HCM CITY — HCM City could meet its full-year foreign direct investment target by mid-2026, as second-quarter inflows are projected to reach a record US$8.9 billion.

According to Hoàng Vũ Thảnh, director of the municipal Department of Finance, the southern economic hub attracted around $2.9 billion worth of FDI in the first quarter.

The amount is expected to surge sharply in the April–June period, potentially marking the largest quarterly inflow ever recorded by the city.

If realised, total FDI inflows by the end of June would reach roughly $11 billion, the city’s full-year target for 2026.

The projection was presented at the fifth meeting of the city Party Committee held on April 1.

Key projects driving the expected surge include the Cần Giờ international transshipment port, Nhà Bè Metrocity GS, a smart complex in Functional Zone 2a of the Thủ Thiêm New Urban Area, an AI data centre in Tân Phú Trung Industrial Park, and projects led by Evolution DC VN HCM City.

Thảnh described the second quarter as a breakthrough period for FDI attraction, noting that administrative procedures for several major projects have been largely completed and are expected to be finalised soon.

With the annual target already within reach, the city anticipates attracting an additional $2 billion in FDI over the remaining two quarters.

Trương Minh Huy Vũ, director of the city Institute for Development Studies, said the sharp rise in FDI inflows in the first quarter, up 219 per cent year-on-year, reflects sustained confidence among international investors despite global uncertainties.

He also highlighted strong domestic business sentiment, with newly established enterprises increasing by 47 per cent.

Total new and additional capital reached nearly VNĐ254 trillion ($10 billion), signalling optimism in the private sector.

To enhance investment efficiency, the city is continuing to review and publicise planning frameworks, project portfolios, land funds, and infrastructure systems, including logistics networks, to ensure readiness for incoming investors.

Efforts are also under way to expand industrial land, high-tech zones and logistics infrastructure, while restructuring industrial parks, export processing zones and functional areas to align with new development orientations.

The city is shifting its FDI strategy towards a more selective and targeted approach, prioritising multinational corporations, strategic investors, and those possessing core technologies and advanced governance capabilities.

Priority sectors include high technology, innovation, data centres, logistics, seaports, supporting industries, international finance, green growth and other high value-added industries.

Investment promotion activities are also being reformed, moving beyond general conferences and project listings to more targeted engagement tailored to specific markets, investor groups and priority sectors.

Authorities aim to accompany investors throughout the entire process, from initial exploration to project implementation, in order to improve conversion rates from interest to actual investment.

Strengthening linkages between foreign-invested enterprises and domestic firms is also seen as a key solution to enhance spillover effects and deepen integration within local supply chains.

Vũ said HCM City has set a target of more than 10 per cent economic growth in 2026. But in the first quarter the city only achieved growth of around 8 per cent, which was however higher than in the same period in the last two years.

Domestic consumption remains a critical pillar, with total retail sales of goods and services rising by 13.7 per cent. Tourism continues to be a major growth driver, generating VNĐ150 trillion in revenues, nearly half the full-year target.

With the country’s large population, the domestic market is expected to serve as a buffer amid uncertainties in global trade.

To meet the full-year growth target, the city will need to achieve at least 10.3 per cent growth in the first half and 11.5-12.5 per cent in the second half.

Looking ahead to the 2026-30 period, Vũ emphasised that institutional reforms would play a crucial role alongside traditional growth drivers such as investment, consumption and exports.

Two major policy frameworks currently under development, the Special Urban Law and the city’s master plan, are expected to serve as key levers for sustaining double-digit growth. These would enable the city to transition from a policy-implementing locality to a more proactive policy-making entity.

Planning consultants are currently benchmarking the city against Hà Nội and other major global metropolitan areas with similar scale and strategic roles to shape a new development model based on three zones, special areas and growth corridors. — VNS