BUSINESS ENVIRONMENT
Ho Chi Minh City is located in a special geographical position, converging many favorable conditions for the economic development. Since olden time, the City has been a key strategic area of the South, a dense and prosperous trade center of exchange with foreigners.
Ho Chi Minh City at A Glance - 2015
- Area: 2,095 km2
- Administrative structure: 24 districts
- Population: 8,224.4 thousand, up 1.69% against 2014
|
| 2014 | 2015 |
| 1. GDP growth rate (%) | 9.59 | 9.85 |
| ·Agriculture-Forestry-Fisheries (%) | 5.90 | 5.87 |
| ·Industry and Construction (%) | 7.19 | 8.07 |
| ·Services (%) | 11.31 | 11.11 |
| 2. Index of Industrial Production (IIP) % | 7.0 | 7.9 |
| 3. Exports (million US$) |
| 30,588.2 |
| ·Export growth rate (%) | 8.8 | -2.4 |
| 4. Imports (million US$) |
| 33,752.3 |
| ·Import growth rate (%) |
| 9.4 |
| 5. Foreign investment (million US$) | 2,842.8 | 2,810.3 |
| 6. State revenue (billion VN$) | 255,020 | 280,767 |
| 7. State expenditure (billion VN$) | 43,986 | 59,735 |
Top trading partners of Ho Chi Minh City in 2015
|
| Export | Import | ||||
| Value (billion USD) | Share (%) | Compared to 2014 (%) | Value (billion USD) | Share (%) | Compared to 2014 (%) | |
| Total | 27,274.9 | 100.0 | 93.5 | 29,449.8 | 100.0 | 114.9 |
| United States | 4,960.6 | 18.2 | 111.8 | 1,327.7 | 4.5 | 97.7 |
| China | 3,928.0 | 14.4 | 110.3 | 6,487.3 | 22.0 | 126.7 |
| Japan | 3.087.6 | 11.3 | 73.2 | 2,194.9 | 7.5 | 124,2 |
| Malaysia | 1,366.4 | 5.0 | 86.2 | 1,429.8 | 4.9 | 120.8 |
| Hong Kong | 1,220.1 | 4.5 | 153.4 | 1,541.5 | 5.2 | 111.7 |
| South Korea | 1,142.5 | 4.2 | 66.1 | 2,005.0 | 6.8 | 110.5 |
| Singapore | 1,098.2 | 4.0 | 97.8 | 2,660.3 | 9.0 | 71.9 |
| Germany | 964.6 | 3.5 | 115.2 | 765.6 | 2.6 | 116.1 |
| Australia | 854.9 | 3.1 | 38.7 | 334.5 | 1.1 | 117.4 |
| Netherlands | 766.0 | 2.8 | 179.0 | 304.1 | 1.0 | 102.7 |
| United Kingdom | 648.9 | 2.4 | 116.5 | 226.9 | 0.8 | 123.9 |
| Philippines | 589.3 | 2.2 | 80.3 | 153.4 | 0.5 | 195.6 |
| Thailand | 572.5 | 2.1 | 66.1 | 1,877.0 | 6.4 | 131.3 |
| Indonesia | 464.5 | 1.7 | 106.4 | 629.3 | 2.1 | 137.2 |
| France | 422.1 | 1.5 | 102.0 | 327.5 | 1.1 | 117.9 |
| Taiwan | 397.8 | 1.5 | 47.7 | 1,591.7 | 5.4 | 90.7 |
| Cambodia | 364.9 | 1.3 | 169.7 | 45.1 | 0.2 | 118.7 |
| Italy | 290.7 | 1.1 | 107.4 | 278.7 | 0.9 | 107.8 |
| Belgium | 285.4 | 1.0 | 104.6 | 338.6 | 1.1 | 229.9 |
| India | 284.6 | 1.0 | 108.6 | 549.6 | 1.9 | 109.2 |
| Canada | 281.6 | 1.0 | 120.8 | 154.2 | 0.5 | 158.1 |
| Spain | 275.3 | 1.0 | 99.3 | 153.4 | 0.5 | 235.5 |
| Russia | 151.1 | 0.6 | 80.4 | 94.1 | 0.3 | 93.4 |
| Switzerland | 32.4 | 0.1 | 34.5 | 90.4 | 0.3 | 66.4 |
Top exported commodities of Ho Chi Minh City in 2015
| No |
| 2015 (million USD) | Change vs 2014 (%) |
| 1 | Textiles and garments | 5,297.0 | 101.9 |
| 2 | Computers, electrical products, spare parts and components thereof | 4,580.8 | 159 |
| 3 | Footwear | 2,484.5 | 107.7 |
| 4 | Rice | 1,179.8 | 90.6 |
| 5 | Fishery products | 682.4 | 89.2 |
| 6 | Rubber | 613.6 | 93.2 |
| 7 | Bags, pockets, wallets, suitcases, hats and umbrellas | 458.8 | 98.5 |
| 8 | Wood and wooden products | 455.9 | 88.3 |
| 9 | Coffee | 544.1 | 73.4 |
| 10 | Pepper | 525.4 | 100 |
Top imported commodities of Ho Chi Minh City in 2015
| No |
| 2015 (million USD) | Change vs 2014 (%) |
| 1 | Computers, electrical products, parts and components thereof | 4,728.8 | 145.5 |
| 2 | Fabrics | 2,405.4 | 104.1 |
| 3 | Plastic materials | 1,537.6 | 94.8 |
| 4 | Iron and steel | 1,382 | 85.5 |
| 5 | Pharmaceutical products | 1,261.4 | 122.7 |
| 6 | Chemical products | 906 | 99.9 |
| 7 | Textile, garment and footwear materials | 837.7 | 103.3 |
| 8 | Petroleum products | 612 | 119.8 |
| 9 | Chemicals | 575.6 | 99.9 |
| 10 | Paper | 492 | 100.1 |
Foreign direct investment in Ho Chi Minh City - 2015
| Form of investment | Number of projects | Registered capital (million US$) |
| 100% foreign capital | 455 | 1.244,1 |
| Joint venture | 98 | 1.560,3 |
| Contractual business | 2 | 5,9 |
| Total foreign investment | 555 | 2.810,3 |
Top investors in Ho Chi Minh City - 2015
| No |
| Number of projects | Investment capital (million USD) |
| 1 | United Kingdom | 10 | 1,202.6 |
| 2 | S. Korea | 120 | 465.1 |
| 3 | British Virgin Islands | 25 | 370.3 |
| 4 | Singapore | 83 | 140.8 |
| 5 | United States | 23 | 135.1 |
| 6 | Japan | 96 | 65.9 |
| 7 | Hong Kong | 24 | 51.6 |
| 8 | Seychelles | 1 | 50 |
| 9 | China | 22 | 34.4 |
| 10 | Taiwan | 16 | 6.7 |
Foreign direct investment by industry - 2015
| Industry | Number of projects | Registered capital (million US$) |
| Industrial manufacturing | 63 | 767,4 |
| Construction | 31 | 67,3 |
| Commerce | 165 | 167,3 |
| Science-Technology | 125 | 169,4 |
| Real estate | 13 | 1.497,6 |
| ICT | 86 | 32,1 |
| Transport, logistics... | 30 | 25,8 |
Source: Statistics Office of Ho Chi Minh City
An Economic Hub of the Nation
- The 9-million-people City is the biggest economic center of Vietnam
- Center of the Southern Key Economic Zone (50% of the country’s GDP, and 60% of the country’s FDI)
- Contributing 20% of the country’s GDP
- 100,000 companies (30% of Vietnam) registered in Ho Chi Minh City.
- The best infrastructure:
- Tan Son Nhat Airport: the biggest airport of the country, connect to 20 countries, 12.5 million passengers in 2008
- Saigon Ports: the biggest port system of the country, 54.2 million tons in 2008
- 1 high tech park, 2 software parks, 3 export processing zones, and 12 industrial parks
- First stock market, 47 foreign bank branches
- 3,000 foreign representative offices from 60 countries
- 41 universities, 29 colleges and 34 professional secondary with 500,000 students
Business-friendly Government
- One stop shops for investors: DPI, ITPC
- E-government:
- Business registration on line
- Dialog On-line: 42 government authorities responsible for answering any enquiry from businesses within 5 working days
- Reduction of procedures waiting time.
- Face-to-face meetings with foreign investors, business consultants and attorneys regularly and per request.
Ho Chi Minh City by 2020
- Government target: HCMC will turn into a 10-million population metropolitan characterized by hi-tech industries, high end services and scientific - technological research facilities catching up regional level
- GDP/capita US 6,000; economic structure : 60.4 % service, 39.2 % industry
- Housing demand: from 11.5 m2/person currently to 17 m2/person by 2020