HCMC – Capital inflows into export processing zones (EPZs) and industrial parks (IPs) in HCMC in 2025 showed a clear divergence, with domestic investment rising strongly while foreign direct investment (FDI) declining in newly licensed projects.
According to the Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA), total investment capital attracted in 2025, including newly approved projects and capital revisions, exceeded US$5.4 billion, up 2.66% year-on-year and surpassing the annual target by 19.46%.
Demand for production space surged alongside this growth: leased land reached 475.13 hectares, up more than 71%, while leased factory space exceeded 620,600 square meters, more than 4.5 times higher than a year earlier.
However, the investment landscape revealed a mismatch between the two capital flows. FDI inflows totaled more than US$3.44 billion, down 5.78% year-on-year. Notably, newly registered FDI fell sharply, with 218 new projects capitalized at over US$1.42 billion, a steep decline of 43.24%.
In contrast, adjusted FDI capital jumped 76.35% to more than US$2 billion across 189 projects, indicating that existing foreign investors continued to expand operations rather than launching many large-scale new projects.
Domestic investment, meanwhile, emerged as a bright spot. Total domestic capital reached VND49 trillion, equivalent to more than US$1.96 billion, up 19.44% year-on-year. Newly registered domestic capital picked up by over 30% to nearly VND34 trillion in 107 projects, reflecting the proactive expansion of local enterprises amid global cost volatility and more cautious international capital flows.
By contrast, adjusted capital from domestic firms edged down 8.61%, suggesting that new investment played the main role in driving growth.
By the end of 2025, HCMC’s EPZs and IPs had 5,341 active investment projects with total registered capital of nearly US$78 billion. Of this, FDI projects accounted for the bulk in terms of capital scale, at US$57.17 billion, while domestic projects totaled about US$20.78 billion. Nearly 90% of projects were in operation, pointing to relatively high system stability, although more than 90 projects remained temporarily suspended.
Under the 2021–2030 master plan, HCMC aims to develop 105 EPZs and IPs covering more than 50,000 hectares. At present, 58 operating industrial parks report an average occupancy rate of around 80%, putting significant pressure on land availability and the restructuring of industrial space in the coming years.
In terms of labor, nearly 915,000 workers are employed in the city’s EPZs and IPs, with more than 77% working for FDI firms. This underscores that despite a slowdown in newly licensed FDI, the foreign-invested sector remains a pillar for job creation and production.
