FDI BUSINESS SETUP SERVICES IN VIETNAM (2026): HO CHI MINH CITY: A LEADING DESTINATION FOR FOREIGN INVESTMENT
Ho Chi Minh City continues to strengthen its position as one of Southeast Asia’s most attractive destinations for foreign investors. With a dynamic economy, strategic location, modern infrastructure, and increasingly investor-friendly policies, the city offers significant opportunities across various sectors including manufacturing, technology, trading, logistics, and services. As Vietnam further integrates into the global market, Ho Chi Minh City remains a key gateway for international businesses seeking long-term growth and expansion in the region.
Prospective clients seeking assistance with procedures for establishing a foreign-invested enterprise in Vietnam are kindly invited to contact Dai Quang Minh Law Firm via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Law Firm provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat: (+84) 337926405 (ID: _pouniverse)/ (+84) 869672216 (ID: DQM_Verna)
- Telegram: (+84) 337926405/ (+84) 869672216
I. Infrastructure: Current situation and challenges
HCMC is a strategic political and economic hub of Vietnam as it houses an international airport and Saigon Port. However, the airport has been operating well over capacity while plans for adding another terminal have yet to be implemented.
To address this, the government has started the construction of Long Thanh International airport, in Dong Nai - a neighboring province of HCMC. The opening of the new airport is scheduled for September 2025 and will be the largest international airport in the country when completed.
While the initial purpose of Long Thanh airport is to replace Tan Son Nhat, the latest developments from the government indicate that operations at Tan Son Nhat will continue but as a supporting airport to Long Thanh. Thailand’s Bangkok follows a similar model where Don Mueang Airport serves mainly domestic and low-cost flights and helps prevent the main Suvarnabhumi International Airport from overcrowding.
The transportation infrastructure in HCMC has also not been able to keep up with its rapid pace of growth. The construction of the first metro line in the city, initiated in 2012, has been repeatedly delayed. As of May, the deadline for completion of the project was pushed to the end of 2023.
HCMC is also infamous for traffic congestion, especially post-pandemic. During rush hours early morning and late into the afternoon, vehicles are seen moving inch by inch and a distance of 1 km can take up to 20 to 30 minutes on busy streets. There has yet to be any clear plan from city authorities on addressing the issue.
The drainage system of the city has recently been under discussion in the past few months due to serious flooding. During the months of heavy rain, the city has been severely flooded, adversely affecting the quality of life and safety concerns. Although the city announced a total of three anti-flooding projects, none of them have been completed or put into operation. The tardy implementation of flood protection projects has been a factor of chaos for the city itself.
Mechanical and automation industry
The automation and mechanical industries are the backbones of economic development for HCMC. Automation has transformed key regional industries, including food processing, electronics, and textiles. Since the adoption of automation, these industries have witnessed growth rates between 11 percent and 35 percent annually.
HCMC is reputed for its skilled workforce in the mechanical and automation industries. The city especially prioritizes financial and technical support for universities and training departments of mechanical engineering.
The People’s Committee of HCMC recently issued a support program for the development of mechanical/automation enterprises for the 2020-2030 period. The program promotes the following missions:
- Identifying the list of key and potential products in the mechanical/automation sector;
- Eyeing private investment in the industry;
- Developing a skilled workforce, especially highly skilled engineers, through investments in universities and training institutions;
- Plans for stimulating demand;
- Credit incentives for businesses to access greater capital sources, fueling technology advancement; and
- Preferential land rental policies.
Recently there has also been support by multinational companies in the automation industry for telecom companies and universities in Vietnam. Siemens Germany’s biggest industrial equipment manufacturer has partnered with Vietnamese telecom companies VNPT, FPT, and Vingroup to implement technology transfer while sponsoring the laboratory of HCMC University of Technology and Education. Meanwhile, Mitsubishi Japan’s prominent automobile manufacturer has funded the upgradation of the Industrial University of HCMC laboratories..
II. Electronic and IT industry
In May 2022, HCMC issued the Science and Technology Research and Development Program for the 2021-2025 period. The program aims to accelerate technology transfer to facilitate the development of a smart city. Mr. Dung, the president of HCMC Department of Science and Technology, urged businesses of all fields to implement digital transformation in production and management while assuring that HCMC will financially assist IT businesses in R&D. It is estimated that the program will provide around US$34 million to support research in IT, of which US$30 million will be sourced from the state budget.
HCMC is also a hot spot for electronics manufacturing, especially for foreign players. Currently, up to 90 percent of the export turnover of electronics of HCMC is from FDI enterprises while domestic manufacturers are mainly involved in assembling simple components. This indicates a rather low level of sophistication in the industry and a lack of orientation for manufacturers in the city.
In the 2020-2025 period, the emphasis is placed on scaling up the production of computer parts and telecommunication devices. By 2025, the city eyes upgrades to its manufacturing technologies to reach world-class sophistication in three major products: hardware, software, and digital content.
III. Chemical industry
The chemical industry provides input materials for other industries and holds significance in maintaining the supply chain of HCMC. To this end, the government issued Decision No. 726/QD-TTg in June 2022 on the development strategy of the chemical industry by 2030.
However, HCMC’s chemical industry is not without challenges. Regarding the pharmaceutical segment, most manufacturers in the city still depend on raw materials from India and China. Besides, according to the HCMC Department of Health, there are currently 31 GMP-qualified pharmaceutical manufacturers, but they mainly produce medicines that are no longer under drug patents.
In response to the current situation, in 2021, the HCMC Department of Health issued the Development Strategy of the Pharmaceutical industry for the 2020-2025 period to promote the manufacturing of more specialized and patented drugs, and independence in input supplies.
Meanwhile, the city also recognizes the importance of state divestment from the chemical industry. HCMC has encouraged private investments, especially foreign direct investment (FDI), through land rental reductions, preferential tax rates, and credit incentives for businesses in the industry.
IV. Food processing industry
Industrial food production is among the four key industries that HCMC prioritizes.
Last year, the People’s Committee of HCMC issued a development program to support businesses in the food industry for the 2020-2030 period. The program aims to reach a growth rate of 7 percent while creating a more favorable playground for both domestic and foreign food companies in the city.
The program includes:
- Training skilled human resources for the food industry;
- Supporting businesses in introducing their products to domestic and foreign markets through trade fairs; and
- Supporting food companies in digital transformation in production by technical and financial aid.
Despite positive signs, the food industry of HCMC still encounters major problems. Costs of raw materials for animal feed imported from Russia and Ukraine surged last year while logistics costs also added to increasing costs that negatively affected the bottom lines of many food processing businesses.
Another challenge to watch is the fierce competition from Indian and Thailand food producers. Food businesses in HCMC are now being encouraged to quickly digitally transform their operations to catch up with foreign competitors, in turn opening prospects for collaboration and investment partnerships with foreign stakeholders.
Why choose Dai Quang Minh LawFirm
With years of practical experience in legal consulting, Dai Quang Minh Law Firm is a pioneer in corporate support services, specializing in fast and affordable company formation. Below are the reasons to choose business registration services at Dai Quang Minh Law Office:
Human Resources: Established in September 2009, with over 15 years of practical experience, Dai Quang Minh Law Firm brings together a team of lawyers and legal experts with long-standing expertise in private economic groups nationwide.
Consulting Policy: Clients are gifted a completely free legal consulting package when using services at Dai Quang Minh Law Firm.
Professionalism and Experience: Dai Quang Minh Law Firm has a workforce with in-depth knowledge of business formation, ensuring a swift and accurate consulting process.
Time-Saving: Using Dai Quang Minh Law Firm's services helps you save precious time as we handle the entire process and related procedures.
Legal Insight: Dai Quang Minh Law Firm ensures that all relevant legal regulations are strictly followed in accordance with the law.
Customization: Our consulting services are highly adaptable to your specific needs, allowing you to choose options suitable for your business.
Trusted Partner: Dai Quang Minh Law Firm has built a reputation for providing affordable business setup consulting to many enterprises and individuals nationwide.
Confidentiality Assurance: Dai Quang Minh Law Firm is committed to the absolute protection of your personal and business information.
Detailed Support: Dai Quang Minh Law Firm provides detailed advice and support regarding the process and requirements to help you better understand business formation.
Process Optimization: Our consulting helps optimize the business setup process, minimizing potential risks and difficulties.
Excellent Customer Experience: Dai Quang Minh Law Firm is dedicated to providing the best customer experience through professional advice and enthusiastic support.
Focus on Business Plans: By utilizing our registration services, you can focus on developing your business plans and core activities instead of worrying about legal procedures.
Prospective clients seeking assistance with procedures for establishing a foreign-invested enterprise in Vietnam are kindly invited to contact Dai Quang Minh Law Firm via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Law Firm provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat: (+84) 337926405 (ID: _pouniverse)/ (+84) 869672216 (ID: DQM_Verna)
- Telegram: (+84) 337926405/ (+84) 869672216
BÀI VIẾT LIÊN QUAN:
1. FDI BUSINESS SETUP SERVICES IN VIETNAM (2026): KEY MATTERS TO PREPARE BEFORE STARTING A BUSINESS
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