Vietnam News
Da Nang posts 2025 GRDP growth of 9.18%
Central Da Nang city recorded a gross regional domestic product (GRDP) growth of 9.18% year-on-year in 2025, ranking nineth among 34 localities of Vietnam, and second among six centrally-run cities, according to the city’s Statistics Office.
This also marks the highest growth of the city during the 2021-2025 period.
At current prices, the city’s GRDP in 2025 was estimated at VND316.1 trillion (about $12.02 billion), up by VND35.5 trillion (around $1.35 billion) from 2024.
The city contributed approximately 2.5% to Vietnam’s GDP.
Investment attraction remained positive as Da Nang continued to restructure its growth model towards higher quality development. By December 20, 2025, total domestic investment reached VND215.2 trillion ($8.18 billion), 2.7 times higher than a year earlier. Meanwhile, the city had attracted more than $520 million in FDI, including 124 newly licensed projects worth $286.9 million and 41 projects with additional capital of $142.7 million, up 86.3% year-on-year.
VnEconomy- Ngô Anh Văn
How to develop marketing industry
The conversations among industry leaders at the MMA (Marketing + Media Alliance) IMPACT Vietnam 2025 marketing event revealed that the country’s industry is shifting at a pace that feels less like evolution and more like whiplash. In a single scroll, a consumer may move from a creator-led livestream to an AI-generated product suggestion, from a TV drama to an in-app checkout, from a viral TikTok recipe to a Google Search validation, all within minutes. Technology is accelerating at one end, human expectations at the other, and brands are caught in the space between.
Tech acceleration
According to Mr. Rohit Dadwal, CEO of MMA APAC and Global Head of marketing awards program SMARTIES Worldwide, the region’s landscape is “in flux” - a market where technology has become the primary engine of transformation. More than half of the world’s internet traffic now comes through mobile, and the share continues to rise each quarter. Even more striking is that 77 per cent of global digital ad spending already occurs on mobile, a figure unimaginable a decade ago. Social platforms alone capture $250 billion of that total, while mobile-first video has become the defining format of digital consumption.
In Vietnam, this is not merely a trend but a cultural pattern. Super-apps shape daily routines, merging commerce, entertainment, and communication into a single ecosystem. Mr. Dadwal described Asia as still “a mobile-first market,” defined by users who may never open a PC yet expect immediacy, personalization, and seamless experiences.
Only 32 per cent of marketers, he warned, believe they can measure media spending with confidence. The rest are operating with partial visibility, navigating privacy regulations, signal loss, and the collapse of third-party cookies. Data, once heralded as the new oil, now requires a complete re-engineering of systems and talent, especially as AI simultaneously magnifies opportunity and complicates execution.
Mr. Viet Anh Trinh, Senior Industry Manager for CPG at Google, argues that the very act of searching is changing, and with it the rules of brand visibility. Vietnam’s Gen Z, he said, does not search, they converse. They pose a question, expect an instant, personalized reply, and rely on AI to synthesize the internet on their behalf.
The challenge for brands, he explained, is no longer bidding on keywords but ensuring their content is authoritative, trustworthy, and purchase-ready within an AI-generated response.
Vietnamese consumers are embracing this change faster than expected. Google Lens handles roughly 20 billion image-based queries a month, and one in four carries commercial intent. Two billion people globally now use Google’s AI Overviews, including in Vietnam, creating a new arena for visibility. Contrary to advertiser fears, Google’s early data shows AI Overviews are driving more high-quality traffic to brand websites, not less.
And despite assumptions that Gen Z searches only on TikTok, they are the heaviest users of Google Search, performing more queries than any other age group. They search more because they trust the AI-powered answers, and because it helps them validate what they see on social platforms. Seventy per cent of social users immediately turn to Google Search to confirm the credibility of a product they encounter online. If a brand is absent in that validation moment, the conversion disappears.
In this environment, new tools become essential. Google’s AI-powered search campaigns - “AI-Max” - scan entire websites, match user intent with creative assets, and generate tailored ads in real time.
What links the perspectives of Mr. Dadwal and Mr. Trinh is not merely the scale of technological change but the urgency behind it. Mobile, video, social commerce, and AI-driven search are reshaping consumer behavior faster than brands can respond. Vietnam’s hyper-connected, AI-assisted users are already moving ahead, forcing marketers to catch up.
The real question now is whether brands can adapt at the pace consumers expect, and build the capabilities to operate in a world where every search is a conversation, every device a storefront, and every interaction a data point demanding sharp execution.
Human-centric branding
For years, digital marketing in Vietnam was defined by the race for reach and the chase for novelty. But as digital maturity rises, a different frontier is emerging, one grounded not in louder campaigns or more advanced technology but in deeper human connection. Brands are discovering that audiences respond most strongly not to spectacle but to sincerity: the sense that a brand sees them, listens to them, and treats them as participants rather than targets.
When Ms. Patricia Marques became General Director of Phuc Long Heritage a year ago, she inherited a brand with rich cultural heritage but a growing disconnect between its identity and consumer expectations. Behind Phuc Long’s products are decades-old tea plantations and growers whose work forms the foundation of the company’s quality. Yet these stories had faded, eclipsed by a marketplace increasingly driven by convenience, trend cycles, and rapid expansion.
What Ms. Marques heard from consumers challenged those assumptions. People were no longer asking what the product was or how much it cost. They were asking where it came from, who made it, and why it mattered. Their questions were not about taste or price, they were about truth.
Her response was to begin at the source. She brought her teams back to the plantations where Phuc Long’s tea is grown and invited employees to speak not only as staff but as consumers. This internal shift proved catalytic. Employees were encouraged to express themselves, innovate without fear, and offer ideas drawn from real-life experience. The culture moved towards transparency and participation, and the brand narrative followed. What emerged was not a marketing tactic but a re-rooting of identity.
She believes consumers instinctively know when a brand practices its values versus merely talking about them. “We all want to be eco-friendly,” she said. “But in reality, we talk about green far more than we actually do it. This was another key learning: consumers know very well who is ‘green talking’ and who is ‘green doing.’”
This evolution in authenticity aligns with what Mr. Phil Worthington, Senior Client Director at Toluna, has observed while evaluating hundreds of campaigns each year for the SMARTIES Awards. He notes that Vietnamese marketers are steadily moving away from formulaic approaches, especially the flashy Gen Z-focused music videos that once dominated award submissions. They generated entertainment but often stopped short of emotional connection.
Today, he sees campaigns anchored in specific human truths: daily rituals, frustrations, cultural habits, and private motivations that shape how people live. Many of the strongest entries elevated everyday consumers as protagonists, not props. Their lives became the narrative lens through which brands communicated value.
Mr. Worthington also highlighted the growing sophistication in how brands interpret consumer insight. Instead of relying solely on traditional research, marketers increasingly mine their CRM (customer relationship management) systems, segmenting customers by real behavior rather than broad demographics. This enables messaging that feels personal, timely, and relevant - less like advertising and more like dialogue.
Around Vietnam, consumers, especially younger ones, are examining brands with sharper eyes. They verify claims, trace origin, and weigh a company’s actions against its promises. Loyalty is no longer assumed, it must be demonstrated and continually renewed. Together, these shifts point to an industry in quiet but profound transition. Technology is accelerating the tools, but people are redefining the meaning. And the stories that endure are those that recognize a simple truth: every data point represents a person who wants to be understood.
VET-Diep Linh
Vietnam's 2025 seafood exports hit $11.34 billion
Vietnam’s seafood export revenue surpassed $11.34 billion in 2025, representing a 13% year-on-year increase, despite ongoing global challenges, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
China and Hong Kong (China) remained the largest import markets, with combined export value reaching $2.45 billion, up 29% from 2024. Exports to the United States totalled nearly $1.9 billion, a modest increase of 3%, while shipments to the European Union rose 12.5% year on year to $1.2 billion.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) continued to serve as a major growth driver. Seafood exports to CPTPP member countries reached $3.07 billion in 2025, up 22% compared to the previous year, supported by stable demand from key markets such as Japan, Canada, and Australia.
In terms of product structure, Vietnam recorded relatively balanced growth across major seafood categories, with aquaculture maintaining a leading role.
Shrimp exports generated $4.65 billion, a sharp 20% increase year on year and the largest share of the total export turnover. Notably, lobster exports surged to $817 million, more than doubling compared to 2024. Meanwhile, tra fish exports earned $2.19 billion, up 8% from the previous year.
VASEP noted that surpassing the $11 billion milestone reflects the industry’s flexibility and ability to seize market opportunities amid significant fluctuations. However, the association stressed that market and product restructuring remains a long-term strategy, requiring sustained efforts to achieve lasting and sustainable growth.
VnEconomy-Chu Khôi
Business confidence hits 21-month peak as Vietnam’s PMI reaches 53 in December
Vietnam's manufacturing sector closed 2025 with positive growth signals as the Purchasing Managers' Index (PMI) reached 53 points, marking a continuous improvement in business conditions throughout the second half of the year.
With a surge in output and new orders, coupled with rising business confidence, enterprises are creating a solid launchpad toward the goal of a 6.7% increase in industrial output in 2026.
SP Global on January 2 released its PMI report for Vietnam's manufacturing sector for December 2025, which highlighted three key points: growth in output, new orders, and employment; input costs rising at their fastest rate since June 2022; and business confidence reaching a 21-month high.
The report noted that the Vietnamese manufacturing sector concluded 2025 with positive growth signals, with the December PMI recorded at 53 points. Although this was a slight dip from 53.8 points in November, the fact that the index remained above the 50-point threshold indicates a robust improvement in the health of the manufacturing industry.
A standout highlight was that manufacturers extended their period of production growth for the eighth consecutive month, driven by a combination of mild weather conditions and momentum from new orders. While the rate of production growth remained strong, it was the softest increase seen in the last three months.
According to the report, the volume of new orders rose for the fourth consecutive month due to improved customer demand. However, the overall growth rate slowed compared to November. This was partly due to new export orders declining for the first time in three months, which exerted pressure on total demand.
Expectations for a breakthrough in 2026
Regarding the outlook for 2026, SP Global indicated that manufacturers are showing increasing optimism about production prospects. Business confidence strengthened for the third consecutive month, hitting its highest level since March 2024.
According to the survey, nearly half of the respondents forecast that output will grow in the coming year, fueled by improved customer demand, the launch of new product lines, and efforts to enhance production capacity.
Economics Director at SP Global Market Intelligence, Mr. Andrew Harker, said: "The Vietnamese manufacturing sector ended a turbulent year on a positive note, with output and new orders rising solidly again and business confidence hitting a 21-month high."
"Overall, the sector goes into 2026 in a positive position, with manufacturers optimistic of securing new business and being able to expand their production capacity. SP Global Market Intelligence forecasts industrial production growth of 6.7% in 2026," he added.
Vneconomy-Mạnh Đức
Masterise Group permitted to study Metro Line 3 in HCM City
The Ho Chi Minh City People’s Committee has approved a proposal by Vietnamese property developer Masterise Group to conduct a feasibility study for Metro Line No.3 using the company’s own funds.
The approval, however, does not constitute the appointment of Masterise as the project developer, nor does it imply approval of investment or project implementation under current regulations.
During the process of surveying, research, and investment proposal development, Masterise Group is required to closely coordinate with relevant departments, sectors, and units, fully comply with requirements set by the city's Department of Finance, and ensure that all research outputs undergo comprehensive review and evaluation.
The studies must meet standards of quality, effectiveness, and feasibility, and align with the city’s overall development orientation, master planning, and specialised urban transport planning as approved by competent authorities.
Upon completion, all research results must be handed over to the Ho Chi Minh City Urban Railway Management Board for state management and use in accordance with regulations.
Previously, Masterise Group proposed studying the Metro Line No.3 (Hiep Binh Phuoc–An Ha section) under a public-private partnership (PPP) model combined with a build-transfer (BT) contract. The proposed line is projected to span 46 km and will connect with Metro Line No.2 at the Hiep Binh Phuoc depot.
VnEconomy-Thanh Thủy
2025 fruit and vegetable exports earn record high of $8.5 billion
Vietnam’s fruit and vegetable exports reached a record high of $8.5 billion in 2025, up nearly 18% year on year, according to the Vietnam Fruit and Vegetable Association (Vinafruit).
The result significantly exceeded initial forecasts, underscoring the strong and sustained growth momentum of the country’s fruit and vegetable sector over the past year.
In 2025, Vinafruit implemented a range of practical initiatives to strengthen linkages among member enterprises, while working closely with local authorities to enhance connections between exporters, producers, farmers, and cooperatives. These efforts have contributed to the development and consolidation of integrated production–consumption chains across multiple key raw material regions.
Building on this sustainable growth, and with the official launch of the agricultural product traceability system from January 1, 2026, the fruit and vegetable sector is expected to achieve its target of $10 billion in export turnover in 2026.
VnEconomy-Chu Khôi
Da Nang to spend $277 mln on "Innovative City" project
The Da Nang People’s Committee has issued Decision No. 3345/QD-UBND dated December 31, 2025, approving a project titled "Da Nang – City of Innovation."
The overall goal of the project is to build Da Nang into an innovative city—an ecological, smart, distinctive, and sustainable metropolis of international stature, serving as a hub for connection and development within regional and global urban networks.
At the same time, Da Nang is envisioned as a tourism center linked with an international event hub; a center for high-tech industry and information technology; a startup and innovation hub; a regional-scale international financial center; and a livable coastal city of Asian standards.
By 2030, the project sets out specific targets such as upgrading city's innovation ecosystem to international standards, comparable to major ecosystems in Southeast Asia, recognized and ranked by international organizations; striving to be among the world’s top 300 startup and innovation ecosystems. The city aims to support the formation of around 500 innovative startups, attract more domestic and foreign venture capital funds, and work toward the emergence of at least one technology unicorn in Da Nang.
Priority sectors under the project include: information and communications technology; high-tech and green industries; biotechnology and healthcare; circular economy, marine economy, and logistics; smart cities and smart tourism; financial technology (fintech); data science, big data, and artificial intelligence (AI).
To implement the “Da Nang – City of Innovation” project, the city has allocated a total budget of nearly VND7.3 trillion (over $277 million), sourced from the annual science and technology fund managed by the city Department of Science and Technology, along with other lawful funding sources.
According to Director of the local Department of Science and Technology, Mr. Nguyen Thanh Hong, the city has established three innovation startup support centers; 12 incubators; three makerspaces; eight co‑working spaces; six startup investment funds; 10 startup clubs at universities and colleges; and more than 20 institutions and universities actively participating in the ecosystem, with an estimated 200 innovative startup enterprises.
Vneconomy-Ngô Anh Văn
To accelerate dual transformation
Mr. Hiro Miura, Head of Market Unit for Mobile Networks in Southeast Asia at Nokia
Today, much of the mobile ecosystem still revolves around consumer devices. However, we are entering a new era - an AI supercycle that will transform networks and societies. In this future, intelligence will reside not only in phones but also in machinery, sensors, autonomous systems, and industrial platforms, creating a far more heterogeneous and dynamic digital world.
In Vietnam, Nokia is a leading supplier of 4G and 5G radio technologies, providing equipment and solutions to major operators including Viettel and VNPT, and supporting the expansion and modernization of the country’s mobile networks. The company also delivers core applications and backbone transmission networks to strengthen the broader ecosystem.
Nokia and NVIDIA recently announced a strategic partnership to introduce NVIDIA-powered AI-RAN into Nokia’s RAN portfolio, enabling AI-native 5G-Advanced and future 6G networks. For Ho Chi Minh City, this advancement brings computing and intelligence closer to where city data is generated, supporting real-time decision-making to improve mobility and reduce congestion, optimize energy and resource efficiency, enhance public service responsiveness, and foster the growth of a local digital and AI innovation ecosystem. This initiative aligns directly with Vietnam’s goals of technological autonomy and digital resilience.
On October 21, during the visit by Party General Secretary To Lam to Nokia’s headquarters in Helsinki, Finland, the company reaffirmed its strong commitment to supporting the priorities of Politburo Resolution No. 57, accelerating digital transformation, fostering innovation, and contributing to long-term national development. Nokia firmly believes that its strategic direction aligns closely with Vietnam’s national digital ambitions, particularly Ho Chi Minh City’s vision of becoming a smart, globally-connected city.
Mr. Ashish Joshi, Board Member at PRO Vietnam, CEO and General Director of Suntory PepsiCo Vietnam Beverages
PRO Vietnam has evolved into more than just an alliance over the past five years. We have become the leading platform for circular packaging transformation in the fast-moving consumer goods (FMCG) sector, bringing together global corporations, local enterprises, non-government organizations (NGOs), recyclers, and government agencies with one shared purpose: to ensure every piece of packaging is collected, recycled, and returned to the economy.
Founded in 2019 with nine pioneering members, including Suntory PepsiCo Vietnam, PRO Vietnam today comprises 30 committed companies, representing the strongest voluntary movement for sustainable packaging in the country. Our long-term goal is for 100 per cent of packaging placed on the market by our members to be collected and recycled. This is not just a technical goal; it represents a mindset shift, from collecting waste to creating a true circular ecosystem where packaging is designed for recyclability from the outset.
Vietnam’s direction is clear. Politburo Resolution No. 57 highlights innovation, sustainability, and green growth as strategic pillars of national development. PRO Vietnam fully embraces this vision because it reflects what we have been building since Day 1.
Even before Extended Producer Responsibility (EPR) became mandatory in 2024, PRO Vietnam members were already investing voluntarily in eco-design, light-weighting, collection pilots, and recycling technologies.
These actions demonstrate one thing clearly: Vietnam can lead the region in circular packaging if we move together and act decisively.
Dr. Bruno Wu, Chairman of the Board at Sun Seven Stars Investment Group
Throughout my many years working with global financial centers, technology hubs, and academic institutions, I have come to believe that the countries with the strongest aspirations are those that will lead the digital age. Vietnam - guided by the strategic vision of its leadership and the dynamism of its business community - now possesses all the essential elements to become one of the most influential emerging powers in the Asia-Pacific region over the coming decade.
Sun Seven Stars, together with our ecosystem of global partners, comes to Vietnam with a clear mission: to collaborate in building a world-class financial, technological, and innovation hub that connects global capital, intelligence, and cutting-edge technologies.
We firmly believe that Ho Chi Minh City and Vietnam have the potential to become a leading digital financial center in Asia, a global powerhouse for AI and innovation, a pioneer of sustainable urban development, and a magnet for top talent worldwide.
The global economy is undergoing a profound structural transformation. AI, digital asset tokenization, green supply chains, new energy technologies, and next-generation financial systems are reshaping how nations trade, invest, and grow.
Vietnam’s greatest strength lies in its spirit, resilience, creativity, and the new generation of business leaders who dare to think big, act boldly, and lead with vision. By aligning our visions, connecting our intellectual strength, and combining our resources, we can achieve breakthrough progress for Vietnam in the digital era.
Dr. Pham Thai Lai, CEO of Siemens in ASEAN and Vietnam
For over 30 years, Siemens has proudly supported Vietnam’s socio-economic development, building strong partnerships with the government and local authorities, including in Ho Chi Minh City. We have contributed to key areas such as smart energy management, wastewater treatment, smart buildings, and automation solutions for both international and Vietnamese manufacturers. Our Busway Factory at VSIP II in the city strengthens local manufacturing and exports, reinforcing Vietnam’s industrial base.
Siemens also invests in local talent. Partnering with top engineering institutions, including the Ho Chi Minh City University of Technology, the Vietnamese-German University, and the Thu Duc College of Technology, we prepare the next generation to thrive in a rapidly-evolving technological landscape.
At Siemens, we deliver solutions across industry, infrastructure, mobility, and healthcare. These sectors are the backbone of the economy, and digitalization offers opportunities to make them more competitive, resilient, and sustainable.
Ho Chi Minh City’s ambition to become a leading international metropolis aligns with Siemens’ vision. We see immense potential for collaboration, particularly in leveraging high-tech solutions to drive the city’s digital transformation, resilience, and sustainable growth. We focus on three key areas.
First, building a digital backbone. Using Siemens Xcelerator, Industrial AI, and the Industrial Metaverse, we can create digital twins of the city’s critical infrastructure, from smart buildings and energy grids to transportation networks. This allows optimized planning, predictive maintenance, and real-time management, making the city smarter and more responsive. In manufacturing, our AI and simulation tools enhance productivity, positioning Ho Chi Minh City as a global industrial hub.
Second, driving the green transition. Siemens technologies currently save over 300,000 metric tons of CO₂ annually. We aim to further improve energy efficiency, integrate renewable energy, and build robust smart grids. This reduces the city’s carbon footprint while ensuring a stable, sustainable energy supply for its growing economy.
Third, fostering a high-tech ecosystem. Beyond technology, we support workforce development and innovation hubs. Through knowledge transfer and capacity building in digital and green technologies, we empower local talent to lead the future, leveraging AI-powered tools such as Siemens Industrial Copilot and edge computing for advanced operations.
Together with the Ho Chi Minh City metropolitan region, Siemens envisions co-creating a world-class, future-ready city. By deepening collaboration with the Vietnamese Government and city authorities, we aim to build a future where technology serves humanity, supporting Vietnam’s vision to become a developed, high-income country with an independent, modern economy by 2045.
Professor Nguyen Thi Thanh Mai, Vice Chancellor of the Vietnam National University, Ho Chi Minh City
Representing Vietnam National University, Ho Chi Minh City (VNU-HCMC) and the scientific community, we propose three strategic directions to advance Vietnam’s knowledge economy.
First, sustainable investment in high-quality human resources. VNU-HCMC currently trains nearly 100,000 high-quality students and has more than 4,000 scientists and experts working in strategic fields such as AI, data science, semiconductors, advanced materials, renewable energy, and biotechnology. We call on the government, city authorities, and businesses to support human resources development through shared laboratories, joint RD centers, and expert exchange mechanisms, positioning VNU-HCMC as the “RD headquarters” for enterprises in Vietnam and the region.
Second, promoting State-University-Business collaboration. VNU-HCMC is establishing an Innovation Center at the city’s eastern gateway, next to Saigon High-Tech Park, aiming to become a “mini Silicon Valley.” This collaboration allows businesses to access young talent and experts directly on campus, fosters spin-offs and startups, and ensures that training programs remain aligned with real-world industry needs.
Third, establishing a university-led “sandbox” for innovation. We propose a pilot “sandbox” mechanism for technology transfer and product testing, allowing VNU-HCMC greater autonomy to invest in research outputs, streamline public investment procedures, and operate like an innovative enterprise. This will create an environment where scientists and students can experiment boldly, accelerate innovation, and lead in the knowledge economy.
With ready infrastructure, a growing pool of talent, and strong aspirations for innovation, VNU-HCMC seeks further trust, supportive policies, and investment from the government and the business community to drive sustainable growth in Vietnam’s knowledge economy.
VET-
E-cigarette smokers shall be fined up to VND5 million
Under the Government's Decree No. 371/2025/ND-CP, dated December 31, 2025, E-cigarette smokers in Vietnam shall be subject to a fine between VND3-5 million ($114 - 190).
The decree took effect on the same day.
Vietnam is the 6th ASEAN Member States and among 43 countries around the world to have issued e-cigarette ban.
Previously, in November 2024, the National Assembly adopted the revised Investment Law banning investment and business activities related to e-cigarettes and heated tobacco from 2026. The aforesaid moves aim to protect public health, particularly among adolescents.
In 2023, 1,224 users of e-cigarettes were hospitalized due to e-cigarette harms, the Government News quoted the Ministry of Health as reporting.
The World Health Organization (WHO) said e-cigarettes are the most common type of electronic nicotine delivery systems (ENDS) and electronic non-nicotine delivery systems (ENNDS). They heat a liquid to create aerosols that are inhaled by the user. These so-called e-liquids do not contain tobacco and may or may not contain nicotine. They also typically contain additives, flavors and chemicals that can be harmful to people's health.
At least 15 million people aged 13 to 15 use e-cigarettes globally, with young people on average nine times more likely to vape than adults in countries with data, reported the WHO last October, according to the Government News.
VGP-Pham Long
Ninh Binh studies 7,000-ha riverside urban development plan
The Ninh Binh Provincial People's Committee in northern Vietnam recently held a meeting to review a report on the urban subdivision planning for the areas flanking the Day River. The project covers a research area of approximately 6,670 ha.
The vision for the project is to transform the Day River into an "ecological-cultural-economic boulevard." This corridor is designed to integrate urban development, agriculture, industry, fisheries, and tourism through a continuous system of open spaces along both riverbanks.
During the conference, Japanese experts presented planning proposals and ideas for the urban subdivision spanning from the National Highway 37C overpass to the North-South Expressway (CT01) overpass.
According to the report, the Day River currently serves as a vital North-South axis for Ninh Binh, passing through key production hubs, urban centers, tourist attractions, and major national transport routes. These conditions are ideal for establishing a "Riverside Economic-Ecological Corridor."
Under the plan, the northern region of the river will focus on urban, industrial, and logistics roles, while the southern region will prioritize agriculture, fisheries, and exports, creating a multi-sector economic value chain along the river.
The planning is expected to enhance the quality of life for local residents, attract investment, and balance economic growth with ecological preservation.
At the meeting, delegates contributed feedback on technical requirements, emphasizing the need for precise calculations regarding seasonal water level fluctuations and flood drainage capacity. Discussions also covered dike elevations, landscape arrangements, and the seamless integration of urban transport with regional and inter-regional networks.
In his concluding remarks, Chairman of the Provincial People's Committee, Tran Huy Tuan outlined key directions for further study. He emphasized that the province is committed to green, sustainable, smart, and modern urban development. This growth must be closely linked to "heritage cities," utilizing the Trang An World Heritage site and the Day River space as the primary cultural landscapes.
The Chairman also requested that the planning respect the existing landscape of the riverbanks while protecting and promoting local historical and cultural values to ensure smooth connectivity across the region.
Vneconomy-Thanh Xuân
Solutions to improve productivity
At the recent 10th session of the 15th National Assembly, lawmakers approved the resolution on the 2026 socio-economic development plan. The plan sets an ambitious target: GDP growth of at least 10 per cent and GDP per capita of $5,400-$5,500 in 2026.
2026 carries particular weight, marking the first year of both the 2026-2030 five-year socio-economic plan and the holding of the 16th National Assembly, during which key leadership positions from the central to local levels will be elected. Vietnam aims to become an upper-middle income country, which is defined as having an annual income per capita of $4,495 to $13,935 by 2030, and a high-income country by 2045 under World Bank classifications. With these targets, analysts believe the country is well-positioned to lift average incomes nationwide by 2030.
Experts widely believe Vietnam could reach upper-middle income status within the next one or two years. The 2026-2030 period has also been identified by the Party and the government as pivotal to meeting the more ambitious goals set for 2045.
A 40-year reflection
Over the past few decades, Vietnam has routinely been placed among the ranks of developing and emerging economies with strong growth potential. But data from nearly 40 years (1985-2024) tell a more tempered story: since Doi Moi (Economic Renewal) in 1986, Vietnam’s average GDP growth has been 6.38 per cent. Remarkably, the country has never recorded annual growth of 10 per cent or higher. Even if the Asian Financial Crisis (1998-1999) and the Covid-19 pandemic (2020-2021) are set aside, the average growth rate since 1992, with foreign investment surging following the near-normalization of Vietnam-US diplomatic ties in 1995, stands at only 7.09 per cent.
These numbers suggest that even under relatively favorable global and regional conditions, and despite major growth catalysts in recent decades, such as strong inflows of FDI, WTO accession in 2007, a series of bilateral and multilateral trade agreements signed, the introduction of the Law on Enterprises in 2005, and ongoing institutional and legal reforms to ease constraints on the private sector, a central question lingers: What is Vietnam’s real, self-sustaining growth capacity?
A recent study by researchers at the Federal Reserve Bank of St. Louis in US, using data from around 100 countries and territories across different income levels, highlighted an important conclusion about the catch-up potential of poorer nations. Between 1960 and 1999, rich countries grew faster than poor ones. But from 2000 to 2019, the trend reversed: poorer countries grew more quickly than wealthier economies. This suggests that income convergence has been entirely feasible in the early decades of the 21st century. The World Bank reached a similar conclusion in a 2023 study comparing the pace at which poorer countries are catching up with the US.
Though economic growth or steady increases in income per capita do not fully reflect a country’s overall development, living standards, or levels of well-being, there is a strong correlation between the two variables. Put simply, for Vietnam to escape the middle-income trap and reach high-income status by 2045, just 20 years from now, it must sustain rapid and continuous growth over this period.
According to the World Bank’s 2025 “Vietnam Rising: Pathways to a High-Income Future” report: “Centered around an export-driven growth model and strong participation in global value chains, the country has enjoyed average annual per capita GDP growth of 5.1 per cent over the past four decades. Reaching high-income country (HIC) status by 2045 would require an even faster growth rate over the next two decades, accelerating to a sustained 6.0 per cent. Moreover, completing the transition from middle-income to high-income would mean that Vietnam would have to succeed where few others have. Only 34 countries and territories have transitioned to HIC since 1990, most of them through EU accession or natural resource windfalls.”
The report also noted that Vietnam’s impressive economic growth in recent decades has relied heavily on capital accumulation, which accounts for as much as 70 per cent of total growth, while labor and productivity have played more modest roles. However, Vietnam’s population is expected to age rapidly beginning in the 2040s, causing labor’s contribution to economic growth to shift from positive to negative. This presents a major challenge: Vietnam must transition to a new, more efficient growth model by using production inputs more effectively in order to achieve high and sustainable growth.
Experts argue that the decisive drivers for Vietnam in the coming period will be capital accumulation and faster growth of Total Factor Productivity (TFP), which averaged 0.9 per cent in the country over the past decade. To reach high-income status by 2045, assuming the current investment-to-GDP ratio (gross fixed capital formation) of 37 per cent remains unchanged and if demographic pressures are taken into account, Vietnam would need to achieve average TFP growth of 2 per cent. This is an ambitious target. But looking at successful regional examples such as South Korea and Singapore, both economies achieved substantial gains through productivity: 2.3 per cent for South Korea from 1990 to 2010, and 3.3 per cent for Singapore from 1970 to 1980. In that context, a 2 per cent TFP growth rate for Vietnam is entirely within reach.
Shaping the next era
At a recent high-level workshop entitled “Policy and Strategy Capabilities for Vietnam’s New Era” held at the National Economics University in Hanoi and co-organized with the United Nations Development Programme (UNDP), Professor Kenichi Ohno from GRIPS in Japan and a veteran policy advisor to developing countries worldwide, presented a keynote address outlining a new policy approach for Vietnam. He detailed the challenges the country has faced and highlighted lessons drawn from the successes of East Asian economies. Professor Ohno stressed that policy quality is the critical factor Vietnam must strengthen to learn, adapt, and improve.
He argued that weak policy design is the underlying cause of long-term growth problems, including the risk of falling into the middle-income trap or stagnating even after reaching high-income status. In Vietnam’s case, he placed particular emphasis on the need for effective sector-based policy packages, historically known as industrial policy.
Vietnam, despite its many regional strengths, still faces fragile growth foundations. The country lacks high-quality human resources in science, innovation, and high-tech industries and services. Productivity levels remain low compared with major ASEAN peers, and heavy dependence on FDI continues to limit Vietnam’s deeper integration into global supply chains.
On the institutional front, the World Bank report outlines five policy packages Vietnam should prioritize during this pivotal period. Institutional modernization, which is already underway, is considered essential to ensuring effective implementation of broader efforts to strengthen the private sector, build resilient infrastructure, improve workforce skills and adaptability, and ensure that all citizens benefit from the transition to high-income status.
Vietnam is entering a defining period in which rapid and sustainable growth is not merely an economic objective but a crucial requirement for achieving high-income status by 2045.
(*)Ms. Le Minh Phuong is from VinUni and a Member of the Economic Policy Network at the Association of Vietnamese Scientists and Experts (AVSE Global)
VET-Ms. Le Minh Phuong (*)
Hai Phong seeks investment for 58 land-use projects
The northern port city of Hai Phong is inviting interested investors to participate in 58 projects utilizing more than 4,000 ha of land across the city.
The initiative aims to develop new urban areas and logistics service centers.
Of the total, 55 projects covering approximately 3,743 ha are situated across 15 communes, wards, and special zones in eastern Hai Phong. While in the western part of the city, three projects occupying about 270 ha will be implemented within Hai Hung Commune.
Among the 58 projects in this investment call, 18 are dedicated to new urban development, three focus on rural housing, and two are for resettlement combined with social housing. There are also five urban renovation projects. The remaining portfolio includes urban infrastructure, healthcare, high-quality agriculture, transportation, commercial services, logistics hubs, and industrial parks.
Projects involving transportation infrastructure, industrial zones, and logistics centers require the largest land allocations. Notable projects in Hung Thang Commune include a seaport and logistics service complex (over 250 ha), the Tien Lang 2 Industrial Park Phase 1 (over 416 ha), and the Tien Lang 1 Industrial Park (over 596 ha). Additionally, the city is seeking investors for a 127-ha integrated resort, entertainment, and golf complex in Bach Dang Ward.
According to the City People’s Committee, these projects are scheduled for implementation during the 2026–2030 period.
Vneconomy-Nam Khánh
Vietnam, EU sign €50 mln deal to develop green and digital workforce
Vietnam’s Ministry of Education and Training and the European Union (EU) have signed a financing agreement for the Vietnam-EU Vocational Education and Training (VETVET) program, with a total budget exceeding €50 million (nearly $59 million).
The funding consists of €40 million from the EU, €10 million from the German Government, and €0.5 million from the French Government.
The VETVET program aims to enhance the quality, relevance, and accessibility of Vietnam's vocational education system. By doing so, it seeks to promote sustainable employment and entrepreneurship while building a skilled workforce capable of meeting the demands of the country’s green and digital transitions.
The program will be implemented across six key pillars: Enhancing the capacity of the Technical and Vocational Education and Training (TVET) system; Fostering cooperation with the business sector; Strengthening TVET management and quality assurance systems; Developing modern vocational training curricula; Building a communication ecosystem for the TVET sector; and Mobilizing businesses to participate in on-site corporate training.
Speaking at the signing ceremony, Mr. Rafael de Bustamante, Chargé d’Affaires of the EU Delegation to Vietnam, emphasized that this is a significant milestone. He noted that the agreement marks the result of joint efforts to equip the Vietnamese workforce with the essential skills required to achieve the nation's sustainable development goals.
The project specifically integrates green technology, renewable energy, innovation in the digital era, and sustainable industrial practices into the educational curriculum to ensure workers are prepared for the future economy.
Vneconomy-Bích Hằng
HCM City promotes cooperation with Japan in transport, urban development
Chairman of the Ho Chi Minh City People’s Committee Nguyen Van Duoc has proposed that Japan strengthen cooperation with the city in infrastructure, public transport, modern logistics, and smart city development.
The proposal was made during a meeting with Japanese Deputy Minister of Land, Infrastructure, Transport and Tourism Sasaki Hajime in Ho Chi Minh City on December 30.
Mr. Duoc said the city hopes to learn from Japan’s experience in developing metro systems, building public transport–oriented urban models, and improving the management and maintenance of urban infrastructure in line with international standards.
He also called on Japan to provide support in funding, technology transfer, and human resource training for urban transport and logistics projects, while creating favorable conditions for Japanese enterprises to participate more deeply in Ho Chi Minh City’s infrastructure and urban development projects in the near future.
For his part, Mr. Sasaki affirmed that Japan attaches great importance to its cooperative ties with Vietnam in general and Ho Chi Minh City in particular. He said Japan is ready to enhance experience sharing, provide technical assistance, and promote substantive cooperation projects in transport, infrastructure, and urban development.
VnEconomy-Thanh Thủy
Public-private partnership investment encouraged
The legal framework governing investment under the public-private partnership (PPP) model underwent significant changes in 2024-2025, marking an important shift that broadened the range of eligible sectors, expanded the authority of local governments, and introduced new risk-sharing mechanisms. The overhaul is expected to create an environment more conducive to private-sector participation in national infrastructure development.
At the recent “PPP Dialogue - Partner, Innovate, Deliver”, co-organized by the Ministry of Finance (MoF) and the Asian Development Bank (ADB), Ms. Nguyen Thi Linh Giang, Chief of the PPP Office under the Public Procurement Agency at the MoF, said the latest changes to the Law on Public-Private Partnership Investment are not merely legislative technicalities but also reflect a shift in the underlying philosophy of PPP operations, paving the way for greater application than previously.
Broader pathway
Under the previous Law on Public-Private Partnership Investment, projects were largely confined to traditional infrastructure such as roads, waste treatment, water supply and drainage, and energy. In reality, however, many areas of public investment have a strong demand for private capital, including information technology, digital transformation, science and technology, healthcare, education, digital infrastructure, and emerging public services.
In the amended Law, all public-investment sectors may now adopt the PPP model. This is seen as a major step towards removing longstanding constraints that limited PPPs to conventional infrastructure.
Another notable shift is the removal of the minimum total investment requirement. Previously, PPP projects had to be valued at VND200 billion ($7.69 million) or more, or VND100 billion ($3.85 million) in disadvantaged localities, effectively shutting out many small and medium-scale proposals. The new Law eliminates this threshold entirely, giving ministries, agencies, and particularly local governments greater autonomy in assessing feasibility and selecting projects. As a result, PPP becomes a more flexible tool, suitable not only for large works but also for digital transformation initiatives, data infrastructure, high-tech applications, and mid-scale urban projects.
The new Law also authorizes local governments to appraise, approve, and sign contracts for Group B and C projects. Greater local authority is expected to accelerate implementation and improve responsiveness to urgent infrastructure needs.
One procedural reform welcomed by investors is the removal of the investment policy approval step for several project categories. According to Ms. Giang, this exemption now applies to projects without State capital; science and technology and innovation projects; projects applying high or new technology; OM (Operations and Maintenance) contracts; land payment build-transfer (BT) projects; and BT projects requiring no payment. Eliminating this initial step substantially shortens preparation time, particularly for fast-moving technology projects.
Regulations on State capital in PPP projects have also been made more flexible. While the general cap remains 50 per cent of total investment, the amended law permits this ratio to rise to as much as 70 per cent in certain cases, such as projects where land clearance costs account for more than half of the total investment, those in disadvantaged areas, or those requiring high-technology transfer. This adjustment enhances financial feasibility for projects with weak early-stage cash flows.
One of the most significant advancements is a more refined revenue risk-sharing mechanism. In cases of revenue shortfall, the government will share up to 50 per cent of the deficit when actual revenue falls between below 90 per cent and below 75 per cent of the financial plan. Conversely, investors must share 50 per cent of excess revenue when actual revenue ranges from above 110 per cent to 125 per cent of projections. The framework aims to improve stability and reduce financial risk by defining clear limits for both sides.
The amended Law also broadens the range of PPP contract types, adding BT contracts payable in cash, land, or without payment. It also allows PPP project companies to undertake off-contract business activities, provided they maintain independent accounting and secure lender approval; a move designed to increase flexibility and investor appeal.
With wide-ranging reforms spanning procedures, eligible sectors, and financial mechanisms, the amended Law on Public-Private Partnership Investment aims to create a more transparent, stable, and private-sector-friendly investment environment - a key condition for mobilizing private resources for national infrastructure development in the years to come.
Challenges from reforms
Though the PPP legal framework has been significantly overhauled, feedback from regulators and the business community indicates that implementation still faces major hurdles, from long-term credit constraints and early-stage cash flow pressures to slow responses from government agencies and lingering uncertainty over risk-management mechanisms. Private investors, in particular, are watching closely to see whether the latest reforms will translate into real improvements on the ground.
A representative from the Deo Ca Group said long-term credit remains the biggest bottleneck. Build-operate-transfer (BOT) transport projects often require 20-30 years to recover capital, yet low initial traffic volumes restrict early cash flow. Banks, facing substantial risk and the prospect of economic or social volatility over such long horizons, remain highly cautious. Delays in responses from State bodies on key procedures have also stretched project timelines and further strained investor finances.
The Group proposed three solutions: improving access to credit; issuing dedicated credit policies for PPP projects; and, most importantly, ensuring that risk-sharing mechanisms are implemented consistently in practice, rather than left vague or unused.
International investors, meanwhile, are most concerned about contract flexibility over the life of a project. With agreements running for decades, exchange-rate swings, economic cycles, and force majeure events, from pandemics to extreme weather, can all affect project viability. Investors say they want mechanisms that allow government and businesses to resolve issues quickly, warning that “each day of delay increases the risk of losses.”
Meanwhile, a representative from a major Vietnamese bank said lenders evaluate PPP proposals based on three criteria: investor capacity, the financial model, and risk-mitigation measures. These remain central considerations for domestic banks reviewing PPP loan applications. Transport projects are often high-risk because key assumptions, such as local GDP growth or traffic volumes, may shift significantly over time. Banks therefore need stable, transparent baseline assumptions and detailed guidance on risk-sharing to build confidence in their lending decisions.
Speakers also highlighted the absence of a secondary financial market. Currently, PPP loans sit entirely on banks’ balance sheets, with no mechanism to trade or transfer this debt; a situation that creates long-term pressure on the credit system. As the volume of PPP projects rises, the lack of a secondary market could hinder banks’ capacity to extend new loans.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said the establishment of a derivatives or secondary market is increasingly necessary to help banks manage credit for PPP projects more effectively.
To improve transparency, he also called for a clearer, more independent legal framework for BT contracts, especially those involving land payments. Determining the value of land used for payment is the biggest challenge, he said, as it hinges on the Land Law and a series of decrees on land valuation. He urged stronger coordination between the MoF and the Ministry of Agriculture and Environment to clarify land-valuation principles and make BT contracts more workable in practice.
VET-Huynh Dung
Construction begins on $7.6 mln medical center in Cao Bang
A groundbreaking ceremony for the Bao Lac Medical Center in the northern mountainous province of Cao Bang was held on December 29, 2025.
The project is a joint effort by the Ministry of National Defense, Army Corps 20, and the provincial government.
The project has a total investment of VND200 billion (nearly $7.6 million) and a capacity of 110 beds. Once operational, it will provide medical examination, treatment, and healthcare services for over 80,000 residents in the region.
Speaking at the ceremony, General Phan Van Giang, Politburo member and Minister of National Defense, emphasized that the Bao Lac Medical Center is a key project within the framework of the 85th anniversary of President Ho Chi Minh’s first return to Vietnam, after 30 years since he left the country in 1911, to lead the revolution for the national independence (January 28, 1941 – January 28, 2026). It also serves as a major initiative to welcome the 14th National Party Congress.
The General directed that the construction must be carried out at "great speed" while maintaining "sustainable quality." He strictly ordered that no loss, waste, or corruption occur during the process. The project aims for completion by November 20, 2026, ahead of the original schedule.
According to Mr. Le Hai Hoa, Chairman of the Provincial People’s Committee, the medical center is of vital importance for healthcare in highland and border areas.
Upon completion, the Center will significantly improve the quality of healthcare services for local and neighboring populations. It will strengthen medical capacity in border regions, enhance the ability to respond to natural disasters and epidemics, and narrow the gap in healthcare access between different regions—ultimately contributing to the long-term stability and improved quality of life for the local people.
Vneconomy-Song Hà
Vietnam ranks among top performers in WB’s Business Ready 2025 report
Vietnam achieved a top-tier global ranking in operational efficiency, placing 16th among 101 economies with a score of 70.44 points in the World Bank's Business Ready 2025 report released on December 30, though challenges remain in other assessment areas, according to a report from the Vietnam News Agency.
The Southeast Asian nation secured its position in the first quintile – representing the top 20% globally – in the operational efficiency pillar, which measures how easily businesses can comply with regulations and use public services.
Vietnam joined 29 economies achieving top-quintile performance in one to three business areas.
According to the report, the country demonstrated exceptional strength in several areas, particularly utility services, where it scored 90.03 points – among the highest globally – and financial services at 80.32 points. Vietnam also performed well in business entry (76.62), labour (69.63), and international trade (62.48).
However, the nation scored in the third quintile for both regulatory framework (67.03 points) and public services (53.93 points), indicating substantial room for improvement in these areas.
Significant weaknesses emerged in business insolvency, where Vietnam scored only 35.66 points, and market competition at 47.61 points. These scores reveal critical gaps requiring targeted reforms to strengthen the business environment.
The World Bank noted that economies with a young workforce, including Vietnam, generally score lower across all assessment pillars compared to those with mature populations. The report emphasised that such economies face particular challenges in creating business environments conducive to job creation for expanding working-age populations.
VNA-Van Nguyen
New policies take effect from January 2026
Many new regulations on agricultural land use tax, minimum regional wage and technology transfer for railway projects have been effective since January 1, 2026, according to the Government News.
Decree No. 292/2025/ND-CP dated November 6, 2025 guides the implementation of the National Assembly's Resolution No. 216/2025/QH15 dated June 26, 2026 on extension of deadline for payment of agricultural land use tax.
Under the new Decree of the Government, agricultural land use tax shall be exempted for land areas designated for research and experimental production; for land areas used for annual crops; and for salt production. Agricultural land use tax shall also be exempted for poor households
According to the Government's Decree No. 293/2025/ND-CP, dated November 10, 2025, minimum monthly regional wages for workers working under labor contracts shall be increased.
Accordingly, the monthly minimum wage in region I shall be increased by VND350,000 to VND5,310,000; in region II by VND320,000 to VND4,730,000; in region III by VND280,000 to VND4,140,000; and in region IV by VND250,000 to VND3,700,000.
Meanwhile, the hourly minimum wages shall be increased to VND25,500 from VND23,800 for region I; to VND22,700 from VND21,200 for region II; to VND20,000 from VND18,600 for region III; and to VND17,800 from VND16,600 for region IV.
The technology transfer for railway projects will be regulated by the Government in its Decree No. 319/2025/ND-CP dated December 12, 2025.
Under the decree, organizations, including enterprises, will be allowed to receive technology transfer for railway projects, if they meet the following conditions:
- They have been established in accordance with Vietnamese legislation;
- Their business lines must be compatible with transferred technologies;
- They must have enough facilities to receive, install transferred technologies;
- They shall have financial capacity to cover costs for receiving transferred technologies;
- They shall have staff capable of mastering transferred technologies;
- They shall have to commit to receiving transferred technologies; and
- They shall have experience in global technology transfer.
VGP-Van Nguyen
Ho Chi Minh City to develop in the digital era
With more than 14 million residents and accounting for nearly 25 per cent of national GDP, Ho Chi Minh City remains Vietnam’s economic locomotive and a major center of commerce, finance, industry, education, healthcare, and international trade. But the stature of an “international metropolis” is defined not only by population size or economic weight but also by the quality of growth, connectivity, governance, innovation, and the overall living and working environment.
Speaking at CEO 500 - Tea Connect, part of the Autumn Economic Forum 2025, Secretary of the Ho Chi Minh City Party Committee Tran Luu Quang said the southern city, following its recent administrative merger, is entering a new stage of development with a broader vision and bold ambitions to become a modern, dynamic, and livable urban center with global competitiveness.
Blueprint for dual transformation
According to Mr. Quang, the city is rolling out a strategy to re-organize its development space and shape a multi-polar, multi-center urban model built around three growth zones and a series of economic corridors.
The plan is anchored in five strategic pillars: high-tech industry and innovation, driven by digital technology, semiconductors and big data; logistics and free trade connected to seaports, airports, and free-trade zones; the development of an International Financial Center (IFC); tourism, and the cultural industry, generating added value from creative culture, the arts, and international events; and education, healthcare, and science and technology aligned with regional and global standards.
The city, however, faces no shortage of challenges. Governance pressures continue to mount in a mega-city with rapid economic expansion. Financial resources, technology, infrastructure, and high-quality human capital remain insufficient, while logistics and transport networks still require substantial upgrades. At the same time, improving public services, accelerating administrative reform, strengthening digital governance, and competing with rising regional economic hubs are becoming increasingly urgent.
For that reason, Mr. Quang stressed that internal reforms must go hand-in-hand with deeper cooperation and stronger engagement from experts, scholars, and businesses both at home and abroad. A city with global ambitions, he noted, must be built on extensive partnerships, international knowledge networks, and a dynamic business ecosystem fit for the digital age.
Mr. Pham Binh An, Deputy Director of the Ho Chi Minh City Institute for Development Studies, said the city has been selected as a case study for integrating digital transformation and green transition, known as the “dual transformation”. Ho Chi Minh City aims to become a mega-city by 2050 and a leading regional hub for the green economy with low-carbon development. The strategy seeks to harness digital technologies to address environmental issues while advancing sustainable green growth.
The dual transformation framework rests on three pillars. The first is the Twin Data Ecosystem, which connects environmental, energy, and urban data to improve the accuracy and timeliness of policy decisions. The second is the Two-tier Green Governance System, designed to strengthen governance capacity from the city level down to districts. And the third is the development of Green Digital Citizens, encouraging residents to embrace green initiatives and adopt digital tools in everyday life.
Despite institutional and infrastructure hurdles, Ho Chi Minh City has positioned itself as a reliable partner, working with businesses, international organizations, and local communities to shape a greener, smarter, and more prosperous future for both the city and the region.
Where finance meets opportunity
Ho Chi Minh City is increasingly emerging as a magnet for some of the world’s largest technology and financial corporations. Many of them have signaled strong interest in deeper cooperation with Vietnam, arguing that the city has the right conditions to evolve into a new-generation IFC in Asia.
Mr. Yang Peng, CEO of Ant International, said he sees clear potential for Ho Chi Minh City to take the lead in three future-facing financial segments: trade finance, small and medium-sized enterprises (SME) finance, and on-chain finance built on digital assets. If the city can capitalize on technologies such as general AI, blockchain, and digital identity, he noted, its IFC could become a regional trade finance hub not only for Vietnam but for Southeast Asia. Ant International is considering making Ho Chi Minh City its “home base” for regional digitalization programs.
Meanwhile, international capital markets are also expressing interest. Mr. Will Ross, Chief Marketing and Distribution Officer at Dragon Capital, said the proposed IFC could help unlock long-term capital flows, lower Vietnam’s cost of capital, and increase the contribution of domestic investors to the country’s development.
In his address, Prime Minister Pham Minh Chinh thanked businesses and investors for their cooperation, support, and valuable contributions, stressing the principle of shared benefits and shared risks. He reiterated that Vietnam’s immediate priorities are to safeguard macro-economic stability, control inflation, maintain key economic balances, and promote growth. In this effort, he said, international partners, including investors and enterprises, continue to play an important role.
The Prime Minister added that he hopes Ho Chi Minh City will continue to innovate, strengthen self-reliance, and draw lessons from both achievements and setbacks, enabling it to remain Vietnam’s economic engine.
Designing the city of tomorrow
Experts believe Ho Chi Minh City’s bid to become a smart, globally-competitive metropolis will rely not only on advanced technology but also on strong governance, coherent coordination, and long-term partnerships with the private sector.
Professor Vu Minh Khuong from the Lee Kuan Yew School of Public Policy at the National University of Singapore noted that successful smart cities begin from the “upstream” - a clear governance philosophy and institutional design - rather than scattered technological fixes. The true measure of a smart government, he said, is its ability to understand and meet citizens’ needs. When residents trust their government, when institutions operate cohesively, and when people feel proud of their city, the foundation of a smart governance ecosystem naturally takes shape.
He emphasized that an effective system must operate across three levels. The “midstream” requires an integrated data system, a central coordinating body acting as a “conductor,” and a transparent, problem-driven regulatory framework. The “downstream,” where citizens directly benefit, demands fully online public services, shared digital platforms, and clear accountability for each application or business proposal.
Mr. Warrick Cleine, Chairman and CEO of KPMG Vietnam and Cambodia, added that smart-city development rests on two core principles: participation and intelligence - each essential for building a productive partnership between government and the business community. He highlighted four drivers of success: inclusiveness through open public-private dialogue; long-term ambition aligned with Vietnam’s 2045 development goals; intelligence in action, especially through innovation and strategic investment in AI; and sustainability, which requires decade-long commitments rather than short budget cycles.
He noted that Vietnam is already taking meaningful steps, from developing a National Data Center to integrating AI into urban management. But real progress, he argued, will depend on aligning public and private-sector strategies and maintaining a shared vision for a smart, green and resilient city.
Professor Khuong and Mr. Cleine underscored a common message: Ho Chi Minh City’s smart city future will be shaped not simply by adopting new technologies but by building strong institutions, fostering collaboration, and ensuring that every innovation ultimately improves the lives of its residents.
VET-Hai Van Pham Vinh
For expansion of export markets
Exports have remained a rare bright spot for Vietnam’s economy in recent years, according to the Ministry of Industry and Trade (MoIT). In the first ten months of 2025, Vietnam posted a trade surplus of nearly $20 billion, with total trade turnover surpassing $762 billion, up 17.4 per cent year-on-year; a strong sign of the economy’s resilience and its capacity to expand into new markets in the months ahead.
Despite record-breaking export figures, however, regulators and experts argue that the value captured by Vietnamese enterprises remains limited, with businesses still circling a handful of easy markets. They believe Vietnam needs to revamp its export model, accelerate the green transition, upgrade value chains, make better use of its free trade agreements (FTAs), and strengthen legal and tariff risk management - all essential steps for Vietnamese enterprises looking to “Go Global”.
Raising Vietnam’s global game
At the “Vietnam Export Promotion Forum 2025: Winning International Markets”, Mr. Vu Ba Phu, Director General of the Trade Promotion Agency (Vietrade) at the MoIT, said the number of enterprises exporting directly remains modest, and Vietnam still falls short in meeting international standards, brand building, supply chain management, and digital commerce. Major markets with strong potential, including the US, the EU, Japan, and the Middle East and Africa, remain far from fully tapped.
To expand Vietnam’s global footprint, integrate more deeply into value chains, and elevate the national brand, speakers maintained that companies must innovate and accelerate both digital and green transformations to optimize supply chains and enhance the value of exported goods.
Mr. Tran Huy Hoan, Senior Officer at MoIT’s Planning and Finance Department, said Vietnam must reposition itself in global supply chains by moving into product research and design and connecting directly with customers - bypassing intermediaries, much like successful Chinese companies. He urged businesses to view global markets not only as destinations for exports but also as sources of resources and investment opportunities.
Companies, he continued, should shift from passive participation (low-value assembly) to active engagement in RD, design, and direct buyer relationships, while the government strengthens not only trade agreements but also investment and investment protection frameworks to support overseas expansion.
Mr. Nguyen Manh Ha, Director of AHT Tech, said Vietnam lacks the complete ecosystem needed for successful global expansion, namely skilled talent, capital, and strong support in market connections. To overcome this, he counseled greater government assistance in helping firms reach end-users and understand local cultures and business models. Companies, he added, should be ready to hire local talent abroad to guide and support entry into new markets.
“Finance is necessary, but people and a mindset for connection are decisive,” according to Mr. Nguyen Quoc Khanh, Executive Director of Research and Development at Vinamilk. When facing technical challenges, Vinamilk leverages not only internal capabilities but also external expertise through research partnerships and collaboration with multinational corporations. Environmental standards in Europe and tariffs in the US, he noted, pose challenges but also create opportunities to strengthen brand value.
Ms. Doan Thi Bich Ngoc, CEO of Canifa, called on the government to focus on three pillars to support Vietnamese companies going global: trade promotion; tax and administrative reform; and unlocking green finance. “Green transition demands patience and significant financial resources,” she said. “If sustainable development is a priority, capital must be channeled into these core areas so that businesses can invest long term, from research through to finished products.”
Turning agreements into advantages
Speakers at the forum broadly agreed on one point: with 17 FTAs now in force, Vietnam has a rare opening to push its “Go Global” agenda. Yet according to Mr. Ngo Chung Khanh, Deputy Director General of the Multilateral Trade Policy Department at MoIT, businesses are still far from fully capitalizing on these agreements. Utilization rates remain modest, at nearly 10 per cent for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), around 38 per cent for the UK-Vietnam FTA (UKVFTA), and about 35 per cent for the EU-Vietnam FTA (EUVFTA).
The reason, he explained, is a lingering mindset of sticking to what is “near and easy.” Many firms remain content exporting a few dozen containers a year or achieving steady but limited revenue, believing “that’s enough.” This mindset keeps companies locked into familiar markets and stifles innovation. To compete globally, Mr. Khanh urged businesses to be willing to play the “Go Global” game and stop being selective. Fear of difficult markets or substantial barriers, he warned, has unnecessarily held back many capable companies.
To break into major destinations such as the EU via the EUVFTA, he said, companies must “think big”, with brand building as the ultimate goal. That requires a detailed strategy - what businesses will do, and how central and local authorities will support them. Every step must be precise and actionable.
Mr. Khanh also emphasized the need for dedicated FTA teams inside companies, but findings from the FTA Index show that not a single Vietnamese enterprise has such a unit. As a result, they often have nowhere to turn when confronted with foreign market standards. “Businesses are willing to spend heavily on sales and marketing, but hesitate to pay far less for experts or consultants who can help them take advantage of FTAs,” he said.
He added that connections are the most critical factor. The MoIT is proposing an “FTA Ecosystem” that links all stakeholders - domestically and with FTA partners - to help businesses use the agreements more effectively.
Mr. Dan Martin, Assistant Manager of International Business Advisory at Dezan Shira Associates, said Vietnam’s ambitious FTA network is underutilized because many small and medium-sized enterprises (SMEs) lack the systems, expertise, and capital to benefit. To tap into these agreements, companies must upgrade sourcing practices, traceability, and record-keeping. Compliance, he argued, should be seen as a competitive advantage, not a burden. He also stressed the need for stronger collaboration between the government, business associations, and foreign-invested enterprises (FIEs) to turn FTAs from policy documents into practical gains.
He outlined three core factors for Vietnamese companies seeking to “Go Global”. First, quality must outweigh cost. Vietnam’s next development phase depends on trustworthiness and reliability rather than cheap labor. Foreign investors prioritize safety, transparency, and consistent quality - the key to entering global supply chains.
Second, people matter as much as technology. Businesses must invest in training to turn talent into applied skills, from repair engineers to compliance-minded managers, to fill widening technical gaps.
Finally, Vietnam must strengthen its local platforms. Exports remain heavily dependent on FIEs, and low local sourcing is a long-term vulnerability. Going global must start at home, by helping local SMEs grow alongside FIEs through faster certification and supplier development programs.
VET-Song Ha