Ho Chi Minh City ( HCMC ), Vietnam's commercial and financial hub, has enacted a major administrative overhaul aimed at boosting investments, but US firms are urging the city to prioritize policy stability amid challenging global trade conditions.

The southern economic hub has cut 435 administrative procedures and simplified an additional 441, totalling 876 procedures streamlined for businesses, HCMC Mayor Nguyen Van Duoc said. The effort is aimed at bolstering investor confidence as the newly expanded city targets becoming a regional financial and technology centre.

Total foreign investment, including both newly registered FDI and indirect investment, has reached US$7.5 billion since the start of 2025, marking an increase of over 30% from the same period last year.

In July, the megacity merged with the neighbouring provinces of Binh Duong and Ba Ria-Vung Tau to create a region accounting for a quarter of the Southeast Asian country’s GDP.

Policy consistency

The push for reform comes as US trade challenges are expected to impact key Vietnamese exports.

At a meeting with HCMC leaders on October 30, Travis Mitchell, executive director of the American Chamber of Commerce ( AmCham ) in Vietnam, stressed that enhancing the stability and efficiency of domestic policies is critical for the city to maintain its attractiveness.

The call came after the administration of US President Donald Trump launched a series of tariffs on trade partners, including a planned increase on upholstered furniture and kitchen cabinets starting in January 2026.

"This is a challenging development for both our nations. For Vietnamese manufacturers, the impact will be a decline in export competitiveness and pressure on profit margins," Mitchell says, adding that policy stability would help "mitigate some of the uncertainty caused by global trade tensions".

AmCham members are continuing to shift production to Vietnam, a testament to its political stability and geographical advantages. The chamber is calling on the city to ensure that business licensing deadlines are met and tax and fee policies are consistently implemented across different provinces.

Business confidence up

European business confidence in Vietnam has reached a high, with the EuroCham Business Confidence Index ( BCI ) for the third quarter climbing to 66.5 points, its highest level in three years, reflecting trust in the country's direction.

In terms of capital attraction, HCMC reported drawing US$4.8 billion in registered capital in the first nine months of the year, leading the country and accounting for 16.8% of total national FDI. The city also ranked first nationwide in the number of new projects ( 49.3% ) and share purchases ( 71.2% ).

EuroCham vice chairman Erick Contreras says turning HCMC into an international financial centre would position Vietnam as a regional hub for capital flows, focusing on managing investments and accelerating green finance.

Focus on tech, green energy

HCMC is actively seeking investments in high-tech and green energy, targeting 20 projects in semiconductor chips, artificial intelligence, and hyperscale data centres, alongside eight offshore wind power projects.

Meanwhile, US chipmaker Marvell Technology has grown its Vietnam R&D team to over 500 engineers, mostly based in the megacity, making the country its third-largest global R&D centre after the United States and India, according to a company announcement on September 30.

Another US chipmaker, Intel, plans to expand its semiconductor operations in Vietnam as part of a global restructuring. Kenneth Tse, the company’s country manager for Vietnam, says the move could see part of its assembly, packaging, and testing work shifted from Costa Rica to the Southeast Asian country to optimize operational efficiency.

Despite these wins, operational bottlenecks persist. The Singapore Business Association ( SingCham ) notes that the regulated 13-day processing time for certain foreign investor licences often takes nine to 12 months in practice, if the inter-agency consultation periods are counted.

The European Chamber of Commerce ( EuroCham ) highlights several infrastructure issues that need urgent attention: delays in customs clearance, airport congestion, and immigration processing, and the need for integrated, intermodal urban transport.

EuroCham official Erick Contreras says sustainability must be at the heart of future investment, noting that HCMC is now feeling the consequences of the global climate crisis through "more frequent heavy rains, and the familiar sight of congested, flooded streets".

To address these challenges, he urges the city to adopt the European "sponge city" concept – designing blue-green infrastructure that absorbs, redirects, and coexists with natural flows – to build resilience and prevent frequent flooding.