On June 30, localities across Vietnam announced resolutions on the merger of administrative units. — VNA/VNS
HANOI: Following provincial mergers, many localities are expected to capitalise on their consolidated strengths and resources to enhance their appeal to foreign direct investment (FDI), driving broader socio-economic development across the regions.
On June 30, localities across Vietnam announced resolutions on the merger of administrative units, marking a significant step in the country’s efforts to streamline governance and promote regional development.
Following the restructuring, Vietnam now comprises 34 provinces and centrally governed cities.
More than a routine administrative reform, the mergers are viewed as a strategic move to create localities with greater scale, connectivity and development potential.
Experts believe the newly formed administrative units could serve as new growth poles on the national economic map and provide a stronger foundation for attracting FDI.
As of the end of May 2025, Ho Chi Minh City (HCM City) led the country in cumulative FDI, with registered capital totalling over US$59.72bil.
Additionally, other provinces in the top 10 include Hanoi (US$45.37bil), Binh Duong (US$42.85bil), Dong Nai (US$38.86bil), Ba Ria-Vung Tau (US$38.19bil), Hai Phong (US$32.96bil), Bac Ninh (US$32.26bil), Quang Ninh (US$16.44bil), Thanh Hoa (US$15.77bil), and Long An (US$14.56bil).
However, looking at FDI inflows during the first five months of 2025, Hanoi led the way, followed by Bac Ninh, HCM City, Dong Nai, Ba Ria-Vung Tau, Ha Nam, Hai Phong, Hung Yen, Long An and Tay Ninh.
After June 30, the provincial rankings for FDI are expected to undergo significant shifts, though HCM City is expected to maintain its top position as the country’s economic powerhouse.
With the merger of Bình Duong and Ba Ria-Vung Tau into HCM City, the combined registered FDI capital now totals approximately US$143.28bil, representing nearly 28% of the total FDI registered in Vietnam.
Bình Duong contributes an additional US$42.85bil, while Ba Ria-Vung Tau adds US$38.19bil, further strengthening HCM City’s competitive advantage in attracting foreign investment.
This large-scale merger positions Ho Chi Minh to continue leading the nation in FDI attraction, backed by greater scale and enhanced regional connectivity, experts have said.
The historic mergers also create fresh opportunities for other localities.
Bac Ninh and Bac Giang, for example, are expected to rise substantially in the rankings. Currently, Bac Ninh ranks seventh with cumulative FDI, while Bac Giang sits at 11th with over US$13.8bil.
Combined, their FDI capital will exceed US$46bil, surpassing Quang Ninh, which currently attracts US$16.44bil and ranks eighth, as well as Thanh Hoa and Long An.
Meanwhile, Hai Phong’s merger with Hai Duong, which adds US$11.53bil in registered capital, will raise the total FDI attraction to over US$44.48bil, positioning it close to Hanoi and securing a strong spot among the country’s top investment hubs.
Analysts said that the administrative mergers are doing more than redrawing maps – they are unlocking new potential for localities to attract FDI and accelerate socio-economic development across the country.
A prime example is the merger of Bac Ninh and Bac Giang. — Viet Nam News/ANN
