This study aims to analyze the relationship between foreign direct investment (FDI) and economic growth in Ho Chi Minh City (HCMC) by employing vector autoregression model (VAR). Using time-series data in the period from 1988 to 2019,this study shows that FDI inflows positively affect HCMC’s economic growth at the early stages, but gradually become less influential. The results also reveal that FDI has a positive impact on HCMC's openness, a negative impact on labor; meanwhile, the city’s economic growth affects negatively FDI and the labor force. The research findings contribute to the theory and are significant for HCMC authorities to provide policies to attract and manage FDI inflows more effectively.