Vietnam 20250626
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Headlines:
Hanoi Races to Dodge US Tariffs
PM Talks Biz in Tianjin, Davos
Vietnam Bets on Finance Hubs
First Free-Trade Zone in Da Nang
Mega-Projects on the Fast Track
Foreign Firms Bet Big on Renewables
Vietnam Pushing Hard in AI Race
ESG Becomes 'Financial Passport'
Crackdowns on Fake Goods, Bad Food
Vietnam Finally Legalizes Crypto
A Bigger Role on the World Stage
Oil, Nuclear, Hydro
Economy Booms, But Clouds Gather
Hot Money Flows In
HCMC Pushes Affordable Housing
War's Lethal Legacy Lingers
Hanoi Races to Dodge US Tariffs
Prime Minister Pham Minh Chinh says he’s confident in reaching a trade agreement with the United States before the July deadline. If they fail, everyone’s staring down the barrel of crippling 46% reciprocal tariffs. Negotiations are mostly about reducing Vietnam's $12.2 billion trade surplus with the US. Washington also wants Hanoi to solve illegal trans-shipment concerns and reduce the amount of Chinese technology in exported devices. Businesses are scrambling to respond - 44% are diversifying their supply chains, 40% are increasing automation, and 41% are looking for new markets to sidestep the threat.
Read more: Reuters (Trade Negotiations), VIR (Business Response), East Asia Forum (Economic Impact), Credendo(Economic Vulnerability), Investing.com (PM Statement), SCMP (Negotiations Progress)
PM Talks Biz in Tianjin, Davos
The PM's participation in a business forum in Tianjin has resulted in nine new agreements in energy, railway, IT, telecommunications, real estate, and transportation. The economic relationship between China and Vietnam is already massive; two-way trade reached $205.2 billion in 2024. China is Vietnam's sixth-largest foreign direct investor, with total registered capital of $30.83 billion.
The PM also met with Chinese Premier Li Qiang on the sidelines of the 2025 Summer Davos Forum during their 75th anniversary of diplomatic relations. Both nations made the usual noises about working better together.
Read more: Vietnam News (Business Forum), Asian News Network (Cooperation Agreements), Khmer Times(Leadership Meeting), Vietnam Plus (Corporate Meetings), Xinhua (Electronics Supply Chain)
Vietnam Bets on Finance Hubs
Vietnam continues with its plans to set up International Financial Centers in Ho Chi Minh City and Da Nang. The $7 billion Ho Chi Minh City project will cover 783 hectares across the Saigon River, with a first-step 9-hectare core area costing $630 million. To support the project, a dual dispute resolution system using both common law courts and international arbitration options will be set up. The plans are to reform 13 policy areas, including foreign exchange, capital markets, and taxation to build a new financial ecosystem by the end of this decade.
Read more: VIR (Framework Design), Vietnam Insiders (Policy Areas), Vietnam News (Investment Plan), Vietnam Insiders (Development Timeline), The Investor (International Partnerships), VIR (Strategic Framework)
First Free-Trade Zone in Da Nang
Vietnam has “launched” its first free trade zone in the city of Da Nang. The zone now reportedly will cover 1,881 hectares for production, logistics, digital technology, and innovation. This number is a few hundred fewer hectares than earlier reports for unexplained reasons. Can Tho is growing through a merger with Hau Giang and Soc Trang provinces, creating a region of 6,400 sq.km and 4.2 million residents. Ba Ria-Vung Tau province has been able to pull in $4 billion for 73 projects, mostly in high-tech industries and seaport infrastructure.
Read more: Vietnam News (Da Nang FTZ), VN Economy (Decision Details), Vietnam News (Can Tho Expansion), VIR(Tien Giang Growth), VIR (Ba Ria-Vung Tau Investment)
Mega-Projects on the Fast Track
The North-South high-speed railway project, valued at $60.24 billion, is getting some interest from private investors; local giants Thaco Group and Vingroup's VinSpeed are each proposing 20% equity investments of approximately $12.5 billion. Siemens AG has said it wants to get more involved in high-speed railway development in discussions with the PM. Separately, a consortium of T&T, FUTA JSC, and Phuong Thanh has been picked to build the 74 km Bao Loc-Lien Khuong expressway valued at $673 million.
Read more: The Investor (Railway Investment), The Investor (Siemens Interest), Modern Diplomacy (Railway Strategy), The Investor (Shipping Partnership), VN Economy (Warehousing Expansion), VN Economy (Expressway Project)
Foreign Firms Bet Big on Renewables
International investors are betting heavily on offshore wind potential as regulators continue to shoot for more than 17,000 MW of capacity by 2035. Pacifico Energy (US) is developing a 30 MW onshore wind farm in Ben Tre province, and Germany's PNE Group has proposed a $4.6 billion, 2,000 MW Hon Trau project. Denmark's Copenhagen Infrastructure Partners is also moving forward with a 3.5 GW project off the coast of Binh Thuan.
Read more: VN Economy (Investment Landscape), Reccessary (Development Timeline), Economic Times (Solar Project), Vietnam News (UK Collaboration)
Vietnam Pushing Hard in AI Race
The “Au Lac AI Alliance” has been rolled out with more than 20 tech companies and academic institutions coming together to develop Vietnamese-language Large Language Models and build a homegrown AI ecosystem. The numbers are sobering: Vietnam needs 700,000 ICT professionals by year-end but only has 550,000 in the pipeline. Ho Chi Minh City is partnering with Google and AI Singapore to train 72,000 workers as part of its push to get the digital economy to 25% of regional GDP by 2030. The semiconductor sector is getting a similar treatment - plans are to develop 50,000 professionals by 2030 using Digital Twin solutions from Lam Research and Dassault Systèmes for virtual simulation-based training, though whether these programs can keep pace with the speed of technological change remains to be seen.
Read more: VN Economy (AI Alliance), VIR (Alliance Launch), VIR (Economic Impact), Vietnam Plus (Digital Skills Gap), Open Gov Asia (SME Digitalization), VEN (Semiconductor Talent)
ESG Becomes 'Financial Passport'
ESG standards are turning into a "financial passport" for the real estate sector, with 47 financial companies offering green loans totaling nearly VND600 trillion. Market research shows 65% of homebuyers would pay a 5-10% premium for ESG-certified projects, and green-certified buildings apparently boost asset values by 10-15%. The financial sector is getting on board - 15 banks are now creating green credit strategies. Currently, 80% of Vietnamese companies have committed to ESG adoption though only 15% publish full reports, suggesting there's still a gap between promises and transparency. In a related move, Vietnam is implementing a Norway-backed Deposit Return Scheme for beverage containers that's expected to divert 77,000 tons of packaging waste from landfills annually, reduce CO₂e emissions by 265,000 tons, and generate 16,000 jobs in waste management.
Read more: VIR (Real Estate Standards), Vietnam News (Market Benefits), Vietnam Plus (Corporate Adoption), Vietnam News (Financial Sector), Vietnam Insiders (Waste Reduction), Vietnam News (Nordic Partnerships)
Crackdowns on Fake Goods, Bad Food
Authorities are reporting disturbing food safety violations where Nhat Minh Food Production was repackaging animal-feed grade vegetable oil as cooking oil for human consumption under the OFOOD brand. The scandal is the latest indication of a much bigger problem - nearly 3,000 business households in Hanoi suspended operations during May-June, with most closures coming as a result of worries over product inspections and counterfeit goods. In HCMC, authorities have tackled nearly 8,000 cases of smuggling, trade fraud, and counterfeit goods in the first half of 2025, adding VND1.36 trillion to the State budget.
Read more: VN Express (Food Safety Violation), Vietnam News (Business Closures), VN Economy (Enforcement Actions), Vietnam News (Tracing Platform), VN Express (Border Seizure), Vietnam Insiders (Mislabeled Goods)
Vietnam Finally Legalizes Crypto
The National Assembly is passing the Law on Digital Technology Industry, which will come into effect next year and be Vietnam’s first legal recognition of digital and crypto assets. The law defines virtual assets as digital assets for exchange and investment, and cryptoassets as those using encryption technology, while explicitly excluding securities and central bank digital currencies - the framework also sets cybersecurity and anti-money laundering requirements. Currently 5th globally in crypto ownership, Vietnam saw crypto asset inflows of $120 billion between July 2022 and June 2023, with Vietnamese investors generating nearly $1.2 billion in returns.
Read more: VIR (Legal Framework), VIR (Regulatory Development), The Investor (Tax Administration), Bloomberg Tax(Platform Taxation)
A Bigger Role on the World Stage
The Permanent Deputy Minister of Foreign Affairs Nguyen Minh Vu has been elected Chair of the 35th meeting of States Parties to the UN Convention on the Law of the Sea. Vietnam has been officially designated as a BRICS partner country for 2025. Finally, the Prime Minister's attendance at the World Economic Forum's Annual Meeting of New Champions is being highlighted by local media as another step forward for Vietnam's three-decade long partnership with the WEF.
Read more: Vietnam Plus (UNCLOS Chair), Asian News Network (BRICS Interest), Vietnam Plus (BRICS Partnership), Vietnam Plus (WEF Relationship), VN Economy (APEC Meeting), VIR (ASEAN Integration)
Oil, Nuclear, Hydro
A new production sharing contract has been signed for Block 15-1 oil fields, operated by Cuu Long Joint Operating Company with a consortium including PVEP, Perenco, KNOC, SK Group, and Geopetrol - the block has produced 430 million barrels and generated $31 billion in revenue over the past 27 years. Nuclear energy ambitions are still apparent with collaboration with the International Atomic Energy Agency. On the hydropower front, Vietnam Electricity has been able to get a €65 million direct loan from German development bank KfW to expand the Tri An Hydropower Plant, while the country is looking to Malaysia's state energy company Petronas as a model for its own transformation, focusing on core businesses, expanding into new energy sectors, and hitting net-zero emissions goals by 2050.
Read more: The Investor (Oil Production), Vietnam Plus (Nuclear Energy), VIR (Hydropower Expansion), Offshore Energy (Offshore Block), VEN (Energy Transition)
Economy Booms, But Clouds Gather
The IMF's most recent Article IV consultation shows strong economic performance with 7.1% growth in 2024 and a current account surplus of 6.6% of GDP, though the IMF says growth may moderate to 5.4% this year. For now, the good news outweighs the bad - consumer confidence in an economic recovery has rebounded to a five-quarter high, and the VN-Index reached 1,367 points, its highest level in three years. The dong has hit a high against the US dollar at VND26,310, a 2.9% rise since the start of 2025.
Read more: Mirage News (IMF Assessment), Fibre2Fashion (Growth Projection), VIR (Consumer Confidence), The Investor (Exchange Rate), Vietnam Insiders (Stock Market), VIR (Market Accessibility)
Hot Money Flows In
In education, edtech company Galaxy Education got $10 million in funding to support a national ESL program. Exports are booming with rice exports reaching 4.5 million tonnes valued at $2.34 billion in the first five months of this year. The US Department of Commerce just gave a 0% anti-dumping duty exemption to seven Vietnamese pangasius fillet exporters, and state-run textile giant Vinatex reported superb financial results for the first half of 2025, with consolidated profits almost tripling to $21.3 million. Japan's AEON Group is expanding its "Vietnam Product Week" to 383 stores in Japan and extending it to Hong Kong, Malaysia, and Cambodia.
Read more: VIR (Healthcare Investment), VIR (EdTech Funding), VEN (Rice Exports), VN Economy (Pangasius Exemptions), Apparel Resources (Textile Profits), VIR (Market Expansion)
HCMC Pushes Affordable Housing
HCMC is making plans to develop affordable housing, setting aside more than 1,400 hectares for social and affordable housing with a focus on locations near export processing zones, industrial parks, and universities. Development continues at the high end as Vinpearl JSC has started construction of the Lang Van Resort Urban and Tourism Complex in Danang City, a 512-hectare development valued at $1.68 billion. Foreign direct investment continues to come into real estate. The Red River Delta is being turned into a modern, eco-friendly, high-income region by 2050, targeting annual growth of 9.0-9.5% and per capita GRDP of $11,000-12,000 by 2030.
Read more: Vietnam News (Affordable Housing), The Investor (Danang Complex), Vietnam News (Investment Drivers), Vietnam News (Bac Ninh Project), VIR (Red River Delta), Vietnam News (Tourism Development)
War's Lethal Legacy Lingers
The National Mine Action Centre reports about 800,000 tonnes of UXO remains scattered over 5.6 million hectares - nearly 18% of the country's total land area. Since 1975, UXO incidents have resulted in 40,000 deaths and 60,000 injuries, forcing the government to support clearance operations, mine risk education in schools, and victim support programs. The efforts are getting help from international partners including the US Government, KOICA, UNDP, and Mines Advisory Group.
Read more: Vietnam Plus
That’s it for this week!
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