The event, scheduled to be held at the 23/9 Park in District 1, will be hosted by the Department of Culture, Sports and Tourism and the HCM City Tourism Association.
La Quoc Khanh, deputy director of the department, told a recent conference that the main purpose of the festival is to stimulate domestic tourism demand.
It sought to do that by acting as a bridge between travel companies and customers, he added.
The highlight of this year's event will be the Sac Mau Le Hoi Vietnam (Colours of Vietnamese Festivals) and a fete to honour city tourism brands.
The festival will feature a tourism fair with more than 150 booths set up by 80 travel companies, while Vietnamese and international cuisines will be showcased at 20 other booths.
A photo exhibition titled Anh Dep Le Hoi Vietnam (Beautiful Photos of Vietnamese Festivals), will highlight the various landscapes around Vietnam .
A performance of don ca tai tu (southern amateur music) will be another major attraction.
People making tour bookings at the event stand to win prizes and freebies.
Organisers hope to attract 300,000 visitors this year, up from 200,000 last year.
Last year HCM City raked in revenues of 56 trillion VND (2.7 billion USD) from tourism, or 11 percent of the country's total.
It welcomed 3.5 milliion international visitors and 14 million domestic visitors.