, demonstrating Ho Chi Minh City’s determination to attract large domestic and foreign projects.

This creates favorable conditions for attracting investors, especially in the fields of processing, manufacturing and high-tech industries. However, attention should also be paid to further improving factors such as the environment and living space for workers, to ensure the sustainable development of industrial park infrastructure in the future.

Ho Chi Minh City has Cat Lai port, which helps promote import and export activities. The city also has Tan Son Nhat international airport, which serves millions of international passengers every year. This brings a great advantage to investors in the fields of logistics, trade and transportation. The city has implemented a series of large infrastructure projects, especially in the field of transportation. The Ring Road 3 and Ring Road 4 projects, the Ho Chi Minh City – Moc Bai Expressway, and metro lines such as Metro No. 1 (Ben Thanh – Suoi Tien) are being implemented to reduce traffic congestion and connect inner-city areas with neighboring areas[5].

In addition, Ho Chi Minh City is promoting digital transformation to build a smart city, with projects to develop e-government and improve the quality of public services. Ho Chi Minh City inaugurated the Center for the Fourth Industrial Revolution (C4IR) on September 25, 2024, at Ho Chi Minh City Hi-Tech Park[6]. The center operates under a public-private partnership model, with the participation of large enterprises such as Viettel, Sovico, HD Bank and Techcombank. C4IR is part of the World Economic Forum (WEF) global network, and is the second center in Southeast Asia after Malaysia. The center focuses on four core technologies: artificial intelligence, 5G network, Internet of Things (IoT) and enterprise management systems, to promote digital transformation in businesses and industries. The launch of C4IR is expected to help Ho Chi Minh City become an innovation center, attracting investors in the fields of technology, telecommunications and big data[7].

Industrial Revolution 4.0 Center located in Ho Chi Minh City High-Tech Park

Source: Vnexpress.net

Labor market

Ho Chi Minh City is the largest economic center in Vietnam, with a young and diverse workforce, making an important contribution to the city’s economic development. According to a report by the Ho Chi Minh City People’s Committee, by 2024, the city’s workforce will reach more than 4.9 million people, accounting for 51.2% of the total population[8]. Labor force growth rate of about 2% per year in the period 2021-2024.

According to a survey by the Department of Labor, War Invalids and Social Affairs of Ho Chi Minh City, the average net salary of employees in the city in 2024 will reach 12.4 million VND/month. Specifically, the group of companies with shares and capital contributions dominated by the State recorded the highest average salary, reaching 12.9 million VND/month. Next is the group of foreign-invested enterprises and LLCs with 100% state capital, both reaching an average salary of 12.5 million VND/month. In contrast, the group of private enterprises has the lowest average salary, reaching only 12.2 million VND/month[9].

With nearly 4.9 million workers, accounting for 51.2% of the total population, Ho Chi Minh City currently possesses a large labor force, which shows the important contribution of human resources to the economic development of the city. One of the highlights is that the service sector accounts for nearly 66% of the labor force.

Labor force structure in Ho Chi Minh City in 2024

Unit: %

Source: Thanhtra.com.vn

This shows that Ho Chi Minh City is a leading economic and financial center, where service industries such as trade, finance, banking, insurance, and information technology are developing strongly. In addition, industry and construction also account for a large proportion, demonstrating the development of infrastructure and production. The presence of labor in agriculture, forestry and fishery is very small, showing a clear shift in the labor structure from agriculture to industry and services.

Regarding training level and recruitment needs, according to the survey results of the Center for Human Resources Forecasting and Labor Market Information of Ho Chi Minh City (Falmi) in 2024, 99.13% of job seekers have been trained, of which 70.06% have university degrees or higher[10]. Occupations with high demand include executive management, internal control staff, project management, business, sales supervision, accounting, marketing, market research, web design and architect[11].

Economy

Ho Chi Minh City is the largest economic center of Vietnam, accounting for about 22% of the country’s GDP.[12]. In 2024, the city’s GRDP is estimated to reach 70 billion USD, marking a growth of 7.17% over the previous year[13]. Regarding GDP per capita, it is estimated to reach about 7,600 USD in 2024 and is expected to reach 8,500 USD in 2025, putting Ho Chi Minh City in the group of localities with the highest income in the country[14].

The economic structure of Ho Chi Minh City is shifting strongly, with the main contribution from the service and industrial sectors. Services account for the largest proportion, reflecting the city’s role as a commercial, financial and service center, including sectors such as banking, insurance, real estate, and logistics. Industry with major sectors such as textiles, footwear, mechanics, plastics and electronics. Recently, Ho Chi Minh City is focusing on transforming into high-tech industries, such as semiconductor chip manufacturing, to increase added value and competitiveness[15]. Although the agricultural sector accounts for only a small proportion of Ho Chi Minh City’s GDP, it still plays an important role in providing food for the city and surrounding areas. This shift reflects the strong and sustainable economic development of Ho Chi Minh City.

Economic structure of Ho Chi Minh City in 2024

Unit: %

Source: Ttbc-hcm.gov.vn

Ho Chi Minh City (HCMC) is making a strong transition from the traditional growth model to the development of knowledge industry and digital economy. The city focuses on areas such as high technology, creative industry and scientific and technological research. In particular, the establishment of the HCMC International Financial Center in the Thu Thiem new urban area is being implemented, aiming to open up many opportunities for foreign investors in the fields of finance, banking and securities[16].

One of the important goals of Ho Chi Minh City in the coming years is to increase the proportion of the digital technology industry in the economy. Ho Chi Minh City aims for the digital economy to contribute 25% of GRDP by 2025, 40% by 2030 and 50% by 2045[17]. To achieve this goal, the city focuses on developing digital technology industries, especially artificial intelligence and semiconductor industries, while supporting digital transformation for small and medium-sized enterprises[18].

Investment

Ho Chi Minh City continues to affirm its leading position in attracting foreign direct investment (FDI) in Vietnam. According to data from the Ho Chi Minh City People’s Committee, in 2024, the total FDI capital invested in the city reached 2.2 billion USD, down 39.5% compared to the previous year[19]. In 2024, 695 projects in the fields of wholesale and retail, automobile, motorcycle and motorbike repair, accounted for 55% of the total newly registered capital. Next are specialized sectors, science and technology with 256 projects, accounting for 16.6% of the total newly registered capital. The real estate sector has 10 projects, with a total investment value of 45.6 million USD, accounting for 9.6% of the total newly registered FDI capital in the year.

According to the Ho Chi Minh City Statistics Office in November 2024, Singapore continued to be the leading country in terms of registered investment capital in the city with 179 projects and a total capital of 119.4 million USD. Followed by Japan with 117.1 million USD and South Korea with 65.6 million USD.

In recent years, Ho Chi Minh City has strongly attracted investment sources in many important fields such as high technology, real estate and transport infrastructure. The city continues to be an attractive destination for foreign investors thanks to its economic development support policies, investment incentives and strategic location in the region. Investment in high technology, especially in fields such as semiconductors, microchips, artificial intelligence (AI) and information technology, is increasing strongly. Large international corporations in the technology industry have chosen Ho Chi Minh City as the place to develop high-tech research and production centers, contributing to the city’s strong transformation towards modernization and sustainability[20]. In addition, Ho Chi Minh City also focuses on developing transport infrastructure to connect technology zones, such as implementing urban railway projects and expanding arterial roads. The city has called for investment in many transport infrastructure projects, including the Can Gio international transit port project and expressways[21]. These efforts reflect the shift in investment in Ho Chi Minh City, towards sustainable development and convenient traffic connections, contributing to enhancing the city’s position in the region and the world.

Outstanding investment projects in Ho Chi Minh City

Sector	Investor	Region	Year	Project
Semiconductor technology	BE Semiconductor Industries N.V	Netherlands	2023	Investing over 4.9 million USD in Ho Chi Minh City High-Tech Park to produce semiconductor chips
Semiconductor technology, microchip	Marvell Technology Group	United States	2024	Expanding chip design center in Ho Chi Minh City, serving cloud data center and AI
Artificial Intelligence (AI), supercomputers	NVIDIA	United States	2024	Establishing AI Research and Development Center, installing supercomputer in Ho Chi Minh City
Transport infrastructure, metro	Vingroup Corporation	Vietnam	2025	Proposal to invest in a metro line from Ho Chi Minh City to Can Gio, 48.7 km long, to improve traffic connectivity

Source: BC synthesis

Conclusion

Ho Chi Minh City continues to affirm itself as an ideal destination for foreign investors thanks to its strategic location, developed infrastructure, and a dynamic business environment. With a focus on high-tech industries, renewable energy, logistics, and real estate, the city has been attracting strong investment capital from international corporations. Despite certain challenges, such as a temporary decline in total FDI capital in some sectors, Ho Chi Minh City has maintained a stable growth momentum thanks to policies to encourage investment and sustainable development. Major projects such as transport infrastructure development, high-tech centers, and satellite urban areas continue to attract attention from investors. With all these factors, Ho Chi Minh City is clearly a potential market “handbook”, bringing great opportunities for foreign investors in seeking profits and sustainable development in Vietnam.

[1] https://kinhtevadubao.vn/van-de-co-so-ha-tang-trong-phat-trien-kinh-te-tai-tp-ho-chi-minh-29186.html

[2] https://vneconomy.vn/tp-hcm-tang-800-ha-dat-khu-cong-nghiep-de-thu-hut-du-an-lon.htm

[4] https://tuoitre.vn/hepza-de-xuat-them-11-khu-cong-nghiep-moi-go-kho-quy-dat-cong-nghiep-cua-tp-hcm-20240703212806106.htm

[5] https://znews.vn/trinh-de-an-tod-tai-cac-tuyen-metro-vanh-dai-4-tphcm-trong-thang-3-post1536148.html?utm_source=chatgpt.com

[6] https://thanhnien.vn/thu-tuong-du-le-khanh-thanh-trung-tam-cach-mang-cong-nghiep-lan-thu-4-c4ir-185240925111434115.htm?utm_source=chatgpt.com

[7] https://vnexpress.net/tp-hcm-van-hanh-trung-tam-cach-mang-cong-nghiep-4-0-4797048.html?utm_source=chatgpt.com

[8] https://thanhtra.com.vn/an-sinh-AFA9C5670/thanh-pho-ho-chi-minh-co-317-lao-dong-mong-muon-thu-nhap-tren-20-trieu-dongthang-6a62523aa.html

[9] https://voh.com.vn/kinh-te/muc-luong-binh-quan-cua-nguoi-lao-dong-tai-tphcm-nam-2024-dat-124-trieu-dongthang-572089.html?utm_source=chatgpt.com

[10] https://www.dubaonhanluchcmc.gov.vn/tin-tuc/39742.so-lieu-bat-ngo-ve-nguoi-tim-viec-lam-o-tphcm-nam-2024.html?utm_source=chatgpt.com

[11] https://dantri.com.vn/lao-dong-viec-lam/so-lieu-bat-ngo-ve-nguoi-tim-viec-lam-o-tphcm-nam-2024-20241224145513341.htm

[14] https://daidoanket.vn/tp-hcm-dat-muc-tieu-tang-thu-nhap-binh-quan-len-8-500-usd-10297254.html

[15] https://vneconomy.vn/phat-trien-nganh-cong-nghiep-tp-hcm-co-dinh-huong-nhung-chua-xac-dinh-nganh-chu-luc.htm

[16] https://vnexpress.net/tp-hcm-muon-mo-rong-trung-tam-tai-chinh-quoc-te-ve-quan-1-4861026.html

[17] https://dost.hochiminhcity.gov.vn/hoat-dong-so-khcn/tphcm-ky-vong-tro-thanh-trung-tam-kinh-te-so-hang-dau-cu-ca-nuoc/

[18] https://vietnamnet.vn/tphcm-kinh-te-so-khong-chi-25-grdp-ma-phai-la-dong-luc-tang-truong-moi-2372613.html

[19] https://vietnamnet.vn/tphcm-thu-hut-gan-2-3-ty-usd-von-dau-tu-fdi-giam-39-5-2361399.html

[20] https://vnexpress.net/khu-cong-nghe-cao-tp-hcm-muon-thu-hut-trung-tam-r-d-4843096.html

[21] https://baodautu.vn/tphcm-keu-goi-dau-tu-84-du-an-vi-mach-ban-dan-ha-tang-giao-thong-bat-dong-san-d226968.html

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