Good News From Ho Chi Minh City: FDI Surges 220% As Tiktok And Major Corporations Ramp Up Investments

Ho Chi Minh City’s economy expanded by 8.27% in Q1 2026, the highest first-quarter growth in the past five years. A key highlight was the 220% surge in foreign direct investment (FDI), alongside major projects from TikTok and several global corporations.

According to the Ho Chi Minh City Statistics Sub-Department, the City’s gross regional domestic product (GRDP) in the first quarter of 2026 is estimated to have increased 8.27% year-on-year. This marks the strongest first-quarter growth in five years, reflecting a clear recovery of the country’s leading economic hub.

Excluding the oil and gas sector, growth would reach 8.58%. Fiscal performance also showed positive signals, with total budget revenue estimated at VND 242.8 trillion, up 16.8% year-on-year and fulfilling more than 30% of the annual target.

The service sector continued to serve as the City’s main growth driver, expanding 8.91% and contributing 56% of the total GRDP growth. The rapid expansion of e-commerce activities has further stimulated supporting industries. Specifically, the transportation and logistics sector grew 12.18%, contributing 13.8% to overall growth. Total retail sales of goods and consumer service revenue in the first three months of the year reached an estimated VND 474.556 trillion, up 13.3% compared to the same period in 2025.

Foreign direct investment (FDI) emerged as the most prominent highlight, with total registered capital reaching nearly USD 2.9 billion, a 220% increase year-on-year. Notably, the TikTok Shop Vietnam Co., Ltd. project, valued at USD 125 million and funded by a Singaporean investor, signals a strategic shift by cross-border digital platforms.

This investment follows discussions between TikTok’s leadership and the Ho Chi Minh City People’s Committee in late 2025. Instead of maintaining a cross-border service model, the company is now planning to transition toward a localized operating structure within the Ho Chi Minh City International Financial Centre (IFC). According to the roadmap, TikTok intends to establish three separate legal entities to manage logistics services, digital payments, and digital commerce.

Meanwhile, the Techtronic Tools Vietnam Factory project, worth USD 81 million, further strengthens the City’s role in the global manufacturing supply chain.

The business environment in Ho Chi Minh City remains positive, with more than 13,600 newly established enterprises, representing an increase of over 46% in both number and investment capital scale. In the manufacturing sector, the industrial production index (IIP) is estimated to have risen 11%.

Among key industries, four major industrial sectors grew by 13.6%, led by the pharmaceutical and chemical sector, which surged 24.5%, followed by food processing and mechanical engineering. These figures demonstrate the adaptability of the business community amid ongoing volatility in global logistics and energy costs.

The tourism sector also contributed significantly to economic momentum, as the City welcomed nearly 20 million international and domestic visitors in the first quarter. The 22nd Ho Chi Minh City Tourism Festival alone generated an estimated VND 120 billion in revenue, showcasing around 1,000 tourism products. Businesses’ proactive efforts to restructure products and optimize operations have helped maintain stable consumer demand.

Looking ahead, Ho Chi Minh City aims to attract approximately USD 11 billion in FDI for the full year 2026. The City is counting on new growth drivers such as the International Financial Centre and the Free Trade Zone. The decisive implementation of special institutional mechanisms under relevant resolutions is expected to create significant momentum for the City to achieve annual growth of 10% or higher, with a focus on accelerating public investment disbursement and removing bottlenecks in investment procedures.