Ho Chi Minh City eyes chip design as US tech firms look to Vietnam

Held on November 2, the forum focused on Ho Chi Minh City's new development space and emerging investment opportunities, coinciding with the Fortune Southeast Asia 500 Summit taking place on November 3.

Standing Vice Chairman of Ho Chi Minh City People’s Committee Nguyen Loc Ha (second, left). Photo: ITPC

"Ho Chi Minh City's appeal lies in its position as an economic hub, its large consumer market, dynamic business community, and well-developed financial and trade services," Ha said.

"Following its merger with Binh Duong and Ba Ria-Vung Tau, the city now has an integrated development space encompassing finance, services, innovation, modern industry, and deep-water seaports," he added.

In the first 10 months, Ho Chi Minh City attracted more than $19 billion in foreign direct investment (FDI), exceeding its full-year target by around 74 per cent.

The city currently has more than 22,000 valid FDI projects with total registered capital of more than $157.4 billion.

"The Law on Urban Development, which took effect on October 1, establishes a legal framework with various policies for Ho Chi Minh City and other special-class cities. Together with the International Financial Centre and the Free Trade Zone, these frameworks aim to create a clear, consistent, and predictable regulatory environment," Ha said.

He added that the city targets double-digit growth and aims to become Asia’s economic, financial, and services hub by 2045.

“Priority sectors include strategic infrastructure, high technology, finance, logistics, and green energy. We seek to attract capital, technology, governance standards, and human resources, while strengthening connections between international businesses and domestic enterprises, universities, and research institutes,” he said.

Dr. Andrew Staples, editorial director of Fortune Asia. Photo: ITPC

Dr. Andrew Staples, editorial director of Fortune Asia, presented an overview of the regional economy through the Fortune Southeast Asia 500 ranking, launched three years ago.

He said that in the latest edition, based on 2025 financial data, companies on the 2026 list generated total revenue of $1.88 trillion, up 3.4 per cent on-year, and total profits of $150 billion, equivalent to a net profit margin of 8 per cent.

Vietnamese companies on the list stood out, generating combined revenue of close to $178 billion and achieving growth of 10.5 per cent, three times the Southeast Asian average and the second-fastest rate in the ranking, after Cambodia.

“Notably, the 72 Vietnamese companies on this year’s ranking, accounted for approximately one-quarter of the total revenue growth recorded by this year’s Fortune Southeast Asia 500, even though their initial revenue base represented less than 10 per cent of the list’s total revenue,” he said.

Pham Quang Nhat, director of the Ho Chi Minh City Investment and Trade Promotion Centre, said the city was focusing on attracting investment into priority sectors, including high technology, strategic infrastructure, logistics, finance, and other high value-added industries.

“The city believes investment promotion must go hand in hand with supporting businesses throughout the implementation process. Issues beyond the centre’s authority will be consolidated and referred to the relevant agencies for consideration, helping improve coordination and resolution efficiency,” Nhat said.

According to Nhat, investment flows are currently concentrated in high technology, digital infrastructure, and logistics.

Nhat said that Ho Chi Minh City’s investment incentive framework is structured around three tiers: nationwide incentives for priority sectors, the city’s specific incentive mechanisms, and incentives available in special institutional zones.

“These three tiers of incentives can be combined depending on the sector, scale, and location of each project, in accordance with applicable regulations,” he said.

Travis Mitchell, executive director of the American Chamber of Commerce in Vietnam, said Ho Chi Minh City was facing a historic opportunity to attract a new wave of US investment, thanks to its expanded development space, talented workforce, and dynamic business environment.

“The United States is Vietnam’s largest export market, with bilateral trade exceeding $215 billion in 2025, up 39 per cent on-year, Vietnam’s exports to the US reached more than $153 billion, accounting for 32 per cent of the country’s total exports,” Mitchell said.

He described Ho Chi Minh City as a strategic gateway connecting Vietnamese businesses with the US market with three strategic areas with significant potential for cooperation: semiconductors and high technology, energy, and healthcare.

Commenting on the shift of leading US semiconductor and technology corporations such as Intel, Nvidia, and Qualcomm towards Vietnam, Mitchell said the country is no longer viewed simply as a low-cost manufacturing destination.

"Businesses are increasingly recognising the country's potential to become an innovation hub and undertake higher value-added activities," he added.

Alongside changes in global supply chains, he said the city's key advantage lies in its pool of highly skilled technical talent.

"For Ho Chi Minh City, the opportunity lies in building on its existing strengths in manufacturing and engineering to move further into chip design, research and development, and advanced technologies," he stressed.

More than $13 billion in projects approved at AEF 2026 On the morning of October 28, as part of the Autumn Economic Forum 2026, Ho Chi Minh City announced 12 projects that had received in-principle investment approval and/or investment registration certificates, with total investment of approximately $13.58 billion.

UK-Vietnam Business Forum focuses on high-value economy by 2045 The 2026 UK-Vietnam Business Forum took place in Ho Chi Minh City, focused on building a high-income, high-value economy by 2045.