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Headlines:
Electronics Exports $145 Billion Target
HCMC Up in Global Financial Center Rankings
Banking Embraces Data
Exports Remain Bullish for Growth
Korea-Vietnam Economic Friendship
Industrial Parks Support Regional Development
Real Estate Market Shows Frothiness
ADB Raises 2025 Growth Forecast
Tech Investment Drives Innovation
Stock Market Upgrade Hoped For on Oct 8
EVFTA Success, China Trade Expands
Energy Transition Continues
Electronics Exports $145 Billion Target
The electronics export sector is expected to hit $145 billion by the end of this year. Foxconn and Pegatron are each investing half a billion dollars into production facilities as the industry evolves into an innovation hub. The sector isn’t without headwinds, though: 100% of mobile phone export value relies on foreign direct investment, and 80% of components still need to be imported. The United States remains Vietnam’s largest export market, but China supplies four-fifths of manufacturing input materials.
Read more: Vietnam News (Export targets), VIR (Industry trends)
HCMC Up in Global Financial Center Rankings
Ho Chi Minh City (HCMC) moved up to 95th place out of 120 in the Global Financial Centres Index as of September, edging ahead of Bangkok and nipping at the heels of Jakarta. HCMC is among the Top 16 financial centres expected to gain influence over the coming 2-3 years. Singapore is the ASEAN leader, coming in at 4th globally, followed by Kuala Lumpur (45) and Jakarta (91).
Read more: Vietnam Insiders (Rankings), VIR (Financial center)
Banking Embraces Data
The banking sector is getting more comfortable with data-driven operations and decision-making, just as nearly 100% of customers are using digital channels to transact. More than 30 million inter-branch transactions worth about $40 billion are done daily, and the government continues to improve data connectivity with legislative reforms (like Resolution No.57-NQ/TW). Work is still ongoing as banks continue to invest in artificial intelligence and blockchain tech even as they call for more legal clarity around fintech.
Read more: VIR (Digital transformation), OpenGov Asia (Data systems), Vietnam News (Mobile money)
Exports Remain Bullish for Growth
Few places in the world have seen more of a dramatic change in the manufacturing industry over the past couple of decades than Vietnam. Its turn from mostly commodity export to fully manufactured goods, especially electronics, doesn’t show any signs of flagging. Exports have risen tenfold since 2007 to $476 billion in 2024, and now make up 84% of GDP. The nation has a current account surplus of $8.72 billion as of Q2 2025, a reversal after five quarters of deficits. The trade surplus almost got to ten big ones, coming in at $9.91 billion on exports of $117.03 billion against imports of $107.11 billion. FDI rose by 45% to $5.26 billion in Q2. Seafood exports were $7.6 billion by September, though export growth in that department is going to face year-end headwinds, including US tariffs and the EU’s IUU yellow card.
Read more: VIR (Export growth), Vietnam News (Trade surplus), Vietnam News (Rice exports), The Investor (Seafood exports)
Korea-Vietnam Economic Friendship
The Ministry of Finance took part in conversations with Korean businesses, specifically looking at tax and customs concerns while, at the same time, promoting a $9.67 billion support package for 2025. South Korea is one of Vietnam’s largest foreign investors - more than $92 billion has been committed as of early 2025. Korean firm Sanyo Denki plans new manufacturing facilities, and Lotte Chilsung Beverage and SEP Cooperative are investing in fruit processing and biofuel extraction in Can Tho.
Read more: VIR (Investment policy), Korea Times (Infrastructure), The Investor (Manufacturing), The Investor (Agro-processing)
Industrial Parks Support Regional Development
Industrial parks are being used to bring foreign investment and support manufacturing growth. Haiphong is developing the Tan Trao Industrial Park with Vingroup, investing over $160 million in a 227-hectare project that will include the Haiphong LNG-fuelled Thermal Power Plant (an investment of more than $7 billion). In Quang Tri province, the $1.99 billion Quang Trach II LNG-fired power plant will start construction this year and will be operational by 2028. Cần Thơ City has plans for five large-scale industrial and urban projects that will occupy 4,200 hectares and require an estimated investment of $415 million. Hai Phong is also setting up a free trade zone.
Read more: VIR (Haiphong development), VIR (Strategic hub), VIR (LNG power plant), Vietnam News (Can Tho projects), The Investor (Free trade zone)
Real Estate Market Shows Frothiness
Real estate is seeing a rise in transaction volumes. Apartment prices in Hanoi have doubled over the past decade, and now get as high as VND100 million ($3,787) a square meter. Real estate-related corporate bond issuance was VND22.1 trillion in August, a threefold increase from July. The government is setting up a state-run online property trading center to try to reduce speculation and improve transparency; a pilot program is scheduled for next year.
Read more: VnExpress (Price trends), VnExpress (Market analysis), Vietnam News (Bond activity), Vietnam News (Trading platform)
ADB Raises 2025 Growth Forecast
The Asian Development Bank (ADB) has raised Vietnam’s economic growth forecast to 6.7% for 2025, up from previous estimates, and adjusted the 2026 forecast to 6.0%. Inflation is expected to come in at 3.9% for this year, easing slightly next year to 3.8%. Exports were pushed forward ahead of US tariff hikes, resulting in 7.5% growth in the first half of 2025 - the second half probably won’t see the same pace. FDI disbursements were recorded at $15.4 billion, the highest volume in five years. Industrial output is expected to increase by 7.7%, services by 7.4%, and agriculture by 3.4%.
Read more: Vietnam News (Growth forecast), VIR (Economic outlook), VnEconomy (Detailed analysis)
Tech Investment Drives Innovation
Vietnam is setting itself up as an innovation hub for ASEAN, with national projects for science, technology, and digital change. The Prime Minister continues to emphasize the importance of building a knowledge economy that’s centered on technology and innovation. AI is taking a central role in national plans; for example, moves are underway to start teaching AI skills from the first grade, and the Communist Party published Resolution No. 57-NQ/TW to push AI use aggressively as the country tries to avoid the middle-income trap. The Provincial Innovation Index shows Hanoi leading again for the third year in a row. Data center capacity in support of cloud-computing growth is expected to rise from 45 MW in 2024 to nearly 1,000 MW by 2030.
Read more: Vietnam News (Innovation index), Vietnam Net (AI education), VnEconomy (Data centers), Vietnam News (Digital transformation)
Stock Market Upgrade Hoped For on Oct 8
The domestic bourse is in a sideways trading phase after a four-month rally that lifted the VN-Index by almost 40%. Investors are shifting to a more cautious stance ahead of FTSE Russell’s expected market classification review on October 8, which is expected to upgrade Vietnam from a Frontier Market to a Secondary Emerging Market. The government has made reforms to bring more foreign investment, including easing rules for foreign institutional trades. Major brokerage firms plan IPOs worth at least $1 billion. VPBank Securities is planning the country’s largest securities industry IPO, intending to raise nearly $481 million at a valuation of about $2.4 billion.
Read more: Vietnam Insiders (Market trends), MSN (Market catalysts), VIR (VPBank IPO), The Investor (Fund performance)
EVFTA Success, China Trade Expands
The EU-Vietnam Free Trade Agreement (EVFTA) has helped bilateral trade get to nearly €64 billion, up 47% in five years. Both sides formed a task force to bring down trade barriers and figure out cooperation in renewable energy and semiconductors. Vietnam-China trade continues to grow - exports to Shandong province were up almost a third in the first eight months of 2025. The country is also recognizing the hazards of non-tariff trade barriers as green and digital demands from abroad become necessary.
Read more: Vietnam News (EU-Vietnam relations), Vietnam News (China trade), Vietnam Plus (Trade barriers), Vietnam News (Import regulations)
Energy Transition Continues
Cleaner energy is in the cards with stories reported in LNG, renewables, and emissions trading. An emissions trading system pilot to redistribute carbon reduction responsibilities, particularly in the thermal power sector, is underway with hopes that it can slash compliance costs from $420.5 million to $68.9 million. Toyota is investing ~$360 million to make hybrid electric vehicles in Vietnam, and the Global Energy Alliance for People and Planet has allocated $1.7 billion for Southeast Asia’s clean energy transition. Hanoi has raised interest rate subsidies for electric bus investments from 50% to 70%, as in continues to support the development of greener public transport.
Read more: VIR (Emissions trading), VIR (Electric vehicles), VIR (Clean energy finance), Vietnam News (Electric buses)
That’s it for this week!
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