Ho Chi Minh City currently has over 40,000 businesses in operation, including nearly 15,000 foreign-invested enterprises, attracting major global corporations to build industrial factories in the city, such as Intel, Samsung, and Nidec.
Ho Chi Minh City Leads in FDI Attraction
In 2023, Ho Chi Minh City led in foreign direct investment (FDI) attraction, with a total registered capital of 5.85 billion USD. Continuing to maintain its appeal, in the first half of 2024, FDI in Ho Chi Minh City reached USD 1.12 billion, with 597 new projects and a total investment of approximately USD 192.65 million, primarily concentrated in the manufacturing and processing industries.
Additionally, Ho Chi Minh City also ranked first in Vietnam in terms of the number of projects and ongoing foreign investment capital, with 12,520 projects and registered capital amounting to USD 57.64 billion. Currently, the city has over 400,000 businesses in operation, of which nearly 15,000 are FDI enterprises, attracting major global corporations to build factories in Ho Chi Minh City, such as Intel, Samsung, and Nidec.
Benefits of Building Factories in Ho Chi Minh City
Central Economic Hub of Southern Vietnam
Many FDI investors choose construction companies in Ho Chi Minh City for their factory projects because this is a key economic center for both the Southern region and the whole country of Vietnam. Covering an area of approximately 2,095 km², Ho Chi Minh City holds a prime location at the crossroads of Southeast Vietnam and the Mekong Delta. It borders industrially developed provinces like Binh Duong, Dong Nai, Ba Ria – Vung Tau, Tay Ninh, Long An, and the East Sea. Thanks to this advantageous position, Ho Chi Minh City serves as a major transportation hub, connecting the provinces of Southeast Vietnam and the entire country, creating favorable conditions for companies constructing factories in the city to facilitate production and trade.
Moreover, Ho Chi Minh City is a critical gateway for international trade with the Trans-Asia Highway, linking Ho Chi Minh City to Phnom Penh, Cambodia’s capital, in just about one and a half hours by car, significantly reducing transportation time for goods between countries in Southeast Asia.
The Biggest Economic Locomotive of Vietnam
Ho Chi Minh City is the biggest economic locomotive of Vietnam, accounting for 20% of the national GDP and contributing over 25% of Vietnam’s annual budget revenue. The city has a modern commercial infrastructure, including 238 markets, 206 supermarkets, 49 shopping centers, and 2,656 convenience stores, creating an extensive distribution network that helps businesses building factories in HCMC easily access the market and bring their products to consumers.
In addition, Ho Chi Minh City has a large consumer market with over ten million residents. In 2022, the average income per capita exceeded 6,700 USD per year, nearly 1.6 times higher than the national average. This indicates a high purchasing and consumer demand, presenting significant opportunities for businesses to develop consumer products and services.
Cat Lai Port – Ho Chi Minh City
Modern Transportation Infrastructure
Ho Chi Minh City’s diverse transportation infrastructure makes it a critical hub for goods circulation both domestically and internationally, providing favorable conditions for businesses building factories in HCM City to trade and transport goods:
- Roads: The city is connected to the southern provinces and Tay Nguyen region via national highways like 1K, 22, and 50, along with modern expressways. Notably, the Ring Road no.3 project is underway and expected to be completed by June 2026, further enhancing regional connectivity.
- Rail: The North-South railway, with Saigon Station as a key logistics hub, facilitates the transport of goods between southern, central, and northern provinces. The city is also focused on developing its urban railway system, with eight planned lines, including Metro Line 1 (Ben Thanh – Suoi Tien), which is expected to become operational in 2024.
- Waterways: Ho Chi Minh City has 43 ports, accounting for nearly 15% of Vietnam’s total, including several major international and domestic ports. Among them, Cat Lai Port is the largest in the country, with a capacity of 6.4 million TEUs annually, supporting the import-export activities of businesses.
- Air: Tan Son Nhat International Airport is the largest in Vietnam, with an average of 750-800 international flights per day, serving forty million passengers and handling 500,000 tons of cargo annually.
Abundant Workforce
With a population of around ten million, Ho Chi Minh City not only has a large but also a highly skilled labor force. The city has nearly five million trained workers, and its labor productivity is 2.6 times higher than the national average, meeting the demands of industries requiring specialized skills. HCMC has 109 universities and colleges, as well as 314 scientific and technological organizations, facilitating the advancement of the workforce’s expertise.
Moreover, Ho Chi Minh City is a major research and development hub, with 279 laboratories and nearly twenty thousand experts in science and technology. This is a key factor that has attracted significant foreign direct investment in high-tech industries to establish factories in the city.
Investment Incentives to Attract FDI Enterprises
To attract FDI investors into building factories in Ho Chi Minh City, the city has issued Resolution No. 98/2023/QH15 with several appealing support policies, including:
Strategic investors building factories in Ho Chi Minh City are granted several unique incentives:
- Enterprises can deduct 150% of their research and development (R&D) expenses when calculating corporate income tax.
- They enjoy priority customs and tax procedures for exported and imported goods in accordance with the law.
The city supports innovation and startup activities for FDI enterprises investing in its priority sectors:
- Exemption from corporate income tax and personal income tax for five years, as specified in Resolution No. 98/2023/QH15.
- Non-refundable support for innovation and startup project incubation costs, including project selection activities, expert consultations, direct labor costs, innovation and startup support services, and the use of technical infrastructure and incubation facilities.
List of Export Processing Zones and Industrial Parks in Ho Chi Minh City – Updated 2024
1. Tan Thuan Export Processing Zone
- Factory rental area: 41,233.92 m²
- Location: Tan Thuan Dong Ward, District 7
- Rental price:
- Factory: 7.5 – 8 USD/m²/month
- Office: 17 – 24.5 USD/m²/month
- Infrastructure maintenance fee: 0.25% of annual export turnover
2. Linh Trung 1 Export Processing Zone
- Land rental area: 2.544 ha
- Factory rental area: 12,901 m²
- Location: Linh Trung Ward, Thu Duc City
- Rental price:
- Factory: 4.3 – 6.5 USD/m²/month
- Land: 9 USD/m²/month
- Infrastructure maintenance fee: 2,270 VND/m²/month
3. Linh Trung 2 Export Processing Zone
- Land rental area: 0.3836 ha
- Factory rental area: 2,195 m²
- Location: Binh Chieu Ward, Thu Duc City
- Rental price:
- Factory: 4.3 – 6.5 USD/m²/month
- Land: 9 USD/m²/month
- Infrastructure maintenance fee: 2,270 VND/m²/month
4. Hiep Phuoc Industrial Park
- Land rental area:
- Phase 1: 8.2 ha
- Phase 2: 7.9 ha
- Location: Long Thoi and Hiep Phuoc Communes, Nha Be District
- Infrastructure maintenance fee: 18,928 VND/m²/year
5. Dong Nam Industrial Park
- Rental area:
- Industrial land: 6 ha
- Logistics land: 9.41 ha
- Factory: 10,000 m²
- Location: Provincial Road 8, Binh My and Hoa Phu Communes, Cu Chi District
- Rental price:
- Infrastructure rent: 250 – 260 USD/m²
- Factory rent: 5 – 6 USD/m²/month
- Infrastructure maintenance fee: 13,500 VND/m²/year
6. Tan Phu Trung Industrial Park
- Land rental area: 13.97 ha
- Location: National Highway 22, Tan Phu Trung Commune, Cu Chi District
- Rental price:
- Land: 225 USD/m²
- Factory: 6 USD/m²/month
- Infrastructure maintenance fee: 12,500 VND/m²/year
7. An Ha Industrial Park
- Location: Pham Van Hai Commune, Binh Chanh District
- Investor: Nhat Thanh Investment and Construction Consulting JSC
8. Tan Tao Industrial Park
- Land rental area: 13.1 ha
- Location: Tan Tao A Ward, Binh Tan District
- Rental price:
- Industrial land: 260 USD/m²
- Service center land: 500 – 1,000 USD/m²
- Infrastructure maintenance fee: 10,180 – 12,730 VND/m²/year
9. Automotive Mechanical Industrial Park
- Location: Provincial Road 8, Hoa Phu Commune, Cu Chi District
- Land rental price: 227.27 – 268.59 USD/m²
10. Le Minh Xuan Industrial Park
- Location: Tan Nhat Commune and Le Minh Xuan Commune, Binh Chanh District
- Infrastructure maintenance fee: 1,400 VND/m²/month
11. Le Minh Xuan 2 Industrial Park
- Location: Le Minh Xuan Commune, Binh Chanh District
- Investor: Le Minh Xuan 2 Industrial Park Investment JSC
12. Le Minh Xuan 3 Industrial Park
- Rental area:
- Land: 6 ha
- Factory: 8,760 m²
- Location: Tran Van Giau Street, Le Minh Xuan Commune, Binh Chanh District
- Rental price:
- Infrastructure rent: 310 – 320 USD/m²
- Factory rent: 5.5 – 6.5 USD/m²/month
13. Vinh Loc Industrial Park
- Factory rental area: 1,470 m²
- Location: Binh Hung Hoa B Ward, Binh Tan District; Vinh Loc A Commune, Binh Chanh District; and Ba Diem Commune, Hoc Mon District
- Factory rental price: 5 – 5.5 USD/m²/month
- Infrastructure maintenance fee: 14,351 VND/m²/month
14. Northwest Cu Chi Industrial Park
- Land rental area: 0.46 ha
- Location: Tan An Hoi Commune, Cu Chi District
- Infrastructure maintenance fee: 7,176 VND/m²/year
15. Binh Chieu Industrial Park
- Land rental area: 0.77 ha
- Location: Binh Chieu Ward, Thu Duc City
- Rental price: 1 USD/m²/month
- Infrastructure maintenance fee: 15,700 VND/m²/year
16. Tan Binh Industrial Park
- Location: Tay Thanh Ward, Son Ky Ward, Tan Phu District, and Binh Hung Hoa Ward, Binh Tan District
- Infrastructure maintenance fee: 16,800 VND/m²/year
17. Cat Lai Industrial Park
- Location: Thanh My Loi Ward, Thu Duc City
- Infrastructure maintenance fee: 22,988 VND/m²/year
See more: List of Industrial Zones in Vietnam – 2024
See more: Vietnam develops specialized policies for processing and manufacturing industry
