The city is encouraging developers with strong financial capacity and proven urban development experience to submit proposals. The goal is to turn the Binh Quoi - Thanh Da area into a modern, sustainable, and eco-friendly urban symbol of the future.

Ho Chi Minh City has officially called for investment in the Binh Quoi - Thanh Da New Urban Area, aiming to transform more than 405 ha along the Saigon River into a world-class ecological township.

Located on the Thanh Da Peninsula in Binh Quoi Ward, the area is designated to become an integrated urban hub. The master plan includes residential zones, mixed-use functional areas, administrative and commercial centers, and tourism facilities. A key highlight of the project is the integration of synchronized technical and social infrastructure with a dedicated wetland park designed for climate change resilience.

The project is a key urban development priority under the general planning approved by the Prime Minister in June, 2025 (Decision No. 1125/QD-TTg). With an estimated total investment exceeding VND50 trillion (over $1.9 billion), the project meets the criteria for selecting strategic investors under the preferential categories of National Assembly Resolution No. 260/2025/QH15.

The city is encouraging developers with strong financial capacity and proven urban development experience to submit proposals. The goal is to turn the Binh Quoi - Thanh Da area into a modern, sustainable, and eco-friendly urban symbol of the future.

Regarding the selection process, the city will consider a direct appointment if only one qualified investor applies. In the event that two or more strategic investors submit valid proposals, the investment registration authority will report to the city People's Committee within seven days to establish a scoring committee. This ensures the final selection is conducted with complete publicity and transparency.

Vneconomy-Thiên Di

The bridge is considered an urgent priority to enhance connectivity between Can Gio Commune and the HCMC city center.

The Ho Chi Minh City People's Committee on January 15 held a groundbreaking ceremony for several key transport infrastructure projects to welcome the 14th National Congress of the Communist Party of Vietnam.

A standout highlight of the event was the commencement of the Can Gio Bridge, a project developed under a Public-Private Partnership (PPP) model in collaboration with Masterise Group.

The bridge is considered an urgent priority to enhance connectivity between Can Gio Commune and the HCMC city center, while providing a powerful impetus for the development of the "Vinh Tien or Tien Bay" core zone.

After years of anticipation, the Can Gio Bridge is designed to be 6.3 km long. This includes a nearly 3 km main bridge crossing the Soai Rap River, directly linking Nha Be Commune with Can Gio Commune.

With a total investment exceeding VND13.2 trillion ($503 million), HCMC authorities have designated this as a vital and essential project. It aims to replace the aging Binh Khanh ferry, resolve waterway traffic bottlenecks, and unlock new development space toward the sea area.

Alongside infrastructure benefits, the Can Gio Bridge is expected to drive the growth of ecotourism, sea-reclamation urban areas, and the marine economy.

Simultaneously, the project is committed to environmental protection and the preservation of the Can Gio Mangrove Biosphere Reserve—a world-renowned heritage site.

Vneconomy-Lan Anh

The warehouse is operated via a digital platform, enabling real-time monitoring of inventory, cargo flows, and customs clearance status.

Viettel Post Joint Stock Company (Viettel Post) officially put into operation a bonded warehouse at its logistics park in the Dong Dang Border Gate Economic Zone in northern Lang Son province on January 14.

The project includes a 5,880-square-metre warehouse and an 8,700-square-metre bonded area, strategically located adjacent to the Huu Nghi and Coc Nam border gates. It is directly connected to the Hanoi–Lang Son Expressway and the Vietnam–China international railway, serving as a key transit gateway for goods moving between ASEAN countries and Pingxiang, China, as well as allowing cargo to be consolidated, processed, and redirected at a major trading hub between the two markets.

The warehouse is operated via a digital platform developed by Viettel Post, enabling real-time monitoring of inventory, cargo flows, and customs clearance status. Through the system, customers can proactively register and schedule warehouse usage in line with their production, import, or distribution plans, reducing reliance on manual procedures.

In addition, the facility functions as an integrated logistics processing hub, offering services such as shipment consolidation, labeling, packaging, inspection, cross-docking, and cross-border transportation within a single infrastructure. Its direct connection to customs data is expected to increase first-time processing rates and reduce handling time to under 30 minutes, provided documentation is complete and electronic procedures are applied.

As an important link on the Nanning (China)–Lang Son–Hanoi economic corridor, the Viettel Logistics Park is expected to help create more favorable conditions for manufacturing and logistics enterprises to expand operations in the border area.

VnEconomy-Hoàng Anh

Vietnam’s growth accelerated to 8 per cent in 2025, likely crowning it Asia’s fastest-growing economy

According to the report "Asia’s growth winner defies tariff saga" released by HSBC on January 13, the year 2025 can be characterised as a rollercoaster year. When the ‘liberation day’ announcement first hit in April, Vietnam was widely regarded as one of the economies most exposed to the tariff risks in Asia, probably next after only China.

However, Vietnam has defied the tariff typhoons and proved its economic resilience with remarkable GDP growth, hitting a high of 8 per cent for 2025, largely in line with HSBC’s expectation of 7.9 per cent. With the second-fastest growth in 15 years, this likely easily placed Vietnam as the growth champion, not only in ASEAN, but also in Asia, in 2025.

While 2025 was all about the on-and-off tariff shocks, Vietnam’s trade flourished to a record high of $928 billion, an 18 per cent year-on-year increase. "This could be attributed to the powerful impact of frontloading, but we think this is only part of the story," the report noted, adding that the frontloading impact to the US market has gradually faded, though in Vietnam’s case, export growth is still much stronger than others at a pace of 30 per cent year-on-year on a 3-month-moving-average (3mma) basis. But it’s not only about frontloading, it’s also about the significance of exporting the ‘right’ products.

There may have been too much news about AI, but it’s largely holding up global trade. Demand for AI-driven chips amid the escalation of the US-China chip race has reshaped the global semiconductor landscape Therefore, there’s no better time to export the electronics products as a way to shield from the tariff impact. Fortunately, Vietnam is in the league, though its exports are still concentrated in low-end consumer electronics. Vietnam’s electronics exports now account for 35 per cent of its total export basket, jumping from only 5 per cent in 2010. Meanwhile, its textiles and footwear exports fell from its peak of 30 per cent in 2005 to a little over 10 per cent now, reflecting Vietnam’s export journey up the value chain.

In addition to shipping the ‘right’ products, Vietnam has gained more share in the US market, which we discussed extensively in our note last month. Vietnam’s exports to the US jumped almost 30 per cent year-on-year in 2025, defying tariff concerns. Despite being subject to a headline tariff of 20 per cent, Vietnam has captured even more share in the US market in products such as phones, textiles and footwear.

Concerns about ASEAN’s rising imports from China, are not as simplistic as they may sound. The issue is not only how much ASEAN countries import from China, but also about how they can translate this into surging exports with cheaper inputs, and if they can reap the benefits in end-consumer markets like the US. Vietnam has set a good example of how to firmly grasp the ‘China+1’ opportunity to its benefit. While Vietnam’s trade deficit with China widened to $116 billion, its trade surplus with the rest of the world also widened, to $136 billion, resulting in a sizeable trade surplus of $20 billion.

Related to tariffs, the FDI performance is also worth flagging. While new registered FDI fell 12 per cent year-on-year in 2025, the absolute level remained high by historical standards. Beyond the headline number, the shift in investment composition is more interesting. The main culprit of lower investments is South Korean FDI, which plunged to a 14-year-low, despite being an early mover. However, Chinese FDI has partially picked up the slack, surging to the position of top investor with a share of 30 per cent, narrowly beating Singapore.

Despite defying the tariff challenges, risks remain, which may cloud Vietnam’s trade prospects. 

Trade is strong, but it’s more than trade: Vietnam’s domestic resilience is also holding up. Private consumption grew 8 per cent on the back of a high base while investment accelerated to almost 9 per cent in 2025. The push for infrastructure development serves as a traditional playbook that Vietnam relies on.

On the tourism front, despite missing its earlier target, Vietnam has welcomed a record high number of over 21 million foreign tourists, generating tourism receipts worth $40 billion, equivalent to 7 per cent of GDP. Its tourism recovery has been strong, with tourist numbers almost at 120 per cent of 2019’s level. This is largely aided by a swift return of Chinese tourists, which is impressive considering that Vietnam does not have a visa-free scheme with mainland China.

Elsewhere, inflation remains in check. Headline inflation rose 0.2 per cent month-on-month (3.5 per cent year-on-year) in December, largely driven by a 1 per cent rise in foodstuff prices. This reflects the ongoing food supply disruptions due to earlier flooding, but the impact should not last. Overall, inflation remains largely benign at 3.3 per cent for 2025, in line with HSBC expectations. It benefits from low oil prices and stable food costs, though the latter saw some recent pickup in momentum.

"All in all, we expect GDP growth to hit 6.7 per cent in 2026 and inflation to remain benign at 3.5 per cent," the report noted.

Vietnam will start 2026 with a key political event. The 14th National Congress of the Communist Party of Vietnam (CPV), which is scheduled to take place from 19 to 25 January 2026. The National Congress, held every five years, will choose the country’s new leadership and set socioeconomic goals for the next five to ten years.

All eyes will be on who the next ‘five pillars’ will be, namely who will fill the top five positions: Party General Secretary, State President, Prime Minister (PM), Chair of the National Assembly and Standing member of the Party Central Committee's Secretariat. The last position was added to the top leadership lineup only last September, marking a shift from ‘four pillars’ to ‘five pillars’. Currently, To Lam holds the position of Party General Secretary, and Luong Cuong is the State President. Meanwhile, Pham Minh Chinh, Tran Thanh Man and Tran Cam Tu are the PM, National Assembly Chairman and Standing member of the Secretariat, respectively.

That said, regardless of the outcome of the leadership reshuffle, economic policy is widely expected to be consistent and unlikely to change significantly.

In each congress session, key economic goals, including GDP growth and GDP per capita for the next five years will be unveiled. Vietnam’s 2021-25 average GDP growth reached 6.2 per cent, missing its target of 6.5-7 per cent growth set in the 5-year socioeconomic development plan for the period, but this was due only to the slow growth in the pandemic-hit 2021. Over the medium term, Vietnam strives to become an upper-middle income country by 2030 and ultimately a high-income one by 2045.

In November 2025, a series of socioeconomic targets for 2026 were approved by the National Assembly, providing a sneak peak of what to expect for the 2026-30 period. The 2026 growth target is set at “at least 10 per cent” with a GDP per capita of $5,400-5,500. The double-digit growth target is on top of the high GDP growth of 8 per cent last year, requiring a hard push to achieve broad-based growth, encompassing trade outperformance, significant investments and strong consumption.

What reforms will be introduced to support growth are also key to watch. Vietnam has pushed for a series of reforms, with the reorganisation of state agencies and merging of provinces and cities being the main highlights for 2025, to reduce bureaucratic hurdles and streamline administrative processes.

-An Chi

A high level of complexity counts among the factors limiting the effect of the DPPA mechanism in the nine months since its introduction.

Vietnam’s Direct Power Purchase Agreement (DPPA) mechanism, introduced under Decree No. 57/2025/ND-CP and effective from March 3, 2025, was once expected to become a breakthrough tool for accelerating Vietnam’s renewable-energy market. Within this policy, businesses can proactively access green electricity, reduce their dependence on the national grid, and drive clean-energy projects in a more flexible and efficient manner.

However, nine months after its introduction, reality shows that those initial expectations have yet to materialize. Numerous obstacles and operational challenges in implementing the mechanism have created significant barriers for many businesses. These and other issues were brought to the forefront at the recent Green Economy Forum (GEF) 2025.

High risk, high return

Mr. Alessandro Antonioli, CEO of Copenhagen Offshore Partners Vietnam, identified several factors that continue to shape investment decisions in Vietnam’s renewable-energy sector. He said that what investors look for is actually quite straightforward. “In our market, decisions depend on having both price and volume guaranteed; that’s what gives investors the confidence to commit.”

But the path forward is not without complications. Mr. Antonioli noted that tracking financial flows has become increasingly difficult, especially as many renewable-energy projects in Vietnam have been built in a highly-localized and fragmented manner. “It’s getting harder to trace where money goes and how projects are structured,” he explained, adding that this lack of transparency can slow capital inflows.

As the energy landscape shifts, he agreed that current models may no longer be enough. The sector is moving quickly, and with it comes a need for fresh ideas and more sophisticated investment approaches. He stressed that the industry must be ready for this next stage. “With the market changing, we need to rethink the financial framework and bring in investors who are prepared for more complex, modernized opportunities,” he said.

Mr. Antonioli also emphasized that Vietnam will only keep up with rising digital and technical demands if it can attract capable developers - those who understand how to operate, integrate, and scale advanced renewable systems. Without this talent, he warned, the country could struggle to capture the full potential of its clean-energy transition.

According to Ms. Phan Thi Thu Thuy, Deputy Head of the Electricity Market and Power System Department at the Electricity Regulatory Authority under the Ministry of Industry and Trade, the DPPA mechanism is opening significant space for growth for both investors and large electricity consumers. “The potential for DPPA is tremendous, but every transaction must comply with the Power Purchase Agreement (PPA) and the strict regulations of the electricity market,” she emphasized.

However, she also noted that the DPPA mechanism is not a playground for risk-averse investors; rather, it is a space for those willing to embrace a “high-risk, high-return” model. “This is a high-risk investment area, but it offers substantial rewards for those who are willing to lead,” she believes.

Despite these hurdles, Mr. Huynh Buu Quang, Vietnam Chief Country Officer at Deutsche Bank, underscored that the existing PPA framework generally serves its purpose. “The PPA is typically used to manage the direct relationship between the power generator and the consumer, and we have not seen significant issues with this structure,” he said, suggesting that the underlying agreement remains strong.

Mr. Andrew Khan, Managing Director at Carlsberg Vietnam, noted that while the company has been sourcing renewable electricity through I-RECs (International Renewable Energy Certificates) since 2022, these are only an initial step. To achieve net-zero production emissions by 2028, Carlsberg Vietnam plans to expand its use of renewable energy through DPPA participation and on-site solar projects, in line with both Vietnam’s net-zero roadmap for 2050 and the group’s global targets.

“The DPPA mechanism help makes renewable sourcing more meaningful and impactful,” said Mr. Khan. “It strengthens Vietnam’s clean energy infrastructure, supports long-term sustainability goals, and signals a clear commitment to modernizing the power market and attracting high-quality green investment. It also opens the door for deeper technology and expertise exchange between Vietnam and Europe. European enterprises can bring innovation, technical know-how, and financing solutions that support Vietnam’s climate agenda.”

Financial concerns

From a financial perspective, Mr. Quang noted that although the DPPA market holds substantial potential, it is unlikely to expand rapidly due to the inherent complexity of its mechanisms and project structures. “There is a lot of complexity, so DPPAs cannot break through in a short period of time,” he believes.

The mechanism is, however, increasingly seen as a key pathway that enables businesses to buy and use renewable energy directly, unlocking new opportunities for both sustainability goals and long-term energy security. Thanks to the mechanism, businesses now have the opportunity to purchase and use renewable electricity directly, supporting both their growth and long-term sustainability commitments.

However, Mr. Quang also emphasized that the current price of renewable electricity remains relatively high, causing many businesses to hesitate. “Renewable electricity prices are still high, so it is understandable that companies are cautious,” he said.

Regarding typical financial considerations, he noted that “a lot depends on the execution capability of the project developer and the consumer’s ability to pay, which is standard in any credit agreement.” He went on to emphasize that “the real challenges are not with the overall structure of the DPPA, but with the finer details spelled out in the contracts.” Even so, he affirmed that Deutsche Bank remains ready to support projects that meet the bank’s risk-management standards.

Ms. Thuy also suggested an approach for power producers to better explain their offered prices, particularly when using renewable energy combined with BESS (Battery Energy Storage Systems). She emphasized that when sellers propose higher offers, they should clearly outline the environmental benefits, operational stability, and load-optimization potential that BESS provides. “When buyers understand why the price is higher, and recognize the value of BESS and renewable energy, they will be more likely to consider investing,” she said.

Against the backdrop of Vietnam’s goal to achieve net-zero emissions by 2050, the government has pledged to work alongside the business community in the energy transition. “We will continue to strive to create the most supportive mechanisms for businesses,” Ms. Thuy added. “The DPPA therefore represents an opportunity for those willing to take the lead and lay the first stones in this emerging market.”

VET-Anh Hoang

According to JLL, real estate projects adjacent to metro stations have recorded significant price increases after the metro lines begin operations.

In Asia, the concept of Transit-Oriented Development (TOD), which emphasizes urban development connected to public transportation stations within a 1km walking distance, has been around much earlier in high-density cities like Singapore and Hong Kong (China).

Vietnam is also developing their own versions to meet rapid urbanization and modern public transportation network expansion.

Residents in Vietnam’s major cities historically prioritized connectivity to city centers using personal vehicles rather than public transport. However, this perspective has undergone a significant transformation in recent years, coinciding with the completion of long-delayed metro projects that began operations in November 2021 (Hanoi) and December 2024 (HCMC).

Ms. Trang Le, Country Head of JLL Vietnam said: “For two and a half decades (1990-2015), HCMC’s real estate market confined itself within a tight radius. Development rarely ventured beyond Ring Road 2, clustering within 10-kilometres of the city central. This growth pattern followed organic expansion along the existing infrastructure, primarily the road network, while transit-oriented projects remained absent.”

Over the decade of metro line construction, both of Vietnam's largest cities recorded vibrant real estate market activity with numerous projects appearing along these urban rail lines, she emphasized.

According to JLL Vietnam's report, projects within a 10-minute walk from metro stations currently account for 14-16 per cent of total commercial real estate supply and 4-9 per cent of residential supply in both markets. This figure alludes to the growing importance for projects that are near to public transportation network in the overall real estate supply in Vietnam's two largest cities.

Real estate projects adjacent to metro stations have also recorded significant price increases after the metro lines begin operations. Specifically, the average price increase was about 200-$250/sqm within one year. This corresponds to an impressive annual growth rate of 8 per cent for metro-adjacent real estate, double the 4 per cent market average growth recorded in Ho Chi Minh City in 2025. This difference suggests the value proposition that TOD projects bring compared to traditional real estate development.

In Hanoi, this difference is even more pronounced. According to JLL, projects near metro recorded a 19 per cent price increase compared to the market average of only 12 per cent in 2022.

From 2025 onwards, the Vietnamese government embraced TOD as a solution to reduce density in inner urban areas. This policy shift, combined with the emergence of integrated townships along ring roads, has created new dynamics that promise to improve the ring road system with balanced development in all directions.

This shift aligns with a broader trend that has emerged over the past decade: large-scale integrated townships. Developers have adopted holistic approaches to mixed-use development, seeking to overcome locational disadvantages by creating their own commercial and entertainment facilities.

In the upcoming years, TOD’s application in Vietnam will extend far beyond rail systems. The model works equally well with road-based public transport like Bus Rapid Transit (BRT) lines. At its core, TOD aims to create compact, walkable, mixed-use communities center around high-quality public transport hubs, regardless of the underlying technology, Ms. Trang Le emphasized.

-Linh San

Thanh Hoa has finalized and signed numerous significant cooperation agreements with European partners.

Since 2021, Thanh Hoa Province has organized three high-level business missions to Europe to promote investment, successfully establishing and consolidating ties with key local authorities, organizations, and international partners.

These missions focused on working sessions with the Port of Rotterdam Authority (Netherlands), the city of Issy-les-Moulineaux (France), Saint Petersburg (Russia), the Campania region (Italy), the Ústecký region (Czech Republic), and the state of Thuringia (Germany), along with various European business associations and trade promotion agencies.

Beyond government-to-government channels, the province has strengthened its engagement with Vietnamese embassies and overseas Vietnamese communities in Europe. These groups serve as vital bridges for promoting investment, trade, culture, and education. This proactive approach ensures that information regarding Thanh Hoa’s investment environment, potential, and competitive advantages is delivered directly to international investors and enterprises.

As a result of these diplomatic efforts, Thanh Hoa has finalized and signed numerous significant cooperation agreements with European partners. 

Economic ties have seen tangible growth alongside diplomatic efforts. For the 2021–2025 period, the province’s export turnover to the European market reached approximately $1.64 billion. Major export items include agricultural, forestry, and fishery products; textiles and garments; footwear; construction stone; and handicrafts.

Conversely, the province’s imports from Europe during the same period totaled over $163 million, focusing on raw materials for the garment industry, machinery, components, and production equipment. This trade structure reflects an increasingly close link between domestic production and European supply chains and technology, ultimately boosting the global competitiveness of local businesses.

VNeconomy-Nguyễn Thuấn

The northern coastal province attracted nearly $1 billion in FDI in 2025.

The northern coastal province of Quang Ninh targets attracting $3 billion in foreign direct investment (FDI) in 2026, according to a report from the Vietnam News Agency.

Chairing a conference to finalise the province’s investment promotion program and its plan for attracting FDI this year on January 13, Chairman of the provincial People’s Committee Bui Van Khang said that Quang Ninh aims to draw 101 non-state budget domestic investment projects with total registered capital of nearly VND569 trillion ($21.6 billion), and $3 billion in FDI capital in 2026.

To that end, Khang requested departments, agencies, and local authorities to candidly assess existing shortcomings and bottlenecks in investment attraction, and implement synchronous, effective, and decisive solutions to remove obstacles.

In 2025, Quang Ninh recorded a breakthrough in investment attraction, with non-state budget domestic investment capital reaching over VND503 trillion, 16.74 times higher than in 2024, while FDI inflows reached nearly $1 billion.

Vietnam News Agency-Vân Nguyễn

The 96-km expressway will be expanded to 6-8 lanes with estimated investment capital of VND36.17 trillion (nearly $1.4 billion).

The Directorate for Roads of Vietnam has asked the investor of the Ho Chi Minh City–Trung Luong–My Thuan Expressway expansion project to accelerate site clearance in order to commence construction on schedule.

With a total investment of more than VND36.17 trillion (nearly $1.4 billion), the project will be implemented under the public-private partnership (PPP) model in the form of a build-operate-transfer (BOT) contract.

Under the plan, the Ho Chi Minh City–Trung Luong section will be expanded to eight lanes, with a maximum speed limit of 120 km per hour. Meanwhile, the Trung Luong–My Thuan section and the stretch from An Thai Trung intersection to the northern approach of My Thuan 2 Bridge will be widened to six lanes, allowing a maximum speed of 100 km per hour.

The expressway has a total length of approximately 96.13 km, passing through Ho Chi Minh City, Tay Ninh province, and Dong Thap province.

The consortium selected to implement the project comprises Deo Ca Group Joint Stock Company, Ho Chi Minh City Infrastructure Investment Joint Stock Company, Tasco Joint Stock Company, Hoang Long Construction Investment Corporation, and CII Service and Investment Company Limited.

VnEconomy-Tuấn Khang

Vietnam Economic Times Issue 439 | Monday, January, 12 2026

Dear readers,

According to a report from the National Statistics Office under the Ministry of Finance released on the afternoon of January 5, Vietnam’s GDP in the fourth quarter of 2025 was estimated to have increased by 8.46 per cent compared to the same period of 2024. This was the highest GDP growth in the fourth quarter for the past 15 years, since 2011.

This result not only maintains the continuous growth momentum of the economy quarter-by-quarter last year (Q1: 7.05 per cent, Q2: 8.16 per cent, and Q3: 8.25 per cent) but also helped achieve the GDP growth target of over 8 per cent for 2025 as a whole, with an increase of 8.02 per cent - in line with the guidelines set by the Party and State for the final year of implementing the Resolution of the 13th National Congress of the Party on socio-economic development in the 2021-2025 period.

As a result, Vietnam’s GDP scale was estimated at VND12,847.6 quadrillion (at 2025 prices), equivalent to $514 billion (calculated at the average central exchange rate of VND/USD for 2025), an increase of $38 billion compared to 2024’s $476 billion. GDP per capita last year at current prices was therefore estimated at VND125.5 million ($5,026), an increase of $326 against 2024’s $4,700.

Many other socio-economic indicators were also quite positive. Total import-export turnover reached a record $930.05 billion, with exports of $475.04 billion, up 17.0 per cent against 2024, and imports of $455.01 billion, up 19.4 per cent. Vietnam’s trade surplus came in at $20.03 billion; lower than the $24.94 billion posted in 2024.

Total registered foreign investment in Vietnam as of December 31, including newly-registered capital, additional registered capital, and foreign investors’ contributions and share purchases, stood at $38.42 billion, an increase of 0.5 per cent compared to the previous year. Total registered additional capital stood at nearly VND6,400 trillion ($243.55 billion), an increase of 77.8 per cent compared to 2024. Meanwhile, disbursed FDI was estimated at $27.62 billion, a year-on-year rise of 9 per cent.

Vietnam’s overseas investment in 2025 included 173 new projects granted investment certificates, with total capital of $1 billion, an increase of 65.9 per cent compared to 2024. Thirty-two projects added capital, totaling $360.8 million, or more than three-times the figure in the previous year. Overall, Vietnam’s total investment abroad, both new and additional capital, reached $1.362 billion, an increase of 88.7 per cent against 2024.

In total, the country had nearly 297,500 newly-registered enterprises and businesses resuming operations after a period of closure, an increase of 27.4 per cent compared to 2024. On average, 24,800 businesses were newly-established or resumed operations each month. The number of those exiting the market totaled 227,200, an increase of 14.8 per cent against 2024, with 18,900 exiting the market each month on average.

In his keynote address at a national conference reviewing the government’s performance in 2025 and outlining tasks for 2026, held on January 8, Party General Secretary To Lam stressed that “Many decisions characterized by ‘turning the tide, changing the status quo, and adapting to circumstances’ have contributed to ‘turning challenges into opportunities.’ Numerous strategic resolutions in key fields such as science and technology, institutions and law, international integration, the private economy, the State economy, culture, and FDI attraction have laid the groundwork for rapid and sustainable development both in the short and long terms. As a result, in 2025, we successfully completed and exceeded 15 out of 15 major socio-economic targets; and in the 2021-2025 period we expect to have achieved and exceeded 22 out of 26 major socio-economic targets, nearly reached two of the 26, while two others need continued effort.”

Fundamentally, Vietnam therefore completed its socio-economic development plan for 2025 as well as the five-year plan for the 2021-2025 period, creating a solid basis for the country to enter a new development era in line with the direction the 14th National Congress of the Party, scheduled to take place from January 19-25, will outline.

To provide readers with the latest information on the overall picture of Vietnam’s socio-economic situation in the past year, our Cover Story in this edition looks back over the country’s economic landscape in December and 2025 as a whole.

Warmest regards

Dr. CHU VAN LAM
CHAIRMAN OF THE EDITORIAL BOARD

VET-Vietnam Economic Times - VnEconomy

Post-war explosives have claimed the lives of more than 40,000 innocent people and left over 60,000 injured.

Prime Minister Pham Minh Chinh has called for an acceleration of efforts to clear post-war landmines and unexploded ordnance (UXO), setting a target to basically complete the clearance of all contaminated land to a depth of 0.5 meters by 2045.

Speaking at a conference on January 13 to review the 2010–2025 National Action Program on overcoming post-war landmine consequences, the PM emphasized that this goal should be achieved to coincide with the 100th anniversary of Vietnam’s National Day. This updated timeline moves the target forward by five years compared to previous plans.

"This is a task that must be done, and the sooner the better, to ensure stable and sustainable development and to provide peace of mind for our citizens," PM Chinh stated during his concluding remarks.

Despite significant progress over the past 15 years, the PM, who also serves as the Chairman of the National Steering Committee on the Settlement of Post-war Unexploded Ordnance and Toxic Chemical Consequences, noted that challenges remain. To date, clearance operations have been completed on approximately 530,000 ha out of a 1.3-million-hectare target, representing only 40% of the objective.

Reports presented at the conference highlighted that since World War II, Vietnam has been one of the nations most heavily affected by the legacy of war, including landmines, explosives, and toxic chemicals.

The scale of contamination remains vast. Post-war explosives have claimed the lives of more than 40,000 innocent people and left over 60,000 injured. Beyond the human toll, these remnants have forced thousands of families into hardship, devastated the environment, and served as a major barrier to socio-economic development.

Regarding resources, the Vietnamese government has allocated over VND23 trillion (over $875 million) from the State budget. Additionally, ministries and agencies have actively mobilized social resources and international support, receiving approximately $234 million in non-refundable aid from foreign countries and international donors to implement various successful clearance projects.

Vneconomy-Song Hoàng

Foreign employees working in Vietnam are entitled to the paid public holidays specified in the 2019 Labor Code, plus an additional day off for their traditional new year and another for their own country's national day.

More than 95% of 85,000 surveyed workers have expressed strong approval for designating November 24 as "Vietnam Culture Day," a proposed national holiday where employees would receive a day off with full pay. The remaining survey participants also voiced support for the new holiday.

The data was shared by Mr. Ngo Duy Hieu, Vice President of the Vietnam General Confederation of Labor (VGCL), after the trade union conducted a survey to gather feedback from members and workers regarding a new policy from the Politburo.

On January 7, Party General Secretary To Lam signed and issued Politburo's Resolution No. 80-NQ/TW on the development of Vietnamese culture. The Resolution officially designates November 24 as "Vietnam Culture Day" annually. Under this policy, the day will be a public holiday with full pay, aimed at enhancing the public’s access to culture, encouraging artistic creativity, and promoting a civilized lifestyle throughout society.

"While specific plans have not yet been finalized, the VGCL will certainly view this as an opportunity to organize activities that improve the spiritual and cultural lives of our workers—a group that often lacks the resources and time to enjoy cultural values," Mr. Hieu stated.

According to Mr. Hieu, this will also be an ideal occasion to organize cultural and sporting events, facilitate visits to local historical and cultural sites, or allow workers time to spend with their families to honor traditional Vietnamese family values.

Currently, under the 2019 Labor Code, Vietnamese workers are entitled to 11 paid public holidays per year. 

If these holidays fall on a weekend, workers are entitled to a compensatory day off on the following workday. Each year, the Prime Minister decides the specific holiday schedule based on actual conditions.

Foreign employees working in Vietnam are entitled to the holidays mentioned above, plus an additional day off for their traditional new year and another for their own country's national day. All such holidays are fully paid.

Vneconomy-Phúc Minh

The airport in Dak Lak province is expected to handle 5 million passengers and 10,000 tons of cargo per year by 2030.

The Civil Aviation Authority of Vietnam (CAAV) has submitted to the Ministry of Construction a proposed development plan for Buon Ma Thuot Airport in the Central Highlands province of Dak Lak for the 2021–2030 period, with a vision to 2050.

Under the plan, the airport will be expanded to serve five million passengers annually by 2030 and handle 10,000 tonnes of cargo each year. By 2050, passenger capacity is expected to rise to seven million per year, while cargo throughput is projected at 15,000 tonnes annually.

During the 2021–2030 period, the existing Terminal 1 (T1) will be upgraded to accommodate two million passengers per year, while a new Terminal 2 (T2) will be constructed with a capacity of three million passengers annually. By 2050, Terminal 2 will be further expanded to increase its capacity to five million passengers per year.

According to the plan, Buon Ma Thuot Airport will be upgraded to ICAO Class 4C standards, enabling it to serve Airbus A320 and A321 aircraft.

VnEconomy-Minh Kiệt

According to Asia Manufacturing Index 2026, released by Dezan Shira Associates, Vietnam, boasts a very favorable economic outlook, now ranks third.

The AMI 2026 captures the relative competitiveness of 11 major Asian manufacturing economies across 8 key pillars and 43 sub-parameters. This edition provides a structured and transparent benchmark designed to support fact driven comparisons at a time when manufacturing decisions have become increasingly complex.

According to AMI 2026, Vietnam’s economic outlook bolstered by the stabilization of its government after years of uncertainty regarding the succession of the former party secretary. This political stability is critical for investors, as it signals a consistent policy environment.

The country has also cultivated a relatively open investment environment for foreign businesses, enhancing its attractiveness as a manufacturing hub.

Infrastructure plays a pivotal role in Vietnam's success, with the country ranking 3rd in this tier, yet it faces challenges in meeting growing infrastructure demands. Key projects like Ho Chi Minh City's Long Thanh airport and the high-speed railway, which is not expected to be completed until 2035, highlight the slow pace of expansion.

Additionally, concerns over energy stability and the environmental toll of rapid manufacturing growth persist, with Vietnam ranking last out of 180 countries in the 2024 Environmental Performance Index (EPI) by Yale University.

Despite this, setting up a factory in Vietnam offers a logistical advantage, as the country's long coastline ensures proximity to the sea and ports, reducing reliance on extensive railway and highway networks, which only rank 8th in the Infrastructure Quality parameter.

Vietnam's significant infrastructure investment, however, ranking 2nd, underpins its ambition to become a global manufacturing leader. Coupled with its young, dynamic, and increasingly skilled workforce, this strengthens the country's competitiveness as a prime manufacturing destination.

One of Vietnam's standout strengths is its excellent integration into the global network of free trade agreements (FTAs). This strategic positioning makes Vietnam an ideal location for production, allowing companies to efficiently export to key markets, including China, Australia and New Zealand (ANZ), ASEAN nations, and the United States.

In summary, Vietnam's combination of a strong economic outlook, political stability, open investment climate, robust infrastructure, and advantageous trade agreements positions it as a top destination for manufacturing in Asia.

The AMI is also a core component of Dezan Shira Associates’ APAC manufacturing market research work, created to help investors navigate the region more efficiently.

According to AMI 2026, China remains the number one ranked manufacturing country for the third consecutive year. The most significant shift in this edition is Malaysia’s rise to second place, its first time entering the top two. Singapore climbs into fourth place, Thailand rises from tenth to eighth, and Japan, the Philippines, and South Korea each adjust modestly. India remains stable at sixth and Indonesia remains stable at seventh. Bangladesh remains in eleventh place.

-Linh San

Vietnam’s tropical fruits are moving up the beverage value chain, with THABICO showcasing processed ingredients for global manufacturers, worldwide demand. A Tropicsun coconut water product from THABICO’s portfolio

Beverage market trends and the growing demand for tropical ingredients are reshaping global supply chains, creating new opportunities for producing countries with strong agricultural foundations. Against this backdrop, Vietnam’s tropical agricultural products are increasingly finding their place in the global beverage value chain.

Vietnam’s tropical agriculture appeal

According to the Food and Agriculture Organization of the United Nations (FAO), global consumption of plant-based products, particularly fruits and fruit-based beverages, continues to rise steadily across many regions, including the Middle East. Structural constraints such as limited arable land and water scarcity mean the region currently imports more than 80 per cent of its food demand, resulting in heavy reliance on external suppliers.

Vietnam, supported by its tropical climate, is gradually asserting a more prominent role in this context. Data from the Ministry of Agriculture and Environment show that Vietnam’s export turnover of agricultural, forestry, and fishery products exceeded $53 billion in 2024, with fruits and processed fruit products recording double-digit growth. The figures suggest that Vietnam’s agricultural exports are not only expanding in volume, but also moving toward higher value-added segments linked to processing and beverage applications.

An aerial view of THABICO’s processing complex

Vietnam benefits from the characteristics of a tropical monsoon climate, including stable year-round temperatures, abundant rainfall, and a dense river system. Key production areas such as the Mekong Delta, the Southeast, and the South Central Coast have emerged as major fruit-growing hubs supplying the beverage processing industry.

As of 2024, the country’s total fruit-growing area exceeded 1.2 million hectares, with annual output of more than 13 million tons. Major juice fruit varieties include mango, pineapple, passion fruit, banana, and coconut. Mango is grown on roughly 115,000 to 120,000 hectares, producing more than 1 million tons per year, while pineapple covers over 50,000 hectares with output of 800,000 to 900,000 tons. Passion fruit cultivation, at around 10,000 to 12,000 hectares, has expanded rapidly in recent years. Banana accounts for more than 150,000 hectares and approximately 2 million tons annually, while coconut spans about 190,000 hectares with output exceeding 1.8 million tons. These fruits are widely used in juices, smoothies, and plant-based beverages for international markets.

A key advantage for Vietnam lies in its ability to supply raw materials almost year-round, allowing processors to maintain continuous production and meet the consistency requirements of global beverage manufacturers.

On the demand side, the rapid growth of non-alcoholic beverages, plant-based drinks, and low-sugar products is driving demand for processed tropical fruit ingredients. According to Statista, the global non-alcoholic beverage market is expected to surpass $1.2 trillion by 2027. The Middle East is among the fastest-growing regions, supported by a young population, expanding tourism, and a growing service sector. Within this trend, Vietnamese tropical fruits are increasingly positioned as functional ingredients embedded in the global beverage value chain, rather than being exported primarily in raw form.

The THABICO team at an international trade exhibition, presenting beverage ingredients and finished products as part of Vietnam’s growing presence in the global food and beverage value chain.

THABICO: From products to industry solutions

This shift is evident at Gulfood Dubai 2026, where THABICO is among the Vietnamese enterprises exhibiting in the Beverage Hall, a dedicated zone for beverage products and industry solutions. The company’s presence reflects a market strategy centered on end-use applications, rather than the traditional presentation of raw agricultural commodities.

THABICO’s product portfolio includes NFC fruit juices, concentrated juices, fruit purée, IQF products, and coconut-based ingredients such as coconut water and coconut milk. These inputs are widely used in soft drinks, mixed beverages, and plant-based beverage formulations. Alongside product development, the company continues to invest in processing technology, with a focus on preserving natural flavors, ensuring consistent quality, and meeting HACCP, ISO, and Halal standards - critical requirements for Middle Eastern and other Islamic markets.

Scheduled from January 26 to 30, 2026, at the Dubai World Trade Centre, Gulfood Dubai brings together more than 5,000 companies from over 190 countries and is widely regarded as a strategic meeting point for the global food and beverage supply chain. Unlike trade shows focused solely on raw materials, Gulfood spans the entire ecosystem, from finished products to beverage solutions, retail, and food service.

Trade experts note that the growing visibility of Vietnamese companies at Gulfood reflects deeper integration of Vietnam’s tropical agricultural products into the global value chain, not only through scale, but through processing capacity, technology adoption, and compliance with international standards. In this broader landscape, THABICO illustrates how Vietnamese agricultural producers are repositioning themselves in international markets, moving beyond the role of raw material suppliers to become providers of comprehensive solutions for the global food and beverage industry.

-Diep Linh

By the end of 2025, there were 698 social housing projects under implementation nationwide, providing a total of 657,441 apartments.

The Government has assigned social housing development targets to each locality as part of efforts to achieve the goal of completing at least one million housing units for low-income earners and workers in industrial zones by 2030.

By the end of 2025, there were 698 social housing projects under implementation nationwide, providing a total of 657,441 apartments. Of these, 193 projects had been completed with 169,143 apartments; 200 projects had started construction and were under implementation with 134,111 apartments; and 305 projects had been approved in principle for investment, accounting for 354,187 apartments.

As a result, the total number of projects completed, under construction, or approved in principle had reached 62% of the target set out in the national master plan.

The Government has requested local authorities to align their actions with the assigned social housing targets and strive to meet or exceed them in order to contribute to the country’s overall objectives.

For projects that have already commenced construction, localities were instructed to urge investors to mobilise resources and ensure completion by 2026.

Local authorities were also directed to prepare land plots for social housing development and allocate sufficient land resources for investment in such projects.

VnEconomy-Phan Nam

Online spending now accounts for approximately 48% to 50% of total monthly expenditures, primarily focused on food, Tet gifts, decorations, and household products.

Demand for goods during the Tet (Lunar New Year) holiday is expected to rise by more than 72% compared to the annual average, reports the Metric platform in a recent survey and data analysis.

Specifically, demand for sweets and confectionery has doubled, while beer and soft drinks have tripled. Online spending now accounts for approximately 48% to 50% of total monthly expenditures, primarily focused on food, Tet gifts, decorations, and household products. Notably, about 89% of food buyers are households, while 50% of young consumers plan to purchase gifts for relatives and friends.

According to the Ho Chi Minh City Department of Industry and Trade, the total value of goods prepared by enterprises for the 2026 Lunar New Year exceeds VND26 trillion (nearly $100 million) with over VND9 trillion ($343 million) dedicated to market stabilization efforts.

These stabilization supplies are guaranteed to cover 23% to 42% of market demand during the Tet month, contributing to inflation control within the city. For essential goods specifically, purchasing power is forecast to increase by approximately 30% leading up to the holiday.

Major retailers such as Saigon Co.op, MM Mega Market, GO!, Satra, and Vissan have allocated tens of trillions of VND to stockpile goods for the two peak months of the holiday season. These enterprises have also committed to deep discounts in the days immediately preceding Tet for essential items, including pork, poultry, and eggs.

Ms. Ly Kim Chi, Chairwoman of the Ho Chi Minh City Food and Foodstuff Association, stated that more than 40% of the association’s members are participating in the city's stabilization program and have proactively increased their inventory by at least 20% to 30% well in advance.

Despite these preparations, many items on the market have already begun to show signs of price increases or have already been adjusted upward. 

Vneconomy-

Vietnam’s exports to India amounting to $10.3 billion, up 14.2% year-on-year.

Bilateral trade between Vietnam and India reached a record high of nearly $16.46 billion in 2025, representing a year-on-year increase of 10.5%, according to a report from the Vietnam News Agency.

Of the total, Vietnam’s exports to India amounted to $10.3 billion, up 14.2%, while imports stood at $6.1 billion, rising 4.9%.

Phones and components continued to lead export growth, generating $2.1 billion, up 27% year-on-year and accounting for 20.7% of the total shipments. They were followed by computers, electronic products and components, which earned $1.7 billion, up 15.8% and making up 16.8%, and machinery, equipment, tools and spare parts, which reached $1.05 billion, up 11.3% and representing 10.2%.

Strong export gains were also recorded in animal feed and feed ingredients (up 97%), pepper (up 54%), plastic products (up 53%), tea (up 27.5%), and aquatic products (up 26%).

On the import side, Vietnam’s purchases from India totalled $6.1 billion in 2025, accounting for 1.75% of the country’s total imports. As a result, Vietnam posted a trade surplus of $4.23 billion with India, up 31% from the previous year.

In terms of investment, the Foreign Investment Agency under the Ministry of Finance reported that India currently has 378 valid projects in Vietnam, with total registered capital exceeding $1 billion. Major investment areas include energy, mineral processing, agro-processing, information technology, automotive components, pharmaceuticals, hospitality, and infrastructure.

Vietnam News Agency-Vân Nguyễn

Actual business conditions in Q4 2025 significantly outperformed previous expectations. In the Q3 2025 survey, only 56% of businesses predicted that conditions in Q4 would be positive.

With a score of 80—the highest in seven years, the Business Confidence Index (BCI) from the European Chamber of Commerce in Vietnam (EuroCham) for Q4 2025 confirms the unwavering trust European enterprises place in Vietnam.

This recovery solidifies Vietnam’s position as a strategic investment destination and a leading regional growth engine.

EuroCham released its BCI for the fourth quarter of 2025 on January 13, which marks a clear shift, signaling that strengthened confidence is now becoming a primary driver for expansion and investment decisions in the coming period.

Surge in optimism

After years of navigating international volatility and disruptions, the Q4 2025 BCI indicated that sentiment among European businesses in Vietnam has returned to a positive growth zone. This score surpasses levels recorded both prior to the imposition of US tariffs and before the COVID-19 pandemic.

The report identified this as one of the strongest quarterly increases since the BCI was first launched in 2011. It reflected a distinct and uniform improvement in both the assessment of current business conditions and expectations for the future.

In Q4 2025, 65% of surveyed enterprises rated their current business situation as positive. This optimism is expected to build further momentum heading into the new year, with the percentage rising to 69% when looking toward Q1 2026.

Notably, actual business conditions in Q4 2025 significantly outperformed previous expectations. In the Q3 2025 survey, only 56% of businesses predicted that conditions in Q4 would be positive. 

Driven by macroeconomic momentum

This trend closely mirrors Vietnam’s macroeconomic recovery and acceleration. Vietnam’s GDP growth in Q4 2025 reached 8.46%—the fastest quarterly growth rate since Q4 2007—surpassing the forecasts of many major international organizations.

“Our latest BCI confirms what many of us have felt intuitively,” said EuroCham Chairman Bruno Jaspaert. “After years of hovering around the mid-line, reaching 80 tells us that confidence is now grounded in delivery – in factories running, orders returning, and investments being executed. We are seeing a structural shift where Vietnam is quickly transforming itself into a powerful growth engine, on track to rank among the top three economies in ASEAN.”

Beyond short-term gains, the Q4 2025 BCI revealed exceptionally strong confidence in Vietnam’s medium-term outlook. An overwhelming 88% of respondents expressed optimism about their organisation’s prospects in Vietnam over the 2026–2030 period, including 31% who described themselves as “very optimistic”.

“88 may sound like a lucky number, but it is much more than a fortune cookie: for our members, it is a rational one. Over the next five to seven years, provided it plays its cards right, Vietnam is destined to become the place to be, rising to enter a golden era of growth and transformation," Mr. Jaspaert noted.

This confidence is further bolstered by strong business performance. In 2025, 60% of enterprises reported improved results compared to 2024. Furthermore, optimism remains high for the future, with 82% of businesses expecting their performance to continue growing in 2026.

Vietnam’s appeal is also reinforced by vocal support from the business community. An impressive 87% of companies expressed their willingness to recommend Vietnam as a prime investment destination to other foreign firms, with the highest level of confidence recorded among large-scale enterprises.

Strategic priorities for 2026

The report noted that as market confidence solidifies, European businesses are entering 2026 with increasingly clear strategic priorities. Expansion and portfolio diversification top the list, cited by 50% of respondents as their primary focus.

Human resources remains the second-highest priority, with 45% of businesses focusing on recruitment and talent retention. This reflects persistent pressure in securing high-quality labor and underscores the pivotal role of human capital in maintaining sustainable growth momentum.

In parallel, technology integration, automation, and Artificial Intelligence (AI) are prioritized by 41% of enterprises. This highlights a strategic shift toward enhancing efficiency, productivity, and long-term competitiveness in an increasingly digital landscape.

Vneconomy-Vũ Khuê

Housing prices, particularly apartment prices, should be reduced to reasonable levels in line with the country’s overall development.

Prime Minister Pham Minh Chinh has instructed relevant ministries and agencies to adopt measures to rein in commercial housing prices—particularly apartment prices—to reasonable levels in line with the country’s overall development.

He made the request while addressing the fifth meeting of the Central Steering Committee on Housing Policy and the Real Estate Market, held virtually on January 13 and connected to all 34 provinces and centrally run cities.

The Prime Minister called for efforts to complete the legal framework, remove regulatory and planning bottlenecks, unlock land resources, streamline administrative procedures, and establish housing development funds.

He assigned the Ministry of Construction to take the lead in completing and submitting a proposal to competent authorities for consideration of establishing a state-run “real estate and land-use rights exchange” by January 2026.

The Government leader also urged stronger supervision and encouraged local authorities and businesses to accelerate the implementation of social housing projects and rental apartments to meet targets set for 2026 and subsequent years.

VnEconomy-Phan Dương