Smart urban development, sustainable mobility, the digital economy, and modern trade are expected to open a new chapter in cooperation between Moscow and the southern city.

A business forum on trade and investment held in Ho Chi Minh City on December 3 has emerged as a cornerstone of Vietnam-Russia diplomatic and economic activities in 2025.

Hosted as part of the "Moscow Days in Vietnam" program, the event celebrated the 75th anniversary of diplomatic relations between the two nations.

With the presence of Minister of the Government of Moscow and Head of the Department for External Economic and International Relations of Moscow, Sergey Cheremin, the forum serves as the starting point for a series of accelerated cooperative programs between Moscow and Ho Chi Minh City in smart urban development, sustainable mobility, digital economy, and modern trade.

Deputy Consul General Yury Ivanovich Nemtsov shares examples of Moscow’s metro and smart city system.

On behalf of the Consulate General of the Russian Federation in HCM City, Deputy Consul General Yury Ivanovich Nemtsov shared examples of Moscow’s metro system, featuring 400-500 stations with modern designs, many resembling “palaces underground.”

“Moscow’s experience as one of the world’s fastest-developing and most-modern cities is valuable for Vietnam’s infrastructure and urban management development,” he said.

Modern urban model for HCMC

Speaking at the forum, Minister Cheremin painted an impressive picture of the Russian capital’s transformation over the past 15 years, from a vast megacity into one of the world’s most modern, safe, and efficient metropolitan areas.

Home to more than 13 million people, Moscow now boasts transport, healthcare, education, and digital infrastructure ranked among the best in Europe. The city has received numerous international awards for smart city development, sustainable transport, and quality of life.

“Yesterday, we signed a new cooperative program between Hanoi and Moscow, and we hope to prepare a similar cooperation program with Ho Chi Minh City in the near future,” he emphasized.

Echoing this, Ms. Cao Thi Phi Van, Deputy Director of the Ho Chi Minh City Investment and Trade Promotion Center, noted that HCM City and Moscow share many similarities in population, scale, and GDP contribution, providing a solid foundation for economic and trade cooperation.

Following its recent administrative expansion, the city now spans 6,772 sq. km with 14 million residents, which is comparable to Moscow, and contributes nearly a quarter of Vietnam’s GDP. The city boasts modern infrastructure, including two major airports, 164 hospitals, over 200 universities and colleges, and 66 industrial parks covering a total of 27,000 ha.

Looking ahead, it is targeting development in five key areas: a financial hub, smart urban development, innovation centers, smart logistics and seaports, and tourism and resort networks. HCM City currently has 127 projects seeking investment, with 20 key projects in high-tech, education, healthcare, and economic sectors.

Ms. Van emphasized that the similarities between HCM City and Moscow, combined with investor networking at forums, will act as a strong platform for the two cities to connect effectively with global markets and unlock new opportunities for investment and trade in the near future.

One of the forum’s most-discussed topics was the development of Moscow’s car-sharing system; an urban mobility model reshaping the city’s transport landscape.

Speaking with VnEconomy / Vietnam Economic Times, Mr. Ilya Koltygin, Head of the Russian Export Center (REC) in Vietnam, said car-sharing vehicles marked with decals will hit the streets of HCM City in the coming months before expanding to other cities.

According Mr. Koltygin, the model has already been successfully implemented in Moscow and other Russian cities. According to data, each shared vehicle can replace about five private cars, helping ease traffic congestion, a crucial factor as major Vietnamese cities like Hanoi and Ho Chi Minh City face growing pressure on infrastructure.

“Car-sharing promotes green transport, reduces emissions, eases congestion, and provides residents with more convenient mobility options,” he said.

With more than 50,000 shared vehicles, Moscow is now the largest car-sharing market in Europe and among the Top 3 globally. Studies in Russia show that a single shared vehicle can replace four to six private cars, significantly reducing congestion, parking demand, and emissions.

Urban cooperation opens a new chapter

Moscow delegates at the forum reaffirmed that its experience in urban development offers valuable lessons for HCM City.

First, as Vietnam’s metro and transport systems continue to grow, Moscow’s rapid transit expansion serves as a sound model. Since 2011, the city has added 123 metro stations and completed an 80-km circular line - the world’s longest - demonstrating efficient large-scale transit development.

Second, the city’s “City Operations Center”, a large data platform coordinating traffic, public services, healthcare, and education, highlights the role of smart technology in urban management. Several countries, including Vietnam, are among Moscow’s priority partners for adopting this model.

Third, Moscow is advancing green transport with the world’s largest electric bus fleet and a river electric craft network on the Moskva River; an approach relevant for HCM City as it develops water-based transport.

Fourth, there are strong opportunities for HCM City to partner in innovation, education, medical technology, and infrastructure.

Mr. Dmitrii Gashchenkov, Deputy Prefect of the Western Administrative Okrug of Moscow, highlighted Moscow’s “innovation heart” in the Western District, which is home to the Skolkovo Innovation Cluster, Moscow State University, major science and technology centers, modern hospitals, new metro links, and pedestrian bridges.

Trade between Moscow-based enterprises and Vietnam currently totals nearly half a billion dollars and is expected to grow with rising demand for high-tech goods, agricultural products, energy cooperation, and urban development.

Concluding the forum, Minister Cheremin emphasized Moscow’s readiness to share expertise and support HCM City across all priority areas.

“We invite Ho Chi Minh City to Moscow - a modern, vibrant, and strategic partner of Vietnam,” he said, signaling plans for a future cooperation program similar to the Moscow - Hanoi agreement signed just a day earlier.

-Nhu Quynh

The project has a total length of more than 207 km, with a total investment capital estimated at VND120.4 trillion (approximately $4.6 billion).

The Ho Chi Minh City People’s Committee has established a steering committee for the implementation of the Ring Road 4 Project.

The committee is headed by Chairman of the city’s People’s Committee Nguyen Van Duoc.

The city’s Department of Construction acts as the standing agency of the steering committee.

The National Assembly approved an investment plan for the Ring Road 4 in June this year, with a total length of more than 207 km, and  a  total investment capital estimated at VND120.4 trillion (approximately $4.6 billion).

Implementation of the project, which will run through Ho Chi Minh City and the two neighboring provinces of Dong Nai and Tay Ninh, was scheduled to begin in 2025, with the road expected to be completed and operational by 2029.

Among the three localities, Ho Chi Minh City plays a central role, ensuring the overall synchronization of the project and compiling reports for the competent authorities when adjustments to the policy are necessary. However, the three localities are fully responsible for the progress, quality and effectiveness of the project.

VnEconomy-Thanh Thủy

The southern province’s disbursement rate reached nearly 43 per cent of the plan set by the provincial People's Committee.

In the first 11 months of 2025, southern Dong Nai province disbursed nearly VND16 trillion ($607 million) in public investment capital, accounting for nearly 43% of the plan set by the provincial People's Committee.

The public investment capital allocated for the province in 2025 stands at nearly VND37 trillion (nearly $1.4 billion), including nearly VND32 trillion ($1.2 billion) allocated  by the Prime Minister, and over VND5 trillion ($190 million) by the Provincial People's Committee.

Accordingly, the disbursement rate of Dong Nai province by the end of November 2025 reached over 57 per cent of the provincial capital plan, higher than the national average disbursement rate (56.6 per cent).

Compared to the capital plan assigned by the Prime Minister, the disbursement rate accounted for nearly 50 per cent.  

VnEconomy-Thanh Thuỷ

Shunsin Technology plans to expand manufacturing in Bac Ninh province to produce Xbox gaming devices and a range of other electronic components.

Shunsin Technology Vietnam Co., Ltd., a subsidiary of Foxconn, is seeking approval to expand its manufacturing in northern Bac Ninh province, with plans to produce Xbox gaming devices and a range of other electronic components.

According to documents submitted to the provincial Department of Agriculture and Environment, the expansion will boost the plant’s total annual capacity to 198.2 million units, covering mobile phones, computer accessories, and audio equipment such as headphones, speakers and microphones, as well as various other electronic devices.

The company plans to add a production line for charging devices for smart rings, with an annual capacity of 180,000 units. It also aims to increase its mobile phone production capacity by 30 million units, bringing total output to 140 million phones per year.

In addition, Shunsin intends to manufacture up to 100,000 drones annually, and produce 4.8 million Microsoft Xbox gaming devices each year.

The company has already begun upgrading its facilities, with full operations expected to commence in April next year.

VnEconomy-Bạch Dương

The value surpassing the $62.4 billion recorded for the whole of 2024.

Vietnam’s agro-forestry-fishery exports earned an estimated $64.01 billion in the first 11 months of 2025, rising 12.6% year-on-year, according to the Ministry of Agriculture and Environment.

The value has already surpassed the $62.4 - billion value recorded for the whole of 2024. 

With the strong performance so far, the sector is forecast to reach  full-year export earnings  of $70 billion.

From January to November, agricultural products remained the largest contributor, bringing in $34.24 billion, up 15% year-on-year; forestry shipments rose 5.9% to $16.61 billion; livestock exports grew 16.8% to $567.4 million; and aquatic exports increased 13.2% to $10.38 billion. 

Several key commodities drove the sector’s growth, setting new revenue records. Coffee, fruit and vegetables, cashew nuts and pepper all posted strong gains.

Coffee continued to be the standout performer, with exports reaching 1.4 million tons worth $7.88 billion, up 14.1% in volume and 59.7% in value year-on-year. Fruit and vegetable exports also rose sharply by 19.5% to $7.91 billion. Cashew exports jumped nearly 20% to $4.76 billion, while pepper saw the highest price increases: despite lower volume, export value climbed more than 23% to $1.5 billion.

China remained Vietnam’s largest export market for agro-forestry-fishery products, accounting for 22% of total turnover, followed by the United States with 20.5%, and Japan with 7%.

VnEconomy-Chu Khôi

The three-day event offering a panoramic view of modern consumer trends, technology, and design through dedicated zones for food and smart consumer goods, as well as household electrical and electronic appliances.

The 23rd Vietnam International Trade Fair in Ho Chi Minh City (Vietnam Expo HCMC 2025) opened on December 4, hosting over 1,000 booths from 800 enterprises and trade promotion organisations across over 20 countries and territories, according to a report from the Vietnam News Agency.

The three-day event offers a panoramic view of modern consumer trends, technology, and design through dedicated zones for food and smart consumer goods, as well as household electrical and electronic appliances.

A key draw is the lineup of large-scale national and territorial sections, signaling the fair’s growing international clout. The Hong Kong (China) section stands out with a broad selection of high-demand urban-living products, including smart home devices, electronic accessories, innovative gadgets, advanced materials, and business solutions targeting both regional and domestic buyers.

Additionally, the B2B zone remains a centerpiece, connecting exhibitors directly with domestic and foreign buyers through a Buyer B2B program that includes private negotiation rooms and on-site booth visits for product evaluation and talks.

Supporting events include thematic seminars and networking sessions on trends in home utility technology, green consumption opportunities and challenges in Vietnam, and strategies for using digital trade to reach global markets.

VNA-Khánh Vân

The proposed support fund will source from the central budget for climate change and environmental protection for the Urban Renovating Project for housing areas on and along rivers, canals, and streams in the period 2025 - 2030...

The Ho Chi Minh City People's Committee on December 3 proposed the Ministry of Agriculture and Environment raising a support fund of VND10 trillion ($379 million) for the city's efforts to demolish houses on canal banks.

According to the proposal, the fund will be sourced from the central government's budget for climate change and environmental protection for the urban renovation project in areas with houses on and along rivers, canals, and streams for the period 2025 – 2030.

The Ho Chi Minh City People's Committee stated that the city's river, canal, and stream system has played a crucial role in drainage, flood regulation, and creating public spaces over the years. However, tens of thousands of houses still exist on and along these canals, concentrated in areas with high drainage pressure, thus posing risks of fire hazards, landslides, obstructing water flow, flooding, and environmental pollution, severely affecting urban aesthetics and the quality of life for residents.

Additionally, according to Notice 235-TB/VPTW, dated June 24, 2025, from the Office of the Party Central Commitee,  Party General Secretary To Lam requested Ho Chi Minh City to invest strongly in and accelerate the progress of eliminating temporary houses on and along canals. The goal set by the Ho Chi Minh City Party Congress for the 2025 – 2030 term is to resettle 20,000 houses, equivalent to 50 per  of the houses along the city's canals, by the end of 2030.

The Ho Chi Minh City People's Committee noted that currently, the city must focus significant resources on important socio-economic tasks in order to achieve double-digit growth, and complete the strategic transportation infrastructure network, especially the metro system and inter-regional connectivity projects. It therefore could not allocate sufficient funds for compensation, support, and resettlement, when implementing a project to eliminate these temporary houses

Moreover, the Ho Chi Minh City People's Committee believes that if the central government provides an additional capital, it will help the city be more proactive in implementing renovation projects, shorten relocation time, and thoroughly address pollution, landslides, and flooding in many key areas.

VnEconomy-Quốc Khánh

The central city's La Son Industrial Park - Zone No. 01 - is oriented to develop according to the green - smart - sustainable model, attracting industries with high added value and suitable for the global supply chain...

At a recent meeting between Chairman of the People's Committee of Hue City, Mr. Nguyen Khac Toan, and representatives from the Vietnam-Singapore Industrial Park Joint Venture Company Limited (VSIP), the latter expressed its desire to explore and implement industrial infrastructure projects in the central city, aiming to bring international standards and long-term benefits to the locality by 2026.

VSIP stated that it will invest in the construction and business of infrastructure at Hue's La Son Industrial Park – Zone 01 under the green – smart – sustainable model, prioritizing modern infrastructure, digital management, and comprehensive business support services. The company emphasized its focus on attracting  high-value-added industries such as clean technology production, electronics, deep processing, supporting industries, logistics, and high-tech sectors, aligning with the global supply chain shift.

The project has a total estimated investment of approximately VND7 trillion (equivalent to about $280.4 million). 

At the meeting, Mr. Toan acknowledged and appreciated VSIP's interest in Hue. He emphasized that VSIP is a strategic partner, accompanying the city in economic development, expanding industrial space, and contributing to sustainable growth. The city leaders commits to creating favorable conditions and supporting businesses throughout the research, implementation, and exploration of the project to ensure quick and effective progress, he said.

Currently, besides La Son Industrial Park, Hue City has five other industrial parks, namely Phu Bai, Phong Dien, Tu Ha, Phu Da, and Quang Vinh.

VnEconomy-Nguyễn Thuấn

With a new agreement signed, the two provinces will promote cooperation and share experiences in economic fields...

A Memorandum of Understanding (MoU) on friendly cooperation between Vietnam's Bac Ninh Province and South Korea's Gyeongsangbuk Province was signed  on December 3.

Under the MoU, the two sides will enhance people-to-people interactions; promote cooperation and share information and experiences in the fields of economy, trade, and science and technology.

Both sides also encourage student exchange programs between universities and colleges; expand cooperation in human resource training to meet the development needs of each locality.

In addition to economic cooperation, the two provinces will continue to implement cultural exchange activities, promote heritage, and strengthen people-to-people diplomacy; jointly promote the "Vietnam Village" project as a symbol of sustainable cultural cooperation, contributing to strengthening the comprehensive strategic partnership between Vietnam and South Korea,

Speaking at the signing ceremony, held in Bac Ninh, Mr. Pham Hoang Son, Chairman of the Bac Ninh Provincial People's Committee, believed that the MoU will expand comprehensive cooperation, attracting more investors from Gyeongsangbuk to explore and implement projects in Bac Ninh, contributing to the overall investment lelandscape of South Korea in the locality.

Mr. Lee Cheol Woo, Governor of Gyeongsangbuk Province, for his part, stated that Gyeongsangbuk hosts many software development promotion centers and is home to major corporations such as Samsung, Posco, etc., providing significant impetus for economic growth.

"Gyeongsangbuk Province and Bac Ninh Province have many similarities and have built effective cooperative relations in the past, serving as a foundation for further expanding comprehensive cooperation and attracting investment in various fields in the new development phase," he added.

In addition to the signed contents, Gyeongsangbuk wishes to collaborate with Bac Ninh to research solutions to improve the environment, enhance the quality of life for residents, and promote economic development towards a green and sustainable transition in the future.

VnEconomy-Phương Hoa

This initiative is backed by strong investment resources and a commitment to spend 4% of Hanoi’s budget on science and technology under the city’s venture capital fund program, set to be implemented starting in 2026.

Hanoi is set to establish mega-scale laboratories valued at hundreds of millions of USD or more, Director of the City Department of Science and Technology, Mr. Tran Anh Tuan, told the TECHFEST Vietnam 2025 press conference on December 3.

For example, Vietnam National University Hanoi at Hoa Lac will host a key laboratory for energy and the environment, while Hanoi Medical University will feature a life sciences lab, he added.

Notably, these will be "open laboratories" operating under a "three-party" model involving institutes/universities, businesses, and the city government. In the future, these labs will serve as the core infrastructure for researching and developing modern, new technologies. This initiative is backed by strong investment resources and a commitment to spend 4% of Hanoi’s budget on science and technology under the city’s venture capital fund program, set to be implemented starting in 2026.

"Only when we complete the infrastructure, increase investment, and establish mechanisms that are strong enough, can the ecosystem be nurtured to develop breakthrough technological ideas," Mr. Tuan affirmed.

According to Mr. Tuan, in the near future, once the investment rate for research and development (RD) and systematic infrastructure construction is raised from 1% to 2% of GDP, Vietnam will finally have sufficient resources to develop in-depth research groups in fields such as gene technology and stem cell technology.

Identifying one of the "bottlenecks" in the development of Hanoi's startup ecosystem over the years, Vice Chairman of the Hanoi People's Committee Truong Viet Dung pointed out that the coordination between the three parties—the city, universities, and enterprises—has not been truly effective.

Consequently, following working sessions with several universities in the area, Hanoi will officially inaugurate a network of innovation centers featuring approximately six Innovation Hubs on December 22, according to Mr. Dung.

In September, Hanoi established a Venture Capital Fund with a capital contribution of VND600 billion (nearly $22.8 million) from the city budget.

Vneconomy-Hạ Chi

The southern city requires resources of approximately VND1.8 quadrillion (over $68 billion) to achieve the goal of double-digit growth over the next five years, whereas current capabilities only meet about 30% of the capital demand.

At the ongoing 10th session of the 15th National Assembly (NA), NA deputies on December 3 heard a verification report from the National Assembly's Economic and Financial Committee regarding a draft resolution amending and supplementing several articles of the NA's Resolution No. 98/2023/QH15 on piloting specific mechanisms and policies for the development of Ho Chi Minh City.

According to a government proposal, presented by Deputy Prime Minister Bui Thanh Son at the session on the same day,  Ho Chi Minh City requires resources of approximately VND1.8 quadrillion (over $68 billion) to achieve the goal of annual double-digit growth rate over the next five years, whereas its current capabilities only meet about 30% of the capital demand.

"Supplementing breakthrough solutions beyond current laws into Resolution No. 98/2023/QH15 is essential to attract investment resources and foster development, aiming to build the city into the largest megacity in Southeast Asia," Deputy Prime Minister Son emphasized.

Accordingly, the Draft Resolution amends and supplements six existing articles; simultaneously, it adds a new article, Article 7a, focusing on four policy groups:

First,  the City People's Council is allowed to use the local budget for compensation, resettlement support, creating reciprocal land funds, or making payments to investors under BT (Build-Transfer) contracts.

Second, the City is permitted  to utilize 100% of the revenue from Transit-Oriented Development (TOD) land funds to invest directly in local railway projects and transport projects along TOD routes.

Third, the City People's Committee is authorized to decide on construction investments that combine housing, commercial, and service facilities at railway stations, train maintenance depots, and surrounding areas. Additionally, the Committee is empowered to determine technical-economic norms and planning land-use indicators in these areas that may differ from national technical standards.

Fourth, the scope of applying special investment procedures for projects within functional zones, aiming to shorten implementation time, will be expanded.

Regarding the free trade zone model, Article 7a has been added to establish a comprehensive legal framework, similar to the mechanisms currently applied in the cities of Hai Phong and Da Nang.

Accordingly, the Ho Chi Minh City is empowered to decide on the establishment, expansion, or adjustment of the boundaries of the free trade zone, stated the Deputy PM.

Vneconomy-Anh Nhi

The central province currently houses 22 industrial clusters covering a total area of over 571 ha.

Ha Tinh province in central Vietnam is stepping up efforts to attract secondary investors into industrial clusters as occupancy rates rise rapidly, infrastructure is progressively finalized, and support policies become increasingly open.

These factors are creating a vital foundation for developing industry and small-scale handicrafts in the province.

Ha Tinh province currently houses 22 industrial clusters covering a total area of over 571 ha. Of these, 12 state-funded clusters have attracted 179 projects with an average occupancy rate of over 63%. Meanwhile, 10 enterprise-funded clusters have secured 172 registered projects, reaching an occupancy rate of 31.22%.

The sectors operating within these clusters are diverse, ranging from light industry, processing, and mechanical engineering to infrastructure services and logistics. 

Under the provincial People's Council's Resolution No. 96/2022/NQ-HDND dated December 16, 2022, Ha Tinh offers support of up to VND500 million (nearly $19,000) per hectare for industrial clusters with enterprise-invested infrastructure, depending on the specific socio-economic zone. Furthermore, secondary investors enjoy incentives regarding land leases, taxes, and credit in accordance with State policies.

In practice, the effectiveness of these policies is clearly evident. The Cong Khanh 1 Industrial Cluster (Nam Hong Linh Ward), after just eight months of operation, has attracted seven secondary investors, achieving an occupancy rate of 46.8%.

The Thai Yen Industrial Cluster has also seen strong acceleration, attracting over 90 enterprises and business households. Its occupancy rate has exceeded 90%, an increase of more than 10% compared to the same period in 2024.

According to the Ha Tinh Provincial Master Plan for the 2021–2030 period, with a vision toward 2050, the province aims to establish 45 industrial clusters with a total area of nearly 1,900 ha by 2030.

Vneconomy-Nguyễn Thuấn

The 500kV Cha Lo – Ha Tinh transmission line project aims to transmit the capacity of the Cha Lo wind power plant, constructed in Laos, to Vietnam.

The People's Committee of Ha Tinh province has approved the investment policy and investor for the 500kV transmission line project from Cha Lo to the 500kV Ha Tinh substation (within Vietnamese territory).

The 500kV Cha Lo – Ha Tinh transmission line project aims to transmit the capacity of the Cha Lo wind power plant, constructed in Laos, to Vietnam.

According to the Provincial People's Committee, the project not only enhances the transmission capacity of the national power system but also alleviates the electricity shortage pressure in the northern region, while promoting bilateral energy cooperation between Vietnam and Laos.

Additionally, the project contributes to achieving renewable energy goals, regional economic development, and energy infrastructure in Ha Tinh. The connection of the power systems between the two countries is expected to mark a significant step in the national energy security strategy.

The project, valued at over VND2.3 trillion (over $88 million), aims to build a double-circuit 500kV transmission line spanning roughly 45 km. It also includes the expansion of two 500kV bays at the Ha Tinh 500kV Substation. The development requires 20 ha of permanent land, 15 hectares of temporary land, and covers a 162-ha safety corridor.

The project has a 50-year operational lifespan and will be implemented in two phases. Phase 1 is scheduled to run from the fourth quarter of 2025 to the third quarter of 2026, while Phase 2 targets full operation by the third quarter of 2027.

VnEconomy-Nguyễn Thuấn

The 14-km route requiring total investment at over VND 104.4 trillion ($4.0 billion).

Vingroup has submitted a pre-feasibility study to Ho Chi Minh City’s People’s Committee for a sea-crossing road and bridge project that will connect the southern city's coastal commune of Can Gio with its Ba Ria-Vung Tau area.

Total investment capital is estimated at over VND104.4 trillion ($4.0 billion).

The proposed route would begin at Bien Dong 2 Road in the Can Gio reclaimed coastal urban area, and end at the planned Mai Sao-Ben Dinh Intersection and 30/4 Street in Tam Thang Ward in the former province of Ba Ria - Vung Tau (now part of Ho Chi Minh City).

It is projected to have a total length of over 14km with six lanes, comprising a 3.1-km tunnel, a 8-km bridge, and a 3-km road.

The group has recommended starting construction in 2026 and completing the project by 2029.

VnEconomy-Đan Tiên

The phase two will involve building an additional passenger terminal and associated infrastructure, raising the airport’s annual capacity to 50 million passengers and 1.5 million tons of cargo.

The Airports Corporation of Vietnam (ACV) has submitted a proposal to the Ministry of Construction seeking approval in principle for investment in phase two of the Long Thanh International Airport project.

Under the proposal, phase two will involve building an additional passenger terminal and associated infrastructure, raising the airport’s annual capacity  to 50 million passengers and 1.5 million tons of cargo.

The investment capital is estimated at VND80 trillion ($3.1 billion), to be funded entirely from ACV’s own capital.

According to the feasibility study for phase one, research and investment preparation for phase two had originally been planned for the 2028–2030 period.

However, with national GDP forecast to grow at double-digit rates from 2026, and passenger volumes at airports nationwide projected to rise faster than earlier estimates, the Ministry of Construction believes investment studies for phase two should be initiated ahead of schedule.

VnEconomy-Tuấn Khang

Rising FDI is reshaping Vietnam’s plastics industry, creating growth pressure and opportunity as ACB supports enterprises upgrading to meet global standards.

Strong inflows of foreign direct investment (FDI) into Vietnam are creating powerful momentum across supporting industries. This trend presents both opportunities and challenges, pushing domestic enterprises to increase localization rates and to meet increasingly demanding quality standards. As a critical link in the supply chain, the plastics industry is entering a pivotal moment for transformation.

Vast room for expansion

Plastics manufacturing serves a wide range of sectors, from packaging and electronic components to automobiles, construction, healthcare, textiles, and consumer goods, thanks to its design flexibility and capacity to reduce costs and product weight.

 Plastics enterprises require not only capital, but also a financial partner with deep industry understanding to accompany them throughout their transformation.

However, according to the Ministry of Industry and Trade, Vietnam’s localization rate across supporting industries remains around 35 per cent, well below the target of 45–50 per cent by 2030. At the same time, domestic demand and opportunities linked to global supply chain shifts are widening the market gap. While some Vietnamese companies have mastered the production of complex components and high-tech plastic products, their numbers remain modest relative to market demand. Technology limitations, heavy dependence on imported raw materials - up to 70 per cent - rising competition, and increasingly strict green standards are forcing plastics producers to accelerate their transformation.

“To participate in the global supply chain and provide components for FDI enterprises in Vietnam, we must comprehensively upgrade, from technology application and production line modernization to human resource development and smart financial management, all toward sustainable growth. At the initial stage, enterprises require significant upfront capital,” said Mr. Le Van Thanh, Chief Accountant of a plastics component manufacturer supplying the healthcare sector in southern Dong Nai province.

Mr. Nguyen Van Hung, Director of a plastics company supplying components to FDI factories and exporting to the EU, added: “Vietnam is opening significant opportunities in the global supply chain, but capital pressure remains heavy. Imported raw material prices fluctuate with oil prices and exchange rates, while cash flow is often ‘locked’ due to long payment cycles. On top of that, green standards from the US and EU require sizable investment in new technologies and processes. What we need is not only capital, but a financial partner who understands the industry and can accompany us through this transformation.”

Financial leverage

With a deep understanding of the plastics industry, ACB has developed a full-cycle financial solutions ecosystem to help enterprises proactively manage resources, maintain stable production, and strengthen their global integration capabilities.

Regarding specialized solutions for plastics producers, a representative of ACB’s Corporate Banking Division said: “We provide flexible working capital loans including unsecured facilities or options requiring as little as 30 per cent collateral. At the same time, we offer medium- and long-term financing to support investment in machinery upgrades and production expansion. For export-oriented enterprises, our trade finance solutions, such as expedited L/C issuance, pre-payment against export documents, contract guarantees, and payment guarantees, help ensure delivery schedules and enhance credibility.”

ACB delivers comprehensive solutions enabling plastics enterprises to step onto the global stage.

ACB’s financial services ecosystem also helps plastics enterprises optimize daily transactions. For companies with frequent foreign-currency payments, ACB offers FX rate lock-ins of up to 48 hours, reduced or waived international transfer fees, and fast processing through electronic documentation. Enterprises can also ease financial pressure through exchange-rate and interest-rate hedging tools linked to market movements.

For FDI enterprises, ACB provides preferential credit packages with competitive interest rates, tailored to each stage of development, from initial factory construction to medium- and long-term expansion and working capital needs. The bank also offers trade and export financing solutions that help enterprises maximize tariff advantages under CPTPP, EVFTA, and RCEP, supporting market expansion and reducing capital costs. In addition, ACB delivers multi-account liquidity management solutions to optimize global cash flows and mitigate foreign exchange risks, a model well suited to cross-border supply chains that enables enterprises to operate transparently, control import costs, and standardize their financial processes.

Plastics manufacturing also faces mounting pressure related to recycling obligations and green production standards. To support compliance, ACB has launched a green credit package of up to VND5,000 billion ($192 million) to help enterprises invest in energy-efficient machinery, recycling systems, and emission-reduction technologies that meet ESG requirements and the expectations of global partners.

By positioning itself as a bridge between rising FDI inflows and the upgrading of domestic suppliers, ACB aims to play a meaningful role in Vietnam’s long-term economic development.

For more information on financial solutions for plastics enterprises, please visit ACB branches and transaction offices nationwide or contact the 24/7 contact center at +84 28 38 247 247.

-Diep Linh

According to Deputy Minister of Finance Cao Anh Tuan, SCIC needs to operate as a professional financial investor rather than an administrative agency.

Experts are calling for the State Capital Investment Corporation (SCIC) to be elevated into a leading economic powerhouse, capable of competing on the regional and global stage.

At the workshop "Promoting the SCIC Model Towards Professional Capital Management, Forming a Government Investment Fund" on December 3, experts agreed that it is time to elevate the State Capital Investment Corporation (SCIC) to become a true "leader" of the economy, reaching regional and global levels as expected by the government and the people.

Over nearly two decades of formation and development (2006 – 2025), SCIC has proven the soundness of the policy of separating state management functions from enterprise governance functions. 

However, Deputy Minister of Finance Cao Anh Tuan candidly acknowledged that the results achieved are still not commensurate with the potential and position that SCIC aims for.

Legal and regulatory barriers have prevented SCIC from fully unleashing its financial "iron fist" strength, he told the workshop "Promoting the SCIC Model towards Professional Capital Management, Forming a Government Investment Fund" on December 3.

In the context of Vietnam aiming to become a developed, high-income country by 2045, SCIC's role cannot stop at receiving and divesting small enterprises. Therefore, SCIC's development direction in the coming time is to transform into a Government Investment Fund (GIF).

"SCIC needs to operate as a professional financial investor rather than an administrative agency," added the deputy minister.

Deputy General Director of SCIC, Dinh Viet Tung, suggested that the Temasek Government Investment Fund model of Singapore is suitable for Vietnam. 

Regarding resources, to become a true Government Investment Fund, SCIC needs to accumulate sufficient resources. 

Regarding the financial mechanism, Mr. Tung proposed a mechanism to be granted higher autonomy. Instead of submitting all profits to the State budget, SCIC is allowed to retain post-tax profits to supplement the investment development fund and increase charter capital.

In the coming time, SCIC will focus resources on key industries and fields such as technology, innovation, and digital transformation.

Notably, a new direction proposed by SCIC is to directly invest abroad, conduct international mergers and acquisitions (MA) to access new technology and enhance national competitiveness.

Therefore, a roadmap consisting of two phases has been outlined by SCIC. 

Phase 1 (2026 – 2027) serves as the momentum-building and pilot phase. SCIC will continue the transfer and equitization as planned, but the focus will shift toward capital investment. 

In phase 2 (2027 – 2030), SCIC will officially transition to full operation under the Government Investment Fund model. 

According to Mr. Nguyen Chi Thanh, Chairman of the SCIC Members' Council, this proposed model only works effectively when SCIC is granted sufficient authority and autonomy in investment and divestment decisions, avoiding administrative interference in business activities.

This change, according to Mr. Thanh, requires great consensus and determination to reform the institutional framework from the Government and ministries. 

VnEconomy -Anh Nhi

Despite recent price volatility, export performance remains robust.

Domestic coffee prices continued their downward trend in the morning of December 3, marking the third consecutive decline since the start of the week. This domestic slide mirrors a global slump, driven by significant losses on both the London and New York exchanges overnight (Vietnam time).

Despite recent price volatility, export performance remains robust. According to the General Department of Vietnam Customs, exports from the beginning of the year through November 15 reached nearly 1.35 million tons, valued at $7.64 billion. This represents a 14.6% increase in volume and a massive 62.3% surge in value compared to the same period in 2024.

The Vietnam Coffee and Cocoa Association (VICOFA) estimates that export turnover for the first 11 months hit $7.85 billion and forecasts that full-year revenue for 2025 will surpass the $8 billion mark.

Notably, processed coffee has become a new growth driver with $1.46 billion, up 58 per cent compared to the same period in 2024. This shift shows that the industry is moving from growth based on volume to growth based on quality. 

Addressing the Asia International Coffee Conference - Coffee Outlook (AICC) in Ho Chi Minh City on December 2-3, Deputy General Director of Simexco Dak Lak, Nguyen Tien Dung, stated that not only the EU but also demanding markets like Japan are beginning to require agricultural products to comply with deforestation-free and low-emission standards.

Therefore, he advised farmers to strongly shift towards sustainable production, develop organic coffee, circular economy, and continuously innovate to maintain added value and competitiveness.

VnEconomy-Chu Khôi

The summit focusing on advancing smart, investable and sustainable urban development in Vietnam.

The 2025 Intelligent Community Forum (ICF) Global Summit opened on December 3 in Ho Chi Minh City, bringing together more than 600 urban leaders, technology experts and international investors, the Vietnam News Agency has reported.

Co-organised by HCM City’s People’s Committee, ICF and Becamex, the summit focuses on advancing smart, investable and sustainable urban development in Vietnam. It serves as a platform to deepen international cooperation, attract high-quality investment and discuss the evolution of next-generation urban models.

ICF co-founder Robert Bell described the summit as an opportunity to accelerate digital transformation and sustainable investment across Vietnam. He expressed ICF’s intention to strengthen connections between global smart communities and Vietnamese enterprises to support economic growth and smart urban development.

Speaking at the opening ceremony, Vice Chairman of the municipal People’s Committee Nguyen Loc Ha emphasised that the city is entering a restructuring phase guided by a vision to build a modern mega-urban centre driven by knowledge, technology and innovation.

He underscored the city’s twin transformation agenda, digitalisation and green growth, including efforts to develop shared databases, upgrade digital and transport infrastructure, and expand the innovation ecosystem through state–academia–business collaboration.

VNA-Khanh Van

The meeting reviews and assesses the implementation of agreements under the Vietnam–Laos Cooperation Plans for the 2021–2025 period and for 2025; and discusses and agrees on cooperation orientations and tasks for the 2026–2030 period and for 2026…

Vietnamese Prime Minister Pham Minh Chinh and his Lao counterpart Sonexay Siphandone co-chaired the 48th meeting of the Vietnam–Laos Intergovernmental Committee on Bilateral Cooperation in Vientiane on December 3, according to a report from the Vietnam News Agency.

The meeting aimed to review and assess the implementation of agreements under the Vietnam–Laos Cooperation Plans for the 2021–2025 period and for 2025; and discuss and agree on cooperation orientations and tasks for the 2026–2030 period and for 2026, particularly the realization of the outcomes of the recent high-level meeting between the Communist Party of Vietnam and the Lao People's Revolutionary Party.

Warmly welcoming PM Chinh and the high-level Vietnamese delegation, PM Sonexay emphasized that this working trip, taking place on the occasion of the 50th anniversary of the National Day of Laos, is of great significance, as it immediately advances the high-level agreements between the two Parties and brings to life the “strategic cohesion” between the two countries.

At the meeting, after listening to reports reviewing fields of collaboration in the 2021–2025 period and the orientations and tasks for 2026–2030, the two PMs and leaders of ministries, sectors, and agencies from both sides provided information and discussed specific measures to implement upcoming cooperation agreements, including concrete programs and projects.

PM Chinh identified 10 notable achievements in bilateral cooperation: political relations at the highest level; defense–security cooperation serving as a pillar; impressive growth in economic and trade ties; major breakthroughs in financial collaboration; progress in energy cooperation; effective implementation of aid programs; efficient operations of the Laos–Vietnam expert team; strong growth in cooperation in education–training, culture, and tourism; and the removal of obstacles in various projects.

The two leaders noted that, based on the exceptionally strong and trusted political and diplomatic relations, which serve as the core and overarching orientation of the bilateral relations, cooperation in defense and security has continued to be close and effective, and contributed to successfully maintaining political stability and social order in each country, building a shared borderline of peace, stability, friendship, and comprehensive cooperation, and effectively combating various types of crimes, especially transnational crime.

Economic, trade, and investment cooperation has made significant progress. As of April, Vietnam had invested in 267 projects in Laos, with total registered capital of $5.63 billion. In the first 10 months of this year, Vietnam’s investment reached $566.1 million, focusing on high-quality, sustainable projects in key sectors where Laos has strengths, such as clean energy, mining, and agriculture.

Many Vietnamese-invested projects in Laos are operating effectively, contributing positively to socio-economic development, creating jobs and increasing incomes for thousands of workers, and generating additional revenue for Laos’ state budget, especially in sectors such as telecommunications, banking, rubber planting and processing, food and agricultural production and processing, and dairy manufacturing.

In the January-October period, two-way trade hit $2.6 billion, up 50.4% compared to the same period in 2024, with Vietnam recording a trade deficit of $626.2 million.

Cooperation in education and training, science and technology, culture, tourism, people-to-people exchanges, and collaboration between ministries, agencies, and localities have been vibrant and continued to be strengthened. Vietnam and Laos have coordinated closely and supported each other at multilateral and regional forums, particularly in working with other member states of the Association of Southeast Asian Nations (ASEAN) to build the ASEAN Community and maintain ASEAN’s unity and consensus on strategic regional issues.

PM Chinh emphasized that in the current context, the two countries need new determination, new approaches, and new driving forces to create momentum and renewed spirit for joint development; and further promote and deepen the special Vietnam–Laos relationship, making it a model in international relations.

To advance the bilateral ties, especially following the recent high-level meeting between the two Parties, the two leaders agreed to immediately work together to deepen the substance of Vietnam–Laos relations to a new height of “Great friendship, special solidarity, comprehensive cooperation, and strategic cohesion,” in which political relations are vital; defense–security and economic cooperation are key pillars; collaboration in science, technology, and education–training is a breakthrough; partnerships between businesses and the people are a foundation; and collaboration between localities is a driving force.

Agreeing with PM Chinh’s remarks, the Lao PM said he will direct the Lao–Vietnam Intergovernmental Sub-committee to create breakthroughs and ensure in-depth implementation of high-level agreements and directions across all fields.

Recognizing that Vietnamese investors in Laos have contributed to economic development and job creation, PM Sonexay encouraged Vietnamese businesses to invest in large-scale projects in Laos; promote connectivity in transport and energy infrastructure; implement the Vientiane–Hanoi expressway project; and improve the effectiveness of the potash mining project.

Affirming his commitment to continue creating favorable conditions for enterprises to invest and operate effectively in accordance with Laos’ requirements, especially in high-value clean agriculture, science and technology, he proposed both sides further improve the quality of human resources training, while agreeing on building Laos–Vietnam University and emphasizing the need to develop vocational schools and educational institutions in border areas.

The two PMs agreed to continue raising strategic trust to a higher level; further strengthen cooperation in defense and security; and create strong, groundbreaking, strategic progress in economic, trade, investment, and infrastructure cooperation. This includes promoting connectivity between the two economies, enhancing infrastructure links, ensuring economic and energy security for each country, removing obstacles and barriers, and ensuring that bilateral cooperation programs and projects achieve high effectiveness.

In the immediate term, beginning in 2026, both sides will focus on effectively implementing the Vietnam–Laos Joint Statements and the agreement signed at the 48th meeting of the Vietnam–Laos Intergovernmental Committee on Bilateral Cooperation; and will introduce strong and practical measures to further deepen political and diplomatic relations, strengthen the defence–security cooperation pillar, and continue giving special priority to cooperation in education and training.

Accordingly, the two sides will continue to deepen political and diplomatic ties to achieve even higher effectiveness so as to guide the overall direction of bilateral cooperation; maintain and enhance the effectiveness of existing cooperation mechanisms; and efficiently organize high-level visits, meetings, and exchanges in flexible formats.

The two PMs agreed to step up economic connectivity and promote bilateral investment and trade cooperation. Accordingly, the Lao Government will continue providing preferential and favorable conditions for large and key projects of Vietnamese enterprises; consider adjusting regulations related to timelines for hydropower and mining investment to align with new conditions; and promote strong growth in trade turnover, striving to increase bilateral trade in 2026 by 10–15% compared to 2025, with the goal of soon raising the turnover to $5 billion  and moving toward $10 billion per year. Both sides will focus on addressing obstacles, advancing transport infrastructure connectivity, and identifying agriculture and rural development as one of the pillars of their economic cooperation.

Both sides will continue to promote cooperation between ministries, sectors, agencies, and localities; and priorities and enhance the quality of cooperation in education, training, and human resources development. In this regard, the Vietnamese Government will continue to provide 1,300 scholarships for Lao officials and students to study in Vietnam and will continue sending teachers to teach Vietnamese language in Laos.

At the meeting, the two sides signed the Cooperation Agreement between the two Governments for the 2026–2030 period; the Agreement on the 2026 Cooperation Plan between the two Governments; the minutes of the 48th meeting; and the Cooperation Plan for 2026 between the Ministries of Education and Training of Vietnam and Laos.

VNA-Khanh Van