HCM CITY — Foreign business associations commended HCM City’s strong socio-economic performance and sustained efforts to improve its business and investment environment at a conference held on October 30.

However, they said that, to achieve a genuine breakthrough, the city must undertake deeper and more substantive reforms in institutions, infrastructure and human resource quality to create a transparent and sustainable investment climate and enhance competitiveness.

Organised by the Investment and Trade Promotion Centre of HCM City (ITPC), the “Meeting between HCM City Leaders and the FDI Enterprise Community 2025,” with the theme “Ho Chi Minh Metropolis: Sustainable Development in a New Era of Opportunities,” brought together around 400 local and international participants.

ITPC Director Trần Phú Lữ said the foreign business community had contributed not only capital, technology, and advanced management practices but also helped the city integrate more deeply into global value chains.

Despite global and domestic challenges, these investors have continued to show strong confidence in HCM City.

The conference provided a platform for city authorities to present socio-economic development orientations while listening directly to the experiences and recommendations of the foreign business community.

These insights would help refine policies and enhance the city’s competitiveness and regional appeal.

Dr Trương Minh Huy Vũ, president of the HCM City Institute for Development Studies, described the city’s merger with Bình Dương and Bà Rịa–Vũng Tàu enables a comprehensive reconfiguration of the development landscape, positioning the city as a special administrative and economic entity with the mission to pioneer and spread growth nationwide.

Nguyễn Thanh Toàn, deputy director of the Department of Finance, said the city remains Việt Nam’s top FDI destination, with 19,840 valid projects and total registered capital of US$141.2 billion as of September 30, 2025. In the first nine months of 2025 alone, total registered investment, including new and adjusted capital, in the city reached $7.13 billion, up 37.4 per cent year-on-year.

HCM City calls for investment in 20 major projects across strategic sectors, including the development of an international financial center, large-scale data centres, and mixed-use complexes such as international convention, exhibition, and commercial-service hubs, he said.

Faster reforms needed

Sam Conroy, president of the Australian Chamber of Commerce in Việt Nam, praised the city’s long-term vision, which aims to position HCM City as a global financial hub, innovation centre and sustainable metropolis.

He said Australian investors “recognise the city’s progress in infrastructure, digital transformation and sustainability,” but added that congestion, regulatory inefficiencies and difficulties in retaining skilled workers continue to affect businesses.

AusCham urged the city to accelerate reforms that enhance competitiveness, strengthen ESG adoption and deepen international integration.

Business associations called for further simplification of administrative procedures and the removal of overlapping regulations, stressing the need for transparency and predictability in law enforcement, particularly in investment licensing, land allocation, customs, and visa processing.

Okabe Mitsutoshi, chief representative of the Japan External Trade Organisation in HCM City, cited JETRO’s 2024 survey showing that the top three risks in Việt Nam’s investment environment are complex administrative procedures, rising labour costs and an inadequate legal framework.

He called for “continued efforts to simplify procedures and improve transparency in areas such as corporate establishment, import procedures, work permits and visas to ensure stability for Japanese investors.”

Foreign business groups voiced strong support for the city’s plan to develop an international financial centre, but said success would depend on greater policy autonomy and alignment with international standards.

Travis Mitchell, executive director of the American Chamber of Commerce in Việt Nam, said the creation of international financial centres in HCM City and Đà Nẵng represents one of the most ambitious reforms in recent years.

“If fully realised, these centres could elevate Việt Nam as a regional hub for capital and green finance.”

He highlighted the importance of regulation, transparent capital mobility and effective dispute resolution.

Echoing this, Erick Contreras, vice chairman of the European Chamber of Commerce in Việt Nam, said transforming HCM City into an international financial centre would make Việt Nam a regional hub for managing, not just attracting, capital flows.

A well-regulated financial hub could accelerate innovation in green finance and drive sustainable growth across Southeast Asia, he added.

The business associations also urged the city to expedite major transport projects such as metro lines, Long Thành Airport and upgrades to Cát Lái Port to ease logistics bottlenecks.

Foreign enterprises commended the city’s digitalisation efforts and called for continued support for e-commerce, FinTech and AI, along with clearer regulations on cybersecurity and data protection to build business and consumer confidence, while enhancing cooperation in developing a skilled workforce.

They are also committed to contributing their expertise, technology, and resources to support HCM City’s vision for sustainable, inclusive growth.

Concluding the meeting, Nguyễn Văn Được, chairman of the HCM City People’s Committee, reaffirmed his government’s commitment to protecting investors’ rights and interests and promptly resolving businesses’ concerns.

“We listen, we understand and we act, because your growth is also the city’s growth.”

He called on foreign investors to expand in line with the green transition, innovation and the knowledge economy, while sharing expertise and technology with local enterprises.

The city’s new development direction reflects a shift from quantitative to qualitative growth. It seeks to attract investors who share its commitment to sustainable prosperity, innovation and community well-being, he added. — VNS