Vietnam 20250130: Arbitrary, Far-sighted, Bombastic
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Headlines:
Investment Push Targets High-Tech Growth
Property Sees Infra Growth and Foreign Interest
Exports Driven by Tech, Ag, and Sustainability
Digital Economy Takes Flight
Administrative Overhaul Underway
Tourism: Visas, Eco-Luxury, and Wellness
Agricultural Innovation Bears Fruit
Banking Balances Growth and Debt Recovery
Manufacturing Gets Investment and Green Tech
Energy Investments in Renewables and LNG
Investment Push Targets High-Tech Growth
Traction is being found for Vietnam as a global investment destination, particularly in high-tech sectors. European and French firms are expanding their footprints, with projects ranging from Skoda’s $500 million auto plant to renewable energy investments. The Netherlands is eyeing semiconductor opportunities, while NVIDIA and Google are committing to AI and infrastructure projects. To accelerate growth, the government has launched an Investment Support Fund under Decree 182, offering subsidies for semiconductor and AI development. FDI disbursement hit a record $25.4 billion in 2024, with Can Tho and other industrial zones pulling in some substantial cash.
Read more: Vietnam Economic News (Support industries), VnEconomy (Netherlands' semiconductor focus), LuatVietnam (Semiconductor policies), Vietnam Briefing (Investment Support Fund), Vietnam News (Can Tho investments), Vietnam Investment Review (French investments), W.Media (Global tech interest), VietnamPlus (European investments), Tuoi Tre News (High-tech fund launch), Vietnam Economic News (FDI growth), Tuoi Tre News (Vietnam’s FDI strategy)
Property Sees Infra Growth and Foreign Interest
Vietnam's real estate market is showing signs of recovery, supported by increased foreign investment, new legal frameworks, and infrastructure projects. In Hanoi, foreign buyers have doubled their property purchases in 2024 compared to the previous five years combined, mainly looking at high-end apartments. The broader market is also seeing a turnaround, with property developers expecting revenue growth of up to 50% in 2025 as demand rises and banks ease lending restrictions. The booming infrastructure sector, including expressways, metro lines, and the Long Thanh International Airport, is further supportive of real estate values. Condotel sales more than doubled at 2.6 times in 2024 numbers, reflective of the tourism recovery. Not every player is thriving though —Novaland, one of Vietnam’s biggest developers, recorded its first annual loss since 2016 due to restructuring and high costs. Overall, the market is expected to have a strong year ahead, with premium housing and prime locations leading the way.
Read more: VnExpress (Foreign buyers in Hanoi), The Investor (Growth cycle), Vietnam News (Revenue surge), Vietnam Investment Review (Infrastructure), VnEconomy (Hanoi market), The Investor (Novaland), VnExpress (Condotel)
Exports Driven by Tech, Ag, and Sustainability
Exports grew well last year, with electronics, durian, and rice leading the way. Durian exports hit $3.3 billion, but stricter Chinese regulations could impact future shipments. Rice exports to Singapore and the Philippines grew, with the latter reaching $2.6 billion. The electronics sector recorded strong growth, and footwear exports reached $27 billion despite rising environmental standards. The government is targeting a 12% export growth in 2025, with a focus on digital transformation, trade diversification, and sustainability. E-commerce is playing a bigger role, helping local businesses access global markets. To sustain momentum, exporters are being told they need to adapt to shifting regulations and consumer demands.
Read more: Vietnam Economic News (Footwear), Vietnam Economic News (Export strategy), VnEconomy(Philippines trade), VnEconomy (Durian exports)
Digital Economy Takes Flight
Digital transformation efforts are still on the upswing as companies leverage AI and big data to improve efficiencies. The postal sector is taking advantage of data mining and automation, cutting logistics costs by 40% and improving delivery accuracy. AI adoption is gaining momentum, with government funding in support of AI research, talent development, and infrastructure expansion. Analysts predict AI could add nearly $80 billion to Vietnam’s GDP by 2030. With nearly 74,000 digital tech companies operating, Vietnam is setting itself up as a regional tech hub. A strong legal framework and investment in digital infrastructure are seen as the main factors that will support sustaining this momentum.
Read more: Nhan Dan (Postal sector data use), OpenGov Asia (Data-driven transformation), OpenGov Asia (AI adoption)
Administrative Overhaul Underway
Tax identification numbers will be replaced with citizen identification numbers as personal tax codes starting from July of this year. A significant bureaucratic reform is expected to make headway in streamlining government at all levels. The Politburo recently issued Resolution 57 in support of science, technology, innovation, and digital transformation.
Read more: Vietnam Briefing
Tourism: Visas, Eco-Luxury, and Wellness
The tourism sector is looking for new strategies to grab high-value travelers. A visa exemption policy for Swiss, Polish, and Czech tourists is expected to drive long-stay visits to Phu Quoc and other resort destinations. The country is also expanding into wellness tourism, hoping to compete with Thailand and Indonesia in spa retreats and holistic health services. Luxury resorts are investing in green practices, digital transformation, and sustainability to try and bring eco-conscious travelers to the market.
Read more: Vietnam Economic News (Visas), Nikkei Asia (Wellness tourism), Vietnam InvestmentReview (Eco-luxury)
Agricultural Innovation Bears Fruit
The agriculture sector netted record export earnings of $62.5 billion in 2024, with strong performances in forestry, seafood, and rice exports. The industry does have some problems with overproduction and market imbalances, however, particularly in durian and pepper cultivation, where unregulated expansion has led to a supply glut. To stabilize rice prices and support farmers, the government is promoting stronger supply chain connections and financial assistance. A decree has been proposed to deal with quality and branding gaps in the farm sector, ensuring better market positioning. Policymakers are focusing on sustainable practices and diversifying export markets to maintain long-term growth. In shrimp news, farming has been improved through seaweed integration, helping raise incomes and animal survival rates.
Read more: Nhan Dan (Agriculture export records), Fresh Plaza (Overproduction issues), Nhan Dan (Rice price stabilization), The Fish Site (Shrimp)
Banking Balances Growth and Debt Recovery
The banking sector reported strong growth in 2024, with credit in Ho Chi Minh City rising by 11.3%, thanks by lending in SMEs, exports, and high-tech businesses. HDBank beat earnings targets, posting a 28.5% profit increase and strengthening its digital banking operations. While credit expansion supports economic growth, banks are also needing to manage bad debts. Several institutions, including VietinBank and BIDV, are selling mortgaged assets and auctioning off high-value properties and vehicles to recover outstanding loans. Analysts expect bad debts to rise slightly in 2025, but banks are taking action to maintain financial stability.
Read more: Vietnam Economic News (Credit growth), Vietnam Investment Review (HDBank earnings), Vietnam News(Bad debt sales)
Manufacturing Gets Investment and Green Tech
Czech automaker Skoda has started assembling cars in Quang Ninh using kits imported from India to take advantage of Vietnam’s growing auto market and ASEAN trade links. Local chemical giant Stavian is investing $22 million in battery energy storage systems to support renewable energy projects and reduce carbon emissions. As Vietnam’s exports to the U.S. continue to rise, analysts warn that quick manufacturing growth could draw increased scrutiny and tariffs from Washington.
Read more: The Investor (Skoda car production), The Loadstar (Manufacturing and U.S. tariffs), The Investor (Battery storage investment)
Energy Investments in Renewables and LNG
Japan’s MOL is expected to transport ethane from the U.S. to Vietnam under a long-term deal, supporting SCG Chemicals' petrochemical production. Russia is expanding its energy cooperation, offering oil, LNG, and nuclear technology, while also looking into renewable energy opportunities. The government is bringing biomass power into its direct power purchase agreement framework to further diversify the energy mix. A partnership between EVM Solarvest and PECC2 is expected to support solar energy adoption.
Read more: Offshore Energy (Ethane transport deal), Vietnam News (Russia energy cooperation), Bioenergy Insight(Biomass policy update)
That’s it for this week!
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