(Source: Investment & Trade Promotion Centre of Ho Chi Minh City)
On May 12, 2023, the Investment and Trade Promotion Center of Ho Chi Minh City (ITPC), in collaboration with the HCMC Institute for Development Studies and the Department of Planning and Investment of Ho Chi Minh City, organized a scientific seminar entitled "Attracting FDI Capital in HCMC in the Period of 2023 - 2025 with a Vision to 2030.”
The seminar was attended by eminent personalities such as Mr. Nguyen Tu Anh, Director of the General Department of the Central Economic Commission, Mr. Tran Van Bich - Head of the Economic Research Department at the HCMC Institute for Development Studies, Mr. Dao Minh Chanh – Deputy Director of HCM City Department of Planning and Investment, and Ms. Cao Thi Phi Van - Deputy Director of the Investment and Trade Promotion Centre, as well as numerous leaders and representatives from various businesses. HM&P’s Lawyers also actively participated and contributed their ideas during the seminar.
The seminar focused on Ho Chi Minh City’s declining ability to attract foreign direct investment (FDI). Discussions focused on identifying the reasons for this slowdown, addressing the challenges facing the city, and proposing possible solutions to improve the situation.
During the seminar, Mr. Nguyen Van Phuc, Managing Partner and representative of HM&P, provided valuable insights into the investment trend in Ho Chi Minh City. He shed light on the declining investment activities in the city compared to other regions that are currently experiencing a surge in attracting investors. Mr. Phuc remarked, "In the past, investors strongly favored Ho Chi Minh City as their first choice for capital investment. Today, However, their attention has shifted significantly towards the northern regions."
Mr. Nguyen Van Phuc - Managing Partner of HM&P at the Seminar
Various stakeholders share their views on the causes and challenges that Ho Chi Minh City needs to overcome in order to attract more FDI capital. Apart from external challenges, such as the upcoming implementation of a global minimum corporate income tax, which could result in the city losing its tax incentives, participants actively discussed the internal challenges facing the city.
Mr. Pham Phu Truong highlighted the mismatch between the city's potential and its infrastructure. He said, "Despite having many advantages, Ho Chi Minh City faces social drawbacks such as traffic congestion, flooding, and air pollution, which make investors and experts hesitant”. Challenges such as a shortage of available land and high land prices compared to neighboring provinces, as well as the need for improved investment procedures, were also addressed. Lawyer Nguyen Van Phuc, representing HM&P, added two more reasons for concern. Firstly, the city's investment information channels are still inadequate and difficult to access. Secondly, other localities have been gradually become more proactive in guiding businesses through the investment process.
The seminar concluded by highlighting the importance of aligning FDI attraction with Ho Chi Minh City's strengths. Ms. Cao Thi Phi Van emphasized the promotion of sectors such as e-commerce, software development, financial services, and the healthcare system. The city was also encouraged to focus on building regional linkages and positioning itself as a central coordination centre for production zones in neighboring areas.
The seminar highlighted the importance of creating a transparent and efficient investment environment with consistent policies to attract foreign investors to Vietnam. HM&P, with its in-depth understanding of the investment landscape, legal policy expertise, and extensive experience in assisting foreign investors, acts as a bridge to advise and provide valuable investment information to FDI enterprises interested in investing in Ho Chi Minh City and other regions of Vietnam in the near future.
Read more about the seminar at:
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