Top Cities for Business in Vietnam for Foreigners

Vietnam has undergone a historic transformation. Effective July 1, 2025, the country implemented a massive administrative reform, streamlining 63 provinces into 34 consolidated units. This bold move has created “super cities” and expanded economic zones designed to compete on a global scale.

For foreign investors, this means larger markets, integrated supply chains, and simplified administration. The political environment remains stable, and the government has introduced aggressive new tax incentives to support this restructuring. Labor costs remain competitive, while infrastructure projects are connecting these new hubs faster than ever.

Here are the top cities for business in Vietnam for foreigners in this new era.

Is Vietnam a Good Place to Invest?

Vietnam has stood out as a promising spot for investors in Asia for a long time. The country enjoys high economic growth and a stable political environment. The government also creates policies that support business owners. It combines competitive labor costs with a young and well-educated population. This strategic location appeals to both regional and international investors. These fundamentals are perfect for sectors like manufacturing, technology, services, and agriculture.

Several strong factors highlight the appeal of Vietnam for investment.

• Sustained Economic Growth: The GDP in Vietnam stays resilient even when the global economy faces a downturn. This strength comes from strong export manufacturing and high domestic consumption.
• Strategic Trade Position: The country sits right in the center of Southeast Asia. It is a member of many free trade agreements which gives companies special access to the biggest markets in the world.
• Government Reforms: The government has simplified the steps to form a company. Legal transparency is better now and there are specific incentives for priority industries.
• Growing Consumer Market: The middle class is growing fast and they have more purchasing power. This opens up chances in retail, services, and high-value products.
• Infrastructure Development: There is ongoing money going into transport and logistics. New industrial zones make it easier for enterprises to operate.

These factors make Vietnam more than just a place for short-term returns. It is a country with vast long-term potential. Investors can find professional support for company incorporation and trademark registration to ensure they operate in a compliant way.

Top 5 Cities for Business in Vietnam for Foreigners 

Vietnam continues to solidify its position as a “Tiger Cub” economy. Despite global headwinds, the country is projected to see robust growth, with major cities transitioning from traditional manufacturing to high-tech, green energy, and smart urban management.

Below is a detailed breakdown of the main economic regions you need to know.

1. Ho Chi Minh City – Vietnam’s Economic Powerhouse

 

Ho Chi Minh City (HCMC) is still the country’s main growth engine. The city contributes around 23% of Vietnam’s GDP and roughly 27% of state budget revenue, even though it covers just 0.6% of Vietnam’s land area and about 8.6% of the population. By 2025, HCMC’s GRDP is projected to be 1.5 times higher than in 2020, with per capita income around USD 8,400, close to 1.7 times the national average.

On the trade side, the city leads the country in exports. In 2023, HCMC recorded USD 42.46 billion in export revenue, topping all provinces and cities, and by 2024 exports rebounded to nearly USD 47 billion. For foreign investors, HCMC is already dense with projects: by late 2024 the city hosted 12,398 FDI projects with USD 57.63 billion in registered capital, the highest in Vietnam.

HCMC’s economy leans heavily into services and high-value manufacturing:

• Services (finance, logistics, retail, IT) are the main growth driver, with services growing 6.79% in 2023, faster than industry.
• Manufacturing and processing still matter: electronics, garments, food processing, and machinery all feed export flows.
• High-tech is rising fast through Saigon Hi-Tech Park (SHTP), which attracts chip, electronics, and R&D projects. The city is positioning total factor productivity to account for 59% of GRDP growth in 2025, with science and technology making up 74% of that contribution.

You can see that pivot in real deals: SHTP recently expanded cooperation with Intel, which is donating chip packaging and testing equipment for training and research – a strong signal that HCMC wants to move further up the value chain.

If your company needs:

• A regional headquarters for ASEAN
• A base for consumer-facing brands
• Access to banking, legal, logistics, and high-end services
• A hub to coordinate sourcing from southern industrial belts (Binh Duong, Dong Nai, Ba Ria–Vung Tau)

…HCMC is the natural anchor.

The city’s leadership is actively pitching a vision of a “global megacity,” with plans to contribute VND 737 trillion (approx. USD 28.3 billion) to the state budget, or 36.7% of national revenue, by 2030. That ambition translates into constant upgrades in infrastructure, urban rail, logistics corridors, and higher-quality FDI.

2. Hanoi – Political Capital and Innovation Hub

Hanoi is the political center of Vietnam and a serious economic heavyweight on its own. The city’s GRDP grew 6.27% in 2023 and is estimated at 6.52% in 2024, with an economic scale of around USD 58 billion. City leaders are targeting 8.3% GRDP growth in 2025 and an average 11% growth rate for 2025–2030, which would keep Hanoi among the fastest-growing capitals in the region.

In FDI terms, Hanoi is a long-term magnet. Since 1986, the capital has attracted USD 61.5 billion in FDI across 7,710 projects, ranking second nationwide. In just the first four months of 2024, Hanoi drew about USD 1.13 billion in new and additional foreign investment.

Hanoi’s economic structure is diverse:

• Real estate accounts for roughly 36.5% of cumulative FDI, followed by manufacturing and processing, and then services such as logistics and retail.
• Electronics and smart manufacturing are growing in the northern industrial belt that links Hanoi with neighboring provinces like Bac Ninh, Hung Yen, and Vinh Phuc.
• The city pushes innovation by supporting startups and R&D via national programs and networks such as the Vietnam Innovation Network, incubators, and university-industry collaborations.

For foreign firms, Hanoi brings a mix of policy proximity and high-value talent. You get quick access to ministries, regulators, and headquarters of major state-owned enterprises, along with a large pool of engineers and graduates from top universities.

Hanoi works especially well if your strategy revolves around:

• Government-facing sectors (infrastructure, energy, healthcare, education, financial regulation)
• B2B industries that need policy clarity and long-term planning
• Electronics, automotive, and support industries along the northern supply chains
• Trade fairs and exhibitions, since many national and regional shows are hosted in the capital

For investors, a smart play is to combine a Hanoi office for policy, branding, and partnerships with manufacturing plants in nearby industrial zones in Bac Ninh, Hai Phong, or Hai Duong.

3. Hai Phong – Northern Export and Port Gateway

Hai Phong is Vietnam’s northern seaport city and has quietly built a track record of high-speed growth. The city has maintained double-digit GRDP growth for 10 consecutive years, with GRDP in 2024 estimated at VND 288.5 trillion (around USD 11.4 billion), up 11% from 2023 and ranking third nationwide in growth.

By the end of 2024, Hai Phong had attracted more than USD 4.9 billion in FDI, reflecting its status as a manufacturing and logistics center for northern Vietnam. In the first half of 2023 alone, FDI into Hai Phong reached USD 1.98 billion, and 480 FDI projects operated in its industrial parks.

Hai Phong is built around heavy industry and export logistics:

• Automotive and machinery: the area hosts large manufacturing projects, including automotive plants and heavy-equipment factories.
• Electronics and high-tech: new FDI waves from Korea, Japan, and China are fueling electronics, components, and supporting industries.
• Port-related services: warehousing, cold storage, and third-party logistics continue to expand around the seaport cluster.

For companies that need high-volume exports to the US, EU, and Northeast Asia, Hai Phong gives direct access to ocean shipping without routing everything through the south.

Hai Phong is perfect if you:

• Manufacture bulk products (auto parts, heavy machinery, building materials, textiles, electronics)
• Need deep-water port access near the Chinese border and northern industrial clusters
• Want to diversify from southern port congestion and balance risk across multiple gateways

An effective model many firms use is:

• R&D, management, and policy work in Hanoi
• Production in Hai Phong industrial zones
• Export via Lach Huyen and Hai Phong port, which connect directly to major global shipping routes.

4. Da Nang – Smart City and Emerging Tech Hub

Da Nang has moved far beyond its old image as “just” a coastal tourism city. It is now one of Vietnam’s most active digital and smart-city laboratories. In 2024, Da Nang’s GRDP grew 7.51%, ranking 7th among 14 provinces and cities in the northern and coastal central region.

The digital economy already contributes heavily to growth. In 2023, the digital sector made up 20.96% of Da Nang’s GRDP, above the national average of 18.3%, and is expected to reach around 22% in 2024. Some newer reports in 2025 even note that the digital economy is now above 22% of GRDP, and the city targets 35–40% by 2030.

Da Nang’s economy combines:

• IT and software outsourcing: homegrown companies and foreign-invested firms deliver software, BPO, and IT services to Japan, the US, and other markets.
• Electronics and semiconductors: the Da Nang Hi-Tech Park (DHTP) anchors high-tech manufacturing and R&D.
• Tourism and services: still a major part of the economy, supporting hospitality, F&B, and retail.
• Green and clean industries: the city encourages low-pollution manufacturing and renewable energy applications.

DHTP covers about 1,128 hectares and hosts around 30 major investment projects, including 13 FDI projects worth over USD 1 billion. Nearly 100 hectares are allocated for R&D, training, and incubation. By July 2025, Da Nang’s high-tech ecosystem counted nearly 70 businesses, including names like Marvell, Synopsys, Renesas, and FPT Semiconductor.

Da Nang works well for companies looking for:

• IT outsourcing and digital product teams in a city with good quality of life
• High-tech manufacturing that still enjoys tax incentives and land support in a controlled environment
• Regional hubs for e-commerce, logistics, and digital services for central Vietnam

The city offers generous incentives for hi-tech investments, including preferential corporate tax (often 10% for up to 30 years for large projects) and land rent exemptions for key sectors.

5. Binh Duong – Vietnam’s Industrial Capital

Binh Duong sits just north of Ho Chi Minh City and has become one of Vietnam’s most industrialized provinces. The province’s GRDP in 2024 is estimated to have grown 8.01%, with GRDP per capita reaching VND 182.6 million.

On trade, Binh Duong recorded USD 34.5 billion in exports and USD 24.5 billion in imports in 2024, giving an export growth of 12.7% and import growth of 12.2% compared with the previous year. Total import–export turnover topped USD 60 billion, with a trade surplus above USD 10 billion.

By 2024, Binh Duong had attracted nearly 4,400 FDI projects worth more than USD 42.4 billion, ranking second nationwide after HCMC. In the first 11 months of 2024 alone, the province drew over USD 1.8 billion in new FDI, about 120% of the same period in 2023.

Binh Duong is built for manufacturing:

• The province hosts 30 industrial parks covering more than 12,670 hectares with an occupancy rate of about 87.4%, alongside another 12 industrial clusters under development.
• Key product categories include furniture, textiles & garments, footwear, electronics, plastics, and packaging, most of which are export-oriented.

The province has moved from low-cost assembly toward higher value manufacturing and logistics, tied closely to HCMC’s consumer market and port system.

Binh Duong is ideal if you:

• Need large-scale manufacturing capacity with existing industrial infrastructure.
• Want plug-and-play factories with established utilities, logistics, and supporting services.
• Prefer a cost structure lower than downtown HCMC while staying close to its market, ports, and airports.

Many firms adopt a combination like this:

• Sales office or showroom in HCMC
• Factories in Binh Duong for exports and nationwide distribution
• Regional logistics setup using both Binh Duong warehouses and ports in HCMC/Ba Ria–Vung Tau

How These Locations Fit Together in an Investment Strategy

Vietnam’s economic geography is becoming more specialized.

• HCMC anchors finance, corporate headquarters, startups and advanced services.
• Hanoi combines policy influence, education and a growing digital and innovation base tied to government.
• Da Nang offers a balanced package of logistics, IT, high-tech manufacturing and quality of life for central Vietnam.
• Bac Ninh and Binh Duong form two of the most industrialized manufacturing belts, one in the north, one in the south.
• Hai Phong acts as the export gateway and heavy-industry hub for the north.
• Phu Quoc serves as a tourism and hospitality growth pole in the southwest.

For a foreign company building a Vietnam footprint, a common pattern is to combine a head office in HCMC or Hanoi with one or two manufacturing bases in Binh Duong, Bac Ninh or Hai Phong, then use Da Nang and Phu Quoc as secondary hubs for regional operations, tech teams or hospitality ventures. 

The numbers behind each city show that these are not just brand names on a map but distinct engines in a national economy that is now growing near 8% a year with strong FDI inflows above US$30 billion annually.

If your business model aligns with one of these engines, Vietnam’s leading cities and provinces offer both scale and specialization, backed by an increasingly dense infrastructure and policy framework designed to pull in the next wave of regional and global investment.

Establish Your Strategic Base in Vietnam with JustCo Global

Entering the Vietnamese market requires a professional address and a reliable base of operations. JustCo Global provides the ideal infrastructure for your Representative Office or initial headquarters. 

We offer premium locations in central business districts that give your new operation instant credibility with local partners.

Our workspaces allow you to bypass the complexity of traditional office leases. You get a fully managed environment where you can focus on building connections and growing your presence. Whether you are testing the market or launching a full team, we are your partner on the ground.

Secure your position in Vietnam today. 

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