Institutional Reform – The Key to Creating an Attractive Investment Environment

Improving PCI – Transparency, Speed, Efficiency

In the five consecutive years prior to the merger (2020–2024), the former Ba Ria – Vung Tau consistently ranked among the top 10 provinces and cities nationwide with the highest PCI. This was thanks to progress in information transparency, simplification of administrative procedures, and the application of digital technology in public governance.

Sub-indices of the PCI, such as informal costs and land access, decreased significantly, reflecting the government’s determination to build a transparent and fair investment environment. Meanwhile, the Provincial Department and District Competitiveness Index (PCIP) was also strongly implemented, ensuring consistency across provincial, district, and commune levels.

Cai Mep Ha FTZ – Tax, Customs, and Investment Incentives

A major breakthrough was the planning and establishment of the Cai Mep Ha Free Trade Zone (FTZ), linked with the Cai Mep – Thi Vai deep-water port cluster. With special incentives in taxation, customs, and investment, this FTZ is being positioned as an international logistics and trade hub for Southeast Asia.

Enterprises investing in the FTZ benefit from exemptions and reductions in import duties on raw materials and components. Comprehensive digitalization of customs procedures enables swift handling of import–export goods, while additional support is provided in warehousing, logistics, and financial services.

The most distinctive feature of the Cai Mep Ha FTZ is its multimodal connectivity: sea, road, rail, and inland waterways, ensuring uninterrupted supply chains. This is a competitive advantage for attracting global logistics corporations and stimulating supporting industries and value-added services.

Business Support – Optimizing Land, Power, Water, and Procedures

Alongside macro-level policies, the former Ba Ria – Vung Tau prioritized resolving the most fundamental concerns of enterprises: land, electricity, water, and administrative procedures.

The province allocated over 2,000 hectares of cleared land ready to welcome projects in high-tech industries, logistics, and eco-urban development. Simultaneously, the electricity supply system received major investments, including the 500kV Phu My substation and a region-wide transmission grid, ensuring stable supply for both industrial production and residential needs.

The water supply system, sourced from reservoirs such as Da Den and Chau Pha, along with upgraded urban wastewater treatment networks meeting national standards, helped mitigate environmental risks while meeting international investor requirements. Land, construction, power, and water permit procedures were streamlined, with many steps fully digitalized, significantly cutting costs for businesses.

FDI/DDI Strategy – High-Tech, Green, and Non-Labor-Intensive

The former Ba Ria – Vung Tau adopted a selective investment approach, prioritizing modern technology, environmentally friendly, and non-labor-intensive projects over sheer quantity.

From 2021–2024, total FDI inflows into the region reached nearly USD 20 billion, concentrated in supporting industries, new materials, renewable energy, advanced logistics, and financial services – all sectors with high added value aligned with sustainable development goals.

Domestic investment (DDI) also grew strongly, especially in industrial park infrastructure, urban development, and port services. Vietnamese enterprises with advanced technology and modern management capacity became important partners in value chains with international corporations.

Looking at the practices of reform and investment attraction, it is evident that a flexible institutional framework and clear policies are the key for the former Ba Ria – Vung Tau area to emerge as a prime destination for global investors. Within the structure of the new Ho Chi Minh City, this region continues to serve as an industrial–service–urban connector within the mega-city.

With its infrastructural strengths, logistics capabilities, and open investment mechanisms, the area not only increases investor appeal but also reinforces sustainable and competitive value chains, elevating the new Ho Chi Minh City into a leading economic and service hub of the region – befitting its global mega-city status.

By Phong Le