The goal is to ensure a stable clean water supply for residents. since over 25% of the suburban population still rely on substandard mini water plants.

The Department of Construction of the northern port city of Hai Phong has proposed an investment capital estimated at over VND25 trillion (over $958.7 millon) to construct and upgrade infrastructure systems and centralized clean water production plants from now until 2040.

The goal is to ensure a stable clean water supply for residents and address the issue of over 25% of the suburban population still relying on substandard mini water plants.

An assessment by the City Department of Health found that 94.4% of the rural population currently uses water from water plants, with 20% relying on mini water plants that operate at moderate to poor standards.

Additionally, 5.6% use water from small-scale sources where quality is not monitored.

To improve water infrastructure, Hai Phong plans to construct two new water plants—the Le Thien Water Plant in An Dương district and the Luu Kiem Water Plant in Thuy Nguyen city—while increasing the capacity of 10 existing water plants from 436,150 m³/day to 1,349,600 m³/day.

The Vinh Bao 2 Water Plant will be converted into a booster pumping station, and a synchronized water supply system will be built for Cat Hai island, with a total estimated cost of over VND4.848 trillion (nearly $186 million).

The Construction Department also proposes allocating around VND2.387 trillion ($91.5 million) to build a network of 23 booster pumping stations, ensuring sufficient water resources for densely populated areas and industrial zones.

To further safeguard water quality, Hai Phong will invest in constructing salinity control dams on the Thai Binh, Van Uc, Lach Tray, and Hoa rivers to prevent saltwater intrusion and secure freshwater sources upstream.

-Nam Khánh

Construction investment procedures are set to be completed in the fourth quarter of 2025.

VSIP Nghe An Co., Ltd. has recently proposed the VSIP Nghe An - Casa Bonita Residential Area project, which is part of the overall master plan for the VSIP Nghe An Industrial, Urban, and Service Park.

According to the proposal, the VSIP Nghe An - Casa Bonita Residential Area will cover a total area of nearly 32 ha in Hung Nguyen district and Vinh city, in the north central province of Nghe An.

The main objective of the project is to invest in constructing residential areas for real estate business, while also operating and managing related facilities to serve the residential and commercial needs of its inhabitants.

Additionally, the project will also involve transferring, leasing, or contributing capital through land use rights and assets attached to the land, in accordance with legal regulations.

The total investment capital for the project is estimated at approximately VND2.241 trillion ($82.9 million). According to the plan, construction investment procedures are set to be completed in the fourth quarter of 2025.

Construction is expected to commence in the first quarter of 2026, and the project is slated for operation and exploitation by the fourth quarter of 2029. The project's operational period is set to last until 2065.

-Nguyễn Thuấn

The events are expected to bring together over 200 businesses from more than 10 countries and anticipate attracting over 10,000 trade visitors.

The 17th Vietnam Manufacturing Expo (VME) and the 11th Vietnam-Japan Supporting Industries Exhibition (SIE) will take place from August 6-8, 2025, at the L.C.E. Hanoi Exhibition Center.

The two events are expected to bring together over 200 businesses from more than 10 countries and anticipate attracting over 10,000 trade visitors.

VME and SIE 2025 are not merely trade promotion events but also crucial tools for fostering the development of the supporting industry ecosystem, creating high-quality jobs, and strengthening Vietnam's position in the global value chain.

This year's exhibitions will focus on key solutions such as digital transformation, flexible automation, zero-emission manufacturing, and digital supply chains – factors considered vital for the future of Vietnam's manufacturing sector.

These events are organized by the Vietnam Trade Promotion Agency (VIETRADE) under the Ministry of Industry and Trade, and the Japan External Trade Organization (JETRO) – Hanoi Representative Office, in collaboration with RX Tradex Vietnam.

-Vũ Khuê

JETRO's latest survey revealed that Japanese enterprises operating in Vietnam—including local supporting industry enterprises—achieved a localization rate of 36.6%, comparable to Malaysia and the Philippines.

By the end of 2024, Vietnam's supporting industries had expanded significantly, with over 6,000 active enterprises operating across key sectors, including textiles and garments, auto manufacturing and assembly, footwear, mechanical engineering, and electronics.

This development has played a crucial role in boosting Vietnam’s trade surplus, which surged from $2 billion in 2017 to over $28 billion in 2024, according to Mr. Vu Ba Phu, Director General of the Vietnam Trade Promotion Agency (VIETRADE) under the Ministry of Industry and Trade.

Despite this progress, the supporting industry meets only about 10% of domestic demand for components, posing a significant challenge.

"This figure is a major challenge, especially as Vietnam has to import billions of US dollars worth of components annually to serve domestic production," noted Mr. Phu.

Japan remains one of Vietnam’s leading investment partners in manufacturing and high-tech industries. In the past decade, Japanese direct investment in Vietnam reached $3.5 billion in 2024, ranking fifth in total investment value.

According to Mr. Haruhiko Ozasa, Chief Representative of the Japan External Trade Organization (JETRO) in Hanoi, JETRO's latest survey revealed that Japanese enterprises operating in Vietnam—including local supporting industry enterprises—achieved a localization rate of 36.6%, comparable to Malaysia and the Philippines.

However, when focusing solely on Vietnamese enterprises, their supply rate to Japanese businesses stood at 15.7%, reflecting a 1.5 percentage point decline from the previous year. Over the last decade, this figure has remained relatively unchanged, lagging behind Indonesia, Thailand, and Malaysia while remaining comparable to the Philippines.

JETRO’s survey also found that 56.1% of Japanese companies in Vietnam plan to expand investment within the next one to two years, surpassing the ASEAN average of 37.7%.

While Vietnam ranks behind India and Pakistan, it leads ASEAN in terms of investment expansion.

Moreover, 50.9% of Japanese firms intend to increase procurement within Vietnam, the highest rate among ASEAN nations. Industries such as electrical equipment and electronics, textiles and garments, and machinery have expressed strong demand for local suppliers.

To further increase the localization rate, Mr. Phu emphasized the need for enterprise proactivity, along with supportive government policies.

“Vietnamese businesses must monitor international market trends and adopt modern governance and internal control models to align with global standards,” he said.

“Additionally, embracing trends such as digital transformation and green transition will be essential in meeting foreign enterprises' requirements.

Key strategies such as automation, new technology adoption, and process optimization will enhance productivity, helping businesses meet international quality standards.”

The JETRO’s leadership also highlighted the importance of Vietnam improving its business investment environment to provide more favorable conditions for enterprises, thereby ensuring higher profitability. One crucial factor in achieving this goal is the enhancement of Vietnam’s localization rate.

-Vũ Khuê

Measures to be taken to ensure power supply for production, business activities and people's daily life.

Prime Minister Pham Minh Chinh has required relevant ministries, sectors, agencies and localities to take drastic and effective measures to ensure sufficient supply of electricity, especially during peak months of 2025 and beyond.

In Official Dispatch No.81/CD-TTg, dated June 3, 2025, PM Chinh asked for accelerating the implementation of the recently adjusted National Power Development Plan VIII, keep close watch over the operation conditions of hydropower plants, coal- and gas-fired power plants , and wind and solar power plants to improve their efficiency and increase their contributions to overall power supply.

Provincial and municipal authorities must take proactive steps to resolve local regulatory and procedural issues affecting energy projects.

PM Chinh requested that Nhon Trach 3 Thermal Power Plant must be put into operation in June 2025, and Nhon Trach 4 Thermal Power Plant in August 2025. Unit 1 of the Quang Trach 1 Thermal Power Plant project must be connected with the national grid on August 19, 2025. 

The Hoa Binh Hydropower Plant Expansion Project must be completed before August 19, 2025, and put it into operation in September 2025.

Construction progress of the 500kV Lao Cai–Vinh Yen power transmission line project must be accelerated and inaugruated on August 19, 2025, along with the 500kV Hai Phong–Thai Binh and 220kV Than Uyen–Lao Cai transmission line projects.

 

-Huyền Vy

Japan remains top importer of manpower from Vietnam, recruiting 29,902 workers, followed by Taiwan with 22,132 workers and South Korea with 4,977 workers.

As many as 61,631 workers found jobs abroad in January-May period, equivalent to 47.4 per cent of this year's target, the Government News quoted  the Department of Overseas Labor under the Ministry of Home Affairs as reporting.

In the reviewed period, Japan remained the top importer of manpower from Viet Nam, recruiting 29,902 workers, followed by Taiwan with 22,132 workers and South Korea with 4,977 workers.

Other destinations for Vietnamese workers included China (1,242 workers), Singapore (852 workers), Romania (317 workers) and Hungary (507 workers).

In May alone, 13,750 laborers left Vietnam for overseas employment, with Japan, Taiwan, and South Korea as the largest recipients, accepting 5,544; 6,595; and 735 workers, respectively.

Vietnam set a target to send 130,000 laborers abroad under contractual agreements this year.

More than 700,000 Vietnamese workers are currently employed abroad under contracts, earning stable incomes and sending significant remittances worth approximately $3.5–4 billion per year to the homeland.

From 2021 to 2024, nearly 500,000 Vietnamese travelled to work abroad. In 2024 alone, the nation sent about 150,000 workers to work overseas.

-Phạm Long

In the period, some158 foreign service providers paid taxes worth VND5.7 trillion ($217 million).

Organizations and individuals engaging in e-commerce and other digital economic activities paid taxes worth total VND74.4 trillion ($2.85 billion) in the first five months of 2025, up 55% year-on-year, according to the Ministry of Finance.

In the period, some 158 foreign service providers have registered, declared, and paid taxes through the Department of Taxation’s electronic portal, contributing VND5.7 trillion ($217 million), increasing 41% compared to the same period last year.

Around 100,000 business households and individual entrepreneurs used the designated e-tax portal to register, declare, and pay nearly VND1.1 trillion ($41.9 million) in taxes.

Nearly 93,000 domestic organizations and individuals engaging in e-commerce activities paid taxes worth VND67.6 trillion ($2.58 billion).

 

-Mỹ Văn

During the session held on June 4, the two sides reviewed the implementation of the tasks following the second round of the technical-level negotiations and discussed the orientation for the upcoming technical negotiation round.

A ministerial-level negotiation session on a reciprocal trade agreement between Vietnam, the U.S. was held  in Paris, France, on June 4, according to a report from the Government News.

The two delegations were headed by Vietnamese Minister of Industry and Trade Nguyen Hong Dien and U.S. Trade Representative Jamieson Greer, respectively.

The session is part of the two countries' efforts to reach a reciprocal trade agreement between the two sides.

During the session, the two sides reviewed the implementation of the tasks following the second round of the technical-level negotiations and discussed the orientation for the upcoming technical negotiation round.

Minister Dien briefed about the key points in Vietnam's response documents regarding the additional issues raised by the U.S., affirming Vietnam's determination and goodwill in seeking for common grounds with the U.S.

He also suggested the U.S. reply to the issues raised by the Vietnamese side.

For his part, Mr. Greer spoke highly of Vietnam's goodwill and approach in handling the issues concerned by the U.S., and acknowledged the efforts and constructive spirit of the Vietnamese negotiation delegation.

As Vietnam is a comprehensive strategic partner of the U.S., reaching an agreement with Vietnam on reciprocal tax policies is important not only for Vietnam but also for the U.S., he noted.

Both sides pledged to accelerate the pace of negotiations, with a particular focus on maximizing efforts to achieve the best possible outcome in the third round of technical-level negotiations.

They also agreed to assign their technical teams to intensify exchanges via online working sessions, in order to resolve as many outstanding technical issues as possible and create strong momentum for the third technical negotiation round, which is expected to take place in the first half of June 2025.

The two sides committed to enhancing close coordination and expressed their willingness to conduct further ministerial-level discussions to advance the negotiation process toward a mutually beneficial outcome.

-Vân Nguyễn

The event attracting 4,000 participants and 100 speakers from domestic and international giant tech firms.

The Vietnam Blockchain and Artificial Intelligence Week 2025 – Super Vietnam 2025 opened in central Da Nang city on June 4.

The event aims to connect and attract domestic and international resources to foster the development of the blockchain and AI ecosystem in Vietnam, and take advantage of the sandbox mechanism and support policies of the Government, thus contributing to the systematic development of blockchain and AI.

The week features various activities, including a plenary conference on blockchain and AI development, thematic seminars on future technology trends and investment visions, applications of blockchain and AI in business, the Super Vietnam PitchFest, as well as forums for blockchain and AI.

The event attracted more than 4,000 participants and 100 domestic and international speakers coming from major technology groups in the world such as Google, Qualcomm, Viettel, Ethereum Foundation, and SUI Foundation.

As part of the event, the Super Vietnam Expo features nearly 30 booths showcasing innovative projects and technologies from leading Vietnamese and international enterprises in blockchain, AI, data, and fintech.

The week also includes parallel events such as deal-making sessions, job fairs, tech tours, and talent incubation program signings.

 

 

 

-Ngô Anh Văn

Vietnamese façade contractor BM Windows completes Canada’s first supertall and begins work on Sydney’s 55 Pitt Street skyscraper. The final panel installation moment gathered investors, contractors, and designers from Canada, alongside BM Windows’ production and installation team for One Bloor West (The One Toronto).

BM Windows, a major Vietnamese façade contractor, has wrapped up work on the final panel of the One Bloor West project (previously known as The One Toronto). The project marks an important milestone as the company extends its footprint in high-rise markets such as North America and Australia.

First supertall project in Canada completed ahead of schedule

After nearly two years of involvement, BM Windows recently completed the final panel for One Bloor West, Canada’s first building to exceed 300 meters in height with 85 floors. The early delivery of production, while adhering to technical specifications and investor expectations, reflects a growing capability to handle large-scale, technically demanding international projects.

The project’s investor awarded BM Windows a quality certificate, recognizing the company’s performance. As the supplier and manufacturer of the façade system, BM Windows was commended for its technical proficiency, streamlined processes, and adherence to international standards.

Navigating stringent technical demands

With 6,720 façade panels produced and installed, One Bloor West ranks among the most technically complex projects BM Windows has taken on. Designed by Foster + Partners, the building incorporates advanced requirements for wind resistance, climate resilience, and structural precision based on ASTM International standards.

BM Windows took on full responsibility for manufacturing and supplying the façade system for this project. In this role, the company was accountable for material quality and scheduling, and played a direct part in bringing the complex technical design standards to life. Their end-to-end involvement, from technical design and fabrication to installation, demonstrates the comprehensive capabilities of a Vietnamese contractor within the global supply chain for supertall buildings. This solid foundation has earned BM Windows continued trust on many other highly complex international projects.

Close-up of the façade currently under installation in Canada

“As of now, BM Windows’ technology and technical expertise have fully met the most complex project requirements worldwide. We confidently deliver façade solutions that conquer the highest challenges in design, technical standards, and quality in the most demanding markets globally,” shared Mr. Tran Van Tien, CEO of BM Windows.

The Sydney follow-up: 55 Pitt Street

Following its work on One Bloor West, BM Windows has been selected to contribute to the 55 Pitt Street project in central Sydney. Positioned in the city’s financial district, the 55-storey tower, rising to 238.1 meters, is designed by SHoP Architects in collaboration with Woods Bagot and Prism Facades.

The development aims to meet leading sustainability certifications, including NABERS Energy, WELL Core Shell Platinum, and 6-Star Green Star.

The 55 Pitt Street sitting at the heart of Sydney

In its role as façade design supplier, BM Windows has been involved in the research and development of technical solutions from the very beginning. BM Windows’ international experts, together with their engineering team, traveled to Australia to work closely with the investor and design units to fully understand local requirements, technical standards, and the characteristics of the native climate. From there, they proposed optimal solutions that ensure technical efficiency, aesthetics, and sustainability.

Growth across markets

Back in Vietnam, BM Windows is working on several prominent developments, including the Skylight glass dome at the heart of Long Thanh International Airport. Covering over 11,000 sq m and composed of more than 5,400 non-uniform shaped triangular panels, this is considered one of the most technically challenging components of the airport, slated for completion by late 2025.

The company is also contributing to other major domestic projects such as The Marc 88, Lumi Hanoi, Lotus HCM, and OSI Tower.

The participation and successful completion of high-tech engineering packages in landmark projects across North America and Australia by a Vietnamese company like BM Windows is a positive signal, not only for the construction sector but also for the broader domestic industrial manufacturing value chain. As global markets increasingly impose stricter requirements on technical standards, timelines, and environmental compliance, BM Windows’ presence in projects such as One Bloor West and 55 Pitt Street marks a significant advancement in both execution strength and adaptability for Vietnamese enterprises.

-Diep Linh

The project will build both commercial and social houses.

The Economic Zone Management Board of central Ha Tinh province has approved the investment policy for construction of a new urban area, with an estimated investment capital of nearly VND7.8 trillion ($297 million).

The project will cover over 84ha in Ky Trinh commune, Ky Anh town.

As planned, some 2,595 four-storey commercial houses will be built with a total area of over 971,000 sq.m.

Meanwhile, over 57,400 sq.m will be allocated for the construction of 10-storey social housing buildings with a total floor area of nearly 80,000 sq.m.

The project is scheduled to be implemented in five years, starting from the time when the investors are selected. The first two years will focus on site clearance and completing legal procedures, while the last three years will focus on construction.

The project is expected to help meeting increasing housing demand for local people and workers in Ky Anh town, which is home to many industrial parks and seaports such as Vung Ang Economic Zone and Son Duong port.

 

-Nguyễn Thuấn

The figure accounting for 22.2% of the yearly target.

Vietnam’s public investment capital disbursement reached over VND199.3 trillion ($7.65 billion) in the first five months of the year, according to a recent report from the Ministry of Finance (MoF).

The figure accounted for 22.2% of the yearly plan and 24.1% of the target assigned by the Prime Minister.

Among 47 ministries and central agencies, only 10 recorded disbursement rates meeting or exceeding the national average, while 37 remain below the benchmark.

At the provincial level, 39 out of 63 provinces and centrally-run cities met or surpassed national performance standards, leaving 24 localities trailing behind.

Exceptional disbursement rates were seen in the Vietnam General Confederation of Labor (85.43%), the Vietnam Bank for Social Policies (41.2%), Phu Tho province (62.7%), Thanh Hoa province (57.8%), Lao Cai province (51.8%), Thai Nguyen province (51%), and Nam Dinh province (50.4%).

-Hoàng Lan

The two projected urban areas located in the south central province's Hoai Nhon town.

The People's Committee of the south central province of Binh Dinh has approved detailed construction planning projects for two urban areas in Hoai Nhon town, with a total planning scale of nearly 100 ha.

The Binh Phu Urban Area, located in Hoai Thanh Tay ward, has a planning area of 73.9 ha.

Its objective is to develop a new residential area, ensuring synchronous connectivity in terms of land use planning, technical infrastructure, and social infrastructure.

Under this plan, the land use allocation includes: nearly 188,500 sq.m for residential land; nearly 182,600 sq.m for social infrastructure projects; 1,037 sq.m for offices and administrative agencies; 16,003 sq.m for service facilities; 40,227 sq.m for tourism service facilities; and 267,952 sq.m for transportation and technical infrastructure.

Meanwhile, the Truong An Urban Area, in Hoai Thanh ward, has a designated planning area of 23.74 ha.

Accordingly, the land use plan for this project allocates over 74,000 sq.m for housing construction; nearly 55,000 sq.m for social infrastructure projects; nearly 18,000 sq.m for service facilities; and more than 91,000 sq.m for transportation and technical infrastructure.

-Anh Khoa

Many countries worldwide, such as China, Thailand, and the US, have successfully implemented Energy Saving Funds and ESCO models.

The Ministry of Industry and Trade (MoIT) recognizes the ESCO (Energy Service Company) model as a new business approach, effectively utilized in many developed countries due to its advantage of pre-investing in energy equipment for users, with costs recouped during operation.

The ESCO model is a form of energy service company that specializes in providing comprehensive energy solutions, including the design and implementation of energy-saving projects, energy conservation, and leasing energy infrastructure.

This model also promotes the energy-saving market, creates impetus for businesses to invest in this field, and contributes to Vietnam's commitments to reducing greenhouse gas emissions and achieving sustainable development.

According to the MoIT, many countries worldwide, such as China, Thailand, and the US, have successfully implemented Energy Saving Funds and the ESCO model, providing a major impetus for enhancing energy efficiency.

To implement this model in Vietnam, the MoIT believes the Energy Saving Fund needs to be designed as a public-private partnership (PPP) financial model, capable of attracting and circulating capital, while simultaneously supporting industrial and residential retrofitting, and technological innovation.

Concurrently, sustainable financial mechanisms such as low-interest loans, fundraising, and guarantee funds should be developed; cooperation channels with donor organizations and funds should be established. Financial linkage models between businesses, companies operating as ESCOs, and credit institutions should also be built.

Speaking at the recent forum "Promoting green energy in industrial parks: Solutions for effective business implementation", Dr. Trinh Quoc Dung Hanoi University of Science and Technology, stated that Vietnam currently has financial and non-financial support policies for energy efficiency (EE) projects and ESCO development.

According to Dr. Dung, the key factor for the ESCO market is the development of a clear, comprehensive, and effectively supportive legal framework, particularly standardizing Engineering, Procurement, and Construction (EPC) contract templates, savings-sharing mechanisms, and independent evaluation standards.

With the planned amendment to the Law on Economical and Efficient Use of Energy, experts believe Vietnam is facing an opportunity to shape a robust, modern energy-saving ecosystem with significant potential for international cooperation.

-Song Hà

Ongoing global trade tensions call for Vietnam to be ready for any eventuality and to look closer at its own backyard.

While recent trade tensions between the US and China have cooled somewhat, President Donald Trump may still shift tactics. His overarching goal of reshaping the global monetary and trade order, however, remains steadfast. For this reason, Vietnam must remain agile and be ready to adapt to unexpected shifts that could impact monetary policy and pose risks to asset markets.

Experts largely agree that the root cause of the global trade war, sparked by President Trump, is his desire to revitalize US manufacturing while strategically weakening the USD against other currencies.

Vietnam in the crosshairs

Analysts have warned that the trade war has had far-reaching consequences for the global economy, particularly for emerging markets like Vietnam, where economic fundamentals are still developing.

First, Trump’s trade war 2.0 is reshaping globalization. Countries are moving away from multilateral cooperation and leaning towards bilateral agreements that prioritize national interests.

Second, as the US brings manufacturing back onshore, other developed economies may lose incentives to invest abroad. This could trigger a wave of reshoring, with countries focusing more on protecting domestic jobs and industries.

Third, to support export competitiveness, the Trump administration favors a weaker USD against other currencies. For Vietnam, this could be a “double-edged sword”. A weaker USD would help Vietnamese importers, but exporters may face losses. Additionally, Vietnam could risk being labeled a currency manipulator if it is seen as using exchange rates to boost exports, potentially increasing its foreign debt burden.

Fourth, the trade war emerged amid overheated financial markets in the US, the EU, and China, raising concerns over asset bubbles. For emerging markets like Vietnam, the risk is greater if foreign capital such as FDI and foreign indirect investment (FII) begins to be withdrawn. In the US, hedge funds are exposed to risks stemming from financial leverage and derivative products. However, if capital quickly returns to the US and shifts toward real economic activity, asset bubbles might deflate gently rather than burst. Meanwhile, industrial real estate in key US states could recover, supported by renewed manufacturing, forming a new foundation for economic stability.

Just days after announcing high reciprocal tariffs on products from hundreds of countries, the US paused these measures for 90 days to allow for negotiations, including with Vietnam. On May 12 (Vietnam time), the US and China then announced a 90-day truce to negotiate new tariff terms. Though tensions have temporarily eased, experts stress that President Trump may shift his tactics at any time. However, his ultimate objective - to restructure the global monetary and trade order - remains unchanged. That’s why Vietnam must always be prepared with multiple response scenarios to deal with sudden shifts in monetary policy and external risks.

Caught in a vise

At the recent “US Reciprocal Tariff Policy: Impacts and Strategic Adjustments for Vietnam” seminar, hosted by the National Economics University, Dr. Tran Toan Thang, Head of the International Issues Division at the National Institute for Economics and Finance under the Ministry of Finance (MoF), emphasized that the State Bank of Vietnam (SBV) must carefully assess and anticipate the risks posed by a weakening USD. “In the near future, regulators must brace for the depreciation of the USD, which will have far-reaching implications for Vietnam, from exports and imports to foreign investment and inflation,” he warned.

Dr. Le Xuan Sang, Deputy Director of the Vietnam Institute of Economics, raised concerns about escalating trade tensions potentially spiraling into a currency war, putting Vietnam in a “pincer position” between two major powers and its top trading partners.

On the upside, he also noted that the influx of low-cost Chinese goods into Vietnam could intensify competition for domestic products but would also help reduce consumer prices and ease inflationary pressure. This, in turn, may allow the SBV to maintain a low interest rate environment to support economic growth. However, another tactic China might use to offset US tariffs is to devalue the Yuan.

According to experts, simultaneous depreciation of the USD and the Yuan would pressure Vietnam to weaken the VND to remain export-competitive. But a sharp devaluation could backfire, by inflating public debt (as foreign currency-denominated liabilities grow), stoking imported inflation and increasing the risk of being labeled a currency manipulator by the US.

In short, trade tensions have forced the SBV into a challenging balancing act as it seeks to fulfill multiple objectives in its monetary policy: (1) support exports, (2) contain imported inflation, (3) attract and retain foreign capital flows, and (4) maintain policy credibility and transparency to avoid being placed on the currency manipulation watchlist.

Urgent reforms needed

Analysts believe that now more than ever, the MoF and the SBV must coordinate closely to initiate a true restructuring of the financial market, restoring investor confidence and ensuring Vietnam remains an appealing destination for international capital. In the short term, targeted support for key sectors, especially manufacturing businesses impacted by trade tensions, will help stabilize market sentiment.

Associate Professor Phan Huu Nghi from the National Economics University emphasized that government support is essential to maintain the 8 per cent GDP growth target for 2025 and beyond. He noted that support measures should be sufficiently substantial to offset losses caused by new tariffs. The MoF has introduced tax relief through decrees, and additional proposals include a 30 per cent cut in corporate income tax for companies with annual revenues under VND200 billion ($8 million), a 30 per cent reduction in land lease fees, lowered administrative charges, and a review of “domestic export” policies. Medium-term preferential credit packages are also under consideration. However, implementation must comply with international trade obligations, particularly transparency and anti-subsidy rules in strategic industries.

Experts also urge authorities to prepare for potential financial crises, including defaults, banking liquidity risks, and asset price shocks. Vietnam must audit its financial buffers and ensure clear rescue strategies are in place. At the same time, monetary policy should aim to stabilize the VND exchange rate to avoid exacerbating trade war effects through a sharp devaluation against the USD.

To attract long-term capital, analysts recommend lifting foreign ownership caps and removing policy barriers discouraging institutional investors. Vietnam’s financial market requires urgent reform to ensure stability, transparency, and sustainability, with the protection of consumer and investor interests at the forefront. Experts argue that a system built on accountability and transparency, rather than massive financial conglomerates, is essential to foster trust.

Structural issues persist in the market, with overlapping ownership between financial and non-financial institutions, raising concerns about opaque investments and market manipulation. The lack of independent credit rating and asset valuation agencies further complicates risk assessment for investors. Most critically, Vietnam’s fragmented financial regulatory framework lacks the legal authority and institutional capacity to address systemic risks that could harm market growth.

-Phan Linh Phuong Linh

The two IPs, covering a total area of 464ha, have combined investment capital of over $370 million.

Authorities of northern Hai Phong port city have given the green light to the investment policy for construction of Ngu Phuc and Tan Trao Industrial Parks (IP).

The Ngu Phuc IP (first phase) will cover 238ha in Ngu Phuc and Kien Quoc communes. Its total investment capital is estimated at VND5.67 trillion ($217 million).

Meanwhile, the Tan Trao IP (first phase) will cover over 226ha in Tan Trao and Kien Quoc communes with an estimated investment capital of more than VND4 trillion ($153 million).

The Vinhomes Hai Phong Industrial Park Investment JSC was licensed to be the investor of the two projects.

The projects’ implementation is scheduled to last five years, from the second quarter of 2025 to the second quarter of 2030.

 

-Đỗ Hoàng

One of key tasks is taking more measures to respond to tax policy changes of other countries, especially the reciprocal tariff policy of the US.

Prime Minister Pham Minh Chinh required relevant ministries, sectors, agencies and localities to take more measures in response to other countries' tax policy changes, especially the reciprocal tariff policy of the US, at the Government’s regular meeting for May held in Hanoi on June 4.

This is part of key tasks and measures outlined by the Government leader for the coming time to achieve the national targets.

Other tasks include diversifying markets, products and supply chains, and capitalizing on the domestic market; pushing ahead with institutional perfection, political apparatus restructure, administrative procedure reform, and digital transformation; and promoting growth by renewing traditional growth drivers and facilitating new ones.

The PM also stressed the need to maintain macroeconomic stability, curb inflation, and ensure key economic balances. The monetary policy must be proactive and flexible while the fiscal policy should be appropriately expansionary and well-targeted.

-Tiến Dũng

According to projections, the total investment required for the seaport system is over VND14 trillion (over 537 million).

Deputy Minister of Construction Nguyen Xuan Sang recently chaired an online meeting to appraise the detailed planning for the development of land and maritime areas of seaports for the period 2021–2030, with a vision toward 2050, in the central provinces of Ha Tinh, Quang Tri, Binh Dinh, and Binh Thuan.

During the meeting, the Appraisal Council conducted a vote and officially approved a detailed development plan for the land and maritime areas of Ha Tinh province's seaports for the 2021–2030 period, with a vision toward 2050.

According to the  plan, Ha Tinh’s seaport system includes Vung Ang Terminal, Son Duong Terminal, Xuan Hai - Xuan Pho Port, Cua Sot Port, Xuan Giang Oil Terminal, as well as anchorage areas, buoy berths, transshipment zones, and storm shelters.

Ha Tinh's seaport system is expected to handle between 46.3 million and 83.5 million tons of cargo by 2030. In terms of infrastructure, the plan outlines a total of 13 ports with between 36 and 44 berths, having a total quay length ranging from 7,509 m to 9,653 m. The plan also specifies the land and water area scopes to match the port scale and meet development requirements.

Looking toward 2050, the province's seaport system is expected to accommodate an annual cargo growth rate of 3.6% to 4.5%. The estimated land usage demand by 2030 is around 241 hectares, with the maritime area covering approximately 29,536 ha.

According to projections, the total investment required for the province's seaport system is over VND14 trillion (over 537 million).

-Gia Huy

Foreign direct investment (FDI) continued to be a key growth driver for Vietnam, with capital inflows increasing since mid-2024.

Vietnam's economy is expected to continue its solid growth trajectory over the next two years,  according to the OECD Economic Outlook Report for 2025, released on June 3.

However, the pace may slow down due to global policy uncertainties and domestic factors, the report added.

Accordingly, Vietnam's GDP growth is projected to reach 6.2% in 2025 and 6.0% in 2026.

The report stated that personal consumption is expected to continue growing well in 2025, driven by the positive effects of an increase in workers' real wages. Additionally, the government's plan to boost public investment will be an important factor in supporting domestic investment and stimulating economic growth.

Looking back at 2024, the OECD assessed that Vietnam's economy had a strong year, with an impressive GDP growth of 7.1%, following a moderate growth rate of 5.1% in 2023. Positive contributions from final consumption, total investment capital, and exports of goods and services were the main factors driving this stable expansion. Notably, the unemployment rate dropped to a historic low of 2.2% in March 2025, underemployment decreased, and labor force participation increased.

Exports of goods and services also saw a significant increase of 15.5% in 2024, after a slight decline in 2023. Particularly, exports to the US surged by 23.2%, accounting for 30% of Vietnam's total export revenue. This makes Vietnam more vulnerable to US import tariff increases.

Foreign direct investment (FDI) continued to be a key growth driver for Vietnam, with capital inflows increasing since mid-2024.

Additionally, Vietnam maintained macroeconomic stability, with headline inflation decreasing from a recent peak of 4.4% in May 2024 to 3.1% in April 2025. Meanwhile, core inflation fell to 2.5% in September 2024 but later rebounded.

Despite positive signals, the OECD forecasts that Vietnam's economy will still face considerable challenges. Global policy instability is expected to cool foreign investment and export activities. FDI inflows are projected to weaken, and inflation is expected to rise.

-Anh Nhi

Four ongoing projects—totaling 2,874 units—are expected to be completed by the end of 2025, ensuring the city meets its social housing target for the year.

Ho Chi Minh City is committed to surpassing its goal of developing 100,000 social housing units by 2030.

Speaking at a conference on June 2, Chairman of the HCMC People’s Committee, Mr. Nguyen Van Duoc, highlighted the importance of National Assembly Resolution 201/2025/QH15, which introduces groundbreaking mechanisms and policies to address existing challenges in social housing development.

He emphasized that five social housing projects have already been completed and put into use, providing 2,377 units, along with a partially completed worker accommodation project comprising 368 units.

Additionally, four ongoing projects—totaling 2,874 units—are expected to be completed by the end of 2025, ensuring the city meets its social housing target for the year.

Legal procedures are also being expedited to begin construction in 2025 for 16 new projects, bringing 14,326 apartments, while preparations for 22 more projects—totaling 32,784 apartments—are set for launch in 2026.

“The city has identified that preparing land funds for social housing development by 2030 is critical to achieving the 100,000-unit target, as directed by the Prime Minister,” stated Mr. Duoc.

The city has allocated a total land fund of 1,400 ha for social housing development, including 661 ha for 116 ongoing projects and an additional 739 ha currently under study for allocation in the city's revised master plan.

-Thiên Di