VnEconomy - Vietnam Economic Times

HCM City disburses 41.2% of 2026 public investment capital

Sun, 16 Aug 2026 23:00:00 GMT

The southern city’s total public investment plan for 2026 stands at VND147.6 trillion ($5.6 billion).

Ho Chi Minh City has disbursed VND60.75 trillion ($2.3 billion) in public investment capital as of July 29, equivalent to 41.2% of the annual plan assigned by the Prime Minister.

The municipal People’s Committee has issued a document urging local departments, agencies and relevant units to accelerate public investment disbursement and set out a detailed disbursement plan for the remaining months of 2026.

According to the committee, the city’s total public investment plan for 2026 stands at VND147.6 trillion ($5.6 billion).

The city has maintained its target of disbursing 100% of the public investment capital allocated by the Prime Minister this year. Specifically, it aims to reach a disbursement rate of 70% by the end of the third quarter and 100% by the end of the fourth quarter.

-Thien An

Production network transformation

Sun, 16 Aug 2026 07:20:00 GMT

An era of significant restructuring awaits the vast majority of global production chains.

After more than three decades of globalization-driven growth, global production networks are entering a period of profound restructuring. The Covid-19 pandemic, geopolitical conflicts, strategic rivalry between major powers, rising trade protectionism, the green transition, and the rapid advancement of AI have prompted companies to redesign their manufacturing networks to be more flexible and resilient.

The shift extends far beyond relocating factories from one country to another. It involves reallocating higher value-added activities, including RD, design, data management, and technology development. As a result, low-cost labor alone is no longer sufficient to sustain a country’s investment appeal without accompanying strengths in innovation, technology, and institutional quality.

Where companies once prioritized cost efficiency, they now place greater emphasis on supply chain resilience and security. According to the United Nations Conference on Trade and Development (UNCTAD)’s World Investment Report 2025, FDI is increasingly shaped by industrial policy, economic security, and strategies to develop industries such as semiconductors, AI, batteries, and clean energy, rather than by labor costs alone. Many analysts argue that the world is moving from globalization toward “re-globalization,” with production networks becoming increasingly multi-centered and less dependent on a single location.

Against this backdrop, investment destination criteria are also evolving. Multinational corporations are placing greater weight on workforce quality, innovation capacity, digital infrastructure, logistics, reliable electricity supply, and transparent investment environments. Competition between countries is therefore shifting from offering low-cost manufacturing to creating high-value ecosystems capable of attracting RD, design, data, and technology development activities.

Drivers reshaping global production chains

While the previous era of globalization was driven primarily by cost optimization, multinational companies are now building investment strategies based on an entirely new set of criteria. Economists have identified three major forces driving this restructuring.

Trade policy is reshaping investment flows

The first driver is the changing trade policies of major economies, particularly the US. Whereas tariffs were once used mainly to regulate trade and protect domestic industries, they are now increasingly tied to industrial policy, economic security, and supply chain restructuring.

Since 2018, the US has imposed additional tariffs on imports from China under Section 301 of the Trade Act of 1974. Following a review in 2024, Washington further increased tariffs on a range of strategic products, including electric vehicles (EVs), batteries, semiconductors, and critical minerals. Tariffs on Chinese-made EVs, for example, were raised to 100 per cent.

As access to the US market becomes an increasingly important consideration, multinational corporations are reassessing their manufacturing footprints. Investment decisions are no longer based solely on labor costs but also on tariff risks, investment stability, free trade agreements (FTAs), and the ability to comply with environmental and labor standards.

According to the OECD, this trend reflects a shift from cost optimization to resilience optimization. As a result, strategies such as friend-shoring and near-shoring are becoming increasingly widespread.

AI is redefining countries’ competitive advantages

If trade policy represents the external driver, AI and automation are the internal forces transforming the nature of global manufacturing.

According to the International Federation of Robotics (IFR), the number of industrial robots continues to rise rapidly, while AI, big data, cloud computing, and the Internet of Things (IoT) are reshaping the entire manufacturing process.

AI is no longer limited to automating individual production tasks. It is increasingly embedded across the value chain, from product design and production planning to inventory management, demand forecasting, quality control, and equipment maintenance, enabling companies to improve productivity while reducing costs.

The McKinsey Global Institute estimates that generative AI could contribute trillions of dollars to the global economy annually, suggesting that competitive advantage will increasingly depend on technological capabilities rather than inexpensive labor.

As robots and AI replace a growing share of manufacturing activities, multinational companies are expected to favor countries with highly-skilled workforces, advanced digital infrastructure, and strong innovation ecosystems. Competition for investment is therefore expanding beyond industrial parks to encompass education quality, research capacity, and workforce development.

Supply chain resilience becomes the top priority

Alongside trade policy and AI, supply chain resilience has emerged as a central consideration in corporate investment strategies.

Disruptions caused by the Covid-19 pandemic, the global semiconductor shortage, the Russia-Ukraine conflict, tensions in the Red Sea, and increasingly-frequent extreme weather events have highlighted the risks of concentrating production in a single location.

Rather than focusing exclusively on minimizing costs, many multinational corporations are building multi-hub production networks spanning multiple countries and regions. The objective is to reduce risk exposure while ensuring business continuity in the face of future disruptions.

Preparing for the next cycle

The restructuring of global production networks is prompting countries to rethink their industrial development strategies. Rather than competing primarily through investment incentives, major economies are focusing on building technology ecosystems to gain an edge in industries expected to drive long-term growth, including semiconductors, AI, robotics, batteries, clean energy, data centers, and advanced materials.

The US has launched large-scale industrial policies aimed at rebuilding domestic manufacturing capacity. The CHIPS and Science Act supports the development of the semiconductor industry, while the Inflation Reduction Act (IRA) promotes investment in EVs, batteries, and clean energy. Together, these measures are designed to reduce dependence on overseas supply chains while attracting strategic technology investments.

The EU is pursuing a similar strategy through the European Chips Act and the Net-Zero Industry Act, which seek to expand production of semiconductors, batteries, green hydrogen, critical raw materials, and clean energy technologies. The goal is to strengthen Europe’s technological sovereignty and long-term competitiveness.

Across Asia, Japan, South Korea, and China are all accelerating investment in AI, robotics, semiconductors, and smart manufacturing. Japan is encouraging companies to reshore part of their manufacturing capacity, while South Korea is reinforcing its leadership in semiconductor production and expanding into AI chips. China continues to invest heavily in advanced technologies to upgrade its manufacturing base. Despite mounting external pressures, it retains significant advantages through its comprehensive industrial ecosystem and vast domestic market.

A common theme across the world’s leading economies is the shift away from relying on low-cost labor and tax incentives toward building innovation-driven ecosystems supported by skilled talent, digital infrastructure, technology companies, RD capabilities, and robust support industries. As multinational corporations evaluate investment destinations, they are placing greater emphasis on the strength of an economy’s overall innovation ecosystem rather than standalone incentives. As a result, investment in education, science and technology, and digital transformation is becoming an increasingly decisive factor in national competitiveness.

New window of opportunity

Vietnam is among the few economies to have benefited significantly from more than three decades of globalization. Political stability, a strategic location, a large workforce, and a network of 17 FTAs have helped position the country as a key link in regional and global production networks.

Once known primarily for exporting agricultural products and garments, Vietnam has become a major manufacturing hub for many of the world’s leading technology companies, producing electronics, mobile devices, computers, components, precision engineering products, and electrical equipment.

According to the Ministry of Finance and the Foreign Investment Agency, foreign-invested enterprises (FIEs) now account for more than 70 per cent of Vietnam’s total exports while acting as a key driver of industrial growth and international economic integration. These figures underscore the country’s deep integration into global production networks.

The question today, however, is no longer whether Vietnam can continue attracting FDI, but what kind of FDI it will attract in the next phase of development. In the past, success was often measured by the number of investment projects or the total amount of registered capital. Today, those metrics alone no longer reflect the quality of investment. What matters increasingly is whether a project brings advanced technology, establishes RD centers, develops a highly-skilled workforce, and helps build domestic supplier networks. In other words, the value of FDI is now measured less by the size of the investment and more by its spillover effects across the economy.

Economists argue that multinational corporations will increasingly choose not only where to build factories but also where to establish design centers, technology research facilities, AI development hubs, semiconductor plants, data centers, battery production, and clean energy projects. These knowledge-intensive industries will play a defining role in determining a country’s position in global value chains.

For Vietnam, that means its competitive advantages must evolve to the next level. For many years, competitive labor costs were one of Vietnam’s greatest attractions for international investors. But as AI, robotics, and automation transform manufacturing, the importance of inexpensive labor is steadily diminishing.

The smart factories of the future will likely require fewer production workers but far more engineers, software developers, data specialists, and highly-skilled technicians. This makes it increasingly urgent for Vietnam to strengthen higher education, vocational training, digital skills and the development of a high-tech workforce.

If the country fails to keep pace with technological change, its traditional labor-cost advantage will erode quickly. That is why many experts argue that competition between nations is increasingly a competition for talent.

Another decisive factor is the strength of domestic enterprises. The experience of South Korea, Taiwan (China), and, more recently, Malaysia shows that countries that successfully attract FDI do not stop at becoming assembly bases. Instead, they gradually build domestic companies capable of joining the supply chains of multinational corporations.

Local firms often begin by supplying packaging, basic components, or logistics services. Over time, they move into product design, component manufacturing, advanced materials research, software development, and even co-developing new products. This progression allows a larger share of value-added to remain within the domestic economy.

For Vietnam, this may be the country’s greatest challenge in the years ahead. If local companies cannot integrate more deeply into global supply chains, much of the value created will continue to flow to FIEs. But if Vietnam succeeds in building a robust support-industry ecosystem, it can evolve from a manufacturing base into a regional center for innovation and technology development.

Despite intensifying global competition, Vietnam retains several important advantages. Political stability, a strategic location in the Asia-Pacific region, a domestic market of over 100 million people, an extensive FTA network, and a national focus on science and technology, innovation, and the digital economy provide a strong foundation for the country to deepen its role in global production networks.

New manufacturing era

Recent shifts in the global economy make it clear that the restructuring of global production networks is not a temporary cycle, nor simply the result of trade disputes. It represents a fundamental transformation of the global manufacturing landscape, one in which the factors determining national competitiveness are changing more rapidly than at any point in the past three decades.

For Vietnam, this transition presents a rare opportunity to move up the global value chain. But opportunity alone will not guarantee success. To capitalize on it, the country must prepare strategically. International experience and current trends point to five key policy priorities.

First, Vietnam must shift its focus from the quantity of FDI to its quality. For many years, the number of FDI projects and the amount of registered capital were the primary measures of investment success. Today, those indicators no longer tell the whole story.

The real value of an investment lies not only in its dollar size but in whether it transfers advanced technology, develops skilled talent, establishes RD centers, integrates local suppliers, and creates new industries. Vietnam’s objective should therefore shift from attracting more investment to attracting investment that generates greater value added.

Second, Vietnam must strengthen its domestic enterprises. The experience of successful economies shows that FDI delivers lasting benefits only when its gains spill over into the domestic business sector.

If Vietnamese companies remain limited to providing low-value services, most of the economic value created by foreign investment will continue to flow overseas. But if local firms can expand into component manufacturing, product design, advanced materials research, software development, and technology, Vietnam will steadily strengthen its position in global value chains.

Third, Vietnam must invest in human capital ahead of technological change. AI, robotics, and automation are rapidly reshaping labor markets. Skills that once provided a competitive advantage may no longer be sufficient in the era of smart manufacturing.

Vietnam therefore needs to modernize higher education, vocational training, and workforce reskilling, with greater emphasis on digital technologies, semiconductors, AI, data science, automation, green energy, and advanced manufacturing. In the long run, investment in people will remain the country’s highest-return investment.

Fourth, Vietnam must build a stronger innovation ecosystem. In the next phase of global competition, a modern industrial park alone will no longer be enough. A competitive economy also requires world-class universities, research institutes, RD centers, technology companies, venture capital for innovation, and strong intellectual property protection. Together, these elements form the ecosystem needed to nurture new industries and attract high-tech investment. Increasingly, multinational companies are evaluating the strength of an entire innovation ecosystem rather than standalone investment incentives.

Fifth, Vietnam must improve strategic foresight and policymaking. One of the clearest lessons of recent years is that geopolitical tensions, trade policy shifts, and technological breakthroughs can rapidly reshape global investment flows.

Vietnam therefore needs stronger research capabilities, better economic forecasting, and more agile policymaking to keep pace with the evolving global business environment. Closely tracking emerging trends will enable the country to develop more effective industrial strategies, attract higher-quality investment, and integrate more deeply into the world’s emerging value chains.

For Vietnam, the restructuring of global production networks is about far more than attracting new factories or expanding exports. More fundamentally, it offers an opportunity to transform the country’s growth model, from one built on low-cost labor to one driven by knowledge, technology, and innovation.

In this new era, national competitiveness will no longer be measured by the number of industrial parks or the volume of FDI alone. Rather, it will depend on Vietnam’s ability to develop technology, generate knowledge, build globally-competitive domestic enterprises, and capture the highest value-added segments of global production networks. That will be the true measure of sustainable competitiveness in the age of AI and the green transition.

-Vietnam Economic Times / VnEconomy’s Strategic Research Team

Hue city attracts nearly $354m in investment in 7M

Sun, 16 Aug 2026 07:10:00 GMT

The central city granting investment approval to 11 new projects with combined registered capital of VND9.157 trillion ($348 million) during the first seven months of 2026.

Central Hue city attracted nearly VND9.3 trillion ($354 million) in registered investment into its economic and industrial zones in the first seven months of 2026, reaching 92.7% of the full-year target.

According to the Hue Economic and Industrial Zones Management Authority, the city granted investment approval to 11 new projects with combined registered capital of VND9.157 trillion during the period. Five existing projects also increased their investment capital by nearly VND119 billion.

Disbursed investment reached nearly VND5.3 trillion, up 33% year-on-year.

The city’s economic and industrial zones currently host 203 valid projects with total registered capital exceeding VND152 trillion ($5.77 billion), including 139 projects already in operation.

Hue has established 12 industrial clusters covering more than 405 hectares. Five operational clusters have attracted 131 projects, with an occupancy rate exceeding 73% and employment for around 10,000 workers.

-Nguyen Thuan

For greater impact of public investment on GDP growth

Sun, 16 Aug 2026 01:20:00 GMT

Public investment must be accelerated and efficiency improved if it is to contribute to Vietnam posting double-digit GDP growth in 2026.

The year 2026 is the first year of Vietnam’s Socio-Economic Development Plan for the 2026-2030 period and also marks the country’s largest public investment program on record. The National Assembly has approved approximately VND1,080 trillion ($41.5 billion) in State budget investment, while the allocation assigned and updated by the Prime Minister through mid-July stood at some VND1,014 trillion ($39 billion).

Despite the unprecedented funding, implementation has fallen short of expectations. According to the National Statistics Office at the Ministry of Finance (MoF), State budget-funded investment implemented during the first half of 2026 was estimated at VND335.6 trillion ($12.9 billion), up 12.7 per cent year-on-year but well below the 22.6 per cent growth recorded in the same period of 2025.

Yet the challenge extends beyond spending the allocated budget. The priority is to convert public funds into completed infrastructure, new productive capacity, and higher value-added output. That requires shifting the focus of public investment management from headline disbursement rates to project-level execution, with greater emphasis on critical paths, bottleneck resolution, and clear accountability.

Heavy disbursement burden

Under the original allocation, total State budget investment amounted to VND995.35 trillion ($38.3 billion), including VND345.12 trillion ($13.3 billion) from the central government budget and VND650.23 trillion ($25 billion) from local governments. Following subsequent revisions, the allocation had increased to VND1,014 trillion ($39 billion) by mid-July.

Public investment disbursement reached VND356.9 trillion ($13.7 billion) in the first half of the year, equivalent to 35.5 per cent of the Prime Minister’s annual target and VND38.4 trillion ($1.5 billion) higher than in the same period of 2025. Progress continued in July, with disbursement rising to VND370.85 trillion ($14.3 billion), or 36.8 per cent of the annual plan, by July 9, and VND378.01 trillion ($14.5 billion), or 37.3 per cent, by July 16.

The pace of implementation, however, remained uneven. Only about VND7.16 trillion ($275 million) was disbursed during the week of July 10-16, equivalent to 72 per cent of the previous week’s total. By July 16, just eight ministries and central agencies and 22 cities and provinces had achieved disbursement rates at or above the national average.

It is also important to distinguish between “investment implemented”, as estimated by statistical authorities, and “investment disbursed”, which refers to payments processed through the treasury system. Implemented investment measures the actual volume of work completed during the reporting period, while disbursement may include advance payments, settlements for work completed in earlier periods, or expenditures that have yet to create productive assets. As a result, public investment’s contribution to GDP depends primarily on investment actually carried out rather than the total amount disbursed.

To achieve 95 per cent of the annual plan, Vietnam would need to disburse an additional VND585.5 trillion ($22.5 billion) between the second half of July and year’s-end. Reaching 100 per cent would require another VND636.2 trillion ($24.5 billion), equivalent to average monthly disbursement of VND100-110 trillion ($3.8-4.2 billion); well above the pace recorded in the first half of the year.

Without significant improvements in project implementation, spending could once again become concentrated in the closing months of the year. That would increase the risk of technically-driven disbursement, including advance payments unsupported by corresponding construction progress, while placing additional strain on contractors, material supplies, project acceptance, and payment controls. Ultimately, it could also weaken public investment’s contribution to GDP growth in 2026.

Contribution to GDP growth

Public investment supports economic growth through three main channels. First, it directly contributes to gross fixed capital formation; a key expenditure component of GDP, as spending on construction, machinery, equipment, and fixed assets increases both investment and aggregate demand.

Second, it stimulates demand across related industries, including construction, building materials, engineering, transport, consulting, and financial services. Total investment implemented across the economy reached VND1,808 trillion ($69.5 billion) in the first half of 2026, up 12.9 per cent year-on-year. State budget investment accounted for VND335.6 trillion ($12.9 billion), or about 18.6 per cent of the total, highlighting its significant role in supporting overall investment demand.

Third, public investment generates longer-term spillover effects. Completed infrastructure can reduce logistics costs, strengthen regional connectivity, improve electricity and digital infrastructure, enhance irrigation systems, and increase climate resilience. Once projects become operational, they can also crowd in private investment and raise the economy’s long-term productive capacity.

However, not every dollar of public investment disbursed translates directly into GDP growth within the same year. Land acquisition and compensation largely involve asset transfers, while advance payments that have yet to be converted into construction output create no immediate value-added. Imported machinery and materials increase imports rather than domestic production, and payments for work completed in previous years do not necessarily represent new output in 2026. As a result, one dollar of disbursement cannot be equated with one dollar of GDP.

Using a scenario-based approach that compares 2026 with 2025’s public investment disbursement of VND755.14 trillion ($29 billion) and applies an “in-year impact coefficient” of 0.4-0.7, the estimated outcomes are presented in the accompanying Table. The lower coefficient is broadly consistent with World Bank findings for developing economies, while the higher coefficient assumes investment is concentrated in projects with high domestic value added, rapid completion, and strong crowding-in effects for private investment.

Under this framework, achieving approximately 95 per cent of the annual public investment plan could generate an incremental economic impact equivalent to about 0.89 per cent of Vietnam’s 2025 GDP. If the government achieves full implementation and investment is quickly converted into construction output, generates high domestic value added, and stimulates private investment, the potential impact could rise to around 1.41 per cent of 2025 GDP. By comparison, achieving only 90 per cent of the annual target would produce an estimated impact of about 0.49 per cent.

These figures are scenario estimates rather than direct measurements. They illustrate the potential economic impact relative to Vietnam’s 2025 nominal GDP, not the absolute share of public investment in GDP. Part of public investment’s contribution has already been reflected in first-half GDP growth, while its impact during the remainder of the year will depend on the pace of project execution, investment prices, import intensity, and the economy’s capacity to absorb additional investment.

Execution gap

Several structural factors continue to constrain public investment disbursement.

First, project preparation and capital allocation remain poorly aligned with implementation capacity. Weak project preparation continues to be a fundamental bottleneck. In some cases, funding has been allocated before investment procedures, technical designs, cost estimates, environmental impact assessments, or site clearance have been completed. In addition, capital allocation in some localities has relied heavily on registered funding requests rather than realistic implementation schedules and actual absorption capacity. As a result, some projects face funding shortages despite active construction while others receive substantial allocations but are unable to move forward.

Second, land acquisition and site clearance remain the biggest bottlenecks on the ground. Challenges include determining land ownership, setting compensation levels, arranging resettlement, approving land-use conversion, and coordinating between project owners and local authorities. Many projects receive cleared land only in fragmented sections rather than continuous stretches, preventing contractors from organizing efficient construction and increasing costs.

Third, shortages of construction materials, price volatility, and limited contractor capacity have become increasingly apparent. Multiple large transport projects getting underway simultaneously have driven exceptionally-strong demand for sand, fill material, construction stone, and waste disposal sites. In some cases, procedures for licensing, expanding production capacity, or allocating material quarries have failed to keep pace with construction schedules. Rising material and fuel costs have also reduced contract profitability, particularly under lump-sum or fixed-price contracts.

At the same time, some contractors are engaged in multiple major projects, stretching their workforce, equipment, and working capital. Contractor assessments also continue to rely heavily on documentation rather than reflecting actual workloads across other projects.

Fourth, project implementation and interagency coordination remain inefficient. Capacity varies significantly across project management units, many of which still lack specialists in legal affairs, contract management, valuation, and schedule control. Coordination between agencies responsible for land, construction, environmental management, finance, and local administration often remains sequential rather than concurrent, slowing down decision-making.

Project acceptance and payment documentation also frequently lag behind completed construction. In some cases, works have been completed but payment dossiers remain unfinished, delaying reimbursement. Existing monitoring systems continue to focus primarily on aggregate disbursement rates rather than tracking critical milestones, actual construction progress, and delay risks at the contract-package level.

Fifth, accountability and implementation discipline remain insufficiently strong. Some officials continue to adopt a risk-averse approach, delaying decisions while awaiting further guidance. Though greater authority has been decentralized, it has not always been matched by stronger accountability. Individual performance is rarely measured against project outcomes, while decisions to reallocate funding, replace underperforming contractors, or restructure weak project management units are sometimes delayed, reducing the time available to resolve implementation issues during the year.

Overall, three issues remain at the core of slow public investment implementation: inadequate project preparation, prolonged site clearance, and weak implementation capacity and accountability. Legal procedures, material shortages, and adverse weather can all contribute to delays, but their impact depends largely on the quality of project preparation and the ability of project leaders to respond effectively.

Six priority measures

The first priority is to manage implementation at the project level rather than relying on aggregate disbursement targets. Authorities should identify the projects that account for 70-80 per cent of the remaining undisbursed capital and place them under enhanced supervision. For each project, the critical path, major bottlenecks, responsible agencies, accountable officials, and completion deadlines should be clearly identified.

A digital dashboard should be updated weekly, tracking construction progress, certified work completed, payments made, and issues requiring intervention. Government and local task forces should shift from general oversight to resolving project-specific bottlenecks directly on site.

The second priority is to reallocate capital earlier based on actual implementation capacity. Funding should be reallocated immediately rather than waiting until the fourth quarter. Projects lacking cleared land or incomplete procedures or are delayed for subjective reasons should face budget reductions, with funding redirected to projects demonstrating construction progress, strong completion prospects and high domestic value-added content.

Each ministry and locality should maintain a pipeline of reserve projects that have completed all procedures and are ready to receive additional funding. Projects that have repeatedly posted weak disbursement due to poor implementation should no longer receive priority for new allocations. The public investment performance assessment system established under Decision No. 1129/QD-TTg, dated June 24, 2026, should also be linked to future capital allocation, performance evaluations of agency heads, and the selection of project owners.

The third priority is to remove bottlenecks in land acquisition and construction materials. For major national projects, interdisciplinary task forces should be empowered to resolve issues related to land ownership, compensation, resettlement, material quarries, and waste disposal sites. Site clearance should be handed over in sufficiently long continuous sections rather than fragmented parcels, to enable uninterrupted construction.

For large, multi-year projects, land acquisition should be separated into an independent project whenever legally feasible. Resettlement areas should be completed before, or alongside, land acquisition, while site clearance progress should become a Key Performance Indicator (KPI) for local governments rather than remaining solely the responsibility of project owners.

The fourth priority is to accelerate project acceptance and payment procedures. Acceptance should be carried out by construction phase, project component, or completed work volume rather than accumulating documentation until the end of each quarter or year. Documentation exchanged between contractors, project owners, project management units, and the State Treasury should be fully digitized, with clear processing deadlines at every stage.

Authorities should also distinguish genuine disbursement from advance payments. Performance indicators should track both payments made and certified construction output, while overdue advances, or those unlikely to be converted into completed work, should be recovered promptly to prevent artificially higher disbursement rates without corresponding gains in output or GDP.

The fifth priority is to strengthen accountability and address underperforming organizations. Monthly implementation targets should be assigned to agency heads, project owners, project management units, and contractors, with results disclosed publicly and measured against both national averages and agreed commitments. Delays caused by subjective factors should lead to lower performance ratings, reassignment of responsibilities, or replacement of officials.

Contractor evaluations should also be updated regularly to reflect actual workloads, equipment, workforce availability, and financial capacity. Contractors with persistent implementation failures should face reassignment of work packages, the appointment of additional subcontractors, or contract termination, in accordance with regulations.

The sixth priority is to maximize public investment’s contribution to GDP growth. Funding should be prioritized for projects that can be completed and become operational before the end of 2026 or early 2027, particularly those involving regional connectivity, logistics, energy, digital infrastructure, flood control, and climate adaptation. Preference should also be given to projects capable of expanding development space and attracting private investment.

The use of domestically-produced materials, equipment, and services should be encouraged whenever they meet quality, pricing, and procurement requirements. This would reduce import leakage while strengthening spillover effects across the domestic economy. Authorities should also publish land-use plans, land reserves, and connected project pipelines early so that private investors can develop industrial, service, and urban projects alongside new public infrastructure.

Implementation roadmap

During July and August, authorities should complete a comprehensive review of all public investment projects, carry out the first round of capital reallocation, identify critical implementation paths, and resolve administrative procedures within their authority. This period will largely determine the volume of construction work that can be generated during the third quarter.

Between September and October, efforts should focus on accelerating construction, implementing a second round of capital reallocation, addressing underperforming contractors and project management units, and preparing project acceptance documentation concurrently with construction.

During November and December, priority should shift toward completing construction, project acceptance, and payments, while avoiding reliance on advance payments simply to improve disbursement statistics. Authorities should simultaneously evaluate project quality and investment efficiency and prepare the pipeline of continuing projects for 2027.

The MoF should lead the monitoring of capital allocation, disbursement, reallocation, and payments. Sectoral ministries should be responsible for technical standards, pricing mechanisms, and construction material supply. Local governments should oversee land acquisition, resettlement, and procedures within their jurisdiction, while project owners and project management units should bear direct responsibility for implementation schedules, construction quality, and payment documentation.

-Associate Professor Phung The Dong

HCMC to launch, inaugurate 16 major projects in celebration of National Day

Sun, 16 Aug 2026 01:00:00 GMT

Among the transport projects, the Thu Thiem–Long Thanh railway has the largest investment, estimated at VND134 trillion ($5.1 billion).

Ho Chi Minh City will launch or inaugurate 16 major projects and works to mark Vietnam’s National Day on September 2, including 11 groundbreaking ceremonies and five projects to be officially put into operation, according to Mr. Tran Quang Lam, Director of the municipal Department of Construction.

Among the transport projects, the Thu Thiem–Long Thanh railway has the largest investment, estimated at VND134 trillion ($5.1 billion).

The city also plans to break ground on a project to upgrade and expand National Highway 1 from Kinh Duong Vuong Street to the former Long An provincial boundary, now in Tay Ninh province. The project will be developed under a public-private partnership (PPP) in the form of a build-operate-transfer (BOT) contract, with investment of nearly VND6.7 trillion.

Another project will upgrade and expand National Highway 13 from Binh Trieu Bridge to the former Binh Duong provincial boundary, now in Ho Chi Minh City, with investment of nearly VND6.3 trillion.

Two components of Ring Road No. 4 will also be launched, with combined investment of more than VND11.8 trillion.

In housing, five projects are scheduled to break ground, including a social housing urban area in Ba Diem Commune, with investment of mỏe than VND64 trillion.

Since the beginning of 2026, HCMC has launched 14 projects with total investment of around VND466 trillion.

-Thanh Thủy

Macro-economic stability remains particularly important

Sat, 15 Aug 2026 10:00:00 GMT

Preserving macro-economic stability takes on particular importance as Vietnam goes about posting double-digit average annual GDP growth in the 2026-2030 period.

The government’s target of average annual growth of around 10 per cent over 2026-2030 should be understood as an average for the entire period, rather than requiring growth to exceed 10 per cent each and every year. Such an approach avoids pursuing growth at any cost while giving policymakers greater flexibility to respond to changing economic conditions. Achieving this goal will require a reassessment of Vietnam’s growth model and a clear identification of the country’s key growth drivers for the next stage of development.

One of Vietnam’s key policy challenges is how to sustain strong economic growth while preserving macro-economic stability, containing inflation, and ensuring long-term sustainable development.

Productivity at the forefront

According to traditional economic theory, growth is determined by three main factors: labor, capital, and Total Factor Productivity (TFP). Capital encompasses not only financial resources but also non-financial assets such as technology, machinery, equipment, and human capital. Estimates for 2025 suggest that labor contributes around 9 per cent of economic growth, capital some 44 per cent, and TFP about 47 per cent. By 2030, Vietnam aims to increase TFP’s share to around 55 per cent, signaling a transition from a growth model driven primarily by capital and labor toward one centered on productivity gains.

It is also important to distinguish between a growth model and a development model. A growth model focuses on quantitative indicators such as GDP growth, employment, and incomes, typically over a medium-term horizon of three to five years. A development model, by contrast, takes a longer-term perspective aimed at improving people’s quality of life across a broad range of areas, including the economy, politics, society, the environment, and national defense and security. Rapid economic expansion alone is therefore insufficient; sustainable and inclusive development is essential to ensure that growth translates into tangible improvements for businesses and households.

An assessment of the previous development period shows that Vietnam achieved most of its key objectives, though several important targets fell short. Economic growth remained below expectations due to the effects of the pandemic and an increasingly volatile global environment. Labor productivity rose by just over 5 per cent annually, below the target range of 6.5-7 per cent. The digital economy also underperformed against expectations, contributing only some 14 per cent of GDP compared to the 20 per cent target, despite expanding at an annual rate of 18-20 per cent. Looking ahead, Vietnam aims to raise the digital economy’s contribution to around 30 per cent of GDP, requiring a faster pace of digital transformation and e-commerce development.

Vietnam will need to continue shifting its growth model toward one driven increasingly by productivity rather than the continued expansion of capital and labor. Both capital and labor have natural limits, whereas productivity still has significant room for improvement through technological innovation, higher-quality human capital, better corporate governance, and stronger institutions.

According to World Bank research, productivity depends not only on technology and capital but also on five critical factors: science, technology and innovation; a highly-skilled workforce; efficient resource allocation; high-quality infrastructure; and strong institutions with effective policy implementation. Among these, efficient resource allocation is particularly important because it enables capital and labor to move from less productive sectors to those with higher productivity. Institutions, meanwhile, extend beyond the legal framework to include the government’s ability to implement policies effectively.

Research scenarios suggest that sustaining double-digit economic growth will require TFP to contribute 53-55 per cent of overall growth, while total social investment must reach 39-40 per cent of GDP and annual investment must increase by 12-13 per cent. At the same time, labor productivity will need to rise by 8-8.5 per cent annually; significantly higher than in previous years. These projections underscore that Vietnam’s next phase of growth will depend increasingly on improving the quality of growth drivers rather than simply expanding the scale of investment.

Outlook amid global uncertainty

Against a challenging backdrop, global economic growth is projected to slow to around 2.5 per cent this year from 2.9 per cent last year, reflecting the impact of geopolitical conflicts that have fueled inflation, disrupted supply chains, and weakened global investment and consumer demand. If geopolitical tensions ease, however, global growth could recover to around 3 per cent next year, creating a more favorable environment for trade and supporting Vietnam’s economic outlook.

Global inflation is forecast to rise to about 4.7 per cent this year, above earlier expectations of below 4 per cent, largely because geopolitical conflicts have disrupted supply chains and driven up energy prices. The outlook for next year is more favorable, with inflation expected to fall below 4 per cent if geopolitical conditions improve. A projected decline in average oil prices from around $85 per barrel to $70-75 would also help ease commodity prices and inflationary pressures worldwide.

Three positive trends stand out in the global economy. First, global growth is expected to remain relatively resilient at around 2.5-2.8 per cent this year and next. Second, while inflation remains elevated, it has begun to stabilize, reducing the likelihood of further sharp increases in global interest rates. Third, investment remains robust, particularly in AI, data, and digital infrastructure, as governments and businesses continue to commit hundreds of billions of dollars to these sectors.

At the same time, significant risks remain, including geopolitical instability, persistent inflation, elevated interest rates, and challenges related to energy security, food security, supply chains, and broader economic resilience. These risks are especially significant for Vietnam given its highly-open economy and reliance on international trade and foreign investment.

Most international organizations forecast Vietnam’s economy to grow by around 7 per cent this year, while some institutions, including Standard Chartered Bank, have raised their forecasts to approximately 8.2 per cent. Domestic assessments, however, suggest Vietnam could achieve growth of around 9 per cent this year and move toward 10 per cent in subsequent years if it successfully develops new growth drivers. Inflation is projected to remain within a manageable range of 4-4.6 per cent.

On the supply side, growth is driven by three main sectors: agriculture, forestry, and fisheries; industry and construction; and services. Agriculture contributes around 5 per cent of GDP growth, industry and construction about 45 per cent, and services roughly 43 per cent, underscoring their role as the economy’s primary growth engines.

On the demand side, consumption and investment remain the two most important drivers. During the first half of 2026, consumption contributed some 68 per cent to economic growth, while investment accounted for about 60 per cent. Net exports, by contrast, made a negative contribution of around 3.6 per cent as imports grew faster than exports. This suggests current growth is being driven primarily by domestic demand rather than the trade balance. Sustaining double-digit growth will require continued momentum in both investment and consumer spending.

Rapid import growth has raised concerns about a widening trade deficit. However, much of the increase reflects three factors. Businesses have accelerated imports of raw materials and intermediate goods to build inventories ahead of potential global disruptions. Higher global energy and commodity prices have also inflated import values, while Vietnam’s large-scale investment projects have boosted demand for imported machinery and equipment. As long as imports continue to support investment and production, the current trade deficit is not viewed as a major concern.

Another positive factor is the relative stability of the exchange rate, which has helped preserve macro-economic stability at a time when many economies continue to face significant currency volatility and inflationary pressures. This remains one of the key foundations supporting Vietnam’s investment environment.

Containing inflation remains a top macro-economic priority. Around 87 per cent of movements in the CPI are driven by several key categories, with food accounting for roughly 39 per cent of overall inflation. Education and healthcare also contribute to price pressures, making the control of essential goods prices critical to maintaining price stability.

Public investment continues to play a pivotal role in supporting growth. The government’s public investment disbursement plan totals approximately VND1,100 trillion ($42.3 billion) this year, up about 31 per cent from 2025. If fully implemented, it could add around 1.8 percentage points to GDP growth, potentially lifting overall growth from about 7 per cent to nearly 9 per cent.

FDI inflows remain resilient, though investment continues to be dominated by Asian economies. This suggests that Vietnam has yet to attract significant volumes of high-tech investment from advanced economies such as the US and Europe, highlighting considerable room to diversify its FDI sources.

Achieving double-digit growth in the years to come will require total social investment to increase by approximately 12-13 per cent annually. During the first half of this year, total investment rose by around 13 per cent, with private sector investment expanding by more than 13 per cent for the first time. While encouraging, this remains below the roughly 16 per cent growth recorded prior to the Covid-19 pandemic, indicating that further improvements to the investment and business environment are needed for the private sector to become a sustainable growth engine.

Retail sales, meanwhile, increased by approximately 13 per cent at current prices. After adjusting for inflation, however, actual retail growth was only around 7.3 per cent; below pre-pandemic levels. This suggests consumer demand has yet to fully recover and may require additional policy support.

Monetary policy has limited space for further interest rate cuts. Credit growth has consistently outpaced deposit growth for several years, placing increasing pressure on banking system liquidity. Outstanding credit now exceeds total deposits by roughly VND2,000 trillion ($76.9 billion). In this environment, further rate cuts could discourage deposits and weaken banks’ ability to provide credit. Maintaining stable interest rates this year is therefore widely regarded as a successful policy outcome.

Vietnam’s credit-to-GDP ratio is already high by international standards and is expected to rise further if the economy achieves sustained double-digit growth. If credit expands by around 15 per cent annually while GDP grows by approximately 10 per cent, outstanding credit could reach around 180 per cent of GDP by 2030; significantly higher than in many economies at a similar stage of development. This underscores the need to strengthen non-bank financing channels.

The corporate bond market also has considerable space for expansion, though issuance declined during the first half of the year and remained concentrated among property developers and banks. Manufacturing companies have yet to make effective use of the bond market as a funding source. The government’s comprehensive financial market reform strategy through 2045 is expected to diversify funding sources, reduce dependence on bank credit, and support the long-term development of Vietnam’s capital markets.

Finally, improving the quality of growth will require more efficient use of investment capital. Vietnam’s Incremental Capital-Output Ratio (ICOR) remains relatively high at around 6.4, compared with the target of reducing it to approximately 4.5-4.6. By comparison, South Korea and China maintained ICOR levels of around 3-4 during their periods of rapid economic expansion, suggesting that Vietnam still has substantial scope to improve investment efficiency, strengthen growth quality, and enhance long-term competitiveness.

Policy priorities

Achieving double-digit economic growth will require a coordinated package of policy measures and a new approach to economic management rather than relying on traditional policy frameworks. The focus should be on maximizing both traditional growth drivers and emerging sources of growth.

On the demand side, Vietnam must continue strengthening its traditional growth engines - exports, investment, and consumption - while fostering balanced development across the three main sectors of the economy: agriculture, forestry, and fisheries; industry and construction; and services. At the same time, greater emphasis should be placed on new growth drivers, particularly innovation, the digital economy, and high-tech industries.

A key priority is closer coordination between fiscal and monetary policy. With liquidity in the banking system under pressure, accelerating public investment disbursement would not only support economic growth but also inject liquidity into the economy, improve financial conditions, and enhance the effectiveness of monetary policy. Successful policy coordination depends not only on choosing the right tools but also on deploying them at the right time and with the appropriate scale to match economic conditions.

At the same time, Vietnam needs to mobilize and allocate resources more efficiently. This includes implementing the government’s comprehensive financial sector reform strategy, unlocking resources tied up in delayed investment projects and underutilized public assets, and developing new financing mechanisms such as carbon markets. Establishing an international financial center is also viewed as an important step toward expanding the economy’s access to capital.

Throughout this process, maintaining macro-economic stability and safeguarding key economic balances, particularly energy security, while improving the quality of growth must remain overarching priorities. These are the fundamental conditions for sustaining long-term economic expansion.

Another important priority is strengthening the strategic autonomy of Vietnamese businesses by increasing localization. Vietnam’s average localization rate currently stands at around 36.6 per cent; well below Thailand’s approximately 56 per cent. Localization stands at around 50-55 per cent in the textile and garment industry but remains just 10-15 per cent in electronics, highlighting the country’s continued dependence on imported materials and components. Strengthening domestic enterprises and expanding support industries would improve the economy’s resilience to external shocks.

New engines of growth

Under the baseline scenario, Vietnam’s next phase of growth could be supported by five new growth drivers in addition to its traditional engines.

The most significant is science, technology, and innovation, which could contribute around 1 percentage point to annual GDP growth if effectively implemented.

The second is institutional reform, particularly administrative reform and improvements to the investment and business environment. Comprehensive reforms in these areas could add roughly 0.5 percentage points to annual growth.

The third is strengthening the role of key economic hubs and leading localities. Vietnam’s seven centrally-governed cities currently account for about 64 per cent of national GDP. If these were to increase their growth rates by just 0.5 percentage points, national economic growth could rise by approximately 0.6 percentage points.

Another priority is unlocking stalled investment projects to release capital and other resources currently tied up in the economy.

At the same time, accelerating the green transition would create additional medium and long-term growth opportunities by raising productivity and supporting the development of new industries.

Estimates suggest that, if implemented in a coordinated manner, these new growth drivers could add around 3-3.5 percentage points to annual economic growth. Combined with traditional growth engines, they could provide the foundation for Vietnam to achieve annual growth of 9-10 per cent in the years to come.

Ultimately, achieving double-digit growth will require Vietnam to strengthen its existing growth drivers while cultivating new ones, with a particular focus on innovation, institutional reform, more efficient resource allocation, and greater self-reliance among domestic businesses. Together, these measures will help sustain rapid economic expansion while improving the quality and long-term sustainability of growth.

(*)Dr. Can Van Luc is Chief Economist at the Bank for Investment and Development of Vietnam (BIDV) and President of the BIDV Training and Research Institute)

-Dr. CAN VAN LUC (*)

At least 3–5 national materials research centers are to be established by 2028

Sat, 15 Aug 2026 08:00:00 GMT

The target is set by the conclusion of the Politburo on the development of materials industry.

According to the Politburo’s Conclusion No.83-KL/TW, dated August 8, 2026, on the development of materials industry, Vietnam targets to establish at least 3-5 national materials research centers by 2028.

The Conclusion defined materials industry as a foundational industry that plays a decisive role in strategic autonomy, national competitiveness and ability to master core technologies. The industry provides essential inputs and is a prerequisite for developing key sectors and strategic technology products.

Developing the materials industry is a strategic national task that will make an important contribution to promoting rapid and sustainable national development and building an independent, self-reliant and resilient economy, the Conclusion stated.

The Conclusion also emphasized the need to shift from exploiting resource advantages to mastering materials technologies; from broad-based to in-depth development; and from participating in supply chains to gradually mastering high-value-added stages of global value chains. Long-term strategic efficiency, endogenous strength and overall competitiveness should serve as the primary benchmarks.

Strategic minerals must be managed in a unified and rigorous manner throughout the value chain, from exploration and basic geological surveys to planning, extraction, refining, production of applied materials, recycling and strategic stockpiling.

The export of raw minerals should be minimized, while ensuring that national resources are extracted and used economically, efficiently and sustainably, according to the Conclusion.

The Conclusion requested that in 2026, a national strategy for the development of the materials industry through 2030, with a vision to 2045, would be formulated and issued, ensuring consistency and alignment with the orientations set out in the 14th National Party Congress Resolution and strategic resolutions of the Party Central Committee and the Politburo.

The Conclusion also stressed the need to establish closed-loop materials industry chains, from extraction and processing to deep processing and final applied products, for rare earths; battery materials, magnets and magnetic materials; electronic and semiconductor materials; aluminum, steel, titanium, non-ferrous metals and specialty alloys; chemical materials, fertilizers, carbon materials and dual-use materials, among others.

It requires the establishment of a national database on the materials industry and the completion and interconnection of geological and mineral data in 2027.

By 2030, Vietnam is expected to master a number of deep-processing technologies for rare earths, semiconductor materials and battery materials, while striving to raise the domestic content ratio of certain strategic materials to 50 percent, the conclusion affirmed.

The Conclusion also stated that the materials industry should be developed comprehensively across three groups: basic materials, strategic materials and future materials.

It identified science, technology, innovation, digital transformation and high-quality human resources as the key drivers of the development of the materials industry.

-Khanh Van

HCM City attracts $9.8 billion in FDI in 7M, up 44.5%

Sat, 15 Aug 2026 07:00:00 GMT

The southern metropolis targets to lure $11 billion in FDI in 2026.

Ho Chi Minh City attracted $9.8 billion in foreign direct investment (FDI) in the first seven months of 2026, up 44.45% year-on-year, reaffirming its position as a leading FDI destination in Vietnam.

Of the total, the city attracted 467 science and technology projects with combined registered capital exceeding $557.7 million. With positive growth prospects for the remainder of the year, the city has set a target of attracting $11 billion in FDI in 2026.

According to a report by the municipal People’s Committee, the city’s economy maintained positive growth in the January-July period, broadly tracking its planned scenario, with several key indicators recording strong increases.

Total retail sales of goods and consumer services reached VND1.134 quadrillion ($43.3 billion), up 13.3% year-on-year.

Tourism revenue exceeded VND237 trillion, up 55.3%, while international arrivals reached 7.13 million, an increase of 42.7%. Domestic tourists numbered 31.65 million, equivalent to 63.4% of the full-year target.

Trade also continued to expand, with exports reaching $57.84 billion, up 8.77%, and imports rising 11.61% to $63.48 billion.

The industrial production index (IIP) increased 10.7%, led by the processing and manufacturing sector, which grew 11.2% and continued to outperform overall industrial growth.

-Hong Vinh

Crucial policy direction of the financial market reform

Sat, 15 Aug 2026 05:30:00 GMT

The development of infrastructure bonds has been included in Vietnam’s financial market reform agenda and are geared toward financing projects with long-term investment horizons.

Vietnam’s economic outlook for the second half of the year presents both opportunities and challenges, as major shifts in the global economy become increasingly pronounced. Three structural trends - supply chain realignment, international investment flows, and technological transformation - are reshaping the country’s growth trajectory. Against this backdrop, achieving double-digit economic growth will require more than policy determination. It also demands structural solutions, including the development of long-term financing instruments capable of supporting sustained investment.

Globally, infrastructure bonds are a distinct financial instrument specifically designed to finance major projects such as railways, airports, seaports, logistics networks, and green infrastructure. They represent a specialized segment of capital markets valued in the trillions of dollars. Between 2021 and 2025 alone, global infrastructure bond issuance stood at some $3 trillion, underscoring the instrument’s critical role in channeling capital into long-term development.

Missing piece

Vietnam already has several types of bonds that can finance infrastructure, including project bonds, construction bonds, municipal bonds, and corporate bonds. Yet the country has not established a dedicated infrastructure bond instrument. This raises an important question: why create a new financing vehicle when existing ones already exist?

In practice, each financial instrument serves a different purpose. Existing bonds are generally suited to small and medium-sized projects with relatively short payback periods. Strategic infrastructure projects, by contrast, often have investment horizons ranging from 10 to 30 years or even longer. This mismatch in maturities limits the ability of current financing instruments to meet long-term funding needs while increasing maturity, interest rate, and reinvestment risks.

For this reason, infrastructure bonds should be designed with distinct features. Long maturities are fundamental, supported by credit enhancement mechanisms such as mandatory credit ratings, payment guarantees, or revenue-sharing arrangements during the early years of a project. Tax and fee incentives, along with standardized trading through centralized listing and custody systems, would further strengthen the market. More importantly, infrastructure bonds would complement rather than replace existing bond products, helping deepen Vietnam’s capital markets while expanding financing capacity for strategic projects.

International experience demonstrates that successful infrastructure bond markets require a comprehensive ecosystem that includes clear legal frameworks, risk-sharing mechanisms, well-developed local currency capital markets, reliable credit rating systems, and active participation by long-term institutional investors.

Brazil offers a notable example. Beginning in 2011, the country shifted from relying primarily on development bank lending toward infrastructure bond issuance. The transition was supported by tax incentives for individual investors, centralized exchange listings, and independent credit ratings. Over the following decade, the country raised an estimated $80-$90 billion through infrastructure bonds.

India, meanwhile, has strengthened investor confidence through specialized financial institutions and credit guarantee mechanisms that improve the creditworthiness of infrastructure bonds. Tax incentives and investment vehicles such as Infrastructure Investment Trusts (InvITs) have enabled investors to gain exposure to operating infrastructure assets, including highways, airports, and electricity transmission networks.

In Europe, the European Investment Bank has helped improve project credit ratings through revenue risk-sharing arrangements. Regulators have also lowered capital requirements for insurance companies investing in rated infrastructure bonds, encouraging greater participation from long-term investors. Japan, meanwhile, has successfully mobilized substantial funding through specialized institutions using the Fiscal Investment and Loan Program (FILP) bond system without placing direct pressure on the national budget.

Compared with these international models, Vietnam still lacks a dedicated legal framework for infrastructure bonds, targeted tax incentives, and a clearly-defined investor base. This represents a significant gap, particularly as the country’s infrastructure financing needs over the next decade are expected to reach hundreds of billions of dollars. Existing bond instruments alone are unlikely to solve the problem, especially given that most bonds currently issued in Vietnam have maturities of less than ten years, making them ill-suited to long-duration infrastructure projects and increasing maturity, interest rate, and reinvestment risks.

Infrastructure financing and social welfare

If developed effectively, an infrastructure bond market would evolve beyond a single financial product into a diversified ecosystem spanning energy, logistics, transportation, and urban infrastructure. Each segment could establish its own benchmark yield curve, improving market transparency and attracting institutional investors, particularly pension funds, insurance companies, and international investment funds.

Another promising approach is program-based issuance rather than financing individual projects. Under this model, a single bond program could finance a portfolio of projects, such as multiple urban railway lines or renewable energy developments. Diversifying project exposure would reduce risk, lower due diligence costs, and make infrastructure bonds more attractive to international investors.

Infrastructure bonds linked to social welfare benefits also represent an innovative concept. Investors could participate with flexible investment amounts, either through lump-sum purchases or gradual contributions over time. They would continue to receive principal and interest throughout the investment period, while at maturity they could choose to convert their returns into social welfare benefits.

Such benefits could include free or discounted public transportation, healthcare services, retirement living, social housing, or access to senior living communities integrated with public transport infrastructure.

While financial products linked to social welfare already exist in some countries, directly integrating infrastructure financing with long-term social benefits remains relatively uncommon. As Vietnam enters a period of rapid population aging over the next 10-15 years, such a model could help address two strategic priorities simultaneously: mobilizing capital for infrastructure investment while supporting long-term social welfare needs. It would also allow citizens to participate directly in national infrastructure development, creating a sense of shared ownership while aligning individual financial interests with broader economic development.

The inclusion of infrastructure bond development in Vietnam’s financial market reform agenda signals a clear policy direction. The remaining challenge is creating sufficient incentives to encourage widespread public participation and attract household savings into national infrastructure investment.

Realizing their potential will require a dedicated legal framework for infrastructure bonds, at a minimum through a government decree. Appropriate tax incentives, a robust credit rating system, greater transparency, and effective guarantee mechanisms will also be needed to reduce financing costs. At the same time, Vietnam should broaden its base of long-term investors by encouraging greater participation from pension funds, insurance companies, and infrastructure investment funds.

Over the longer term, infrastructure bond development should be integrated into Vietnam’s broader capital market strategy to reduce reliance on bank lending and establish more sustainable sources of long-term financing. If implemented successfully, a dedicated infrastructure bond market could become one of the key pillars supporting the country’s ambition for sustained, high-quality economic growth in the decades ahead.

-Mr. Duong Hong Ha, independent economist

Phu Tho province breaks ground on five key projects worth $290m

Sat, 15 Aug 2026 05:20:00 GMT

The largest is Thinh Minh Industrial Park, covering nearly 430 hectares with investment of over VND4.8 trillion ($182 million).

Northern Phu Tho province on August 14 broke ground on a complex of five major projects in Thinh Minh Commune, with a combined investment of VND7.596 trillion ($290 million) and a total area of 592 hectares.

The five projects have completed all required investment, construction, land and environmental procedures and are now entering the construction phase.

The largest is Thinh Minh Industrial Park, covering nearly 430 hectares with investment of over VND4.8 trillion ($182 million). It will be developed as an eco-industrial park targeting high-tech and environmentally friendly projects.

Thinh Minh 1 Industrial Cluster covers more than 72 hectares with investment of nearly VND575 billion, providing additional industrial production space and strengthening local supply chains.

The Phu Minh Eco-Urban Area spans more than 87 hectares and has investment of nearly VND1.7 trillion, featuring green urban, commercial and service facilities.

Meanwhile, the 2.79-hectare Phu Minh social housing project will receive nearly VND400 billion, helping meet workers’ housing needs and support local workforce development.

A water supply pipeline system for Thinh Minh Commune, costing VND114.5 billion, will provide clean water for industrial production, urban development and residents.

At the ceremony, the investor consortium also signed strategic cooperation MoUs with partners in ESG, renewable energy, human resources and investment promotion, as well as with 13 pioneering investors registering to invest in the two industrial projects.

-Ngan Ha

UK hopes to deepen cooperation in various aspects

Sat, 15 Aug 2026 05:00:00 GMT

On the sidelines of the UK-Vietnam High-Level Conference in Hanoi on August 12, H.E. Iain Frew, Ambassador of the United Kingdom to Vietnam, told VnEconomy / Vietnam Economic Times about Vietnam-UK cooperation in technology, strengthening multifaceted collaboration, and developing financial technology...

Based on the UK’s own experience, what policies or support mechanisms would be the most effective in helping businesses integrate AI into their operations and technology transfer, build a digital ecosystem, and unlock productivity gains?

AI is an exciting area of innovation in both the UK and Vietnam, and it is encouraging to see the collaboration between the two countries and the sharing of experience. From the UK’s early experience in implementing AI, several lessons have emerged, though there is still much more to learn together.

One of the first lessons is that implementing AI and realizing its potential within businesses is not primarily a technology problem; it is a business problem. It is about how a business operates and how it transforms itself through the use of AI. I think this is the perspective we also need to bring to the development of AI in businesses in Vietnam.

There are several areas that can help businesses think about AI deployment. First, we should focus on skills and leadership. What capabilities does an organization need to go through an AI transformation and really gain its benefits? A business could bring in the most talented AI technology expert, but what it really needs is a leadership and management structure that understands AI, identifies opportunities, and works with its teams to deploy AI effectively. This is fundamentally a leadership and management issue, whether through bringing in new people or upskilling existing employees.

H.E. Iain Frew, Ambassador of the United Kingdom to Vietnam speaks at the UK-Vietnam High-Level Conference in Hanoi. (Photo: British Embassy Hanoi)

The second area is collaboration with the wider ecosystem. AI businesses in the UK have been working with AI experts in government and academia. There is significant potential in Vietnam for collaboration between businesses, government, and academia to make the most of this rapidly developing sector. As new AI models with new capabilities emerge and more examples of effective deployment become available, the right collaboration can help accelerate implementation and allow businesses to benefit from these innovations more quickly.

The final area is unlocking finance and making the best use of digital infrastructure for AI. AI places significant demands on data centers and energy, so it is important to ensure that the necessary infrastructure is in place. At the same time, businesses with ideas and ambitions to take advantage of AI opportunities need access to finance.

I have been very pleased to see a strong start here in Vietnam. The Vietnam National Innovation Center’s program has attracted many applications and some very good new ideas. Building on this will be very important.

What opportunities do you see for deeper collaboration in AI, smart manufacturing, semiconductor technologies, and digital trade that could bring tangible benefits to Vietnam’s industrial and commercial sectors?

I think the UK and Vietnamese economies are highly complementary, and we have identified several areas where we want to deepen our cooperation.

First is AI. We are seeing significant innovation in areas such as data security and business models, as well as the impact of AI deployment. Bringing researchers together is important, and this is something the government can help facilitate. We also need to think about governance mechanisms: how AI can be deployed responsibly, and what guidelines can both foster innovation while providing regulatory clarity, so businesses know where they stand and consumers and the public can be confident that these tools are being used responsibly.

Second is manufacturing. Vietnam is a manufacturing powerhouse, and its manufacturing businesses are becoming increasingly sophisticated and moving up the value chain. The deployment of new technologies is therefore important. The UK can bring expertise in areas such as effective supply chains, management tools and different technologies to help Vietnam’s manufacturing sector develop in its next phase.

The next area is semiconductors. The UK is a player in the semiconductor sector, with a strong focus on chip design, engineering, and particular semiconductor subsectors. This aligns well with Vietnam’s ambitions.

Last year, the British Embassy co-hosted a UK-Vietnam Semiconductor Forum, bringing together major UK businesses focused on chip design and technology deployment to collaborate with Vietnam. This is not only about developing semiconductor manufacturing but also about upskilling the country. The ambition to develop and train 50,000 semiconductor engineers is something that the UK’s education and professional sectors are very focused on. There have also been collaborations with universities, including Oxford, to support this. There is therefore a lot for both sides to build on.

At the same time, we need to look ahead to technologies that have not yet been widely deployed. There is a lot of discussion around quantum computing and the frontiers of communications technology. Again, the complementarity between Vietnam and the UK bringing together the UK’s skills, expertise, and research strengths with Vietnam’s ambition to innovate and build new international partnerships provides a very strong foundation.

As fintech and digital assets become global trends, what recommendations would you make for both our nations to strengthen cooperation in sharing regulatory experience and establishing a safe legal framework for this sector?

This is really about finding the right balance between innovation and regulation. Both countries need to develop regulations in a smart and timely way to keep pace with technology, while avoiding too many barriers that could prevent them from taking advantage of new opportunities.

One important opportunity for governments and businesses is to develop regulatory sandboxes where businesses can experiment with regulation and technology and test and trial their ideas while allowing regulators to become more familiar with how these technologies work in practice. Cryptocurrencies are a good example, as financial regulators are developing their approaches and implementing initial regulations.

At the UK-Vietnam High-Level Conference, we also heard from the UK’s Financial Conduct Authority about how cryptocurrencies are being regulated. Sandboxes provide a valuable opportunity in this area. In the UK, regulators have received more than 2,000 deployments of new ideas and technologies through the sandbox, which I think is very important.

The second priority is strengthening international connections. As regulatory systems and frameworks develop, both countries should share regulatory experience and, at the business level, consider interoperability in areas such as e-payments and transaction platforms. This can build confidence across borders and support trade through digitally-secure and integrated mechanisms.

Building these connections is therefore important. There is a regulatory challenge and an opportunity for innovation, but there is also a challenge from internationalization. Both countries need to ensure that the regulatory and technological systems they develop are ready to connect internationally. It is encouraging to see innovative ideas from UK businesses being brought to Vietnam and partnerships being built with Vietnam’s rapidly-growing digital sector.

-Ngoc Lan

Rethinking capital allocation

Sat, 15 Aug 2026 01:33:46 GMT

Simply mobilizing capital is no longer the name of the game in investment endeavors to support growth as how this capital is deployed becomes the more pressing issue.

As Vietnam enters the second half of 2026, the central question is whether its economy can achieve double-digit annual GDP growth while keeping inflation under control and preserving macro-economic stability. The challenge is not in choosing between growth and stability but in finding the right policy mix to deliver both at the lowest possible cost.

Much of the recent debate has focused on expanding public investment, accelerating credit growth, and mobilizing additional investment capital to create more room for growth. These remain essential macro-economic policy tools. Yet simply injecting more capital into the economy is unlikely to produce the desired results if policymakers overlook two fundamental issues: the economy’s capacity to absorb investment and the efficiency with which resources are allocated.

Without addressing those constraints, the impact of stimulus measures will gradually diminish while inflationary pressures and broader macro-economic risks become more pronounced. That makes it essential to identify the economy’s real bottleneck.

Identifying the bottleneck

For the remainder of 2026, the primary constraint is unlikely to be on the supply side. Rather, the bigger challenge lies in the sluggish recovery of aggregate demand.

Many manufacturers continue to operate with spare capacity, suggesting that production capability is not the immediate problem. In many cases, businesses have scaled back operations not because they are unable to produce but because orders remain scarce, cash flow is under pressure, and consumer demand has yet to recover sufficiently.

Demand-side indicators point to the same conclusion. Household consumption, which accounts for roughly 63 per cent of GDP, continues to recover at a modest pace. Retail sales of goods and consumer services have grown more slowly than in the same period last year, indicating that domestic spending has yet to generate enough momentum to drive a broader acceleration in production.

External demand has also become less supportive. Global consumption remains subdued, while protectionist measures and trade barriers continue to proliferate. More significantly, Vietnam’s goods trade balance slipped into deficit early this year, with the gap widening in subsequent months. The shift suggests that exports, long one of the economy’s most reliable growth engines, are no longer providing the same level of support as in previous years.

Recognizing where the bottleneck lies is critical because it determines the policy response. If the economy is seen as suffering from insufficient production capacity, the instinct will be to expand investment as aggressively as possible. However, if weak demand and limited market absorption are the main constraints, the priorities become markedly different.

In that case, policymakers need to do more than mobilize additional capital. They must revive domestic and external demand while improving the economy’s ability to absorb investment so that every dollar of capital translates into higher productivity, greater productive capacity, and more sustainable growth.

Current growth drivers

The priority for the remainder of the year is not to search for new engines of growth but to make better use of the five that already exist.

Household consumption remains the most important. Accounting for around 63 per cent of GDP, it is the single largest contributor to economic activity. Stronger consumer spending translates into higher business revenues, increased production, more jobs, and rising incomes, creating a self-reinforcing cycle that supports broader economic expansion. With exports facing mounting headwinds, unlocking the purchasing power of Vietnam’s 100 million consumers has become not only a way to support businesses but also a strategic imperative for strengthening domestic growth.

Public investment is the second major driver. As the government’s most powerful policy instrument, it plays a critical role in sustaining growth through infrastructure development, job creation, and crowding in private investment. However, the effectiveness of public investment should not be judged solely by the pace of disbursement. A more meaningful measure is whether projects improve logistics, raise productivity, expand productive capacity, and generate lasting economic value. Speed matters, but the quality of spending matters even more.

Bank credit remains the third pillar. With capital markets still developing, businesses continue to rely primarily on bank financing. The key issue is therefore not how quickly credit expands but whether companies are able to absorb the additional funding and whether that capital reaches the sectors capable of generating the highest returns. Credit directed toward technological upgrading, productivity gains, and manufacturing expansion can deliver stronger economic growth while limiting inflationary pressure. By contrast, lending that fails to reach productive activities weakens policy effectiveness and increases risks to macro-economic stability.

FDI continues to provide another important source of growth, though the emphasis should extend well beyond the headline value of registered capital. The greater question is whether foreign investment strengthens domestic supply chains, encourages technology transfer, develops support industries, and improves labor productivity. These are the factors that determine the long-term contribution of FDI to the economy.

Exports complete the five growth drivers, but their outlook has become considerably more challenging. Weak global demand, intensifying trade competition, and increasingly stringent requirements on product origin, intellectual property, and labor standards are making it harder for exporters to maintain previous growth rates. Exports will remain a key pillar of the economy, but they are unlikely to provide the same level of momentum they delivered in earlier years.

Taken together, these five drivers demonstrate that Vietnam is not running short of growth engines. Rather, each faces its own constraints. Consumption needs to recover, but stimulus cannot be pursued indiscriminately. Public investment should accelerate, but disbursement targets cannot become an end in themselves. Credit growth remains necessary, provided it is matched by businesses’ capacity to absorb capital and put it to productive use.

Similarly, Vietnam should continue attracting FDI that strengthens domestic industrial capabilities rather than simply boosting investment statistics. Exports also require continued policy support, but success will increasingly depend on how well businesses adapt to a rapidly-evolving global trading environment.

Balancing growth and stability

At its core, macro-economic management is about balancing the trade-off between growth and stability. That challenge will define economic policymaking in the second half of 2026.

For a highly open economy such as Vietnam, every policy decision involves trade-offs. Faster growth requires stronger investment, greater credit expansion, and policies that stimulate aggregate demand. However, when demand grows more quickly than the economy’s productive capacity, inflationary pressures inevitably build. The risks do not stop there. Pressure on the exchange rate, a widening trade deficit, rising non-performing loans, and financial instability can all become more pronounced. These are inherent features of a market economy.

The question, therefore, is not whether trade-offs exist, but how effectively they can be managed. That question has become even more pressing as Vietnam enters the second half of the year.

On one hand, the economy needs stronger growth to generate jobs, raise incomes, and reinforce business confidence. On the other, policymakers must contend with a growing list of external and domestic risks. Global energy prices are expected to remain elevated, imported inflation continues to pose a threat, and exchange rate pressures could intensify if international interest rates stay higher for longer. At the same time, expanding public investment and credit without improving the efficiency of capital allocation would only add to inflationary pressures and increase risks to macro-economic stability.

This balancing act has become the defining challenge for economic management. How difficult that trade-off becomes, however, depends largely on the quality of policymaking. When capital is directed toward sectors with high productivity, strong value-added potential, and the capacity to expand production, the economy can achieve faster growth while containing inflationary pressure. Conversely, inefficient allocation means the same amount of investment generates weaker growth but creates greater financial and macro-economic risks.

That is the fundamental difference between managing the economy by expanding the volume of capital and managing it by improving the quality of capital allocation. For that reason, macro-economic policy should shift its focus from asking, “How can we mobilize more capital?” to a more fundamental question: “How can every dollar of capital generate greater productivity, higher value-added, and stronger competitiveness?” Answering that question is the most effective way to reduce the cost of the trade-off between rapid growth and macro-economic stability. It also points to the need for a new approach to managing capital flows.

Rethinking capital allocation

The analysis suggests that Vietnam’s challenge today is not simply a shortage of capital. Rather, it is the need to allocate available resources more efficiently. In other words, economic management should move beyond expanding the pool of financial resources and instead focus on creating new sources of sustainable growth. That transition should be guided by three broad priorities.

The first is shifting from expanding capital to strengthening the economy’s capacity to absorb it. Faster credit growth alone will do little to stimulate the economy if businesses lack orders, are unwilling to invest, or are unable to expand production. Improving capital absorption therefore begins with creating a more favorable business environment, reducing compliance costs, removing institutional bottlenecks, and strengthening business confidence. Once firms regain the confidence to invest, capital will naturally flow toward productive sectors.

The second priority is moving from allocating capital according to scale to allocating it according to expected productivity. The key question should not be how much funding a project receives, but how much additional productivity, value-added, and competitiveness it creates.

The same principle applies not only to public investment but also to bank lending and FDI attraction. When productivity becomes the central criterion for resource allocation, Vietnam can improve the quality of economic growth while easing inflationary pressures over the medium and long term.

The third priority is shifting from measuring policy success by the amount of capital deployed to evaluating the outcomes it delivers. Credit growth, public investment disbursement, and total social investment remain important indicators, but they should not be the ultimate benchmarks of success.

More meaningful measures include how many jobs are created, how much labor productivity improves, how effectively innovation is encouraged, how much domestic value-added is generated, and how significantly business competitiveness is strengthened. These outcomes provide a far more accurate assessment of the quality of economic management. Effective policymaking is not about eliminating trade-offs altogether. It is about minimizing their cost through smarter and more efficient allocation of resources.

Next growth model

Policy discussions in Vietnam have long centered on how to mobilize more resources for development. As the country enters a new stage of economic development, the more important question has become how every dollar of investment can be transformed into higher productivity, more advanced technology, greater value-added, and stronger competitiveness?

The answer extends well beyond fiscal or monetary policy. It depends on the quality of institutions, the business environment, national governance, and the ability to coordinate policy effectively across government.

Rapid economic growth remains a legitimate aspiration, while macro-economic stability remains an indispensable prerequisite for sustainable development. The two objectives are not mutually exclusive. What ultimately determines whether they can be achieved together is the quality of resource allocation.

The size of available capital may influence the pace of growth in the short term, but it is the efficiency with which that capital is deployed that determines the resilience and sustainability of growth over the long run. Rethinking the management of capital flows is therefore not only an immediate priority for the second half of 2026 but also a critical step toward building a new growth model driven by productivity, innovation, and competitiveness in Vietnam’s next phase of development.

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

- Dr. Nguyen Bich Lam (*)

Vietnam and Japan strengthen strategic technology cooperation

Fri, 14 Aug 2026 09:00:00 GMT

Vietnam and Japan are deepening cooperation in strategic technologies, with innovation and human resources at the heart of the partnership...

The Vietnam-Japan Innovation Forum 2026 took place on August 13 at the Vietnam National Innovation Center (NIC) in Hanoi-based Hoa Lac High-Tech Park (HHTP), aiming to creat connection among authorities, technology enterprises, startups, investors, universities, research institutes, and international organizations from both Vietnam and Japan.

It also sought to promote technology co-creation, facilitate investment and business linkages, and initiate concrete collaborative projects in strategic technology sectors.

The Forum was part of the Project for "Vitalizing the Vietnam National Innovation Center," funded by the Government of Japan and implemented by the United Nations Development Programme (UNDP) in collaboration with the NIC.

Bright spots

A key highlight of the forum was the announcement of the establishment of the Vietnam-Japan Semiconductor Human Resource Development Working Group, aimed at strengthening coordination among regulatory bodies, enterprises, and educational and research institutions from both nations to develop the workforce for the semiconductor industry.

The semiconductor industry is a strategic technology sector and a priority in the cooperative framework for science, technology, and innovation between Vietnam and Japan. The working group comprises the Embassy of Japan in Vietnam, Japan’s Ministry of Economy, Trade and Industry (METI), Japanese semiconductor companies, the NIC and four key technical universities in Vietnam, including Hanoi University of Science and Technology; University of Engineering and Technology under the Vietnam National University, Hanoi; Ho Chi Minh City University of Technology under the Vietnam National University, Ho Chi Minh City; and Da Nang University of Science and Technology under the University of Da Nang.

The working group will focus on identifying the supply-demand gap for semiconductor talent and aligning the practical needs of enterprises with the training and research capabilities of universities. This effort aims to foster collaborative programs for training, development, and talent connectivity in the semiconductor sector between Vietnam and Japan. This initiative is expected to serve as a foundation for the two sides to further expand cooperation in developing a high-quality workforce and deepening their participation in the semiconductor value chain.

The Forum also featured activities marking the first anniversary of the NIC’s Strategic Technology Networks, highlighting the journey from their inception to the initial results achieved in resource connection, workforce development, and the promotion of technological collaboration.

In the cybersecurity sector, the network has implemented training programs and cultivated a team of cybersecurity engineers, thereby helping to supply high-quality human resources to a field that plays an increasingly vital role in digital transformation and the development of the digital economy.

In the realm of quantum technology, the network successfully organized the International Quantum Computing Hackathon for Social Good (QC4SG 2026). This event created a platform for experts, researchers, businesses, and the younger generation to explore, experiment with, and develop ideas for quantum technology applications, while simultaneously expanding Vietnam's connections with the global quantum technology community.

Building upon specific cooperation programs, the NIC is also gradually establishing the Vietnam–Japan Innovation Hub at HHTP, as part of a project funded by the Japanese government and implemented by the UNDP in collaboration with the NIC. This hub is envisioned as a platform for substantive technology cooperation, where enterprises, research institutes, and universities from both nations can engage in joint research, testing, training, and investment networking.

Building Innovation Ecosystems

Speaking at the Forum, Mr. Hoang Trung Hieu, Deputy Director of the NIC, affirmed that with its assigned mission, NIC is committed to continuing its partnership with Japanese stakeholders—ranging from government agencies, organizations, research institutes, and universities to the business community and investors—to pool resources, foster collaboration, and create new value.

"NIC also looks forward to the continued interest, support, and partnership of the Japanese Government and the Embassy of Japan in Vietnam," he added. "We aim to implement an increasing number of practical and meaningful cooperative programs and projects at NIC, thereby translating cooperation commitments into concrete, long-lasting, and far-reaching results.”

Ms. Ramla Khalidi, UNDP Resident Representative in Vietnam, highly valued the Comprehensive Strategic Partnership between Vietnam and Japan, as well as Vietnam’s strategic focus on placing science, technology, innovation, and digital transformation at the core of the country's next phase of development.

“For Vietnam to sustain rapid growth and enhance competitiveness in an increasingly technology-driven global economy, knowledge and innovation must become stronger drivers of productivity and value creation," she emphasized. "This requires investment, skills, robust institutions, and, above all, partnerships. An innovation center is only truly strong when ideas are developed and partnerships are forged within it, and when entrepreneurs and researchers effectively utilize and leverage the resources available there.”

Ms. Khalid encouraged startups, researchers, investors, universities, and businesses from both nations to fully capitalize on this opportunity—bringing forward new ideas, conducting trials and validation, seeking partnerships, and transforming high-potential technologies into solutions that generate economic, social, and environmental value.

From the Japanese perspective, Mr. Ishikawa Isamu, Deputy Ambassador of Japan to Vietnam, highlighted the long-standing cooperative foundation between the two countries regarding the development of the HHTP, from Japan International Cooperation Agency (JICA)’s formulation of the HHTP master plan nearly three decades ago to the current advancements in the innovation ecosystem.

The Deputy Ambassador also affirmed that the Japanese Government would continue to implement specific cooperation programs to support Vietnam’s innovation development, including the Project for "Vitalizing the Vietnam National Innovation Center".

People-centric collaboration

To promote Vietnam - Japan cooperation, Ms. Khalid believes that innovation is driven not only by infrastructure, but also, and more importantly, by people. A hub is only as valuable as the ideas developed within it, the partnerships formed around it, and the entrepreneurs and researchers who actually use it.

"I encourage startups, scientists, investors, universities, and enterprises from both countries to make full use of this opportunity," she added. "Bring your ideas, test them, challenge them, find partners, and turn promising technologies into solutions that create economic, social, and environmental value. Every partnership formed here, every technology tested here, and every idea exchanged here will help strengthen Vietnam’s innovation ecosystem and deepen the innovation partnership between Vietnam and Japan."

Vietnamese Former Deputy Prime Minister Nguyen Chi Dung affirmed that Japan has consistently been one of Vietnam's top partners, boasting strong foundations in science and technology, industry, the business sector, research institutes, and leading universities.

Meanwhile, Vietnam possesses a dynamic economy, a young workforce, strong technological adaptability, and a determination to develop strategic technology sectors. The two nations enjoy numerous complementary advantages that can drive mutual development. The challenge lies in how to harness these advantages to create a combined strength for shared growth.

"To address challenges and create new value, the spirit of Vietnam-Japan cooperation in this new era must be people-centered, driven by technology and innovation, and grounded in enterprises and practical challenges, while resting on a foundation of mutual development and mutual benefit," Mr. Dung noted.

-Ngoc Lan

Technology talent training center inaugurated in Thai Nguyen

Fri, 14 Aug 2026 08:00:00 GMT

The center is designed to be a vital link in the high-tech human resource training ecosystem, specifically addressing the growing demand for expertise in Artificial Intelligence (AI), the Internet of Things (IoT), Big Data, and semiconductors.

Samsung Vietnam on August 13 officially inaugurated the Samsung Innovation Campus (SIC) High-Tech Talent Development Center at the University of Information and Communication Technology (ICTU) – Thai Nguyen University, in the northern province of the same name.

The center is designed to be a vital link in the high-tech human resource training ecosystem, specifically addressing the growing demand for expertise in Artificial Intelligence (AI), the Internet of Things (IoT), Big Data, and semiconductors.

Spanning nearly 1,000 sq.m, the facility includes two SIC classrooms, two semiconductor labs equipped with Virtual Reality and Extended Reality (VR/XR) technology, two meeting rooms, and a lounge area. The center has been systematically invested in to provide students with a comprehensive environment for hands-on training, research, and technological exploration.

The launch of this high-tech talent model in Thai Nguyen comes at a time when the province is already home to a significant presence of technology corporations, with Samsung serving as a key investor. However, moving beyond merely expanding production capacity, this investment in training infrastructure signals a strategic shift toward deeper involvement in cultivating the human capital necessary for the industrial ecosystem.

General Director of Samsung Vietnam, Mr. Na Ki Hong, stated that starting from 2026, Samsung will focus on a strategy to expand and upgrade the SIC Lab model in provinces across the country. Following successful launches in Hanoi, Da Nang, and Bac Ninh, the Thai Nguyen center continues to broaden the program's high-tech training network.

The 2026 SIC program is implemented through a partnership between Samsung Vietnam, the National Innovation Center (NIC), Letuin High Tech, and nearly 20 universities and colleges nationwide. The program aims to train approximately 2,200 students in the fields of AI, IoT, Big Data, and semiconductors.

VnEconomy-Dũng Huỳnh

Turning policy into results

Fri, 14 Aug 2026 07:30:00 GMT

The measures needed for Vietnam to post double-digit growth this year and beyond must be executed in a manner that provides a platform for even longer-term development.

Vietnam is entering a pivotal stage of its development, with the launch of the Socio-Economic Development Plan for the 2026-2030 period and a long-term ambition of becoming a high-income developed economy by 2045. For the first time, the country has set a GDP growth target of 10 per cent, aiming to sustain double-digit expansion in the years ahead.

The goal is about more than faster growth. It signals a strategic shift toward a new development model driven by higher productivity, stronger competitiveness, and better-quality growth.

But double-digit growth is not simply about speed. It must be underpinned by macro-economic stability, effective inflation control, and stronger productivity, efficiency, and resilience across the economy. The objective is not growth at any cost, but rapid, high-quality, and sustainable expansion that lays the foundation for Vietnam’s long-term development.

Foundations already in place

Against this backdrop, Vietnam’s economic performance in the first half of 2026 is particularly significant. GDP expanded 8.39 per cent in the second quarter, bringing first-half growth to 8.18 per cent; the fastest pace in 15 years.

The expansion was supported by a broad-based recovery across all three major sectors of the economy. Agriculture, forestry, and fisheries grew 3.87 per cent, continuing to provide a stable foundation. Industry and construction expanded 9.81 per cent, led by manufacturing, which rose 10.23 per cent and remained the economy’s primary growth engine. And services increased 8.09 per cent, reflecting strong recoveries in trade, transportation, and, in particular, tourism.

From the demand side, all three traditional growth drivers strengthened. Final consumption rose 8.15 per cent, gross capital formation increased 15.2 per cent, and exports of goods and services climbed 20.18 per cent, pointing to improving domestic demand while exports continued to play a key role in driving growth.

Strong growth has also been accompanied by stable macro-economic fundamentals. Average consumer price inflation reached about 4.38 per cent in the first half, while core inflation stood at around 4.12 per cent, indicating rising price pressures that remained manageable. State budget revenue totaled VND1,568 trillion ($60.3 billion), equal to 62 per cent of the annual target and up 17.4 per cent year-on-year. Budget expenditure stood at VND1,149 trillion ($44.2 billion), or 36.4 per cent of the annual plan, leaving room for continued expansionary fiscal policy to support growth while maintaining social welfare commitments.

Investment remained one of the economy’s brightest spots. Public investment disbursement reached VND356 trillion ($13.7 billion), equivalent to 35.5 per cent of the annual plan and VND38 trillion ($1.5 billion) higher than in the same period of 2025. However, with this year’s public investment plan exceeding VND1,000 trillion ($38.5 billion), the figures also underscore the significant challenge of accelerating disbursement during the second half of the year.

Meanwhile, registered FDI totaled $34.65 billion, up 61 per cent, while disbursed FDI reached $13.03 billion, an increase of 11.2 per cent. Total social investment rose 12.9 per cent year-on-year. Together, these figures underscore the continued attractiveness of Vietnam’s investment environment and growing confidence among businesses and investors in the country’s economic outlook.

The first-half results are encouraging. More importantly, they suggest the economy is increasingly well positioned for a new phase of growth.

The progress reflects unified leadership from the Party, close coordination with the National Assembly, and decisive, flexible management by the government amid continued global economic uncertainty. Closer coordination between fiscal and monetary policy has helped preserve macro-economic stability, contain inflation, and stabilize money and foreign exchange markets. In turn, this has strengthened business and investor confidence while supporting the recovery across most sectors of the economy.

At the same time, first-half growth was largely driven by the simultaneous recovery of Vietnam’s traditional growth engines. Investment remained the leading contributor as total social investment increased nearly 13 per cent. FDI maintained positive momentum in both registered and disbursed capital. Large-scale infrastructure and energy projects moved forward, while several long-delayed strategic projects resumed implementation.

Exports remained a standout performer, growing by more than 21 per cent, while domestic consumption recovered steadily, supported by rising retail sales and consumer service revenue. Manufacturing continued to affirm its role as the economy’s most important growth driver, while services, particularly trade, logistics, transportation, and tourism, recorded strong gains.

Perhaps most significant has been the progress in institutional reform. The coordinated implementation of the Party’s major policies on private sector development, growth model transformation, science and technology, innovation, digital transformation, and administrative reform has not only helped remove longstanding bottlenecks but also begun to create new opportunities for growth.

These reforms are doing more than supporting short-term expansion. They are laying the groundwork for a new development cycle built on higher productivity, innovation, and more efficient resource allocation.

Together, these developments provide a strong basis for confidence in Vietnam’s growth prospects in the second half of 2026 while reinforcing the foundations for sustained double-digit growth in the years ahead.

Higher ambitions, higher expectations

Under the government’s current scenario, achieving the 10 per cent GDP growth target for 2026 will require the economy to expand by around 11.9 per cent in the second half of the year. It is an exceptionally ambitious target that will demand extraordinary efforts from the political system, the business community, and society as a whole.

But growth alone is not the objective. The second half of the year must deliver on three priorities simultaneously: sustaining growth of at least 11.9 per cent, keeping inflation within the National Assembly’s 4.5 per cent target while preserving macro-economic stability, and improving the quality of growth to lay the foundation for the 2027-2030 development period.

Professor Hoang Van Cuong speaks at the Summer Economic Roundtable 2026, hosted on July 30 by Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy . (Photo: Vietnam Economic Times)

These priorities are closely linked. Pursuing rapid growth without maintaining macro-economic stability would increase the risks of inflation, financial imbalances, and weaker market confidence. Yet an overly cautious policy stance could cause Vietnam to miss opportunities as global supply chains continue to restructure and international investment flows shift.

Achieving these objectives will require addressing the key constraints that continue to weigh on growth. Despite strong economic performance, the quality and sustainability of Vietnam’s growth drivers remain a concern. The economy still relies heavily on foreign-invested enterprises, which account for nearly 80 per cent of total exports, while domestic firms remain only modestly integrated into global value chains. Strengthening the economy’s domestic capabilities therefore remains a priority.

Public investment has received strong policy attention, but disbursement remains uneven across ministries and localities. Weak project preparation, delays in land clearance, and cumbersome investment procedures continue to slow several major infrastructure projects. With public investment expected to crowd in private capital and expand productive capacity, these bottlenecks must be removed.

Businesses also continue to face significant headwinds. Many, particularly small and medium-sized enterprises (SMEs), still struggle to access financing as borrowing costs remain elevated. Weak asset markets point to a shortage of medium and long-term capital, while the corporate bond market has recovered only gradually. Meanwhile, policymakers have less room to ease monetary policy as inflation and exchange rate pressures persist.

Another emerging challenge is implementation capacity. Speaking at the government conference in early July, Party General Secretary and State President To Lam said Vietnam had largely resolved what he described as the “bottleneck of bottlenecks” - institutional reform - but now faced a new constraint: policy execution. In many areas, slow implementation continues to create a wide gap between policy decisions and tangible outcomes.

Science, technology, and innovation have likewise been identified as essential drivers of sustainable double-digit growth. Yet implementation has lagged, and much of the country’s potential has yet to translate into stronger labor productivity and higher Total Factor Productivity (TFP), which will need to become the economy’s primary growth engines.

Bridging the gap between policymaking and implementation, and between development ambitions and execution, will therefore be one of the most important tasks for economic management in the second half of 2026 and beyond.

Turning policy into results

Achieving double-digit growth will require more than short-term policy measures. It also demands more effective implementation. The challenge is no longer simply introducing new policies, but ensuring they are executed quickly and effectively so they translate into tangible gains for businesses and the broader economy.

The first priority is to continue strengthening institutions and creating a more transparent, predictable, and business-friendly investment environment. The Party’s major policies on private sector development, growth model transformation, science and technology, innovation, digital transformation, and administrative reform must be implemented in a coordinated manner to unlock resources and improve their allocation.

Closer coordination between fiscal and monetary policy will also remain essential. Fiscal policy should prioritize strategic infrastructure, science and technology, digital transformation, the green transition, and human capital development. Monetary policy, meanwhile, should remain flexible and prudent, supporting businesses’ access to finance while maintaining inflation control, exchange rate stability, and financial system resilience.

Unlocking and deploying development resources more effectively will be critical. Public investment must serve as genuine “seed capital,” with success measured not only by faster disbursement but by its ability to crowd in private investment and expand the economy’s productive capacity. At the same time, the private sector should be given greater room to grow through improved access to finance, technological upgrading, digital transformation, green transition, and higher labor productivity.

Local governments, particularly major growth hubs such as Hanoi, Ho Chi Minh City, Hai Phong, Quang Ninh, Bac Ninh, Da Nang, Dong Nai, and Can Tho, also have a pivotal role to play. Their objective should extend beyond meeting local growth targets to generating wider spillover effects through stronger regional connectivity, a better investment climate, improved governance, and more effective use of their comparative advantages.

With the global economy still facing considerable uncertainty, strengthening resilience must remain a strategic priority. Geopolitical tensions, rising trade protectionism, financial market volatility, and shifting tariff policies all underscore the need for Vietnam to reinforce its macro-economic fundamentals, diversify export markets, strengthen business competitiveness, and enhance its ability to withstand external shocks.

Science, technology, and innovation must also become genuine drivers of growth. The challenge is no longer defining policy direction but accelerating implementation so that innovation, digital transformation, and technological progress translate into stronger labor productivity and higher TFP.

Ultimately, the success of Vietnam’s double-digit growth ambition will depend on implementation. The country has no shortage of sound policies, ambitious resolutions, or development resources. What remains lacking in many cases is effective execution, leaving a persistent gap between policy intentions and real-world outcomes. Policies implemented too slowly can squander valuable opportunities, while delayed infrastructure projects increase costs and weaken competitiveness.

Double-digit growth, therefore, will depend not only on the quality of policymaking but also on the country’s ability to turn policy into results. That will be the decisive factor in transforming today’s strong foundations into sustained, high-quality growth in the years ahead.

-Professor Hoang Van Cuong

Expectation for tangible outcomes from policies

Fri, 14 Aug 2026 03:00:00 GMT

Policy decisions will only drive economic growth if they are effectively implemented and result in higher productivity and stronger national competitiveness.

The first half of 2026 unfolded against a backdrop of mounting global uncertainty, as economies continued to grapple with rising trade protectionism, shifting tariff policies, supply chain realignment, and geopolitical tensions. Vietnam also faced the internal dual challenge of sustaining strong economic growth while safeguarding macro-economic stability, containing inflation, and laying the groundwork for faster, more sustainable development.

As the government rolled out a series of major policy initiatives, particularly following the adoption of Politburo Resolution No. 19-NQ/TW after the 3rd Plenum of the 14th Party Central Committee, the focus of economic management shifted from policymaking to implementation. The priority became translating reforms into tangible outcomes by unlocking resources, improving execution, and ensuring that policy decisions delivered measurable economic results.

Against this backdrop, Vietnam’s economic performance in the first half of 2026 reflected not only robust growth but also the initial impact of efforts to turn policy into development.

Strengthening together

According to the National Statistics Office at the Ministry of Finance, Vietnam’s GDP expanded 8.18 per cent year-on-year in the first half; one of its strongest growth rates ever despite a volatile global environment. More significant than the headline figure, however, was the broad-based nature of the recovery, with production, investment, and market demand strengthening simultaneously to support the country’s full-year growth target.

Dr. Chu Van Lam, Permanent Vice President of the Vietnam Economic Association and Chairman of the Editorial Board at Tap chi Kinh te Viet Nam/Vietnam Economic Times/VnEconomy speaks at the Summer Economic Roundtable 2026 held in Hanoi on July 30. (Photo: Vietnam Economic Times)

Manufacturing remained the economy’s primary growth engine. The industrial and construction sector expanded 9.81 per cent, led by manufacturing, which grew by more than 10 per cent and continued to make the largest contribution to overall GDP growth. Meanwhile, the services sector maintained solid momentum, supported by recovering domestic consumption, trade, and tourism.

The simultaneous improvement in both industrial production and services suggests that Vietnam is building a more balanced growth model, reducing its reliance on a limited number of sectors or individual growth drivers.

Investment trends also point to growing confidence in the country’s medium and long-term prospects. Total disbursed social investment increased across all three key sectors during the first half of the year: the State sector, the domestic private sector, and the FDI sector.

Public investment continued to accelerate to expand infrastructure and stimulate economic activity, while private businesses remained a major contributor to total investment. FDI inflows also maintained positive momentum despite intensifying global competition for investment capital. The simultaneous expansion of investment across all three sectors underscores the confidence of the government, domestic businesses, and foreign investors in Vietnam’s economic outlook.

Trade and the domestic market also remained important pillars of growth. Merchandise exports reached more than $266.5 billion in the first half of the year, up 21 per cent from a year earlier. Notably, import growth was driven largely by machinery, equipment, and production materials, indicating that businesses are expanding production capacity rather than scaling back in response to global economic uncertainty.

At the same time, labor market conditions continued to improve as employment increased, particularly in industry and services, helping sustain household purchasing power and support domestic consumption.

From momentum to sustained growth

The combined strength of production, investment, and market demand has created a solid foundation for continued economic expansion. However, the first-half results represent only the initial stage of implementing Vietnam’s broader policy agenda. Global uncertainty persists, while competitive pressures, digital transformation, and the transition to a greener economy are becoming increasingly important challenges.

Maintaining growth in the second half of the year will therefore depend not only on preserving economic momentum but also on improving the quality of policy implementation to unlock new sources of productivity and expand the country’s development potential.

Against this backdrop, the Vietnam Economic Association and Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy organized the Summer Economic Forum 2026 on July 30, with the theme “From Policy Decisions to Growth: Solutions to Promote Double-Digit Growth, Control Inflation, and Maintain Macro-economic Stability in 2H 2026.”

The Forum’s central message was clear: policy decisions can drive economic growth only when they are effectively implemented and translated into higher productivity and stronger national competitiveness.

-MINH KIET

PM urges banks to direct credit toward growth-driving sectors

Fri, 14 Aug 2026 01:30:00 GMT

Prime Minister Le Minh Hung chairing a meeting with the banking system to review monetary policy and credit activities during the first seven months of 2026.

Prime Minister Le Minh Hung on August 13 urged the State Bank of Vietnam (SBV) and credit institutions to ensure credit flows are directed to priority sectors and growth drivers, while maintaining macroeconomic stability and controlling inflation.

At a meeting with the SBV and the banking system to review monetary policy and credit activities during the first seven months of 2026, the Prime Minister asked the central bank to manage credit growth in line with the year's target while responding proactively and flexibly to market developments.

He stressed that capital must reach the right sectors, at the right time and for the right purposes, at reasonable costs. Priority should be given to production, exports, high-tech industries, supporting industries, agriculture, innovation, social and rental housing, essential infrastructure and key national projects.

Monetary policy management must balance inflation control, macroeconomic stability and banking-system safety with support for economic growth, he said, calling for efforts to promote double-digit economic growth based on accurate data, forecasts and specific scenarios.

Regarding interest rates, exchange rates and credit, the Prime Minister urged the SBV and banks to mobilise resources for growth while sharing responsibility with businesses and people through measures to stabilise interest rates and reduce lending costs.

The SBV was also asked to maintain current policy rates, improve market liquidity and manage the exchange rate flexibly, while continuing close oversight of the gold market. Credit institutions were urged to cut operating costs, stabilise lending rates and deliver substantive reductions in borrowing costs.

-Kỳ Phong

Bac Ninh attracts over $2.7 bln into semiconductor industry

Thu, 13 Aug 2026 23:30:00 GMT

The presence of global giants is laying the groundwork for the northern province to gradually build a semiconductor ecosystem.

Northern Bac Ninh province has so far attracted 33 projects in the fields of semiconductors, semiconductor materials, and manufacturing of supporting equipment and components, with a total registered capital exceeding $2.742 billion, the online newspaper of Radio the Voice of Vietnam cited figures from the Provincial Department of Science and Technology as reporting.

Of these, six projects focus on semiconductors and semiconductor materials, while 27 others involve the production of ancillary equipment and components for the industry. Many of these are large-scale investments from major international technology corporations.

Notable examples include Amkor Technology’s project with a total investment of $1.6 billion; Hana Micron Vina with $669 million; Micro Commercial Components with $115 million; Hana Micron Vietnam with $37.46 million; and Synergie Cad Vietnam Co., Ltd. with $21.21 million. Additionally, FPT’s semiconductor testing and packaging technology project has an investment capital of VND50 billion ($1.9 million).

The presence of these global giants is laying the groundwork for the locality to gradually build a semiconductor ecosystem. This development facilitates stronger links between electronics enterprises and the semiconductor industry while enhancing the province's ability to integrate into global supply chains.

Bac Ninh’s success in attracting semiconductor investment is significantly bolstered by its well-established electronics industry. Currently, the province is home to approximately 1,282 electronics companies, employing a workforce of around 481,948 people.

By 2025, the industrial production value of electronics enterprises in the province is projected to reach approximately VND1.85 quadrillion ($71 billion). This established industrial base serves as a crucial advantage, allowing electronics firms to transition into the semiconductor sector and form a highly integrated production and supply network.

In addition to this corporate foundation, the province’s industrial park system continues to be expanded and refined to meet the requirements of high-tech projects. Among the 39 industrial parks that have received investment policy approval, 23 are currently operational.

VOV-Khanh Chi

Ha Tinh attracts over $6.3bln in investment in 7M

Thu, 13 Aug 2026 23:10:00 GMT

The central province attracting 8 domestic projects and four FDI projects, with combined registered investment capital of more than $6.3 billion.

Central Ha Tinh province attracted a surge in investment in the first seven months of 2026, with the scale of registered capital increasing sharply and major projects focusing on industries with strong spillover potential.

During the period, the central province approved 32 domestic investment projects with total registered capital exceeding VND155 trillion ($5.9 billion), up by eight projects and more than eightfold in capital compared with the same period last year.

In the foreign-invested sector, the province attracted four FDI projects with combined registered capital of $412.6 million, representing an increase of one project and more than 28 times in capital year-on-year.

Notably, several large-scale projects approved recently are helping shape new industrial growth drivers for the province.

These include the VinFast Ha Tinh electric motorcycle manufacturing plant, with total investment of nearly VND13.3 trillion; the VinMetal Ha Tinh steel manufacturing plant, nearly VND80 trillion; the Vung Ang III LNG thermal power plant, VND51.43 trillion; and a stainless steel plant, VND9.8 trillion.

The continued arrival of large-scale projects is expected not only to expand local production capacity but also to create jobs, increase budget revenues and foster the development of supporting businesses and services in the province.

-Nguyễn Thuấn

Hon La Economic Zone attracts $6bln in registered investment

Thu, 13 Aug 2026 23:00:00 GMT

Covering around 10,000ha in central Quang Tri province, the zone is planned as a multifunctional economic hub featuring industrial parks, seaports, thermal power facilities, trade and services, and tourism.

Hon La Economic Zone in central Quang Tri province has attracted 87 investment projects with total registered capital of around VND159 trillion ($6 billion), according to the provincial Economic Zone Management Board.

Of these, 36 projects are already operational, mainly in wood and wood chip production and processing, concrete and steel components, titanium ore processing, and port cargo handling services.

In the first seven months of 2026, the provincial Economic Zone Management Board approved investment policies for four projects with combined capital of VND311 billion, while adjusting seven projects and revoking two others.

The economic zone covers around 10,000 hectares. It is planned as a multifunctional economic hub featuring industrial parks, seaports, thermal power facilities, trade and services, and tourism.

-Nguyen Thuan

VIFC-HCMC attracts $20 bln in investment after 6 months of operation

Thu, 13 Aug 2026 12:00:00 GMT

According to the 2026 GFCI 39 index, the southern city of Vietnam jumped 11 places to rank 84th out of 120 global financial centers, securing the third-highest position in Southeast Asia.

The Vietnam International Financial Center in Ho Chi Minh City (VIFC-HCMC) has attracted $20 billion from domestic and international investors and partners after six months of operation. At the same time, its foundational components such as aviation finance and maritime financial ecosystems are gradually taking shape.

Assoc. Prof. Dr. Nguyen Huu Huan, Vice Chairman of the VIFC-HCMC Executive Board, shared this information during an investment promotion conference for the center held on August 11.

According to Dr. Huan, these figures are not merely "paper commitments" but reflect a shift among investors from exploring mechanisms to selecting specific sectors and products. This demonstrates the feasibility and attractiveness of the financial components that VIFC-HCMC is currently building.

Beyond capital attraction, the development of VIFC-HCMC has significantly improved HCM City’s standing in international rankings. According to the Global Financial Centres Index (GFCI) 39, released in March 2026, the southern city of Vietnam jumped 11 places to rank 84th out of 120 global financial centers, securing the third-highest position in Southeast Asia.

“VIFC-HCMC does not aim to become a second Singapore or Hong Kong (China). Instead, it must find its own unique position as a financial gateway for a high-growth economy with immense investment needs that is integrating deeply into global value chains. This defines a unique development strategy focused on Vietnam’s internal strengths and actual needs, particularly long-term capital for infrastructure, urban development, energy, green transition, and digital transformation,” Dr. Huan stated.

To realize this vision, VIFC-HCMC is focusing on several key areas beyond aviation and maritime finance. These include fund and asset management, international capital and bond markets, green finance, fintech and regulatory sandboxes, digital assets, and international banking and payment activities.

Transparent legal foundation to anchor investor trust

In the context of shifting global capital flows and the rapid rise of digital finance, fintech, and digital assets, competition among regional countries to attract international financial institutions has become increasingly fierce. To secure high-quality, long-term, and sustainable capital, HCM City needs more than just traditional advantages: it requires a transparent and stable legal framework, effective and reliable dispute resolution mechanisms, a competitive tax environment, and foreign currency convertibility. This is the mission of the VIFC—to serve as a bridge between global capital and the Vietnamese economy.

Speaking at the event, Managing Director of EY Law Vietnam, Mr. Nguyen Duy Hieu, argued that a regulatory sandbox would create space for innovation while maintaining close interaction with existing legal systems regarding investment, banking, foreign exchange, taxation, data, and anti-money laundering. This highlights the balance between innovation and risk management—a key factor in building trust among international investors.

In addition to legal frameworks and financial products, physical infrastructure is an indispensable element. Senior Director of CBRE Vietnam, Mr. Le Trong Hieu, predicted that between 2026 and 2028, approximately 76% of the nearly 165,230 sq.m of new Grade A office supply is expected to be concentrated in the VIFC-HCMC area. This supply is anticipated to meet the rising demands of international financial institutions and enterprises regarding technological infrastructure, operational standards, floor plate efficiency, ESG (Environmental, Social, and Governance) standards, and user experience.

Most experts agree that VIFC-HCMC is approaching a critical turning point. The central task for 2026 is to transition from a "legal framework" to a "real-world market," where institutions operate, capital is raised, products are traded, and cross-border transactions are executed. The next challenge is to transform these commitments into actual capital flows into the economy, generating specific projects and deals, thereby realizing the goal of becoming a regionally competitive financial center deeply integrated into the global financial network.

VnEconomy-Hong Quang

Vietnam targets 10,000 highly skilled AI professionals by 2030

Thu, 13 Aug 2026 11:00:00 GMT

The Government has approved a National Program on AI Human Resources Development through 2030, with a vision to 2035.

Vietnam aims to develop 10,000 highly qualified artificial intelligence (AI) professionals by 2030, including researchers, engineers and experts capable of researching, developing, mastering and managing advanced AI systems. At least 1,500 of them will be capable of researching and mastering core AI technologies.

The goal is part of a National Program on AI Human Resources Development through 2030, with a vision to 2035, which has been approved under Prime Ministerial Decision No.1528/QD-TTg, signed on August 11 by Deputy Prime Minister Le Tien Chau.

Under the program, Vietnam aims to provide learners, workers and management personnel with widespread knowledge and skills to use AI safely and effectively by 2030.

The country will also provide new training, retraining and advanced training for at least 50,000 university graduates and above, equipping them with AI application capabilities in key sectors.

The program seeks to establish advanced AI training centers, programs and research groups capable of training high-quality AI professionals, developing core AI technologies, attracting international experts and participating more deeply in regional and global AI development networks.

By 2030, Vietnam aims to rank among the region’s leading countries in AI human resources, with a safe, reliable and responsible ecosystem for AI training, research, application and governance. This is expected to contribute directly to labor productivity, innovation, public service quality and national competitiveness while safeguarding national interests in the AI era.

-Bạch Dương

Vietnam – Uganda cooperation: awakening potential from the “Pearl of Africa”

Thu, 13 Aug 2026 09:30:00 GMT

Ugandan Ambassador to Vietnam, H.E. Ms. Betty O. Bigombe, expressed her hope that Vietnamese investors would increase their presence in Uganda to add value to local products, thereby turning Uganda into a gateway for Vietnamese businesses to reach the wider African market.

Africa is becoming a global investment hub thanks to its young workforce, rapid urbanization, and the implementation of the African Continental Free Trade Area (AfCFTA).

Within this broader context, Uganda has emerged as a key economy in East Africa, owing to its strategic location connecting the East African Community (EAC). Its rich mineral resources, fertile land, high economic growth rate, and abundant labor force make Uganda a promising destination for international investors, including those from Vietnam.

The assessment was made by Deputy Minister of Foreign Affairs Le Anh Tuan during the "Vietnam-Uganda Business Forum: The Pearl of Africa," held in Hanoi on August 12.

In recent years, the traditional friendship between Vietnam and Uganda has seen positive progress. Bilateral trade turnover in 2025 reached $53.4 million, nearly double the $28.6 million recorded in 2024. To date, Vietnam has three investment projects in Uganda with a total registered capital of approximately $35 million.

Despite these positive signals, both sides acknowledge that current trade and investment activities remain relatively modest.

“In reality, economic cooperation between Vietnam and Uganda is still limited and does not yet match the potential and needs of both sides,” said Mr. Tuan.

Explaining why trade and investment have not reached their full potential, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) Nguyen Quang Vinh cited limited market information and geographical distance as factors that prevent many Vietnamese enterprises from fully seizing opportunities in Uganda. Furthermore, high logistics costs and differences in legal environments, business practices, and corporate cultures remain significant bottlenecks hindering investment flows.

Towards sustainable and mutually beneficial partnership

To turn potential into substantive cooperation, Deputy Foreign Minister Tuan suggested that the two countries increase the exchange of delegations at all levels and establish regular connection mechanisms between ministries, sectors, and business communities to identify opportunities and resolve obstacles in economic cooperation.

Both sides need to assist businesses in identifying priority product lists and investment policy information, while pushing for the signing of key framework agreements, such as the Double Taxation Avoidance Agreement and the Investment Promotion and Protection Agreement, according to the Deputy Foreign Minister.

Additionally, there is room for further research and cooperation in emerging sectors such as digital transformation, oil and gas engineering, infrastructure construction, and resource extraction.

Mr. Vinh emphasized that VCCI would step up the sharing of information regarding Uganda’s strengths, such as agricultural products, coffee, minerals, and tourism. The body will also organize training programs to equip Vietnamese enterprises with the necessary knowledge of local business culture.

Ugandan Ambassador to Vietnam, H.E. Ms. Betty O. Bigombe, expressed her hope that Vietnamese investors would increase their presence in Uganda to add value to local products, thereby turning Uganda into a gateway for Vietnamese businesses to reach the wider African market.

Uganda stands ready to cooperate deeply with Vietnam in technology transfer, human resource training, and strengthening the links between the governments and business communities of both nations, the ambassador said.

VnEconomy-Song Hà

Vietnam, New Zealand push for $3 bln two-way trade target

Thu, 13 Aug 2026 09:10:00 GMT

In the first half of 2026, Vietnam-New Zealand trade turnover reached $845 million, a 15% increase compared to the same period in 2025.

Minister of Industry and Trade Le Manh Hung held a bilateral meeting with New Zealand Minister for Trade and Investment Todd McClay, on August 13, within the framework of the State visit of Vietnam's General Secretary and President To Lam to New Zealand.

Against a backdrop of global economic challenges and geopolitical uncertainties, the two ministers discussed measures to further strengthen bilateral economic and trade ties. Their goal is to ensure the stable flow of essential goods and regional supply chains while pushing for bilateral trade turnover to reach the $3 billion target in the near future.

To achieve this goal, Minister Hung proposed that New Zealand cooperate closely on several key solutions, including accelerating the process of opening markets for agricultural and food products; promoting two-way trade and investment, with a focus on encouraging New Zealand enterprises to invest in Vietnam; expanding cooperation in digital transformation, digital trade, and cross-border e-commerce, while connecting Vietnamese IT and software companies with the New Zealand market; and maintaining close coordination and mutual support in multilateral forums and effectively implementing Free Trade Agreements (FTAs) to maximize benefits for the business community.

On his part, Minister McClay highly appreciated and agreed with Vietnam's proposals. Regarding market access for agricultural and seafood products, Minister McClay stated he would work with relevant New Zealand agencies to facilitate and expedite the process.

In terms of multilateral cooperation, Minister Hung requested New Zealand’s support to ensure Vietnam’s successful and effective term as the CPTPP Chair, bringing tangible benefits to all member states. He also expressed a desire for New Zealand to share its experience and provide technical assistance as Vietnam prepares to host APEC 2027. Vietnam highly values New Zealand's contributions to policy dialogues, its expertise in measuring trade in environmental goods, and its support for APEC’s green growth initiatives.

In response, Minister McClay pledged his support for Vietnam’s CPTPP Chairmanship and expressed readiness to provide the necessary expertise and assistance requested by Vietnam.

On this occasion, Minister Hung extended an invitation to Minister Todd McClay to attend the 11th CPTPP Ministerial Commission Meeting, scheduled to be held in Vietnam in November 2026.

In the first half of 2026, Vietnam-New Zealand trade turnover reached $845 million, a 15% increase compared to the same period in 2025. Specifically, Vietnam’s exports to New Zealand reached $400 million (up 19%), while imports from New Zealand totaled $445 million (up 11%).

VnEconomy -Huyen Vy

Vietnam and ACIAR strengthen agricultural research cooperation to support green transition

Thu, 13 Aug 2026 09:00:00 GMT

New ACIAR investments worth A$3.3 million ($2.3 million) aim to support Vietnam’s coastal and riverside communities in improving their livelihoods, adapting to climate change, and fostering social inclusion...

During the state visit of Vietnam’s General Secretary and President To Lam to Australia on August 9-12, Vietnam’s Ministry of Agriculture and Environment (MAE) and the Australian Centre for International Agricultural Research (ACIAR) on August 11 announced a 10-year research collaboration strategy (2026 – 2035) and agreed in-principle to invest A$3.3 million ($2.3 million), together with additional in-kind contributions in two new research projects.

The new 10-year strategy aims to strengthen ACIAR and MAE’s collaboration to support Vietnam’s ongoing transition to a more efficient, responsible and high-quality agricultural economy, while advancing its Net Zero commitment and broader sustainable development goals. It focuses on more efficient use of natural resources, environmental protection, digital transformation and climate resilience in the agricultural sector.

Dr. Nick Austin, ACIAR’s Acting Chief Executive Officer, said that through deeper cooperation in strategic agricultural research and innovation, Vietnam and Australia will advance sustainable development, green transformation, carbon neutrality and resilience to global challenges.

Since 1993, the long-standing and effective research partnership between ACIAR and Vietnam has contributed to the growing bilateral relationship between Vietnam and Australia. Through ACIAR, Australia has supported Vietnam to strengthen research capacity, technology, farming systems and value chains. These outcomes have contributed to Vietnam’s progress in restructuring and increasing value of the agriculture sector, enhancing farmers’ livelihood and adapting to climate change.

Speaking on this occasion, Mr. Dang Ngoc Diep, Vietnamese Deputy Minister of Agriculture and Environment, highly appreciated the partnership with ACIAR. He also emphasised that MAE and ACIAR’s collaboration in the next 10 years will continue to build on 3 decades of effective partnerships, under the framework of the Vietnam - Australia Comprehensive Strategic Partnership. It will focus on delivering practical, effective and sustainable research outcomes.

As Vietnam enters a new phase of development, a partnership grounded in science and innovation will be key to advancing green growth and low-emission development while maintaining food security and global competitiveness.

The two new research projects are a concrete realisation of the shared commitments set out in the strategy, helping strengthen capacity, livelihoods, local enterprises and social inclusion in Khanh Hoa Province and the Red River Basin.

Both projects build on earlier ACIAR investment in Vietnam and the Southeast Asia region, drawing on the robust partnership between Australia and Vietnam’s networks of scientists, government agencies, universities and local communities.

The first project "Fish Tech Plus: Growing capacity of Mekong subregion countries to implement technical fisheries solutions into river development programs" worth A$ 480,000 (about $338,000) for Vietnam, will commence this month. It will strengthen institutional and community capacity for sustainable and inclusive river development in the Mekong subregion through research, education, and demonstration of fish-friendly infrastructure that enhances climate resilience, safeguards fisheries-based livelihoods, and promotes gender equality, disability, and social inclusion.

The second planned project "Supporting development of the mabé pearl sector in Khanh Hoa Province of Vietnam" worth A$ 2.8 million (about $1.9 million) is expected to commence in January 2027. It will support research, training and market development to help smallholder farmers improve their livelihoods through participating in an emerging aquaculture value chain.

The project will improve hatchery, nursery and grow-out systems, strengthen post-harvest processing skills, develop value-added pearl and shell products, and improve market knowledge and access. It will also examine environmental sustainability and climate-related risks to guide responsible sector expansion. By testing technologies and markets, the project will establish a foundation for expanding mabé pearl livelihoods to other coastal areas of Vietnam.

These partnerships reflect the mutual commitment to practical research that creates livelihood opportunities in the Blue Economy, strengthens local capability, and supports more inclusive participation, including opportunities for women and persons with disabilities.

By linking Vietnamese and Australian expertise with government, university, private sector and community partners, the projects will support sustainable livelihoods and better-informed decisions on coastal and river resource management in Vietnam.

Through these projects, Vietnam and Australia will also support knowledge generation, technology transfer and regional cooperation across Southeast Asia region.

-Ngoc Lan

Top leader calls for joint Vietnam–New Zealand efforts to create new growth drivers

Thu, 13 Aug 2026 08:10:00 GMT

At the New Zealand–Vietnam Business Roundtable in Auckland on August 13, Party General Secretary and President To Lam called for joint efforts to create new growth drivers based on science, technology, innovation and green transformation, encouraging New Zealand businesses to view Vietnam not only as a market but also as a partner for research, product development, manufacturing and innovation in Southeast Asia.

The New Zealand–Vietnam Business Roundtable was held in Auckland on August 13 as part of the state visit of General Secretary of the Communist Party of Vietnam Central Committee and President To Lam to New Zealand, which was attended by New Zealand Minister of Trade and Investment Todd McClay, leaders of ministries and agencies, and representatives of businesses from both countries.

Minister McClay was quoted by the Vietnam News Agency as stating in his opening address that the visit takes place at an important time for bilateral relations, adding that more than five decades since diplomatic ties were established on June 19, 1975, the relationship has developed into a dynamic partnership spanning trade, education, investment, science, innovation and people-to-people exchanges, and that the elevation of ties to a Comprehensive Strategic Partnership in 2025 reflects growing trust, respect and expectations between the two sides.

The minister described Vietnam as one of New Zealand’s important partners in Southeast Asia, highlighting its fast-growing economy, market of more than 100 million people, young workforce and deep integration into global trade. He noted that beyond traditional areas such as agriculture and food, there remains significant potential for cooperation in high-tech agriculture, health technology, education, research and skills development.

The next phase of bilateral economic ties will be increasingly driven by knowledge, technology and innovation, he went on, adding that New Zealand hopes to become a trusted partner of Vietnam in economic modernisation, productivity improvement and sustainable development.

Representatives of businesses from both countries shared practical cooperation stories, highlighting growing complementarities between the two economies. They agreed that collaboration in technology, aviation, market connectivity and innovation is creating new business models and opening up new markets.

Addressing the event, General Secretary and President Lam, as cited by the news agency, welcomed the candid and substantive views of the business communities, saying they reflect the spirit of innovation, dynamism and future-oriented thinking that Vietnam encourages.

He called on businesses of both countries to upgrade agricultural and food cooperation through green value chains, with a focus on smart agriculture, biotechnology, deep processing, cold-chain logistics, traceability and branding; and work together to address standards, quarantine and market-access barriers. The goal is not only to increase trade revenue but also to build green, transparent, sustainable and more resilient supply chains.

The top Vietnamese leader also called for joint efforts to create new growth drivers based on science, technology, innovation and green transformation, encouraging New Zealand businesses to view Vietnam not only as a market but also as a partner for research, product development, manufacturing and innovation in Southeast Asia.

Vietnam is ready to serve as a gateway for New Zealand businesses to expand into ASEAN, he said, suggesting New Zealand act as a bridge for Vietnamese enterprises to integrate more deeply into high-quality value chains in the Pacific region.

He underlined the importance of connecting people, knowledge and markets, and urged stronger cooperation among universities, research institutions and businesses in training, applied research, technology transfer, skills development and innovation.

General Secretary and President Lam affirmed Vietnam’s commitment to making improvements to ensure a stable, transparent and competitive investment environment matching international standards, and to facilitating long-term and effective investment by New Zealand businesses, particularly in high-tech agriculture, food processing, education, science – technology, innovation and the green economy.

He stressed that cooperation commitments must soon be translated into concrete programmes, projects and results, noting that the success of bilateral economic ties should be measured not only by trade turnover or the number of projects, but also by the quality of connectivity, technological content, the level of participation in emerging value chains and tangible benefits for businesses and people.

At the roundtable, witnessed by Vietnamese Minister of Finance Ngo Van Tuan and Minister McClay, representatives of businesses and organisations from the two countries exchanged cooperation documents aimed at turning the agreed directions into concrete initiatives.

Top Vietnamese leader meets with New Zealand Governor-General in Auckland

Thu, 13 Aug 2026 08:00:00 GMT

The Governor-General highlighted the historic significance of the visit as the first time a Vietnamese leader has visited New Zealand in both capacities of General Secretary of the CPV Central Committee and President of the State.

During the meeting between General Secretary of the Communist Party of Vietnam (CPV) Central Committee and President To Lam and New Zealand Governor-General Dame Cindy Kiro in Auckland on August 13 (local time) as part of the former’s State visit to New Zealand, the latter highlighted the historic significance of the visit as the first time a Vietnamese leader has visited New Zealand in both capacities of General Secretary of the CPV Central Committee and President of the State.

Impressed by Vietnam’s rapid development and growing international standing, the Governor-General said, as quoted by the Vietnam News Agency, that although New Zealand and Vietnam are separated by a vast ocean, they are connected by a shared aspiration for a stable, peaceful and prosperous region. Against the backdrop of increasing global uncertainty, she stressed the need for the two countries to further strengthen cooperation.

She also noted that bilateral ties have advanced not only on the foundation of strong political trust but also through people-to-people connections, particularly the Vietnamese community of around 15,000 in New Zealand.

Sharing her fondness for Vietnamese culture and cuisine, the Governor-General stressed that bilateral relations are built not only through government-to-government ties but also through links among universities, families and communities. She expressed her belief that the top Vietnamese leader’s state visit this time will not only promote bilateral cooperation but also deepen bonds between the two countries and their people.

General Secretary and President Lam thanked the Governor-General, leaders and people of New Zealand for their warm, thoughtful and culturally distinctive welcome extended to the Vietnamese delegation.

The Vietnamese top leader was quoted by the news agency as speaking highly of Governor-General Dame Cindy Kiro’s role in promoting initiatives on social wellbeing, nature conservation, public understanding and community cohesion, while noting New Zealand’s increasingly prominent role, reputation and positive image in the region and the world.

The leader also shared Vietnam’s achievements after four decades of Doi Moi (Renewal), as well as an overview of the country’s socio-economic situation and major development orientations.

General Secretary and President Lam spoke highly of the more than half a century of Vietnam–New Zealand relations, which have been nurtured by political trust, mutual respect and sincere affection between the two countries' people. New Zealand has always been a trusted friend and partner of Vietnam, with great support to Vietnam in human resources training and official development assistance (ODA) in various fields, including agriculture, climate change response, disaster recovery and education, he said.

He thanked the Governor-General for her contributions to fostering the friendship between the two countries, expressing his belief that New Zealand will continue to be an important partner accompanying Vietnam in its industrialisation, modernisation and international integration. He proposed that Governor-General Kiro continue to promote development cooperation programmes in Vietnam in education, agriculture, climate change response and gender equality.

Highlighting the 15,000-strong Vietnamese community in New Zealand as a bridge of friendship between the two countries, General Secretary and President Lam expressed his hope that Governor-General Kiro will continue to pay attention to and create favourable conditions for the community to further develop, make positive contributions to New Zealand society and strengthen bilateral relations. He also suggested that New Zealand support Vietnam in English language teaching, contributing to the successful implementation of the plan to make English a second language in Vietnam.

Welcoming and agreeing with the proposals, the Governor-General said she will continue to support and pay attention to development issues between the two countries, particularly education, which she regarded as an important bridge of friendship between the two nations and their peoples.

At the meeting, the two sides agreed to bring the Vietnam–New Zealand Comprehensive Strategic Partnership into a new phase. General Secretary and President Lam affirmed that in the capacity as coordinator of ASEAN–New Zealand relations for 2024-2027, Vietnam will make every effort to deepen bilateral relationship and make it more substantive.

The Governor-General expressed her appreciation for Vietnam's support in its role as coordinator of ASEAN–New Zealand relations, stressing that the two countries have significant potential for cooperation not only bilaterally but also on multilateral issues. The two sides agreed to continue close coordination and mutual support at multilateral forums, contributing to a peaceful, stable, cooperative and development-oriented environment in the region and the world.

On the occasion, the top Vietnamese leader invited the Governor-General of New Zealand to visit Vietnam. Accepting the invitation, the Governor-General once again expressed her affection for Vietnam and its people, describing Vietnam as a resilient nation, and said she looks forward to visiting Vietnam soon.

VNA-

Talks between top Vietnamese leader and New Zealand Prime Minister held in Auckland

Thu, 13 Aug 2026 07:20:00 GMT

At the talks on August 13, the two leaders highlighted the complementary nature of the two economies and identified trade and investment as an important pillar with substantial room for growth, particularly in agricultural, aquatic and seafood products.

Talks between General Secretary of the Communist Party of Vietnam (CPV) Central Committee and President To Lam and New Zealand Prime Minister Christopher Luxon was held in Auckland on August 13, as part of the former’s State visit to New Zealand.

During the talks, according to a report by the Vietnam News Agency, the two leaders agreed to further consolidate political trust, expand economic and trade cooperation and make effective use of shared free trade agreements.

New Zealand PM Luxon said that the visit marked an important milestone in strengthening bilateral ties after more than half a century. He affirmed Vietnam is an important partner of New Zealand and expressed his impression at the Southeast Asian country’s remarkable achievements, including its strong economic growth.

The top Vietnamese leader, meanwhile, congratulated New Zealand on its important achievements in national development, affirming that Vietnam always attaches importance to its traditional friendship and multifaceted cooperation with New Zealand. He noted with satisfaction the significant progress in the bilateral ties, particularly the elevation of relations to a Comprehensive Strategic Partnership in 2025.

On this occasion, he conveyed greetings from Prime Minister Le Minh Hung to PM Luxon.

The two leaders briefed each other on the development situation in their respective countries and spoke highly of the reliable political ties and strong bonds between the two peoples, which, they said, provide a foundation for the two countries to strengthen bilateral cooperation across areas for the benefit of both countries' people and for peace, stability and development in the region and the world.

They agreed to continue strengthening political trust and expanding all-level exchanges and meetings through Party, State, parliamentary and people-to-people channels, while making effective use of policy consultation mechanisms.

They also agreed to further promote defence and security cooperation in a more substantive and effective manner, particularly in maritime security, naval ship exchanges, cybersecurity and military medicine. They also reached consensus on studying the establishment of a direct communication mechanism or hotline for dealing with transnational crime, and accelerating negotiations towards establishing mechanisms and signing bilateral cooperation agreements.

General Secretary and President Lam proposed the two sides enhance coordination to review and effectively implement the Action Programme to implement the Vietnam-New Zealand Comprehensive Strategic Partnership for 2025-2030.

Regarding economic ties, the two leaders highlighted the complementary nature of the two economies and identified trade and investment as an important pillar with substantial room for growth, particularly in agricultural, aquatic and seafood products.

They agreed to expand economic and trade cooperation and make effective use of shared free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), while promoting trade facilitation and market access for each side’s key agricultural products, and reducing technical barriers, and promoting exchanges on quality standards, quarantine, food safety and electronic certification.

PM Luxon affirmed that New Zealand will continue to strongly promote collaboration in trade and investment, creating favourable conditions for businesses from both countries to explore opportunities for cooperation and investment in each other’s markets.

Appreciating the practical and effective support provided by the New Zealand Government to Vietnam over the years, particularly in agriculture and the environment, General Secretary and President Lam expressed his hope that the two sides will continue to work together to develop green, low-emission and climate-resilient agriculture, ensures food security and increases the added value of agricultural products, while building exemplary cooperation models regarding sustainable agriculture.

Sharing the two countries’ common development goals based on science, technology, innovation and digital transformation, PM Luxon spoke highly of Vietnam’s efforts to develop policies and implement solutions to apply artificial intelligence (AI) in protecting data sovereignty and national digital sovereignty. He affirmed that New Zealand will continue sharing experience in building a digital government, developing ecosystems supporting science and technology development, and establishing innovation and startups support centres.

The two sides agreed to make education, tourism, connectivity and people-to-people exchanges important drivers of bilateral relations. Accordingly, they will expand cooperation in training high-quality human resources with the qualifications, expertise and skills needed for the new period of development, while encouraging their airlines to open direct flights at an early date to narrow the geographical distance between the two countries and create more opportunities for people-to-people exchanges and new, more substantive and comprehensive cooperation.

Amid complex regional and global developments, the New Zealand PM spoke highly of Vietnam's role as coordinator of ASEAN-New Zealand relations and thanked the country for helping New Zealand upgrade its ties with ASEAN, an important multilateral mechanism in Southeast Asia, to a comprehensive strategic partnership. He affirmed his support for and commitment to assisting Vietnam during APEC Year 2027.

The two leaders affirmed that they will continue to strengthen cooperation on regional and international issues of mutual concern at multilateral forums, particularly the United Nations. They also reaffirmed the importance of upholding international law in the region and settling disputes in the East Sea by peaceful means in accordance with international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

VNA-

Official welcome ceremony held for top Vietnamese leader in New Zealand

Thu, 13 Aug 2026 02:00:00 GMT

The ceremony was conducted in accordance with protocol for foreign heads of state visiting New Zealand, incorporating a traditional Māori welcome ceremony and an official greeting.

Governor-General of New Zealand Dame Cindy Kiro hosted an official welcome ceremony for General Secretary of the Communist Party of Vietnam Central Committee and President of Vietnam To Lam in Auckland on August 13 morning (local time), the Vietnam News Agency reported.

The top leader of Vietnam, along with a high-ranking delegation, is paying a state visit to New Zealand from August 12 to 14.

The ceremony was conducted in accordance with protocol for foreign heads of state visiting New Zealand, incorporating a traditional Māori welcome ceremony and an official greeting.

Following the welcome ceremony, General Secretary and President To Lam held talks with Governor-General Dame Cindy Kiro and Prime Minister Christopher Luxon, witnessed the exchange of cooperation documents, and jointly met with the press.

The state visit takes place as Vietnam enters a new phase of development, with priority given to high-quality human resources, high-value agriculture, and green growth—areas where New Zealand possesses leading expertise and credibility, and where bilateral cooperation is already yielding strong results. Besides, significant untapped potential remains for both sides to harness more strongly in the coming period.

The visit aims to intensify and make bilateral relations more substantive, with both sides expected to promote concrete cooperation in education, agriculture, trade, and sustainable development. This will help translate political commitments into tangible benefits, programmes, and projects serving each country's development objectives, while contributing to regional peace, stability, sustainable development, and resilience.

VNA-

Six strategic solutions for international tech cooperation through 2030 unveiled

Thu, 13 Aug 2026 01:00:00 GMT

This strategy is expected to make practical contributions to the development of strategic technologies aimed at sustainable development, ensuring national defense and security, and strengthening national technological autonomy.

Permanent Deputy Prime Minister Pham Gia Tuc on August 11 signed Prime Ministerial Decision No 139/QD-TTg, officially issuing the "International Cooperation Strategy on Strategic Technologies to 2030."

The strategy focuses on six key solution groups: creating a favorable environment for cooperation; implementing international commitments and agreements; enhancing access to advanced technologies; improving technology development capacity; providing support for enterprises; and offering policy advisory.

This strategy is expected to make practical contributions to the development of strategic technologies aimed at sustainable development, ensuring national defense and security, and strengthening national technological autonomy.

At the recent 33rd Diplomatic Conference, Minister of Science and Technology Vu Hai Quan affirmed that, in line with Party Resolutions No. 57 and No. 06, international integration and diplomacy—specifically science and technology diplomacy—have been positioned as a "strategic breakthrough". This pillar now stands independently and on equal footing with economic and political-security integration.

Notably, Vietnam has officially decided to establish and develop the Global Vietnamese AI Expert Network. This initiative aims to attract and mobilize Vietnamese AI experts worldwide while establishing international-standard mechanisms for leadership, training, and knowledge transfer to enhance the quality of Vietnam’s AI human resources.

In tandem with expanding international cooperation, Vietnam is also refining its research and testing infrastructure. On August 4, Deputy Prime Minister Ho Quoc Dung signed Prime Ministerial Decision No. 1483/QD-TTg, approving a project to "Develop a system of national research centers, testing facilities, and key national laboratories focused on strategic technologies."

Under the project, by 2030, Vietnam aims to upgrade, invest in, and operationalize at least eight national key laboratories. Priority will be given to sectors including: digital technology and next-generation mobile networks (6G); robotics and automation; advanced biology and biomedicine; advanced energy and materials; cybersecurity and quantum technology; marine, ocean, and underground sciences; and aerospace and aviation.

Furthermore, Vietnam strives to establish at least four national research and testing centers focused on unmanned aerial vehicles (UAVs), biotechnology, advanced materials, and high-speed and urban rail systems.

VnEconomy-Hạ Chi

Vietnam, Australia broaden ties in trade, investment, and supply chains

Wed, 12 Aug 2026 23:40:00 GMT

Minister of Industry and Trade of Vietnam Le Manh Hung and Australian Minister for Trade and Tourism Don Farrell emphasized accelerating market access for agricultural and food products that are currently subject to restrictions.

Minister of Industry and Trade Le Manh Hung on August 11 held a bilateral meeting with Australian Minister for Trade and Tourism Don Farrell in Canberra to discuss solutions for advancing economic and trade relations between the two nations, reported the Vietnam News Agency.

The meeting took place within the framework of the state visit to Australia by General Secretary and President To Lam of Vietnam.

During the session, the two ministers focused on measures to further expand trade and investment cooperation. Specifically, they emphasized accelerating market access for agricultural and food products that are currently subject to restrictions.

The ministers also discussed boosting Australian investment in Vietnam across key sectors, including deep processing, high technology, strategic minerals, renewable energy, and supporting industries. At the same time, they encouraged stronger linkages between businesses from both countries in textiles, footwear, food processing, and electronic components.

Furthermore, the two sides explored cooperation opportunities arising from Australia’s housing development program, creating favorable conditions for Vietnamese enterprises to supply construction materials and interior furnishings.

Notably, both ministers agreed to coordinate more closely within multilateral cooperation mechanisms and to effectively implement free trade agreements (FTAs) to bring practical benefits to their respective business communities.

According to statistics, in the first six months of 2026, bilateral trade turnover reached approximately $8.2 billion, a 22% increase over the same period last year. Vietnam's exports to Australia alone accounted for $3.8 billion, up 25.1%.

The two sides agreed to continue striving toward a bilateral trade target of $20 billion in the near future. This goal is based on maximizing the complementary nature of the two economies and fully utilizing existing frameworks, such as the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP).

TTXVN-

HCM City adds four housing projects eligible for foreign ownership

Wed, 12 Aug 2026 10:10:00 GMT

As of August 2026, the southern city has designated 148 commercial housing projects in which foreign individuals and organizations are eligible to own residential properties.

Ho Chi Minh City authorities have announced four additional housing projects where foreign individuals and organizations are permitted to own homes.

The newly approved projects include a high-rise apartment complex in Thao Dien Ward, Lot 3-11 in Functional Area No. 3 of the Thu Thiem New Urban Area, the Phuong Viet apartment project, and the Thu Thiem Observation Tower Complex.

As of August 2026, the city has designated 148 commercial housing projects in which foreign individuals and organizations are eligible to own residential properties.

Under the 2023 Housing Law, foreigners may own homes in housing development projects as stipulated by law, except for projects located in areas requiring national defense and security protection.

Foreign individuals and organizations may purchase, lease-purchase, receive as gifts or inherit residential properties in eligible projects. However, foreign ownership is capped at 30% of the total number of apartments in a condominium building.

-Hồng Vinh

A major skills gap in Vietnam's northern industrial parks

Wed, 12 Aug 2026 08:00:00 GMT

Industrial parks in Vietnam’s northern region are facing critical workforce shortfalls that require specific and comprehensive solutions and strategies.

Despite posting impressive production recovery and attracting billions of dollars in FDI each year, industrial parks (IPs) in northern Vietnam are facing a daunting challenge: a serious shortage of skilled technical and managerial personnel. The biggest challenge now is no longer attracting investment but rather improving the local workforce’s capabilities to meet global requirements.

According to analysis from Deloitte, the ongoing global supply chain shift continues to make northern Vietnam a strategic destination for major technology corporations. A series of large-scale FDI projects have chosen the country’s northern region as their headquarters, notably Foxconn with its $383 million project in Bac Ninh province, Samsung’s additional $1.5 billion investment in Thai Nguyen, and projects in Phu Tho belonging to BYD ($890 million) and Posco Future M ($282 million). This remarkable growth has driven and is driving significant demand in the labor market.

For example, according to the Singapore Chamber of Commerce Vietnam (SingCham Vietnam), Singaporean investors today are looking for talent that can support automation, advanced manufacturing, digital technologies, and increasingly complex supply chains. This requires stronger technical and vocational training, greater industry exposure during education, and closer alignment between what employers need and what graduates are learning.

At the same time, soft skills are becoming increasingly important. Problem-solving, communication, adaptability, and leadership capabilities will be critical as Vietnam attracts more sophisticated industries. Ultimately, investors are not just looking for workers; they are looking for talent that can drive productivity, innovation, and sustainable growth.

Worker shortages

According to Mr. Wesley Chua, Board Member of SingCham Vietnam, investors traditionally assessed locations based on land costs, labor costs, and tax incentives, but the conversation is now changing. More companies are asking whether they can build and sustain a workforce over the long term. Investors want confidence that they can recruit, retain, and scale their operations over the next five to ten years. In some cases, the availability of talent and manual workers influences site selection as much as traditional cost considerations. “As a result, workforce considerations are becoming a strategic factor in investment decisions,” he continued. “The focus needs to shift from simply increasing the size of the workforce to enhancing its capabilities.”

There are indeed significant obstacles in the labor market. Deloitte’s analysis shows that as of the beginning of 2026, businesses in the northern region needed more than 86,000 workers. Of this, the demand for unskilled workers accounts for 65 per cent, or some 56,000 people, while those with a technical secondary education account for 15 per cent, or around 13,000 people, and college / university graduates 20 per cent, or some 17,000 people. However, a serious mismatch is currently emerging between supply and demand.

The shortage is particularly acute in the high-skilled workforce segment. The semiconductor industry currently has only about 5,600 IC (integrated circuit) engineers, or just one-ninth of the target of 50,000 by 2030 and meeting only 20 per cent of actual annual demand.

At the “Workforce Insight Snapshot 2026” event held recently by SingCham Vietnam and industrial real estate company KTG Industrial managed by BKIM, Ms. Thoa Vo, Human Capital Lead at Deloitte Consulting SEA, said recruitment competition between factories within the same IP can be intense. “Unskilled workers are easy to recruit but difficult to retain, while engineers and middle managers are extremely scarce,” she explained. “Rising personnel costs are forcing businesses to shift their focus to optimizing productivity rather than relying on the advantage of cheap labor, as previously.”

Mr. Koh Eng Meng, Head of Investment Asset Management at Boustead KTG Industrial, said that some of their customers have struggled with recruitment. This is especially evident among small and medium-sized enterprises (SMEs) or even smaller companies with lower visibility. “Workforce readiness in northern Vietnam is not merely an HR problem; it is a structural challenge,” he continued. “The challenge is complex and multi-stratum. At the enterprise level, HR teams cannot single-handedly resolve regional transport bottlenecks, poor ventilation, or market obscurity.”

By working together, stakeholders can create a stronger talent pipeline, improve workforce readiness, and ensure that Vietnam remains competitive as it moves toward higher-value industries.

Mr. Wesley Chua, Board Member of SingCham Vietnam

Many Singaporean manufacturers also said that finding workers is only part of the challenge. Retention, workforce stability, and access to skilled talent are becoming increasingly important, particularly in established industrial clusters in Vietnam’s northern region. Companies are competing not only for technicians and engineers but also for experienced supervisors and middle management talent.

Strategic plans

Deloitte noted that the labor market in IPs will witness three core shifts this year. In terms of quality, businesses are strongly shifting toward recruiting skilled workers, given that 61 per cent of unemployment benefit applicants are unskilled. Regarding incomes and job-hopping, cost pressures are causing 60 per cent of workers to consider changing jobs within six months, and 58.7 per cent consider competitive salaries and benefits a top priority. In regard to environmental, social, and governance (ESG) practices and the work environment, young workers (Gen Z) prioritize a transparent work environment, comprehensive benefits (60.4 per cent), and competitive compensation (59.2 per cent).

Mr. Bao Do, Manager for the Engineering Manufacturing Sector, said that businesses need to quickly shift their competitive advantage from “cheap labor costs” to “workforce capabilities.”

To address the skills gap, he proposed a comprehensive workforce development strategy based on the 3B model: Build - Proactively plan and train internal succession for management positions based on professional competence and operational discipline; Buy - Optimize recruitment for technical, quality, and supply chain positions through realistic market-based compensation benchmarks; and Bind - Build career advancement paths, flexible compensation policies, and a humane work environment to retain key personnel. “Proactive cooperation between businesses and local vocational schools, combined with an automation orientation over the next three to five years, will be key to helping factories in IPs achieve sustainable breakthroughs,” he affirmed.

KTG Industrial adapts to workforce shifts through location intelligence and holistic access. When selecting and developing sites such as its key assets in Bac Ninh and Dong Nai province in the southern region, the company analyzes residential clusters and workforce demographics just as rigorously as logistics routes. Placing facilities closer to population centers drastically cuts commute times. If a worker faces a grueling two-hour commute to work, for example, they will eventually leave. By reducing transport friction, KTG Industrial helps its tenants expand or co-locate closer to their effective hiring radius and therefore improve retention.

An IP must also attract managers, engineers, and expatriates. Therefore, KTG Industrial positions its assets near vibrant residential and commercial hubs, ensuring that key decision-makers and technical leaders have access to high-quality living, leisure, and community infrastructure.

FDI companies are increasingly under pressure to react quickly to changing global trends, and they cannot afford long ramp-up periods while waiting for staff. By offering plug-and-play, high-specification ready-built factories embedded within a live workforce pool, it helps tenants de-risk their initial setup and allows them to go live smoothly.

“Developers sit at the exact intersection of local workforce pools, physical infrastructure, and multinational corporate networks,” Mr. Meng added. “It is our responsibility to leverage that position, combining location intelligence, shared recruitment infrastructure, and sustainable building baselines to build true operational resilience. For FDI companies unfamiliar with Vietnam’s investment environment, developers must actively demonstrate that, to support production lines effectively, infrastructure, location, and ecosystem must work in lockstep.”

Given the practical challenges, no single stakeholder can solve this challenge alone. Mr. Chua pointed out that business associations can help articulate the evolving needs of investors. Educational institutions can adapt curricula and training programs. Industrial park developers can help improve workforce accessibility and living conditions. And local authorities can play an important coordinating role in aligning workforce development with economic development priorities. “What investors are looking for today is not simply workforce availability but workforce sustainability,” he added. “By working together, stakeholders can create a stronger talent pipeline, improve workforce readiness, and ensure that Vietnam remains competitive as it moves toward higher-value industries.”

From SingCham’s perspective, the opportunity is clear: if Vietnam can continue to strengthen its talent ecosystem, it will remain one of the most compelling investment destinations in the region for many years to come.

-An Chi

Nghe An to invest $1.1 bln in urban renovation

Wed, 12 Aug 2026 07:10:00 GMT

The renovation plan identifies 11 focus areas, with transportation infrastructure at the forefront.

The People's Committee of central Nghe An province has issued an implementation plan for an urban renovation scheme covering several wards, including Truong Vinh, Thanh Vinh, Vinh Loc, Vinh Hung, Vinh Phu, and Cua Lo.

For the 2026–2030 period, the plan outlines 138 projects with a total estimated investment of over VND29.1 trillion ($1.15 billion).

According to the plan, projects will be phased based on implementation progress, resource availability, and investment procedures. The province has directed that priority be given to key and urgent works that offer high connectivity and a significant impact on the urban landscape.

Specifically, five key flood prevention tasks for former Vinh City are slated for completion by the third quarter of 2026. Several major road projects—including Hai Thuong Lan Ong Street, Nguyen Gia Thieu Street, and the comprehensive upgrade of the route from Vinh Airport to the Ho Chi Minh Square area—must be finished by December 31, 2026.

By 2027, the province expects to complete Phase 2 of the Le Mao Street extension, the renovation of 17 inner-city roads in Cua Lo Ward, and the extension of Tran Hung Dao Street.

Notably, the upgrade of the major arterial route consisting of Quang Trung, Le Loi, Mai Hac De, and Nguyen Trai streets, along with the 72m-long section from Nguyen Trai street to the former Vinh City bypass, are included in the medium-term public investment plan. These projects are required to be completed no later than 2028.

Meanwhile, the "(former) Vinh City Priority Infrastructure and Climate Change Adaptation Project," funded by the World Bank (WB), will proceed according to the loan agreement timeline, with a final completion deadline of 2030.

The renovation plan identifies 11 focus areas, with transportation infrastructure at the forefront. This includes upgrading roads, bridges, intersections, sidewalks, and traffic safety systems. Resources will be concentrated on main axes, urban gateways, routes connecting central Vinh with Cua Lo, and areas prone to frequent traffic congestion.

Furthermore, the Provincial People's Committee has requested a development plan for public, underground, and smart parking systems to be submitted by December 31, 2026. The province also aims to mobilize private investment to support these urban development goals.

VnEconomy-Nguyễn Thuấn

Dong Nai accelerates construction of $460 mln road network for Long Thanh airport

Wed, 12 Aug 2026 03:30:00 GMT

These three projects, with a total investment of nearly $460 million, will facilitate a transportation network linking the airport to industrial zones and seaports, while significantly boosting logistics development in the southern city.

Southern Dong Nai City is accelerating the construction and site clearance of the 770B, 769, and 773 road projects designed to finalize the connectivity network for Long Thanh International Airport.

These three projects, with a total investment of nearly VND12 trillion (approximately $460 million), will facilitate a transportation network linking the airport to industrial zones and seaports, while significantly boosting logistics development in the southern city.

Among them, Provincial Road 770B is a new route stretching over 42 km through nine communes and wards. In Phase 1, the road is being developed with six motor lanes and a width of 45.5 m.

Once completed, the route will link the city’s eastern and northeastern regions to the airport, industrial parks, the Bien Hoa–Vung Tau Expressway, National Highway 51, and the Cai Mep–Thi Vai seaport complex.

The project to upgrade and expand Road 773 spans approximately 39 km and will feature 6 to 8 lanes upon completion. Passing through six communes and wards, it serves as a key link between the southeastern areas of Dong Nai and the airport.

Meanwhile, the 30-km upgrade of Road 769 acts as an arterial route for transporting goods from northern provinces and the Central Highlands to the Long Thanh and Nhon Trach areas. It also connects directly to the northeastern gateway of Long Thanh Airport.

According to the Provincial Investment and Construction Project Management Board, as of late July 2026, more than 131 ha of land have been handed over for the Provincial Road 770B, reaching approximately 49% of the required area. Road 773 has received nearly 70 ha (over 31%), while Road 769 has seen over 56 ha handed over (over 41%).

In addition to these three routes, Dong Nai is implementing several other key traffic projects to support the airport, including: Component Project 1 of the Bien Hoa–Vung Tau Expressway; Component Project 3 of the Ho Chi Minh City Ring Road 3; and the upgrade and construction of roads 25B and 25C.

With Long Thanh International Airport scheduled to begin Phase 1 commercial operations by late 2026, Dong Nai authorities are demanding that investors and contractors accelerate construction progress. The city is also focusing on resolving land clearance bottlenecks to ensure that all connecting traffic infrastructure is completed in synchronization with the airport’s opening.

VnEconomy-Thanh Thủy

VinSpace partners with SpaceX to boost Vietnam’s space industry

Tue, 11 Aug 2026 23:30:00 GMT

According to VinSpace, testing self-developed satellite modules in orbit is a prerequisite for converting domestic RD capabilities into practical missions, creating a solid foundation for sustainable growth.

VinSpace Joint Stock Company on August 11 officially signed a satellite launch contract with SpaceX—the aerospace empire of billionaire Elon Musk.

Under the agreement, satellites researched, developed, and manufactured by VinSpace will be launched into orbit via SpaceX’s Transporter Rideshare program in the second quarter of 2027. This collaborative model is a strategic choice, allowing multiple customers to share a single launch to optimize both costs and timelines.

Notably, VinSpace’s involvement extends far beyond simply hiring a launch service. The company is responsible for the entire lifecycle of the project—from research, development, and manufacturing to satellite operations once in orbit. This reflects the enterprise’s firm commitment to mastering core technologies rather than acting as a mere service user.

Furthermore, the decision to partner with SpaceX is part of VinSpace’s long-term strategy to build comprehensive aerospace capabilities. VinSpace aims to become a "Full-Stack Aerospace Company," participating in the entire value chain: from design and RD to Assembly, Integration, and Testing (AIT), launch mission management, satellite operations, and the development of remote sensing products and ground-based space data services.

According to VinSpace, testing self-developed satellite modules in orbit is a prerequisite for converting domestic RD capabilities into practical missions, creating a solid foundation for sustainable growth.

Beyond technical achievements, this agreement holds profound significance for both VinSpace and Vietnam. In terms of technology, it enables VinSpace to verify its systems in real-world orbital conditions, cultivate a team of highly specialized engineers, and expand international cooperation.

Ultimately, this partnership with SpaceX is more than just a commercial transaction as it affirms the position of a dynamic and innovative developing nation in the new era of global technology.

VnEconomy-Phạm Vinh

Vietnamese, Australian leaders witness exchange of cooperation documents

Tue, 11 Aug 2026 09:10:00 GMT

The joint statements comprise one on deepening the Vietnam-Australia comprehensive strategic partnership, one on economic resilience cooperation, and another on the enhancement of science, technology and innovation connectivity.

General Secretary of the Communist Party of Vietnam Central Committee and President To Lam and Australian Prime Minister Anthony Albanese exchanged three joint statements and witnessed the signing of seven cooperation documents between the two countries in Canberra on August 11, according to a report by the Vietnam News Agency.

The joint statements comprise one on deepening the Vietnam-Australia comprehensive strategic partnership, one on economic resilience cooperation, and another on the enhancement of science, technology and innovation connectivity.

General Secretary of the Communist Party of Vietnam Central Committee and President To Lam (left) and Australian Prime Minister Anthony Albanese exchange a joint statement (Photo: VNA)

The cooperation documents include memorandums of understanding between Vietnam’s Ministry of Agriculture and Environment and Australia’s Department of Agriculture, Fisheries and Forestry on agriculture and sustainable rural development; between the Vietnam Coast Guard and Australian Border Force on maritime law enforcement; between the Border Guard High Command under the Vietnamese Ministry of National Defence and Australian Border Force on border protection cooperation and mutual support; between Vietnam’s Ministry of Education and Training and Australia’s Department of Employment and Workplace Relations on vocational education; between the two governments of on digital economy cooperation; and between Vietnam’s Ministry of Health and Australia’s Department of Health, Disability and Ageing on health cooperation.

The two sides also signed the Protocol to Amend and Supplement the Air Services Agreement.

The Vietnamese leader’s state visit to Australia from August 9-12 is aimed at further strengthening and elevating high-level political trust, providing fresh momentum for the effective implementation of the Comprehensive Strategic Partnership and setting cooperation priorities for the coming period. It also offers an opportunity for the two countries’ leaders to hold in-depth discussions on regional and international issues of common interest, enhance coordination through multilateral mechanisms, and reaffirm their shared commitment to peace, stability, cooperation and sustainable development in the region and beyond.

Top Vietnamese leader holds talks with Australian PM

Tue, 11 Aug 2026 09:00:00 GMT

At their talks in Canberra on August 11, the two leaders set a target of $20 billion in two-way trade and called for stronger supply chain links, quality investment, and closer cooperation in the green and digital economies, new energy, and future industries.

General Secretary of the Communist Party of Vietnam (CPV) Central Committee and President To Lam held talks with Australian Prime Minister Anthony Albanese in Canberra on August 11 morning (local time), affirming that Vietnam always attaches importance to Australia’s role and position, and the close and trusted Comprehensive Strategic Partnership between the two countries as well, the Vietnam News Agency reported.

PM Albanese welcomed General Secretary and President Lam and the high-ranking Vietnamese delegation on their state visit to Australia, stressing its significance amid the rapidly growing ties, particularly since the two countries elevated their ties to a Comprehensive Strategic Partnership in March 2024.

In a world growing more uncertain, it is vitally important that the two countries cooperate closely across all fields, he said.

On the occasion, he voiced admiration for Vietnam and its people, praising the country’s striking gains, particularly in socio-economic progress. He also lauded the keynote speech by General Secretary and President Lam at the 23rd Shangri-La Dialogue in Singapore in May, saying that it reflects Vietnam’s regional vision and makes clear that peace and stability are shared values for nations, including Australia and Vietnam.

The Vietnamese Party and State leader, for his part, conveyed PM Le Minh Hung’s greetings to PM Albanese and lauded Australia as a friend and trusted partner of Vietnam. He also expressed wish to keep lifting bilateral relations to a new level.

Both leaders said they are pleased with the vigorous momentum of Vietnam-Australia ties after more than half a century, defined by solid political trust and ever-deepening mutual understanding and sharing. They welcomed the swift, effective rollout of the 2024–2027 Action Plan that puts the Comprehensive Strategic Partnership into practice, with breakthroughs registered across all six pillars. Defence-security ties have expanded, and two-way trade has doubled over the past five years, surpassing $14 billion in 2025. Joint efforts in education - training, development assistance, science, technology, innovation, and people-to-people exchanges have continued to grow.

At the talks between General Secretary of the CPV Central Committee and President To Lam and Australian Prime Minister Anthony Albanese (Photo: VNA)

They reached broad consensus on major directions to widen Vietnam-Australia ties in the coming time, aiming to meet each country’s development needs while adapting to global and regional changes. The two sides agreed to reinforce the political foundation of the relationship by facilitating all-level exchanges, and further deepen defence-security ties, including in cybersecurity, combating transnational crime, and responding to non-traditional security challenges.

On economic, trade, and investment fronts, they stressed the need to harness the two economies’ complementary strengths, make full use of the free trade agreements both countries are part of, clear barriers, and smooth the way for trade. They set a target of $20 billion in two-way trade and called for stronger supply chain links, quality investment, and closer cooperation in the green and digital economies, new energy, and future industries.

General Secretary and President Lam and PM Albanese agreed to make science and technology, innovation and digital transformation a new driver of bilateral relations; expand cooperation in strategic areas such as artificial intelligence (AI), semiconductors, quantum technology, biotechnology, biomedicine, marine research, critical minerals and green hydrogen; and promote joint research projects and links between universities, research institutes and businesses, with a view to establishing a Vietnam-Australia technology connectivity ecosystem and developing a highly skilled workforce.

The two leaders also consented to promote green and sustainable transition and climate change adaptation, working towards the goal of achieving net-zero emissions.

They spoke highly of the solid results achieved in education, training and human resource development cooperation, and agreed to continue promoting links between universities, research institutes, educational establishments and vocational training institutions, with a view to developing programmes for knowledge and experience sharing and joint training of high-quality human resources between the two countries.

The top leader of Vietnam welcomed the effective operation of the Vietnam Australia Centre at the Ho Chi Minh National Academy of Politics and its contributions to the training of Vietnam’s mid- and senior-level officials.

PM Albanese expressed his sincere thanks to the Vietnamese Government for creating favourable conditions for Australian universities, including RMIT University, to operate sustainably and smoothly in the country.

The leaders also welcomed projects and programmes promoting people-to-people links and broad knowledge sharing between the two countries, including the Australia Vietnam Policy Institute (AVPI), the Hub for Vietnam Policy Studies at the Australian National University, and the Australia-Vietnam Strategic Technology Centre (AVSTC), among others.

They encouraged stronger cooperation and exchanges in culture, tourism and people-to-people relations. General Secretary and President Lam suggested that Australia continue to facilitate Vietnamese students’ study, work and acquisition of experience in Australia, and encourage the Vietnamese community in Australia to grow in strength and unity, promote the positive cultural values of both countries, and serve as an effective bridge of friendship between the two nations.

On regional and international issues, the two leaders agreed to strengthen coordination at multilateral forums, particularly the United Nations (UN), the Association of Southeast Asian Nations (ASEAN) and ASEAN-led mechanisms.

They called for promoting dialogue and trust-building, respecting international law and the UN Charter, ensuring maritime and aviation security, safety and freedom of navigation and overflight, and settling disputes by peaceful means on the basis of international law, including the 1982 UN Convention on the Law of the Sea (UNCLOS).

Vietnam affirmed its readiness to work with Australia to strengthen connectivity with Southeast Asia, uphold ASEAN centrality and contribute to a region of peace, stability, and sustainable and inclusive development.

Following their talks, the two leaders witnessed the signing and exchange of a number of cooperation documents in science and technology, innovation, the digital economy, education and training, and other fields. The two sides instructed ministries and sectors to urgently put the agreements into effect, translating high-level directions into concrete programmes, projects and results.

They also expressed their confidence that a foundation of political trust, increasingly aligned interests and new drivers of cooperation would usher Vietnam-Australia relations into a deeper phase of development, bringing practical benefits to the people and businesses of both countries, while making a positive contribution to peace, stability, cooperation and development in the Indo-Pacific and around the world.

Vietnam, Australia target $20 bln in two-way trade turnover

Tue, 11 Aug 2026 09:00:00 GMT

During his meeting with Governor-General of Australia Sam Mostyn in Canberra on August 11, General Secretary of the Communist Party of Vietnam and State President To Lam set a target to reach a bilateral trade turnover of $20 billion and to significantly increase two-way investment.

General Secretary of the Communist Party of Vietnam and State President To Lam met with Governor-General of Australia Sam Mostyn in Canberra on August 11 morning (local time), following a formal state welcome ceremony.

Governor-General Sam Mostyn affirmed that bilateral relations are flourishing on a solid foundation of political trust. She expressed confidence that this visit will generate new momentum to deepen the Vietnam-Australia Comprehensive Strategic Partnership.

General Secretary and State President To Lam affirmed that Australia is a trusted friend and partner with many convergent strategic interests with Vietnam. He expressed his desire to make bilateral relations increasingly profound, substantive, and effective.

Sharing the achievements after more than 40 years of Doi Moi (Renewal), the Vietnamese top leader stated that Vietnam is establishing a new development model based on productivity, knowledge, science and technology, innovation, digital transformation, high-quality human resources, and modern governance. This model is coupled with green growth, sustainable development, and deep international integration, aiming for the goal of becoming a developed, high-income country by 2045.

In the context of profound global changes, he said, both countries need to further strengthen cooperation and better leverage their complementary strengths.

The Australian Governor-General expressed her deep impression of Vietnam’s development achievements, particularly in economic transformation, science and technology, and international integration. She noted that both countries share many similarities in their development visions, both identifying science-technology, innovation, education, and high-quality human resources as key drivers for growth. She affirmed that Australia wishes to remain a trusted partner, accompanying Vietnam in achieving its development goals.

Regarding the direction of future cooperation, the Vietnamese leader proposed that both sides continue to consolidate political trust, expand defense and security cooperation, and promote trade and investment. He set a target to reach a bilateral trade turnover of $20 billion and to significantly increase two-way investment.

Vietnam aims to attract more high-quality capital flows from Australian enterprises and investment funds through Australia’s Southeast Asia Economic Strategy to 2040. Simultaneously, the Vietnamese leader requested that Australia create favorable conditions for Vietnamese businesses to expand their operations in the Australian market.

In terms of development cooperation, education, and knowledge sharing, the Vietnamese leader suggested that Australia support Vietnam in enhancing public governance capacity, administrative reform, and public sector digital transformation. He also called for the expansion of scholarships, university and research institute partnerships, and vocational training cooperation for emerging industries.

Ms. Mostyn highly valued the contributions of the Vietnamese community in Australia, as well as the roles of Vietnamese students, intellectuals, experts, and entrepreneurs in fostering bilateral connections. She affirmed that Australia wishes to continue creating a favorable environment for the Vietnamese community to leverage their strengths and preserve their cultural identity.

Regarding regional and international issues of mutual concern, the two leaders emphasized the importance of dialogue, cooperation, and respect for international law, aiming together toward a peaceful, stable, inclusive, and sustainable Indo-Pacific region.

VnEconomy-Hà Lê

Ha Tinh approves detailed plan for Vung Ang LNG storage facility

Tue, 11 Aug 2026 08:10:00 GMT

The central province's North Central LNG Storage Facility is designed to become a major LNG transshipment hub in central Vietnam, featuring integrated storage facilities and technical infrastructure for receiving, storing and supplying LNG to gas-fired power plants in the region.

Authorities of central Ha Tinh province has approved the detailed planning for the North Central LNG Storage Facility, also known as the Vung Ang LNG Storage Facility, paving the way for further investment preparation and development of the major energy infrastructure project.

The planned area covers 52.81 hectares in Hoang Son Ward, including about 47.26 hectares for the project itself and 5.55 hectares for shared external transport infrastructure serving the Vung Ang III Thermal Power Centre.

The approval of the detailed plan provides a basis for the investor to proceed with investment preparation, formulate the feasibility study and carry out subsequent procedures.

The North Central LNG Storage Facility is designed to become a major LNG transshipment hub in central Vietnam, featuring integrated storage facilities and technical infrastructure for receiving, storing and supplying LNG to gas-fired power plants in the region.

The facility is also expected to supply gas to industrial production facilities and other gas consumers, strengthening the regional energy infrastructure network linking LNG ports, storage facilities, power centers, industries and logistics services.

-Nguyen Thuan

28 transit-oriented urban areas proposed along HCMC-Can Tho Railway

Tue, 11 Aug 2026 08:00:00 GMT

The proposed railway spans over 175 km, traversing Ho Chi Minh City and Tay Ninh, Dong Thap and Vinh Long provinces and Can Tho City.

To optimize land utilization and enhance investment efficiency, some 28 compact urban areas have been proposed for development under the Transit-Oriented Development (TOD) around stations along the projected Ho Chi Minh City – Can Tho railway.

This information was released by the My Thuan Project Management Board (PMB) in its preliminary research report on potential areas for TOD development—a model that integrates urban housing and commercial spaces with public transport hubs—along the planned rail corridor.

The proposed railway spans over 175 km, traversing Ho Chi Minh City and Tay Ninh, Dong Thap and Vinh Long provinces and Can Tho City in the Mekong Delta. The line is set to begin at An Binh Station (Di An, Binh Duong/HCMC border) and terminate at Can Tho Station (Can Tho City).

According to the My Thuan PMB, local authorities in the affected provinces have reached a consensus on researching TOD integration. However, several aspects require further clarification, including the specific scope of research, implementation mechanisms, infrastructure connectivity, and land exploitation strategies.

The pre-feasibility study for the HCMC – Can Tho railway is currently being finalized for submission to competent authorities for investment policy approval. In Phase 1, the project requires a total investment of over VND171 trillion (over $6.5 billion).

The plan involves constructing a 1,435 mm standard gauge line to serve both passenger and freight transport. The maximum design speed is set at 160 km/h for passenger trains and 120 km/h for freight trains.

Regarding the timeline, the National Assembly is expected to review the project's investment policy in August 2026. General technical designs and project approval are slated for completion by the first quarter of 2028, with construction beginning in the third quarter of 2028 and primary completion targeted for 2035.

To implement the project, approximately 801.5 ha of land will be reclaimed.

The My Thuan PMB has recommended utilizing public investment for the project. According to the project consultants, international experience indicates that the Public-Private Partnership (PPP) model for this type of infrastructure may not yield higher efficiency compared to direct public funding.

VnEconomy-Thiên Di

Vietnam raises $709mln through Government bond auctions in July

Tue, 11 Aug 2026 07:25:00 GMT

The figure bringing the total amount of fundraising through Government bond issuance in the first seven months of 2026 to VND201.2 trillion ($7.65 billion), fulfilling 40% of the 2026 plan.

The Hanoi Stock Exchange (HNX) held 25 Government bond auctions on behalf of the State Treasury in July 2026, raising VND18.6 trillion ($709 million), with a successful bidding rate of 27%.

In the first seven months of the year, the State Treasury raised VND201.2 trillion ($7.65 billion), fulfilling 40% of its 2026 issuance plan.

Ten-year and five-year bonds accounted for the bulk of the amount raised in July, representing 51% and 46% of total issuance, respectively, equivalent to VND9.41 trillion and VND8.55 trillion.

The State Treasury offered bonds with maturities of three, five, 10, 15 and 30 years in July, with all five maturities successfully auctioned. Winning yields edged up by 3, 2, 1, 10 and 1 basis points, respectively, compared with the final successful auctions in May.

At the final auction in July, winning yields stood at 3.55% per year for three-year bonds, 4.20% for five-year bonds, 4.36% for 10-year bonds, 4.50% for 15-year bonds and 4.59% for 30-year bonds.

-Hà Anh

Towards true environmental, social, and governance practices in banking sector

Tue, 11 Aug 2026 03:30:00 GMT

The ESG practices of banks and, more importantly, how the practices of their borrowers are assessed, are crucial elements of Vietnam’s journey toward sustainability.

Until recently, environmental, social, and governance (ESG) commitments were largely viewed as voluntary corporate initiatives, often confined to sustainability reports and investor relations. Today, ESG is becoming an integral part of financial regulation, risk management, and capital allocation.

That transformation is unfolding rapidly across Vietnam’s banking sector. The “Vietnamese Banking Sector’s 2020-2025 Journey Towards Sustainability” report, released by Fair Finance Vietnam, evaluates the public ESG commitments of 14 major commercial banks against international sustainability standards, offering one of the most comprehensive snapshots of how the sector has evolved over the past five years.

Changing landscape

Much of the conversation around ESG over the past decade has focused on disclosure. Companies were encouraged to publish sustainability reports, announce Net Zero ambitions, and adopt international reporting standards. Increasingly, however, those expectations are becoming regulatory obligations rather than voluntary initiatives.

Globally, the post-pandemic period accelerated this transition. New reporting requirements such as the EU’s Corporate Sustainability Reporting Directive, climate disclosure standards, and growing scrutiny over supply chains have transformed ESG into a core element of financial decision-making rather than a communications exercise. International banking regulators have also expanded guidance on climate-related financial risks, signaling that environmental and transition risks should be treated alongside traditional credit risks.

Vietnam’s policy landscape has evolved at remarkable speed. Since 2020, the country has introduced a series of regulations covering environmental risk management, greenhouse gas accounting, green classification standards, and preparations for a domestic carbon market. In 2025, ESG was referenced for the first time in Politburo Resolution No. 68 on private sector development, elevating the concept from a market-driven practice to a national policy priority.

Those developments fundamentally change what is expected of banks. ESG is increasingly becoming part of prudential risk management, credit evaluation, and long-term business strategy. That shift is particularly important in Vietnam, where bank lending remains the dominant source of corporate financing. As exporters face stricter carbon requirements through mechanisms such as the EU’s Carbon Border Adjustment Mechanism (CBAM) and supply chain regulations like the EU Deforestation Regulation, banks inevitably become gatekeepers to the country’s broader economic transition.

Tangible progress

Vietnam’s commercial banks have undoubtedly made progress since ESG commitments were first assessed in 2020. Overall policy scores have nearly doubled over the five-year period, while the gap between top-performing and lower-performing banks has narrowed, suggesting sustainability is becoming embedded across the industry rather than driven by a handful of early adopters. Green credit has also continued to expand, growing at an average annual rate of 14.6 per cent between 2020 and 2025, though it still accounts for just 4.5 per cent of total outstanding credit.

The progress is becoming increasingly visible in the products banks offer and the systems they are putting in place, rather than simply in their public commitments. Sustainable funding, for instance, is gradually becoming part of mainstream banking. By the end of 2025, Vietcombank, Agribank, BIDV, Techcombank, HDBank, and SeABank had all completed inaugural green bond issuances or established green finance frameworks aligned with international standards set by the International Capital Market Association and the Loan Market Association.

These initiatives provide banks with new sources of capital specifically earmarked for financing environmentally-sustainable projects, marking an important step toward building Vietnam’s green finance ecosystem.

Several lenders have also moved beyond traditional green lending to develop dedicated sustainable finance frameworks. ACB, for example, has committed to using proceeds from sustainable bonds exclusively for eligible green projects, including renewable energy infrastructure and related technologies. The bank has also expanded its preferential lending program for sustainable businesses, doubling the size of its dedicated credit package from VND2 trillion ($76.9 million) to VND4 trillion ($153.8 million) within little more than a year.

The shift extends beyond environmental finance. Eleven of the 14 banks assessed now prepare sustainability reports using Global Reporting Initiative standards, or almost three times as many as in 2022, reflecting growing convergence with international reporting practices. Yet only ACB has gone a step further by obtaining independent third-party assurance of its sustainability report, highlighting how external verification remains the exception rather than the norm.

The report also points to a broader maturation of ESG practices across the sector. Climate commitments, once confined to only a handful of institutions, have become widespread, with 13 of the 14 banks now disclosing climate-related policies. The number of banks adopting restrictions on coal financing has doubled, while several lenders have introduced environmental and social risk assessments for large-scale projects.

MSB, VPBank, Agribank, Eximbank, and VietinBank stand out for their commitments to financial inclusion, while SeABank, HDBank, MSB, VietinBank, and Agribank disclose the most comprehensive customer protection policies, including cybersecurity awareness, complaint-handling mechanisms, and data privacy commitments.

Where policy meets practice

Despite publishing more ESG-related information than ever before, Vietnamese banks are beginning to see diminishing returns from disclosure alone. The report found that average ESG policy scores changed little from the previous assessment, suggesting the industry’s early momentum is starting to level off.

That does not mean banks are making less progress. Rather, it reflects a shift in what progress now requires. The first phase of ESG adoption was largely about establishing policies, governance structures, and reporting frameworks. The next phase will depend on whether those commitments influence how banks lend, assess risk, and allocate capital. That distinction matters because banks exert their greatest environmental and social influence not through their own operations but through the businesses they choose to finance.

The assessment found that while all 14 banks now disclose environmental and social risk frameworks for lending, far fewer explain how those frameworks are applied in practice. Only five banks publish sector-specific exclusion lists, while most provide little information on how they verify borrowers’ compliance with environmental and social requirements after loans are approved.

The implementation gap extends well beyond climate policy. Banks have made meaningful progress in strengthening their own employment practices, human rights commitments, and procurement policies. BIDV, VPBank, and SeABank have introduced labor and environmental requirements for suppliers, signaling that ESG is extending beyond banks’ internal operations.

Yet those expectations are not consistently reflected in lending relationships. The report notes that banks rarely require borrowers to demonstrate commitments on issues such as gender equality, human rights, or broader environmental performance. Several banks disclose financing for women-owned businesses, for instance, but few translate those efforts into measurable lending targets. Likewise, while anti-discrimination policies are common within banks, systematic commitments to prevent gender discrimination among customers or financed businesses remain limited.

Climate finance presents a similar picture. Nearly every bank assessed now recognizes climate change as a strategic issue, and the number of institutions restricting coal financing has doubled since the previous assessment. Several lenders have also introduced environmental and social risk assessments for large-scale projects and expanded financing for renewable energy.

However, comprehensive lending policies for high-carbon sectors remain the exception rather than the rule. As global markets tighten climate disclosure requirements and carbon regulations reshape international trade, these gaps are likely to face growing scrutiny.

In many respects, Vietnam’s banking sector has completed the first phase of ESG adoption: building policies, governance structures, and disclosure practices. The next phase will be far more demanding. Rather than asking whether banks have ESG policies, the key question is whether those policies influence credit decisions, investment portfolios, and risk management.

-Diep Linh

Workshop discusses location data strategy and international lessons for Vietnam

Tue, 11 Aug 2026 02:00:00 GMT

The Politburo’s recent approval of the project to develop the national database, along with the orientation toward developing a data economy, further proves the critical importance of this field

To boost economic development, Vietnam needs to build a systematic and synchronized data chain across key sectors such as logistics, energy, urban planning, and industry, contributing to a modern, safe, and sustainable national data ecosystem, said Major General Nguyen Ngoc Cuong, Director of the National Data Center and Vice President of the National Data Association (NDA).

Speaking at a workshop theming “Location Data – International Experiences and Lessons for Vietnam,” organized by NDA collaboration with the Vietnam Global Data Expert Network (VDEN) on August 10, Major General Cuong, affirmed that data has become a vital strategic resource for every nation.

The Politburo’s recent approval of a project to develop the national database, along with the orientation toward developing a data economy, further proves the critical importance of this field. Among various types, location data serves as the core and most essential layer, he said.

“The core goal is for data to truly contribute to economic development and increase scientific content through in-depth handling of specific issues. Currently, the Party and State have cleared maximum institutional hurdles; the remaining issue lies entirely in execution,” Mr. Cuong said.

Elaborating on the implementation strategy, Lieutenant Colonel Dao Duc Trieu, General Secretary of the NDA, noted that building data infrastructure is like a revolution moving from “nothing” to “something.” The Resolution of the 14th National Party Congress identified the data economy as the focus of the new growth model. The State is aiming to turn data into a new factor of production, standing alongside land, capital, labor, and science and technology.

To catch up with advanced countries, Vietnam is simultaneously executing five stages: data creation, infrastructure building, data governance based on trust (ensuring data is accurate, sufficient, clean, live, and unified for shared use), application exploitation, and promoting socio-economic value. The exploitation of resources will focus on the four most important types of data: people, items, locations, and behaviors.

Regarding location data, sharing experiences from Switzerland, Dr. Luu Vinh Toan—Technical Analysis Director at UBS Group and President of the Association of Vietnamese Intellectuals and Expertsn in Switzerland—affirmed that preparing a foundational database is a mandatory step before expecting complex AI applications.

“Switzerland prepared its address data long ago, establishing standardized formats to link entities such as buildings, streets, administrative landmarks, and postal codes without needing AI. Once the infrastructure is solid, AI steps in to create added value,” said Dr. Toan.

Therefore, for Vietnam at this stage, the core principle in input standardization is “do it once and at a single window.” The management of data components such as buildings, entrances, and postal codes must be clearly assigned to specific agencies.

“Inaccurate location data can cause enormous costs, affecting hundreds of delivery companies or telecommunications firms that may fail to suggest appropriate internet packages to residents. Therefore, to ensure effectiveness, reports of data errors should be sent directly to the State’s management system for synchronization across the economy, rather than just being reflected on foreign platforms, which lack legal responsibility for national infrastructure,” Dr. Toan said.

VnEconomy-Khánh Vy

Climbing the value chain

Tue, 11 Aug 2026 01:00:00 GMT

Mr. Suan Teck Kin, Head of Research, Global Economics Market Research, at the United Overseas Bank (UOB), tells Linh Tong what Vietnam must do to succeed in its next phase of growth and in FDI 2.0.

Mr. Suan Teck Kin, Head of Research, Global Economics Market Research, at the United Overseas Bank (UOB)

Vietnam is increasingly being recognized as one of Asia’s fastest-growing economies and is aiming to attract higher-value investment. What are the biggest gaps between its policy ambition and implementation?

There is a gap, but I think we have to give it a bit of time, because Vietnam is still catching up. The country only really opened up in 1989, with reforms beginning around 1993 and 1996. That’s only about 30 years ago, so there are still many gaps that need to be filled, and that is to be expected.

The ambition is to move quickly, but implementation cannot be rushed. You have to manage the pace because if you accelerate too fast, there can be negative consequences. For example, if the government pushes investment too aggressively, it needs more capital, which can divert funding away from other sectors and put upward pressure on interest rates. It can also create inflationary pressures because more imports and stronger domestic demand can push up prices.

So while demand is already here and expectations are high, the key is to pace the process. Whenever you can accelerate, you should accelerate, but it has to be done carefully.

At the same time, Vietnam needs to make sure it remains competitive in attracting investment. There is competition not only from other countries but also from other regions where labor costs may be even lower. That means Vietnam cannot rely on low costs alone.

How should Vietnam strengthen its competitiveness and unlock the next phase of growth?

The first priority is to maintain a business-friendly environment. Policies need to be clear, consistent, transparent, and easy to understand so that both foreign and local businesses can operate in a safe and predictable environment. If foreign investors are uncertain about tax rules or regulations, they may simply choose another market where the system is easier to navigate.

The second priority is the workforce. As the economy develops, wages will naturally rise. Singapore experienced the same thing. The important point is that productivity must rise as well. That requires continuous skills upgrading, workforce training, and an education system that is aligned with what businesses actually need. Otherwise, companies won’t be able to find the talent they’re looking for.

Vietnam also still needs foreign capital because its domestic capital base is not yet as deep as that of more developed economies. Countries like Malaysia have stronger local corporate champions, while Vietnam is still developing more of them. Over time, that will change.

Finally, infrastructure remains critical. Vietnam needs to continue investing in transport, logistics, power, and other infrastructure, but again, it cannot be rushed. If investment is accelerated too aggressively, you run into the same issues of competing for capital and creating inflationary pressures. Infrastructure development needs to continue, but at a sustainable pace.

Those are the key areas that I think will help Vietnam remain a competitive and attractive investment destination while supporting its next phase of growth.

If the last decade was about attracting investment, what should define Vietnam’s next phase of economic growth? Which sectors do you believe will drive the country’s growth over the next five to ten years?

This is really what people are referring to when they talk about FDI 2.0, and I think that’s the right way to look at Vietnam’s next stage of development.

The first phase, from 1989 until now, relied on the traditional growth model. There’s nothing wrong with that. Vietnam had labor, land, and competitive costs, so it focused on labor-intensive manufacturing and lower-skilled assembly work. Singapore went through exactly the same stage. When it became independent in 1965, we called it the “screwdriver industry” because we were essentially assembling imported parts.

With FDI 2.0, Vietnam needs to move up the value chain. In the first phase, the value proposition was low-cost labor. While there was some value-added, that model is very vulnerable to competition because companies can always find another location that is cheaper. Competitiveness is always evolving.

To avoid that, Vietnam needs to increase the amount of value it creates. Instead of simply assembling components, the country should attract companies to manufacture more sophisticated parts locally and carry out more RD. Rather than having RD done elsewhere and production taking place in Vietnam, more innovation should happen within Vietnam itself.

Of course, this can’t happen across every industry. The focus should be on sectors where Vietnam has the potential to be competitive. There are areas where Vietnam may not have a natural advantage, such as advanced medical research, but electronics is a different story. That’s why I think the Vietnamese Government has made a smart decision by focusing on semiconductors. Party General Secretary and State President To Lam has shown good foresight in recognizing the importance of moving up the value chain.

The goal is not to remain vulnerable to low-end competition. Vietnam needs to move toward higher-value activities, not necessarily the very highest end immediately, because the capabilities and engineering talent are still developing, but progressively higher over time.

Electronics is one obvious example. Vietnam already has experience in lower-end manufacturing, so the next step is to build on that foundation. The same applies to semiconductors, electrical equipment, and electronics more broadly.

But this isn’t limited to high-tech industries. Even traditional sectors such as garments can move up the value chain. China is a good example. It began with simple manufacturing and assembly, but later shifted toward higher-value activities such as design and product development. Instead of simply producing clothing, companies started offering customers complete design solutions. If a customer wasn’t sure what styles to launch for the next season, the manufacturer could provide the designs as well. That’s a different business model requiring different skills. It’s what we call ODM, or Original Design Manufacturing. The same opportunity exists in footwear, furniture, and other traditional industries. Eventually, Vietnam should be able to provide both the design and the manufacturing.

One final point is that trust is extremely important. Some manufacturers have damaged their reputation by producing unauthorized extra quantities of branded products and selling them outside official channels.

Once that trust is lost, companies won’t secure any future contracts. In many industries, especially fashion, designs are valuable intellectual property intended for a specific season. Protecting that intellectual property is essential. Vietnam needs to ensure these kinds of practices do not happen because they can damage not only individual companies but also the country’s reputation as a trusted manufacturing destination.

What will distinguish this next wave of FDI from the previous one, and is Vietnam well positioned to capture it?

The requirements will be much higher. As you move up the value chain, the demands become much more stringent.

Take semiconductors as an example. Today, even activities such as testing and packaging may not require the highest standards. But if you’re talking about attracting a company like Taiwan (China)’s TSMC to build an advanced fabrication facility, that’s a completely different level.

You need a very stable power supply. There cannot be power failures, brownouts, or blackouts. You also need sufficient supplies of clean, high-purity water because it’s essential for cooling systems and cleaning highly sophisticated equipment. In addition, you need a controlled environment with purified air.

That’s one of the biggest differences between FDI 1.0 and FDI 2.0. With the earlier model, you could set up a conventional factory relatively easily. But if you want to attract more sophisticated manufacturing, the supporting environment has to be at a much higher standard. The physical infrastructure requirements are significantly greater.

The legal environment also becomes more important. Intellectual property protection is essential. Companies need confidence that their technology and innovations will be protected.

The workforce requirements are also different. Operating advanced machinery requires a much higher level of technical expertise, along with stronger safety standards and specialized skills. In the FDI 1.0 era, many factory jobs only required a high school education. For FDI 2.0, you need more university graduates, engineers, and highly-skilled technicians. The country must have enough qualified talent to support these industries.

Another important point is creating an environment that attracts not only foreign companies but also overseas Vietnamese professionals who want to return and start businesses or work for local companies.

That means having a business environment where the rules are clear. Tax regulations should be transparent, with as little ambiguity as possible. Business laws should also be clear and predictable. All of these factors are important if Vietnam wants to attract the next generation of higher-value investment.

Looking ahead, what gives you the greatest confidence about Vietnam’s prospects? And if there were one reform or one priority that could significantly strengthen Vietnam’s competitiveness, what would it be?

I’m very confident about Vietnam’s future because the country has demonstrated its resilience. It has gone through Covid-19, the conflicts in the Middle East, US tariffs, and many other global shocks, yet it has come through them stronger.

Last year, Vietnam achieved more than 8 per cent growth. This year, it is also targeting growth of more than 8 per cent. There are even discussions about reaching double-digit growth. I would be a little more cautious about that. That’s why my own forecast doesn’t assume 10 per cent growth. I think it’s very difficult to achieve. It’s possible, but you may have to sacrifice too many other things to get there. I don’t think that’s worth it.

I would rather see Vietnam maintain a sustainable pace while continuing to achieve strong growth. That’s why I’m optimistic. The country has already proven its resilience.

As for choosing one priority, I wouldn’t necessarily call it a reform, but I do think infrastructure remains one of the most important areas where Vietnam should do more, and do it more comprehensively.

Infrastructure isn’t just about physical assets such as roads, airports, seaports, railways, metro systems, power, and water. Digital infrastructure is also important, as are healthcare and education. The government needs to continue investing in all of these areas.

Education, in particular, requires sustained investment. Resources need to be allocated to ensure Vietnam trains enough engineers and continues upgrading the skills of those already in the workforce. That requires funding, qualified teachers, and sufficient training capacity.

Sometimes that means spending less on other priorities today in order to create a stronger economy tomorrow. China followed that approach by investing heavily in education and human capital. It trained an enormous number of engineers, creating the talent base needed to support the country’s industrial and technological development.

I think Vietnam should continue moving in that direction because investing in infrastructure, both physical and human, is one of the best ways to strengthen the country’s long-term competitiveness.

-Linh Tong

Central bank calls for preferential loans for SMEs to support growth

Tue, 11 Aug 2026 00:30:00 GMT

Lending rates at least 1 percentage point lower than commercial banks’ average lending rates for loans of the same maturity.

The State Bank of Vietnam (SBV) has asked commercial banks to develop and publish credit programs targeting key economic growth drivers and small and medium-sized enterprises (SMEs) in August, with Vietnamese dong (VND) lending rates at least 1 percentage point lower than the banks’ average lending rates for loans of the same maturity.

Eligible borrowers include SMEs, as well as businesses and individuals engaged in production and business activities in priority sectors and key growth drivers, including agriculture and rural development, supporting industries, high-tech businesses, exports, the digital economy, artificial intelligence, semiconductors, processing and manufacturing, and projects listed under the country’s green classification framework.

Banks are also required to waive or reduce applicable service fees for customers, in accordance with regulations and their operational scale and financial capacity.

As of July 31, total outstanding loans in the economy reached nearly VND20.3 quadrillion ($771 billion), up 8.98% from the end of 2025, according to the SBV.

Outstanding loans to businesses stood at nearly VND11 quadrillion, accounting for 53.3% of the total credit. Of this, private enterprises accounted for more than VND9.1 quadrillion, SMEs over VND3.9 quadrillion, State-owned enterprises about VND606 trillion and foreign-invested enterprises around VND836 trillion.

-My Van

Vietnam, Australia boost investment in high-tech and high-value sectors

Mon, 10 Aug 2026 23:00:00 GMT

Vietnam's General Secretary and President To Lam proposed that bilateral cooperation shift toward long-term programs in innovation, science and technology, human resource development, green finance, high-quality infrastructure, strategic supply chains, education, and research.

General Secretary of the Communist Party of Vietnam Central Committee and State President To Lam received Australia’s Special Envoy for Southeast Asia, Mr. Nicholas Moore, in Sydney on August 10, as part of his ongoing state visit to Australia..

During the meeting, Mr. Moore discussed opportunities to enhance cooperation with Vietnam in implementing Australia’s Southeast Asia Economic Strategy to 2040. This includes expanding two-way trade and investment, as well as strengthening connections between businesses and investors in Vietnam’s priority sectors.

Highlighting the positive results of bilateral trade, Mr. Moore emphasized the need to aim for even greater scale and trade value. He noted that recently signed cooperation agreements in aviation and other sectors will enhance connectivity and provide further momentum for trade and investment.

According to the Special Envoy, many investors are drawn to Vietnam by its dynamic market, clear development goals, and strong aspirations for growth. Furthermore, the Vietnamese community and student population in Australia serve as a vital resource for promoting innovation and startups.

General Secretary and President To Lam expressed his desire for Vietnam to remain a central partner for Australia in the implementation of the Southeast Asia Economic Strategy to 2040.

Affirming that Vietnam considers Australia one of its top priority partners in the Indo-Pacific region, the Vietnamese leader stated that bilateral relations are entering a period of new opportunities. He emphasized that the Comprehensive Strategic Partnership must be advanced substantively and effectively, with a focus not only on expanding trade and investment but also on co-creating new growth drivers.

He noted that Vietnam aims to become a high-income nation by 2045, with development driven by science and technology, innovation, digital transformation, green transition, and private sector growth.

With a stable investment environment, a young workforce, a strategic position in global supply chains, and a growing market, Vietnam is well-positioned to be a priority destination for Australian firms. The country prioritizes projects featuring advanced technology, modern management, and high value-added, which facilitate technology transfer, human resource training, and stronger integration with domestic enterprises.

He proposed that bilateral cooperation shift toward long-term programs in innovation, science and technology, human resource development, green finance, high-quality infrastructure, strategic supply chains, education, and research.

VnEconomy-Hà Lê

Creating certainty for the VIFC

Mon, 10 Aug 2026 10:20:00 GMT

Mr. Rich McClellan, CEO of the Vietnam International Financial Center in Ho Chi Minh City (VIFC-HCMC), tells Linh Tong about the long-term vision for the VIFC and the steps needed to build a trusted gateway for international capital.

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

Vietnam has long been recognized as a manufacturing and investment hub. How do you see the Vietnam International Financial Center (VIFC) contributing to the country’s next stage of economic development?

Vietnam has built one of the world’s great manufacturing and trade stories. But much of the financial value of that growth - the capital raising, the fund management, the structuring - happens offshore, in other financial centers.

The VIFC is about Vietnam capturing more of that value at home. As the country moves up the value chain, it needs deeper capital markets, more sophisticated financial services, and a channel for the long-term investment that infrastructure and the energy transition require.

A financial center built to international standards gives Vietnam the tools to finance its own growth - on Vietnamese soil, with the benefits staying in the country. That’s the contribution we’re aiming for: not a separate enclave for money to pass through, but an engine for the broader economy.

As other ASEAN economies also attract global capital, what role do you envision the VIFC playing within the regional financial ecosystem?

We’re not trying to build another Singapore or Hong Kong (China) - those centers exist, and Vietnam doesn’t need to copy them. What Vietnam needs is its own gateway: a place where international capital can reach one of Asia’s fastest-growing economies through rules that global investors understand.

In the near term, our role is to connect the pool of international capital looking for exposure to Vietnam with the projects and companies that need it - infrastructure, the energy transition, and capital markets.

Over time, as the ecosystem deepens, we expect the VIFC to become a regional node in its own right. But we’re building in sequence, on the foundations the government has set: the core policy and legal frameworks are in place, and through the current 2026-2030 phase of the national development plan, we’re institutionalizing how the Center operates and piloting the first priority products, so early market participants can begin as those institutions come online.

Many international financial centers have developed distinct competitive advantages over time. What do you believe should become the defining strengths of the VIFC?

A financial center’s advantages are earned over time, not declared on Day 1, so let me answer in terms of what we’re building toward.

First, access: the VIFC’s core draw is proximity to one of the fastest-growing economies in Asia - investors come to a financial center for what it connects them to, and Vietnam’s compelling growth story is the connection. Second, trust: high-standard regulation, effective dispute resolution, and robust investor protection, embedded in the VIFC’s tailored legal framework and in line with international practice. Third, the advantage of building fresh - we can design our framework around what global investors need today, rather than retrofitting a decades-old system. And fourth, people: a young, capable, competitively-priced workforce.

None of these is automatic; each depends on execution over the coming years. But that combination - a high-growth economy, credible rules, a modern design, and strong talent - is what we intend to make the VIFC known for.

What types of international capital and financial institutions is the VIFC seeking to attract in its early stages of development?

Our priorities follow the national development plan for the Center. In this phase, we’re focused on attracting large international financial institutions, investment funds, and international banks, alongside the professional market participants and high-quality financial talent that a functioning center depends on.

On the product side, Ho Chi Minh City’s role is built around three areas: capital markets, including the bond market and core financial services such as capital raising, investment, payments, issuance, and trading; asset and fund management; and commodity markets and commodity derivatives linked to trade and logistics.

We’re being deliberate about sequencing rather than chasing volume - the first institutions to license here matter most for the confidence they establish, not the capital they bring on Day 1.

Beyond world-class infrastructure, what policy, regulatory, and institutional reforms will be most important in building investor confidence in the VIFC?

Infrastructure is the easy part; you can watch a building go up. The harder and more important work is institutional. Two things matter most on the reform side.

First, a regulator that international investors trust: a supervisory authority that applies its rules consistently and predictably. Second, dispute resolution investors have confidence in, which is why the VIFC’s framework includes an international arbitration center and a specialized court, so that international awards can be recognized and enforced. Those give investors the certainty they need: to know the rules and trust that they’ll hold.

My own role sits on the other side of that equation - the demand side. What I spend my time on is engaging international institutions, funds, and banks, understanding what they need to commit to a market like Vietnam, and bringing quality anchor participants to the table early. That engagement does two things: it builds the pipeline, and it feeds real investor requirements back into how the Center is designed. Confidence is built from both directions - credible institutions on one side, and serious participants choosing to be here on the other.

What feedback have you received from international financial institutions, and what do they see as the key areas Vietnam still needs to improve to establish a successful international financial center?

The feedback has been consistent, and it’s fair. International institutions are genuinely interested - Vietnam’s growth makes it hard to ignore, and a number of favorable factors are lining up, from the country’s macro-economic stability and deep integration into global trade to Ho Chi Minh City’s role as its commercial hub.

But interest isn’t the same as commitment, and the investors we talk to are clear about what they need to see. They want the regulatory institutions to be real and functioning, not just legislated. They want to see the practical framework for operating here come fully into place. And they want to see the first movers succeed. None of this surprises us; these are exactly the areas being built out now.

We’re still early in the journey, and I’d rather be open about that than oversell our progress. The institutions that engage with us seriously respect that transparency.

Looking ten years ahead, what would success for the VIFC look like - not only for the Center itself but for Vietnam’s broader economy?

The government’s development plan sets the horizon, so let me use it. By 2030, success is a center whose core institutions are working and whose first priority products and services are operating - the foundations genuinely in place. By 2035, it’s a modern, diverse financial ecosystem: deeper capital markets, green finance, digital finance, and fintech, connected into regional and global capital flows, with the ambition of ranking among the world’s leading financial centers and third in ASEAN.

But the deeper measure of success is what it does for Vietnam. Capital that used to route around the country now flows through it. Vietnamese companies raise money at home. The infrastructure and energy transition the country needs are financed, in part, through instruments created here. And the benefits reach beyond the Center itself - thousands of skilled jobs and a generation of Vietnamese professionals working to international standards. Financial centers are decade-long projects. Success is building this one carefully and credibly, so that a decade from now it’s is still standing, and still trusted.

-Linh Tong

Making a distinct mark in the financial market

Mon, 10 Aug 2026 10:00:00 GMT

Mr. Jochen Biedermann, Managing Director of the World Alliance of International Financial Centers, tells Ngoc Lan that Vietnam holds certain advantages as it goes about building an International Financial Center.

Vietnam is accelerating its ambition to develop an International Financial Center (IFC). From the World Alliance of International Financial Centers (WAIFC)’s perspective, what key strengths could help Vietnam establish itself as a competitive financial hub in the region?

Vietnam brings several strengths that few emerging markets can match. First, its people. It has a young, well-educated, entrepreneurial population that is digitally native and eager to embrace new financial solutions. This is the breeding ground for a thriving financial center.

Second, its position. Vietnam has positioned itself with remarkable skill in today’s complex geopolitical landscape, maintaining strong relationships with all major powers, and it sits at the heart of the rapidly-integrating ASEAN economies. That makes it a natural node for channeling investment into ASEAN and facilitating trade finance across the region.

Mr. Jochen Biedermann, Managing Director of the World Alliance of International Financial Centers.

Third, its economic engine. Unlike some financial centers that are detached from physical production, Vietnam is a global manufacturing powerhouse, providing a solid foundation for world-class supply chain and trade finance.

Based on the WAIFC’s global experience, what strategic positioning should Vietnam prioritize to differentiate itself from other financial centers in Asia?

The most successful new centers do not replicate others; they leapfrog them. For a new financial center, it is very difficult to compete head-on with London or New York in investment banking, capital markets, or reinsurance. It is much easier, and much smarter, to excel in the new frontiers: digital finance, digital assets, sustainable finance, and AI in finance. This is where the game is now being played, and where Vietnam can make its own distinct mark.

My recommendation for Vietnam has been to build a “21st-century-native” financial center - one founded on digital and green finance rather than traditional finance. Vietnam’s two-city model supports this well. Ho Chi Minh City should become the full-service international financial center, offering banking, capital markets, and connectivity to global capital to fuel national growth. Da Nang, meanwhile, should emerge as a fintech and innovation hub, leveraging its strengths in semiconductors, AI, and digital technology while supplying Ho Chi Minh City with cutting-edge solutions and skilled professionals.

If we look at mainland China, we can compare Ho Chi Minh City to Shanghai and Da Nang to Shenzhen. Without Shenzhen, China would have missed a large part of its financial development over the past 20 years. Vietnam has that same opportunity.

Beyond infrastructure and regulatory reforms, what are the most critical factors in building investor confidence and attracting high-quality international financial institutions to a new financial center like Vietnam?

Infrastructure and regulation are necessary, but they are not sufficient. From our work with financial centers globally, we see four factors that build lasting confidence.

First, it is necessary to focus on the domestic financial industry. By building an attractive and dynamic domestic ecosystem, global investors will come naturally because there is money to be made and value to be created. Attracting institutions with tax incentives or a light-touch regulatory regime alone is not a sustainable approach. If the domestic environment is not truly vibrant, they will pack their bags and move to the next hub that offers a better deal.

Second is talent. Both cities need young professionals who are fluent in English and have a deep knowledge of modern finance and technology. Developing and, crucially, retaining that talent is decisive. Vietnam needs not only bankers but also international accountants and fintech entrepreneurs.

My recommendation for Vietnam has been to build a “21st-century-native” financial center - one founded on digital and green finance rather than traditional finance.

Mr. Jochen Biedermann, Managing Director of the World Alliance of International Financial Centers

Third is trust and the rule of law. International institutions need legal certainty and credible, efficient dispute resolution. Vietnam’s decision to make English the working language of its IFC, establish a specialized court and arbitration center, and allow the choice of foreign law in cross-border transactions sends exactly the right signal. On the trust side, investors will demand the free flow of capital into and out of the country for their investments, which remains a challenge that needs to be overcome.

Finally, this is a marathon, not a sprint. Confidence is earned through consistency and unwavering commitment over a decade or more, through the good times and the bad. Vietnam’s commitment so far has been more than outstanding.

As financial services are rapidly evolving with digitalization, fintech, sustainable finance, and AI, how can Vietnam integrate these emerging trends into the development of its IFC to remain competitive in the long term?

These trends are not add-ons; they should be the very foundation of Vietnam’s IFC. There are several practical considerations.

On fintech, a healthy ecosystem rests on several interdependent pillars, including talent, capital, real demand, enabling infrastructure such as digital identity and instant payments, and, crucially, proportionate regulation. Regulation is the real differentiator. My advice is to avoid the trap of overregulation: do not simply copy the most complex rulebooks from established centers, because frameworks that work well in mature markets are often too onerous for a dynamic, emerging market. A controlled regulatory sandbox that allows young companies to experiment while protecting investors strikes the right balance.

On sustainable finance, Vietnam can mobilize green bonds and climate capital to finance its transition toward Net Zero and position the center as a regional hub for green and environmental, social, and governance (ESG) products. This is a genuine growth market, not a compliance exercise.

On AI and digital assets, the enablers matter. Startups and established institutions alike need modern data centers, known as AI factories, to train their models efficiently, along with a talent pipeline skilled in AI, blockchain, and cybersecurity. If I was to picture Vietnam ten years from now, lending would be AI-driven and available in real time, payments would be seamless and free for consumers, and financial services would be embedded invisibly into everyday platforms. Vietnam’s digitally-native population makes this future not only possible but likely.

How will the WAIFC support Vietnam’s journey toward becoming an internationally-connected financial center, and what opportunities for collaboration would you recommend between Vietnam and the global financial center community?

I have been supporting the IFC in Ho Chi Minh City and Da Nang through their Advisory Councils, because I strongly believe in their mission. When the time is right, we expect the IFC to apply for membership of our Association and become part of our family of IFCs. Membership is subject to a due diligence process and a confirmatory vote by our General Meeting. Our members support one another in their international outreach, share best practices, and connect their communities.

For Vietnam’s IFC, membership would demonstrate to international investors and partners that it is fit and proper and adheres to the highest standards. I am convinced that the IFC will not only become a valued and respected member of our Association but also rank among the world’s leading centers in innovation and investment.

-Ngoc Lan

Quang Tri eyes $3.8mln high-purity quartz materials plant

Mon, 10 Aug 2026 09:00:00 GMT

The project is expected to help the central province gradually strengthen its participation in supply chains for semiconductor materials and other high-tech industries.

Central Quang Tri province is seeking to attract high-tech materials manufacturing projects, including a proposed VND100 billion ($3.8 million) Vietnam Wafer plant producing high-purity quartz crucibles.

Vice Chairman of the provincial People’s Committee Le Duc Tien recently chaired a meeting with Vietnam Wafer JSC and Japan’s Kanematsu Corporation to discuss plans for the project and the province’s strategy for attracting building materials and high-tech materials projects.

Vietnam Wafer presented plans for its high-purity quartz crucible manufacturing plant, a component project under the second phase of the Vietnam Wafer Semiconductor Materials Manufacturing Complex.

The proposed plant would be located in Quang Ngang Industrial Park and the Southeast Quang Tri Economic Zone, covering approximately 1.5 hectares with estimated investment of VND100 billion.

The facility would manufacture high-purity quartz crucibles used in producing silicon crystal ingots for the semiconductor and photovoltaic industries, as well as high-end optical lenses.

The products require exceptionally high levels of purity and advanced manufacturing technology. The project is expected to help Quang Tri gradually strengthen its participation in supply chains for semiconductor materials and other high-tech industries.

The proposed investment is also expected to contribute to the development of a high-tech materials manufacturing ecosystem in the province and attract further investment in related industries.

-Nguyen Thuan

Moving toward net-zero ambitions

Mon, 10 Aug 2026 08:20:00 GMT

Vietnam Economic Times / VnEconomy gathered insights from policymakers, investors, international organizations, and market participants on the opportunities, challenges, and priorities shaping Vietnam’s emerging carbon market as the country moves toward its net-zero ambitions.

Professor Hoang Van Cuong, Vice Chairman of the Vietnam Economic Association.

Vietnam’s commitment to achieving net-zero emissions by 2050 is not only an international obligation but also a catalyst for transforming the country’s growth model and strengthening the competitiveness of its economy. It should be viewed as a “priority pass” that enables Vietnamese businesses to compete more effectively in global markets.

The carbon credit market should be recognized as a new driver of economic development. As green development requirements increasingly become the standard for international trade, carbon markets are emerging as a new global marketplace, generating financial resources to accelerate technological innovation and enhance business competitiveness.

Vietnam has been among the pioneering countries in implementing international climate agreements and has established the institutional framework that serves as a prerequisite for developing a carbon market. However, significant work remains to ensure the market develops sustainably, with strong accountability, transparency, and credibility in the eyes of the international community.

In particular, quality must be the cornerstone of every carbon credit project. As international requirements become more stringent, Vietnam needs to build a modern system of tools to strengthen verification capacity and ensure the transparency of emissions reduction outcomes.

Businesses and the private sector must be at the center of the green transition. Companies are the ones that develop emissions reduction projects, generate carbon credits, and directly enhance the competitiveness of Vietnam’s economy in international markets.

The development of the carbon market will require close coordination between the government, businesses, and international partners. International cooperation will continue to play a critical role. The experience, financial resources, technology, technical assistance, and advisory support provided by international organizations will help Vietnam accelerate the development of its carbon market and integrate more quickly into the global carbon trading system.

I am confident that with the government’s strong commitment, together with the support of the scientific community, international organizations, and the business sector, Vietnam will gradually build a transparent, efficient carbon market that is well integrated with international markets. Such a market will make a meaningful contribution to the country’s net-zero target by 2050 while creating a new engine of economic growth for Vietnam.

* * *

Mr. Pham Nam Hung, Representative from the Carbon Market Division at the Department of Climate Change under the Ministry of Agriculture and Environment.

Having been involved in drafting Vietnam’s legal framework on greenhouse gas emissions reduction and carbon credits, I have seen a fundamental shift in the country’s approach to carbon market governance over the past decade. We have moved from the perspective of a learner to that of a proactive market participant.

The recently-issued Decree No. 112/2026/ND-CP reflects the government’s role in creating the most flexible and business-friendly environment possible. Around ten years ago, regulations were primarily focused on administrative oversight. Today, that thinking has evolved. Carbon credit projects are now recognized as a tool for reducing emissions and delivering Vietnam’s Nationally Determined Contribution (NDC). The new policy framework provides businesses with stronger incentives and a clearer pathway to participate in the carbon market.

The legal framework has also advanced more quickly than many expected. Though the Paris Agreement was adopted in 2015, the implementation guidance for Article 6 was not finalized until COP29 in Baku, Azerbaijan, in December 2024. Even before those rules were completed, however, the government had assigned the Ministry of Natural Resources and Environment, now the Ministry of Agriculture and Environment, to lead research on policy options for managing Vietnam’s participation in carbon trading under Article 6.

Now that a relatively comprehensive legal framework is in place, the next critical step is implementation, followed by continuous evaluation and refinement. Carbon markets, particularly those operating under Article 6, remain a new area, and time will be needed to review implementation, draw lessons, and improve the system.

Vietnam also needs to adopt a long-term strategy for participating in the global carbon market. Thailand provides a useful example. Its carbon credit mechanism has already entered a high-quality phase, gaining recognition from leading international organizations and qualifying for mechanisms such as CORSIA [the Carbon Offsetting and Reduction Scheme for International Aviation]. Achieving that position required at least five years of sustained preparation and investment.

At the same time, Vietnam needs to select and standardize guidance on carbon standards, methodologies, additionality requirements, sustainability criteria, and other key technical elements so that businesses can implement projects effectively. These are two essential prerequisites for producing high-quality carbon credits.

Looking ahead, Vietnam must also strengthen implementation capacity at every level while building a larger pool of internationally-accredited validation and verification bodies, as well as qualified advisory firms, capable of independently assessing domestic carbon projects. Developing this ecosystem is essential if Vietnam is to compete on equal terms with other countries in the region and retain more of the financial value generated by carbon projects. In practice, validation and verification costs are substantial, and addressing this challenge will be critical to improving the country’s competitiveness in the years ahead.

* * *

Mr. Phan Tien Thanh, Country Business Development Manager at the Green Carbon Japan Vietnam Co., Ltd.

Green Carbon develops carbon credit projects in agriculture and forestry, with a particular focus on emissions reduction from rice cultivation. Vietnam is one of the world’s largest rice-producing countries, with more than 3.9 million ha of rice farmland. This represents a highly-promising area for emission reductions and carbon credit generation.

Based on our experience, the most important lesson from these projects is that they do far more than reduce emissions. They also deliver sustainable benefits for farmers - not only by creating additional income but also by introducing farming techniques that lower production costs, making farmers more willing to participate in projects over the long term.

Vietnam’s agriculture and forestry sectors also generate large volumes of agricultural and forestry residues. By converting these byproducts into biochar, Green Carbon is pursuing new technologies that can generate high-quality, high-value carbon credits for international trading.

One of the biggest challenges we have encountered is collecting accurate agricultural and baseline data. To address this, we have worked closely with local authorities, including provincial Departments of Agriculture, agricultural cooperatives, and commune leaders, to establish a coordinated approach to data collection and management. This not only improves data accuracy but also demonstrates the integrity of the projects.

The priority is not simply to collect data through individual projects but to establish a systematic approach to data management. Green Carbon is currently working with city and provincial Departments of Agriculture to develop digital applications and platforms for managing agricultural data.

For project developers such as Green Carbon, the top priority is to proactively attract investment from countries that have already implemented stringent emissions regulations, such as emissions trading systems (ETS) or carbon taxes. For example, Green Carbon is mobilizing overseas investment through bilateral mechanisms, including the Joint Crediting Mechanism (JCM) between Vietnam and Japan, as well as bilateral carbon cooperation mechanisms with Switzerland and Singapore. A similar mechanism with South Korea is also expected to be introduced.

We believe facilitating the transfer of carbon credits to developed countries is essential to building a strong foundation for Vietnam’s domestic emissions trading system and supporting the long-term development of the country’s carbon market.

* * *

Ms. Ramla Khalidi, UNDP Resident Representative in Vietnam.

The launch of the carbon exchange is a pivotal moment for Vietnam. It transforms the country’s ambitious net-zero commitment by 2050 from a pledge into a practical plan of action. Instead of relying only on regulations, Vietnam is creating a dynamic, market-based system that gives businesses a powerful incentive to reduce their emissions. This is a fundamental tool for driving the deep, structural changes needed to build a low-carbon economy.

This move also positions Vietnam as a leader in Southeast Asia, providing a valuable model for other nations in the region as they develop their own climate strategies. It sends a clear signal that Vietnam is serious about balancing economic growth with environmental responsibility, showing that climate action is not a barrier to development but a gateway to a more sustainable and prosperous future.

Critically, by establishing this market, Vietnam is building the foundation needed to attract international green investment and connect with global carbon markets. This will unlock new sources of climate finance, support sustainable industries, and create quality jobs for the Vietnamese people.

The immediate priority should be to ensure the market is trustworthy. This means strengthening the systems for monitoring, reporting, and verifying emissions (MRV) to guarantee that every carbon credit represents a real reduction in emissions. Clear rules and strong oversight will build confidence for everyone involved, from regulators to businesses. As the market matures, it will also be important to ensure sufficient market liquidity so that carbon pricing can effectively guide investment and emissions reduction decisions.

At the same time, we need to focus on the “supply” side of the market - the carbon credits themselves. Vietnam has enormous potential to generate high-quality credits from its forests, nature-based solutions, and circular economy and clean technology initiatives. By developing robust standards and fair benefit-sharing mechanisms, Vietnam can unlock this potential and ensure that local communities also benefit from these projects.

Looking ahead, the opportunity is to align with international standards. This will allow Vietnam to attract global climate finance and participate in international carbon trading under the Paris Agreement. By building a high-integrity market now, Vietnam can ensure its businesses remain competitive in a world that is rapidly moving toward a low-carbon future.

The UNDP is committed to supporting Vietnam every step of the way, just as we have with many other countries around the world. We bring global expertise and local knowledge to help build a market that works for Vietnam.

Our support is comprehensive. We are already providing technical assistance in designing core parts of the market infrastructure, such as the National Carbon Registry System and standards for forest-based carbon credits. We are also focused on building capacity, ensuring that both government agencies and private sector companies have the knowledge and skills they need to participate effectively.

As the market develops, we will continue to provide technical advice on regulations, linking with international markets, and implementing the frameworks required for international cooperation under Article 6 of the Paris Agreement.

A major focus for us will be helping Vietnam expand the supply of high-integrity carbon credits, especially from its forests and other nature-based solutions. We will help strengthen carbon credit methodologies, assess which projects have the greatest potential, and ensure they meet the highest standards of quality and transparency.

Ultimately, our goal is to help Vietnam build a predictable and well-governed carbon market. A strong market will not only drive down emissions but also unlock climate finance and attract the private investment needed to power Vietnam’s green transition.

Dr. Nguyen Nhat Ha Chi

Head of ESG at Dragon Capital

Every effective market rests on two fundamentals: attractive goods and a diversified ecosystem of participants.

Regarding goods, carbon allowances and credits are unlike most conventional traded assets. They are created and defined through regulatory and verification frameworks, and their market value is largely shaped by policy. Their most important price driver is not a physical supply shock but regulatory change. This is an entirely new logic for Vietnamese enterprises, and the pilot exchange is where they will absorb it: that emissions are now a cost, that reductions can become revenue, and that investment in cleaner technology is, in effect, a hedge.

The compliance mechanism shapes the participants in the same way. It requires companies to measure, report, and verify their emissions, and to incorporate carbon into their annual corporate planning. This discipline - reliable data, internal capacity, and management attention - is exactly what investors will later depend on when they assess the market.

In addition, there are some bottlenecks. On the demand side, the challenge comes from the nature of this market itself: demand for carbon is created by policy, not by consumption, and policy must strike a delicate balance between economic growth and emissions reduction. Demand will therefore build gradually, and in the meantime the market risks trading in bursts around compliance deadlines. The answer is to treat carbon as a genuinely tradable good rather than a pure compliance instrument by allowing the banking of allowances across compliance periods, developing hedging tools, and progressively widening participation beyond compliance entities.

The supply side is where the deeper bottlenecks lie: the quality of carbon credits and the transparency of emissions data.

On credit quality, the problem is simple to state: a buyer cannot easily tell whether a credit is genuine. When buyers cannot tell the difference, everyone gravitates to the cheapest credits, and honest, high-quality projects are pushed out of the market. This is exactly what happened in the global voluntary carbon market, where transactions in forest conservation credits fell sharply after several studies raised concerns that many projects may have overstated their impact.

On data transparency, the solution is more tractable because disclosure and auditing can be mandated. Encouragingly, the rules are largely in place: the national registry, mandatory emissions reporting for around 2,000 facilities, and the verification framework are all established in law. The real challenge now is not the rules but the people. Reliable data requires capable hands on both sides: enterprises that can produce it and professionals who can verify it. As reporting begins at scale, demand for both skill sets will grow quickly, calling for training, simplified templates for smaller emitters, and more accredited verifiers and intermediaries to bridge the factory floor and the trading screen.

Therefore, we need to prioritize resolving these bottlenecks. First, use the pilot period to make emissions inventories accurate and audits credible; data integrity is the foundation on which everything else stands. Second, issue the policy framework for carbon projects, including methodologies, registry rules, and verification standards, as early as possible. Carbon projects take years to develop before they generate a single tradable credit. If project developers can begin building projects during the pilot phase, a supply of high-quality domestic offsets will be ready when the carbon market moves into full operation in 2029.

Top Leader: science, technology to become new pillar of Vietnam-Australia relations

Mon, 10 Aug 2026 08:00:00 GMT

General Secretary of the Communist Party of Vietnam and State President To Lam urged the two countries to transition from cooperation to co-creation, from technology transfer to joint research and development, and from connecting individual organizations to linking their two entire innovation ecosystems.

As part of his state visit to Australia, General Secretary of the Communist Party of Vietnam and State President To Lam on August 10 attended and addressed the Vietnam–Australia Techconnect Forum.

In his remarks, Vietnam’s top leader stressed that the forum holds special significance as the Vietnam-Australia Comprehensive Strategic Partnership continues to flourish—becoming deeper, more substantive, and more effective. This is particularly true in sectors that will determine the competitiveness and prosperity of both nations in the decades to come.

From cooperation to co-creation

Developing science, technology, innovation, and high-quality human resources is not merely a choice but has become an essential requirement for Vietnam to realize its aspiration of becoming a high-income developed nation by 2045, he said.

The Party and State of Vietnam have established a new development model in which knowledge, science, technology, innovation, digital transformation, and international integration serve as the primary drivers of growth. Concurrently, Vietnam continues to refine its institutions, empower the private sector, and effectively attract international resources.

The General Secretary and President stated that Vietnam is shifting strongly from the goal of attracting investment to "cooperation for mutual development"; from receiving technology to "co-creating technology"; and from participating in value chains to gradually securing positions with higher added value within global value chains.

Stressing that Australia is a partner with numerous strengths that Vietnam highly values and wishes to walk alongside, he shared a vision for a new type of partnership—stronger, deeper, and more strategic—in the fields of science, technology, innovation, and human resource development.

He urged the two countries to transition from cooperation to co-creation, from technology transfer to joint research and development, and from connecting individual organizations to linking their two entire innovation ecosystems. The goal is to build a regional innovation ecosystem where businesses, universities, research institutes, and investment funds can connect, innovate, and grow together.

The leader proposed that the two countries develop and implement a connectivity strategy for science, technology, and innovation with a long-term vision, establishing this as a new pillar of the Comprehensive Strategic Partnership.

Party General Secretary and State President To Lam (front row, first right) and delegates visit an exhibition showcasing achievements in cooperation between Vietnam and Australia across the fields of science and technology, innovation, investment, and education. - (Photo: VNA)

He emphasized that both sides need to expand joint research programs; strengthen connections between research centers, universities, businesses, and innovation investment funds; and form cooperation networks in priority fields such as artificial intelligence (AI), semiconductors, digital technology, biotechnology, quantum technology, clean energy, strategic minerals, and the maritime economy.

Furthermore, the two nations should promote two-way investment in high-tech industries; establish research and development (RD) centers, joint laboratories, business incubation programs, and innovation projects with commercial potential; and build financial support mechanisms for joint research and risk-sharing, aiming toward co-development and co-investment.

Linking training and research with business needs

Vietnam encourages high-quality investment from Australia in the development of green financial products, digital infrastructure, data centers, and innovation hubs. Simultaneously, Vietnam seeks increased technical support and experience sharing regarding the development of the International Financial Center in the country.

The General Secretary and President proposed expanding cooperation in training high-quality human resources, particularly engineers, scientists, technology experts, and innovation managers, while encouraging the exchange of students, postgraduates, and experts between the two nations.

He noted that both sides need to closely align training and research with the actual needs of businesses. This includes promoting bilateral mechanisms and annual forums for policy dialogue, experience sharing, and fostering the "Triple Helix" model of collaboration between the State, academia, and industry.

The top leader of Vietnam expressed his confidence that with the determination of both governments and the support of the business community, universities, research institutes, and scientists, both sides will achieve new breakthroughs. This will help make the Vietnam–Australia relationship a model for cooperation in science, technology, innovation, and human resource development within the region and globally.

Speaking at the forum, Vietnamese Minister of Science and Technology Vu Hai Quan proposed that both sides concentrate resources on strategic sectors such as AI, semiconductors, cybersecurity, quantum technology, biology, clean energy, and maritime technology. He also suggested building a cooperation chain spanning from research and testing to commercialization, while connecting capital sources for innovation.

Addressing the event, Australian Assistant Minister for Foreign Affairs and Trade and Assistant Minister for Immigration Matt Thistlethwaite emphasized that science and technology lie at the heart of human progress, economic growth, and the improvement of quality of life. He also spoke highly of Vietnam’s Politburo Resolution No. 57-NQ/TW. Within the framework of the Comprehensive Strategic Partnership, both sides are seeking further ways to cooperate and invest in science, research, and innovation.

At the forum, businesses from both countries exchanged cooperation documents and announced new initiatives. On this occasion, Vietjet Aviation Joint Stock Company signed a cooperation agreement with Western Sydney International Airport, announcing the opening of a direct flight route from Ho Chi Minh City to Western Sydney International Airport starting in January 2027. This move is expected to boost the economy, investment, trade, tourism, and people-to-people exchanges between the two countries.

VnEconomy-Hà Lê

VnEconomy hosts forum on perfecting policies to boost energy sector competitiveness

Mon, 10 Aug 2026 07:20:00 GMT

Positioned as a high-level dialogue, the forum will bring together representatives from various ministries, government agencies, and industry associations, alongside prestigious domestic and international energy enterprises and organizations.

Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy will host the “Perfecting Policies to Create Competitive Advantage and Promote Energy Development” forum on August 11 afternoon, at its BMC Convention Center, 11th Floor, V.E.T Building, 98 Hoang Quoc Viet, Hanoi.

Positioned as a high-level dialogue, the forum will bring together representatives from various ministries, government agencies, and industry associations, alongside prestigious domestic and international energy enterprises and organizations.

It will also feature leading experts in legal frameworks, international finance, and the oil and gas sectors. By synthesizing recommendations and pioneering policy solutions, the forum aims to optimize resources and create momentum for Vietnam's energy industry to achieve breakthroughs in a new era.

The forum focuses on the following key areas:

First, updating the international context and emerging global development trends;

Second, forecasting energy demand during the new growth phase;

Third, identifying existing institutional and policy bottlenecks and obstacles;

Fourth, perfecting the legal framework to foster a competitive investment environment;

Fifth, policies for mobilizing resources for energy development; and

Sixth, addressing the urgent need for comprehensive policy improvements in the face of a changing global landscape.

In the new development phase, Vietnam aims to maintain a high economic growth rate, striving to build a larger-scale economy with higher competitiveness and to become a developed nation by 2045. To realize this goal, ensuring a stable, secure, sustainably developed, and competitively priced energy supply has become a critical prerequisite.

Globally, the energy industry is undergoing profound shifts driven by the global energy transition, geopolitical competition, energy price volatility, the demand for greenhouse gas emission reductions, and "Net Zero" targets. Many countries are accelerating investment in new energy sources—such as LNG, hydrogen, offshore wind, renewables, energy storage systems, and carbon capture and storage (CCS/CCUS) technologies—while simultaneously restructuring policies to enhance energy independence and competitiveness.

In Vietnam, energy demand is forecast to continue rising rapidly through 2030 and beyond, alongside the processes of industrialization, urbanization, digital transformation, and the development of new economic sectors. In particular, the growth of data centers, AI, digital infrastructure, and high-tech industries will surge the demand for electricity and primary energy, requiring synchronized preparation in terms of supply, infrastructure, and institutional frameworks.

However, the development of the energy sector still faces numerous difficulties and challenges. Traditional oil and gas resources are in decline; many energy projects are experiencing implementation delays; and the legal system, mechanisms, and policies remain inconsistent. Certain regulations have not kept pace with practical requirements and are currently undergoing further research and revision.

Notably, mobilizing investment resources for energy projects—especially large-scale ventures, renewable energy, LNG, hydrogen, and transmission infrastructure—still faces many obstacles regarding financial mechanisms, investment procedures, and legal corridors.

Against this backdrop, the continued review and perfection of the policy system, the removal of institutional bottlenecks, and the creation of a transparent, stable, and highly competitive investment environment are considered vital conditions. These steps are essential to ensuring national energy security, attracting investment resources, and driving the development of the energy sector toward a modern, green, and sustainable future.

VnEconomy-

Ha Tinh approves four wind power projects

Mon, 10 Aug 2026 07:10:00 GMT

Total investment capital estimated at VND7.8 trillion ($296 million).

Authorities of central Ha Tinh Province have approved investment policies for four wind power projects with combined investment capital of more than VND7.8 trillion ($296 million), according to the provincial People's Committee.

The Ky Anh 1, Ky Anh 2, Ky Anh 3 and Ky Anh 4 wind power plants will be developed in Ky Van, Ky Lac, Ky Hoa and Ky Thuong communes, with a combined capacity of 225 MW. The projects will feature 45 wind turbines and are expected to generate approximately 591.5 million kWh annually.

Ky Anh 1, Ky Anh 2 and Ky Anh 4 will be developed by a consortium comprising TTA Vietnam Construction Investment JSC, No One Land Real Estate Investment JSC and Dat Viet Energy Investment and Services JSC. They have capacities of 65 MW, 50 MW and 60 MW, with investments of VND2.31 trillion, VND1.69 trillion and VND2.01 trillion, respectively.

Ky Anh 3, with a capacity of 50 MW and investment of VND1.8 trillion, will be developed by a four-member consortium.

The projects are scheduled to complete legal and land procedures by February 2027, with construction, equipment installation and commissioning expected to be completed within 22 months from land handover or lease.

-Nguyễn Thuấn

Australian businesses looking at trade and investment with Vietnam

Mon, 10 Aug 2026 03:10:00 GMT

Mr. Sam Conroy, President of the Australian Chamber of Commerce in Vietnam (AusCham), tells Linh Ngoc that Australian businesses continue to look at trade and investment with Vietnam but also flag certain concerns.

How has interest among Australian businesses in Vietnam changed since the two countries upgraded relations to a Comprehensive Strategic Partnership in 2024? What sectors have been experiencing the strongest wave of new investment?

The elevation of bilateral relations to a Comprehensive Strategic Partnership (CSP) in March 2024 has given Australian businesses greater confidence in the long-term direction of the relationship. It sends a strong signal that both governments are committed to deeper cooperation across trade, investment, education, innovation, energy, and sustainable development.

Mr. Sam Conroy, President of the Australian Chamber of Commerce in Vietnam (AusCham)

This momentum is reflected in the growing economic relationship. According to Australia’s Department of Foreign Affairs and Trade, two-way trade in goods and services reached A$30 billion ($21 billion) in 2025. However, total two-way investment was A$2 billion ($1.4 billion) in the same year. This contrast shows that, although trade is performing strongly, there remains considerable scope to expand investment in both directions.

AusCham has observed growing interest from Australian companies that see Vietnam not only as an export market but also as a potential base for manufacturing, services, and participation in regional supply chains. Nevertheless, publicly-available data does not yet provide a clear basis for ranking what sectors are receiving the strongest wave of new Australian investment. It is therefore more accurate to describe the principal areas of interest and opportunity.

Vietnam and Australia’s official economic strategies identify agriculture, education, tourism, energy and resources, the digital economy, professional services, science and technology, manufacturing, and skills development as sectors with strong potential. The CSP also places particular emphasis on clean energy, climate-related investment, education, innovation, digital transformation, and resilient supply chains.

However, it is important to distinguish growing interest from completed investment. Bilateral trade has developed strongly, but two-way investment remains modest relative to the size and potential of our economies. The next stage should therefore focus on converting positive sentiment and commercial enquiries into long-term, high-quality projects.

What key factors do Australian businesses prioritize and consider when investing in Vietnam?

Australian businesses generally take a long-term and risk-conscious approach to investment. Market growth is important, but it is only one part of the decision. Investors also look closely at the predictability of the regulatory environment, the consistency of implementation across different authorities, and the transparency and efficiency of administrative procedures.

The availability of skilled employees is another major consideration. As Vietnam moves into more technology-intensive and higher-value industries, investors need access to people with strong technical, managerial, digital, and English-language capabilities.

Infrastructure is equally important, particularly the reliability of electricity supply, transport and logistics networks, industrial facilities, and digital connectivity. Australian companies also assess the strength of potential local partners and suppliers, the protection of intellectual property, tax and customs arrangements, and the ability to meet environmental, social, and governance (ESG) requirements.

Ultimately, investors need confidence that they can establish and expand their operations within a stable, transparent, and commercially-sustainable environment.

How would you assess the potential for cooperation between businesses of the two countries in the time ahead? What sectors will be focused on?

The potential is significant, because the two economies are highly complementary.

Australia has internationally-recognized capabilities in education, resources, energy, agriculture, infrastructure, logistics, technology, and professional services. Vietnam offers a large and growing domestic market, a dynamic workforce, strong manufacturing capacity, and access to regional and global supply chains. Combining these strengths can create partnerships that go beyond traditional buyer-and-seller relationships.

Clean energy and the energy transition will be a particularly important area. Australia can contribute expertise in renewable energy, energy storage, critical minerals, mining technology, project development, and sustainable financing. Agriculture and food processing also offer substantial opportunities. Cooperation can help improve productivity, food safety, traceability, climate resilience, and access to international markets.

Education and skills development will remain central to the relationship, especially in areas such as semiconductors, renewable energy, digital technology, logistics, healthcare, and advanced manufacturing. Australian institutions can work with Vietnamese universities, vocational colleges, and businesses to design programs that respond directly to industry requirements.

We also expect greater cooperation in digital transformation, innovation, transport and logistics, advanced manufacturing, infrastructure, and professional services. These are areas in which Australian expertise can support Vietnam’s development ambitions while creating sustainable commercial opportunities for both countries.

Besides the opportunities, what are the challenges for Australian businesses doing business in Vietnam?

Like every fast-growing market, Vietnam presents both opportunities and challenges. Australian businesses frequently highlight the need for greater regulatory clarity and consistency. Differences in the interpretation or implementation of regulations between central and local authorities can create uncertainty, particularly in relation to licensing, taxation, customs, land, construction, and project approvals.

Lengthy administrative processes can affect project timelines and increase costs. For major investments in infrastructure, manufacturing, or energy, the availability of suitable land, reliable electricity, and supporting infrastructure is also a critical consideration.

Skills shortages are emerging in several high-growth sectors. Vietnam has a young and capable workforce, but further investment in technical education, management capabilities, and industry-linked training will be necessary as the economy moves toward more sophisticated activities.

There are also broader challenges arising from global economic uncertainty, supply chain disruptions, changing trade measures, and increasingly-demanding sustainability standards. Businesses must manage these issues while adapting to evolving regulations on data, cybersecurity, environmental compliance, and carbon emissions.

These challenges are manageable, but addressing them will require continuous dialogue between government, businesses, and industry associations. AusCham is committed to supporting that dialogue and helping Australian companies navigate the market successfully.

- In the context of the restructuring of global supply chains, Vietnam is considered an important destination for many international investors. In your opinion, what should it do to not only attract new capital but also become a higher-value link in the supply chains of Australian businesses?

Vietnam should focus on increasing the amount of domestic value, knowledge, and innovation generated through foreign investment, rather than assessing success primarily by the volume of registered capital.

An important step would be to strengthen connections between foreign-invested enterprises (FIEs) and Vietnamese suppliers. The World Bank reports that FIEs account for 73 per cent of Vietnam’s exports, while the participation of local businesses in global supply chains declined from 35 per cent in 2009 to 18 per cent in 2023. Supplier-development programs, access to supply chain finance, and support for Vietnamese companies to obtain international certifications would help close this gap.

Vietnam can also encourage investors to locate more high-value functions in the country, including RD, engineering, product design, digital services, and regional management. Stronger intellectual property protection and closer cooperation between businesses, universities, and research institutions would support this transition.

Skills development must accompany this process. Greater investment in STEM (Science, Technology, Engineering, and Mathematics) education, vocational training, and industry-academia partnerships would help Vietnam meet demand for higher-skilled workers and move beyond activities based mainly on labor cost.

Finally, access to reliable low-carbon energy will become increasingly important. Australian and other international businesses are under growing pressure to measure and reduce emissions across their supply chains. Vietnam’s ability to provide renewable energy, credible carbon data, and internationally-recognized environmental standards will therefore influence future investment decisions.

By developing capable domestic suppliers, higher-skilled workers, stronger innovation systems, and cleaner production, Vietnam can attract investment that delivers greater and more lasting value to its economy.

Vietnam’s carbon credit market needs clearer rules and stronger infrastructure

Sun, 09 Aug 2026 23:10:00 GMT

Vietnam’s carbon credit market is gaining momentum but businesses believe clearer rules and stronger market infrastructure are needed to unlock its full potential.

Many Vietnamese businesses have yet to prioritize carbon credits, while awareness of how carbon markets operate remains limited. Combined with an incomplete legal framework and gaps in measurement, reporting, and verification (MRV) systems, these challenges continue to discourage companies from entering the market.

Experts say Vietnam must move quickly to finalize its regulatory framework, issue clear implementation guidelines, strengthen international cooperation, and improve corporate readiness if it is to convert its carbon reduction potential into commercial value.

Untapped potential

From the perspective of a company that has supported Vietnamese project developers since the early days of the carbon market, Mr. Nguyen Tien Hai, Technical Director at the Vietnam Energy and Environment Consultancy JSC (VNEEC), said domestic businesses, including project owners, consultants, and brokers, have built considerable expertise in developing carbon credit projects under both voluntary and compliance mechanisms.

Vietnam successfully registered its first project under the Clean Development Mechanism (CDM) in 2006. Over the 20 years since, the country has registered more than 270 carbon credit projects through the mechanism, but only around 30 per cent, or some 80 projects, ultimately completed the issuance process and sold credits on the international market, generating actual revenue for project developers and participating stakeholders.

The market experienced a sharp downturn after 2012 as carbon prices collapsed under the CDM. From 2013 onward, however, the voluntary carbon market expanded rapidly, and Vietnamese businesses were quick to participate under leading international standards, including the Gold Standard (GS), Verra’s Verified Carbon Standard (VCS), and, more recently, the Global Carbon Council (GCC).

Commercial performance has been significantly stronger in the voluntary market. More than 70 per cent of the roughly 150 voluntary projects successfully registered in Vietnam have issued and sold carbon credits to international buyers, demonstrating considerably higher commercial success than projects developed under the CDM.

“The experience accumulated over the past 20 years is one of the greatest strengths of Vietnamese businesses,” Mr. Hai said. “Vietnamese consultants, brokers, and project developers are no longer unfamiliar with the technical terminology or the rigorous international validation and verification processes required by the market.”

Despite this progress, Mr. Hai noted that Vietnam’s project pipeline remains modest when compared with major carbon market countries such as China, India, and Brazil. He added that the number of registered projects also falls far short of Vietnam’s own greenhouse gas mitigation potential.

Experts believe Vietnam possesses abundant opportunities to generate high-quality emissions reductions across renewable energy, waste management, low-emissions agriculture, including methane reduction from rice cultivation, forest conservation, green transportation, and industrial production. These sectors have the capacity to produce a substantial volume of carbon credits that could become tradable assets in domestic and international carbon markets.

Many businesses are also beginning to view emission reductions differently. Rather than treating decarbonization solely as a compliance cost, companies are increasingly recognizing it as a strategic investment capable of strengthening long-term competitiveness.

Among the companies leading this shift is Vingroup, whose systematic preparation offers a practical example of how businesses can build the infrastructure needed to participate in future carbon markets.

Mr. Tran Ky Anh, Carbon Credit Transaction Manager at Vingroup, said green growth and sustainable development have become long-term strategic priorities backed by coordinated investments. The group has built an integrated electric mobility ecosystem centered around VinFast, supported by affiliated businesses including V-Green, which develops charging infrastructure, Xanh SM, which provides green transportation services, and VinBus.

More recently, Vingroup has expanded into renewable energy and high-speed rail infrastructure. According to Mr. Ky Anh, these investments not only help reduce emissions across the economy but also create substantial opportunities for future carbon credit generation.

In the future, more countries are expected to participate in the international carbon market. The broader the network of partner countries, the greater the opportunities for Vietnamese businesses to access climate finance, technology, and international markets, thereby accelerating emission reductions and supporting the country’s net-zero ambitions.

Mr. Tran Ky Anh, Carbon Credit Transaction Manager at Vingroup

“To prepare for the carbon market, Vingroup considers emissions data governance and MRV systems to be fundamental capabilities,” Mr. Ky Anh said. “We invested in data infrastructure from the earliest stages of project development. At V-Green, every charging station is equipped with smart meters connected to a centralized platform that records and stores charging session data in real time to support MRV in accordance with international standards.”

The company has also invested in building internal expertise in greenhouse gas accounting, carbon project development, and monitoring global carbon policy developments. Together, these investments in strategy, digital infrastructure, MRV capability, and human resources have positioned the group to participate confidently as carbon markets continue to evolve.

Persistent barriers

Despite Vietnam’s strong technical potential and growing experience, many businesses continue to face structural barriers that prevent them from participating more actively in international carbon markets.

According to Mr. Hai, the CDM demonstrated that the biggest obstacle was not technical project development but access to buyers. Many Vietnamese developers struggled to connect with credible international purchasers, which explains why only around 30 per cent of CDM projects ultimately generated revenue despite successfully completing project development and registration.

The commercial failure of many projects imposed significant financial costs on developers that had already invested in project preparation, registration, and credit issuance. More importantly, it weakened confidence in the market and discouraged further investment.

Another challenge is the lack of early planning. Carbon credits are subject to the principle of additionality, meaning the potential to generate carbon credits must be considered and documented from the earliest stages of project planning and investment.

Many Vietnamese businesses only begin exploring carbon credits after seeing neighboring projects generate profits. By that point, projects are often already operating commercially or equipment procurement has been completed, leaving developers without evidence that carbon revenue influenced investment decisions. As a result, many projects fail to meet the eligibility requirements for carbon credit registration.

Experts also pointed to weaknesses in MRV implementation. Registering a carbon project and completing the required validation and MRV processes is a lengthy undertaking that requires substantial upfront investment and consistent compliance over many years.

Many businesses underestimate the time and financial commitment required to maintain MRV obligations. Others discontinue projects before completing periodic verification requirements, preventing carbon credits from being successfully issued.

At the same time, international carbon markets are undergoing a fundamental transformation. The market has shifted away from low-cost credits toward high-integrity credits, with buyers demanding stricter standards for additionality, permanence, avoidance of double counting, transparent ownership, and measurable contributions to sustainable development. Without systematic preparation, experts warned, many businesses will struggle to meet these increasingly rigorous requirements.

Institutional support

Speakers at the session roundtable agreed that corporate efforts alone will not be enough to unlock Vietnam’s carbon market potential. Turning emissions reductions into tangible economic value will require stronger institutional support and an operational regulatory framework.

Compared with major carbon market countries such as China, India, and Brazil, the number of carbon credit projects successfully registered in Vietnam over the past 20 years remains modest. Given Vietnam’s own emissions reduction potential, the country still has substantial untapped opportunities to develop projects capable of generating high-quality greenhouse gas emissions reductions.

Mr. Nguyen Tien Hai, Technical Director at the Vietnam Energy and Environment Consultancy JSC (VNEEC)

Mr. Ky Anh said the highest priority is ensuring that regulations governing international carbon credit transactions under Decree No. 112 are fully implemented in practice. This includes establishing workable procedures for project registration and issuing letters of approval for international transfers under Article 6 of the Paris Agreement.

He also called for detailed guidance on implementing the Decree. Vietnam already has a considerable number of projects that meet international standards and are ready to participate in carbon markets, but developers need greater regulatory certainty before moving forward. Vingroup hopes the Article 6 implementation agreement between Vietnam and Singapore will enter into force soon. Such an agreement would allow Vietnamese projects to access growing international demand for high-quality carbon credits while creating the country’s first international transactions.

Mr. Hai agreed that Vietnamese businesses already possess the technical experience, capable workforce, and initiative needed to develop carbon credit projects. What they now need, he continued, is a complete legal framework together with the institutional infrastructure required to register and issue carbon credits efficiently.

He also suggested that the government could support businesses by developing baseline methodologies for certain types of projects.

-Song Ha

Quang Tri province attracts $1.05bln in investment capital in 7M

Sun, 09 Aug 2026 23:00:00 GMT

The central province's authorities have approved investment policies for 41 projects in the first seven months of 2026.

Investment attraction emerged as a key highlight of central Quang Tri province in the first seven months of 2026 with investment policies approved for 41 new projects with a combined registered capital of over VND27.55 trillion ($1.05 billion), according to the provincial People’s Committee.

Industrial production also maintained strong growth in the period, with the Index of Industrial Production (IIP) rising 11.4% year-on-year, reflecting a continued recovery in the manufacturing sector.

Meanwhile, trade, services and tourism sustained positive momentum. Total retail sales of goods increased 11.8% from a year earlier, while import-export turnover exceeded $1.6 billion, up 3.5%.

Tourism remained a bright spot, with more than 7.4 million visitors arriving in the province during the period, an increase of over 13% year-on-year. Tourism revenue was estimated at more than VND8.56 trillion.

-Nguyễn Thuấn

Vietnam faces challenges from internationally transferred mitigation outcomes

Sun, 09 Aug 2026 10:00:00 GMT

Vietnam is well placed to bring ITMOs to global markets but must tackle a host of technical and institutional challenges.

The rapid expansion of the global carbon market is creating new opportunities for Vietnam to attract green investment, accelerate technology transfer, and enhance the competitiveness of its economy. Domestically, the country has taken a significant step forward by strengthening its legal framework with the issuance of Decree No. 112/2026/ND-CP on the international transfer of greenhouse gas emission reduction outcomes and carbon credits.

“Vietnam’s progress across every aspect of the energy transition since COP26 has been truly remarkable,” said Mr. John Robert Cotton, Deputy Director of the Southeast Asia Energy Transition Partnership at the United Nations Office for Project Services (ETP-UNOPS). He added that the well-structured roadmap, from the Emissions Trading System (ETS) and Carbon Trading Exchange (CTX) to Decree No. 112, has created tremendous confidence among international investors that Vietnam is ready for capital deployment. “This represents an enormous macro-economic and micro-economic financing opportunity for the country,” he believes.

Yet turning policy into a functioning market remains a complex undertaking. To bring Internationally Transferred Mitigation Outcomes (ITMOs) to global markets, Vietnam must address a range of technical and institutional challenges.

From framework to execution

Despite its firm determination, Vietnam’s carbon market still faces several procedural and technical bottlenecks. Mr. Axel Michaelowa, Senior Founding Partner of the Perspectives Climate Group, said one of the biggest challenges lies in the country’s multi-layered governance structure. With numerous ministries and agencies involved in project approval, overlapping responsibilities could slow decision-making and lengthen administrative procedures.

Another challenge concerns risk management and the share of credits retained by the government. Mr. Michaelowa noted that reserving 50 per cent of emission reductions to prevent overselling is a prudent safeguard. However, applying the same 50 per cent retention rate across all sectors, including industries where emissions reductions are particularly costly, could drive credit prices above market levels, undermining project viability and discouraging investment.

Compliance with the reporting requirements under Article 6.2 of the Paris Agreement also presents significant hurdles. Even the 13 countries that have already undergone international technical reviews have all been found to have substantial reporting deficiencies.

Mr. Kazuhisa Koakutsu, Director of the Paris Agreement Article 6 Implementation Partnership Center, said Vietnam has already laid important legal foundations through Decree No. 112, which establishes domestic rules covering Articles 6.2 and 6.4 of the Paris Agreement as well as independent carbon standards. The Decree also provides detailed provisions governing the authorization and allocation of ITMOs.

Vietnam should use the methodologies established under the Paris Agreement’s Article 6.4 mechanism as its foundation. Aligning with UN standards will not only ensure transparency in carbon accounting but also make Vietnamese carbon credits more readily accepted in demanding markets such as Europe.

Mr. Gilles Dufrasne, Policy Expert at the Task Force for International Carbon Pricing and Markets under the European Commission’s Directorate-General for Climate Action (DG CLIMA)

The next challenge, he said, is ensuring these domestic rules are harmonized with bilateral mechanisms such as the Joint Crediting Mechanism (JCM) and agreements Vietnam has signed with countries including Japan and Singapore.

From the private sector’s perspective, Ms. Roxanne Tan, Senior Managing Consultant at South Pole AG, warned that cost uncertainty remains a major obstacle. “Measurement, reporting, and verification (MRV) requirements involve significant costs and substantial effort from project developers,” she said. “Without clarity on fees for Corresponding Adjustments or compliance costs associated with MRV, companies cannot complete their financial models. Without that information, projects can easily stall.”

Building trust through standards

To help Vietnam overcome those challenges, international experts emphasized two essential lessons: maintaining trust through market integrity and adopting standardized methodologies.

Representing the UK at the “Promoting Cooperation on Internationally Transferred Mitigation Outcomes Towards the Implementation of National Corporate Emission Reduction Commitments” forum on July 23, as both a potential buyer and investor, Mr. Fergus McBean, First Secretary for Climate and Nature at the Embassy of the UK in Vietnam, said the most important issue today is confidence in the transparency and integrity of carbon credits. The UK Government’s principles for high-integrity voluntary carbon and nature markets stress that carbon credits must deliver genuine, measurable, and verifiable climate benefits.

From the EU’s perspective, Mr. Gilles Dufrasne, Policy Expert at the Task Force for International Carbon Pricing and Markets under the European Commission’s Directorate-General for Climate Action (DG CLIMA), said the EU is developing a legal framework to integrate ITMOs into both its internal market and its Nationally Determined Contribution (NDC) framework as part of its 2040 climate strategy.

The EU already has strategic guidance through the European Climate Law, which establishes the bloc’s overall emissions reduction targets through 2040 and outlines the criteria for incorporating Article 6 credits into the EU market. The framework provides clear priorities for future credit purchases, ensuring projects align with the objectives of the Paris Agreement and help both the EU and partner countries remain on track to meet their climate commitments.

As the EU finalizes its framework for integrating Article 6 credits during the 2030-2040 period, Mr. Dufrasne advised Vietnam to avoid adopting too many fragmented voluntary standards. Instead, he recommended aligning with internationally-recognized common standards to maximize market access.

Japan, meanwhile, offered practical lessons from 13 years of implementing the Joint Crediting Mechanism (JCM) in Vietnam. Mr. Koakutsu said the most important factor in building private sector confidence has been the government’s ability to authorize projects and deliver tangible results.

For a market to function, he explained, it must first generate real products, in this case ITMOs. But producing ITMOs requires one indispensable first step: government authorization. Following the completion of detailed Article 6 rules at the Baku climate conference, many countries are now building legal frameworks centered on authorization procedures. In Vietnam, Decree 112 serves as the legal basis governing how ITMOs will be authorized.

Vietnam’s competitive edge

Though the technical challenges remain substantial, experts believe Vietnam holds significant competitive advantages over many neighboring countries in its ambition to become one of Asia’s leading carbon trading hubs.

When the ETP convenes regional forums bringing together Vietnam, Indonesia, the Philippines, Thailand, and Singapore, Vietnam’s delegation consistently stands out as a leader. Vietnam is moving significantly faster than many of its regional peers. The lesson it offers the region is a simple but effective strategy: set clear goals, develop a concrete roadmap, and execute it decisively with the full commitment of government and stakeholders.

Mr. John Robert Cotton, Deputy Director of the Southeast Asia Energy Transition Partnership at the United Nations Office for Project Services (ETP-UNOPS)

One key advantage is strong government support. Ms. Tan said close coordination between the Ministry of Agriculture and Environment (MAE) and other relevant ministries will be essential to resolve implementation issues and translate policy into practice. International buyers are closely watching Vietnam’s next steps and are looking for clearer guidance on how the new regulations will operate in practice.

Unlike many countries whose mitigation potential is concentrated in only one or two sectors, Mr. Michaelowa said Vietnam possesses opportunities across five to ten different industries, including renewable energy, forestry, low-carbon agriculture, such as the government’s 1-million-ha high-quality rice initiative, and waste treatment technologies.

Vietnam also enjoys a unique advantage through its pool of domestic experts with more than two decades of experience under the Clean Development Mechanism (CDM). This workforce has deep expertise in baseline methodologies and MRV systems, allowing the country to develop projects independently without relying heavily on costly international consultants.

Among these sectors, forestry stands out as particularly promising. As a partner in the Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition, the UK Government has been working closely with the MAE. “We are very hopeful that Vietnam will take another major step forward on forest carbon credit mechanisms next month,” Mr. McBean said. “That would be a significant achievement and an opportunity to demonstrate the integrity of Vietnam’s carbon products. Vietnam certainly does not lack ambition. The challenge is maintaining this momentum and seizing the opportunity at the right moment.”

The “Promoting Cooperation on Internationally Transferred Mitigation Outcomes Towards the Implementation of National and Corporate Emission Reduction Commitments” forum was organized on July 23 by the Department of Climate Change at the Ministry of Agriculture and Environment in collaboration with the Southeast Asia Energy Transition Partnership (ETP) at the United Nations Office for Project Services (UNOPS), and the Vietnam Economic Association. During the session entitled “Opportunities to link Vietnam with international carbon markets,” experts touched on international regulations, demand trends, expectations of donors/buyers, quality requirements for ITMOs from Vietnam, and key considerations for entering into the international carbon market.

-LINH NGOC

Interest in carbon markets is rising

Sun, 09 Aug 2026 06:40:00 GMT

Businesses have begun to take note of the many options and benefits available now that Vietnam is officially piloting a carbon market.

After many years of preparation, Vietnam officially launched its domestic carbon exchange on June 29, marking the country’s first formal carbon pricing mechanism and transforming emissions allowances and verified emission reductions into tradable assets. The exchange allows trading of greenhouse gas emissions allowances and carbon credits.

Though the market will remain in a pilot phase through the end of 2028, many businesses view early participation as more than a compliance requirement. They see it as an opportunity to build competitiveness in a low-carbon economy that is rapidly taking shape.

New rulebook for businesses

In the initial phase, the government allocated more than 511 million metric tons of CO2 equivalent emissions allowances to three major emitting industries - thermal power, steel, and cement - for the 2025-2026 period. A total of 92 companies, covering 110 facilities, received the first allocation of emissions allowances, creating the initial supply for Vietnam’s carbon market. Under the regulations, companies that exceed their emissions limits must purchase allowances from businesses with surplus allocations or buy carbon credits to offset emissions, with offsets capped at 30 per cent of the allowances allocated to each facility.

As one of the first companies to complete a transaction immediately after the exchange opened, AES Vietnam described the milestone as extending well beyond a routine commercial trade. According to Mr. Olivier Marquette, President of AES Vietnam, the carbon market establishes a price signal for emissions. Once carbon carries a price, companies can make informed economic decisions about whether to invest in emission reduction technologies or purchase carbon credits to offset remaining emissions. Rather than relying solely on administrative mandates, the market mechanism allows businesses to pursue the most cost-effective option.

For AES Vietnam, participating from the first day also provides valuable operational experience. Although the group has participated in carbon markets across Europe and other countries for many years, it still needs to become familiar with Vietnam’s trading mechanisms, transaction procedures, and market infrastructure.

Under the current roadmap, Vietnam’s carbon market will remain in a pilot phase through 2028 before full-scale operations begin in 2029. During this pilot period, participating companies will not be charged exchange service fees, giving both regulators and market participants time to refine the system and gain practical experience.

The important thing is not simply completing a transaction, but understanding how the market works. We wanted to participate from Day 1 to gain practical experience and prepare for the market’s next stage of development after 2029.

Mr. Olivier Marquette President of AES Vietnam

Mr. Marquette said the financial impact is likely to remain limited during the early years because trading volumes will be relatively small. Over the longer term, however, carbon is expected to become a meaningful production cost.

Beyond carbon trading

While many businesses still view the carbon market primarily as a compliance tool, experts argue that the greatest value of carbon credits lies in their ability to unlock access to green finance.

Dr. Nguyen Phuong Nam, Founder and CEO of climate innovation consultancy Klinova, said many businesses continue to regard carbon credits as a new source of revenue. “However, revenue from carbon credits should be viewed as supplementary financing that companies can reinvest in further emission reductions, rather than as the primary objective,” he advised.

Green transformation requires substantial capital. To attract international green funds and sustainable finance, Dr. Nam believes companies must develop high-quality projects, adopt transparent business models, and demonstrate measurable emission reductions. In this context, generating carbon credits does more than create an additional revenue stream. It also provides evidence that a company is implementing internationally-recognized emission reduction projects.

He explained that projects seeking carbon credits must undergo rigorous measurement, reporting, and verification (MRV) processes. These requirements significantly reduce risk for financial institutions assessing potential investments. “The ability to generate and trade carbon credits also serves as an indirect demonstration of a company’s capacity for green transformation,” he said. “That gives investors greater confidence and increases their willingness to finance green projects.”

Ms. Nguyen Thuy Vi, Project Manager at Green Carbon Japan, said the company’s goal is not to maximize the volume of credits issued at any cost, but to ensure that every credit meets high standards of transparency and quality. “We always prioritize producing clean, transparent carbon credits that meet international standards,” she said. “That is why every stage, from emissions accounting to validation and verification, is conducted under strict procedures.”

The initial allocation of emissions allowances is relatively large, she continued, but still represents only a portion of businesses’ long-term needs. More importantly, the system encourages companies to invest in emission reduction measures, while carbon credits serve as a complementary tool to balance emissions and meet regulatory obligations.

Green Carbon Japan expects domestic demand to grow rapidly over the years to come as more companies receive emissions caps and seek carbon credits to comply with regulations. Alongside exporting credits, the company also hopes the domestic market will develop sufficient liquidity to become an important outlet for carbon credits generated in Vietnam.

Toward international integration

The launch of the carbon exchange is intended not only to facilitate domestic trading but also to lay the foundation for Vietnam’s gradual integration with global carbon markets. To achieve that goal, Ms. Vi said Vietnam’s regulatory framework must closely align with international standards.

In the long term, businesses need to view the carbon market as part of a broader strategy to strengthen their competitive advantage, rather than simply as a platform for trading carbon credits.

Dr. Nguyen Phuong Nam Founder and CEO of Klinova

Beyond serving domestic demand, Vietnam needs to prepare for eventual connections with established markets such as Japan and the EU, where carbon trading systems and credit quality standards are already well developed. Each market has its own rules governing credit quality, trading mechanisms, compliance costs, and penalties for exceeding emissions limits - experience that Vietnam can draw on as it refines its own system.

Green Carbon Japan has already launched 15 projects across multiple localities to build a sufficiently large portfolio of carbon credits for international markets. The projects target not only the Vietnam-Japan Joint Crediting Mechanism (JCM) but also opportunities under Article 6.2 of the Paris Agreement.

The company believes Vietnam’s domestic carbon market should be viewed as a starting point for local businesses to gain practical experience while creating conditions that encourage international companies to participate. To support that ambition, Vietnam will need to establish mechanisms for recognizing and converting carbon credits between domestic and international markets, along with transparent regulations governing cross-border carbon trading. “Once these frameworks are in place, I believe Vietnam’s carbon market will have tremendous potential, not only in agriculture but across many sectors of the economy,” Ms. Vi said.

-NGOC LAN

HCM City emerges as APAC data center investment hotspot

Sun, 09 Aug 2026 05:10:00 GMT

Ho Chi Minh City, with a total data centre supply of 68 megawatts (MW), is gradually strengthening its position on the regional data centre map.

The data center market in the Asia-Pacific (APAC) region has recorded remarkable growth, with Ho Chi Minh City emerging as a new bright spot attracting growing attention from international investors.

According to the latest report by Cushman Wakefield, APAC’s data center market reached a record 26.5 gigawatts (GW) of capacity in the first half of 2026, driven by major operators and the rapid expansion of artificial intelligence (AI) platforms. Southeast Asia, particularly Malaysia and Thailand, accounted for about 50% of capacity under construction, highlighting the region’s growing appeal.

Ho Chi Minh City, with a total data centre supply of 68 megawatts (MW), is gradually strengthening its position on the regional data centre map. The city’s market has been boosted by investment from major technology companies.

In the first half of 2026, UAE-based AI company G42 signed a $1 billion framework agreement with FPT Corporation and Viet Thai Group to develop three data centres in Vietnam, while also participating in a $2 billion hyperscale AI data centre project in Ho Chi Minh City.

Meanwhile, Sembcorp, through its StarMason joint venture with BB Holdings, received approval for a 90MW data centre project in the city.

The International Finance Corporation (IFC) has also announced plans to invest up to $3 billion in Vietnam, including digital infrastructure, further underscoring international confidence in the country’s digital economy.

-Phạm Vinh