Vietnam 20250619
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Headlines:
US Pushes to Reduce Chinese Tech Inputs
Digital Technology Law Recognizes Crypto
Administrative Reform For Two-Tier Gov’t
Bắc Ninh-Bắc Giang Merger Creates a Powerhouse
AI to Add $130 Billion to GDP by 2040
Technology Development Paramount
E-commerce Regulation Tightens to Combat Fraud
High-Tech Hubs Grow Across The Land
Infrastructure Projects to Reshape Cities
Renewable Energy Transition
New Tax Measures Target Health and Revenue
Vietnamese Brands Face Global Challenges
Governance and Anti-Corruption Fire Burns
New Laws to Change the Business Environment
Local Co.’s Get Regional Recognition
US Pushes to Reduce Chinese Tech Inputs
The United States is putting pressure on Vietnam to reduce the Chinese technology components used in electronics exported to America, with the threat of a possible 46% tariff. The main target of the threat targets products including VR headsets and smartphones. Vietnam's technology imports from China are still substantial at $44 billion in 2024, and the US is Vietnam's primary tech export destination at $33 billion. The biggest companies including Apple, Samsung, Meta, and Google will be affected if the tariff hits. Vietnamese manufacturers are looking into domestic component production, but development of the supply chain is still an unsolved challenge. The situation has already resulted in a downgrade of Vietnam's economic outlook, with Moody's dropping growth forecasts to 5.5% from 6.5%.
Read more: Vietnam Insiders (Tech Dependence), Bloomberg (Economic Impact), Startup News (Strategic Pressure), Moody's Analysis (Growth Forecast)
Digital Technology Law Recognizes Crypto
The National Assembly has passed what it says is the first standalone “Law on Digital Technology Industry,” in the world, with plans for it to take effect on January 1 next year. The law sets a legal framework for digital assets, distinguishing between cryptocurrencies and virtual assets while leaving out securities and other traditional financial instruments. The main incentives include 50% cost subsidies for domestic startups that get their hands on advanced technology and tax benefits for tech firms. The law was written with an intention to support the development of 150,000 digital technology businesses over the next ten years. Workforce development initiatives include a five-year personal income tax exemption for “high-quality” (lol) digital technology professionals and a simplified visa processes for foreign experts. The framework uses a risk-based categorization system for AI technologies, and it tries to balance tech advancement with principals of good governance.
Read more: VN Economy (Industry Support), The Block (Crypto Recognition), Crypto News (Tech Leadership), CCN(Startup Guide)
Administrative Reform For Two-Tier Gov’t
The administrative restructuring that will reduce the number of provinces and centrally governed cities from 63 to 34 in addition to removing district-level administrative units, has been approved. The reform, which got nearly unanimous delegate approval, will begin on July 1. The change is being made in an effort to improve efficiency, optimize resource allocation, and allow space for new development momentum and is expected to save as much as $7.3 billion between 2026-2030 partly by making 250,000 civil service positions redundant. Prime Minister Pham Minh Chinh has demanded uninterrupted public services during the transition, and ministries are required to update their procedural databases and force localities to set up 24/7 hotlines.
Read more: VIR (Economic Benefits), USA-ASEAN (Transition Details), The Investor (Legal Framework), VN Economy (Service Continuity)
Bắc Ninh-Bắc Giang Merger Creates a Powerhouse
The merger of Bắc Giang and Bắc Ninh provinces will create a unified Bắc Ninh Province covering 4,718 sq.km with a population of 3.6 million. The combined economic output of nearly VNĐ440 trillion will set it in fifth place nationally for gross regional domestic product. The merged province is home to 32 industrial parks and 86 industrial clusters, and is host to some of the biggest tech companies including Samsung, Foxconn, and Canon. Located in northern Vietnam's economic zone, the region is working on becoming a global electronics and semiconductor supply chain hub, with plans to get smart city and centrally governed municipality status by 2030. The merger will result in more unified planning, regional competitiveness, and international investment attention.
Read more: Vietnam News
AI to Add $130 Billion to GDP by 2040
Artificial intelligence is expected to add up to $130 billion to the economy by the end of the next decade, and if it does, that would be worth about a quarter of the country's current GDP. The economic impact will come from two main places: $45-55 billion from consumption of AI products and services, and $60-75 billion from productivity-driven cost savings. Vietnamese businesses are showing strong AI adoption rates, with 95% of leaders saying they plan to start using digital labor solutions within 12-18 months and 65% already using AI agents for automation. The main artificial intelligence investment focuses are currently on customer service, marketing, and product development. Organizations are changing the way they do business toward outcome-focused "work charts" rather than traditional hierarchies, with AI allowing for the democratization of expertise throughout companies.
Read more: VN Economy (Economic Impact), Vietnam News (Sector Implementation), VN Economy (Business Adoption), Vietnam News (Workforce Changes)
Technology Development Paramount
Vietnam wants to become an even more important semiconductor investment destination, and it’s talking up the workforce as its main competitive advantage. The country is home to more than 60 microchip design companies that have drawn nearly $12 billion in foreign semiconductor investment and which employ more than 6,000 engineers. Planners want to train another 50,000 university-level semiconductor personnel by 2030. The National Innovation Center (NIC) and Google Vietnam have started working together on the AI ecosystem, including the Google for Startups AI Bootcamp and the awarding of 60,000 scholarships. The country is also wants to see universal cloud computing adoption by 2030, with 100% implementation by government agencies and state enterprises expected.
Read more: VIR (Semiconductor Workforce), VN Economy (Google Partnership), Vietnam News (Cloud Computing), The Investor (6G Research)
E-commerce Regulation Tightens to Combat Fraud
E-commerce reforms to battle the scourge of counterfeit goods and ensure platform accountability are underway. The Ministry of Industry and Trade is drafting amendments to the E-commerce Law for introduction in October, setting up inter-agency coordination processes and improving oversight of livestream sales and digital advertising. The National Assembly has approved an updated Advertising Law that will take effect January 1, 2026, introducing rules for online content creators and digital platforms. The Ministry is also challenging a Finance Ministry proposal to exempt import taxes on e-commerce purchases under VND 1 million, saying it could harm domestic manufacturers (Thailand recently went through a similar process). The counterfeit goods problem currently results in an estimated annual loss of $2.5 billion in the agricultural sector alone.
Read more: VIR (Counterfeit Combat), Vietnam News (Enforcement Strategy), Vietnam Insiders (Import Tax), Vietnam News (Online Accountability)
High-Tech Hubs Grow Across The Land
Bình Dương Province looks like it’s going to be the next high-tech hub, as it has done well to attract international tech companies. AMD says it has an interest in semiconductor development, and Taiwan's MiTAC is investigating smart city projects including urban rail and AI-powered surveillance systems. The province is host to more than 4,500 foreign direct investment projects with registered capital of $42.7 billion. Ho Chi Minh City is setting up Vietnam's first net-zero emissions model at the Saigon Hi-Tech Park (SHTP), and is expected to get to net-zero emissions by 2045. SHTP has attracted 162 multinational projects including Intel, Samsung, and Schneider, and generates $20 billion in export revenue. Vietnam also continues work on a decentralized International Financial Centre strategy centered on Ho Chi Minh City and Đà Nẵng, positioning Đà Nẵng as an innovation hub for green, finance, and digital finance.
Read more: Vietnam News (Binh Duong Hub), Vietnam News (MiTAC Partnership), VN Economy (Net-Zero Park), Vietnam News (Financial Innovation)
Infrastructure Projects to Reshape Cities
The Danang Free Trade Zone covers 1,881 hectares and supports general manufacturing, trade, and digital technology components. Ho Chi Minh City's Master Plan through 2060 has been approved, growing its administrative area to 6,772.59 sq. km and setting the city up as a financial and service center for Asia. Hanoi's Ring Road No.4 project continues with a new joint venture approved for a VND56.2 trillion ($2.34 billion) sub-project, part of the larger 112.8 km ring road that spans Hanoi and two other neighboring provinces. The Long Thanh International Airport project is under pressure with a December 31, 2025 deadline for basic infrastructure completion; material shortages and early rainfall have slowed construction.
Read more: VIR (Danang FTZ), VN Economy (HCMC Master Plan), VN Economy (Hanoi Ring Road), VIR (Airport Challenges)
Renewable Energy Transition
The Power Development Plan VIII has set targets of 17GW by 2035 and 139GW by 2050, with an additional 240GW planned for green hydrogen production. The strategy is to develop integrated renewable energy hubs in port areas. Germany's GEO Group says that it will invest $50 million to set up a renewable energy workforce training center in Bình Định Province, training thousands of technicians annually with GWO certification. HDBank has approved a VND 2,000 billion credit facility to PV Power to import liquefied natural gas for the Nhon Trach 3 and 4 power plants, which will have a combined capacity of 1,624 MW and generate up to 12 billion kWh annually.
Read more: VIR (Offshore Wind), Vietnam News (Workforce Training), Solar Quarter (Green Financing), IEEFA(Transition Strategy)
New Tax Measures Target Health and Revenue
The National Assembly has approved some notable changes to the way some products are taxed, including a major increase on alcoholic beverages. Tax rates on alcohol (20% ABV and above) will rise from 65% to 70% by 2027, ultimately on their way to 90% by 2031. Sugar-sweetened beverages containing more than 5g of sugar in each 100ml will get an 8% tax starting January 2027, increasing to 10% in 2028. The VAT rate reduction of 2% has been extended through 2026 in an effort to keep the economy humming, but the waiver excludes telecommunications, finance, banking, real estate, and a few other sectors. New rules require household businesses with annual revenue of VND 1 billion or more to declare and pay tax based on actual turnover, effective June 1. Tax collection from individual and household businesses increased 26% year-on-year, reaching VND14.37 trillion in the first five months of 2023.
Read more: The Spirits Business (Alcohol Tax), Asian News Network (Sugar Tax), VIR (Excise Revisions), VIR (VAT Extension), Vietnam News (Small Business Impact)
Vietnamese Brands Face Global Challenges
The value of “Brand Vietnam” has risen to $507 billion, and places the country 32nd globally for 2024. These figures make it the fastest-growing “national” brand from 2019-2022. Even though things are improving at the international level, 80% of domestic businesses say they struggle with brand building and protection in international markets. Even some of the bigger names like Viettel, Vinamilk, and Trung Nguyên say they’ve had challenges with trademark misuse abroad. Vietnam has set up a specialized Intellectual Property (IP) Court under the new Law on Organisation of People's Courts that is made up of two regional courts: a Hanoi-based court covering 20 provinces/cities in the north, and a Ho Chi Minh City-based court serving 14 provinces/cities in the south. These courts will have jurisdiction over first-instance IP-related civil and administrative cases, and will have enforcement powers for court judgments.
Read more: Vietnam News (Brand Protection), Mondaq (IP Courts)
Governance and Anti-Corruption Fire Burns
The Ministry of Public Security's Investigation Security Agency has begun criminal proceedings against former Deputy Minister of Labour, Invalids and Social Affairs Nguyen Ba Hoan, and three other officials for alleged bribery. The case involves Hoang Long Construction and Manpower Supply JSC, where officials are accused of creating artificial barriers in labor export contracts and forcing businesses to pay under the table. The 2025 Vietnam Singapore Board Forum brought together more than 150 international leaders to talk about ASEAN's sustainability and governance challenges. The forum prioritized discussion of the green transition by 2050, sustainable development, and equitable economic benefit distribution.
Read more: VIR (Bribery Case), VN Economy (Labor Export Scheme), VIR (Corporate Governance)
New Laws to Change the Business Environment
The National Assembly has approved amendments to the Law on Enterprises with near-unanimous support. The updated law brings changes including new beneficial ownership disclosure requirements to support anti-money laundering regulations. The amendments now will allow civil servants to participate in business activities related to innovation, digital transformation, and research. The State Bank is preparing regulatory changes to end the state monopoly on gold bar production, allowing qualified businesses and banks to manufacture gold bars for the first time in an effort to reduce the price difference between domestic and international gold markets and improve market transparency. The National Assembly has also passed a new Law on Management and Investment of State Capital in Enterprises, removing previous restrictions on State-owned enterprises' real estate investments.
Read more: Vietnam News (Enterprise Law), VN Economy (Gold Market), VN Economy (SOE Investment), The Investor (Tax Changes)
Local Co.’s Get Regional Recognition
Vietnam has improved its standing on Fortune's 2025 Southeast Asia 500 report by getting 76 companies on the list, an improvement over the 70 companies listed last year. PetroVietnam saw its debut at 11th place, the first Vietnamese company to breach the top 20. Hoa Phat Group was significantly improved, climbing from 76th to 62nd place. The list places 12 Vietnamese enterprises in the top 100, in finance, banking, real estate, energy, and manufacturing. Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has become the first Vietnamese brand to rank in Southeast Asia's top 30 most valuable brands, locking in the 20th position with a brand value of US$2.105 billion, an 18% increase from 2023.
Read more: VIR (Fortune Ranking), Vietnam News (Vietcombank Achievement)
That’s it for this week!
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