In March 2025 alone, the capital city attracted $312.7 million in FDI.

Hanoi continues to affirm its status as an attractive destination for foreign investors, attracting $1.415 billion in foreign direct investment (FDI) capital in 2025’s first quarter, a 49.5% increase compared to the same period in 2024.

Specifically, 81 new projects were registered with a total capital of $29 million; 34 projects underwent capital increases, totaling $1.165 billion; and 83 instances of foreign investors contributing capital and purchasing shares amounted to $221 million.

In March alone, the capital city attracted $312.7 million in FDI. This includes 29 newly licensed projects with total registered capital of $9.1 million, nine instances of adjusted investment capital amounting to an additional $126.2 million, and 27 cases of foreign investors contributing capital and purchasing shares worth $177.4 million.

-Song Hoàng

The US remained the largest supplier of round wood to Vietnam, accounting for 16.5% of Vietnam's total round wood imports.

Vietnam boasts a robust wood processing and wooden furniture export industry; however, the output from domestically planted forest wood remains insufficient to meet demand, according to the Vietnam Timber and Forest Product Association (VIFOREST).

As a result, Vietnam imports a substantial volume of raw wood materials annually to support its wood processing sector.

In 2024, Vietnam's wood and wood product imports totaled $2.81 billion, with raw wood materials accounting for nearly $2.4 billion, or 85.2% of the total.

"In 2024, Vietnam imported $316.36 million worth of raw wood materials from the US market, an increase of 32.9% compared to 2023, accounting for 11.2% of total imported wood materials. The three primary items—sawn wood, round wood, and veneer—contributed $311.96 million to the total import turnover from the US, representing 98.6% of the timber imports from the US," stated Mr. Ngo Sy Hoai, Vice Chairman and General Secretary of VIFOREST.

Within the import structure, round wood and sawn wood continued to dominate, making up more than 50% of the wood industry's import value.

In 2024, Vietnam imported over 1.83 million cubic meters of round wood. Of this, imports from the US exceeded 303,300 cubic meters, worth $89.9 million, reflecting an increase of 41.4% in volume and 51.6% in value compared to 2023. The US remained the largest supplier of round wood to Vietnam, accounting for 16.5% of Vietnam's total round wood imports.

Additionally, the US was the leading supplier of sawn wood, providing 428,980 cubic meters worth over $215.3 million, up 20.8% in volume and 29.6% in value compared to 2023.

In the first quarter of 2025, the export value of wood and wood products reached $3.95 billion, an 11.6% increase compared to the same period in 2024, according to the Ministry of Agriculture and Environment.

 

-Chu Khôi

The total route length is approximately 32.3 km.

The People's Council of the northern province of Ninh Binh has issued Resolution No. 24/NQ-HĐND, approving investment policy for Phase I of a  road project, which will link the province with its neighbors of Thanh Hoa and Hoa Binh provinces. 

The over 32-km projected road will run through the province's districts of Kim Sơn and Yen Mo, and Tam Diep city, with a total investment capital estimated at VND6.939 trillion (nearly $268 million).

The project is scheduled for implementation between 2025 and 2028.

The road, also designated as phase II of the East-West Route, aims to connect Nga Sơn district in Thanh Hoa province, the districts of Kim Sơn, Yen Mo, and Nho Quan, and Tam Diep city in Ninh Bình province, and the Ho Chi Minh Highway in Hoa Binh province.

-Nguyễn Thuấn

A number of draft laws on tax matters recently went before the National Assembly Standing Committee for consideration and comment.

During its 43rd session on March 10 and 11, the National Assembly (NA) Standing Committee gave opinions on five draft laws, including the amended Law on Product and Goods Quality, the amended Law on Railways, the Law on Personal Data Protection, the Law on State of Emergency, and the Law on Participation in United Nations Peacekeeping Forces.

The Standing Committee also gave opinions on explaining, accepting, and revising three draft laws, including the amended Law on Special Consumption Tax (SCT), the amended Law on Corporate Income Tax, and the Law on Management and Investment of State Capital in Enterprises. These revisions are expected to play a crucial role in shaping tax policies that align with Vietnam’s ambitious goal of achieving double-digit economic growth in the years to come.

Aligning with growth targets

The proposed amendments to the Law on Corporate Income Tax have drawn significant attention, given their potential impact on businesses, the investment climate, and overall economic development. Recognized as highly-complex legislation, it directly affects the corporate sector, production, and the broader socio-economic landscape.

A recent report summarizing key feedback and revisions highlights several areas of consensus between the reviewing and drafting agencies. They agreed to incorporate recommendations from NA deputies on key issues, such as taxable entities, tax exempt income, tax assessment periods, deductible expenses, and tax rules for foreign organizations without a presence in Vietnam.

One of the most debated aspects of the amendment is a proposed provision that would allow real estate businesses to offset profits from property transactions (including project transfers) against losses from other business activities.

This has sparked concerns that such a mechanism could be exploited, enabling companies to minimize their tax obligations on real estate transactions by deliberately offsetting them with losses from unrelated business activities, some of which may be short-lived ventures registered solely for this purpose.

The NA’s Economic and Financial Committee has cautioned that such a provision could significantly reduce corporate income tax revenue from the real estate sector in the years ahead. To prevent potential loopholes and policy abuse, the committee has called for a thorough risk assessment.

During the discussions, Mr. Hoang Thanh Tung, Chairman of the Legal and Judicial Committee, emphasized that the draft law prioritizes corporate income tax incentives over other tax laws. He urged a comprehensive review of Vietnam’s existing legal framework to ensure consistency and clarity in tax policies.

NA Vice Chairman Nguyen Khac Dinh stressed the need for a holistic approach to tax reform. He pointed out that the current draft does not yet account for Vietnam’s economic growth targets of at least 8 per cent in 2025 and double-digit growth in subsequent years, as set by the Party Central Committee and the NA. He called for a reassessment to ensure tax policies effectively support these development goals.

NA Chairman Tran Thanh Man called for close collaboration between the Economic and Financial Committee and the drafting agency to conduct a comprehensive impact assessment, particularly regarding State budget revenue. “Tax policies must strike a balance - driving economic growth, maintaining macro-economic stability, controlling inflation, and ensuring social security,” he emphasized. “A thriving business sector is the backbone of national progress, and any tax reform must carefully consider its impact on State revenue. The goal is to sustain revenue streams, enforce fair and effective tax collection, avoid excessive taxation, and prevent tax evasion through policy loopholes.”

Reassessing excise tax policies

The NA is currently reviewing proposed amendments to the Law on SCT, with Chairman Man emphasizing the significance of these revisions, which have drawn widespread attention from the business community. He stressed that the amendment process must be thorough and well-founded, ensuring effective management while promoting economic growth.

As discussions continue on tax rates for tobacco, alcohol, sugary beverages, pickup trucks, and hybrid vehicles, the Chairman called on the Ministry of Finance and relevant agencies to engage further with ministries, the Vietnam Chamber of Commerce and Industry (VCCI), and business associations. He urged them to gather more data to support the proposed tax adjustments, with findings to be presented at the next NA session. He also requested a detailed assessment of how these tax adjustments would impact production volumes, pricing, and the proportion of tax within retail prices. Additionally, he emphasized the need for concrete evidence on how tax policies would affect consumption, ensuring a data-driven and well-substantiated report for the NA.

Speaking on the broader taxation strategy, he highlighted the importance of balancing public health protection with economic development. Tax policies, he noted, should not hinder normal business operations but instead align with international practices while remaining suitable for Vietnam’s economic conditions.

Several NA deputies expressed opposition to maintaining excise tax on fuel and air conditioners with a capacity below 90,000 BTU. Many argued that these products are no longer considered luxury items but essential household necessities. Standing Vice Chairwoman of the Committee on Petitions and Oversight Le Thi Nga pointed out that applying excise tax to these goods contradicts the tax’s original purpose, which is to target luxury products. She added that concerns over this issue had been raised multiple times in discussions but had yet to be adequately addressed.

Chairman of the Legal and Judicial Committee Hoang Thanh Tung also supported the removal of an excise tax on fuel and air conditioners. He noted that fuel is already subject to various taxes, including environmental protection tax, value added tax (VAT), and import tax, making an additional excise tax redundant. Regarding air conditioners, he pointed out that most households now own one or two units, making it unreasonable to continue taxing them as luxury goods. He called for a careful reassessment of the tax policy to reflect the changing nature of these products in modern households.

In a related development, the NA Standing Committee unanimously approved a government proposal to reduce land rental fees by 30 per cent for 2024, extending the policy implemented in 2023. This move is expected to have minimal impact on State budget revenue while providing significant support for businesses as they recover and expand operations. It is also seen as a key initiative in Vietnam’s broader economic strategy, aiming for at least 8 per cent growth in 2025 and double-digit growth in the following years.

-Nguyễn Tuyến

The US, China, and Japan remaining the largest importers.

Vietnam’s exports of agro-forestry-fishery products recorded an impressive growth in the first quarter of this year, with total revenue of $15.72 billion, up 13.1% compared to the same period last year, according to the Ministry of Agriculture and Environment.

Of the total, export turnover of agriculture reached $8.53 billion, increasing 12.2%; seafood $2.29 billion, up 18.1%; and forestry $4.21 billion, soaring 11.2%.

The US, China, and Japan remained the largest importers of Vietnamese agro-forestry-aquatic products, accounting for 20.2%, 17.3% and 7.7% of the total export value, respectively.

Key export products include coffee with export value of $2.88 billion, up 49.5% year-on-year; pepper $323.6 million, jumping 37.3%; rubber $765.8 million, soaring 26.1%; and cashew nuts $841.1 million, up 4.3%.

 

-Chu Khôi

The 2024 index assessing the implementation of Free Trade Agreements (FTAs) by localities and businesses nationwide.

The 2024 FTA Index which assessed the implementation of Free Trade Agreements (FTAs) by localities and businesses last year was announced in Hanoi on April 8 with the presence of Prime Minister Pham Minh Chinh and many other senior officials.

This is the first FTA Index created by the Ministry of Industry and Trade in coordination with relevant ministries and agencies.

The FTA Index is based on four main pillars: FTA dissemination and advocacy; implementation of legal regulations on FTAs; support policies to enhance competitiveness; and the implementation of commitments on sustainable development.

The top 10 localities leading the country in terms of FTA Index score in 2024 are: Ca Mau, Thanh Hoa, Binh Duong, Khanh Hoa, Tra Vinh, Long An, Ha Giang, Bac Lieu, Ninh Binh, and Dien Bien.

To date, Vietnam has signed and implemented 17 FTAs with more than 60 partners on all the five continents.

Addressing the announcing ceremony, Prime Minister Pham Minh Chinh said the FTA Index, based on business surveys across 63 provinces and centrally-run cities nationwide, aims to provide transparent and objective data for the Government, central agencies, and local authorities to guide, monitor, and manage economic integration. It will also serve as a foundation for policy formulation and local development strategies, contributing to sustainable export growth.

PM Chinh stressed that the effective implementation of the FTAs is not only about fulfilling international commitments but also serves as a catalyst for domestic reform, market expansion, and better economic competitiveness.

The government will continue to optimize the FTAs' advantages, strengthen international commitments, expand markets, pursue new trade agreements with potential partners, and diversify markets and supply chains, the PM noted.

 

 

-Vũ Khuê

The proposed capital adjustment seeks to raise from $267 million to approximately $365.4 million.

The Ministry of Construction (MoC) has submitted a proposal to the Ministry of Finance to adjust the total investment Capital for the component project 1A of the Tan Van - Nhon Trach section construction project (phase 1), part of Ho Chi Minh City’s Ring Road 3.

The proposed adjustment seeks to raise the investment capital from VND6.955 trillion ($267 million) to approximately VND9.268 trillion ($365.4 million), sourcing from Official Development Assistance (ODA) funds.

According to the MoC, the project employs ODA loans from the South Korean government. The initially adjusted investment capital, as approved by the Prime Minister in January 2020 and then revised in April 2022,  set at approximately VND6.955 trillion.

The project spans a total of 8.75km with a design speed of 80 km/h, featuring four motorized lanes and two mixed traffic lanes.

Within the initial investment plan, the ODA loan was set at over $190.77 million, complemented by a counterpart fund of over VND2.779 trillion ($106.8 million).

The implementation period is scheduled for five years, from September 2020 to September 2025, following the effective date of the loan agreement.

The MoC emphasized that adjustments to the project’s scope, including additional investments in specific construction items, are essential to ensure that the section operates at expressway standards. These adjustments align the project with other components of Ring Road 3 and have led to an increase in the total ODA loan amount.

As a result, the preliminary adjusted total investment has increased by approximately VND2.312 trillion (over $88.8 million), requiring the project’s ODA loan capital to increase from $190 million to $262 million.

-Thanh Thủy

According to newly released data from the General Statistics Office (GSO), Vietnam’s Gross Domestic Product (GDP) in the first quarter of 2025 grew by 6.93% year-on-year and this is the highest Q1 growth rate recorded during the 2020 - 2025 period.@media (max-width: 768px) { .detail__content iframe[data-name="webhtml"] { border: 1px solid #ccc !important; width: 100% !important; min-height: calc(100vh + 200px) !important; } } @media (min-width: 800px) { .detail__content iframe[data-name="webhtml"] {width:1024px; height:680px;} }

-Vietnam Economic Times/ VnEconomy

The event, taking place between April 14-17, will be the largest multilateral high-level summit on green growth that Vietnam will host during the 2021-2026 period.

Vietnam will host the 4th Partnering for Green Growth and the Global Goals 2030 Summit in 2025 (the P4G Vietnam Summit 2025), under the theme “Sustainable and People-Centered Green Transition”,  in Hanoi from April 14 – 17.

This will be the largest multilateral high-level summit on green growth that Vietnam will host during the 2021-2026 period.

Speaking at a press conference on April 8 announcing the summit, Standing Deputy Minister of Foreign Affairs Nguyen Minh Vu emphasized that the event will demonstrate Vietnam’s role, responsibility and contributions to P4G and the collective efforts to promote green growth and sustainable development at national, regional, and global levels.

No country can address climate challenges alone. International and regional cooperation is essential, the Deputy Minister said, adding that the summit aims to raise awareness about sustainable development while facilitating the sharing of experiences, resources, and public-private partnerships to advance green growth initiatives.

According to the Deputy Minister, Vietnam had been significantly affected by climate change and has taken progressive steps toward environmental protection and sustainable development. The country had committed to net-zero emissions by 2050, and reducing greenhouse gas emissions by 30 per cent by 2030, and had implemented various policies to balance economic growth with environmental protection, he said.

“Therefore, I hope that through this summit, Vietnam will gain access to valuable experiences, effective models, and practical lessons from other countries, international organizations, and leading experts in the fields of green growth and sustainable transition,” the Deputy Minister added.

The summit will begin with sideline activities on April 15-16, organised by the P4G Secretariat, including a Global Advisory Forum and investment promotion events for startups.

The main summit activities on April 16-17 will feature seven key events chaired by Vietnamese Prime Minister Pham Minh Chinh.

Approximately 600 international delegates from 40 countries and international organisations have confirmed their attendance, both in-person and virtually, including representatives from P4G member countries and partner organisations.

Participants will include government officials, investment fund representatives, businesses and start-ups in climate fields, and international organisations focused on sustainable development.

It is expected that the Summit will adopt outcome documents, including the "Hanoi Declaration on P4G", which will affirm commitments to sustainable development centred on people and responsible action to address global challenges.

-Phương Nhi

International organizations have noted what lies ahead as Vietnam works to reach ambitious growth targets set for 2025 and beyond.

The World Bank (WB)’s March edition of its Taking Stock report forecasts Vietnam’s real GDP growth at 6.8 per cent this year and 6.5 per cent next year. The main uncertainties in its growth outlook stem from slower-than-expected global growth and trade disruptions, particularly among Vietnam’s major trading partners.

“Vietnam is projected to maintain robust economic growth over the next two years, but it can use its fiscal space to better prepare for heightened uncertainties,” said Ms. Mariam J. Sherman, World Bank Director for Vietnam, Cambodia, and Lao PDR. “Growth-enhancing public investment, especially in urban, transport, and energy infrastructure, will be critical, provided authorities can scale this up and ensure that spending is efficient.”

Indicators slowing down

Vietnam’s trade activities in 2025 are expected to slow, with a potential decline to follow in 2026. Exports are projected to grow 12.1 per cent this year, while imports are forecast to rise by 12.7 per cent. While still representing handsome growth, this short-term slowdown in trade is primarily attributed to weakening demand from Vietnam’s two largest trading partners, China and the US, along with global trade uncertainties amid potential adjustments in trade policies.

Regarding inflation, the WB cautions that while inflation remains below the target, Vietnam should continue to exercise prudence. Stabilized food prices have helped keep inflation under control in 2024, with projections indicating it will remain at 3.5 per cent in 2025-2026, under the government’s limit of 4.5-5 per cent this year. Notably, despite ongoing conflict in Ukraine and the Middle East, crude oil prices are expected to fall further, contributing to inflation control.

Foreign investment and trade will continue to be key drivers of Vietnam’s economic growth over the next two years. FDI inflows are expected to remain stable in the short to medium term, supported by strong interest from international investors. With sustained FDI attraction, the WB forecasts that disbursed FDI in Vietnam could reach $25 billion in 2025.

Despite the slowdown in several economic indicators this year, Vietnam remains one of the fastest-growing and most-dynamic economies in Southeast Asia, according to Mr. Andrea Coppola, WB Lead Economist for Vietnam. “The government’s ambitious target of 8 per cent GDP growth in 2025 is entirely achievable, provided that global economic conditions remain favorable, policy support is robust, and Vietnam strengthens cooperation with its key trading partners,” he emphasized.

Rising uncertainties

While Vietnam’s economic outlook remains positive, the WB warns that the country will face three escalating uncertainties in 2025 and beyond.

First, trade-distorting policies implemented by some Southeast Asian countries, such as higher tariffs and measures that increase production costs in Vietnam, have been in place since 2015 and are continuing to rise. These policies not only affect the business environment but also pose risks to Vietnam’s GDP growth both this year and in the long term.

Second, the global economy may grow at a slower-than-expected pace, particularly in Vietnam’s key trading partners such as the US, China, and the EU. Shifts in trade policies, coupled with deepening fractures in international trade relations, could negatively impact Vietnam’s exports, especially in the manufacturing and processing sectors. This would not only affect industrial output but also challenge the country’s overall growth trajectory.

Finally, the recovery of the domestic economy, particularly the real estate sector, remains sluggish. Though the number of real estate projects have shown signs of improvement since late 2024, the pace of recovery has yet to reach pre-pandemic levels. This impacts market sentiment, affects investment flows, and creates certain pressure on economic stability in the time to come.

Additionally, Mr. Coppola noted that while Vietnam’s economy is expected to continue its rapid growth this year, there are significant issues to monitor. The most concerning is weakening external demand, with one of the clearest indicators being the slowdown in export growth. In the first two months of 2024, Vietnam’s export turnover saw a nearly 20 per cent increase year-on-year, but this pace slowed considerably in the same period this year, falling to just 8 per cent.

Weaker demand is also reflected in Vietnam’s Manufacturing Purchasing Managers’ Index (PMI). “The PMI in January stood at 48.9, down from 49.8 in December,” Mr. Coppola added. “Though it edged up slightly in February, to 49.2, it remains below the 50-point threshold.”

Appropriate policies

According to a report from AFA Capital, in order for Vietnam to achieve its targeted GDP growth of 8 per cent this year, investment activities, both public and private, must be accelerated compared to 2024 to spur economic momentum. Specifically, total public investment must reach VND875 trillion ($35 billion), a 28 per cent increase from 2024, while private investment needs to hit VND2,300 trillion ($92 billion), up 7.7 per cent, and FDI $28 billion, up 9.4 per cent.

At the same time, other key economic indicators must be maintained, such as domestic consumption growth exceeding 12 per cent and net exports rising 12 per cent. These factors will help strengthen Vietnam’s foundation for sustainable growth throughout the year.

To realize these targets and meet the projected GDP growth rate for 2025, AFA Capital’s report outlined several critical policies that Vietnam must implement. These include promoting public investment and credit growth, streamlining administrative procedures through a “one-stop” mechanism, encouraging private sector investment, improving the legal framework, optimizing the administrative apparatus, accelerating major projects, and enhancing coordination between central and local governments through specialized conferences.

Further analyzing policy directions, the WB also emphasized the need for Vietnam to improve the efficiency of fiscal policies, accelerate public investment disbursement, and focus on both the scale and quality of public investments. In particular, the country should prioritize sectors that have a significant impact on economic productivity, such as transport infrastructure, energy, and human resources development.

Lastly, controlling inflation is considered a crucial factor. According to Mr. Coppola, in addition to targeting 8 per cent GDP growth in 2025, Vietnam also aims for double-digit growth in subsequent years. Closely monitoring inflation trends and implementing appropriate measures to maximize the economy’s potential are therefore essential.

 

 

-Phương Nhi

Q1 GRDP rose by 6.72% year-on-year, surpassing the 4.84% increase recorded in Q1 2024 and exceeding the planned growth scenario for Q1 2025.

The central province of Quang Tri has recorded GRDP growth rate of 6.72% in the first quarter of 2025, surpassing the 4.84% increase recorded in Q1 2024, and exceeding its planned growth scenario for the first quarter of this year, thanks to strong performances across all sectors. This achievement significantly contributes to the province's annual growth target of 8% or more.

The agriculture, forestry, and fishery sector expanded by 6.35%, with the forestry sub-sector leading the charge with a remarkable growth rate of 19.81%. The logging industry also surged by 33.16%, driven by rising demand for wood exports. Agriculture grew by 2.73%, bolstered by a 3.90% increase in live weight livestock output.

The industry and construction sector recorded a 6.38% increase, outpacing the 4.60% growth observed in Q1 2024. Signs of recovery in the processing and manufacturing industry contributed to a 4.89% growth rate, while electricity production and distribution saw impressive growth of 13.86%. Construction maintained a strong performance with a growth rate of 6.81%.

The service sector experienced robust growth, rising by 7.29% compared to the same period last year. Market service industries, including wholesale and retail, financial services, banking and insurance activities, and information and communication, all recorded significant gains.

-Nguyễn Thuấn

The Index of Industrial Production (IIP) rose 7.8% year-on-year

Vietnam’s Index of Industrial Production (IIP) in the first quarter of 2025 rose 7.8% year-on-year, according to the National Statistics Office (NSO).

The manufacturing and processing sector jumped 9.5% year-on-year, electricity production and distribution increased by 4.6%, and water supply and sewerage and waste management and remediation activities surged 11.6% while mining dropped 4.7%.

Among the total 63 centrally - run cities and province, 59 recorded an increase in the IIP during the period, while 4 recorded declines.

Some localities have seen a fairly high increase in the IIP due to a sharp increase in the processing and manufacturing industry, including Phu Tho (44%), Bac Kan (31.8%), Bac Giang (27.2%), and Nam Dinh (23.5%).

The NSO also reported that the number of workers working in industrial enterprises as of March 1, 2025, increased by 1.1% compared to the same time last month and by 4.8% compared to the same time last year.

 

-Huyền Vy

Vietnam's government is serious about taking proactive steps to demonstrate a real commitment to addressing the trade imbalance while solving burdens and barriers faced by American companies and investors, according to an AmCham representative.

In his recent interview with the Vietnam Government Portal (VGP), Executive Director of the American Chamber of Commerce (AmCham) in Hanoi Adam Sitkoff voiced his support the removal of all trade barriers between Vietnam and the United States.

Mr. Sitkoff said that Vietnam's government is serious about taking proactive steps to demonstrate a real commitment to addressing the trade imbalance while solving burdens and barriers faced by American companies and investors.

Vietnam recently reduced tariffs on thirteen product categories that directly benefit U.S. exporters, he explained, adding that the leadership in Vietnam has also pledged to facilitate the purchase of more American products.

"I support the removal of all trade barriers between our two nations and believe that by opening its market to more U.S. goods and services, Vietnam can help to rectify the trade imbalance between the two countries in a manner that benefits both countries,"  the AmCham representative said.

Vietnam has developed into one of America's fastest growing export markets and as the middle class in the country grows, there are great opportunities for U.S. agriculture, aircraft, energy, equipment, medicines, technology, and many other sectors that create wealth and jobs in the United States. There is so much to gain from a strong bilateral commercial relationship, according to Mr. Sitkoff.

Regarding the U.S. Administration's imposition of reciprocal tariff on Vietnam, he shared: "I am disappointed by the U.S. President's decision to impose a 46 per cent tariff on U.S. imports from Vietnam."

He expressed his belief that lower tariffs for products coming into Vietnam, and for products reaching the American consumer is what will help U.S. companies, the economy, and consumers. Higher tariffs will not.

AmCham's leaders met with Deputy Prime Minister Ho Duc Phoc before his trip to the US. AmCham and the Viet Nam Chamber of Commerce and Industry (VCCI) sent a joint letter of concern to the U.S. Secretary of Commerce asking for a delay in the tariff implementation.

AmCham has held discussions with many U.S. businesses, and have also reached out to other major exporters such as Korean companies operating in Vietnam.

"We will continue both formal and informal engagement with the U.S. government and do our best to mitigate the impact of the new U.S. policy on trade and investment here,” Mr. Sitkoff said.

As soon as the tariffs were announced, Vietnam's government took action by convening discussions to assess the impact of the new policy, as well as reaching out to the Trump Administration to seek an implementation delay of the tariffs.

Mr. Sitkoff hailed Party General Secretary To Lam's phone conversation with President Trump, which is useful.

He suggested Vietnam improve market access for U.S. products and make doing business easier for U.S. investors in the country.

"I very much hope to see the two governments create a constructive program to help reduce the U.S.'s trade deficit with Vietnam in a way that boosts living standards and creates prosperity in both countries,” the AmCham representative said.

-

The pharmaceutical market value has increased significantly, from $2.7 billion in 2015 to $7 billion in 2025.

Vietnam's pharmaceutical industry is experiencing double-digit annual growth, with its market size projected to reach $10 billion by 2026.

Leveraging open policies and significant consumer potential, Vietnam is gradually emerging as a regional hub for pharmaceutical manufacturing and research.

The pharmaceutical market value has increased significantly, from $2.7 billion in 2015 to $7 billion in 2025. The country is home to over 238 drug manufacturing facilities meeting WHO-GMP standards, 17 facilities meeting EU-GMP standards, more than 5,000 pharmaceutical wholesalers, and over 62,000 retailers.

According to Vietnam Customs, pharmaceutical imports in 2024 totaled nearly $4.4 billion, marking a 27.9% increase compared to 2023. Major suppliers include France, the US, Germany, and India.

With a population of over 100 million and robust growth in healthcare spending (an 8.7-fold increase over the past 30 years), Vietnam has attracted the attention of international pharmaceutical corporations. Experts anticipate strong investment due to the country’s high-quality human resources, upgraded infrastructure, and transparent policies.

The National Strategy for the Development of Vietnam's Pharmaceutical Industry until 2030 and Vision to 2045 aims to elevate the industry to the level of advanced countries in the region. It focuses on ensuring affordable access to medicines, enhancing research capabilities, and applying technologies to produce originator drugs and modern dosage forms.

Vietnam also seeks to position itself as a contract manufacturing hub and a center for technology transfers of originator drugs within ASEAN, aiming to achieve Level 4 classification under the WHO standards.

Furthermore, the EU-Vietnam Free Trade Agreement (EVFTA) is generating significant benefits for European pharmaceutical companies, with 51% of EU pharmaceuticals now tariff-free. This advantage facilitates entry into Vietnam's market, including public hospitals, which account for 65% of the industry's revenue.

-Minh Huy

PM Pham Minh Chinh made the suggestion on April 7 night, saying that Vietnam is ready to negotiate with the U.S. for a mutually beneficial agreement.

At a meeting with relevant ministries and government agencies on April 7 night to seek more solutions in response to 46 per cent reciprocal tariff the U.S. has announced to impose on Vietnam, Prime Minister Pham Minh Chinh suggested the U.S. Administration delay the implementation of its new tariff policy for at least 45 days for bilateral negotiations.

Vietnam is ready to negotiate with the U.S. side to reach a bilateral agreement that benefits the two countries, continues to increase imports from the U.S., including products related to defense and security, and promotes the early aircraft delivery to the former, the PM was quoted by the Government News as saying.

Vietnam will review and fully and effectively resolve the issues concerned by the U.S. side; well handle issues related to monetary policy in line with Vietnamese law and international practices to stabilize interest and exchange rates in accordance with the Vietnamese economy, the PM added.

For non-tariff issues, the Prime Minister assigned ministries and agencies to study and provide satisfactory feedbacks to the U.S. side.

He tasked the Ministry of Industry and Trade to review and strictly control the origin of goods.

He also tasked the Ministry of Science and Technology to review legal regulations on copyright and intellectual property issues and effectively organize the implementation of these regulations to protect the legitimate rights and interests of entities.

-Vân Nguyễn

Total reigistered capital reaching nearly VND356.8 trillion ($13.7 billion).

Around 36,400 new enterprises were established in the first quarter of 2025 with total registered capital of nearly VND356.8 trillion ($13.7 billion), figures from the National Statistics Office show.

The figures represent a year-on-year reduction of 4% in the number of businesses and an increase of 1.3% in registered capital.

In March alone, there were more than 15,600 newly-established enterprises with total registered capital of over VND126.3 trillion ($4.8 billion).

The three-month period saw more than 36,500 enterprises resuming their operations, skyrocketing 54.8% year-on-year.

Meanwhile, a total of 61,400 enterprises registered for a temporary suspension of operations in the first quarter, rising 15.1% year-on-year; nearly 11,500 firms ceased operations while waiting to complete dissolution procedures, down 26.1%; and nearly 5,900 enterprises were dissolved, up 23%.

 

 

-Anh Nhi

The 2024 PAR Index maintained its positive growth trend, achieving an all-time high average score of 88.37%, a 1.39% increase from 2023.

The 2024 Public Administration Reform Index (PAR Index) recorded significant advancements, with the average score exceeding 88% – the highest level in its history – and all 63 localities surpassing the 80% benchmark.

Hai Phong emerged as the national leader in administrative reform for the second time.

Minister of Home Affairs Pham Thi Thanh Tra presented the results and rankings of the 2024 PAR Index for the People's Committees of provinces and centrally-run cities during the regular Government meeting on March 6.

Minister Tra noted that the 2024 PAR Index maintained its positive growth trend, achieving an all-time high average score of 88.37%, a 1.39% increase from 2023. Notably, this marks the second consecutive year where all localities achieved scores above 80%.

The report highlighted the top five localities in the Satisfaction Index of Public Administrative Services (SIPAS) 2024, including Hai Phong city, and the provinces of Thai Nguyen, Hai Duong, Quang Ninh and Ba Ria - Vung Tau. Meanwhile, such provinces as Bac Kan, Lang Son, Quang Nam, An Giang, and  Quang Ngai, ranked lowest in the SIPAS rankings.

Hai Phong city secured the top position in the 2024 PAR Index with a remarkable score of 96.17%, reflecting a 4.30% improvement and a rise of one rank compared to 2023. This marks the second time the northern port city has led the nation, after the first in 2021.

As a result, the top five in the 2024 PAR Index including Hai Phong city (96.17%), Ba Ria - Vung Tau province (93.35%), Hanoi (92.75%), Quang Ninh province (91.49%), and Thai Nguyen province (91.47%).

At the other end of the spectrum, the northern mountainous province of Cao Bang ranked last in the 2024 PAR Index, achieving a score of 82.95%.

-Thi Nguyễn

The southern city will establish an environment conducive to controlled testing by providing space, infrastructure, and support facilities for UAV testing.

Ho Chi Minh City (HCMC) has launched a plan to facilitate the controlled testing of new technology solutions, including unmanned aerial vehicles (UAVs or drones) and autonomous vehicles, within its High-Tech Park and Concentrated Information Technology (IT) Zones.

As part of the initiative, relevant departments, agencies, and units will enhance communication about the policy for controlled testing in these designated zones.

Training sessions will be organized for organizations, businesses, and individuals involved in research and development (RD), and the application of UAVs and autonomous vehicles.

Additionally, the city will establish an environment conducive to controlled testing by providing space, infrastructure, and support facilities for UAV testing.

Controlled testing of UAVs and autonomous vehicles will proceed with assistance provided to participating organizations. The HCMC High-Tech Park Management Board will oversee the testing process, coordinating with relevant agencies and units to ensure compliance with regulations. This supervision aims to safeguard safety, security, public order, and the interests of all stakeholders within managed areas.

The City People's Committee has designated Quang Trung Software City Development Company Limited (QTSC) and the High-Tech Park Management Board as the primary contact points for organizations seeking support in obtaining permits and licenses related to the controlled testing process, particularly those under the City's licensing authority.

-Thi Nguyễn

The growth driven by increase in consumption demand during Tet and holidays in the early year.

The total revenue from retail sales of consumer products and services in the first quarter of the year reached over VND1.7 quadrillion ($65.4 billion), a year-on-year increase of 9.9%, figures from the National Statistics Office show.

The retail sales of products amounted to over VND1.31 quadrillion ($50.4 billion), accounting for 76.8% of the total value and jumping 8.8% compared to the same period last year. That of food and foodstuffs surged 10.1%, household appliances and tools 6.3%, garment 6.9%, and cultural and educational products 13.3%.

In March alone, the revenue was estimated at VND570.9 trillion ($22 billion), up 10.8% year-on-year.

The retail sale increase was attributed to high consumption demand during the Tet (Lunar New Year) festival and holidays in the early year, according to the office. A rise in the number of foreign tourists to Vietnam also contributed to the growth of the trade and service sector.

 

-Vũ Khuê

A letter from VCCI and AmCham expressed deep concern about President Trump’s reciprocal tariff announcement.

The Viet Nam Chamber of Commerce and Industry (VCCI) and the American Chamber of Commerce in Hanoi (AmCham) sent a letter to the United States Secretary of Commerce on March 5, urging the Trump Administration to delay implementation of reciprocal tariffs on Vietnam’s exports to the US to avoid disrupting operations and undermining prior commercial decisions and shipment logistics, according to a report from the Government News.

VCCI and AmCham believe that the Government of Vietnam is serious about taking proactive steps to demonstrate a real commitment to addressing the trade imbalance with the U.S. while solving burdens and barriers faced by American companies and investors.

The two organizations, which represent the business communities of both countries, also encouraged both governments to engage in dialogue to create a constructive program to help reduce America's trade deficit with Viet Nam in a way that boosts living standards and creates prosperity in both countries.

The letter, signed by the leaders of both organizations, expressed deep concern about President Trump’s reciprocal tariff announcement and stated that, if implemented, the shockingly high new tariffs will negatively affect our members' businesses and customers, and the broader commercial relationship between our two countries. “Lower tariffs for products coming into Vietnam, and for products reaching the American consumer is what will help U.S. companies, the economy, and consumers. Higher tariffs will not.”

The letter explained that Vietnam reduced tariffs on thirteen product categories last week that directly benefit U.S. exporters.

Vietnamese leaders have also pledged to facilitate the purchase of more American products, and the two business organizations continue working with government authorities on resolving burdens including restrictions and inconsistent regulations for digital trade and broadcast, pharmaceutical imports, intellectual property rights, customs and tax procedures, procurement, data management and security, and more.

The letter said that Vietnam has developed into one of America’s fastest growing export markets and as the middle class here grows, there are great opportunities for U.S. agriculture, aircraft, energy, equipment, medicines, technology, and many other sectors that create wealth and jobs in America’s heartland. The letter noted that the Vietnamese and American economies are complementary rather than directly competitive.

The two organizations told the Commerce Secretary that they support the agreement proposed by Party General Secretary To Lam in his phone conversation with President Donald Trump on April 4  to remove tariffs and other trade barriers between the two nations.

A fast and fair agreement would add certainty for businesses and would help to rectify the trade imbalance between the two countries in a manner that benefits both countries, the letter noted.

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