The Supporting Industry Exhibition and Supply Chain Linkage Forum 2025 in Ho Chi Minh City. Photo: VNA  

Foreign direct investment inflows into Ho Chi Minh City have accelerated since the start of the year, fueled by a string of multi-billion USD deals on data infrastructure and digital technology.

Major tech, infrastructure players flock to southern metropolis

One of the most prominent moves came with the signing of a long-term framework cooperation agreement involving Abu Dhabi-based G42 Group whose major shareholders include a UAE sovereign wealth fund, the US’s Microsoft Corp, alongside Vietnamese partners FPT Corp, VinaCapital and Viet Thai Group. The pact targets the development of large-scale, AI-ready data centre infrastructure.

The project, with commitments of as much as 2 billion USD, is carried out at the Saigon Hi-Tech Park (SHTP).

Nguyen Ky Phung, Head of the SHTP Management Board, said Evolution Group’s planned 500 million USD data centre project is also moving toward licensing at the park.

Separately, the municipal Department of Science and Technology signed a memorandum of understanding on cooperation with Accelerated Infrastructure Capital (AIC) to develop an AI data centre at Tan Phu Trung Industrial Park in Cu Chi commune.

The roughly 2.1 billion USD project will be co-run through a joint venture involving AIC, Kinh Bac City Development Holding Corp. (KBC) and foreign investors, with full capital deployment targeted by the end of the first quarter of 2027.

In early March 2026, the Vietnam International Financial Centre in Ho Chi Minh City (VIFC-HCMC) entered a strategic cooperation agreement with a consortium led by VinaCapital and the Global On-Chain Economy Alliance. They will study, develop and operate the Ho Chi Minh City Digital Asset Fund, envisioned as a market-forming vehicle for a regional on-chain financial hub. The fund aims for an eventual scale of 1 billion USD.

Lam Dinh Thang, Director of the municipal Department of Science and Technology, said large-scale data centres, AI, and cloud computing will accelerate digital transformation while laying essential groundwork for smart city development, including the VIFC.

“We are committed to accompanying investors, refining special policy mechanisms and fostering an innovation ecosystem to sharpen the city's competitiveness and technological standing in the region,” Thang said.

Streamlined administrative procedures, land clearance boost appeal

Administrative reforms have played a key role in unlocking investment. In 2025, the city cut 435 procedures and simplified another 441 linked to production and trade, easing long-standing bottlenecks for businesses and investors.

The launch of a one-stop Public Administrative Service Centre late last year has further improved efficiency. Processing time for investment registration, foreign capital contributions, share acquisitions and project adjustments have been shortened, with more than 80% of procedures now available via an online public service portal that allows remote completion regardless of administrative boundaries.

Following a broader administrative restructuring, authorities are accelerating investment in high-tech urban zones. A sci-tech urban area in former Binh Duong province (now part of Ho Chi Minh City), with a 220-ha core featuring innovation zones and digital education parks, will be surrounded by 1,700 ha of next-generation industrial zones focused on semiconductors, AI and data centres.

Meanwhile, underperforming projects are being reclaimed for higher-value use. SHTP plans to revise its 1/2,000 detailed planning and clear slow-moving sites in the first quarter of 2026, freeing up about 100 ha of clean land for hi-tech and green technology investments. A separate 200-ha science park is expected to begin attracting investors two years after infrastructure work if approved by the Prime Minister.

“2026 will be an acceleration phase for SHTP, with a target of attracting 1.6 billion USD in FDI,” Phung said, adding that the park will shift its focus toward core technologies, semiconductors, AI, and innovation instead of traditional manufacturing.

Improving transport links is another draw. Key projects slated to become operational in 2026, including Long Thanh International Airport, Ring Road 3, Ben Luc - Long Thanh and Bien Hoa - Vung Tau expressways, will tighten regional connectivity, lower logistics costs and open new industrial corridors.

Bullish FDI outlook for 2026

Ho Chi Minh City is on track to meet or exceed its full-year FDI target by mid-2026. In the first quarter alone, the city attracted 2.9 billion USD in FDI, with another 8.9 billion USD anticipated in the second quarter, Director of the municipal Department of Finance Vu Hoang Thanh told a conference of the municipal Party Committee on April 1.

Truong Minh Huy Vu, Director of the Ho Chi Minh City Institute for Development Research, highlighted a 47% surge in newly established companies, with total registered and additional capital reaching nearly 254 trillion VND, a clear vote of confidence from the private sector.

Looking ahead to 2026–2030, Vu said institutional reforms, alongside conventional drivers such as investment, consumption and exports, will be critical to sustaining double-digit growth. Key levers include the forthcoming Special Urban Law and the city’s master plan.

Tran Luu Quang, Secretary of the municipal Party Committee, noted that strong first-quarter performance, including 8% economic growth, sets a solid foundation for the city to target 11–12% expansion in 2026, provided momentum is maintained over the remaining three quarters./.