FOREIGN CAPITAL INFLOWS TO HCMC SOAR

Workers assemble vehicles at an automobile manufacturing plant - PHOTO: LE HOANG

HCMC – Foreign investment into HCMC more than doubled in the first four months of 2026, while new business registrations surged, as Vietnam’s commercial hub accelerated reforms to achieve double-digit economic growth.

Hoang Vu Thanh, director of HCMC’s Department of Finance, said at a meeting on May 8 that the city had attracted nearly US$3.3 billion in foreign investment since the start of the year, skyrocketing 127.1% year-on-year and equivalent to about 30.2% of its full-year target.

The city granted investment licenses to 539 new projects with combined registered capital of more than US$791.8 million during the period. Another 58 projects had their investment capital adjusted, with a net increase of about US$259.3 million.

Capital contributions, share purchases, and stake acquisitions in domestic companies continued to account for a large share of foreign investment inflows into the city.

Foreign investors carried out 565 share purchase and capital contribution deals in domestic firms during the period, with total capital of US$2.266 billion.

Regarding domestic investment, HCMC approved investment policies for 12 projects and additional capital for four others, with total registered capital of around VND209.1 trillion, Thanh said.

Business registrations also rose sharply alongside growing investment inflows. Nearly 19,820 enterprises were established in HCMC, up 35.3% from a year earlier, with total registered capital of VND122.2 trillion, up 27.6%.

Existing businesses added nearly VND269.7 trillion in registered capital during the period, up 21.82% from a year earlier. Total newly registered and additional capital reached nearly VND391.867 trillion, rising 23.57% year-on-year.

However, signs of business consolidation remained evident. A total of 3,918 enterprises completed dissolution procedures in the first four months of the year, up 126.08% from a year earlier. Meanwhile, 23,651 businesses suspended operations, an increase of 7.85%, while the number of firms resuming operations edged down 0.55% to 8,614.

The trend suggests HCMC is entering a more competitive phase in maintaining its position as the country’s leading destination for investment and businesses, as capital increasingly flows toward markets with faster reforms and stronger capacity to absorb investment.

Source: The Saigon Times

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