In the first three months of 2025, Vietnam ranked second among the top 10 textile exporters to the US. 

The United States remains a key market for Vietnamese textiles and footwear, according to Mr. Do Ngoc Hung, Commercial Counselor of the Vietnam Trade Office in the US.

Recently, President Donald Trump expressed agreement with US Treasury Secretary Scott Bessent’s statement that the US does not necessarily need a booming textile industry. He noted that textile products like shirts and socks can be efficiently produced elsewhere, while the US focuses on manufacturing chips, computers, tanks, and ships.

"Thus, the US remains a promising market with significant opportunities for Vietnamese textile and footwear exports," Mr. Hung emphasized.

In the first three months of 2025, the top 10 textile exporters to the US were: China, Vietnam, India, Bangladesh, Mexico, Indonesia, Cambodia, Pakistan, Italy, and Turkey.

Similarly, for footwear exports, Vietnam ranked second among the top 10 exporters to the U.S., including  China, Vietnam, Indonesia, Italy, Cambodia, Mexico, Bangladesh, Germany, India, and Spain.

To capitalize on these opportunities and enhance exports, Mr. Hung urged the Ministry of Industry and Trade and relevant agencies to continue negotiations for a stable trade mechanism to ensure Vietnamese businesses—especially those in textiles and footwear—can remain proactive in production and export activities.

He also emphasized the importance of regulatory compliance, recommending mechanisms to guide businesses in meeting US standards on origin, sustainable production, and responsible manufacturing.

Local governments were encouraged to support enterprises in improving competitiveness and investing in sustainable practices, while industry associations should proactively collaborate with US trade organizations to update import regulations and advocate for policies facilitating market access.

Additionally, Mr. Hung called for enhanced trade promotion efforts, including research and organizing targeted trade activities, ensuring Vietnam’s continued presence in the US market through international fairs and specialized exhibitions.

-Vũ Khuê

Vietnam and Japan continue to strengthen their comprehensive cooperation, with science and technology, innovation, and high-quality human resource development designated as a new strategic pillar.

Deputy Prime Minister Nguyen Chi Dung has urged Vietnam and Japan to deepen cooperation in key technological fields, including semiconductors, artificial intelligence, quantum computing, blockchain, robotics, cloud computing, low-earth orbit satellites, 5G/6G infrastructure, and advanced biotechnology.

During a recent meeting with the Vietnamese scientific community in Japan, Deputy PM Dung outlined a series of strategic priorities aimed at leveraging the intellectual potential of overseas Vietnamese, accelerating science and technology development, fostering innovation, and driving digital transformation in Vietnam.

He praised the scientific community in Japan, which includes more than 70 businesses and 5,000 IT engineers from Vietnam, emphasizing their role as a critical bridge between the two nations, generating synergies and delivering practical benefits to both sides.

The Deputy PM encouraged Vietnamese scientists in Japan to actively strengthen the Vietnam innovation network in Japan, reinforcing connections with Vietnamese partners, promoting investment by Japanese enterprises in Vietnam—particularly in high-tech fields, and fostering closer collaborations between Japanese research institutes, universities, and businesses. He also called for greater contributions toward training high-quality human resources to support Vietnam's development.

Additionally, the Deputy PM stressed the importance of developing specific cooperation programs focused on research and development, supporting startups in Japan, enhancing student exchange initiatives, increasing the number and quality of scholarships, and establishing a shared platform to connect scientists and research groups between the two countries. This initiative aims to scale successful models across the Vietnamese community globally and within Vietnam itself.

Vietnam and Japan continue to strengthen their comprehensive cooperation, with science and technology, innovation, and high-quality human resource development designated as a new strategic pillar, as stated in the joint declaration between the two Prime Ministers in April 2025.

-Bạch Dương

The project invested by the WHA Industrial Zone Thanh Hoa JSC of Thailand’s WHA Group.

Construction of WHA Smart Technology 2 Industrial Park (IP) in central Thanh Hoa province is scheduled to start in October this year, according to Mr. Nguyen Tien Hieu, Head of the Management Board of the Nghi Son Economic Zone and IPs in Thanh Hoa.

Covering 174.9ha in Thieu Hoa district, the project has an estimated investment capital of VND1.450 trillion ($55.5 million).

The Management Board of the Nghi Son Economic Zone and IPs in Thanh Hoa has recently held a working session with authorities of Thieu Hoa district and the investor – the WHA Industrial Zone Thanh Hoa JSC of Thailand’s WHA Group – to accelerate the construction of the project.

Authorities of Thieu Hoa district is promoting site clearance for the project and plans to hand over the land to the investor before August 31, 2025.

 

 

-Nguyễn Thuấn

The PMI of Vietnam in May increasing to 49.8, signalling a near-stabilization business condition in the sector, according to the SP Globa.

The SP Global Vietnam Manufacturing Purchasing Managers' Index (PMI) posted below the 50.0 no-change mark for the second consecutive month in May, but rose to 49.8 from 45.6 in April to signal a near-stabilization of business condition in the sector, according to the latest report released by the SP Global on June 2.

As was the case in April, new orders decreased during May, with survey respondents linking the latest fall to tariffs and subdued market demand. The impact on demand was most keenly felt in export markets, with new business from abroad declining at a much faster pace than total new orders. The fall in new export orders was broadly similar to that seen in April, while the reduction in total new business was softer than in the previous month.

While new orders continued to fall, output returned to growth in May following a decline in April. Greater stability around tariff policies reportedly helped to support the renewed rise in production, while capacity improvements were also mentioned.

In a similar vein to the trend in production, business confidence improved in May amid more stable tariff policies.

 

-Mạnh Đức

The future of Vietnam’s coastal tourism lies not just in discovering new destinations but in applying hard-earned lessons to boost hidden strengths and create destinations that are responsive, resilient, and relevant.

With more than 3,260 km of coastline stretching from north to south and over 4,000 islands and reefs, Vietnam boasts countless stunning beaches, from the powdery white sands of Phu Quoc Island to the crystal-clear waters of Nha Trang. Yet, in the World’s 50 Best Beaches 2025 rankings, as voted on by more than 1,000 travel professionals, not a single Vietnamese beach made the cut. Meanwhile, neighboring countries like Thailand and the Philippines were proudly represented by names such as Bang Bao Beach and Entalula Beach.

This quiet omission has sparked more than curiosity; it has ignited a wave of reflection among Vietnam’s hoteliers, destination marketers, and tourism strategists on whether Vietnam’s beaches are simply under-recognized or if there are other reasons.

Hidden strength

While neighboring countries like Thailand, Indonesia, and the Philippines have successfully etched their coastlines into the hearts and Instagram feeds of global travelers, Vietnam’s story remains largely untold. And it’s not because the country lacks the beauty or the charm. “Vietnam, in terms of the quality of its beaches, is outstanding - absolutely on the same line as Malaysia, Thailand, and other countries,” said Mr. Martin Koerner, Group Commercial Director at The Anam. And yet, global travelers and rankings often overlook Vietnam’s coastline.

The issue, he continued, isn’t the product, it’s the packaging. Despite the country’s breathtaking coastal assets, Vietnam lacks a robust and consistent international tourism marketing presence.

Having just returned from ITB Berlin, the world’s largest travel trade fair, he highlighted a glaring gap: while other countries have teams abroad educating agents and tour operators, Vietnam does not. “Many destinations have offices in the UK, the US, Germany, or Switzerland,” he said. “They do events, they explain when to travel, what’s interesting, what the good beaches are. Vietnam doesn’t do that.”

This lack of presence abroad results in a branding vacuum that impacts traveler decision-making and market visibility. “Vietnam is still a lesser-known destination, especially when we look at Southeast Asia and the various beaches we are competing with, like in Bali, Thailand, and Boracay,” said Mr. Louis Walters, Managing Director of the Sailing Club Leisure Group. “They have fantastic recognition.”

But marketing isn’t the only hurdle. Mr. Walters also pointed to infrastructure challenges that impact the visitor experience. “Infrastructure in Vietnam, especially in beach destinations, is still relatively new,” he said. Taking Cam Ranh as an example, he said it’s going to be fantastic five years from now, maybe even sooner. But right now, while a number of resorts are open, many are still under construction.

Mr. Andre Pierre Gentzsch, Complex General Manager at Furama Resort Danang, added that the beaches in Vietnam are beautiful, “but we do not have distinctive beaches.” What’s needed, he emphasized, is creativity and curation from hoteliers and destination marketers.

Together, these voices underscore a shared belief: Vietnam’s beach tourism has all the natural ingredients to rival the best in the world, but unlocking that potential will require better branding, stronger infrastructure, and a more distinctive narrative.

Sustainability-first thinking

As Vietnam continues to expand its tourism footprint, sustainability and strategic planning are emerging not just as industry buzzwords but as critical pillars for long-term success. While destinations like Phu Quoc Island and Cam Ranh still face challenges in infrastructure and policy alignment, experts agree that the potential for meaningful transformation is immense.

For Mr. Adam Riley, Head of Hospitality at the BIM Group, Phu Quoc Island stands at a critical juncture. He has observed that when speaking to General Managers at top-tier hotels like the Regent, the InterContinental, and the Park Hyatt, “the first thing they say is it all comes back to sustainability.” This concern isn’t theoretical, it’s rooted in real customer expectations and operational priorities.

But realizing this vision requires more than ambition. It demands coordination between local authorities, owners, operators, and staff. He noted that the BIM Group is already exploring partnerships with organizations like The Ocean Cleanup to bring innovative, ocean-friendly waste solutions to the island, including technologies like the Interceptor - a floating system designed to remove plastic pollution from waterways.

This call for collective action was echoed by Mr. Manuel Ferriol Argent, General Manager at Melia Serenity Cam Ranh, who believes unlocking Vietnam’s full tourism potential starts with public sector leadership. “It all starts and ends for me with government and expenditure,” he said. “Without stronger investment in infrastructure, promotion, and policy frameworks, the private sector’s efforts risk stalling.” He also pointed out the urgency of government support in turning Cam Ranh’s scenic coastline into a globally-competitive destination.

Da Nang, meanwhile, offers a compelling example of what’s possible when development is pursued with strategic vision. According to Mr. Mario Mendis, General Manager of Fusion Resort Villas Danang, the city has undergone a remarkable transformation over the past decade. Crucially, he emphasized the social sustainability behind that success.

Taken together, these insights suggest that Vietnam’s future in tourism lies not in overdevelopment, but in smart, sustainable strategies that integrate environmental responsibility, public-private collaboration, and long-term community value.

What the market really wants

Vietnam’s booming coastal hospitality sector is approaching a critical moment of reflection. As developers race to secure beachfront parcels, industry voices are asking an urgent question: Are we building what the market really wants? Do we need more places like Cam Ranh, with multiple hotel developments and long single strips of beaches? Or do we need more places like Mui Ne, with small hotels and quirky little FB spots and more eclectic things along the beach?

Mr. Walters believes the answer lies in balance and segmentation. “I think there’s room in the market for both,” he said. “Cam Ranh, with its big hotels, massive inventory, and proximity to the airport, speaks to a more luxurious, upper-end market. Mui Ne, on the other hand, with smaller resorts and quirky FB offerings, speaks more to expats and adventure seekers.”

This duality reflects Vietnam’s unique positioning in regional tourism. Destinations like Mui Ne are now just two and a half hours from Ho Chi Minh City thanks to expressway upgrades, giving rise to weekend escapes and lifestyle-driven tourism. Meanwhile, larger-scale developments in Cam Ranh are courting global travelers with multi-outlet resorts, spas, and children’s clubs.

But building for scale isn’t always the answer. Mr. Riley shared an interesting tale from Phu Quoc Island. “We were worried when a coastal road was built in front of our resort,” he remembered. “But it turned out to be the best thing to happen to us. The traffic and people coming through our property increased dramatically. Sometimes it’s the left-field decisions that have the biggest impact.”

Mr. Walters emphasized the importance of aligning product type with traveler, particularly when considering new frontiers like Quy Nhon and Phu Yen.

Still, some industry leaders urge restraint. “Can we finish what we started in Vietnam before looking elsewhere?” Mr. Argent asked. “Let’s perfect what we’ve got, and grow Phu Quoc Island correctly. Make Vietnam the place to go.”

Mr. Koerner echoed this long-view strategy. “We invested in Cam Ranh when it was still underdeveloped,” he said. “Now, with Fusion, JW Marriott, and others, it has grown into a proper destination. It takes time, but once the hotels are there, flights follow. First charter flights, then scheduled flights.”

What the market wants, then, isn’t one-size-fits-all. Travelers crave authenticity, variety, and accessibility. Developers must embrace that complexity, not only in design and amenities but also in master planning and timing.

As Vietnam opens new chapters in its coastal tourism, the winners will be those who listen closely, not just to the land or their spreadsheets but to the evolving voice of the market itself.

-Linh Tong

In its latest report “Vietnam 2045 – Breaking Through Institutions for a High-Income Future,” the bank emphasizes the central role of institutional reforms in ensuring sustainable growth.

The World Bank (WB) has released its report “Vietnam 2045 – Breaking Through Institutions for a High-Income Future,” recommending Vietnam to do more to escape middle-income trap.

The report urged Vietnam to take urgent action to adapt to climate change, in addition to its policy recommendations to improve public investment efficiency, strengthen accountability, and enhance the legal framework.

In the report, the WB emphasizes the central role of institutional reforms in ensuring sustainable growth, saying that to maintain rapid growth and achieve its ambitious development goal, Vietnam must deepen the sweeping institutional reforms that are underway, strengthen the legal and regulatory environment, and improve both the scale and quality of public investment.

International experience shows that countries that have escaped the middle-income trap and reached high-income status have done so by continuously improving the quality of their institutions, according to the WB.

Ms. Mariam J. Sherman, World Bank Director for Vietnam, Cambodia, and Laos was quoted by the Vietnam News Agency as saying that “Vietnam’s ambition to become a high-income country by 2045 has brought renewed focus on institutions as enablers of sustained growth”. She added that recent efforts show commitment, but achieving this goal will require even bolder reforms - an ‘institutional big push’ - to unlock the private sector’s potential to drive growth and create quality jobs for its people.

In addition, administrative reforms, greater accountability, more autonomy, and better coordination across localities are the key to improving the business environment and strengthening subnational governance. The WB also highlights the need for Vietnam to build an efficient and accountable civil service - one that is right-sized, better paid, and backed by stronger institutions for due process, transparency, and external oversight.

Meanwhile, the WB’s second report, "Vietnam 2045 - Growing Greener: Pathways to a Resilient and Sustainable Future," highlighted how investments in adaptation can help limit the impact of climate shocks on Vietnamese farms, businesses, and factories.

A 2024 WB survey found that about three-quarters (75%) of manufacturers in apparel and electronics - two of Vietnam’s leading export sectors – garments and electronics, which are operating in areas facing significant heat stress, putting more than 1.3 million workers at risk.

In the absence of adaptive actions, climate impacts could reduce Vietnam’s Gross Domestic Product (GDP) by as much as 12.5% by 2050 compared with baseline projections, potentially undermining the country’s ambition to reach high-income status by 2045, the report said.

It estimated that such investments could significantly mitigate the damage, reducing the projected climate-induced GDP loss from 12.5% to 6.7% by 2050.

The WB recommended Vietnam to integrate climate risk management across all economic sectors and develop policies that encourage businesses and people to actively adapt.

The report also identified opportunities for Vietnam to reduce the carbon intensity of its economy and move toward the Government’s goal of achieving net-zero emissions by 2050, which not only help protect the environment but also strengthen the country’s position in global supply chains.

-Vân Nguyễn

On the occasion of the 79th Italian Republic Day, H.E. Marco della Seta, Ambassador of Italy to Vietnam, tells Vietnam Economic Times / VnEconomy’s Linh Tong about deepening Vietnam and Italy’s bilateral trade, investment, and cooperation. H.E. Marco della Seta, Ambassador of Italy to Vietnam. Photo: VET/Viet Dung

Trade between Vietnam and Italy has shown resilience amid the global uncertainties. What key trends have shaped bilateral trade over the past year, and which sectors are seeing the strongest growth?

Trade between our two countries has evolved in an amazing way. If you take, for instance, 2019 -prior to Covid-19 - revenue was about $5.3 billion, while in 2024 it had grown to $6.9 billion. Looking at the growth between 2023 and 2024, it was about 13 per cent, which is a significant increase.

Vietnam is one of our key partners, not just our primary market in ASEAN but also one of the most dynamic markets globally.

A major key factor behind this is the gradual elimination of tariffs through the EU-Vietnam Free Trade Agreement (EUVFTA).

In terms of sectors, we are seeing growth in machinery, pharmaceuticals, electronics, footwear, and agri-food. For Vietnam, agri-food and electronics are particularly strong exports, while for Italy machinery and pharmaceuticals lead the way.

Of course, there are many sectors growing on both sides, especially since trade today often involves processing, where a product is exported, further refined, and then sometimes re-imported or exported elsewhere as a more finished product.

H.E. Marco della Seta, Ambassador of Italy to Vietnam. Photo: VET/Viet Dung

How has the EUVFTA continued to influence Italy’s investment in Vietnam? Are there new Italian companies entering the market as a result?

Vietnam is increasingly seen as an attractive investment destination by Italian entrepreneurs. While the EUVFTA primarily focuses on trade, it has also helped encourage investment by streamlining the governance of trade-related matters. This clearly shows that trade and investment go hand-in-hand. For Italian businesses, the usual path is to first discover the Vietnamese market through trade, and then move towards investment.

To date, over 160 Italian companies have invested in Vietnam. 12 new Italian investments were registered last year, according to Vietnamese authorities, showing steady, ongoing growth. Some are greenfield projects, while others are expansions of earlier investments. And that’s a very positive sign: companies already here are satisfied and choosing to grow their presence.

Italy has committed €500 million ($564.4 million) to Vietnam’s energy transition through the Just Energy Transition Partnership (JETP). Could you tell us about the latest updates and how this cooperation is being operationalized?

The JETP between Vietnam and the G7 countries plus Denmark and Norway is a relatively recent but ambitious initiative. The goal is to provide funding for pilot projects that can serve as models and attract further private investment. Like Vietnam, Italy is also going through an energy transition, which is a complex and long-term process involving many factors.

The idea behind the JETP is to combine public funding, including Italy’s commitment of €500 million, with efforts to raise private capital. At this stage, the Vietnamese Government is rightly taking the lead, having set up the structure, secretariat, and project pipeline.

Among these projects, one that Italy has adopted is a pumped-storage hydropower plant in Bac Ai, Ninh Thuan province [now part of south-central Khanh Hoa province]. This plant will store energy by pumping water to a higher elevation during low-demand periods and releasing it to generate electricity during peak times. It’s a sustainable, smart model that we hope can be replicated elsewhere in the country.

Beyond the JETP, Italy also has expertise in other energy-related areas that align with Vietnam’s National Power Development Plan VIII (PDP8). These include energy for transport, sustainable agriculture - which is a major global emitter of greenhouse gases - and hydrogen, where Italy has significant know-how to share.

Looking ahead, we are working closely with Vietnamese authorities to expand the number of joint projects. We are also pleased that the Ministry of Industry and Trade, which oversees the JETP in Vietnam, has just launched a website to promote future opportunities and ensure transparency.

What potential do you see for Vietnam and Italy to jointly develop sustainable supply chains and promote circular economy practices?

That’s another sector where we can work together, and in fact we already are. For instance, through our Agency for International Cooperation (AICS) - the Italian Government’s development aid agency, which has an office here in Hanoi - we are implementing an EU-funded project on the circular economy in agriculture. We look forward to participating in other similar initiatives.

What sectors hold promise for Italian investors in Vietnam?

First of all, I think there’s a general rule: the sectors that are interesting for Italian investors are those where Vietnam has already developed a comparative advantage. That’s the key concept.

The second rule is about sectors where Vietnam manages to position itself not only as a domestic market but also as a regional platform. From Italy’s perspective, Vietnam is seen as a strategic hub for ASEAN and Southeast Asia, and those are the sectors where we want to engage.

Italian entrepreneurs and businesspeople are looking at Vietnam through that lens. So, it’s not just about specific sectors, but rather about companies and locations where Vietnam offers both a comparative advantage and regional reach.

Of course, we’re mostly talking about manufacturing, because Vietnam is a manufacturing powerhouse. That spans from textiles to high-tech.

How can small and medium-sized enterprises (SMEs) from both countries collaborate more closely?

This is an important question because both Italy and Vietnam have manufacturing sectors that are largely driven by SMEs. In Italy, more than 90 per cent of businesses are SMEs. And that’s actually a good thing. Our SMEs are spread throughout the country, they create jobs locally, and they’re very flexible.

The key is that SMEs should aim to become international, which is, of course, challenging. So the question is: how can we cooperate effectively? I think one of the best ways is to group together, to form clusters or industrial districts. That’s a proven model for SME cooperation, and it’s the path that Italy has taken.

Now, we’re not suggesting that Italian SMEs are a model to be copied exactly, but they can serve as an inspiration. In Italy, SMEs often organize themselves into clusters based on local specialization, for example, shoes, furniture, eyewear, and so on. They share not just financing but also essential services that help them internationalize.

One of the major barriers for SMEs to go global is their small scale. Many are family-owned, with only a few managers, so it’s not easy to assign someone abroad full-time. That’s why cooperation and clustering are so important; they allow SMEs to act collectively.

In fact, Italy and Vietnam have already started cooperating in this area. Our governments have jointly set up technical centers, for example, in the textile sector and in stone processing machinery (used for marble and other materials). These centers help train Vietnamese workers to use the latest equipment and techniques. This is a practical way to support skills development in industries that are often driven by SMEs.

In light of global efforts to diversify supply chains, how does Italy view Vietnam’s role in reshaping production networks in Southeast Asia?

Vietnam is well-positioned for this ongoing redesign of global supply chains. Even more recently, despite the various challenges facing international trade and the persistent uncertainties in the global market, Vietnam continues to maintain its attractiveness.

That’s due to several factors: its strategic location, political and economic stability, the high quality of its workforce, and its strong growth rate. All of these make Vietnam a highly compelling destination for companies looking to expand and extend their supply chains.

While we’ve discussed how Italy can support Vietnam, in what ways do you see Vietnam contributing in return, perhaps even emerging as a strategic partner or a valuable source of strength for Italy in the region?

We trust that Vietnam will become an important consumer market. We see that the Vietnamese people are becoming more and more integrated into global markets, and believe there will be increasing interest in Italian products because of their quality and style. That can already be seen in fashion, furniture, and food.

We are confident that, with Vietnam’s continued growth and increasing purchasing power, this trend will accelerate. Vietnam will join other Asian countries that are already significant markets for Italian goods. And we are already seeing early signs, just look at the success of Vespa, or the popularity of Italian food and fashion.

We have so much to offer Vietnam, and I’m sure that as Vietnamese consumers become more sophisticated they will increasingly appreciate our products.

Another point I’d like to highlight is the importance of exchange. Vietnam is a fantastic destination for Italian tourists. Nearly 100,000 Italians visit every year, and that number is growing. Starting in July, thanks to Vietnam Airlines, we will have a direct flight connection to Italy, with three flights a week. I’d love to see more Vietnamese tourists traveling to Italy, learning about my country, and enjoying everything it has to offer.

-Linh Tong

The event attracting over 20 well-known investors and venture capital funds from various countries and territories .

The Danang Venture and Angel Summit 2025 (DAVAS 2025) opened in central Da Nang city on May 30, attracting over 20 well-known investors and venture capital funds from various countries, representing a combined investment portfolio of approximately $3.5 billion.

They mainly came from Singapore, Japan, the Republic of Korea (RoK), and Vietnam, including Quest Ventures, Do Ventures, ThinkZone Ventures, Genesia Ventures, Vertex Ventures, FundGo, WeAngels Capital, Trive, Sunwah Innovation Center, Daiwa Corporate Investment, Makara Capital, JN Capital Growth Advisory, Dream Incubator and Lean Ventures.

The summit is aimed at connecting stakeholders across the innovation ecosystem and positioning Da Nang as a dynamic destination for investors, start-ups, and innovative ventures seeking capital from both domestic and international sources.

During the summit, 36 start-ups from various sectors such as technology, education, agriculture, and health care pitched for funding and explored opportunities for investment partnerships. Of which, there are 24 projects from Da Nang, 4 from Ho Chi Minh City, 3 from Hanoi, 2 from Mekong Delta Can Tho city and south-central Khanh Hoa province’s Nha Trang city, 2 from Hong Kong (China) and 1 from Singapore.

Key activities at DAVAS 2025 include pitch sessions for 40 startups, the launch of the Da Nang Innovation Space, and the signing of several innovation collaboration agreements.

 

-Ngô Anh Văn

The national flag carrier celebrating its 30th founding anniversary on June 1.

Prime Minister Pham Minh Chinh has instructed the national flag carrier Vietnam Airlines to take the lead in developing the modern, green and safe aviation industry.

He made the instruction while addressing a ceremony held in Hanoi on June 1 to celebrate the airlines’ 30th founding anniversary.

The airline should apply modern management models, fully embrace the digital transformation and enhance customer service and experience while reducing operational costs to remain globally competitive, the PM said.

Over three decades of operation, the airline has served 350 million passengers, transported 4.7 million tons of cargo, and operated nearly 100 routes to 53 domestic and international destinations.

The airline’s revenue has continued to grow. In 2024, it achieved a consolidated revenue of over VND113 trillion ($4.32 billion).

 

-Minh Kiệt

As sustainability increasingly shapes corporate strategies worldwide, Oriental Square by OSI stands out at Starlake Tay Ho Tay with a clear commitment to achieving LEED Gold certification—one of the world’s most prestigious standards for green buildings. The project is designed to optimise operational efficiency, reduce long-term costs and introduce a new model of next-generation office space in the West of Hanoi.

Green Offices – A Long-Term Solution for Cost Efficiency and Operational Performance

According to the United Nations Environment Programme (UNEP), buildings account for approximately 40% of global energy use and nearly a third of greenhouse gas emissions.  Converting high rise developments into energy efficient and environmentally friendly spaces is not only a strategic solution for climate change but also an action that delivers clear long-term economic benefits.

In this context, the LEED certification system, developed by the U.S. Green Building Council (USGBC), has become a global benchmark for assessing a building’s sustainability. In Europe, shifting just 20% of heating demand to clean energy could cut CO₂ emissions by 9% and save an estimated €3 billion in healthcare costs by 2030 through improved urban air quality (World Green Building Council, 2023). In Vietnam, while the number of LEED-certified buildings remains limited, demand for green office spaces from both domestic and international businesses is becoming evident, especially in a city with high commercial activity and population density like Hanoi. Certified green spaces not only drive operational savings but also enhance employee wellbeing, boost productivity, and strengthen corporate reputation.

Ms. Hoang Nguyet Minh, Senior Director, Director of Commercial Leasing, Leasing at Savills Hanoi, shared: “Green certification is no longer just a competitive advantage, it has become a new standard for Grade A offices. Green buildings allow companies to demonstrate their ESG commitments, while strengthening their corporate image and attracting high-quality talent."

Oriental Square by OSI - A Commitment to Sustainable Development from Concept to Operation

Located in the new administrative and economic center, Oriental Square by OSI is the first Grade A office in Starlake to pursue LEED Gold certification. The building is engineered to provide a healthy, cost-efficient workplace while minimising its environmental impact. Specifically, the project aims to create a healthy working environment that improves user wellbeing by 20%, reduces climate impact by 35%, and cuts water consumption by 15% compared to conventional office buildings.

Oriental Square by OSI is the first Grade A office and commercial building in the Starlake, honored at the 2024 PropertyGuru Vietnam Property Awards with two prestigious awards: “Best Office Development” and “Best Commercial Green Development”, while also being named a finalist for “Best Office Development” at the Asia Property Awards, underscoring its credibility and quality in the broader regional market.

From the planning stage, Oriental Square by OSI integrated advanced green engineering solutions. A column-free layout and 4,500 mm ceiling height enable maximum flexibility, enhance natural light penetration, and promote efficient airflow—resulting in an estimated 10% reduction in greenhouse gas emissions in compliance with LEED standards.

The Japanese garden at Oriental Square adds a unique biophilic element, providing a balanced, restorative experience for office employees.

All construction materials at Oriental Square by OSI were selected for their sustainability: Saint-Gobain Low-E glass (France) blocks up to 80% of UV rays and solar heat, structural steel imported from Switzerland ensures durability; and the fire-resistant electrical system meets Singapore standards. The high-performance Daikin central air-conditioning system exceeds the market average by 30%, working in tandem with UK-made Breeze air filtration, CO₂ sensors, and UV lighting to maintain consistently high air quality—a critical factor in employee health and workplace productivity.

Energy efficiency is further enhanced through Schneider LED lighting systems, smart sockets, and a fully integrated BMS–PMS management platform, enabling real-time energy monitoring and consumption control. Altogether, these systems are expected to deliver annual energy and operations savings of 20–25%—a significant competitive edge amid rising operating costs in Hanoi.

The Oriental Square’s workspaces are equipped with advanced technology systems and premium materials—a foundation for efficient operations and long-term sustainability.

The project is not only optimised for operational efficiency but is also engineered to adapt to long-term urban dynamics. Its robust structural system features dual layers of reinforced concrete imported from Switzerland and is designed to withstand earthquakes up to magnitude 7 on the Richter scale—ensuring long-term stability and safety.

Set for completion and handover by the end of 2025, Oriental Square by OSI will introduce nearly 14,000 sqm of prime office and retail space to the market. The development is particularly well-suited for companies in technology, finance, and professional services that are seeking a modern, tech-integrated workspace aligned with global sustainability benchmarks.

With its strategic location, advanced construction standards, and a clear green commitment, Oriental Square by OSI is asserting its pioneering role in shaping the next generation of office spaces in Hanoi—a workplace designed for long-term vision, efficient operations, and sustainable growth. It is the ideal choice for businesses seeking a stable, high-performing environment aligned with their sustainability strategies.

-Tung Linh

Agricultural production and export facing many difficulties due to weather conditions, markets and imbalance of supply and demand.

The Prime Minister has requested relevant ministries, sectors, and localities to promptly implement measures to boost the production, processing, consumption, and export of agricultural products.

In an official dispatch signed by the PM on May 31, the Government leader asked the Minister of Agriculture and Environment to guide localities to review and prepare year-end production plans, ensure balanced supply and demand, and strengthen linkages between cooperatives, farmers and enterprises.

The Ministry of Agriculture and Environment was instructed to boost the study and application of science and technology, innovation and digital transformation in agriculture, especially for high-value products like fruits, and the use of advanced technologies in preservation and processing.

The Ministry of Industry and Trade was required to coordinate with other ministries to accelerate trade promotion activities, and diversify export markets for agricultural products.

Relevant ministries and localities were also requested to manage transportation flows and ensure smooth circulation of goods at border checkpoints, avoiding congestion of agricultural exports.

-Chu Khôi

A new direct air service linking Vietnam’s Nha Trang to South Korea’s Busan inaugurated by Vietnam Airlines on June 1.

Vietnam Airlines on June 1 inaugurated a new direct air service linking Nha Trang, the renowned beach destination in Vietnam’s south central province of Khanh Hoa province, to Busan, the second-largest city of South Korea.

This is Vietnam Airlines’ second route connecting Nha Trang to South Korea, complementing the already successful Nha Trang - Seoul service. The introduction of the new route not only diversifies travel options for Korean passengers but also enhances Vietnam Airlines’ competitiveness against regional carriers.

The Nha Trang - Busan route operates with one flight daily using Airbus A321 aircraft, providing a convenient and comfortable option for Korean travellers eager to explore Nha Trang’s stunning beaches, luxury resorts, and vibrant cuisine. In turn, it offers Vietnamese tourists easier access to Busan—the RoK’s cultural and commercial hub—featuring iconic attractions such as Jagalchi fish market, Beomeosa temple, and Haeundae beach.

-Vân Nguyễn

By 2030, 100% of planning records databases, including those under the city's jurisdiction, will be fully collected and built on the GIS platform.

Hanoi's Chairman Tran Sy Thanh has signed a plan to implement Decision No 06/QĐ-TTg, issued by the Prime Minister on January 2, 2025,  outlining a project to develop and manage a national database and information system for urban planning.

The plan sets forth targets that by 2026, 100% of Hanoi’s planning records database will be collected and built on a Geographic Information System (GIS) platform.

By then, all electronic documents related to planning records, including technical and specialized plans, will be digitized and stored in a centralized system.

30% of all planning records databases, including technical and specialized ones, will be integrated into the GIS platform.

By 2030, 100% of planning records databases, including those under the city's jurisdiction, will be fully collected and built on the GIS platform.

Hanoi also aims to complete investment in software and applications, ensuring state agencies, organizations, businesses, and citizens have full access to the system.

 

-Bạch Dương

These businesses will switch to issuing electronic invoices generated from cash registers connected to the tax authorities' database.

Starting June 1, approximately 37,000 households and individual businesses nationwide in Vietnam will officially transition to paying taxes based on actual revenue, replacing the long-standing lump-sum tax method.

Under the Government's Decree 70/2025/ND-CP, amending and supplementing Decree 123/2020/ND-CP on invoices and official documents, that took effect on June 1, tens of thousands of businesses with annual revenues of VND1 billion (about $38,400) or more in sectors such as food and beverage, restaurants, hotels, supermarkets, and retail will no longer pay lump-sum taxes.

These businesses will switch to issuing electronic invoices generated from cash registers connected to the tax authorities' database.

According to the Tax Department, this transition will directly affect around 37,000 households and individual businesses currently paying taxes under the lump-sum method and belonging to the high-revenue group.

The implementation of electronic invoices from cash registers is a step in the process of modernizing tax administration, replacing the lump-sum tax method, and increasing transparency in business activities.

Households and businesses that fail to implement the regulations risk administrative penalties and even business interruption due to invoices not being legally accepted.

-Bình Minh

Minister of Agriculture and Environment emphasized that Vietnam and the US have agricultural strengths that complement rather than compete with each other.

A delegation of nearly 50 agencies, businesses, and agricultural associations, led by Minister of Agriculture and Environment Do Duc Duy, is paying a working visit to the United States from June 1 to 7.

The visit takes place in the context that Vietnamese enterprises are seeking US partners to purchase key American agricultural products, including animal feed ingredients, fertilizers, bio-pesticides, meat products, cold-water seafood, and timber.

This visit therefore aims to strengthen bilateral trade relations, enhance import opportunities, and move toward a more balanced trade relationship between the two countries. Beyond importing goods, Vietnamese businesses are eager to access scientific and technological solutions to optimize their agricultural value chains.

Minister Duy emphasized that Vietnam and the US have agricultural strengths that complement rather than compete with each other.

“The most important thing is that, with the involvement of both governments, Vietnamese and American agricultural sectors are becoming more closely connected, sharing a common supply chain, thereby enhancing competitiveness and supporting the interests of producers and consumers in each country,” he stated.

He further noted: “Vietnamese agricultural businesses have been and are strongly cooperating with the government to increase purchases of strong US agricultural, forestry, and fishery products, harmonizing bilateral trade balance, thereby closely linking the agricultural, forestry, and fishery supply chains of the two countries, contributing to ensuring global food security.”

This visit follows a US agricultural trade mission to Hanoi in September 2024, which marked the one-year anniversary of the US-Vietnam Comprehensive Strategic Partnership.

Led by USDA Under Secretary Alexis Taylor, the mission showcased US business interest in the Vietnamese market, with a delegation comprising representatives from nine states, 35 businesses, and 25 key industry associations.

-Phạm Long

The project, led by private firm CMC Technology Solution, located on an 11,000 sq.m site, will feature 23 floors above ground and three basements, with a total floor space exceeding 90,000 sq.m.

Private firm CMC Technology Solution held a ground-breaking ceremony for its  Hanoi CMC Creative Space (CCS Hanoi) on June 1 afternoon in the presence of Prime Minister Pham Minh Chinh and many other senior officials.

The $300- million technology complex,  hailed as a key part of Vietnam’s push for innovation and digital transformation, is located on an 11,000 sq.m area,  featuring 23 floors above ground and three basements, with a total floor space exceeding 90,000 sq.m.

This is CMC’s second facility of the same kind in Vietnam, after its first creative space in Ho Chi Minh City - CCS Tan Thuan .

It will serve as an open artificial intelligence centre, dubbed C.OpenAI,  aiming to house a comprehensive tech ecosystem, including a state-of-the-art data centre, research and development labs, training facilities, and a startup incubation zone, employing over 5,000 engineers.

The CMC Data Centre, situated in the center of CCS Hanoi, is designed to deploy cutting-edge technologies in artificial intelligence, cloud computing, cybersecurity, big data, and next-generation networks. The C.OpenAI ecosystem will also integrate 25 core technologies developed by CMC.

Prime Minister Pham Minh Chinh was quoted by the Vietnam News Agency as stating at the event  the project is a testament to the private sector’s role in advancing Vietnam’s technological ambitions, aligning with the Party’s policy of making breakthroughs in sci-tech, innovation, and digital transformation.

With Vietnam targeting at least 8% economic growth in 2025 and double-digit expansion thereafter, the PM called for national unity to drive prosperity, safeguard its independence, sovereignty, and territorial integrity.

He urged CMC to lead in sci-tech, innovation and digital transformation, inspiring other businesses, educational establishments, and research centers, particularly young people, to contribute to Vietnam’s rapid and sustainable development. He expressed his hope that CMC would grow into a major multinational corporation integrated into global value chains while prioritizing social welfare and equitable access to technology, especially for remote and vulnerable communities.

The Government will always accompany companies, including CMC, and request ministries, agencies, and Hanoi authorities to further support them by promptly removing any obstacles to their growth, the PM said.

-Vân Nguyễn

In his recent article, Party General Secretary To Lam highlights that thrift practice and wastefulness combat are intrinsically linked and two pillars essential to achieving prosperity, whether at the level of family, nation or society.

Following is the full text of the Party leader’s article through a translation by the Vietnam News Agency:

PRACTISING THRIFT

To Lam

General Secretary of the Communist Party of Vietnam Central Committee

Thrift practice and wastefulness combat are intrinsically linked and two pillars essential to achieving prosperity, whether at the level of family, nation or society. Practising thrift and fighting wastefulness are necessary in the daily life of each individual and society as a whole, serving as a “cornerstone” in building a civilised society and sustainable development. This must be a shared responsibility and should become a way of life, a daily cultural norm for each of us.

Vietnamese culture has long upheld thrift and simplicity as core values. The practice of thrift has been distilled into proverbs and folk sayings passed down orally from one generation to the next, such as: “Good at spending brings fullness, good at managing ensures warmth,” “The poor with thrift has a better ending than the rich with wastefulness,” “Do not leave land uncultivated/Every inch is worth its weight in gold,” “In good harvests, do not neglect maize and sweet potatoes/ In hardship, who do you think would be with you?” and “Spend within limits, use with measure,” as well as “Thrift ensures financial readiness/ Avoid troubling others in times of need…”

President Ho Chi Minh, the great teacher of the Vietnamese revolution, set a shining example of thrift practice. Immediately after leading the August Revolution to victory, facing the simultaneous threats of famine, illiteracy, and foreign invasion, at the first meeting of the provisional government of the Democratic Republic of Vietnam on September 3, 1945, he outlined six urgent tasks. He highlighted the launch of a national movement to increase production and practise thrift to fight hunger and rebuild the country. Uncle Ho repeatedly explained the meaning of thrift so that it would be understood and applied properly: “What is thrift? It is being frugal, not extravagant, not wasteful, not careless... Thrift does not mean being stingy. When something is unnecessary, even a single coin should not be spent. But when it comes to worthwhile causes, for the people, for the Fatherland, no matter how much effort or money it requires, we must be willing. That is true thrift. Thrift demands a firm opposition to extravagance... Extravagance is a crime against the nation and the people.” For him, thrift was a vital art of the social life. He stressed the importance of saving labour: “One person should be able to do the work of two or three.” He also stressed time management: “Be punctual, don’t arrive late or leave early. Work quickly and thoroughly. Complete today’s tasks today, don’t put them off for tomorrow. Remember that the people pay us with their sweat and tears, wasting time is deceiving them.” He demanded the Government spend money and resources economically, save people's labour, save the lives and blood of soldiers and citizens: “We must cherish human resources as our most valuable asset. We must take great care of people’s health and use their labour wisely.” “Wealth can be regained and time will come again, but once a soldier’s blood is shed or life is lost, it cannot be recovered. Therefore, “it must preserve every drop of our people's blood to build our nation's future.” He also urged thrift in speech: “Say little, do much,” and “Begin with action.”

Throughout the revolutionary periods, the Party and State have paid special attention to thrift practice, regarding it as a top national policy. During wartime, under the leadership of the Party and President Ho Chi Minh, with the pioneering of Uncle Ho, cadres and Party members, every citizen practised reasonable spending and thrift, tightened their belts, endured hardship, and sacrificed personal comforts to direct all resources to the front lines, contributing to national liberation. Since the Doi Moi (Renewal) period, the Party has issued various policies and directives regarding this work, including Directive No. 21-CT/TW issued on December 21, 2012 by the 11th Party Central Committee’s Secretariat on promoting thrift and preventing wastefulness; Directive No. 27-CT/TW dated December 25, 2023, from the 13th Party Central Committee’s Politburo on strengthening the Party’s leadership in this field; and Directive No. 42-CT/TW dated January 16, 2025, also from the 13th Party Central Committee’s Politburo, on enhancing the Party’s leadership in educating values of diligence, thrift, integrity, righteousness and impartiality; the Politburo's Directive No. 05-CT/TW dated May 15, 2016, on promoting the study and practice of Ho Chi Minh’s thought, morality and style, which clearly states the need to “organise widespread study, dissemination and communications…of Ho Chi Minh’s views and moral example on diligence, thrift, integrity, righteousness and impartiality”; and Regulation No. 37-QD/TW dated October 25, 2021, by the Party Central Committee, on things prohibited for Party members, including “organising lavish, wasteful weddings, funerals or other personal and family-related events." To institutionalise the Party's directives, in 1998, the 10th National Assembly's Standing Committee issued an ordinance on thrift practice and wastefulness prevention, which was elevated to the Law on Thrift Practice and Wastefulness Combat by the 11th National Assembly in 2005, and later revised and supplemented by the 13th National Assembly in 2013. The 2013 Constitution mandates that “State agencies, organisations, and individuals must practise thrift and fight wastefulness, and prevent and combat corruption in socio-economic activities and state management" (Article 56). Each year, and in multi-year periods, the Government issues comprehensive programmes on thrift practice and wastefulness combat.

With efforts to realise the Party's policies and State laws, meaningful progress has been made in thrift practice across the Party, people, and army. Organisations and individuals, especially cadres and Party members, have focused on cutting regular expenses and promoting the role of leaders in thrift practice. Some agencies and units have announced in writing that they will not receive congratulatory flowers during congresses or anniversary events as a way of thrift. Many year-end or review conferences are now conducted more briefly and efficiently, using online formats and avoiding printed materials to save time and money. Shared vehicles for senior officials on business trips has been adopted in numerous locations. Idle land and long-delayed planning projects have gradually been addressed. The management and use of office buildings are now conducted with the right purposes and within regulated limits and standards. Many businesses have tightened control over production costs, especially indirect expenses, to reduce product prices, while reducing production and business costs, strengthening consumption norm management, and enhancing the efficiency of production and business operations. Particularly, since late 2024, in line with the conclusions of the Party Central Committee, the Politburo and the Secretariat have led and directed the basic completion of the restructuring and streamlining of the organisational apparatus the Party, Government, National Assembly, and Vietnam Fatherland Front at both central and local levels. This has reduced the number of units, cut expenses, and created the conditions for immediate implementation of the policy on school fee exemptions. Preliminary estimates suggest that under the policy approved at the 11th plenum of the 13th Party Central Committee on provincial mergers, the dissolution of district-level administration, and commune-level consolidation, the State budget will save more than 20 trillion VND per year in regular expenses annually from 2025 to 2030. From 2030 onwards, annual savings are projected to exceed 30 trillion VND. This does not yet take into account the value of over 18,500 buildings that will no longer serve as government offices under the new two-tier local administration model.

Despite some progress, thrift practice still faces significant challenges and yields very low effectiveness. Existing policies and directives on thrift have not been fully realised; wastefulness and losses of state assets and budgetary resources continue on a broad scale, causing serious consequences. Thrift practice has yet to become a regular habit, and thrift remains absent from the daily consciousness of many cadres, Party members, civil servants, and the public. Wastefulness is not confined to state agencies but also appears in everyday social activities. A penchant for foreign-branded and luxury goods, extravagant gift giving, and a consumerist mindset among some citizens, especially the young, while average incomes nationwide have just surpassed the middle-income threshold and labour productivity remains low. Although there are exemplary cadres and Party members who uphold Party ideals and lead efforts in practising thrift, combating wastefulness, managing public assets responsibly and resisting the lure of power and luxury, there remain many, including a few leaders, who lack responsibility, indulge in material comforts, cause budgetary and asset losses, and use public funds for personal spending or interest group.

The root causes of these shortcomings include a lack of responsibility and resolve among some agencies, organisations, and individuals; incomplete or ambiguous policies, rules, and regulations with loopholes; and occasional, perfunctory implementation of thrift and anti-waste measures. Certain ministries, sectors, and localities have not proactively devised solutions to integrate thrift and anti-waste practices into their respective domains. The Law on Thrift Practice and Wastefulness Combat has not truly permeated daily life; its provisions remain too general, failing to establish effective mechanisms for enforcement. Programmes on thrift practice and wastefulness combat often remain symbolic and have not been embedded into the operations of agencies, units, localities, families, or individuals. Clear targets, indicators, and evaluation criteria are lacking. Although many cases of waste and violations have been identified, handling remains slow; commendations for those practising thrift or exposing waste are not issued promptly, undermining compliance. Inspection on thrift and anti-waste at all levels has yet to achieve significant impact.

At its 11th plenum of the 13th Party Central Committee, the Party strongly endorsed landmark decisions, including further streamlining the political system’s organisational structure, merging some provinces, dissolving district-level administrations, and consolidating communes. These reforms lay the groundwork for fundamentally improving thrift practice nationwide in this new era. To fulfill the highest standards set by the 11th Plenum, namely “high-quality, rapid, and sustainable development,” along with “proactiveness, self-reliance and autonomy in development,” to achieve the overarching goals of “stability, development, and improvement of people's lives” and meet the two centennial objectives, alongside creating a lean, strong, and efficient, valid and effective organisational apparatus, it is crucial to address the following:

First, recognise that practising thrift and combating wastefulness are fundamental solutions enabling the nation to overcome all storms amid a volatile international landscape that directly and substantially affects socio-economic development and social welfare. History has shown that thrift has been a decisive factor in generating immense strength for our entire Party, people, and army, even when the country was impoverished, people faced severe hardship, and “hunger” stalked the land; we still “tightened our belts,” devoted resources to the resistance, and won military victories against powerful colonial and imperial forces to liberate and reunify the nation. Facing new difficulties and challenges, with our resilient, indomitable spirit and unity across the political system and society, diligently embracing thrift and fighting wastefulness will generate vital internal resources to propel sustainable economic growth, ensuring the country advances steadily toward strategic objectives while better caring for people’s livelihoods. Therefore, every citizen, agency, unit, organisation, and business must develop concrete plans and implement collection and spending rationally. Cadres and party members, especially leaders, should set exemplary examples, mobilise their families and communities to participate actively, and across all sectors, occupations, and households, promote production and business, enhance productivity, quality, and efficiency, and rigorously practice thrift to minimise waste of time, money, assets, and human effort.

Second, strongly implement fundamental solutions to create substantial changes in practicing thrift and combating waste. The focus is on: (i) Focusing on perfecting institutions, creating a basis to thoroughly overcome wastefulness caused by institutions, removing barriers, difficulties, and obstacles that hinder development, clearing bottlenecks to create a foundation for development, especially issues related to bidding, budget, public investment, private economy, science and technology, innovation, digital transformation and the revolution in streamlining and streamlining the apparatus of the political system. It should early research, amend and supplement the Law on Thrift Practice and Wastefulness Combat, creating a comprehensive and solid political and legal basis for thrift practice in all sectors, all professions, all cadres, party members and people. (ii) Minimising administrative procedures and compliance costs, creating the greatest convenience for people and businesses; shifting from pre-inspection to post-inspection, eliminating the "ask-give" mechanism; decentralisation and delegation of authority to competent agencies and localities to resolve and take responsibility. In 2025, it should ensure that 100% of administrative procedures related to enterprises are carried out online in a smooth and effective manner; 100% of administrative procedures are not limited by provincial administrative boundaries. (iii) After arranging the organisation of the political system to be streamlined, lean and strong, in order to operate efficiently, valid and effectively, the very fundamental factor is to focus on building a team of cadres with good knowledge, skills and working attitude to achieve the highest efficiency in each area they are responsible for. In particular, management skills, task execution; passion, enthusiasm and responsibility in each job, each assigned task; standard culture in communications, behaviour, and awareness of saving… are requirements for cadres in the new organisational apparatus. (iv) Tightening discipline in financial and budget management and use; practising thrift, combating wastefulness, effectively using state financial resources in conjunction with mobilising social resources and streamlining the apparatus. Strengthening management and use of public assets, ensuring compliance with standards, norms, regimes and requirements of tasks, focusing on arranging and handling assets, especially houses and land in conjunction with streamlining the apparatus. Resolutely and thoroughly economising unnecessary expenditures to ensure resources for natural disaster and epidemic prevention and control, supplement development investment capital and economic development; striving to further increase the rate of breakthrough expenditures for science and technology development, innovation, national digital transformation, and support for private economic development. (v) Creating a legal corridor and resources for the private economy to develop, promote the spirit of entrepreneurship and innovation throughout society, creating conditions for all people to have the opportunity to contribute, increase labour productivity, and enrich themselves, their families and society.

Third, build a culture of thrift; make the thrift practice and wastefulness combat "self-conscious", "voluntary" and "daily norm akin to eating, drinking and dressing". Research, launch and maintain the annual "national thrift day" to promote and spread the movement throughout society to raise awareness of practicing thrift. Promote the campaign "studying and following the ideology, morality, and lifestyle of Ho Chi Minh"; promptly reward and commend exemplary cadres, soldiers, and people who have initiatives in work and economic development that bring practical results in practicing thrift; have strict disciplinary measures against collectives and individuals, especially heads of agencies and units in the political system, and party members who fail to fully comply with the Law on Thrift Practice and Wastefulness Combat. Continue to promote the fight against corruption, wastefulness, and negativity, considering this one of the fundamental solutions contributing to building a culture of thrift.

In his report to the 4th Congress of the Communist International, V.I. Lenin emphasised, “In any case, we must streamline the state apparatus, must economise as much as possible. We are economising in all things, even in schools. We must do this, because we know that if we cannot save heavy industry, if we cannot restore it, we will not be able to build up an industry at all. And without an industry, we will inevitably perish and we will no longer be an independent nation.” Beloved President Ho Chi Minh emphasised, “In the process of building socialism, thrift is a great policy, a great morality, a way of working and living that must never be neglected.” To bring the country firmly into a new and successful era, our entire Party, people and army must strive to practise thrift and fight wastefulness.

-

Public investment disbursement and energy efficiency are two critical issues for Vietnam as it seeks to maintain its economic growth and guarantee macro-economic stability.

As Vietnam aspires to sustain high economic growth amid the global uncertainties, both domestic and international analysts believe the country must urgently tackle two critical bottlenecks: accelerating the disbursement of public investment capital and ensuring energy efficiency to avoid overdependence on electricity consumption. These are seen as foundational moves to unlock momentum and maintain macro-economic stability in the quarters to come.

Urgent action

Recognizing the critical role of transport and logistics infrastructure in driving economic growth, on September 5, 2024, Prime Minister Pham Minh Chinh issued Official Dispatch No. 673/TTg-CN, directing ministries, sectors, and localities to swiftly implement key tasks in a bid to complete 3,000 km of expressways by the end of 2025.

For this year, the State budget plan was to allocate VND87.53 trillion ($3.5 billion) to implement eleven nationally-significant transport projects. Of this, VND74.53 trillion ($2.98 billion) will come from the central budget and VND12.99 trillion ($519.8 million) from local budgets.

According to the Ministry of Finance, as of March 31, total disbursed capital for the eleven projects stood at VND4.81 trillion ($192.5 million), or just 5.5 per cent of allocated funds. Disbursement from the central budget stood at VND3.9503 trillion ($158.01 million), or 5.3 per cent of the plan, while local budget disbursement was VND862.5 billion ($34.5 million), or 6.6 per cent of the plan.

This disbursement rate is quite low, especially when compared to the national average of 9.72 per cent. Figures indicate that the implementation of transport infrastructure projects is lagging behind and requires urgent attention and acceleration.

In response to concerns that recent government restructuring may have contributed to the sluggish disbursement of public investment in early 2025, Deputy Minister of Finance Nguyen Duc Chi said it is important to emphasize that the streamlining of organizational structures is not the cause of the low disbursement rate. “However, during the restructuring process, relevant agencies have had to reassess nearly all public investment projects,” he added. “Some projects had already completed the required procedures and even partially disbursed funds, but if found ineffective under current conditions, they were suspended for re-evaluation. This is one of the reasons for the delay.”

Mr. Le Tien Dung, Deputy Director of the Department of Investment at the Ministry of Finance (MoF), added that public investment disbursement is facing obstacles ranging from institutional frameworks and implementation mechanisms to local financial resources. Specifically, inconsistencies between the Law on Public Investment and the Law on State Budget have caused implementation difficulties. The MoF has submitted proposals for comprehensive amendments to these laws.

At the same time, Decree No. 99 on the final settlement of public investment capital is also undergoing revision, aiming to simplify procedures by shifting from a pre-check to post-check mechanism, enhancing flexibility and delegating greater authority and accountability to project investors.

Mr. Dung also pointed out that many localities that previously relied heavily on land use revenue are now facing significant declines in this income source, leading to a shortage of resources for new project allocations. This is another factor contributing to the underwhelming disbursement performance in early 2025.

Numerous other challenges also persist, including shortages of construction materials and issues related to site clearance and compensation. In response, the MoF has advised the government to establish seven task forces led by Deputy Prime Ministers to address public investment bottlenecks in different regions.

Under this directive, units with slow implementation and no legitimate justification will be subject to accountability reviews. Conversely, localities with strong disbursement performance and capital needs are encouraged to proactively propose additional allocations or the reallocation of funds from areas that are unable to utilize their budgets, thereby improving overall resource efficiency.

Infrastructure and energy gaps

In a recent discussion with the media, Ms. Mariam J. Sherman, World Bank (WB) Country Director for Vietnam, Cambodia, and Laos, said Vietnam has the potential to maintain its positive growth momentum if it effectively leverages the existing fiscal space. However, she also cautioned that it needs to better prepare for increasing uncertainties. “In the upcoming growth strategy, public investment is identified as a key factor, particularly in sectors such as urban infrastructure, transport, and energy,” she continued. “To maximize its role, public investment needs to be expanded in scale, improved in quality, and ensure efficiency in resource use. This is not only a short-term economic stimulus measure but also a foundation for sustainable, long-term growth.”

According to Mr. Nguyen Ba Hung, Principal Country Economist at the Asian Development Bank (ADB) in Vietnam, Vietnam’s infrastructure is better than many countries in the same middle-income group. However, to rise and compete effectively with developed economies in the region, it needs to intensify investments and further improve its infrastructure network, aiming for breakthroughs in quality and efficiency. Rapid and comprehensive reforms are necessary to make this a reality.

Mr. Sacha Dray, a WB economist in Vietnam, said that while the bank assesses Vietnam’s economy as having solid growth prospects in the 2025-2026 period, the existing infrastructure limitations require large-scale, strategic investment solutions. He believes that Vietnam has sufficient fiscal space to allocate resources for critical infrastructure projects, which can create sustainable growth momentum in the medium to long term. However, these investments must be accompanied by effective management to ensure progress, efficiency, and proper prioritization in implementation.

WB experts have particularly emphasized that Vietnam’s electricity consumption / GDP ratio in 2024 rose to the highest level since 2013, reaching 590 kWh per $1,000, surpassing the 579 kWh posted in 2023. The main reason for this is that electricity production and sales have increased more rapidly than GDP growth, with electricity production rising 10 per cent and sales 9.2 per cent. This trend reverses the previous decline in the correlation between electricity consumption and GDP growth during the post-pandemic recovery period of 2022-2023.

The WB forecasts that electricity demand in Vietnam will increase sharply in the years ahead due to the development of electric vehicles and energy-intensive industries such as chip manufacturing and electronics. Therefore, investment in energy infrastructure, especially renewable energy, is urgently needed to achieve the high growth targets in place.

-Kỳ Phong

The capital city is the only representative from Vietnam included in the list.

Hanoi ranked 11th position in the list of the 15 most loved cities in the world, published recently by the UK-based Time Out magazine.

It is the only representative from Vietnam included in the list.

This ranking is based on an analysis of global travelers' search trends for flights, hotels, and travel itineraries, conducted by the travel insurance company InsureandGo, the Government News quoted the magazine as reporting.

The capital city of Vietnam stands out thanks to its harmonious blend of ancient beauty and modern vitality, preserving the nostalgic charm of the Old Quarters, historic relics, and architectural works, while embracing the continuous development of a dynamic city.

According to a report from the city's Department of Tourism, in the first five months of the year, 12.77 million visitors travelled to Hanoi, a year-on-year increase of 10.9%. Of the figure, international visitors reached 3.16 million, up 20.2 per cent year-on-year.

The Department noted that the number of international tourists to Hanoi has shown steady growth, especially from key markets such as Japan, South Korea, China, France, and the U.S.

-Phạm Long

The total investment for the project is over $115 million, of which the investor's contribution accounts for 15%.

The People's Committee of the north central province of Thanh Hoa has approved an investment plan for the Thang Long Thanh Hoa Industrial Park (phase 1), with Sumitomo Corporation, a diversified conglomerate from Japan, selected as the investor.

The investment of the projected industrial park (IP) is divided into 4 phases, focusing on manufacturing and supporting industries.

Phase 1 will cover a total area of approximately 167 ha, located in Dong Yen and Dong Van communes (Thanh Hoa city) and Dong Tien and Dong Thang communes (Trieu Son district). The total investment capital for the project is nearly VND3 trillion (over $115 million), of which the investor's contribution accounts for 15%.

The project will operate for 50 years, with the implementation timeline extending to December 2027. Upon completion, the project is expected to attract 50-250 secondary investors to lease land and build factories, creating jobs for approximately 13,000-40,000 workers.

Sumitomo began investing in Vietnam in 1997. Currently, Japanese giant operates two industrial parks, Thang Long I and II, located in Hanoi and Hung Yen, respectively.

-Thiên Anh