Ho Chi Minh City is seeking capital from the Republic of Korea for high technology, supporting industries, semiconductors, infrastructure and green energy. The city has pledged to improve the investment climate and quickly address corporate problems. The information was released on November 5 at a dialogue between Ho Chi Minh City leaders and Korean enterprises.
The dialogue was co-hosted by the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC) and the Consulate General of the Republic of Korea in the city.
Investment and new projects
ITPC Director Pham Quang Nhat said the dialogue has been held annually since 2021 as a direct channel for a transparent, stable and open investment climate. More than 4,500 Korean companies operate in the city, which is also home to the country’s largest Korean community.
Ho Chi Minh City aims to become a modern megacity and achieve double-digit growth. The city sees foreign investment, especially high-tech, high added-value and green projects, as a major driver of growth. Pham Quang Nhat said it is developing new mechanisms to expand opportunities in semiconductors, artificial intelligence, the digital economy, the green transition, clean energy and an international financial centre.
The Republic of Korea ranks first in the city by number of projects, with more than 3,400, and second by registered capital, which exceeded 15.8 billion USD at the end of September. The city is seeking 200 projects in nine sectors, many of them matching Korean strengths. They include electronics, semiconductors, high technology, supporting industries, next-generation industrial parks, urban transport, ports, logistics and urban development.
The municipal departments of industry and trade and finance, together with the Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA), said the city is drafting a plan to convert industrial and export-processing zones for high-tech, ecological and next-generation industries. For plants moving out of residential areas, the city aims to provide replacement industrial land as part of the relocation. It is also studying interest-rate support for infrastructure investors and companies involved in the conversion of the zones.
Officials from the departments of science and technology and industry and trade described support under the revised High Technology Law. The measures include funding of up to 100% of research and development costs for strategic technologies, import-tax exemptions for specialised research machinery and materials, support for intellectual-property protection costs, and loan interest support of up to 10% a year for as long as five years.
Problems raised by companies
Beyond investment issues, Korean firms reported difficulties with licences for imported consumer goods, temporary-residence declarations for foreigners, electronic administrative procedures and final tax settlements when companies dissolve or relocate.
Companies said some finalisation files for dissolution or relocation had taken years to process, while officials requested documents of unclear necessity. Businesses called for published processing deadlines and a defined scope for explanatory documents. They also pointed to inconsistent dossier and notarisation requirements among officials handling investment registration certificates and enterprise registration certificates, and called for the requirements to be standardised.
Deadline for responses
Nguyen Cong Vinh, Vice Chairman of the Ho Chi Minh City People’s Committee, told departments and agencies to go beyond listening and work directly with companies to resolve issues within their authority. For matters outside their remit, agencies should issue specific guidance or promptly report them to higher authorities.
“Within 15 working days after the dialogue, agencies must update progress and results on each petition. If full settlement is not possible, they must state the reason, the path forward and an expected completion date. For cross-sector issues, the lead agency and coordination duties must be clear so that firms do not have to contact multiple offices about the same matter,” he said.
Sources: VietnamPlus / Vietnam News Agency
