Vietnam’s transition to a sustainable economy is creating new job opportunities but also reveals that demand for workers with green skills far outpaces the labor market’s ability to supply them both globally and in Vietnam.

The World Bank’s June 2025 report, “Vietnam 2045 - Growing Greener: Pathways to a Resilient and Sustainable Future”, estimated that Vietnam has some 1.7 million green jobs but the workforce with the right skills remains critically insufficient. While demand for skilled workers in industry, energy, and infrastructure is expected to rise by up to 30 per cent by 2050, unskilled workers in agriculture may decline by 20-30 per cent. This structural shift requires large-scale training efforts, for which the current system is not yet prepared.

In practice, World Bank analysis for 2023 and 2024 shows that green jobs accounted for only about 3.6 per cent of the workforce, even though 41 per cent of jobs have the potential to be “greened”. But only 20 per cent of workers currently possess the necessary skills, reflecting the slow growth of the labor market relative to the speed of business transformation and the rising demands of international markets.

In response, one practical model aimed at narrowing this gap was a five-day field visit to Singapore in 2025 for the winning students of the GEFE 2024 Student Business Challenge. Initiated by EuroCham Vietnam under the 2024 Green Economy Forum and Expo (GEFE), the program offered a small-scale but highly-effective approach to bridging the green skills gap.

“These students spent five immersive days among humanitarian logisticians, renewable energy experts, bankers, and sustainability strategists,” said Ms. Pauline Dutertre, GEFE/GEF Project Manager and Head of MarCom at EuroCham. “The program not only takes students abroad to study but also places them at the heart of real-world decisions shaping Asia’s green transition.”

Where green skills meet reality

Students engaged with experts across renewable energy, sustainable logistics, green finance, and environmental, social, and governance (ESG) strategy. They participated in simulations that challenged them to balance environmental risks against economic benefits - critical skills in today’s green labor market - under the guidance of international specialists.

Ms. Le Mai Quyen, a fourth-year student at RMIT University, said the experience completely changed her perspective on sustainability. “I used to think sustainability was mainly about technology or big policy,” she said. “But the simulations showed me that it is really about people - how we coordinate, negotiate, and make small decisions that lead to big outcomes.”

The simulations exposed students to real business scenarios, from balancing profit with environmental risk to evaluating the impact of infrastructure investment on communities. “A project may look attractive on paper,” Ms. Quyen explained, “but when you consider long-term risks like pollution and health impacts, the short-term benefits may not be worth it.”

For students like Ms. Quyen, who grew up in central Vietnam, a region frequently hit by natural disasters, sustainability is tangible and immediate. “We prepare for storms by stocking food, reinforcing homes, and moving valuables, yet we still feel overwhelmed,” she said. “Sustainability is not theory; it is a lived reality.”

At EDP Renewables APAC’s Singapore headquarters, students were inspired directly by renewable energy specialists. “The students’ curiosity is exactly what the energy transition needs,” Ms. Sara Franzese, Head of Renewables Generation Assets, emphasized. “They are co-designers and the talent pipeline that can drive change.” She added that what impressed her most was not just their technical understanding, but their awareness of Vietnam’s energy challenges, from grid limitations to regional development disparities. “When students bring local perspectives to the international stage, they help us make our roadmaps more robust and relevant,” she said.

Similarly, third-year VinUniversity student Duong Hai Phong reflected that the environment isn’t something distant or abstract. “It exists in the small details around us and affects us directly and indirectly,” he said. He highlighted logistics, a sector often overlooked in sustainability, as a major opportunity for Vietnam’s climate progress, stressing that every small step, from individual decisions to collective action, contributes to the green transition.

One of the most challenging exercises, led by Ms. Diana Tang, Director of Sustainable Finance at ING Bank Asia Pacific, placed students in a hazardous waste management scenario in Ho Chi Minh City. They had to weigh community safety, environmental risks, regulatory pressure, and business incentives, mirroring real-world corporate decisions. Ms. Tang was particularly struck by the students’ proactive mindset and sense of ownership. “It wasn’t just a yes-or-no debate,” she said. “It was, ‘let us do it, empower us.’ This entrepreneurial spirit and accountability really stood out.”

Ms. Tang also warned that capital and technology alone are not enough. Skilled, ESG-aware personnel are essential for companies to survive in the evolving global supply chain. “Without green skills, businesses risk losing market share to better-prepared economies,” she said.

Building talent for sustainability

Continuing on from GEFE 2024, a recent panel discussion at the Green Economy Forum (GEF) 2025 in Hanoi entitled “Green Skills for Vietnam’s Sustainable Growth” brought together businesses, training experts, and international organizations to address workforce challenges in the green transition.

Experts agreed that demand for green skills in Vietnam is rising faster than supply. Only 3-5 per cent of the workforce currently holds green jobs, while major industries must meet strict European and international sustainability standards. The gap is compounded by a shortage of practical experience and a lack of integration of sustainability into daily work.

One key reason, according to GIZ and Manpower representatives, is the slow pace of curriculum updates relative to rapidly-evolving business needs. Students often graduate with skills misaligned with market demands.

Given this, upskilling the current workforce is the most effective short-term solution. Many of the workers in 2050 are already in the workforce, meaning that relying solely on new graduates is insufficient. Companies need to retrain existing staff in energy management, emissions measurement, sustainable procurement, and clean operations. Short-term training programs and technology-assisted solutions can help employees adapt more quickly. Green skills are essential not only for technical staff but also for finance, operations, and supply chain personnel.

Experts also stressed the decisive role of government policy. National standards for green skills, recognition mechanisms for both new and existing workers, and financial incentives for corporate investment in green training are vital. When labor markets and training systems operate in alignment, the skills gap can be significantly reduced.

Ultimately, green skills must be seen as a competitive advantage rather than a compliance requirement. When sustainability becomes embedded across all departments, companies can improve energy efficiency, reduce operational costs, increase productivity, and gain deeper access to international supply chains.

Vietnam’s ambition for a green economy is strong, yet workforce skill development has not kept pace. Coordinated action between businesses, educational institutions, and government is essential. Green skills will determine Vietnam’s competitiveness in the years ahead and its ability to maintain a strong position in global supply chains. Programs like GEFE/GEF not only guide students toward green careers but also directly and effectively help bridge the green skills gap by connecting academia, business, and hands-on experience.

Reflecting on the journey, Ms. Dutertre noted that the Singapore trip was just one chapter in a larger story, offering a glimpse of the future Vietnam is striving to build. Vietnam’s ability to compete, attract investment, and withstand climate shocks will depend on whether it can close the green skills gap. The decisions made today will shape not just the next five years but the next generation.

“Watching the students grow from the competition to the study trip made one thing clear,” she said. “They represent the spirit of Vietnam’s future - curious, thoughtful, ambitious, and ready. Their voices, combined with the expertise of leaders like Ms. Diana Tang, make a compelling case. Vietnam’s green transition is not only possible but achievable if the country invests boldly in its people.”

VET -Nhu Quynh

South Korea’s exports to Vietnam rose 7.6% in 2025 from a year earlier to $62.8 billion, while its imports from Vietnam climbed 11.7% to $31.8 billion, according to data released by the RoK’s Ministry of Trade, Industry and Energy and the Korea International Trade Association (KITA).

Vietnam has emerged as the Republic of Korea’s (RoK) key export market in the Association of Southeast Asian Nations (ASEAN), as the former seeks to diversify trade and reduce its reliance on the US and China amid global volatility, the Vietnam News Agency reported on January 27.

The State-run news agency quoted data released by the RoK’s Ministry of Trade, Industry and Energy and the Korea International Trade Association (KITA) as reporting that the RoK’s exports to Vietnam rose 7.6% in 2025 from a year earlier to $62.8 billion, while its imports from Vietnam climbed 11.7% to $31.8 billion.

That lifted two-way trade to $94.5 billion, up 9% from $86.8 billion. The total equals about 35% of the RoK’s trade with top partner China ($272.7 billion) and 48% of that with the US ($196.2 billion).

By export growth, Vietnam ranked second among the RoK’s markets at 7.6%, trailing only Taiwan (China), where demand surged for artificial intelligence chips.

The RoK posted a $31 billion trade surplus with Vietnam in 2025, up $1.1 billion from $29.9 billion a year earlier. The result made Vietnam the RoK’s second-largest source of trade surplus, after the US.

Vietnam topped the list in 2022 and has held second place for the past three years. The main driver has been a rebound in semiconductors. Fuelled by AI and global data-centre investment, chips — the RoK’s flagship export — hit a record $173.4 billion in revenue.

In Vietnam, semiconductors were also the largest export, with a turnover of $24.7 billion in 2025, a 36.7% jump from a year earlier.

Since the two countries established diplomatic ties in 1992, bilateral trade has surged 190-fold from $500 million, expanding from labor-intensive goods such as textiles to higher value-added products, including semiconductors and wireless communications equipment.

Trade has tripled since the Vietnam–RoK Free Trade Agreement took effect in 2014, lifting Vietnam from the RoK’s eighth-largest partner to third.

The trade structure is largely complementary. The RoK invests in Vietnam and exports intermediate goods to factories here, with Vietnam shipping finished products back. Samsung Electronics produces more than 50% of its global smartphone output in Vietnam and accounts for about 20% of the country’s total exports. The company has continued to expand its footprint, opening a large RD center in Hanoi in 2022. Exports of K-beauty and K-food products have also posted strong growth, supported by the global reach of the Korean Wave.

On the other side, the RoK plays a key role in Vietnam’s economy. Vietnamese customs data show that in the first 11 months of 2025, the RoK was Vietnam’s second-largest import market and fourth-largest export destination.

VNA-Van Nguyen

The 31.5-km road will connect Ma Da Bridge crossing the Dong Nai Nature and Culture Reserve to the Ring Road 4.

The People’s Committee of southern Dong Nai Province has approved a proposal by Dai Quang Minh Real Estate Investment JSC to develop a road project linking Ma Da Bridge with Ho Chi Minh City’s Ring Road 4.

The project includes several key components, notably the construction of an elevated bridge stretching about 13 kilometres across the Dong Nai Nature and Culture Reserve. This section will be implemented under the public–private partnership (PPP) model. Another component involves building a 31.5-kilometre road connecting the bridge to the Ring Road 4, which will be funded by public investment capital.

The road is designed with a roadbed width of 34.5 metres and eight lanes. In the first phase, four lanes will be built, with total investment estimated at more than VND22.65 trillion ($861 million).

Once completed, the project is expected to reduce travel time from Dong Xoai in former Binh Phuoc Province — now merged into Dong Nai — to Ho Chi Minh City’s Ring Road 4 to between one and one-and-a-half hours.

VnEconomy-Thanh Thủy

As of 2025, Vietnam ranks among the top seven countries globally in terms of the number of crypto asset holders.

With the Law on Digital Technology Industry taking effect  on January 1, Vietnam will officially become the 46th country in the world to legalize crypto assets.

According to a report by the Atlantic Council, as of May 2025, a survey of 75 countries revealed that 45 nations have enacted legal frameworks or legislation recognizing the legality of crypto assets. In contrast, 20 countries have implemented partial bans, and 10 have issued total bans.

Notably, among the 45 countries that have legalized these assets, 12 are members of the G20, representing approximately 57% of global GDP. This trend underscores the significant interest developed economies have in fostering the crypto asset sector.

Speaking at the dialogue "Legal Path and Development Models for Vietnam's Digital Asset Market" organized by the Vietnam Economic Times/VnEconomy on January 26, Vice President and General Secretary of the Vietnam Blockchain and Digital Assets Association (VBA), Nguyen Van Hien, confirmed that Vietnam will join this group as the 46th nation once the Law on Digital Technology Industry takes effect on January 1, 2026.

However, reality shows that Vietnam’s crypto asset market has developed at a much faster pace than the completion of its legal framework.

Data published by international organizations indicates that approximately 17 million Vietnamese people currently own crypto assets, with that number peaking at 21 million at certain points. As of 2025, Vietnam ranks among the top seven countries globally in terms of the number of crypto asset holders.

Vietnam also ranks in the top three in the Asia-Pacific region, particularly regarding capital inflows from the blockchain and crypto asset markets. In 2025 alone, the total value of this capital flow reached about $220 billion, doubling the average of the previous three years, which were $105 billion, $120 billion, and $110 billion, respectively.

Furthermore, Vietnam holds the top global position in a specific metric related to crypto capital: the percentage of young freelancers owning crypto assets. This figure currently stands at over 85%, ranking first among 85 surveyed countries.

While Vietnam currently lacks an official dataset published by domestic organizations, Ms. Hien expressed optimism for the future: “Once pilot models and trading floors are deployed in Vietnam, we will, for the first time, have a comprehensive and official data system regarding the number of Vietnamese people holding and owning crypto assets.”

Vneconomy-Bạch Dương

UNESCO stands with the government and people of Viet Nam to safeguard their heritage, support the continuity of education, and accompany recovery efforts grounded in knowledge, solidarity, and sustainability, UNESCO Director General Khaled El-Enany says.

The Government News on January 27 quoted UNESCO Director General Khaled El-Enany as announcing emergency support worth $740,000 to safeguard cultural heritage and sustain education in Vietnam’s communities which had been most affected by natural disasters in 2025.

The UNESCO Director General said, as quoted by the Government News, the recent disasters that struck Vietnam underscore the urgent need to strengthen resilience to climate‑related risks.

UNESCO stands with the government and people of Viet Nam to safeguard their heritage, support the continuity of education, and accompany recovery efforts grounded in knowledge, solidarity, and sustainability, he added.

"Together, we can turn this hardship into an opportunity to build safer and better prepared communities," shared Mr. El-Enany.

Working with the Ministry of Culture, Sports and Tourism and provincial authorities, and thanks to the support of the Heritage Emergency Fund and the World Heritage Fund, UNESCO is conducting technical assessments and urgent safeguarding measures at the World Heritage sites of Hue and Hoi an in central Vietnam, as well as other cultural sites impacted by flooding and storm damage.

In parallel, UNESCO is supporting risk‑informed, integrated approaches that strengthen preparedness for both tangible and intangible cultural heritage, ensuring communities' traditions and knowledge systems are protected.

In the northern provinces of Cao Bang and Lang Son, UNESCO's education support focuses on rehabilitating safe learning and counselling spaces, replacing essential equipment, and addressing psychosocial needs of students and teachers—especially in vulnerable and ethnic minority communities—to help schools resume learning safely and inclusively.

With funding from Japan, UNESCO will advance science‑based disaster risk reduction in central Nghe a province, including assessments and support for early warning systems and measures that promote safer learning environments. These efforts complement the emergency response while reinforcing long‑term resilience in disaster‑prone areas.

Beyond immediate interventions, UNESCO is actively engaging Member States and partners to mobilize additional resources that will scale recovery and resilience efforts across culture and education in Vietnam.

Typhoons Wipha, Bualoi and Matmo left a devastating trail: hundreds of people killed or injured, hundreds of thousands of homes damaged, and nearly 10,000 schools affected nationwide. In response, UNESCO is deploying targeted assistance to help national and local partners stabilize cultural heritage assets and restore learning continuity for children and youth.

VGP-Van Nguyen

Vietnam’s bid for double-digit GDP growth hinges on productivity gains, public investment reform, and institutional change to unlock sustainable economic momentum.

To achieve double-digit GDP growth during the 2026-2030 period, Vietnam must fundamentally transform its growth model from one driven by scale to one driven by depth. In this transition, improving Total Factor Productivity (TFP) and reforming public investment are widely viewed as two critical pillars capable of delivering breakthroughs in economic growth.

According to Mr. Le Xuan Ba, former Director of the Central Institute for Economic Management (CIEM), Vietnam is standing at a historic crossroads that requires a fundamental shift in development thinking. He noted that Vietnam’s average annual economic growth rate during the 1986-2025 period stood at some 6.51 per cent, still far below the performance of economies that experienced periods of rapid catch-up growth, such as South Korea, with 9.58 per cent a year (1960-1990), China with 10.02 per cent (1978-2018), and Japan with 8.49 per cent (1947-1977).

“To enter the group of high-growth economies with GDP expanding by more than 10 per cent, Vietnam cannot continue to rely on an extensive growth model that depends primarily on capital accumulation and natural resource exploitation,” he emphasized.

Raising TFP’s contribution

According to Mr. Ba, TFP is the decisive factor in transforming Vietnam’s growth model. The indicator measures the overall efficiency of production inputs - capital and labor - and reflects progress in technology, management, and, critically, institutions. Data show that while TFP’s contribution to GDP growth has been increasing, estimated at 46.4 per cent in 2024, it must be pushed above 50 per cent to generate a meaningful breakthrough and sustain double-digit growth.

“International experience shows that countries seeking high growth must raise TFP’s contribution to above 50 per cent,” Mr. Ba said. “Achieving a TFP breakthrough requires a comprehensive set of coordinated solutions, with the core being the improvement of economic institutions so that institutions are no longer the ‘bottleneck of bottlenecks’.”

The five-year implementation of National Assembly Resolution No. 31/2021/QH15 on the economic restructuring plan for the 2021-2025 period underscores the scale of the challenge. A report from the Institute of Strategy and Economic-Financial Policy shows that of the 27 targets set, only 23 currently have sufficient data for evaluation. Ten of the 23 are likely to be achieved, nine face significant difficulties, and four are expected to fall short.

Notably, among the four targets unlikely to be met are two critical quality-related indicators: workplace productivity growth and the share of spending on science and technology. The root causes lie in the slow pace of institutional and policy development and the persistence of cumbersome administrative procedures.

Fixing capital efficiency

From another perspective, Dr. Can Van Luc, Chief Economist at BIDV and Member of the National Financial and Monetary Policy Advisory Council, said achieving 10 per cent growth in the next phase will require not only higher TFP but also sustained increases in capital investment. “According to our estimates, capital will continue to contribute about 45-47 per cent to economic growth in the coming period,” he explained. “Labor will account for around 5-6 per cent, down from about 8 per cent at present, while TFP is expected to rise to above 50 per cent from the current level of around 47 per cent.”

BIDV calculations show that public investment accounted for 17.2 per cent of total social investment during the 2021-2025 period, and every additional dollar of public investment attracted $1.61 in private investment. This highlights the role of public investment as a key driver and a source of “seed capital” for the broader economy.

However, the efficiency of capital use has become a growing concern, placing significant pressure on both the scale and quality of growth. The Incremental Capital-Output Ratio (ICOR), a key measure of investment efficiency, remains alarmingly high, particularly in the State sector. While the ICOR for the overall economy during 2016-2021 stood at 9.1, the figure for the State sector rose from 13.03 in 2010-2015 to 17.8 in 2016-2021.

This level is four to five times higher than that of other fast-growing economies during their take-off phases, with South Korea and Japan, for example, recording ICORs of only around 3.2. According to Dr. Luc, to achieve annual GDP growth of 10 per cent in the next phase, with total social investment equivalent to about 40 per cent of GDP, Vietnam’s ICOR must be reduced to around four. Only then can it address the problems of an imbalanced capital structure, widespread inefficiency, and the accumulation of stalled projects.

Data shows that about 80 per cent of total investment capital is currently allocated to infrastructure, while only 20 per cent goes to sectors that generate TFP breakthroughs, such as science and technology (0.45 per cent), education (10.3 per cent), and healthcare (4.2 per cent). This imbalance is constraining Vietnam’s ability to shift towards productivity-driven growth.

In addition, delays in public investment disbursement persist, with disbursement reaching only 84.47 per cent of the 2024 plan. Notably, nearly 3,000 stalled projects remain entangled in unresolved obstacles, resulting in wasted resources and lost time.

Breakthrough recommendations

To realize the goal of double-digit growth, experts recommend prioritizing the restructuring of public investment while generating new momentum through higher TFP and improved human capital quality.

According to Dr. Luc, the core solution lies in reshaping public spending towards productivity-driven growth. He proposed cutting the share of public investment in transport and energy infrastructure from the current 80 per cent to around 50-55 per cent, while sharply increasing spending on sectors that generate TFP. Specifically, education and training should account for about 20 per cent of total public investment, approaching international benchmarks; healthcare spending should rise to 10-12 per cent; science and technology investment should increase to 3-5 per cent; and greater resources should be allocated to green transformation and climate change mitigation to support sustainable development and international integration.

At the same time, Vietnam should develop a more scientific and up-to-date framework for evaluating public investment projects, with support from international organizations such as the International Monetary Fund and the World Bank, to bring the ICOR down to the target range of four to five.

From a management perspective, Dr. Luc said it is essential to control the number of projects and reallocate capital from slowly-disbursing projects to those with strong implementation capacity.

Alongside public investment reform, Mr. Ba urged the government to accelerate institutional improvements and human resource development to create a reinforcing effect across the economy.

A key priority, he said, is building a developmental and integrity-based State - fair, objective, and accountable - and establishing institutions that enable growth. Reforms should create a more open legal environment that strongly promotes new economic models, particularly the private sector, allowing it to fully play its role as a growth engine.

“This must also be reflected in efforts to remove obstacles in key framework laws, which the government is urgently reviewing and revising to ensure consistency, decentralization, and the elimination of slow and overlapping planning,” Mr. Ba said.

On mobilizing private capital and household resources, he emphasized the need for effective policies to attract remittances and create a favorable business environment to tap idle domestic resources, estimated at around $60 billion. Public investment, he emphasized, should act as a catalyst to lead and attract private capital, not replace it.

Regarding human capital development, Dr. Luc highlighted the need for a decisive shift in education and training from passive to active learning, with stronger links between theory and practice. He also called for greater autonomy and accountability for public training institutions to improve workplace quality and, in turn, raise labor’s contribution to economic growth. “Establishing a new growth model based on quality, efficiency, and greater autonomy - supported by a flexible and effective institutional framework and a thoroughly restructured public investment system - is key for Vietnam to achieve breakthrough growth of 10 per cent or higher during the 2026-2030 period and move towards becoming a high-income developed country,” he concluded.

VET-Anh Nhi

The projected Ben Thanh – Thu Thiem metro section spans approximately 5.58 km with six underground stations and an estimated preliminary investment of VND33 trillion (over $1.26 billion).

Ho Chi Minh City has approved a proposal by the city Department of Finance to task Truong Hai Group (Thaco) with conducting a feasibility study for the projected Metro Line 2 section connecting Ben Thanh and Thu Thiem, according to a report from Radio the Voice of Vietnam.

Thaco is required to submit the study, along with its capability profile and a draft research contract, within a four-month deadline, ensuring full compliance with current legal regulations.

The municipal government clarified that this approval is strictly limited to allowing research and the proposal of technical options. It does not constitute an approval of the investment method, the appointment of a project developer, or a commitment to utilize the research results.

Should the feasibility study fail to gain approval from competent authorities, exceed the assigned deadline, or if the city decides to pursue the project through alternative funding sources or investment models due to urgent requirements, Thaco must bear all incurred costs. In such cases, the company will not be reimbursed and must hand over all research products to the Management Authority for Urban Railways (MAUR) for state management and data reference purposes.

The Ben Thanh – Thu Thiem metro section spans approximately 5.58 km with six underground stations and an estimated preliminary investment of VND33 trillion (over $1.26 billion). This section is one of three segments of Metro Line 2 (alongside the Ben Thanh – Tham Luong and Tham Luong – Cu Chi sections), which will have a total length of over 60 km.

VOV-Pham Long

Vietnam recording encouraging economic results in 2025 with GDP growth reaching 8.02%.

Prime Minister Pham Minh Chinh, head of the Government Steering Committee for Macroeconomic Management and Administration, outlined key tasks and solutions to create strong momentum for growth in 2026 and the entire 2026–2030 period while chairing the committee’s second meeting in Hanoi on January 26.

He called for proactive, flexible and effective responses based on clearly grasping developments. He directed the continued implementation of an expanded but focused fiscal policy, with appropriate tax and fee measures to support development, especially the double-digit growth target, alongside measures to increase revenues, reduce expenditures, and prioritise spending on defence, security, growth drivers and social welfare. Monetary policy should be managed proactively, flexibly, timely and effectively, with close coordination between fiscal and monetary policies so that they reinforce one another.

The Government leader also underscored the need to strengthen fiscal and budgetary discipline, ensure accurate and timely revenue collection, expand the tax base and combat revenue losses, especially in e-commerce and services, while continuing tax and fee reductions and extensions to support people and businesses, particularly small- and medium-sized enterprises. Available room on public debt and overspending should be used prudently to mobilise resources for investment in national priority projects and areas such as science, technology, innovation and digital transformation.

The Prime Minister also directed efforts to develop stable and healthy stock and corporate bond markets, manage interest rates and exchange rates in line with macroeconomic conditions, stabilise the Vietnamese dong (VND), continuously renew traditional growth drivers, and vigorously promoting new ones. He also stressed the importance of promoting public investment disbursement, attracting high-quality FDI, accelerating green transition, ensuring food security, stabilising markets and prices, and intensifying the fight against smuggling, trade fraud and counterfeit goods.

Last year, Vietnam recorded encouraging economic results, with inflation kept under control at 3.31%, macroeconomic stability consolidated, major economic balances safeguarded, and GDP growth reaching 8.02%.

VnEconomy-Hà Lê

Both sides agreed to step up cooperation in priority areas like trade, investment, economic connectivity, and digital transformation.

General Secretary of the Communist Party of Vietnam (CPV) Central Committee To Lam held talks with visiting General Secretary of the Lao People’s Revolutionary Party (LPRP) Central Committee and President of Laos Thongloun Sisoulith in Hanoi on January 26 morning, according to a report from the Vietnam News Agency.

Sharing the common delight of the Vietnamese and Lao people over the success of the 14th National Congress of the CPV and the 12th National Congress of the LPRP, the two leaders briefed each other on the situation of their respective Parties and countries, as well as the major outcomes of each Party’s National Congress.

They held in-depth exchanges on major guidelines and policies set out in the resolutions of the congresses, as well as the regional and international situation, and orientations for further promoting the great friendship, special solidarity, comprehensive cooperation and strategic cohesion between Vietnam and Laos in the new period. They agreed that amid rapidly evolving, complex and unpredictable international and regional developments, it is particularly important for the two Parties and States to continue strengthening unity, close bonds, political trust and close coordination.

Congratulating Thongloun Sisoulith on his re-election as Party General Secretary, General Secretary Lam appreciated his selection of Vietnam as the first country to visit immediately after the successful conclusion of the new-term Party Congresses of the two Parties. He affirmed that the visit holds historic significance, vividly demonstrating the special importance that the Lao Party, State and the General Secretary personally attach to Vietnam–Laos relations.

He expressed his confidence that the trip would be a great success, elevating the bilateral relations to a new height, and reaffirming the determination of the leaders and people of the two countries to preserve and further develop their great friendship, special solidarity, comprehensive cooperation and strategic cohesion.

The Lao leader spoke highly of the great, comprehensive and historically significant achievements recorded by the Vietnamese people over the past 80 years of national construction and development, particularly the remarkable accomplishments over 40 years of Doi moi (Renewal), especially during the term of the 13th National Congress.

He warmly congratulated the CPV on the successful organisation of its 14th National Congress, stressing that this was a historically significant political event in determining Vietnam’s development path and tasks in the new period. He also extended his warm congratulations to To Lam on being trusted by the Party to continue serving as General Secretary of the 14th Party Central Committee, reflecting the high confidence of the Party, State and people of Vietnam.

The top Lao leader expressed his firm belief that under the leadership of the CPV, headed by General Secretary Lam, Vietnam will continue to uphold its glorious traditions, successfully implement the Resolution of the 14th National Congress, and successfully realise the two 100-year goals.

General Secretary Lam also took this occasion to congratulate the LPRP on the resounding success of its 12th National Congress, affirming that the Congress marked a new stage in the development of the Lao revolution, demonstrating the great strength of national unity and the steadfast pursuit of comprehensive, principled and inheritable renewal for the goal of national construction, defence and development. He stressed that this is a source of pride for the Lao people and also a shared joy for Vietnam, contributing to consolidating a firm political foundation for further strengthening and deepening the great friendship, special solidarity, comprehensive cooperation and strategic cohesion between the two countries.

General Secretary Lam reaffirmed the strong and comprehensive support of the Vietnamese Party, State and people for Laos’s national construction, renewal and protection cause, and showed his firm belief that, building on the major achievements and valuable experience gained over 40 years of renewal, the Lao Party, State and people will successfully implement the Resolution of the 12th National Congress and the 10th five-year socio-economic development plan, successfully building a peaceful, independent, democratic, unified and prosperous Laos along the socialist orientation.

At the talks, the two leaders affirmed that the addition of the concept of “strategic cohesion” to the framework of the great friendship, special solidarity and comprehensive cooperation in 2025 represents a new development of long-term strategic significance, creating a solid political foundation for the bilateral relations to develop in an increasingly substantive, effective and sustainable manner, contributing to political stability, development goals and the enhanced international standing of each country.

The two leaders emphasised that as the two Parties have just successfully held their new-term National Congresses, ushering in a new stage of development with long-term strategic orientations, the continued strengthening of strategic cohesion and the further deepening and substantive enhancement of comprehensive cooperation is both extremely important and urgent.

They affirmed that this is not only an objective requirement stemming from the fundamental and long-term interests of each country, but also a shared political responsibility of the two Parties to inherit, preserve and promote the invaluable common asset painstakingly nurtured by generations of leaders and people of the two countries. They agreed that in the new development period, both sides should concretise and effectively implement high-level agreements, with the Vietnam–Laos Joint Statement at the centre, ensuring close linkage between strategic vision and concrete actions.

The two leaders agreed to promote the respective strengths of each country and focus on implementing projects that meet the practical needs of the two countries' people and bear strong symbolic significance for the bilateral relations, with priority given to key areas such as defence and security to help safeguard political stability, social order and safety in each country, and consolidate a firm, peaceful and stable environment for long-term sustainable development.

They agreed to step up economic, trade and investment cooperation, strive to achieve bilateral trade turnover of $10 billion, strengthen connectivity between the two economies and transport links through major projects such as Hanoi–Vientiane expressway and Vientiane–Vung Ang railway. They also reached consensus on enhancing the quality and effectiveness of cooperation in education and training, human resources development, especially high-quality human resources. The two sides pledged to make efforts to achieve breakthroughs and enhance collaboration effectiveness in culture, tourism, science and technology, based on fully tapping each country’s potential, strengths and complementarity; and expand cooperation in telecommunications, e-government and digital transformation.

The two leaders agreed to maintain effective information exchange and assessments of the international situation, and continue close consultation, coordination and mutual support on international and regional issues, and at multilateral forums.

On this occasion, Lao Party General Secretary and President Thongloun Sisoulith respectfully invited Party General Secretary To Lam to visit Laos again at an early date. The latter gladly accepted the invitation.

At the end of the talks, the two leaders witnessed the exchange of cooperation documents between the two countries.

VnEconomy-

The Party chief made the statement during a working session on January 25 with Vietnamese ambassadors and heads of overseas representative missions attending the 14th National Party Congress.

Party General Secretary To Lam has requested Vietnamese ambassadors and heads of representative missions abroad to uphold their pioneering role in grasping, analyzing, and forecasting international situations and local contexts. 

He urged them to proactively advise on identifying and addressing challenges early while effectively seizing cooperation opportunities to ensure that no time is lost in promoting substantive relations with partners.

The Party chief made the statement during a working session on January 25 with Vietnamese ambassadors and heads of overseas representative missions attending the 14th National Party Congress. The session focused on major orientations for implementing the Congress' Resolution, particularly in the fields of foreign affairs and international integration.

The Party leader emphasized that representative missions must grant high priority to economic, scientific, and technological diplomacy. This includes strengthening market connectivity and promoting technology transfer, innovation, and digital transformation to contribute directly to the implementation of strategic technologies and major socio-economic development projects. He stressed that foreign affairs activities must be "citizen- and business-centric," regarding the effectiveness and satisfaction of people and enterprises as a vital measure of success.

Regarding the newly approved Resolution of the 14th National Party Congress, the General Secretary stated that alongside national defense and security, accelerating foreign affairs and international integration is a crucial and regular task. The Congress highlighted the requirement for strategic autonomy and self-reliance as the foundation for deep integration without dependence, ensuring international cooperation goes hand-in-hand with maintaining independence, sovereignty, and national interests.

The Resolution also affirms that the development of foreign affairs in the "new era" must be commensurate with the nation’s historical and cultural stature, reflecting the spirit, will, and aspirations of the Vietnamese people after 40 years of Doi moi (Renewal).

The General Secretary urged the diplomats to deeply internalize the principle of putting national interests above all else. He called for a spirit of dedication, creativity, and a "bold in thinking, bold in action" approach to achieve breakthroughs, while maintaining strict discipline and ensuring that words are translated into concrete, effective results.

In recent times, the Party and State have issued several pivotal strategic documents on foreign policy, including Resolution 59 of the Politburo and Resolution 250 of the National Assembly on specific mechanisms for international integration. Moving forward, the Politburo is expected to issue a specialized resolution on implementing the foreign policy lines established by the 14th Party Congress.

Building on the country’s new stature and strength, the General Secretary noted that representative missions should project the image of a Vietnam that is ready to contribute proactively and responsibly to the international community. They are expected to continue spreading Vietnam's "soft power," promoting the country’s culture and people, while excelling in community work and protecting the legal rights and interests of Vietnamese citizens and businesses abroad.

Vneconomy-Hà Lê

Prime Minister Pham Minh Chinh emphasized that the projects must focus on attracting high technology, simplifying administrative procedures, and optimizing efficiency.

Affirming that the Ninh Thuan Nuclear Power Plant is a strategic project with a 100-year vision, Prime Minister Pham Minh Chinh has requested the Ministry of Industry and Trade to urgently finalize all agreements and reports to ensure the project’s early implementation for the sake of national interest and sustainable energy security.

On January 26, the PM chaired a meeting to review draft reports and proposals regarding nuclear power projects.

In response to demands of a new era of development, the Party Central Committee and the National Assembly carefully considered and reached a consensus on the policy to restart the Ninh Thuan nuclear power project in late 2024. Following this, the Politburo issued Resolution No. 70-NQ/TW on ensuring national energy security through 2030, with a vision toward 2045 on August 20, 2025. This resolution explicitly calls for the urgent implementation of the Ninh Thuan 1 and Ninh Thuan 2 nuclear power projects.

The Government leader highly commended ministries and agencies for strictly following the leadership's directives and actively fulfilling their tasks. Notably, negotiations with Russian partners regarding the construction of the Ninh Thuan 1 Nuclear Power Plant have been fundamentally completed.

He instructed that all reports and proposals must be concise yet comprehensive. They should clearly outline the implementation process, the status and results of negotiations, and the core achievements aimed at ensuring the highest interests of the nation and the people. He emphasized that the projects must focus on attracting high technology, simplifying administrative procedures, and optimizing efficiency.

Furthermore, the reports must highlight the key components of the draft Agreement on Cooperation for the Construction of Ninh Thuan 1—which both sides have discussed in great detail—as well as plans to accelerate the progress of the Ninh Thuan 2 plant.

The Prime Minister assigned Deputy Prime Minister Bui Thanh Son to oversee the process. The Ministry of Industry and Trade is tasked with the primary responsibility, with the Minister directly supervising the signing of relevant documents.

The ministry must incorporate all feedbacks from the Government’s Standing Committee and coordinate with other ministries and agencies to finalize the reports and draft documents by January 27, for submission to the competent authorities.

Vneconomy-Huyền Vy

Vietnam and Australia are deepening their cooperation in innovation to accelerate the journey from research to market, driven by two-way engagement with the Australian alumni community.

Ưithin the framework of the Comprehensive Strategic Partnership between Vietnam and Australia, one of the pillars established focuses on science, technology, innovation, and digital cooperation. In this context, closer collaboration between policymakers, universities, businesses, and investors is essential for translating scientific research into innovative and commercially-viable solutions for both countries.

In a cross-sector panel discussion at the Vietnam - Australia Alumni Business Forum on December 12 in Ho Chi Minh City, with the theme “From Science to Industry Solutions: Advancing Innovation through Cross-Sector Collaboration”, experts from government, academia, finance, and venture capital examined how Vietnam and Australia can strengthen cooperation to accelerate innovation and commercialization.

From lab to market

The challenge of converting scientific research into commercially-viable products continues to test Vietnam’s innovation ecosystem, particularly in terms of policy alignment, financing, and institutional collaboration.

According to Mr. Do Tien Thinh, Deputy Director of the National Innovation Center (NIC), Vietnam is entering a new era of innovation, driven by three key factors that can bring research from the laboratory to the market: legal frameworks and mechanisms, financial resources, and human capital.

On the legal and regulatory front, Vietnam has revised nearly 90 laws and issued around 40 National Assembly resolutions since last year. Ho Chi Minh City also recently updated Resolution No. 98/2023/QH15 on the pilot implementation of special mechanisms and policies for its development. For each law and mechanism, the focus is increasingly on enabling scientific research to become practical market solutions.

Under the new Law on Public Asset Management, nearly 300 public and national universities can now turn their assets into innovation hubs. Laboratories can be used for research and surveys, while existing buildings can host startups, fostering closer collaboration between universities and industry. Coupled with increased funding for science, technology, and innovation, as well as programs connecting with the overseas Vietnamese community through networks such as the Australian Alumni Business Network (AABN) and the Vietnam-Australia Scholars Experts Association (VASEA) to address talent challenges, these reforms aim to accelerate innovation and turn scientific research into market-ready solutions.

“When mechanisms, resources, and talent come together, scientific ideas can be transformed into practical solutions that create real market value,” Mr. Thinh emphasized. “I hope that next year we will see tangible results from these policies.”

Associate Professor Ngo Duy Dong, Head of the Transportation Section at the Department of Civil and Environmental Engineering at Monash University in Melbourne, noted that moving from science to practice often focuses solely on scientific value, while many projects face budgetary or investment risks. “There is no simple solution,” he said. “Each case must be considered individually, balancing risk and value.”

Monash University prioritizes cross-border collaboration to keep pace with global trends and climate change. Within this framework, it provides both financial and administrative support to help researchers identify potential industry partners across countries. “For example, at Monash, we have specialized innovation and commercialization teams that support researchers with intellectual property, licensing, and Proof of Concept (POC) funding,” he said. “This allows scientists to focus on their work without worrying about IP or commercial agreements. This support is a key factor in translating science into practical solutions.”

In the financial sector, Mr. Phung Duy Khuong, Deputy CEO and Head of Retail Banking at VPBank, emphasized that a bank’s role goes beyond providing capital. It also involves creating an ecosystem that connects startups, researchers, and investors. “We have developed programs to support innovation and accelerate projects from research to practical application,” he noted. “The biggest challenge is that scientific projects are sometimes not yet market-ready, so they need support in funding, training, and market connections.”

From a venture capital perspective, Ms. Vu Anh Tuyet, Senior Advisor at Vertex Ventures and a member of the AABN Advisory Board, said her experience working with numerous startups from their inception confirmed the challenges of bringing technology to market. Even highly-skilled researchers and technologists can lack an understanding of real market needs, sales capabilities, and team-building skills. “It is essential to ‘pair’ commercially-minded founders with tech experts to develop products that truly address customer pain points,” she explained, while also observing that Vietnam’s innovation ecosystem has grown significantly in recent years and pledging to support early-stage founders in building the next generation of technology-driven, investment-ready companies.

Turning opportunities into impact

Panelists agreed that the Vietnam – Australia Comprehensive Strategic Partnership provides a solid foundation for deeper cooperation in innovation. Priority areas identified included the digital economy, education, agriculture and food, energy, and health.

Mr. Brett Lovegrove, Pro Vice-Chancellor for Global Partnerships at the University of Queensland, emphasized the importance of complementarity between the two countries. Australia offers strong research infrastructure and commercialization experience, while Vietnam provides a fast-growing market with high demand for applied innovation.

A practical example of this collaboration was shared by Associate Professor Dong, who cited AI-enabled traffic management solutions in Ho Chi Minh City. Co-developed by Australian and Vietnamese partners, the digital twin technology has been piloted on several major corridors and has reportedly reduced travel time by some 20 per cent.

Mr. Khuong emphasized that with Vietnam’s population of 100 million and Australia’s 28 million, there are vast opportunities for cross-sector collaboration. The banking sector plays a crucial role in supporting all industries. The Vietnam Bankers Association and its Australian partner have signed an MoU to promote financial cooperation and innovation, applying sandbox models to pilot initiatives on a small scale before broader implementation.

Experts stressed that turning innovation opportunities into real market impact requires coordinated action across government, academia, business, and investors. Flexible regulatory frameworks, sandbox mechanisms, sustained investment, and cross-border talent networks were cited as key enablers.

The panel also highlighted the role of people-to-people links, particularly the community of more than 160,000 Vietnamese alumni of Australian universities, in bridging research and commercial ecosystems in both countries. The discussion reinforced a shared message: only through integrated, cross-sector collaboration can Australia and Vietnam unlock the full potential of science, technology, and innovation for sustainable economic growth.

Broadening the partnership

Speaking with Vietnam Economic Times / VnEconomy, Ms. Sarah Hooper, Australian Consul General in Ho Chi Minh City, highlighted the evolving partnership between the two countries. Traditionally known for agricultural investment and cooperation, Australia has recently stepped up its engagement in innovation and technology as part of its Comprehensive Strategic Partnership with Vietnam.

“For Australia, this is not an either-or choice,” Ms. Hooper said. “Agriculture remains a critical sector, but we also have a dedicated pillar on science, technology, innovation, and digital cooperation. This partnership is built on equality, with shared opportunities and challenges. The prosperity of our nations and the stability of our region depend on securing our economic futures together.”

Digital transformation and sustainability, including the goal of net-zero emissions by 2050, form vital pillars of cooperation. “We understand that these challenges cannot be tackled alone,” she said. “Collaborative efforts will shape a prosperous, stable, and peaceful region.”

Regarding how Australia’s experience can help Vietnam accelerate technology and innovation, Ms. Hooper pointed to Vietnam’s clear digital transformation framework and the parallels in Australia’s journey. “We are learning to design effective regulations and pathways to turn research into scalable startups,” she explained. “The recent partnership between the Ho Chi Minh City Innovation and Startup Support Center (SIHUB) and Australian unicorn Canva is a good example.”

She also highlighted Australia’s bold global leadership, citing the world-first ban on social media for children under 16, introduced on December 10, as a measure reflecting careful attention to community concerns about unregulated platforms. “Both countries are on learning journeys, discovering the benefits and risks of new technologies,” she said. “In many areas, Vietnam leads, offering valuable lessons for Australia as well.”

On sustainable development, Ms. Hooper stressed the importance of inclusive transformation. “Governments alone cannot meet these enormous challenges,” she said. “Private sectors, communities, and international partners must collaborate to ensure the benefits of digital and green transformation reach all members of society while protecting the planet.”

She noted shared concerns over pollution and water scarcity as areas ripe for deeper cooperation. “Achieving net-zero by 2050 requires collective action beyond government regulation,” she believes. “Our joint efforts across the region will be essential to building a sustainable, inclusive, and prosperous future.”

Quote

Ms. Sarah Hooper, Australian Consul General in Ho Chi Minh City

“We understand that these challenges cannot be tackled alone. Collaborative efforts will shape a prosperous, stable, and peaceful region.”

VET-Nhu Quynh

The project covering 66ha in Vung Ang EZ with a capacity of 2 million tons per year.

The Economic Zone Management Board of the central province of Ha Tinh has approved the investment policy for a stainless steel plant project in Hoanh Son Ward with an estimated investment capital of VND9.8 trillion ($372 million).

Under the decision, the project will be developed by a joint venture comprising Singapore-based Singvin Asset Management Pte. Ltd., Land River Holdings Pte. Ltd., and Son Ha Dong Nai Industrial Park Investment Joint Stock Company.

The plant will cover more than 66 hectares in the Vung Ang Economic Zone and have a designed capacity of 2 million tons per year. Its products, with thicknesses of 2.5–5 mm and widths ranging from 1,000 to 1,580 mm, will serve the manufacturing, construction and supporting industries.

The facility’s hot-rolling line will have a capacity of 1.95 million tons annually, supported by a synchronous production system to meet strong domestic demand while targeting export markets. The project is regarded as one of the most significant heavy-industry investments approved in the Vung Ang Economic Zone in recent times.

To date, the Vung Ang Economic Zone has attracted 156 projects, including 56 foreign direct investment (FDI) projects, with total registered capital exceeding $16 billion.

VnEconomy-Nguyễn Thuấn

This figure exceeding the annual target of $550 million.

Vietnam’s livestock product export earned $628 million in 2025, marking a year-on-year increase of 17.4%, according to a report from the Vietnam News Agency.

This figure exceeded the target of $550 million, set by the Ministry of Agriculture and Environment, according to the Department of Livestock Production and Animal Health under the ministry.

Looking ahead to 2026, the livestock sector will focus on expanding export markets, considering this as a critical driver for growth and increasing added value to livestock products.

The sector will continue to encourage and support businesses in enhancing production capacity, expanding output, and diversifying exports into markets that have been opened, including Japan, Russia, the Eurasian Economic Union, Hong Kong (China), Singapore and China.

Simultaneously, leveraging free trade agreements (FTAs) such as the EVFTA, CPTPP and RCEP will be a key strategy to boost efforts in seeking and negotiating with new markets.

Special focus will be placed on products with competitive advantages, such as bird’s nests and related products, honey and processed poultry products.

Particularly, the livestock sector will accelerate the development of disease-free zones and facilities, considering these as essential conditions for sustainable export expansion.

VNA-Van Nguyen

Total investment capital is estimated at VND3.85 trillion (US$146 million).

Authorities in the central city of Da Nang have approved the investment policy for the construction of a double-circuit 500kV power transmission line linking Thanh My – Quang Trach – Doc Soi , with total investment estimated at VND3.85 trillion (US$146 million).

The 77.3-kilometre transmission line will run through Phu Thuan, Ha Nha, Thuong Duc, Thanh My and Ben Giang communes.

The National Power Transmission Corporation (EVNNPT) has been approved as the project’s investor, contributing more than VND1.155 trillion to the total capital, while the remaining funds will be mobilised from other lawful sources.

The project is scheduled to be completed in the fourth quarter of 2028.

Once completed, it is expected to enhance power transmission capacity for the former province of Quang Nam (now part of Da Nang city and the Central Highlands, as well as facilitate the receipt of additional electricity to be imported from Laos.

VnEconomy-Ngô Anh Văn

A UK rail business delegation, comprising leading companies in the fields of railways, transit-oriented development (TOD), and Building Information Modelling (BIM), visits Vietnam.

Within the framework of the visit, at a seminar titled “Urban Rail Technologies and TOD Models: UK–Vietnam Cooperation” held recently in Hanoi, Matt Western MP, the UK Government’s Trade Envoy to Vietnam, Thailand, Laos and Cambodia, and head of the delegation, said that Vietnam is at a critical moment in its infrastructure development journey.

According to Mr. Western, rapid economic growth and urbanisation present both opportunities and challenges – particularly the need for sustainable, efficient and integrated transport systems. Railways and TOD are not only about moving people; they are about shaping cities, reducing congestion, improving air quality, and creating vibrant communities.

He also noted that transport is a major contributor to global carbon emissions. Investing in modern rail systems and TOD strategies is one of the most effective ways to reduce reliance on private vehicles, cut emissions, and promote greener urban living.

Vietnam - and Hanoi in particular - is at a transformative moment in its urban development journey. The ambitious vision of Hanoi to develop 10 urban rail lines is a bold step toward creating a modern, sustainable, and integrated transport system that will serve millions of people and shape the future of this great city.

"I am delighted to note that several of these lines are moving from vision to reality, with 2 lines already operational and some others kicked off with groundbreaking happened in 2025," he said. "These include key corridors that will connect Hanoi’s growing areas, reduce congestion, and provide cleaner, more efficient mobility options for residents and visitors alike."

He also affirmed that this scale of investment is not only about transport—it is about building sustainable cities, reducing carbon emissions, and improving quality of life. Rail and TOD strategies are central to achieving these goals, and they align perfectly with Vietnam’s commitment to green growth and our mutual Net Zero by 2050 ambition.

"We are therefore keen to share our experience in integrating low-carbon solutions into transport planning and urban development," he added. "British companies bring world-class expertise in rail engineering and supplies, financing, and TOD planning, and we are eager to collaborate with MRB Hanoi and Vietnamese partners to deliver projects that meet the highest standards of sustainability and innovation."

"The UK has been supporting Vietnam through the Green Cities, Infrastructure and Energy Programme (GCIEP), funded by the UK Foreign, Commonwealth Development Office," he noted. "The programme reflects the shared commitment of the UK and Vietnam to building infrastructure to international standards while advancing climate and sustainability goals."

In fact, UK companies are already involving and supporting the development of urban rail in both Hanoi and Ho Chi Minh City through digital transformation, Building Information Modelling (BIM), and TOD. Many UK companies joined the UK Rail Mission to Vietnam this week. They are here today to share expertise, exchange ideas, learn from each other, and explore practical ways to further collaborate, he noted.

"On behalf of the UK Government, I want to commend MRB Hanoi for its leadership and ambition, and thank all participants for your commitment to shaping the future of urban mobility in Vietnam," Mr. Western affirmed.

At the same seminar, the Director of the Hanoi Urban Railway Management Board (MRB) Nguyen Cao Minh, expressed his appreciation for UK support through the GCIEP.

"The UK’s extensive experience in integrating low-carbon development solutions, managing complex projects, and particularly its standards in Building Information Modelling (BIM) and digital transformation, provides extremely valuable lessons for us," he said. "The year 2025 marked important milestones as Hanoi’s new urban rail lines began transitioning from vision to construction. During this transformative phase, we warmly welcome the participation of UK companies – global leaders in railway engineering, financial advisory services, and TOD planning.”

As Vietnam strives to become a high-income country by 2045, its two major economic hubs – Hanoi and Ho Chi Minh City – are prioritising improvements in sustainable infrastructure and urban connectivity. The development of national and urban railway networks in major cities is being accelerated to support sustainable urban growth. The application of TOD and BIM plays a critical role in integrated transport and urban planning, helping to build modern infrastructure, improve the quality of life, and enhance public transport accessibility in Vietnam.

The visit of Matt Western MP and the UK rail business delegation underscores the UK’s commitment to being a trusted partner in the development of railway, TOD and BIM projects in Vietnam, while further strengthening UK–Vietnam cooperation in this sector. This aligns with the UK–Vietnam Comprehensive Strategic Partnership signed in October 2025 and the UK–Vietnam Action Plan for 2024–2026.

-Ngoc Lan

This represents a 32% increase in the number of businesses and a staggering 235% surge in capital compared to the previous year.

For the first time in a single year, Hue city in central Vietnam has seen more than 1,000 new businesses established in 2025, with a total registered capital of over VND12.8 trillion (nearly $490,000), representing a 32% increase in the number of businesses and a staggering 235% surge in capital compared to the previous year, according to the city's Business Association.

This milestone serves as a vital catalyst for economic growth and the expansion of production and business operations across the region.

This is the first time the number of newly established businesses in the central city has surpassed the 1,000-mark, reflecting the business community's growing confidence in the city’s investment and business environment. To date, there are approximately 6,700 active enterprises operating throughout the city.

In addition to the rise in the number of businesses, key economic indicators continue to show positive results. Hue City has maintained its position in the national Top 10 for provincial competitiveness index for four consecutive years. In 2025, 13 out of 14 major targets were met or exceeded, highlighting the effectiveness of local governance, administrative reforms, and business support initiatives.

The city's 2025 Gross Regional Domestic Product (GRDP) growth reached 8.5%, ranking 12th out of 34 provinces and centrally-run cities nationwide and 2nd among the five localities in the North Central region.

Throughout 2025, Hue City granted licenses to 44 new projects and approved adjustments for 23 existing projects, with a total registered capital of nearly VND32 trillion. This includes 10 foreign direct investment (FDI) projects with a registered capital of $36.3 million.

According to Mr. Tran Huu Thuy Giang, Vice Chairman of the Hue City People’s Committee, the city is encouraging the rapid development of medium-sized enterprises while gradually fostering large-scale businesses to take a leading role. The city also aims to support businesses in brand building to establish prestige in both domestic and international markets, while promoting investment in sectors and regions that hold unique potential and competitive advantages.

Vneconomy-Nguyễn Thuấn

The province will invest over VND141.5 billion (nearly $5 million) to build five resettlement areas in the communes of My Ly, Nhon Mai, and Muong Tip.

In response to the urgent housing needs of residents following storms as well as devastating flash floods in 2025, the Nghe An Provincial People’s Committee has issued an emergency construction order.

The province will invest over VND141.5 billion (nearly $5 million) to build five resettlement areas in the communes of My Ly, Nhon Mai, and Muong Tip.

According to the provincial decision, these projects aim to provide stable housing for families who completely lost their homes or are currently living in high-risk zones.

In My Ly Commune, the local government will develop a 15-hectare resettlement area in Xieng Tam village. This site will accommodate 98 households.

Also in My Ly, a 10-hectare zone in Xang Tren village will be built to house 82 families severely affected by the storms and floods.

In Nhon Mai Commune, a centralized resettlement area will be established in Na Hy village. Spanning approximately 8 ha, the project will ensure safety for 16 households from Pha Mut village, an area currently identified as being at high risk for landslides.

In Muong Tip Commune, the province is investing in two separate projects. The first, catering to the Xop Tip and Xop Phong village clusters, covers 1.7 ha and will house 23 families. The second project in Ta Do village will be built on 3 ha of land for 21 households. 

Funding will be mobilized from the provincial budget—including contingency funds, land use fees, and budget savings—alongside support from the central government and other legal financial sources.

Vneconomy-Nguyễn Thuấn

The central city expressed its desire for continued technical and financial assistance from the Luxembourg Government to enrich the local ecosystem, enhance biodiversity, and promote sustainable livelihoods.

Hue city in central Vietnam is currently focusing on developing a unique "heritage city" oriented toward sustainability, integrating heritage conservation and restoration with green growth and digital transformation.

This was highlighted by Deputy Chairman of the Hue City People’s Committee Hoang Hai Minh during a meeting with a delegation from the Lao People’s Democratic Republic and representatives from the Luxembourg Agency for Development Cooperation (LuxDev).

The delegation was co-led by Ms. Phonevanh Outhavong, Vice Minister of Finance of Laos, and Mr. Robert de Waha, LuxDev's Resident Representative for Laos, Vietnam, and Cambodia.

According to Mr. Minh, previous support projects in agricultural production and infrastructure have yielded tangible results, significantly improving local livelihoods and contributing positively to the city’s socio-economic development.

However, Hue continues to face significant challenges due to the impacts of climate change and extreme weather events.

In light of these realities, Hue expressed its desire for continued technical and financial assistance from the Luxembourg Government to enrich the local ecosystem, enhance biodiversity, and promote sustainable livelihoods.

He also shared insights gained from a recent working trip to Luxembourg, particularly regarding the "climate finance ecosystem" and financial instruments designed for climate change adaptation. These experiences are expected to open new approaches for the city’s socio-economic development planning.

Furthermore, Hue is step-by-step leveraging its cultural, ecological, and agricultural resources to develop community-based tourism, ecotourism, and agritourism models.

During the meeting, Ms. Outhavong noted that Hue shares many similarities with urban areas in Laos regarding its development process, particularly in its focus on sustainable development, enhancing governance capacity, and building smart cities.

She emphasized that the Lao Ministry of Finance highly values Hue’s achievements in sustainable and smart urban development. Through collaborative activities and knowledge exchange, both sides can learn from one another to gradually improve governance efficiency, public finance management, and modern urban development in line with the current global context.

Providing further information, Mr. Robert de Waha stated that building on the positive results of previous cooperation, the Luxembourg Government is currently supporting Hue in implementing two projects with a total funding value of approximately $12 million.

Specifically, Project VIE/039 focuses on promoting climate-smart agriculture and enhancing access to finance for farming households and small businesses, with a particular emphasis on women and vulnerable groups. Meanwhile, Project VIE/301 is being implemented to scale up and replicate the successful models established under Project VIE/039.

Vneconomy-Nguyễn Thuấn

The National Assembly targeting 10% GDP growth for 2026.

Prime Minister Pham Minh Chinh on January 24 signed an urgent dispatch outlining key tasks and solutions to drive economic growth in 2026.

To effectively implement the 2026 socio-economic development plan, the Prime Minister called on ministries, agencies, local authorities, and State-owned corporations to strictly and urgently carry out the Government’s assigned measures.

The Ministry of Finance was tasked with continuing policies on tax reductions and extensions, as well as land rental fee adjustments, to support people and businesses, particularly small and medium-sized enterprises.

The Prime Minister also called for stronger efforts to develop the stock market and corporate bond market in a stable, safe, and transparent manner, with the aim of gradually transforming them into effective channels for mobilising medium- and long-term capital to support high growth targets in the coming years.

Meanwhile, the State Bank of Vietnam (SBV) was directed to implement a proactive, flexible, timely, and effective monetary policy, closely aligned with an appropriately expansionary fiscal policy and other macroeconomic measures. Monetary instruments—particularly exchange rates, interest rates, and credit—must be managed flexibly to ensure the safe and stable operation of the monetary and banking systems, thereby supporting production, trade, job creation, and investment attraction.

The Prime Minister also instructed the SBV to urgently propose the establishment of a national gold exchange and submit the plan to standing members of the Government in January.

He emphasized the need to strengthen traditional growth drivers,  with investment as a central pillar. Ministries, sectors, and localities were ordered to finalise the 2026 public investment plan promptly, accelerate disbursement from the start of the year, and strive for a 100% disbursement rate of the allocated capital.

On the export front, the Prime Minister called for intensified trade promotion, market diversification, and more effective use of signed free trade agreements, while expanding into new markets. He also urged concerted efforts to secure the removal of the European Commission’s “yellow card” warning on illegal, unreported, and unregulated (IUU) fishing by April 2026.

The National Assembly targeted 10% GDP growth for 2026.

VnEconomy-Lý Hà