VnEconomy - Vietnam Economic Times

Hanoi unveils $29bln Red River boulevard project to reshape urban landscape

Wed, 20 May 2026 09:30:00 GMT

The project is envisioned as a major green corridor and long-term development driver for the Vietnamese capital.

The Hanoi People’s Committee has officially announced plans for the construction of the Red River Landscape Boulevard, a landmark urban development project with a preliminary investment estimated at approximately VND736.9 trillion (around $29 billion).

Spanning 11,418 hectares across 16 wards and communes, the project is scheduled for implementation from 2026 to 2038 and is envisioned as a major green corridor and long-term development driver for the Vietnamese capital.

Under Hanoi’s 100-year master plan, the Red River Landscape Boulevard has been designated as one of the city’s nine key strategic growth axes. The development is intended to serve as a central green spine while fostering economic, commercial, cultural, and urban expansion along both sides of the Red River.

Far beyond a conventional transport project, the initiative comprises five major sub-project groups. Central to the plan are two scenic boulevards running parallel to the river: the Huu Hong (Right Bank) route, extending approximately 45.35 kilometers, and the Ta Hong (Left Bank) route, spanning around 35 kilometers.

Complementing the transport infrastructure will be a vast network of riverside ecological parks. Several park clusters will cover hundreds of hectares, with the Trang Viet riverside park alone exceeding 1,100 hectares.

City authorities described the project as strategically important for Hanoi’s urban planning, environmental sustainability, and long-term development capacity, marking a major step toward building a modern, ecological, and sustainable urban corridor along the Red River.

VnEconomy-Huỳnh Dũng

HCM City targets 60% commercialization rate for AI research by 2030

Wed, 20 May 2026 09:15:00 GMT

The target is part of the city's implementation plan for its 2020–2030 Artificial Intelligence (AI) Research and Development Program.

Ho Chi Minh City has unveiled a new implementation plan for its 2020–2030 Artificial Intelligence (AI) Research and Development Program, aiming to commercialize up to 60 percent of AI research outcomes as part of its broader strategy to become a leading regional AI hub.

Through the initiative, the city seeks not only to improve productivity and administrative efficiency but also to accelerate the development of a smart, safe, and sustainable urban environment.

A key focus of the plan is strengthening telecommunications and digital infrastructure, particularly by expanding high-quality 5G coverage and enhancing broadband connectivity. These upgrades are expected to provide essential support for AI applications in urban governance, transportation, healthcare, and education.

The city also plans to develop high-performance computing (HPC) capabilities to train large-scale AI models and address complex challenges across multiple sectors.

To support long-term AI development, Ho Chi Minh City is prioritizing the standardization, digitization, and quality improvement of sector-specific data. The creation of shared data repositories and open-data platforms is expected to facilitate greater data integration, interoperability, and secure information exchange—laying the foundation for a comprehensive AI ecosystem that fosters innovation and market growth.

Human capital development is another major pillar of the strategy. The city is encouraging technology corporations, research institutes, and universities to collaborate on AI research and practical applications, helping build a strong talent base and enhancing the city’s competitiveness in the digital era.

VnEconomy-Hồng Vinh

Hanoi carries out land clearance for 1,428 projects

Wed, 20 May 2026 08:00:00 GMT

Authorities have set a deadline of June 30, 2026, to finalize clearance for Ring Road 2.5, while simultaneously pushing progress on Ring Roads 3 and 3.5.

The Hanoi People’s Committee announced on May 19 that the city is currently implementing large-scale site clearance for 1,428 projects across various wards.

The initiative aims to remove infrastructure bottlenecks and drive the capital's socio-economic development.

According to the municipal authorities, the projects include 1,281 budget-funded works and 147 projects funded by non-budgetary sources. Among these, 27 are categorized as "key national and municipal projects" of vital importance to the city’s expansion.

The city has seen significant progress in resolving long-standing clearance issues since late 2025. Major milestones include the completion of site clearance for four bridges across the Red River (Hong Ha, Me So, Van Phuc, and Ngoc Hoi), as well as critical sections of Ring Road 1 (Hoang Cau - Voi Phuc), Ring Road 4, and the Tam Trinh road.

Looking ahead, Hanoi is focusing its resources on three additional Red River bridges—Tu Lien, Tran Hung Dao, and Thuong Cat. Authorities have set a deadline of June 30, 2026, to finalize clearance for Ring Road 2.5, while simultaneously pushing progress on Ring Roads 3 and 3.5.

In addition to transport infrastructure, the city is clearing land for nine mega-development projects. These include the Hanoi International Sports Urban Area, the Red River Landscape Axis, and a high-tech healthcare and education complex in Hoang Mai. Several projects will be developed under Public-Private Partnerships (PPP), such as the renovation of the West Lake area and the modernization of National Highway 1A.

Vneconomy-Phan Dương

HCMC launches 100-day peak campaign to complete 1,000 classrooms

Wed, 20 May 2026 07:40:00 GMT

Following administrative restructuring, the city’s educational scale has expanded to over 2.5 million students and 3,400 educational institutions.

The Ho Chi Minh City People's Committee on May 19 officially launched a high-intensity emulation drive to complete 1,000 classrooms in time for the 2026-2027 school year.

The event coincided with the 136th birth anniversary of President Ho Chi Minh and the upcoming 50th anniversary of the city being officially named after him.

During the ceremony, the city also inaugurated Tran Dai Nghia Primary School, the first project completed as part of this peak campaign.

Speaking at the event, Vice Chairman of the HCMC People's Committee, Nguyen Manh Cuong, noted that following administrative restructuring, the city’s educational scale has expanded to over 2.5 million students and 3,400 educational institutions. He emphasized that the pressure on school infrastructure remains a major challenge, particularly in rapidly urbanizing areas, residential clusters, and industrial zones.

To address this urgent need, the city initiated a "150-day-and-night" campaign to finish 1,000 classrooms before the start of the 2026-2027 academic year. After the first 50 days, many projects have accelerated their construction schedules, working around the clock to meet and exceed key milestones.

According to Mr. Nguyen Van Hieu, Director of the municipal Department of Education and Training, the campaign has reached the one-third mark. With the active participation of various sectors and local authorities, 233 new classrooms have been completed to date, including the newly opened Tran Dai Nghia Primary School.

Vneconomy-Thi Nguyễn

Samsung maintains smartphone lead in Vietnam

Wed, 20 May 2026 07:35:00 GMT

The company accounting for 26% of the market share.

Samsung Electronics remained the top smartphone vendor in Vietnam in the first quarter of 2026, capturing 26% of the market, according to the latest data from Omdia.

A notable shift in the rankings saw Apple fall to third place, despite maintaining a 20% market share—the same level recorded in the fourth quarter of 2025. Meanwhile, OPPO climbed to second place with a 21% share, up three percentage points from the previous quarter.

Xiaomi ranked fourth with 18% of the market, gaining one percentage point, while Vivo held fifth place with a 4% share.

Across Southeast Asia, smartphone shipments declined 9% year-on-year in the first quarter, totaling 21.6 million units, according to Omdia.

Vietnam and Malaysia saw market contractions of 12% and 19%, respectively. Omdia attributed the downturn largely to a sharp decline in demand for smartphones priced below $200—a segment that represents a significant portion of consumer demand in both countries. Shipments in the low-cost category alone fell by more than 30%.

Industry analysts warn that ongoing price volatility and supply chain pressures are likely to persist, with manufacturers facing rising component and production costs while consumer purchasing power weakens amid increasingly expensive devices.

VnEconomy-Bạch Dương

Investment for higher-quality and more sustainable growth

Wed, 20 May 2026 07:20:00 GMT

Substantial volumes of capital are required for higher-quality and more sustainable growth during Vietnam’s new phase of development.

Amid shifts in global capital flows, Vietnam has maintained its appeal among FDI and broader social investment resources. During the 2021-2025 period, total social investment expanded significantly, with the private sector and FDI increasingly serving as key growth drivers.

Entering a new phase of development, the priority is no longer high growth alone but higher-quality and more sustainable growth. This will require larger volumes of capital, alongside a recalibration of FDI attraction strategies toward high-quality investment aligned with green transformation and stronger domestic economic capabilities.

During the 2021-2025 period, total social investment capital reached approximately VND17,000 trillion ($654 billion). Within the capital structure, the State sector accounted for only around 27 per cent, while the remaining 73 per cent came from the private sector, including domestic enterprises, FDI enterprises, and foreign indirect investment. This underscores the increasingly important role of the private sector, particularly FDI, in the economy.

Notably, FDI remained one of the key drivers supporting economic growth. During the same period, FDI capital expanded by roughly 1.5-fold, from VND2,900 trillion ($112 billion) to approximately VND4,200 trillion ($162 billion), and now accounts for some 16 per cent of total social investment.

Investment trends

Total registered FDI capital reached approximately $184 billion, of which around $158 billion was disbursed, equivalent to roughly 85 per cent of the total. This is considered a strong disbursement rate compared to many countries in the region, reflecting Vietnam’s effective capacity to absorb and implement investment capital.

Most FDI capital was concentrated in manufacturing and processing, accounting for around 56.5 per cent, while real estate business represented 21.2 per cent. Beyond housing, real estate investment also flowed into tourism and resort projects, industrial parks, and export processing zones, contributing to enhanced production capacity and strengthening Vietnam’s attractiveness for subsequent investment inflows.

Against a backdrop of slowing global FDI flows, Vietnam has continued to maintain considerable appeal among international investors, ranking in the world’s Top 15 developing economies for FDI attraction last year, further reinforcing its standing among international investors and its increasingly prominent role on the global investment map.

Foreign investment flows are projected to continue growing during the 2026-2030 period, though major surges in scale are unlikely. Instead, investment trends are expected to shift more clearly, as global companies increasingly prioritize reshoring production closer to domestic markets or relocating to countries considered reliable partners with stable investment environments and development orientations aligned with their strategic priorities.

This shift also requires Vietnam to reassess its position within global supply chains and adjust its investment attraction strategy in line with emerging capital relocation trends.

At the same time, next-phase FDI is expected to place greater emphasis on green investment, secure supply chain development, technological self-reliance, and projects linked to economic security objectives. Investors are increasingly focused not only on business efficiency but also on resilience and supply chain security, creating new opportunities for Vietnam to strengthen its investment appeal.

The country has set ambitious growth targets alongside sustainable development requirements, with total investment demand estimated at approximately VND38,500 trillion ($1.48 trillion) during this period. Of this, the domestic private sector and FDI are expected to contribute around 80 per cent, while the State sector will account for roughly 20 per cent.

This structure suggests that the private sector will continue to play the leading role, while FDI remains a critical source of capital for sustaining growth. To achieve these goals, Vietnam will need to attract around $45-50 billion in registered FDI annually and approximately $35-40 billion in disbursed FDI to ensure sufficient resources for long-term growth.

However, the challenge is not merely to increase scale but also to improve the quality of capital inflows. Vietnam is now orienting itself toward attracting a new generation of FDI that delivers not only scale but also higher added value to the economy. Accordingly, FDI should prioritize green growth, sustainable development, and social responsibility, while contributing to greater technological self-reliance and facilitating knowledge and technology transfer.

Domestic enterprises also continue to face significant internal challenges. Around 60-70 per cent of enterprises are still using outdated technologies, creating difficulties in meeting increasingly stringent requirements of global supply chains.

At the same time, localization rates remain modest, at around 35 per cent in the electronics sector and 25-30 per cent in mechanical engineering. Average enterprise capital stands at only around VND82.5 billion ($3.17 million), while spending on RD averages around 1 per cent of revenue; significantly lower than the 4-5 per cent commonly seen in high-tech economies.

These figures underscore the urgent need to strengthen links between domestic enterprises and the FDI sector in order to improve competitiveness and increase domestic value creation.

However, this process cannot rely solely on the initiative or goodwill of foreign enterprises. Vietnamese companies must prepare more systematically, from production capacity and corporate governance to development strategies and the ability to meet increasingly demanding global supply chain standards.

Promoting links

Strengthening links between domestic enterprises and the foreign-invested sector must be built on the principle of harmonized interests, ensuring value creation for both sides. In this regard, a “win-win” mindset and principle of mutual benefit should become the foundation for both policy design and practical implementation, creating incentives for long-term and sustainable cooperation.

At the same time, trade principles and market mechanisms should serve as the basis for enhancing connectivity, not only at the policy-making level but also in implementation. Partnership models operating under market-based mechanisms tend to be more stable and sustainable over time.

Another notable issue is the role of foreign indirect investment (FII). Links between domestic and foreign enterprises are formed not only through supply chains but also through financial activities such as mergers and acquisitions, equity ownership, and capital investment. This has become an important channel for strengthening ties between Vietnamese enterprises and international capital flows.

In practice, FII inflows into Vietnam have shown considerable potential in recent years. Over the past decade, the scale of FII in Vietnam has reached approximately $75 billion, reflecting substantial room for growth in this funding channel going forward.

According to forecasts, Vietnam’s stock market could attract up to $25 billion in international investment capital by 2030. Market upgrades by FTSE Russell and MSCI alone could trigger around $5 billion in capital inflows from exchange-traded funds (ETFs) and mutual funds during the initial phase.

Given this potential, attracting more foreign indirect investment should become a priority in the coming period. Beyond serving as an important financial resource, it can also help expand channels of connectivity between Vietnamese enterprises and international investors.

However, the number of FDI enterprises listed on Vietnam’s stock market remains limited, restricting opportunities for investment through equity ownership or capital contributions in this segment. At present, only ten or so FDI enterprises are listed, equivalent to approximately 0.6 per cent of all listed companies and just 0.03 per cent of total active FDI enterprises operating in Vietnam.

In terms of scale, these enterprises have a combined market capitalization of some $320 million, equivalent to approximately 0.13 per cent of Vietnam’s total stock market capitalization.

Going forward, strengthening connectivity through financial investment mechanisms, including cross-investment between FDI enterprises and domestic investors or between foreign investors and Vietnamese companies, could become an important direction for further promotion. This represents a new strategic mindset for attracting foreign investment in general and for deepening links between the foreign-invested sector and the domestic economy in particular.

(*) Dr. Le Duy Binh is the Director of the Economica Vietnam

VET-Dr. Le Duy Binh(*)

Da Nang climbs 212 places in Global Startup Ecosystem Index

Wed, 20 May 2026 07:16:00 GMT

According to the latest report by StartupBlink, Da Nang climbed 212 places to rank 554th globally, a significant rise from its 766th position in 2025.

Da Nang city, central Vietnam, has achieved a spectacular leap in the "Global Startup Ecosystem Index 2026," the city Department of Science and Technology reported on May 19.

According to the latest report by StartupBlink, Da Nang climbed 212 places to rank 554th globally, a significant rise from its 766th position in 2025.

The 2026 Global Startup Ecosystem Index by Singapore-based StartupBlink covers over 1,500 cities and 120 countries worldwide.

This ranking represents a pivotal breakthrough for Da Nang’s innovative startup ecosystem amid intensifying global competition for innovation, technology, and high-quality human resources. The sharp rise in the global rankings not only reflects the improvement in both the quantity and quality of local startups but also demonstrates that the city’s entrepreneurial environment is becoming increasingly dynamic, open, and globally connected.

Local authorities attributed this success to the persistent, synchronized, and continuous efforts of the city’s entire startup ecosystem over several years. Key factors include the local government’s strategic implementation of specific support mechanisms and policies, along with the active participation of departments, universities, research institutes, tech companies, startup communities, venture capital funds, and international partners.

Furthermore, Da Nang has focused heavily on developing infrastructure for innovation, digital transformation, and high-tech industries. The city is actively promoting emerging sectors such as Artificial Intelligence (AI), semiconductors, blockchain, and biotechnology. Simultaneously, the ecosystem continues to expand through a series of investment networking events, innovation programs, and international cooperation initiatives held regularly in recent years.

Vneconomy-Ngô Anh Văn

Thailand's Amata and Japan's Marubeni partner to expand investment in Quang Ninh province

Wed, 20 May 2026 04:30:00 GMT

The two investors are planning to expand the Uong Bi Industrial Park and the western area of Song Khoai Industrial Park in Vietnam's northern province.

Deputy Secretary of the Quang Ninh Provincial Party Committee and Chairman of the Quang Ninh Provincial People’s Committee Bui Van Khang on May 19 had a meeting with representatives of Amata Corporation (Thailand) and Marubeni Corporation (Japan) to discuss plans for expanding investment activities in the province in the coming period.

Currently, Amata is the developer of the infrastructure project for Song Khoai Industrial Park, one of the province’s key industrial parks. To date, Song Khoai Industrial Park has attracted 25 secondary investment projects, all of which are FDI projects, with total registered capital standing at nearly $3 billion. The projects are mainly concentrated in the processing and manufacturing industries, featuring high technological content and added value, and involving major international corporations and enterprises such as Autoliv, Jinko Solar, Foxconn, Lite-On, Yaskawa, Tamagawa...

At the meeting, leaders of Amata and Marubeni shared updates on their strategic partnership, under which Marubeni has completed procedures to become an official shareholder of Amata Ha Long with a 20 per cent ownership stake. Marubeni’s participation is expected to strengthen the financial capacity of the Song Khoai Industrial Park infrastructure project, enhance governance standards in line with international practices, and expand networks to attract more Japanese technology corporations to invest in the industrial park in the future.

Notably, leaders of the two groups also proposed expanding Uong Bi Industrial Park and the western area of Song Khoai Industrial Park. This move is considered an important step toward increasing the province’s attractiveness to international investors while promoting high-quality FDI inflows into Quang Ninh, thereby driving economic growth, industrial restructuring, and job creation for local workers.

According to data from the Foreign Investment Agency (FIA) under the Ministry of Finance (MoF), as of the end of April 2026, foreign investors had poured more than $15.31 billion into 252 projects in Quang Ninh. The province currently ranks 10th nationwide in attracting foreign direct investment (FDI).

Speaking at the meeting, Chairman of the Quang Ninh Provincial People’s Committee Bui Van Khang acknowledged and highly appreciated Amata’s contributions to Quang Ninh’s socio-economic development, particularly in investment attraction, job creation, and ensuring social welfare for local residents.

Therefore, Mr. Khang urged Amata and Marubeni to continue coordinating closely with local authorities in compensation and site clearance work, while concentrating resources on accelerating investment progress and completing the technical infrastructure of Song Khoai Industrial Park in line with the approved schedule.

At the same time, Amata and Marubeni were also encouraged to further strengthen investment promotion efforts to attract more high-quality secondary investment projects to the industrial park in the coming period.

In addition, the provincial leader called on the two investors to study and develop accommodation facilities, social infrastructure, and other utilities for employees to meet the growing development needs of Song Khoai Industrial Park and the secondary projects currently being implemented or planned in the area.

Vneconomy-Phuong Nhi

National scientific conference on innovation of national development model

Wed, 20 May 2026 01:10:00 GMT

The conference aims to provide a comprehensive evaluation and discussion on several key areas including the analysis of the international and domestic context to provide strategic forecasts and orientations for Vietnam’s future leading up to 2045.

A national scientific conference themed “Innovating the National Development Model Based on Science, Technology, Innovation, and Digital Transformation” is scheduled to take place on May 26 in northern Hai Phong City.

The event is part of the implementation of the Action Program of the Communist Party of Vietnam (CPV) Central Committee following the 14th National Party Congress. Under the direction of the Politburo, the Central Commission for Policy and Strategy is currently leading the drafting of a major Project titled "Innovating the National Development Model Based on Science, Technology, Innovation, and Digital Transformation," which will be submitted to the 3rd plenum of the 14th Party Central Committee.

To provide scientific grounds and evidence-based arguments for the Project, the Commission is collaborating with the Ho Chi Minh National Academy of Politics, the Central Theory Council, the Hai Phong Municipal Party Committee, the Communist Review, the National Political Publishing House Truth, the Vietnam Economic Association, and the Vietnam Economic Times / Vneconomy to organize this symposium.

The conference aims to provide a comprehensive evaluation and discussion on several key areas:

- Clarifying the theoretical foundations and global lessons regarding national development models, specifically those driven by science, technology, innovation, and digital transformation.

- Analyzing the CPV’s direction on the national development model throughout 40 years of Doi Moi ( Economic Renewal) policy, and the specific orientations set forth in the 14th National Party Congress documents across all sectors, including the economy, culture, society, national defense, security, and foreign affairs.

- Clarifying the status of Vietnam’s development model over the past 40 years, highlighting achievements, limitations, root causes, and lessons learned.

- Highlighting the experiences of exemplary provinces and cities nationwide, with a particular focus on Hai Phong’s development model innovation.

- Analyzing the international and domestic context to provide strategic forecasts and orientations for Vietnam’s future leading up to 2045.

- Establishing the core components of the national development model for the 2026-2045 period, including its philosophy, foundations, pillars, driving forces, and operational mechanisms.

The conference will consist of two main segments: a keynote session and a panel discussion.

The discussion session will focus on analyzing strategic solutions to modernize the national development model. Participants will include leading experts and scientists in various fields, as well as representatives from international organizations such as the World Bank (WB), the United Nations Development Programme (UNDP), and the International Labour Organization (ILO), alongside representatives from ministries, and local authorities.

Vneconomy-Phương Nhi

Venture Forum 2026 to spotlight Vietnam’s evolving MA and private capital landscape

Wed, 20 May 2026 01:00:00 GMT

More than 500 regional investors, financial institutions, and technology leaders will gather in Ho Chi Minh City for Venture Forum 2026 to discuss Vietnam’s evolving MA landscape and private capital opportunities.

On June 12, more than 500 leaders from investment funds, financial institutions, and leading technology corporations across Asia will gather at Vinpearl Landmark 81 in Ho Chi Minh City for Venture Forum 2026 — a high-level forum on MA and private capital initiated by VinVentures, the venture capital arm of Vingroup. The event is expected to become one of the region’s most notable gatherings for the technology investment and financial communities this year.

Under the theme “Vietnam’s MA Moment – The Unseen Dynamics,” Venture Forum 2026 is hosted by VinVentures in collaboration with the Ho Chi Minh City Department of Science and Technology, Lotte Ventures, and Impact Square.

According to the organizing committee, Vietnam is increasingly emerging as an attractive destination for technology and private capital investment in the region, supported by strong long-term growth fundamentals, rapid digital transformation, and a fast-growing innovation ecosystem. Venture Forum 2026 is therefore expected to serve as a strategic platform for in-depth discussions on the evolving dynamics of the regional MA market.

The forum is expected to welcome more than 500 participants from Japan, South Korea, Singapore, Taiwan, and Vietnam, including leaders from investment funds, corporations, financial institutions, technology companies, and high-growth startups.

The program will feature six thematic panel discussions covering topics such as business valuation, MA strategies of Asian corporates, the evolving focus of private capital from deployment to liquidity and DPI, the role of policy in enabling transactions, as well as founders’ decisions around scaling, strategic partnerships, and exits.

In addition to the panel discussions, the forum will also provide dedicated networking opportunities connecting investors and companies to foster potential partnerships and transactions beyond the event itself.

According to the organizing committee, the long-term vision of Venture Forum is to gradually establish a leading annual platform for strategic dialogue on MA and private capital in Vietnam, contributing to stronger connections between Vietnamese enterprises and high-quality regional and international capital.

Leading figures across Asia’s investment and MA landscape who will join Venture Forum 2026 as speakers include:

- Mr. Chris Freund – Founder Managing Partner, Mekong Capital

- Mr. Andrea Campagnoli – Founding Partner, Bain Company Vietnam;

- Ms. Ngoc Nguyen – Deputy Editor, Vietnam, DealStreetAsia

- Ms. Le Han Tue Lam – CEO Managing Director, VinVentures

- Mr. Jun Sung Bae – Executive Director, Investment Division, Lotte Ventures

- Mr. Maxx Tsai – Director of Corporate Strategic Investment MA, Advantech

- Mr. Shigeki Kanemoto – Head of Vietnam Investments, Daiwa Corporate Investment

- Mr. Timothy Do – CEO, Impact Square

Further information regarding the forum, agenda, and speakers will be updated at vinventures.net.

Vietnam Airlines partners with NIC to accelerate digital transformation

Tue, 19 May 2026 23:45:00 GMT

The partnership focusing on accelerating the adoption of emerging technologies such as AI, big data, and automation.

Vietnam Airlines and Vietnam’s National Innovation Center (NIC) have signed a cooperation agreement to advance science and technology, innovation, and digital transformation, supporting the airline’s ambition to become a leading digital carrier in the Asia-Pacific region.

Under the agreement, signed on May 19 in Hanoi, the two sides will jointly implement initiatives aligned with the country’s national science and technology development agenda, as well as Vietnam Airlines’ digital transformation strategy for the 2025–2030 period.

The partnership will focus on accelerating the adoption of emerging technologies such as artificial intelligence (AI), big data, and automation across the airline’s management, operations, engineering, commercial activities, and customer services. Through these applications, Vietnam Airlines aims to improve operational efficiency, optimize costs, strengthen competitiveness, and deliver a more seamless and modern passenger experience.

By collaborating with NIC, the airline will also gain broader access to Vietnam’s innovation ecosystem, including experts, startups, technology companies, and both domestic and international investors. The partnership is expected to enhance Vietnam Airlines’ innovation capacity and support its long-term digital transformation goals.

As part of the cooperation, the two organizations will co-host workshops, training programs, and expert networking events to foster a culture of innovation within the company. NIC will also provide policy advisory support, facilitate access to technology resources, and assist in piloting digital transformation initiatives.

VnEconomy-Đan Tiên

Da Nang Airport begins $58mln expansion of international terminal

Tue, 19 May 2026 23:30:00 GMT

The project will add more than 21,000 sq.m to the airport’s international passenger terminal, significantly increasing its capacity and improving service quality.

The Da Nang International Terminal Investment and Operation Joint Stock Company (AHT) on May 19 officially broke ground on the expansion of Da Nang International Airport Terminal 2, with total investment of nearly VND1.5 trillion (approximately $58 million).

The project will add more than 21,000 square meters to the international passenger terminal, significantly increasing its capacity and improving service quality. Once completed, Terminal 2 will feature 31 additional check-in counters, bringing the total to 85, while the number of aerobridge departure gates will increase from four to seven.

The expansion comes in response to growing travel demand. In 2019, Terminal 2 served more than 7.1 million passengers—79% above its original designed capacity—highlighting the urgent need for increased operational capacity.

Beyond addressing immediate infrastructure pressures, the project marks an important step toward Vietnam’s long-term vision of developing two international airports within one metropolitan area—Da Nang International Airport and Chu Lai Airport. By 2030, the two airports are expected to provide a combined capacity of 25 million passengers, creating new momentum for tourism growth and economic development in Da Nang and the country's south-central coastal region.

VnEconomy-Ngô Anh Văn

Ho Chi Minh City enters Top 100 innovation ecosystems globally

Tue, 19 May 2026 23:00:00 GMT

HCMC moved up 12 places to rank 98th among the world’s startup ecosystems, while Vietnam rose five positions to 50th globally, reaching its highest ranking to date.

According to the Global Startup Ecosystem Index 2026 released by StartupBlink on May 19, Ho Chi Minh City moved up 12 positions from the previous year to rank 98th globally, marking the first time the southern city has officially entered the Top 100 startup ecosystems worldwide.

The ranking is also Ho Chi Minh City’s highest position since StartupBlink began publishing the index and allows the city to achieve its Top 100 target approximately four years ahead of its roadmap toward 2030.

Commenting on the achievement, Mr. Lam Dinh Thang, Director of Ho Chi Minh City’s Department of Science and Technology, said the city’s global ranking reflects continuous efforts and contributions from various stakeholders across the ecosystem, including startups, investors, universities, research institutes, support organizations and policymakers.

According to Mr. Thang, the result indicates that the city’s innovation ecosystem is undergoing positive changes and gradually moving closer to international standards.

“HCMC’s entry into the global Top 100 not only enhances its international profile and visibility but also creates more favorable conditions for attracting investment resources, experts and innovation partnerships in the future,” he said.

Beyond the milestone of entering the global Top 100, Ho Chi Minh City also recorded several notable indicators. The city currently ranks fifth in Southeast Asia, second in the region for Ecosystem Maturity, and seventh in the Asia Pacific region for Startup Community Activity.

By sector, fintech remains the city’s strongest area, ranking third in Southeast Asia and 60th globally. Blockchain ranked fifth in Southeast Asia and 70th worldwide.

According to StartupBlink, Ho Chi Minh City currently leads Southeast Asia in ecosystem maturity, reflecting its ability to generate startups capable of scaling and achieving market growth. The city was also recognized as one of the region’s most dynamic startup hubs, supported by increasingly active participation from startups, investors, universities, technology firms and innovation support organizations.

StartupBlink is widely regarded as one of the leading international benchmarking systems for startup ecosystems, assessing more than 1,500 cities and 100 countries based on activity scale, ecosystem quality and business environments supporting innovation.

The latest ranking reflects growing international recognition of Ho Chi Minh City’s efforts to improve its startup environment, strengthen innovation and expand global connectivity.

In recent years, the city has introduced policies and programs supporting startups, promoted open innovation models, strengthened investment connections, expanded international partnerships and operated the Startup Innovation Hub of Ho Chi Minh City (SIHUB) under a public private partnership model.

In 2025, the city also hosted several international innovation and startup events, including WISE HCMC, Vietnam Innovation Summit, InnoEx and Mega Us Expo, aimed at strengthening ecosystem connections with regional and global partners.

However, city officials noted that there remains room for further improvement, particularly in support mechanisms, innovation infrastructure and international connectivity. Moving forward, the city plans to continue promoting policy sandbox models, expanding open innovation initiatives and supporting startups in entering regional and global markets.

At the national level, StartupBlink’s 2026 report showed Vietnam climbed five places to rank 50th globally, its highest position ever. The country’s ecosystem growth rate reached 67.9 per cent, the highest in Southeast Asia and among the fastest growing in the Asia Pacific region.

Vietnam now has four cities in the world’s Top 1,000 startup ecosystems: Hanoi, Ho Chi Minh City, Hai Phong and Da Nang, adding one more city compared with last year.

Hanoi recorded particularly strong progress, climbing 30 places to rank 118th globally and sixth in Southeast Asia, with a growth rate of 48.6 per cent. The capital also performed strongly in the Ecosystem Returns category, ranking fourth in the region.

Among the fastest growing local ecosystems, Da Nang stood out by climbing 212 positions to rank 554th globally. The city also achieved a growth rate of 153.8 per cent, the highest among Vietnamese localities included in this year’s ranking.

Notably, Hai Phong entered the global Top 1,000 startup ecosystems for the first time, reflecting how Vietnam’s innovation landscape is gradually expanding beyond the country’s two traditional hubs, Hanoi and Ho Chi Minh City.

-Nhu Quynh

The future of Vietnam’s urban skyline: Challenges and opportunities

Tue, 19 May 2026 10:10:00 GMT

Experts at the Tall Building Forum 2026 discussed how international best practices can be adapted to Vietnam’s social fabric, climate conditions, and development priorities amidst rapid urbanization.

Against the backdrop of Vietnam as one of Asia’s fastest urban transformations, leaders from government agencies and the architecture, engineering, urban planning, finance, and real estate sectors gathered in Ho Chi Minh City on May 14 for the Tall Building Forum 2026 to discuss how the country can balance rapid urbanization with sustainability, resilience, and livability goals.

The forum was organized by EuroCham Vietnam’s Construction Sector Committee in partnership with the Council on Vertical Urbanism (CVU), as Vietnam’s major cities continue to experience accelerating urban growth.

As Hanoi and Ho Chi Minh City continue to absorb growing populations, speakers argued that high-rise developments should no longer be viewed merely as symbols of prestige. Instead, they are increasingly becoming strategic tools for land optimization, economic competitiveness, infrastructure integration, and long-term sustainability.

Speaking at the event, Mr. Jean-Jacques Bouflet, Vice Chairman of EuroCham Vietnam, said Vietnam has entered a decisive phase of urban evolution.

“Recent policy developments, including the implementation of the revised Law on Construction and ongoing institutional reforms, demonstrate Vietnam’s strong commitment to building a more modern, efficient, and sustainable urban environment,” he said.

He added that sustainability is becoming increasingly central to high-rise planning and development, with this year’s agenda focusing particularly on transit-oriented development (TOD), sustainable building design, and affordable housing.

Echoing similar views, Mr. Le Minh Long, Deputy Director of the Department of Science, Technology, Environment and Building Materials under the Ministry of Construction, said Vietnam’s urbanization model has become increasingly complex.

While high-rise construction has accelerated significantly over the past decade, challenges related to infrastructure integration, energy efficiency, climate resilience, and technical standards have become more apparent.

He stressed that sustainability should no longer be treated as an optional feature, but rather as a fundamental requirement. “Urban planning and management must stay ahead of development to ensure synchronization between high-rise projects and social infrastructure,” Mr. Long said.

According to leaders of EuroCham’s Construction Sector Committee, Vietnam now needs to develop its own approach to vertical urbanism rather than simply replicating international models. The goal, they said, is to strike a balance between rapid growth, sustainability, engineering excellence, and long-term quality of life.

Vietnam needs its own urban model

A recurring theme throughout the forum was that Vietnam should not merely replicate global skyline models, but instead adapt international experience to local cultural, social, and climate conditions.

Experts noted that global urban trends are shifting away from isolated skyscrapers toward integrated “vertical communities,” where residential, commercial, workplace, and public spaces coexist within walkable urban ecosystems.

Mr. Shonn Mills, Chairman of the Council on Vertical Urbanism, said mixed-use developments integrating residential, office, retail, and social functions have become a defining trend in global urban planning over the past decade.

“Tall buildings are no longer simply structures; they are becoming essential components of dense and vibrant urban environments,” Mr. Mills said.

Meanwhile, Mr. Marc Salemink, Associate Director and Senior Architect at UNStudio, said future towers should function as “cities within cities,” incorporating public and semi-public spaces that foster social interaction and community building.

Projects in Singapore and Thailand, including PARKROYAL on Pickering, Oasia Downtown, and One Bangkok, were highlighted as examples of integrating greenery, public transport connectivity, and climate-responsive design into high-density developments.

Ms. Florence Chan, Principal at Kohn Pedersen Fox (KPF), highlighted the transformation of Victoria Harbour in Hong Kong (China) as an example of how commercial waterfronts can evolve into vibrant public destinations that reconnect people with the city. Reflecting on the long-term sustainability of urban projects, she argued that Vietnam’s next generation of developments must move beyond short-term construction metrics toward broader lifecycle thinking. “We need to pivot from discussing construction costs to focusing on life-cycle costs,” Ms. Chan emphasised. “Investing in superior materials and integrated designs today pays dividends in the longevity and performance of the building over decades.”

TOD seen as key to future urban growth

Transit-oriented development (TOD) also emerged as one of the forum’s central themes, with experts arguing that Vietnam’s future urban expansion should revolve around integrated public transport systems rather than continued urban sprawl.

Participants also noted that the merger of the Ministry of Transport and the Ministry of Construction in 2025 could create more favorable conditions for coordinating infrastructure planning and urban development strategies.

According to experts, TOD models could help reduce traffic congestion, improve air quality, and create more walkable communities in Hanoi and Ho Chi Minh City. However, speakers emphasized that successful implementation would require long-term planning consistency, stronger governance, and more integrated urban data systems.

Alongside sustainability, climate adaptation and affordable housing also emerged as growing priorities for Vietnam’s urban future.

Mr. Tony Chan, Associate Principal Planning Leader SEA at ARUP, said recent extreme weather events in Central Vietnam highlighted the urgent need to integrate climate resilience into urban planning. “The value of a building should be measured by how it performs during extreme weather and how it serves the broader community,” Mr. Chan said.

Discussions also explored the role of updated technical standards, energy efficiency metrics, and data-driven planning in supporting smarter forms of vertical urbanism. At the same time, affordable housing was repeatedly identified as a critical issue, with experts arguing that stronger integration between transport systems, social infrastructure, and mixed-use planning could help lower living costs while improving access to jobs and public services.

Closing the forum, Mr. Bruno Jaspaert, Chairman of EuroCham, said that “Buildings are not easy, and they are rarely fast, but Vietnam’s development speed is unique." “We Europeans have a long history of architecture that makes a difference, and Vietnam needs those same landmarks to define its trajectory. EuroCham remains committed to showcasing how proper construction and technology can contribute to this fast-growing economy.”

Vneconomy-Nhu Quynh

Combined strengths of FDI and domestic resources

Tue, 19 May 2026 10:00:00 GMT

Vietnam is pursuing policy reforms to better leverage the strengths of both FDI and domestic resources, Dr. Nguyen Duc Hien, Vice Chairman of the Central Commission for Policy and Strategy, said in his address to the 6th Vietnam Connect Forum.

To adapt to a changing landscape, Vietnam must fundamentally rethink its traditional approach to the FDI sector. Rather than focusing narrowly on the concept of “attracting FDI,” the capital source should be viewed as an inseparable and organic component of the country’s broader growth model.

This transition requires a comprehensive roadmap for reform, spanning investment attraction policies, industrial development strategies, infrastructure planning, and the creation of a sustainable business ecosystem. Foreign-invested enterprises (FIEs) should no longer be regarded merely as a source of capital but as key stakeholders that can strengthen national capabilities and elevate industrial competitiveness. The overarching objective is to build an independent, resilient, and strategically-autonomous economy that remains deeply integrated into global economic flows.

Attracting new-generation FDI

To achieve its double-digit economic growth targets, Vietnam faces an enormous capital requirement, estimated at VND38,500 trillion ($1.48 trillion). While the public sector is expected to contribute approximately VND8,300-8,500 trillion ($319.2-326.9 billion), the bulk of the remaining funding, more than VND30,000 trillion ($1.15 trillion), must come from the private sector, investment funds, and foreign enterprises.

Against this backdrop, improving institutions to capture the next wave of “new-generation FDI” has become a top priority. A key shift in thinking is that Vietnam must pay closer attention not only to direct investment inflows but also to foreign indirect investment (FII). This is expected to become a core focus of an upcoming Politburo resolution on the foreign-invested economy, which will have a broader scope than previous frameworks.

To attract new-generation FDI and strengthen links between FIEs and domestic enterprises, Vietnam must fundamentally renew its mindset, vision, and policy objectives. The country’s new strategy can be distilled into four “golden keywords.”

The first is “holistic integration.” In the past, Vietnam tended to simply emphasize the concept of “attracting FDI.” Today, FDI must instead be treated as a core component of the country’s growth and development model. This requires a comprehensive overhaul of policies, from investment attraction and industrial development to infrastructure and ecosystem building.

Rather than evaluating performance through fragmented reports focused solely on disbursed capital figures, FDI should be integrated into the broader national growth model. Policies must be interconnected, linking investment promotion with industrial development, infrastructure, and ecosystem support.

This perspective also requires coherence across Vietnam’s various policy resolutions, including Resolution No. 10 (2017) and Resolution No. 68 (2025) on private economic development, Resolution No. 12 (2025) on restructuring State-owned enterprises, Resolution No. 79 (2025) on State economic development, and Resolution No. 50 (2019) on FDI. A forthcoming resolution on the foreign-invested economy will broaden the scope further to include both FDI and FII, reflecting a more unified strategic framework.

Within this framework, State-owned enterprises (SOEs) should remain central in areas tied to national defense and security - sectors where private enterprises may not be well-positioned to operate. Meanwhile, FIEs should be seen not only as capital providers but also as partners that enhance Vietnam’s national competitiveness and industrial capabilities.

The second keyword is “ecosystem.” This approach goes beyond incentives and infrastructure to include a shift in governance mindset. Public institutions must transition from a “management” role to an “enabling” role that facilitates business growth.

Building an ecosystem also means paying greater attention to nurturing and upgrading existing FIEs, rather than focusing exclusively on attracting new projects. In this context, localization should no longer be measured merely as a percentage ratio but by the extent to which Vietnamese businesses participate meaningfully in value chains.

The third keyword is “co-creation.” FDI attraction should no longer focus solely on capital inflows or job creation - traditional metrics that previously dominated policymaking. Instead, FDI should help transfer management expertise, strengthen economic capabilities, and improve Vietnam’s global standing.

And the fourth keyword is “global orientation.” Economic links should not be limited to Vietnam’s domestic market of 100 million people, but should aim outwards to capture higher value from global markets.

Synchronizing policies

Turning this philosophy into reality will require coordinated policy implementation. A new resolution on the foreign-invested economy is expected soon, but broad policy alignment across sectors will be equally important.

At the macro level, Vietnam needs synchronized reforms in land, investment, planning, construction, tax, data, AI, science and technology, and finance policies. Notably, the National Assembly is expected to undertake a comprehensive revision of the Land Law in late 2026, addressing issues such as lease durations, land classification, pricing, and administrative procedures.

Vietnam must also adopt a more ambitious approach to sandbox frameworks in emerging sectors. The current model, in which ministries propose isolated sandbox mechanisms on a case-by-case basis, has often resulted in prolonged delays, with some frameworks taking more than three years to materialize.

Sectoral strategies will also require updates. The Ministry of Industry and Trade is preparing a range of industrial policies to support reindustrialization, including a Law on Key Industries. Vietnam is also reviewing industrial strategies, launching Go Global programs, and seeking to reduce logistics costs, which currently account for roughly 18 per cent of GDP; a relatively high level.

The financial, banking, and monetary sectors will likewise require reforms, including new support packages for priority industries. In energy, breakthrough policies will be needed to unlock offshore wind and renewable energy development, supported by stronger marine spatial planning frameworks.

At the local level, fiscal mechanisms should be reformed to give localities greater flexibility in supporting businesses. Some localities possess substantial financial resources but face regulatory barriers that prevent the effective use of funds, including for workforce training initiatives.

Vietnam also needs a comprehensive review of investment incentives. At present, incentives are spread too broadly, with roughly 78 per cent of second-tier manufacturing sub-sectors receiving preferential treatment. Going forward, incentives should be more targeted, focusing on priority sectors, regions, and enterprise categories. Rather than relying mainly on input-based tax incentives, policies should increasingly be tied to measurable outcomes and firm commitments.

The country should also establish a national program for priority industries, enabling the government to negotiate directly with major corporations and investors instead of leaving decisions entirely to local authorities.

Capital mobilization will remain central. Vietnam must streamline administrative procedures and strengthen the business environment to better attract FDI inflows. Greater attention should also be paid to cross-border capital flows, particularly through international financial institutions and investment funds, given that Official Development Assistance (ODA) often comes with high costs and significant conditions.

Additional recommendations for attracting next-generation FDI include improving Power Purchase Agreements (PPAs), expanding guarantee mechanisms, securing lower-cost financing, and fostering the development of investment fund industries such as index funds and trusts through more supportive tax policies. If Vietnam aims to remain competitive internationally, it must align more closely with, and in some areas exceed, global standards.

Strengthening domestic capacity

Alongside reforms targeting foreign investors, support policies for domestic enterprises, particularly small and medium-sized enterprises (SMEs), must be implemented more effectively before, during, and after FDI attraction efforts. Revising SME support legislation is considered essential.

Local governments should also use budget resources more flexibly to support workforce training and foster stronger collaboration between local authorities, educational institutions, and businesses. Successful models from provinces such as Bac Ninh and Bac Giang could provide valuable lessons for replication.

For FIEs, Vietnam should encourage reinvestment by offering stronger incentives for second-phase or expansion projects, including easier land-use rights transfers and preferential treatment for retained earnings reinvested domestically.

Ultimately, the success or failure of this strategy will depend on implementation discipline. Even the best policy direction will struggle to deliver results if institutional reforms are slow, inconsistent, or unstable. Vietnam must avoid fragmented local implementation and instead reduce compliance costs in a meaningful way.

The country remains committed to viewing FIEs as an integral part of its long-term development strategy. With trust, policy consistency, and mutual understanding, Vietnam can unlock new spaces for sustainable growth.

VET-

Suspect arrested for illegally transporting nearly 90 tons of radioactive-related materials

Tue, 19 May 2026 08:30:00 GMT

The seizure occurred while the the Duong Lam Joint Stock Company was processing export documents to ship the materials abroad.

The Police of the northern mountainous province of Lang Son has announced the successful dismantling of a major criminal operation involving the illegal transportation of radioactive materials.

Earlier, the Police led a coordinated effort with relevant authorities in the province to intercept and seize 84 tons of Monazite ore belonging to the Duong Lam Joint Stock Company. The seizure occurred while the company was processing export documents to ship the materials abroad.

On May 13, the Security Investigation Agency of the Provincial Police formally launched criminal proceedings and issued an arrest warrant for Tran Van Quan (born 1957, residing in Tan Hung Ward, Ho Chi Minh City), who has been charged with the "illegal transportation of radioactive materials" under Article 309 of the Penal Code. Then, on May 16, the agency executed the arrest warrant for Quan. All legal decisions and warrants were approved by the Lang Son Provincial People’s Procuracy.

Expanding the investigation, the Security Investigation Agency conducted searches at the offices of the company in central Lam Dong Province, as well as the company’s Ilmenite-Zircon processing plant in Hoa Thang Commune, Lam Dong. During the searches, authorities seized various items and documents related to the case to support the ongoing investigation.

According to experts, the seized Monazite ore contains a high percentage of rare earth oxides, which can be utilized in the manufacturing of electronic devices, high-tech products, and nuclear technology applications. This marks the first time the Provincial Police has successfully investigated and intercepted such a large quantity of radioactive-related materials.

Currently, the relevant units are expanding the investigation and will handle the case in accordance with the law.

Vneconomy-Song Hoàng

HCM City targets digital transformation for over 60% of industrial park businesses by 2026

Tue, 19 May 2026 08:00:00 GMT

This is part of key targets outlined for digital transformation across the southern city's industrial and export processing zones.

More than 60% of businesses operating in export processing and industrial zones in Ho Chi Minh City are expected to adopt digital technologies by 2026, as part of the city’s ambitious digital transformation agenda.

Speaking at a Digital Transformation Week held recently at Vinh Loc Industrial Park, Mr. Le Van Thinh, Deputy Head of the Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA), said the city has outlined four key targets for digital transformation across its industrial and export processing zones next year.

These include achieving full 5G coverage across all industrial parks, ensuring more than 60% of enterprises implement digital technologies, equipping 80–90% of workers with basic digital platforms, and developing eco-industrial and smart industrial park models. The targets are considered highly ambitious given current conditions.

To support effective implementation, the Digital Transformation Week was structured around three core pillars: a new legal framework, digital governance solutions, and workforce development—an often overlooked aspect of digital transformation efforts that typically focus on machinery and operational processes.

The event was jointly organized by HEPZA, the Ho Chi Minh City Industrial Park Business Association (HBA), Viettel Ho Chi Minh City, and Vinh Loc Industrial Park Infrastructure Development Company. As one of the first five industrial parks selected for rollout, Vinh Loc will serve as a pilot model, with lessons expected to guide expansion across the city’s broader industrial zone network.

VnEconomy-

Hanoi starts construction of $6.3bln urban corridor along National Highway 1A

Tue, 19 May 2026 07:20:00 GMT

The 36.3km project stretching from Ring Road 1 to the Cau Gie interchange, passing through 18 wards and communes in Hanoi.

Authorities in Hanoi on May 19 broke ground on a major urban infrastructure and redevelopment project along National Highway 1A, aimed at expanding urban space and reshaping the southern gateway of the capital.

The project will develop a new urban corridor stretching from Ring Road 1 to the Cau Gie interchange of the National Highway 1A, with total investment estimated at nearly VND162 trillion (approximately $6.3 billion).

Spanning about 36.3 kilometers, the route will pass through 18 wards and communes in Hanoi. The starting point connects to the Kim Lien tunnel area, while the endpoint links to the Cau Gie interchange in Chuyen My Commune.

The roadway will feature a cross-section of up to 90 meters, including 10 main traffic lanes and six parallel service lanes, with a designed speed of 80 kilometers per hour.

Construction and related infrastructure are expected to be completed by 2027, contributing to the city’s long-term transport development strategy under Hanoi’s 100-year master plan.

Beyond easing traffic congestion at the southern entrance to the capital, the project is also envisioned as a new urban development axis integrating transport infrastructure with urban renovation and redevelopment along the National Highway 1A corridor.

VnEconomy-Dung Huynh

HCM City plans to expand high-tech safe vegetable production

Tue, 19 May 2026 07:11:00 GMT

High-tech vegetables expected to account for 60–70% of the sector’s total value by 2030.

Authorities in Ho Chi Minh City have approved a new plan to develop concentrated safe vegetable production zones with traceability systems, integrated processing, and stronger market linkages by 2030, aiming to build a modern, sustainable, and high-tech vegetable industry.

The initiative focuses on improving productivity, product quality, and competitiveness through the expansion of centralized farming areas, greater adoption of advanced agricultural technologies, and enhanced value-chain cooperation.

Under the plan, the city targets approximately 5,500 hectares of vegetable cultivation, equivalent to around 35,000 hectares of annual planting area, with total output expected to reach 880,000 tons by 2030. High-tech vegetable farming is projected to cover 12,000 hectares, while organic vegetable cultivation is expected to expand to 48–50 hectares.

In addition, 60% of the city’s total vegetable planting area is expected to meet safe production standards and offer full traceability. Average production value is projected to reach between VND800 million ($30,400) and VND1 billion per hectare annually, with high-tech vegetables accounting for 60–70% of the sector’s total value.

VnEconomy-Minh Huy

Vietnam looks for stable long-term energy solutions

Tue, 19 May 2026 04:00:00 GMT

Interest in Small Modular Reactors (SMRs) has been growing as Vietnam is looking for stable, low-carbon electricity sources capable of supporting its long-term economic and industrial expansion.

Recent discussions in Hanoi highlighted Russia’s efforts to promote SMR technology in Vietnam, positioning next-generation nuclear energy as a stable and low-carbon power source capable of supporting economic growth, energy security and industrial development.

Interest in SMRs has been growing as Vietnam is looking for stable, low-carbon electricity sources capable of supporting its long-term economic and industrial expansion.

At the international seminar “Small Modular Reactors (SMRs): Strategic Solution for Vietnam’s Energy Security”, jointly organized by Vietnam Economic Times/VnEconomy and Vietnam Atomic Energy Institute in Hanoi earlier this month, Mr. Dmitry Raspopin, Director of Rosatom’s country office in Vietnam, shared insights into Rosatom’s SMR development strategy and the global outlook for next-generation nuclear technologies.

According to Mr. Raspopin, the intergovernmental agreement signed between Vietnam and Russia in March 2026 created an important foundation for a new phase of bilateral cooperation in nuclear energy.

Vietnam, he noted, is emerging not only as a rapidly growing energy market but also as an increasingly important technology and industrial hub in Southeast Asia. This transformation is expected to significantly increase demand for reliable 24/7 electricity supply - particularly for industries such as AI, cloud computing, semiconductors and large-scale data centers.

“Renewable energy without baseload generation cannot fully guarantee the required level of reliability,” the Rosatom representative said.

SMRs are increasingly being viewed as a possible option for countries seeking to expand electricity generation capacity while also reducing carbon emissions and maintaining grid stability.

From nuclear icebreakers to powering the AI era

One of the most notable points in Rosatom’s presentation was its positioning of SMRs not merely as an energy technology, but as foundational infrastructure for the digital economy.

According to Rosatom, AI, data centers, semiconductors and cloud computing all share one common requirement: absolutely stable, uninterrupted electricity supply that is not dependent on weather conditions. This is where SMRs are believed to have advantages over many other energy sources.

Rosatom explained that its SMR technology was developed from reactor systems originally designed for Russia’s nuclear-powered icebreaker fleet - currently the only nuclear icebreaker fleet in the world.

Drawing on more than 400 reactor-years of operational experience in harsh Arctic environments, Rosatom developed the RITM-200 reactor series, which is now used for icebreakers, land-based SMRs and floating nuclear power plants.

The standard land-based SMR configuration includes two RITM-200N reactors with a combined capacity of 110 MW, a fuel cycle of up to six years and a design lifetime of 60 years.

Rosatom considers this particularly suitable for countries with developing power systems or regions that do not yet require massive power generation capacity but still demand high reliability.

Unlike conventional nuclear power projects, which are often associated with multi-billion-dollar investments and lengthy construction timelines, SMRs are being promoted as a more flexible solution with lower capital costs and shorter construction periods.

Importantly, SMRs can be deployed near industrial zones, data centers or coastal areas where electricity demand is growing rapidly but transmission infrastructure remains limited.

Floating “nuclear batteries” and global expansion plans

Rosatom is currently one of the world’s leading exporters of nuclear power technology. Of the 25 nuclear export projects currently under construction worldwide, 22 are being implemented by Rosatom.

The group’s international portfolio now includes 35 large nuclear power units and six SMR units across 11 countries, ranging from China, India and Bangladesh to Hungary, Egypt, Uzbekistan and Kazakhstan.

One of the projects highlighted by Rosatom was the Akademik Lomonosov floating nuclear power plant in Pevek, Russia - currently the world’s only commercially operating floating nuclear power plant.

The facility uses two KLT-40S reactors with a total electrical output of 77 MW. Since entering operation in 2020, it has generated around one billion kWh of electricity by early 2025. According to Rosatom, the plant is expected to meet approximately 84% of local electricity demand from 2026 onward.

Building on that experience, Rosatom is now developing a new generation of “floating nuclear batteries” for international markets. These floating power units are designed as non-self-propelled barges equipped with two RITM-200M reactors and two steam turbines, delivering around 100 MW of electricity.

According to Rosatom, the model is particularly suitable for coastal regions, remote islands, mining areas, locations with weak grid infrastructure and emerging industrial hubs with high electricity demand but limited access to stable power supply.

Another notable aspect is that Rosatom is not only offering technology, but also moving toward long-term power purchase agreement (PPA) models in which the company would operate the facilities throughout their lifecycle.

This reflects a broader shift within the nuclear industry - from selling equipment to providing energy services.

More than electricity: Infrastructure for long-term growth

SMRs are increasingly being viewed not only as an additional power source, but also as a potential catalyst for economic growth and the development of high-tech industries.

According to the figures presented at the conference, a single SMR project could create around 700 jobs during construction and more than 300 permanent jobs during commercial operation. Nuclear projects are also expected to help local businesses integrate more deeply into global industrial supply chains.

As electricity demand continues to rise sharply due to the expansion of AI, data centers and the digital economy, SMRs are increasingly being discussed as a potential tool for supporting decarbonization efforts in developing economies.

Nuclear energy is also regarded as one of the lowest life-cycle greenhouse gas emission sources among large-scale power generation technologies today.

For Vietnam, SMRs are still at an early stage of policy discussion and technology cooperation. However, as power demand is projected to continue rising rapidly in the coming years - especially from high-tech industries and digital infrastructure - next-generation nuclear technologies such as SMRs are beginning to attract greater attention as a possible long-term option for national energy security.

Tác giả tổng hợp từ buổi làm việc trực tiếp với Rosatom -Trọng Hoàng

Recommendations for Vietnam’s next phase of development

Tue, 19 May 2026 03:00:00 GMT

A host of suggestions for ensuring Vietnam’s next phase of development is the best it can be were made by foreign business associations at the formal working session within the 6th Vietnam Connect Forum.

During a working session with Mr. Nguyen Thanh Nghi, Politburo Member, Secretary of the Party Central Committee, and Chairman of the Central Commission for Policy and Strategy, and leaders from ministries and agencies on May 13, representatives from foreign business associations said the country’s next phase of development will depend increasingly on execution, particularly in areas such as administrative reform, policy consistency, workforce readiness, infrastructure, and higher-value investment. They also offered recommendations on improving Vietnam’s business environment.

Addressing the business environment

Among the issues raised, administrative reform and policy consistency emerged as the most immediate concerns, with several representatives arguing that “ease of doing business” will increasingly shape Vietnam’s competitiveness in attracting long-term investment.

Mr. Bruno Jaspaert, Chairman of the European Chamber of Commerce in Vietnam (EuroCham), argued that Vietnam’s future competitiveness no longer lies in offering cheaper electricity or stronger tax incentives, both of which are already relatively attractive within Southeast Asia. Rather, he said, the country should focus on improving the ease of doing business.

Citing EuroCham’s Business Confidence Index, Mr. Jaspaert noted that administrative procedures have consistently remained the top concern among European businesses for the past eight years. Though legal reforms have moved in a positive direction, implementation at the local level remains uneven, he said, with companies in some cases waiting years for refunds as substantial capital remains tied up.

Mr. Ko Tae Yeon, Chairman of the Korean Chamber of Business in Vietnam (KOCHAM), added that lengthy VAT settlement procedures have created cash flow difficulties for many manufacturers, despite VAT being an indirect tax intended to be reimbursed.

Beyond taxation, business associations repeatedly highlighted inconsistencies in regulatory interpretation between localities as a major challenge for long-term investment planning. According to Mr. Jaspaert, practices permitted in one locality may become difficult or impossible in another due to different interpretations of the same legal framework.

Mr. Ko likewise said South Korean investors frequently encounter confusion when policies are applied differently across agencies and localities, making it difficult for businesses to operate with certainty.

Representatives from the Singaporean and US business communities shared similar concerns, while acknowledging progress in recent legal reforms. Mr. Seck Yee Chung, Vice President of the Singapore Chamber of Commerce Vietnam (SingCham), welcomed efforts to improve transparency through revisions to investment regulations, including special investment procedures designed to accelerate project approvals. However, he noted that uncertainties remain regarding project eligibility, technical standards, and implementation. Sub-licenses, particularly for foreign-invested enterprises (FIEs), also continue to take considerable time despite improvements in primary investment approvals, he added.

Meanwhile, Ms. Virginia Foote, Chairwoman of the American Chamber of Commerce in Vietnam (AmCham), said administrative burdens remain relatively high, particularly regarding land lease renewals and differences in how local authorities interpret tax, investment, and land regulations.

Still, she acknowledged growing openness from ministries during consultations on decrees and circulars, describing engagement between authorities and business associations as an important part of improving implementation.

Mr. Denzel Eades, Chairman of the British Chamber of Commerce Vietnam (BritCham), added that predictability, transparency, and consistency in policy execution are essential for attracting long-term foreign capital. “FDI is deployed in a competitive context,” he said, and certainty in the investment environment is often what determines whether international investors commit for the long term.

Building the next growth engine

Beyond administrative reform, foreign business representatives said Vietnam’s next phase of development should focus not only on attracting investment, but also on strengthening domestic capabilities through technology transfer, workforce development, and deeper integration between FIEs and local enterprises. Several representatives argued that the long-term value of FDI should increasingly be measured not only by capital inflows but also by its contribution to Vietnam’s industrial ecosystem.

Mr. Jaspaert emphasized that Vietnam should prioritize building stronger domestic supply chains and encourage investors to contribute technology, expertise, and local sourcing capacity alongside financial investment. “The best ambassadors for attracting more FDI are the investors already here,” he said, adding that Vietnam should ask not only how much capital investors bring but also what technology, skills, and local supplier development they can contribute.

He noted that stronger local ecosystems would make Vietnam more resilient during periods of global disruption, while technology transfer would help generate longer-term value embedded in patents, know-how, and human capital.

Localization was also a major concern for South Korean businesses. According to Mr. Ko, Vietnam’s local sourcing ratio remains relatively low, at around 20 per cent, compared with roughly 40 per cent in several other Asian economies. To help Vietnamese firms better integrate into global value chains, he said the government could provide more practical financial support for domestic enterprises seeking to meet international quality and technology standards.

At the same time, several speakers stressed that workforce readiness will be equally important in absorbing higher-quality investment and technological upgrading. Mr. Ko said stronger collaboration between schools and enterprises is needed to better align education with labor market needs, particularly in engineering and technical fields.

Mr. Jaspaert similarly described education as a form of national infrastructure and one of Vietnam’s strongest long-term competitive advantages. He suggested the country aim to build the strongest education system in Southeast Asia, emphasizing accessibility and affordability.

Additionally, Mr. Seck said Vietnam should move beyond distinctions between FIEs and domestic enterprises and instead focus on building a stronger business ecosystem where local companies can participate more actively in global supply chains. In his view, the government’s role is to create the right environment for businesses to thrive. “Build the stadium, build the pitch, establish the rules, appoint the referees, and businesses will be the players on the field,” he said.

Ms. Foote told the gathering while many international companies are impressed by Vietnamese talent, gaps remain between education outcomes and industry requirements, particularly in engineering, technical, and management capabilities. Strengthening links between education institutions and employers, especially universities and technical training systems, would help Vietnam attract faster and higher-value investment, she said.

Human capital development was also highlighted by Mr. Eades, who pointed to opportunities for deeper international education partnerships, including collaboration between Vietnamese and UK universities to support talent development and cross-border learning.

Energy and infrastructure as enablers

As Vietnam seeks to move up the value chain and attract higher-quality investment, business associations said energy security and infrastructure development will play an increasingly important role in sustaining growth. Several foreign chambers pointed to rising investor demand for renewable energy access, warning that implementation delays and policy uncertainty could constrain Vietnam’s competitiveness in the years ahead.

Ms. Foote said access to reliable and renewable energy has become increasingly important for international investors, particularly those from the US, Europe, and Japan, where environmental requirements are becoming more prominent in investment decisions.

While Vietnam’s offshore energy potential remains significant, she said progress in opening the sector to broader investment has moved too slowly. Energy companies, she added, remain interested in partnering with Vietnamese counterparts to develop offshore wind, solar, onshore wind, and biomass projects. However, she emphasized that the National Power Development Plan VIII (PDP8) will need faster implementation to unlock meaningful investment.

Mr. Eades echoed similar concerns, arguing that energy transition should be viewed not only as an environmental objective but also as an economic and energy security priority. Under PDP8, he noted, Vietnam will require more than $25 billion in annual investment across power projects and grid infrastructure, raising questions over how capital can be mobilized and deployed efficiently.

For investors, one of the biggest priorities is a clear route to market and certainty over project timelines, particularly regarding when projects can realistically achieve commercial operation, he said. He also stressed the importance of creating financing frameworks capable of supporting large-scale infrastructure projects, particularly through non-recourse project finance, which could help attract deeper pools of international capital for LNG and offshore wind developments.

Grid infrastructure was another recurring concern. According to Mr. Eades, clearer mechanisms are needed to allow greater private sector participation in transmission and grid development, alongside continued progress on the Direct Power Purchase Agreement (DPPA) mechanism and regulatory frameworks for battery energy storage.

South Korean businesses similarly highlighted uncertainty in renewable energy investment. Mr. Ko said many investors remain hesitant to commit capital due to unclear implementation frameworks, suggesting Vietnam consider regulatory sandbox mechanisms that would allow policies to be tested and adjusted more quickly.

Beyond energy, infrastructure connectivity and urban planning were also identified as critical factors in supporting future investment. Mr. Seck pointed to improvements in transport connectivity in northern Vietnam but said stronger links between airports, industrial parks, and seaports, particularly in the south, remain necessary to facilitate the efficient movement of people and goods.

He also stressed the importance of township planning alongside industrial development, arguing that attracting talent to industrial parks will require more comprehensive ecosystems, including housing, healthcare, and supporting services. “We cannot have cities or provinces that are simply large factory zones,” he said.

For sectors such as data centers and other high-tech industries, he continued, greater clarity around zoning, land use planning, and long-term development frameworks will also be increasingly important for investor confidence.

Unlocking capital

Alongside improvements to the business environment and infrastructure, business associations said Vietnam will need deeper pools of capital and stronger market institutions to support its long-term growth ambitions.

Mr. Eades said international capital will play a critical role in helping Vietnam achieve double-digit growth and its goal of becoming a high-income economy by 2045, noting that domestic capital markets alone are unlikely to be sufficient. “The priority now is for that strategic direction to be supported by an enabling environment that allows foreign capital to be deployed and to flow,” he said.

In an increasingly competitive global investment landscape, predictability and transparency remain key considerations for investors deciding where to allocate long-term capital, he went on. He also expressed support for Vietnam’s International Financial Center initiative, describing it as an opportunity not only to attract additional capital but also to introduce more sophisticated financial products and innovation into the economy.

VET-Linh Tong

Construction begins on strategic Vinh–Thanh Thuy expressway in central Vietnam

Tue, 19 May 2026 02:00:00 GMT

Total investment estimated at nearly VND23.94 trillion (approximately $940 million).

Authorities in central Nghe An Province on May 18 officially broke ground on the Vinh–Thanh Thuy Expressway, a major transport infrastructure project expected to play a strategic role in regional connectivity and economic development in central Vietnam.

The expressway is considered a key component of the broader Hanoi–Vientiane Expressway corridor, linking directly with the country’s eastern North–South Expressway, the Ho Chi Minh Highway, and Vietnam’s national transport network. It is also expected to strengthen the East–West economic corridor between Vietnam and Laos.

According to the approved plan, the expressway will stretch approximately 60 kilometers and pass through nine communes in Nghe An Province. The project will feature four fully completed traffic lanes, with land clearance prepared for future expansion to six lanes. Total investment is estimated at nearly VND23.94 trillion (approximately $940 million).

Once completed, the expressway is expected to expand development opportunities, enhance regional connectivity, and boost trade, tourism, logistics, and investment attraction. The project is also seen as contributing to national defense and security while further strengthening the special friendship and comprehensive cooperation between Vietnam and Laos.

VnEconomy-Nguyễn Thuấn

Vietnamese durian exports accelerated, eyeing market of billions

Tue, 19 May 2026 01:08:00 GMT

It is anticipated that by July this year, Indian authorities will finalize the necessary procedures to permit durian imports from Vietnam.

In the first quarter of 2026, Vietnamese durian exports witnessed a staggering 230% year-on-year increase, further asserting the fruit's growing appeal in international markets.

Beyond China, high-standard markets such as the US, South Korea, Australia, and Japan all recorded impressive growth. Notably, Vietnamese durian is expected to officially penetrate the Indian market starting in July 2026, as the industry aims for a total export target of $4.5 billion this year.

According to Ms. Nguyen Thi Thu Huong, Deputy Director of the Department of Plant Production and Protection (Ministry of Agriculture and Environment), Vietnamese durian has successfully paved its way into India.

It is anticipated that by July this, Indian authorities will finalize the necessary procedures to permit durian imports from Vietnam. This is a highly positive signal for the industry, given that India is the world’s second-largest billion-person market, trailing only China. Overcoming the technical barriers to access this market demonstrates that the capacity of Vietnamese durian to meet international standards is steadily improving.

“Opening the door to India does more than just unlock opportunities in a billion-person market; it serves as evidence of the Vietnamese durian industry’s transformation toward professionalism, quality, and long-term development,” Ms. Huong stated.

She further noted that while it may take time for Indian consumers to become accustomed to the flavor of Vietnamese durian, the potential is vast. Expanding export markets will help diversify outlets, reduce reliance on traditional markets, and create room for sustainable growth.

According to the Department of Plant Production and Protection, while expanding acreage and output were once the top priorities, “quality” has now become the central focus of the entire industry. In many regions, farmers have begun shifting their cultivation habits—emphasizing production logs, utilizing fertilizer rationally, controlling chemical residues, and strictly adhering to technical processes required for export.

In tandem with these efforts, the system of growing area codes and packing facility codes is being refined, acting as a “passport” for Vietnamese agricultural products to guarantee transparency and traceability in the global market. Simultaneously, businesses are accelerating investments in cold storage, freezing lines, quality management systems, and the digitalization of supply chains.

The durian industry is also moving toward sustainable farming models by focusing on soil improvement and reducing the use of chemical fertilizers and pesticides. These measures aim to lower input costs while maintaining productivity and quality. This shift is considered a prerequisite for entering the carbon credit market, creating added value through low-emission production activities.

Vneconomy-Chu Minh Khôi

Strategic tech must deliver high-value products and boost productivity: Gov't leader

Mon, 18 May 2026 23:35:00 GMT

Prime Minister Le Minh Hung emphasized that the development of science and technology, innovation, digital transformation, and strategic technology is the definitive path toward rapid and sustainable national growth in this new era of development.

Prime Minister Le Minh Hung has demanded that the development of strategic technology must result in specific products with high added value, commercialization potential, and high localization rates. These must contribute substantively to the economy's productivity.

"Enterprises, institutes, and universities must become the heart of the innovation ecosystem," he made the remarks at a ceremony celebrating Vietnam Science, Technology, and Innovation Day and the Conference on the Deployment of Strategic Technology on May 18.

"Ministries and sectors must promptly "place orders" for core technologies and strategic products to serve management and production, with a determination to form products for key sectors within this year."

These form one of the several key orientations that Vietnam must focus in the coming time in realizing the goals of becoming a modern industrial country by 2030 and a high-income developed nation by 2045.

Secondly, he said, an effective innovation ecosystem must be built. In this model, the State creates the legal institutions; research institutes and universities generate knowledge, technology, and human resources; and enterprises serve as the center for application and commercialization. The State will focus on supporting businesses to improve their capacity to absorb and master technology. The goal is to form Vietnamese technology enterprises with international competitiveness that can lead in strategic technological fields.

Thirdly, international cooperation must be strengthened. Mechanisms are needed to ensure that foreign-invested enterprises in Vietnam transfer technology and participate in strategic tech chains. Vietnam should also leverage its global network of overseas Vietnamese intellectuals and experts.

Fourthly, particular importance must be placed on high-quality human resources. There must be "exceptional mechanisms" to discover, train, attract, and employ talent—especially leading experts, young scientists, and technological geniuses. This task has been assigned to the Ministry of Education and Training and the Ministry of Science and Technology. Universities and institutes must strive to become strong research and startup hubs.

Fifthly, there must be a drastic shift in mindset—moving from "performing for form's sake" to focusing on substantive products, value, and efficiency. Every science and technology program must aim to solve the country’s major challenges and directly serve citizens and businesses. Output products, practical efficiency, and the level of commercialization will be the primary metrics for evaluating success.

According to the Prime Minister, Vietnam is currently refining its institutional frameworks, developing strategic technologies and products, training human resources, and establishing financial mechanisms. These policy breakthroughs aim to further promote science, technology, innovation, and digital transformation. The goal is to effectively implement the Politburo's Resolution 57 and, crucially, to enhance the productivity, quality, and competitiveness of the national economy.

PM Hung emphasized that "we are living in an era where science, technology, and innovation evolve daily amid intensifying global competition. Nations with high competitive capacity will seize opportunities to rise and achieve rapid, sustainable development. With the goal of becoming a modern industrial country by 2030 and a high-income developed nation by 2045, science, technology, innovation, and digital transformation are identified as key drivers—the "golden key" and vital factors in realizing the country's development aspirations."

He affirmed that the development of science and technology, innovation, digital transformation, and strategic technology is the definitive path toward rapid and sustainable national growth in this new era of development.

"The Government is confident that with Vietnamese intellect and resilience, combined with the rising aspirations of the Vietnamese people, we will undoubtedly master strategic technologies, bolster our national self-reliance, and assert Vietnam's position in the digital age. We must act with the highest resolve to successfully achieve this objective," the Government leader stated.

He called upon intellectuals, scientists, experts, entrepreneurs, the tech business community, and society at large to continue fostering a strong sense of patriotism, a dedication to service, and a spirit of innovation.

He also proposed that the State effectively perform its roles in providing guidance, fostering connections, placing orders, supporting research and development (RD), and acting as the "first buyer" for strategic technology products once they meet the necessary requirements.

The Government pledges to always stand by, listen to, and resolve the challenges faced by the community, while creating the most favorable conditions for science, technology, innovation, and digital transformation to serve as the true engines of national development in the new era.

Vneconomy-Bạch Dương

Government team established for international economic and trade negotiations

Mon, 18 May 2026 23:30:00 GMT

The move aiming to strengthen coordination and oversight of Vietnam’s international negotiations, agreements, and commitments.

The Prime Minister has decided to establish a Government Delegation for international economic and trade negotiations to strengthen coordination and oversight of Vietnam’s international negotiations, agreements, and commitments.

The delegation, to be headed by the Minister of Industry and Trade, shall assist the Prime Minister in coordinating ministries, agencies, and localities in negotiating, signing, ratifying, and implementing international economic and trade treaties and agreements.

It is responsible for advising the Prime Minister in formulating overall negotiation strategies and plans in accordance with Vietnam’s national interests and socio-economic development orientations.

The delegation shall consult with business communities and relevant stakeholders during the negotiation process in a bid to protect Vietnam’s economic and trade interests.

The delegation shall also coordinate with ministries and agencies in monitoring, evaluating and proposing measures to address issues arising in the implementation of international economic and trade treaties and agreements.

VnEconomy-Dũng Hiếu

Thai Nguyen to kick off multiple major projects on May 19

Mon, 18 May 2026 23:00:00 GMT

The ceremonies are organized to celebrate the 136th anniversary of President Ho Chi Minh’s birthday (May 19, 1890 – May 19, 2026).

Multiple localities across Thai Nguyen province, northern Vietnam, will simultaneously hold groundbreaking and commencement ceremonies for five major projects with a total investment exceeding VND7.345 trillion (nearly $280 million) at 8am on May 19.

The ceremonies are organized to celebrate the 136th anniversary of President Ho Chi Minh’s birthday (May 19, 1890 – May 19, 2026).

These are critical projects of high political, economic, and social significance, offering practical benefits to both the province and the wider region.

During this launch, the province will break ground on three large-scale projects, each with an investment capital of trillions of Vietnamese dong (VND):

The Quan Chu 2 Golf and Sports Cultural Complex invested by Golf Le Mont Investment JSC covers nearly 90 ha (including an 18-hole golf course) with a total investment of VND1 trillion ($38 million).

The Tea Factory Complex and Organic Tea Material Area is invested by Quan Chu Tea JSC, spanning 335 ha with a total investment of VND1.2 trillion ($45.6 million).

The Nam Tien 2 Urban Area is invested by Saigon Real Estate Corporation, covering 35.286 ha with a total investment of VND3,825 billion ($145 million).

Additionally, Thai Nguyen will commence construction on two other key projects.

The 3.18 ha - Linh Son Inter-level Primary and Middle School project is invested by Military Region 1, with a total investment of VND105 billion.

And the City Home Urban Area, covering 48.14 ha, is invested by a consortium consisting of BNB Group JSC and CIPUTRA Thai Nguyen Co., Ltd. with a total investment of over VND1.215 trillion ($46 million).

Vneconomy-Phan Nam

Vietnam aims for 75% harmonization with international standards by 2030

Mon, 18 May 2026 09:30:00 GMT

A notable goal is to ensure that 50% of newly developed Vietnamese standards involve the participation of businesses, associations, research institutes, and universities.

Under the newly approved National Standard Strategy for the 2026–2035 period, signed by Deputy Prime Minister Ho Quoc Dung, Vietnam aims to have 75% of its national standards harmonized with international, regional, or developed nations' standards by 2030.

The strategy also sets a target for 100% of the sectors within the Vietnam Standards Classification Framework to be compatible with Level 2 of the International Classification for Standards (ICS) established by the International Organization for Standardization (ISO).

Regarding standards related to strategic technology development and key economic sectors, Vietnam strives to have representatives participating in 60% of the corresponding technical committees of ISO, the International Electrotechnical Commission (IEC), and the International Telecommunication Union (ITU). Furthermore, Vietnamese technical committees aim to secure representation within IEC technical committees specifically related to smart city development.

To enhance productivity, quality, and the competitiveness of Vietnamese goods, the strategy targets an annual average of 50,000 certificates of conformity with standards and technical regulations.

A notable goal is to ensure that 50% of newly developed Vietnamese standards involve the participation of businesses, associations, research institutes, and universities. The government will also deploy a program to support at least 50,000 small and medium-sized enterprises (SMEs) in accessing and applying national standards through financial assistance, on-site training, and sector-specific consultancy.

Looking toward 2035, the strategy aims to increase the harmonization rate to 80% to further improve the global market accessibility of Vietnamese products.

Other key targets for 2035 include: ensuring 60% of national standards are developed based on the practical demands of key markets; allocating 30% of new standards to emerging fields, specifically strategic technologies, the digital economy, the green economy, and sustainable development; and reaching an annual average of 70,000 certificates of conformity to continue driving national productivity and quality.

Vneconomy-Thanh Xuân

Construction begins on $2.2 bln Quynh Lap LNG power plant

Mon, 18 May 2026 09:00:00 GMT

The project is being developed by a consortium comprising PetroVietnam Power Corporation (PV Power), SK Innovation (South Korea), and Nghe An Sugar Limited Liability Company (NASU).

The Nghe An Provincial People’s Committee, in collaboration with a consortium of investors, held a ceremony on May 18 to announce and commence the technical infrastructure construction of the Quynh Lap LNG Thermal Power Plant.

As a key power project under Vietnam’s Power Development Plan VIII (PDP8), the plant represents a total investment of over VND59.37 trillion (approximately $2.25 billion).

The power plant will have a total capacity of 1,500 MW, featuring two combined-cycle gas turbine units. The project is expected to occupy approximately 60 hectares of land and 100 ha of sea surface.

The project is being developed by a consortium comprising PetroVietnam Power Corporation (PV Power), SK Innovation (South Korea), and Nghe An Sugar Limited Liability Company (NASU).

According to the development plan, the plant is scheduled for completion and commissioning between 2026 and 2030. Once operational, it will become a vital LNG gas-to-power hub for the country's North Central region.

The project is identified as a strategic priority for national energy development, directly contributing to the implementation of the Politburo’s Resolution No. 70 on ensuring national energy security.

Furthermore, it serves as a major economic driver within the Nghe An Provincial Master Plan for the 2021–2030 period, with a vision toward 2050, opening new development opportunities for the northern districts of the province.

Speaking at the ceremony, Chairman of the Provincial People’s Committee, Mr. Vo Trong Hai, emphasized that the Quynh Lap LNG Thermal Power Plant will not only provide a stable, modern, and environmentally friendly electricity source for the national grid but also act as a powerful catalyst for the growth of local industry, services, logistics, and seaport infrastructure.

Vneconomy-Nguyễn Thuấn

Vietnam issues list of 100 high-tech products prioritized for development

Mon, 18 May 2026 08:18:00 GMT

Key highlights include AI-driven systems, equipment, and software for identification, analysis, forecasting, and control; Platforms supporting AI research, development, and application; Big Data-based personalized learning software; STEAM; and UAVs among others.

Under Prime Ministerial Decision No. 23/2026/QD-TTg, signed by Deputy Prime Minister Ho Quoc Dung on May 15, the "List of High Technologies Prioritized for Investment and Development" and the "List of High-Tech Products Encouraged for Development" have been announced.

Under the decision, 70 technologies are prioritized for investment and development, including: Artificial Intelligence (AI); Big Data and data analytics; Cloud computing, edge computing, distributed computing, and high-performance computing; Internet of Things (IoT); Blockchain technology; Quantum technology; Renewable energy, clean energy, and advanced energy storage; AI-integrated real-time systems for monitoring, forecasting, and early warning of natural disasters; and Next-generation microbiology.

Additionally, the Decision approves 100 products categorized as high-tech products encouraged for development.

Key highlights include: AI-driven systems, equipment, and software for identification, analysis, forecasting, and control; Platforms supporting AI research, development, and application; Big Data-based personalized learning software; Smart educational and training systems for STEAM (Science, Technology, Engineering, Arts, and Mathematics); Unmanned Aerial Vehicles (UAVs); New energy and eco-friendly vehicles; Biopharmaceuticals for medical, pharmaceutical, and agricultural applications; and Next-generation vaccines, medical biologicals, and diagnostic biologicals.

This Decision will take effect on July 1, 2026, superseding Prime Ministerial Decision No. 38/2020/QD-TTg of December 30, 2020.

Vneconomy-Hạ Chi

Herbalife is honored as one of the Top 10 Pioneering FIEs For Pepople’s Life at Golden Dragon Awards 2026

Mon, 18 May 2026 08:00:00 GMT

Herbalife Vietnam was recognized among the Top 10 Pioneering FIEs for People’s Life at the Golden Dragon Awards 2026, reflecting its continued presence in Vietnam’s health and wellness market.

Herbalife named among Top 10 Pioneering FIEs for People’s Life at Golden Dragon Awards 2026

Herbalife Vietnam was recognized among the Top 10 Pioneering FIEs for People’s Life in the Sustainable Brands Growth category at the Golden Dragon Awards (GDA) 2026, organized by Vietnam Economic Times / VnEconomy. The awards recognize foreign-invested enterprises (FIEs) for business performance, operational effectiveness, and contributions to economic and social development.

The Golden Dragon Awards assess participating enterprises based on five criteria: business performance, brand development, corporate social responsibility, sustainability practices, and digital transformation. From hundreds of participating businesses, 30 enterprises were selected for recognition at this year’s awards ceremony.

Mr. Nguyen Thanh Dat, Director of Senior Manager, Corporate Communication at Herbalife Vietnam, at the awards ceremony in Hanoi.

Mr. Vu Van Thang, General Manager for Herbalife Vietnam and Cambodia, stated: " Being honored with this prestigious recognition has been another indication of the trust and support from our customers and valued stakeholders for the Herbalife brand and our nutritional products. By providing science-based products combined with direct support from our Independent Members, we continue to help more individuals to embrace healthy, active lifestyles and reach their wellness goals. This is aligned with our strong commitment to nourishing the health and well-being of people and communities in Vietnam”.

Operating in Vietnam since 2009, Herbalife Vietnam has been included in the VNR500 ranking of Vietnam’s largest companies by Vietnam Report for seven consecutive years. The company has also been recognized by the Vietnam Intellectual Property Association among the Top 10 Famous Trademarks in Vietnam.

In addition, Herbalife has received the Golden Product for Public Health Award from the Vietnam Association of Functional Food for ten consecutive years. In Vietnam, the company currently offers ten product categories, including health supplements and weight management, immune health, digestive health, heart health, bone and joint health, eye health, fitness and energy, skin and hair health, sleep and relaxation support, and products for men.

About Herbalife Ltd.

Herbalife (NYSE: HLF) operates in the health and wellness sector and provides nutrition products in more than 90 markets through a network of independent distributors.

Synergy promotion for FDI, domestic enterprises encouraged

Mon, 18 May 2026 07:30:00 GMT

Member of the Party Central Committee and Deputy Prime Minister Nguyen Van Thang delivered a keynote address at the 6th Vietnam Connect Forum, highlighting that new-generation FDI should work with Vietnam to create new value and capabilities.

The Vietnam Connect Forum 2026, with the theme “Building Integrated Partnerships Between Foreign-Invested and Domestic Economic Sectors for Breakthrough Growth in the New Era”, is especially meaningful as Vietnam enters a new phase of development that requires faster, higher-quality, more sustainable, and more resilient growth in response to regional and global challenges.

On behalf of the government and the Prime Minister, I greatly appreciate the Vietnam Economic Association, the Institute for Policy and Strategy Studies, and Vietnam Economic Times / VnEconomy for jointly organizing this highly-practical and meaningful forum. I also sincerely thank the business community, investors, and domestic and international associations for their participation, partnership, and valuable contributions to Vietnam’s development over the years.

Bright spot amid rising competition

The world is entering a period of profound transformation marked by rapid, complex, and unpredictable changes. Strategic competition among major powers is intensifying, while supply chain restructuring, green transition, digital transformation, AI, semiconductors, data, and strategic technologies are fundamentally reshaping the way countries compete and cooperate economically.

Against this backdrop, competition for international investment has also changed significantly. Whereas low labor costs and investment incentives once served as the main advantages, investors today increasingly prioritize institutional quality, policy stability, strategic infrastructure, high-quality human resources, green energy, data infrastructure, innovation capacity, and the reliability and stability of the investment environment.

For Vietnam, this presents both challenges and major opportunities to reposition its role in regional and global value chains and renew growth drivers through science and technology, innovation, digital transformation, green transition, and private sector development.

In 2025 and the opening months of 2026, despite continued global volatility and uncertainty, Vietnam’s socio-economic performance achieved important and broad-based results. GDP growth reached approximately 8.02 per cent, with the economy valued at around $514 billion. Growth momentum continued in the first quarter of 2026, at an estimated 7.83 per cent. Macro-economic stability has largely been maintained, inflation kept under control, and major economic balances ensured, while budget revenues, trade, investment, and consumption continued to grow in a positive manner.

Notably, the foreign-invested sector has remained a major bright spot in the economy. To date, Vietnam has more than 46,500 active FDI projects with total registered capital exceeding $543 billion, while cumulative disbursed capital has reached approximately $357.6 billion. The FDI sector currently contributes more than 20 per cent of GDP, accounts for around 70 per cent of exports, and creates jobs for millions of workers.

At a time when global FDI flows have declined in many regions, Vietnam continues to rank among Asia’s leading FDI destinations. This reflects the confidence of the international business community in its development prospects, socio-political stability, and investment environment.

In recent years, Vietnam has also become a destination for major corporations expanding investments in electronics, semiconductors, high technology, energy, logistics, finance, innovation, and modern services, helping form new manufacturing ecosystems and supply chains in the country.

New phase of development

However, alongside these achievements, we must frankly acknowledge that the quality and effectiveness of links between the FDI sector and the domestic economy have yet to meet expectations. Many Vietnamese businesses remain concentrated in low value-added segments, localization rates in some industries are still limited, and the absorptive capacity of domestic enterprises has yet to keep pace with global supply chain requirements.

While Vietnam has achieved positive results in attracting investment capital, its new phase of development demands higher-quality cooperation, greater spillover effects, and stronger synergies between the FDI sector and the domestic economy. This is precisely the focus of today’s forum.

Vietnam’s consistent policy is to regard the foreign-invested sector as an indispensable and important part of the national economy, encouraged to develop in the long term on an equal basis and in healthy cooperation and competition with other economic sectors.

However, in this new phase of development, Vietnam is decisively shifting to “selective, high-quality, effective, and sustainable investment cooperation.”

We evaluate investors not only by how much capital they bring to Vietnam but more importantly by what technologies they bring, what added value they create, how they contribute to workforce development, how many Vietnamese enterprises they integrate into supply chains, and how they support green transition, digital transformation, and the strengthening of the economy’s internal capabilities.

New-generation FDI should not come to Vietnam merely for production or market access, but should partner with Vietnam to create new value, new capabilities, and a stronger position in global value chains.

Five major directions

With this spirit, the Vietnamese Government will focus on the following major priorities in the time to come.

First, continue institutional reforms and significantly improve the business and investment environment, shifting from a management mindset to one centered on development facilitation.

The government will continue making substantive reductions to administrative procedures and business conditions, deepen decentralization alongside stronger oversight, accelerate comprehensive digitalization, implement effective one-stop-shop mechanisms, and improve policy transparency, stability, and predictability.

Second, reform foreign investment attraction toward a more selective approach, prioritizing quality, technology, innovation, value addition, land-use efficiency, environmental protection, and links with domestic enterprises.

Vietnam will prioritize investment projects in semiconductors, electronics, AI, data, biotechnology, pharmaceuticals, clean energy, new materials, modern logistics, financial services, innovation, and other strategic technology industries.

Third, strongly develop domestic enterprises and support industries to enable Vietnamese companies to participate more deeply in global value chains.

We regard this as a long-term strategic mission. The State will continue supporting enterprises in improving governance, quality standards, technological innovation, digital transformation, access to financing, and connections with multinational corporations.

The objective is not only to increase the number of businesses participating in supply chains but also to gradually cultivate Vietnamese enterprises capable of becoming Tier 1 and Tier 2 suppliers in regional and global value chains.

Fourth, focus on developing strategic infrastructure and high-quality human resources to support new-generation FDI attraction.

The government is accelerating major transport infrastructure projects, logistics systems, energy and digital infrastructure, data infrastructure, and next-generation industrial parks, while also strengthening collaboration between the government, educational institutions, and investors to train talent for high-tech and strategic industries.

Fifth, improve the effectiveness of State management over the FDI sector, ensuring harmony between the interests of the State, investors, and citizens, while safeguarding economic independence, security, and sustainable development.

We are committed to creating the most favorable conditions for investors operating legally, efficiently, and sustainably in Vietnam. At the same time, we will firmly address transfer pricing, trade fraud, environmental violations, outdated technologies, and intellectual property infringements.

Vietnam is entering a new phase of development, with the aspiration of becoming a high-income developed country by 2045. To achieve this goal, it needs a new growth model based on innovation, technology, high-quality human resources, and effective synergies among economic sectors.

We hope the foreign business community and investors will continue to accompany Vietnam for the long term, viewing it not merely as an investment destination but as a strategic development partner in global value chains.

At the same time, we encourage Vietnamese enterprises to proactively innovate, strengthen their governance and technological capabilities, and deepen cooperation to participate more fully in international production networks and supply chains.

The Vietnamese Government remains committed to standing alongside, listening to, and acting with the business community, while continuing to build a transparent, stable, safe, and internationally-competitive investment environment.

I firmly believe that through cooperation and synergy between the foreign-invested sector and the domestic economy, Vietnam will create new momentum for rapid and sustainable growth in this new phase of development.

VET-

Da Nang strengthens strategic cooperation with Japan

Mon, 18 May 2026 07:14:00 GMT

To date, Japanese investors have launched more than 300 projects in the central city, with total registered capital reaching approximately $1.22 billion.

The People’s Committee of Da Nang city, central Vietnam, has approved a cooperation promotion plan with Japanese partners for the 2026–2030 period, aiming to deepen comprehensive and sustainable ties in a new phase of development.

According to the city’s Department of Foreign Affairs, the central city has established official friendship and cooperation agreements with six Japanese localities, including those known for their strengths in industry, urban development, and technology. These partnerships are expected to facilitate greater exchanges in expertise and technology while opening up new investment opportunities.

Japan remains one of Da Nang’s key strategic partners in socio-economic development. To date, Japanese investors have launched more than 300 projects in the central city, with total registered capital reaching approximately $1.22 billion, primarily in manufacturing, information technology, services, and infrastructure—sectors considered vital to the city’s economic growth.

Trade between the two sides has also remained robust. In 2025, Da Nang’s exports to Japan reached around $1 billion, while imports totaled approximately $488 million, reflecting strong commercial ties and a balanced trade relationship.

Japanese official development assistance (ODA) has also played a significant role in improving urban infrastructure, environmental management, transport, and smart city development.

Meanwhile, tourism cooperation continues to recover strongly, with more than 221,000 Japanese visitors arriving in Da Nang in 2025, accounting for 3.8% of the city’s total international arrivals.

VnEconomy-Ngô Anh Văn

International dairy and beverage expos set for Hanoi in late May

Mon, 18 May 2026 03:30:00 GMT

The events expected to provide businesses with opportunities to expand market access, strengthen international partnerships, and gain broader exposure to advanced technologies shaping the future of the food and beverage industry.

A series of international exhibitions specializing in dairy, ice cream, milk tea, and modern beverages is scheduled to take place in Hanoi from May 28 to 31.

This year’s exhibition lineup will feature three major events: the 5th International Dairy and Dairy Products Exhibition in Vietnam (Vietnam Dairy 2026), the Vietnam Ice Cream Expo, and the Vietnam Milk Tea and Beverage Innovation Expo, according to the Vietnam News Agency.

The exhibitions will host 250 booths, showcasing products and brands from a wide range of countries and territories, including Australia, Belgium, Taiwan (China), the Netherlands, the US, the Republic of Korea, Ireland, Japan, New Zealand, France, Sweden, Switzerland, China, and Vietnam.

Participants will present the latest products and technologies across diverse sectors, including dairy and dairy-based products, ice cream, milk tea, modern beverages, processing and packaging equipment, supply chain solutions, ingredients and food additives, testing and quality control systems, food safety standards, raw materials, and sustainable development models.

The events are expected to provide businesses with opportunities to expand market access, strengthen international partnerships, and gain broader exposure to advanced technologies shaping the future of the food and beverage industry.

VNA-Van Nguyen

Strategic orientations for development

Mon, 18 May 2026 02:00:00 GMT

Mr. Nguyen Thanh Nghi, Politburo Member, Secretary of the Party Central Committee, and Chairman of the Central Commission for Policy and Strategy, delivered remarks at a working session with the FDI community held within the 6th Vietnam Connect Forum on May 13 in Hanoi.

The 14th National Congress of the Communist Party of Vietnam set the goal that, by 2030, Vietnam will become a developing country with modern industry and upper-middle income status, and by 2045 will rise to become a developed, high-income country.

To realize these strategic objectives, in the spirit of self-reliance and resilience, Vietnam must mobilize and unlock development resources while strongly leveraging both internal and external strengths. External resources are an important factor in enhancing internal capacity, in which the synergy between the domestic economic sector and the foreign-invested sector plays a particularly important role.

Four key issues

From the opinions raised by businesses at the working session held ahead of the Vietnam Connect Forum 2026 on the morning of May 13, we observed four key issues emerging.

First, the foreign business community continues to demonstrate positive confidence in Vietnam’s investment and business environment, development prospects, and the country’s direction for improving the investment and business climate in the coming period.

Second, investment trends in Vietnam are undergoing a clear shift, in line with the direction set out in the Resolution from the 14th National Party Congress for the 2026-2031 development period. This shift is toward sectors with high technological content, innovation, and added value, such as semiconductors, AI, data, digital technology, green technology, renewable energy, smart logistics, and international finance.

Vietnam has a significant opportunity to capitalize on this trend while also confronting challenges in meeting new requirements and seizing opportunities to participate more deeply in global value chains.

Third, regarding links between the FDI sector and domestic enterprises, this is an important issue closely associated with the direction of Vietnam’s self-reliant and resilient development in the new phase of development.

After nearly 40 years of reform, the FDI sector has played a highly-important role in the economy, contributing to export growth, State budget revenues, investment model transformation, job creation, and the enhancement of Vietnam’s international standing.

However, compared with expectations and development requirements, technology spillover effects, localization rates, and the participation of Vietnamese enterprises in global supply chains remain limited. The effectiveness of links between the FDI sector and domestic enterprises has yet to meet requirements for enhancing the capabilities of Vietnamese businesses and promoting their more substantive participation in global value chains.

Accordingly, the requirement of the new phase of development is to build an ecosystem of close links between domestic enterprises and FDI enterprises. This is also one of the major orientations currently being studied and finalized, and will be reflected in a new Politburo resolution on the development of the foreign-invested economic sector, which is expected to be issued in the near future.

Under this approach, the overarching direction is to develop the foreign-invested economic sector into an important component of an independent and self-reliant economy, closely linked with the domestic economic sector, while prioritizing quality, efficiency, technology, and spillover effects as the leading criteria.

The draft resolution on FDI also clearly identifies strategic orientations for FDI attraction, including the selective attraction of high-tech projects; encouraging the establishment of research centers in Vietnam; promoting technology transfer; developing support industries; enhancing the capabilities of Vietnamese enterprises; fostering deeper and more substantive participation in global value chains; and continuing institutional and administrative procedure reforms, alongside improving human resource quality.

Fourth, attention was drawn to the foundational issues that require continued improvement in the time to come, particularly those related to the policy and legal framework aimed at effectively attracting new-generation FDI inflows and enhancing the operational efficiency of FDI enterprises.

Areas highlighted include legal and policy frameworks related to land, planning, investment, construction, trade, and other relevant sectors. Under Conclusion No. 18-KL/TW from the 2nd Plenum of the 14th Party Central Committee, Vietnam’s legal system will undergo a comprehensive review, with the Ministry of Justice assigned to complete this task in 2026. Revisions to implementing regulations and guidelines for the Land Law are also expected to be completed this year.

Regarding controlled pilot mechanisms, or sandboxes, in the context of rapid technological and business model changes, ministries, sectors, and localities with development potential have been tasked with submitting proposals in the second quarter of 2026.

The review and adjustment of planning to ensure consistency and coherence in serving investment needs, particularly land-use planning, has also been assigned for completion in the second quarter, both to ensure effective governance and to facilitate investment attraction while maximizing development potential.

Further reforms

In terms of administrative reform, Conclusion No. 18 calls for the modernization of State governance methods, the full digitalization of administrative procedures in the digital environment, and enhanced data connectivity and sharing. The stated objective is to position Vietnam’s investment environment among the Top 3 in ASEAN and within the Top 30 most attractive investment destinations globally by 2028.

The government is also targeting a 50 per cent reduction in administrative processing times and compliance costs this year compared to 2024, while removing unnecessary business conditions and improving policy predictability.

In addition, emphasis has been placed on improving policy stability and predictability; developing high-quality human resources to support the objective of double-digit economic growth during the 2026-2031 period; and ensuring energy, logistics, and digital infrastructure as foundations for growth.

The Politburo has issued Resolution No. 70 on ensuring national energy security, while assigning tasks related to finalizing mechanisms for offshore wind power and LNG development, as well as removing bottlenecks in renewable energy development.

Regarding financial market reform and the expansion of foreign ownership limits, the direction identified is to consider increasing foreign ownership caps in sectors that do not affect national security, while implementing comprehensive reform plans for Vietnam’s financial market.

The Central Commission for Policy and Strategy proposed maintaining a mechanism for regular meetings and exchanges to continue listening to feedback from the business community, including FDI enterprises. Through coordination with central ministries and agencies, this mechanism would support further research and improvements to institutions and policies, thereby advising the Politburo and the Secretariat on enhancing the investment and business environment, serving the objectives of rapid and double-digit growth during the 2026-2031 period and realizing the 2045 goal of transforming Vietnam into a developed, high-income country.

VET-

Ha Tinh unveils revised master plan for Cau Treo Border Gate EZ through 2045

Mon, 18 May 2026 01:20:00 GMT

Covering over 56,685ha, the EZ in the central province occupies a strategic location bordering Bolikhamsai Province in Laos, with direct access to key transportation routes in Vietnam’s north central region.

Authorities of central Ha Tinh province has announced a revised master plan for the Cau Treo International Border Gate Economic Zone, a move expected to unlock major opportunities for commercial real estate, logistics, services, and urban development in the province’s western border region.

The plan was approved by the Prime Minister in March, 2026.

Covering more than 56,685 hectares across Son Kim 1, Son Kim 2, and Son Tay communes, the EZ occupies a strategic location bordering Bolikhamsai Province in Laos, with direct access to key transportation routes in Vietnam’s north central region.

At the heart of the project is a 23,411-hectare core area, designated for nine functional subzones focused on trade, services, logistics, tourism, agriculture and forestry, industry, and urban development. The zone is expected to serve as a foundation for future service-oriented urban areas, logistics hubs, and cross-border commercial complexes.

The revised plan is divided into two phases, with short-term targets through 2030 and a long-term vision to 2045. Authorities aim to transform Cau Treo into a modern, dynamic international border economic zone and a major regional center for trade and cargo transit.

VnEconomy-Nguyễn Thuấn

Base salary and pensions to increase from July 1

Mon, 18 May 2026 00:00:00 GMT

The base salary for public employees and armed forces will raise to VND2.53 million ($96.2) per month.

The Government has decided to increase base salary for public employees and armed forces VND2.53 million ($96.2) per month from VND2.34 million ($88.9) from July 1, 2026, according to the Government's latest Decree No. 161/2026/ND-CP.

The base salary will be the basis for calculating monthly salaries for cadres, civil servants, and public employees by multiplying it by their corresponding coefficient.

The Government on May 15 also issued Decree No. 162/2026/ND-CP regarding the adjustment of pensions, social insurance allowances, and monthly allowances. Effective from July 1 this year, monthly pensions and social insurance benefits will increase by 8%.

VnEconomy-Nhật Dương

HCMC approves master plan outline with 100-year vision

Sun, 17 May 2026 23:00:00 GMT

Strategically, Vietnam’s southern city aims to become a sustainable, innovative, and leading liveable megacity in the Asia-Pacific region.

The Ho Chi Minh City People’s Committee has approved an outline for the City’s General Planning for the 2025–2050 period, with a strategic vision extending 100 years into the future.

The planning covers the city’s entire administrative boundary of approximately 6,772.59 sq.km, encompassing 168 administrative units, including 113 wards, 54 communes, and the Con Dao special zone. The plan also accounts for potential sea reclamation areas to accommodate economic development needs.

Furthermore, the scope of research extends beyond administrative borders to include neighboring localities such as Dong Nai city and the provinces of Tay Ninh, Dong Thap, and Lam Dong, along with relevant maritime spaces.

Strategically, the city aims to become a sustainable, innovative, and leading liveable megacity in the Asia-Pacific region. The development framework focuses on harmonizing economic growth with environmental protection, social equity, and the preservation of cultural values.

By 2050, the city targets becoming one of the world's top 100 cities for quality of life and serving as a premier regional hub for finance, commerce, services, logistics, tourism, education, healthcare, science, and innovation.

The city is also positioned as an international trade gateway and a vital maritime link for the region and the nation. Serving as the country's primary economic engine, HCMC is expected to drive widespread development through the North-South and East-West economic corridors. To achieve this, the city will transition to a multi-centric megacity model supported by modern, synchronized infrastructure, smart governance, and enhanced climate resilience.

The plan places a high priority on elevating the living standards and income levels of residents to rank among the leaders in the Southeast Asia, ensuring a safe, humane, and culturally rich environment. Regarding economic performance, the city targets an average GRDP growth rate of at least 10% per year during the 2025–2050 period.

Under the most favorable domestic and international conditions, Ho Chi Minh City’s GRDP is projected to reach approximately $1.2 trillion by 2050.

Vneconomy-Thanh Thủy

For mutual benefits

Sun, 17 May 2026 07:30:00 GMT

Vietnam should better recognize its strengths and appeal when negotiating deals with foreign investors to ensure that everyone benefits.

Against a backdrop of geopolitical volatility and shifting “shoring” strategies that are reshaping the global investment map, Vietnam is emerging as a strategic destination thanks to its macro-economic stability and flexible diplomacy. In this new context, it may be able to find a new “balance point” in negotiating investment conditions with multinational corporations, securing fairer and more sustainable benefits for both sides.

Shifting FDI trends

In recent years, global FDI flows have undergone significant changes due to a host of factors. Vietnam is among the few countries able to meet the “shoring” requirements of many multinational corporations. By understanding its own advantages, Vietnam can take a more proactive role in negotiating investment conditions to achieve a balanced outcome that ensures mutual and fair benefits.

Global supply chains and global value chains have changed considerably amid rising geopolitical instability and the lingering effects of the pandemic. Multinational enterprises have been implementing strategies to improve resilience and efficiency, often with support from governments.

These strategies commonly include selecting investment destinations based on “friend-shoring” criteria, including both political friend-shoring and economic friend-shoring, as well as “near-shoring” and “reshoring.”

According to the “Shifting Shores: FDI Relocations and Political Risk” (2024) report from the World Bank, friend-shoring and near-shoring create both opportunities and challenges, while the benefits will not be distributed evenly. Countries need to strengthen their internal capabilities rather than rely solely on politically-driven relocation trends. The long-term fundamentals for attracting FDI remain a favorable business environment, macro-economic stability, skilled labor, reasonable taxation policy, and quality infrastructure.

FDI sources

Vietnam has attracted substantial foreign investment from South Korea, Japan, Taiwan (China), Singapore, and China, including Hong Kong (China), primarily because of its macro-economic stability, strong domestic growth, extensive port network, young and competitively-priced workforce, and attractive FDI incentives.

Foreign investors come to Vietnam mainly for economic rather than political reasons, as the country’s “bamboo diplomacy” approach has positioned it as a nation that does not lean excessively toward any one side. Vietnam is among the few countries that maintain Comprehensive Strategic Partnerships with all five permanent members of the United Nations Security Council - China, Russia, the US, France, and the UK. It currently has Comprehensive Strategic Partnerships with 15 countries, despite geopolitical tensions existing between many of them.

In addition, Vietnam has signed 17 free trade agreements (FTAs), providing access to markets across more than 50 countries and territories.

New balance point

Foreign investment in Vietnam is not limited to manufacturing. International investors also want barriers removed in service sectors such as telecommunications, finance, banking, and retail.

In addition, logistics infrastructure and energy are two areas where foreign investors want to see greater improvements. Road transport currently remains the dominant mode for freight movement, accounting for an estimated 80 per cent by volume, despite limitations in both quantity and quality. In the World Bank’s 2023 Logistics Performance Index, Vietnam ranked 43rd out of 140 economies, still behind Malaysia, Thailand, and the Philippines.

Finally, foreign investors consistently seek simpler, faster, and more efficient administrative procedures. Surveys show that their biggest concerns are overlapping and inconsistent laws and regulations, inefficient administrative processes, and high compliance risks.

The improvements sought by FDI investors are also reforms that Vietnam’s new government is determined to pursue, many of which continue initiatives from previous administrations. More importantly, the country wants local enterprises to participate more deeply in global value chains and move into higher value-added segments.

Therefore, future FDI attraction efforts, as well as reviews of existing projects, should aim to better harmonize the interests of all parties in a way that is fairer to Vietnam. By recognizing its own advantages, Vietnam can negotiate more confidently and selectively with FDI projects, fostering long-term, sustainable partnerships that deliver mutual and equitable benefits.

VET-Dr. Vo Dinh Tri

HCMC to invest $120 million in cleaning up two polluted canals

Sun, 17 May 2026 07:10:00 GMT

Located in the western part of the southern city, these two canals have suffered from severe pollution and long-term encroachment for many years, significantly impacting residents' lives and the area’s drainage capacity.

Ho Chi Minh City is continuing to accelerate its urban renovation and environmental improvement programs in the inner city with the upcoming launch of a renovation project for the Ong Bau and Chin Xieng canals, carrying a total investment of nearly VND3 trillion (about $114.5 million).

Located in the western part of the southern city, these two canals have suffered from severe pollution and long-term encroachment for many years, significantly impacting residents' lives and the area’s drainage capacity.

The project will be implemented in Binh Hung Hoa Ward and surrounding areas. It aims to improve the water environment, enhance drainage, renovate the urban landscape, and gradually raise the quality of life for local residents.

Key investment objectives include boosting drainage capacity to reduce localized flooding for riverside residential areas and nearby roads, particularly during the rainy season. This will minimize the frequent flooding that disrupts daily life and economic activities. Furthermore, the project aims to tackle water pollution caused by domestic trash and untreated sewage being discharged directly into the canals.

The project includes dredging, clearing flows, and restoring the natural ecosystem. Specifically, Ong Bau Canal will be renovated over a length of approximately 380 meters, while Chin Xieng Canal will cover about 890 meters.

The city plans to construct embankments, roads, public parks, and wastewater collection systems along the routes to put an end to the years-long practice of direct waste discharge into the canals.

Vneconomy-Thiên Ân

HCMC proposes 58 urgent projects for 2026-2030 period

Sun, 17 May 2026 07:00:00 GMT

These projects span multiple sectors, including traffic congestion reduction and regional connectivity, flood prevention, urban renewal, park and green space development, wastewater treatment, and social housing.

The Ho Chi Minh City Department of Construction has submitted a document to the Department of Finance proposing a list of 58 urgent projects to be implemented during the 2026–2030 period.

These projects span multiple sectors, including traffic congestion reduction and regional connectivity, flood prevention, urban renewal, park and green space development, wastewater treatment, as well as social housing and resettlement projects to meet citizens’ needs.

In the group of projects aimed at easing congestion and enhancing regional connectivity, the Department of Construction reviewed and proposed 27 works with a total investment of nearly VND300 trillion (nearly $11.4 billion).

These projects focus on strengthening regional links and forming new growth poles. Notable projects include: Ring Road 4, the Ho Tram – Long Thành Airport urban expressway, a sea‑crossing road connecting Can Gio with the former Ba Ria – Vung Tau province, which has been merged with Ho Chi Minh City since July last year, the East–West axis (extension of Vo Van Kiet Street) linking neighboring Tay Ninh province, upgrades to Ring Road 3 (Tan Van – Binh Chuan – Phu Loi section), and Thu Thiem Bridge 4.

Beyond transport infrastructure, the city is also prioritizing technical infrastructure and urban renewal along rivers and canals through 14 projects. Examples include the renovation of Thu Duc Canal, Linh Tay Stream, Hy Vong Canal, and Cay Liem Canal, as well as improvements to the southern bank of Doi Canal, Xom Cui Canal, and other areas.

Eight flood prevention and wastewater treatment projects are also included, such as the construction of wastewater treatment plants and collection systems in the western part of the city.

Significantly, the city is accelerating progress to break ground on several large‑scale strategic projects before July 2, including the sea‑crossing road connecting Can Gio and the former Ba Ria – Vung Tau province, the Ho Tram – Long Thanh Airport expressway, the Thu Thiem – Long Thanh railway, and Thu Thiem Bridge 4.

Alongside major infrastructure initiatives, the Department of Construction has also proposed the immediate implementation of eight social housing and resettlement projects to prepare housing stock for relocating and accommodating residents in new areas.

Vneconomy-Thanh Thủy

Qualitative refinement of investment

Sun, 17 May 2026 01:30:00 GMT

Vietnam has long been pursuing a strategy for reconstructing its investment ecosystem as circumstances evolve.

Vietnam’s economy is standing at a historic turning point, marking a transition from a development model based on labor and capital intensity to one driven by productivity, innovation, and efficient resource allocation. The five-year socio-economic development plan for 2026-2030, unanimously approved by the National Assembly, sets out highly-ambitious macro-economic goals: positioning Vietnam among the world’s Top 30 economies by GDP size, achieving per capita income of $8,500 by 2030, and maintaining average annual GDP growth of 10 per cent or higher.

New growth era

During the reform period, the policies and perceptions of the Party and the State regarding the private sector and FDI have undergone a profound transformation, from cautious restriction to proactive encouragement, recognizing them as key drivers of the socialist-oriented market economy. This evolution can be divided into five milestone phases.

First, 1986-1996 (6th and 7th Party Congresses - Initiation of Reform): The Party began acknowledging a multi-sector economy, allowing the private sector to operate under State management. The promulgation of the Law on Foreign Investment in Vietnam in 1987 laid the first legal foundation for attracting international capital and opening the economy.

Second, 1996-2006 (8th, 9th, and 10th Party Congresses - Role Affirmation): The 9th Congress in 2001 marked a major shift in thinking, by officially recognizing the private sector as an equal and long-term component of the economy. The 10th Congress in 2006 further broke new ground by permitting Party members to engage in private business. The FDI environment became more open, alongside efforts to refine market economy institutions.

Third, 2006-2016 (11th and 12th Party Congresses - Key Driver): The private sector was officially affirmed as an “important driver.” Policies focused on fostering large-scale private economic groups. FDI flows were increasingly directed toward high-tech and environmentally-friendly sectors.

Fourth, 2016-2026 (12th and 13th Party Congresses - Most Important Driver): A major turning point came with Resolution No. 10-NQ/TW in 2017, shifting FDI attraction toward a “selective, high-quality” approach, prioritizing advanced technologies, modern governance, and strong spillover effects. Crucially, it emphasizes tighter links with domestic enterprises. The private sector now contributes approximately 55-58 per cent of GDP and generates over 84 per cent of employment, while FDI has become a core pillar of export capacity and structural transformation.

Fifth, 2026-2030 (14th Party Congress - Second Reform Era): Defined as a new wave of reform, Politburo Resolution No. 68-NQ/TW, signed on May 4, 2025, identifies the private sector as the most important driver, playing a pioneering role in innovation and digital transformation.

The development trajectory in this unprecedented era demands a comprehensive structural transformation across all dimensions of the investment ecosystem. To realize breakthrough ambitions, Vietnam must resolve the challenge of mobilizing enormous financial resources. Total social investment demand for 2026-2030 is estimated at a minimum of VND38,500 trillion ($1.5 trillion), or approximately 40 per cent of GDP.

Meanwhile, the State budget is expected to allocate VND8,220 trillion ($316 billion) for medium-term public investment, covering only 21-22 per cent of total demand. Nearly 80 per cent of the remaining financial burden must therefore be mobilized from the domestic private sector and FDI.

As the traditional banking credit system reveals limitations in medium and long-term lending capacity, unlocking the full productive potential of the economy requires a well-developed, transparent investment ecosystem, lubricated by efficient capital markets and breakthrough legal frameworks.

Investment ecosystem challenges

A trade deficit of $7.11 billion in early 2026 has raised alarms about structural weaknesses in the domestic sector and dependence on imported inputs, while also reflecting a cycle of capital accumulation for production expansion. To address the imbalance between domestic private enterprises and foreign-invested sectors, and to achieve the 10 per cent GDP growth target, the economy must rely on a synchronized growth engine rather than export processing driven solely by FDI.

This includes a “revolution” in disbursing VND8,220 trillion ($316 billion) in public investment to create strategic infrastructure “seed capital” and reduce the Incremental Capital-Output Ratio (ICOR) to 3.5. It also involves reorganizing economic space into five key growth regions and next-generation free trade zones. Policy reforms, exemplified by Politburo Resolution No. 68, aim to remove legal barriers, allocate land, and implement controlled sandbox mechanisms to nurture 2 million tech-enabled private enterprises.

At the same time, FDI inflows of $18 billion must be reoriented toward core sectors such as semiconductors, AI, and green energy, with mandatory deep links to domestic supply chains through circular and symbiotic economic models.

The planned upgrade of the stock market this September will act as a “financial valve,” channeling long-term international capital, easing pressure on the banking system, and fueling domestic enterprises’ global competitiveness. The convergence of these frameworks and financial solutions will reshape the national economic structure and propel Vietnam into a new era of prosperity.

Growth momentum is increasingly driven by the rise of the domestic private sector. Its contribution to GDP increased from 44.6 per cent in 2010 to 58.3 per cent in 2019 and has remained stable at around 56-58 per cent in the post-pandemic recovery years. Meanwhile, the State sector’s share declined from nearly 35 per cent to around 26-27 per cent, reflecting ongoing equitization, divestment, and reduced direct State intervention in production and business activities.

Though FDI accounts for only 16-20 per cent of total social investment, it dominates export capacity and high-tech supply chains. The rising share of private capital highlights the dynamism and capital accumulation capacity of domestic enterprises. However, this vast capital has not translated proportionally into core competitiveness. Vietnam’s private sector remains dominated by micro, small, and medium-sized enterprises (MSMEs), and lacks leading firms capable of driving supply chains. Despite contributing nearly 60 per cent of investment capital, the domestic private sector remains weak in international trade.

Investment in mining has declined sharply, from VND62.7 trillion ($2.4 billion) in 2010 to VND17.2 trillion ($660 million) in 2024, consistent with a strategic shift away from raw resource exports toward higher value-added products. Meanwhile, investment in manufacturing has steadily increased, reaching VND563.4 trillion ($21.7 billion) in 2024 and maintaining its position as the most attractive sector. However, most of the surplus value and high-tech content in manufacturing remains under FDI control, exposing vulnerabilities in the domestic production sector amid global economic cycles.

The fragility of the domestic private sector is further revealed by the reversal of the trade balance in the first four months of 2026. Vietnam posted a trade deficit of $7.11 billion, compared to a surplus of $4.3 billion in the same period of 2025. The contrast is stark: the FDI sector accounts for 80 per cent of total exports and maintains a trade surplus of $8.5 billion, while the domestic sector exports only $33.65 billion, with negligible growth of 0.4 per cent, but imports heavily, resulting in a massive deficit of $15.61 billion. Consequently, the FDI surplus can no longer offset the domestic deficit, pushing the entire economy into a trade imbalance.

On the positive side, this signals the early stage of a production expansion cycle. Notably, 94.2 per cent of total imports, worth $165.37 billion, consist of production inputs, including machinery (54.8 per cent) and raw materials (39.4 per cent). However, the risks are significant: heavy dependence on imported inputs exposes a critical vulnerability in the investment ecosystem.

Geopolitical disruptions, such as tensions in the Middle East affecting logistics and energy price volatility, could immediately erode profit margins for domestic enterprises. Unlocking resources to achieve partial self-reliance in raw material supply chains has therefore become an urgent priority in national investment policy.

Public investment as “seed capital”

To establish a robust infrastructure foundation capable of absorbing VND30,000 trillion ($1.15 trillion) from the private sector and foreign investment, including both FDI and portfolio investment, the government has launched a “revolution” in the 2026-2030 Medium-Term Public Investment Plan, with a total scale of VND8,220 trillion ($316 billion). Of this, the central budget accounts for VND3,800 trillion ($146 billion) and local budgets VND4,420 trillion ($170 billion).

The core challenge in achieving the 10 per cent annual growth target while maintaining an investment-to-GDP ratio of 35-40 per cent lies in improving capital efficiency, reducing the ICOR from 6.4 in the 2021-2025 period to 3.5-4.0 in 2026-2030. Vietnam’s historically-high ICOR largely stems from inefficiencies in State-owned enterprises, stagnation in the real estate sector, and prolonged heavy industrial projects. Directive No. 16/CT-TTg, issued on April 23, 2026 by the Prime Minister, establishes strict discipline over public capital flows, requiring that projects meet Economic Internal Rate of Return (EIRR) criteria based on socio-economic accounting and demonstrate both direct and indirect spillover value.

Approximately 30 per cent of the project pipeline has been cut to prevent fragmented and scattered investment. Around 75 per cent of central budget capital is concentrated on national target programs and strategically-important inter-regional projects. A breakthrough in land clearance policy allows site clearance to be separated into independent projects and implemented prior to main project approval, eliminating cost overruns and legal disputes.

Decentralization is strengthened through “block grant” capital allocation to localities under the principle of “localities decide, localities implement, localities take responsibility.” The State commits to providing a secure legal framework to protect proactive officials, removing risk-averse attitudes that have hindered administrative efficiency. At the same time, efforts are focused on resolving legal bottlenecks for over 3,000 “frozen” real estate projects, which could contribute 5-7 per cent to GDP and directly reduce the economy-wide ICOR.

Infrastructure as a catalyst

Public capital reallocation is materialized through mega-projects reshaping economic connectivity. The National Assembly has approved over VND192 trillion ($7.4 billion) in central budget funds to continue and initiate nationally significant projects. By 2030, Vietnam aims to complete at least 5,000 km of expressways, connecting key arteries such as the Eastern North-South Expressway, East-West corridors (Chau Doc - Can Tho - Soc Trang, Bien Hoa - Vung Tau, and Khanh Hoa - Buon Ma Thuot), and ring roads around Hanoi and Ho Chi Minh City.

Priority is also given to the North-South high-speed railway and the Lao Cai - Hanoi - Hai Phong international rail corridor, alongside urban rail systems in Hanoi and Ho Chi Minh City. This synchronized infrastructure network acts as “seed capital,” reducing logistics costs from the current 20 per cent of GDP to 13-15 per cent, thereby directly increasing profit margins for private and FDI enterprises.

The updated National Master Plan (2021-2030, with a Vision to 2050) outlines a fundamentally new economic map following administrative consolidation from 63 cities and provinces to 34 provincial-level units. This restructuring creates economic entities of sufficient scale for capital accumulation, optimizes urban planning, eliminates fragmentation, and concentrates resources into five key national growth regions: the Northern Growth Pole (centered on Hanoi), the Southern Growth Pole (centered on Ho Chi Minh City), the North Central Region, the Central Region (centered on Da Nang), and the Mekong Delta Region.

Cross-border economic corridors such as Lao Cai - Hanoi - Hai Phong - Quang Ninh and Moc Bai - Ho Chi Minh City - Bien Hoa - Vung Tau are defined as backbone axes for capital flows.

Next-generation free trade zones mark an institutional breakthrough, allowing foreign investors to establish economic entities without requiring prior investment project approval and exempting initial investment registration certification. These zones aim to integrate seaport logistics, international financial services, and high technology into closed-loop ecosystems.

Politburo Resolution No. 68 establishes the highest-level legal and ideological foundation for private sector development, officially identifying it as the “most important driver” and “pioneering force” of the economy. The Resolution introduces structural policy interventions targeting key constraints faced by private enterprises.

To address industrial land shortages - a critical bottleneck - localities are required to allocate at least 20 ha per industrial park or reserve 5 per cent of industrial land funds for high-tech firms, MSMEs, and innovative startups. A subsidy package reducing land rental costs by at least 30 per cent during the first five years lowers fixed costs, enabling private capital to focus on RD and production upgrades.

The Resolution also introduces regulatory sandbox frameworks for AI, blockchain, and fintech business models, helping Vietnam keep pace with global innovation and attract venture capital into the domestic tech ecosystem. The State commits to ending delayed payments by public entities to private firms and strengthening contract enforcement to build investor confidence.

Targets include reaching 2 million active enterprises by 2030 (contributing 55-58 per cent of GDP) and developing at least 20 large private conglomerates capable of leading global supply chains. This is supported through public procurement preferences and training 10,000 globally-qualified CEOs, aiming to reverse the persistent trade deficit in production inputs.

Vietnamese private capital is increasingly expanding abroad. As of the end of 2024, outward FDI reached 1,825 projects with total registered capital of $22.64 billion, focusing on strategic markets such as Laos ($5.71 billion), Cambodia ($2.93 billion), and Russia ($1.62 billion). Investment sectors include mining ($7.03 billion), agriculture ($3.39 billion), and manufacturing ($1.77 billion), reflecting efforts by Vietnamese conglomerates to secure resources and markets for global supply chain integration.

Meanwhile, inbound FDI is entering a phase of qualitative refinement. In the first four months of 2026, total registered FDI stood at $18.24 billion, up 32 per cent year-on-year, with disbursed capital estimated at $7.4 billion; the highest in five years. Manufacturing continues to dominate, attracting $10.49 billion, or 68.6 per cent of total newly-registered and additional capital.

Mobilizing investment capital

Vietnam’s FDI strategy has shifted from quantity to quality, focusing on building domestic-foreign links and global integration. As multinational corporations restructure supply chains, competitiveness is no longer based on low labor costs but on adaptability, transparency, and sustainability of local industrial ecosystems.

However, localization rates remain low, with Vietnamese firms primarily engaged in low-value assembly, resulting in large trade deficits in production inputs. The key to transformation lies in domestic private enterprises, especially support industries, proactively upgrading technology and environmental, social, and governance (ESG) standards to become Tier-1 suppliers for FDI firms. Successful domestic firms demonstrate that flexibility in meeting FDI partners’ requirements - quality, delivery time, integrated logistics services - is critical to gaining trust and gradually mastering supply chains.

Collaboration with high-tech corporations willing to share value and transfer technology is essential. Ecosystem-based investment models, particularly those applying circular economy principles and Gunter Pauli’s blue economy “cascade” model, can deepen links between domestic private firms and FDI. In this model, waste or by-products from one industry become valuable inputs for another, eliminating the concept of waste and creating closed-loop value chains with economic, environmental, and social benefits.

In Vietnam, eco-industrial parks will serve as hubs where leading FDI firms and domestic satellite enterprises form industrial symbiosis networks, sharing resources, surplus energy, treated wastewater, and recycled materials. This reduces operational costs, conserves resources, meets stringent ESG standards, and enables “Made in Vietnam” products to overcome carbon tariffs while contributing directly to the country’s net-zero emissions by 2050 goal.

To mobilize 80 per cent of the VND38,500 trillion ($1.5 trillion) in total investment required for the 2026-2030 period, the capital market, particularly the stock market and corporate bond market, must take on a historic role. The traditional banking system has reached its limits in using short-term capital for medium and long-term lending, posing systemic liquidity risks.

In April, FTSE Russell confirmed that Vietnam had removed key technical barriers in its stock market, including pre-funding requirements and the adoption of a Global Broker model, and is now officially on track for an upgrade from “Frontier Market” to “Secondary Emerging Market.” This upgrade is expected to trigger inflows of $1.5-1.67 billion from index-tracking funds such as Vanguard into approximately 30 leading Vietnamese stocks. The broader spillover effect, combined with transparency reforms, could attract between $10-25 billion in international capital over the long term.

With Emerging Market status, Vietnam’s market P/E ratio is expected to increase by 1-2 points, narrowing the valuation gap with regional peers and boosting market capitalization. This creates favorable conditions for domestic firms to raise international capital through equity and bond issuance at significantly lower costs, supporting merger and acquisition (MA) and high-tech RD investments.

Market liquidity is projected to stabilize at $1.3-2.1 billion per session. Pressure from high-standard foreign capital will require Vietnamese listed companies to enhance transparency, adopt international accounting standards (IFRS), improve corporate governance, and implement ESG practices, thereby protecting investors and filtering out unsustainable businesses.

New mechanisms, such as allowing State-owned commercial banks to increase charter capital from retained earnings, providing tax incentives for investment funds, and permitting FDI enterprises to list on domestic exchanges, will create a powerful endogenous capital circulation cycle.

VET-Associate Professor Nguyen Dinh Tho

Da Nang Venture and Angel Summit 2026 set to open on May 25

Sun, 17 May 2026 01:10:00 GMT

The event expected to bring together dozens of investment funds, technology experts and innovative enterprises from across the world.

The Da Nang Venture and Angel Summit 2026 (DAVAS 2026), an international-scale forum connecting startups with global investors, is scheduled to take place in the central city from May 25 – 27.

The event will bring together dozens of investment funds, technology experts and innovative enterprises from across the world, according to a report from the Vietnam News Agency.

According to the organising board, more than 30 investment funds and international investors from Singapore, Japan, the Republic of Korea, the US, the Philippines and Vietnam are expected to attend, representing total investment capital exceeding $5 billion.

In addition, over 100 international experts and speakers from Singapore, Hong Kong (China), the Philippines, the US, Japan, Dubai, Kazakhstan and Taiwan (China) will join networking sessions, technology trend discussions and innovation cooperation activities.

More than 70 domestic and foreign startups operating in sectors such as technology, education, healthcare, artificial intelligence, fintech, Web3 and blockchain are expected to participate, while the event is projected to attract around 5,000 registrations.

DAVAS 2026 is not merely an investment-matching event for startups, but also demonstrates the city’s commitment to promoting innovation, developing the knowledge-based economy and creating a favourable environment for technology enterprises and startups, according to the city’s Department of Science and Technology.

Vietnam News Agency-Van Nguyen

HCMC eyes breakthrough via green energy and high-tech expansion

Sun, 17 May 2026 01:00:00 GMT

HCM City’s greatest competitive advantage currently lies in the Can Gio – Con Dao maritime economic space, supported by a long-established network of seaports, logistics, and oil and gas infrastructure.

Green energy, LNG, offshore wind, maritime logistics, and high-tech industries are poised to become the new "growth engines" for Vietnam’s largest metropolis.

This vision was the focal point of the seminar "Ho Chi Minh City: Resilience from Industry - Energy - High-Tech Services," held on May 14 in Hanoi.

During the event, experts argued that energy should no longer be viewed merely as infrastructure or power supply, but as the foundational platform for restructuring the city's growth model in the coming period.

According to Director of the Institute for Policy Management and Development Strategy, Ms. Le Nguyen Thien Nga, the southern city must move beyond traditional mindsets.

“Energy development must be integrated into a holistic ecosystem encompassing green energy, digital energy, artificial intelligence, and high-tech industries across the entire Southeast region,” said Ms. Nga.

She emphasized that to go the distance and see Vietnamese enterprises enter the Fortune Global 500, the government must provide experimental mechanisms—or "sandboxes"—large enough for leading domestic firms to take the lead.

Ms. Nga further noted that the primary bottleneck is not necessarily a lack of policy mechanisms, but rather the absence of a robust “national governance architecture” capable of connecting, analyzing, and operating data for policy planning. Without this foundation, efforts toward digital transformation, smart cities, or integrated industrial-energy ecosystems will struggle to achieve real effectiveness.

Dr. Du Van Toan, an expert in marine and island environments, highlighted that HCM City’s greatest competitive advantage currently lies in the Can Gio – Con Dao maritime economic space, supported by a long-established network of seaports, logistics, and oil and gas infrastructure. This provides more than just a gateway for shipping; it offers the potential to create a regional "hub" for industrial, energy, and maritime technical services.

Specifically, the offshore wind value chain extends far beyond power generation, driving growth in marine engineering, foundation manufacturing, maritime logistics, and environmental data services.

At the seminar, many participants agreed that the city is entering a critical transition phase as its traditional growth drivers approach their limits.

Dr. Nguyen Duc Kien, former Vice Chairman of the National Assembly's Economic Committee, stated that the city would struggle to maintain long-term growth if it continues to rely on traditional industrial models based on low-cost labor and land-intensive industries. The city must pivot toward a model driven by high-tech industries, clean energy, innovation, and high-quality technical services.

As Ho Chi Minh City's development space has been expands since the neighboring provinces of Binh Duong and Ba Ria - Vung Tau were merged into it. As a result, its structure is evolving from a monocentric urban model into a "regional megacity." This new model is built on economic connectivity, integrated logistics, energy, and technology.

Sharing this perspective, Dr. Tran Quang Thang, Director of the HCMC Institute of Economics and Management, asserted that the core issues remain institutional frameworks and development space.

“Only when institutional mechanisms are broad enough to foster regional linkages can the city truly form a new growth ecosystem for the entire Southeast region of the country,” said Mr. Thang.

Vneconomy-Dũng Huỳnh

"Meet Australia 2026" set to take place in HCM City

Sat, 16 May 2026 10:00:00 GMT

The program is designed to strengthen cooperation in areas such as industry, infrastructure, urban development, high technology, innovation, education, clean energy, and sustainable development.

The "Meet Australia 2026" event is scheduled to take place in Ho Chi Minh City from May 18 to 20, at the Binh Duong Convention and Exhibition Center.

Organized by the municipal People's Committee, the event aims to deepen the partnership between the city and Australian partners across various key sectors.

The program is designed to strengthen cooperation in areas such as industry, infrastructure, urban development, high technology, innovation, education, clean energy, and sustainable development.

According to the Organizing Committee, approximately 200 delegates will attend the event in person.

The Vietnamese delegation will include leaders from the Ministry of Foreign Affairs, the Vietnamese Ambassador to Australia, and senior officials from HCM City. Representatives from various departments, wards and communes, and special zones will also be present, alongside leaders from neighboring localities, including Dong Nai, Tay Ninh, Dong Thap, An Giang, and Can Tho. The event will also see participation from business associations, universities, and investment promotion agencies from both nations.

On the Australian side, attendees are expected to include government officials, representatives from various ministries and localities, diplomatic agencies, trade and investment promotion organizations, and members of the business community.

The event’s core activities will take place on May 19, featuring an opening ceremony followed by three major thematic discussion sessions: promoting trade and investment between HCMC and Australia; advancing cooperation in green energy development; and building a future-ready workforce through collaboration on skills development, talent cultivation, and sustainable labor forces.

On the same day, a dedicated Business-to-Business (B2B) networking session will be held to help enterprises from both countries exchange needs, seek partnership opportunities, and expand their trade and investment networks. This activity will be spearheaded by the Investment and Trade Promotion Centre (ITPC) in coordination with the Department of Industry and Trade and other relevant agencies.

On May 20, the international delegation and business representatives will participate in a series of field trips. The itinerary includes visits to industrial parks, science and technology centers, and innovative industrial ecosystem models. Key highlights of the tour include the Center for the Fourth Industrial Revolution (C4IR) in the city and the Vietnam International Financial Center.

Vneconomy-Thiên Ân

Who benefits from FDI projects?

Sat, 16 May 2026 09:30:00 GMT

A means of calculating the actual value for Vietnam from specific FDI projects is very much needed as the country moves into a new era of development.

Vietnam has established itself as an indispensable link in the global supply chain and a leading strategic manufacturing base in Asia after consistently implementing an open-door policy over the course of three decades. However, in the era of next-generation FDI attraction, the central challenge is no longer the volume of registered capital but a strategic repositioning: how Vietnam can maximize the surplus value retained domestically and ensure its economy captures tangible benefits commensurate with the success of multinational corporations.

FDI performance vs. domestic value

Over almost four decades, FDI has acted as a critical external driver behind Vietnam’s remarkable economic transformation. As of the end of 2025, the FDI sector accounted for 72 per cent of total trade turnover and contributed approximately 23 per cent of national GDP. The presence of global corporations such as Samsung, Intel, and LG has placed Vietnam firmly on the global technology map, turning it into a strategic and essential node in global value chains.

Yet behind these impressive figures lie increasingly visible structural shortcomings. According to the Vietnam Chamber of Commerce and Industry (VCCI), only 15 per cent of domestic enterprises are capable of supplying goods and services to FDI enterprises, far below the 40 per cent in Thailand and 50 per cent in Malaysia.

A particularly concerning issue is the emergence of a “dual-track economy,” in which the FDI sector thrives but fails to sufficiently diffuse its benefits into the domestic economy. Many FDI projects operate under a “transit pipeline” model, importing components from parent countries, leveraging tax incentives and low-cost labor in Vietnam for processing and assembly, then exporting finished goods while repatriating profits to parent companies.

These profit flows return to home countries through both formal channels such as dividends and informal mechanisms such as management fees, royalties, and transfer pricing, leaving Vietnam with only modest value-added. Meanwhile, the cost of this “build the nest to attract eagles” strategy is rising, as the government continues to invest heavily in power infrastructure, transport networks, and specialized industrial parks. This reality calls for a reassessment of the true balance of benefits between investors and the host country.

Measuring effectiveness

Under Decision No. 315/QD-TTg issued by the Prime Minister on February 18, 2025, Vietnam introduced a framework of 42 indicators to evaluate foreign investment effectiveness. These indicators cover scale, operational efficiency, socio-economic contributions, budget revenues, spillover effects, technology, labor and wages, the environment, gender equality, and other aspects of the FDI sector and foreign-invested enterprises (FIEs). The issuance of the Decision represents a notable effort by Vietnam to standardize the monitoring of foreign capital flows.

However, the framework still contains several critical gaps. Many indicators reflect the internal growth of the FDI sector or the success of investors, but they do not quantify how much value Vietnam actually retains from that growth, aside from tax contributions. In essence, the framework does not yet capture the net surplus value left in the country.

It also does not account for the cost of incentives provided by Vietnam, as there is no metric measuring net benefits after deducting tax exemptions, specialized infrastructure investments, or hidden costs related to resources and the environment. In other words, the country still lacks visibility into net income after costs.

Furthermore, indicators on spillover effects and technology remain somewhat superficial. Localization metrics do not clearly distinguish between genuinely domestic enterprises and foreign satellite suppliers operating in Vietnam, while technology indicators focus on the number of certifications rather than the depth of actual technology transfer or the number of Vietnamese engineers capable of mastering core technologies.

International experience

In the global competition to attract high-quality FDI, many countries have shifted toward performance-based incentive policies. At their core, these policies represent a fair exchange, in which host governments grant incentives based on quantifiable surplus value that investors commit to delivering to the domestic economy.

Thailand and Malaysia have upgraded frameworks similar to Decision No. 315 into performance-linked evaluation systems that tie incentives directly to investor outcomes. Under Thailand’s Investment 4.0 strategy, a Board of Investment operates a tiered incentive system in which projects are classified into categories such as A1, A2, and A3 based on their performance.

The country also applies a Fiscal Return on Investment metric, which measures how long it takes for tax revenues generated by a project, after incentives expire, to offset the value of tax exemptions and public infrastructure investments. Projects with payback periods exceeding ten years are considered fiscally risky.

Malaysia, meanwhile, emphasizes domestic spending and high-value employment. Projects that fail to generate employment including at least 30 per cent high-income jobs or do not meet commitments to local supplier networks face immediate reductions in financial incentives through automated post-audit systems.

In South Korea and Taiwan (China), the success of domestic enterprises has been closely tied to policies that enforce economic links. Financial incentives for FDI projects are directly linked to verified localization rates and the extent of technology transfer to domestic small and medium-sized enterprises. Technology transfer is assessed based on the number of production processes that domestic firms can independently operate after the transfer is completed.

In economies with limited resources but advanced governance, such as Singapore and Ireland, evaluation systems focus on efficiency per unit of resource. Singapore’s Economic Development Board uses value-added per worker as a primary screening metric. Given constraints on land and energy, FDI projects must meet strict benchmarks for fiscal contribution per square meter of land and per unit of electricity consumed. Projects that are resource-intensive but generate low value-added are rejected at the application stage. At the same time, tax incentives are tied to commitments to fund scholarships and overseas training programs for local engineers.

Ireland follows a model centered on domestic embeddedness. Its Industrial Development Authority evaluates the extent to which FIEs integrate into the national education and research ecosystem. The country also applies a Net Economic Contribution metric, calculated as the difference between the value retained within the economy, including wages, taxes, and local procurement, and the cost of public support, including subsidies, tax incentives, and infrastructure investments.

New evaluation framework

To capture the next wave of greener, more technology-intensive, and more sustainable FDI, Vietnam needs to upgrade the indicator system under Decision No. 315 based on clear principles. Incentives granted to FDI projects should be treated as public investments, requiring defined payback periods and measurable net returns. Incentive structures should be tiered, based on quantifiable contributions to the Vietnamese economy rather than applied broadly.

Economic indicators, particularly those measuring retained surplus value, should serve as the core of the framework. Evaluation should focus on the country’s ability to retain value after accounting for outward profit flows. Links with domestic supply chains should be verified through actual financial data, with priority given to projects that demonstrate deep integration into the domestic business ecosystem rather than operating as isolated enclaves.

Technology indicators should be redesigned to measure the depth of core technology transfer and the number of Vietnamese professionals holding key technical and managerial roles. Human capital indicators should assess the contribution of enterprises to upgrading workforce quality, with an emphasis on income levels and advanced skills training aligned with international standards. In the context of net-zero commitments, the framework should prioritize projects that demonstrate high efficiency in the use of resources such as electricity, water, and land relative to the value they generate.

Upgrading Vietnam’s next-generation FDI evaluation framework is not about creating administrative barriers but about establishing a transparent, fair, and accountable set of rules. While Decision No. 315 provides a relatively comprehensive foundation, it requires stronger metrics to capture retained surplus value. Such improvements will help address the “dual-track economy,” ensuring that foreign investment generates real value that strengthens domestic capacity and reinforces Vietnam’s economic sovereignty in the new era.

VET-Hong Ha

ASEAN Future Forum 2026 to focus on peace, prosperity, people-centered development

Sat, 16 May 2026 08:10:00 GMT

Initiated by Viet Nam, the Forum was designed to create an open, inclusive and forward-looking space for leaders, scholars and business representatives to discuss strategic issues facing ASEAN and the region, according to the Foreign Ministry’s Spokesperson.

The ASEAN Future Forum 2026 is scheduled to take place in Hanoi in mid-June under the theme "Shaping a shared future together: Peace, Prosperity and People-Centered Development," The Government News quoted the Ministry of Foreign Affairs as reporting on May 15.

Vietnam is working closely with ASEAN Member States and partners to prepare for this year's forum, said the Foreign Ministry’s Spokeswoman Pham Thu Hang, adding that the forum is expected to contribute to perspective, initiatives and policy recommendations in favor of the implementation of the ASEAN Community Vision 2045.

Regarding the 48th ASEAN Summit in Cebu, the Philippines, she said the summit generated substantive, effective and timely outcomes.

During the Summit, ASEAN leaders reached high consensus on various response measures across the political-security, economic and socio-cultural pillars.

In the immediate term, ASEAN leaders underlined the need to reinforce solidarity, resilience, strategic autonomy, while promoting mutual assistance among the Member States.

The regional leaders agreed to strengthen interdisciplinary coordination and early warning capacity, develop emergency communication mechanisms.

The leaders also agreed to ensure the bloc's resilience, energy security, and food security through effective implementation of the agreements and plans for cooperation in petroleum, energy connectivity, and food, while enhancing consular cooperation to ensure the safety for ASEAN citizens, especially migrant workers in affected areas.

ASEAN leaders adopted the Declaration on responding to the crisis in the Middle East, in which they underscored the need to maintain cooperation momentum, seriously implement the plans to achieve the long-term goals of the ASEAN Community Vision 2045.

VGP-Pham Long

VCCI unveils 2025 Vietnam Private Economic Report, launches PCI 2.0 and BPI

Sat, 16 May 2026 07:28:00 GMT

According to the report, by the end of 2025, Vietnam had over 1 million active enterprises, a 6.6% increase compared to 2024.

The Vietnam Chamber of Commerce and Industry (VCCI) on May 15 officially released the 2025 Vietnam Private Economic Report and the 2025 Provincial Competitiveness Index (PCI 2025).

According to the report, by the end of 2025, Vietnam had over 1 million active enterprises, a 6.6% increase compared to 2024. Alongside approximately 6.1 million household businesses, the private sector now provides employment for about 26 million workers, accounting for 50.2% of the country’s total workforce.

The year 2025 saw a record-breaking 297,500 new market entrants, up 27.4% year-on-year. Notably, 85.7% of businesses reported that they are maintaining or expanding their operations, reflecting a cautious yet positive sentiment within the business community following the challenging period of 2023–2024.

Despite these positive signals, the report identified four major bottlenecks currently hindering the private sector: output markets, access to capital, transparency, and policy forecasting/informal costs.

The report highlighted that 60.2% of businesses struggle to find customers, a sharp rise from 45.3% in 2024 and 41% in 2022. Regarding finance, 75.5% of enterprises stated they cannot secure loans without collateral. The rate of loans requiring collateral in Vietnam stands at a staggering 93.5%, significantly higher than in Malaysia (33.4%), Thailand (55.8%), and the global average (68.3%).

Of note, only 6% to 8% of businesses are able to regularly predict policy changes, while 51.9% must rely on social media to keep track of draft regulations. Furthermore, 26% of businesses reported paying informal costs when applying for business licenses—nearly triple the regional average of 9.5%.

The report also noted a significant gap in innovation compared to regional peers. Only 8.8% of Vietnamese enterprises engage in product or service innovation, far below Malaysia (21.7%), Thailand (18.9%), and the East Asia and Pacific average (28.5%).

Finally, the household business sector remains vulnerable, with 81.5% of households reporting a decline in revenue over the past year.

Head of the Legal Department and Deputy Secretary General of VCCI, Mr. Dau Anh Tuan, stated that the PCI 2.0 version has been restructured to include 9 component indices with 98 indicators. These indices comprise: market entry, access to resources, transparency, administrative procedure compliance costs; informal costs; fair competition; business support policies; legal institutions; and proactive governance.

In 2025, VCCI proactively shifted from publishing specific numerical rankings to announcing six governance quality groups. This change accounts for the differing conditions between provinces and cities following mergers and aligns with international practices. The national median PCI score reached 63.90 out of 100, reflecting a sustained momentum in reform.

The report honored the five best-performing localities (listed alphabetically): Bac Ninh, Da Nang, Hai Phong, Phu Tho, and Quang Ninh. A common trait among this leading group is a balanced governance structure, with at least five out of the nine component indices ranking in the national top 10.

Specifically, Bac Ninh led in Proactive Governance (6.67 points) and Administrative Compliance Costs (8.93 points). Da Nang ranked first nationwide in Market Entry with 8.70 points. Hai Phong made a significant impact with 7 out of 9 component indices placed in the top 10. Phu Tho ranked second nationally in Access to Resources, while Quang Ninh continued to maintain its high standing in Fair Competition and Proactive Governance.

For the first time, VCCI also launched the Private Sector Performance Index (BPI). The BPI consists of 23 indicators across two dimensions: the development of the private sector and innovation capacity. While the PCI measures institutional "inputs," the BPI measures market "outputs."

The pilot results for the 2025 BPI recognized three leading localities: Ho Chi Minh City (5.67 points), Hanoi (5.41 points), and Quang Ninh (5.33 points). The national median score stood at 4.20.

Vneconomy-Song Hà

Hanoi's GRDP expected to reach $200bln by 2035

Sat, 16 May 2026 07:00:00 GMT

The municipal People's Committee has approved the capital city's 100-year master plan.

Hanoi aims to become a green, smart and modern city, as well as an important regional center for finance, commerce and innovation with gross regional domestic product (GRDP) expected to reach approximately $200 billion by 2035 as part of its 100-year master plan which has been approved by the municipal People’s Committee.

Under the master plan, the city targets per capita GRDP exceeding $18,800 by that year.

Then by 2045, the capital aspires to become one of the Asia-Pacific’s leading innovation hubs, before evolving into a global city with life quality and happiness among the world’s highest by 2065.

One of the plan’s most notable features is its emphasis on developing cultural industries and tourism into key economic sectors. Hanoi aims for cultural industries to contribute around 10% of GRDP by 2035, 12% by 2045 and 15–20% by 2065.

The capital’s population is projected to reach between 14–15 million by 2035, rising to 15–16 million by 2045 and 17–19 million by 2065, with the long-term figure capped at no more than 20 million.

The planning area spans around 3,359.84 sq.km. Hanoi borders Thai Nguyen province to the north, Phu Tho province to the north, the west and the north-west; Ninh Binh to the south and south-west; and Bac Ninh and Hung Yen to the east.

VnEconomy-Phan Nam

Vietnam’s aviation rebound fuels tourism growth amid rising global challenges

Sat, 16 May 2026 03:00:00 GMT

Growth has continued into 2026, with passenger numbers rising 16.4% year-on-year in the first quarter.

Vietnam’s aviation market is experiencing a strong recovery, providing a major boost to the country’s tourism sector as travel demand continues to rise. However, mounting fuel costs, infrastructure congestion, and global geopolitical uncertainties are increasing pressure on the industry to restructure for greater sustainability and resilience.

Speaking at a recent forum on stimulating aviation and tourism demand, Mr. Uong Viet Dung, Director General of the Civil Aviation Authority of Vietnam, said around 80% of international visitors to Vietnam arrive by air, while tourists account for approximately 70% of total passenger traffic carried by airlines. The figures underscore the increasingly close and mutually reinforcing relationship between aviation and tourism in Vietnam’s economic growth.

Vietnam’s air transport market served more than 83.6 million passengers in 2025, up 10.8% from the previous year, including 46.9 million international travelers. The country also welcomed a record 21.5 million foreign visitors, with over 84% arriving by air.

Growth has continued into 2026, with passenger numbers rising 16.4% year-on-year in the first quarter. However, the sector faces significant headwinds. Rising tensions in the Middle East caused jet fuel prices to surge by more than 100% in April, forcing Vietnamese airlines to cut nearly 5,000 flights compared with the previous month.

VnEconomy-Huỳnh Dũng

Shift from quantity to quality foreign investment

Sat, 16 May 2026 02:00:00 GMT

Global events offer Vietnam the opportunity to consolidate a move from quantity to quality in FDI attraction and use.

While FDI inflows into Vietnam continue to show solid growth, the value-added remains modest, links with domestic enterprises are weak, and any competitive advantages are still largely based on geographic location. This means that Vietnam remains positioned at the lower end of the global value chain, where profit margins are small and technology spillovers are limited.

The FDI picture exhibited several bright spots during the 2021-2025 period, which was marked by post-pandemic recovery and macro-economic stabilization amid global uncertainties. Disbursed FDI increased from $19.7 billion in 2019 to $27.6 billion in 2025, reflecting sustained confidence among foreign investors in Vietnam’s investment environment.

In the context of global supply chains being restructured, rapid technological shifts, and increasingly unpredictable geopolitical volatility, Vietnam is facing a rare opportunity to upgrade its FDI attraction model.

From attraction to selection

After nearly 40 years of attracting and managing FDI (1987-2025), and despite the fact that “success has been the main outcome,” Vietnam has reached a point where a strategic shift is necessary. The focus is no longer on attracting FDI in terms of quantity, but on selecting high-quality projects with strong spillover effects across the economy.

To turn this into reality, several key priorities must be addressed: institutional breakthroughs to build policy credibility; selective FDI attraction in strategic sectors; synchronized infrastructure upgrades, particularly in energy and digital infrastructure; development of high-tech human resources; stronger links between FDI enterprises and domestic firms; and the promotion of green, innovation-driven FDI.

If these solutions are conducted in a coordinated manner, under the fundamental principle of “utilizing FDI while ensuring an independent and self-reliant economy, linked with national defense, security, and social order,” as outlined in Politburo Resolution No. 50-NQ/TW dated August 20, 2019, FDI will continue to act as a vital resource for Vietnam’s next phase of development.

However, the current context presents significant challenges. First is the intensifying global competition for FDI, as many countries are simultaneously adjusting policies to gain advantage. In addition, investment is increasingly shifting toward “friendly” or geographically-proximate countries (friend-shoring or near-shoring), leading to more concentrated and selective capital flows. At the same time, the pressure surrounding a green transition and the requirements for absorbing and mastering advanced technologies are rising, meaning Vietnam must not only attract capital but also strengthen its absorptive capacity.

As a result, the attraction of “next-generation FDI” needs clearer direction, aligned with green investment, high technology, innovation, and deeper participation in global value chains.

Experience from Singapore and South Korea shows that success depends on consistent strategy. While Singapore relies on transparent institutions to attract high-tech FDI, South Korea closely links FDI with domestic enterprises to build large conglomerates. Despite the different approaches, both countries have not only expanded FDI inflows but also effectively leveraged them to boost exports and develop globally-competitive production hubs. These are valuable lessons for Vietnam as it reshapes its FDI strategy.

Despite repeated reviews identifying limitations in Vietnam’s FDI attraction and utilization, these have yet to be fully resolved. FDI quality remains modest, with most projects concentrated in processing and assembly with low value-added. Links between the FDI sector and domestic enterprises remain weak, as reflected in low localization rates and limited technology transfer.

Another notable issue is administrative procedures. Although regulations are relatively clear, delays still occur in practice, indicating that the “one-stop-shop” mechanism in FDI management at both the central and local levels has not been effectively implemented. The process of obtaining opinions from different State agencies on issues arising during FDI operations remains slow, affecting project implementation and expansion and creating a less favorable perception of Vietnam’s investment environment.

Reform for new FDI

In the current context, where support industries remain weak, human resources are insufficient, and infrastructure is still constrained, administrative bottlenecks are becoming a major concern. If not resolved decisively, these factors will undermine the competitiveness of Vietnam’s investment environment, especially as the country seeks to attract next-generation FDI linked to high technology and green development.

Global dynamics are also strongly influencing FDI flows, with supply chains being restructured under complex and unpredictable geopolitical pressures. Industry 4.0 is entering a new phase centered on AI, semiconductors, and automation, while imposing higher requirements for green investment, net-zero targets, and ESG (environmental, social, and governance) standards. At the same time, competition for FDI between countries is intensifying, forcing economies to continually upgrade their investment environments.

Under these conditions, Vietnam must continue enhancing its investment competitiveness, as FDI remains an important source of capital for growth. However, to utilize it effectively and sustainably, clear strategic objectives and new management approaches are required. The overarching view is that FDI is a key driver but cannot replace domestic capacity, and that the focus must shift from quantity to quality, linked to innovation and sustainable development.

Accordingly, by 2030 the priority is to improve FDI quality and increase localization rates, while Vietnam aims to become a regional technology hub in the 2035-2045 period, with FDI shifting strongly toward RD and innovation.

A comprehensive set of solutions must be implemented to achieve this: institutional breakthroughs to ensure policy stability and investor protection; administrative reform through digitalization, shortening licensing timelines and handling procedures, and moving toward data-driven governance.

At the same time, FDI should be selectively attracted into priority sectors such as semiconductors, AI, renewable energy, and support industries, with clear criteria on technology, ESG standards, and domestic links.

Infrastructure remains a critical pillar, with a focus on synchronized transport development, energy security, and the expansion of digital infrastructure such as 5G and data centers. In parallel, high-quality human resources must be developed through training aligned with the needs of Industry 4.0, stronger links between enterprises and educational institutions, and the attraction of international talent.

In addition, stronger links between FDI and domestic enterprises should be promoted through the development of support industries, particularly small and medium-sized enterprises (SMEs), encouraging localization and fostering leading domestic firms. Incentive policies also need to shift toward supporting RD and innovation rather than relying solely on tax incentives, while promoting green FDI aligned with ESG standards and carbon reduction goals.

Based on these solutions, the implementation roadmap is divided into three phases: 2025-2030 focuses on institutional completion and attracting high-tech FDI; 2031-2035 aims to upgrade Vietnam’s position in the global value chain; and 2036-2045 targets the establishment and effective operation of innovation hubs to meet the requirements of a developed economy.

From these breakthrough recommendations, it is clear that a fundamental shift in the approach to FDI management and attraction is urgently required. First, the “one-stop-shop” mechanism must be effectively implemented to shorten processing times, reduce compliance costs, and improve transparency. This is not only an administrative reform but also a direct competitive factor in attracting green and high-tech FDI, which demands speed and policy stability.

At the same time, developing new industrial parks and gradually transforming existing ones into “eco-industrial parks” is aligned with sustainable development trends. This model optimizes resource use, reduces emissions, protects the environment, and enhances competitiveness in attracting high-quality FDI, particularly as ESG standards increasingly become a “mandatory ticket” for global capital flows.

All of this indicates that Vietnam is at a critical juncture, shifting from “attracting FDI” to “managing and selecting FDI.” If implemented effectively, by 2030 the economy could be significantly upgraded; and by 2045 the goal of becoming a developed country will have a stronger foundation, not only in scale but also in growth quality and internal capacity.

(*)Dr. Phan Huu Thang is the former Director General of the Foreign Investment Agency at the Ministry of Planning and Investment, now the Ministry of Finance)

VET-Dr. Phan Huu Thang(*)

PM asks for further simplification of administrative procedures

Sat, 16 May 2026 01:10:00 GMT

The move aiming to reduce bureaucratic burdens on citizens and businesses, contributing to Vietnam’s goal of achieving double-digit economic growth.

Prime Minister Le Minh Hung has directed ministries and agencies to significantly streamline administrative procedures in key sectors, including fire prevention and fighting, construction, environmental management, and industrial parks and clusters, with implementation targeted for May and June 2026.

The move aims to reduce bureaucratic burdens on citizens and businesses, contributing to Vietnam’s goal of achieving double-digit economic growth.

Under the directive, the ministries of Public Security, Industry and Trade, Agriculture and Environment, Finance, and Construction are required to review and incorporate relevant recommendations from the Ministry of Justice to simplify administrative procedures within their authority by the end of May 2026. Matters beyond their jurisdiction must be submitted to higher authorities for consideration and implemented by June.

The Prime Minister also called for the urgent completion of proposed reforms on decentralization, administrative simplification, and business conditions for inclusion in a draft government resolution.

In the industrial cluster sector, the Ministry of Industry and Trade has been tasked with simplifying procedures for establishing and expanding industrial clusters through greater integration and simultaneous processing of administrative steps.

Meanwhile, the Ministry of Construction is expected to finalize amendments to regulations guiding the Construction Law, while the Ministry of Finance will coordinate efforts to establish a unified management body overseeing industrial parks and clusters.

VnEconomy-Hà Lê

Promoting the development of smart cities in a new context

Sat, 16 May 2026 01:00:00 GMT

Experts believe that Vietnam has significant opportunities to develop smart cities in the coming period.

The Vietnam National Innovation Center (NIC) under the Ministry of Finance, in collaboration with Arup Ventures (UK), on May 15 organized the forum “Innovation in the Development of Smart Cities and Smart Factories in Vietnam.”

Amid intensifying global competition increasingly driven by capabilities in data governance, digital infrastructure, and core technologies, models of smart cities and smart factories are emerging as critical foundations for building national competitiveness in the new era.

Speaking at the forum, Mr. Vo Xuan Hoai, Deputy Director of the Vietnam National Innovation Center (NIC), emphasized that smart cities and smart factories are no longer experimental models, but are becoming new growth drivers of the digital and green economy.

In particular, in the new phase of development, a country’s competitiveness is no longer determined solely by market size or natural resources, but increasingly depends on its ability to integrate data, connect infrastructure, and master core technologies.

Mr. Vo Xuan Hoai, Deputy Director of the Vietnam National Innovation Center (NIC), speak at the forum. (Photo:Phuong Nhi)

Currently, Vietnam is having a major opportunity for breakthrough growth, as many localities have begun implementing next-generation urban planning, while domestic technology and industrial enterprises are gradually developing smart manufacturing complexes applying artificial intelligence (AI), digital twins, and advanced automation.

“Therefore, developing ‘Make in Vietnam’ smart city and smart factory platforms will not only enhance governance capacity and labor productivity, but also lay the foundation for Vietnam to achieve double-digit growth, strengthen technological self-reliance, and build competitive strategic industries,” Mr. Hoai affirmed.

Besides, Dr. Dao Thi Nhu, representative of the Urban Development Agency under the Ministry of Construction, shared orientations for building policy frameworks and mechanisms to promote smart urban development in a synchronized manner, ensuring data connectivity and placing people at the center.

Notably, according to Dr. Nhu, there is an urgent need to transform urban planning thinking, from traditional management models to digital governance models based on real-time data. This approach will help improve infrastructure operations while optimizing the management of traffic, energy, environment, and urban public services.

“Smart urban development must be closely aligned with urban planning and sustainable development goals. At the same time, urban data serves as a core foundation, and the development process must place citizens and businesses at the center, while ensuring data safety and security,” she stressed.

From an international perspective, Mr. Ricky Tsui, Director and Head of Investment and Business Development for Asia-Pacific at Arup, shared experiences in implementing smart city and smart infrastructure models across many developed countries.

Mr. Tsui noted that as cities face mounting pressures from population growth, environmental challenges, and energy demand, digital technologies and real-time data will serve as the “central nervous system” of smart cities. Through continuous data collection, analysis, and processing, these systems enable urban authorities to monitor, forecast, and make more timely and accurate decisions in managing infrastructure, transportation, energy, and the environment.

“In particular, digital twin technology in smart cities not only supports the simulation of planning and infrastructure operations, but also enables cities to anticipate risks, optimize resources, and enhance resilience against socio-economic fluctuations and climate change,” Mr. Tsui added.

According to experts, Vietnam is fully capable of mastering core technologies in AI, cybersecurity, and IoT, provided that it adopts long-term investment strategies and builds a supportive ecosystem. At the same time, as data becomes a strategic asset, ensuring cybersecurity and safety for critical infrastructure systems will be a prerequisite for all future smart city models.

VnEconomy -Phuong Nhi

Opportunities and challenges ahead of Vietnam's economy

Fri, 15 May 2026 09:30:00 GMT

The positives in Vietnam’s economic performance in the first four months of 2026 were accompanied by a growing number of constraints.

Vietnam’s economy continued to sustain a broad-based recovery in the first four months of 2026, with positive signs coming from industrial production, investment, and international goods trade. Alongside this growth momentum, however, inflationary pressures have risen rapidly, input costs have climbed, the trade deficit has widened, and structural risks, particularly dependence on the FDI sector, are becoming increasingly evident constraints on the economy’s goal of achieving high and sustainable growth.

Industrial production remains resilient

One bright spot in the economic picture for the first four months was that industrial production maintained solid growth. The Index of Industrial Production (IIP) rose 9.2 per cent, up 0.6 percentage points against the same period last year. Within this, manufacturing and processing, the main driver of growth, expanded 9.9 per cent.

However, behind these impressive figures are signs suggesting that production momentum is beginning to slow. Growth in manufacturing and processing was 0.7 percentage points lower than in the same period last year, indicating that the sector’s rebound is not as strong as in earlier phases.

The April 2026 Purchasing Managers’ Index (PMI) further reinforced this assessment, declining to 50.5 points; close to the contraction threshold. Notably, new orders fell for the first time in eight months, while the pace of output growth slowed significantly.

One major concern is that input costs have risen at the fastest rate in 15 years, driven primarily by higher fuel, oil, and transportation costs amid geopolitical instability in the Middle East. To offset these pressures, companies have been forced to raise selling prices, resulting in the fastest increase in output prices since 2011.

This indicates that the production sector is being “squeezed” from both ends, with rising costs and weakening demand. As higher output prices dampen consumer demand, the cost-price spiral could become a significant drag on growth in the months ahead. While production continues to expand in scale, growth momentum is clearly weakening under pressure from rising costs and softening market demand.

Inflation accelerates

Consumer price developments in the first four months show that inflationary pressures are rising faster than expected. The CPI in April increased 5.46 per cent year-on-year, bringing the CPI for the four-month period to 3.99 per cent. This increase, in the context of simultaneously rising input and output prices, suggests that inflationary pressure for 2026 as a whole will be substantial. The target of keeping inflation at around 4.5-5 per cent is facing considerable challenges.

Unlike previous periods, current inflation is strongly characterized by cost-push factors. Higher fuel prices, raw material costs, and logistics expenses have affected multiple sectors, pushing up the overall price level across the economy.

Meanwhile, monetary policy space is becoming increasingly limited, as policymakers must balance inflation control with growth support. Without flexible and timely management, inflation could quickly become the most significant constraint on macro-economic policy in the months ahead. Inflation is no longer a latent risk but an immediate pressure, directly narrowing both monetary and fiscal policy space.

Businesses rise Institutional reform

Some 119,400 enterprises entered the market in the first four months of the year, including 77,800 newly-established enterprises and 41,600 resuming operations. This is a positive sign, reflecting an initial improvement in business confidence.

On the other hand, the number of enterprises exiting the market remained high, at 108,900. The exit rate was equivalent to 91.2 per cent of total new entries, indicating that the business environment remains challenging, particularly amid rising input costs, weak demand, and limited corporate resilience.

The structure of newly-established enterprises continued to be heavily skewed toward consumer service sectors, while productive capacity has not improved proportionally. Though business activity is becoming more dynamic in terms of quantity, quality and durability remain persistent weaknesses. This poses a barrier to improving the quality of economic growth over the medium and long term.

A notable institutional highlight in the first four months was the government’s issuance of eight resolutions aimed at cutting and simplifying administrative procedures and business conditions on an unprecedented scale. The removal of 184 administrative procedures and 890 business conditions, if effectively implemented, could reduce compliance time and costs for businesses by more than 50 per cent. This sends a strong signal of commitment to reform, helping to reinforce confidence among businesses and investors.

However, the issue is not only how much is cut but whether these reductions are substantive or merely procedural shifts. The effectiveness of reform will depend on decentralization, accountability, and implementation capacity. Institutional reform will only deliver real impact if it goes beyond reducing the number of procedures and conditions and ensures meaningful changes in practice.

Public investment Strong FDI inflows

Public investment disbursement in the first four months reached VND187.1 trillion ($7.2 billion), equivalent to 19.7 per cent of the annual plan and up 10.4 per cent year-on-year. This represents solid progress, contributing to growth support amid ongoing difficulties in the private sector.

Public investment continues to play a leading role as the economy requires stimulus. However, its spillover effects appear to be weakening. Specifically, each VND1 of public investment in 2024 leveraged VND3.12 from the non-State sector and VND0.92 from the FDI sector, while these figures declined to VND2.63 and VND0.80, respectively, in 2025.

The diminishing ability of public investment to draw in capital from the private and FDI sectors suggests that links and spillover effects across economic sectors have not improved significantly.

FDI inflows continued to be a bright spot in the first four months of 2026. Total registered FDI stood at $18.24 billion, up 32 per cent year-on-year. Notably, the average size of newly-licensed projects rose sharply, to $9.7 million, while disbursed FDI reached $7.4 billion; the highest level in five years and reflecting sustained confidence among foreign investors in Vietnam’s investment environment.

However, a closer look at the structure of FDI reveals a noteworthy trend: a shift from greenfield investment toward acquisitions of existing assets. Of total registered capital, as much as $2.96 billion came from capital contributions and share purchases, up 61.9 per cent year-on-year. Notably, foreign investor purchases of domestic shares that did not increase charter capital reached $2.51 billion, accounting for 13.76 per cent of total registered FDI and 2.57-times higher than in the same period of 2025. This suggests that a significant portion of FDI inflows do not create new productive capacity but instead reflect transfers of ownership of existing domestic enterprises and assets.

This development reflects two sides of the same coin. On the positive side, the increase in merger and acquisition (MA) activity indicates that Vietnam is becoming an increasingly attractive destination for international investors, particularly amid global supply chain restructuring. It also provides domestic firms with access to capital, technology, and management expertise.

On the downside, the trend suggests that domestic enterprises are in a weaker position in terms of capital and financial capacity. Faced with rising costs and tightening cash flow, many are compelled to sell equity as a survival strategy.

More concerning is that if FDI continues to tilt heavily toward MA without accompanying production expansion, the economy could experience capital growth without a corresponding increase in productive capacity. In such a scenario, FDI would no longer serve as a driver of new production capacity, but rather as a mechanism for reallocating ownership.

In the long term, a rising share of foreign ownership in domestic enterprises, especially in strategically-important sectors, could undermine economic independence and autonomy if not guided by appropriate screening and policy frameworks.

Moreover, compared with greenfield FDI, MA flows tend to generate weaker technology spillovers, fewer supply chain links, and lower job creation, while posing higher risks of profit repatriation. In this context, attracting FDI is no longer just about scale or growth, but about quality, structure, and the extent of its real contribution to the economy. FDI policy must therefore shift from a focus on quantity to one on quality, ensuring that inflows expand productive capacity, increase value-added, and strengthen links with the domestic sector.

International trade surges Competition recovers

Total export and import turnover stood at $344.17 billion in the first four months, up 24.2 per cent. However, the trade balance shifted to a deficit of $7.11 billion; a notable reversal compared to the same period last year.

Monthly trade dynamics show imports growing faster than exports, reflecting enterprises’ efforts to ramp up raw material imports amid expectations of further price increases.

More notably, dependence on the FDI sector continues to deepen. Exports from this sector accounted for as much as 80 per cent of total export turnover, rising 25.8 per cent year-on-year, while exports from the domestic sector were nearly flat, increasing by just 0.4 per cent.

This underscores that export growth still relies heavily on the FDI sector, while the economy’s internal capacity has yet to improve proportionately. Though international trade is expanding strongly, its structure remains imbalanced, with growing dependence on FDI.

Total retail sales of goods and consumer service revenue increased by 6.3 per cent in the first four months, lower than the 7.7 per cent growth recorded in the same period of 2025 and below the 7 per cent growth seen in the first quarter.

Notably, this growth was partly supported by spending from 8.8 million international tourist arrivals to Vietnam, suggesting that domestic purchasing power and consumption demand are recovering only slowly.

Amid rising prices and eroding real incomes, consumers are tightening spending, weakening the role of domestic demand as a growth driver. The slow recovery of domestic demand is becoming a bottleneck for growth.

Stabilizing the macro-economy

Vietnam’s economy is currently facing a range of risks. Policy management therefore needs not only to support growth but also to focus on risk control, risk management, and restructuring the foundations and drivers of economic development.

First, priority should be given to controlling inflation and maintaining macro-economic stability. As cost-push inflation intensifies, monetary policy must be more flexible and prudent, avoiding excessive easing that could put further pressure on prices. Fiscal policy should be more proactive in reducing costs for businesses through targeted tax and fee deferrals, reductions, and exemptions.

Second, efforts should focus on reducing input costs across the economy, from logistics and energy to compliance costs. The government’s issuance of resolutions to cut administrative procedures is a timely and appropriate step, but effective implementation is critical to avoid a situation where procedures are “reduced on paper but unchanged in practice.”

Third, in the context of weak domestic demand, coordinated measures are needed to stimulate consumption in a sustainable manner, linked to improving real incomes and strengthening consumer confidence, rather than relying solely on short-term stimulus measures.

Fourth, FDI attraction policies should be reoriented toward improving quality. The goal should not only be to attract more capital but also to prioritize investment that creates new productive capacity, facilitates technology transfer, and strengthens links with domestic enterprises. Appropriate screening and monitoring mechanisms are needed for MA transactions, particularly in key sectors.

Fifth, stronger development of the domestic business sector, especially industrial enterprises and those participating in value chains, is essential. Without enhancing internal capacity, the economy will remain dependent on the FDI sector, and structural risks will continue to increase.

Finally, improving the efficiency and spillover effects of public investment must become a top priority. Beyond accelerating disbursement, it is crucial to select projects that appeal to private investment and generate long-term growth momentum.

The first four months revealed that Vietnam’s economy has maintained its recovery momentum, with bright spots in production, investment, and international trade. However, inflationary pressures, rising costs, weak aggregate demand, and structural risks are posing significant challenges for macro-economic management.

As growth constraints become more apparent and increasingly interconnected, policy space is no longer as ample as before. This requires that macro-economic management be more proactive, flexible, and targeted, rather than broad-based.

In this context, maintaining macro-economic stability, controlling inflation, reducing costs, and strengthening the economy’s internal capacity will be decisive in securing growth quality going forward. At the same time, restructuring growth drivers toward a more balanced relationship between the domestic and FDI sectors, as well as between exports and domestic consumption, will be critical.

With the government’s commitment to reform, the National Assembly’s support, and the resilience of the business community, Vietnam’s economy has a solid basis to overcome its current constraints, successfully control inflation, strengthen internal capacity, and improve the quality of growth in the time ahead.

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

VET-Dr. Nguyen Bich Lam(*)

Bac Ninh announces housing projects open to foreign ownership

Fri, 15 May 2026 09:00:00 GMT

This move aims to improve the provincial investment environment and provide housing support for the foreign community currently living and working in the northern province.

The People's Committee of Bac Ninh Province, northern Vietnam, has officially announced two residential investment projects where foreign organizations and individuals are permitted to own property.

The first project is the Song Khe - Noi Hoang mixed-use and commercial service housing development, invested by Abey Holdings JSC. Under this project, foreign ownership is permitted specifically within the HH-OCT mixed-use building.

The second project is a mixed-use apartment complex located on Plot CT within the detailed planning of the high-end mixed-use and entertainment urban area in Tan Tien Ward. Developed by Soho Capital JSC, foreign nationals are eligible to own units in buildings R1 and R2.

According to local authorities, this move aims to improve the provincial investment environment and provide housing support for the foreign community currently living and working in Bac Ninh. Under Document No. 2303/UBND-XDCB, the Provincial People’s Committee has directed relevant departments to facilitate for purchase and rental of housing for foreigners.

Specifically, the Department of Construction has been tasked to lead and coordinate with the Provincial Police, the Provincial Military Command, and other relevant units to review and publicly disclose a list of commercial housing projects eligible for foreign ownership on the official portals of the province and the Department. This list must comply with the regulations set forth in the 2023 Housing Law. Furthermore, the department is responsible for proposing solutions to tap into the housing demand of the foreign community.

Project investors and real estate businesses are required to provide transparent and honest legal information regarding their projects, as well as the specific conditions under which foreigners can sign contracts for the purchase, lease-purchase, or rental of housing units.

Vneconomy-Thanh Xuân

HCMC sets target of at least 50 science and technology tasks per year

Fri, 15 May 2026 08:30:00 GMT

The city aims to become a leading STI hub in Southeast Asia, possessing the capacity to research, master, and commercialize advanced technologies.

The Ho Chi Minh City People's Committee has issued Decision No. 2685/QD-UBND, approving the “Science, Technology, and Innovation Potential Enhancement Program for the 2026-2030 Period.”

The program identifies science, technology, and innovation (STI) as the primary drivers for the rapid and sustainable growth of Vietnam's largest metropolis.

Under this plan, the city aims to become a leading STI hub in Southeast Asia, possessing the capacity to research, master, and commercialize advanced technologies. This progress is expected to contribute directly to economic growth, promote sustainable development, and improve the quality of life for its citizens.

The program is built on an enterprise-centric model, where businesses are the heart of the innovation ecosystem. Under this approach, market demand and practical development requirements will serve as a foundation for determining research tasks. Meanwhile, the State will act as a facilitator—perfecting institutions, commissioning key national projects, and coordinating resources for research, application, and technology commercialization.

HCMC is also shifting strongly toward an evaluation mechanism based on output efficiency, practical applicability, and the added value generated by scientific tasks. The city will prioritize the development of ST-based enterprises, innovative startups, spin-offs, and innovative small and medium-sized enterprises (SMEs).

According to the specific targets set for 2030, total social expenditure on research and development (RD) in the city is expected to reach 2-3% of its GRDP, with non-state investment accounting for over 60%. The city strives to implement a minimum of 50 ST tasks annually, with at least 40 tasks reaching final evaluation or completion stages each year.

The city further targets an application rate of at least 60% for research results within 12 months of project completion. Additionally, the proportion of enterprises utilizing research results from institutes and universities in their production and business activities is expected to reach at least 25%. By 2030, HCMC aims to produce at least 3,500 scientific articles in the Scopus/ISI systems and file at least 500 intellectual property applications, including 300 for patents and utility solutions.

A notable objective of the program is the establishment of at least five research centers of international standard in priority fields. Furthermore, the city plans to develop a workforce of at least 5,000 young science and technology professionals during the 2026-2030 period.

Vneconomy-Xuân Nghi

Hanoi plans to support residents to transit to clean vehicles

Fri, 15 May 2026 07:42:00 GMT

Residents will get financial assistance when switching to electric motorbikes under a draft resolution aimed at accelerating the transition from fossil fuel-powered road vehicles to clean energy alternatives.

Hanoi is seeking public feedback on a draft resolution aimed at accelerating the transition from fossil fuel-powered road vehicles to clean energy alternatives, as part of broader efforts to curb pollution and establish low-emission zones across the capital.

Under the proposal, residents with permanent registration or at least two consecutive years of temporary residence in Hanoi who own gasoline-powered motorcycles registered before the resolution takes effect will be eligible for financial support when switching to electric motorbikes priced at VND10 million (approximately $385) or more.

Low-income households would receive subsidies covering 100% of the replacement vehicle’s value, capped at VND20 million, while near-poor households would be eligible for support covering 80% of the cost, up to VND15 million.

The city also plans to subsidize 30% of commercial bank loan interest payments for eligible organizations purchasing clean-energy vehicles, with support available for up to five years. In addition, qualified investors may access financing through the Hanoi Development Investment Fund and the Hanoi Environmental Protection Fund.

City authorities said the proposed maximum support level of VND5 million for general recipients was developed after reviewing similar incentive programs in regional markets, including Taiwan (China), Indonesia, Thailand, China, and Ho Chi Minh City.

The policy forms part of Hanoi’s broader roadmap to control private vehicle use and develop low-emission zones. Beginning July 1 through the end of 2026, the city plans to pilot a low-emission zone in the former Hoan Kiem district’s central core, covering 11 key streets, before expanding the initiative to the Ring Road 1 area between 2028 and 2029.

VnEconomy-Nam Nguyễn

World Financial Innovation Series (WFIS) 2026 scheduled for May 19-20

Fri, 15 May 2026 07:28:00 GMT

This year’s program will focus on pivotal themes such as cloud-native banking, digital currencies, AI and data-driven personalization of financial services, cybersecurity management, financial inclusion, and the future of customer experience in the banking sector.

The World Financial Innovation Series (WFIS) 2026 is set to take place in Hanoi on May 19 and 20.

The event will gather over 500 delegates and C-suite executives, including CEOs, CIOs, CTOs, heads of digital transformation, risk management leaders, regulators, and senior strategic planners from more than 100 of Vietnam’s leading financial institutions, including banks, insurance companies, digital lenders, and microfinance organizations.

According to the organizers, this year’s program will focus on pivotal themes such as cloud-native banking, digital currencies, AI and data-driven personalization of financial services, cybersecurity management, financial inclusion, and the future of customer experience in the banking sector.

The Vietnam Banks Association (VNBA) will continue its involvement as a supporting partner. Representing banks and credit institutions in Vietnam, the VNBA serves as a vital bridge between policy direction and the practical implementation of digital transformation within the financial industry.

WFIS 2026 has also attracted a significant number of international fintech firms and banking solution providers. The Gold Sponsor group includes nCino, StreamCube, Audax, CleverTap, and WSO2. Additionally, the event will feature companies specializing in digital authentication, cloud-based core banking, open finance APIs, data management, and customer engagement, such as Yubico, Pega, Mambu, Brankas, and Viettel Solutions.

The exhibition area will showcase various tech brands, including Sumsub, Feitian, Wultra, OZ Forensics, ABBYY, Freshworks, and Asseco. These companies represent the cutting-edge technologies that Vietnamese financial institutions will need to implement, integrate, and manage in the coming years.

Vneconomy-B.B

Construction of $130m IP commences in Hai Phong

Fri, 15 May 2026 07:00:00 GMT

The northern port city's new industrial park is expected to be ready to welcome first investors in the fourth quarter of 2026.

Authorities in the northern port city of Hai Phong and Hoa Phat Group on May 14 officially broke ground on the Hoang Dieu Industrial Park, a nearly VND3.4 trillion (approximately $130 million) project aimed at strengthening northern Vietnam’s industrial and logistics infrastructure.

The project spans 245 hectares in Gia Phuc commune and is being developed by Hoang Dieu Industrial Park Infrastructure Development JSC, a subsidiary of Hoa Phat Group.

Located within northern Vietnam’s key economic zone, the IP offers strategic connectivity, with direct access to the Hanoi–Hai Phong Expressway and National Highway 37. The site is approximately 55 km from Hanoi's center, 60 km from Dinh Vu Port, 85 km from Noi Bai International Airport, and 35 km from Gia Binh International Airport in northern Bac Ninh province, providing investors with convenient access to major production and logistics networks across the region.

The project is designed to provide industrial land, ready-built factories, warehouses, and office space, with priority given to high-tech manufacturers, supporting industries, and logistics companies.

According to the project timeline, the first phase of technical infrastructure is expected to be completed and handed over to the first investors in the fourth quarter of 2026.

VnEconomy-Mai Hoàng

Vietnam, EU expand strategic technology and innovation cooperation

Fri, 15 May 2026 03:00:00 GMT

Both sides identifying strategic sectors such as artificial intelligence, semiconductors, and digital infrastructure as key priorities for future collaboration.

Vietnam and the European Union are seeking to deepen cooperation in science, technology, and innovation, with both sides identifying strategic sectors such as artificial intelligence, semiconductors, and digital infrastructure as key priorities for future collaboration.

Minister of Science and Technology Vu Hai Quan on May 14 met in Hanoi with H.E. Mr. Julien Guerrier, Ambassador of the European Union to Vietnam, to discuss directions for strengthening bilateral cooperation in scientific research, technological development, and innovation.

During the meeting, the EU ambassador reaffirmed the EU’s commitment to supporting Vietnam’s efforts to become an associated country under Horizon Europe, the EU’s flagship research and innovation framework program for 2021–2027, with a total budget of approximately EUR93.5 billion ($101 billion).

The ambassador also proposed expanding collaboration in a range of strategic sectors, including artificial intelligence, semiconductor technology, 5G and 6G networks, telecommunications satellites, nuclear safety, rare earth extraction technologies, technical standards and regulations, and railway technologies.

Highlighting the growing importance of Vietnam-EU cooperation in science, innovation, and digital transformation, Minister Vu Hai Quan emphasized the need to focus on practical and strategically significant areas capable of delivering tangible outcomes.

Vietnam has proposed several priority areas for cooperation, including closer collaboration on technical standards and railway technology, stronger links among research institutions, laboratories, and funding mechanisms, and expanded support for young scientists and technology startups.

Both sides also aim to enhance connections between technology companies, research institutes, and innovation networks, while advancing joint initiatives in AI, semiconductors, digital technologies, clean energy, environmental technologies, and nuclear safety.

VnEconomy-Hạ Chi

2026 supporting industry infrastructure map unveiled to boost global supply chain integration

Fri, 15 May 2026 02:00:00 GMT

This initiative aims to increase localization rates, enhance the competitiveness of Vietnamese firms, promote exports, and gradually help local businesses integrate more deeply into global supply chains.

The VASI Supporting Industry Infrastructure Map 2026 has been unveiled during an event held on May 14, drawing participation from the supporting industry community as well as various domestic and foreign business associations.

The event was jointly organized by the Infrastructure Board of the Vietnam Association for Supporting Industries (VASI), in collaboration with DTJ Industrial.

The central message of the program is to create a synchronized, modern, green, and internationally competitive supporting industry ecosystem. In this environment, businesses will not only access land and production infrastructure but will also be connected to supply chains, technology, factory support services, logistics, and strategic investment resources.

At the event, VASI’s Infrastructure Board announced seven key supporting industry infrastructure development hubs in Northern Vietnam and provided an analysis of the Red River Delta supply chain. Additionally, two key industrial clusters in Thai Nguyen and Hung Yen were introduced. These projects are designed as concentrated supporting industry models, featuring shared infrastructure, supply chain connectivity, and optimized operations tailored for small and medium-sized enterprises (SMEs) in the sector.

Vice President and Head of VASI’s Infrastructure Board, Mr. Nguyen Quoc Khanh, stated that the "VASI Supporting Industry Infrastructure Map" is expected to become a specialized data and investment platform for the Vietnamese supporting industry community. This initiative aims to increase localization rates, enhance the competitiveness of Vietnamese firms, promote exports, and gradually help local businesses integrate more deeply into global supply chains."

Deputy Director of the Industry Agency under the Ministry of Industry and Trade, Mr. Pham Van Quan, noted that this marks the beginning of a transition toward "new-style" industrial parks and clusters in Vietnam. In these areas, businesses move beyond simply leasing land for production to participating in an integrated, green, and modern industrial ecosystem.

"Forming deep industry-linked clusters is a vital step in creating a sustainable foundation for Vietnam's supporting industries, facilitating business operations, attracting investment, and strengthening cooperation between domestic and international firms," said Mr. Quan.

Vice President of the Vietnam Green Transformation Association, Ms. Phung Thi Thu Huong, evaluated the move as being in line with global industrial trends.

According to her, the new generation of foreign investment no longer focuses solely on tax incentives or low labor costs. Instead, it is shifting toward factors such as synchronized infrastructure, local supply chains, Environmental, Social, and Governance (ESG) standards, green energy, and global production connectivity. This requires Vietnam to rapidly establish highly specialized supporting industry ecosystems capable of meeting international standards.

Vneconomy-Phan Nam