Inside Ho Chi Minh City's Plan to Turn 17 Industrial Parks Into AI-Powered Smart Hubs

The city is prioritizing investment in integrated circuits, semiconductors, AI, IoT, blockchain, robotics, 5G, data centers, and smart urban development as part of a broader high-tech FDI strategy .

Digital Transformation Targets

The city has outlined several quantifiable digital transformation targets for its industrial zones:

• Full 5G coverage across all industrial parks by 2026. In early February 2026, Viettel's Ho Chi Minh City branch and HEPZA launched 5G deployment and a Digital Transformation Week across five key industrial parks, with the goal of achieving full 5G coverage in all parks by 2026 and developing modern, synchronized digital IP models . By the end of 2025, the city had installed 4,304 5G BTS stations, covering about 68% of the area and ensuring 100% of industrial parks and high-tech parks already had 5G coverage .
• 60% enterprise adoption of digital technologies by 2026. Speaking at the Digital Transformation Week held at Vinh Loc Industrial Park, Le Van Thinh, Deputy Head of HEPZA, said more than 60% of businesses operating in export processing and industrial zones are expected to adopt digital technologies by 2026 .
• 80-90% worker digital platform access. This target was referenced in the city's digital transformation agenda for its industrial and export processing zones, as part of four key targets outlined by HEPZA .

The 5G rollout is not merely about telecom infrastructure. The city envisions 5G as a digital ecosystem platform for industrial parks, providing low-latency, high-speed connectivity for automation systems, mini data centers, and smart management platforms .

Vinh Loc Industrial Park: The Launch Pad

Vinh Loc Industrial Park served as the launch site for the Digital Transformation Week where HEPZA announced the 60% enterprise digital adoption target and other key goals . Located in Binh Tan District, 15 km from the city center and 8 km from Tan Son Nhat International Airport, Vinh Loc spans 207 hectares with an occupancy rate of 94% . The park is being positioned as a model for how existing industrial zones can be retrofitted with digital infrastructure.

Five existing zones are being considered for pilot conversion: Tan Thuan Export Processing Zone and the industrial parks of Hiep Phuoc, Tan Binh, Cat Lai, and Binh Chieu. These pilot conversions aim to develop high-tech industries, logistics, eco-industrial parks, and integrated industrial-urban-service zones .

Beyond the 17 Parks: 14 New Smart and Green Industrial Parks

In addition to retrofitting existing parks, Ho Chi Minh City plans to develop 14 new industrial parks covering a total of 3,833 hectares, following a three-phase "smart and green" model :

• Phase 1 (2025–2027): Pham Van Hai I, Pham Van Hai II, Vinh Loc 3, and Nhi Xuan
• Phase 2 (2027–2030): An Phu, Trung An, Le Minh Xuan 4, Pham Van Hai III, and Hiep Phuoc 3
• Phase 3 (2030–2033): Tan Phu Trung 2, 3, and 4, Binh Khanh 1, and Binh Khanh 2

A representative from HEPZA stated that these projects are currently in the planning stage .

The $6.6 Billion FDI Magnet

Ho Chi Minh City is emerging as a major tech FDI destination in Asia. By early June 2026, the city had attracted $6.6 billion in tech-related foreign direct investment, with projects that supply critical infrastructure for AI, cloud computing, and big data processing . The city has also signed a memorandum of understanding with Accelerated Infrastructure Capital (AIC) to develop an AI data center at Tan Phu Trung Industrial Park in Cu Chi commune .

Lam Dinh Thang, Director of the municipal Department of Science and Technology, said large-scale data centers, AI, and cloud computing will accelerate digital transformation while laying essential groundwork for smart city development .

Broader National Smart Manufacturing Partnerships

Several major partnerships are supporting Vietnam's shift toward smart manufacturing:

• Siemens + Pacific Land / Silverlake Bio Hi-Tech Park. On June 12, 2026, Siemens Limited and Pacific Land JSC signed a Strategic Partnership Memorandum to jointly develop Silverlake Bio Hi-Tech Park into a next-generation innovation hub, with a focus on smart, digitalized, and sustainable development . Siemens will serve as technology partner, providing solutions across smart infrastructure, sustainable development, and digital platforms .
• Siemens + VSIP. Siemens Limited Vietnam and Vietnam-Singapore Industrial Park Joint Venture Co., Ltd. signed a non-binding MoU in January 2026 to support the development of cutting-edge data center parks across Vietnam, positioning VSIP parks as prime destinations for next-generation data center investments .
• WEF Joint Statement. The Ho Chi Minh City People's Committee and the World Economic Forum released a joint statement in November 2025 on promoting smart manufacturing and responsible industrial transformation, agreeing to cooperate on the global rollout of the Lighthouse OS platform .
• Techcombank Credit Package. Techcombank announced a VND 1,500 billion (~$60 million) preferential credit program for the 2026-2030 period, specifically designed to support businesses in implementing smart manufacturing transformation .

Persistent Structural Challenges

The transformation does not come without significant hurdles. HEPZA and city officials have acknowledged several ongoing constraints:

• Outdated industrial model. HEPZA's deputy head stated that maintaining the old model is no longer feasible, underscoring the urgency of the restructuring .
• Global supply-chain pressures. Reporting notes that global fluctuations and supply-chain shifts are creating an urgent need to innovate the industrial park development model .
• Green energy and sustainability gaps. While the city is moving toward green industrial park models, including the VSIP 2.0 vision that prioritizes high technology and advanced processing , the transition to adequate renewable energy supply remains a challenge.
• Land and infrastructure constraints. The city's total industrial land supply remains at about 5,000 hectares, and no new industrial parks were in operation in the first quarter of 2025 .

2030 Vision and Investment Intensity Targets

Ho Chi Minh City has set ambitious long-term targets that align with the smart park transformation:

• 2% of GRDP allocated to R&D by 2030, with at least 3% of the annual budget dedicated to science, technology, innovation, and digital transformation .
• Average capital intensity of $8–10 million per hectare for new investments, with a focus on high-tech, high-value-added, and environmentally friendly projects .
• $4.25–4.5 billion in total 2026 investment targeted by HEPZA, prioritizing global technology companies in electronics, semiconductors, AI, big data, blockchain, and biotechnology .
• Digital economy to account for 30% of GRDP, with at least one new concentrated digital technology zone to be developed .
• 5G coverage reaching 95% of the population, and 100% in major urban areas, science and technology zones, industrial parks, high-tech zones, seaports, airports, and logistics centers .

What This Means for Investors and Businesses

For global technology companies and manufacturers looking to establish or expand operations in Southeast Asia, Ho Chi Minh City's transformation represents a significant shift in the investment landscape. The city is moving from a quantity-based investment attraction model to a quality-based one, prioritizing projects with high technology content, strong value addition, and environmentally friendly operations .

HEPZA Director Bui Minh Tri said the strategy places equal emphasis on capital scale and project quality, with long-term direction to transform export processing zones and IPs toward high, green, and digital technologies . Priority will go to smart manufacturing projects that use resources and energy efficiently and are well connected to global value chains .