HCMC – Fresh foreign direct investment (FDI) approvals in HCMC last year amounted to US$3.94 billion, up 5.4% year-on-year, said HCMC Chairman Phan Van Mai. Therefore, the city emerged as the largest recipient of FDI among 63 cities and provinces nationwide.

Mai told Phap Luat Online newspaper that FDI approvals in the manufacturing sector in 2022 dropped by 9.7% against 2021, but new investments in education, training and technology increased six-fold year-on-year.

A report by the HCMC Department of Planning and Investment said that from January 1 to December 20 of 2022, 893 new FDI projects were registered in the city with total capital of US$601 million.

The period saw 192 operational FDI projects adjusting up their registered capital by more than US$1.6 billion. Foreign investors also committed US$1.74 billion through M&A transactions.

FDI projects play a key part in the city’s socioeconomic growth, said Mai.

In 2022, the foreign sector accounted for 13.02% of the city’s total investments, contributed VND78 trillion to the local budget, created over 568,000 jobs and represented 61% of the city’s export revenue.

Since the Law on Foreign Investment in Vietnam was passed by the National Assembly in late 1987, foreign investors from 116 countries and territories have pledged over US$79 billion in over 35,480 projects in HCMC.

Mai said that the city always attaches much importance to FDI.

The city will continue gathering feedback and recommendations from foreign investors and adopt measures to create a more sustainable and attractive business climate, said Mai.

He said the city wanted more foreign investment in high technology, modern services, urban agriculture, green transition, digital transformation and supporting industries as these are the priority fields of the city in the coming years.

This year HCMC will build a roadmap for digital transformation in industrial development to attract more foreign investors.