Hue Accelerates Chinese Investment Inflows as FDI Surges in Q1 2026
In the first months of 2026, Hue has witnessed a notable increase in investment promotion activities from Chinese enterprises, contributing to a sharp rise in foreign direct investment (FDI) and reinforcing its position as an emerging investment hub in Vietnam.
1. FDI in Hue Surges Significantly in Q1 2026
According to the Foreign Investment Agency under Vietnam’s Ministry of Finance, total registered FDI in Hue reached USD 123 million in the first quarter of 2026, representing a ninefold increase compared to USD 12.3 million recorded in the same period last year.
Cumulatively, Hue has attracted 169 FDI projects with total registered capital exceeding USD 4.31 billion. This strong performance reflects a clear recovery and acceleration of foreign investment inflows, positioning the city as an increasingly competitive destination for international investors.
Hue’s FDI Surge Q1/2026
2. China Becomes a Key Investor in Hue
Over 30 Projects Driving Local Economic Growth
China currently ranks as the second-largest foreign investor in Hue, with more than 30 active projects and total registered capital of approximately USD 787.5 million.
These investments are concentrated in sectors such as manufacturing and processing, construction materials, tourism, and trade. Many projects have been operating efficiently, generating stable employment opportunities while contributing significantly to local budget revenues and economic growth.
Rising Interest from Chinese Enterprises
The early months of 2026 have seen a surge in investment promotion activities from Chinese businesses, signaling growing confidence in Hue’s investment environment. Investors have shown particular interest in infrastructure development, manufacturing industries, and urban services—areas aligned with the city’s long-term development strategy.
3. Strengthening Cooperation Through Strategic Agreements
Infrastructure Development Partnership with Chinese Corporation
In early April 2026, the People’s Committee of Hue signed a memorandum of understanding (MoU) with Pacific Construction Group (China) to collaborate on major infrastructure projects. These include urban infrastructure development, transportation systems, and urban expansion initiatives.
The partnership also extends to education and training, specialized healthcare, and other socio-economic sectors aligned with Hue’s long-term development vision.
Pacific Construction Group has committed to studying and proposing investment projects under EPC and PPP models, ensuring comprehensive implementation from construction to operation and maintenance, in compliance with Vietnamese regulations and local conditions.
People’s Committee of Hue City signs a Memorandum of Understanding for cooperation with Pacific Construction Group Co., Ltd.
New Industrial Projects from Chinese Investors
Earlier in March, Hue recorded two notable FDI projects from Chinese investors in the industrial sector. These include an electronic components manufacturing plant by Sanyou Equipment Co., Ltd., with an investment of approximately VND 260 billion, and a medical supplies and personal protective equipment production project by Zonsen Medical Materials Co., Ltd., with a total capital of VND 92.5 billion.
Electronics component manufacturing plant by Sanyou Electric Equipment Co., Ltd.
Zonsen Medical Supplies Co., Ltd.’s project to produce protective equipment and personal hygiene products
These projects highlight the growing shift toward manufacturing and value-added industries in Hue’s FDI landscape.
4. Strategic Vision to Attract High-Quality FDI
From the perspective of Chinese investors, Hue is increasingly recognized as a locality with strong development potential, a clear strategic vision, and an improving investment climate. Many investors are eager to leverage their expertise in infrastructure development to participate in large-scale, modern projects that contribute to the city’s socio-economic growth.
Since becoming a centrally governed city in 2025, Hue has set ambitious goals to develop into a major regional hub for culture, tourism, and advanced healthcare, while also emerging as a national center for science, technology, and high-quality education.
In this context, attracting high-quality FDI—particularly projects that are environmentally sustainable, technologically advanced, and capable of generating spillover effects—has been identified as a key driver of long-term growth.
5. Enhancing Investment Promotion and Competitive Advantages
Under Decision No. 3644/QD-UBND on the 2026 Investment Promotion Program, Hue aims to proactively track global capital flow trends amid evolving economic and geopolitical conditions. This approach will help identify target investors and priority markets in the coming years.
The city is also intensifying investment promotion efforts in traditional markets such as China, Japan, South Korea, Singapore, Thailand, the United States, and the European Union, while leveraging opportunities from free trade agreements (FTAs) to expand its global investment network.
With its strategic location, access to seaports and airports, availability of clean land, and competitive labor costs, Hue is well-positioned to enhance its accessibility and attractiveness to international investors.
6. Conclusion
The surge in investment promotion activities from China, coupled with strong FDI growth in early 2026, underscores Hue’s rising prominence on Vietnam’s investment map. With a clear development strategy and a focus on high-quality, sustainable investment, Hue is poised to become a key destination for global investors in the years ahead.
Source: https://vneconomy.vn/hue-ghi-nhan-nhieu-hoat-dong-xuc-tien-dau-tu-tu-phia-trung-quoc-ngay-tu-dau-nam.htm
