FDI "Booms" in the Southern Key Economic Region
It can be said that the merger of provinces and cities has opened up new development opportunities, creating a significant impetus to attract FDI to localities in the Southern Key Economic Region . In the first 11 months of 2025, FDI flows recorded a clear “boom” in Ho Chi Minh City, Dong Nai, and Tay Ninh.
Ho Chi Minh City attracted USD 7.67 billion in FDI capital in the first 11 months of 2025, a 24.2% increase compared to the same period. Notably, following the merger, a series of investors have come to Ho Chi Minh City seeking cooperation opportunities. The city has welcomed and worked with 55 domestic and foreign delegations who came to learn about the investment environment and discuss business cooperation. Currently, numerous foreign corporations are choosing Ho Chi Minh City as a location for investment expansion. For example, Techtronic Industries (TTI) announced plans to expand production at its Milwaukee factory in the Ho Chi Minh City High-Tech Park. Similarly, AEON Group (Japan) also announced plans to open three more large shopping malls in Ho Chi Minh City, with a total investment of thousands of billions of VND. In the high-tech sector, Smart Tech Group (USA) has proposed investing in a battery storage manufacturing plant in Ho Chi Minh City with an investment of USD 340-850 million. The data center project is attracting interest from a number of major players, such as Eaton Group (USA), Evolution Group (part of Warburg Pincus – USA), and Hyosung (Korea).
In Dong Nai, FDI attraction has also seen a strong breakthrough after the merger. Data from the Department of Finance shows that in the first 11 months of 2025, total foreign investment reached USD 2.95 billion. FDI attraction into industrial parks alone exceeded the annual plan by 32%, reaching USD 2.5 billion. Not only did Dong Nai exceed its investment attraction targets, but its FDI disbursement also yielded positive results. By mid-November 2025, the disbursed value of FDI projects in industrial parks and economic zones across the province reached over USD 1.6 billion, surpassing the planned USD 1.5 billion, which was aimed at achieving double-digit economic growth in Dong Nai. In the area of investment outside industrial zones, Dong Nai has attracted a number of large FDI projects, most notably the Aeon Mall Bien Hoa project with a total investment of over 6,000 billion VND implemented by Aeon Group (Japan).
Meanwhile, in Tay Ninh, during the first 11 months of 2025, 163 new projects were approved, an increase of 41 projects; and capital adjustments were made for 151 projects, an increase of 46 projects. The total investment capital for new and adjusted projects reached USD 589.4 million, an increase of USD 111.9 million compared to the same period. Mr. Tran Van Tuoi, Deputy Director of the Tay Ninh Department of Finance, said that in 2025, the province organized six delegations to promote foreign investment and welcomed many businesses from Japan, South Korea, China, Australia, etc. “After the merger, the expanded development space has given Tay Ninh more room to attract high-quality FDI. The province’s view is not to chase quantity, but to attract selective investments, prioritizing high technology, energy efficiency, and environmental friendliness”, Mr. Tuoi emphasized.
