Can Tho Seeks to Improve FDI Quality, Create New Growth Momentum

Can Tho City in southern Vietnam is striving to enhance the quality of its foreign direct investment (FDI) and create new growth momentum. This initiative is positioned within the broader context of Vietnam's economy aiming to transition from mere expansion to growth that generates more sustainable, risk-adjusted returns. Recent trends show that in northern Vietnam, ready-built factories attracted 73% of new manufacturing FDI over the past two quarters, indicating a growing demand for premises that can be put into operation quickly. According to John Campbell, Director and Head of Industrial Services at Savills Vietnam, investment in sectors like electronics and semiconductors continues to concentrate in northern localities due to their relatively complete manufacturing ecosystems, including industrial infrastructure, technical labor, and supplier networks. Notably, while the number of new FDI projects increased by only 9.4%, their registered capital surged by 96.8%. This signifies a substantial increase in the average project size and a stronger initial commitment from investors. Investors are drawing a clearer distinction between economies driven by cyclical growth and those capable of converting growth momentum into sustainable, risk-adjusted returns. This trend reflects Vietnam's ambition to attract high-value-added industries and elevate its position in global value chains, moving beyond being just a production base. Vietnam is expected to remain the growth leader in Southeast Asia during the 2026-2035 period, according to a report released on September 16 by the US's Bain & Company, Singapore's DBS Bank, and Vriens & Partners. This suggests international recognition of Vietnam's steady progress in structural reforms and industrial upgrading. Furthermore, trade and investment cooperation between Vietnam and China has provided strong momentum within the broader ASEAN-China relationship, playing a key role in connecting markets and production chains, with substantive cooperation advancing across multiple areas. This highlights Vietnam's strategically important geopolitical position and its pursuit of economic interests amidst great power dynamics. Ho Chi Minh City also plans to implement a range of tasks and solutions to enhance business competitiveness, promote sustainable exports, expand markets, and enable local businesses to engage more deeply in global value and supply chains. This move is also expected to contribute to the development of Ho Chi Minh City as a regional hub for trade, logistics, and international economic integration.