HCMC’S FDI JUMPS 20%, PUBLIC INVESTMENT LAGS

A view of downtown HCMC - PHOTO: LE VU

HCMC – Ho Chi Minh City maintained solid economic growth in the first five months of 2026, with several key indicators posting strong gains, notably foreign direct investment (FDI), which increased 20.3% year-on-year.

However, public investment disbursement remains a major bottleneck, reaching only 16.9% of the annual target.

The figures were released by the HCMC government at a socioeconomic review meeting on June 4.

The city attracted more than US$3.8 billion in FDI during the January-May period, with a strong concentration of projects in science and technology. Domestic demand also remained robust, with total retail sales of goods and consumer service revenue rising 12.8% year-on-year to VND799.9 trillion.

Tourism revenue surged 78.9% to VND193 trillion, while the city welcomed 5.59 million international visitors. Industrial production also expanded steadily, with the Index of Industrial Production (IIP) increasing 11% and the manufacturing and processing sector—the city’s key growth driver—growing 11.8%.

State budget revenue reached VND401.9 trillion, equivalent to 49.9% of the annual estimate and up 24.3% from a year earlier. The business community also showed positive momentum, with 24,784 newly established enterprises, up 29.1% year-on-year.

While trade and foreign investment indicators improved, public investment disbursement remained sluggish. As of the end of May, disbursed public investment capital totaled VND24.9 trillion, or nearly 17% of the full-year plan.

The HCMC Department of Finance attributed the slow pace to ongoing administrative procedures, project design work, contractor selection processes, and prolonged difficulties related to compensation, site clearance, and the relocation of technical infrastructure.

At the meeting, HCMC Chairman Nguyen Van Duoc instructed departments and agencies to review growth scenarios and implement measures aimed at achieving gross regional domestic product (GRDP) growth of more than 10% in the first half of the year.

The city will prioritize capital for production and business activities, simplify administrative procedures, and improve the economy’s capacity to absorb credit, he said.

HCMC also plans to accelerate the implementation of strategic infrastructure projects for the 2026-2030 period while closely monitoring investment costs to prevent budget overruns and waste in public investment and public-private partnership (PPP) projects.

Source: The Saigon Times