VnEconomy - Vietnam Economic Times

Four pillars set to drive Vietnam’s crypto asset market forward

Sun, 19 Jul 2026 05:00:00 GMT

For Vietnam, as the demand for capital to fund infrastructure, manufacturing, innovation, and digital transformation grows, tokenized Real World Assets (RWA) is viewed as a high-potential trend that requires serious research and cautious, long-term implementation.

Crypto assets—and specifically tokenized Real World Assets (RWA)—are significantly impacting global financial markets. These technologies offer the potential to expand access to capital and unlock "sleeping" resources within the economy, stated Vice Chairman of the State Securities Commission (SSC), Mr. Bui Hoang Hai.

"For Vietnam, as the demand for capital to fund infrastructure, manufacturing, innovation, and digital transformation grows, RWA is viewed as a high-potential trend that requires serious research and cautious, long-term implementation," he told the Vietnam RWA Summit 2026 held on July 18.

However, Mr. Hai emphasized a cautious approach: "The fundamental principle is that technology does not change the economic and legal nature of an asset. The value of any asset must first stem from real-world existence, legal property rights, and verifiable cash flows."

Four strategic orientations for market development

Consequently, the SSC has outlined four major orientations for the development of the crypto asset market and asset tokenization models.

First, balancing innovation and risk management. The SSC will research and propose that relevant authorities issue policies to create a "sandbox" or controlled testing environment, allowing new models to operate within a managed framework.

Second, perfecting the legal framework. Building on the results of the pilot mechanism under Resolution 05, the SSC will continue to advise the Ministry of Finance and the Government. It will also coordinate with relevant agencies to gradually complete the legal framework for crypto assets and tokenized real-world assets.

Third, enhancing investor protection. Protecting investors will go beyond addressing damages after they occur. More importantly, the focus will be on early prevention through transparent disclosure mechanisms, risk management, and effective supervision.

Fourth, strengthening inter-sectoral cooperation. The SSC will work closely with the State Bank of Vietnam, the Ministry of Public Security, and other relevant ministries in the management and supervision of the market. Furthermore, regulatory bodies will maintain a regular dialogue with associations, businesses, and investors to listen to practical feedback and refine policies accordingly.

Mr. Hai reaffirmed that the market for crypto assets in general, and RWA in particular, can only develop sustainably if built on a foundation of legal clarity, transparent cash flows, secure infrastructure, and effective investor protection mechanisms.

Criminal activities masked as innovation

Also speaking at the event, Colonel Nguyen Hong Quan, Deputy Director of the Department of Cybersecurity and High-Tech Crime Prevention (A05) under the Ministry of Public Security, stated that a major current challenge is how to prevent criminals from fully exploiting the cross-border nature, anonymity, and rapid movement of digital assets.

These criminals utilize these features to commit various illegal acts, including investment scams, asset misappropriation, money laundering, data theft, system attacks, platform and identity spoofing, malware distribution, smart contract exploitation, and the concealment of illicit cash flows.

Notably, many of these violations are sophisticatedly disguised as "innovation," technology projects, digital investment platforms, or new financial products. These schemes are often combined with social media, Artificial Intelligence (AI), deepfake technology, and other digital tools to build false trust, expand their reach, and cause significant financial damage to the public.

"We believe that the development of Blockchain and digital assets must be approached through a lens of controlled growth—one that encourages innovation while ensuring security, safety, and legal compliance," said Mr. Quan, while outlining several key directions:

First, cybersecurity and safety must be considered the foundation of every new technological model.

Second, there is a need to enhance transparency and accountability among all market participants.

Third, there must be a decisive shift in mindset from reactive handling after a violation has occurred to proactive, early, and remote prevention.

Fourth, coordination mechanisms must be strengthened between state management agencies, businesses, and relevant organizations.

VnEconomy-Bạch Dương

A driving force for green transition

Fri, 17 Jul 2026 10:00:00 GMT

Vietnam has officially introduced a carbon exchange, marking a major step toward its net-zero goals and a market-driven approach to reducing emissions.

On June 29, the Ministry of Finance (MoF), in coordination with the Ministry of Agriculture and Environment (MAE), officially launched Vietnam’s domestic carbon exchange. Speaking at the inauguration, Mr. Nguyen Anh Phong, Chairman of the Hanoi Stock Exchange (HNX), said the launch represents more than a technical milestone, as it links environmental responsibility with corporate economic interests while supporting the country’s long-term sustainable development.

Completing infrastructure

Known internationally as an Emissions Trading System (ETS), the carbon exchange is a mandatory market where greenhouse gas emission allowances and carbon offset credits are traded within a country.

According to the latest World Bank data, there are now 40 ETS markets worldwide, including Vietnam. As of April 1, the EU had the world’s highest carbon allowance price, at $85 per metric ton of carbon dioxide equivalent (tCO2e), followed by the UK at $55, New Zealand at $24, and China at $12.

Mr. Nguyen Anh Phong, Chairman of the Hanoi Stock Exchange

The carbon market not only supports businesses in achieving Vietnam’s net-zero emissions by 2050 target, but also provides a mechanism for companies to optimize emission reduction costs through the trading of emission allowances and carbon credits. In doing so, it advances the government’s sustainable development agenda by protecting the environment without sacrificing economic growth.

Vietnam’s carbon exchange will trade two types of assets: greenhouse gas emission allowances and carbon credits. Emission allowances represent the maximum volume of greenhouse gases that regulated businesses are permitted to emit over a specified period. The government has allocated allowances for 2025-2026 to 110 facilities operating in the thermal power, steel, and cement industries. Companies exceeding their allocated limits will be required to purchase additional allowances from businesses with surplus quotas. Allowances are measured in tCO2e.

Carbon credits, meanwhile, are tradable certificates that grant the holder the right to emit one tCO2e or another greenhouse gas. Under current regulations, companies may use carbon credits to offset up to 30 per cent of their allocated emissions allowance.

For emission allowances, sellers are companies whose actual emissions fall below their allocated quotas. Carbon credits, meanwhile, are sold by developers of State-recognized carbon credit projects.

During the pilot phase, only greenhouse gas emission allowances, traded under the code VN2025, will be listed on the exchange. Ninety-two of the 110 companies that received emission quotas are participating in the initial trading phase. The pilot market will operate through 2028 before transitioning to full commercial operation in 2029. Trading service fees will be waived throughout the pilot period.

According to HNX, the exchange is part of Vietnam’s commitment made at COP26 to achieve net-zero emissions by 2050. Under Decision No. 232/QD-TTg and Decree No. 29/2026/ND-CP, HNX has worked with the Vietnam Exchange (VNX), the State Securities Commission (SSC), the Department of Climate Change at the MAE, the Vietnam Securities Depository and Clearing Corporation (VSDC), the Bank for Investment and Development of Vietnam (BIDV), and other stakeholders to establish the legal framework, operational regulations, and registration, trading, and settlement systems for the carbon market.

The information technology infrastructure connecting HNX, VSDC, the Department of Climate Change, and BIDV has been operating safely and reliably. Operational rules and procedures have also been completed. The market currently includes six qualified securities firms as founding members, alongside more than 100 regulated emitters covered by the government’s emissions allocation program. “All necessary conditions for launching Vietnam’s carbon exchange have now been fully established and are ready for operation,” Mr. Phong said.

Five priorities

While the domestic carbon exchange is now operational, authorities say the next challenge is ensuring the market develops into a stable, transparent, efficient, and sustainable platform.

Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission, called on VNX, HNX, and VSDC to continue working closely with the MoF and MAE to implement five key priorities.

The first is ensuring the secure, stable, and uninterrupted operation of the trading, registration, custody, and settlement systems while maintaining cybersecurity and responding promptly to operational incidents.

Second, authorities will continue refining business procedures to make participation easier for securities firms, regulated emitters, and organizations trading carbon credits, ensuring market access remains transparent and efficient.

Third, regulators will strengthen market surveillance and strictly address violations, particularly market manipulation, fraud, and other abusive trading practices, to maintain a fair and healthy marketplace.

Fourth, government agencies will expand public communication efforts by providing timely and accurate market information, improving awareness among businesses and market participants, while combating misinformation that could undermine market confidence.

Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission

Finally, authorities will continue studying international best practices, strengthening the capacity of intermediaries, securities firms, and service providers, while further refining regulations to support the market’s long-term development and international integration.

The official launch of the carbon exchange is not only a significant milestone in completing Vietnam’s green economic framework, but also demonstrates the government’s commitment to building a transparent and efficient market that helps businesses adapt to the evolving requirements of international economic integration.”

Mr. Luong Hai Sinh, Chairman of VNX’s Members’ Council, said the exchange operators are committed to fully implementing their assigned responsibilities by ensuring the secure, transparent, and uninterrupted registration, trading, custody, and settlement of emission allowances and carbon credits in full compliance with Vietnamese law.

Going forward, the operators will continue coordinating closely with government agencies to refine operational procedures, strengthen market supervision, detect and address violations promptly, and expand training and public education programs, while recommending further policy improvements based on practical experience.

New opportunities for businesses

To encourage participation during the pilot phase through the end of 2028, the government has issued Decree No. 29/2026/ND-CP, exempting participating companies from exchange service fees.

“This is a meaningful policy that demonstrates the government’s support for the business community,” Ms. Phuong said. “It encourages companies to actively implement emission reduction measures, invest in new technologies, and pursue sustainable development. The official launch of the carbon exchange is not only an important milestone in Vietnam’s green economic development but also reflects the government’s determination to build a transparent and efficient market that helps businesses adapt to new international economic integration requirements.”

Speaking on the sidelines of the launch, Dr. Nguyen Phuong Nam, Founder and CEO of climate advisory and services firm Klinova, said the exchange creates new momentum for Vietnam’s corporate green transition.

“Demand for carbon credits in Vietnam is growing rapidly, particularly among companies seeking to offset emissions that cannot be eliminated from manufacturing, business operations, or major events,” he said. “A domestic carbon exchange provides businesses with a trusted platform to purchase high-quality, transparent carbon credits to compensate for those emissions.”

However, during the pilot phase, only emission allowances, not carbon credits, will be traded on the exchange.

Dr. Nam nevertheless encouraged businesses to participate in the broader carbon credit market, noting that carbon credits serve as independent verification of a company’s environmental performance. “Green finance fundamentally depends on rigorous post-project verification,” he said. “If a project successfully generates carbon credits, it demonstrates that its environmental performance has already undergone substantial verification.”

He expressed hope that once emissions allowance trading among the initial 110 regulated companies is operating smoothly, the market will gradually expand to include businesses seeking to purchase carbon credits. “That would not only make Vietnam’s carbon market more active, accessible, and efficient, but also accelerate the green transition across the country’s economy while enhancing both corporate credibility and Vietnam’s international reputation,” he said.

-Ngoc Lan

Financial architecture for economic growth

Fri, 17 Jul 2026 04:00:00 GMT

As Vietnam looks to modernize its growth model, policymakers are betting that International Financial Centers in Ho Chi Minh City and Da Nang can help channel the capital needed to power the country’s next stage of economic development.

For nearly four decades, Vietnam has built one of Asia’s most compelling economic success stories. Driven by export-oriented manufacturing, FDI, and deeper integration into global supply chains, the country has emerged as one of the region’s fastest-growing economies and a key manufacturing hub.

Yet as labor costs rise, manufacturing becomes more sophisticated, and competition for investment intensifies, the question is no longer simply how to attract factories. Increasingly, it is how to finance the country’s next stage of development - one driven by innovation, infrastructure, technology, and higher-value industries.

That ambition underpins Vietnam’s plans to establish International Financial Centers (IFCs) in Ho Chi Minh City and Da Nang. Rather than creating two competing financial hubs, the government envisions a single financial ecosystem spanning two complementary cities to channel global capital into Vietnam while providing investors with a regulatory framework aligned with international standards.

That vision formed the focus of the recent “VIFCs Unlocked: Vietnam’s Play to Become Asia’s Next Financial Hub” discussion, which underscored a common message: the IFC initiative is about far more than creating new financial districts, it is about building the financial architecture needed to support Vietnam’s next chapter of growth.

New growth story

Vietnam’s economic momentum shows little sign of slowing. Despite an increasingly uncertain global environment marked by geopolitical tensions, trade disputes, and persistent inflationary pressures, the country continues to outperform many of its regional peers.

“The economy is obviously not weak,” said Mr. Dan Martin, Co-head of Business Intelligence at Dezan Shira Associates. “Vietnam still has a lot of momentum, and that’s not in doubt by any means.”

Yet he argued that headline indicators alone no longer capture the full picture. For years, Vietnam’s investment narrative was built around familiar strengths: a young workforce, competitive labor costs, an expanding network of free trade agreements, and its strategic position within the “China+1” manufacturing strategy. Those advantages remain, but they are no longer what distinguishes Vietnam in the eyes of experienced investors.

“Vietnam is still one of the more interesting growth stories in Asia, but it’s no longer the easy Vietnam story that a lot of people are used to,” he explained. “The more useful question serious investors are starting to ask is: What kind of economy is Vietnam becoming now?”

His answer is that it is evolving into “a faster, larger, more connected, but also more demanding market.” That shift is evident in the changing nature of investment itself. Rather than relying primarily on low-cost manufacturing, Vietnam is pursuing a broad transformation that encompasses infrastructure, advanced industries, digital technologies, and institutional reform.

Mr. Dan Martin, Co-head of Business Intelligence at Dezan Shira Associates

Vietnam is still one of the more interesting growth stories in Asia, but it’s no longer the easy Vietnam story that a lot of people are used to.

Nowhere is that ambition more visible than in the country’s unprecedented infrastructure drive. Across Vietnam, hundreds of transport, logistics, and urban development projects are reshaping the country’s economic geography. New expressways, ring roads, airports, seaports, bridges, and railway corridors are not simply easing congestion, they are redefining where businesses invest, how supply chains operate, and which regions emerge as future growth centers.

Among the most significant projects are the Long Thanh International Airport and the expansion of Tan Son Nhat International Airport in the southern region, Hanoi’s Ring Road 4, the Lao Cai - Hanoi - Hai Phong railway corridor connecting northern industrial parks with the Chinese border and Hai Phong Port, and the development of Lien Chieu Port in Da Nang. Together, they represent a nationwide effort to modernize the country’s physical infrastructure while supporting industrial expansion beyond its traditional economic centers. “Vietnam is essentially rebuilding the machine while still trying to run it,” Mr. Martin observed.

The transformation extends well beyond transport infrastructure. Vietnam is also positioning itself to move higher up the manufacturing value chain by expanding into sectors such as semiconductors, AI, data centers, and advanced electronics. Major investments by global technology companies, coupled with growing domestic capabilities, signal a gradual shift from labor-intensive production toward more sophisticated manufacturing.

However, Mr. Martin cautioned that this transition also exposes new constraints. Reliable electricity, stronger domestic supplier networks, and a more skilled workforce are becoming increasingly important as Vietnam competes for higher-value industries.

At the same time, regulatory expectations are changing. Tax administration is becoming more digital, compliance requirements are tightening, intellectual property enforcement is strengthening, and greater scrutiny is being placed on rules of origin and supply chain transparency as international trade tensions evolve. “Compliance is no longer paperwork after the fact,” he said. “It’s becoming part of market access.”

That changing reality is also reshaping the questions investors ask. Rather than debating whether Vietnam deserves a place in their regional strategy, they are increasingly focused on more nuanced considerations: where within Vietnam to invest, how resilient local supply chains are, whether power infrastructure can support advanced manufacturing, and how effectively capital can be deployed into the country’s next generation of industries.

Those questions ultimately point beyond manufacturing itself. As Vietnam seeks to sustain its economic momentum, attracting factories alone will not be enough. Financing larger, more complex, and increasingly technology-driven industries will require a financial system capable of matching the country’s evolving ambitions - a challenge that lies at the heart of its plans to establish IFCs.

Financing the next phase

Vietnam’s economic transformation has been one of the fastest in Asia, lifting millions out of poverty and establishing the country as a global manufacturing hub. Yet history suggests that sustaining such momentum becomes increasingly difficult as economies mature. Many countries have successfully leveraged low-cost labor and export-oriented manufacturing to achieve rapid industrialization, only to find themselves struggling to advance further.

Mr. Richard D. McClellan, CEO of the Vietnam International Financial Center in Ho Chi Minh City (VIFC HCMC), believes Vietnam is approaching precisely that moment. “We’ve seen nearly four decades of 5-8 per cent growth,” he said. “We’ve seen massive levels of development.” The country’s younger generations are already enjoying significantly higher living standards than those before them, evidence of the progress Vietnam has made over the past several decades. The challenge now, he argued, is ensuring that this trajectory continues. “Most countries really tap out about where Vietnam is today,” Mr. McClellan said. “It requires a fundamentally different growth model to get to the next stage of development.”

That transition is already taking shape. Alongside an unprecedented infrastructure buildout, Vietnam is investing heavily in semiconductors, AI, digital infrastructure, renewable energy, and advanced manufacturing. These industries promise greater productivity and higher value creation than traditional assembly work, but they also demand significantly larger and more sophisticated sources of financing.

For Mr. McClellan, this is where the new IFCs enter the picture. Rather than viewing them simply as new financial districts, he sees them as part of a broader effort to build the financial architecture needed to support Vietnam’s next stage of development. “What we’re really doing is creating a channel for global capital to flow into Vietnam,” he said.

He likened the country’s current position to New York during the 19th century, when rapid industrial expansion created enormous investment opportunities but also required access to international capital to sustain growth. Vietnam, he argued, is entering a similarly capital-intensive phase, where financing infrastructure, technology, industrial parks, and innovation will become just as important as attracting manufacturers.

That objective distinguishes Vietnam’s approach from many established IFCs. While cities such as Dubai in the UAE have developed as regional financial hubs serving global markets, Vietnam’s ambition is fundamentally domestic: to mobilize international capital that can be deployed throughout the country to finance its own economic transformation.

The emphasis, therefore, is not simply on attracting banks or financial institutions. It is on creating an ecosystem where international investors can more readily identify opportunities, allocate capital, and participate in Vietnam’s long-term development.

Mr. McClellan illustrated the concept with the example of a Vietnamese industrial park developer seeking approximately $150 million to prepare land and build supporting infrastructure. Under current conditions, raising that capital often means spending months approaching investors across multiple international markets, navigating unfamiliar financial systems, and building relationships one-by-one.

If the IFC functions as intended, that process could become significantly more efficient. Instead of Vietnamese businesses searching the world for investors, global investors would increasingly be concentrated within Vietnam’s own financial ecosystem. “If we put pockets of money sitting in Ho Chi Minh City and in Da Nang, that same individual can spend a week in Da Nang or a week in Ho Chi Minh City and be able to find the capital so much faster,” he explained.

The implications extend well beyond the country’s two proposed IFCs. Easier access to capital could accelerate investment in infrastructure, manufacturing, logistics, technology, and small and medium-sized enterprises across Vietnam, strengthening the broader economy rather than benefiting only Ho Chi Minh City or Da Nang.

Achieving that ambition, however, requires more than attracting capital alone. Investors also need confidence that the legal, regulatory, and operational environment will meet international expectations. Building that institutional foundation has become the next major task as Vietnam works to turn its financial center ambitions into reality.

Building Vietnam’s financial gateway

For Vietnam, establishing the IFCs is about more than creating a new business district or offering tax incentives. The broader objective is to build an institutional environment that international investors recognize and understand, one capable of reducing friction in cross-border investment while integrating more closely with global financial markets.

That begins with regulation. Rather than operating solely under Vietnam’s existing regulatory framework, the IFCs are being designed around internationally-recognized standards familiar to global financial institutions. Proposed measures include adopting International Financial Reporting Standards (IFRS), incorporating internationally-accepted banking practices, allowing English-language documentation, and establishing specialized arbitration and dispute resolution mechanisms. “The regulatory framework is really the primary focus,” Mr. McClellan said. “Getting that right this year really, really matters.”

Mr. Oscar Njuguna, Director of Membership at VIFC Da Nang, said the goal is to create “a familiar ecosystem on the ground” by aligning Vietnam’s financial architecture with global standards, making it easier for international firms to operate in Vietnam with greater confidence and predictability.

Mr. Oscar Njuguna, Director of Membership at VIFC Da Nang

The model is deliberately structured to attract capital and create a regulatory pathway that enables investors to meet a familiar ecosystem aligned with international standards.

Rather than creating two separate financial centers, the government envisions a single IFC operating across two complementary locations. Ho Chi Minh City will build on its established strengths as Vietnam’s commercial and financial capital, while Da Nang is expected to focus on emerging sectors such as fintech, green finance, digital assets, trade finance, and innovation. “It’s one center, one operating framework, one legal and regulatory ecosystem, but housed in two cities,” Mr. Njuguna explained.

Innovation forms another pillar of the proposed framework. Regulators plan to introduce regulatory sandboxes that would allow emerging financial products and technologies, including fintech, tokenization, blockchain, and digital assets, to be tested under controlled conditions before broader implementation.

“There’s a lot of activity that’s already regulated in other jurisdictions but hasn’t yet been regulated in Vietnam,” he continued. “We’re going to use the sandbox mechanism to introduce those activities and then build out the framework afterwards.”

Officials also hope to improve the movement of capital itself through streamlined licensing and business registration, unrestricted foreign currency transactions between IFC entities and overseas markets, and clearer pathways for capital entering and leaving Vietnam.

“We’re looking at the pathway for investment to come into Vietnam, but then also to leave Vietnam in an orderly manner,” Mr. Njuguna said. “Predictability allows investors to plan their investments and realize those investments over time.”

While preferential tax rates, full foreign ownership, simplified visa procedures, and other incentives have attracted considerable attention, long-term success will depend less on incentives than on institutional credibility.

Mr. Richard D. McClellan, CEO of VIFC HCMC

Most countries really tap out about where Vietnam is today. It requires a fundamentally different growth model to get to the next stage of development.

Though the IFC’s overall framework has been established, many practical aspects, including registration procedures, membership arrangements, and the mechanics of operating across both cities, remain under development as officials work toward their launch. “We understand what our principles are, and we have a direction of travel,” Mr. McClellan said. “We need to work out the mechanics.”

Execution challenge

While designing an IFC is one challenge, delivering it is another. Building such a facility is not simply a matter of designating a district, introducing tax incentives, or issuing new regulations. It requires institutions, skilled professionals, legal certainty, and market confidence - all of which take years to develop.

Mr. McClellan acknowledged that the IFC remains very much a work in progress. While the legal foundation has been established, the regulatory framework, licensing procedures, and organizational structures are still being developed. For him, the immediate priority is ensuring that the regulatory architecture is credible enough to earn the confidence of international investors.

Human capital may prove an even greater long-term challenge. An internationally-competitive financial center requires not only investment bankers and fund managers, but also lawyers, accountants, compliance specialists, regulators, arbitrators, and technology professionals with experience operating in global financial markets. Developing that ecosystem cannot happen overnight.

“We’re going to need tens of thousands of Vietnamese who are capable and skilled in international finance,” Mr. McClellan said. He outlined a multi-layered approach that combines international recruitment in the short term, professional certification and industry training over the medium term, and closer collaboration with Vietnamese and overseas universities to develop future talent. During the IFC’s early years, foreign professionals are expected to play an important role in transferring expertise while domestic capacity is built.

The challenge extends beyond financial services. As Vietnam pushes into semiconductors, AI, data centers, and advanced manufacturing, demand for engineers, software developers, and other highly-skilled workers will continue to intensify.

Mr. Chris Vanloon, Chairman of AmCham Vietnam’s Da Nang Chapter, believes the central city is already adapting to those changing needs. While acknowledging that skilled labor remains a concern for some investors, he argued that universities are increasingly responding to industry demand through closer partnerships with employers, particularly in engineering and advanced manufacturing.

Mr. Chris Vanloon, Chairman of AmCham Vietnam’s Da Nang Chapter

The biggest misconception about Da Nang is that we’re still just a tourism hub for central Vietnam. The government is definitely focused on high-tech manufacturing, the IFC, semiconductor packaging, and related industries. Tourism is just the cherry on top.

Infrastructure presents another test. Vietnam’s massive investment in expressways, ports, airports, and logistics networks is intended to underpin its next phase of growth. Yet physical infrastructure alone is insufficient. As Mr. Martin noted, higher-value industries also require reliable electricity, digital connectivity, and resilient supporting infrastructure. “Power may quietly turn out to be the thing that defines the next phase of Vietnam’s growth,” he said.

The issue is becoming increasingly important as the country seeks to attract data centers, semiconductor production, electric vehicle manufacturing, and other energy-intensive industries that are far less tolerant of supply disruptions than traditional assembly operations.

Competition from elsewhere in Asia is also intensifying. Mr. Vanloon noted that countries such as Malaysia and Indonesia are aggressively pursuing many of the same industries Vietnam hopes to attract, particularly semiconductors and other high-tech manufacturing. Governments across the region are introducing their own incentive packages, investing heavily in industrial infrastructure, and competing for the same pool of global capital. “We need to take action now, or we’re going to lose the initiative,” he warned.

At the same time, Vietnam is becoming a more demanding place to do business. Mr. Martin observed that compliance expectations have tightened considerably in recent years, with greater scrutiny of tax administration, transfer pricing, environmental obligations, intellectual property, and rules of origin as international trade relationships become more complex. “Compliance is no longer paperwork after the fact,” he said. “It’s becoming part of market access.”

That evolution reflects Vietnam’s broader economic maturity. As supply chains become more sophisticated and investors commit larger amounts of capital, transparency, regulatory consistency, and institutional reliability become competitive advantages in their own right.

The vision is ambitious, and the economic rationale is increasingly compelling. Turning that vision into a trusted financial ecosystem, however, will depend on consistent execution over many years. In that respect, the IFC is not simply another development project, but a long-term exercise in institution building, one whose success will be measured not by how quickly it is launched but by how confidently global investors choose to use it.

-Linh Tong

Six banks syndicate over $1 bln for HCMC-Trung Luong-My Thuan expressway expansion

Fri, 17 Jul 2026 00:00:00 GMT

The lending consortium includes Vietcombank as the lead arranger, alongside VietinBank, BIDV, Agribank, TPBank, and VPBank.

The Saigon - My Thuan Expressway BOT Co., Ltd (the project enterprise) and a consortium of six banks have officially signed a syndicated credit agreement to fund the Ho Chi Minh City – Trung Luong – My Thuan Expressway expansion project.

The credit facility, totaling VND27.094 trillion (approx. $1.03 billion), secures the necessary capital to ensure the project stays on schedule.

The lending consortium includes Vietcombank as the lead arranger, alongside VietinBank, BIDV, Agribank, TPBank, and VPBank. According to the participating parties, this represents the largest credit financing ever granted to a transport project under the Public-Private Partnership (PPP) model in Vietnam.

Speaking at the signing ceremony on July 16, Deputy Minister of Construction Bui Xuan Dung emphasized that the completion of the credit agreement is a major milestone, providing the financial foundation to move the project forward according to the planned timeline.

The Deputy Minister noted that expanding the HCMC – Trung Luong – My Thuan Expressway is an urgent requirement to alleviate severe congestion on the route. The expansion aims to enhance traffic safety, reduce logistics costs, improve regional competitiveness, and create more development opportunities for the Mekong Delta.

Since Phase 1 of the Trung Luong – My Thuan section was put into operation, traffic volume has peaked at over 60,000 vehicles per day. This significantly exceeds the original design capacity, making the expansion an immediate priority.

The HCMC – Trung Luong – My Thuan Expressway expansion project has a total investment of VND36.125 trillion (nearly $1.4 billion). It is being implemented via the PPP model and notably involves no state budget funding.

Vneconomy-Đan Tiên

Vietnam's Every Half Coffee Roasters raises $8 million in Series A funding

Thu, 16 Jul 2026 07:10:00 GMT

Vietnamese specialty coffee chain Every Half Coffee Roasters has secured $8 million in a Series A funding round, providing fresh capital to accelerate its domestic expansion and strengthen its presence in international markets.

Founded in 2021 by coffee industry veterans Tran Le Minh Truc and Vo Duy Phu, Every Half Coffee Roasters has grown rapidly, expanding its network to 36 stores across Vietnam. The company reported year-on-year growth of 157%, underscoring rising consumer demand for specialty coffee.

The new investment will be used to expand the company's retail footprint in major cities, strengthen its e-commerce business and increase the distribution of Vietnamese specialty coffee products in overseas markets. Every Half also plans to continue investing in product quality and operational consistency to enhance the customer experience.

The Series A round was led by existing investors Openspace Capital and DSG Consumer Partners, marking the third investment by both firms in the company and reflecting their continued confidence in Every Half's growth strategy and execution capabilities.

Singapore-based Openspace Capital is a multi-strategy asset management firm with a strong focus on Southeast Asia. Its investment portfolio spans early-stage and growth equity, private credit, digital assets and listed equities.

DSG Consumer Partners, meanwhile, is one of the first venture capital firms in India and Southeast Asia dedicated exclusively to consumer businesses. The fund backs founders building next-generation consumer brands with long-term growth potential through patient capital.

-Hong Vinh

Over 300,000 businesses face registration revocation for abandoning registered addresses

Wed, 15 Jul 2026 03:00:00 GMT

Severe enforcement measures will be applied to more than 325,000 businesses that are no longer operating at their registered locations and still owe back taxes.

Nearly 600,000 businesses nationwide are currently under review as part of the "Clean Up Tax Identification Numbers (TIN)" campaign. This includes over 300,000 firms that have abandoned their registered addresses and more than 290,000 companies that have ceased operations but have not yet undergone formal dissolution.

Notably, severe enforcement measures will be applied to more than 325,000 businesses that are no longer operating at their registered locations and still owe back taxes.

According to the Department of Taxation under the Ministry of Finance, for businesses that have ceased operations for one year or more without notification, tax authorities will propose the revocation of their Business Registration Certificates by July 15. For cases eligible for compulsory enforcement, the revocation process must be completed no later than July 17.

The tax authority stated that even after registration is revoked, they will continue to implement management measures to force businesses to fulfill their tax debts before officially terminating the validity of their TIN.

In tandem with these measures, a list of violating businesses will be made public as per regulations. This includes publishing names on the tax authority's official e-portal and posting them at headquarters, with a completion deadline of July 17.

Furthermore, regarding the nearly 292,000 businesses that have stopped operating but have not completed dissolution procedures, local tax offices have been instructed to urgently notify and urge these taxpayers to finalize their tax declarations, payments, and dissolution paperwork before July 15.

The tax authority emphasized that they must also provide timely confirmation of tax obligations to allow businesses to legally terminate their operations in accordance with the law.

During the implementation of the campaign, the Department of Taxation has issued a series of detailed guidelines. These cover everything from action plans and goal setting to professional procedures, reporting regimes, and communication efforts to support taxpayers in managing their TIN-related procedures.

Vneconomy-Lan Anh

Government bond issuance reaches $6.94 billion in 6M

Tue, 14 Jul 2026 23:40:00 GMT

The figure equivalent to 36.5% of the annual target.

Vietnam's government bond issuance slowed markedly in June 2026, reflecting softer market demand and changing conditions on both the supply and demand sides, according to data from the Vietnam Bond Market Association (VBMA).

During the month, the State Treasury conducted 20 government bond auctions with a total offering value of VND68 trillion ($2.58 billion). However, only VND23.38 trillion worth of bonds was successfully issued, resulting in a bid-to-cover success rate of 34.4%, indicating relatively subdued investor appetite.

The value of successful bond sales fell by more than 30% from May and was approximately 23% lower than in June 2025, highlighting a clear slowdown in capital mobilization through government bond auctions.

Issuance continued to be concentrated in medium- and long-term maturities. Ten-year bonds accounted for the largest share of successful issuance at 58%, followed by five-year bonds with 39%.

According to the State Treasury, the average winning yield rose to 4.25% per annum in June, compared with 4.09% in the previous month, suggesting that higher borrowing costs were needed to attract investors.

For the first six months of 2026, total government bond issuance reached VND182.56 trillion ($6.94 billion), equivalent to 36.5% of the annual target.

-Hoàng Sơn

Approaching limits towards inflation

Tue, 14 Jul 2026 09:30:00 GMT

Vietnam kept inflation broadly under control in the first half of 2026, but narrowing policy headroom is expected to make price management increasingly challenging in the months ahead.

Despite ongoing global uncertainty, Vietnam successfully exerted control over domestic prices in the first half of 2026, with consumer inflation rising 4.38 per cent year-on-year. However, with inflation now approaching the government’s ceiling, policymakers face mounting challenges in managing prices during the second half of the year while safeguarding macro-economic stability.

According to the National Statistics Office (NSO) at the Ministry of Finance (MoF), the CPI fell 0.39 per cent in June compared to May, largely reflecting a sharp decline in domestic fuel prices following the global downturn in oil markets. Compared with December 2025, however, the June CPI was up 3.21 per cent, while annual inflation stood at 4.69 per cent.

Inflation under control

The CPI increased 5.25 per cent in the second quarter compared with the same period last year. For the first half, inflation stood at 4.38 per cent year-on-year; the highest first-half reading in five years, according to the NSO. The figure leaves little room to move under the National Assembly’s full-year inflation target of 4.5 per cent.

June’s price movements were mixed, with prices falling in four commodity and service groups while rising in seven others.

Transportation recorded the sharpest decline, down 4.85 per cent, shaving 0.48 percentage points off headline inflation. Clothing and footwear prices fell 0.09 per cent amid ample supply and promotional campaigns, while food and catering services edged down 0.07 per cent and other goods and services declined 0.06 per cent.

Conversely, culture, entertainment, and tourism prices rose 0.66 per cent; housing, utilities, and construction materials 0.46 per cent; household equipment and appliances 0.17 per cent; and beverages and tobacco 0.13 per cent. Communications, healthcare, and education posted modest increases, of less than 0.05 per cent each.

Core inflation rose 0.14 per cent in June against May and 4.5 per cent year-on-year. In the first half, core inflation stood at 4.12 per cent; below the headline inflation of 4.38 per cent and suggesting that recent price pressures were driven primarily by rising energy and food prices.

Multiple forces shaping price trends

According to Notice No. 345/TB-VPCP, summarizing the conclusions of Deputy Prime Minister Nguyen Van Thang, who is Head of the Price Management Steering Committee, domestic supply and demand remained broadly balanced throughout the first half of the year. Nevertheless, inflationary pressures continued to build amid a combination of domestic and external factors.

Internationally, elevated energy prices, transport costs, and logistics expenses persisted, while crude oil, natural gas, and gold prices as well as shipping rates remained highly volatile due to geopolitical tensions. These developments pushed up the cost of imported raw materials, increasing imported inflation.

Domestically, exchange rate pressures, together with a strong recovery in consumer demand and investment flows, also contributed to rising prices. The CPI rose by between 0.84 and 1.23 per cent from February through April, driven by Lunar New Year (Tet) seasonal demand and higher global prices for fuel, gas, and construction materials. Inflationary momentum eased only toward the end of the second quarter as domestic food supplies remained abundant.

Against this backdrop, both domestic authorities and international organizations have adopted cautious inflation forecasts. The MoF has updated three inflation scenarios for 2026, projecting rates of approximately 4.5 per cent, 5 per cent, and 5.5 per cent. Meanwhile, the State Bank of Vietnam (SBV) expects average inflation to range between 4.8 and 5.5 per cent, while international organizations forecast inflation between 3.8 and 5.2 per cent.

Four major challenges

The NSO identified four key challenges that could complicate inflation control over the remainder of the year.

The first is uncertainty in global energy markets. Oil and gas prices remain vulnerable to geopolitical developments. Though fuel accounts for only around 4.5 per cent of the CPI basket, its influence extends well beyond direct consumption, affecting transportation, logistics, and production costs across the economy.

Second, production input costs remain elevated. Producer prices and input material prices have continued rising year-on-year, and sustained cost pressures are expected to feed through to consumer prices over time.

Third, demand-driven inflation risks are likely to intensify during the year-end peak season. Consumer spending, investment, and tourism typically accelerate in the final months of the year and around the Tet holiday. While stronger demand supports economic growth, it can also fuel price increases if supplies are not adequately prepared.

Fourth, the planned adjustment of State-managed service prices poses an additional challenge. Any increases in healthcare, education, and other essential public service fees will need to be carefully timed and calibrated to balance market-oriented pricing reforms with overall inflation control.

Despite these risks, Vietnam retains several important advantages, including stable domestic agricultural production, resilient distribution networks, and increasingly proactive and flexible government price management.

Policy priorities

To achieve the dual objective of maintaining strong economic growth while keeping inflation within the target, the government has instructed ministries, agencies, and local authorities to focus on several key priorities.

Foremost among them is strengthening macro-economic forecasting and policy coordination. Authorities are expected to enhance early warning systems for inflationary risks, closely monitor global economic developments and major central bank policies, and prepare timely policy responses. Monetary policy will continue to be managed proactively and flexibly, with careful control exerted over credit growth and exchange rates to contain imported inflation while maintaining close coordination with fiscal policy.

The government has also called for prudent management of State-administered prices. Any adjustments to electricity tariffs, healthcare charges, or education fees should be thoroughly reviewed and implemented at appropriate times to avoid destabilizing inflation while preserving broader economic balances.

Specific responsibilities have been assigned across key ministries.

The MoF will closely monitor CPI developments, regularly update inflation scenarios, and provide policy recommendations to the Price Management Steering Committee. It will also continue implementing tax and fee reductions, exemptions, and extensions, to ease cost pressures on businesses. The SBV is to flexibly manage money supply, interest rates, and exchange rates to maintain financial and monetary stability, anchor inflation expectations, and mitigate external shocks.

The Ministry of Industry and Trade will closely monitor global energy markets and coordinate with the MoF to align domestic fuel prices with market developments while making flexible use of stabilization tools to support production and ensure uninterrupted supply. The Ministry has also been instructed to ensure adequate fuel supplies for production, business activities, and consumption, preventing shortages, hoarding, or speculative price increases. In parallel, it will oversee the nationwide balancing of supply and demand for essential goods to ensure sufficient availability of strategic commodities under all market conditions.

The Ministry of Agriculture and Environment will closely monitor production and supply-demand conditions for key food products, including rice, pork, seafood, and vegetables, while preparing contingency plans to prevent localized shortages and abnormal price spikes.

Meanwhile, provincial and municipal authorities have been directed to implement market stabilization programs tailored to local conditions, closely monitor prices and supplies of essential goods, and respond promptly to unusual price movements.

Local governments are also required to strengthen inspections and enforcement of pricing regulations, taking strict action against hoarding, speculation, price manipulation, and profiteering arising from natural disasters, disease outbreaks, or market disruptions.

-VU KHUE

Vietnam, South Korea partner to build modern financial ecosystem

Tue, 14 Jul 2026 01:30:00 GMT

Drawing from the development of financial centers in Seoul and Busan, South Korean experts suggested that each financial center should adopt a development model tailored to its local advantages.

Vietnam is entering an acceleration phase with massive capital demand for infrastructure, digital transformation, green transition, and innovation. To meet these requirements, a deeper and more diverse financial market capable of effectively connecting with international capital is essential.

This was emphasized by Assoc. Prof. Dr. Nguyen Huu Huan, Vice Chairman of the Executive Board of the Vietnam International Financial Center in Ho Chi Minh City (VIFC-HCMC), at the Vietnam-South Korea Financial Cooperation Forum. The event was co-organized by VIFC-HCMC and the Consulate General of the Republic of Korea in Ho Chi Minh City on July 13.

Under this strategy, VIFC-HCMC is envisioned not only as a hub for financial institutions but also as an international financial ecosystem. It aims to connect capital flows, technology, and high-quality human resources while piloting new financial models and developing products that directly serve the real economy.

According to Mr. Huan, priority sectors include asset management, international capital markets, international bonds, green finance, fintech, cross-border payments, maritime and aviation finance, along with supporting services such as credit rating, auditing, arbitration, and professional training.

Drawing from the development of financial centers in Seoul and Busan, South Korean experts suggested that each financial center should adopt a development model tailored to its local advantages. Key focus areas such as fintech, digital finance, regulatory sandboxes, sustainable finance, and asset management are considered valuable experiences for the VIFC-HCMC.

Vietnam boasts advantages in economic growth, market size, a young workforce, and rapid technological adaptability. Meanwhile, South Korea possesses a modern banking system, highly developed capital markets, digital payment infrastructure, and extensive experience in operating international financial hubs.

On this basis, both sides identified several priority cooperation areas, including capital market connectivity, supply chain finance, green finance, local currency payments, sharing financial management expertise, and supporting businesses in accessing each other's markets.

A notable highlight of the forum was the initiative to connect cross-border QR payment infrastructure between the two nations.

A representative from the Korea Financial Telecommunications Clearings Institute (KFTC) stated that a direct connection between national payment networks would allow users to use their domestic banking apps or e-wallets when paying in the partner country. This would reduce transaction costs, minimize the need for currency exchange, and broaden the reach of banks, card organizations, and fintech firms.

KFTC and the National Payment Corporation of Vietnam (NAPAS) signed a cooperation agreement on April 23, 2026, creating a foundation for the research and implementation of QR payment connectivity between the two markets.

Regarding the resolution of non-performing loans (NPLs), the Korea Asset Management Corporation (KAMCO) shared its experience in building a debt trading market based on four pillars: legal framework, market infrastructure, institutional capacity, and digital platforms.

Experts noted that standardizing asset data, increasing transparency, expanding the investor base, and developing centralized trading platforms would enhance valuation, improve liquidity, and attract professional capital into the debt market.

Vneconomy-Nguyệt Hà

HCM City launches strategic advisory board for International Financial Center

Sun, 12 Jul 2026 23:30:00 GMT

The advisory board is established to strengthen the centre's strategic planning capacity by drawing on global expertise and international best practices.

The Executive Agency of the Vietnam International Financial Centre in Ho Chi Minh City (VIFC-HCMC) on July 12 announced the establishment of a 13-member Strategic Advisory Board to support the development of the country's future international financial hub.

The advisory body brings together 13 domestic and international experts, including policymakers, financial specialists, leaders of international financial centres and representatives from investment organizations.

Following the announcement ceremony, the agency's executive leadership met with board members to discuss the centre's development strategy and identify priority financial products for its initial phase of operation.

According to the VIFC-HCMC Executive Agency, the advisory board was established to strengthen the centre's strategic planning capacity by drawing on global expertise and international best practices. The board will provide guidance on long-term development, recommend priority financial products and propose governance and operational mechanisms aligned with international standards.

The advisory board is expected to offer independent, practical and globally informed perspectives, helping build a strong professional foundation and enhance the centre's implementation capacity as Vietnam develops a next-generation international financial centre.

Under its development strategy, VIFC-HCMC aims to create a modern international financial ecosystem focused on key sectors, including international capital markets, green finance, trade finance, maritime finance, aviation finance, financial technology (fintech), digital assets, wealth management, financial workforce development and professional financial services.

The centre also seeks to foster stronger links between finance, technology, innovation and high-quality human capital to enhance the competitiveness of Vietnam's financial market and attract greater international investment to support the country's long-term economic growth.

-Nguyệt Hà

Vietnam Financial Forum 2026 opens, spotlighting international financial center development

Fri, 10 Jul 2026 07:30:00 GMT

VFF 2026 expected to play a key role in modernising Vietnam's capital markets, advancing digital finance solutions, strengthening financial infrastructure and promoting sustainable investment flows.

The Vietnam Financial Forum 2026 (VFF 2026) officially opened in central Da Nang city on July 9, bringing together more than 350 policymakers, representatives of international financial institutions, leading global consulting firms, fintech pioneers, capital market participants and financial infrastructure providers.

Over the two-day event, experts, investors, policymakers and financial organisations will discuss key issues including regulatory frameworks, human resource development, trade finance, digital assets and strategies for attracting international capital. Beyond policy dialogue, the forum aims to foster concrete investment commitments that will help lay the foundation for the effective operation of Vietnam's International Financial Centre.

Mr. Ho Ky Minh, Permanent Vice Chairman of the Da Nang People's Committee and Chairman of the Executive Agency of Vietnam's International Financial Centre in Da Nang, speaks at the forum.

Speaking at the opening ceremony, Mr. Ho Ky Minh, Permanent Vice Chairman of the Da Nang People's Committee and Chairman of the Executive Agency of Vietnam's International Financial Centre in Da Nang, said the forum comes as Vietnam is taking substantive steps to integrate more deeply into the global financial network through a series of policy reforms.

Against the backdrop of rapid economic transformation, VFF 2026 is expected to play a key role in modernising Vietnam's capital markets, advancing digital finance solutions, strengthening financial infrastructure and promoting sustainable investment flows.

The forum also provides an important platform for venture capital funds, financial institutions and technology companies to explore new investment opportunities and partnerships. Organisers hope the discussions and agreements reached during the event will accelerate the development of Vietnam's international financial centre while creating fresh momentum for innovation and long-term growth in the country's financial sector.

-Ngô Anh Văn

Vietnam Financial Forum 2026 kicks off with Techcombank as co-host to unlock capital flows

Thu, 09 Jul 2026 12:30:00 GMT

Vietnam Financial Forum 2026 opened in Da Nang with Techcombank as co-host, bringing together policymakers and industry leaders to explore solutions for unlocking capital and advancing digital financial infrastructure.

Dr. Jens Lottner, Chief Executive Officer of Techcombank

The Vietnam Financial Forum 2026 (VFF 2026), a national-level financial forum, officially opened at the Ariyana International Convention Centre in Da Nang. Co-organized by Vietnam Technological and Commercial Joint Stock Bank (Techcombank), the event aims to identify breakthrough solutions to unlock capital flows and shape the digital infrastructure needed to support Vietnam's economic development.

VFF 2026 drew senior government leaders, including Deputy Prime Minister, ministry representatives, and leaders from Da Nang, along with more than 350 policymakers, business executives, and representatives from leading domestic and international financial institutions.

Against the backdrop of a rapidly shifting and restructuring global economy, VFF 2026 seeks to establish a high-level platform for knowledge exchange, practical solutions, and policy dialogue aimed at modernizing Vietnam's capital market, enhancing transparency, and optimizing financial infrastructure. These are viewed as critical conditions for improving businesses' access to capital and supporting the government's goal of achieving double-digit economic growth during the 2026-2030 period.

Digital finance and green finance, driven by advanced technologies, also emerged as key themes throughout the forum. Participants highlighted the potential of deep financial infrastructure digitalization to reshape capital flows and create new growth opportunities for Vietnam's business community.

As a national enterprise that has partnered with the government on numerous strategic projects spanning finance, technology, infrastructure, healthcare, next-generation aviation hubs, and logistics, Techcombank's role as co-organizer extends beyond financial support. The bank also contributes strategic expertise through its technology capabilities, data infrastructure, practical operating models, and international connectivity, helping foster a modern, transparent, and efficient financial ecosystem.

On the forum's opening morning, Dr. Jens Lottner, Chief Executive Officer of Techcombank, joined the keynote panel discussion, "A Domestic Market Perspective on the Vietnam International Financial Center (VIFC): Connecting Global Capital to Drive Vietnam's Next Growth Phase."

Speaking to reporters on the sidelines of the event, Dr. Lottner said: "We believe Techcombank's role goes beyond providing capital. We are building digital infrastructure that enables the seamless movement of capital, data, and financial services throughout the economy. Our ambition is to become Vietnam's most trusted financial platform, supporting the country's next stage of development by ensuring both domestic and international capital is allocated more efficiently to sectors that generate sustainable economic growth.

"For Da Nang, we are also ready to share our practical experience in building effective digital ecosystems and applying data and technology to connect citizens, businesses, investors, and public services," Dr. Lottner said.

The panel discussion featuring Dr. Lottner focused on mechanisms for attracting foreign investment and channeling international financial resources into Vietnam's strategic development projects. Drawing on Techcombank's experience in digital transformation and innovation leadership, participants discussed practical approaches to connecting global capital with Vietnam's domestic market in a secure and efficient manner.

On the second day of the forum, July 10, senior experts from Techcombank and its ecosystem will participate in a series of in-depth sessions exploring solutions for mobilizing the estimated $100 billion in infrastructure investment required for Vietnam's future growth. Topics include "Where Will the Next $100 Billion Flow? Infrastructure, Energy, and Industrial Growth" and "Mobilizing Capital from International Institutional Investors."

The sessions will also examine both the opportunities and challenges involved in developing an integrated financial ecosystem capable of efficiently connecting customers, partners, and capital flows.

Techcombank's participation in VFF 2026 reaffirms its long-term commitment to unlocking financial resources, advancing innovation, and supporting the transformation of Vietnam's financial market into a more transparent, modern, and sustainable ecosystem.

Corporate borrowing becomes main driver of Vietnam's credit growth

Thu, 09 Jul 2026 08:00:00 GMT

A survey by the State Bank of Vietnam shows that borrowing demand from corporate customers overtook that of retail customers, signaling a shift in capital flows toward business expansion and investment activities.

Demand for bank loans from businesses has surpassed that of individual borrowers, emerging as the main driver of credit growth in Vietnam, according to a third-quarter 2026 business sentiment survey of credit institutions conducted by the State Bank of Vietnam.

The survey found that demand for banking services—including deposits, payments and borrowing—improved significantly in the second quarter of the year, compared with the first.

Among these services, loan demand recorded the strongest increase, while demand for deposits and payment services continued to grow at a slower pace. Notably, borrowing demand from corporate customers overtook that of retail customers, signaling a shift in capital flows toward business expansion and investment activities.

Despite the improving outlook, banks have become slightly more cautious in their forecasts. Credit institutions lowered their expectations for deposit growth in 2026 by 1.6 percentage points from the previous survey to 14.3%, while projected credit growth was revised down by 1.5 percentage points to 14.5%.

For the third quarter, lenders expect both total deposits and outstanding credit to increase by an average of 4.2%.

The banking sector also reported a continued, albeit slower, decline in non-performing loan ratios during the second quarter, with further improvement expected in the months ahead.

Meanwhile, 84.1% of surveyed credit institutions forecast positive pre-tax profit growth in 2026, while only 10.6% expect profits to decline.

-Kỳ Phong

Ministry mandates aviation service price declarations for listed firms from July 2026

Thu, 09 Jul 2026 07:12:00 GMT

According to the newly-issued notice, all six domestic airlines currently operating in Vietnam are subject to price declaration requirements.

The Ministry of Construction has issued Notice No. 375/TB-BXD, announcing the list of civil aviation service providers required to perform price declarations starting July 1, 2026.

According to the notice, in the regular domestic economy class passenger transport segment, all six airlines currently operating in the domestic market are subject to price declaration requirements. These include Vietnam Airlines, Vietjet Air, Pacific Airlines, Bamboo Airways, Vietravel Airlines, and Sun PhuQuoc Airways.

The list also includes several aviation infrastructure operators. Notably, the Airports Corporation of Vietnam (ACV) is required to declare prices for various services, such as aircraft parking rentals, check-in counters, baggage carousels, jet bridges, ground commercial technical services, underground refueling infrastructure, and service franchises at airports.

In addition to ACV, other airport operators are also subject to price declarations for specific service categories. These include Van Don International Airport, Sun Airport JSC, Da Nang International Terminal Investment and Operation JSC, and Cam Ranh International Terminal JSC.

Regarding aviation fuel supply services, the ministry identified four companies mandated to declare prices: SKYPEC, Petrolimex Aviation JSC, Tan Son Nhat Petrol Commercial JSC, and Indochina Aviation Fuel Group.

According to the ministry, the Civil Aviation Authority of Vietnam (CAAV) will serve as the focal point for receiving price declaration dossiers. The CAAV is also responsible for reviewing and updating the list of entities subject to these requirements to submit to the Ministry for official issuance in accordance with regulations.

Vneconomy-Đan Tiên

Public investment disbursement accelerates in June

Thu, 09 Jul 2026 01:00:00 GMT

Public investment disbursement in June estimated at VND137.6 trillion ($5.3 billion), marking the highest monthly figure so far this year.

Vietnam's public investment disbursement gathered pace in June, with the value of funds released nearly doubling from the previous month as many major infrastructure projects entered peak construction, according to the Ministry of Finance.

Public investment disbursement in June was estimated at VND137.6 trillion ($5.3 billion), marking the highest monthly figure so far this year, as a result.

As of June 30, total public investment disbursement nationwide had reached VND356.9 trillion, equivalent to 35.5% of the annual plan assigned by the Prime Minister. While the disbursement rate was broadly unchanged from the same period last year, the total amount disbursed increased by more than VND38.4 trillion, reflecting the expansion of public investment.

Monthly data showed a clear acceleration in implementation during the first half of the year. Disbursement rose from VND34.0 trillion in April to VND75.1 trillion in May before surging to nearly VND137.6 trillion in June.

Transport infrastructure development remained one of the government's top priorities. By the end of June, disbursement for key transport projects had reached VND59.3 trillion, equivalent to 24.2% of the allocated annual budget, as authorities sought to accelerate the construction of strategic infrastructure to support long-term economic growth.

-Lan Anh

Total outstanding credit reaches $764bln in 6M

Tue, 07 Jul 2026 00:00:00 GMT

77% of total outstanding loans were directed toward production and business activities.

Outstanding credit across Vietnam's banking system reached VND20.03 quadrillion ($764 billion) as of June 29, 2026, up 7.73% from the end of 2025, according to the State Bank of Vietnam.

The increase represents an additional VND1.4 quadrillion in lending to the economy during the first six months of the year, reflecting continued efforts to support economic growth and business activity.

Data from the central bank showed that by the end of May, 77% of the total outstanding loans were directed toward production and business activities, highlighting the banking sector's focus on financing the real economy.

Agriculture and rural development accounted for 22.09% of the total outstanding credit, while loans to small and medium-sized enterprises (SMEs) made up 19.84%, underscoring the sector's role in supporting key economic priorities.

Meanwhile, outstanding loans to the real estate sector represented 25.73% of the total credit in the economy. The non-performing loan (NPL) ratio for owner-occupied housing loans remained relatively low at 2.3%, indicating that credit quality in this segment has remained stable despite continued expansion in lending.

-Phan Linh

Hanoi's fiscal capacity and its ambitious metro line scheme

Mon, 06 Jul 2026 10:00:00 GMT

Hanoi’s ambitious metro line expansion will require far more than fiscal capacity and new financing tools to deliver on its promise.

On March 28, 2026, the Hanoi People’s Council approved a resolution on the city’s 2026-2030 Five-Year Financial Plan, establishing the framework for local budget revenues, expenditures, and borrowings over the next five years. Under the Plan, total local budget revenue is projected to exceed VND1,403 trillion ($54 billion), while total expenditure is expected to surpass VND1,533 trillion ($59 billion), resulting in a budget deficit of VND130.3 trillion ($5 billion).

Measuring fiscal capacity

To finance the deficit and meet principal repayment obligations, Hanoi’s total borrowing requirement has been set at approximately VND134.5 trillion ($5.2 billion).

Of the more than VND1,533 trillion ($59 billion) in planned expenditures, Hanoi expects to allocate VND864.7 trillion ($33.3 billion), or 56.4 per cent, to development investment, while VND533.3 trillion ($20.5 billion), or 34.8 per cent, will be earmarked for recurrent spending. The remainder will go to interest payments, public-sector wage reform, budget contingencies, and the financial reserve fund. Compared with the 2021-2025 period, Hanoi’s planned development investment has increased by approximately 33 per cent, from VND650.7 trillion ($25 billion). Over the next five years, the city plans to implement 2,755 projects, including 1,878 city-level projects and 877 commune-level projects.

Notably, the financial plan indicates that Hanoi still has considerable fiscal headroom. Under the resolution, the maximum outstanding local government debt during the period is capped at VND325.6 trillion ($12.5 billion), while outstanding debt at the end of the period is projected to stand at only VND141.6 trillion ($5.4 billion); equivalent to 43.5 per cent of the permitted ceiling.

This means that even after executing its planned borrowing for 2026-2030, Hanoi will still have approximately VND184 trillion ($7.1 billion) in additional borrowing capacity within its statutory debt limit. This provides an important fiscal buffer, allowing it to mobilize additional funding for development projects when necessary, provided it complies with the Law on the State Budget and maintains its debt repayment capacity.

However, less than three months after the financial plan was approved, Hanoi simultaneously broke ground on five new urban railway lines, on June 22. Together, the projects span approximately 303.5 km, carry a preliminary investment estimate of more than VND1,300 trillion ($50 billion), and are to be largely completed by 2030.

Compared with the fiscal targets approved by the Hanoi People’s Council, the preliminary investment cost of the five metro lines is equivalent to approximately 93 per cent of the city’s total projected budget revenue and around 85 per cent of its total budget expenditure for the entire 2026-2030 period. More strikingly, the investment is roughly 1.5-times larger than the entire VND864.7 trillion ($33.3 billion) allocated for development investment under the five-year financial plan.

The simultaneous launch of the five metro lines has therefore moved ahead of the financial framework needed to support them. While the investment scale has already been established, the mechanisms for generating revenue and mobilizing capital are still under development and have yet to receive approval from the Hanoi People’s Council.

According to draft resolutions submitted by the Hanoi People’s Committee, one notable proposal is to establish a mechanism for capturing the increase in land value generated by Transit-Oriented Development (TOD). Under the proposal, Hanoi would introduce new revenue sources from land value appreciation following planning adjustments, additional gross floor area created through higher development intensity, the commercial exploitation of railway infrastructure assets, infrastructure improvement charges, and public transportation connectivity fees. The model is intended to recover part of the value created by the metro system and reinvest it directly into transportation infrastructure.

At the same time, Hanoi has proposed diversifying its funding sources through the issuance of project bonds, infrastructure bonds, municipal bonds, and green bonds, alongside local government bonds permitted under current regulations. The city also plans to expand borrowing from credit institutions and the State treasury. These financing instruments are expected to provide additional medium and long-term funding capacity for large-scale infrastructure projects.

Attracting market capital

According to one capital markets expert, Hanoi’s plans to introduce financial instruments such as TOD value capture and various bond issuances represent necessary first steps but are only part of the equation. The decisive factor in attracting investment is not the number of financing tools available, but the quality of the projects themselves and the credibility of the financial structure presented to the market.

The expert noted that capital in financial markets is never in short supply; it simply flows toward investment opportunities that offer superior risk-adjusted returns. Investors do not commit funds simply because a project is large or strategically important. Rather, they evaluate each opportunity against competing investments across regional and global markets, weighing expected returns against potential risks before making a decision. The challenge, therefore, is not to “unlock” capital but to create investment opportunities compelling enough for capital to flow in naturally.

According to the expert, Vietnam’s large-scale infrastructure programs, including its urban railway system, are attracting growing interest from international investors. However, that interest remains largely exploratory because the information currently available is limited mainly to master plans, preliminary investment estimates, and implementation targets. Critical documents that investors rely on, including feasibility studies, financial plans, cash flow models, repayment strategies, and capital structures, have yet to be fully disclosed. Without this information, the market has no reliable basis for assessing either the project’s viability or its investment risks.

For any project seeking to raise funds in the capital market, a feasibility study is considered the single most important document. It must go beyond estimating total investment costs and answer fundamental questions: Who will the project serve? Where will its revenue come from? What cash flows will be used to repay debt? What assumptions underpin its financial projections? Investors also evaluate the quality of the project’s advisers, credit rating agencies, independent auditors, and other verification documents to assess the credibility of the financing package.

“Whether it is the central government, a local government, or a private company, any entity raising capital in the market is ultimately a borrower,” the expert said. “And every borrower must demonstrate how the funds will be used, how the debt will be repaid, and whether the project has been prepared professionally, transparently, and in accordance with standards accepted by the market.”

According to other industry experts, credibility in the capital market is not built through a single transaction but through consistently honoring commitments to investors. When project owners deliver projects on schedule, use capital for its intended purpose, and make principal and interest payments in full and on time, their creditworthiness gradually improves, lowering financing costs for future projects.

Conversely, if disclosures fail to accurately reflect reality or financial obligations are not fulfilled, market confidence will deteriorate, making future fundraising significantly more difficult.

As Hanoi prepares to implement one of the country’s largest metro investment programs, capital market specialists say investors are looking for more than new financing instruments. What the market needs is comprehensive, transparent information and a competitive financial plan capable of convincing both domestic and international investors.

-PHAN LINH

New regulations on exit bans for tax debtors

Mon, 06 Jul 2026 07:30:00 GMT

Under Decree No. 252/2026/ND-CP, individuals engaged in business activities and heads of household businesses will be subject to a temporary exit ban if they are under tax enforcement measures and owe at least VND50 million (nearly $2,000) in overdue taxes for more than 120 days.

The Government has issued Decree No. 252/2026/ND-CP (Decree 252) renewing criteria for the temporary suspension of exit for individuals and business representatives with outstanding tax debts, in a move aimed at strengthening tax compliance and improving debt recovery, according to a report from the Government News.

The decree sets out specific thresholds for imposing temporary exit bans based on the amount and duration of overdue tax liabilities, while also detailing notification procedures and the conditions for lifting the restrictions.

Under the new decree, individuals engaged in business activities and heads of household businesses will be subject to a temporary exit ban if they are under tax enforcement measures and owe at least VND50 million (nearly $2,000) in overdue taxes for more than 120 days.

Meanwhile, legal representatives of enterprises, cooperatives and cooperative unions will face the same restriction if their entities owe VND500 million (nearly $20,000) or more in overdue taxes beyond the 120-day deadline.

The decree also targets businesses that have ceased operating at their registered addresses. Business owners, household business operators and legal representatives of such entities will be temporarily barred from leaving the country if they fail to settle overdue tax obligations within 30 days after receiving a tax enforcement notice.

In addition, Vietnamese citizens emigrating overseas, overseas Vietnamese and foreign nationals departing Vietnam with outstanding tax debts will also be subject to temporary exit suspension measures.

To ensure transparency, tax authorities are required to notify taxpayers at least 30 days before requesting an exit ban. Notices will be sent through taxpayers' electronic tax accounts, registered phone numbers and email addresses, while legal representatives will also receive notifications at their registered residential addresses. The notices will be published on the tax sector's official online portal.

If electronic notification cannot be delivered, tax authorities will publish the notice on their official website. Should the tax debt remain unpaid after 30 days, the tax authority will submit an official request to the immigration authority to impose a temporary exit ban.

The Ministry of Finance said tax authorities have coordinated with local administrations to verify whether businesses and legal representatives are operating at their registered addresses as part of tax debt enforcement efforts.

The legal basis for the measure is provided under the Law on Tax Administration No. 38/2019/QH14, as amended by Law No. 56/2024/QH15. Based on these laws, the Government first issued Decree No. 49/2025/ND-CP in February 2025, establishing thresholds for applying temporary exit suspension measures to different categories of taxpayers.

However, authorities noted that no minimum debt threshold applies to entities that have abandoned their registered business addresses. According to the Ministry of Finance, these taxpayers present a particularly high compliance risk because they are often associated with other violations, including failure to submit tax declarations, failure to provide accounting records, illegal invoice transactions, tax evasion, tax appropriation and abandoning business premises without notifying authorities.

Tax authorities have so far issued temporary exit suspension notices to approximately 105,000 legal representatives of businesses and household business owners linked to nearly VND61 trillion ($2.35 billion) in outstanding tax liabilities.

Among them, around 65,000 legal representatives and household business owners whose businesses were no longer operating at their registered addresses accounted for more than VND6.9 trillion ($266 million) in unpaid taxes.

The measure has already contributed to tax debt recovery. To date, tax authorities have collected more than VND4 trillion ($154 million) in overdue taxes from over 13,000 taxpayers.

Notably, about 7,100 taxpayers whose businesses had ceased operations at their registered addresses voluntarily contacted tax authorities, paid nearly VND100 billion ($3.86 million) in outstanding tax obligations and subsequently had their temporary exit bans lifted.

-Khanh Van

Vietnam PM urges JBIC to expand financial support for strategic projects

Fri, 03 Jul 2026 09:00:00 GMT

Prime Minister Le Minh Hung also called for JBIC’s support in enhancing Vietnam’s economic autonomy and resilience by promoting Japanese investment in strategic sectors such as semiconductors, artificial intelligence, batteries, new materials, critical minerals, and high-tech industries.

During a meeting on July 2 with Mr. Maeda Tadashi, Chairman of the Japan Bank for International Cooperation (JBIC), who is in Vietnam for a working visit, Prime Minister Le Minh Hung urged the JBIC to continue playing its role as a financial bridge, supporting strategic infrastructure, high-tech, green transition projects, and new supply chain linkages.

The Prime Minister also called for JBIC’s support in enhancing Vietnam’s economic autonomy and resilience by promoting Japanese investment in strategic sectors such as semiconductors, artificial intelligence, batteries, new materials, critical minerals, and high-tech industries.

In addition, JBIC was asked to explore expanding financial support mechanisms, investment guarantees, and co-financing for new investment projects, as well as public–private partnerships, mergers, and acquisitions by Japanese enterprises in Vietnam. These efforts aim to foster technology transfer, improve management capacity, and strengthen supply chain linkages between the two countries.

Welcoming the progress of 5 out of 15 projects already implemented or about to be launched under the Asian Zero Emission Community (AZEC) initiative of Japan, the Prime Minister urged JBIC to adopt more flexible lending procedures for the remaining projects to accelerate their implementation. He also requested JBIC to study and propose recommendations on areas where Vietnamese enterprises could benefit under Japan's Power Asia initiative.

Fully agreeing with the Prime Minister’s views, Mr. Tadashi affirmed JBIC’s desire to continue promoting specific cooperative projects with Vietnam, aligned with the country’s long-term strategic orientation, including foreign-invested economic development, digitalization, green transformation, artificial intelligence, and semiconductors.

According to the JBIC Chairman, in this new stage of development, Vietnam needs to further leverage the private sector and public–private partnership mechanisms to drive strong growth. This is an area where JBIC has extensive experience and wishes to accompany Vietnamese partners in implementation.

JBIC also expressed its intention to strengthen cooperation with Vietnam in 15 projects under the AZEC framework with a total capital of about $20 billion; in power and oil and gas projects; in enhancing energy resilience under the Power Asia initiative; and in promoting collaboration in semiconductor development, artificial intelligence, data centers, startups, and the Vietnam International Financial Center.

Vneconomy-Hà Lê

Vietnam, Singapore launch cross-border QR payment service

Fri, 03 Jul 2026 00:30:00 GMT

The new service links the payment infrastructures of Vietnam's National Payment Corporation (NAPAS) and Singapore-based Liquid Group.

Vietnam and Singapore officially launched a cross-border QR code payment service on July 2, marking a new step in digital payment connectivity as tourism and trade between the two countries continue to expand.

The new service links the payment infrastructures of Vietnam's National Payment Corporation (NAPAS) and Singapore-based Liquid Group. Users in Singapore can now make payments by scanning VietQRGlobal codes through participating mobile payment applications within Liquid Group's ecosystem at shops, restaurants, hotels and retail outlets across Vietnam.

Transactions are processed in real time, with automatic conversion between the Singapore dollar (SGD) and the Vietnamese dong (VND).

During the initial rollout, the service is expected to reach around five million users through Liquid Group's partner network in Singapore, with further expansion planned as the ecosystem continues to grow.

According to the Vietnam National Authority of Tourism, Vietnam welcomed nearly 10.6 million international visitors during the first five months of 2026, up 25.5 percent from the same period last year. Singapore was among the fastest-growing markets, with more than 178,000 arrivals, a 28.5 percent increase. In the opposite direction, Singapore received more than 123,000 visitors from Vietnam over the same period.

A survey by Changi Airport Group found that three in five Singaporeans have visited Vietnam, while 95 percent of respondents expressed a desire to return. Singaporean travellers are also among the highest-spending visitors and are increasingly inclined to use cashless payment methods.

-Kỳ Phong

The big move: UOB’s $450 million investment secures first foreign bank foothold at VIFC- HCMC

Wed, 01 Jul 2026 10:00:00 GMT

The groundbreaking of UOB Plaza Ho Chi Minh City marks a significant milestone as UOB becomes the first foreign bank to establish a purpose-built headquarters within the Vietnam International Financial Centre (VIFC-HCMC), underscoring its long-term ambition in Vietnam’s evolving financial landscape.

Sail-Inspired Form Capturing Movement and Connectivity

UOB has steadily expanded not only its footprint but also its strategic role in Vietnam, reinforcing the country’s position as one of the Bank’s most important markets in ASEAN.

That confidence was further demonstrated by the groundbreaking of UOB’s new headquarters building-UOB Plaza Ho Chi Minh City in early July. With a total investment of $450 million, the project represents one of UOB’s largest investments in Vietnam to date.

According to Mr. Victor Ngo, CEO of UOB Vietnam, once completed, the new headquarters will further strengthen UOB’s ability to support clients’ growing cross-border business and investment activities while deepening its presence in Vietnam.

Anchoring UOB’s presence in Vietnam’s financial centre

Located at No. 2 Ton Duc Thang Street within the Ba Son precinct (HCMC), the 36-storey Grade A office tower will rise 160 metres above the Saigon River and serve as UOB’s flagship headquarters in Vietnam.

The project also marks a significant milestone for Vietnam’s financial sector, as UOB becomes the first foreign bank to develop and own a purpose-built headquarters within the Vietnam International Financial Centre in Ho Chi Minh City (VIFC- HCMC).

UOB Vietnam breaks ground on new headquarters building at Vietnam International Financial Centre – Ho Chi Minh City.

Notably, it will also reinforce UOB’s role in supporting Vietnam’s deeper integration into regional and global capital, trade and investment flows. Upon completion of the project, the Bank will establish its full headquarters footprint across its five core ASEAN markets including Singapore, Malaysia, Indonesia, Thailand and Vietnam, thereby further strengthening its unique regional network.

Mr. Ngo emphasised that establishing the new headquarters within the VIFC-HCMC is far more than a real estate investment. It is a strategic commitment to participate in and contribute to the next phase of Vietnam’s financial and economic development.

“By positioning ourselves within this emerging ecosystem from the outset, we can better support our clients, deepen our engagement with the market, and play a more active role in connecting Vietnam with regional and international opportunities,” he continued.

The decision also reflects the Bank’s confidence in Ho Chi Minh City’s development. The Bank intends to establish a branch presence within the VIFC HCMC and will continue working closely with government agencies, industry partners and other key stakeholders to support the Centre’s development and strengthen its position as an internationally connected financial hub.

“We believe the city has the foundations, ambition and momentum to become one of Asia’s most dynamic financial gateways, and we are committed to being part of that journey in the coming times,” Mr. Ngo said.

More than a workplace: Where people, ideas and innovation converge

While the new headquarters will strengthen UOB’s strategic presence, it has also been conceived as a workplace that reflects how financial institutions are evolving.

Mr Victor Ngo, CEO of UOB Vietnam

According to Mr. Ngo, the building is designed around people, placing equal emphasis on employee well-being, collaboration and innovation. Flexible workspaces, open layouts and shared areas will encourage interaction across teams, while abundant natural light, greenery and views overlooking the Saigon River are expected to create a healthier and more inspiring working environment.

Its location within the VIFC HCMC also offers strategic advantages beyond the office itself. Surrounded by leading financial institutions, public spaces and a vibrant riverside urban environment, the headquarters will become part of a broader ecosystem where businesses, talent and ideas can converge, creating new opportunities for collaboration and innovation.

“The architecture and interior layout have been carefully planned to encourage interaction and seamless movement throughout the workplace,” Mr. Ngo said.

Whether inside the building or in its surrounding public spaces, every aspect has been thoughtfully designed to facilitate engagement across teams and create opportunities for people to work together more effectively

“The headquarters aims to foster a workplace where employees feel connected, inspired and proud to be part of UOB Vietnam,” he added.

Looking beyond its function as an office, Mr. Ngo believes the building will become a lasting symbol of UOB’s enduring presence in Vietnam.

“Ultimately, we hope the new headquarters will not only serve as a workplace but also become a landmark that reflects UOB’s long-term commitment to Vietnam. Positioned within Ho Chi Minh City’s evolving financial district, we believe it will become one of the city’s iconic buildings and a source of pride for our employees, customers and the wider community,” Mr. Ngo concluded.

-Phuong Hoa

For better development of the International Financial Center in Vietnam

Wed, 01 Jul 2026 04:00:00 GMT

Vietnam needs to make comprehensive and well-coordinated preparations in order to successfully develop its International Financial Center and secure a competitive position on the regional financial map.

The Vietnam International Financial Center (VIFC) is widely regarded as one of the key strategic directions the country is actively promoting in order to reposition its role within the global financial network. In the context of increasingly-deep global financial integration and intensifying competition between regional financial hubs, the VIFC is expected to serve as a critical platform for attracting international capital, enhancing financial connectivity, and strengthening Vietnam’s role in global value chains.

The recent establishment of the VIFC in two of the country’s major economic hubs - Ho Chi Minh City and Da Nang - is not only an institutional step forward but also a strategic choice driven by practical development needs. Ho Chi Minh City, as Vietnam’s largest economic and financial center, offers a strong foundation in banking, capital markets, and corporate activity, while Da Nang provides strategic advantages in terms of geographic positioning, governance flexibility, and potential for developing a modern, innovation-driven financial ecosystem.

Improving the legal framework

The development of the VIFC in Ho Chi Minh City (VIFC HCMC) and in Da Nang (VIFC DN) reflects a dual-pillar approach aimed at balancing scale with innovation and domestic strengths with international connectivity. The initiative is therefore not merely about establishing financial infrastructure, but about creating a comprehensive ecosystem capable of supporting long-term economic transformation, improving capital allocation efficiency, and elevating Vietnam’s position in the global financial architecture.

One of the key roles of the VIFC is to establish a legal framework and business environment capable of attracting global capital flows. At the same time, it aims to form an ecosystem operating in accordance with international standards, enabling foreign investors to access a familiar, transparent, and predictable environment, thereby increasing confidence in investing in Vietnam.

When investment funds, financial institutions, and international investors are present in Ho Chi Minh City or Da Nang, domestic enterprises, not only in these two localities but around the country, will have greater opportunities to access capital more easily and directly. Instead of having to seek funding in international markets, enterprises can connect immediately within a financial ecosystem located in Vietnam.

However, according to experts at the “VIFCs Unlocked: Vietnam’s Play to Become Asia’s Next Financial Hub” seminar, held on June 17, the VIFC is still in its early stages of development, while leading financial centers in the region such as Singapore and Hong Kong (China) have gone through decades of building reputation, institutional development, and global network expansion. Therefore, the current priority is not only to establish the model but, more importantly, to transform the initial “momentum of recognition” into substantive and sustainable progress.

According to Mr. Oscar Njuguna, Director of the Membership Department at VIFC DN, Vietnam’s top priority at the moment is to build a regulatory system that meets international standards, thereby creating familiarity, transparency, and trust for global investors.

In parallel, it is necessary to strengthen cooperation with other international financial centers in order to expand connectivity, attract cross-border capital flows, and facilitate more efficient and smoother investment activities. New technologies such as blockchain and Web3 are also opening opportunities to form a new-generation financial infrastructure, thereby helping Vietnam connect more quickly and more deeply with global financial markets.

Building the VIFC will be a long journey that requires persistence and gradual trust-building with the market. If the right mechanisms and orientation are established, the benefits of the VIFC will not be limited to Ho Chi Minh City or Da Nang, but will extend to enterprises, projects, and investors around Vietnam.”

Mr. Richard D. McClellan, CEO of the Vietnam International Financial Center in Ho Chi Minh City (VIFC HCMC)

The country currently possesses several distinct competitive advantages, such as high economic growth, improving quality of life, competitive costs, and long-term development potential. The issue is to combine these advantages with an international-standard governance framework in order to form a financial center with credibility, competitiveness, and long-term sustainable development. “The VIFC is not a project of one or two years,” Mr. Njuguna emphasized. “Building an international financial center is a long-term journey that requires persistence, continuous improvement, and extensive cooperation with domestic and international partners.”

Moreover, Mr. Richard D. McClellan, CEO of VIFC HCMC, said Vietnam’s top priority at present is to complete the institutional foundation and legal framework for the VIFC. In that regard, the regulatory system must ensure transparency and predictability, accompanied by efficient licensing procedures and dispute resolution mechanisms aligned with international practices. This is considered a core factor in building investor confidence.

In addition, promoting capital flows and financial integration also plays an important role. Issues such as foreign exchange convertibility, capital repatriation rights, and the level of integration with the international banking system are factors that investors particularly care about when considering market participation.

Finally, it is necessary to comprehensively develop the financial market and ecosystem. This includes areas such as capital markets, asset management, private investment, and financial technology. Though many initiatives have been implemented, it is agreed that no single project can create a complete financial center without a synchronized, interconnected, and efficient operating ecosystem.

Human resources readiness

In addition to institutional and legal frameworks, the readiness of human resources is considered one of the key conditions determining the success and sustainable development of the VIFC. An international financial center can only operate effectively when it has a sufficiently large, high-quality workforce that meets international standards.

The VIFC is not a project of one or two years. Building an international financial center is a long-term journey that requires persistence, continuous improvement, and extensive cooperation with domestic and international partners.

Mr. Oscar Njuguna, Director of the Membership Department at the Vietnam International Financial Center in Da Nang (VIFC DN)

Currently, human resources remain one of the biggest challenges. In order to operate the VIFC effectively, Vietnam will need tens of thousands of experts in international finance in the years to come. However, there is still a noticeable gap between the current workforce and the practical requirements of a regional and international-scale financial center. To narrow this gap, Mr. McClellan proposed that Vietnam implement synchronized solutions in both the short and long term.

In the short term, the main focus is to invest strongly in structured education and training at the undergraduate and postgraduate levels. The VIFC should work closely with domestic universities specializing in economics and finance, international training institutions, and the private sector to develop curricula aligned with global standards and closely linked to the practical needs of the financial market.

In the long term, vocational training programs and international certification schemes also play a particularly important role. Cooperation with reputable professional training organizations from the UK and other developed countries will help rapidly enhance the capabilities of the domestic workforce, while also providing globally-recognized certifications. Through this, Vietnamese professionals can more quickly access international professional standards.

In addition, attracting foreign experts is also very important to fill the gap in skills and experience during the initial phase. According to the development orientation of the VIFC, Vietnam needs to create favorable conditions for international financial institutions to bring experts to work in the country. These experts will not only directly operate systems but also help train and transfer experience to domestic personnel. However, the development of human resources for the VIFC cannot rely on a single stakeholder; it requires the coordinated participation of many parties, from universities and training institutions to financial enterprises, recruitment companies, professional associations, and State regulatory agencies.

“Building the VIFC will be a long journey that requires persistence and gradual trust-building with the market,” Mr. McClellan said. “If the right mechanisms and orientation are established, the benefits of the VIFC will not be limited to Ho Chi Minh City or Da Nang, but will extend to enterprises, projects, and investors around Vietnam.”

-Phuong Nhi

Tax incentives on petroleum products extended

Wed, 01 Jul 2026 03:00:00 GMT

The policy, taking effect from July 1 through September 30, 2026, aiming to support fuel supplies and ease cost pressures on businesses and consumers.

The Government has extended a package of tax incentives on petroleum products through the third quarter of 2026 in an effort to support fuel supplies and ease cost pressures on businesses and consumers.

Under Resolution No. 34/2026/NQ-CP, issued on June 30, the Government extended the application of preferential import tax policies, environmental protection tax exemptions and value-added tax (VAT) incentives for gasoline, petroleum products, fuel production inputs and aviation fuel.

The resolution takes effect from July 1 through September 30, 2026.

During this period, the environmental protection tax on gasoline (excluding ethanol), diesel, kerosene, fuel oil and aviation fuel will remain at zero dong (VND) per litre.

The resolution also maintains the VAT policy introduced under the National Assembly's Resolution No. 19/2026/NQ-CP dated April 12, 2026. Accordingly, gasoline, diesel, kerosene, fuel oil and aviation fuel will continue to be exempt from VAT declaration and payment requirements, while businesses will still be entitled to claim input VAT credits.

From July 1, 2026, however, the special consumption tax on gasoline will be governed by the Law on Special Consumption Tax and its implementing regulations. Under the new framework, E5 biofuel gasoline is subject to an 8% excise tax, while the tax rate for E10 gasoline is set at 7%, reflecting the Government's continued support for cleaner transport fuels.

VnEconomy-Mạnh Đức

Da Nang to host Vietnam Financial Forum 2026

Wed, 01 Jul 2026 00:30:00 GMT

The event bringing together policymakers, global financial institutions and fintech innovators to discuss the future of Vietnam's financial ecosystem.

The Vietnam Financial Forum 2026 (VFF 2026) is scheduled to take place in central Da Nang city on July 9-10, bringing together policymakers, global financial institutions and fintech innovators to discuss the future of Vietnam's financial ecosystem.

The forum is expected to serve as a landmark event for shaping the country's financial infrastructure and long-term development strategy.

Speaking at a press conference on June 30, the organisers said VFF 2026 will attract more than 350 participants, including policymakers, representatives of international financial institutions, leading global consulting firms and pioneering fintech companies. The event is positioned as a large-scale, high-level dialogue aimed at addressing key strategic challenges facing Vietnam's financial sector.

Against the backdrop of Vietnam's rapidly evolving economy, the forum is expected to bridge the gap between policymaking and market realities while reinforcing Da Nang's ambition to become a regional financial innovation hub capable of attracting international capital and promoting effective public-private partnerships.

A key objective of VFF 2026 is to modernise Vietnam's capital market, enabling businesses to access financing more efficiently while improving market transparency and supporting sustainable economic growth.

Digital finance will also feature prominently on the agenda, with discussions focusing on upgrading financial infrastructure, enhancing user experience and accelerating digital transformation across the sector.

In addition, the forum will explore ways to mobilise sustainable investment capital and encourage the responsible allocation of financial resources. With venture capital funds playing an increasingly influential role in reshaping the economy, VFF 2026 will provide a platform for investors and businesses to connect, exchange ideas and identify new partnership opportunities.

VnEconomy-Ngô Anh Văn

Ho Chi Minh City banks disburse $10.3 billion in H1 loans

Tue, 30 Jun 2026 07:12:00 GMT

The financing has enabled businesses to expand production and commercial activities.

Credit activity in Ho Chi Minh City maintained solid momentum in the first half of 2026, with banks disbursing approximately VND270 trillion ($10.3 billion) in new loans, helping outstanding credit reach an estimated VND5.5 quadrillion (around $209 billion), up 6.5% from the end of 2025.

Speaking on the city's banking performance, Ms. Tran Thi Ngoc Lien, Deputy Director of the State Bank of Vietnam's Regional Branch No.2, said the local banking sector has continued to strengthen its support for businesses and households through a range of targeted credit programs.

In 2026, 19 banking brands voluntarily registered to participate in the city's preferential lending program, committing a combined credit package worth VND591.73 trillion, an increase of 14.44% compared with the previous year.

During the first six months alone, around VND270 trillion was disbursed to more than 71,000 borrowers. The financing has enabled businesses to expand production and commercial activities while also meeting households' borrowing needs for consumption and daily living.

Lien said the banking sector remains committed to accompanying businesses while fully complying with regulations governing lending activities. Credit institutions have also been encouraged to diversify loan products tailored to different customer segments, accelerate the digitalisation of lending processes and shorten application processing times, making it easier for businesses to access financing for production and business expansion.

VnEconomy-Minh Huy

Techcombank and Techcom Life secure three major international awards from The Asian Banker 2026

Mon, 29 Jun 2026 12:30:00 GMT

Techcombank received The Asian Banker's top regional AI implementation award, while Techcom Life earned two national honors recognizing its flagship life insurance product and AI-powered digital sales platform.

Techcombank won the award for Best AI Technical Initiative in Asia-Pacific at The Asian Banker's AI Excellence Awards 2026. Photo: Techcombank

Vietnam Technological and Commercial Joint Stock Bank (Techcombank) and its insurance affiliate, Techcom Life, have received three awards from The Asian Banker, recognizing achievements in artificial intelligence, digital technology, and life insurance innovation.

Techcombank was named winner of the "Best AI Implementation Initiative in Asia-Pacific" at The Asian Banker's AI Excellence Awards 2026. At The Asian Banker Vietnam Awards 2026, Techcom Life received two honors, winning "Best Life Insurance Product in Vietnam" for its flagship universal life product, Techcom Life Max Vững Vàng, and "Best Life Insurance Technology in Vietnam" for its AI-enabled iProtek sales platform.

The three awards highlight the group's investment in artificial intelligence, digital transformation, and customer-focused financial and insurance solutions.

The "Techcom Life Max Vững Vàng" Universal Life product won the award for Best Life Insurance Product in Vietnam at The Asian Banker Vietnam Awards 2026. Photo: Techcom Life

Techcombank received the regional AI award for its deployment of an enterprise-wide Agentic Platform designed to coordinate specialized AI agents across the software development lifecycle (SDLC). According to The Asian Banker, the platform supports business analysis, architecture, project management, quality engineering, and software development, enabling teams to improve productivity, strengthen collaboration, and shorten the time required to bring new software solutions to market.

The award recognizes Techcombank's broader strategy of using AI to improve operational efficiency, accelerate innovation, and enhance customer experience. The bank said the platform represents a key component of its technology roadmap and reinforces its position as one of Vietnam's leading financial institutions investing in AI.

Mr. Tran Hoang Quan, Senior Director of Technology, Techcombank Technology Division, said: "The 'Best AI Engineering Initiative in Asia-Pacific 2026' award from The Asian Banker serves as powerful validation of Techcombank's sound investment strategy in centralized AI governance and Agentic AI platforms. Through rigorous data discipline and internal capabilities, we have reduced application development time by 15% by leveraging AI. This milestone not only unleashes our team's creativity and comprehensively optimizes the software lifecycle but also acts as a springboard for Techcombank to continue pioneering secure digital solutions, proudly affirming Vietnam's technological standing on the international stage."

Techcom Life also secured two awards at The Asian Banker Vietnam Awards 2026, recognizing both its flagship insurance product and its digital technology platform.

Established by Techcombank in 2025, Techcom Life was founded as an AI-first life insurer with the stated goal of transforming how life insurance is designed, delivered, and experienced in Vietnam. Guided by its vision of "Transform Insurance, Empower Futures," the company focuses on developing customer-centric insurance products and digital experiences tailored to Vietnam's growing affluent segment.

The two awards come less than a year after Techcom Life began operations. During that period, the company said it rose to the leading position in Vietnam's bancassurance market and entered the country's top five life insurers by new business premiums. It also reported a customer satisfaction score of 4.9 out of 5 and a Net Promoter Score (NPS) of 89, which it said was the highest in the market.

The award for Best Life Insurance Product in Vietnam recognized Techcom Life Max Vững Vàng, a universal life insurance product designed to combine long-term protection, wealth preservation, and disciplined wealth accumulation in a single flexible solution. According to the company, the product was developed based on customer research highlighting demand for financial security, sustainable long-term growth, and flexibility to adapt as financial needs evolve.

A Techcom Life representative accepts the award for Best Life Insurance Technology in Vietnam at The Asian Banker Vietnam Awards 2026 ceremony. Photo: Techcom Life

Meanwhile, the Best Life Insurance Technology in Vietnam award recognized iProtek, Techcom Life's fully digital, AI-enabled sales and servicing platform. Developed as part of the company's AI-first strategy, iProtek is designed to support insurance advisors throughout the customer journey, from customer needs analysis and product recommendations to policy servicing. The platform aims to improve the consistency and quality of financial advice while enabling the company to scale its distribution network.

Mr. Mukesh Pilania, CEO of Techcom Life, said: "In less than a year, we have built a customer-centric organization, pioneered the application of AI, and set new benchmarks for the market. Becoming the first Vietnamese life insurer to win two Asian Banker awards simultaneously affirms our bold ambition: to reshape the insurance industry and empower future autonomy."

The three awards were presented following an evaluation by The Asian Banker's editorial and research team, which assesses financial institutions and insurance companies across Asia-Pacific based on innovation, technology adoption, product development, and customer impact.

Domestic carbon exchange officially launched

Mon, 29 Jun 2026 08:00:00 GMT

The launch of the domestic carbon exchange marks an important step in the formation and development of the carbon market in Vietnam...

The domestic carbon exchange officially commenced operations at the Hanoi Stock Exchange (HNX) on June 29, with the quota code VN2025.

According to an announcement from the HNX, the first product traded was the VN2025 greenhouse gas emission quota. Its volume is 511,473,846 tons of CO₂ equivalent, with the lowest offering starting at VND135,000 (around $5.14) per ton, for the compliance period of 2025-2026. The last trading day for this greenhouse gas emission quota is December 24, 2027.

Speaking at the launch ceremony, HNX Chairman Nguyen Anh Phong said that the launch of the domestic carbon exchange is the result of implementing the Project on establishing and developing the carbon market in Vietnam under Prime Ministerial Decision No. 232/QD-TTg.

According to the current roadmap, traded goods consist of two types: greenhouse gas emission quotas and carbon credits. Under the direction of the Vietnam Stock Exchange (VNX) and the State Securities Commission (SSC), the HNX has closely coordinated with the Department of Climate Change (DCC) under the Ministry of Agriculture and Environment (MAE), the Vietnam Securities Depository and Clearing Corporation (VSDC), BIDV, and other relevant units to develop the legal framework, with regulations for managing and operating the market, and its registration, trading, and settlement system.

To date, the information technology system connecting HNX, VSDC, the DCC and BIDV has been tested and is operating stably and smoothly. The relevant regulations and operational procedures have also been issued.

The membership system includes the first six securities companies that meet the market participation conditions and more than 100 emission sources included in the list of allocated greenhouse gas emission quotas.

"The launch of the domestic carbon exchange is not just a technical step, but also links environmental protection responsibility with the economic interests of businesses themselves, ensuring the sustainable development of the nation," said Mr. Phong.

Ms. Vu Thi Chan Phuong, Chairwoman of the SSC, also stated that after active and coordinated preparation between the Ministry of Finance (MoF), the MAE, and other relevant agencies and units, the conditions regarding the legal framework, technological infrastructure, operational procedures, and coordination mechanisms have been basically completed, allowing the domestic carbon exchange to officially begin operation.

Notably, to facilitate businesses during the pilot phase until the end of 2028, the Government has issued Decree No. 29/2026/ND-CP stipulating that no fees will be charged to businesses participating in the domestic carbon exchange.

"This policy demonstrates the Government's commitment to supporting the business community, contributing to reducing market participation costs, encouraging businesses to actively implement emission reduction solutions, innovate technology, and develop sustainably," Ms. Phuong shared.

According to Ms. Phuong, the establishment of a carbon exchange not only creates a mechanism for trading greenhouse gas emission quotas and carbon credits in a public, transparent, and fair manner, but also serves as an economic tool to help businesses proactively innovate technology, improve production efficiency, and reduce emissions.

For the financial market, this is a new component of the green financial ecosystem, opening up a channel for mobilizing and allocating resources for sustainable development projects, gradually approaching international practices in the development of capital and environmental markets.

Representing the operating units, Mr. Luong Hai Sinh, Chairman of the Board of Members of the VNX, stated that the launch of the carbon exchange is a significant milestone for the development of Vietnam's financial and carbon markets, but this is only the beginning.

"Safe, transparent, and efficient operation is not only a professional task but also contributes to achieving economic development goals, enhancing the competitiveness of Vietnamese businesses, and realizing the goal of net-zero emissions by 2050," Mr. Sinh affirmed.

-Ngoc Lan

Hue focuses resources on infrastructure and urban expansion for 2026-2030

Mon, 29 Jun 2026 00:00:00 GMT

Public investment resources will be concentrated on key sectors, including transportation, urban development, economic and industrial zones, culture, tourism, healthcare, education, science and technology, agriculture, and the environment.

Chairman of the Hue City People’s Committee in central Vietnam, Mr. Nguyen Khac Toan, has recently chaired a meeting to review the finalization of the city's Medium-term Public Investment Plan using the State budget for the 2026-2030 period, as well as the current status of public investment disbursement for 2026.

Public investment resources will be concentrated on key sectors, including transportation, urban development, economic and industrial zones, culture, tourism, healthcare, education, science and technology, agriculture, and the environment. Additionally, the city is committed to allocating resources to local communes and wards , with a focus on high-impact "driving-force" projects that expand development space and enhance regional competitiveness.

Regarding the scale of capital, the city leader reached a consensus on the proposed total investment for the medium term. However, he directed the Department of Finance to further analyze the correlation between total public investment, total social investment, and the 10% growth target. This includes clarifying the underlying data, assumptions, and calculation methods used in the proposal.

In terms of project prioritization, the city has established a clear hierarchy: transitional projects that must be completed within the period; driving-force projects capable of stimulating growth, expanding development space, and generating revenue; social welfare projects, including healthcare, education, environment, national defense, and security; and projects that have already completed all necessary investment procedures.

New projects or those with incomplete procedures must finalize their documentation by July 15. The Chairman emphasized that projects failing to demonstrate necessity, lack clear funding sources, show insufficient efficiency, or fail to meet progress requirements will not be included in the official capital allocation plan.

Vneconomy-Nguyễn Thuấn

Government's new action plan for combatting money laundering and terrorism financing adopted

Sun, 28 Jun 2026 08:30:00 GMT

The plan aims to remove Viet Nam from the list of countries subject to increased monitoring issued by the Financial Action Task Force (FATF) – a global money laundering and terrorist financing watchdog.

Under Prime Ministerial Decision No.1139/QD-TTg, signed by Deputy Prime Minister Nguyen Van Thang on June 26, the Government's new action plan for combatting money laundering, terrorism financing, and the financing of the proliferation of weapons of mass destruction (WMD) has been adopted.

The plan constitutes part of Vietnam's efforts to implement its international commitments to prevent and combat money laundering, terrorism financing, and proliferation financing, the Government News remarked

The plan aims to remove Vietnam from the list of countries subject to increased monitoring issued by the Financial Action Task Force (FATF) – a global money laundering and terrorist financing watchdog.

Under the plan, the Government required ministries and central agencies to develop, issue, and effecively carry out their action plans to reduce risks of money laundering for 2023-2028 period.

Ministries and central agencies are requested to develop and implement supervision mechanisms for the deployment of their action plans; enhance cooperation with foreign partners.

Since June 2023, when Vietnam made a high-level political commitment to work with the FATF and APG to strengthen the effectiveness of its AML/CFT regime, the country has taken some steps towards improving its AML/CFT regime.

FATF suggested Vietnam should continue to work on implementing its action plan to address its strategic deficiencies, including increasing risk understanding; enhancing international co-operation; implementing effective risk-based supervision for FIs and DNFBPs, taking action to regulate virtual assets and virtual asset service providers.

Vietnam should conduct outreach activities with the private sector, establish a regime that provides competent authorities with adequate, accurate and up-to-date information on beneficial ownership.

VGP-Khanh Van

Attractive offerings from Vietnam's International Financial Center

Wed, 24 Jun 2026 10:30:00 GMT

As the International Financial Center in Vietnam comes into being, the task now at hand is shaping core product portfolios that appeal to investors.

As both the global and domestic economies undergo profound structural shifts, the need to develop breakthrough financial products for Vietnam’s International Financial Center (IFC), headquartered in Ho Chi Minh City and Da Nang, has become increasingly urgent. Such products are expected to attract long-term capital, provide solutions to national-scale bottlenecks, and elevate the standing of Vietnam’s financial market.

Recent directives from the government have sent strong signals regarding a new wave of economic institutional reform. On June 2, 2026, Prime Minister Le Minh Hung chaired a meeting on IFC implementation, assigning ministries and agencies to coordinate with specialized bodies to urgently design flagship product portfolios for the IFC in Ho Chi Minh City and Da Nang.

Ho Chi Minh City IFC

With contributions from a seven-member founding alliance comprising the Sovico Group, VinaCapital, Nasdaq, three major commercial banks (MB, TPBank, and SHB), and Son Kim Capital, the Ho Chi Minh City IFC (VIFC-HCMC) possesses an ideal platform for implementing sophisticated capital structures that combine financial and technological resources with underlying asset infrastructure to create transformative core products.

The first flagship product is a Digital Project and Sustainability Bond framework designed to mobilize and direct long-term capital from international institutions into strategic infrastructure megaprojects and key social housing and rental housing programs in the city, thereby easing budgetary pressures.

VIFC-HCMC could propose a Digital Bond issuance model under which issuers would include the Ho Chi Minh City Finance and Investment State-Owned Company (HFIC) or authorized State-owned corporations responsible for project implementation.

These bonds would not rely on State budget allocations for repayment. Principal and interest obligations would be secured by domestic revenue streams. For project and green infrastructure bonds, repayment sources would include future operating revenues, commercial and service exploitation rights, or land auction proceeds. For social housing and rental housing bonds, repayment would be supported by housing sales revenues or recurring rental income.

A portion of these VND-denominated revenues could be converted into USD through currency swap instruments provided by member commercial banks, thereby reducing exchange-rate risks associated with servicing USD-denominated bonds sold to international investors through the Nasdaq connectivity platform.

The Digital Bond model would operate under a two-tier structure.

Tier 1 - Private Placement and Initial Liquidity Creation: Project entities would issue VND-denominated Digital Bonds through private placements directly on the IFC’s technology platform. International investment funds and financial institutions within the IFC ecosystem would serve as anchor investors, committing to purchase 60-70 per cent of each issuance. The IFC platform, in coordination with founding commercial banks, would provide automated digital foreign-exchange conversion mechanisms, simplifying currency conversion procedures and enabling direct VND disbursement to projects without placing pressure on the State budget.

Tier 2 - International Public Distribution Through the VIFC-Nasdaq Connectivity Platform: The remaining bond volume would be listed in USD on a dedicated digital board operated by VIFC-HCMC. Through direct technological integration with Nasdaq, these Digital Bonds would be displayed simultaneously on both platforms, allowing international investors to place orders and trade in USD via Nasdaq’s infrastructure. Nasdaq’s system would automatically match orders against the underlying assets listed on VIFC-HCMC, ensuring real-time cross-border liquidity while complying with domestic monetary security requirements.

To enhance attractiveness, internationally-linked Digital Bonds issued within the IFC sandbox environment should be granted a zero-tax regime covering foreign contractor tax, dividend income tax, and capital gains tax. Foreign investors would also be guaranteed the right to freely convert currencies and repatriate capital and profits in USD. Administrative friction would be minimized through real-time RegTech (regulatory technology) monitoring systems integrating anti-money laundering (AML) controls and electronic Know-Your-Customer (eKYC) processes on blockchain-based infrastructure.

The second product is an international marketplace for fundraising and intellectual property (IP) tokenization. A major challenge in implementing the Law on Support for Small and Medium-Sized Enterprises is that technology companies and innovative startups often possess valuable IP and patents but face difficulties accessing capital due to the challenges of valuing intangible assets and the banking sector’s concerns regarding collateral.

VIFC-HCMC could address this bottleneck by tokenizing IP assets, such as patents and software copyrights, into blockchain-based IP Tokens. Legal documentation, certification histories, and projected revenue streams would be embedded into smart contracts, ensuring transparency and immutability.

Once packaged, these IP Tokens could be listed on a dedicated digital board within VIFC-HCMC, utilizing technology infrastructure linked to Nasdaq’s digital asset and cross-border trading systems. Through this direct connection, international venture capital funds would gain access to the IP assets of Vietnamese small and medium-sized enterprises (SMEs).

Fund managers would serve as anchor investors supporting market liquidity, while the alliance of the three commercial banks would act as custodians of underlying assets and provide working-capital credit lines based on real-time token valuations.

The third product is a global tokenized agricultural commodities and carbon credit exchange. Each year, tens of billions of USD worth of key Vietnamese agricultural exports, including coffee, rice, and pepper, remain dependent on pricing mechanisms determined by overseas commodity exchanges.

Through its strategic relationship with Nasdaq, VIFC-HCMC should establish a tokenized agricultural commodities and carbon credit exchange. Combining international matching-engine technology, clearing and settlement capabilities from founding commercial banks, and the logistics networks of diversified corporate members would enable Vietnam to gain greater control over pricing for its agricultural products.

Farmers and businesses would benefit from transparent pricing and direct trading through digital certificates, reducing intermediary financial costs and retaining more value within domestic agricultural supply chains.

Da Nang IFC

While Ho Chi Minh City represents the depth of the corporate capital market, the 12 official members of VIFC Da Nang possess stronger financial technology capabilities. Based on this foundation, several core products could be developed.

The first product would be a Digital Bond framework supporting logistics infrastructure across central Vietnam. Similar to the VIFC-HCMC model, it would adopt a two-tier structure, with institutional placements at Tier 1 and retail distribution through Da Nang IFC’s International Digital Asset Exchange at Tier 2.

Bond repayment obligations would be supported by future revenues from port services, warehousing fees, and transportation services generated by pilot logistics networks across the region.

The second product is a dedicated offshore digital banking institution. To fully leverage the special mechanisms established under Resolution No. 259/2025/QH15, Da Nang should consider developing a dedicated offshore digital banking model to strengthen its competitiveness against regional financial centers such as Singapore and Hong Kong (China).

Under this framework, non-resident offshore accounts would operate in a zero-tax environment with unrestricted capital mobility. State-owned commercial banks, in collaboration with digital financial groups, would provide real-time payment services and specialized foreign exchange hedging infrastructure.

This would create a critical financial pipeline facilitating cross-border capital flows while reducing administrative friction costs for foreign trade activities by an estimated 1.5-2 per cent for FDI enterprises operating along the East-West Economic Corridor.

A key innovation of the model lies in replacing paper-based administrative controls with digital infrastructure. Cross-border eKYC procedures, AML compliance checks, and unusual transaction monitoring would be fully automated using decentralized technologies and AI operated by the IFC’s technology and legal alliance.

This smart governance framework could reduce operating costs by up to 60 per cent compared to traditional models while creating a secure environment for attracting foreign capital without undermining domestic monetary stability.

In conclusion, by designing a portfolio of flagship products closely aligned with the strengths of founding members and fully leveraging the institutional and technological advantages of the IFC to address practical national and local challenges, Vietnam can transform the IFC into national models of innovation.

These breakthrough products represent the strategic intersection between the government’s macro-economic management objectives, local aspirations for institutional reform, and the economic interests and development ambitions of participating members. They can serve as a launchpad for Vietnam’s financial market to navigate increasingly challenging global macro-economic conditions and contribute meaningfully to the country’s goal of rapid and sustainable development in the new era.

VET-Hong Ha

HCM City targets services sector to contribute up to 75% of GRDP by 2040

Tue, 23 Jun 2026 01:30:00 GMT

The target is part of the southern city's strategy to become a leading services hub in Southeast Asia.

Ho Chi Minh City has set an ambitious goal of increasing the contribution of the services sector to 60–65% of its Gross Regional Domestic Product (GRDP) by 2030 and 70–75% by 2040, as part of its strategy to become a leading services hub in Southeast Asia.

The city’s People's Committee has issued a plan to implement a project aimed at transforming the southern metropolis into a major national and regional services center, focusing on high-value, modern service industries.

Under the plan, the services sector will remain the primary engine of economic growth and play a leading role in restructuring the economy toward greater efficiency, modernization and sustainability. The city targets annual service-sector growth of 12–14% during the 2025–2030 period. Between 2030 and 2040, service-sector growth is expected to remain strong at 11–13% per year.

The strategy identifies three groups of priority industries. Strategic sectors include finance, banking and insurance; information and communications; transportation, warehousing and logistics; science, technology and innovation; and tourism. Potential growth sectors include education and training, healthcare, and digital economy services, while supporting sectors comprise trade, real estate, arts, sports and entertainment.

A key feature of the plan is the implementation of a “5+1” development model, with Ho Chi Minh City - based Vietnam's International Financial Centre serving as the core and linked to five strategic service hubs: a maritime and logistics center; an information, communications, science and innovation center; a tourism center; a healthcare center; and an education and training center.

By 2030, the city aims to become Southeast Asia’s leading services center and maintain its role as Vietnam’s economic powerhouse in digital economy development, finance, science and technology, logistics, tourism, education and healthcare.

Looking further ahead, the city targets becoming one of Asia’s leading service hubs by 2035 and joining the world's top 100 fastest-growing, most modern and sustainable cities. By 2045, it aspires to achieve global service-center status and rank among the world's top 50 rapidly developing, modern and sustainable cities.

VnEconomy-Minh Huy

$6.5bln raised through G-bond auctions as of June 15

Mon, 22 Jun 2026 00:00:00 GMT

The figure equivalent to 33.7% of the 2026 target.

Vietnam’s State Treasury has raised VND168.5 trillion (approximately $6.5 billion) through government bond issuance as of June 15, fulfilling about 33.7% of its 2026 fundraising target, according to the Ministry of Finance.

Under the ministry’s plan, the State Treasury is tasked with issuing a total of VND500 trillion in government bonds this year to support state budget financing and fiscal balance.

In the second quarter alone, the Treasury conducted 11 bond auctions, raising VND88.4 trillion. All bonds were issued through competitive auctions, with maturities ranging from three to 30 years.

Issuance yields have continued to trend higher compared with last year. By mid-June, the average bond yield had reached 4.09% per annum, up 0.83 percentage points from the average level recorded in 2025.

The State Treasury said it has maintained a flexible approach to interest-rate management, closely monitoring market developments and aligning its issuance strategy with the monetary policy orientation of the State Bank of Vietnam.

VnEconomy-Mai Nhi

Continued resilience of Vietnam's economy

Fri, 19 Jun 2026 09:30:00 GMT

Economic performance in the first five months of 2026 was solid overall though certain concerns are emerging.

Vietnam’s economy maintained its solid recovery trajectory over the course of the first five months of 2026, with bright spots found in industrial production, public investment, FDI inflows, and international goods trade. Behind the growth figures, however, several emerging concerns warrant close attention: mounting inflationary pressure, a widening trade deficit, sluggish domestic demand, and a growing dependence on the FDI sector. These developments suggest that the economy is entering a phase in which the challenge is no longer simply to grow faster but to become more self-reliant and achieve more sustainable growth.

Industrial production

The Index of Industrial Production (IIP) rose 9.1 per cent year-on-year in the first five months, 0.3 percentage points higher than the growth recorded during the same period of 2025. It also marked the strongest five-month performance in four years.

The manufacturing and processing sector remained the primary growth driver, making the largest contribution to industrial output, exports, and job creation. The result underscores the resilience and adaptability of Vietnam’s manufacturing base despite continued uncertainty in the global economy.

The expansion in industrial production also reflects the initial effectiveness of policies aimed at supporting businesses, accelerating public investment, and improving the business environment.

Industrial production continues to be a key pillar of economic growth. However, the quality of the recovery is facing increasing pressure from rising input costs and external volatility.

Still, industrial output data only captures the sector’s end-results. To assess the quality and sustainability of the recovery, it is necessary to examine leading indicators such as new orders, production volumes, and business sentiment. These trends were reflected clearly in the Manufacturing Purchasing Managers’ Index (PMI) for May, which rose to 52.8 points from 50.5 points in April.

Output expanded for the 13th consecutive month, with growth accelerating significantly from March and April. New export orders returned to growth after two months of decline. Purchasing activity and inventories of raw materials also increased substantially. Yet these positive signs should be interpreted with caution.

The rise in orders and purchasing activity during May did not stem entirely from stronger aggregate demand. Rather, much of the increase reflected businesses’ efforts to hedge against potential supply chain disruptions linked to the conflict in the Middle East. Many companies proactively increased inventories of raw materials and goods to protect themselves against future price shocks and supply shortages. As a result, current growth signs appear to be driven more by risk mitigation than by genuine market demand.

More importantly, input costs increased for the fourth consecutive month, hitting the fastest pace of growth since April 2011. Rising prices for imported materials, fuels, and logistics services forced many manufacturers to raise their selling prices. This not only affects profitability and competitiveness but also increases inflationary pressure across the broader economy.

The rebound in the PMI reflects a recovery in manufacturing activity, but much of the momentum appears to be driven by precautionary behavior rather than a durable improvement in demand. The PMI data suggests, however, that manufacturing remains on a growth path despite mounting cost pressures.

However, economic health is measured not only by production activity but also by the ability of businesses to enter, survive, and expand. Against that backdrop, business formation and market exits during the first five months provide additional insights.

Business formation rises sharply

Vietnam recorded 94,800 newly-established enterprises in the five-month period, up 42.1 per cent year-on-year. Combined with nearly 47,800 businesses resuming operations after a period of temporary suspension, total market entrants reached 142,600 enterprises.

This is a positive sign, indicating a significant improvement in business confidence compared with last year. However, 74.47 per cent of newly-established enterprises were concentrated in the services sector, while growth in new industrial and manufacturing enterprises remained modest. On average, each newly-established enterprises registered only 4.5 employees and average charter capital of VND11.2 billion ($431,000).

These figures suggest that while the number of new businesses is rising rapidly, their scale remains small and their contribution to new productive capacity is limited. Most new enterprises continue to focus on trade and services rather than expanding the economy’s manufacturing base.

At the same time, 78,800 businesses suspended operations, more than 31,400 ceased operations pending dissolution, and over 19,000 completed dissolution procedures. In total, 129,200 enterprises exited the market, equivalent to 90.6 per cent of the number entering the market. This ratio indicates that the business environment remains challenging, particularly for small and medium-sized enterprises (SMEs).

More businesses are entering the market, but resilience and business quality remain unresolved challenges. For an economy as open as Vietnam’s, corporate performance is closely tied to international market conditions. Therefore, in addition to domestic business indicators, trade data remains a critical gauge of competitiveness and economic resilience.

Trade deficit widens

Vietnam’s total goods trade turnover stood at $445.12 billion in the first five months of 2026, up 25 per cent year-on-year. Exports totaled $215.66 billion, increasing 19.5 per cent, while imports surged 30.8 per cent to $229.46 billion, resulting in a trade deficit of $13.8 billion.

Notably, the trade deficit in May reached $5.21 billion, exceeding the $3.99 billion deficit recorded in April.

The trend suggests that many businesses have accelerated imports of materials and goods as a precaution against supply chain disruptions and price volatility associated with the conflict in the Middle East.

While higher imports may help businesses manage risks and maintain production, they also highlight the manufacturing sector’s heavy reliance on imported inputs.

Another notable feature is the continued dominance of the FDI sector in exports. Of the $215.66 billion in total exports, FDI enterprises accounted for $172.16 billion, up 24.7 per cent and representing 79.8 per cent of the total. The domestic sector generated only $43.5 billion in exports, up 2.5 per cent and accounting for just 20.2 per cent.

The widening gap underscores the limited participation of Vietnamese enterprises in global value chains. While exports are growing rapidly, the economy’s domestic export capacity is not keeping pace with the expansion of the FDI sector.

FDI inflows

FDI attraction remained another bright spot during the first five months of 2026. Yet behind the impressive growth figures lies a larger question: Is Vietnam strengthening its internal economic capacity, or becoming relatively weaker?

During the period, 1,576 new FDI projects were licensed with total registered capital of $14.84 billion; more than double the level recorded a year earlier. Disbursed FDI reached $9.75 billion, up 9.6 per cent for the highest five-month growth rate in five years.

However, the composition of FDI inflows deserves close monitoring. Of total registered FDI, $4.19 billion came from capital contributions and share acquisitions, up 46.7 per cent year-on-year. In May alone, such transactions totaled $1.68 billion, accounting for more than 40 per cent of the five-month total.

Most notably, foreign investors completed 828 acquisitions of stakes in domestic companies without increasing charter capital, with a combined value of $3.62 billion. This means that a substantial portion of FDI inflows is not directly creating new production capacity or jobs. Rather, ownership of existing domestic assets is being transferred from local investors to foreign investors.

From a market perspective, such transactions are a normal feature of an open economy. From a long-term development perspective, however, they raise two concerns. First, many domestic enterprises may be struggling with capital shortages, technology gaps, and competitive pressures, prompting them to sell equity stakes to foreign partners. Second, if the trend persists, Vietnam risks becoming increasingly dependent on the FDI sector, potentially weakening its economic autonomy. The issue is not the amount of FDI entering the country, but rather the growing share of investment directed toward acquiring existing assets instead of creating new productive capacity.

Domestic consumption

Retail sales of goods and consumer service revenues increased just 6.1 per cent during the first five months of 2026, below the 7.2 per cent growth rate recorded during the same period last year and slower than growth recorded in the first four months of the year. This occurred despite Vietnam welcoming 10.6 million international visitors, up 14.9 per cent and the highest level ever recorded. Without the boost from international tourism, underlying household demand would appear even weaker.

The data suggests that household incomes have not improved sufficiently to offset rising consumer prices. Inflationary pressures continue to encourage cautious spending behavior among consumers. The economy is unlikely to achieve sustainable growth if household consumption recovers more slowly than production and investment.

Weak consumer demand reflects not only modest income growth but also the increasingly visible impact of rising prices. With business input costs continuing to rise and global energy prices remaining elevated, inflation has become one of the most pressing macro-economic concerns.

Rising inflation

The Consumer Price Index (CPI) increased 5.6 per cent year-on-year in May and 4.31 per cent during the first five months, while core inflation rose 4.04 per cent. These figures are relatively high given the dual objective of maintaining macro-economic stability while pursuing double-digit economic growth.

Current inflation is largely cost-push in nature. Higher raw material prices, rising logistics costs, exchange rate pressures, and elevated global energy prices are all contributing factors.

Under the World Bank’s baseline scenario, assuming the most severe disruptions ease and shipping through the Strait of Hormuz gradually returns to near pre-conflict levels by the end of the year, Brent crude oil prices are projected to average $86 a barrel in 2026, up 24.6 per cent from $69 per barrel in 2025. This factor alone could add approximately 1.1 percentage points to the CPI.

At the same time, expanded public investment and adjustments to State-administered prices for selected goods and services could place additional upward pressure on prices. Inflation is no longer a latent risk; it is becoming an active constraint on growth and macro-economic stability.

Emerging constraints

Viewed individually, many indicators point to encouraging economic performance. However, when production, business activity, trade, investment, consumption, and inflation are considered together, new constraints on growth become increasingly apparent.

Rising inflation, weak domestic demand, widening trade deficits, fragile domestic enterprises, and growing dependence on the FDI sector are creating new pressures on the economy.

These risks do not exist in isolation - they increasingly reinforce one another. Higher inflation weakens purchasing power; weaker demand limits business expansion; and when domestic firms struggle, the FDI sector gains an even larger role in driving growth. The greatest risk today is not slower growth, but growth that becomes increasingly dependent on external factors and therefore less sustainable.

Recognizing these constraints is, however, not a cause for pessimism. Rather, it is necessary to identify policy priorities more clearly as Vietnam navigates a period of overlapping challenges.

Under current conditions, the top priority for macro-economic management should be controlling inflation and safeguarding macro-economic stability. At the same time, Vietnam should continue institutional reforms, reduce compliance burdens, and lower logistics and input costs for businesses. Policies in growth support should focus more strongly on strengthening domestic enterprises, particularly manufacturers and technology companies.

With respect to FDI, the objective should not simply be attracting more capital, but attracting higher-quality investment that creates new productive capacity, transfers technology, and strengthens links with domestic enterprises. At this stage, the most important task is not merely to accelerate growth, but to protect the quality of growth.

These measures will be most effective if implemented consistently, comprehensively, and in a timely manner. More importantly, they are not just short-term responses to immediate challenges but essential steps toward reinforcing the economy’s long-term foundations.

Results in the first five months of 2026 demonstrate that Vietnam’s economy remains resilient and continues to recover. Yet new pressures are emerging more rapidly than expected.

Looking beyond this year, the greatest risk may not lie in the pace of growth itself but in the quality, autonomy, and sustainability of such growth. If domestic enterprises are not strengthened, and if growth continues to rely excessively on exports and investment from the FDI sector, the gap between economic scale and internal capacity will continue to widen.

Vietnam’s strategic objective in the years ahead should therefore extend beyond achieving faster growth. It should focus on building a more resilient economy, strengthening self-reliance, and increasing the capacity of domestic enterprises to generate higher value-added output.

In the short term, macro-economic stability and inflation control must remain the top priorities. In the long term, however, the strength of domestic enterprises will determine the economy’s resilience and global standing. High growth is important, but growth built on strong domestic foundations is the true basis for sustainable national development.

(*) Dr. Nguyen Bich Lam is the former Director General of the General Statistics Office (now the National Statistics Office under the Ministry of Finance)

VET-Dr. Nguyen Bich Lam(*)

Airport operators must have minimum capital of $3.8 mln from July 1

Wed, 17 Jun 2026 07:10:00 GMT

Enterprises must maintain an organizational structure and personnel capable of ensuring aviation safety, aviation security, and airport business operations.

The Government has promulgated Decree No. 205/2026/NĐ-CP, dated June 15, 2026, providing regulations on airports and landing and take-off pads, according to a news report by Radio the Voice of Vietnam (VOV).

Specifically, the Decree stipulates conditions for airport businesses, airport business licenses, and conditions for providing aviation services at airports.

Regarding airport business operations, the Decree clearly outlines requirements for capital, organizational structure, and personnel.

To establish and maintain an airport enterprise, the following capital conditions must be met: minimum owner’s equity of VND100 billion ($3.8 million); and foreign ownership limit not exceeding 30% of the enterprise's charter capital, except where otherwise provided by international treaties to which the Socialist Republic of Vietnam is a member.

Enterprises must maintain an organizational structure and personnel capable of ensuring aviation safety, aviation security, and airport business operations.

Specifically, personnel responsible for aviation safety must hold certificates confirming their participation in training and coaching courses on aviation safety management systems; and personnel responsible for aviation security must comply with the legal regulations on aviation security.

The Decree further stipulates that an Airport Business License may be granted to an enterprise to operate at one or multiple airports. In the event that an enterprise changes its scope of business at an airport, it must carry out procedures to amend or supplement its Airport Business License.

Airport enterprises will be granted the license upon meeting all aforementioned conditions. These regulations are set to take effect on July 1, 2026.

VOV-

UK launches new climate and green finance partnerships with Vietnam

Wed, 17 Jun 2026 01:40:00 GMT

The initiatives aim to accelerate Vietnam’s energy transition and sustainable development agenda.

The United Kingdom has unveiled two new climate cooperation initiatives with Vietnam, reinforcing bilateral efforts to accelerate the country’s energy transition and sustainable development agenda.

Announced in Hanoi on June 16, the initiatives include the UK–Vietnam Offshore Wind Accelerator Partnership and a new Green Finance Facility under the UK PACT (Partnering for Accelerated Climate Transitions) program.

The first initiative, the UK–Vietnam Offshore Wind Accelerator Partnership, is designed to support Vietnam during a critical stage in the development of its offshore wind industry. The program will combine technical assistance, research collaboration, and international cooperation to help build a robust offshore wind market.

Under the partnership, activities will focus on three key areas: strengthening the capabilities of government agencies and businesses, sharing international best practices drawn from the UK’s extensive offshore wind experience, and providing specialized technical support on priority policy and technology issues. The initiative also complements broader UK support for Vietnam under the Just Energy Transition Partnership (JETP) and other green investment and sustainable finance programs.

Alongside the offshore wind partnership, the UK announced a Green Finance Facility under UK PACT, implemented in collaboration with KPMG. The initiative aims to strengthen Vietnam’s green finance ecosystem and support the country’s transition to a low-emissions economy.

Built upon the existing Vietnam–UK Green Investment Partnership, the facility seeks to mobilize capital from development finance institutions and UK commercial partners while supporting improvements to Vietnam’s regulatory framework through technical assistance and knowledge sharing.

The new programs are expected to enhance Vietnam’s capacity to attract sustainable investment, expand renewable energy deployment, and advance its long-term climate commitments.

VnEconomy-Chu Khôi

ADB plans $4.6bln financing package for Vietnam through 2029

Tue, 16 Jun 2026 08:30:00 GMT

The Asian Development Bank plans to support Vietnam with a portfolio of 27 projects worth approximately $4.6 billion through 2029.

The Asian Development Bank (ADB) plans to support Vietnam with a portfolio of 27 projects worth approximately $4.6 billion through 2029, focusing on infrastructure, energy, urban development, agriculture, and public sector efficiency.

The plan was discussed during a meeting on June 15 in Hanoi between Deputy Minister of Finance Tran Quoc Phuong and Mr. Kim Dongil, Executive Director at ADB representing a constituency that includes Vietnam and some other Asian countries.

During the meeting, both sides reviewed future cooperation priorities, including budget support lending, large-scale infrastructure projects, and initiatives aimed at expanding ASEAN power grid connectivity.

According to ADB, the proposed project pipeline aligns with Vietnam’s key development priorities and is designed to support sustainable economic growth. The two sides agreed that future cooperation should focus on large-scale, high-impact projects capable of generating broad economic benefits rather than dispersing resources across smaller initiatives.

Deputy Minister Phuong noted that Vietnam’s financing needs remain substantial as the country pursues ambitious development goals. He emphasized that investment resources will be directed toward growth-driving sectors and regions with strong capacity to absorb capital effectively.

For his part, Mr. Kim Dongil reaffirmed ADB’s commitment to expanding its operations and financial support through 2030. He said the bank stands ready to assist Vietnam in achieving its socio-economic development objectives and expressed confidence that cooperation between the two sides will continue to deepen in the years ahead.

VnEconomy-Phương Nhi

Corporate bond issuance rises in May as real estate firms increase fundraising

Wed, 10 Jun 2026 23:00:00 GMT

Total corporate bond issuance in May reaching VND40.26 trillion ($1.53 billion), up 21.5% from the previous month.

Vietnam’s corporate bond market recorded a rebound in May issuance, driven largely by commercial banks and property developers, according to data from the Vietnam Bond Market Association (VBMA).

As of May 29, the market had witnessed 29 privately placed issuances of corporate bonds worth a combined VND36.26 trillion ($1.38 billion), alongside 4 public offerings totaling VND3.99 trillion.

Total corporate bond issuance in May reached VND40.26 trillion, up 21.5% from the previous month. However, the figure was down 42% compared with the same period last year.

In the first five months of 2026, privately placed bond value stood at VND107.02 trillion, while public bond offerings at VND20.33 trillion.

Commercial banks and real estate developers continued to dominate the issuance market. Banks accounted for approximately 48% of total issuance value during the month, while property companies contributed about 44%.

The market structure has shifted significantly from a year earlier. In May 2025, commercial banks represented around 70% of total corporate bond issuance. Their share has since declined to 48%, while the proportion issued by real estate companies has doubled from 22% to roughly 44%, reflecting stronger fundraising demand from the property sector.

VnEconomy-Lan Anh

Ministry proposes special mechanism for North-South Expressway expansion

Wed, 10 Jun 2026 07:28:00 GMT

Under the medium-term public investment plan for the 2026–2030 period, the Ministry of Construction has organized the preparation of a pre-feasibility study to widen sections of the Eastern North-South Expressway.

The Ministry of Construction (MoC) has dispatched a document to 11 provinces and cities to solicit feedback on the pre-feasibility study report for a project to expand several sections of the Eastern North-South Expressway.

The localities involved include Dong Nai city and the provinces of Ninh Binh, Thanh Hoa, Nghe An, Ha Tinh, Quang Tri, Quang Ngai, Gia Lai, Dak Lak, Khanh Hoa, and Lam Dong.

Under the medium-term public investment plan for the 2026–2030 period, the MoC has organized the preparation of a pre-feasibility study to widen many sections of the Eastern North-South Expressway. The plan aims to upgrade segments currently featuring four "limited" lanes (17 meters wide) to a complete six-lane expressway standard.

The ministry has requested local authorities to evaluate the project's necessity and socio-economic efficiency. Localities are also encouraged to propose suitable investment models, choosing between public investment and Public-Private Partnerships (PPP). Furthermore, the MoC called for recommendations on "special mechanisms" to resolve bottlenecks in land clearance, construction material supply, and project implementation.

Earlier, while chairing a meeting on June 9 on the investment preparations for the expansion, Minister of Construction Tran Hong Minh reached a consensus on upgrading the four-lane sections to six lanes in accordance with the national master plan. This approach is intended to ensure long-term synchronization and avoid the inefficiency of multiple incremental expansions, which waste time and resources and disrupt the operation of the entire route.

The MoC has also ordered a comprehensive review of the entire North-South Expressway corridor from the northern mountainous province of Lang Son, which borders China, to the southernmost province of Ca Mau. The route is divided into three primary segments: Lang Son – Hanoi, Hanoi – Ho Chi Minh City, and Ho Chi Minh City – Dat Mui (in Ca Mau province). Based on an assessment of traffic volume, technical standards, and transport demand for each specific section, authorities will determine the investment scope and the order of priority for implementation.

Vneconomy-Gia Huy

UK supports Vietnam’s economic transformation through its financial services sector

Wed, 10 Jun 2026 04:26:00 GMT

As a Comprehensive Strategic Partner of Vietnam, the UK is supporting the country's economic transformation through its financial services sector, as well as through investment, expertise, innovation, and long-term institutional cooperation.

Vietnam’s economic transformation over the past decade has been remarkable. Strong export performance, a rapidly expanding middle class, and deeper integration into global markets have positioned the country among Asia’s most dynamic economies. Behind this success lies a less visible but equally critical factor: a modern financial system that enables businesses to access capital, manage risks, and scale efficiently.

As a Comprehensive Strategic Partner of Vietnam, the United Kingdom is supporting this transformation not only through investment, but also through expertise, innovation, and long-term institutional cooperation. Drawing on the experience of one of the world's leading financial centres, the UK is helping Vietnam build financial systems that are efficient, transparent, and resilient.

Today, this partnership is contributing to Vietnam's development in three key areas: expanding access to finance, advancing the green transition, and strengthening the foundations of its financial system.

Expanding access to finance

UK Export Finance (UKEF) has committed at least £5 billion (approximately $6.5 billion) to support projects in Vietnam through its guarantee framework. A Memorandum of Understanding between Vietnam’s Ministry of Finance and UKEF, signed in October 2025 during General Secretary To Lam’s visit to London, has laid the groundwork for deeper collaboration and expanded access to international capital.

Foreign trade remains central to Vietnam’s growth model, but exporting requires reliable financing for working capital, input materials, and order fulfilment. Yet many small and medium-sized enterprises (SMEs) continue to face challenges in accessing trade finance. Through collaboration with local partners, UK banks such as HSBC and Standard Chartered are expanding trade finance, supply-chain financing, and working-capital solutions, helping channel international capital into Vietnamese businesses and enabling them to integrate more deeply into global value chains.

Long-term investors are also contributing to the development of Vietnam’s capital markets. Dragon Capital, with more than three decades of experience in Vietnam, manages approximately $5 billion in assets, while Eastspring Investment Vietnam manages around $7 billion. Their continued presence reflects growing investor confidence and the increasing maturity of Vietnam’s financial sector.

Together, these partnerships are widening access to finance while improving the quality and depth of Vietnam’s financial ecosystem. By linking domestic businesses with global capital and expertise, they are supporting business expansion, job creation, and stronger export performance.

Cooperation is increasingly moving from commitments to implementation. The UK is supporting efforts to mobilise financing and expertise for metro systems and high-speed rail development in Hanoi and Ho Chi Minh City. UKEF has also engaged with key energy companies, including PetroVietnam and Petroleum Technical Services Corporation (PTSC), issuing letters of interest for Vietnam’s first large-scale offshore wind projects. These initiatives are helping unlock investment while accelerating the country’s green transition.

The UK is also supporting Vietnam’s ambition to achieve net-zero emissions by 2050. In 2025, British International Investment provided a $50 million loan to VPBank to expand climate-related financing, further strengthening the flow of capital towards sustainable development.

Building a stronger financial system for long-term growth

Beyond capital flows, UK expertise is helping Vietnam strengthen the foundations of its financial system. Sustainable economic growth depends not only on investment, but also on transparent institutions, modern infrastructure and trusted regulatory frameworks.

The UK is working with Vietnamese partners across fintech, capital-market development and financial regulation. A growing number of UK fintech companies, including Revolut, Wise, Ozone API, Raidiam, Sumsub and iProov, are exploring opportunities in Vietnam, contributing expertise in digital banking, cross-border payments, open finance and digital assets. Their engagement also supports Vietnam’s ambition to develop international financial centres in Ho Chi Minh City and Da Nang.

One flagship initiative is the Trade Finance Registry (TFR), developed in partnership with the State Bank of Vietnam, the Vietnam Banks Association and Boston Consulting Group. Vietnam is estimated to face a trade-finance gap of $85–90 billion, partly due to fraud risks, limited transparency and fragmented data. The TFR seeks to address these challenges through a centralised platform that records and verifies trade transactions, helping reduce risks and expand lending capacity, particularly for SMEs.

Cooperation also extends to commodity markets and financial infrastructure. Through the Growth Gateway programme, the UK is supporting the development of Vietnam’s commodity exchange market by sharing international best practices and strengthening links with institutions such as the London Metal Exchange and ICE Futures Europe.

For Vietnam, the benefits are clear. Better access to finance, deeper capital markets and stronger financial institutions enable businesses to expand, innovate and participate more effectively in global value chains. As the country works toward becoming a high-income economy by 2045 and achieving net-zero emissions by 2050, trusted financial partnerships will play an increasingly important role.

The UK–Vietnam financial partnership is therefore about far more than capital. It combines investment with expertise, strengthens institutions while supporting innovation, and helps build the foundations for a more resilient, sustainable and globally competitive economy.

(*) H. E. Ms. Alexandra Smith is the British Consul General in Ho Chi Minh City and Trade Director for Vietnam

Vneconomy - Alexandra Smith (*)

Strengthening banking cybersecurity

Tue, 09 Jun 2026 03:30:00 GMT

Rising cases of AI-driven fraud are putting pressure on banks to bolster their cybersecurity capabilities.

The pace of digital transformation in Vietnam’s banking and finance sector is accelerating faster than ever. Cashless payments, digital banking, electronic identification, AI, and digital finance platforms are fundamentally reshaping how people transact, store assets, and access financial services. Behind every interaction, however, no matter how brief, lies a quiet battle between convenience and risk; between speed and security.

According to the National Cybersecurity Association, one in every 220 smartphone users falls victim to online fraud. More than half of agencies, organizations, and businesses in Vietnam have reportedly experienced cyberattacks. This has created an urgent need to strengthen risk management capacity, safeguard customer data, and enhance cross-sector coordination in combating high-tech crime.

At the “Building a Digital Trust Ecosystem for Sustainable Financial Growth” panel discussion, held within the Digital Trust in Finance 2026 forum, experts argued that the issue today is “no longer simply whether to pursue digital transformation or whether to adopt AI,” but rather “who will lead and how will stakeholders work together to ensure a transparent, secure, and trustworthy digital financial environment.”

Downside of AI in banking

Mr. Hoang Minh Tien, Deputy Director General of the Information Technology Department at the State Bank of Vietnam, said more than 70 per cent of credit institutions in Vietnam have already adopted AI in their operations. Many banks now record as much as 95-99 per cent of transactions through digital channels. However, he stressed that AI is also reshaping the risk profile of the banking and financial sector, particularly in fraud, impersonation, and cyberattacks.

Mr. Vu Duy Hien, Deputy Secretary General and Chief of Office at the National Cybersecurity Association, said AI is enabling cybercriminals to reach an entirely new level of sophistication. “Previously, carrying out a cyberattack required hackers to spend a great deal of time and effort preparing,” he said. “Today, AI has dramatically shortened that timeframe.”

In just seconds, AI can generate fake videos using a bank executive’s voice, impersonate advisors, or even mimic family members to request money transfers. Fraudulent websites and phishing emails can now be created faster and are increasingly difficult to detect.

According to Mr. Hien, this is an era of “AI versus AI.” One side uses AI to develop services, while the other exploits the same technology to commit fraud, leaving users increasingly unable to distinguish real from fake.

In the AI era, data has become a strategic asset, but it can also become the greatest vulnerability. Mr. Tien noted that AI relies heavily on data, and the banking sector processes enormous volumes of information, from identification and biometric data to account details, transaction histories, and financial behavior. More concerning, even anonymized data can potentially be reverse-engineered by AI models to recover personal information. “If data is not tightly governed, properly segmented, encrypted, purpose-controlled, logged, and monitored, then data itself, the bank’s strategic asset, could become its greatest vulnerability,” he warned.

Anti-fraud race

Mr. Nguyen Hung, CEO of TPBank, said the bank processes between 5 million and 7 million transactions each day. Without AI, “it would certainly be impossible to control,” he added, but the convenience also comes with an intense battle against fraud.

Bank data analysis, he went on, found that in most fraudulent transactions, once money reaches the destination account, it is transferred again within just 40-45 seconds. “After a few minutes, it has already moved through ten banks and eventually converted into cryptocurrency or another form for cash withdrawal,” he explained. That speed makes tracing or freezing funds extremely difficult and is one reason the banking sector has been forced to rethink fraud prevention.

Biometric authentication following Project 06 on Developing Resident Data and Electronic Identification and Authentication Applications to Support National Digital Transformation in the 2022-2025 Period, with a Vision to 2030, has significantly reduced fraud risks. However, criminals have quickly adapted. “Criminals are increasingly shifting to opening corporate accounts, setting up companies to create accounts, and using them to channel money,” he said.

Experts noted that the race between financial institutions and cybercriminals is continuous. While banks strengthen biometric authentication, behavioral monitoring, and AI-powered transaction analysis, fraud networks constantly evolve their methods to bypass protection systems.

Notably, banks are no longer merely institutions for deposits and lending, but are gradually becoming digital platforms, “a service that can be embedded into the products, services, and applications of other organizations,” Mr. Hung said.

This means the digital financial ecosystem is becoming increasingly interconnected: banks are linked to fintech companies; e-wallets connect with social media platforms; payment systems integrate with e-commerce; and data moves continuously across multiple layers of platforms. According to Mr. Tien, when one link fails, risks can spread rapidly, creating systemic risks.

When many organizations rely on the same AI model or depend on a handful of major technology providers, a single disruption can simultaneously affect multiple financial institutions. “AI risks do not stop at individual models or individual banks, but can spread through technology connections, data, suppliers, markets, and automated decision-making,” Mr. Tien warned. As a result, protecting customers is no longer the responsibility of a single bank, but of the entire ecosystem.

Human factors remain decisive

Speaking at the seminar, many experts emphasized that AI cannot replace humans. “AI is very good at reading documents and summarizing information, but very poor at taking responsibility,” Mr. Thai Tri Hung, Chief Technology Officer of MoMo, told the gathering. “Therefore, the final decision must still rest with people.”

Mr. Tien also argued that AI-driven decisions directly affecting customer rights, such as credit approvals, limits, or rejected transactions, require human oversight mechanisms. This is not only a matter of technology, but also one of ethics, transparency, and accountability.

According to experts, though AI is playing an increasingly important role in banking operations, human judgment remains decisive in risk management and customer protection. “The more powerful the technology, the greater the responsibility for governance,” Mr. Tien emphasized. “The smarter AI becomes, the higher the demands for transparency, security, and accountability.”

Figures from the Ministry of Public Security reveal that losses from online fraud in Vietnam in 2025 were estimated to exceed VND8 trillion ($307.7 million). Between 2020 and 2025, the country recorded more than 24,000 cases of online asset fraud, with total losses approaching VND40 trillion ($1.54 billion).

VET-Ky Phong

Central bank proposes easing rules for foreign exchange agents

Tue, 09 Jun 2026 01:30:00 GMT

The move aiming to reduce business conditions, simplify administrative procedures and expand foreign exchange services at locations frequented by international visitors.

The State Bank of Vietnam (SBV) has proposed easing regulations governing foreign exchange agents, aiming to reduce business conditions, simplify administrative procedures and expand currency exchange services at locations frequented by international visitors.

Under a draft circular released for public consultation, the central bank plans to amend several foreign exchange management regulations related to foreign exchange services provided by non-credit institutions.

A key proposal would relax requirements for foreign currency exchange agents and allow a broader network of exchange points at hotels, tourist destinations, shopping malls, supermarkets and other venues serving large numbers of foreign visitors.

The draft also revises regulations governing agencies that exchange currencies of countries sharing land borders with Vietnam. Under the proposed changes, applications for the issuance, renewal, amendment or extension of operating certificates could be submitted in person, by post or online through the National Public Service Portal.

According to the SBV, the amendments are intended to reduce administrative burdens and compliance costs for businesses while improving access to legal foreign exchange services.

In addition, the draft introduces updated rights and obligations for authorized credit institutions and participating businesses, strengthening the regulatory framework for supervising foreign exchange services provided by non-bank entities while ensuring effective market oversight.

VnEconomy-Tùng Thư

Vietnam raises over $6bln through Government bond auctions in 5M

Sat, 06 Jun 2026 02:00:00 GMT

The figure equivalent to 32% of the annual plan.

The State Treasury raised VND159.2 trillion ($6.05 billion) through Government bond issuance in the first five months of the year, equivalent to 72% of the State Treasury’s second-quarter issuance target and 32% of its annual plan.

The State Treasury mobilized VND33.63 trillion ($1.27 billion) in May alone through 17 bond auctions conducted on the Hanoi Stock Exchange (HNX), according to a news story from the Vietnam News Agency.

Demand remained concentrated in medium- and long-term instruments, with 10-year and five-year bonds accounting for nearly all of the month's issuance. Ten-year bonds made up 54% of total issuance value, raising VND18.25 trillion, while five-year bonds contributed VND15 trillion, or 45% of the total.

During the month, the State Treasury offered bonds with maturities ranging from three to 30 years. Successful bids were recorded for three-, five-, 10-, 15- and 30-year tenors.

Bond yields rose slightly compared with the final auction in April, with winning rates increasing by between 2 and 14 basis points, reflecting continued investor appetite amid evolving market conditions.

VNA-Van Nguyen

Bybit seeks partnership opportunities in Vietnam’s emerging digital asset market

Fri, 05 Jun 2026 06:00:00 GMT

Vietnam earlier issuing a resolution which provides a framework for piloting a digital asset market in the country.

Bybit, one of the world's largest cryptocurrency exchanges headquartered in Dubai, has expressed interest in partnering with Vietnamese organizations as the country moves forward with plans to establish a regulated digital asset market.

At a meeting with Deputy Prime Minister Nguyen Van Thang in Hanoi on June 4, Bybit co-founder and Chief Executive Officer Ben Zhou discussed opportunities for cooperation in developing Vietnam’s digital asset ecosystem.

During the meeting, Deputy Prime Minister Thang highlighted the government's issuance of Resolution No. 05/2025/NQ-CP, which provides a framework for piloting a digital asset market in Vietnam. He noted that while digital assets offer significant growth potential, they also pose risks that require robust oversight to protect investors and prevent money laundering, fraud and other illegal activities.

Mr. Thang said Vietnam welcomes support from reputable international companies with extensive industry experience, particularly in areas such as regulatory development, market supervision, technology infrastructure and workforce training.

The government is also encouraging foreign firms with strong financial and technological capabilities to cooperate with Vietnamese enterprises during the pilot phase. However, participation will be subject to strict criteria covering capital adequacy, technological capacity, system security standards and operational experience.

For his part, Mr. Zhou praised Vietnam’s progress in establishing a legal framework for digital assets and reaffirmed Bybit’s commitment to market transparency and security. He said the company is ready to collaborate with Vietnamese partners and share international expertise in regulatory development and talent training.

Deputy Prime Minister Thang expressed hope that Bybit would become a trusted partner of Vietnamese regulators in building a transparent, efficient and sustainable digital asset market that balances the interests of the state, investors and the broader public.

VnEconomy-Bạch Dương

UOB considers joining Vietnam’s International Financial Center

Fri, 05 Jun 2026 02:30:00 GMT

As part of its expansion plans, UOB will break ground on a new headquarter in Ho Chi Minh City this July. The project is located within the planned Vietnam’s International Financial Center-Ho Chi Minh City zone.

Singapore-based United Overseas Bank (UOB) is exploring the possibility of becoming a member of Vietnam’s International Financial Center (VIFC), underscoring its confidence in Vietnam’s long-term growth prospects, the Government News reported on June 3.

Designed to serve as a gateway between international investors and the Vietnamese market, the VIFC is expected to facilitate capital inflows from Singapore and the broader ASEAN region into Vietnam.

As part of its expansion plans, UOB will break ground on a new headquarter in Ho Chi Minh City this July. The project is located within the planned VIFC-Ho Chi Minh City (VIFC-HCMC) zone.

UOB remains the only Singaporean bank operating a wholly owned banking subsidiary in Vietnam. With charter capital of VND10 trillion ($379.76 million), UOB Vietnam is the country's second-largest foreign-owned bank. Its acquisition and integration of Citi Vietnam's retail banking business, completed in July 2025, significantly expanded its customer base, strengthened its market presence, and enhanced its competitiveness.

The bank's foreign direct investment (FDI) advisory team has supported more than 400 companies investing in Vietnam, helping facilitate projects worth around SGD9 billion ($7.04 billion) and contributing to the creation of over 60,000 jobs.

UOB Deputy Chairman and CEO Wee Ee Cheong described Vietnam as a cornerstone of the bank's ASEAN strategy, highlighting the country as one of Southeast Asia's fastest-growing and most resilient economies. He said Vietnam's ongoing economic transformation and increasing integration into regional supply chains are generating new opportunities for investors and businesses.

Vice Chairman of the VIFC-HCMC Executive Board Nguyen Huu Huan said at a recent forum that more than ten international banks and financial institutions have expressed interest in joining the VIFC-HCMC.

Among them are major global players such as JPMorgan Chase, Bank of America, Bank of China, and Mitsubishi UFJ Financial Group. However, regulatory requirements—particularly those related to credit ratings—have so far prevented them from establishing a presence in the VIFC.

According to Government Decree No. 329/2025/ND-CP, which regulates banking operations, foreign exchange management, anti-money laundering, and counter-terrorism financing within the VIFC, foreign institutions seeking licenses to establish wholly foreign-owned banks or branches in the center must meet strict eligibility criteria.

In addition to demonstrating international operating experience, applicants must hold a minimum credit rating of AA- from SP Global Ratings or Fitch Ratings, or Aa3 from Moody's, with a stable or better outlook at the time of application.

A number of financial experts have called for a review of these requirements, arguing that greater flexibility during the center's formative years could help attract a wider range of international financial institutions and accelerate the VIFC's development as a regional financial hub.

VGP-Van Nguyen

Domestic gold prices plunge to lowest level in 6M

Fri, 05 Jun 2026 01:40:00 GMT

Gold prices in Vietnam hitting their lowest level in the past six months on June 4.

Gold prices in Vietnam fell sharply on June 4, hitting their lowest level in six months amid continued market volatility.

SJC-branded gold bars declined by between VND500,000 ($19) per tael compared to the previous day. Buying prices dropped to VND153.5 million (about $5,836) per tael, while selling prices fell to VND156.5 million (around $5,950) per tael.

A tael is equivalent to 37.5 grams, or roughly 1.2 ounces.

In contrast, global gold prices edged up slightly by more than 0.5% to approximately $4,460.4 per ounce. Despite the uptick in international markets, domestic prices remained significantly higher than global levels, with a gap of about VND13.07 million (roughly $496) per tael.

VnEconomy-Mai Nhi

Vietnam disburses $8.3bln in public investment in 5M

Thu, 04 Jun 2026 07:10:00 GMT

The disbursed amount equal to 21.6% of the annual plan assigned by the Prime Minister.

Vietnam disbursed more than VND219.3 trillion ($8.3 billion) in public investment capital during the first five months of 2026, equivalent to 21.6% of the annual plan assigned by the Prime Minister, according to the Ministry of Finance.

Disbursement from the central budget reached VND70.64 trillion, fulfilling 19.4% of the yearly target, while local-budget disbursement totaled approximately VND148.72 trillion, representing 22.9% of the planned allocation.

Although the disbursement rate remained largely unchanged from the same period last year, the actual amount disbursed increased by nearly VND34.82 trillion.

The figures come as Vietnam implements a record public investment plan for 2026. The National Assembly approved VND1.08 quadrillion ($41.06 billion) in public investment funding for the year, an increase of about VND175 trillion compared with 2025. Of the approved amount, the Prime Minister has allocated VND1.01 quadrillion to ministries, central agencies and local authorities for implementation.

VnEconomy-Hoàng Sơn

PM urges development of flagship products for IFC

Wed, 03 Jun 2026 23:00:00 GMT

Priority will be given to sectors linked to trade and investment to attract development resources, particularly for large-scale infrastructure projects in these regions.

Prime Minister Le Minh Hung chaired a meeting on June 2 regarding the continued deployment of Vietnam's International Financial Center (IFC).

The meeting focused on accelerating specific steps to bring the center into operation as soon as possible.

According to the general orientation, the IFC must be built on a transparent, stable, and competitive legal framework to attract foreign investors. This is seen as a vital channel for mobilizing medium- and long-term capital to serve the country's sustainable economic development goals.

A key task emphasized during the meeting was the development of a comprehensive system of financial products and services, which is considered the foundation for the center’s operational efficiency. With Ho Chi Minh City and Da Nang serving as two vital growth poles, financial products must be closely aligned with trade and investment needs to effectively mobilize resources for key national projects.

The Prime Minister assigned the Ministry of Finance to coordinate with relevant agencies and the two cities to develop a portfolio of flagship products. Priority will be given to sectors linked to trade and investment to attract development resources, particularly for large-scale infrastructure projects in these regions.

In addition to existing regulations, PM Hung requested further research and the introduction of new mechanisms within June to create a breakthrough for the early formation of core financial products. He also stressed the need to establish appropriate inspection and supervision mechanisms to ensure safe and transparent operations.

As the IFC begins to take shape in the next phase, the Government leader noted that establishing a long-term development strategy is an urgent priority. Relevant agencies have been tasked with researching and proposing policy improvements to create favorable conditions for the center’s growth and its deep integration into the global financial system.

Vneconomy-Hoàng Sơn

Science and technology in need of more financial sources

Wed, 03 Jun 2026 10:00:00 GMT

Identified as key drivers of economic growth, ensuring funding for science, technology, innovation and digital transformation has become imperative in the new era.

Science and technology, innovation, and digital transformation have become key drivers of economic growth in Vietnam over recent years, reinforced through major Party and State policies. These three pillars have not only improved productivity and growth quality but also accelerated the shift toward a more modern and sustainable development model.

To achieve annual double-digit economic growth during the 2026-2030 period, Politburo Resolution No. 57-NQ/TW, issued on December 22, 2024, identified science and technology, innovation, and national digital transformation as the main engines of socio-economic development. The Resolution marks a strategic shift from a growth model dependent on capital and low-cost labor to one driven by productivity, technological advancement, and innovation. This transition hinges on addressing three major challenges: financing, human resources, and institutional reform.

Meanwhile, Politburo Resolution No. 68-NQ/TW, issued on May 4, 2025, positions the private sector as a leading force in advancing science and technology, innovation, and digital transformation. Yet financial constraints remain a key barrier. Small and medium-sized enterprises (SMEs) account for 97 per cent of private businesses in Vietnam, but many face limited financial capacity and poor competitiveness.

In response, the Vietnamese Government has introduced financial policies to support science and technology, innovation, and digital transformation as part of its growth agenda. Funding can be mobilized through three main sources: the State budget, domestic and foreign businesses, and other organizations.

Current state of financial resource mobilization

RD investment

Over recent years, funding for RD in Vietnam has remained relatively limited in scale, though it has shown signs of improvement. According to reports from various organizations and the Ministry of Science and Technology, Vietnam’s RD expenditure stands at just over 0.4 per cent of GDP, or only one-quarter of the 2 per cent target stipulated under the Law on the State Budget.

By comparison, global RD spending stood at 2.62 per cent of GDP in 2021, or more than five-times the level in Vietnam (World Bank, 2021). Relative to regional peers such as Singapore, Thailand, and Malaysia, Vietnam’s RD spending remains low, ranging from one-quarter to one-half of those countries’ levels.

By economic sector, the State sector continues to account for the largest share of RD spending, though its proportion has gradually declined, to 48.94 per cent in 2023. The non-State sector has expanded rapidly and now plays an increasingly important role, accounting for 40.99 per cent in 2023. However, funding mobilized from foreign sources remains modest and has gradually declined as a share of total RD investment over the years.

By funding source, the business sector represents the largest contributor to RD investment, accounting for around 58 per cent of the country’s total RD spending in 2023. However, relative to GDP, business expenditure on RD in Vietnam stood at only 0.2 per cent. Meanwhile, RD expenditure by higher education institutions remains disproportionately low relative to their role in science, technology, innovation, and digital transformation, particularly as much of university research funding still originates from the State budget.

Businesses remain the largest investors in RD, with spending concentrated primarily among domestic private enterprises, followed by State-owned enterprises (SOEs). RD investment by foreign-invested enterprises, however, remains limited.

In terms of funding sources, most RD activities undertaken by businesses are financed internally, with enterprise funding reaching VND24.6 trillion ($946 million), equivalent to 74 per cent of total business RD expenditure.

Financial support uptake

The government has introduced a range of financial support policies for businesses, including incentives for technological innovation, credit support programs, technical consulting, and project implementation assistance. However, according to the National Agency for Science and Technology Information’s enterprise innovation survey, the proportion of businesses receiving support remains modest, primarily through technology innovation programs (23.3 per cent of surveyed firms) and credit support policies (24.1 per cent).

By business size, small enterprises have received more support across all categories than larger firms, while medium-sized enterprises have received comparatively less attention. This suggests that government support policies have, at least initially, focused on smaller businesses.

Significant support for SMEs has come from the SME Development Fund, established in 2019 under Decree No. 39/2019/ND-CP, dated May 10, 2019. The fund provides preferential loans to innovative startups, firms participating in industrial clusters, and businesses integrated into value chains. However, disbursement levels and the value of indirectly-approved loans through commercial banks have steadily declined. Both the number of supported projects and the value of financial assistance fell between 2019 and 2023.

Assessment and policy implications

Progress made and remaining constraints

Vietnam has adopted a policy requiring a minimum of 2 per cent of State budget expenditure, recently increased to 3 per cent, for science and technology research, including both infrastructure investment and recurrent research spending. However, implementation has remained challenging in practice.

Financial policies supporting enterprise RD and science and technology activities have delivered some initial results. A proportion of businesses have accessed government support, including funding for technological innovation, credit programs, technical assistance, and project-based support. These policies have also encouraged firms to allocate resources to RD, making the business sector the largest contributor to national RD spending.

Vietnam has introduced several strategic initiatives aimed at reforming the mobilization and use of resources for RD and innovation, particularly following Politburo Resolution No. 57. However, more concrete implementation policies are needed to translate these strategic priorities into practice.

Despite progress, significant limitations remain in policies designed to mobilize resources for science, technology, and innovation in Vietnam. Total RD expenditure remains low at around 0.5 per cent of GDP, far below levels seen in South Korea, China, Malaysia, and Thailand. Both the scale of RD investment and the balance between public and private funding remain weaker than in many middle-income economies in the region.

The analysis also shows that financing for science, technology, and innovation activities in Vietnam continues to depend heavily on State budget support. Though regulations require at least 2 per cent of total State budget spending to be allocated to RD, this threshold has never been fully met in practice.

Ministry of Finance data (2025) shows that the highest allocation was in 2024, reaching only 1.97 per cent. Limited funding spread across numerous projects has resulted in relatively small average grant sizes. In addition, much public spending on science and technology is channeled through ministries and agencies, generating considerable administrative costs and procedural burdens, despite recent improvements.

Public investment in RD infrastructure also remains limited, with capital expenditure accounting for less than 50 per cent of total public RD spending. As a result, infrastructure for prototyping and scaling new technologies remains underdeveloped, leaving many innovation initiatives stalled at the laboratory stage. This limits researchers’ access to complete innovation cycles, hinders commercialization efforts, and reduces Vietnam’s attractiveness to high-tech projects, which require supporting ecosystems including suppliers, laboratories, and testing facilities (World Bank, 2025). Weak public research infrastructure also limits businesses’ ability to rely on public-sector experimental support for innovation.

Low levels of RD investment from both the public and private sectors have further constrained the development of training and research infrastructure, particularly in high-tech industries. In practice, Vietnam’s private sector has yet to become a major driver of innovation, as many firms continue to rely on imported technologies or incremental improvements rather than original RD outcomes.

Businesses, particularly SMEs, continue to face major barriers in accessing State-backed financial support funds. Loan application procedures remain complex and costly, while interest rates and repayment terms are often viewed as unattractive. Businesses also have limited awareness of State support policies for RD, science and technology, and innovation. At the same time, opportunities for firms to participate in public science and technology projects and programs remain limited.

Tax incentives for innovation have had only modest effects. While businesses do invest in innovation and RD, many fail to formally record these expenditures in ways that qualify for tax incentives. Broader challenges also remain, including governance mechanisms for RD activities and research workforce capacity. Other resource mobilization policies have only recently been introduced and still lack clear implementation guidelines.

Policy recommendations

To strengthen a growth model driven by science and technology, innovation, and digital transformation in Vietnam, stronger policy reforms are needed to mobilize financial resources. Several policy priorities are proposed.

First, establish co-financing mechanisms for business RD, under which the State would fund 30-70 per cent of project costs, with enterprises contributing the remainder. This would help share risks and improve SMEs’ ability to test new technologies.

Second, pilot government procurement or purchasing mechanisms for innovative products developed by businesses, creating market demand for startups. Tax incentives for RD should also be expanded in line with policies that accept higher investment risks in science, technology, innovation, and digital transformation.

Third, simplify and streamline disbursement procedures for SME support funds, while introducing low preferential interest rates of around 2-3 per cent, drawing on the experiences of South Korea and China, and extending loan tenors. The governance of support funds should also shift toward market-based principles.

Fourth, strengthen awareness campaigns and guidance for businesses on tax and financial incentives related to RD, science and technology, and innovation, while simplifying access procedures.

Fifth, introduce stronger support mechanisms to help businesses integrate into global and domestic value chains, enabling access to advanced technologies and resources for RD and innovation. Support should also be expanded for intellectual property registration and the transition to science and technology enterprises, making firms eligible for government financial assistance.

Sixth, reform public sector financial management for science and technology activities by simplifying State budget procedures and placing greater emphasis on accountability for final outcomes, while reducing administrative intervention.

Seventh, strengthen public-private partnership mechanisms in RD and innovation. However, careful attention must be paid to technology selection, as international experience shows that poor choices can lead to wasted resources and missed opportunities.

Eighth, increase State budget investment in technology infrastructure, including both hardware and software systems.

Ninth, invest more heavily in human capital development for RD and innovation.

Tenth, establish stronger mechanisms to promote meaningful public recognition of researchers and research achievements, moving beyond symbolic or purely ceremonial approaches.

(*)Associate Professor Vu Sy Cuong is from the Academy of Finance.

VET-Associate Professor Vu Sy Cuong(*)

Five-month socio-economic performance reviewed

Wed, 03 Jun 2026 08:40:00 GMT

At a Cabinet meeting held on June 3, Prime Minister Le Minh Hung confirmed that favorable conditions for science, technology, innovation and digital transformation will be created to become new drivers of economic growth.

A Cabinet meeting to review the country’s socio-economic performance in the first five months of 2026 and discuss key tasks and solutions for the remainder of the year was held on June 3 morning under the chair of Prime Minister Le Minh Hung.

During the meeting, the Cabinet also reviewed the implementation of the public investment plan, the national target program, and sci-tech, innovation, and digital transformation tasks.

Prime Minister Le Minh Hung tasked ministries and agencies to conduct thorough review of existing shortcomings, obstacles and bottlenecks, particularly in administrative reform and institutional development.

The Prime Minister was quoted by the Government News as saying at the meeting that delays in issuing legal documents, decrees and circulars could slow the institutionalization and implementation of major policies.

He urged ministries and sectors to accelerate the completion of outstanding legal documents and strengthen accountability among officials responsible for legislative and institutional affairs.

Regarding socio-economic development, the Prime Minister confirmed that the country’s macroeconomic stability has been maintained and inflation remains under control over the past five months.

However, he pointed out that growth in several sectors failed to meet expectations, while industrial production, agriculture, trade, services, exports and imports in some areas remain below target.

He requested ministries and agencies to identify the root causes of these shortcomings and propose stronger, more effective policy measures. Based on the meeting's conclusions, the Government will issue a resolution outlining specific tasks and solutions to boost growth in the remaining months of the year.

The Prime Minister also announced that Deputy Prime Ministers will work directly with ministries, localities and sectors to address bottlenecks against production and business activities. Particular focus will be placed on industry, agriculture, exports and key export products showing signs of slowing growth or decline.

Regarding the implementation of Politburo's Resolution No. 57-NQ/TW on science and technology, innovation, and digital transformation, dated December 22, 2024, the Government leader commended the innovative approaches adopted by relevant agencies, particularly the Ministry of Public Security and the Ministry of Science and Technology.

VGP-Van Nguyen

FinTech and Digital Economy Disputes Panel launched to support Vietnam’s International Financial Centre

Sat, 30 May 2026 07:30:00 GMT

An effective dispute resolution system considered a key factor in enhancing the competitiveness of international financial centres.

A new expert council dedicated to FinTech and digital economy disputes was launched in Ho Chi Minh City on May 29, marking a significant step in preparing Vietnam’s legal infrastructure for the operation of Vietnam's International Financial Centre (VIFC).

The Vietnam International Arbitration Centre (VIAC) Panel of Fintech and Digital Economy Dispute Specialists is expected to help VIAC develop specialized dispute resolution frameworks tailored to digital finance, digital assets and other emerging sectors, supporting Vietnam’s ambition to become a regional gateway for international capital flows.

Speaking at the event, Professor Le Hong Hanh, Chairman of VIAC, emphasized that developing the VIFC requires not only modern financial and technological infrastructure but also a transparent legal framework aligned with international standards. He noted that an effective dispute resolution system is a key factor in enhancing the competitiveness of international financial centres.

Mr. Nguyen Khanh Ngoc, President of the Vietnam Lawyers Association, echoed the view, stressing that transparent regulations and efficient dispute settlement mechanisms are essential for strengthening investor confidence and ensuring a sustainable business environment.

The event also witnessed the signing of cooperation agreements between VIAC, the Vietnam Association of Financial Investors, and the Vietnam Blockchain and Digital Assets Association.

VnEconomy-Hồng Vinh

Vietnam and Thailand strengthen cooperation in investment and supply chain linkages

Fri, 29 May 2026 07:20:00 GMT

Vietnam’s Minister of Finance Ngo Van Tuan and Thailand’s Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas agreed to promote not only cooperation but also substantive connectivity between the two economies.

Within the framework of the official state visit to Thailand by General Secretary of the Communist Party of Vietnam Central Committee and President of Vietnam To Lam, Vietnam’s Minister of Finance Ngo Van Tuan on May 28 met with Thailand’s Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas.

During the meeting, the two sides exchanged views on macroeconomic developments, fiscal policy orientation, administrative reforms, public investment, FDI attraction, and bilateral economic cooperation.

Sharing updates on Vietnam’s socio-economic situation, the Vietnamese Finance Minister said Vietnam is accelerating institutional reforms, streamlining its administrative apparatus, and building a more efficient tax system.

Vietnam is also targeting double-digit economic growth in 2026 and the following years, which will require substantial investment resources, the minister said, adding that total social investment is projected to account for around 40 per cent of GDP, while public investment is expected to make up approximately 20–22 per cent of total investment.

The minister noted that Vietnam’s economic scale is now approaching that of Thailand. As both countries are highly open economies attracting strong FDI inflows, energy security plays a critical role in sustaining economic growth.

According to the minister, the two countries have maintained strong and dynamic trade-investment ties. Bilateral trade turnover reached approximately $22.1 billion in 2025.

He noted that while the two countries compete in certain sectors, they also have significant potential for cooperation in agricultural exports, particularly durian and rice. He proposed that the two sides strengthen coordination to better tap export markets.

Regarding investment attraction, the minister said Vietnam is prioritizing the power sector and manufacturing and processing industry, while highly appreciating the presence of many major Thai enterprises in Vietnam.

Thailand currently remains one of Vietnam’s leading foreign investors, with 804 valid projects and total registered FDI exceeding $15.4 billion.

Thailand’s Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas, for his part, shared Thailand’s experience in evaluating public investment projects. According to him, Thailand uses the Economic Internal Rate of Return (EIRR) as a key indicator to assess project effectiveness, rather than relying solely on financial returns or interest rates.

The Thai side also shared its experience in reforming tax incentives to adapt to the global minimum tax (GMT) through the qualified tax credits mechanism, which is currently being incorporated into the country’s legal framework.

In the industrial sector, the Thai Deputy Prime Minister noted that many Japanese and Chinese corporations have established home appliance manufacturing facilities in his country under brands such as Toshiba and Midea. At the same time, Thai enterprises are also supplying components and spare parts for Vietnam’s VinFast.

Thailand’s Deputy Prime Minister and Finance Minister also praised Vietnam’s success in attracting Samsung’s investment in the semiconductor sector and stressed that ASEAN should strengthen supply chain linkages to enhance its position in global value chains.

Concluding the talks, both sides agreed to promote not only cooperation but also substantive connectivity between the two economies in the coming years.

Vneconomy-Phuong Nhi

Vietnam Consumer Finance Brand Health Ranking 2025 unveiled

Fri, 29 May 2026 00:30:00 GMT

Home Credit successfully secured the leading position in the industry with 30.2 points. The remaining names in the Top 5 leading brands were HD SAISON with 24.4 points, FE Credit with 23.8 points, F88 with 23.5 points, and Viettel Money with 23.4 points.

The "Vietnam Consumer Finance Brand Health Rankings 2025" was officially released for the first time by Mibrand Vietnam Joint Stock Company on May 27.

The report was based on a quantitative survey of over 300 randomly selected customers in Hanoi and Ho Chi Minh City conducted in December 2025.

Through the proprietary Brand Beat Score index, the report provides a comprehensive and empirical overview of the market standing of various enterprises. This is considered an important database to help consumer finance brands clearly understand customer expectations and experiences, allowing them to leverage strengths and improve weaknesses to strengthen sustainable relationships with consumers and drive business growth in the new landscape.

According to the 2025 Vietnam Consumer Finance Brand Health Rankings, Home Credit successfully secured the leading position in the industry with 30.2 points. The remaining names in the Top 5 leading brands were HD SAISON with 24.4 points, FE Credit with 23.8 points, F88 with 23.5 points, and Viettel Money with 23.4 points.

Mibrand’s measurement scale indicates that the leading brands currently only reach a Grade B, or "Good" level. The market remains in a state of open competition, and no single brand has yet established a dominant position with a significant lead. The point gap between the top-tier units remains very small, suggesting unpredictable shifts in rankings in the future.

The report also indicates that Vietnam’s consumer finance industry is entering a more professional phase of competition. The race for market share no longer revolves solely around disbursement speed or media coverage but has shifted deeply toward factors such as trust, transparency, app experience, and actual service quality.

When asked about the drivers for choosing products in the future, customers focused strongly on three core factors: simplified procedures (63%), transparency in interest rates and fees (60%), and speed of disbursement (51%).

Vneconomy-Song Hà

Outstanding credit in HCM City and Dong Nai reach $237bln in 4M

Wed, 27 May 2026 23:30:00 GMT

The two key economic hubs accounting for 31.1% of Vietnam’s total outstanding credit.

Combined outstanding credit in Ho Chi Minh City and its neighboring Dong Nai city reached over VND6 trillion (approximately $237 billion) by the end of April 2026, up 3.84% compared to the end of 2025, according to the State Bank of Vietnam’s Regional Branch No.2.

Although the growth rate was slightly below the national average of 4.42%, the two key economic hubs accounted for 31.1% of Vietnam’s total outstanding credit, underscoring their central role in the country’s financial system.

Vietnamese dong (VND) -denominated loans in the two cities continued to dominate lending activity, totaling VND5.7 trillion, or 94.6% of total outstanding credit, marking a 2.92% increase from the end of last year.

Credit allocation during the first four months of 2026 reflected a positive trend, with capital flowing primarily into major service sectors and key productive industries.

The manufacturing and processing sector led growth with a 5.8% increase in credit, followed by agriculture, forestry, and fisheries, which rose 5.4%. Lending to the wholesale and retail trade, including vehicle repair services, expanded by 4.4%.

Meanwhile, credit to the construction sector grew 3.3%, while transportation and warehousing recorded a 3.1% increase. Household-sector lending, covering both production and consumption purposes, rose 2.7%, highlighting continued support for domestic economic activity.

VnEconomy-Minh Huy

Potential of Vietnam’s Fintech sector

Wed, 27 May 2026 09:30:00 GMT

A broad platform has been created for the meaningful development of Vietnam’s fintech sector and its potential role in the region and the world.

The fintech sector has grown rapidly and become a key pillar of the global financial system, encompassing services such as electronic payments, online lending, digital banking, and a wide range of technology-driven financial products.

In Vietnam, the rapid expansion of information technology, coupled with rising smartphone and internet penetration, has created a strong foundation for the sector’s development. Recent moves indicate that Vietnam is gradually positioning itself as an attractive destination on the global fintech map, not only in terms of market potential but also in its ability to connect with international financial institutions and technology partners.

Attracting international attention

In mid-April, the Vietnam International Financial Center in Ho Chi Minh City (VIFC), in collaboration with the London Stock Exchange and HD Bank, officially launched a Fintech Hub in the southern city. The Hub is expected to serve as a testing ground for new financial models under a regulatory sandbox framework, while also acting as a platform to connect banks, investors, and businesses. This milestone therefore represents not only a technical advancement but also a significant step forward in building Ho Chi Minh City’s financial-technology ecosystem, moving toward a development model driven by data, technology, and innovation.

Another notable development was the strategic partnership between the Saigon-Hanoi Commercial Joint Stock Bank (SHB) and China’s Huawei Technologies. The agreement focuses on digital transformation, the development of technology architecture, and the strengthening of system capabilities that are core elements in the banking sector’s digitalization journey.

As competition intensifies and customer expectations continue to rise, such collaborative endeavors between domestic banks and global technology firms are becoming essential, helping to drive meaningful fintech development in Vietnam. Moreover, as the global financial landscape undergoes significant transformation, the ability to effectively connect capital flows, technology, and policy will determine the position of emerging financial centers.

According to research from PS Intelligence, Vietnam’s fintech market in 2025 was valued at $19.8 billion and is projected to grow at a compound annual growth rate (CAGR) of 17.3 per cent during 2026-2032, reaching $60.4 billion by 2032.

The market’s growth trajectory reflects Vietnam’s accelerating digital transformation and the increasing adoption of technology-driven financial services across all segments of the population. The convergence of favorable demographics, rising smartphone penetration, and supportive government policies has positioned Vietnam as one of the most promising fintech markets in Southeast Asia.

This growth is being driven by multiple reinforcing factors: rising smartphone and internet penetration, an expanding digital consumer base, and supportive government policies. At the same time, a large proportion of the population remains unbanked, creating strong demand for digital financial solutions. Meanwhile, e-commerce continues to expand, digital infrastructure is improving, and emerging technologies such as blockchain, AI, and digital payments are gaining traction. Together, these elements are creating a compelling convergence point for global investors and fintech partners.

In this context, expanding international cooperation is not just a strategic choice but a key lever for enhancing the quality of Vietnam’s development. Through such partnerships, Vietnam can access global capital, learn from international best practices, improve transparency, and gradually align with global standards.

A case in point is the UK, which has successfully built one of the world’s leading fintech ecosystems. With London at its core, which is home to a dense network of banks, investment funds, and tech startups, the UK has not only attracted substantial global capital but has also pioneered models such as regulatory sandboxes and open banking. In this context, strengthening cooperation with the UK is seen as a well-aligned and promising direction for Vietnam, offering opportunities to learn from regulatory frameworks, foster innovation ecosystems, and attract high-quality resources to modernize its financial sector.

According to Dame Julia Hoggett, CEO of the London Stock Exchange, Vietnam is emerging as one of Asia’s most dynamic economies, with growing potential to attract global capital. “In particular, progress in upgrading the stock market and improving the investment environment has sent positive signals to international investors, opening up opportunities to attract long-term capital inflows,” she said.

Australia is also emerging as a promising partner in fintech. The country ranks among the world’s leading fintech ecosystems, at sixth globally and second in the Asia-Pacific region, with nearly 900 active fintech companies. Its strong alignment of technology, policy, and innovation makes Australia a suitable partner for Vietnam as it builds a modern and globally-integrated fintech ecosystem.

Ms. Emma McDonald, Senior Trade and Investment Commissioner of the Australian Government to Vietnam and Cambodia, underlined that bilateral programs in fintech and compliance are aimed at fostering direct engagement between businesses in both countries. “We believe these initiatives will create more commercial partnerships between Australia and Vietnam, contributing to the development of a robust, trustworthy, and globally-connected financial ecosystem, one that blends Vietnam’s unique characteristics with Australia’s technological solutions,” she emphasized.

Readiness for collaboration

As financial digitalization accelerates worldwide, proactively preparing for international fintech cooperation is no longer optional but has become a necessity for Vietnam. To achieve this, the country needs to fully leverage its existing advantages while pursuing a well-structured, clearly defined, and consistent fintech development strategy. This involves not only fostering domestic innovation, but also building an attractive environment capable of drawing in global partners, from major technology corporations to international investors and fintech startups.

We believe these initiatives will create more commercial partnerships between Australia and Vietnam, contributing to the development of a robust, trustworthy, and globally-connected financial ecosystem, one that blends Vietnam’s unique characteristics with Australia’s technological solutions.

Ms. Emma McDonald, Senior Trade and Investment Commissioner of the Australian Government to Vietnam and Cambodia

By combining domestic market potential with international expertise, Vietnam can shape a sustainable, transparent, and competitive fintech ecosystem. Ms. McDonald noted that fundamental strengths such as a young population, a stable socio-economic environment, and strong GDP growth continue to reinforce Vietnam’s position as a potential digital hub in the region.

Notably, recent government initiatives, including plans to develop international financial centers and implement regulatory sandboxes in areas such as credit scoring, peer-to-peer lending, and digital assets, are laying critical institutional foundations. These are the “building blocks” that will enable Vietnam not only to keep pace but also to participate more deeply in the global fintech value chain.

“The development of the VIFC clearly reflects the country’s ambition to become a globally-connected financial hub,” Ms. McDonald said. “However, the core of a financial center lies not only in capital or infrastructure but in the ability to build a trusted, data-driven, and inclusive financial ecosystem.”

At the same time, readiness in terms of legal framework, technological infrastructure, and governance capacity will be crucial in building confidence among international partners. A transparent and flexible legal system, while maintaining safety and stability, will enable fintech firms to innovate and scale with confidence. Meanwhile, digital infrastructure, including data systems, payment connectivity, and cybersecurity, must be developed in a synchronized manner to meet global standards.

According to Mr. Rich McClellan, CEO of the VIFC, international investors are shifting their focus. Whereas rapid economic growth was once the primary draw, they are now placing greater emphasis on infrastructure readiness, the reliability of the legal framework, and the ability to ensure smooth and secure capital flows.

This shift implies that Vietnam must move from “potential advantages” to “real, tangible strengths” by enhancing institutional quality and market operations. Once these elements are in place, Vietnam will not only become an attractive destination for capital and technology but also be in a position to help shape fintech standards in the region.

VET- Phuong Nhi

Structural leap for SME access to credit

Wed, 27 May 2026 03:00:00 GMT

Experts and industry leaders tell Vietnam Economic Times / VnEconomy how data-driven banking and digital platforms can improve SMEs’ access to finance and accelerate Vietnam’s shift toward a more connected, resilient digital economy.

Professor Hoang Van Cuong, Vice President, Vietnam Economic Association

Small and medium-sized enterprises (SMEs) have limited financial resources, so they rely heavily on labor to sustain operations. This explains why they tend to remain small, struggle to scale, and find it difficult to grow into large enterprises. External support is also limited and insufficient to drive growth, leaving many enterprises fragmented over long periods.

Regarding SME access to credit, five key constraints can be identified. The first is collateral requirements, which are almost mandatory in traditional lending. SMEs typically lack high-value assets, often renting premises and using low-value equipment, putting them at a disadvantage compared to larger firms.

The second is limited transparency. Large enterprises usually have well-established accounting systems, audited financial statements, and strong credibility with banks. In contrast, many SMEs lack structured governance, and some even lack proper accounting functions. Incomplete financial data and limited track records make it difficult for banks to assess performance and risk.

The third is difficulty in proving cash flow. In the absence of collateral, banks may lend based on cash flow, but SMEs often lack clear input-output contracts and stable revenue streams, making any credit assessment challenging.

The fourth is higher risk. Due to limited management capacity, many SMEs operate with one person handling multiple roles, without professional risk control systems. This increases perceived risk and makes lenders more cautious.

The fifth is cost efficiency for banks. The process of appraisal, monitoring, and debt recovery for small loans is nearly the same as for large loans, while returns are significantly lower. This reduces banks’ appetite for SME lending under traditional models.

It is also important to note that banks must ensure the safety of the financial system. Lending capital largely comes from public deposits, so capital preservation is critical. International standards such as Basel require strict risk controls, making it difficult to relax credit conditions. These “one-size-fits-all” criteria - collateral, transparency, and risk management - unintentionally favor large enterprises and disadvantage SMEs.

Improving access to finance requires adjustments on both sides. Banks need more flexible lending approaches tailored to SMEs, while these businesses must enhance governance, improve transparency, and standardize operations.

In the long term, a shift from collateral-based lending to data- and cash flow-based lending is inevitable. With fintech support, banks can leverage diverse data sources, such as transactions, taxes, and supply chains, to assess businesses more comprehensively. This allows more flexible financing, even at the level of individual transactions, rather than large, complex loans. However, SMEs must also accelerate digital transformation to ensure data transparency and connectivity.

Credit guarantee funds are another important tool. They act as intermediaries to reduce risk for banks and enable firms without collateral to access funding. In principle, these funds commit to repayment in case of default, strengthening lender confidence.

However, their effectiveness remains below expectations. Limited capital restricts their ability to provide guarantees, and their administrative, non-market-oriented operations reduce flexibility and responsiveness.

Therefore, financial capacity must be strengthened, operational mechanisms modernized, and funding sources diversified, mobilizing private capital and applying tools such as re-guarantees and risk-sharing. Only then can guarantee funds become effective leverage for SME financing.

Ultimately, improving SME credit access requires a coordinated approach: reforming lending methods, accelerating digital transformation, strengthening legal frameworks, and enhancing support mechanisms.

* * *

Mr. Truong Cong Loc, CEO of the Data Streams Asia Co.

While the banking sector once focused on computerization, the current priority is comprehensive digitalization. At a higher level, “digital-creating banking” goes beyond digitizing operations to generate new value by connecting with other sectors to form ecosystems. This evolution can be seen in three stages: traditional banking, digital banking, and digital-creating banking.

Vietnam’s banking system is still transitioning toward this model, but progress is uneven. Differences exist in technology platforms, awareness, service capability, and value creation.

The legal and policy framework is still evolving, aiming to establish common standards aligned with market development. Open banking is a key example, requiring institutions to share data with partners and third parties to develop services. In this context, banks have proactively developed their own standards and solutions, highlighting the need for greater coordination and standardization, especially in technology and security.

Assessing which models can truly “create value” in Vietnam remains challenging due to incomplete and inconsistent data. As a result, banks’ transformation capacity depends largely on internal capabilities, particularly technology platforms and implementation capacity.

In reality, many banks still operate on legacy core banking systems deployed years ago, requiring structured upgrade roadmaps. Beyond technology, the complexity of setting priorities and implementation strategies also contributes to slow and uneven transformation.

The “leapfrogging” approach in digital transformation can shorten development timelines but carries risks if key learning stages are skipped, potentially leading to system design gaps and weaker risk control.

While it is widely acknowledged that data is foundational and requires a comprehensive governance strategy, such statements are often too general. South Korea’s MyData model offers a more practical approach, organizing data ecosystems around specific use cases with clearly defined roles and responsibilities from the outset.

In this model, data sharing is based on mandatory licensing, standardized APIs (Application Programming Interfaces), and explicit user consent. Roles, such as data subjects, providers, MyData operators, processors, and third parties, are clearly defined and may vary depending on use cases. Data Protection Impact Assessments (DPIAs) and Data Processing Agreements (DPAs) are applied to each data flow to manage risks and clarify accountability. This approach shows that data governance is no longer a broad strategic concept but an operational capability tied directly to products, partners, and specific use cases.

* * *

Dr. To Hoai Nam, Standing Vice Chairman and General Secretary of the Vietnam Association of Small and Medium Enterprises

The main bottlenecks in small and medium-sized enterprises (SMEs)’ access to credit lie in three areas. First, collateral: SMEs, especially in manufacturing, have assets but these are often in the form of leased facilities, machinery, inventory, orders, or cash flows. While economically-valuable, they do not meet banks’ traditional preference for tangible, legally-clear collateral. The issue is not a lack of assets, but how they are recognized and valued.

Second, financial transparency. Many SMEs, often family-run, maintain accounting systems primarily for tax purposes rather than for governance or lending requirements. This creates a gap between bank data standards and what SMEs can realistically provide, complicating credit appraisal.

Third, risk assessment. SMEs are highly flexible, with fast capital turnover, but credit evaluations still rely heavily on static financial statements and historical data. This can underestimate their operational efficiency and business viability.

Overall, while credit standards are sound in principle, they are not fully suited to SME realities, helping explain persistent financing constraints. In addition, risk perception plays a role. Despite similar processing costs to large corporate loans, banks remain more cautious toward SMEs due to perceived higher risk, even though data does not necessarily show higher non-performing loan rates.

While SMEs are often seen as slow to adapt, both banks and businesses need to change - though banks, with greater resources and technological capacity, are better placed to lead and should take a more proactive role.

At the same time, SMEs must improve governance, transparency, and financial standards. While many are making progress, transformation remains costly and slow, particularly for small, family-run firms with limited systems and resources.

As a result, SME reform cannot rely on individual effort alone. A coordinated support ecosystem, spanning digital tools, data infrastructure, and compliance support, is essential to enable meaningful and sustainable change.

SME support funds have fallen short of expectations due to limited resources, weak coordination with banks, complex procedures, and low trust among stakeholders. As a result, the main bottleneck is not funding, but the lack of an effective operating mechanism, highlighting the need for meaningful reform.

Improving SME access to finance requires shifting from collateral-based lending to cash flow and data-driven assessment, alongside legal reforms to better align with SME realities. A coordinated support ecosystem, centered on shared data, and more effective credit guarantee mechanisms are also essential. Equally important is a shift toward data-based risk evaluation, which can better reflect SMEs’ strengths and unlock both greater access to capital and new growth opportunities for the banking system.

* * *

Associate Professor Dang Ngoc Duc, Director of the Institute of Financial Technology, Dai Nam University

In recent years, digital technology’s advances have driven transformation in the banking sector. In this context, “digital-creating banking” represents a more advanced stage than digital banking. While digital banking focuses on digitizing products and optimizing customer experience, this model expands into a more comprehensive role.

Banks not only provide services but actively support business development by building digital ecosystems, leveraging data, and offering decision-making tools.

With big data systems and integrated technology platforms, banks can help businesses access market insights, customers, partners, and investment opportunities more effectively, enhancing service quality, reducing risk, and promoting growth.

Structurally, this model rests on three key platforms. First, the banking platform acts as a central hub connecting services and data, enabling businesses to access a full suite of tools beyond credit and payments, including market and customer intelligence. Second, open banking combined with APIs (Application Programming Interfaces) allows data sharing between banks, businesses, and fintech firms. Third, integrated applications (super apps) and embedded finance enable financial services to be seamlessly integrated into business platforms, improving user experience and reducing costs.

However, implementing this model in Vietnam faces several challenges. Technologically, it requires advanced infrastructure and strict standards for data security and safety, which are not yet consistently applied.

Human capital is another barrier. Banks need personnel who understand both technology and finance and can act as advisors to businesses, requiring a shift in mindset and organizational culture.

The legal framework also lags behind. Issues such as data sharing, privacy protection, and the boundary between “support” and “intervention” remain unclear, slowing cooperation and creating legal risks.

For businesses, this model offers tangible benefits. Access to finance improves through data-based assessment rather than reliance on collateral. Continuous, multi-dimensional data enables more accurate evaluations.

Businesses also benefit from data ecosystems and networks, helping them find partners, expand collaboration, and improve efficiency. Banks can support cash flow management, optimize investment portfolios, and guide long-term strategies.

However, participation requires certain conditions. Many small and medium-sized enterprises (SMEs) lack the resources, governance capacity, and technological readiness needed. Since the model depends on data and system connectivity, enterprises must have digital infrastructure, digitized data, and the ability to share information.

Applying all these standards at once may create barriers. A more flexible approach, starting with pilot groups and scaling gradually, is needed.

As Vietnam advances digital transformation, developing a policy framework for this model is essential. This includes controlled sandbox mechanisms, digital talent development, infrastructure investment, and common standards for connectivity.

The State should play a facilitating role by building shared infrastructure and enabling businesses, especially micro and small enterprises, to integrate into digital ecosystems.

* * *

Mr. Tran Quoc Chinh, Vice President of the CMC Corporation, CEO of CMC Cyber Security

In practice, the concepts of “digital banking” and “digital-creating banking” are not just different terms, they reflect two fundamentally different stages of banking system development. Digital banking, in its common understanding, involves applying technology to digitize traditional products, services, and operational processes. In this model, banks primarily act as financial service providers, offering credit, payments, and digital utilities to individuals and businesses.

By contrast, digital-creating banking represents a structural leap forward. Banks move beyond service provision to deeply leveraging data and technology to build open platforms. On these platforms, businesses, partners, and fintech firms can connect, interact, and participate in a shared ecosystem. Banks thus become an integral part of the value chain, directly contributing to value creation for businesses rather than merely supporting from the outside. Vietnam is currently at the transition point from digital banking to digital-creating banking.

Some financial institutions have begun developing “platform banking” models, integrating banking systems with enterprise management systems such as ERP (Enterprise Resource Planning) via APIs (Application Programming Interfaces). However, the distinction between the two models lies not in technology but in the extent of the bank’s involvement in core business activities, especially in providing data and supporting decision-making. Deeper involvement can generate significant value, but also introduces risks, particularly as the boundary between “support” and “intervention” becomes blurred.

To manage these risks, several foundational principles must be established. First, data ownership must remain with the enterprise. Banks can provide infrastructure, tools, and analytics but should not replace decision-making. Second, transparency in data use must be ensured, including scope of sharing, purpose, and accountability in case of incidents. Third, security must be a prerequisite, as even a minor vulnerability in a connected ecosystem can lead to widespread risks.

From a technology enterprise perspective, the biggest challenge today is not technology itself, but trust. Both banks and businesses remain cautious about sharing data due to concerns over security and legal liability, limiting the depth of integration and data utilization. Technical standardization, especially for APIs, is another significant bottleneck. The lack of common standards means each bank develops its own system, forcing businesses to invest heavily in separate integrations, which is particularly burdensome for small and medium-sized enterprises (SMEs).

In addition, the cybersecurity capacity of many organizations has not kept pace with ecosystem expansion, leading to caution or even delays in adopting new models. Businesses must also strengthen their own data governance, cybersecurity capabilities, and compliance with information security standards. This is essential to building mutual trust; the core of any data-driven collaboration model.

From a legal standpoint, completing the regulatory framework is urgent. Clear rules on data sharing, ownership, and responsibilities must be established to build trust within the ecosystem.

At the same time, common standards for Open APIs are needed to ensure consistency and scalability, with coordination led by regulators rather than fragmented development by individual institutions. Third-party risk management must also be strengthened through monitoring and security assessment mechanisms.

Finally, cybersecurity and data protection must be central. Organizations should implement real-time monitoring systems to detect and respond to incidents promptly, and adopt a “security by design” approach. Retrofitting security after deployment is both inefficient and costly, and introduces significant restructuring risks.

* * *

Mr. Le Hai Doan, Director, 3T Accounting Software

Stricter tax authority management of input and output invoices, along with the rollout of e-invoicing and tighter control over invoice trading, has significantly improved transparency among small and medium-sized enterprises (SMEs).

Previously, the existence of multiple accounting systems reduced financial reliability, while oversight focused mainly on output invoices, making it difficult to detect discrepancies in inputs.

With improved transparency, banks’ appraisal costs have declined, creating conditions to expand credit to SMEs. In this context, fintech platforms act as intermediaries, providing data infrastructure that helps businesses declare, account, and comply more effectively, while optimizing operating costs. For banks, this provides structured data, improving credit assessment, shortening appraisal processes, and creating room to lower lending rates.

Through accounting software, all documents, legal records, and contracts are digitized and centrally stored. Businesses retain full control over data sharing, and can provide complete datasets or selective access based on bank requirements. However, selective sharing may increase time costs due to the volume of documents.

At the platform level, the system acts as a digital data repository, enabling storage and connectivity of all financial and accounting information. With business consent, data can be automatically shared with relevant parties, reducing manual processes. Thanks to connectivity and standardization, banks can easily access data and even move toward automated appraisal processes, including AI applications.

For example, with inventory data, the system can instantly identify origin, invoices, and payment status, enhancing reliability when used as a basis for credit decisions. For businesses, digitizing documents combined with outsourced accounting services simplifies operations, allowing them to focus resources on core business activities.

VET-

Risky business for SMEs

Tue, 26 May 2026 10:00:00 GMT

The attitude among banks toward SMEs seeking financing may eventually be addressed by digital transformation and better-quality data.

Politburo Resolution No. 68-NQ/TW underscores the pivotal role of Vietnam’s private sector, with small and medium-sized enterprises (SMEs) as its backbone. Yet amid ongoing economic volatility, SMEs’ financial health remains highly vulnerable, and business risks are rising. An uncertain business environment risks reinforcing longstanding barriers that have persisted for decades and constrained SMEs’ access to capital.

A 2025 report on SMEs’ credit outlook from FiinGroup showed that these enterprises account for roughly 95 per cent of the total in Vietnam, yet contribute less than 20 per cent of revenue and under 10 per cent of total import-export turnover. One of the core factors is limited access to financing. Only 9.3 per cent of SMEs can obtain bank loans, compared with 56.1 per cent of large enterprises. This significant gap highlights a clear “financing gap,” constraining SMEs’ ability to sustain operations and scale up.

“Blind spot” in risk assessment

In a market economy, banks operate as highly-leveraged institutions, with most assets funded by deposits from individuals and businesses rather than equity. As such, risk control in lending is not optional, it is mandatory. This dynamic has created a longstanding dilemma: SMEs lack capital and struggle to access credit, while banks tend to restrict lending to them or charge higher interest rates.

The FiinGroup analysis indicates that around 60 per cent of large enterprises fall into low credit-risk categories, whereas more than 70 per cent of SMEs are classified as medium to high-risk. In other words, the smaller the business, the higher the probability of financial distress, including default risk. This helps explain banks’ more cautious stance toward SME lending.

Importantly, this is not unique to Vietnam. Globally, the SME financing gap remains substantial. According to the “Boosting SME Finance for Growth” report from the World Bank in 2024, the financing gap for micro, small, and medium-sized enterprises (MSMEs) in developing economies is estimated at about 19 per cent of GDP, or roughly $5.7 trillion. Analysts attribute this gap primarily to two factors: information asymmetry and high transaction costs.

Information asymmetry arises when borrowers have better knowledge of their business conditions than lenders. In Vietnam, this gap is particularly pronounced among SMEs, where financial statements are often unstandardized, unaudited, and in some cases involve dual accounting systems, as flagged by tax authorities.

As a result, banks struggle to accurately assess cash flows, stability, and risk levels, leading them to adopt safer approaches: rejecting loans, requiring more collateral, or charging higher interest rates to compensate for perceived risks. Transaction costs are also higher for SME lending, partly due to smaller deal sizes.

A representative from a “Big 4” bank in Vietnam explained that processing a VND1 billion ($38,460) SME loan can require nearly the same resources and time as a VND100 billion ($3.85 million) loan to a large enterprise. The lending process, including document collection, financial assessment, cash flow analysis, collateral checks, credit approval, disbursement, monitoring, and risk handling, remains largely identical regardless of loan size. When these costs are spread across smaller loans, they become disproportionately high, making SMEs less attractive in terms of return per underwriting hour or per credit file.

“Maturity trap” of preferential credit

Analysts argue that simply expanding credit by injecting more capital is unlikely to resolve the SME financing gap at its root. The World Bank warned that providing concessional financing to SMEs, under conditions more favorable than the market, could weaken the role of private financial institutions and hinder long-term financial market development.

The core issue is that such policies may distort risk pricing signals. When the cost of capital no longer reflects actual risk levels, both borrowers and lenders may develop misaligned incentives: businesses have less motivation to improve financial transparency, while lenders may rely on government support rather than strengthening risk assessment capabilities. The result is not a corrected market failure, but a prolonged state of inefficiency.

Experts suggest that policy focus should shift from credit expansion to improving the foundational conditions of the financial market. A key priority is developing credit information infrastructure to reduce information asymmetry, the primary barrier in SME lending. Enhancing data collection, sharing, and standardization would enable financial institutions to “price risk more accurately rather than avoid it.”

Within this context, digital banking is emerging as a critical tool to leverage and operationalize data systems. By digitizing processes and applying data-driven credit scoring, banks can significantly reduce appraisal costs, thereby expanding access to SME financing.

Automation, digital documentation, and data-based credit scoring can lower the cost of underwriting and managing small-ticket loans that are otherwise economically inefficient. In theory, this allows banks to shift from a “selective low-risk client” model to broader service coverage at lower cost.

However, many experts caution that digital transformation alone addresses only the surface of the problem without a robust data foundation. The real bottleneck lies in data quality. If input data fail to accurately reflect business realities - lacking completeness, standardization, or timeliness - digitalization may speed up processes without improving credit decisions. This increases model risk and ultimately forces banks back to conservative lending practices.

Therefore, the true value of digital banking lies not in process digitization, but in building and leveraging a data ecosystem that is “accurate, sufficient, clean, and live.” Only then can transaction costs be genuinely reduced and SME credit expanded sustainably.

At the same time, analysts emphasize the need to strengthen the legal framework, particularly regulations on collateral and insolvency mechanisms, to enhance contract enforceability and minimize losses when risks materialize.

Overall, around 65 per cent of SMEs have been in operation for more than five years. However, among those still unable to access financing, as many as 40 per cent fall into this segment, having operated for over five years and carrying medium to low risk. This is considered a pool of potential clients that banks could target.

Therefore, digitalizing SME lending, combined with data and analytics, is key to shortening approval times, improving the accuracy of credit scoring, strengthening early risk detection, and expanding access to financing for this potential customer segment.

Mr. Nguyen Van Nam, Director of the Business Information Division, FiinGroup

VET-Phan Linh

Vietnam's MoF and Japan's JICA strengthen ODA cooperation and new strategic projects

Mon, 25 May 2026 10:30:00 GMT

Deputy Minister of Finance Tran Quoc Phuong noted that his ministry would continue to closely coordinate with JICA to concretize cooperation contents, thereby contributing to Vietnam’s socio-economic development.

Deputy Minister of Finance Tran Quoc Phuong held a meeting with Mr. Hayakawa Yuho, Vice President of the Japan International Cooperation Agency (JICA), in Hanoi on May 25.

At the meeting, Deputy Minister Tran Quoc Phuong noted that cooperation between Vietnam and Japan has developed strongly in recent years, particularly following high-level visits by leaders of the two countries. Japan remains one of Vietnam’s leading economic partners, ranking first in ODA provision and labor cooperation, third in investment, and fourth in trade.

According to the Foreign Investment Agency under Vietnam’s Ministry of Finance, as of the end of April 2026, Japanese investors are operating 5,775 projects in Vietnam with total registered investment capital exceeding $79.29 billion, making Japan the third-largest investor among countries and territories investing in Vietnam.

In particular, the Deputy Minister highlighted that during fiscal year 2025, the two sides signed three loan agreements worth nearly JPY90 billion in total (more than $566.22 million). Vietnam’s MoF highly appreciated JICA’s close and effective coordination, which played an important role in the successful conclusion of these agreements.

Referring to recent high-level cooperation outcomes, the Deputy Minister also said that during Japanese Prime Minister Takaichi Sanae’s visit to Vietnam in May, leaders of the two countries agreed to further deepen and enhance the effectiveness of bilateral cooperation, elevating Vietnam–Japan relations to a new height on the basis of harmonized interests and a shared goal of sustainable development.

On this occasion, the Deputy Minister proposed that JICA continue to work closely with the Ministry of Finance and relevant Vietnamese agencies to further promote effective ODA cooperation between the two countries in line with the interests of both sides.

Mr. Hayakawa Yuho, for his part, highly appreciated Vietnam’s socio-economic development achievements in recent years. According to Mr. Hayakawa Yuho, Vietnam’s development trajectory has demonstrated that JICA’s previous cooperation orientations and support programs were appropriate and effective.

On that basis, JICA expressed its desire to continue accompanying and supporting Vietnam in its new development phase through a more strategic and long-term approach.

The two sides also discussed Japanese loan-funded projects expected to be implemented in the coming period, including cooperation orientations and ideas centered on key pillars such as high-quality human resource training; development of supporting industries and strengthening supply chains; support for the startup ecosystem; as well as infrastructure development in Vietnam.

Deputy Minister Tran Quoc Phuong highly valued JICA’s proposals and cooperation orientations, while affirming that the Ministry of Finance would continue to closely coordinate with JICA to concretize cooperation contents, thereby contributing to Vietnam’s socio-economic development in the coming period

vneconomy-Phuong Nhi

Value in partnerships between international capital flows and domestic private sector

Mon, 25 May 2026 08:30:00 GMT

Mr. Brook Taylor, CEO - Asset Management and Executive Director of VinaCapital and CEO of VinaCapital Fund Management, shares his perspective on Vietnam’s investment environment and the role of funds in connecting international capital with the domestic private sector.

Based on your investment experience in Vietnam, what changes in the business environment have enabled investors to move beyond opportunity-seeking and engage more deeply in developing domestic enterprises?

Vietnam has made clear progress in improving its investment environment, enabling investors to shift from being mere capital providers to long-term strategic partners in value creation. The legal framework has become increasingly transparent, stable, and aligned with international practices, significantly reducing compliance costs and legal risks. This has encouraged investors to make longer-term commitments and participate more actively in corporate governance and strategic direction.

Mr. Brook Taylor, CEO - Asset Management and Executive Director of VinaCapital and CEO of VinaCapital Fund Management

At the same time, the equitization process and State divestment, along with the rapid development of the private sector, have created more room for strategic investors to participate in a substantive way. Investors not only bring capital but also contribute technology, management expertise, and operational capabilities.

Combined with improvements in infrastructure and digital transformation, these factors enable investors to work alongside enterprises in restructuring, improving operational efficiency, and upgrading value chains.

In a volatile global context, Vietnam’s political stability remains a key advantage in shaping an investment environment where value is generated not only from capital but from strategic partnerships between investors and Vietnamese enterprises.

How would you assess Vietnam’s shift from attracting capital to creating value, and what signals point to a move toward quality- and innovation-driven advantages?

Vietnam is steadily moving up the global value chain and is no longer merely a low-cost manufacturing base. Investment flows are increasingly directed toward technology, the digital economy, and green growth. At the same time, multinational corporations are expanding their presence into higher value-added activities, such as establishing RD centers or strategic functions in Vietnam.

The quality of human resources continues to improve, driven by greater investment in education, skills training, and digital transformation. The country’s next phase of development is being shaped by deep reforms and long-term vision. Investment attraction policies are also shifting toward prioritizing project quality, environmental standards, technology transfer, and stronger linkages with domestic enterprises, rather than relying solely on cost advantages or tax incentives.

As Vietnam continues to attract FDI and promote the private sector, how can funds like VinaCapital better link international capital and domestic enterprises to enhance investment spillover?

For more than two decades, VinaCapital has played the role of a bridge between international capital flows and Vietnam’s long-term growth opportunities. Today, we focus on forward-looking sectors aligned with policy priorities, including clean energy, high-quality domestic consumption, digital transformation, and logistics.

Beyond providing capital, we position ourselves as a strategic partner to enterprises, supporting improvements in governance, enhancing financial transparency, developing growth strategies, and connecting businesses with international technology and markets. Environmental, social, and governance (ESG) practices and sustainable development are core pillars of this approach, helping Vietnamese enterprises improve operational quality, meet global investor expectations, and integrate more deeply into regional and global value chains.

As Vietnam approaches 40 years of attracting FDI, what key changes have made its market more supporting of long-term, strategic investment decisions?

Vietnam continues to affirm its position as an attractive destination for long-term investment. Legal reforms, notably Politburo Resolution No. 66-NQ/TW [on innovating law-making and law enforcement in response to Vietnam’s development demands in the new era] and amendments to the Law on Investment are bringing the legal framework closer to international practices and improving predictability for investors.

Clear policy signals on innovation and technology-driven growth, particularly through Politburo Resolution No.57-NQ/TW [on science and technology, innovation, and digital transformation], demonstrate Vietnam’s determination to move up the global value chain.

VET-

Essential role of private captal for Vietnam's development

Sat, 23 May 2026 10:00:00 GMT

Not just mobilizing but also fully utilizing private capital will be essential for Vietnam’s ongoing development.

Vietnam has already achieved remarkable success. Over the last three decades, the country has transformed itself into one of Asia’s, and the world’s, most dynamic economies. But the next stage of development will demand better growth: growth that is more productive, more resilient, and more inclusive. Mobilizing private capital is not just about filling a funding gap. It is about upgrading the way the economy works.

Reasons to mobilize private capital

The first reason to mobilize private capital is the sheer scale of what lies ahead. Vietnam faces an estimated $1.5 trillion funding gap over the coming years to support infrastructure development and industrialization. The government’s own estimates indicate that public finances alone cannot carry this burden. If Vietnam relies primarily on State budgets and bank credit, growth will slow and risks will accumulate. Private capital is therefore not optional, it is essential.

Second, private capital brings discipline. Countries that rely more heavily on private and foreign investment tend to allocate resources more efficiently. Vietnam’s localization rate is approximately one-third, meaning the country still has significant work to do in supporting industrialization and building out supply chains. Vietnam’s labor productivity remains roughly half that of Thailand’s, something the International Monetary Fund (IMF) and multiple economists have indicated should be significantly higher. This challenge can be addressed, in part, by domestic and foreign private sector enterprises, which tend to focus on productivity-enhancing investments and projects.

Mr. Brook Taylor, CEO of VinaCapital.

Third, mobilizing capital can help Vietnam accelerate its economic advantage. I wrote a book, “Vietnam: Asia’s Rising Star”, about how Vietnam is following the East Asian development model that created the original Asian Tigers. Economies such as South Korea, Japan, and Taiwan (China) benefited from strong external support and global integration at the right moment in history. In the decades following World War II, the US supported and encouraged economic development in these countries.

Vietnam is also at such a moment, though the dynamic is somewhat different. Today, FDI diversification is replacing direct external support, while supply chain diversification, geopolitical realignment, and strong global investor interest are creating a historic opportunity. Private capital can help Vietnam move faster than public capital alone allows.

Finally, diversifying funding sources increases economic stability. Economies that are overly dependent on bank lending are more vulnerable to interest rate shocks and inflation risks. A diversified system - combining banks, capital markets, long-term institutional investors, and foreign capital - creates resilience.

Such systems allow governments to preserve fiscal capacity and provide a buffer for future economic interventions when necessary. They also allow for better market optimization, enabling governments to steer funding toward priority areas such as housing.

Even governments in advanced economies like Singapore and the US play an active role in the housing sector, alongside private capital, to ensure citizens are better able to afford homes.

How to mobilize

I would like to focus on three areas where policy execution matters most in attracting capital. All of them relate to creating a stable and predictable investment environment.

Creating the conditions

First and foremost is confidence. Investors are willing to accept risk. What they cannot accept is uncertainty. Stable and predictable policy is the foundation of all long-term investment. This means adopting international regulatory best practices, improving transparency, and maintaining consistent enforcement.

The government clearly recognizes this, as reflected in recent reforms, including Politburo Resolution No. 68 supporting private sector development. Steps such as adopting Basel III standards and maintaining prudent loan-to-deposit ratios also enhance financial stability.

Next is ease of doing business. Vietnam has competed successfully with peers such as China in attracting manufacturing investment. But competition is intensifying. Despite considerable progress, many foreign investors still cite difficulties around licensing, land use, and dispute resolution. Maintaining reform momentum in these areas will be critical.

Finally, macro-economic stability is equally important. Inflation control, financial system soundness, and prudent debt management send powerful signals to investors. Vietnam’s continued alignment with global standards, including Basel III for banking and improved loan-to-deposit ratios, reinforces trust in the system. The government has done an excellent job sustaining growth amid global uncertainty.

In short, capital flows where it feels safe, and stays for decades, not just years.

Deepen and professionalize capital markets

The second pillar is capital market development. Vietnam’s overreliance on bank credit constrains growth and increases systemic risk. Deepening capital markets is essential to reducing that risk and unlocking growth.

One key goal should be achieving, and sustaining, an investment-grade sovereign rating. This would send a powerful signal of stability and reliability to global investors, dramatically lowering the cost of capital and opening access to vast pools of global funding. Many pension funds, insurance companies, and long-term asset managers cannot invest in markets below investment grade.

Equally important is the development of private sector pension funds. These funds do more than provide retirement security for citizens. They institutionalize stock and bond markets, provide long-term funding for corporate bonds, and align economic growth with household wealth creation.

Together, deeper financial markets and pension systems reduce dependence on rapid credit growth and improve financial stability.

The newly-launched International Financial Center (IFC) in Vietnam, of which VinaCapital is a founding member, will also play a key role in attracting foreign capital and lowering the cost of debt. Its rapid development reflects the government’s commitment to reform and urgency.

Together with an investment-grade rating, the IFC can help lower Vietnam’s cost of debt and enable the country to compete more effectively with regional peers.

Physical infrastructure development

The third and final pillar I want to highlight is physical infrastructure. We are all aware of the long list of infrastructure projects underway, or soon to begin, including airports, seaports, highways, and railway lines around the country. But infrastructure is not just about building roads and power plants. It is about unlocking productivity.

Vietnam’s logistics costs, as a percentage of GDP, remain high compared to regional peers. Reducing these costs directly improves export competitiveness and domestic efficiency.

Better transport infrastructure allows factories to spread more evenly across the country, supporting regional development, reducing congestion, and tapping into underutilized labor pools. This also connects directly with workforce mobility, housing affordability, and urban planning.

Today, FDI diversification is replacing direct external support, while supply chain diversification, geopolitical realignment, and strong global investor interest are creating a historic opportunity. Private capital can help Vietnam move faster than public capital alone allows.

Energy infrastructure deserves special attention. Reliable, affordable energy is the backbone of industrialization and, increasingly, of a digital future. Given Vietnam’s abundance of renewable energy resources, and in light of changing global dynamics, including developments in the Middle East, the country is uniquely positioned to attract data center investment.

Transit-oriented development (TOD), proper suburban planning, and integrated housing and transport policies will help ensure that growth is sustainable, not just fast.

In short, infrastructure is one of the areas where domestic and foreign private capital can deliver some of the highest economic multipliers, if structured correctly.

The next phase of Vietnam’s development will not be defined by how fast capital comes into the country, but by how wisely it is mobilized.

VET-Brook Taylor

Hai Phong proposes land rent exemptions for high-tech and startup businesses

Thu, 21 May 2026 09:00:00 GMT

If approved, the land rent exemption policy expected to take effect on July 1, 2026.

Authorities of the northern port city of Hai Phong are considering a new policy to exempt land rental fees for high-tech enterprises, small and medium-sized businesses, and innovative startups operating in the city's industrial zones and industrial clusters, as part of efforts to strengthen private-sector growth and attract advanced technology investment.

According to the city’s People’s Committee, the proposed plan would grant eligible businesses a 100% exemption on land rental and sublease fees for five years in industrial parks, industrial clusters, and technology incubators.

The policy would apply to certified high-tech enterprises, small and medium-sized enterprises (SMEs) recognized under Vietnam’s SME Support Law, and innovative startups accredited under the Law on Science, Technology and Innovation.

City authorities said the proposed incentives are intended to improve support mechanisms for the private sector, encourage innovation-driven entrepreneurship, and enhance Hai Phong’s appeal as a destination for high-tech investment.

If approved, the land rent exemption policy is expected to take effect on July 1, 2026.

Currently, Hai Phong has only three certified high-tech enterprises: LG Display Vietnam, LG Electronics Vietnam, and LG Innotek Vietnam.

Data from the city’s Department of Finance show that 865 SMEs are leasing land in industrial parks, while another 282 operate in industrial clusters.

VnEconomy-Nam Khánh