Multibillion-dollar commitments from global capital in semiconductors, green petrochemicals, advanced materials, seaport services and luxury tourism in eastern Ho Chi Minh City underscore a strategic transformation of Vietnam’s industrial gateway.

The eastern expansion of the Ho Chi Minh City super-metropolis, incorporating the former coastal corridors and industrial heartlands of Ba Ria-Vung Tau, has emerged as a focal point for global capital.

From a US$5.6 billion petrochemical complex to a more than US$4 billion luxury hospitality circuit, former Ba Ria-Vung Tau province’s development trajectory reflects a broader shift towards high-tech integration and environmental sustainability.

This geographical pivot is not merely a local administrative change, but a calculated move to create a hub that connects world-class deep-water ports with high-value manufacturing.

Historically, prior to its incorporation in July 2025 into the broader Ho Chi Minh City metropolitan strategy, the former Ba Ria-Vung Tau province was long established as Vietnam’s premier oil and gas hub. It served as the nation’s energy backbone for decades. However, the influx of foreign direct investment ( FDI ) speaks volumes about a fundamental evolution: the eastern region is successfully transitioning from a resource extraction economy into a diversified high-tech and green energy powerhouse.

At the heart of this industrial surge is the Long Son Petrochemicals complex, a US$5.6 billion investment by Thailand’s SCG Group. With an annual capacity to supply 1.4 million tonnes of plastic resins and essential petrochemical products, the project serves as a critical backbone for ancillary industries.

These range from high-end packaging and electrical equipment to specialized automotive parts manufacturing. SCG’s decision to anchor its massive ecosystem here underscores the region’s strategic position, providing a domestic source of raw materials that reduces reliance on imports and stabilizes supply chains for manufacturers across Southeast Asia.

Beyond heavy industry, the Ho Tram coastal strip is undergoing a massive capital infusion that is redefining Vietnam’s luxury tourism landscape. Lodgis Hospitality Holdings, a joint venture between the global investment firm Warburg Pincus and VinaCapital, is currently deploying over US$1 billion for an ambitious expansion of The Grand Ho Tram, bringing the total investment of the project to over US$4 billion.

This new phase includes a sophisticated network of five-star hotels, luxury villas, an international convention centre and a high-stakes casino. Upon completion, the complex will boast more than 6,000 rooms, capable of hosting 18,000 guests daily.

The aggressive rollout of synchronized transport infrastructure in the eastern region, including the proximity to the upcoming Long Thanh International Airport and the expansion of coastal highways, notes Walt Power, CEO of The Grand Ho Tram, is a decisive factor in attracting international luxury travellers and high-profile Mice ( meetings, incentives, conferences and exhibitions ) events.

New frontier for green tech, semiconductor race

The region is also positioning itself as a pioneer in sustainable manufacturing and specialized materials, pivoting away from traditional fossil fuel dependence. South Korea’s Hyosung Group has funnelled nearly US$2.6 billion into a diverse portfolio that includes polypropylene, underground liquefied petroleum gas storage and carbon fibre.

A standout facility is the US$730 million bio-butanediol ( BDO ) plant at the Phu My 2 Industrial Park. To the uninitiated, BDO is a versatile chemical intermediate used to produce everything from spandex fibres for the apparel industry to biodegradable plastics.

While traditional BDO production is heavily reliant on coal or petroleum, Hyosung’s facility represents a rare global achievement in producing bio-based BDO from raw sugar. By replacing fossil fuels with renewable agricultural feedstock, the plant drastically reduces carbon emissions, aligning with the green premiums demanded by global fashion brands and tech giants looking to decarbonize their supply chains.

Also in the eastern region, Japan’s Tokuyama Corporation broke ground on Vietnam’s first polysilicon plant at the Phu My 3 Specialized Industrial Park in April 2025. The US$60 million project will produce ultra-high-purity polysilicon, a foundational material for the semiconductor industry.

As the only industrial zone in the country established under a bilateral agreement between the Vietnamese and Japanese governments, Phu My 3’s role in the global chipmaking supply chain is becoming increasingly vital. This project is a clear indicator that the eastern corridor is moving up the value chain, transitioning from basic assembly to the production of high-purity raw materials essential for the global digital economy.

Deep-water port, free trade zone

The logistical engine driving these multi-billion-dollar investments is the Cai Mep-Thi Vai international port cluster. Spanning more than 20 kilometres with 35 operational berths, it serves as the primary deep-water gateway for Vietnam’s Southern Key Economic Zone, allowing some of the world’s largest “mother vessels” to dock directly.

Major global shipping alliances and giants, such as Maersk, MSC, CMA CGM, Hapag-Lloyd, Zim and ONE, maintain 48 international container routes per week through the cluster, including over 20 direct services to Europe and both coasts of the US.

Key operators like Saigon Newport Corporation manage major facilities here, including the Tan Cang-Cai Mep International Terminal – a joint venture with Mitsui O.S.K. Lines, Wan Hai and Hanjin – and the Tan Cang-Cai Mep Thi Vai terminal. Both are operated by Saigon Newport Corporation.

The cluster’s efficiency is reflected in its rapid growth: container throughput reached, data show, 10.8 million 20-foot equivalent units, or containers, ( TEUs ) in 2024 and jumped to nearly 13 million TEUs in 2025. Mainline volumes in January 2026 alone reached, according to the Vietnam Seaports Association, 711,429 TEUs, a 9% year-on-year increase.

To capitalize on this momentum, Ho Chi Minh City officials have proposed the establishment of a 3,800-hectare free trade zone adjacent to the Lower Cai Mep terminal. This core area is designed to integrate seamlessly with the deep-water port system, optimizing its location on the major Asia-Europe and Asia-America shipping lanes.

By blending world-class logistics with high-tech manufacturing and luxury services, the eastern corridor of the metropolis is not just attracting capital; it helps place Vietnam higher in the global value chain.