Vietnam News
How real-world asset tokenization could evolve in Vietnam?
Mr. Jack Nguyen, Founder and Managing Partner of BlockBase Ventures
The tokenization of real-world assets should not be viewed merely as a new “digital asset class” but rather as financial infrastructure that enables markets to operate with greater transparency, efficiency, and scalability.
In Vietnam, capital demand for traditional assets such as real estate, infrastructure, energy, manufacturing, and private credit is substantial, while existing capital channels remain limited, particularly for mid-sized and long-term projects. In this context, tokenization, if implemented properly, can help address capital fragmentation and expand access to investors, not only domestically but also internationally. Sectors considered most suitable for early-stage tokenization include income-generating real estate such as industrial parks, logistics, and infrastructure; private credit and supply chain finance, where capital demand is high but efficient funding channels are lacking; and green finance and energy infrastructure, aligned with environmental, social, and governance (ESG) standards and the preferences of international investors.
However, it must be emphasized that tokens do not create new value on their own. They are merely tools for packaging, standardizing, and distributing ownership rights more efficiently. If the underlying assets are of poor quality, the legal framework is unclear, or cash flows are unsustainable, tokenization will not improve value and may even accelerate the spread of risk.
In my view, safe tokenization must prioritize legal standards and asset structuring, rather than technology alone.
First, the underlying assets need to be placed within a transparent legal structure, such as a special purpose vehicle (SPV) - a company established specifically to hold and manage the assets - or licensed trust funds or investment funds. In such cases, tokens represent lawful ownership rights or economic benefits, rather than merely conceptual digital assets.
Second, it is essential to clearly distinguish that tokenization is the digitization of ownership rights and does not equate to unrestricted trading on unregulated secondary markets. The transfer of tokens must still comply with regulations on qualified investor classification, identity verification, anti-money laundering, transaction limits, and disclosure obligations, similar to the standards of traditional financial markets.
Third, blockchain should be used as a record-keeping and reconciliation layer to enhance transparency and reduce operational risk; it cannot replace the role of the law, regulators, or financial intermediaries.
Tokenization can create new opportunities, but it also carries risks related to artificial liquidity and financial leverage. This is a very real concern, especially for developing markets like Vietnam. Tokenization may create a perception of “high liquidity” but, in reality, liquidity is only sustainable when supported by real cash flows and genuine demand.
For investment funds, a tokenization approach must be grounded in traditional risk management thinking. The focus should remain on assessing assets based on cash flows, resilience across cycles, and downside scenarios; tightly controlling financial leverage, especially for assets that are already highly cyclical; and maintaining transparency with investors regarding holding periods, exit possibilities, and liquidity-related risks. For these reasons, over the next three to five years, I do not expect tokenization to experience a widespread boom. Instead, it is likely to develop in a selective and controlled manner, closely tied to regulatory sandboxes and reputable financial institutions.
Mr. Richard D. McClellan, Vice Chairman of the Advisory Council of the Vietnam International Financial Center in Da Nang
Asset tokenization is not a standalone product, but a supporting capability within a broader financial ecosystem. For Da Nang, the value of tokenization lies in its development orientation towards innovation, digital finance, and controlled pilot mechanisms.
If implemented properly, tokenization can improve the efficiency of asset issuance, enhance transparency, and improve liquidity in secondary markets. However, this is only feasible when it is embedded within a credible legal framework, supervisory regime, and market infrastructure. The real opportunity is not in branding Da Nang as a “token hub” but in positioning the city as a place to responsibly pilot new financial models that can later be scaled nationwide if successful.
As to whether asset tokenization can become a strategic competitive advantage for Vietnam’s International Financial Center (IFC), the answer is “yes” but only in a highly selective manner. Tokenization itself is not a competitive advantage; institutional trust is the decisive factor. Tokenization can only differentiate Vietnam if it is integrated early into an IFC framework grounded in clear rules, with transparent principles for investor protection, property rights, and dispute resolution mechanisms. If done well, tokenization can complement traditional finance rather than compete with or replace it. Conversely, if rolled out indiscriminately or without adequate oversight, it risks being perceived as speculative activity rather than a long-term strategy. In this context, the sequencing of implementation matters more than the technology itself.
At the current stage, I believe Vietnam’s priority in asset tokenization should be controlled experimentation - narrow in scope, closely supervised, and with clearly-defined exit criteria. The objective is not speed, but trust: trust from regulators, investors, and international partners that innovation is being pursued cautiously and responsibly.
Within this broader picture, the role of the State should be to “enable with discipline.” This requires establishing clear rules of the game, enforcing them consistently, and allowing the market to innovate within those boundaries. Overly permissive mechanisms can erode trust, while excessively tight regulations may cause capital and innovation to migrate elsewhere. The IFC model is designed precisely to find the balance between these two extremes.
From my experience advising policymakers in many emerging economies, the most important lesson is that tokenization should not be viewed as a shortcut to capital mobilization. Markets allocate trust and capital based on credibility and institutional foundations, not on short-lived novelty. Countries that succeed are those that know how to link technological innovation with a strong legal system, effective supervision, and international standards, even if that means accepting slower progress in the early stages.
Mr. Nguyen Minh Tuan, Head of the Vietnam Digital Asset Investors Community (VIDA)
First, it is important to correctly understand the nature of real-world asset tokenization. At its core, tokenization is the certification of participation or ownership rights in an asset by breaking that asset into smaller units. A familiar example already exists in traditional finance: when investors participate in equity funds, they do not directly hold shares but instead own fund certificates - a form of tokenization that has existed for decades. In this sense, tokenization is essentially the standardization and fragmentation of investment rights, allowing more investors to participate with smaller capital amounts.
What makes tokenization different today is blockchain technology, which enables this process to be faster, cheaper, more efficient, and scalable. Thanks to blockchain, tokenization is no longer limited to equities or corporate bonds, but can be extended to government bonds, real estate, and other real-world assets. Blockchain allows ownership rights to be flexibly divided while supporting transparent, tamper-resistant tracking and verification of asset information. This creates an important opportunity for Vietnam’s financial market to deepen, diversify, and reach a broader investor base.
However, these opportunities come with significant risks and challenges, particularly on the legal side. When assets are fragmented and ownership rights are represented by tokens, critical questions arise: how legal ownership is established, how ownership is transferred, and who is responsible for protecting investors’ interests. A useful comparison is the fund certificate model, where investors own certificates while fund management companies hold the underlying assets. These two layers are clearly separated and protected by law, supported by custodian and supervisory banks that oversee assets and cash flows. Real-world asset tokenization requires a similar legal structure to clearly distinguish between token ownership and ownership of the underlying asset, and to safeguard the rights of token holders.
Globally, real-world asset tokenization is developing rapidly. Blockchain allows assets to be fragmented while remaining transparently controlled on decentralized systems where data is nearly immutable. The growing volume of tokenized assets traded worldwide shows that tokenization is no longer just a technological trend and is becoming a structural component of modern financial markets.
In Vietnam, over the next three years, the development potential for real-world asset tokenization is quite clear. On the legal front, Vietnam has begun to make initial progress, while on the technology side, national-level blockchain platforms are being developed. With appropriate regulatory and supervisory mechanisms, Vietnam can pilot and gradually introduce tokenized asset trading in the years to come.
A key concern for investors is whether tokenization increases the risk of fraud. In reality, investment risk always exists, especially when token ownership and ownership of the underlying asset are separate layers. Without strict oversight, tokens may be issued without being properly backed by real assets. In traditional finance, this risk is mitigated through custodian and supervisory banks that ensure assets and cash flows are properly managed. Tokenized real-world assets require similar custodial and supervisory mechanisms to confirm that assets are securely held and cash flows are properly controlled. Without these safeguards, investor risk is extremely high.
Compared with traditional markets such as land, equities, or bonds, tokenization offers several notable differences. Beyond fragmenting physical assets, blockchain also enables the tokenization of intangible assets such as artworks, intellectual property, and other rights. Tokenized markets operate online, run 24/7, and have lower transaction costs, improving efficiency and liquidity. At the same time, this expanded scope places higher demands on regulation and supervision.
One of Vietnam’s biggest challenges today is that public understanding of tokenization and digital assets remains limited. It is essential to emphasize that financial investment always involves risk and the possibility of capital loss. Therefore, the most important investment every investor must make is an investment in knowledge.
VIDA was established on January 15 to create a platform for connection, knowledge sharing, and the standardization of investor behavior as the market prepares for formal operation. It focuses on three core segments: decentralized finance (DeFi), tokenized real-world assets, and stablecoins.
Ultimately, investors need to clearly understand digital assets, investment products, and the nature of the transactions they participate in. Similar to the stock market, investors who understand businesses and select the right assets during economic growth cycles can benefit. Conversely, treating investment as gambling or acting without sufficient knowledge almost inevitably leads to losses. Strengthening investor education, connecting with international experience, and building a knowledgeable investment community are therefore critical foundations for the sustainable development of Vietnam’s digital asset market and broader financial system.
Mr. Jeffrey Tchui, Executive Director of Web3 Harbour (Hong Kong (China))
Asset tokenization can bring multiple opportunities to Vietnam’s financial market.
First, it can expand access to high-value assets. Tokenizing real estate, infrastructure, or private credit allows investment value to be fractionalized, thereby broadening participation. This is broadly consistent with pilot models I have supported across the Asia-Pacific region, where policymakers place high value on platforms with stable transaction fees, transparent governance, and innovation that does not cause disruption or create conditions for speculation or market manipulation.
Second, tokenization can help create liquidity for structurally-illiquid sectors. Real estate and the small and medium-sized enterprises (SME) sector in Vietnam are consistently “capital-hungry” yet suffer from structural illiquidity. Tokenization can open the door to compliant secondary markets that are regulator-friendly.
Third, it can attract foreign capital through trusted infrastructure. Vietnam’s public sector has repeatedly emphasized the need to build highly-reliable financial services infrastructure. A public network with enterprise-grade governance can meet the expectations of institutional investors while still encouraging open innovation at International Financial Centers.
Fourth, tokenization can enhance operational efficiency and market transparency. Hedera’s consensus services and token services, which are compliant with OFAC (Office of Foreign Assets Control) requirements from the US, enable real-time auditing and immutable data storage. These features align well with the Vietnamese regulator’s approach to supervising tokenized markets without increasing systemic risk.
Fifth, tokenization can open new capital-raising channels for SMEs and green / ESG (environmental, social, and governance) projects. I consistently emphasize the role of tokenization in supporting Vietnam’s sustainable development goals and SME financing needs.
However, it is important to note that in an environment where investor trust remains fragile, asset tokenization can amplify market psychology risks, especially in a market where retail investors are still sensitive to geopolitical factors and are in a relatively early stage of maturity. Tokenization can accelerate both information flows and the spread of sentiment. Without appropriate “safety rails,” several risks may emerge: retail investors may mistake tokenization for “risk-free innovation,” easily follow Key Opinion Leader (KOL)-driven hype or copy trading; complex products may be wrongly sold under the banner of digital transformation; and association with large brands, financial institutions, or banks may lead investors to lower their guard in a market that is not yet fully mature.
In particular, rumors or inconsistent policy changes can trigger “herd” sell-offs. A lack of clarity in regulatory messaging will erode trust. That is why, in my work in Vietnam, I consistently stress that infrastructure and human capital development, along with market education, are critical foundations and cannot lag behind product development.
In my view, tokenization should not be positioned as a “crypto experiment” but as a tool to support capital mobilization for SMEs, State-owned enterprises, and cross-border financing. In addition, tokenization can serve as an investment channel for green projects and infrastructure, combined with new payment methods such as stablecoins or central bank digital currencies. This is how institutional capital can be attracted from international markets. More importantly, tokenization represents a modernization of market infrastructure, enabling more transparent and efficient clearing and settlement processes.
Mr. Tran Dinh Nha, Founder and CEO of Varmeta
Vietnam is a “controlled acceleration” market for real-world asset tokenization. Regulators have clearly demonstrated openness towards tokenization, but only within a framework that is transparent, tightly governed, closely supervised, and clearly separated from the existing core financial infrastructure.
In the short term, the greatest opportunity lies in partnering with domestic issuers and with platforms that are expected to be licensed in the future to design real-world asset products aligned with pilot models. These products should have clearly defined underlying collateral, target foreign investors, and be built to institutional-grade compliance standards. Initial deployment should take place within International Financial Centers and regulatory sandboxes, before being gradually expanded to the domestic market.
From an opportunity perspective, I believe Vietnam is in a favorable position because it is building its tokenization framework from the ground up. This allows the country to avoid fragmentation caused by legacy systems and to design interoperable, data-rich infrastructure from Day 1; something that many developed markets are currently struggling to achieve.
This advantage enables Vietnam to integrate leverage visibility directly into the infrastructure itself, such as requiring on-chain registration of collateral assets, standardizing reporting of related obligations, and allowing regulators to access real-time supervisory data from intermediaries.
By positioning International Financial Centers as strategic sandboxes and, in the early stages, limiting real-world asset products to foreign investors under strict regulations, Vietnam can test and refine institutional-grade structures without exposing domestic retail investors to the risks of “first versions.” We are ready to accompany this process by designing products that meet global investor expectations while remaining fully aligned with Vietnam’s regulatory conditions.
We do not view tokenization merely as a feature or a technical wrapper. At Varmeta, we see it as a new foundational infrastructure for financial markets, a “pipeline layer” capable of supporting the entire value chain, from primary issuance and secondary trading to collateral management, reporting, and supervision.
If tokenization was to be viewed only as a technological innovation, the discussion would center on digitizing ownership rights, using smart contracts, and improving settlement and reconciliation. But if it was to be understood as a restructuring of market infrastructure, the focus would shift to deeper questions: how assets can be issued, held, and transferred faster and at lower cost; how rights and obligations can be enforced with higher levels of control and security; how regulators can observe and supervise risks in real time to protect investors through prevention rather than post-incident remediation; and how investors can access better products with higher liquidity, 24/7 availability, and fewer intermediaries.
VET-
Vietnam International Furniture and Home Accessories Fair set to open in HCM City in March
The 17th Vietnam International Furniture and Home Accessories Fair (VIFA Expo 2026) is scheduled to take place in Ho Chi Minh City from March 8 to 11, organisers announced at a press briefing on February 27.
Nearly 650 enterprises from 14 provinces and cities across Viet Nam, and from 18 countries and territories globally, have registered to participate. Exhibitors will showcase their products across 2,500 booths spanning a total exhibition area of 45,000 square metres.
More than 3,000 importers and buyers from 80 countries have confirmed their attendance, said Mr. Dang Quoc Hung, General Director of Alliance Handicraft Wooden Fine Art Corporation (Liên Minh Company), one of the event’s organisers, as quoted by the Vietnam News Agency.
Organisers are placing special emphasis on attracting buyers from non-traditional markets, including the Middle East, India, China, South America and Africa, in a bid to help Vietnamese enterprises diversify export destinations and expand their global footprint.
In addition to product displays, the fair will feature industry seminars, factory tours, a business luncheon and the VIFA Expo Online Exhibition platform. These activities aim to provide participants with updated market insights, facilitate networking and enhance trade promotion effectiveness.
VNA-Van Nguyen
Output growth accelerates to 19-month high in February
The Vietnamese manufacturing sector saw improved growth momentum during February, according to a report released by SP Global on the morning of March 2.
Production increased at the fastest pace in over a year-and a-half amid a sharper increase in new orders. Stronger rises in both employment and purchasing activity were also recorded, while business confidence hit a 41-month high.
Improved demand for inputs led suppliers to hike their charges, resulting in a sharp increase in manufacturers' input costs. In turn, selling price inflation remained marked. Meanwhile, suppliers' delivery times lengthened amid some reports of customs delays for imported items.
The SP Global Vietnam Manufacturing Purchasing Managers' Index (PMI) rose to 54.3 in February, up from 52.5 in January and reaching a four-month high.
The PMI signalled a solid monthly improvement in the health of the sector, extending the current sequence of strengthening business conditions to eight months. Manufacturing production increased rapidly in February, with the rate of expansion quickening to a 19-month high. Panellists reported that the preparation of products ahead of delivery to clients and stronger customer demand were behind the latest rise in output.
VnEconomy-Huyền Vy
Vietnam strives to improve national credit rating
Vietnam is stepping up efforts to improve its national credit rating, aiming for a two-notch upgrade to Baa3 on the Moody’s Rating scale, Minister of Finance Nguyen Van Thang has said.
Speaking at a recent working session with Moody’s Ratings President Michael West, Minister Thang noted that the Vietnamese Government issued a decree on credit rating services in 2024. To date, five enterprises have been licensed to operate in this field.
The minister was quoted by the Government News as saying that the Finance Ministry is strongly promoting the role of fiscal policy, particularly through the development of the capital market, including both the stock and bond segments.
Regulations governing corporate bond issuance — covering public offerings and private placements — are being refined in line with international practices. The changes are intended to create favourable conditions for financially sound enterprises with viable projects to mobilise medium- and long-term capital.
Regarding the stock market, Mr. Thang highlighted that in September 2025, FTSE Russell upgraded Vietnam's stock market from a frontier market to Secondary Emerging Market status, to be effective on September 21, 2026.
Market capitalisation is projected to reach at least 100% of GDP this year. In the first two months alone, total market capitalisation rose by nearly 5%, reaching more than 84% of GDP — a sign of positive momentum, he said.
For his part, Mr. West expressed confidence in Vietnam’s long-term growth prospects, citing its strong GDP growth, solid external position, export competitiveness and stable foreign direct investment inflows.
Members of the Moody’s delegation also acknowledged the country’s ample fiscal space, sound debt repayment capacity and the Government’s robust reform agenda. These reforms, they noted, are expected to enhance institutional quality and strengthen the foundations of Vietnam’s credit profile.
Moody’s committed to continuing its support for the development of Vietnam’s domestic capital and debt markets. The agency will assist in refining infrastructure bond rating methodologies, building a Second Party Opinion (SPO) framework for sustainable bonds in line with the country’s green taxonomy and international standards, and expanding training programs, workshops and the sharing of global best practices.
VGP-Van Nguyen
Government’s public debt plan for 2026 unveiled
The Government will borrow nearly VND969.8 trillion ($38.5 billion) in 2026, according to its latest debt plan unveiled on February 28.
The figure includes VND583.7 trillion for central budget to cover deficits, and over VND376 trillion for repayment of debts.
The Government was quoted by the Government News as saying that it will mobilize the funding through issuance of Government bonds, international bonds, official development assistance and concessional loans, and other lawful resources.
Meanwhile, local governments shall be allowed to borrow more than VND26 trillion and use nearly VND4 trillion to repay their debts this year.
The Government requests ministries, agencies and localities to speed up disbursement of public investment capital in a bid to raise the efficiency of State funding.
It also urges the Ministry of Finance to strictly control budget overspending at both central and local levels, formulate a project for issuance of international bonds and submit to competent authorities for consideration.
Public debt is forecast to reach 36-37 per cent of GDP by the end of 2026, while government debt will stand at 34-35 per cent of GDP and foreign debt is expected at 32-33 per cent of GDP.
VGP-Pham Long
PM calls for accelerated production, distribution and use of biofuels
Prime Minister Pham Minh Chinh has called for accelerating production, distribution and use of biofuels in a Directive issued on February 26.
The move is seen as a strategic step toward gradually replacing fossil fuels, strengthening energy security, and delivering on Vietnam’s commitment to achieve net-zero emissions by 2050.
The Government leader requested heads of relevant ministries, agencies and local authorities to promptly integrate targets for promoting biofuel consumption into upcoming sectoral strategies, master plans, projects and legal documents.
They were also tasked with reviewing and assessing the potential and effectiveness of emerging sectors related to biofuel development, production and consumption, while accelerating the rollout of programs, projects and pilot models linked to biofuels—particularly in transport, industry and agriculture.
The Prime Minister assigned the Ministry of Industry and Trade to take the lead, in coordination with other ministries and localities, in formulating a detailed roadmap for biofuel blending ratios with conventional fuels. The ministry is responsible for ensuring a stable supply of bio-petrol to meet domestic demand, encouraging enterprises to invest in infrastructure for biofuel production and distribution, and strengthening inspection and supervision in line with regulations.
It was also directed to promote domestic biofuel production to gradually secure self-reliance in the supply of E100.
In addition, the ministry must closely monitor domestic and international markets, analyse and forecast biofuel supply and demand trends to ensure stable provision and timely responses to consumption needs. Contingency plans are to be developed to address potential market fluctuations and minimise risks for consumers and businesses.
VnEconomy-Vũ Khuê
Strategic directions for wood and wooden product exports
Data from Vietnam Customs show that Vietnam’s exports of wood and wooden products in 2025 reached $18.5 billion, up 6.6 per cent year-on-year, marking the first year the industry surpassed $17 billion in exports and pushing its trade surplus to nearly $14.9 billion.
Major milestone
Wooden furniture exports totaled $10.25 billion, accounting for nearly 60 per cent of the industry’s total export value and continuing to serve as the main export pillar.
Several other product categories also posted export revenue of $1 billion or more, including wood chips, with $2.42 billion; timber, boards, and flooring $2.2 billion; and wooden pellets $1.18 billion.
In terms of markets, the US remained the largest export destination, with shipments valued at $9.46 billion, up 4.4 per cent year-on-year and accounting for 55 per cent of the industry’s total export turnover.
Despite facing reciprocal tariff pressure since the third quarter of 2025 and a 25 per cent duty imposed on kitchen cabinets and upholstered furniture from October, Vietnamese enterprises maintained their position as the largest furniture suppliers to the US market. This underscores the industry’s efforts to weather strong headwinds.
One notable bright spot was Japan, which recorded impressive growth of more than 23 per cent, reaching $2.153 billion and becoming Vietnam’s second-largest export market. China ranked third, with $2.086 billion.
As a result, the three “billion-dollar” markets - the US, Japan, and China - accounted for nearly 80 per cent of Vietnam’s total exports of wood and wooden products in 2025. Other markets were significantly smaller, including South Korea, with $709 million, Canada $288 million, and the UK $244 million.
Supply chain transparency
Vietnam’s exports of wood and wooden products to the US in recent years have not only been subject to reciprocal tariffs but have also faced a series of anti-dumping and countervailing duties as well as national security investigations under Section 232 of the US Trade Expansion Act. These measures currently focus on plywood and furniture and could extend to other products if Vietnam fails to demonstrate the legality and transparency of its timber sources.
The main reason many markets have erected “barriers” against Vietnamese wooden products lies in concerns over dumping, tariff circumvention, and a lack of transparency in supply chains. In this context, traceability and the legal management of forest resources have become mandatory requirements for maintaining and expanding export markets.
Under mounting pressure, the Ministry of Agriculture and Environment is studying the development of a coding system for the nationwide plantation forest area, scheduled for implementation from 2026. Deputy Minister of Agriculture and Environment Nguyen Quoc Tri said the system would provide a basis for proving the legality of raw timber and enhance the forestry sector’s management capacity.
Alongside policy efforts, digital technologies are also being applied to support timber traceability. The WoodID application can currently identify more than 260 wood species with a high degree of accuracy, helping officials and businesses with inspections and declarations.
Commenting on the policy, a representative from the World Wide Fund for Nature (WWF) Vietnam noted that once the system operates in a synchronized manner, Vietnam will be able to clearly demonstrate the legal origin of its timber, thereby increasing its access to high-end markets.
Ms. Ashley Amidon, Executive Director of the International Wood Products Association (IWPA), said that while US consumers primarily focus on price, regulators place particular emphasis on timber origin and material transparency. Vietnam’s large trade surplus in the wood sector has prompted the US to step up investigations under various mechanisms.
She added that building a plantation forest coding system and enhancing supply chain transparency would not only help Vietnam’s wood industry overcome current trade barriers but also prepare it to meet new regulations such as the EU Deforestation Regulation (EUDR) and to effectively implement agreements including the Voluntary Partnership Agreement (VPA) with the EU and timber cooperation arrangements with the US.
Three strategic directions
According to Mr. Nguyen Quoc Khanh, Chairman of the Vietnam Timber and Forest Product Association (VIFOREST) for the 2025-2030 period and Chairman of the Board of the AA Architecture Construction JSC, over the past two decades, starting almost from zero, Vietnam’s wood industry has authored a proud story on the global export map. This achievement is the result of a sustainable forestry governance foundation built by the government, supported by international organizations, and driven by more than 6,000 enterprises nationwide that have worked tirelessly to build and grow the industry.
Today, Vietnam’s wood sector stands at a new stage, one of major challenges but also of significant opportunities if they are seized effectively. According to Mr. Khanh, Vietnamese enterprises are currently facing three major challenges.
First, market instability. The US, the industry’s key, traditional market, is applying inconsistent tariff policies, while the EU market continues to struggle with economic slowdown. Japan and South Korea remain relatively stable, but their scale is still limited and insufficient to offset declines in traditional markets. Meanwhile, emerging markets such as the Middle East, Australia, New Zealand, Latin America, Southeast Asia, and Africa offer new opportunities but also pose risks related to payments, logistics, and legal frameworks.
Second, competitive pressure from foreign-invested enterprises. These players enjoy significant advantages in technology, capital, management capability, and long-established international market networks, creating an urgent need for Vietnamese enterprises to accelerate improvements in productivity, quality, and governance.
Third, internal constraints. The prevailing development model remains heavily reliant on processing, as Original Equipment Manufacturers (OEM), with low productivity due to limited RD and insufficient investment in technological innovation. Products, markets, and segments also lack diversification, while labor attraction is declining compared to other industries as the country enters a new growth phase.
In light of these challenges, Mr. Khanh said it is time for the wood industry to build a new internal foundation: green production, modern technology, advanced governance, and high productivity.
To achieve the $25 billion export target by 2030, the industry as a whole, and the Association in particular, need to focus on three clear directions.
First, enhancing competitiveness through a tightly linked ecosystem. This includes building a complete, strong, and self-reliant supply chain; improving production capacity; providing systematic training; updating international information; investing heavily in technological innovation and green production; and strengthening links between domestic and international associations.
Second, building a national Vietnamese wood furniture brand based on four pillars: green, quality, flexibility, and competitiveness. Specifically, the industry needs a transparent, inclusive, and internationally-standardized data system, and broader adoption of global standards.
Third, diversifying markets, products, and distribution channels while gaining deeper control of market opportunities. Vietnamese enterprises need a greater presence at major trade fairs, deeper connections with domestic and international partners, and the more effective use of Vietnam’s overseas trade offices. Domestically, specialized trade fairs should be upgraded to position Vietnam as a global destination for international buyers.
VET-Chu Khoi
Science and technology, innovation and digital transformation's contribution to GDP expected at 17.5%
Vietnam has set a target to increase the contribution of science and technology, innovation and digital transformation to the national GDP to 17.5% as part of a 2026 action plan signed by Prime Minister Pham Minh Chinh, head of the Government Steering Committee on science and technology development, innovation, digital transformation and Project 06.
The plan also targets the digital economy’s share of GDP at 14.5% in 2026.
In terms of digital infrastructure and data platforms, 5G coverage is expected to reach 70% of the population nationwide.
The Government aims to increase by 30% the number of innovative startups operating in science and technology, innovation and digital transformation.
At least 30–50 new spin-off enterprises are expected to be established from university and research institute outcomes in 2026, with Hanoi accounting for at least 20 of them.
In the field of science, technology and innovation, the Government aims to successfully commercialize at least five products listed in the national portfolio of strategic technologies, including semiconductor chips, 5G network equipment, industrial robots, artificial intelligence and unmanned aerial vehicles (UAVs).
At least 15% of state budget expenditure for science will be allocated to research and development of strategic technologies.
VnEconomy-Hạ Chi
Quang Tri outlines three economic corridors and seven growth poles
The 8th Quang Tri Provincial People's Council (2021-2026 term) recently passed a Resolution on adjusting the Provincial Master Plan for the 2021-2030 period, with a vision toward 2050.
Under the approved plan, by 2030, Quang Tri strives for rapid and sustainable development, building a dynamic economy alongside a safe, civilized, and happy living environment. The province aims to gradually assert its role as a key growth pole on the East-West Economic Corridor and within the Central region, contributing significantly to national development.
By 2050, the province envisions becoming a dynamic and sustainable economy primarily driven by industry and services. It aims to emerge as a new growth pole for the North Central region and one of the nation’s specialized hubs for energy, logistics, and tourism.
A key highlight of the plan is the orientation of spatial development toward a multi-centric model with close regional connectivity. Specifically, the province identifies three main economic corridors:
First, the North-South Economic Corridor is linked to the North-South Expressway, National Highway 1A, coastal roads, and the national railway, this will serve as the central driving axis.
Second, the Auxiliary Western North-South Economic Corridor is linked to the Ho Chi Minh Highway (West branch), focusing on the forest economy and renewable energy while ensuring national defense and security.
Third, the Trans-Asian East-West Economic Corridor features the Dong Ha – Lao Bao, Cha Lo, and La Lay – My Thuy axes. This corridor is designed to boost logistics, cargo transit, and international integration.
In tandem with these corridors, seven growth poles have been identified: Hon La – Ba Don – Quang Trach; Dong Hoi – Hoan Lao; Dong Ha – Quang Tri – Cam Lo; the Southeast Economic Zone; the Cha Lo International Border Gate Economic Zone; the Lao Bao International Border Gate Economic Zone; and the La Lay International Border Gate.
These growth poles will serve as the nuclei for economic, urban, and commercial development. They are expected to ensure a balanced distribution of development drivers across the North-South, coastal-mountainous, and urban-rural regions.
Vneconomy-Nguyễn Thuấn
$100 million electric motorcycle factory officially operational in Bac Ninh
Yadea Vietnam Science and Technology Co., Ltd., a subsidiary of the China-based YADEA Group, officially inaugurated its smart electric motorcycle manufacturing plant at Tan Hung Industrial Park in northern Vietnam's Bac Ninh Province on March 1.
The facility represents a phase 1 investment of over $100 million, with an initial production capacity of more than 1 million electric motorcycles per year, which is slated to scale up to approximately 2 million units annually.
Speaking at the event, Standing Vice Chairman of the Provincial People’s Committee, Mr. Mai Son, said that once the project is fully operational, it will not only contribute significantly to the provincial budget but also drive the formation of an electric vehicle (EV) industrial cluster and supporting industries, such as batteries, motors, and electronic components.
According to Mr. Son, Bac Ninh has identified modern, green, and sustainable industrial development as a core pillar of its long-term growth strategy. The province prioritizes attracting high-tech and environmentally friendly projects that offer high added value, strong spillover effects, and the potential to establish new manufacturing ecosystems.
Furthermore, Mr. Son expressed his hope that YADEA would continue to view Bac Ninh as a strategic hub within its global value chain. He encouraged the company to ramp up investment in research and development (RD), strengthen partnerships with domestic enterprises, gradually increase the localization rate, and build a comprehensive EV manufacturing ecosystem with international competitiveness.
Vneconomy-Nam Anh
Vietnam's aviation authority reviews flight plans over Middle East tensions
The Civil Aviation Authority of Vietnam (CAAV) on March 1 issued an urgent official dispatch to domestic and foreign airlines operating in Vietnam, the Vietnam Air Traffic Management Corporation (VATM), the Airports Corporation of Vietnam (ACV), international airports, and relevant agencies regarding the implementation of safety measures in response to escalating tensions in the Middle East.
The VATM has been directed to proactively develop air traffic control solutions, particularly for flights requiring schedule adjustments due to the conflict. It is responsible for providing accurate and timely information to airlines and relevant units to ensure safe flight operations.
The CAAV requested both domestic and foreign airlines with routes to, from, or through the affected regions to closely monitor and stay updated on the military conflict in the Middle East, with a specific focus on Iran and countries that have closed their airspace.
Airlines must proactively assess potential risks and the level of impact on international routes, especially the Europe-Asia corridors. At the same time, they are required to fully update safety warnings and information from international aviation authorities, as well as from IATA, ICAO, EASA, and other official sources.
Based on these assessments, carriers are expected to promptly adjust their operating plans and flight schemes, selecting safe alternative air routes to avoid closed or high-risk airspace and ensuring that aircraft do not transit through conflict zones.
The CAAV has also instructed airlines to provide prompt and comprehensive information to passengers regarding flight schedule changes caused by the military conflict. Carriers are required to strictly fulfill their legal obligations to passengers, providing support, updated flight schedules, and clear explanations to minimize inconvenience. Furthermore, airlines operating to and from Vietnam must report to and coordinate closely with the CAAV when adjusting their operational plans.
Currently, Vietnamese airlines do not operate direct routes to Iran or other Middle Eastern countries. While Vietnam Airlines operates several flights between Vietnam and Europe, the national carrier stated that these routes remain well away from the conflict zones.
A number of international carriers, such as Emirates and Qatar Airways, have to cancel flights from Vietnam to the Middle East. According to the CAAV, due to the impact of the military conflict and resulting airspace closures, two aircraft—one from Qatar Airways (QR) and one from Emirates (EK)—are currently grounded at Noi Bai International Airport, unable to return to their home bases.
Vneconomy-Thanh Thủy
Textile and garment industry in face of challenges
Speaking at the “Strategies for Developing Vietnam’s Textile and Garment Industry in a Fluctuating Environment” seminar, held recently, Mr. Vu Duc Giang, Chairman of the Vietnam Textile Apparel Association (VITAS), said 2025 marked a pivotal phase in the industry’s global economic integration, as its position and stature become more firmly established. Export turnover reached $46 billion, up an impressive 5 per cent against 2024 and reinforcing Vietnam’s place among the world’s Top 3 textile and garment exporters.
Challenges on all fronts
As the industry moves into 2026, Vietnam’s textile and garment sector faces not isolated difficulties but an interconnected ecosystem of challenges. According to Mr. Giang, the industry is being heavily affected by global economic uncertainty, rising trade protectionism, and increasingly-strict technical barriers from major markets such as the US and the EU. Requirements related to environmental protection, labor standards, and especially traceability are no longer recommendations but prerequisites for Vietnamese products to reach global retail shelves.
One of the most deep-rooted challenges lies in the “health” of domestic enterprises. Ms. Nguyen Hong Ha, Program Manager at Better Work Vietnam (BWV), noted that around 90 per cent of companies in the sector are micro, small, and medium-sized enterprises (MSMEs). With limited financial resources and poor risk management capabilities, this cohort has become the most vulnerable link in the supply chain as it confronts a “dual transition”: digitalization to boost productivity, and greening to meet sustainability standards. Rising logistics costs and compliance expenses related to green standards are forcing businesses to be cautious in their use of financial leverage and to prioritize long-term stability over short-term, rapid growth.
Human resources have also emerged as a critical bottleneck. Vietnam’s textile and garment workforce is aging, while attracting younger workers is becoming increasingly difficult. More concerning, around 80 per cent of current jobs remain low-skilled, and workers’ skill levels have seen little meaningful improvement since 2012. As competitiveness based on cheap labor fades, it is being replaced by demands for resilience and reliability in labor relations.
In addition, the sector faces significant challenges in implementing green commitments. Ms. Nguyen Thi Ngoc Minh, Lean Manager at Hanesbrands, said that while brands have made strong sustainability pledges, the journey from commitment to actual implementation at the factory level remains long and complex. Emission reduction solutions require substantial investment in green technologies and renewable energy, placing direct pressure on price competitiveness.
From a policy perspective, Dr. Tran Cong Chinh from the University of Economics Business at the Vietnam National University, Hanoi (VNU-UEB), highlighted barriers relating to recycling permits. Many companies wish to reuse wastewater but are constrained by regulations, as permits are tied to industrial parks. If an industrial park lacks this function, its member enterprises are also prohibited from implementing circular water treatment solutions.
Dual roadmap
Amid mounting pressure, digital transformation and the application of science and technology are widely seen as the keys to helping the textile and garment industry escape the “low-cost trap” and move up the value chain.
H.E. Kees van Baar, Ambassador of the Netherlands to Vietnam, emphasized the role of international cooperation in advancing sustainable transformation, recommending that the industry continue to accelerate technological innovation, supply chain transparency, and compliance with new European market standards. “Technology adoption in textiles should not be narrowly understood as replacing humans with robots, but rather as people leveraging AI to work smarter and make more accurate, data-driven decisions,” he said.
Mr. Jatin Paul, CEO of World Fashion Exchange, said that instead of spending hours or days manually entering hundreds of pages of data on designs and measurements, AI can read and process them in seconds. Notably, AI can also function as a living “knowledge library,” preserving a company’s production know-how even amid high workforce turnover, ensuring business continuity and smooth knowledge transfer. This is a crucial solution for helping enterprises respond more rapidly to the constantly changing demands of international brands.
Alongside digitalization, “greening” has become a matter of survival. Vietnam has set a net-zero target for 2050, and the textile and garment industry must be among the pioneers. Implementing green solutions cannot stop at audit reports but must penetrate actual production processes, including investments in renewable energy and advanced waste treatment technologies.
The circular economy model, built on five pillars - sustainable design, green production, waste management, product life extension, and supply chain management - is being actively promoted by organizations such as IDH. At model industrial parks like Bao Minh in northern Ninh Binh province, the application of Phase 2 wastewater treatment technology has reduced sludge by up to 55 per cent and chemical use by 35 per cent. This demonstrates that with the right vision and investment, technology can fundamentally address environmental challenges, transforming “waste” into “resources” through industrial symbiosis.
Mr. Wu Liang Jie, Chairman of Hikari Precise Machinery, said modernizing equipment and adopting smart sewing machines are critical solutions to boost productivity, cut costs, and improve product quality, enabling Vietnamese enterprises to better meet international brand requirements.
Unlocking breakthrough policies
To achieve the export target of $64.5 billion by 2030, equivalent to annual growth of 6.5-7 per cent, enterprise efforts alone will not suffice. A policy framework that is both enabling and grounded in reality is essential.
One of the most positive developments for the industry, according to Dr. Chinh, is the National Assembly’s passage of the amended Law on Value Added Tax, effective January 1, 2026. Under the new law, enterprises purchasing agricultural products such as cotton fiber and pandan leaves will no longer be required to declare the 5 per cent VAT previously applied, directly reducing input costs and encouraging the use of domestically-sourced organic materials. In addition, the removal of overly stringent VAT refund regulations is expected to free up significant financial resources for businesses.
However, Dr. Chinh argued that the concepts of waste and reusable materials need to be redefined. Currently, many types of fabric scraps are still classified as waste requiring disposal rather than as inputs for other industries. Regulations on recycling permits within industrial parks should also be relaxed to allow factories to implement circular water treatment without being constrained by outdated infrastructure rules.
Another key recommendation, put forward by Ms. Nguyen Thi Minh Thuy, Senior Program Manager at IDH, is the development of a sector-specific circular economy roadmap with clear guidance by industry level. At present, many enterprises, especially small ones, feel overwhelmed by the lack of a clear action framework. Establishing international standards and developing eco-labels for Vietnamese textile and garment products would serve as a powerful lever for enterprises to fully capitalize on free trade agreements. In parallel, public-private partnership (PPP) models should be strengthened to share the financial burden of investing in green technologies, where payback periods are often very long.
According to Ms. Thuy, the voices of enterprises need to be more substantively heard during the legislative process. VITAS should continue to persistently advocate for reforms related to the Law on Social Insurance, trade union fees, and administrative procedures, to improve the business environment.
VET-Vu Khue
PM urges cutting red tape for citizens and businesses
Prime Minister Pham Minh Chinh has called for a continued review and maximum reduction of administrative procedures to minimize inconvenience and compliance costs for citizens and businesses.
He made the statement while chairing the Government’s thematic meeting on law-making for February 2026 on February 27. The session was held to review and discuss five important draft laws and resolutions.
The five projects include: the draft Capital Law (amended); the draft Law on Civil Status (amended); the draft Law on Belief and Religion; the draft Law amending and supplementing several articles of the Law on Representative Missions of the Socialist Republic of Vietnam Abroad; and a draft Resolution of the National Assembly on coordination mechanisms and specific policies to improve the efficiency of prevention and resolution of international investment disputes.
In his opening remarks, the PM affirmed that institutions are both a driving force and a resource for development. He emphasized that institutions must "lead the way" to remove bottlenecks and address issues arising from practical realities. The resolutions of recent Party congresses have consistently identified building and perfecting institutions as one of the three strategic breakthroughs for rapid and sustainable national development.
Over the past period, the Government and the Prime Minister have placed a high priority on law-making, allocating resources and focusing leadership on resolving mechanism and policy hurdles to create favorable conditions for the public and businesses while promoting socio-economic growth.
PM Chinh noted that since the beginning of the current term, the Government has organized 41 thematic meetings on law-making. It has reviewed and commented on over 215 draft laws, ordinances, resolutions, and policy dossiers, and submitted 179 documents to the National Assembly for promulgation—more than double the amount during the 14th National Assembly's term. In 2025 alone, many legal "bottlenecks" were essentially cleared in the spirit of the Politburo's Resolution 66.
Concluding the meeting, the Prime Minister emphasized the requirement to continue streamlining administrative procedures. According to the Government leader, laws should only regulate fundamental principles; specific and detailed contents should be delegated to government decrees and ministerial circulars to ensure flexibility and adaptability to practical situations.
The Prime Minister noted that law-making must ensure the "5 Easies": easy to understand, easy to access, easy to implement, easy to inspect, and easy to supervise. Matters that are clear and proven effective by practice should be codified into law. For issues that are not yet "ripe" or clear, he suggested conducting pilot programs to learn and improve gradually, avoiding both perfectionism and haste.
The Government also requested drafting agencies to fully incorporate feedback from Government members, while seeking further input from experts, scientists, practitioners, and those directly affected by the laws. They should also reference international experiences suitable for Vietnam's specific conditions to finalize the drafts for submission to competent authorities.
According to the plan, at the first session of the 16th National Assembly, the Government expects to submit 34 sets of documents and dossiers, including 15 draft laws and resolutions covering difficult and complex issues with a broad impact on socio-economic life.
Vneconomy-Dũng Hiếu
Negotiations to finalize free trade agreement between Vietnam and EFTA stepped up
The 19th round of negotiations for a free trade agreement (FTA) between Vietnam and the European Free Trade Association (EFTA), which groups Switzerland, Norway, Iceland and Liechtenstein, took place in Geneva, from February 24 to 27, generating positive momentum as both sides demonstrate strong determination to reach a trade deal as soon as possible, according to a report by the Government News.
During the latest round, negotiators focused on resolving key outstanding issues. Both sides noted substantial progress in core chapters, including trade in goods and services, investment, intellectual property, sustainable development and government procurement.
In a bid to expedite the process, the two sides agreed not to introduce new matters into the negotiations and instead concentrate on flexibly addressing remaining differences. Technical teams are stepping up legal reviews and completing necessary procedures, aiming to conclude negotiations and possibly sign the agreement at the upcoming EFTA Ministerial Conference scheduled to take place in Iceland this June.
The EFTA side commended Vietnam's active engagement and its proposals on market access, while reiterating the bloc's strengths in fostering private sector investment and facilitating technology transfer.
Once finalized and signed, the Vietnam–EFTA FTA is expected to significantly enhance bilateral trade and investment flows, broaden cooperation with some of Europe's most advanced economies and make a meaningful contribution to resilient supply chains and sustainable economic growth.
Vietnam has joined a network of 17 free trade agreements involving 60 economies, covering most major global markets. Vietnam's FTA network can be grouped into three main categories: ASEAN-based agreements, new-generation FTAs and bilateral accords.
High-standard trade agreements include the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP), and the European Union–Vietnam Free Trade Agreement (EVFTA). These agreements connect Vietnam to major economies across Asia-Pacific, Europe and the Americas.
VGP-Pham Long
Vietnam deeply concerned over escalating conflict in Middle East
Vietnam expresses deep concern over escalating and complex conflict situation in the Middle East, which seriously threatens the lives and safety of its people, as well as peace and stability in the region and the world, the Government quoted the Vietnamese Foreign Ministry's Spokesperson Pham Thu Hang as stating on February 28 in response to reporters' query on Vietnam's reactions to current escalating tensions in the Middle East.
Vietnam calls on the relevant parties to exercise maximum restraint, immediately cease any actions that escalate tensions, protect civilians and essential infrastructures, and resolve differences through peaceful means in strict accordance with international law, the United Nations Charter and the relevant Resolutions of the United Nations, said the Spokesperson.
The relevant parties must respect sovereignty and territorial integrity of nations and create favorable conditions for peace negotiations to ensure security, safety, peace, and stability in the region, she added.
The same day, the Ministry of Foreign Affairs said Vietnamese people should not travel to Iran or Israel at this time, or to neighboring areas affected by the conflict unless absolutely necessary.
Vietnamese nationals currently in Iran, Israel, and conflict-affected neighboring areas need to maintain regular contact and closely monitor updates from Vietnamese representative missions in the two countries; strictly comply with local government regulations regarding travel and adhere to all safety warnings from the Ministry of Foreign Affairs.
VGP-Van Nguyen
Vietnam’s business landscape in 2025
Vietnam’s business landscape in 2025 was marked by a surge in newly-registered enterprises and large capital inflows but the “shakeot” was equally remarkable, forcing companies to rethink their strategies in order to survive as others fall by the wayside.
According to data from the National Statistics Office (NSO) at the Ministry of Finance, nearly 17,200 new enterprises were set up nationwide in December alone, for a striking 71.6 per cent increase year-on-year. This not only reflects efforts to complete annual business plans but also signals strong investor expectations for a new growth cycle in 2026.
Encouraging indicators
In 2025 as a whole, the total number of newly-registered enterprises reached 195,100, up 24.1 per cent against 2024. On average, around 16,300 new companies were created each month, injecting fresh energy into the labor market and production activities. Alongside this came a corresponding rise in registered capital, totaling VND1,919 trillion ($73.8 billion), and employment, with more than 1.15 million jobs added.
Notably, it was not only new enterprises that contributed to the vibrancy of Vietnam’s business landscape last year. The revival of many companies that temporarily suspended operations also played an important role, with 102,300 such companies resuming operations, up 34.3 per cent against 2024 and bringing their total number to 297,500. This record figure underscores the resilience and adaptability of Vietnam’s business community in the face of economic headwinds.
According to Ms. Phi Thi Huong Nga, Head of the Industry and Construction Statistics Department at the NSO, the return of temporarily inactive companies suggests that constraints related to capital, markets, and the legal framework have been at least partially eased, creating more favorable conditions for production to restart.
Another important aspect of last year’s business landscape is that the average registered capital of newly-registered enterprises remained at VND9.8 billion ($376,925), unchanged from 2024 despite the ongoing economic challenges. At this level, total additional registered capital injected into the economy stood at nearly VND6,400 trillion ($246.2 billion), up 77.8 per cent compared to 2024.
In particular, additional capital from existing enterprises exceeded VND4,400 trillion ($169.2 billion), surging 118.3 per cent. This points to strengthening internal capacity at Vietnamese businesses, as enterprises increasingly move beyond small-scale operations towards expansion and deeper investment.
By economic sector, 2025 saw a clear structural shift. The services sector continued to assert its role as a pillar of the economy, with 149,300 newly-registered enterprises, up 25.6 per cent. Wholesale and retail trade, transportation and warehousing, and accommodation and food services all recorded growth of more than 30 per cent in new registrations, driven by the recovery of tourism and domestic consumption.
Conversely, the construction sector exhibited worrying signs. It was one of just a few sectors to post a decline in newly-registered enterprises, of 0.5 per cent, while the rate of business dissolutions surged 83.3 per cent.
While the manufacturing and processing sector saw a sharp increase in dissolutions, of 68.5 per cent, it still maintained strong growth in new registrations, of 35.8 per cent. This suggests a sector characterized by intense competition and high attrition yet offering significant opportunities for firms with advanced technology and strong management capabilities.
Business exits
Alongside the bright spots in new business formation and reactivation, the high level of business exits in 2025 was another notable feature of the business landscape. On average, 18,900 enterprises exited the market each month. The number of companies temporarily suspending operations reached 114,400, up 14.3 per cent against 2024. Most strikingly, 35,900 enterprises completed dissolution procedures, a sharp increase of 66.1 per cent.
Explaining why record-high market entry coincided with a surge in dissolutions, the NSO pointed to the harsh selection mechanism inherent in a modern market economy. First, small and micro-sized enterprises often lack sufficient working capital and risk management capacity, making them vulnerable to even minor market fluctuations. Second, rising input costs, particularly labor and raw materials, have eroded profit margins for businesses operating under traditional models. Third, digital and green transitions are imposing new standards.
In addition, the growing number of enterprises ceasing operations while awaiting dissolution procedures, totaling 76,900, highlights persistent legal bottlenecks and debt burdens that remain difficult obstacles for inefficient businesses.
An analysis by the NSO of factors affecting production and business activities in the fourth quarter of 2025 also points to several key challenges. Though interest rates have stabilized, access to low-cost capital remains problematic for small and medium-sized enterprises (SMEs). Moreover, while the number of service enterprises has increased, consumers remain circumspect when it comes to purchases, leading to inventory build-ups in certain sectors.
Optimistic outlook
Despite these challenges, surveys on business trends in the fourth quarter show that enterprises remain cautiously optimistic about their near-term prospects. Some 75.8 per cent of respondents expect their business performance to improve or remain stable compared with the previous quarter; an important sign that market sentiment is gradually stabilizing.
By ownership type, State-owned enterprises and foreign-invested enterprises (FIEs) displayed stronger optimism. Their balance indices - the percentage of respondents reporting improvement minus those reporting deterioration - stood at 5.5 per cent and 5.3 per cent, respectively, positioning these sectors as economic anchors.
The stability of the FDI sector indicates that Vietnam continues to be an attractive destination within global supply chains, despite the geopolitical uncertainties. By contrast, non-State enterprises, while accounting for the majority of firms, recorded a balance index of just 0.2 per cent, reflecting ongoing competitive pressures and financial risks facing the private sector.
By sector, manufacturing and processing emerged as the most optimistic, with a balance index of 14.3 per cent, driven by a recovery in export orders towards year’s-end and stronger consumption during the holiday season. Conversely, trade and services, despite high rates of new business registrations, posted a negative balance index of -2.5 per cent. This serves as a warning about weak purchasing power in certain segments and mounting pressure from cross-border e-commerce on traditional retail models.
Assessing the overall business landscape in 2025, the NSO noted that although nearly 300,000 enterprises entered or re-entered the market, the sharp rise in dissolutions underscores the need for more effective support measures to foster sustainable business development in 2026. These include credit guarantee mechanisms for SMEs, administrative reforms, particularly in dissolution and suspension procedures, and stronger promotion of digital transformation in services and retail to boost productivity and competitiveness.
VET-Ngan Ha
Hanoi ranks among the world's 50 most beautiful cities
Condé Nast Traveler has included Hanoi in its list of the top 50 most beautiful cities in the world.
According to Condé Nast Traveler, Hanoi is not the type of city that dazzles with skyscrapers or glittering boulevards. Its beauty lies in its layers of history, with a serene green lake in the heart of the city, slanted brown tiles of houses in the old quarter, French-era wrought iron balconies, and old trees casting shadows on autumn streets...
What makes Hanoi particularly special in the eyes of international tourists is its blend of the East and the West in architecture, the old and the new in its rhythm of life, and street food that is simple yet so appealing it becomes iconic.
From an economic tourism perspective, appearing on Condé Nast Traveler's list can be seen as a "soft power endorsement." Rankings from prestigious magazines in the US and Europe often have a direct impact on attracting high-spending tourists who seek deep cultural experiences rather than just short visits.
Hanoi's inclusion in Condé Nast Traveler's list of the 50 most beautiful cities in the world is not surprising to international tourism observers, but it holds special significance in the increasingly fierce global competition for destination image. Unlike cities that impress with modern skylines, Hanoi captivates visitors with its slow pace and urban structure intertwined with water and greenery. In the global trend towards "livable cities," this aspect is increasingly valued.
Cuisine is also a pillar of Hanoi's image. From pho and bun cha to egg coffee, Hanoi's street food culture is seen as a "living heritage" – where the experience lies not in luxury but in local authenticity and the subtlety of flavors. Many international tourism experts believe this is what sets Hanoi apart from industrialized tourism centers.
When Hanoi appears in Condé Nast Traveler's global media ecosystem, three economic impacts are evident: First, it increases the destination's credibility. Recognition from an international brand shortens the "decision-making process" for tourists, especially those visiting Vietnam for the first time. Second, it stimulates investment in high-end services. Boutique hotels, unique cuisine, specialized cultural tours, and personalized experiences will have room to grow, rather than relying on mass tourism. Third, it raises the average spending per visitor. A growth model based on "value rather than volume" aligns better with the sustainable development direction of the industry.
However, with recognition comes the pressure of preservation. The rapid development of real estate, infrastructure, and mass tourism poses a challenge to balance growth and maintaining identity. Hanoi is beautiful not only for what it has but for the layers of memory preserved in its urban space. In the global shift towards green and responsible tourism, balancing development and preservation is crucial.
The issue is not how many more tourists are attracted, but how much of the city's original value is retained when opening its doors to visitors. A city is truly "beautiful" in the long term when its beauty is genuinely unique and not eroded by its own success. With the right direction, Hanoi can transform media recognition into a sustainable economic advantage where tourism growth goes hand in hand with preserving historical and cultural heritage, distinctive style, and urban quality of life.
According to the official gallery published by Condé Nast Traveler, some notable cities in this list include: Amsterdam – Netherlands; Barcelona – Spain; Buenos Aires – Argentina; Cape Town – South Africa; Cartagena – Colombia; Chiang Mai – Thailand; Copenhagen – Denmark; Dublin – Ireland; Edinburgh – Scotland; Florence – Italy; Hanoi – Vietnam; Paris – France; Porto – Portugal; and Prague – Czech Republic; among others.
Vneconomy-Bang Son
Nghe An secures over $2.5 bln in investment in first two months
In the first two months of 2026, the economy of the central province of Nghe An showed several "bright spots," most notably a surge in total newly registered and adjusted investment capital.
This data was released during the Nghe An Provincial People’s Committee's regular meeting on February 27, where officials evaluated the socio-economic performance for February and outlined tasks for the upcoming period.
Official reports indicate that as of February 23, the province had approved investment policies or granted investment registration certificates to 10 new projects and capital adjustments to 26 others. The total registered and additional capital reached over VND64.34 trillion (over $2.51 billion).
A major highlight of this period was the provincial approval of both the investment policy and the designated investor for the Quynh Lap LNG Thermal Power Plant. With a total investment of VND59.372 trillion VND (approx. $2.3 billion), this is the largest project ever recorded in the province. It is expected to create significant momentum for the local energy industry and attract a wave of auxiliary projects.
In addition to large-scale investments, the province’s business showed strong growth, with 816 enterprises newly established in the first two months—a 68.2% increase compared to the same period last year.
Vneconomy-Nguyễn Thuấn
A high-tech metallurgical plant to be invested in Ha Tinh
The Ha Tinh Economic Zone Management Board in the central provincc of the same name has recently granted an investment registration certificate for a projected high-tech metallurgical plant.
To be located in the Phu Vinh Industrial Park within the Vung Ang Economic Zone, the projected is designed with a capacity of processing 100,000 tons of raw materials annually, with a total investment of more than VND781 billion (nearly $30 million).
The project's operational period extends until September 30, 2060.
The plant will focus on producing high-quality metals and alloys such as copper, nickel, and cobalt, as well as processing metal compounds including tungsten, molybdenum, and vanadium. During production, the plant will aim to recover precious metals like gold, silver, and platinum, along with by-products such as sulfuric acid, sodium sulfate, and calcium sulfate, enhancing the efficiency of raw material usage.
Within 36 months from the date of receiving the investment registration certificate, the investor will complete legal procedures, construct the factory, install technology lines, and commence operations.
In recent years, the Vung Ang Economic Zone has been identified as a growth hub for heavy industry in Vietnam's North Central region, associated with metallurgy, thermal power, and deep-water seaports. The addition of the high-tech metallurgical project is expected to gradually complete the local industrial value chain, promote deep processing, increase product value, and contribute to the industrial restructuring of the area.
Vneconomy-Nguyen Thuan
All gasoline and diesel taxis in Hanoi to be replaced by electric ones by 2030
Under the Hanoi People's Committee's recently-issued plan, all gasoline and diesel taxis operating in the capital city will be transitioned to electric and green energy vehicles by 2030 at the latest.
To achieve this goal, the city is developing mechanisms and policies to encourage and support taxi companies in proactively converting their fleets.
Specifically, the Hanoi People's Committee will draft and present a resolution to the City Council, outlining policies to support the transition to clean energy road vehicles and measures to limit the use of polluting vehicles. The city will subsidize part of the interest on commercial bank loans for contracts aimed at converting traditional taxis to electric and green energy vehicles. Additionally, it will facilitate access to preferential capital from the city's Development Investment Fund.
Taxi businesses will receive support in the form of reduced registration fees and initial license plate issuance for electric and green energy taxis. The city will also consider offering preferential parking rates for electric and green energy taxis at public parking lots and incentives for investors in public charging infrastructure. Authorities are urged to extend the 100% exemption on registration fees for electric and green energy vehicles, with a particular focus on taxis used for passenger transport.
The transition timeline for converting gasoline and diesel taxis to electric and green energy vehicles sets targets of 64% by 2026, 68-70% by 2027, 74-77% by 2028, 88-96% by 2029, and 100% by 2030. Post-2030, the city will focus on maintaining stable conditions for electric and green energy taxis, prioritizing improved access to charging infrastructure, parking, and suitable traffic organization.
Currently, Hanoi has over 14,300 active taxis, with nearly 8,800 being electric. Additionally, around 13,600 taxis are inactive and awaiting replacement. The total number of vehicles expected to transition by 2030 is nearly 28,000. The city has tasked the Hanoi Department of Construction with leading, coordinating, monitoring, and evaluating the implementation of the plan. This department is responsible for expediting the review and installation of charging stations and arranging stops and parking for electric taxis.
In terms of management, the Hanoi Police is tasked with reviewing procedures related to the registration and issuance of identification license plates for vehicle conversion, providing unified guidance to shorten processing times and ensure no disruption to transport businesses. Concurrently, relevant authorities will research and implement an intelligent traffic monitoring system, utilizing automatic license plate recognition technology to manage vehicles and control violations in low-emission zones.
Vneconomy-Song Hoang