VnEconomy - Vietnam Economic Times

For green public transport

Thu, 16 Apr 2026 10:00:00 GMT

A preference for green public transport options will only take hold around Vietnam as networks and services become more integrated and convenient.

Transport has long been seen as a backbone of connectivity and economic expansion, but at the same time has also hit various stress points: rising energy demand, higher emissions, and increasingly costly operations. Amid environmental constraints, requirements in economic efficiency, and international commitments, the transport sector is being pushed into a deeper phase of transformation. The question is no longer whether to go green, but how to go about it.

Pressure to change

Air pollution and volatile transport costs are forcing the sector to adapt. Recent geopolitical developments have driven sharp fluctuations in domestic fuel prices, leading to immediate shifts in travel behavior. According to Mr. Le Bang An, CEO of Hanoi Metro, ridership on the Cat Linh - Ha Dong metro line rose by nearly 5 per cent following a fuel price adjustment, while the Nhon - Hanoi Station line saw an increase of more than 13 per cent. These figures suggest that when costs rise, commuters are willing to switch, provided viable alternatives exist.

However, transport experts argue that price is not the decisive factor. The key lies in overall convenience. People will only shift to public transport when journeys are seamless and efficient. When metro lines, bus networks, and feeder services are effectively integrated, modal shifts occur naturally rather than through administrative measures.

Experts have noted that the green transition is a multi-stage process. On one hand, emissions intensity from existing vehicles must be reduced, while on the other the adoption of new-energy transport must accelerate. At the same time, building a multimodal ecosystem, which means integrating different transport modes into a unified system, is seen as critical. This holistic approach underscores that transformation is not about isolated substitution, but about restructuring the system across multiple layers.

International experience shows there is no one-size-fits-all solution. Japan and Germany have pursued selective modernization, avoiding mass electrification to prevent disruption to domestic industrial chains. Singapore, meanwhile, prioritizes smart infrastructure to manage transport demand rather than simply limiting vehicle numbers. These approaches highlight that technical solutions must align with economic conditions and policy frameworks to deliver meaningful results.

Fragmented system

Over the past two decades, Vietnam’s transport infrastructure has expanded rapidly, strengthening regional connectivity and economic integration. However, this growth has largely been quantitative. Links between different transport modes have lagged behind. As a result, logistics costs remain high, energy consumption is significant, and emissions continue to rise, exposing the limits of a growth model based solely on infrastructure expansion.

Innovation is emerging across subsectors, but has yet to create systemic impact. In rail, companies are beginning to transition locomotive and rolling stock energy systems. Vietnam Railways has outlined a roadmap to gradually replace diesel locomotives with electric or cleaner alternatives, starting at the pilot scale. This signals a shift away from traditional operations toward lower-emission models.

Urban rail networks in Hanoi and Ho Chi Minh City are also increasingly positioned as the backbone of urban mobility. Mr. Khuat Viet Hung, Chairman of Hanoi Metro, believes a fully-operational metro network could cut hundreds of thousands of tons of CO₂ annually. However, these gains depend on integration with bus networks and feeder services. Without such connectivity, their broader impact remains limited.

On the roads, the biggest challenge lies in scale and usage patterns. With around 7 million cars and nearly 80 million motorbikes, Vietnam faces a vast and highly fragmented base of private vehicles. Electric buses, taxis, and motorbikes are emerging, but high upfront costs, long charging times, and battery replacement expenses remain major barriers, according to transport operators. In the short term, electric vehicles are unlikely to fully replace conventional vehicles.

In logistics, structural challenges are even more pronounced. Logistics costs account for around 16-20 per cent of GDP; significantly above the global average. The main cause is a lack of integration across transport networks, forcing goods through multiple intermediaries, extending transit times, and increasing both costs and emissions. Some firms have experimented with coastal shipping, reporting emission reductions of up to 75 per cent compared with road transport, alongside notable cost savings.

At the same time, multimodal logistics projects are gradually taking shape, linking road, rail, seaports, and aviation within unified systems. This marks a shift from fragmented infrastructure development toward network-based thinking, where efficiency depends on overall connectivity rather than individual components.

The aviation sector faces its own transition challenges. With high emissions intensity per unit transported and limited electrification potential, aviation relies primarily on operational optimization, fleet modernization, and research into sustainable aviation fuel. Many major airports have deployed electric ground equipment and smart energy management systems. The sector’s capacity for deep emissions cuts, however, remains constrained.

Overall, innovation is visible across infrastructure, technology, and operations. Yet without a strong overarching design to connect these elements, the system remains fragmented. This lack of integration not only undermines investment efficiency but also limits the broader impact of green transition efforts across the economy.

Structural challenges

Recent developments underscore the limits of piecemeal greening. Replacing vehicles, while necessary, cannot drive transformation on its own if infrastructure and operational models remain unchanged. Without structural reform, even advanced technologies can only play a supporting role, with limited system-wide impact.

On the policy front, Vietnam has established a framework for green transport through laws, decrees, and strategies on emission reductions and sustainable development. However, according to the Ministry of Construction, the main challenge lies not in direction but in implementation. Gaps between institutions, technology, and public awareness are creating a disconnect between policy goals and real-world outcomes.

Addressing this requires restructuring the transport network toward a multimodal model. When road, rail, inland waterways, and aviation are effectively integrated, transport costs fall, and emissions can be better controlled across the entire chain. This forms the foundation for an optimized system, replacing today’s fragmented links.

Financing remains a decisive factor for large-scale infrastructure projects. Green infrastructure requires substantial upfront capital, long payback periods, and carries high risk, making investment mobilization difficult. Public-private partnerships and green finance are expected to play a key role, but attracting long-term capital will require clear risk-sharing mechanisms and a stable investment environment.

For businesses, green transition goes beyond fleet upgrades to encompass full business model transformation. Industry representatives emphasize the need for strong early-stage support policies, from tax incentives to credit tools, to ease investment burdens and enable adaptation. Without such support, private sector engagement will remain limited.

Technology continues to play an important enabling role, though it is not the ultimate determinant. AI, big data, and smart coordination platforms can optimize operations, reduce energy consumption, and improve efficiency. However, their effectiveness depends on being deployed within a well-structured, integrated transport system.

Ultimately, user behavior remains central. Reliance on private vehicles, particularly motorbikes, still dominates mobility patterns in major cities. A shift toward greener options will only occur when alternatives are convenient, accessible, and capable of meeting daily travel needs.

In this context, green transport is no longer about individual projects or standalone technologies. It is about reorganizing the entire transport system, where changes in infrastructure, logistics, and policy reshape how the broader economy functions.

VET-Huynh Dung

Vietnam - Canada advance energy cooperation

Thu, 16 Apr 2026 04:00:00 GMT

In a recent interview to Vietnam Economic Times / VnEconomy, H.E. Mr. Jim Nickel, Canadian Ambassador to Vietnam, said Canada is ready to expand LNG exports, promote investment ties, and build long-term energy partnerships with Vietnam.

https://www.youtube.com/embed/o-Hvj2bDkso

Your Excellency, having recently taken up your post in Vietnam, how do you assess the current state of economic and trade cooperation between Vietnam and Canada, and what key areas do you see as priorities for future cooperation in the coming years?

Well, thank you very much for this invitation to speak with Vietnam Economic Times readers and viewers.

It is a great opportunity to speak with our Vietnamese friends about the excellent relationship that we have between Canada and Vietnam. In fact, the bilateral economic relationship between Canada and Vietnam has been growing by leaps and bounds0growing very rapidly, actually.

Over the last four or five years, we have doubled our bilateral trade. Even just this past year, in 2025, bilateral trade between Vietnam and Canada increased by a little more than 30 percent, which is quite remarkable. According to Canadian trade statistics, we now have a bilateral two-way trade relationship worth $ 20.6 billion.

I should point out that Vietnam has a clear advantage in that bilateral trading relationship. For every one billion dollars that Canada exports to Vietnam, Vietnam exports some nineteen billion dollars of merchandise goods to Canada. So clearly, Canada is a very good trading partner for Vietnam. We buy a great deal of merchandise goods from Vietnam.

At the same time, with the rapid growth of the Vietnamese economy-one of the fastest-growing economies in the world-and with an expanding middle class that has increasing purchasing power and appetite for higher-quality goods, we see many opportunities for Canadian exporters as well.

With our natural resources, our agricultural products, and other high-quality products, we believe there is much that Vietnamese consumers would also value.

Of course, Canada also relies on many supplies from Vietnam for industries back home. So this is a mutually beneficial relationship.

This relationship is grounded in our Comprehensive Partnership, which we have enjoyed since 2017, when that partnership was established, and also in our joint membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the CPTPP. These elements have really bound us together economically as reliable partners.

I think some of your viewers may have heard Canada’s Prime Minister, Mark Carney, speak recently-for example at Davos-about the importance of middle powers such as Vietnam and Canada, and like-minded economies of our size, working together to uphold international trading rules and a rules-based economic order.

This is particularly important for exporting countries such as Vietnam and Canada, where we depend heavily on the international economy. Some practical steps we are taking in that regard include Vietnam’s role this year as Chair of the CPTPP.

Our Prime Minister has sent his Special Envoy for Europe to engage with Vietnamese leaders and officials about how we can link the economies of the CPTPP with European economies-countries that share an interest in a rules-based approach to trade and investment.

We are also encouraged by the ongoing negotiations between ASEAN and Canada for a free trade agreement, which we hope may conclude perhaps this year.

That too would help realize the idea of middle powers with a vested interest in a rules-based trading system working together.

Finally, I would simply say that Canada will be a reliable trading partner for Vietnam. We have mutual interests in trade, investment, innovation, and I believe there is much more that we can do together.

Your Excellency, could you briefly share an overview of Canada’s oil and gas industry-its development, current position, and global role today?

Certainly. For Canada, some of the priority areas where we see cooperation with Vietnam include sectors that have been identified by both Vietnamese leadership and Canadian leadership.

Clearly, energy is one of the most important areas-energy security, energy sovereignty, and the commitment we both share to reduce emissions as we move toward a net-zero world.

Canada today is one of the world’s major energy producers. We are the fourth-largest producer of crude oil in the world and the fifth-largest producer of natural gas. Canada therefore plays an important global role in conventional energy markets. At the same time, our strategic direction is not only to remain a reliable supplier of conventional energy, but also to support the global energy transition through cleaner production, lower emissions technologies, LNG development, carbon capture, and advanced clean technologies.

We also see strong opportunities with Vietnam in aviation and aerospace, technology and innovation, information and communications technologies, clean technologies, education, agriculture, and agri-food products. These are all priority areas where both Canadian and Vietnamese leadership see opportunities to mutually grow our economies.

Canada is emerging as a major LNG supplier globally. What strengths does Canada bring to partners like Vietnam? And Could you share more details about LNG transportation from Canada to Vietnam, including timelines and logistical advantages? And how could this impact Vietnam’s energy security?

Thank you very much. Perhaps I will address directly Canada’s LNG strengths and the advantages that this could offer Vietnam. But first, let me note again that Canada is the fourth-largest producer of crude oil in the world and the fifth-largest producer of natural gas.

Canada is truly a global energy superpower in conventional energy. Historically, most Canadian crude oil and gas exports have gone to the United States. However, we recognize that globally there is increasing demand for more energy, more energy security, and more reliable energy partners. Canada therefore wants to play that broader role globally as well.

In recent years, Canada has been developing domestic infrastructure that allows us to deliver energy to Asian markets. For example, in May 2024, Canada brought online the Trans Mountain Expansion Pipeline. This carries Canadian crude oil from the province of Alberta in western Canada to the Pacific coast of British Columbia for shipment to Asia.

We have already begun shipping crude oil to Asian countries, particularly China, Japan, South Korea, and Northeast Asia more broadly. We are currently shipping approximately 890,000 barrels per day to the Pacific coast and Asian markets. Within roughly the next year, that capacity should nearly double to around 1.7 million barrels per day.

On the LNG side, Canada has only recently developed infrastructure to export LNG directly to Asia. As I mentioned earlier, much of our natural gas had previously been used domestically or exported to the United States.

But there is now clear global demand for Canadian LNG. In June 2025, the first LNG facilities on the British Columbia Pacific coast began shipping LNG to China, Korea, Japan, Taiwan, and the Philippines. Current export capacity is around 14 million tonnes per year. That capacity will double next year to approximately 28 million tonnes per year.

This is only the beginning of Canada’s LNG export story. We currently have two more LNG facilities under construction that are expected to come online in 2026 and 2027, along with several additional projects under review.

Prime Minister Mark Carney’s objective is that by the 2030s, Canada would have the capacity to export approximately 50 million tons of LNG annually. By the 2040s, Canada could potentially export as much as 100 million tonnes annually. In that scenario, Canada becomes a major and reliable supplier of an important transition fuel.

LNG has significantly lower emissions than many conventional fuels. Canada’s LNG currently produces approximately 60 percent lower emissions than the global average. With new facilities, improved technologies, and the use of hydropower and renewable electricity to operate LNG plants, Canadian LNG could reach emissions levels around 90 percent lower than the global average. That represents a very clean transition energy source.

For Vietnam specifically, it is clear that Vietnam is seeking secure and stable energy supplies. Vietnam is also seeking cleaner energy sources and replacing coal over time. Canada can be that reliable supplier.

Not only is the supply available, but there are also strong logistical advantages.

One of the major advantages of LNG exports from Canada is shipping time: from British Columbia (Canada) to Vietnam approximately 15 days and from the U.S. Gulf Coast to Vietnam approximately 30 days. So shipments from Canada take roughly half the time. That means lower shipping costs. It is also a safer and more secure route. Canadian LNG travels directly across the Pacific Ocean.

Alternative supply routes may involve the Panama Canal, which can be a chokepoint, or sensitive geostrategic routes such as the Strait of Hormuz or the Strait of Malacca. So not only is shipping faster and more cost-effective, it is also strategically more secure.

As Vietnam looks to diversify energy sources and secure cleaner transition fuels, Canada could be a very strong partner.

Is Canada ready to engage in long-term LNG supply agreements with Vietnam?

Yes. As Canada develops its energy resources for export to Asia, one of the things we are particularly interested in is building long-term partnerships. We are looking for stable, reliable, and enduring partnerships. Of course, there is the opportunity for Vietnam to purchase LNG or other Canadian energy products through long-term supply arrangements. But there is also another important opportunity: Vietnam can participate directly in LNG projects in Canada. As I mentioned earlier, several LNG projects are under development in Canada, and we welcome foreign investment in those projects. Currently, some Asian investors have already taken equity stakes in Canadian LNG resources in order to secure long-term access to supply and establish strategic energy partnerships.

These include: PetroChina, Petronas of Malaysia, Korea Gas Corporation, Japanese investors and trading houses. So we already have a number of Asian partners who have invested in Canadian LNG. That is exactly the kind of long-term partnership model we value.

What Canada is looking for is a stable and reliable partnership, and there are different ways Vietnam can participate in that partnership: Through long-term purchase agreements; Through equity investment in Canadian LNG projects; Through broader strategic cooperation in energy trade and infrastructure.

From the Embassy of Canada, we are always happy to help make introductions and facilitate discussions so that Vietnam can connect with the right partners and decision-makers.

Do you see opportunities for PetroVietnam to invest in upstream oil and gas projects in Canada? If so, could you elaborate on possible cooperation models?

Yes, certainly. I believe there are many opportunities as Canada continues to develop its LNG sector as well as oil and gas infrastructure more broadly. Canada welcomes foreign investment. Canada is a safe, transparent, and reliable investment environment.

For foreign companies and foreign countries that wish to invest in Canada, it is a very secure jurisdiction with strong rule of law, transparency, and attractive long-term returns. Let me give you an example. I mentioned Petronas of Malaysia earlier.

In Canada’s first major LNG project exporting to Asia, Petronas has taken a 25 percent stake. That is a very concrete example of how international participation can work.

PetroChina has also invested. Korea Gas has also invested. So Canada already has a proven track record of welcoming foreign investment in upstream gas assets, LNG facilities, and broader energy development. We welcome those investments. Indeed, such partnerships are important for developing natural resources at the scale required by growing global demand.

To give you an idea of the scale, the current stock of foreign investment in Canada’s energy sector today is approximately $ 157 billion. So Canada is very open to that type of partnership.

We would be more than happy to facilitate introductions for PetroVietnam, EVN, or any other Vietnamese stakeholders interested in participating in the development of Canadian energy resources. That could be an important contribution to Vietnam’s long-term energy security going forward.

Finally, what message would you like to convey to Vietnamese businesses and policymakers regarding cooperation with Canada in the energy sector?

Canada, as I said earlier, is an energy superpower. We have conventional energy resources. We have renewable energy. We have clean technologies that help reduce emissions. We are doing significant research and development in the energy field. We have highly experienced companies operating across the sector. And, of course, we have substantial natural resources to share with the world.

As Vietnam’s economy continues to grow rapidly, as manufacturing capability rises to higher levels, and as demand for energy continues to increase, I believe we should work together on reliable, secure, and clean sources of energy for Vietnam’s future. Canada could be a very strong partner for Vietnam in this regard.

We look forward to continuing discussions with the Government of Vietnam, private companies, and other interested stakeholders. Whether in: oil and gas, LNG, carbon capture, utilization and storage, renewable energy, conventional nuclear power, small modular reactors. I believe we can build a mutually beneficial partnership.

Vneconomy-Trọng Thoan

Ho Chi Minh City an expected international financial hub

Thu, 16 Apr 2026 03:30:00 GMT

Launched late last year, the task now for Vietnam’s International Finance Center in Ho Chi Minh City is to ensure it is set up to deliver on its objectives.

Ho Chi Minh City has accelerated its efforts to establish itself as a regional and international financial hub since the International Financial Center (IFC) in the southern city was officially launched on December 19, 2025. Throughout this journey, the British Consulate General and the British Chamber of Commerce Vietnam (BritCham Vietnam) have provided specialized support and strategic engagement. Building on this momentum, the Consulate General, BritCham, and Dragon Capital co-hosted the UK-Vietnam Open Conference on the International Financial Centre (IFC) 2026 in Ho Chi Minh City on March 25, with the theme “Financial Market Infrastructure.”

Addressing the Conference, Ms. Alexandra Smith, British Consul General in Ho Chi Minh City, underscored that the development of IFCs in Ho Chi Minh City and central Da Nang city represents an extraordinary opportunity for Vietnam, but their success depends on getting the foundations right from the outset. A truly competitive IFC rests on three core pillars: a robust legal framework, a credible and independent regulatory system, and sophisticated market services that enable the trading and mobilization of capital, attract high-quality foreign investment, and position Vietnam as a dynamic and trusted hub within the global financial system.

International alignment with local standards.

“The term ‘international’ in IFC refers to the ability to attract global capital, reflecting Vietnam’s own ambitions,” according to Ms. Angela Knight, Chair of the Astana Financial Services Authority (AFSA) in Kazakhstan and Member of the Astana IFC (AIFC) Management Board. “Drawing on my AIFC experience, I emphasize the importance of an independent regulator that coordinates effectively with both the financial center and national authorities.”

Kazakhstan operates a dual legal system. The AIFC was established under a special constitutional law that allows a distinct legal regime for financial services, including civil and commercial matters. The legal framework provides the foundation, while regulation delivers specific rules, supervision, and enforcement to ensure market integrity and stability.

The adoption of English law, combined with an independent court and regulator, has created a structure designed to attract international investors. The AFSA aligns elements with international standards, including Basel Committee guidelines and the International Organization of Securities Commissions (IOSCO), the International Association of Insurance Supervisors (IAIS), and the Financial Action Task Force (FATF) standards. The regulator focuses on capital markets, asset management, and fintech, engaging closely with international bodies to stay up to date and ensure compliance across jurisdictions. Local context is considered, but FATF rules are strictly enforced.

Independence is safeguarded through board composition, where most members are not affiliated with the government or the financial center. Public consultation supports transparency. All proposed rules are open to stakeholder input, with regular updates to keep the regulatory framework responsive to market developments.

From Vietnam’s perspective, a truly competitive IFC rests on three core pillars, as Consul General Smith noted above.

The first is a robust legal framework. A modern IFC requires transparency, stability, and predictability to inspire investor confidence, best reinforced through English common law. Around 40 per cent of international commercial contracts worldwide are governed by English law, highlighting its clarity and global recognition. The UK has collaborated with Vietnam’s Supreme Court and advisory groups from TheCityUK to shape the IFC court in Ho Chi Minh City.

The second is a credible regulatory framework. An independent, transparent, and well-resourced regulator is essential to oversee complex financial activity, attract institutional investors, and align Vietnam’s markets with international standards.

The third pillar focuses on market services that enable efficient capital flows. Vietnam has the opportunity to accelerate growth by developing specialized trading platforms, including commodity derivatives exchanges. The UK is providing technical support, drawing on international models, particularly London, to facilitate hedging, investment, and price discovery across commodities, energy, green bonds, and other sustainable instruments.

Together, these three pillars form the backbone of a competitive IFC. With these elements in place, Ho Chi Minh City and Da Nang can transform Vietnam’s financial landscape and elevate the country’s position in global markets.

Building a modern commodities market.

At the Conference’s panel discussion entitled “Commodity and Derivatives Markets - Market Practice and Institutional Perspectives,” experts examined the key foundations required for the development of modern commodity markets, particularly derivatives markets, in close connection with the legal framework, regulatory architecture, and market infrastructure supporting the development of Vietnam’s IFC. Speakers noted that the commodity market, particularly agricultural products, is facing a lack of synchronization between output and prices.

According to Mr. Dominic Scriven, Chairman of Dragon Capital, the core challenge in Vietnam’s commodity markets does not lie in production capacity but in how the market is organized to ensure more transparent and efficient price discovery mechanisms.

By way of example, he spoke of the coffee sector, where farmers and businesses in many cases still face structural information asymmetries, resulting in situations where “they have volume but no price” or the opposite. This reflects a structural weakness in the market, where price signals do not yet fully capture supply and demand dynamics.

He also stressed that the long-term objective is to transform fragmented competition between market participants into a collective advantage for the entire value chain, thereby improving market efficiency, transparency, and overall value creation within the commodities ecosystem.

From a strategic advisory perspective, Mr. Vincent Chin, Senior Partner at Boston Consulting Group, observed that Vietnam’s agriculture sector is highly-competitive but remains fragmented, limiting the overall efficiency of the value chain.

In his view, the issue is not a lack of competition, but rather the absence of a structured mechanism to translate competition into collective market strength. The key challenge, therefore, is to design frameworks that transform competition among producers into a shared market advantage, thereby improving overall resource allocation and operational efficiency.

Mr. Chin highlighted three critical pillars for a well-functioning derivatives market: a reliable settlement system, transparent price formation mechanisms, and a clear legal and regulatory framework to safeguard market integrity. Additionally, he underscored counterparty risk as a key area requiring strict control.

Meanwhile, Mr. Warrick Cleine, Chairman and CEO, Managing Partner - Deal, Tax and Legal Advisory at KPMG in Vietnam and Cambodia, emphasized that market infrastructure is a fundamental determinant of the long-term sustainability of commodity and derivatives markets. “A modern market cannot function effectively without robust clearing and settlement systems, combined with transparent pricing standards,” he said. “These elements are essential to ensure market stability, reduce systemic risk, and enhance investor confidence.”

From a regulatory standpoint, Mr. Tran Huu Linh, General Director of the Agency for Domestic Market Surveillance at the Ministry of Industry and Trade, emphasized the need to strengthen market transparency while continually improving supervisory mechanisms to ensure fairness, stability, and effective market operation.

Some participants emphasized that the design of an IFC must ensure a high degree of internationalization, including the recognition of common law principles, the use of the English language, and adherence to international financial reporting standards, in order to facilitate access for global investors. It was also noted that regulatory frameworks need to be more flexible to accommodate different types of markets, whether financial markets or physical commodity markets.

A modern market cannot function effectively without robust clearing and settlement systems, combined with transparent pricing standards. These elements are essential to ensure market stability, reduce systemic risk, and enhance investor confidence.

Mr. Warrick Cleine, Chairman and CEO, Managing Partner - Deal , Tax and Legal Advisory at KPMG in Vietnam and Cambodia.

The term ‘international’ in IFC refers to the ability to attract global capital, reflecting Vietnam’s own ambitions. Drawing on my AIFC experience, I emphasize the importance of an independent regulator that coordinates effectively with both the financial center and national authorities.

Ms. Angela Knight, Chair of the Astana Financial Services Authority (AFSA) and Member of the Astana IFC Management Board.

VET-Nhu Quynh

Next wave of energy transition

Wed, 15 Apr 2026 10:00:00 GMT

Vietnam Economic Times / VnEconomy gathered the thoughts of EU and global partners on how Vietnam can turn its natural advantages into large-scale renewable investment and energy security.

Mr. Tibor Stelbaczky, Ambassador-at-Large, Principle Adviser on Energy Diplomacy at European External Action Service

I would like to mention three additional perspectives at the policy level regarding the Just Energy Transition Partnership (JETP).

Firstly, the JETP is built upon the shared goals of Vietnam and the International Partners Group (IPG), which is to achieve net-zero emissions by 2050, implementing the Paris Agreement and working toward this goal. Based on that shared goal, this is the best way to realize the principle of shared but differentiated responsibilities in implementing the Paris Agreement. This is a commitment from the IPG and the G7 to support Vietnam, and also a commitment from Vietnam to move toward net-zero emissions. Clearly, this is in the common interest of all participating parties, and we are very much looking forward to continuing cooperation to promote the meaningful and effective implementation of the JETP.

The second is that the “P” in JETP stands for “Partnership”. This signifies close cooperation between us and Vietnamese authorities, government, companies, and stakeholders. I think it is very important to gain experience from each other. Vietnam’s economic growth is remarkable - even fantastic. However, IPG countries also have a lot of experience in energy transition, and we are ready to share this experience and lessons with Vietnam. More importantly, it is not just about sharing experience, but also about being ready to invest and provide concrete support, from financial to technical assistance, to achieve tangible results in the implementation of the JETP.

Thirdly, in the past few years, especially since the signing of the Political Declaration in 2022 and the development of the Resource Mobilization Plan, as well as initial projects in place, the JETP has always been seen as an opportunity for Vietnam to leverage support from the IPG. However, in the current volatile context, this is no longer just an opportunity but a pressing need not only in Vietnam but also in many other countries, including IPG countries.

As the global energy market undergoes significant changes, shifting toward domestic energy sources such as renewable energy, while investing in energy storage, batteries, and grid development, becomes a necessary direction. This is not only a way to ensure the necessary energy supply to support economic growth, but also to ensure energy security and reduce external dependence. This is a common challenge for both Europe and Vietnam.

Therefore, we believe that moving toward greater renewable energy deployment and all investments in this sector, such as storage and grid development, as well as related regulatory measures and reforms, is the best way to ensure energy security, sustain impressive economic growth, and support Vietnam’s catch-up process - a mutual goal of both the IPG and Vietnam.

Mr. Alessandro Antonioli, Vietnam Country Manager at Copenhagen Offshore Partners

Vietnam is extremely competitive when it comes to the use of natural resources for renewables, because it is blessed with good wind and good solar radiation.

We expect the cost of renewable energy to progressively decrease, and Vietnam is very well positioned to capture a huge amount of these resources. This is the real “oil” of Vietnam, and is where the country should invest more in terms of cost competitiveness. It is a very fortunate coincidence that you have a well-established industry, especially in offshore engineering. This leads me to think that Vietnam is going to be, in the near term, if things go well, a regional power when it comes to offshore wind, because it can capture most of the benefit not just from generating power, but also from manufacturing the components in the country. So there is a double benefit in growing a local supply chain and also managing to get clean, affordable, and available power from resources.

The domestic market was relying on local loans to finance small-scale renewable energy projects. Now, as the technology becomes more complex and requires more capital, this is not enough to scale up the renewable energy system. So Vietnam needs to attract more international capital, about $130 billion by 2030, 90 per cent of which has to come from private capital.

To do that, Vietnam needs to provide guarantees to international investors: that they can invest safely, extract dividends, receive fair tax treatment, and resolve disputes in international forums. It is also important to ensure an appropriate level of returns for investors who take risks in a still immature regulatory framework for large-scale renewable energy.

Grid infrastructure remains a constraint on renewable energy expansion to the extent that there are physical bottlenecks. There needs to be more capacity and more battery storage, and this requires the right policies and incentives for both infrastructure and generating assets. We expect upcoming policies to provide more clarity.

Another important element is pricing mechanisms. This is still at an early stage, and the right mechanisms for renewable energy are not yet fully developed. We have seen what happened in the past with feed-in tariffs. The hope is to learn from that and move toward more dynamic and risk-mitigated pricing mechanisms.

Copenhagen Infrastructure Partners has been here for many years, and this point in time feels like a moment of truth. There is a new government, new ambition, and some policy development over the last year.

If Vietnam maintains the pace and keeps the focus on shifting the energy system from carbon-based and hydrocarbon-based sources to renewable energy with battery storage, then it will see a completely different future in the near term.

Mr. Nguyen Phan Dinh, Vietnam Market Director at EDP Global, Head of EuroCham’s Energy Working Group

European businesses can make significant contributions to Vietnam’s energy transition in three main areas. First, their experience in policy and legal frameworks. With over 30 years of renewable energy development, Europe has accumulated a solid foundation, from establishing grid standards and carbon pricing mechanisms to liberalizing the electricity market. Through organizations like EuroCham, the European business community also contributes ideas, promotes reforms, and improves the investment environment.

Second, their system integration capabilities and technical expertise. European countries have extensive experience operating energy systems with a high proportion of renewable energy, particularly in managing the intermittent nature of power sources such as wind and solar. These are practical capabilities that European businesses can transfer to and support Vietnam with.

Third, their abundant green capital. When projects achieve financial viability, European banks and financial institutions are ready to provide significant funding to the Vietnamese market.

A prerequisite for attracting this capital flow is policy consistency and the stability of the legal framework. Changes that could reverse previous commitments, such as retroactive collection mechanisms, will directly affect investor confidence. Meanwhile, confidence is a key factor, especially since renewable energy projects typically have a lifespan of 10-20 years.

In the current context, Vietnam identifies renewable energy as a strategic direction to ensure energy security. However, to realize this goal, in addition to technological investment, building a stable and predictable long-term legal framework is crucial to strengthening confidence and attracting large-scale investment.

Ms. Anna Gibson, Climate Counsellor at the British Embassy in Vietnam

We saw the signing of a credit agreement for grid transmission infrastructure, aimed at enhancing transmission capacity and integrating renewable energy. Alongside this were a loan agreement for a hydropower expansion project and the breaking-ground ceremony for the Bac Ai pumped-storage hydropower project. These are all significant milestones. These advances demonstrate how international public financing can be used to drive the next wave of energy transition projects in Vietnam, while also paving the way and facilitating deeper private capital participation in the market.

Alongside these asset projects, we also witnessed the signing of financing agreements within the framework of the Just Energy Transition Partnership (JETP) over the past year. These include green financing packages, such as a $200 million grant for energy transition between the European Investment Bank (EIB) and Techcombank, as well as a $350 million green investment package from VPBank with support from development finance institutions within the International Partners Group (IPG), including the UK, Canada, and Japan.

Clearly, there has been progress and momentum for the JETP, but much remains to be done. Many agreements are underway, and technical assistance is in the works. A crucial part of the JETP is how to effectively combine tools - from technical assistance, development finance, public finance to private finance - to create synergistic, catalytic impacts and drive a substantive transformation of Vietnam’s green, clean, and sustainable energy system.

VET -Vietnam Economic Times

Vietnam Economic Times April, 13 2026

Wed, 15 Apr 2026 08:30:00 GMT

Vietnam Economic Times Issue 452 | Monday, April 13 2026

Dear readers,

The 16th National Assembly, during its inaugural session that began on April 6, elected top leaders of the State apparatus or approved the appointment of Deputy Prime Ministers, Ministers, and other members of the new cabinet for the 2026-2031 term. Party General Secretary To Lam was elected as State President, Politburo Member and Chairman of the Party Central Committee’s Organization Commission Le Minh Hung as Prime Minister, and Politburo Member and Chairman of the 15th National Assembly Tran Thanh Man as Chairman of the 16th National Assembly. The new cabinet comprises Prime Minister Le Minh Hung, six Deputy Prime Ministers, and 17 Ministers and heads of ministry-level agencies.

The completion of the new State apparatus, shortly after the 14th National Party Congress, creates new momentum for national development, right from the first year of the five-year socio-economic development plan (2026-2030) adopted by the Party Congress.

Vietnam’s economy has firmly stood its ground in the face of many external fluctuations resulting from the conflict that erupted in the Middle East on February 28, recording positive performance in the first quarter of the year.

According to the government report supplementarily assessing the results of the implementation of the socio-economic development plan for 2025 and implementing the plan for 2026, presented by Prime Minister Le Minh Hung on April 9 at the first session of the 16th National Assembly, the macro-economy is basically stable, inflation is under control, and major economic balances have been ensured, with quarterly GDP growth estimated at 7.83 per cent; the highest level for a first quarter in 16 years, since 2011.

The government report further noted that all three economic sectors grew well - agriculture by 3.58 per cent, industry and construction by 8.92 per cent, and services by 8.18 per cent. Agricultural production remained stable. Industry continued to develop, with the Purchasing Managers’ Index (PMI) reaching 51.2 points in March, marking the ninth consecutive month of expansion above 50 points, while manufacturing and processing increased 9.7 per cent.

Trade and services maintained growth momentum, while Vietnam attracted nearly 6.8 million international visitors, an increase of 12.4 per cent. The construction of socio-economic infrastructure was implemented in a synchronous manner, focusing on key projects such as highways, high-speed railways, airports, and digital infrastructure.

However, Vietnam’s economy still faced certain limitations, inadequacies, and challenges in the first quarter. The macro-economy was significantly affected by adverse external factors. Production and business activities in some sectors encountered a host of difficulties. Traditional growth drivers underperformed, domestic purchasing power was low, and exports still depended heavily on the FDI sector. New growth drivers remain in the early stages of development and could not yield immediate results. The real estate market is undergoing a slow recovery, which poses its own risks. Some administrative procedures remain cumbersome, while online public services are not yet truly convenient for citizens and businesses.

Our Cover Story in this edition therefore focuses on Vietnam’s socio-economic achievements as well as the difficulties and challenges it had to face in the opening quarter of 2026; the first year of implementing the Resolution from the 14th National Party Congress, which set a challenging GDP growth target of 10 per cent or more.

Warmest regards

Dr. CHU VAN LAM
CHAIRMAN OF THE EDITORIAL BOARD

VET-Vietnam Economic Times - VnEconomy

Vietnam’s offshore wind power landscape

Wed, 15 Apr 2026 06:00:00 GMT

Vietnam’s offshore wind power development has picked up pace over recent years on the back of new policy and legal instruments and is set to be a key player in power generation.

Vietnam’s offshore wind power landscape has undergone a notable transformation over recent times. After a prolonged period of near policy stagnation, the industry is now showing clear signs of acceleration, aligned with the targets set out in the revised National Power Development Plan for 2021-2030, with a vision to 2050 (PDP8), alongside National Assembly Resolution No. 253/2025/QH15 on mechanisms and policies for national energy development in the 2026-2030 period.

Specifically, under the revised PDP8, Vietnam aims to achieve a total offshore wind capacity of approximately 6,000-17,032 MW to serve domestic demand, with projects expected to come into operation between 2030 and 2035. Over the longer term, by 2050, total installed capacity is projected to rise to between 113,503 and 139,097 MW, reflecting strong ambitions to position offshore wind as a cornerstone of the national energy system.

Investment barriers

Vietnam is widely regarded as possessing highly-favorable preconditions for offshore wind development, comparable to those of Taiwan (China) 10-15 years ago in the early stages of its industry. On that foundation, the Vietnamese market is increasingly attracting strong interest from international investors, not only in project development but across the entire value chain, from equipment supply and technical services to supporting infrastructure.

However, as highlighted by speakers at the “Offshore Wind in Vietnam: Unlocking Southeast Asia’s Largest Clean Energy Opportunity” discussion session held within the framework of the EU-Vietnam Global Gateway Business and Investment Forum on March 24, policies related to survey licensing, project site allocation, and approval procedures for offshore wind projects in Vietnam remain insufficiently clear and consistent. This lack of clarity has made it difficult to establish a seamless development pathway from early-stage exploration to construction.

Therefore, the situation not only delays investment decision-making but also significantly heightens risk exposure, particularly given that offshore wind projects typically require seven to eight years to progress from early-stage preparation to full commercial operation. The long development timeline means that investors must commit capital well in advance, often without full visibility on future regulatory or market conditions.

For large-scale projects, which can reach capacities of up to 1,000 MW and require total investment of around $4-$5 billion per project, such uncertainty becomes even more critical. Any ambiguity in policies, licensing procedures, or approval processes can disrupt financial planning, complicate project financing, and ultimately undermine investor confidence. As a result, even well-prepared projects may struggle to secure funding, making policy clarity and consistency a decisive factor in attracting sustained international capital flows.

In addition, technical infrastructure and implementation capacity present further challenges to offshore wind development in Vietnam. Currently, the country’s port system, shipyards, and installation fleets remain insufficiently equipped to meet the logistical demands of large-capacity wind turbines and complex offshore structures.

According to Ms. Le Thi Phuong Nhi, Country Manager of Siemens Energy Vietnam, offshore wind development must be approached holistically across the entire value chain. Turbine manufacturing represents only one link, while other foundational elements, such as port infrastructure, logistics systems, and offshore technical services play equally critical roles in ensuring project viability. “Though Vietnam already has a relatively developed port system, it still requires upgrades to meet the specialized technical requirements of the offshore wind industry,” she emphasized.

Similarly, Mr. Alessandro Antonioli, CEO of Copenhagen Offshore Partners and Senior Representative of Copenhagen Infrastructure Partners in Vietnam, pointed out that one of the major bottlenecks lies in the capacity of the power grid. Offshore wind power development is not limited to generation but also requires large-scale investment in and upgrading of transmission infrastructure. Meanwhile, Vietnam’s power grid planning and investment progress have yet to keep pace with the rapid expansion of power generation. Without timely upgrades, even well-prepared projects may face risks of curtailment or delays in grid connection, directly affecting investment efficiency.

Mr. Antonioli noted that while the policy framework is gradually improving, not all investors are ready to enter Vietnam’s offshore wind market under existing conditions. Unless these issues are addressed systematically through policy reforms, infrastructure investment, and targeted capacity building, the pace of offshore wind development may fall short of the ambitious targets set out in the revised PDP8.

Ensuring clarity

In order to attract foreign investment, Vietnam needs to establish a policy and market ecosystem that is transparent, stable, and highly predictable, thereby fostering long-term investor confidence. In addition to refining the legal framework and upgrading infrastructure, investors particularly emphasize the importance of “strategic partnerships” between domestic and international enterprises in offshore wind development.

For foreign investors, this is not merely a process of technology transfer followed by disengagement. Rather, it should be structured as a long-term collaborative relationship in which all parties participate and share value throughout the entire project lifecycle. “Such cooperation can begin with planning and plant design, extend to supply and manufacturing, followed by transportation and logistics solutions, and continue through pre-assembly, installation, commissioning, and ultimately operations and maintenance,” Ms. Nhi explained.

Adding a practical perspective, Mr. Antonioli suggested that several core conditions must be ensured from the outset for offshore wind projects in Vietnam to be implemented successfully.

In particular, offshore wind power projects must be designed to be sufficiently “bankable,” meaning they meet the necessary criteria to attract financial institutions. This requires clear allocation of roles and responsibilities among stakeholders, particularly the power purchaser, along with appropriate financial guarantee mechanisms, which may involve domestic banks or State-backed institutions. At the same time, a transparent and stable pricing mechanism is also essential to build investor confidence.

Moreover, offshore wind development in Vietnam demands a fundamentally different and more structured, long-term, industry-building approach. This includes synchronized investment in infrastructure, especially port systems (notably in northern Vietnam), as well as the development of a capable domestic supply chain to support sustainable industry growth. “If the Ministry of Industry and Trade, along with State-owned enterprises and private developers, can come together under such a clear strategic direction, it will be entirely possible to establish appropriate contractual frameworks, not only for pioneering projects but also to lay the foundation for a fully-fledged offshore wind industry,” Mr. Antonioli emphasized.

In addition, Mr. Antoine Croize, Country Manager of Vestas Vietnam, underscored that a stable and predictable policy framework is a prerequisite for foreign investors to formulate long-term plans and operate effectively. Vietnam must continue to enhance market transparency and predictability, particularly by clarifying what can be realistically implemented. “Many countries have set highly-ambitious targets for offshore wind power but failed to realize them,” he said. “Therefore, establishing a clear and feasible development roadmap, accompanied by a concrete legal framework, will be the decisive factor in turning Vietnam’s offshore wind ambitions into reality.”

Offshore wind development must be approached holistically across the entire value chain. Turbine manufacturing represents only one link, while other foundational elements, such as port infrastructure, logistics systems, and offshore technical services, play equally critical roles in ensuring project viability.

Ms. Le Thi Phuong Nhi, Country Manager at Siemens Energy Vietnam

VET-Phuong Nhi

For effective energy transition

Wed, 15 Apr 2026 02:30:00 GMT

Experience from the EU shows that an effective energy transition requires a synchronized set of factors, including a stable policy framework, strong technical capacity, and the ability to mobilize financing.

Under Prime Ministerial Decision No. 458/QD-TTg of March 23, 2026, an updated implementation plan for the Political Declaration on establishing the Just Energy Transition Partnership (JETP) has been approved, with a focus placed on coordinating with international partners to mobilize resources for JETP projects.

The approval of the plan not only reaffirms Vietnam’s commitment to energy transition and its net-zero emissions target by 2050, but also highlights key challenges related to mobilizing international resources, improving policy frameworks, and accelerating project implementation. These issues were also emphasized by experts, policymakers, and international partners at the “JETP Energy Transition: A Key Platform for Policy Dialogue and Joint Projects” session held within the recent EU-Vietnam Global Gateway Business and Investment Forum.

Policy as a foundation

Sharing strategic directions, Mr. Dao Duy Anh, Deputy Director General of the Department of Innovation, Green Transition and Industrial Promotion at the Ministry of Industry and Trade (MoIT), noted that energy transition, green growth, and the circular economy are consistent priorities of Vietnam’s Party and government, especially in recent years as the country works toward the net-zero commitment it made at COP26. “There are many solutions, including participation in international initiatives such as the JETP,” he said.

Since joining the JETP in 2022, Vietnam approved a financial mobilization mechanism in 2023 and has actively pursued regulatory reforms to address bottlenecks. The Politburo issued Resolution No. 70 on ensuring national energy security to 2030, with a vision to 2045, outlining a transition toward renewable energy, reducing reliance on fossil fuels, and supporting environmental protection and economic stability. “Amid current challenges in fossil fuel supply, this direction has proven to be appropriate,” he emphasized.

To institutionalize these policies, the National Assembly and government have issued additional resolutions, while the MoIT has proposed amendments to the Law on Electricity and regulations on Direct Power Purchase Agreements (DPPAs), as well as mechanisms to receive JETP funding.

As a result, over the past five years, Vietnam has experienced one of the fastest renewable energy expansions globally, reaching about 23 GW of installed capacity as of the end of 2024, making it a leader within ASEAN.

However, Mr. Nguyen Phan Dinh, Vietnam Market Director at EDP Global and Head of EuroCham’s Energy Working Group, noted that coal still accounted for around 50 per cent of electricity generation in 2024, indicating significant space for transition and investment opportunities. He highlighted that the first opportunity lies in political commitments, such as the Prime Minister’s pledge to achieve net-zero emissions by 2050 at COP26. “This is a clear commitment, creating momentum for building a policy framework and paving the way for investment,” he said.

The next opportunity is development planning. Specifically, the revised National Power Development Plan VIII (PDP8) has set very ambitious targets for renewable energy. To realize these goals, Vietnam needs to mobilize some $130 billion in capital for the 2031-2035 period. “I hope that about 20 per cent of that will be allocated to the power grid, with the remainder for renewable energy sources, and this represents a significant opportunity,” Mr. Dinh added.

Regarding participation in the JETP, the MoIT, along with international partners, has reviewed and selected 44 projects that meet JETP criteria. However, Mr. Duy Anh said that after more than two years, only three projects have received funding from JETP, with capital exceeding $700 million, while the remaining projects are being considered for funding and implementation in the near future.

“To accelerate the implementation of the JETP in the coming period, efforts are needed not only from the Vietnamese Government but also from partners participating in the JETP and the governments of countries interested in Vietnam’s energy transition,” he added. “We are committed to continuously improving policy mechanisms to remove bottlenecks in the implementation process, and to finding and developing projects that meet JETP criteria in order to support more projects in the time to come.”

Financing and technical support

Mr. Do Duc Tuong, a JETP Energy Project Development Specialist at the United Nations Development Programme (UNDP) Vietnam, believes that one of the major bottlenecks in the implementation of the JETP in Vietnam is the lack of resources for new projects, especially those without precedent. Therefore, in addition to traditional bank credit, the establishment and effective operation of technical assistance funds play a crucial role.

Data reveals that of the total of $15.5 billion committed by the JETP’s international partners, approximately $300 million is specifically allocated to technical assistance, with allocation depending on the priorities of each partner. To date, about 80 per cent of bilateral cooperation projects have been implemented, with the remainder in the preparation and funding connection stages.

Sharing the same view, Ms. Alice Carr, Executive Director for Public Policy at the Glasgow Financial Alliance for Net Zero (GFANZ), noted that technical assistance resources are still not being effectively utilized. She argued that many projects might be unsuitable if they retain their original models, but could become viable if restructured, for example, by adopting a DPPA or receiving support for feasibility studies in line with international standards. “Vietnamese businesses have strengths in attracting capital, but still need to improve their technological and project implementation capabilities to more effectively utilize technical assistance resources,” she added.

From an international finance perspective, Mr. Stephan Opitz, Member of the KfW Management Board for Asia and Europe, said international experience shows that providing credit lines accompanied by technical assistance is a useful tool. These facilities are typically geared toward specific sectors, with clear requirements regarding standards and technology. “However, for commercial banks, this is still a relatively new area, requiring technological assessment capabilities and a team of specialized experts,” he added. “Given the relatively low profitability of loans to small and medium-sized enterprises, banks may be hesitant, but consolidating multiple loans and providing technical support will help reduce risk and expand access to capital for the private sector.”

Systemic approach

Vietnam’s energy sector is a focus of investment. “To date, we have committed approximately €1 billion ($1.15 billion) to transmission, distribution, and power generation projects, primarily in collaboration with EVN [Vietnam Electricity],” he said. “However, the key is not just capital, but a systemic approach. We are not only financing but also promoting a systemic approach to the transition to renewable energy, something we are also doing in many other countries.”

A prime example of KfW’s investments in Vietnam is the Bac Ai pumped-storage hydropower project, a key component of this transition. This project acts as a form of “battery storage,” balancing the volatility of renewable energy, thus playing a crucial role in the system.

Similarly, the Tri An project is not simply an expansion of a hydropower plant. It will take on the role of supplying peak-load electricity, a task previously handled primarily by coal- and gas-fired power plants. Thus, renewable energy sources such as hydropower can replace and provide this crucial power supply.

Ten years ago, KfW also financed the first wind power project in Vietnam. Another role of KfW is to introduce new technologies into a country, thereby allowing all parties to better understand the costs, risks, and necessary framework conditions to attract private investors later on.

In addition, projects are often implemented through co-financing with multiple partners such as the French Development Agency (AFD), Proparco, Italian partners, and possibly the European Investment Bank (EIB) and the EU, to enhance resources and investment efficiency. “We also particularly appreciate the role of the EU, as the funding provided by the EU has been very helpful in preparing and promoting these investments,” Mr. Opitz said.

Regarding actual investments, he shared insights into mobilizing international capital based on policy-based lending. He suggested that, within a systems approach to energy transition, several directions could be pursued. Firstly, continuing to finance the projects mentioned, and secondly, providing credit to domestic banks, thereby facilitating private sector participation in energy investment.

In particular, the third, and equally important, direction is policy support loans, which KfW has successfully implemented in many countries such as South Africa and Indonesia; key partners in the JETP. In South Africa, from the outset, this model has been combined with infrastructure financing to create a synergistic impact.

According to Mr. Opitz, the essence of policy-based financing is that financial institutions collaborate with the government to develop and agree upon a set of effective policy criteria to promote investment, especially to attract more private capital into the energy sector, as well as to remove bottlenecks in the system.

“The advantage of this approach is the ability to combine experience from real-world projects with knowledge and recommendations from the business sector, thereby bringing policy dialogue into more effective engagement,” Mr. Opitz emphasized. “At the same time, financing is often implemented in the form of co-financing with many large financial partners, creating sufficiently strong resources to promote quality and ambitious policy reforms while integrating experiences from many countries. I believe this could also be an effective direction for Vietnam in the future, leveraging this tool for the energy transition process.”

VET-Ngoc Lan

Digital infrastructure a key element of cooperation

Tue, 14 Apr 2026 09:30:00 GMT

On the sidelines of the EU-Vietnam Global Gateway Business and Investment Forum, representatives from European businesses shared key perspectives on cooperative opportunities in two crucial pillars: green energy and digital transformation...

https://www.youtube.com/embed/ESsYmLxnAxg

Mr. Bruno Sivanandan, Co-chair of the Digital Sector Committee at EuroCham

Digital technology is now pervasive throughout the entire economy. Almost no industry or business can operate without using it. Building robust, reliable, and resilient digital infrastructure - while ensuring connectivity and compatibility between Europe and Vietnam - is therefore a key driver of cooperation between the two sides.

Regarding the role digital technology plays in promoting the energy transition and green growth in Vietnam, I believe that nationwide connectivity coverage is particularly crucial and a prerequisite for deploying new technologies on a national scale, from energy optimization and logistics to agriculture. Many 5G applications and other connectivity technologies are already in place. The ability to share data and optimize operations thanks to digital technology offers significant benefits, and that is why Vietnam needs to continue investing heavily in this infrastructure.

Vietnam has posted impressive growth over recent decades, making it a promising investment destination. Simultaneously, it is experiencing increasing demand for collaboration in connectivity, digital infrastructure, and satellite telecommunications, as these are fundamental to long-term sustainable growth - where new technologies, data, AI, and digital transformation play a central role. Vietnam also boasts mature technology companies like Viettel, VNPT, FPT, and CMC Corporation, contributing to an attractive investment environment.

Ms. Rita Mokbel, CEO of Ericsson Vietnam

Vietnam has significantly accelerated its 5G network deployment over the past 18 months to two years. In just a short period of time, approximately 40,000 base stations have been put into operation, which is a remarkable achievement. This momentum is now being leveraged to move to the next level. Two weeks ago, at the Mobile World Congress in Barcelona, we announced an MoU with Viettel to expand cooperation and support their transition to a Level 4 autonomous network model.

We expect to expand this collaborative model to all telecommunications service providers in Vietnam. Telecommunications networks are becoming increasingly complex, serving not only mobile and data traffic but also expanding to the enterprise sector and critical applications for machinery. This significantly increases system complexity. Autonomous networks therefore offer enormous benefits, especially given Vietnam’s strong AI capabilities. The opportunities are vast. While we need to start strategically, our goal is to deploy autonomous networks for all carriers in Vietnam as soon as possible.

When we talk about 5G, we’re not just talking about technology, but also its impact at the national level. Key 5G applications in Vietnam today focus on crucial sectors that enable the economy to function and compete, such as manufacturing, healthcare, transportation, logistics, and public security. These are all essential sectors requiring high levels of security and absolute real-time performance.

5G opens opportunities for many industries, especially transportation and logistics, including railways and ports. Globally, the railway industry is undergoing a strong shift towards digital operations and comprehensive connectivity. With 5G, railway systems can leverage high reliability and extremely low latency for real-time monitoring, predictive maintenance, and enhanced operational safety, even in congested or emergency situations.

For a country like Vietnam - where many large-scale railway projects are being and will be implemented - this means a safer, more efficient transportation system and a better passenger experience.

Once again, digital transformation is a key pillar in building a strong digital economy. The infrastructure is gradually being completed, and the next step is how technology providers, network operators, the government, and the business community can collaborate to bring the benefits of 5G to all sectors. As mentioned, building a successful ecosystem requires a joint effort from all parties - from clarifying the value to accelerating digital transformation across all industries, in order to maximize the benefits of 5G as well as the investments the Vietnamese Government is making.

Mr. Alessandro Antonioli, Vietnam Country Manager at Copenhagen Offshore Partners

Vietnam is extremely competitive when it comes to the use of natural resources for renewables, because it is blessed with good wind and good solar radiation.

vneconomy-Ngoc Lan

To meet strong electricity demand

Tue, 14 Apr 2026 07:30:00 GMT

Grid infrastructure has a key part to play in catering to the ever-increasing electricity demand amid Vietnam’s energy transformation and ongoing development.

Amid forecasts of continued strong growth in electricity demand in the years to come, at the same time as Vietnam’s power sector accelerates the development of power generation projects it is also stepping up investment in grid infrastructure to enhance transmission capacity, promptly distribute power output, and ensure the safe and stable operation of the system. As demand grows rapidly and the share of renewable energy increases, the role of the grid extends beyond mere “transmission” to become a decisive factor in the system’s ability to absorb and efficiently allocate power across the entire network.

Attracting the private sector

In terms of investment, under the National Power Development Plan for 2021-2030 with a vision to 2050 (PDP8), total investment in power generation and transmission grid development in Vietnam during the 2026-2030 period is estimated at approximately $136.3 billion. Of this, around $118.2 billion is allocated for power generation and $18.1 billion for power transmission grids. With more than 1,000 power transmission grid projects expected to be implemented during this period and total capital demand reaching roughly $18.1 billion, the investment pressure on national grid infrastructure is substantial.

During the thematic session entitled “National grid and regional connections: The way forward in Vietnam’s trajectory towards net-zero,” held within the framework of the recent EU-Vietnam Global Gateway Business and Investment Forum, Mr. Nguyen Manh Cuong from the Planning and Development Division of the Electricity Authority of Vietnam (EAV) at the Ministry of Industry and Trade (MoIT), noted that of the total $18.1 billion required, approximately $12.9 billion is expected to come from the State sector, while around $5.2 billion, equivalent to nearly 30 per cent of total investment, will need to be mobilized from non-State sources. “This clearly demonstrates the increasingly important role of the private sector and foreign investors in the development of transmission grid infrastructure,” he emphasized.

Meanwhile, investment in the transmission grid is still largely undertaken by Vietnam Electricity (EVN) and the National Power Transmission Corporation (EVNNPT), which maintain an almost monopolistic role in the construction and operation of the high-voltage grid. This reality underscores the urgent need to broaden the participation of other economic actors to meet rising capital demands.

This direction is also aligned with Politburo Resolution No. 70-NQ/TW, which encourages private sector participation in energy projects on the basis of fair competition. Accordingly, the MoIT is expediting the institutionalization of these policies in the draft amended Law on Electricity, focusing on improving capital mobilization mechanisms, simplifying investment procedures to shorten project timelines, and developing technical standards for emerging areas such as smart grids and energy storage systems.

Similarly, the orientation set out in Politburo Resolution No. 68-NQ/TW reaffirms the private sector as a key driver of the economy, further emphasizing the need to create more favorable conditions for deeper private sector participation in the power sector. Mr. Cuong said that with these orientations and solutions, the MoIT is making determined efforts to translate major policy directions into reality, while effectively attracting resources from financial institutions and the private sector. “This will contribute to the development of the transmission grid system, which is critical infrastructure with decisive significance for economic growth, energy transition, and sustainable development,” he went on.

From the perspective of international investors, Ms. Cristina Bergomi, Senior Vice President of GE Vernova, suggested that in order to attract private and foreign investment into Vietnam’s national grid infrastructure, the country needs a clear, phased roadmap designed to gradually expand participation from both domestic and international investors.

Specifically, in the initial phase, transmission grid projects should receive strong government support, including guarantee mechanisms or risk-sharing frameworks, to build early market confidence. This is particularly important in the transmission sector, which is characterized by large capital requirements, long payback periods, and high risk levels. Once confidence is established through pioneering projects, the market will become progressively more attractive to private investors and international developers.

Building on that foundation, in subsequent phases, Vietnam can scale up investment attraction, promote deeper participation from the private sector and foreign investors, and encourage diverse partnership models across the value chain. “In particular, the successful implementation of pilot projects will serve as a ‘proof of concept,’ helping to reduce perceived risks and create a spillover effect for future projects,” Ms. Bergomi noted.

In addition, to enhance the likelihood of success, investors should be involved from the early stages of projects, not only in financing but also in design, technical studies, and operational structuring. Early engagement allows stakeholders to optimize implementation plans, better manage risks, and ensure long-term feasibility. This is also a key factor in transforming the power grid, traditionally dominated by State-owned enterprises, into a more attractive destination for both domestic and international investment capital.

Three core pillars.

Beyond boosting investment, experts also emphasize that improving the quality and operational capacity of Vietnam’s power grid remains a critical priority. Mr. Francesco Comito, Area Manager in South Asia and Far East at CESI, highlighted that the modernization of Vietnam’s transmission system should be built on three main pillars: digitalization, enhanced flexibility, and transformation of the operational model. On this basis, the power system will gradually transition from a traditional alternating current (AC) structure to a hybrid model, in which high-voltage direct current (HVDC) technology serves as the “backbone,” complementing the existing grid.

Under the digitalization pillar, Vietnam should prioritize the development of core technologies to strengthen system monitoring and dispatch capabilities. In this context, supervisory control and data acquisition (SCADA) systems and energy management systems (EMS) are often described as the “brain” of the grid, enabling real-time monitoring and operation, while substation automation based on International Electrotechnical Commission (IEC) 61850 standards can significantly reduce the frequency and duration of outages.

At the same time, the deployment of wide-area monitoring systems will help track the dynamics of the entire grid, laying the foundation for a shift from reactive to predictive operations. According to Mr. Comito, though notable progress has been made, digitalization efforts still need to be accelerated and implemented more synchronously to establish a truly smart grid.

In terms of flexibility, as the share of renewable energy continues to rise, enhancing the flexibility of the transmission system becomes essential. Unlike conventional power sources, wind and solar energy are inherently variable, leading to continuous fluctuations in supply and demand. Without sufficient system flexibility, localized oversupply or grid congestion may occur, resulting in curtailment and reduced investment efficiency.

Regarding the third pillar - the transformation of the transmission model - the role of HVDC systems is particularly emphasized. Given Vietnam’s elongated north-south geography, where renewable energy resources are concentrated mainly in the central and southern regions while major demand centers are located in the north, the power system faces a structural imbalance. In this context, HVDC enables long-distance power transmission with lower losses while enhancing overall system stability.

Looking ahead, the development and mastery of HVDC systems will also provide a foundation for Vietnam to participate more deeply in the ASEAN regional power grid. “Overall, current priorities should not be limited to expanding power grid infrastructure in Vietnam, but more importantly, to building a smarter, more flexible, and more sustainable power system,” Mr. Comito concluded.

VET-Phuong Hoa

A new finance–education model drives British-style boarding school in Vietnam

Tue, 14 Apr 2026 07:05:00 GMT

A newly launched finance–education model is offering a new approach to addressing rising education costs while supporting long-term, sustainable investment in education.

As international education expenses continue to rise amid pressures from exchange rates, inflation, and operating costs, long-term financial planning for children’s education is becoming an increasingly pressing concern for many Vietnamese families.

Against this backdrop, Ardingly College Vietnam, in collaboration with Vietnam Prosperity Joint Stock Commercial Bank (VPBank), annouced the launch of “World Ready” Finance–Education solution on April 9.

The solution, that has been exclusively designed for parents of students at Ardingly College Vietnam, allows parents to secure tuition and related costs throughout a student’s academic journey through an initial savings deposit.

Under the scheme, parents make a deposit aligned with their child’s study plan and duration. The interest generated will be then used by the bank to cover tuition fees over time, while the principal remains intact and will be returned upon completion of the programme, along with any accrued interest, depending on the selected terms.

Growing demand for a balanced international education environment

This approach effectively locks in education costs from the outset, reducing exposure to tuition fee fluctuations while enabling parents to take a more proactive approach to long-term financial planning.

Speaking with VnEconomy/Vietnam Economic Times, Mrs. Nguyen Thi Kieu Oanh, Chairperson of Khoi Nguyen Investment Group (KNI), the developer of Ardingly College Vietnam, said the initiative is designed to ensure financial stability for parents throughout their children’s education journey. Locking in costs while preserving and growing capital can provide greater peace of mind, particularly as international education expenses continue to rise.

From an education perspective, the introduction of a British boarding system in Vietnam also reflects a broader trend of diversifying learning options, as the domestic market still lacks fully developed boarding school models.

According to Mrs. Oanh, while boarding education remains relatively new in Vietnam, it is widely adopted in the UK, where parents value not only academic performance but also a holistic development environment.

She noted that boarding programmes are designed to encourage hands-on participation, reduce reliance on digital devices, and limit negative impacts from the online environment. As children are exposed to technology at an increasingly early age, the need for a more balanced and healthy learning environment is becoming more urgent.

A well-structured boarding environment, she added, supports not only academic development but also life skills, social interaction, and independence—factors that are gaining increasing attention among parents.

Broadening access to international education

In practice, finance–education models are not entirely new in Vietnam. In 2019, when establishing the Canadian International School (CIS) in Ho Chi Minh City, KNI introduced a financial package backed by 100 founding parents. Each contributed $50,000, ensuring uninterrupted education for students, with the funds returned upon completion of the programme.

Notably, this initiative was launched during a period of credit constraints in Vietnam, highlighting the role of flexible financial solutions in sustaining education. Previously, most international schools required parents to pay a deposit equivalent to one year’s tuition to secure enrolment.

Compared to earlier models, the “World Ready” package represents a more structured approach with the involvement of a financial institution, helping improve transparency and optimise cash flow. It is particularly relevant for families with multiple children enrolled in international programmes, where financial pressure can be distributed more effectively over time.

Mrs. Nguyen Thi Kieu Oanh, Chairperson of Khoi Nguyen Investment Group (KNI).

Mrs. Oanh also noted that the programme includes a commitment to stabilising tuition fees throughout the study period for a limited number of participants in the initial phase. This helps reduce exposure to market volatility and rising global education costs.

“In an uncertain environment, parents’ biggest concern is ensuring stable financial resources to support their children’s long-term education without disruption,” she said, adding that the model aims to address this gap.

Beyond domestic families, the model also opens up access to international education for children of foreign professionals working in Vietnam. Depending on corporate policies, foreign-invested enterprises (FDIs) can establish savings accounts with partner banks and use these funds to cover tuition fees instead of making annual payments.

This approach not only helps optimise corporate benefit costs but also strengthens companies’ ability to attract and retain high-quality international talent.

Ardingly College Vietnam plans to offer both bilingual and international programmes, with day and boarding options. The school is expected to begin enrolment for the 2026–2027 academic year, while limiting the number of finance–education packages in the initial rollout.

From a market perspective, the emergence of finance–education models such as “World Ready” reflects a growing trend of cross-sector collaboration to meet evolving parental needs. In the longer term, however, the effectiveness of such models will depend on their ability to balance financial flexibility, educational quality, and transparency.

In an increasingly competitive and dynamic international education market, such innovations not only expand options for families but also place higher expectations on service providers from education to finance in building trust and delivering sustainable value.

Guided by the “World Ready” philosophy, Ardingly College Vietnam is committed to the holistic development of students in academics, skills, and character, preparing them for international higher education and to become global citizens in an ever-evolving world.

vneconomy-Nhu Quynh

Vietnam's energy sector seeks qualitative growth

Tue, 14 Apr 2026 04:05:00 GMT

Efficiency and sustainability are the focus as Vietnam energy sector seeks qualitative rather than quantitative growth.

Vietnam’s energy sector has moved beyond a phase of rapid expansion and is entering a period of deep, quality-driven growth. Rather than racing to add capacity, the market is now focused on operational efficiency and sustainability, marking a strategic turning point that will redefine what is considered the “lifeblood” of the economy.

According to the Ministry of Industry and Trade (MoIT), total installed power capacity as of the end of 2025 stood at approximately 87,600 MW. Of this, renewable energy sources (wind, solar, and biomass, etc.) accounted for some 24,453 MW, or 27.9 per cent. These figures indicate that renewable power is steadily establishing itself as a key pillar of national energy security and Vietnam’s commitment to achieving net-zero emissions by 2050.

Clean energy surge

Within the overall power mix, solar energy (both utility-scale and rooftop systems) remains the largest renewable source, with total capacity reaching approximately 17,200 MW as of the end of 2025. However, the most notable shift compared to the pre-2021 period is the strong transition from large-scale solar farms to self-consumption rooftop solar systems.

This shift stems from incentive policies introduced in late 2024 and early 2025, notably Decree No. 135/2024/ND-CP dated October 22, 2024, on rooftop solar for self-generation and self-consumption, and Decree No. 58/2025/ND-CP dated March 3, 2025, detailing provisions of the Law on Electricity on renewable and new energy development. While Decree No. 58 replaced Decree No. 135, it largely retains previous provisions while simplifying administrative procedures and improving accessibility for businesses and households.

Data from the MoIT reveals rapid growth in rooftop solar projects at industrial parks across northern, central, and southern Vietnam during 2024-2025. Total installed rooftop solar capacity at industrial parks has exceeded 3,200 MWp, with some 25 per cent of systems integrated with battery energy storage systems (BESS). Technical potential is estimated at over 40,000 MWp, with around 20,000 MWp likely achievable by 2030.

Notably, BESS integration is becoming a standard requirement in new projects, helping ease grid pressure during peak periods and minimize curtailment. Large-scale storage facilities in Ninh Thuan (now part of Khanh Hoa province) and Binh Thuan (now part of Lam Dong province) have helped address the mismatch between real-time demand and solar generation, allowing solar power to remain effective even after sunset.

Wind power - onshore and nearshore - had reached an estimated 6,000 MW as of the end of 2025. However, offshore wind has yet to see any commercial projects enter into operation, largely due to challenges related to marine spatial planning and survey licensing frameworks. Most large-scale projects remain in early-stage preparation or preliminary surveys. According to the Vietnam Energy Association, offshore wind will be “key” not only to achieving energy self-sufficiency but also to positioning Vietnam as a clean power export hub in ASEAN over the next decade via cross-border transmission lines.

A major driver of renewable energy growth in recent years has been the stable implementation of the Direct Power Purchase Agreement (DPPA) mechanism. The Electricity Authority of Vietnam at the MoIT reported that, as of early 2026, more than 60 DPPA contracts had been signed between clean energy developers (such as TT, BCG, and Trung Nam) and multinational manufacturers (including Samsung, Apple, Heineken, and Google).

The growing preference among large FDI enterprises, particularly in technology and electronics, to use 100 per cent clean energy not only helps them meet international green certification standards but also fosters a more competitive market, reduces pressure on public investment, and alleviates the financial burden on Vietnam Electricity (EVN). The DPPA mechanism has effectively become a magnet for foreign capital inflows into large-scale wind and solar projects.

Unlocking transmission

From a regulatory perspective, the MoIT has identified the socialization of power transmission as a key policy priority for 2026. The operation of the 500 kV transmission line (Circuit 3) from Quang Trach (in Quang Binh, now part of Quang Tri province) to Pho Noi (in Hung Yen province) since mid-2024 has significantly alleviated transmission bottlenecks for renewable projects in central Vietnam and the central highlands.

According to operational reports from the National System and Market Operator (NSMO) and EVN, renewable energy curtailment rates (wind and solar) have dropped sharply, from peaks of 10-20 per cent during 2020-2022 to below 2 per cent by late 2024, thanks to improved transmission capacity.

This progress has strengthened investor confidence in the transparency and efficiency of Vietnam’s power system. Energy experts also agree that the shift from fixed feed-in tariffs to competitive bidding has brought renewable energy prices closer to conventional power costs, paving the way for a more equitable and transparent energy economy.

However, challenges remain. Despite rising installed capacity, the system still requires clearer pricing mechanisms for large-scale BESS to ensure grid stability. There is also a pressing need to accelerate the development of a high-quality domestic workforce to gradually replace foreign experts in operating and maintaining complex offshore wind projects. In addition, the planned launch of a domestic carbon credit market in 2028 will require robust systems for measurement and certification of renewable energy projects.

At this stage, Vietnam’s renewable energy sector has moved beyond its volatile early phase and is entering a period of stable, in-depth development. The combination of flexible government policies, support from industry associations, and sustained FDI inflows is creating a promising green energy ecosystem. At this pace, Vietnam is well positioned to achieve the medium-term targets of the revised National Power Development Plan VIII in 2021-2030, with a vision to 2050 (PDP8), ahead of schedule, laying a solid foundation for a green industrial transformation.

Renewable energy is no longer a stopgap solution and has become a core driver of economic growth, enhancing national competitiveness and reinforcing Vietnam’s credibility in global climate action efforts. While challenges remain, strong government commitment and business alignment are making a clean, self-reliant energy future increasingly tangible.

VET-Huyen Vy

Mixed results of Q1 economy

Mon, 13 Apr 2026 09:30:00 GMT

Q1 economic results were something of a mixed bag, with positives and negatives easy to find as Vietnam enters a new era amid a complex global environment.

The first quarter of 2026 - the opening of what has been described as a new era of the nation’s rise - exhibited both bright spots and areas of concern in terms of Vietnam’s economic performance and provide a basis for assessing prospects in the quarters to come. Results in the quarter can be viewed from several angles.

Strong GDP growth

In terms of GDP, one key bright spot in recent years has been the pace of growth. GDP growth in the first quarter of 2026 ranked among the highest in the opening quarter for the past seven years.

Notably, it not only exceeded the levels recorded in the first quarter of 2020 and 2021, when growth was affected by the Covid-19 pandemic, but also surpassed the first quarter of 2019, prior to the pandemic, as well as the first quarter of 2023, 2024, and 2025. It was lower only than the first quarter of 2022, when growth was partly boosted by a very low comparison base in the first quarter of 2021. This outcome reflected clear signs of recovery, supported by strong determination, effective governance, and the efforts of businesses and the broader population.

The strong growth was even more notable given the conditions under which it was achieved. The comparison base in the first quarter of 2025 was already relatively high, while exports to the US have faced increasing difficulties since the second half of last year due to higher import tariffs.

Growth in GDP has been recorded across sector groups. Industry and construction, the largest segment of the real economy, posted the fastest growth. Meanwhile, the services sector, which absorbs the largest share of labor and capital, also expanded at a rate above the overall average.

Differences in growth rates have led to a positive structural shift. The share of agriculture, forestry, and fisheries continues to decline and remains significantly lower than its share of employment, indicating that workplace productivity in the sector remains the lowest among the three major sectors. This underscores the need not only to raise the share of trained workers but also to accelerate the shift of workers from agriculture to higher productivity sectors such as industry, construction, and services.

The share of employment in industry and construction continued to rise and exceeded its share of GDP, indicating that workplace productivity in the sector is above the national average and the highest among the three sectors. This calls for further improvements in workforce skills, a reduction in reliance on processing and assembly, and faster modernization through the development of the digital economy and high-tech industries such as semiconductors.

The services sector also continued to expand its share and exceeded its contribution to GDP, suggesting productivity above the national average and second only to industry and construction. While this is a positive development, the share of services in Vietnam’s GDP remains significantly lower than in many other countries and continues to be a structural weakness.

Growth quality also improved compared with the same period last year. The Index of Industrial Production (IIP) rose 9 per cent, slightly below value-added growth of 9.01 per cent. Manufacturing grew 9.7 per cent, lower than value-added growth but higher than in the same period of last year, indicating a reduction in intermediate input costs. The Incremental Capital-Output Ratio (ICOR) declined to below 5, reflecting improved investment efficiency.

GDP growth outpaced the increase in the number of employed workers (7.83 per cent vs. 1.3 per cent), resulting in workplace productivity growth of an estimated 6.64 per cent. As investment efficiency and workplace productivity improve, supported by the application and upgrading of technology, the contribution of Total Factor Productivity (TFP) to GDP growth is estimated at around 45 per cent; the highest among the main growth drivers.

From the expenditure perspective, several issues emerged. The growth of asset accumulation was lower than GDP growth (7.18 per cent vs. 7.83 per cent), reducing the accumulation-to-GDP ratio to about 23.7 per cent from 24 per cent a year prior. As accumulation underpins investment, the investment-to-GDP ratio also declined. This is a point of concern, as investment is a key driver of GDP growth, and a lower ratio could make it more difficult to achieve this year’s targets.

Final consumption grew faster than GDP, at an estimated 8.45 per cent. The share of final consumption in GDP increased compared with the first quarter of last year, making it an important contributor to overall growth. Stronger domestic demand played a key role in supporting this expansion.

However, despite the increase in domestic demand (asset accumulation plus final consumption), the goods trade balance shifted from a $3.17 billion surplus to a $3.64 billion deficit.

Concerning inflation signals

Inflation remains a key macro-economic indicator closely linked to market participants, and the first quarter exhibited both positive and concerning signals.

Average CPI rose 3.51 per cent, higher than the 3.13 per cent posted in the same period of 2025 but still considered a positive outcome given stronger inflationary pressure. Cost-push factors have intensified, with price increases occurring in earlier stages of production. There are also emerging signs of imported inflation.

In the broader relationship between production and GDP use, final consumption grew faster than both GDP and in the same period of last year (8.45 per cent compared to 7.83 per cent), while the trade balance shifted from a $3.16 billion surplus to a $3.64 billion deficit. Retail sales of goods and services rose 10.9 per cent, higher than the 9.9 per cent recorded a year earlier, though real growth, excluding price effects, was 7 per cent; slightly lower than previously.

On the monetary side, growth in key indicators slowed compared to the same period last year. Money supply increased by 1.04 per cent against 1.99 per cent, deposits rose 0.44 per cent against 1.36 per cent, and credit grew 2.15 per cent against 2.49 per cent. These developments helped contain inflation.

On the fiscal side, revenue growth slowed, to 11.4 per cent compared to 29.3 per cent in the first quarter last year, expenditure growth accelerated, to 23.1 per cent compared to 11.6 per cent, and the budget surplus narrowed to VND84.9 trillion ($3.27 billion), down from VND99.5 trillion ($3.83 billion).

Psychological factors had a stronger impact than in the same period of 2025. Average gold prices surged sharply, while the USD increased more modestly due to tighter exchange rate management. The relatively stable exchange rate influenced trade flows and contributed to the shift from surplus to deficit.

Q1 trade deficit

A trade deficit was posted in the first quarter of 2026, reversing a trend seen in the opening quarter for the past two years (the first quarter of 2024 saw a $8.7 billion surplus and of 2025 a $3.16 billion surplus, while the first quarter of 2026 saw a $3.64 billion deficit).

Exports in the quarter faced significant difficulties compared to a year earlier. In addition to a relatively stable VND/USD exchange rate, higher US import tariffs and rising import prices weighed on performance. Despite this, exports to the US still generated a large surplus in absolute terms ($39 billion compared to $31.4 billion), while imports from China rose sharply ($50.1 billion compared to $38.1 billion).

The services balance remained in deficit. Compared with the same period last year, export growth slowed (19.2 per cent compared to 21.8 per cent), while import growth also eased (16.9 per cent compared to 18 per cent), resulting in a services deficit of $1.68 billion in the first quarter compared to $1.64 billion last year.

Meanwhile, international tourism continued to recover strongly, with Vietnam welcoming 6.67 million international visitors in the quarter, up 12 per cent year-on-year and marking a new record. Two markets exceeded 1 million visitors, with China contributing more than 1.4 million and South Korea nearly 1.33 million.

Outlook solutions

Based on first-quarter results, including both bright spots and emerging concerns, along with factors likely to influence the economy, what can be expected for Vietnam’s economy in the quarters ahead under more ambitious targets?

GDP

First, GDP indicators remain the top priority for this year and for the broader trajectory of the new era.

Following the pattern observed in previous years, production GDP growth tends to accelerate from the second quarter onwards through to the end of the year, as input factors - including investment capital, labor, technology imports, monetary policy, and fiscal spending - and output factors such as domestic consumption and exports move from initial implementation into a phase of stronger expansion. On that basis, GDP growth is expected to pick up in the second quarter, with the third and fourth quarters potentially reaching double-digit levels.

This outlook could materialize under the influence of several factors. Total social investment is expected not only to increase in scale, reflected in a rising share relative to GDP, potentially reaching 35 per cent, but also to improve in efficiency, as the ICOR declines to below 4.5. Greater emphasis should be placed on channeling capital into productive business activities, rather than speculative assets such as gold, cryptocurrencies, and real estate.

The number of employed workers is expected to rise as unemployment declines. More importantly, workplace productivity growth could remain strong, supported by a higher share of workers in more productive sectors such as industry, construction, and services, as well as by the proportion of trained workers surpassing 30 per cent for the first time.

The contribution of TFP to GDP growth is expected to approach 50 per cent, exceeding the contributions of capital and labor. This will be driven by improved investment efficiency, rising workplace productivity, greater technological adoption, and the expansion of enterprises with higher technological capabilities, alongside the continued development of the digital economy.

An important driver of both economic growth and social welfare is the development of businesses and entrepreneurs. The number of enterprises entering the market in the first quarter exceeded those exiting (96,000 vs. 91,800), pushing the total number of active enterprises nationwide to above 1 million for the first time; a target originally set for 2020 but only now achieved. Continued support for startups and for businesses facing difficulties, to prevent market exit and enable re-entry, remains essential. At the same time, it is important to reverse the declining share of business owners within total employment, which has fallen steadily over the years.

Concerns remain. The investment-to-GDP ratio has for many years exceeded that of asset accumulation, including in periods of budget deficits. This represents a potential risk, particularly as corporate profitability remains low and many enterprises continue to incur losses.

The longstanding issue of reliance on processing and assembly has been widely recognized but improvements remain tardy.

Overall, GDP growth in 2026 as a whole is expected to exceed the 8.02 per cent posted in 2025, but is unlikely to reach the targeted double-digit level.

Inflation

Inflation remains a key concern. From a conceptual standpoint, the view that inflation is not driven by monetary factors is fundamentally flawed. At its core, inflation reflects a depreciation of currency - when money supply exceeds goods supply. Monetary policy affects not only inflation but also growth, requiring a balance between tightening to control inflation and easing to support expansion.

To achieve higher GDP growth, policymakers may aim to increase the investment-to-GDP ratio. However, any move toward monetary easing must be carefully calibrated in light of current economic conditions. A key issue is the relationship between the scale and growth of money supply and the corresponding scale and growth of GDP.

A significant concern is the allocation of capital into speculative assets such as gold, real estate, and cryptocurrencies. While this has so far primarily driven price increases in those markets, any correction could spill over into goods and services, creating broader inflationary pressures. Gold prices have doubled or tripled since mid-2020, while real estate prices have more than doubled since mid-2022, with the upward cycle already lasting four to six years.

Cryptocurrencies remain highly volatile, gold prices have diverged significantly from global levels, and stock markets are vulnerable to speculation and market manipulation.

Cost-push pressures are also building. Though price increases in earlier stages of production have not yet fully transmitted to consumer prices, they are likely to do so over time through the production and distribution chain.

Imported inflation is another major risk, particularly as global prices rise and higher US tariffs drive up import costs.

Balance of payments

The balance of payments warrants close attention. Vietnam has recorded continuous trade surpluses for decades. While this provides a strong foundation, it also presents new challenges arising from domestic structural weaknesses and an evolving global environment.

One of the most prominent constraints is the continued reliance on processing and assembly, which persists in both the domestic and foreign-invested sectors. This not only limits national income - with gross national income remaining around 95 per cent of GDP - but also contributes to rising imports. The trade surplus has been narrowing in recent years and is expected to decline further in 2026, with the first quarter already in deficit. The ratio of trade surplus to total exports has also fallen sharply.

Exports have largely depended on the foreign-invested sector, while the domestic sector continues to run significant deficits. Improving export performance requires addressing structural weaknesses, particularly low workplace productivity and competitiveness that still relies heavily on low labor costs. The gap between purchasing power parity and the official exchange rate remains large, exceeding 3.5-times.

Exchange rate policy remains a critical lever. While depreciation could support exports, it would also raise import costs, increase inflationary pressure, and create risks related to external debt and trade disputes.

Though the exchange rate rose significantly last year, it remained relatively stable in the first quarter of this year. Import prices, however, especially for fuel, increased sharply. There is a risk that imports will continue to rise in both volume and value. If prices rise further and the VND depreciates, imported inflation could return, as seen in previous periods.

Overall, the trade balance is likely to weaken further this year and could shift into a full-year deficit. Meanwhile, the services balance is expected to remain in deficit. This combination will directly affect GDP growth from both the production and expenditure perspectives and should be viewed as a significant warning sign.

The services deficit has persisted for years, often reaching double-digit levels. It is most pronounced in transport and other services, including insurance, finance, and government services. Even tourism, which previously generated surpluses, has in some years shifted into deficit.

The financial account, meanwhile, has remained in surplus, driven mainly by FDI, while other forms of investment have often recorded negative balances.

VET-Do Van Huan

Vietnam's Travel Landscape 2026

Mon, 13 Apr 2026 07:30:00 GMT

Vietnam has now restored visitor and domestic travel numbers to pre-pandemic levels, but structural weaknesses in foreign source markets, value creation, and branding threaten the long-term resilience of its tourism industry.

Vietnam’s tourism industry has firmly moved beyond its post-pandemic recovery phase, with international arrivals surpassing pre-Covid levels and domestic travel numbers continuing to surge. The country welcomed more than 21 million foreign visitors in 2025, marking a full restoration of tourism demand after years of disruption. Yet beneath the strong headline numbers, deeper structural questions are beginning to emerge about how sustainable this growth truly is.

A new industry analysis, “Vietnam Travel Landscape 2026: From Recovery to Resilience,” published by The Outbox Company, argues that the industry has entered a critical transition point. While the recovery in visitor numbers has been impressive, the report suggests that Vietnam’s tourism model remains heavily dependent on a narrow group of source markets, price competitiveness, and policy-driven demand rather than strong brand differentiation or high-value travel experiences.

According to the report, the challenge facing Vietnam’s tourism industry in the years ahead is no longer about restoring growth, but about managing it more strategically. As the country moves into the next phase of development, policymakers and businesses alike will need to focus on diversifying markets, improving visitor spending, and strengthening the destination’s global brand in order to build a more resilient tourism economy.

Recovery completed

Vietnam’s tourism industry entered 2025 with strong momentum as international travel demand continued to rebound and domestic tourism remained resilient. By the end of the year, the country had welcomed an estimated 21.1 million international visitors, exceeding the 2019 pre-pandemic benchmark by nearly 20 per cent and confirming that the recovery phase had effectively been completed.

However, the report notes that this milestone also marks the beginning of a new phase for the industry. The rapid growth seen in the early years after borders reopened is now giving way to a more normalized expansion pattern. Monthly year-on-year growth in international arrivals remained positive throughout 2025 but showed increasing variability as the effects of the recovery cycle began to fade. In other words, the surge in visitor numbers was driven less by new demand and more by the final stages of restoring pre-pandemic travel patterns.

Much of this rebound was concentrated in Northeast Asian markets that have long dominated Vietnam’s inbound tourism. The reopening of China played a particularly important role, helping drive a sharp increase in arrivals and restoring a familiar structure to Vietnam’s tourism demand. By 2025, China once again became the country’s largest source market, while South Korea continued to rank among the top contributors.

Despite the impressive recovery in overall volumes, the report underlined that Vietnam’s inbound tourism structure has changed very little. The same core markets continue to account for the majority of arrivals, with the Top 5 representing roughly 55 per cent of total international visitors. This suggests that the post-pandemic rebound occurred largely within Vietnam’s existing market “comfort zone” rather than through significant diversification into new markets.

As a result, the country’s tourism growth in 2025 reflected a transition from recovery-driven expansion to what the report describes as “structurally normal” growth - a stage in which the industry has regained scale but still faces underlying constraints that could shape its long-term competitiveness.

High volume, limited value

While Vietnam’s tourism industry has successfully restored visitor numbers, the report suggests that the recovery has been driven largely by volume rather than by higher value creation. Tourism revenue has risen alongside arrivals, but spending per visitor has not increased significantly enough to signal a shift towards higher-yield tourism.

Tourism revenue stood at some $39 billion last year, up from about $30 billion in 2019. However, this increase has largely mirrored the rise in visitor numbers rather than reflecting a structural improvement in visitor spending. In contrast, during the early recovery period in 2023, tourism receipts nearly returned to pre-pandemic levels despite significantly fewer arrivals, suggesting that travelers at the time were spending more per trip. As arrivals accelerated in 2024 and 2025, revenue continued to grow but without a comparable increase in value density.

This trend highlights what the report describes as a volume-led recovery, where growth is driven by increasing visitor numbers rather than by premiumization or higher-quality tourism experiences. Without stronger growth in spending per traveler, the overall economic contribution of tourism risks remaining limited despite record arrivals.

At the same time, domestic tourism has emerged as a crucial stabilizing force for the industry. In both 2024 and 2025, tourism revenue was split almost evenly between international and domestic sources, illustrating the dual structure of Vietnam’s travel economy. Domestic travelers generated roughly 43-51 per cent of total tourism receipts, providing a steady stream of demand even as international markets fluctuated.

Domestic travel has also grown significantly in scale. The number of domestic trips last year reached approximately 135 million, representing a 59 per cent increase compared with 2019. This growth reflects a shift towards normalized, high-frequency travel behavior among Vietnamese consumers, with short getaways and self-planned trips becoming increasingly common.

Despite its importance in stabilizing the industry, domestic tourism is not a major driver of high-value growth. Most domestic trips remain relatively affordable, with the majority of travelers spending less than VND20 million ($765) per trip. As a result, the strength of the domestic market lies in its scale and predictability rather than in its spending power.

From recovery to resilience

As Vietnam’s tourism industry moves beyond the recovery phase, the report argues that its main challenge is no longer restoring demand but managing structural risks. The strong rebound in visitor numbers has revealed several vulnerabilities, particularly the heavy concentration of source markets and the limited depth of Vietnam’s destination brand.

One of the most significant risks is, as mentioned, market concentration, leaving the industry exposed to economic fluctuations, policy changes, and geopolitical tensions in a limited number of markets.

The report also highlighted the role of policy-driven demand. Measures such as visa facilitation have played an important role in accelerating tourism recovery, but they have also underscored how sensitive visitor flows can be to regulatory changes. When growth depends heavily on visa policies or other administrative incentives, demand can become fragile and easily reversible if conditions change.

Another structural challenge lies in the strength of Vietnam’s destination brand. Though the country enjoys relatively high levels of awareness and appeal among regional travelers, this recognition does not always translate into strong advocacy. The report notes that Vietnam’s destination Net Promoter Score (NPS) stands at 24.2; significantly lower than regional competitors such as Thailand and Singapore, whose scores exceed 50. This suggests that while many visitors are satisfied with their experience, fewer are motivated to actively recommend the destination to others.

According to the report, the next phase of tourism development will require Vietnam to shift from a recovery-driven model towards one built on greater resilience. This includes diversifying source markets beyond the traditional Northeast Asian core, strengthening the country’s destination brand through improved service quality and distinctive experiences, and placing greater emphasis on higher-value tourism offerings rather than simply increasing arrival numbers.

Domestic tourism, which has proven to be one of the industry’s most reliable stabilizers in recent years, may also play a strategic role in this transition. The report suggests that the domestic market can serve as a testing ground for new tourism products, pricing strategies, and service improvements before these innovations are scaled up for international visitors.

As the report states, “Vietnam needs to transition from a volume-led recovery to a balanced, diversified, and value-driven approach to growth.” Without such a shift, it warns, the country risks continuing to experience “high tourist arrivals with low resilience.”

VET-Linh Tong

Vietnam’s labor market amid ongoing global volatility

Mon, 13 Apr 2026 00:00:00 GMT

Ms. Sinwon Park, Director of the International Labour Organization (ILO) Office in Vietnam, spoke with Thu Hang about Vietnam’s labor market amid ongoing volatility and why businesses must move beyond relying on low labor costs.

How would you assess Vietnam’s labor market in the current context?

The ILO’s latest brief, “Jobs in Trade and Global Supply Chains (GSCs) in Vietnam,” shows that Vietnam now has the largest number of GSC-related jobs in Southeast Asia, with more than 20 million positions, accounting for over a quarter (27.1 per cent) of the region’s total GSC workforce.

Vietnam has also made significant structural progress, with millions of workers shifting from traditional agriculture to industry and services. This transition has been supported by strong institutional reforms, including amendments to the Labor Code 2019, the Law on Social Insurance 2024, and the revised Law on Employment 2025, aimed at strengthening the legal framework for employment support and social protection.

Ms. Sinwon Park, Director of the International Labour Organization (ILO) Office in Vietnam (Source: ILO Vietnam)

However, deeper integration also brings substantial external challenges. Vietnam’s labor market is highly exposed to global volatility. Recent ILO analysis shows that 76.8 per cent of GSC-related employment depends on demand from just six major partners: the US, China, the EU, Japan, South Korea, and ASEAN.

Domestically, demographic shifts pose long-term risks. Vietnam’s “golden population” period is gradually ending as the workforce ages. The median age reached 41 in 2024, while the share of young workers aged 15-24 fell sharply, to 9.5 per cent. Informal employment also remains widespread, leaving many workers without adequate protection during economic downturns.

Against this backdrop, what factors are shaping Vietnam’s labor market?

First, digitalization is rapidly expanding beyond the IT sector and becoming integral across the economy, particularly in e-commerce, fintech, and manufacturing. Digital skills are increasingly essential for most jobs. While this transformation has strong potential to boost productivity and business efficiency, it also requires a workforce capable of operating within integrated digital ecosystems.

Second, automation and robotics are expected to accelerate, especially in labor-intensive sectors such as textiles and garments, electronics assembly, and parts of agriculture. Automation can enhance efficiency and help Vietnam move up the value chain, but it will reduce demand for repetitive, low-skilled jobs. This creates an urgent need for large-scale reskilling and upskilling to ensure workers are not displaced and can transition into higher-value roles alongside new technologies.

Third, the green transition is emerging as a key driver of future employment. Though green jobs currently account for only about 3.6 per cent of total employment, demand is expected to grow rapidly as Vietnam expands renewable energy, sustainable production, and climate-resilient infrastructure. Globally, green skills shortages are projected by 2030. This presents Vietnam with both a challenge and a strategic opportunity to equip its workforce with the skills needed to support green growth and strengthen its position in global supply chains.

Finally, demographic change is beginning to shrink Vietnam’s young workforce, requiring businesses to invest in lifelong learning, age-friendly workplaces, and technologies that help older workers remain productive.

What should Vietnamese businesses do to build their competitive advantages?

To achieve sustainable competitiveness, Vietnamese enterprises must move beyond a narrow focus on low labor costs and reposition themselves as centers of high productivity, innovation, and responsible business practices. The traditional low-wage model is increasingly unsustainable as Vietnam aims to become a high-income country by 2045.

Improving productivity through human capital development is essential. Competitive advantage today depends less on wage levels and more on workforce skills, adaptability, and innovation capacity. Businesses should invest systematically in reskilling and upskilling, particularly in technical fields, STEM [Science, Technology, Engineering, Mathematics], and emerging green skills.

Companies should also move towards productivity-linked wage systems, where efficiency gains and technological upgrading translate into fair wage growth, enabling workers to share in the benefits of innovation.

Strengthening industrial relations and working conditions is another pillar of sustainable competitiveness. Stable, safe, and inclusive workplaces are more resilient and better able to attract and retain talent. Effective social dialogue and collective bargaining can help align the interests of workers and employers, reduce workplace conflicts, and improve decision-making on wages, working hours, gender equality, and non-discrimination. Occupational safety and health should be treated as a strategic priority, not merely a legal obligation. Investing in safe and healthy workplaces enhances productivity and protects workers in higher-risk sectors.

Demonstrating strong corporate social responsibility and compliance with international labor standards has also become a prerequisite for participation in global supply chains. As Vietnam deepens integration and implements new-generation free trade agreements such as the Comprehensive Agreement from Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EUVFTA), compliance with international commitments, including labor provisions, increasingly serves as a “license to operate.”

Businesses must eliminate child labor, forced labor, and discrimination, while upholding fundamental principles and rights at work. Expanding access to social insurance and unemployment insurance, and providing adequate income and health protection, are essential to building a stable and committed workforce. At the same time, adopting environmentally-sustainable production methods, supporting green job creation, and ensuring a just transition will help Vietnamese enterprises remain competitive in the global shift towards sustainable development.

What are the ILO’s priorities in expanding social protection and promoting sustainable employment in Vietnam?

The ILO’s priorities in Vietnam focus on strengthening social protection systems while supporting a labor market that can adapt to rapid economic, technological, and environmental change. Expanding social protection coverage and promoting sustainable employment are seen as mutually reinforcing goals.

A top priority is supporting the development of a multi-tiered, inclusive, and shock-responsive social protection system tailored to Vietnam’s socio-economic context. This includes promoting a nationally defined social protection floor in line with ILO Recommendation No. 202 and progressively applying minimum standards across the nine branches of social security set out in ILO Convention No. 102. Such a system is essential to protect workers from income shocks caused by economic volatility, technological disruption, or climate-related risks.

At the same time, promoting sustainable employment means enhancing job quality and resilience, particularly within global supply chains. Ensuring that economic integration translates into decent work is critical for long-term competitiveness and social cohesion.

Another cross-cutting priority is ensuring a just transition for workers affected by digitalization, automation, economic restructuring, and climate change.

By strengthening social protection systems, promoting sustainable and decent employment, investing in skills for digital and green transitions, and advancing social dialogue and labor standards, Vietnam can ensure that economic transformation delivers shared prosperity and inclusive growth, leaving no one behind on the path to 2045.

VET-Thu Hang

Higher requirements on agro exports to the EU

Sun, 12 Apr 2026 07:00:00 GMT

Satisfying new requirements on agro exports to the EU are quite complex but will position exporters to more readily approach other markets.

A report from the Ministry of Agriculture and Environment (MAE) puts Vietnam’s exports of agriculture, forestry, and fisheries products to the EU in 2025 at $9.24 billion, accounting for 13.2 per cent of the sector’s total export value.

Coffee posted the strongest growth among export items, with shipments exceeding 666,000 tons and export value reaching $3.63 billion, up 68.3 per cent in value. The EU accounted for 40.7 per cent of Vietnam’s total coffee export value, maintaining its position as the country’s largest export market for coffee. Notably, coffee exports to key markets such as Germany, Italy, Spain, and the Netherlands all posted impressive growth.

Rising standards

The European Union Deforestation Regulation (EUDR) is increasingly seen as a driver for Vietnam’s agriculture and forestry sectors to accelerate digital transformation, standardize data, and strengthen governance. Meeting EU standards not only helps overcome trade barriers but also creates favorable momentum for Vietnamese products to access other high-end markets more easily.

Exports of Vietnam’s agricultural and forestry products to the EU are expected to continue growing in the years to come. However, Dr. To Xuan Phuc, an expert at non-profit Forest Trends, said this growth trend is no longer simply about expanding market share but is accompanied by increasing pressure for comprehensive transformation in governance, transparency, and sustainable development.

Where businesses previously focused mainly on complying with domestic laws and basic trade regulations, they must now meet a broader set of criteria, including preventing deforestation, reducing carbon emissions, respecting the rights of indigenous communities, and ensuring equality and meaningful participation of smallholder farmers in supply chains. International trade, particularly in the EU, is shifting from price-based competition to standards-based competition.

According to Dr. Phuc, the EU-Vietnam Free Trade Agreement (EUVFTA) has created significant advantages for Vietnamese goods, as tariffs on many agricultural and wooden products have been reduced to zero, strengthening their competitiveness compared with countries that do not have trade agreements with the EU. However, as tariff barriers are gradually removed, technical barriers and compliance costs are becoming increasingly significant.

The EU is now widely viewed as a complex legal system with multiple overlapping regulations, including the EUDR, the EU Timber Regulation (EUTR), and the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) regulation. Among these, the EUDR is considered to have the most far-reaching impact on Vietnam’s coffee, rubber, timber, and wooden product sectors. In May 2025, the EU classified Vietnam as a “low-risk country” under the EUDR, meaning inspection rates of around 1 per cent and significantly simplified control procedures.

Traceability challenges

Mr. Truong Tat Do, an official from the Forestry and Forest Protection Department at the MAE, said there remains a misconception that Vietnamese companies must directly submit reports under the EUDR.

In reality, the legal obligation rests with importers in the EU. However, for partners to fulfill their due diligence responsibilities, Vietnamese businesses must provide complete and accurate information on product origin to EU importers. This means that although domestic companies do not directly submit documentation, they still face significant pressure to ensure transparency and the reliability of their data.

The EUDR sets out two core requirements. First, products must not be linked to deforestation or forest degradation after December 31, 2020. Second, production must comply with national laws, including regulations on land, environment, labor, and the rights of third parties. The regulation does not apply only to production areas but to the entire supply chain, from harvesting and transport to processing and export. If any stage involves legal violations or deforestation after the stated cut-off date, the product will not meet requirements.

Under the latest timeline, the EUDR will take effect on December 30, 2026, for large companies in the EU and on June 30, 2027 for small and medium-sized enterprises (SMEs). The preparation period is therefore limited, while the transformation required is both systemic and long term.

Dr. Phuc said Vietnam’s biggest challenge lies in the fragmented and small-scale nature of production. A farmer may own multiple plots of land, while raw materials can pass through six to seven intermediary layers before reaching processing factories. This structure makes traceability extremely complex, particularly when precise geolocation data must be provided for each shipment.

Another issue is the overlap of forestry land. In some localities, such as Son La in the north and parts of the central highlands, rising coffee prices led to expansion into areas designated as forestry land. Under Vietnamese law, some of these cases may not be fully compliant, while under the EUDR the risk of products failing to qualify for export is clear.

“Before discussing global standards, the most important requirement is compliance with Vietnamese law,” Dr. Phuc said. “There are still areas recorded as forestry land on paper where forests no longer exist in reality, and some forest allocation contracts from earlier programs remain legally valid, creating complications in management and accountability. If these issues are not addressed in a coordinated manner, adapting to the EUDR will face significant obstacles.”

Digital mapping

A major shift under the regulation is the requirement for geospatial data. Companies must provide precise geographic coordinates of production plots, and a closed polygon boundary must also be defined for areas of 4 ha or more. EU authorities will cross-check this data with satellite mapping systems as of December 31, 2020, to assess deforestation risks. This approach shows that the EUDR no longer relies solely on paper documentation but increasingly uses remote sensing technology and digital data for monitoring. Inaccurate or dishonest declarations can be quickly detected when compared with independent systems.

Mr. Pham Ngoc Hai, a remote sensing expert at the Forest Inventory and Planning Institute, said advances in remote sensing and digital transformation are fundamentally changing how information on forests and land use is accessed. Free satellite imagery from the US’s Landsat program has provided continuous data since 1972. While it previously took 16 days to obtain a new image, observation frequency is now significantly higher, enabling near-continuous monitoring.

“Just two or three overlapping satellite images can significantly improve observation capacity,” Mr. Hai said. “Observations generate data, and data produces information that objectively reflects conditions on the ground. For a specific forest plot, it is possible to trace land use history from the 1980s to the present, effectively ‘telling the story’ of how that area has changed over time.”

In practice, field inspections may show that an area has been planted with coffee, but it can be difficult to determine exactly when the crop was established. Satellite data allows analysts to trace backwards in time to determine whether the planting occurred before or after the 2020 cut-off date, and whether the land was previously farmland or forestry land. This capability helps clarify timing, a key factor under the EUDR.

According to Mr. Hai, Western partners do not necessarily require Vietnam to provide every piece of detailed information, as they can retrieve data from independent sources. Exporters only need to provide the coordinates of shipments, while importers can independently verify and cross-check the information. Multiple traceability systems are currently in use; beyond domestic platforms, international partners may build their own databases and compare data from various sources. There is no longer a single source of information.

In this context, data transparency has become essential. If reports differ between stages, external parties can verify the information using scientific data with a high degree of accuracy. Technology and data are reshaping how natural resources are managed and are setting higher transparency standards for the entire supply chain.

To help Vietnam’s agricultural and forestry products deepen their access to the EU market, experts recommend that during the 2025-2027 period the country should prioritize completing GPS mapping of raw material areas, building comprehensive traceability records, and strengthening data governance capacity.

VET-Chu Khoi

Enhancement of legal frameworks for digital technology

Sat, 11 Apr 2026 09:30:00 GMT

The legal framework surrounding digital technology has been boosted significantly in recent times as development continues apace.

Lawmakers enacted a sweeping package of legislation during the 15th National Assembly (NA) term, aimed at building a relatively comprehensive legal framework for the development of digital technology, including the revised Law on Electronic Transactions, the revised Law on Telecommunications, the Law on Data, the Law on Personal Data Protection, the Law on E-commerce, the revised Law on Advertising, the Law on Science, Technology and Innovation, and the Law on Digital Technology Industry Development, along with a range of related legal instruments. Most recently, the NA passed the Law on AI.

Mr. Nguyen Minh Hong, President of the Vietnam Digital Communications Association (VDCA), described this as one of the most intensive waves of policy reform since Vietnam entered the digital transformation era.

Building a legal architecture

At a recent workshop entitled “Enhancing policies and legal frameworks for digital technology development in Vietnam,” Mr. Nguyen Quang Dong, Director of the Institute for Policy Studies and Media Development (IPS), said a comprehensive review shows that Vietnam’s legislative trajectory clearly reflects efforts to keep pace with emerging issues in the digital era through dedicated laws.

He highlighted five particularly new and rapidly-evolving areas: cybersecurity, data, digital assets, AI, and e-commerce. According to Mr. Dong, these are issues that either did not previously exist or were not adequately addressed under the traditional legal system. Vietnam has chosen to draft standalone laws to directly regulate each of these areas.

In cybersecurity, the Law on Cybersecurity was enacted in 2018. At its most recent session, the NA adopted a comprehensively-revised version - the Law on Cybersecurity No. 116/2025/QH15 - which will take effect on July 1, 2026, to meet new requirements arising from the digital environment.

In the data sphere, Vietnam now has two key independent laws. The Law on Personal Data Protection 2025, developed on the basis of the Decree on Personal Data Protection 2023, and the Law on Data 2024, were recently passed by the NA. The latter provides comprehensive regulation of data collection, processing, sharing, and exchange, and sets out provisions for models such as data exchanges. As a result, Vietnam has established a clearly-differentiated legal framework separating personal data protection from broader data governance and development.

For e-commerce, the legislature passed the Law on E-commerce No. 122/2025/QH15 on December 10, 2025, effective from July 1, 2026. The Law is designed to address new issues arising from the rapid growth of e-commerce platforms and online trading. This underscores a clear policy direction: enacting specialized legislation for entirely new segments of the digital economy.

At the same time, several sector-specific laws have been amended to address challenges in the digital environment. Notably, the NA adopted the Law Amending and Supplementing a Number of Articles of the Law on Advertising No. 75/2025/QH15, effective January 1, 2026. The revised Law introduces new provisions governing advertising on digital platforms, clarifies the responsibilities of intermediary platform providers, and, in particular, sets out obligations for celebrities and influencers engaged in advertising on social media.

Entirely new issues such as digital assets and policy experimentation mechanisms have also been formally codified. The Law on Digital Technology Industry Development 2025 explicitly recognizes digital property rights, regulates digital asset transactions, and establishes a legal sandbox framework for emerging technologies.

Balancing risk and growth

On AI, Vietnam is among the early movers in enacting a standalone law on the technology. Mr. Ho Duc Thang, Director of the National Institute of Digital Technology and Digital Transformation at the Ministry of Science and Technology, said the core objective of the Law on AI is to strike a balance between risk governance and development promotion, with greater emphasis placed on fostering AI growth rather than tightening risk controls.

The National Institute of Digital Technology and Digital Transformation was one of the lead agencies involved in drafting the Law on AI. According to Mr. Thang, the law primarily adopts an ex-post oversight mechanism, under which enterprises are responsible for assessing the risk level of their AI systems.

Only a very limited number of particularly dangerous AI systems will be subject to ex-ante review. For example, autonomous vehicles cannot rely solely on self-assessment by enterprises and must undergo independent appraisal by competent authorities. The list of AI systems requiring pre-market review will be issued by the Prime Minister.

“Vietnam’s risk management approach largely relies on ex-post oversight, based on trust that enterprises will comply,” M. Thang said. “However, once that trust is placed, the Law also provides sufficiently strong sanctions.”

Beyond risk governance, much of the remaining content of the Law is devoted to promoting AI development. Notably, it allows AI-related activities to enjoy the highest level of incentives available under existing legal frameworks, including the Law on High Technology, the Law on Digital Transformation, and the Law on Digital Technology Industry Development.

“In other words, wherever preferential policies for AI exist under other laws, AI will benefit at the highest level,” Mr. Thang said. “We are also strongly promoting the sandbox mechanism. As a new technology with inherent risks, AI can benefit from participating in a sandbox, which helps enterprises shorten time to market while also receiving State support and investment during the process.”

The Law also lays the groundwork for the establishment of an AI Development Fund. The fund is intended not only to support research and product development but also to help stimulate the broader AI application market.

Dual-track approach

Alongside the introduction of new laws, Vietnam has also amended and supplemented numerous existing statutes to keep pace with the rapid advancement of digital technology in traditional sectors.

Experts say the country is pursuing two parallel tracks: drafting specialized legislation for entirely new areas of digital technology, while simultaneously upgrading existing laws to adapt to deepening digitalization. Behind this wave of legislation lies an extensive process of policy debate and consultation aimed at identifying an appropriate governance model. The overarching goal is to strike a balance between promoting innovation and enabling business growth on the one hand, and ensuring safety, security, and the protection of citizens’ rights in the digital environment on the other.

The Law on AI offers a case in point. While it establishes clear regulatory parameters, it avoids imposing overly rigid barriers, leaving room for enterprises to experiment, develop, and commercialize new technologies. This reflects what may be emerging as Vietnam’s distinctive model: clear legal frameworks without excessive rigidity. Sandbox mechanisms and dedicated AI legislation have been advanced swiftly yet designed with flexibility in mind, in order to respond to the rapid evolution of digital assets and new business models.

According to Mr. Dong, three overarching factors underpin Vietnam’s digital governance philosophy. The first is sovereignty and national security. The second is human rights. And the third is the imperative to foster innovation and encourage new business models. Legal provisions, he said, must continuously seek to balance and harmonize these three pillars.

“The State has taken a comprehensive approach to refining the legal framework, with more than ten key laws covering cybersecurity, data, telecommunications, digital assets, AI, e-commerce, intellectual property, and advertising,” Mr. Dong said.

However, he also cautioned that significant gaps remain. Many newly-enacted laws still operate largely at the level of principles. In sectors such as finance, healthcare, health technology, and especially AI applications in gene technology, the absence of detailed technical standards and corresponding enforcement capacity could lead to unforeseen consequences.

VET-Bao Binh

Deeper participation in semiconductor value chain

Sat, 11 Apr 2026 02:00:00 GMT

The relentless development of semiconductors offers Vietnam an opportunity in the packaging space.

In 2021, at a time when the Covid-19 pandemic had only recently subsided, many economists were predicting that the global semiconductor market could reach, or even exceed, $1 trillion by 2030. In reality, the market already approached $800 billion at the end of 2025 and is projected to continue growing strongly in 2026, potentially nearing or surpassing the $1-trillion threshold. The period from 2026 to 2030 is expected to witness a major leap forward driven by the AI supercycle, pushing the market well beyond $1 trillion and possibly reaching $1.4-1.6 trillion, under the most recent scenarios.

In that context, advanced packaging is no longer a supporting step but has become a core component in scaling and enhancing semiconductor performance. It is increasingly viewed as a strategic opportunity for Vietnam to participate more deeply in the global semiconductor value chain.

AI supercycle

Ms. Nguyen Bich Yen, Honorary President of the Institute of Semiconductors and Advanced Materials at Vietnam National University, Hanoi (VNU), said the growth momentum of the semiconductor industry over the past five years “comes from new technologies”, and this will remain the case for the time being. She estimated that around 50 per cent of revenue growth is driven by AI, about 30 per cent by electric vehicles and intelligent transportation systems, and the remainder by the Internet of Things (IoT), premium consumer electronics, and, potentially, quantum computing in the future. “The demand for high-performance computing and the processing of massive data volumes is taking the entire semiconductor industry forward,” she noted.

A look at the history of the computer market clearly shows how successive waves of technology have created growth cycles for semiconductors. The first wave began in the 1970s, with mainframe computers pioneered by IBM, followed by minicomputers, personal computers, desktop computing, the internet, mobile internet, and big data. That technological evolution laid the foundation for the emergence and development of AI today.

“AI could not exist without the remarkable advances in integrated circuits, especially the rise of data centers with ever-increasing processing capacity,” Ms. Yen said. “The computing power of processors such as GPUs has grown exponentially, increasing up to ten-fold every decade.”

The semiconductor industry’s record growth is now triggering an unprecedented wave of manufacturing investment. According to the latest World Fab Forecast from SEMI, the global semiconductor industry association, 18 new semiconductor fabs (fabrication plants) began construction in 2025 alone, including 15 300mm fabs and three 200mm fabs. Most are expected to come online in 2026 or 2027, bringing the total number of major new or expanded fabs worldwide to more than 100 by the end of next year.

This expansion will require more than 1 million highly-skilled technical workers by 2030, including design engineers, process technicians, and manufacturing operators, Deloitte has warned in recent analyses.

In terms of capital investment, SEMI forecast that global spending on semiconductor manufacturing equipment will reach $133 billion in 2025, $145 billion in 2026, and a record $156 billion in 2027. Meanwhile, McKinsey estimated total global investment in new fabs could reach roughly $1 trillion by 2030.

Such massive capital spending and enormous demand for talent not only confirm the semiconductor industry’s supercycle but also highlight its deep economic spillover effects, from creating millions of jobs and advancing high-tech industries to reshaping global supply chains.

Focal point

The semiconductor industry has steadily miniaturized transistors - the most fundamental component of every electronic chip - over the last half a century. From micrometer-scale dimensions in the 1960s and 1970s, transistor sizes have continued to shrink, in line with Moore’s Law, and are now approaching the 2-nanometer (nm) node, with mass production expected to begin around 2026. At the same time, chip structures have become increasingly complex. The number of metal layers, once limited to just a few, has now expanded to dozens.

However, experts believe that the further transistor scaling progresses, the more sharply costs escalate. Starting at the 45-nm node, the cost of designing a single chip increases exponentially. At the 5-nm node, design costs can exceed $500 million, while at the 3-nm node they often surpass $900 million for high-end designs.

Meanwhile, manufacturing processes have become far more complex, particularly after transistors transitioned from flat 2D structures to 3D FinFET (Fin Field-Effect Transistor) architectures, requiring extremely precise technical control and sophisticated, expensive machinery.

More importantly, transistor scaling does not benefit every component on a chip equally. While logic and memory blocks can fully exploit advanced technologies to improve performance and energy efficiency, analog circuits, radio frequency (RF) components, and input/output (I/O) interfaces gain little benefit from, and may even be less suitable for, the most advanced nodes. Forcing an entire chip to be manufactured using the same cutting-edge process can significantly raise costs without delivering proportional gains.

Because of these cost and technical constraints, the semiconductor industry is gradually shifting from monolithic system-on-chip (SoC) designs to chiplet architectures. Instead of integrating all functional blocks - such as processing, memory, connectivity, and analog components - on a single die manufactured with the same technology, the chiplet approach divides the chip into multiple smaller units.

Each chiplet performs a specific function and can be manufactured using the most appropriate process technology. Processing components can use leading-edge nodes for maximum performance, while I/O or analog functions may use older nodes to reduce costs.

This approach reduces manufacturing risks, optimizes costs, and increases flexibility in product design and upgrades. However, when chips are divided into multiple chiplets, advanced packaging technologies become critically important. These technologies enable chiplets to connect at high speed with low latency, functioning together as a unified system. As a result, advanced packaging is emerging as a strategic segment in the global semiconductor value chain.

Major opportunity for Vietnam

Packaging is no longer simply about protecting chips. According to Mr. Nguyen Bao Anh, CEO of VSAP LAB Vietnam, chip packaging first acts as an “armor layer” protecting the semiconductor die from mechanical impacts, humidity, oxidation, and corrosive environmental factors.

Beyond protection, packaging also functions as a power distribution system. It supplies power to billions of transistors operating simultaneously and ensures energy is delivered stably to each transistor while minimizing losses and voltage drops. This is critically important because even slight power instability can affect the overall performance of the chip.

Experts say that advanced packaging is no longer a supporting step but a core component in scaling and improving semiconductor performance. Innovations in equipment and manufacturing processes play a decisive role in ensuring precision, uniformity, and scalability - all essential requirements for the next generation of semiconductor manufacturing.

“From 2025 onwards, the packaging sector is entering a particularly exciting phase,” Mr. Bao Anh said. “Packaging is no longer just a protective layer for chips but part of system architecture.” He added that major companies and research labs are investing heavily in increasingly sophisticated packaging technologies to boost performance for AI systems and future technologies.

The world, he continued, is entering a period in which packaging technologies will continue to evolve rapidly, and their role in the semiconductor industry will become more important than ever.

Ms. Yen said Vietnam holds significant advantages, from a young workforce capable of learning quickly and adapting to new technologies and strong government support for foundational technology sectors, including semiconductors. Vietnam is also seeing the emergence of domestic companies with ambition and a willingness to invest systematically in technically challenging but strategically valuable industries.

“Advanced semiconductor packaging is becoming a strategic opportunity,” she emphasized. “In the current context, advanced packaging could open a major opportunity for Vietnam to participate more deeply in the global semiconductor value chain.”

VET-Huyen Thuong

More support from France for Vietnam's sustainable development

Fri, 10 Apr 2026 09:30:00 GMT

France provides support to Vietnam's climate transition through its companies operating in the Asian country.

Vietnam’s construction industry remains a key pillar of its economy, contributing some 17 per cent of GDP and posting growth of about 9 per cent in 2025. This momentum is expected to continue, driven by the government’s push to accelerate major infrastructure projects in cooperation with the private sector. Ensuring that these projects meet green standards across responsible architecture, urban planning, public transport, and energy efficiency will be critical for sustainable future and more livable cities.

These remarks were made by H.E. Olivier Brochet, Ambassador of France to Vietnam, at the Build to Last 2026 Conference organized by the French Chamber of Commerce and Industry in Vietnam (CCIFV) in Ho Chi Minh City on April 7.

The gathering aimed to promote dialogue and strengthen cooperation across the construction and urban development ecosystem.

Strengthening climate cooperation

The Ambassador underscored the central role of sustainable construction, alongside strong participation from French and Vietnamese businesses and the international community.

Globally, the construction sector accounts for a significant share of worldwide emissions while contributing around 11 per cent of global GDP and 7 per cent of employment. Beyond its economic importance, the sector directly affects quality of life, underscoring its critical role in addressing climate change and making sustainability both an environmental and socio-economic priority.

According to Ambassador Brochet, the transition toward greener cities requires coordinated effort from multiple stakeholders, including governments, local authorities, businesses, investors, and research institutions. He also emphasized the importance of international cooperation, citing Vietnam and France’s engagement in the Global Alliance for Buildings and Construction (GlobalABC), a United Nations-backed initiative aimed at decarbonizing the building sector.

“Through the French Development Agency (AFD), France is supporting Vietnam in its efforts to adapt to climate change,” he told the Conference. “On the one hand, it has funded several projects aimed at reducing flood risks in various provinces, while on the other it grants loans to Vietnamese public and private banks to support small and medium-sized enterprises (SMEs) investing in the green transition. Finally, it advises Vietnam on the implementation of a carbon emissions trading scheme.”

In terms of climate change mitigation, the AFD signed several financial agreements at the EU-Vietnam Global Gateway Business and Investment Forum in Hanoi on March 24, including support for the Bac Ai pumped-storage hydropower plant, while continuing to invest in power infrastructure, including grid modernization.

From commitments to outcomes

Beyond policy discussions, the conference highlighted broader dimensions of sustainable urban development, including integrated planning, transport and logistics infrastructure, and the adoption of green energy and construction materials.

The role of the private sector in advancing sustainable construction also featured prominently. At the event, French multinational Saint-Gobain announced that its DURAflex fiber cement board plant in central Quang Tri province recorded net-zero carbon emissions for Scope 1 and Scope 2, becoming the first facility of its kind in Vietnam to reach this milestone.

Mr. Hai Nguyen Truong, CEO of Saint-Gobain Vietnam, said the milestone reflects the company’s commitment to translating sustainability goals into concrete outcomes, contributing to Vietnam’s net-zero emissions by 2050 target. Mr. Ludovic Weber, CEO of Saint-Gobain Asia, described Vietnam as a strategic market for the group, noting that the achievement underscores the country’s potential as a hub for low-carbon innovation.

Experts at the Conference also shared insights into the international building standards available in Vietnam. Speaking to VnEconomy / Vietnam Economic Times, Ms. Pearl Mars, Business Development Director - Building and Infrastructure (BNI) Building Resilience Index (BRI) at Bureau Veritas, noted that while international certifications are being increasingly adopted in the country, the distinction between “sustainability” and “resilience” remains unclear in practice.

Ms. Pearl Mars, Business Development Director - Building and Infrastructure (BNI) Building Resilience Index (BRI) at Bureau Veritas at the event. (Photo: CCIFV)

“Standards such as LEED and EDGE focus primarily on operational efficiency and energy savings,” she explained. “In contrast, BRI emphasizes a building’s ability to adapt to and withstand risks such as storms and flooding.”

Sustainability and resilience, she continued, address different dimensions of the climate challenge. While sustainability focuses on mitigating climate change, for example by reducing reliance on fossil fuels, resilience is concerned with adapting to increasingly frequent and severe climate-related risks.

In Vietnam, where exposure to natural disasters is significant, this distinction is becoming increasingly important. “After a major storm, the objective is not only for a building to remain structurally intact, but also to resume operations as quickly as possible,” Ms. Mars said. “Each day of disruption represents a financial loss.”

Despite the clear benefits, she added, adoption remains constrained by high upfront costs and limited awareness. Many developers, particularly in storm-prone central regions, remain hesitant to invest in resilience upgrades due to short-term profitability considerations.

Awareness about BRI in Vietnam remains in its early stages, with recognition estimated at around 30 per cent; significantly lower than in Singapore, where it exceeds 90 per cent. As such, Ms. Mars underscored the need for stronger communication efforts to raise market awareness. From an economic perspective, investing in resilience delivers clear returns. Studies show that every $1 invested in resilient construction can save approximately $4 in post-disaster repair and recovery costs.

Looking ahead, she suggested that resilience standards be integrated from the design stage to optimize both cost and effectiveness. However, even existing buildings can still be assessed and upgraded using available frameworks.

vneconomy-Nhu Quynh

Heavy pressure on agricultural and seafood exports

Fri, 10 Apr 2026 08:10:00 GMT

Considered to hold great promise, Vietnam agricultural and seafood exports to the Middle East face an uncertain time as regional tensions rise.

The Ministry of Agriculture and Environment has previously described the Middle East as a large and promising market for Vietnam’s agricultural products. Indeed, agricultural exports to the region increased 22.5 per cent year-on-year in 2025, to $1.2 billion.

However, the escalating conflict in the Middle East is disrupting key Asia-Europe shipping corridors, driving freight costs up sharply, tightening insurance conditions, and raising the risk of supply chain disruptions, which all put mounting pressure on Vietnamese exporters of agricultural and seafood products.

Most Vietnamese exports to Europe, Africa, and part of the US normally pass through the Red Sea, the Suez Canal, and the Strait of Hormuz. Any disruption along these critical maritime routes will raise shipping costs, extend transit times, and directly affect export activities.

Dual risks

The Vietnam Association of Seafood Exporters and Producers (VASEP) said seafood exports to the Middle East stood at $401 million last year, up 9.6 per cent against 2024. Exports to the region nearly doubled in the 2020-2024 period, highlighting the solid potential of a market characterized by high purchasing power and stable import demand.

Growth has been driven mainly by pangasius (catfish) exports, with value reaching $175.9 million, up 18.6 per cent, shrimp $54.5 million, up 19.9 per cent, and other ocean fish, up 28.6 per cent. Tuna and pangasius remain the two leading products, accounting for around 70 per cent of total export value to the region.

Canned and pouch-packed tuna in oil or brine has gained popularity among consumers in Israel, the United Arab Emirates (UAE), Saudi Arabia, and Qatar due to competitive prices and reliable supply.

According to a representative from the LuLu Group in the UAE, Vietnam’s fresh produce and processed foods are highly regarded in Middle Eastern markets for their quality, particularly cashew nuts, coffee, and spices, thanks to product diversity and stable supply capacity.

However, in late February and early March, the sharp escalation of tensions along the Iran-Israel axis, coupled with the involvement of the US, cast a shadow over regional trade. In just a short period of time, military tensions translated into a shock for maritime transport and insurance markets in the Middle East.

For the seafood industry, which depends heavily on maritime logistics and cold chains, the impact goes beyond rising costs. Risks of cold chain disruption, shortages of refrigerated containers, and price fluctuations across product segments are emerging concerns, according to VASEP.

The focal point of risk lies in the Strait of Hormuz, a strategic maritime corridor linking the Persian Gulf with the Indian Ocean. As security warnings intensify, several international shipping lines have adjusted operations, requiring vessels to anchor in safer waters and temporarily suspending some routes through the area.

Some Asia-Europe shipping routes have already been diverted around the Cape of Good Hope at the southern tip of Africa instead of passing through the Red Sea - Bab el-Mandeb - Suez Canal corridor. The detour adds 7-14 days to transit times, reducing fleet efficiency and causing shortages of container equipment, particularly refrigerated containers that require higher technical standards and have slower turnaround times.

Freight rates on the Asia-Dubai route nearly doubled within a few days. War-risk surcharges ranging from $1,500 to $4,000 per container are now being applied, with refrigerated containers facing higher fees.

For seafood exporters, these additional charges directly increase production costs and narrow profit margins already under pressure from fluctuations in raw material prices and exchange rates.

At the same time, the maritime insurance market has reacted strongly. Some war-risk and ship-owner liability insurers have announced reductions or cancellations of coverage for vessels operating in Iran and the Persian Gulf, often with very short validity periods.

Notably, even cargo that does not directly pass through conflict zones may incur higher costs if vessels in the shipping chain call at ports located in areas considered high-risk.

In addition to logistics costs, fluctuations in fuel prices are adding financial pressure on exporters. “In previous conflicts involving Israel, seafood exports experienced certain impacts,” a representative from VASEP said. “However, the current situation is considered more serious due to the broader scope of influence and the rapid chain reaction in transport, insurance, and energy markets. If tensions persist, seafood exports to the Middle East could face not only localized disruptions but also ripple effects across related international trade routes.”

Close watch on developments

Military tensions involving the US, Israel, and Iran are also prompting Vietnamese exporters of pepper, spices, cashews, and fruit and vegetables to closely monitor developments and adjust delivery plans. Their biggest concern is the potential surge in shipping and logistics costs if the conflict continues.

Mr. Le Viet Anh, Secretary General of the Vietnam Pepper and Spice Association (VPSA), said many companies are concerned that sea freight rates could rise as some shipping routes are adjusted or suspended. If risks along traditional corridors increase, vessels may be forced to reroute, adding surcharges and transshipment costs.

The Middle East currently accounts for about 15 per cent of Vietnam’s total pepper and spice exports, equivalent to around 35,000-40,000 tons annually. Because shipments are distributed throughout the year, immediate pressure remains manageable, but businesses still hope tensions will ease quickly to avoid long-term impacts.

The cashew sector is also facing indirect effects. Mr. Ta Quang Huyen, General Director of the Hoang Son 1 Joint Stock Company in southern Dong Nai province, said the company currently has several containers of cashew nuts en route to the Middle East. These shipments typically pass through the Suez Canal - Red Sea corridor to reach markets such as Jordan, Israel, and Turkey. If risks increase, vessels may be forced to detour around the Cape of Good Hope, extending transit times by 8-10 days. In that case, war-risk insurance premiums and fuel costs would also rise. Logistics expenses currently account for around 10-20 per cent of total costs for exports to the Middle East and could increase by another 15-25 per cent if tensions persist.

Air freight has also been affected. Several cargo flights to the Middle East have been canceled, forcing exporters of fresh fruit to seek alternative transport options as delivery delays could affect product quality. Meanwhile, any cautious sentiment among importers in signing contracts and making payments could also create ripple effects across Vietnam’s exports to the broader Middle East region if the conflict drags on.

Safeguarding export flows

Amid the complex developments in the Middle East, several agricultural associations have urged exporters to quickly develop long-term contingency plans while diversifying export markets to mitigate the impact if trade with Israel, Iran, and other regional countries faces disruption.

Experts say identifying alternative markets with similar demand profiles is an urgent matter as geopolitical risks intensify. Businesses are also advised to closely analyze the situation and regularly exchange information with relevant ministries and agencies on import-export data, geopolitical developments, shipping conditions, freight rates, and surcharges, to coordinate timely response measures. Alongside market expansion, exporters should carefully review logistics, shipping, delivery, and insurance clauses in contracts.

Shipping agreements should clearly define force majeure provisions, compensation responsibilities, and mechanisms for sharing additional costs in the event of unforeseen disruptions. At the same time, securing comprehensive cargo insurance is considered a key measure to minimize losses should risks materialize in destination markets.

In an increasingly volatile global trade environment, proactive and flexible strategies will be critical for Vietnamese agricultural and seafood exporters to maintain stable export operations and safeguard sustainable growth.

VET-Chuong Phuong

Australia provides AUD 75 million for Vietnam’s green transition

Fri, 10 Apr 2026 01:00:00 GMT

The funding will support sustainable and critical infrastructure projects in Vietnam, strengthening bilateral cooperation in the country’s green transition.

Australia has provided AUD 75 million for Vietnam’s green transition, according to an announcement by Ms. Sarah Hooper, Australian Consul General in Ho Chi Minh City, at the Vietnam–Australia Green Transition Forum 2026, held on April 9.

The fund, arranged through Export Finance Australia and on-lent via VPBank, is designed to finance sustainable infrastructure across Vietnam.

“Through Export Finance Australia, we have provided an AUD 75 million on-lending facility to VP Bank to finance sustainable, critical and infrastructure projects across Vietnam,” Ms. Hooper confirmed.

At the same time, Australia’s Southeast Asia Economic Strategy to 2040 identifies Vietnam as a priority partner in key sectors such as clean energy and sustainable agriculture. Beyond financing, Australia is expanding development initiatives such as Aus4Growth and Aus4Innovation, which support economic reform, digital transformation, and clean energy cooperation.

In the agricultural sector, Australian-backed projects are applying satellite data and artificial intelligence in the Mekong Delta to reduce chemical use and improve productivity. These initiatives have helped cut more than 193,000 tons of CO₂ emissions, while creating thousands of jobs.

Vietnam has committed to achieving net-zero emissions by 2050, with its Power Development Plan VIII prioritising renewable energy, energy storage, and a gradual phase-out of coal-fired power.

Amid increasing pressure from global supply chains to enhance carbon accountability and sustainability, clean energy and data transparency are emerging as key drivers of competitiveness.

Unlocking green transition

Vietnam is expected to mobilise more than $300 billion for climate finance and energy transition in the coming years, with a significant share anticipated from the private sector. However, while capital is available, the challenge lies in unlocking and effectively deploying these resources.

On the panelist “Unlock green transition policies: New contracts, new capital, new competitive advantage”, policymakers, investors, and market experts discussed how to bridge the gap between capital supply and project readiness.

Panel discussion: “Unlocking green transition policies: New contracts, new capital, new competitive advantage”. (Photo: Australia’s Consulate General in Ho Chi Minh City)

Mr. Pham Tien Dac, from the Strategy Department at Vietnam's International Financial Center, highlighted that the newly established institution, launched in early 2026, is expected to play a pivotal role in attracting international capital into Vietnam’s next phase of growth, particularly in green finance.

According to the IFC, creating a more open and investor-friendly environment will be key. This includes streamlining administrative procedures, shortening licensing timelines to as little as five to seven days, and offering greater flexibility in foreign exchange management. Sustainable finance has been identified as a core pillar, alongside plans to introduce sandbox mechanisms to support innovation in financial and green technologies.

From a market perspective, Mr Nguyen Quang Thuan, Executive Chairman CEO at Fiin Ratings Group, pointed out that while demand for green capital in Vietnam is substantial, regulatory frameworks remain incomplete. In particular, the absence of a fully operational green taxonomy continues to pose challenges for both issuers and investors.

As a result, many transactions still rely on international standards, such as Green Bond Principles, to ensure transparency and meet global investor expectations. Policy clarity, including tax incentives, capital controls, and legal frameworks aligned with common law will be critical in scaling up capital inflows. Notably, international experience suggests that green finance does not necessarily come with a lower cost of capital. Even in developed markets, cost advantages have yet to be clearly demonstrated, and businesses should therefore not expect “cheap capital” when pursuing green projects.

Big opportunities, coordinated action needed

Investor sentiment towards Vietnam remains positive. However, as noted by Ms. Ellen Van, Investment Director at Mekong Capital, a key issue is that “capital is available but not being deployed”. This hesitation stems from a disconnect between investors’ expectations and the readiness of local businesses. Investors often require high levels of transparency, robust data systems, and clear ESG reporting, which many companies in Vietnam are still in the process of developing.

Bridging this gap requires more direct engagement. Bringing investors closer to on-the-ground realities can help build trust and unlock investment decisions. At the same time, companies must proactively improve governance, financial transparency, and their ability to substantiate sustainability claims with credible data.

Another important point raised during the discussion is that green finance should not be equated with cheaper capital. Evidence from global markets suggests that “green premiums” remain limited. Instead, the real value lies in accessing high-quality, long-term funding and enhancing competitiveness.

Panellists also emphasised a shift in thinking from “green” to “transition”. For many industries in Vietnam, particularly manufacturing, achieving fully green standards immediately may not be feasible. Instead, incremental improvements such as energy efficiency upgrades or waste heat recovery should be recognised as meaningful steps in the transition process.

Businesses were advised to view green transformation as a long-term investment rather than a short-term cost. Importantly, without tangible green or transition assets, access to green finance will remain limited.

Concluding the session, speakers agreed that Vietnam is well positioned to attract global capital for its green transition, given its strong growth outlook and strategic role in global supply chains. However, realising this potential will require coordinated efforts across policy, financial markets, and corporate readiness, with transparency and trust serving as key enablers.

The Vietnam–Australia Green Transition Forum 2026, organised by the Australian Alumni Business Network, brought together policymakers, businesses, investors, and researchers from both countries to explore cooperation opportunities, as Vietnam accelerates its transition towards low-carbon, innovation-driven growth.

The forum aims to translate strategic alignment into practical collaboration by connecting Australian expertise with Vietnam’s growing market, while leveraging a network of more than 160,000 Australian alumni in Vietnam to facilitate knowledge exchange, investment dialogue, and business partnerships.

According to organisers, alumni play an important role in bridging policy and business practice, as well as linking research outcomes with market demand. The event gathered senior representatives from government, industry, investment, and research institutions, highlighting growing momentum in Vietnam - Australia cooperation on green transition and sustainable development.

vneconomy -Nhu Quynh

Proactive adaptation to current world fluctuations

Thu, 09 Apr 2026 04:12:00 GMT

Vietnam Economic Times / VnEconomy gathered insights from industry leaders on how escalating tensions in the Middle East may disrupt global logistics, energy prices, and goods demand, and what this may mean for Vietnam’s key export sectors.

Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS)

The conflict in the Middle East was not something we anticipated. Vietnam’s textile and garment industry has begun to clearly feel its impact, and we expect it will affect the stability of orders. Three major challenges are currently confronting the industry.

First is cost pressure, particularly transport costs. Some international brands have started recalculating their production cost structures in Vietnam. The issue is not only the cost of manufacturing but also logistics costs, as shipping routes linked to the Middle East carry increasing risks. If shipping flows are disrupted or transit times lengthen, the entire supply chain will be affected.

Second is the challenge of market stability. When geopolitical tensions escalate, global consumer sentiment can be easily affected. There is a possibility that consumers will tighten spending, particularly on apparel, which is not considered an essential item. This could directly affect orders for Vietnamese textile and garment enterprises in the coming months.

Third is the risk stemming from oil price volatility. If oil prices rise, a range of input costs will increase accordingly, especially products derived from petroleum, such as synthetic fiber and yarn. Synthetic fiber products currently account for 40-45 per cent of the industry’s production structure.

We are closely monitoring developments to provide timely guidance and share updates with businesses, as the situation will certainly affect order stability in March and April and may extend through June.

To respond to these fluctuations, enterprises have proactively engaged with the Association and are focusing on several groups of solutions. These include recalculating production plans and cash flows. Companies are working with banks to restructure their finances while also seeking alternative shipping solutions in case routes through the Middle East are disrupted. This is considered an urgent issue, as extended delivery times could lead to the risk of contract violations.

At the same time, businesses are reviewing their internal operations to cut costs. As transport costs trend upward, companies must optimize production processes, reduce waste, and improve workplace productivity to offset rising expenses.

Enterprises must also improve their ability to adapt to customer requirements. In times of uncertainty, international partners often tighten requirements on both pricing and delivery timelines. Companies may have to accept a certain level of risk.

If vessels are unable to pass through normal shipping routes and must detour via southern Africa, transit times will lengthen and costs will rise significantly. In that case, the ability to coordinate production and ensure on-time delivery will become a decisive factor.

Mr. Nguyen Quoc Ky, Chairman of the Vietravel Corporation

Tourism is an industry that is highly sensitive to geopolitical fluctuations. The Middle East serves as a key global aviation transit hub connecting Europe and North America with the Asia-Pacific region.

When instability occurs in the Middle East, the impact extends beyond the region and also creates a new “filter funnel” in the travel routes of international tourists. Many airlines are forced to adjust flight paths, extend travel times, or change transit hubs. This may increase costs and lead some travelers to reconsider long-haul travel plans in the short term.

However, from a more positive perspective, we believe this represents a cyclical adjustment. Vietnam remains a safe destination with political stability and is becoming increasingly attractive to travelers from Europe and North America. As flight routes are restructured through alternative hubs in Northeast Asia or Southeast Asia, international tourist flows will continue to return.

What matters is that the tourism industry must proactively adapt to shifts in the global aviation network. For Vietravel, rather than reacting passively, we are implementing a strategy to rebalance our market portfolio around three key pillars.

First, we are expanding operations in “green-zone markets” that remain stable, particularly Japan, South Korea, Australia, and several Northeast Asian markets. These markets offer strong stability, good air connectivity, and robust two-way travel demand.

Second, we aim to leverage regional advantages to capture the shift of international travelers towards safer destinations in the Asia-Pacific, where Vietnam holds strong advantages in natural landscapes and cultural heritage.

Third, we are developing high-end domestic tourism and in-depth travel experiences. As routes to Middle Eastern destinations such as Dubai, Egypt, and Türkiye are affected, demand for new travel experiences within Vietnam and the region is expected to increase.

In emergency situations such as the current one, Vietravel prioritizes flexibility and transparency in order to maintain customer trust. We respond quickly by activating emergency procedures, coordinating with partners to update developments, and identifying the most appropriate solutions for each travel group.

Flexible solutions are prioritized, including supporting itinerary changes of equivalent value, preserving tour value, or adjusting departure schedules rather than strictly applying cancellation and refund policies. The responsibility of a company is to balance customer interests with business stability in order to avoid reputational shocks.

Tourism has always been closely linked with global mobility. Therefore, rather than simply trying to avoid risks, we believe it is necessary to proactively adapt and “live with” geopolitical fluctuations, turning challenges into opportunities to restructure markets and enhance the competitiveness of both businesses and Vietnam’s tourism industry.

Mr. Bui Ngoc Bao, Chairman of the Vietnam Petroleum Association

Conflicts in the Middle East inevitably affect global oil prices, as the region supplies 30-40 per cent of the world’s oil. In particular, any blockade or disruption in the Strait of Hormuz represents a major risk that must be closely monitored. However, in my view, the current impact is still largely psychological, given that the situation has only unfolded over a short period.

In reality, fuel prices are not determined solely by supply and demand but are also strongly influenced by financial speculation. Around 95 per cent of current transactions are non-commodity trades, which leads to what can be described as “virtual pricing.” Ultimately, however, prices tend to return to levels that reflect the pace of economic growth, typically fluctuating around $70 a barrel.

Looking back at the price volatility in 2022 during the Russia-Ukraine conflict, when domestic fuel prices surged, I can affirm that Vietnam did not face an oil shortage. The real difficulty lay in the lack of flexibility in the regulatory mechanism, which caused businesses to incur heavy losses and made it impossible for them to continue selling fuel.

At present, low discount margins are placing many retailers, particularly private ones, under significant pressure, and they have been voicing concerns for months. This is essentially a domestic regulatory issue rather than a direct impact of the conflict involving the US, Israel, and Iran.

Therefore, to ensure energy security and market stability under all circumstances, it is necessary to quickly address regulatory bottlenecks so that businesses are not forced to operate at a loss, thereby maintaining a natural supply flow to the market. At the same time, the government should promptly issue and implement the new decree on petroleum trading to allow the market to operate under proper market-based pricing mechanisms. Though the necessary procedures have been completed, the signing and promulgation of the decree have been delayed.

It is also important to diversify supply sources by lowering import tariffs on fuel from other regions to match ASEAN preferential rates, which are currently lower by about 7-8 per cent. This would make it easier for businesses to access supplies from outside the region.

National reserves should also be strengthened. Instead of maintaining a stabilization fund in cash, which can be inefficient, these resources should be used to build centralized oil reserves. Maintaining reserves equivalent to 5-20 days of supply would help the country respond more effectively to sudden market fluctuations.

At the same time, Vietnam needs to strengthen its energy self-reliance. Though the country can meet around 70 per cent of its refining demand, domestic crude oil production only accounts for about 30 per cent of feedstock supply. Refineries such as Nghi Son still have to import crude oil from Kuwait through maritime routes that carry potential risks.

Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association (VINAFRUIT)

Exports of fruit and vegetables to the Middle East and Europe currently account for less than 10 per cent of the sector’s total export value. In the Middle East alone, Vietnamese fruit represents only about 3-5 per cent of total export turnover. Though the share remains relatively small, these markets play an important role in the industry’s diversification strategy, helping reduce reliance on a limited number of traditional markets.

However, escalating tensions in the Middle East have caused fruit shipments to the region to nearly stall, even as orders had recently shown signs of recovery following trade cooperation agreements between Vietnam and partners such as the UAE, Saudi Arabia, and several other countries. The risk of disruption is not limited to the Middle East but could also extend to Europe; another key destination for Vietnamese fruit and vegetables.

Most maritime routes from Asia to Europe pass through the Suez Canal and the Red Sea. As security risks increase, many shipping lines have been forced to reroute vessels around the Cape of Good Hope in the southern tip of Africa, extending transit times by several days or even up to a week. As a result, freight rates have surged sharply, reaching as much as $7,000-$8,000 for a 40-foot container on some routes.

For fresh fruit - products that are particularly sensitive to time - even delays of a few days can significantly affect freshness, appearance, and selling prices. Longer transport times mean refrigerated containers must operate for extended periods, increasing preservation costs and raising the risk of quality deterioration. This directly undermines the price competitiveness of Vietnamese agricultural products in international markets.

In this context, if logistics costs return to the heightened levels seen during 2024-2025, the fruit and vegetable sector’s export growth targets for this year will face significant challenges. Beyond rising costs, the risk of declining orders and increased caution among importers could further complicate the export outlook.

Mr. Nguyen Tuan Viet, CEO of the VIETGO Export Promotion Company

Escalating tensions involving the US, Israel, and Iran are raising serious concerns about export prospects in the coming period. When the global economic order shifts toward conflict, markets react quickly: demand for luxury goods tends to stall or even freeze, while essential goods, food, and logistics supplies often see rising demand.

The biggest challenge at present lies in transportation, as shipping routes through the Suez Canal are under threat, forcing many carriers to reroute vessels around the Cape of Good Hope. Transit times to Europe have extended from around 25 days to as much as 50 days, disrupting delivery schedules and directly affecting both corporate cash flows and business credibility.

In addition to delays, logistics costs have doubled or tripled due to higher risk insurance premiums and additional fuel costs, eroding the already thin profit margins in the agricultural sector. Fresh products such as bananas and dragon fruit, which have short preservation periods, are particularly vulnerable to extended transit times. This increases the risk of spoilage and the possibility of losing entire shipments. To safeguard cash flows and limit potential losses, companies need to proactively implement practical “frontline” solutions.

First, prioritize FOB (Free on Board) delivery terms. Selling goods at the port of departure and receiving payment once the cargo is loaded onto the vessel allows exporters to transfer most transportation risks and additional costs to the buyer. In an environment of unpredictable volatility, this is one of the most effective ways to reduce risk.

Second, carefully manage letters of credit (LC). As transit times may extend by 20-25 days beyond the original schedule, many LCs risk expiring before shipments arrive at their destination ports. Exporters should work proactively with partners to extend LC validity as soon as they receive notice of changes to shipping routes, avoiding the risk of being caught unprepared.

Third, pay close attention to insurance coverage and shipping line selection. If deliveries must be made under CNF (Cost and Freight) or CIF (Cost, Insurance and Freight) terms, companies should ensure that comprehensive war-risk insurance is in place. At the same time, priority should be given to carriers operating direct routes rather than those requiring transshipment, thereby minimizing additional risks. If buyers fail to make payment before vessels arrive at port, contracts should include clear provisions allowing flexible responses, including the possibility of redirecting or returning shipments to protect assets.

Ms. Le Hang, Deputy Secretary-General of the Vietnam Association of Seafood Exporters and Producers (VASEP)

The Middle East is currently a major market for salmon, shrimp, tuna, and many high-value seafood products imported from Asia, Europe, and the Americas.

Tensions in the Middle East are creating serious disruptions to seafood supply chains, a sector that requires strict control of temperature and timing. As airspace restrictions tighten and flight schedules are disrupted, supplies of fresh seafood transported by air have quickly become scarce, forcing importers to shift towards frozen products. However, this transport channel is also facing difficulties as bookings for refrigerated containers are increasingly limited or temporarily suspended.

In Dubai, Jebel Ali Port, operated by DP World, serves as a major seafood transshipment hub in the region. When vessels are forced to reroute, longer transit times and increasing vessel queues raise the risk of port congestion and shortages of electrical plug-in points for refrigerated containers. As a result, storage and demurrage costs rise sharply, while the risk of product quality deterioration also increases if storage times exceed safe limits.

For Vietnamese exporters, particularly those shipping pangasius (catfish) and shrimp, longer transit times of one to two weeks significantly increase electricity costs, as temperatures in refrigerated containers must be maintained. At the same time, the extended journey raises the risk of disputes over product quality.

Price impacts are already visible at two levels. At the regional level in the Middle East, rising transport and insurance costs directly push up import prices. Fresh and chilled seafood may face localized supply shortages, especially in the premium restaurant and hotel segment, potentially leading to higher retail prices and menu prices.

At the global level, the extent of the impact will depend on how long the crisis lasts. If the share of containers passing through the Strait of Hormuz remains relatively small compared with total global shipping volumes, the broader container price environment may remain manageable. However, for companies with direct trade ties to the Middle East, higher shipping costs may force them to restructure markets, redirect exports, or renegotiate contracts.

Given that the Middle East is a relatively high-margin market for pangasius and several value added seafood products, sharply rising logistics costs could alter the profit structure across the entire supply chain.

Future scenarios for the seafood market will largely depend on security developments. If tensions ease, shipping lines may restore routes through the Strait of Hormuz and gradually reduce risk surcharges, allowing supply chains to recover quickly. Conversely, if risks persist, elevated transport costs may become a “new normal,” leading to broader price volatility.

In this context, VASEP recommends that Vietnamese seafood companies diversify shipping routes to avoid dependence on a single maritime corridor, increase inventory at regional cold storage facilities, particularly at major transshipment hubs, and prioritize long-term freight contracts to reduce exposure to volatile spot markets. At the same time, businesses should closely monitor developments in maritime insurance and shipping line policies in order to proactively adjust negotiations and export plans.

VET-

Vietnam Economic Times April, 06 2026

Wed, 08 Apr 2026 10:15:00 GMT

Vietnam Economic Times Issue 451 | Monday, April 06 2026

Dear readers,

The conflict in the Middle East, which began with an attack by the US and Israel on Iran on February 28, followed by Iran’s response in meeting force with force, shows no sign of ending and has already disrupted or hindered many global supply chains for more than a month, severely impacting the logistics operations of most economies, including Vietnam.

On March 5, the Islamic Revolutionary Guard Corps (IRGC) of Iran announced that it had exerted complete control over shipping through the Strait of Hormuz and confirmed it had attacked at least ten vessels since the conflict erupted, while imposing a travel ban on vessels believed to be associated with the US, Israel, and their allies. This announcement created a global “energy shock,” directly affecting logistics services.

The conflict in general and the limiting of oil flows through the Strait of Hormuz, where 20 per cent of the world’s oil and gas supply passes, has caused oil prices to rise sharply, reaching their highest levels since 2022, with Brent crude soaring to nearly $115 a barrel on the morning of March 28.

As a result, global logistics services in general, especially maritime transport services, have suffered from a twin negative impact, with input fuel prices remaining at unusually high levels and Asia-Europe transport routes being extended both in distance and time, due to having to go around the Cape of Good Hope at the tip of southern Africa, increasing transportation costs and prolonging delivery times.

The Middle East bottleneck is not just a regional issue and is triggering various “spillover effects,” disrupting the stable balance of the Asia-Europe supply chain. As both the Strait of Hormuz and the Red Sea and Suez Canal are under threat, congestion is readily found along many shipping routes linking Asian “workshops” with European consumer markets.

Logistics costs for maritime transport have become especially volatile. For example, the route from Hai Phong in Vietnam or Shanghai in China to Rotterdam in the Netherlands, if forced to pass around the Cape of Good Hope, will be extended by 3,500-4,000 nautical miles, equivalent to wasting 12-15 days adrift at sea, which incurs costs that are scarcely trivial.

Moreover, the longer shipping time also creates a shortage of empty containers, driving up container rental prices. Transshipment hubs face severe congestion, leading to increased warehousing costs as goods pile up, while war-risk insurance premiums have surged as a result.

Every economic sector has been negatively impacted by the Middle East conflict, but logistics services are among the sectors most heavily and visibly affected.

Our Cover Story in this edition therefore focuses on the overall nature of the “shock” from the Middle East conflict on Vietnam’s logistics operations, along with constructive solutions, including comments and recommendations from the Logistics Association and industry experts.

Warmest regards

Dr. CHU VAN LAM
CHAIRMAN OF THE EDITORIAL BOARD

VET-Vietnam Economic Times - VnEconomy

Vietnam’s trade in face of the Middle East conflict

Wed, 08 Apr 2026 10:00:00 GMT

The latest escalation in the Middle East conflict has Vietnamese exporters seeking new markets and importers seeking new suppliers, with both studying the logistics landscape.

The conflict in the Middle East involving the US, Israel, and Iran is having a significant impact on international supply chains, posing risks for an open economy like Vietnam. Geopolitical volatility not only threatens energy security but also pushes logistics costs higher, directly eroding profit margins for domestic import-export businesses.

The most immediate and visible impact of the conflict on Vietnam’s trade is the disruption of shipping routes through the Red Sea and the Suez Canal - critical gateways linking trade between Asia, Europe, and the eastern US. As tensions escalate, major shipping lines have been forced to reroute vessels around the Cape of Good Hope at the southern tip of Africa to ensure safety. The detour, however, extends shipping times by 10-15 days and leads to additional surcharges and higher container freight rates.

Global logistics pressures

Delivery delays not only disrupt production plans but also lead to shortages of empty containers at Vietnam’s ports. As ship turnaround times lengthen, the return flow of containers to export ports slows, creating a ripple effect that pushes freight rates higher.

For products with low profit margins or agricultural goods with short shelf lives, the situation poses a critical challenge. Rising logistics costs reduce the competitiveness of Vietnamese goods in international markets, particularly in key destinations such as the EU and the US, where consumers are tightening spending amid inflation.

The Export-Import Department at the Ministry of Industry and Trade has issued Document No. 229/XNK-TLH outlining recommendations to mitigate the impact of the conflict. It stated that military strikes and retaliatory actions have created severe instability and a high-risk environment for transportation, international trade, and global supply chains.

Global prices for consumer goods, fuel, and oil are expected to rise in the time to come, creating indirect and multidimensional negative impacts on Vietnam’s production, import-export activities, and trade with the Middle East. For the logistics sector, higher fuel prices will push up maritime and air freight rates while affecting cargo routes serving Gulf countries.

Meanwhile, many Middle Eastern countries have restricted or closed their airspace due to security concerns, forcing cargo and transport flights to reroute, lengthening flight times and increasing logistics costs. Shipping through the Strait of Hormuz has nearly stalled since the airstrikes on Iran by the US and Israel. Iran has warned vessels that passing through the Strait is unsafe, forcing shipping companies to avoid the conflict zone or change routes, significantly increasing travel time and fuel costs.

The Middle East is the world’s energy hub, and any military action involving Iran - a country with major influence over the Strait of Hormuz - could trigger strong volatility in crude oil prices. The conflict has raised concerns over potential disruptions to global oil supply.

For manufacturers in Vietnam, rising oil prices not only increase domestic transport costs but also indirectly push up the prices of key input materials such as plastics, chemicals, fertilizers, and synthetic fiber. This creates “double pressure” as businesses face both rising production costs and soaring maritime freight rates.

Seafood is among the hardest-hit exports due to the nature of frozen products, which have limited shelf lives and require strict storage conditions. Longer shipping times increase electricity costs and raise risks to product quality. Similarly, major agricultural exports such as coffee, cashew nuts, and rice are gradually losing their price advantage as logistics costs account for an increasingly large share of total selling prices.

For the textile and footwear sectors, though most contracts are delivered on a Vietnam port basis, excessively high shipping costs are prompting international importers to reduce order volumes or ask manufacturers to share the risk by lowering selling prices.

Five strategic solutions

The Agency of Foreign Trade at the Ministry of Industry and Trade has urged industry and logistics associations to closely monitor the situation and regularly coordinate with relevant State management agencies to provide updated information to members. This will help businesses proactively adjust production plans, import-export arrangements, and cargo transportation strategies to avoid congestion and minimize the negative impacts of the ongoing conflict.

To improve flexibility and resilience against future disruptions in the international business environment, the Agency recommends that Vietnamese enterprises focus on five strategic solutions.

First, diversify supply sources and seek alternative markets with similar demand to reduce dependence on exports to Israel, Iran, and the Middle East, while preparing long-term contingency plans for similar disruptions.

Second, during negotiations and contract signings, businesses should pay greater attention to logistics, transportation, delivery, and insurance clauses to protect against risks and losses. Shipping contracts should include force majeure provisions, compensation mechanisms, and cost-sharing arrangements in case of disruptions. Businesses should also ensure adequate insurance coverage for goods to minimize potential losses.

Third, businesses should proactively analyze developments and coordinate information exchange with relevant ministries and agencies regarding trade data, geopolitical changes affecting business operations, and developments in freight capacity, shipping rates, and surcharges in order to develop timely response strategies.

Fourth, companies should build contingency and adaptation plans to minimize risks and losses from incidents in international trade and transportation while preparing rapid response measures to limit disruptions to supply chains.

Fifth, businesses should regularly engage with relevant State agencies such as the Agency of Foreign Trade, the Vietnam Trade Promotion Agency, the Department of Foreign Market Development, and Vietnam trade offices overseas to identify new orders and potential markets that can serve as alternatives.

Facing mounting challenges, Vietnamese companies are actively seeking ways to adapt in order to maintain export momentum. Large companies have begun shifting trading terms from CIF (cost, insurance, and freight) to FOB (free on board), to transfer shipping control and transportation risks to foreign partners.

Meanwhile, small and medium-sized enterprises (SMEs) are focusing on nearby markets such as ASEAN, China, and Japan to reduce dependence on Red Sea shipping routes and better utilize free trade agreements. Some businesses are also increasing inventories of raw materials despite higher financial costs.

In the long term, experts recommend that Vietnam invest more heavily in logistics infrastructure, develop its international shipping fleet, and shift towards producing higher value added goods.

Current geopolitical volatility presents challenges but also offers an opportunity for businesses to review supply chains and strengthen risk management capacity. With support from the government, the flexibility of Vietnamese enterprises will be key to overcoming the headwinds and sustaining import-export growth in the years to come.

The Agency of Foreign Trade at the Ministry of Industry and Trade has issued Document No. 234/XNK-NH dated March 3, 2026, assessing the impact of the conflict in the Middle East. To proactively respond and ensure the achievement of export growth targets, the Agency has requested industry associations to review and assess how the conflict may affect import-export activities in their respective sectors, identify potential difficulties and challenges that may arise in the immediate future, and propose solutions to address obstacles, promote exports, and seek alternative sources of raw materials when necessary.

VET-Manh Duc

A roadmap for Vietnamese SMEs to meet ESG standards

Wed, 08 Apr 2026 03:30:00 GMT

A new accelerator program aims to provide SMEs with the ability to meet ESG reporting standards within just half a year.

As sustainability requirements tighten across global markets, Vietnamese small and medium-sized enterprises (SMEs) are coming under growing pressure to align with environmental, social, and governance (ESG) standards. In response, the Agency for Private Enterprise and Collective Economy Development (APED) at the Ministry of Finance and the Global Reporting Initiative (GRI), with support from the Swiss Government through the State Secretariat for Economic Affairs (SECO) and in collaboration with international and local partners, is rolling out an ESG accelerator - the Sustainability Twin transition And Reporting (S.T.A.R.) Accelerator Program - to help businesses move from zero to structured ESG implementation within a six-month period.

The initiative was introduced at a recent forum entitled “Zero to ESG in Six Months: A Simple Roadmap for SMEs Startups,” where ESG experts and financial advisors outlined how Vietnamese enterprises can adopt internationally-recognized standards in a pragmatic and commercially viable manner. Between 30 and 50 enterprises in Vietnam will be selected for the program, based on leadership commitment and the availability of dedicated internal resources.

Structural challenges for SMEs

Mr. Nguyen Cong Minh Bao, Vietnam Country Manager at GRI, emphasized that international investors are not merely interested in qualitative sustainability narratives but in measurable data.

Just as traditional investors evaluate companies through financial indicators such as cash flow, assets, and profitability, sustainable finance applies similar scrutiny to ESG performance. These data points increasingly influence investment decisions, credit assessments, and supply chain partnerships.

According to Mr. Bao, sustainability reporting is fundamentally about transparency, and demonstrates that a company systematically measures, manages, and discloses its impacts and risks in a credible manner so it can be more efficient and develop a competitive edge.

Vietnam’s export-driven economy has deepened its integration into global markets over the past decade. As trade ties with major partners such as the EU, the US, and Japan continue to expand, sustainability compliance is becoming central to maintaining market access. “ESG is no longer optional for companies participating in global value chains,” Mr. Bao told Vietnam Economic Times / VnEconomy. “It is becoming a prerequisite.”

He also noted that many Vietnamese enterprises still perceive ESG as either a corporate social responsibility (CSR) activity or an additional reporting cost. However, global trends suggest that ESG is evolving into a core management framework that affects supply chain positioning, investor confidence, and long-term competitiveness.

Headquartered in Amsterdam and embraced by more than 130 countries and territories, GRI is among the most widely adopted sustainability reporting standards worldwide. Some 90 per cent of major global corporations apply its standards in some form. The framework comprises universal standards, topic-specific standards, and sector standards addressing economic, environmental, and social issues, and sector standards tailored to high-impact industries.

Rather than producing lengthy reports, Mr. Bao argued that companies should begin by identifying material topics - the sustainability issues most relevant to their operations, risks, and stakeholder expectations. “ESG reporting starts with data,” he believes. “If you cannot measure your impact, you cannot manage or improve it, as the famous economist Peter Drucker said.”

SMEs account for roughly 98 per cent of enterprises in Vietnam and employ a substantial share of the workforce. Yet their structural characteristics often complicate ESG implementation. Limited financial capacity, insufficient technical expertise, fragmented data systems, and lean organizational structures can hinder systematic adoption.

At the same time, multinational buyers are imposing increasingly stringent and sometimes overlapping ESG requirements. Companies may face multiple questionnaires, various carbon accounting methodologies, and differing disclosure expectations.

Recognizing these constraints, the six-month accelerator aims to provide structured, practical support. Participating enterprises will undergo intensive training, receive digital tools for data collection and management, obtain ESG scoring and certification, and prepare simplified sustainability reports aligned with investor expectations. The objective is not to achieve perfection within half a year, but to establish foundational governance systems and baseline data that can be strengthened over time.

Dr. William L. Nolten, Region Asia-Pacific Director at the ESG Wings Investments JSC and the Golden Gate BCE Group, and Senior Advisor at Vietnam Partners LLC, underscored that sustainability ambitions must be grounded in economic realities. “Profit remains fundamental,” he said. “Without profitability, companies cannot invest in sustainability.”

He argued that ESG integration should enhance operational efficiency, reduce risk exposure, and strengthen long-term resilience. Measures such as energy efficiency improvements, waste reduction, and better governance structures can directly lower costs while improving access to finance.

Dr. Nolten also highlighted the concept of “double materiality,” which is gaining prominence in international reporting frameworks. This approach assesses both the impact of a company on environmental and social systems and the financial risks that sustainability-related issues pose to the company itself.

In global capital markets, ESG transparency is increasingly influencing lending decisions, bond issuance, and equity investments. Banks and institutional investors are incorporating sustainability criteria into credit evaluations, while impact investors are actively seeking credible ESG-aligned projects in emerging economies.

For SMEs, establishing a reliable ESG baseline can enhance negotiating power with lenders and strategic partners. Downstream corporations require trustworthy primary data from suppliers, particularly regarding emissions and environmental impacts. SMEs capable of providing transparent and traceable ESG data may gain preferred supplier status within global value chains.

Dr. Nolten emphasized that incremental improvements are often more feasible than sweeping transformations. By identifying high-impact areas such as energy consumption, emissions intensity or waste management, companies can prioritize targeted interventions that deliver measurable financial and environmental returns.

Data management remains one of the most practical barriers to ESG implementation. Many SMEs rely on manual record-keeping or fragmented spreadsheets, complicating accurate reporting and verification.

Ms. Truong Boi An, Sustainability Development Manager at Crif DB Vietnam, pointed to CRIF’s digital ESG platform as a tool designed to streamline this process. The system integrates GRI-aligned questionnaires and provides automated scoring, benchmarking, and analytics across more than 30 industry sectors. “SMEs are often overwhelmed by the number of standards and KPIs [key performance indicators],” she said. “Digital tools can simplify data collection and translate ESG information into formats recognized by financial institutions.”

The platform generates ESG ratings, identifies performance gaps, and offers actionable improvement plans. Certification options can further enhance credibility when engaging with banks, investors, and multinational buyers. By standardizing data processes and reducing administrative burdens, digital solutions may lower compliance costs - a critical consideration for resource-constrained enterprises.

Long-term strategy

Vietnam’s commitment to achieving net-zero emissions by 2050 has placed sustainability at the center of its long-term development strategy. Regulatory frameworks are gradually evolving to incorporate ESG-related disclosure requirements, while greenhouse gas inventories, extended producer responsibility (EPR) mechanisms, and sustainable finance initiatives are gaining traction.

Within this policy context, the accelerator program represents a proactive effort to build enterprise-level capacity. By equipping SMEs with practical tools and structured guidance, policymakers aim to prevent sustainability requirements from becoming barriers to competitiveness.

Swiss support through SECO underscores the international dimension of Vietnam’s sustainability transition. Switzerland has been active in promoting sustainable finance and corporate transparency globally, and its cooperation with Vietnam reflects shared interests in strengthening ESG alignment within trade and investment relations.

A recurring message at the forum was the need to reframe ESG as a value-creation tool rather than merely a regulatory obligation. Companies that adopt sustainability practices early may improve operational efficiency, enhance brand reputation, strengthen resilience to regulatory changes, and build investor confidence. “ESG is about building trust,” Mr. Bao said. “Trust with investors, customers, and employees.”

While the six-month timeline may appear ambitious, experts clarified that it represents a structured starting point rather than a comprehensive transformation. The focus is on establishing governance structures, collecting baseline data, identifying material issues, and producing an initial sustainability disclosure aligned with international standards. From that foundation, continuous improvement can follow.

As global sustainability requirements continue to expand, Vietnamese SMEs face the dual reality of risk and opportunity. Companies that fail to adapt may encounter restricted access to finance or exclusion from supply chains. Effective ESG integration, meanwhile, can enhance competitiveness and resilience in an increasingly sustainability-driven market.

The accelerator signals a coordinated effort by policymakers and international partners to bridge capacity gaps and support enterprise-level transformation. In a rapidly-evolving global economy, sustainability performance is emerging as a core component of business strategy.

For Vietnamese SMEs, the question is no longer whether to adopt ESG, but how swiftly and effectively they can embed it into their operations. With a structured roadmap and institutional backing, moving from zero to ESG within six months may prove less an aspiration than a strategic imperative.

The Sustainability Twin transition And Reporting (S.T.A.R.) Accelerator Program is spearheaded by the Ministry of Finance’s Department of Private Enterprise and Collective Economy Development, in collaboration with the GRI, under the framework of the “Twin Transformation Center” project, with support from SECO. The program seeks to transform ESG reporting from a perceived compliance burden into a competitive advantage through structured training, hands-on mentoring, digital tools and a clearly-defined implementation roadmap.

VET-Nhu Quynh

[Interactive]: Economic overview - Q1/2026

Tue, 07 Apr 2026 07:40:00 GMT

In the context of ongoing global uncertainties, Vietnam’s economy has remained resilient, with GDP growth reaching 7.83 per cent in the first quarter of this year.

vneconomy-Vietnam Economic Times - VnEconomy

Alternative pathway for nature-aligned growth

Mon, 06 Apr 2026 23:00:00 GMT

A newly-implemented support program aims to help ensure that Vietnam has a strong scientific foundation for balancing economic growth, human well-being, and the health and wealth of nature.

As Vietnam aims to become a high-income country by 2045, its traditional resource-intensive growth model is facing serious macro-economic risks. At a technical training workshop entitled “Applying the GTAP-InVEST Model in Spatial Planning and Integrated Development,” Associate Professor Nguyen Dinh Tho, Deputy Director of the Institute of Strategy and Policy for Agriculture and Environment (ISPAE) at the Ministry of Agriculture and Environment (MAE), said Vietnam is currently recording an ecological capacity deficit of up to -220 per cent, meaning the economy is consuming resources at more than twice the rate at which nature can regenerate them. Solutions are therefore urgently needed to address this challenge.

Natural capital at risk

Within the framework of cooperation between the MAE, ISPAE, the United Nations in Vietnam, and international partners, the Nature-Transition Support Programme (NTSP) is being implemented to help the government establish a strong scientific foundation for balancing economic growth, human well-being, and the wealth of nature. The program is a global initiative funded by the UK Department for Environment, Food and Rural Affairs (DEFRA) through the Global Centre on Biodiversity for Climate (GCBC).

The first phase of the NTSP is being implemented in Ecuador, Colombia, Ghana, Indonesia, and Vietnam, with support from GCBC. The global partnership includes the UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC), the UN Development Programme (UNDP), and the University of Minnesota in the US.

According to findings presented by the NTSP, Vietnam’s GDP growth could decline by as much as 24 per cent during the 2021-2030 period if key ecosystem services - such as crop pollination, timber supply, fisheries, and carbon sequestration - continue to deteriorate as a result of land use changes under current growth pathways.

Vietnam has experienced remarkable economic growth over the years, with GDP measured in purchasing power parity terms rising from $79 billion in 1990 to more than $1.6 trillion in 2024. However, rapid growth has also increased pressure on natural resources and ecosystems. Analysis shows that climate change impacts caused losses equivalent to around 3.2 per cent of national GDP in 2020.

In Vietnam, the program works closely with ISPAE, focusing on policy development for agricultural growth, environmental protection, climate change response, and sustainable development. The NTSP helps Vietnam better understand trade-offs between economic development and nature, while identifying alternative development pathways that safeguard both economic prosperity and natural capital.

“The health, stability, and trajectory of economic systems depend on the health and functioning of the biosphere,” Associate Professor Tho noted. “Therefore, restructuring the relationship between nature and the economy is essential for building an economic structure that is resilient, sustainable, and equitable.”

Ms. Frida Diaz Almeyda, Program Officer at UNEP-WCMC, added that an assessment report developed by the Centre in Vietnam found that around 5 per cent of the economy’s value added depends moderately, highly, or very highly on ecosystem services.

Green growth route

Notably, under the NTSP framework, researchers have developed an analytical report using economic modeling methods that combine two analytical tools - GTAP and InVEST - to provide an evidence base for economic development policies linked to natural capital conservation in Vietnam.

Experts at the workshop introduced the integrated economic-ecological model GTAP-InVEST, a platform that connects Computable General Equilibrium (CGE) modeling with spatially-mapped ecosystem services.

Dr. Nfamara Dampha, Research Scientist in Natural Capital Ecosystem Services at the University of Minnesota, emphasized that the analysis is structured around a rigorous comparison of two main branching scenarios.

Scenario A (Business-as-usual / fragmented growth): A trend-based trajectory reflecting the continuation of historical patterns, designed to reveal the profound hidden costs and illusory gains generated by the depletion of natural capital.

Scenario B (Green transition / resilient sustainability): This scenario assumes the effective implementation of national green growth strategies, where circular economy practices become mandatory and ecosystem service values are explicitly internalized in economic accounting.

“This tool creates a ‘closed feedback loop’ in which natural degradation is quantified as productivity shocks within the economic model,” Dr. Dampha said. “Simulation results show that if the business-as-usual growth pathway continues, potential GDP in 2030 could decline by as much as 26 per cent due to ecosystem losses. In contrast, the green transition scenario, with smart investments in nature, delivers a higher and more sustainable long-term growth trajectory.”

Within Vietnam’s current legal and economic framework, applying the integrated GTAP-InVEST model could help address several practical policy challenges.

Representatives from the Ministry of Construction and MAE attending the workshop raised concerns about risks in spatial planning and land management following the decentralization of land use conversion authority under the Land Law 2024. Experts emphasized that the GTAP-InVEST model can serve as a key tool for quantifying economic losses from ecosystem service degradation, helping local authorities avoid sacrificing ecological land for short-term gains from industrial or real estate development.

Regarding marine spatial conflicts and energy development, representatives from the Ministry of Industry and Trade and the Vietnam Administration of Seas and Islands highlighted competition for space between offshore wind projects and traditional fishing grounds. Experts explained that the model’s capacity to provide high-resolution spatial data at 300 meters (through the SEALS tool) offers a scientific basis for optimizing site selection and minimizing conflicts between renewable energy development and coral reef conservation.

Meanwhile, representatives from the Department of Climate Change and the Department of Forestry and Forest Protection raised concerns about “fake forests,” where natural forests are replaced by monoculture plantations.

Regarding the circular economy and export competitiveness, participants pointed to an “implementation paradox” in the National Action Plan on the Circular Economy under Decision No. 222/QD-TTg, where high treatment costs remain a barrier to private investment. Experts said the model can quantify the long-term economic benefits of resource reuse, providing an evidence base for Extended Producer Responsibility (EPR) and helping exporters navigate the EU’s Carbon Border Adjustment Mechanism (CBAM).

On social equity and a “just transition,” representatives from the Ministry of Home Affairs and the MAE stressed that the green transition scenario must consider social impacts, such as job losses in coal power or coastal aquaculture sectors. The GTAP-InVEST framework is therefore recommended to incorporate “just transition” indicators to ensure that the shift towards a 75 per cent renewable energy share by 2050 does not negatively affect the livelihoods of vulnerable rural and coastal communities.

Overall, according to Dr. Dampha, by leveraging this integrated modeling framework, the report provides a robust empirical evidence base for policymaking. Subsequent chapters offer a detailed historical overview of national growth, project the long-term outcomes of the business-as-usual scenario, and envision a prosperous future under a green transition pathway. The report also analyzes key sectoral intersections and outlines the systemic institutional transformations required to ensure that Vietnam’s long-term prosperity remains firmly anchored in ecological stability.

Quote

Associate Professor Nguyen Dinh Tho, Deputy Director of the Institute of Strategy and Policy on Agriculture and Environment, Ministry of Agriculture and Environment

The health, stability, and trajectory of economic systems depend on the health and functioning of the biosphere. Therefore, restructuring the relationship between nature and the economy is essential for building an economic structure that is resilient, sustainable, and equitable.

Box

The “Applying the GTAP-InVEST Model in Spatial Planning and Integrated Development” technical training workshop was held on March 3 by the Institute of Strategy and Policy on Agriculture and Environment at the Ministry of Agriculture and Environment in coordination with relevant partners.

VET- Ngọc Lan

Supply chain resilience tested

Mon, 06 Apr 2026 09:30:00 GMT

Transport and logistics networks both regional and international are under increasing strain from conflicts in the Middle East.

Recent conflicts in the Middle East are beginning to generate significant impacts on international transport and logistics networks. According to a compilation of information prepared by the Private Economic Development Research Board (Board IV), escalating tensions between the US and Iran following large-scale airstrikes on February 28 by the former have placed Asia-Europe cargo routes at risk of new disruptions.

Strategic routes under threat

The epicenter of these disruptions lies in the Strait of Hormuz, a maritime corridor widely regarded as the “chokepoint” of the global energy market. Data from the US Energy Information Administration (EIA) shows that around 20 per cent of the world’s seaborne oil passes through the Strait each day.

The compilation indicates that Iran has issued security warnings in the area, prompting international shipping lines to exercise greater caution when operating through the Gulf. Though the Strait of Hormuz has not been fully closed, rising security risks have already led some carriers to adjust routes or temporarily suspend operations in the region.

Beyond Hormuz, shipping routes through the Red Sea and the Suez Canal - key arteries linking Asian manufacturing centers with European markets - are also being affected by geopolitical instability.

According to analysis by the Viet Dragon Securities Corporation (VDSC), if security conditions continue to deteriorate, many container vessels may be forced to divert via the Cape of Good Hope at the southern tip of Africa rather than transit through the Suez Canal.

Several major container shipping companies, including CMA CGM, Maersk, and Hapag-Lloyd, have announced the imposition of war-risk surcharges of up to $1,500 per TEU for standard cargo and $3,500 per TEU for refrigerated or special cargo, while adjusting routes via the Cape to avoid conflict zones. Meanwhile, the Mediterranean Shipping Company (MSC) has temporarily suspended bookings for shipments to the Middle East.

Such route adjustments could extend transit times between Asia and Europe by an additional 10-14 days while increasing vessel operating costs and fuel consumption. At the same time, war-risk insurance premiums for vessels operating in the Gulf are being reassessed and raised by international insurers.

The ripple effects of these developments are already becoming visible in global shipping activities.

Mr. Luong Trung Thanh, CEO of Sunway Logistics, said the impact of Middle East tensions extends beyond routes directly serving the region. Intercontinental shipping typically operates under a hub-and-spoke model, in which large “mother vessels” transport bulk cargo between major regions and transship goods at hub ports before distributing them through smaller feeder routes. When mother vessels adjust schedules or face delays at transshipment hubs due to security risks, disruptions can spread across multiple routes within the global logistics network.

This interconnected nature of maritime transport means that disruptions at a few strategic chokepoints can quickly ripple across broader trade routes.

In response, Vietnamese transport authorities have begun closely monitoring developments in the Middle East and have issued warnings aimed at ensuring the safety of international transport operations.

Risk alerts activated

Instability along these strategic maritime corridors not only raises global logistics costs but also introduces new risks for international transport operations.

Amid the increasingly complex security situation in the Middle East, the Ministry of Construction has instructed sectoral agencies to proactively assess risks and review plans for international transport operations.

Under this directive, the Civil Aviation Authority of Vietnam is tasked with closely monitoring aviation security and safety developments in the Middle East and globally, while issuing timely advisories and adjusting flight operation plans in line with evolving conditions.

Vietnamese airlines have been asked to review operational plans for international routes that may be affected, assess safety risks for each flight path, and proactively adjust routes when necessary. In all cases, airlines must avoid operating through areas or airspace that present potential safety threats.

Regarding air traffic management, the Vietnam Air Traffic Management Corporation (VATM) has been assigned to monitor regional flight operations and prepare contingency plans should airlines need to adjust international flight routes to avoid conflict zones.

In the maritime sector, the Vietnam Maritime and Waterways Administration has urged ship-owners and shipping companies to regularly update information on the Middle East while closely monitoring advisories from the International Maritime Organization (IMO) and maritime authorities in other countries.

Shipping enterprises have been advised to conduct proactive risk assessments, prepare alternative route scenarios when necessary, and implement the highest security measures for vessels operating in areas at risk of conflict.

Alongside measures to ensure operational safety, regulators have also urged businesses to prepare response scenarios in case oil prices, freight rates, and shipping surcharges continue to rise, in order to mitigate impacts on international trade and transport.

While regulators intensify monitoring and warnings for transport operations, the logistics and export-import business community is increasingly confronting the practical effects of geopolitical volatility on shipping costs, delivery times, and supply chain stability.

Vietnam’s supply chain resilience

Though rising tensions in the Middle East are creating turbulence in the global transport network, this is not the first test Vietnam’s supply chains have faced. Shocks such as the Covid-19 pandemic and the Russia-Ukraine conflict already posed similar challenges to international trade and logistics. According to logistics experts, following these supply chain disruptions, many shipping lines and transport companies accumulated greater experience in route adjustments, schedule optimization, and operational risk management.

Mr. Thanh noted that geopolitical volatility is prompting multinational corporations to place greater emphasis on stability when selecting production locations and cargo transshipment hubs. In this context, countries with stable political environments and diversified trade relationships with global partners may emerge as preferred nodes in supply chain networks.

Many experts agree that Vietnam possesses several advantages under such conditions. Located along major Asia-Pacific shipping routes and maintaining trade links with numerous major markets, Vietnam is considered to have relatively strong resilience against shocks to global trade.

The country has also identified transport and logistics infrastructure development as a key economic driver, with significant investments directed in recent years towards seaports, airports, expressways, and logistics connectivity corridors to enhance cargo transport and transshipment capacity.

These developments are creating additional space for Vietnam to integrate more deeply into regional transport networks and supply chains. At the same time, traditional regional transshipment hubs such as Singapore, China, and Taiwan (China) are facing increasing pressure on infrastructure and operational capacity as global trade volumes continue to expand.

Against this backdrop, disruptions in international transport networks may also drive structural adjustments in regional logistics networks, as shipping lines and businesses search for new transshipment points offering favorable geographic positions and strong connectivity.

Another factor frequently highlighted by experts is the development of international financial centers linked with logistics and trade activities. In the structure of global commerce, the flow of goods and the flow of capital are closely intertwined. Establishing financial centers connected to major transport and logistics hubs could create more favorable conditions for cargo transshipment, investment, and distribution across the region.

Some experts have also recommended that Vietnam actively explore additional potential markets to further diversify trade flows and strengthen supply chain resilience.

VET-

Integrated logistics trends in a shifting landscape

Mon, 06 Apr 2026 08:00:00 GMT

As global trade faces mounting disruptions, integrated logistics is gaining traction as a critical approach to strengthening supply chain resilience.

Amid profound shifts in global trade, driven by geopolitical tensions, regional conflicts, evolving tariff policies, and changing consumer behaviour, integrated logistics is increasingly reshaping supply chain structures.

No longer confined to transportation, logistics is evolving into a comprehensive ecosystem where data, infrastructure, and operational capabilities are integrated within a unified model to enhance resilience and optimise efficiency.

At the CONNEXIONS 2026 conference hosted by A.P. Moller - Maersk, with the participation of senior executives from the Mekong region and Greater China at Maersk, experts noted that global supply chains are entering a phase of structural transformation. In this context, integrated logistics is seen not only as an efficiency tool but as a strategic enabler, helping businesses adapt to increasingly complex operating environments. Instead of relying on fragmented service providers, companies are moving towards a single integrated operating model that connects ocean freight, inland transport, air freight, warehousing, customs clearance, and distribution.

This approach simplifies supply chains while enhancing transparency, improving control over documentation, and strengthening lead time reliability. As supply chain disruptions become more frequent, the ability to respond quickly and flexibly has become a decisive factor in maintaining business continuity.

Vietnam-China relations in a complementary role

Amid global supply chain restructuring, Vietnam is emerging as a strategically positioned destination within regional and global value chains. This rise is supported by strong fundamentals, including improving infrastructure, an extensive network of free trade agreements, and a dynamic, increasingly skilled workforce.

Vietnam’s GDP grew by 8.02 per cent in 2025, one of the fastest growth rates in over a decade, while FDI disbursement in manufacturing and processing reached $22.88 billion, accounting for 82.8 per cent of total realised FDI. These figures underscore strong global investor confidence in Vietnam as a production base.

At the same time, economic ties between Vietnam and China are becoming increasingly strategic. Bilateral trade reached $252 billion in 2025, up 26.5 per cent year on year, reflecting not only trade growth but a deepening structural manufacturing partnership.

China remains Vietnam’s largest source of raw materials, machinery, and intermediate goods, while Vietnam is strengthening its role as both a manufacturing hub and an export gateway to global markets. This complementary relationship is accelerating the development of cross border supply chain ecosystems.

However, as manufacturers expand production in Vietnam and move from simple relocation to full supply chain redesign, operational complexity is increasing. Compliance requirements, documentation management, and cross border coordination between Vietnam and China are becoming key factors influencing performance and risk exposure.

The need to comply with multiple free trade agreements, each with distinct rules of origin and documentation requirements, presents a significant challenge for businesses. These factors directly affect costs, lead times, and compliance risks.

According to Ms. Silvia Ding, Managing Director for Greater China at Maersk, supply chain resilience has become a strategic priority for Chinese enterprises expanding globally. She noted that Vietnam is no longer a fallback option but an integral part of global production networks.

Sustainability and digitalisation are reshaping

In this context, integrated logistics is not only about cost efficiency but also about managing structural risks at scale. For businesses operating under Vietnam China dual production models, the ability to manage ocean, inland, and terminal operations under a single coordinated system provides a clear advantage, offering a single point of accountability for both operational performance and compliance.

Mr. Kevin Stuart Burrell, Managing Director for the Mekong region at Maersk, said the company is focusing on strengthening integrated logistics capabilities by connecting ocean transport with inland logistics, warehousing, and customs services.

Mr. Kevin Stuart Burrell, Managing Director for the Mekong region at Maersk, speaking at the event. (Photo: Maersk)

The expansion of bonded warehouse capacity in northern Vietnam in late 2024 highlights the strategic importance of the Hanoi and Hai Phong corridor, a key manufacturing hub for electronics and consumer goods. This investment reflects Maersk’s long term commitment to supporting supply chain development in Vietnam.

Speaking on the sidelines of the conference, Mr. Burrell emphasised that in an increasingly complex geopolitical environment, businesses must proactively adapt. Ensuring that cargo reaches its destination reliably, while maintaining transparency and communication with customers, remains the top priority.

"Maersk is focusing on three key pillars, ensuring the safety of cargo and customers, protecting seafarers and employees, and developing alternative transport solutions to mitigate disruptions." he added. By leveraging multimodal transport solutions across sea, land, and air, the company aims to maintain uninterrupted cargo flows.

The shift from a traditional shipping line to an integrated logistics provider has significantly enhanced operational flexibility, enabling faster responses to supply chain shocks and supporting customers in maintaining stable operations.

Beyond operational efficiency, sustainability is becoming a critical requirement for modern supply chains. As major markets such as the EU and the US tighten environmental standards and carbon regulations, green logistics is increasingly essential to maintaining export competitiveness.

Maersk has set a target to achieve net zero emissions by 2040. To support this goal, the company is investing in solutions such as electric trucks, dual fuel vessels, and energy efficient logistics operations.

However, the transition remains in its early stages and continues to face challenges due to the sector’s reliance on fossil fuels. In the event of significant disruptions in energy supply, even leading companies may face constraints. Nonetheless, diversifying energy sources and reducing dependence on traditional fuels is becoming increasingly necessary.

At the same time, digital transformation is playing a vital role in improving supply chain performance. The application of big data and artificial intelligence enables more accurate demand forecasting, route optimisation, and operational efficiency.

These capabilities are particularly relevant for Vietnam’s key export sectors, including electronics, textiles, and agriculture, where precision in delivery and handling is critical.

With more than 35 years of presence in Vietnam and a strong network of port infrastructure, including Cai Mep and Lach Huyen, global logistics providers are contributing to enhancing the country’s competitiveness.

Experts believe that by effectively combining integrated logistics, digital transformation, and sustainability, Vietnam can not only strengthen its position as a manufacturing hub but also emerge as a modern logistics centre in the Mekong region in the years ahead.

vneconomy-Nhu Quynh

Pressure on domestic fuel market to be alleviated

Sun, 05 Apr 2026 23:00:00 GMT

The government is acting to alleviate the pressure on Vietnam’s fuel market caused by events in the Middle East and the disruption to oil supplies.

According to the US Energy Information Administration (EIA), some 20 million barrels of oil and condensate pass through the Strait of Hormuz each day, equivalent to nearly 20 per cent of global oil consumption and accounting for more than 25 per cent of total seaborne oil trade. Notably, 84 per cent of these flows are destined for Asian markets, making the region particularly vulnerable when conflicts erupt.

The Middle East has long been described as the “heart” of the global oil industry, while the Strait of Hormuz functions as a vital “artery” for global energy flows. The conflict involving the US, Israel, and Iran that began on February 28 has, unfortunately, resulted in severe disruptions to shipping through the Strait.

While major crude oil and petroleum product exporters such as Saudi Arabia and the UAE operate pipeline networks that bypass the Strait, their combined capacity is estimated at just 2.6 million barrels a day; insufficient to compensate for disrupted maritime transport. Transport disruptions could substantially increase oil price premiums, logistics costs, and maritime insurance fees, while also affecting supply stability for refineries across Asia.

Direct pressure

Global fuel price movements during the regulatory cycle from late February to early March illustrate the volatility of the market. According to the Ministry of Industry and Trade (MoIT), the price of RON95 gasoline reached $92.78 a barrel on March 2, up $10.69, or 13.02 per cent, compared to February 27; the day before the conflict began. Even more striking was the surge in kerosene prices, which jumped to $231.42 a barrel on March 4, up $101.19, or 77.7 per cent, in the space of just 24 hours.

Average global refined fuel prices between the two dates of price adjustments - February 26 and March 5 - also rose sharply across all product categories. In the domestic market, the March 5 fuel price adjustment reflected the impact of the global surge. Retail prices rose sharply, with E5RON92 gasoline increasing by VND1,926 per liter ($0.074) and RON95-III gasoline by VND2,189 ($0.084).

Oil products also saw significant increases. Diesel 0.05S rose by VND3,758 per liter ($0.145), mazut 180CST 3.5S by VND1,807 per kilogram ($0.069), and kerosene by VND7,132 per liter ($0.274).

The sharp rise in diesel prices is putting significant pressure on transportation and logistics costs, which serve as the backbone of the economy. As fuel costs increase, the ripple effects quickly spread to consumer goods prices, from food and agricultural products to essential services, directly affecting household spending.

Risk of supply disruptions

Beyond price volatility, the risk of supply disruptions is becoming increasingly evident. According to the Vietnam National Petroleum Group (Petrolimex), Asia’s crude oil supply remains heavily dependent on the Middle East. If shipping routes are altered or crude oil needs to be sourced outside of the region due to the conflict, crude oil could become both scarcer and more expensive, pushing refined fuel prices higher while tightening supply.

At the same time, rising insurance premiums and transportation costs would increase import costs and overall business expenses. In extreme circumstances, force majeure situations could prevent delivery under existing contracts.

Vietnam currently meets around 70-80 per cent of its domestic fuel demand through the Nghi Son Oil Refinery in north-central Thanh Hoa province and the Dung Quat Refinery in central Quang Ngai province. However, according to the Binh Son Refining and Petrochemical Joint Stock Company (BSR), the operator of Dung Quat, the plant still relies on around 30-35 per cent imported crude oil, primarily sourced from West Africa, the Mediterranean, the US, and, partly, the Middle East.

If tensions in the Middle East persist, crude prices, shipping surcharges, and insurance costs could rise further, significantly increasing input costs and financial risks.

Another potential risk is supply chain disruption, as some exporting countries may restrict exports to prioritize domestic demand amid volatile maritime transport and insurance markets. Longer delivery times could directly affect refinery operations, particularly late in the second quarter and early in the third.

To address these risks, BSR has proposed that relevant authorities and the Vietnam National Industry and Energy Group (PetroVietnam) consider mechanisms allowing the company to prioritize purchases of domestically-produced crude oil and condensate. Regulators are also urged to temporarily prioritize domestic crude supply for Dung Quat and restrict crude exports during the high-risk period, potentially until the end of the third quarter this year or until global markets stabilize, to ensure national energy security.

To guarantee sufficient feedstock for operations from May to June, BSR also proposed directly purchasing crude from Vietnam’s Ruby and Chim Sao oil fields and Malaysia’s Bunga Orkid (BO) oil field at the highest bid price from the most recent tender, as a temporary measure to secure supply amid market volatility.

Coordinated measures

Given the complex international developments, the Domestic Markets Department at MoIT issued Official Dispatch No. 544/TTTN-NV on March 3. The document requests that municipal and provincial Departments of Industry and Trade instruct local market surveillance forces to strengthen inspections of fuel trading activities nationwide.

It emphasizes focused inspections, particularly targeting major fuel distributors and retail outlets. Violations such as unauthorized price increases, selling above listed prices, or trading smuggled or substandard fuel will face the strictest penalties.

To enhance enforcement effectiveness, the department also requires clear accountability from the heads of local market management agencies if violations occur without timely intervention. Such measures aim to ensure that, despite global price volatility, the domestic market operates transparently while protecting consumers and maintaining economic stability.

However, some experts note that these measures remain largely short-term responses. In the long run, Vietnam needs a strategic petroleum reserve capable of significantly reducing cost shocks when the market experiences rapid price surges.

The government has also been urged to develop official forecasting scenarios based on worst-case oil price assumptions. Preparing such scenarios would allow regulators to respond more proactively during periods of extreme volatility and provide a basis for decisions on reserves, market intervention, and maintaining public confidence.

For the oil sector, a long-term reserve strategy combined with instruments such as forward purchasing agreements and futures contracts should be seriously considered.

At the same time, Vietnam needs to diversify its energy sources and reduce reliance on imports from high-risk regions. The current crisis could also serve as an opportunity to accelerate the transition towards cleaner and alternative energy sources, helping ease cost pressures while aligning with long-term global trends.

From the corporate perspective, PetroVietnam and its subsidiaries, including Petrolimex and the PetroVietnam Oil Corporation (PVOIL), emphasize the need for greater policy flexibility.

Businesses have proposed that the State Bank of Vietnam ensure timely foreign currency availability to support fuel imports when demand and prices surge. In addition, fuel price management regulations should be reviewed to ensure that pricing mechanisms fully account for real costs, including transportation surcharges and war-risk insurance. This would help major fuel importers maintain sufficient financial capacity to continue operations and prevent localized supply disruptions.

VET-Huyen Vy

Welcoming environment vital to attracting high-quality FDI

Sat, 04 Apr 2026 23:10:00 GMT

FDI attraction and disbursement stood out in Vietnam’s economic landscape in 2025 and the momentum has continued into 2026.

Despite considerable external uncertainties in 2025, FDI flows into Vietnam were a notable highlight, with total registered capital remaining high, at $38.42 billion, and total disbursed funds reaching $27.62 billion; the highest level in the 2021-2025 period.

According to the latest announcement from the Ministry of Finance, total newly-registered FDI in the opening two months of 2026 stood at $3.54 billion, up 61.5 per cent year-on-year. Disbursed FDI, meanwhile, was estimated at $3.21 billion, an increase of 8.8 per cent.

The results reaffirm Vietnam’s enduring appeal among international investors and underscore the important role of the FDI sector in boosting the country’s export growth and expanding the size of its economy.

Strong start to 2026

Building on the momentum from 2025, Vietnam’s FDI attraction in the first two months of this year continued to show encouraging signs. A series of newly-announced projects, alongside expansion plans by existing investors, indicate that international businesses remain confident about the prospects in Vietnam.

In January alone, several large-scale FDI projects were licensed in cities and provinces nationwide, creating notable highlights for the investment landscape as the year got underway. North-central Ha Tinh province stood out in particular. Though it recorded only one new FDI project in the period, it led in capital, with more than $380 million.

Ho Chi Minh City followed in terms of capital, with 182 newly-licensed projects and $189.81 million in registered capital, then nearby Dong Nai province, with 13 new FDI projects and capital of $182.26 million.

Alongside the dynamism of new FDI projects in various localities nationwide, the optimistic sentiment of the foreign business community has further reinforced prospects for continued inflows into Vietnam.

According to the Business Confidence Index Q4 2025 report from the European Chamber of Commerce in Vietnam (EuroCham), half of European businesses in Vietnam plan to prioritize expanding and diversifying their investment activities in 2026, while 41 per cent intend to increase investment in technology, automation, and AI.

Experts believe that strong FDI inflows are likely to continue in Vietnam this year, building on the positive results of 2025 and the existing growth momentum. Mr. Alexander Ziehe, Chairman of the German Business Association in Vietnam (GBA), noted that amid geopolitical volatility and adjustments in global trade policies affecting supply chains, Vietnam has maintained stability along with long-term growth prospects. “For the European business community, particularly German investors, Vietnam continues to be viewed as one of the most promising markets in ASEAN this year as well as in the medium and long term,” he said.

In addition, improvements in infrastructure connectivity, transport capacity, and access to land for production and business activities are expected to create further space for Vietnam’s long-term growth. Despite persistent uncertainties in the global economic environment, the foreign business community continues to maintain confidence that Vietnam is increasingly asserting its role as an important link in their long-term expansion and growth strategies in the region.

Shifting to high-quality FDI

The FDI wave in 2026 is expected to be increasingly concentrated on high-quality projects with strong technological content, high added value, and significant spillover effects. Vietnam is no longer focused solely on attracting large-scale capital flows, and is gradually shifting towards a strategy centered on high-quality FDI, with an emphasis on innovation and advanced technologies, green transformation, stronger value chain links, higher localization rates, and sustainable development.

Notably, when considering investment in Vietnam, international investors are increasingly setting higher requirements rather than focusing solely on traditional factors such as support in land rental costs or tax incentives. Questions being raised today revolve around longer-term and more sustainable criteria, such as whether electricity supply is environmentally-friendly, whether domestic supply chains have sufficient depth to support production, whether administrative procedures are stable and predictable, and whether Vietnam’s technical workforce can meet requirements.

Mr. Ziehe added that many companies within the German business community have already achieved significant success investing in Vietnam. However, to sustain and attract additional high-quality investment, Vietnam still needs to further improve a range of fundamental factors, including industrial parks, logistics infrastructure, workforce quality, and the establishment of a transparent, stable, and enforceable legal framework, rather than relying solely on financial incentives. “In particular, addressing administrative bottlenecks will play a key role in helping businesses operate more efficiently and fully unlock the potential of the Vietnam market,” he emphasized.

Meanwhile, Mr. Mickaël Driol, CEO of Mekong Partners, said FDI inflows into Vietnam in 2026 are likely to maintain a positive trajectory but will become increasingly selective. Investment decisions are now more cautious and accompanied by stricter conditions. Rather than focusing primarily on incentives, he continued, investors are increasingly prioritizing fundamental factors such as stability during project implementation, energy security, alignment with environmental, social, and governance (ESG) standards, and transparency in governance.

Specifically, the structure of FDI inflows will become more important than the sheer scale of capital attracted. High-tech and complex projects in sectors such as electronics, green manufacturing, digital infrastructure, and advanced industrial services are expected to become key drivers of long-term value creation for the economy. Beyond expanding supply chains, these investments also promote the transfer of skills and technologies and enhance Vietnam’s export capacity.

Therefore, to strengthen competitiveness in attracting investment, Mr. Driol believes the Vietnamese Government should place greater emphasis on policy consistency and implementation capacity in the time ahead. In particular, establishing clear roadmaps for land access, utility infrastructure, and project approval processes would help reduce uncertainty and shorten implementation timelines for foreign investors. Energy planning, meanwhile, should move ahead of actual demand, particularly in developing renewable energy, strengthening the power grid, and utilizing transitional fuel sources.

Stronger coordination between localities will also become a key factor in attracting foreign investors, as an increasing number of major corporations are implementing multi-location development strategies in Vietnam. “At this new stage of development, Vietnam will need to enhance its competitiveness in attracting high-quality FDI not only through commitments, but through its ability to deliver those commitments consistently and at scale,” Mr. Driol emphasized.

The amended Law on Investment took effect on March 1, introducing a range of changes aimed at simplifying administrative procedures, reducing conditional business lines, and strengthening business autonomy.

One notable provision allows foreign investors to establish a business before obtaining approval for an investment project, provided they meet market access conditions. The Law also provides a clearer list of projects subject to investment policy approval, replacing previously fragmented regulations.

Procedures for adjusting investment projects have been simplified. Two cases that previously required adjustments to investment policy approval - changes of 20 per cent or more in total investment capital and changes in appraised technology - have been removed.

The scope of special investment procedures has also been expanded. Certain projects in industrial parks, high-tech parks, digital technology zones, and financial centers may now be exempt from a number of administrative requirements.

In addition, investment projects are now permitted to adjust their operating term during implementation, whether extending or shortening it. The Law also abolishes procedures for outward investment policy approval and narrows the entities required to obtain an outward investment registration certificate.

Overall, the amendments are expected to streamline investment procedures, reduce regulatory barriers, and create a more flexible environment for both domestic and foreign investors.

VET-Bao Tram

Toward a new model of export

Sat, 04 Apr 2026 05:30:00 GMT

Self-reliance must be the focus for Vietnam amid a volatile global trade landscape.

Despite the various “aftershocks” stemming from the global geopolitical situation and severe domestic natural disasters, Vietnam’s total trade turnover in 2025 reached $930.6 billion, up 18.2 per cent against 2024, with exports accounting for $475.04 billion, rising 17 per cent. Its trade surplus of more than $20 billion is not merely a financial statistic but also affirmation of its position in the global trade landscape.

At the recent “2026 Export Promotion Conference: Synchronized Solutions for High and Sustainable Growth”, held by the Ministry of Industry and Trade (MoIT), participants noted that global trade will continue to fluctuate rapidly and unpredictably due to geopolitical tensions, rising protectionism, and tariff policy adjustments by major economies. Meanwhile, increasingly stringent technical standards, green requirements, sustainability criteria, and the impact of digital transformation and AI pose new challenges for production and export activities.

Dependence risks

Vietnam’s export growth still faces structural constraints, including a heavy dependence on foreign-invested enterprises (FIEs), reliance on imported inputs across many industries, limited brand-building capacity, and difficulties in meeting high and comprehensive standards in international markets, particularly for small and medium-sized enterprises (SMEs).

One of the greatest barriers is the imbalance in the structure of exporters and markets. Mr. Tran Thanh Hai, Deputy Director General of the Agency of Foreign Trade at MoIT, pointed to a sobering reality: though manufacturing and processing account for as much as 85 per cent of Vietnam’s exports, this value is still heavily concentrated in the FDI sector, which contributes roughly two-thirds of total export turnover. This underscores the need to raise the share of domestic enterprises to create a more balanced and sustainable export structure.

“Export turnover is now concentrated in electronics and mobile phones, which could pose risks, especially when supply chains are disrupted,” he explained. “In addition, the US accounts for up to one-third of export market share, creating significant exposure as reciprocal tariffs and protectionist barriers increase.”

He stressed that growth by expansion alone has little space left, while shocks from markets, policies, and global supply chains are becoming increasingly unpredictable. Heavy dependence on a few key markets such as the US and China leaves exports vulnerable to international policy and trade fluctuations. Notably, Vietnam still lacks strong national brands in export markets and largely performs contract manufacturing for foreign companies and brands.

In 2026, alongside these persistent challenges, speakers agreed that the tasks facing the industry and trade sector will be formidable. Mr. Nguyen Anh Son, Director General of the Agency of Foreign Trade, said 2026 is particularly significant as the first year of implementing the 2026-2030 Five-Year Socio-Economic Development Plan, marking the start of a new phase aimed at fulfilling the targets set by the 14th National Party Congress.

Pressure from new highs

Government Resolution No. 01/NQ-CP dated January 8, 2026, sets a target of 15-16 per cent export growth in 2026 compared to 2025, with total export turnover to reach $546-550 billion, equivalent to an estimated monthly average of $45-46 billion.

To meet these goals, Mr. Son said MoIT has outlined six key groups of solutions: expanding production and developing new export products with higher domestic value added; shifting from processing to manufacturing-based exports; improving compliance with technical and environmental standards and proactively responding to trade remedies; strengthening links between domestic firms, FIEs, and global corporations to develop industrial clusters and closed supply chains; closely monitoring major economies’ trade policy adjustments while modernizing market information, trade promotion, and digital transformation; maximizing free trade agreements (FTAs), diversifying export markets, and developing new ones; and continuing with administrative reforms and simplifying specialized inspections in import-export activities.

“Export targets for 2026 will be challenging, requiring strong efforts from ministries, local authorities, and businesses,” Mr. Son emphasized. “Breakthrough, feasible policies that can be implemented immediately are essential to boost export growth, increase domestic value, leverage FTAs, remove bottlenecks in institutions and logistics, and enhance business competitiveness.”

Dr. Can Van Luc, Chief Economist at BIDV, said 2026 will likely be turbulent as global demand remains weak, with many countries still absorbing the impact of tariffs. To navigate these challenges, Vietnamese enterprises will need flexible strategies supported by targeted financial policies.

He proposed expanding domestic firms’ access to capital through credit guarantee funds for exporting SMEs, preferential credit packages, and stronger supply chain financing. Vietnam should also prioritize green credit with concessional interest rates for high-tech agriculture, renewable energy, and production transformation that meets environmental and green trade standards.

Tax and export rebate policies should be refined, and an export credit insurance mechanism established to protect exporters and banks from risks. Businesses must also increase self-reliance, boost localization rates, and their deepen participation in global supply chains. Priority should be given to supporting industries and strategic sectors such as semiconductors, AI, and green energy; promoting high-tech products; developing national brands; and expanding service exports, particularly logistics and tourism.

Efforts should focus on technology adoption, green and modern logistics development, and sustainable infrastructure, alongside support measures such as export insurance guarantees, bank credit, stronger linkages between FIEs and SMEs in supply chains, and initiatives to raise localization rates.

Strategy focused on depth

Mr. Phan Duc Hieu, Standing Member of the National Assembly’s Economic Committee, noted that businesses should not focus solely on traditional key export items but also develop products with export potential, including those not previously emphasized in strategies. Vietnam must fully leverage its FTAs and build brands to increase value added.

Recommendations also highlight the need for a comprehensive import-export strategy covering both goods and services, not only to meet turnover targets but also to create space for enterprises and contractors to enhance competitiveness and integrate more deeply into global value chains.

In the current context, Mr. Hai stressed that shifting the export growth model from quantity to quality, from scale expansion to higher value added and stronger domestic capabilities, is no longer optional but imperative.

In addition to promoting goods exports, greater attention should be paid to service exports, building foundational industries around key products, increasing domestic value, securing input supply, and strengthening RD. Agricultural exports should prioritize brand building linked to traceability and green standards. Vietnam should also continue negotiating FTAs, tap emerging markets such as the Middle East, Africa, and Latin America, and expand cross-border e-commerce.

VET-Vu Khue

A symmetry between large enterprises and startups

Fri, 03 Apr 2026 09:30:00 GMT

Though wildly different in scale, the coming together of major enterprises and startups to resolve specific problems represents a viable shared approach.

The rise of open innovation is pushing big companies to partner with startups to resolve specialized challenges in areas such as AI and operations. Though large enterprises - both State-owned and private - command vast capital, infrastructure, and foundational technologies, their flexibility and ability to adapt to emerging technologies such as specialized AI, blockchain, and green energy often lag behind the market’s breakneck pace of change. Meanwhile, for startups, this rise means embracing a “fail fast” mindset and targeting niche markets overlooked by industry giants.

Resolving “problem statements”

According to Mr. Nguyen Quoc Huy, Director of the National Innovation Center (NIC), the convergence of these two players is an inexorable, irreversible trend. Large enterprises today do not need financial support from the government in an “ask-give” mechanism; they need a “connection” mechanism. The most effective connection, he said, is not corporate social responsibility (CSR) or charitable sponsorship but business partnerships with startups, where large firms present the “problem statements” and startups deliver the “solutions” through agile technological applications.

A vivid example of this mindset is MoMo. From a simple e-wallet, MoMo has evolved into a super app through an integration-driven strategy. Mr. Nguyen Ba Diep, MoMo’s Co-Founder, said that instead of developing all services in-house, the company is willing to “open its doors” to startups in retail, marketing, tourism, and other sectors to access its user base of about 30 million people. MoMo’s “problem statement” is how to keep users engaged longer on the platform, while the “solutions” come from the diverse, convenient services provided by partner startups. This represents a typical win-win symbiotic model.

Similarly, in smart transportation, the experience of specialized firms such as Tasco and VETC shows that once policy bottlenecks are removed, system connectivity can expand much further. This not only helps companies optimize operations but, more importantly, delivers greater convenience and transparency to citizens - the end users. “Now, who leads whom matters less than whether solutions are delivered quickly, accurately, and effectively,” a representative of a transportation company said.

Rising complexity

Assigning “problem statements” to startups is no longer confined to software or digital services; it is rapidly expanding into manufacturing and support industries - fields traditionally seen as “closed arenas” with stringent standards.

Samsung Vietnam provides a clear example of a localization strategy. With total investment reaching into the tens of billions of dollars, Samsung cannot, and does not want to, manufacture every component itself. The giant’s “problem statement” for the Vietnamese market is highly specific and challenging: it needs suppliers that meet global standards for screws, molds, packaging, and more, all with extremely low tolerances and competitive costs.

These are exceptionally difficult challenges, yet their rigor has become a driving force for strengthening Vietnam’s domestic manufacturing capabilities. Alongside issuing these “problem statements,” Samsung has sent experts to provide hands-on consulting and training, enabling Vietnamese firms to gradually meet requirements. As a result, from having almost no qualifying suppliers, Vietnam now has many companies deeply integrated into Samsung’s global supply chain.

According to a Samsung representative, its success in Vietnam would not have been possible without the country’s ecosystem of small and medium-sized enterprises (SMEs). Vietnamese companies have indeed helped the South Korean giant ease logistics cost pressures and ensure stable local supply.

Experts believe that in the new context, the “problem statements” facing businesses are becoming increasingly complex and directly tied to the international competitiveness of large enterprises. These include digitizing an entire factory’s production processes without even brief operational disruption, or automating industrial waste treatment and greenhouse gas inventories to comply with mechanisms such as the Carbon Border Adjustment Mechanism (CBAM) for exports to Europe and the US.

Such challenges often fall outside the core expertise of traditional manufacturing conglomerates. Instead of establishing costly, high-risk in-house RD or technology divisions, outsourcing ideas and solutions from deep-tech startups is seen as a more economical and promising model. Startups can offer AI-based carbon measurement solutions, autonomous warehouse robots, and more, helping large enterprises “go green” and “go smart” far faster than through independent research.

Creating momentum

2026 and the years ahead have been identified as a breakthrough phase for Vietnam’s economy. To achieve high growth, major enterprises cannot be satisfied with annual growth of 5-7 per cent; they need powerful catalysts to reach double-digit expansion. Innovation is viewed as one of the key drivers.

However, for partnerships between major “cranes” - especially State-owned enterprises (SOEs) - and startups to truly bear fruit, strong institutional reforms are required. Politburo Resolution No. 57-NQ/TW and, more recently, Resolution No. 79-NQ/TW, on the development of the State economic sector, encouraging State-owned enterprises (SOEs) to invest in and forge links with other businesses along value chains, are expected to provide fresh momentum and a safe legal corridor for innovation.

Previously, the priority placed on preserving State capital made leaders of major corporations hesitant to collaborate with startups, which were seen as high-risk entities. Resolution No. 79, which emphasizes the role of large SOEs in leading smaller companies, has helped remove both psychological and policy constraints. It marks a shift from an administrative, command-style approach to one driven by market development needs. State enterprises are no longer bound by an “ask-give” mechanism but are encouraged to proactively seek solutions from the private sector to optimize performance.

Among pioneering companies, pressure from the rapid surge of AI is forcing them to embrace innovation or risk being left behind. This pressure, in turn, has become a positive driver, pushing enterprises to open up and adopt bold solutions from the startup community.

VET-VET Staff

AI’s role in modernizing education

Fri, 03 Apr 2026 04:00:00 GMT

As AI makes its presence felt in the workplace, thought must also be given to the technology’s role in modernizing education.

Labor markets are being constantly reshaped by AI, which is altering the nature of many industries and job roles. As a result, the traditional university model - fixed-degree programs delivered through a set number of credits inside lecture halls - can no longer endure in its current form. Vietnamese universities therefore face an urgent need to restructure curricula, shift decisively towards competency-based education, integrate AI, and align more closely with the constantly evolving demands of the country’s labor market.

According to Associate Professor Dao Thi Thu Giang, President of Dai Nam University in Hanoi, AI does not render academic disciplines obsolete; it makes repetitive tasks obsolete and exposes the limitations of legacy training models focused on memorization and formulaic exercises. “The essence of AI, including generative AI, is to augment human capability,” she said. “AI can replace highly procedural operations, but it cannot replace critical thinking, decision-making, creativity, professional ethics, or human connection. The core question is not whether a field of study is still necessary, but how it is taught.”

Keeping pace

Speaking with Vietnam Economic Times / VnEconomy, Associate Professor Nguyen Binh Minh, Director of the Institute of Digital Technology and Economics at the Hanoi University of Science and Technology, also argued that AI will not eliminate knowledge or professions but is making many traditional teaching methods obsolete, particularly those centered on memorization and repetitive tasks that machines can easily perform.

He identified the biggest bottleneck in higher education as institutional inertia. Technology evolves daily, he noted, while many lecturers remain in the comfort zone of traditional methods in which the teacher is the central authority and sole repository of knowledge. As AI and digital transformation challenge that dominance, the instinctive response is often concern or denial rather than acceptance. The greatest challenge, he said, is persuading lecturers to abandon the mindset of being “the one who knows everything” and instead become co-creators of knowledge alongside students and technology.

Education experts broadly agree that AI is restructuring work at the task level, transforming the nature of roles across the economy. Citing International Monetary Fund estimates, Associate Professor Minh said nearly 40 per cent of global jobs, and up to 60 per cent in advanced economies, will be affected by AI. The World Economic Forum forecasts that, by 2030, about 22 per cent of jobs will shift, with 170 million new roles created as 92 million disappear.

“At the Institute of Digital Technology and Economics, we do not treat technology and economics as separate pieces,” he explained. “We view them as an integrated whole under a training philosophy of ‘engineering combined with financial-economic problem-solving.’ This is a distinctive strength of our university, elevated for the digital era.”

On the sidelines of VinFuture Science and Technology Week 2025, Professor Tan Yap Peng, President of VinUni University, said that amid rapid advances in AI, digital transformation, and interdisciplinary science, no university can achieve excellence alone. Through collaboration, shared data, and AI-enabled platforms, the scientific community can produce research and solutions with long-term impact beyond the boundaries of any single institution, or even any single country. In the decade ahead, he continued, success will depend on mastering intellectual resources and data in an era defined by generative AI, the knowledge economy, and rapidly-changing employment models.

Associate Professor Phan Huu Nghi, Deputy Director of the Institute of Banking and Finance at the National Economics University, noted that Vietnam’s planned digital asset and cryptocurrency exchange, which is expected to involve banks, securities firms, and technology companies, will create substantial growth opportunities for digital banking, digital finance, and fintech. His Institute’s program development, he said, has consistently anticipated shifts in Vietnam’s financial market, launching new majors over time, from public finance and securities to advanced finance, high-quality programs, and one of Vietnam’s first fintech training programs.

Universities restructuring curricula

Associate Professor Giang said the central challenge is that changes to the labor market are outpacing the education system’s ability to adapt. University programs can no longer focus solely on transmitting knowledge; they must produce graduates with practical workplace capabilities. Faculty must continually update their own expertise while adapting to rapid technological change. At the same time, today’s students face an expanding array of career options but often lack clear direction and self-guided learning skills.

She outlined three main directions for curriculum reform. First, integrate AI as a foundational competency embedded across disciplines rather than taught separately. Second, shift from knowledge transmission to competency development, especially applied skills, systems thinking, and real-world problem-solving. And third, align training with the fluid demands of the labor market instead of fixed occupational frameworks.

At Dai Nam University, 2026 marks the second year of an accelerated training transformation in response to rapid AI development, with AI being integrated as a learning and working tool for students across all disciplines. “Our goal is not merely to teach students how to use AI tools, but to train individuals capable of mastering their work in a labor market continually reshaped by AI,” she said.

Amid new economic and labor market developments, Associate Professor Nghi told a recent conference on digital assets in the banking and financial system that the Institute of Banking and Finance will continue innovating its curricula, maintaining its current fintech program while adding a digital banking program developed through international partnerships and localized for Vietnam.

The Ministry of Education and Training, meanwhile, has issued a national framework requiring at least 120 credits for undergraduate programs, including compulsory courses such as political economy, physical education, national defense, and philosophy, along with basic graduate standards. Recent regulations also mandate the integration of digital knowledge to ensure students have foundational understanding of digital transformation and technology.

Beyond that framework, universities have autonomy to design programs for each major and specialization, subject to domestic or international quality accreditation. Many institutions, including the National Economics University, are pursuing international accreditation to enhance global integration, often adapting standard foreign curricula to Vietnam’s context while adding institution-specific components.

In terms of content, students must master core disciplinary knowledge while developing technological competence. “Theoretical learning without technological integration cannot meet real-world demands,” Associate Professor Nghi said. “English and digital literacy are no longer advantages but basic requirements. What remains lacking is interdisciplinary capability and the ability to apply knowledge to practical problems, such as finance, risk management, data analysis, basic programming, or using AI as a support tool.”

Professor Peng added that with a talented and highly-motivated student population, Vietnam has an opportunity to leap forward by focusing on AI, green technology, health sciences, and digital transformation, while strengthening public-private partnerships and attracting high-quality talent. “With the right approach, Vietnam can narrow the gap with leading countries and build a modern, flexible higher education model,” he believes.

VET-Bao Binh

Challenges and opportunities for insurance market in Vietnam

Thu, 02 Apr 2026 10:00:00 GMT

Vietnam’s insurance development strategy must reflect an ever-changing world and the associated coverage needs.

Vietnam’s insurance market has long been seen as a high-growth, relatively stable pillar of the country’s financial system. As the 2026-2030 period gets underway, however, both domestic and global conditions have fundamentally changed. For example, climate change is driving more frequent and severe disasters, population aging is accelerating beyond forecasts, and the digital and green transformations are creating dual pressures, even as the economy pursues double-digit growth, major infrastructure expansion, and stronger social security. Together, these forces are reshaping expectations for the role of and development model for the insurance industry.

Non-life insurance challenge

Across the region, many countries have proactively adjusted their strategic thinking on insurance. In this context, Vietnam’s insurance industry faces an urgent need to reposition itself as a pillar of the national risk governance system, helping the economy respond effectively to major shocks and maintain a sustainable growth trajectory. This is also a common trend in insurance development strategies across Asia and an important reference for Vietnam in supplementing new components to refine its insurance market development strategy through 2030.

One major limitation of its insurance market today is that disaster risk products still operate mainly under traditional mechanisms, based on post-loss damage assessment before compensation. This approach prolongs payouts, while the hardships faced by policyholders, especially in large-scale disasters, are not addressed promptly. Decision No. 07/QD-TTg touches on the development of agricultural and disaster insurance products, but breakthrough mechanisms in product models remain lacking.

Meanwhile, several countries in the region have been pursuing different approaches. In its newly-announced strategy, Thailand’s Office of Insurance Commission (OIC) aims to establish a legal framework prioritizing parametric insurance, which pays out based on trigger indices, such as rainfall, wind speed, or seismic intensity, recorded by independent meteorological agencies exceeding predefined thresholds, rather than on-site damage assessment. This approach enables rapid, transparent payouts and is particularly suitable for large-scale disaster scenarios.

From this perspective, incorporating a pilot sandbox mechanism for parametric insurance into Vietnam’s insurance development strategy has become necessary. The model is especially suitable for sectors vulnerable to natural disasters and climate change, such as agriculture and tourism, while enhancing the role of insurance in risk governance and strengthening economic resilience.

In addition, Vietnam has a long coastline with key coastal economic zones, such as Quang Ninh, Hai Phong, and Da Nang, where large volumes of high-value assets, including industrial parks, seaports, and tourism infrastructure, are concentrated. As disaster risks grow in frequency and severity, studying the issuance of catastrophe bonds (CAT bonds) should be considered an important financial contingency tool.

These bonds allow insurers, reinsurers, or governments to transfer large disaster risks (storms, earthquakes, floods, pandemics, etc.) to capital markets. Investors receive higher interest rates but may lose part or all of their principal if a predefined catastrophic event occurs. This mechanism disperses risk, reduces pressure on the State budget and traditional insurance systems, and strengthens financial resilience against major shocks.

For Vietnam, as its economy and coastal asset value continue to expand, relying primarily on budget support and insurer compensation is not sustainable. The gradual adoption of CAT bonds would help complete its national risk-prevention financial architecture in line with its insurance market development strategy through 2030.

Building an elderly care ecosystem

Vietnam’s population aging is progressing faster than projected, posing growing challenges to social security and finance systems. Decision No. 07 orients RD of insurance products for the elderly, as well as integrated healthcare and wellness products. In practice, however, a deeper structural shift is required: moving from a model primarily focused on “selling financial products” to one providing “comprehensive care solutions,” linking insurance with healthcare services, long-term care, and lifelong health management.

International experience - especially from Japan, which is a “super-aging” society - offers important references. Several major insurers in the country not only provide insurance products but also invest directly in elderly care ecosystems.

Thailand’s fifth Insurance Development Plan (2026-2030), meanwhile, focuses on responding to a super-aging society by expanding health insurance and implementing financial education programs for the elderly, thereby strengthening insurance’s role in social security and long-term financial stability.

Consideration should be given to Vietnam’s insurance development strategy expanding policy space to allow insurers deeper participation in healthcare and wellness, including direct investment in hospital infrastructure, nursing homes, and high-quality care facilities. This approach would not only reduce pressure on the public healthcare system but also build an integrated service ecosystem in which citizens are protected and cared for continuously from working age to old age.

At the same time, more flexible coordination mechanisms between social insurance and commercial insurance should be studied to form a “second layer of protection” complementing the existing social security system, enhancing financial safety and quality of life in retirement.

Insurance as a green investor

Vietnam’s insurance market development strategy through 2030 emphasizes strengthening insurers’ financial capacity and risk management, but their role as long-term institutional investors, especially in green infrastructure and energy transition, remains unclear.

Most Vietnamese insurers’ investment portfolios are concentrated in government bonds and bank deposits. Only a few large life insurers, such as Prudential, AIA, and Manulife, have begun purchasing green bonds issued by commercial banks.

This safety-oriented structure indicates that long-term capital from the insurance sector remains underutilized, while Vietnam faces enormous funding needs for green transformation commitments and meeting net-zero targets.

International experience shows that with an appropriate policy framework, insurers can become major capital providers for green transformation. In South Korea, the government’s “Green New Deal,” launched in July 2020, strongly promotes the role of insurers and financial groups in financing green infrastructure. In Malaysia, the Value-based Intermediation (VBI) program has guided the financial sector, including the sharia-based Takaful insurance system, to prioritize investments with positive environmental and social impacts, gradually integrating sustainable development goals into insurers’ investment activities.

Vietnam should therefore incorporate a clear “green investment” orientation into its insurance development strategy, with a focus on building legal and technical frameworks enabling insurers to invest effectively in green bonds and even directly in renewable energy and sustainable infrastructure projects.

Key measures include developing blended finance models with State seed capital, establishing legal frameworks for bank-insurance co-financing, encouraging credit guarantee institutions to support energy project bonds, and reducing risk weights for transparently-labeled green investments. This would channel long-term premium funds, especially from life insurance, into green and sustainable sectors rather than primarily into government bonds and bank deposits, as at present.

To sustain double-digit growth in the years ahead, digital transformation in the insurance sector has become unavoidable, but it will need to go deeper, anchored in data integration that supports the digital economy’s core infrastructure. Experience in Singapore and South Korea points to a shift towards “Open Insurance,” where data can be shared, with customer consent, between insurers, banks, and fintech platforms through common API standards. The model enables highly-personalized, real-time products, expanding coverage while improving pricing accuracy.

Vietnam could consider incorporating the creation of a National Risk Pricing Database into its insurance market development strategy. Standardized, anonymized data on healthcare, traffic accidents, and natural disasters would give insurers a stronger foundation to design products that are more precise, affordable, and accessible to a broader share of the population.

In short, the insurance market development strategy through 2030 under Decision No. 07 remains a key planning framework, reflecting the government’s vision of a safe, transparent, and efficient market. Yet amid rapidly-shifting socio-economic conditions and global environmental pressures, the strategy will require continued updates, incorporating new structural thinking and policy tools.

Embedding pillars such as transformation finance and green investment, proactive disaster response, elderly care ecosystem development, and open data will deepen the strategy’s resilience and adaptability. If done effectively, Vietnam’s insurance sector could evolve beyond its traditional claims-paying function into a true economic “shock absorber,” supporting sustainable and prosperous growth in the new era.

VET-Nam Son

Potential of forest economy in Vietnam

Thu, 02 Apr 2026 04:00:00 GMT

Millions stand to benefit from Vietnam’s forest economy as the country moves closer to establishing a carbon market.

Amid the global race towards net-zero emissions, forests are becoming vast carbon “banks.” Managing by carbon footprint and clearly defining forest carbon rights will create a “green lever” for Vietnam’s forestry economy, improving livelihoods for millions of people involved in forest protection. As the country gradually forms a carbon market, measuring and managing greenhouse gas emissions becomes a critical requirement across many production sectors.

At a recent press conference organized by international non-profit Forest Trends, Dr. Vu Tan Phuong, Director of the Vietnam Forest Certificate Office (VFCO) at the Vietnamese Academy of Forest Sciences, said a “carbon footprint” refers to the total greenhouse gas emissions generated across the entire production and consumption value chain of a product, typically expressed in tons of CO₂ equivalent.

These emissions come not only from CO₂ but also from other greenhouse gases such as methane, nitrous oxide, and hydrofluorocarbons. CO₂ serves as the standard unit for conversion, enabling assessment of energy and resource consumption as well as the environmental efficiency of products and services.

Managing by carbon footprint

Carbon emissions are commonly divided into three scopes: first, direct emissions at production facilities, such as factory operations or agricultural activities; second, indirect emissions from purchased energy sources, primarily electricity; and third, emissions across the entire supply chain, including transportation, distribution, and related activities before products reach consumers.

Vietnam has gradually refined its legal framework to develop a carbon market, notably through Decree No. 119/2025/ND-CP amending and supplementing Decree No. 06/2022/ND-CP on greenhouse gas emissions management and emission quotas, and Decree No. 29/2026/ND-CP establishing a domestic carbon exchange, laying the foundation for carbon credit trading.

Under the domestic carbon market mechanism, companies receive annual emission quotas. Those that exceed permitted levels must purchase carbon credits or invest in technological upgrades to reduce emissions. Current regulations allow companies to use carbon credits to offset up to 30 per cent of excess emissions, with the remainder requiring reductions through technological and management solutions. The mechanism is expected to increase demand for carbon credits, creating opportunities for sectors capable of carbon sequestration, particularly forestry.

Forest carbon credits can be generated through two main pathways: reducing emissions and increasing carbon sequestration capacity. Measures such as limiting deforestation, reducing biomass burning, changing production practices, improving forest quality, and extending harvesting cycles can all generate credits. However, projects must undergo registration and measurement, reporting, and verification (MRV) processes under international standards, with independent validation required for recognition.

Dr. Phuong noted that remote sensing technology and satellite data are playing an increasingly important role in monitoring forest changes and assessing carbon sequestration capacity. Programs such as Landsat provide free data that enhances accuracy and transparency in forest resource management and the development of the carbon credit market.

Example from Gia Lai

According to the Gia Lai Provincial Forest Protection Department, the central highlands province has a natural area of more than 2.15 million ha, including nearly 988,000 ha of forest land - over 692,000 ha of natural forest and more than 295,000 ha of planted forest. On average, each hectare of forest can absorb about 4-6 tons of CO₂ a year. At an estimated average of 5 tons per hectare annually, Gia Lai’s forests could absorb nearly 4.9 million tons of CO₂ each year.

If converted into carbon credits and traded at a reference price of about $10 a ton, the potential economic value could reach into the tens of millions of dollars annually. This represents significant potential but requires careful, sustainable, and properly regulated exploitation.

Experts believe forest carbon credit trading could generate sustainable revenue for the State budget and forest owners while promoting forest protection and development, improving livelihoods for local communities, particularly ethnic minorities who depend on forests. With its existing potential and coordinated action from authorities, forest carbon credits are expected to become a new growth path for Gia Lai’s forestry sector, protecting “green assets” while creating sustainable socio-economic value.

To develop a national standard framework for forest carbon credits, Vietnam is considering two credit-generation approaches: afforestation and reforestation (ARR) and improved forest management (IFM). Recent studies indicate that IFM applied to existing planted forests, especially extending harvesting cycles, is a feasible short-term approach to increase biomass stocks and stored carbon.

However, implementing this measure faces challenges. Beyond requiring advanced forest management techniques, the model must be applied at sufficient scale while ensuring environmental integrity, economic efficiency, and compatibility with current management conditions. In many localities, planted forests remain fragmented, and decisions on harvesting, replanting, or extending business cycles largely depend on smallholder participation. Building linkage mechanisms and encouraging forest owner participation is therefore becoming a key factor in developing the forest carbon credit market.

Defining forest carbon rights

According to Associate Professor Nguyen Ba Ngai, Vice Chairman of the Vietnam Forest Owners Association (VIFORA), Vietnam holds a major advantage with its diverse forest ecosystems, including more than 10.1 million ha of natural forest and 4.7 million ha of planted forest. Carbon density in forest biomass ranges from 29 to 146 tons per hectare, creating substantial potential for conversion into carbon credits. However, significant challenges remain for Vietnam to become a strong carbon economy.

First is the legal gap. The current Law on Forestry focuses mainly on tangible products such as timber, while carbon is categorized as a forest environmental service rather than an independent asset, complicating the determination of ownership, usage rights, and revenue sharing from carbon credits.

Second is ownership determination. About 87 per cent of Vietnam’s forest area is publicly-owned and managed by the State, while forest owners and local communities directly protect forests and deliver emission reductions. Without clear allocation mechanisms, disputes or risks of double-selling carbon credits could arise. Communities living near forests often receive benefits that do not match their contributions despite their crucial role in protection.

And third is technical complexity and market risk. To gain international recognition, carbon credit projects must undergo rigorous MRV processes under international standards, requiring significant cost and expertise.

To capitalize on opportunities in the green economy, Associate Professor Ngai proposed several strategic solutions. Carbon rights should be legalized as a special type of asset, incorporated into the Law on Forestry and recognized as an intangible asset under the Civil Code to facilitate investment and transfer. Transparent benefit-sharing mechanisms are also needed, allowing the State to delegate or assign benefit rights to forest owners while ensuring most revenue is reinvested in local communities. Establishing a blockchain-based carbon credit registry is seen as a way to prevent fraud and enhance market transparency.

The global trend is to separate carbon rights from land ownership to facilitate commercialization and participation in international green finance markets. For Vietnam, completing the forest carbon rights framework would not only enable the effective use of green resources but also strengthen the country’s position in the global green economy transition.

VET-Chu Khoi

Vietnam Economic Times March, 30 2026

Wed, 01 Apr 2026 06:30:00 GMT

Vietnam Economic Times Issue 450 | Monday, March 30 2026

Dear readers,

In order to achieve the net-zero emissions by 2050 target Vietnam committed to at COP26 in 2021, an energy transition - from traditional energy to renewable energy - has been identified as one of the most important and effective solutions and in line with global trends.

The revised National Power Development Plan VIII (PDP8), approved on April 15, 2025, under Prime Ministerial Decision No. 768/QD-TTg, identifies the maximum development of electricity sources from renewable energy (wind power, solar power, and biomass power, etc.) and continues to increase the proportion of renewable energy in the electricity source structure and electricity production.

Targets set include reaching a total onshore and nearshore wind power capacity of 26,066-38,029 MW by 2030, with total offshore wind power capacity to meet domestic electricity demand of 6,000 MW-17,032 MW (and expected to be operational in the 2030-2035 period), while aiming for 113,000-139,097 MW by 2050. Offshore wind power capacity for new energy production, meanwhile, is to reach some 15,000 MW by 2035 and about 240,000 MW by 2050, while the total capacity of solar power sources (including concentrated solar power and rooftop solar power, and excluding solar power sources under Clause 5, Article 10 of the Law on Electricity No. 61/2024/QH15), is to reach 46,459-73,416 MW by 2030, aiming for total capacity of 293,088-295,646 MW by 2050. By 2030, total biomass power capacity is to stand at 1,523-2,699 MW, electricity produced from waste and solid waste 1,441-2,137 MW, and geothermal electricity and other new energy approximately 45 MW.

The aim is for biomass electricity to hit 4,829-6,960 MW by 2050, electricity produced from waste and solid waste approximately 1,784-2,137 MW, and geothermal electricity and new energy some 464 MW. The revised PDP8 also sets a target of reaching a total capacity of hydropower sources of 33,294-34,667 MW by 2030, aiming for 40,624 MW by 2050.

These goals require Vietnam in general and its electricity sector in particular to mobilize a substantial amount of financial, technological, and human resources and to establish cooperative endeavors, joint ventures, and partnerships with foreign players, including private corporations and international organizations, with a central role played by the Just Energy Transition Partnership (JETP) that Vietnam and the International Partners Group (IPG), which includes G7 member countries, the EU, and other partners such as Norway and Denmark, established in December 2022 to mobilize capital and technology to help Vietnam transition from coal energy to green, low-carbon energy.

The recent EU-Vietnam Global Gateway Business and Investment Forum, with the theme “Investing together in a sustainable future,” organized by the Delegation of the European Union to Vietnam in collaboration with the Foreign Investment Agency at the Ministry of Finance and the European Chamber of Commerce in Vietnam (EuroCham) on March 24 in Hanoi, discussed on a host of key areas that act as “leverage” for Vietnam’s sustainable development, such as green transportation, energy transition (including the deployment of renewable energy, modernization of the power grid, energy storage, and improving energy efficiency), infrastructure connectivity, the dual transition (green and digital), and environmental, social, and governance (ESG) standards. The EU also announced an investment package of €560 million (around $645 million) at the Forum, in support of Vietnam’s energy transition and economic development.

As a result, the Forum has opened a potential opportunity for further cooperation between Vietnam and the EU in the former’s energy transition.

To further amplify the discussions surrounding the energy transition, our Cover Story in this edition focuses on the theme “Renewable energy with proposed development solutions from EU corporations,” providing an overview of renewable energy development in Vietnam and the potential for international cooperation, especially between Vietnam and the EU in offshore wind power projects and other renewable energy projects, based on the important foundation of the JETP.

Warmest regards

Dr. CHU VAN LAM
CHAIRMAN OF THE EDITORIAL BOARD

-Vietnam Economic Times - VnEconomy

Vietnam to be deeper integrated regionally

Tue, 31 Mar 2026 06:30:00 GMT

The Asian Development Bank’s recent Asian Economic Integration Report 2026 highlights how rising global uncertainty is pushing Asia towards deeper regional integration, positioning Vietnam at the center of Southeast Asia’s expanding production networks.

Economic integration across the Asia-Pacific has continued to advance despite rising geopolitical tensions, trade policy uncertainties, and disruptions to global supply chains, according to the Asian Economic Integration Report 2026 released recently by the Asian Development Bank (ADB).

The region remains highly integrated through trade, investment, finance, and movement of people. Trade in goods and services continues to be the strongest driver, followed by mobility and FDI, while financial integration remains comparatively weaker.

Within this landscape, Southeast Asia stands out as the most integrated sub-region in the Asia- Pacific. Its economies are closely connected through production networks, trade agreements, and investment flows, placing countries such as Vietnam at the center of evolving regional supply chains.

Regional context

According to the report, Asian economies have demonstrated strong trade resilience despite heightened policy uncertainty and reciprocal tariffs introduced in 2025. Exports to the US declined in several major exporters, but overall global exports continued to grow as shipments were redirected towards other markets, particularly within Asia and Europe. Diversification of export destinations helped sustain momentum even as traditional markets became less reliable.

In particular, despite the tariffs, most major Asian economies still recorded positive overall export growth last year. Taiwan (China) recorded the strongest performance, with total exports rising 35 per cent year-on-year, followed by Vietnam (17 per cent), the Philippines (15 per cent), and Thailand (13 per cent). South Korea began the year with negative export growth in the first quarter but cumulative growth gradually increased, particularly in the latter half of the year. Similar upwards quarterly momentum was observed in Taiwan (China) and across most Southeast Asian economies.

At the same time, the structure of global value chains in Asia is changing. The region is gradually shifting from downstream assembly operations towards more upstream, higher value added activities. Forward linkages - supplying intermediate goods used in production elsewhere - are strengthening, reinforcing Asia’s role as a central supplier in global manufacturing networks.

However, backward linkages remain highly concentrated. Many Asian economies rely heavily on imported inputs for production, making supply chains vulnerable to disruptions from geopolitical tensions, trade restrictions, or logistical bottlenecks. The report highlighted the need for diversification across products, partners, and sectors to reduce exposure to shocks. Strengthening trade agreements and improving trade facilitation and logistics cooperation are identified as key policy priorities.

Early estimates suggest that FDI inflows into Asia in 2025 remained subdued, despite a stabilization of new investments in 2024 following a sharp decline in the previous year. Asia remains an important driver of global FDI, accounting for about 40 per cent of global inflows and outflows. It attracted $614 billion in FDI in 2024, accounting for approximately 40 per cent of global inflows and outflows.

Digital investment has become a major component of these flows. Digital FDI accounted for about 35 per cent of inflows to Asia in 2024 and grew by roughly 25 per cent compared with 2023. AI, fintech, and data centers together represented about three-quarters of digital investment, with these sectors reshaping regional integration by supporting cross-border services, e-commerce, and digital connectivity.

Financial integration is advancing more slowly. The intraregional share of portfolio debt assets increased to 22.2 per cent in 2024, while portfolio equity assets rose to 21.5 per cent. On the liabilities side, intraregional shares reached 31 per cent for debt and 22 per cent for equity.

Movement of people and tourism remain important components of integration. Asia’s outbound migrants reached 100 million in 2024; double the level in 1990. Migration outside the region accounted for 61.2 per cent of the total, while 38.8 per cent occurred within Asia. Remittance inflows totaled $392.8 billion in 2024, up 7.4 per cent from the previous year and representing 43.4 per cent of global remittances.

Tourism has recovered strongly since the pandemic. International arrivals reached 96.3 per cent of 2019 levels in 2024, and tourism receipts exceeded pre-pandemic levels by 5 per cent. The sector contributed $3.2 trillion to the regional economy, equivalent to 8.4 per cent of GDP, and supported approximately 200 million jobs.

Taken together, those trends indicate that regional integration is broad-based, encompassing trade, capital, labor, and services. As global uncertainty intensifies, these links are increasingly viewed as a stabilizing force.

Vietnam’s position

Southeast Asia’s position as the most integrated sub-region reflects its extensive participation in trade and production networks across Asia. Intraregional trade, investment, and infrastructure connectivity have strengthened ties between economies, reducing reliance on external markets and enhancing resilience to global shocks.

Vietnam’s economic structure is closely aligned with these regional dynamics. Export-oriented manufacturing links the country to supply chains that span multiple Asian economies. Participation in global value chains has supported industrialization and growth, but also creates exposure to fluctuations in external demand and disruptions to input supplies.

As Asia moves towards higher value added production and stronger forward linkages, Vietnam’s role within these networks is evolving. The country’s manufacturing sectors are increasingly integrated into upstream activities, supplying components and intermediate goods used in production elsewhere in the region.

Digital transformation is another important factor. Rapid growth in digital FDI across Asia creates opportunities for economies embedded in regional networks, particularly those with manufacturing and technology capabilities. Investments in AI, data centers, and digital services are expanding the scope of cross-border economic activity beyond traditional goods trade.

At the same time, the vulnerabilities identified in the report, such as reliance on imported inputs, concentration of supply sources, and exposure to geopolitical risks, also apply to Vietnam. The country’s economic performance is closely tied to the health of regional supply chains and trade routes.

Migration, remittances, and tourism further reinforce regional linkages. Labor mobility supports income growth and consumption, while tourism flows strengthen services trade and cross-border connectivity. These channels contribute to economic stability even as trade conditions fluctuate.

The Asian Economic Integration Report 2026 emphasizes that deeper regional cooperation is essential to navigating an uncertain global environment. Policy priorities include promoting diversification of exports and partners, strengthening trade agreements, expanding digital connectivity, improving financial infrastructure, and facilitating mobility of people.

Regional cooperation can also help address vulnerabilities associated with concentrated supply chains and volatile capital flows. By pooling resources and coordinating policies, economies can improve resilience to external shocks and sustain growth.

For Southeast Asia, integration is both an opportunity and a framework for managing risk. Economies embedded in regional networks benefit from diversified markets, investment sources, and production links, while those less connected may face greater exposure to global volatility.

Vietnam’s position within the most integrated sub-region places it at the center of this transformation. Its growth prospects are closely linked to the success of regional cooperation and the continued evolution of Asia’s production and investment networks.

VET-Diep Linh

Higher growth target set in the national interest

Mon, 30 Mar 2026 09:30:00 GMT

Vietnam’s high-growth economic targets make continued broad-based reform crucial.

The 14th Party Congress set significantly higher targets for the 2026-2030 period than in previous terms: average annual GDP growth of at least 10 per cent; annual workplace productivity growth of about 8.5 per cent; and total social investment averaging about 40 per cent of GDP over five years. Achieving these goals will require that Vietnam’s economy shift to a new development model that relies more on science and technology, innovation, and digital transformation while maintaining a market-based foundation.

As 2026 marks the first year of the new Congress term, with many ambitious targets in place, it demands extensive institutional reforms. Which fundamental macro-economic institutional bottlenecks must be removed to achieve these objectives needs to be addressed.

Paving the way

Institutional reform is critical because it creates long-term stability, limits policy approaches constrained by political terms, and reduces businesses’ dependence on personal relationships. The principles of a law-governed State - greater transparency, stronger accountability of State agencies, and public participation in lawmaking (as stipulated in the Constitution) - must continue to be implemented.

Posting growth above 10 per cent will be a test of institutional reform, especially if pursued at high speed. The rapid pace of institutional completion and amendments to economic institutions aimed at removing bottlenecks - without comprehensive design - has created new, uncoordinated problems. The speed and scale of legal revisions in recent years are unprecedented in the country’s legislative history. Such sweeping changes require time for regulators, businesses, and citizens to understand and implement. The number of laws that must be quickly revised by subsequent laws and National Assembly (NA) resolutions (under different procedures) has increased.

Among 234 projects launched or inaugurated amid much fanfare at the end of 2025, many particularly large projects were reviewed, approved, and implemented at a much faster pace than before. However, if streamlined procedures apply only to a few mega-projects by select investors, while most enterprises remain trapped in a legal maze characterized by regulatory gaps, excessive procedures, and overlapping rules, this cannot be considered genuine institutional reform. Meanwhile, resolved cases have not been publicly disclosed as precedents for other projects.

The State apparatus was streamlined over the course of a year, but results in reducing bureaucracy, simplifying administrative procedures, and accelerating decision-making remain limited. Some issues that appear to be simple procedural matters are, in practice, difficult to resolve.

One positive aspect of changes to the local government model is that all levels now have People’s Committees and People’s Councils; in line with the Constitution. However, removing the distinction between urban and rural administrations is questionable. While merging agencies has disrupted previous inertia, it has also created new challenges, most notably the effective placement and organization of personnel.

In education, waiving tuition and textbook costs for all levels of general education nationwide is a significant step towards equal opportunity. However, abrupt changes in textbooks illustrate how private sector investors can lose incentives for long-term investment due to policy shifts without compensation or transition time.

On August 22, 2025, the Politburo issued Resolution 71-NQ/TW requiring a single nationwide textbook set. The Law on Education was urgently amended at the NA’s late-2025 session, authorizing the Minister of Education and Training to select one unified textbook set for nationwide use. On December 26, the Ministry issued Decision No. 3588/QD-BGDDT choosing one of the three approved sets for nationwide use starting in the 2026-2027 academic year, rather than compiling a new set. This decision did not address the status of other approved sets, and the Law on State Compensation Liability has not been applied in practice.

Meanwhile, the NA has approved the establishment of a specialized court at Vietnam’s International Financial Center, allowing the appointment of foreign judges - a highly unusual provision to ensure foreign investors’ confidence in Vietnam’s judicial system.

In practice, institutional reform efforts are yet to reassure businesses about long-term investment: policies remain inconsistent and insufficiently grounded in reality, and policy changes are not announced early enough or accompanied by transition periods, thereby creating additional difficulties for businesses.

Salary reform is among the least advanced areas. Adjustments in recent years have mainly meant nominal increases to offset inflation. The Party Central Committee’s Resolution No. 27-NQ/TW, dated May 21, 2018, called for a position-based salary system, but in 2024 the implementation of five new salary scales and nine new allowances for the public sector was officially postponed. Implementation will now depend on issuing a job position framework following administrative restructuring and the two-tier local government model. For the time being, only base salary increases and revisions to leadership allowances for certain positions, effective from 2026, are planned.

Delayed or no salary reform will hinder progress in other reform areas. When public officials’ incomes are not commensurate with positions, the apparatus lacks motivation to serve citizens and businesses effectively. Whether the current streamlining of the apparatus will generate sufficient budget savings to enable position-based pay remains an open question.

Promoting science and technology

The target for RD spending by 2030 is 2 per cent of GDP, with at least 3 per cent of total annual budget expenditure allocated to science and technology. In the 2026 State budget estimate, spending on the Ministry of Science and Technology and two academies accounts for only 0.4 per cent of total central budget expenditure; spending on the Ministry of Education and Training and two national universities accounts for 0.7 per cent; and spending on the Ministry of Health is 0.7 per cent (including the policy of one free annual medical checkup for all citizens, including children and adolescents).

Total spending on the science and technology, education and training, and health ministries, along with the two academies and two national universities, therefore accounts for 1.8 per cent of central budget expenditure, while the Ministry of National Defense and the Ministry of Public Security account for 34 per cent.

By 2030, the goal is for more than 60 per cent of science and technology funding to come from society. This requires that research institutions be closely linked with businesses capable of adopting and applying technology. However, amendments to the Law on Corporate Income Tax have not included provisions to encourage this objective. As a result, national resources remain concentrated primarily on security and defense rather than on education, healthcare, science and technology, and reform.

Legal and policy changes to promote science and technology development will remain a major challenge in the years to come. Scientific advancement is difficult without international cooperation, yet regulations governing international conferences and outbound and inbound delegations have recently tightened, and visa procedures for scientists have become more restrictive than policies for tourist visas.

Proposals to score and rank digital citizens are not appropriate given the current, still-imperfect level of technology. A digital citizen rating system could profoundly affect individuals’ lives, similar to a court judgment but applied across society. Mechanisms are lacking to ensure the accuracy of collected data and to allow citizens to correct errors, not to mention clear classification criteria.

Real estate and capital

The Constitution affirms that land is collectively owned by the people, with the State acting as the representative owner and unified manager; it does not state that all land is State-owned or that the State holds private ownership of all land (separate from public assets). Land legislation should therefore align with constitutional provisions. This relates to land recovery rules: when the State grants land use rights certificates, their value must be recognized.

Trading off the construction of vast urban areas spanning tens of thousands of hectares, featuring thousands of identical housing units, or urban modernization against the denial of land use rights already recognized by the State would come at a high cost to public trust given the principle that the State serves the people.

Hanoi’s 100-year master plan, which envisions relocating 860,000 residents from the inner city area, raises concerns about repeating past mistakes of forced resettlement. Disregarding land use rights would rapidly widen the wealth gap, and severe inequality would hinder high growth. When individuals’ property rights over their homes are not secured, the material foundation of patriotism itself is weakened.

Following local administrative mergers, surplus public assets should be quickly put to use to avoid waste. Prioritizing their allocation to healthcare and education could improve public services, but implementation requires clear principles, criteria, conditions, and a transfer roadmap.

Development requires diversifying capital sources by strengthening the role of financial markets and the stock market, for long-term capital mobilization, while gradually reducing reliance on bank credit, which is typically short term. Capital policies, however, must be consistent and avoid abrupt swings between extremes. In 2022, credit for real estate was suddenly tightened, freezing the corporate bond market, then loosened in 2025, supporting real estate but driving sharp price increases. In 2026, there are again indications of tighter real estate credit.

Amid changes in the global economy, net foreign portfolio outflows from Vietnam have increased in recent years, from VND18.2 trillion ($700 million) in 2020 to VND122.8 trillion ($4.7 billion) in 2025, even as the stock market was upgraded and the VN-Index surpassed 1,800 points.

To promote Vietnam’s corporate bond market, regulators need to help resolve bottlenecks faced by issuers struggling to handle collateral, similar to measures applied in the real estate sector. This would help improve the legal framework, especially regarding collateral enforcement for debt repayment, which is currently a major issue for the banking system.

Raising the budget deficit to 5 per cent of GDP in 2026-2030 to boost public investment will require issuing a corresponding volume of government bonds. This could push interest rates higher, even as both the State budget (via the State Treasury) and businesses seek low rates. Allowing Vietnamese enterprises to borrow abroad also requires caution, as default could lead to trade-offs involving land sovereignty or international legal disputes.

The launch, inauguration, and technical opening of 234 projects at the end of 2025 had a campaign-style character reminiscent of the planned-economy era. Though more than 80 per cent of total investment in these projects (over VND3,400 trillion, or $130.8 billion) came from non-State sources, funding was concentrated among a few large private conglomerates, often in joint ventures. Meanwhile, small and medium-sized enterprises, which account for more than 98 per cent of all businesses and generate most employment in Vietnam, have not participated broadly, contrary to the spirit of Politburo Resolution No. 68 on private sector development.

Lump-sum taxation, meanwhile, draws on lessons from the “Contract 10” agricultural reforms, under which farmers benefited after fulfilling State obligations. With improved tax administration through digitalization, shifting from lump-sum taxation to self-declaration is considered necessary. However, current tax thresholds adversely affect household businesses. Though the tax-exempt revenue threshold was raised from VND100 million ($3,845) a year to VND500 million ($19,230), this remains inappropriate because household income is not revenue but revenue minus business costs. To be comparable to salaried individuals, who can access personal deductions of VND15.5 million ($595) a month plus VND6.2 million ($240) per dependent, the household tax threshold would need to be much higher than the current VND500 million a year.

Calculations show that a monthly salary of VND15.5 million ($595) is equivalent to business revenue of about VND155 million ($5,960) a month, or VND1.86 billion ($71,540) a year, assuming borrowing costs of 10 per cent as a proxy for business expenses. Without further adjustments to ensure household businesses can maintain a basic standard of living, they may be unable to continue operating or contributing to the economy’s resilience against shocks such as pandemics, natural disasters, geopolitical volatility, and unpredictable shifts in global trade policy.

FDI dominates trade

Vietnam’s trade surplus contributes to its economic growth. The record of $28.3 billion was set in 2023 but has been declining: to $24.9 billion in 2024 and $20 billion in 2025, down 20 per cent year-on-year. The surplus has come mainly from exports to the US and the EU in recent years, while deficits have been concentrated in trade with China and South Korea. In 2025, the surplus with the US stood at $133.9 billion, up 28.2 per cent, while the deficit with China reached $115 billion, up 39.6 per cent.

The share of foreign-invested enterprises (FIEs) in both exports and imports is very high and continues to rise. In exports, the foreign share increased from 70.6 per cent in 2015 to 77.3 per cent in 2025, and in imports from 58.6 per cent to 69.8 per cent. The gap between the domestic sector and the FDI sector remains large and shows no sign of narrowing. While exports have surged, driven by strong FDI growth, the domestic sector has declined sharply, and its contribution to export growth has shrunk significantly. Private sector investment remains very low.

From July 31, 2025, the US imposed a 20 per cent tariff on all goods from Vietnam, following a 46 per cent rate applied from April 9, 2025, and 40 per cent on transshipped goods. The negative impact on the economy and inflation has been milder than initially forecast because import tax costs have been shared along the supply chain between producers, importers, retailers, and consumers. In 2026, tariff uncertainty may persist, while US monetary policy tools, such as low interest rates and a weaker dollar, could affect the global economy as much as tariffs.

In November 2025, the two sides issued a Joint Statement on a US-Vietnam Framework for an Agreement on Reciprocal, Fair, and Balanced Trade. Because the US trade deficit with Vietnam ranks third globally, most Vietnamese exports will still face tariffs of up to 20 per cent even if Vietnam grants near-zero tariffs on almost all US exports, with only a limited number of products receiving reciprocal zero tariffs from the US. The Agreement may also expand to cover digital trade, services and investment, intellectual property, labor, environment, customs, trade facilitation, and State-owned enterprise trade.

Trade turnover with China reached $256 billion in 2025, up 26.5 per cent from 2024. Imports alone hit a record of some $186 billion, up 29 per cent from $144 billion in 2024. Persistent large deficits have turned Vietnam into a market for consumption and assembly processing, making strategic economic autonomy difficult. This is one reason industrialization goals have struggled, limiting industrial development and affecting employment. Though the issue has been recognized, policy responses have yet to deliver positive results. Non-tariff import controls have been tightened at border gates and in domestic circulation (such as requirements for invoices proving origin and e-invoicing), at times negatively affecting the domestic economy. Meanwhile, Chinese enterprises are expanding investment in Vietnam, with some beginning to offer technology transfer commitments.

Transforming the growth model to achieve breakthrough growth is closely tied to institutional quality. To attain real strategic autonomy, institutional reform must above all ensure strong protection of property rights and freedom of business. Without a stable and predictable business environment, companies cannot make long-term investments.

VET-Phan Thanh Ha

A pivotal year for Vietnam’s semiconductor industry

Mon, 30 Mar 2026 00:00:00 GMT

With much effort already expended, 2026 is considered a pivotal year for Vietnam’s semiconductor industry.

Vietnam’s semiconductor industry has been gradually moving beyond the orientation and policy discussion stage and towards concrete implementation in recent times. Alongside the Law on Science, Technology and Innovation, the Law on Digital Technology Industry, which took effect on January 1, has laid a legal foundation for semiconductor development in the country. The first standalone legislation of its kind globally, the Law aims to promote the digital industry, with a focus on semiconductors, AI, and digital assets.

Investment incentives

The Law on Digital Technology, together with other laws on investment, corporate income tax, and import-export activities, introduces special support mechanisms and incentives for industrial semiconductor activities. For example, semiconductor manufacturing RD projects with investment capital starting from VND6 trillion ($230.76 million) will be subject to a 5 per cent tax rate for 37 years; a tax exemption for six years followed by a 50 per cent reduction for the next 13 years; full exemptions from land and water surface rental fees; personal income tax exemptions for highly-qualified personnel for five years; and five-year visa and work permit exemptions for highly-skilled foreign workers.

According to Mr. Nguyen Khac Lich, Director General of the Department of Information Technology Industry at the Ministry of Science and Technology, these are exceptional, sector-specific incentives. Comparable incentives in other priority sectors typically apply only to projects with investment capital of at least VND30 trillion ($1.15 billion).

In November, the Ministry also issued six circulars guiding implementation of the Law on Digital Technology and submitted two decrees to the government, both of which took effect simultaneously with the Law on January 1. “This demonstrates the Vietnamese Government’s comprehensive vision in creating favorable conditions for key suppliers to participate in the domestic value chain,” Mr. Lich said.

On December 24, the Minister of Science and Technology issued Decision No. 4386/QD-BKHCN defining the functions and structure of the national center for support of semiconductor chip pilot production, called the Vietnam National Multi-Project Wafer Coordination Center (VNMPW/CC), under the Ministry’s Department of Information Technology Industry. The Center will connect research institutions and chip design companies with fabrication plants (fab plants), packaging and testing facilities, and technology partners at home and abroad, supporting the entire pilot production chain from design to chip evaluation.

Mr. Bui Thanh Minh, Deputy Professional Director of the Office of the Private Economic Development Research Board (Board IV), noted that Vietnam’s push for semiconductor development comes amid a global resurgence of industrial policy. Excessive reliance on a few manufacturing hubs is now viewed as a strategic risk, he explained, and as global supply chains shift, Vietnam cannot remain outside such a trend. Moreover, the country’s growth model, based largely on low-cost labor and resource extraction over the past 30-40 years, has helped lift it out of poverty but is reaching its limits in boosting productivity and incomes.

“As the population ages and labor advantages decline, the need to transition to a knowledge, technology, and high value-based growth model becomes urgent,” he said. “Following the path of many economies, after light industry and electronics, semiconductors and AI-related technologies represent the next inevitable stage of development rather than a temporary choice.”

Asserting a role

Vietnam has identified semiconductors as a strategic technology crucial for enhancing its competitiveness, driving its economic growth, and strengthening its national standing. At the SEMI EXPO Vietnam 2025 in November, Deputy Minister of Science and Technology Bui Hoang Phuong said the country currently hosts more than 170 foreign-invested semiconductor projects with total registered capital of nearly $11.6 billion. Vietnam’s semiconductor supply chain mainly focuses on two stages: chip design and chip packaging and testing.

Ms. Linda Tan, President of SEMI SEA, emphasized Vietnam’s remarkable progress, noting that the country has refined policies, strengthened infrastructure, and heavily invested in talent - laying the groundwork for a vibrant, globally-connected semiconductor ecosystem.

Also attending the event, Ms. Ly Nguyen, Manager of Asia Pacific Advisory at the Tony Blair Institute for Global Change (TBI), highlighted Vietnam’s favorable conditions for gradually asserting its role in the global semiconductor value chain. To move closer to becoming a regional hub or a recognized player on the global semiconductor map, she said Vietnam must ensure coordinated alignment between policies, implementation capacity, and links across stakeholders, from government and businesses to educational and research institutions.

Vietnam is on the right track, Ms. Ly noted, having adopted both a semiconductor development strategy and a workforce development strategy for the sector. The country must clearly define the core value it can offer, leverage its human capital advantages, and select segments that deliver sustainable value aligned with long-term socio-economic goals, while identifying the needs it can meet regionally and globally.

Clear delineation of stakeholder roles, including government, industry, and academia, is essential for effective coordination, knowledge diffusion, and the establishment of measurable targets for each priority segment of the semiconductor industry.

Standardizing and harmonizing technical standards with international benchmarks would give domestic suppliers a significant competitive advantage in becoming Tier 1 vendors to global corporations, she added. Clear policies, especially strong intellectual property protection, are also a leading concern for foreign investors in high-tech sectors, including semiconductors.

Opening new opportunities

These policy and institutional requirements align with expectations from global technology corporations. According to Mr. Brian Tan, Regional President of Southeast Asia at Applied Materials, the Covid-19 pandemic made supply chain resilience a top priority, shifting the world from a “just-in-time” to a “just-in-case” mindset. Applied Materials’ supply chain strategy rests on four pillars.

The first is sustainability and resilience, as the fast-growing semiconductor industry faces geopolitical and macro-economic volatility. The second is delivery time and environmental sustainability, with supply chains moving closer to operational hubs. Before Covid-19, Southeast Asia accounted for about 10 per cent of Applied Materials’ global supply chain spending; this has now risen to more than 20 per cent, reflecting a strategic shift.

The third pillar is trust, as customers prefer to work only with reliable partners - a message consistently conveyed to suppliers across the ecosystem. And the fourth is intellectual property protection, viewed not only as a business process requirement but also as a matter of corporate security for companies holding core technologies.

According to H.E. Kees van Baar, Ambassador of the Netherlands to Vietnam, understanding partners’ needs will open new opportunities for Vietnam as manufacturing capacity grows and the supporting industrial ecosystem strengthens. These factors position Vietnamese companies to become suppliers to global semiconductor companies, particularly those already operating in the country. Strengthening Vietnam’s semiconductor capabilities will diversify global supply chains, benefiting both Vietnam and other countries.

Vietnam currently has 58 design companies, including 13 domestic and 45 foreign firms. The government is developing a project to build a small-scale, high-tech semiconductor fab plant to serve research, design, and production needs, with operations planned by 2030. In addition, there are eight packaging and testing projects - one domestic and seven foreign-invested, including by Intel, Amkor, and Hanna Micron. Vietnam is also seeing the emergence of companies supplying semiconductor materials and equipment, such as Coherent and VDL Enabling Technologies Group.

Mr. Lich said Vietnam’s approach to semiconductor development is to define a clear national strategic direction, with the State acting as a facilitator through policy while enabling deep private sector participation in global supply chains. Rather than pursuing a broad-based model, Vietnam is focusing on segments aligned with domestic capabilities and creating favorable conditions for businesses to connect with international corporations. “Overall, three factors determine international companies’ investment decisions in Vietnam: the policy environment, geopolitical advantages, and human resources,” he said.

VET-

Vietnam’s energy transition to go ahead

Sun, 29 Mar 2026 02:00:00 GMT

A decisive period looms for Vietnam’s energy transition as efforts move from planning to action.

Vietnam’s energy transition is moving from policy formulation to implementation, creating a new landscape for investors and developers navigating regulatory reforms, market restructuring, and rising ESG (environmental, social, and governance) expectations. Industry experts at a recent BritCham Vietnam webinar entitled “Vietnam’s Energy Transition 2026: Unlocking Opportunities for Investors Developers” highlighted how the country is entering a decisive phase shaped by National Power Development Plan VIII (PDP8), evolving market mechanisms, and the growing role of private capital.

Regulatory shift

Mr. Giles Cooper, Partner at Allens, Hanoi Branch, said Vietnam is moving into a phase where policy direction is translating into actionable regulations. “We are definitely moving into the implementation phase of PDP8,” he noted, emphasizing that recent resolutions from the Politburo, National Assembly, and government collectively establish a coordinated policy environment for energy projects.

A central theme is the expanded role of private investment. Given the scale of capital required for new generation capacity, authorities have explicitly called for stronger participation from both foreign and domestic investors, including through public-private partnerships and transmission projects - areas previously dominated by State entities.

Structural reforms are also being introduced to modernize the electricity market. Among the most significant is the planned adoption of a two-component retail tariff system combining capacity charges and energy charges, a model widely used internationally to improve cost recovery and ensure stable payments to generators.

Administrative streamlining is another priority as the government has committed to reducing approval timelines and bureaucratic steps that have historically delayed projects. At the same time, policymakers have acknowledged the need for stronger contract enforcement mechanisms, particularly in dispute resolution - a longstanding concern among investors.

Previously, even minor adjustments to master plans required approval from the highest levels of government, causing prolonged delays. New rules now allow certain amendments at the provincial level, enabling planning to better align with on-the-ground realities.

Recent regulations are also lowering barriers to market entry. Circular No. 66 on investor selection allows special purpose vehicles without prior project experience to participate, provided they demonstrate adequate financial and technical backing. The measure aims to unblock stalled projects while encouraging partnerships, including technology transfer to local partners.

Meanwhile, Direct Power Purchase Agreement (DPPA) reforms are expected to further transform the market. Proposed amendments would expand participation to industrial parks, economic zones, and major energy users such as data centers and electric vehicle charging operators.

Crucially, the removal of tariff caps on physical direct-wire DPPAs could restore commercial flexibility and stimulate private renewable projects, particularly rooftop solar installations that face fewer land and permitting constraints.

Mr. Cooper also highlighted emerging regulations supporting new technologies. Circular No. 62 establishes Vietnam’s first tariff framework for standalone battery energy storage systems connected to the grid - a foundational step towards integrating variable renewable energy and enhancing system reliability.

Competitive market reality

While regulatory reforms are creating opportunities, developers face a markedly different environment from the rapid expansion triggered by feed-in tariffs.

Mr. Murthy Nuni, Managing Director of Marshal Green Energy Limited, described Vietnam’s power sector as entering a more disciplined phase shaped by market fundamentals rather than subsidies. Vietnam currently has about 87,600 MW of installed capacity, with renewables accounting for roughly 28 per cent of capacity but only about 12 per cent of actual generation, reflecting curtailment and operational challenges.

Solar projects generated approximately 20.5 billion kWh in the first ten months of 2025, operating at an average capacity of around 15 per cent, with big projects achieving about 25 per cent. Curtailment remains a significant risk, particularly during periods of high hydropower output following severe floods and storms.

Despite these challenges, PDP8 sets aggressive expansion targets through 2030, projecting total investment of about $134.7 billion across all power sources, according to Mr. Nuni. However, grid expansion has lagged behind generation growth. Renewable projects can be built relatively quickly - solar within a year and wind in about two years - but transmission infrastructure can take two to four years or longer due to land acquisition and permitting hurdles.

The government is now planning substantial transmission investment through 2030, though Mr. Nuni suggested it may still fall short of what is needed to integrate large volumes of intermittent renewable energy.

Market mechanisms are also evolving. New policies introduce annual ceiling prices for different energy sources, with solar tariffs significantly lower than earlier feed-in tariff levels. As a result, developers must adapt to tighter margins and competitive bidding processes.

Implementation at the provincial level is still maturing. Though investor selection processes are being decentralized, some projects have attracted only a single bidder, indicating that competitive frameworks are still developing.

Looking ahead, hybrid models combining renewable generation with storage are expected to play a key role, particularly for corporate buyers seeking reliable green electricity. “We see strong potential in projects that integrate renewables with storage to provide firm power around the clock,” Mr. Nuni said, adding that many corporate customers currently prefer wind energy because it is easier to integrate than large volumes of solar power.

As tariffs decline, technological innovation will become essential. Larger wind turbines in the 8-12 MW range for nearshore and offshore projects could significantly reduce costs, while improved engineering and project planning will be critical to maintaining profitability.

Gateway to capital

Beyond regulatory and market shifts, ESG performance is emerging as a decisive factor in project viability and access to financing.

Dr. Hanh Nguyen, Principal Technical Consultant at ERM, said ESG considerations have become central to risk management and investor confidence in Vietnam’s renewable sector. “ESG is no longer just about compliance - it is central to investment readiness,” he added.

With Vietnam’s renewable industry entering a new phase driven by commercial fundamentals rather than subsidies, opportunities are expanding into offshore wind, energy storage, and transmission infrastructure. In this environment, projects must demonstrate robust ESG performance to secure international financing.

The concept of a “just transition” is also gaining prominence, emphasizing that the shift to net-zero must be fair and socially responsible. This includes issues such as gender equality, energy access, workforce transition, and community well-being.

Different stakeholders have different priorities. Investors focus on social risks and supply chain transparency, governments prioritize workforce reskilling and social protection, and communities seek resilient livelihoods and shared benefits. Developers must therefore navigate such expectations to build inclusive and sustainable projects.

Globally, ESG frameworks are expanding rapidly, from the UN Sustainable Development Goals to supply chain regulations and sustainable finance standards. This momentum is influencing investor requirements in Vietnam.

Key environmental issues include biodiversity protection, marine impacts for offshore wind, pollution control, and climate resilience. Social risks often relate to land acquisition, livelihood impacts - particularly for fishing communities - labor conditions, and stakeholder engagement. Governance factors include strong management systems, supply chain due diligence, and alignment with human rights principles.

Dr. Hanh emphasized that ESG integration should begin at the earliest stages of project development, moving beyond a compliance-based approach towards strategic integration at both the corporate and project levels.

One case study highlighted the impact of strong ESG performance. The Lotus Wind Power Project in central Quang Tri province secured a $173 million green loan package from international lenders after comprehensive environmental and social assessments, mitigation planning, and community engagement measures. “Strong ESG performance strengthens community acceptance and enhances long-term resilience,” he concluded.

VET-Diep Linh

How to access transition finance?

Sat, 28 Mar 2026 09:00:00 GMT

Vietnam must provide “brown” enterprises with a workable pathway to access transition finance and modernize their operations.

Prime Ministrial Decision No. 21/2025/QD-TTg on environmental criteria and the certification of investment projects under the green classification list formally defines the “standards” for the economy and industries. The decision sets out both qualitative and quantitative environmental criteria for projects to be recognized as “green,” but this clarity also creates a barrier for businesses that have not met such standards.

For example, a steel plant seeking financing to convert outdated blast furnace technology to cleaner electric arc furnace technology falls into a gap. It does not meet the “green” criteria under Decision No. 21 to access concessional loans, while commercial banks and environmental, social, and governance (ESG)-focused investment funds are reluctant to lend because it belongs to a high-emissions group. This leads to a vicious cycle in which “brown” (steel, cement, thermal power, etc.) enterprises are cut off from capital, lack funds to invest in new technology, continue using outdated processes that generate even higher emissions, and face the risk of becoming stranded assets as tariff barriers such as the EU’s Carbon Border Adjustment Mechanism (CBAM) tighten.

Transition finance and regional experience

By definition, transition finance refers to the provision of financial products and services to support high carbon-emitting enterprises shift towards lower-emission business models aligned with long-term net-zero goals. In essence, transition finance does not require companies to become “green” immediately but accepts funding for gradual “clean-up” activities (for example, retrofitting coal plants to co-fire biomass or installing carbon capture technology). Typical financial instruments currently in use include transition bonds and sustainability-linked instruments.

Transition bonds are debt instruments that enable companies in “brown” sectors to raise capital for greener business activities, support technological transformation, mitigate environmental impacts, and reduce greenhouse gas emissions. Unlike green bonds, which finance projects already meeting “green” standards, transition bonds finance projects moving from “brown” to “green.” Buyers typically include ESG investment funds, international financial institutions such as the International Finance Corporation (IFC) and the Asian Development Bank (ADB), pension funds, and insurance funds, all of which require issuers to present clear long-term transition strategies and commitments to specific emission-reduction targets.

Sustainability-linked bonds are instruments whose proceeds may be used for general corporate purposes, including debt repayments, working capital, or investment, but whose financial characteristics vary depending on whether the issuer meets committed sustainability performance targets. If emission-reduction targets are not achieved, the bond’s interest rate increases. Sustainability-linked loans have similar features.

To address the core bottleneck of transition finance, Vietnam should study the ASEAN Taxonomy for Sustainable Finance, first issued in 2021 at COP26 and updated in March 2023 and March 2024. From its second version, the ASEAN Taxonomy introduced the “amber tier,” or transition zone, allowing credit for projects that still emit but have clear, science-based pathways towards the green tier.

Based on the ASEAN Taxonomy, countries such as Singapore, Thailand, and Malaysia have rapidly legalized “amber” provisions for “brown” industries transitioning towards “green,” deploying transition finance instruments to unlock capital flows with significant positive outcomes.

In Singapore, the Monetary Authority of Singapore issued the Singapore-Asia Taxonomy, clearly defining the “amber” category with strict but practical quantitative criteria for coal plants scheduled for early retirement. Financing is allowed for coal plants transitioning to ammonia or hydrogen co-firing, subject to a sunset date requiring the full retirement of old technology by a fixed deadline. Singapore has also piloted transition credits, under which coal plant operators committing to early closure receive carbon credits based on avoided emissions, with proceeds used to service transition loans, attracting major investment funds.

In Thailand, the Thailand Taxonomy issued by the Bank of Thailand clearly defines “green”, “amber”, and “red” categories with criteria and sunset dates aligned with the ASEAN framework. After the Thai Securities and Exchange Commission standardized regulations on green bonds, transition bonds, and sustainability-linked bonds, Thailand’s ESG bond market expanded rapidly, to more than THB800 billion ($23 billion) by the end of 2024.

In Malaysia, alongside building a taxonomy framework aligned with ASEAN standards, State-owned enterprises (SOEs) have played a pioneering role as market makers. In the first half of 2025, SOEs such as Malaysia Rail Link accounted for nearly half of total ESG bond issuance, helping establish benchmark yield curves for private sector issuances.

Recommendations for Vietnam

To avoid falling behind in transition finance and missing the opportunity to mobilize billions of dollars for “brown” sectors, Vietnam should consider the following measures.

First, adopt and localize ASEAN Taxonomy criteria and promptly amend Decision No. 21/2025/QD-TTg to include a transition (“amber”) category with specific qualitative and quantitative criteria for “brown” sectors such as steel, cement, and thermal power. Declining emissions thresholds should be established over time and mandatory transition deadlines (sunset dates) aligned with national and sectoral net-zero roadmaps. Legalizing the “amber” category would provide a basis for domestic and international banks and ESG funds to finance transition projects.

Second, the government and the Ministry of Finance should promptly issue decrees and circulars guiding the issuance of transition bonds and sustainability-linked bonds and develop primary and secondary markets. “Greenwashing” risks should be mitigated by referencing International Capital Market Association (ICMA) standards, requiring clear transition pathways and transparent disclosure of emission-reduction progress in offering documents.

Third, consider allowing major State-owned groups such as the Vietnam Oil and Gas Group (PetroVietnam) and Vietnam Electricity (EVN) to pilot appropriately-sized issuances of transition bonds and sustainability-linked bonds in international markets. These should be combined with concessional capital from the Just Energy Transition Partnership (JETP) as first-loss capital to enhance credit ratings. Successful issuances by PetroVietnam and EVN would establish benchmark yield curves for Vietnam’s transition bonds internationally, serving as models for private “brown” enterprises. However, the government should set early warning thresholds for exchange rates and external debt to automatically suspend or adjust issuance plans, avoiding pressure on public debt and national financial security.

In short, net-zero is the destination but transition is the pathway. A successful financial policy should not only beautify a few wind power projects but must also be capable of “retrofitting” thousands of high-emission industrial plants in operation. Transition finance is not a compromise with pollution but the most practical bridge to move the economy from “brown” to “green” in an orderly manner, avoiding disruptive shocks to traditional industries. By deploying smart financial mechanisms and instruments to resolve capital and technology constraints, net-zero pressure can become a driving force for comprehensive industrial restructuring, ensuring no enterprise is left behind in the new era.

VET-Hong Ha

New growth cycle of aviation sector

Fri, 27 Mar 2026 09:10:00 GMT

Vietnam’s aviation sector is entering a new growth cycle, fueled by record passenger volumes, multibillion-dollar aircraft orders, and a sweeping expansion of airport infrastructure that is reshaping competition and traffic flows nationwide.

Figures from the Civil Aviation Authority of Vietnam (CAAV) show that the country’s aviation sector carried 83.5 million passengers in 2025, up 10.7 per cent year-on-year and the highest number on record. This growth momentum continued during the 2026 Lunar New Year (Tet) holiday, when the sector carried nearly 2.6 million passengers and handled 19,200 tons of cargo, representing increases of 15.9 per cent and 43 per cent, respectively, compared to Tet 2025. Domestic transport accounted for more than 1.1 million passengers and 2,400 tons of cargo, while international transport reached nearly 1.5 million passengers and 16,900 tons of cargo. The sharp rise in the international segment indicates a clear structural shift.

“Billion-dollar” lever

Aircraft purchasing contracts signed in early 2025 have become a strategic lever for the next development phase. Witnessed by Party General Secretary To Lam during his working visit to the US, Vietnamese airlines signed agreements worth nearly $32 billion for approximately 96 aircraft.

Vietnam Airlines signed a contract to purchase 50 Boeing 737-8 aircraft valued at about $8.1 billion, and discussed plans to invest in an additional 30 wide-body aircraft with an estimated total value exceeding $12 billion to support its international network expansion strategy.

The new market entrant, Sun PhuQuoc Airways, ordered 40 Boeing 787-9 Dreamliner aircraft worth approximately $22.5 billion.

Meanwhile, Vietjet Air reached a financing agreement to acquire six Boeing 737-8 aircraft valued at about $965 million and signed a contract with Pratt Whitney to supply engines and maintenance services for 44 A321neo / A321XLR aircraft, worth approximately $5.4 billion.

According to CAAV Director General Uong Viet Dung, these contracts will drive growth and fleet restructuring in line with the master plan for developing the airport system for 2021-2030 with a vision to 2050.

The Authority noted that these orders will rejuvenate fleets, improve operational efficiency, and secure long-term transport capacity, targeting 275-300 million passengers annually by 2050. The allocation between narrow-body, wide-body, and mid-range aircraft is aligned with the planned shift of the operational axis towards Long Thanh, Gia Binh, and Chu Lai airports.

From a technology and environmental perspective, new-generation aircraft and engines can reduce fuel consumption and CO₂ emissions by 15-25 per cent compared to previous generations and cut noise by up to 50 per cent, supporting net-zero by 2050 commitments under the International Civil Aviation Organization (ICAO)’s roadmap. Beyond transport, the contracts also open the possibility of developing an integrated “airport city - logistics - tourism” ecosystem, in which wide-body aircraft will support international transit, air logistics, and cross-border e-commerce.

However, Mr. Dung emphasized the need for financial risk management given the tens of billions of dollars involved. Monitoring equity, debt ratios, cash flow, and guarantee mechanisms will be essential to ensure airlines’ execution capacity.

Regulators assess that these agreements lay three foundations for the next 20-30 years: green and sustainable growth, safety modernization in line with ICAO standards, and an enhanced national position. The contract signings with Boeing and Pratt Whitney may represent the second strategic turning point for Vietnam’s civil aviation, after its period of market liberalization.

Infrastructure expansion

While fleets determine capacity in the air, airport infrastructure defines limits on the ground. For many years, Vietnam’s aviation growth has been constrained by capacity at Tan Son Nhat and Noi Bai International Airports in Ho Chi Minh City and Hanoi. The current wave of infrastructure expansion therefore goes beyond adding terminals; it represents a structural adjustment of traffic flows and a reorganization of the nationwide operating network.

The commissioning of Tan Son Nhat’s Terminal 3 and progress on Phase 1 of Long Thanh International Airport are reshaping the southern operational axis. Once Long Thanh becomes operational, about 80 per cent of international flights and 10 per cent of domestic flights are expected to move there. This will not only relieve congestion at Tan Son Nhat but also redistribute traffic between airports, prompting adjustments in network strategies and hub potential.

In the north, the completion of Noi Bai’s Terminal 2 expansion will add capacity for 5 million passengers annually and upgrade the airport to 4F standards. At the same time, the five-star Gia Binh Airport project is underway, expanding the capital region’s aviation capacity towards a multi-airport model rather than relying solely on Noi Bai. Meanwhile, Airports Corporation of Vietnam (ACV) is accelerating expansion plans for Phu Quoc, Cat Bi, Phu Cat, and Dong Hoi airports to strengthen capacity in key economic and tourism centers.

As infrastructure capacity expands, competitive dynamics will inevitably shift. According to Saigon-Hanoi Securities, Vietnam already has an airport network above the global average relative to population and land area, with accessibility improving under the approved master plan. With 83.5 million passengers carried in 2025 - a historic high - demand fundamentals provide room to absorb new capacity.

One notable factor is the increasingly open legal framework for private investment in aviation infrastructure. Van Don International Airport, developed by the Sun Group under the build-operate-transfer (BOT) model, exemplifies the trend toward socialization. Private participation not only adds capital resources but also changes operational organization towards integrated ecosystems linking airports, airlines, and tourism services.

Entering 2026, as fleet sizes across the market expand simultaneously, competitive pressure is expected to intensify. According to MBS, fleet growth is projected at around 18 per cent; significantly outpacing passenger growth. This will put direct pressure on domestic market share and force airlines to optimize costs, restructure networks, and utilize new hubs more efficiently.

Divergence between airline groups is becoming more pronounced. Leading carriers are focusing on international and regional routes to protect profit margins, while expanding airlines are seeking advantages in tourism, charter services, and hub-and-spoke models to optimize operating costs. VNDIRECT has noted that 2026 will highlight ecosystem-based investment strategies, where advantage lies not only in fleet size but also in the ability to control the value chain from infrastructure to services.

In this context, competition is no longer a simple race over frequency or fares but a process of redistributing traffic between airports and airlines. With fleets expanding and infrastructure being upgraded within a short period of time, the market is entering a phase of deep adjustment in which scale and efficiency must advance together. This shift marks a new cycle for Vietnam’s skies - broader in capacity and fundamentally different in operational structure and competitive dynamics.

VET-Huynh Dung

More requirements for business expansion plans

Fri, 27 Mar 2026 04:00:00 GMT

The nature of expansion plans requires greater focus from business leaders given Vietnam’s ongoing growth.

As Vietnam enters a new phase of rapid growth and structural reform, the question facing business leaders is no longer whether to expand but how. Building from scratch, acquiring an existing player, or partnering with a local company - each path offers speed, control, and risk in different measure. At the Scaling Business Summit 2026, executives argued that in Vietnam’s rapidly-moving environment, choosing the wrong path could matter as much as choosing the right market.

Expansion moment

Vietnam’s current phase of business expansion is being shaped as much by policy direction as by market momentum. Vietnam is a fast-moving market - demographically, structurally, and institutionally. The opportunities are significant, but so is the complexity. For companies considering expansion, the question is not simply whether Vietnam is attractive but how best to position themselves within its rapidly-evolving landscape.

Mr. Shehryar Ali Shah, Senior Country Officer and Head of Office, Ho Chi Minh City, at the International Finance Corporation (IFC), emphasized that what the Vietnamese Government is now looking for is FDI. He pointed to a series of initiatives designed to enhance foreign investment, including the establishment of the Vietnam International Financial Center (VIFC) in Ho Chi Minh City and Da Nang, and aligning capital flows with long-term national objectives. If investors want to move in step with policy direction, he said, “then FDI is the way to go.”

For the IFC, he continued, the approach is developmental and long-term, with investments across financial institutions, manufacturing, agribusiness, infrastructure, and power. The objective in Vietnam is clear: “help create more jobs and mobilize private capital, meaning we crowd in private capital, not crowd it out.”

The urgency behind this push is growth. Mr. Will Ross, Chief Marketing and Distribution Officer at Dragon Capital, described Vietnam’s recent GDP performance of above 8 per cent as something that, “in the West, is science fiction.” But he stressed that the deeper story lies in reform and demographics. “The reforms of 2025 were the most significant since the country opened to a market economy in the 1980s,” driven by the need for growth, as that golden demographic dividend has a sell-by date.

He pointed to shifts “from wet market to supermarket to shopping online” and from State schooling to private and overseas education. Businesses must ask whether they are strengthening an existing model or “helping complete a value chain.”

At the same time, Vietnam’s development does not follow a traditional linear path. Mr. Thann Auttanukune, Vice President (President Office) at C.P. Vietnam, described a pattern of leapfrogging. “Vietnam has this ability to be positive and quick practitioner, so they’re willing to adopt change and move quickly,” he said. He recalled showing an old pager to Gen Z colleagues who had “no clue” what it was - a simple illustration of how entire stages of technology can be skipped.

That speed demands discipline. Mr. Auttanukune described companies presenting sophisticated concepts filled with sensors and AI, only for deeper examination to reveal limited fundamental value. Leaders must examine substance, not “just big numbers.”

Crucially, Vietnam cannot be treated as a single consumer profile. Mr. Ross stressed that generational divides are profound, as “those are two entirely distinct consumer groups in one market.” Approaching the country homogeneously, he said, “would be a mistake - a sure failure.”

Build, buy, or partner

If Vietnam is moving fast, the next question is how to move with it. For Mr. Auttanukune, the starting point is not ideology - build versus buy - but speed and disruption. “The first thing is the velocity of change,” he said. The second question is disruption. If new technology is fundamentally altering a sector, “maybe you need to buy or partner with them, because you don’t have enough time to build it from scratch.”

But before choosing any path, he emphasized one critical step, to “understand your business and the extent of your capabilities.” Without that clarity, leaders risk falling into “wishful thinking that either build, buy, or partner will solve your problems.”

Expansion itself is not optional. “Business needs to expand. To think that you can budget zero growth - that doesn’t happen,” he said. The real decision is which part of the value chain to expand and at what pace.

In C.P.’s case, different segments move differently. “Food is the fastest,” Mr. Auttanukune noted, as new products and packaging can be launched quickly. Farming moves more slowly because of sustainability and biosecurity requirements, and feed operates on yet another timeline. “Since not all are operating the same way, there is no standard answer to build, buy, or partner,” he believes.

Market context also matters. Sometimes being foreign is an advantage. Mr. Ross pointed to Tmall’s rise following China’s milk powder scandal, when parents wanted to buy directly from trusted overseas brands and were willing to pay higher prices for safety and transparency.

In other situations, localization is decisive. He recounted his experience with Lazada after Alibaba took visible control of the platform in Vietnam. In his view, the better approach might have been to provide scale and pricing support behind the scenes while allowing Lazada to remain perceived as local. The difference lay in how consumers interpreted identity and trust.

Looking into partnerships

Mr. Shah framed partnerships in the context of Vietnam’s broader investment agenda. With policies increasingly geared towards attracting FDI, he argued that the most compelling partnerships are those that bring long-term value to the country. Investments that transfer technology or capabilities, rather than simply outsourcing functions, carry “a lot more gravitas and a lot more traction with the government.”

But formal alignment on paper is only the beginning. Mr. Auttanukune stressed that the true test comes later. “When the rubber hits the road, when the tension rises, then you see whether your partnership holds,” he said, as actual dynamics emerge under pressure.

His advice was simple: do not rush. Partners should take time to understand whether they share core values and similar approaches to solving problems. Perfect alignment is not necessary, but compatibility is. “Only when conflict arises can you prove whether the partnership will hold,” he said.

He also recommended a staged approach, gradually increasing the level of collaboration rather than committing fully at the outset. Agreements written on paper cannot anticipate every real-world situation, and neither party should feel forced into a corner simply to comply with terms. Partnerships are intended to last, not to survive on contractual technicalities.

Mr. Shah added that regulatory developments may influence partnership decisions as much as business factors. Historically, some foreign investors have been uncomfortable with local arbitration mechanisms. New reforms under discussion include provisions for overseas arbitration at the VIFC, which could reduce perceived risk. “If arbitration becomes acceptable to investors, then partnerships are not a problem; if the arbitration is in a neutral location, then people feel comfortable putting money in,” he said, adding that exit mechanisms are equally important. How easily investors can exit at any point affects their willingness to enter in the first place.

Mr. Ross approached partnerships from a longer-term strategic perspective. In international ventures, he noted, local partners often gain leverage over time; that is simply the natural cycle. The key question is whether that shift occurs organically and mutually, or disruptively.

Some partnerships work because they are based on stable, widely-adopted technologies - like Bluetooth, managed by the Bluetooth Special Interest Group, which was formed by founding partners Ericsson, Intel, Nokia, IBM, and Toshiba, which operates globally at scale without conflict. Others, particularly in consumer markets where monetization and customer ownership are at stake, can create inherent tensions that eventually lead to discussions about exit strategies or arbitration - not only when things go badly but when they go very well and interests begin to diverge.

VET-Linh Tong

A service that remains attractive to foreign providers

Thu, 26 Mar 2026 04:00:00 GMT

The licensing of Starlink to provide satellite internet services in Vietnam is expected to be a catalyst for local companies to join the endeavor.

February 13, 2025 may well be remembered as a landmark for Vietnam’s telecommunications market, when the Starlink Services Vietnam Co., Ltd. - a legal entity under Elon Musk’s SpaceX - was officially licensed to pilot satellite internet services in Vietnam. Notably, with its entire charter capital of VND30 billion ($1.15 million) owned by Starlink Holdings Netherlands B.V., Starlink Services Vietnam is the first and only company (as of early 2026) permitted to provide telecommunications services with 100 per cent foreign ownership under a special pilot mechanism.

Historic turning point

Telecommunications has long been a particularly sensitive field due to its direct link to strategic information infrastructure and national security. For many years, though numerous global giants have entered Vietnam, most have done so only through joint ventures or business cooperation contracts, with foreign ownership capped at 49 per cent or 65 per cent depending on the service category.

A breakthrough came in March 2025, when the 15th National Assembly passed Resolution No. 193/2025/QH15, allowing a controlled pilot mechanism for Low Earth Orbit (LEO) satellite telecommunications services, with no limits on foreign ownership ratios or capital contributions.

Based on this Resolution, just days later Deputy Prime Minister Nguyen Chi Dung signed Decision No. 659/QD-TTg, approving a controlled pilot for LEO satellite telecommunications services from the Space Exploration Technologies Corp. (SpaceX). Once the legal corridor was established, Vietnamese regulators actively guided the procedures for establishing SpaceX’s local entity.

By September 2025, Starlink Services Vietnam had completed business registration procedures, with satellite telecommunications as its core business. In mid-February 2026, the company was granted licenses by the Authority of Radio Frequency Management to use radio frequencies and equipment.

According to business registration records, Mr. Do Ba Thich serves as CEO, while the Chairwoman and legal representative is Ms. Lauren Ashley Dreyer, a US national and Vice President of Global Business Operations at Starlink. The company’s capital contribution is represented by Starlink Holdings Netherlands B.V.

Telecommunications is critically important and directly tied to national security. Why, then, were foreign ownership restrictions relaxed for a pilot LEO satellite case such as Starlink Services Vietnam? The answer likely lies in the technical nature of satellite internet. Unlike traditional ground-based telecom infrastructure, the core infrastructure of this model - satellites - is located in space. Requiring a joint venture with a domestic partner would be technically impractical for operating such a system.

Meanwhile, Vietnam’s needs are clear. The country aims to leverage Starlink’s infrastructure to cover connectivity “blind spots” in island areas and remote regions, while ensuring communications for search and rescue operations where fiber-optic cables cannot reach. SpaceX has committed to investing approximately $1.5 billion in Vietnam, including developing a component supply chain.

Opening up without loosening control

Despite being allowed 100 per cent ownership, Starlink Services Vietnam must comply with strict pilot conditions. First, the company must install gateway stations in Vietnam. Starlink has been licensed to deploy its first four gateways in Da Nang, Phu Tho (one each), and Ho Chi Minh City (two), ensuring that all data traffic passes through domestically-managed infrastructure before connecting to international networks. This mechanism enables regulators to monitor and block illegal content or cybersecurity threats. In addition to technical requirements, the company must meet the same business conditions as domestic telecom operators.

Starlink operates LEO satellites at altitudes from 160 km to under 2,000 km above sea level. This model offers low latency and high data transmission speeds. As of February 2025, Starlink led the world in scale, with more than 6,000 satellites launched and in active service.

Vietnam’s telecom infrastructure still relies primarily on fiber-optic networks and 4G/5G base stations deployed by major operators such as Viettel, VNPT, and MobiFone. While these networks provide wide coverage and strong capacity, they face challenges in areas with complex terrain due to high investment and operational costs. In this context, LEO systems could serve as a complementary solution for telecommunications and internet services with significant advantages.

At the government’s first meeting for 2026 of the Steering Committee on science and technology development, innovation, digital transformation, and Project No. 06, Prime Minister Pham Minh Chinh tasked the Ministry of Science and Technology with implementing coordinated measures to accelerate the rollout and commercial operation of LEO satellite internet services within the year.

Vietnam’s telecom infrastructure landscape is evolving not only due to external factors but also internal dynamics. Major domestic firms such as Viettel and VNPT have begun researching and preparing for LEO satellite services.

In November 2025, news that Vingroup had established the VinSpace JSC to enter the space and satellite telecommunications sector drew significant attention in the tech community. Though newly formed, VinSpace’s business registration already signals broad ambitions, from operating telecommunications satellites to researching and manufacturing small satellites (CubeSats). Starlink’s licensing in Vietnam therefore not only helps complete the country’s telecom infrastructure but also serves as a catalyst for domestic telecom firms to accelerate their efforts.

Under Resolution No. 193/2025/QH15, the controlled pilot mechanism for LEO satellite telecommunications services will last no more than five years and must conclude before January 1, 2031. After that, policy scenarios will depend on pilot results. If the model proves effective in expanding connectivity, ensuring data security, and promoting fair competition, Vietnam may move to formalize a legal framework for satellite telecommunications. Otherwise, regulators will have practical grounds to tighten or adjust the mechanism.

VET-Ngo Huyen

From legacy to succession in the corporate world

Wed, 25 Mar 2026 08:40:00 GMT

Next-generation leaders of major family enterprises share their experience in inheriting and operating the business while balancing corporate performance and family dynamics.

Succession and governance in family-owned enterprises took center stage at the session entitled “Succession Stories in Legacy Family Business” within the SME Forum 2026, held in Ho Chi Minh City on March 20 with the theme “New Momentum for the Big Game.”

Co-hosted by Newing and VPBank SME, the Forum drew strong interest from the domestic and foreign business community, particularly next-generation leaders.

The story of the “F2 and F3 generations” in family businesses shows that succession is not merely about the inheritance of assets or titles, as truly taking over and operating a legacy is a demanding journey.

Inheriting or truly succeeding

Sharing his first-hand experience, Mr. Vu Hong Son, Chairman of the Board of Directors at the Bao Tin Manh Hai Group, who transitioned from a public sector to a family business, pointed out that the biggest challenge lies in governance culture and the willingness of the previous generation to delegate authority.

Many family businesses still operate based on accumulated experience, internal trust, and longstanding habits, he continued, relying on informal, relationship-based decision-making, while lacking clear processes and approval systems. This makes it difficult for the next generation to exercise independent decision-making.

“The transfer must include not only ownership but also real authority,” he emphasized. “Even as CEO, if decisions are still influenced by family members behind the scenes, without sufficient space to exercise one’s mandate it becomes impossible to make independent decisions.”

From an organizational perspective, Ms. Vuu Le Quyen, CEO of Biti’s and a next-generation leader of the more than 44-year-old Vietnamese footwear brand, has opted to “restructure” the company through the development of a “happiness-driven culture.” She is also the architect behind the strategy to reach a new generation of consumers through the Biti’s Hunter product line, repositioning the brand toward Gen Z amid intensifying competition from international players in the domestic market.

According to Ms. Quyen, the challenge goes beyond product innovation to preserving the brand’s core identity. One of the biggest hurdles she has faced is transforming the long-established top-down management model that has been deeply embedded in the organization for more than three decades. Biti’s was founded in the post-war period, when discipline and command were the primary means of transitioning the workforce from agriculture to industrial production. The company’s founder, her father, built a culture that was highly disciplined and strongly masculine in nature and rigid yet effective in its time, but that now requires change to adapt to a new phase of development. Ms. Quyen noted that legacy in any business carries a dual nature. It provides a proven foundation, but can also hinder transformation if not continuously renewed.

From an international perspective, Mr. Pierre Pang, CEO of the MAMEE Group, described running a family business as one of the most complex leadership challenges, requiring a delicate balance between family dynamics and market pressures.

He raised a fundamental question for family shareholders: which matters more, the needs of the family or the needs of the business. In his view, without a well-performing company, the family’s long-term interests cannot be sustained. He also pointed out that legacy, often seen as an advantage, can in some cases slow down innovation and adaptation.

Solutions for cultural transformation

To address these challenges, speakers emphasized the importance of clear governance principles and organizational transformation.

According to Mr. Son, leaders must adhere to a core principle. All decisions should be based on clearly defined roles, responsibilities, and authority. Separating personal relationships from professional accountability is essential for building a more structured and professional organization.

At Biti’s, Ms. Vuu Le Quyen has taken a different approach, by focusing on internal transformation through building a happiness-driven culture. Following the success of Biti’s Hunter sneaker line in 2018, the company launched the Happy Biti’s initiative to reshape its organizational culture.

“Eight years ago, the idea of a happy company was often seen as unrealistic, as businesses were expected to focus solely on revenue and profit,” she said. However, she believes this new approach provides a foundation for sustainable change.

At the same time, the company remains committed to its core values while adapting its strategy to evolving consumer behavior, particularly among younger generations. “Strategy must change as customers change, but core values should not,” she stressed.

Meanwhile, Mr. Pang adopted a dual approach of preservation and transformation. He maintains four core values, integrity, involvement, intensity, and innovation, while proactively changing operational models to remain competitive.

He acknowledged that this transition is far from easy, especially when it involves shifting the mindset of a longstanding workforce. Nevertheless, it is a necessary step for family businesses to adapt to a rapidly-changing environment and sustain long-term growth.

The notion of “prosperity” was also reframed at the Forum through a broader lens, moving beyond short-term growth metrics. Ms. Nguyen Thi Minh Giang, Founder and CEO of Newing, argued that sustainable business success depends not only on strategy but also on execution.

She observed that while most companies today do not lack strategic direction, many fall short in disciplined execution and robust systems capable of supporting long-term growth. As a consulting and training firm focused on leadership development and organizational transformation, Newing aims to help businesses strengthen these foundations.

Ms. Giang added that as companies scale up, operational and governance weaknesses tend to become more visible. Therefore, prosperity should not be defined merely as growth, but as the ability to sustain consistent and resilient growth over time.

Sharing a similar view, Mr. Dao Gia Hung, Director of SME Banking at VP Bank, noted that capital is only a necessary condition for business development. The decisive factors lie in operational capability, governance, and the ability to adapt to industry-specific dynamics.

“Practical know-how and tailored financial solutions must go hand-in-hand to deliver tangible value for businesses,” he said, adding that such an approach enables companies not only to grow, but also to enhance resilience amid an increasingly volatile market environment.

vneconomy-Nhu Quynh

Vietnam in face of global trade changes

Wed, 25 Mar 2026 01:30:00 GMT

A new HSBC report takes a closer look at the changing global trade picture over recent years and Vietnam's place within it.

Despite significant noise from tariffs and geopolitical tensions, Vietnam, alongside Malaysia and Singapore, has managed to maintain its share of global exports, Mr. Aditya Gahlaut, Regional Head of Global Trade Solutions for Asia at HSBC, noted in the bank's “ASEAN Perspectives - 2026: A test of endurance, strength and grit” report. But trade has indeed been shifting within Asia and between Asia and other markets.

Three major shift

According to Mr. Gahlaut, while tariffs create short-term disruptions, they do not alter the fundamental structure of global trade. Even before tariffs emerged, global trade had already entered a period of structural transition marked by three major shifts: “where” trade happens, “what” is traded, and “how” trade is conducted.

Firstly, the shift concerns where trade takes place, linked to the reshaping of global supply chains. In the past, supply chains were largely constructed around cost considerations, with production located wherever costs were lowest. However, over the past two decades, particularly following the Covid-19 pandemic, companies have increasingly assessed supply chains based on three core pillars: efficiency, resilience, and sustainability.

Secondly, the shift relates to changes in the structure of merchandise trade, namely what is being traded. Mr. Gahlaut pointed out that when trade is discussed, it is often associated with tangible goods such as smartphones, furniture, or clothing. In reality, however, services now account for approximately 25 to 26 per cent of total global trade and are expanding at twice the pace of goods trade.

Notably, services are no longer confined to consulting or information technology but are increasingly embedded in traditional products. He cited examples such as smartwatches or health monitoring devices, where the core value no longer resides in the physical product itself but in the accompanying services, software, and data. Consumers today pay for experiences and services rather than solely for products.

This shift, he emphasized, is not driven by tariffs but by changes in consumer behavior. He likened it to the transition from cassette tapes and CDs to music streaming platforms, where consumers purchase services instead of physical goods.

Thirdly, the shift involves changes in how trade is conducted. Whereas trade previously took place primarily through physical stores, digital platforms have now become central to commercial transactions. Consumers no longer need to enter physical retail spaces but can conduct purchases directly through personal devices.

These three trends were already underway before the introduction of tariffs. Tariffs have merely accelerated and sharpened the restructuring process.

A story of structural growth

Within this broader context, ASEAN, particularly Vietnam, has emerged as a bright spot in terms of resilience. After tariffs were imposed, many regions experienced sharp declines in exports, while ASEAN as a whole managed to maintain growth momentum. ASEAN’s share of global exports increased from around 7.4 per cent in 2023 to nearly 9.4 per cent by 2025, beginning before tariffs were introduced.

Notably, in markets such as Vietnam, Thailand, and Taiwan (China), export growth has shown little significant slowdown. Mr. Gahlaut’s expressed his optimism about Vietnam’s outlook, noting that “Vietnam is not a short-term opportunistic story; it is a story of structural growth.”

Mr. Aditya Gahlaut, Regional Head of Global Trade Solutions for Asia at HSBC">

Mr. Aditya Gahlaut, Regional Head of Global Trade Solutions for Asia at HSBC

Its export growth in recent years, he continued, has been driven primarily by the FDI sector rather than domestic private enterprises. However, this reflects Vietnam’s long-term attractiveness rather than a simple tariff advantage.

FDI investment decisions, he noted, are not based on a single factor such as tariffs, but on a combination of long-term considerations, including production efficiency, domestic market size and purchasing power, workforce quality, the policy environment and government openness, as well as long-term investment in infrastructure and energy.

Consumption in Vietnam grew by around 8 per cent and is expected to remain at approximately 6.5 to 7 per cent in 2026. Tourism and services are also playing an increasingly important role. “Vietnam is not the lowest-cost country, but it is among the most cost-efficient, while also offering a very strong story in domestic consumption, tourism, and services,” Mr. Gahlaut said.

Vietnam’s exports to the US have risen from the equivalent of about 8 per cent of China’s level to around 40 per cent. In several labor-intensive sectors such as textiles and garments, Vietnam has even surpassed China in the US market. This is indeed a long-term structural story, not a short-term opportunity.

Against this backdrop, Mr. Gahlaut stressed that within the China+1 strategy, Vietnam is a core part of global corporations’ diversification strategies. “Once it is part of a diversification strategy, Vietnam’s role is fundamental, not a temporary substitute,” he emphasized.

He pointed out that Vietnam has established itself as an efficient manufacturing hub in labor-intensive industries and is also benefiting significantly from the global electronics and AI boom. The next challenge, he said, is to move up the value chain in electronics, particularly in semiconductors.

About one-third of Vietnam’s exports still depend on the US. While tariff advantages help maintain its position, Vietnam needs to diversify exports towards other trade corridors such as intra-Asia and Europe.

According to an HSBC Global Trade Pulse survey, more than 40 per cent of Asian businesses want to increase trade with Southeast Asia, and 34 per cent want to expand trade with East and North Asia, while an increasing number are seeking to reduce dependence on the US market. Notably, intra-Asian trade, excluding China, has remained almost flat for nearly 20 years, making it a potential new growth pillar in the coming period.

Meanwhile, although Vietnam has had a free trade agreement with the EU for five years, export growth to the bloc has yet to match its potential. This is seen as significant upside for the next phase, particularly as the EU is a massive consumer market that places growing emphasis on sustainability.

Trade slowdown, not recession

Under pressure from exchange rates, logistics costs, and interest rates, export companies are returning to optimizing working capital cycles, an area previously underutilized.

HSBC has observed a strong increase in demand for solutions such as supply chain finance, inventory financing, and long-term contract financing. As supply chains become more complex, working capital cycles lengthen, but this also creates opportunities to unlock financial value trapped within the chain. “To move up the value chain, Vietnam needs to invest strongly in skills, technology, and a sufficiently flexible policy framework to support new business models,” he said.

While the global trade outlook for 2026 is projected to be less positive, Mr. Gahlaut emphasized the importance of viewing these figures in context. In 2025, global goods trade expanded at an average monthly rate of 4.8 per cent through September 2025, up from 2.5 per cent in 2024.

The WTO’s downward revision of global trade growth for 2026 does not signal a slowdown, but rather a normalization after a period of rapid growth driven by front loading, as many countries accelerated exports to the US to avoid tariffs. “Once excess inventories in the US are cleared, and with the right focus on diversifying corridors, global trade will regain growth momentum from the second half of 2026,” he concluded.

VET-Nhu Quynh

Vietnam Economic Times March, 23 2026

Wed, 25 Mar 2026 01:00:00 GMT

Vietnam Economic Times Issue 449 | Monday, March 23 2026

Dear readers,

As part of the official visit to Vietnam by European Council President António Costa, Vietnam and the EU issued a joint statement on January 29 officially upgrading their bilateral relations to a Comprehensive Strategic Partnership. This is an important milestone in a journey of connection between the two sides that has spanned over 35 years, since the establishment of diplomatic relations in 1990.

The joint statement identified economic cooperation as an important driving force for Vietnam - EU relations, with science, technology, and innovation serving as a pillar of bilateral cooperation.

Over the past 35 years and more, cooperation in all areas between Vietnam and the EU, especially economic cooperation, has been increasingly strengthened, with growth effectiveness clearly quantified, particularly since the EU-Vietnam Free Trade Agreement (EVFTA) came into effect on August 1, 2020. As a result, bilateral trade turnover increased from $55.4 billion in 2020 to $68.4 billion in 2024 and then to $73.8 billion in 2025. In terms of exports, Vietnam recorded turnover of $40.1 billion in 2020, which then rose to $56.2 billion in 2025, with the trade surplus in Vietnam’s favor increasing from $24.8 billion in 2020 to $38.5 billion in 2025.

The effectiveness of Vietnam - EU economic cooperation is also reflected in the investment capital EU enterprises have poured into Vietnam. As of the end of September 2025, the EU had 2,743 active projects in Vietnam, with total registered capital of nearly $32 billion.

The EU is currently Vietnam’s fourth-largest trading partner and sixth-largest investor, while Vietnam is the EU’s largest trading partner in ASEAN and the EU is Vietnam’s third-largest export market globally.

According to the Delegation of the European Union to Vietnam, since 1990, Vietnam and the EU have built a partnership rooted in trust, shared values, and a clear commitment to progress, cooperating across trade, sustainable development, innovation, governance, and global security.

Building on this strong foundation, the first EU-Vietnam Global Gateway Business and Investment Forum, with the theme “Investing Together in a Sustainable Future,” will be held in Hanoi on March 24 by the European Union Delegation to Vietnam in coordination with the Foreign Investment Agency at the Ministry of Finance of Vietnam and the European Chamber of Commerce in Vietnam (EuroCham), with the aim of facilitating high-level dialogue and creating new avenues for shared prosperity.

The Forum is expected to gather together 500 delegates and experts, including Mr. Jozef Síkela (European Commissioner for International Partnerships), Vice President of the European Investment Bank Nicola Beer, and Vietnamese Government officials, alongside key business leaders from both sides, who will focus primarily on green energy and sustainable transport, identified as sectoral priorities under Global Gateway, initiated by the EU, to support Vietnam’s green and digital transitions and create stronger ties between the two economies.

With Vietnam Economic Times / VnEconomy acting as media sponsor for the Forum, our Cover Story in this edition focuses on Vietnam - EU relations since 1990, especially their cooperation in economics, trade, and investment, with many important milestones recorded over the past 35 years and more, particularly the positive impacts of the EVFTA and the newly-upgraded Comprehensive Strategic Partnership, which open up many opportunities for bilateral cooperation, especially for enterprises from both sides. The EU-Vietnam Global Gateway Business and Investment Forum will certainly contribute to shaping and unlocking cooperative potential, as the EU, through its Global Gateway initiative, is committed to supporting Vietnam by mobilizing high-quality investments and creating market opportunities to strengthen sustainable infrastructure, promote innovation, and deliver an enabling environment for long-term growth and employment.

Warmest regards.

Dr. CHU VAN LAM
CHAIRMAN OF THE EDITORIAL BOARD

VET-Vietnam Economic Times - VnEconomy

EuroCham launches 2026 Whitebook to advance reforms for next wave of EU investment

Tue, 24 Mar 2026 09:00:00 GMT

As EU investment interest rises, EuroCham’s 2026 Whitebook underscores execution as the key to unlocking Vietnam’s next growth phase.

Ceremony to present the EuroCham Vietnam Whitebook 2026 to the Vietnamese government. Photo: EU Delegation in Vietnam

The European Chamber of Commerce in Vietnam (EuroCham) officially launched the 17th edition of its Whitebook on March 24, highlighting the need for stronger policy implementation to translate growing European investment commitments into tangible outcomes.

The Whitebook was presented to representatives of the Vietnamese Government in the presence of Deputy Prime Minister Ho Duc Phoc and European Commissioner for International Partnerships Jozef Síkela, on the the occasion of the EU–Vietnam Global Gateway Business and Investment Forum.

Serving as EuroCham’s flagship annual publication, the Whitebook 2026 provides a structured set of policy recommendations aimed at improving Vietnam’s regulatory environment and supporting the effective deployment of large-scale European investment.

Speaking at the launch, EuroCham Chairman Bruno Jaspaert emphasized that European businesses are already deeply engaged in Vietnam’s economy. “We are already here, and we are investing in this country,” he said. "We may not always be the largest investors, but we bring investments that matter. More importantly, we aim to build this country hand in hand with the authorities. As investors, we are here to make a profit, of course, but we also believe we should give something back. We want to bring part of what makes us Europeans stand out and contribute to Vietnam’s development."

The 2026 edition spans 280 pages and reflects a year of work by 20 sector committees, drawing on the operational experience of more than 1,500 European companies in Vietnam. The recommendations cover a wide range of sectors, from energy and logistics to healthcare and digital industries, and are designed to improve the investment climate while enhancing Vietnam’s competitiveness in Southeast Asia.

According to EuroCham, as global competition for investment intensifies, cost advantages alone are no longer sufficient. Investors are increasingly focused on regulatory transparency, governance efficiency, and sustainability standards.

“The next step is to ensure consistent implementation. The 2026 Whitebook serves as a roadmap to effectively translate billion-euro investment commitments into tangible results,” Mr. Jaspaert said.

A key feature of this year’s Whitebook is the “Must-Win Battles” initiative, which prioritizes reforms that can deliver fast and measurable improvements to the business environment.

Over the past year, 10 recommendations have been fully adopted, 7 partially implemented, and 22 remain in progress. These reforms have led to concrete improvements for businesses, including expanded visa exemptions, streamlined work permit procedures, and enhanced support for on-the-spot import-export activities.

Mr. Jaspaert also noted that EuroCham closely tracks the implementation of these recommendations, reflecting both the pace of reform and the responsiveness of Vietnamese authorities to business feedback.

Beyond the publication itself, EuroCham announced a new approach to policy engagement through the introduction of a Whitebook Dialogue Week. This initiative will involve in-depth working sessions with ministries and government agencies to translate recommendations into actionable policy measures.

“Today’s progress is not accidental, but the result of shared ambition and sustained cooperation between both sides,” Mr. Jaspaert added.

In the context of Vietnam’s ongoing green transition and institutional reforms, the Whitebook is positioned as a bridge between policy vision and business practice, helping to create a more transparent, predictable, and efficient investment environment.

As Vietnam seeks to attract the next wave of European investment, EuroCham underscored that the focus must now shift from commitments to execution, ensuring that policy reforms keep pace with the country’s growth ambitions and evolving role in global value chains.

Vneconomy-Diep Linh

EU–Vietnam Global Gateway Forum in Hanoi spotlights investment push for sustainable growth

Tue, 24 Mar 2026 04:30:00 GMT

From policy dialogue to concrete deals, the EU–Vietnam Global Gateway Forum marks a push to scale up green investment and long-term economic cooperation.

High-level delegates and leaders attend the EU–Vietnam Global Gateway Business and Investment Forum. (Photo: EU Delegation in Vietnam)

The EU–Vietnam Global Gateway Business and Investment Forum opened in Hanoi on March 24, bringing together policymakers, financiers, and business leaders from both sides to advance cooperation and unlock new investment opportunities in sustainable development.

Held under the theme “Investing together in a sustainable future,” the Forum gathered around 500 delegates, including Vietnamese Deputy Prime Minister Ho Duc Phoc, representatives from the European Union, Vietnamese government agencies, international financial institutions, and leading corporations.

The event comes shortly after Vietnam and the EU upgraded their relationship to a Comprehensive Strategic Partnership, marking a new phase of deeper economic and political engagement.

Co-organized by the EU Delegation to Vietnam, the Foreign Investment Agency under the Ministry of Finance, and the European Chamber of Commerce in Vietnam (EuroCham), the Forum aims to bridge policy dialogue with practical business collaboration, with a focus on energy transition, sustainable transport, and green–digital transformation.

Deputy Prime Minister Ho Duc Phoc highlights Vietnam–EU cooperation at the Global Gateway Business and Investment Forum in Hanoi. (Photo: VnEconomy)

Addressing the event, Deputy Prime Minister Ho Duc Phoc reaffirmed the importance of the EU as a long-term partner, noting that cooperation between the two sides has developed strongly over more than three decades, supported by a growing network of agreements, particularly the EU–Vietnam Free Trade Agreement (EVFTA).

He highlighted the EU’s role as one of Vietnam’s leading economic partners, with increasing trade and investment flows and significant contributions from European businesses in areas such as innovation, green transition, and climate action.

Looking ahead, the Deputy Prime Minister called for enhanced cooperation in areas including green finance, technology transfer, high-quality investment, and new growth drivers such as the digital and circular economy. He also urged EU member states to accelerate the ratification of the EU–Vietnam Investment Protection Agreement (EVIPA) to strengthen investor confidence and the legal framework for bilateral investment.

European Commissioner for International Partnerships Jozef Síkela delivers his speech at the event. (Photo: VnEconomy)

Speaking at the Forum, European Commissioner for International Partnerships Jozef Síkela underlined the shift from commitments to implementation.

“Earlier this year, we upgraded the relationship between Vietnam and the European Union to a Comprehensive Strategic Partnership. Today, we are turning this into concrete investments that support Vietnam’s growth,” he said.

At the center of the discussions was the announcement of a €560 million investment package by the EU to support Vietnam’s energy transition and economic development.

“We are launching a package of investments worth €560 million to support Vietnam’s energy transition and economic development,” Mr. Síkela said, noting that Vietnam’s next stage of development depends on reliable energy supply and the creation of quality jobs.

A key component of the package is the Bac Ai pumped-storage hydropower plant, a 1,200-megawatt project valued at around €900 million. The facility is expected to enhance grid stability and improve the reliability of renewable energy by storing electricity during periods of surplus and releasing it when demand rises.

In parallel, the EU introduced a €40 million Sustainable Transport Facility designed to mobilize more than €1 billion in investments in rail and urban transport. The initiative will support major infrastructure projects, including the planned Hanoi–Ho Chi Minh City high-speed railway.

“Europe has the experience, technology and companies to support this. This facility will help turn these plans into concrete projects,” Mr. Síkela said.

The Forum also highlighted efforts to expand access to sustainable finance. A €200 million financing agreement between the European Investment Bank (EIB) and Techcombank was announced to support Vietnamese private sector investments in renewable energy, energy efficiency, and clean transport.

EIB Vice-President Nicola Beer. (Photo: VnEconomy)

EIB Vice-President Nicola Beer stressed the importance of translating financial commitments into tangible outcomes. “As the financing arm of the European Union, the European Investment Bank is here to help turn this commitment into concrete investments on the ground,” she said. “These investments will deliver tangible benefits for citizens – cleaner air, more efficient energy use, better access to sustainable energy, and new opportunities for jobs and growth.”

She added that the EIB is also working with Vietnamese authorities on a €500 million framework loan to support energy transition efforts, particularly in grid infrastructure and transmission.

The Forum featured a series of thematic discussions on sectors seen as key drivers of Vietnam’s sustainable growth, including energy transition, transport infrastructure, and the integration of environmental, social, and governance (ESG) standards in investment and business practices.

Beyond policy dialogue, the Forum also served as a platform for announcing new business and investment deals between European and Vietnamese partners across sectors such as transport, logistics, digital health, and industrial development.

The event also marked the launch of EuroCham’s 2026 Whitebook, which provides policy recommendations aimed at improving Vietnam’s business environment and facilitating the effective implementation of major investment commitments.

Taking place under the EU’s Global Gateway strategy, the Forum reflects a broader effort to mobilize public and private capital for sustainable infrastructure, clean energy, and digital transformation. The initiative is expected to play a growing role in supporting Vietnam’s transition toward a low-carbon, resilient economy.

“These projects show how Global Gateway works in practice,” Mr. Síkela said. “For Vietnam, it means modern infrastructure, cleaner energy and new jobs. For Europe, it means stronger economic ties and new opportunities.”

Vneconomy -Linh Tong

Strong commitment to transition

Tue, 24 Mar 2026 02:20:00 GMT

On the occasion of the EU-Vietnam Global Gateway Business and Investment Forum, H.E. Julien Guerrier, Ambassador of the EU to Vietnam, tells Ly Ha that Vietnam is a key partner in ASEAN and the recent upgrading of bilateral ties will open new opportunities in key sectors.

The EU-Vietnam Global Gateway Business and Investment Forum is being held following the upgrade of bilateral relations to a Comprehensive Strategic Partnership. How do you assess the significance of this Forum for the Vietnam-EU relationship, particularly in promoting cooperative projects on green transition and digital transformation?

The Forum is being held at a meaningful moment in Vietnam-EU relations, following the upgrade of our partnership. Strategically, the Forum matters because it helps translate shared priorities into concrete cooperation by highlighting real, bankable investment opportunities under the Global Gateway framework and bringing the right actors into the same room.

For Vietnamese businesses, this is a practical opportunity on several levels. It allows companies to engage directly with European partners to exchange know-how and technology in priority sectors such as energy, sustainable transport, digital transformation, and environmental, social, and governance (ESG)-related solutions.

Organized in close collaboration with the Foreign Investment Agency (FIA) at the Ministry of Finance and EuroCham Vietnam, the Forum will enable companies to build partnerships, form consortiums, and shape future business opportunities that can scale beyond a single project.

Importantly, the Forum also provides a platform to finance projects, as development banks, commercial banks, and investors will be present to discuss what it takes to make projects financeable and investment-ready.

It also creates space for an open conversation on the policy, legislative, and market barriers that can hold back investment, and on practical options to address those barriers so opportunities can be realized more quickly and sustainably.

In short, the Forum is designed to move from dialogue to delivery: connecting partners, aligning standards, unlocking finance, and helping remove obstacles so that Vietnam-EU cooperation on the green and digital transitions produces tangible results for businesses and people.

- Within the framework of the Global Gateway strategy and the new Comprehensive Strategic Partnership, how does the EU define Vietnam’s strategic role in the region? What are the key priority sectors where both sides expect to achieve breakthrough cooperation and tangible results?

The EU sees Vietnam as a key partner in ASEAN, not only because of its economic dynamism and market potential but also due to its growing role in regional and global value chains and its strong commitment to the dual transition: green and digital.

Within the Global Gateway strategy, the EU sees Vietnam as a place where both sides can jointly deliver high-quality, sustainable, and impactful investments in a win-win model.

As the partnership deepens, we expect breakthrough cooperation in several areas.

First is the energy transition, including renewable energy deployment, grid modernization, storage, and energy efficiency. Second is sustainable transport and greener logistics, particularly solutions that reduce emissions while strengthening connectivity. Third is trusted digital transformation, covering digital infrastructure, cybersecurity, and practical applications that help businesses improve productivity and integrate into global supply chains. Fourth is ESG, strengthening sustainability standards, transparency, and responsible business practices that make projects more bankable, resilient, and attractive for long-term investment.

Together, these four areas can help translate the upgraded relationship into tangible outcomes that generate long-term value, growth, and jobs for both Vietnam and Europe.

- Green transition and digital transformation are the two cross-cutting pillars of this year’s Forum. In your view, what are the greatest opportunities for Vietnam in this dual transition, and what specific support plans does the EU have to help Vietnamese businesses meet these standards?

For Vietnam, the dual transition is not only a global requirement but also a major opportunity to upgrade growth and competitiveness. In my view, the greatest opportunity lies in moving up the value chain: producing in a more efficient, cleaner, and more transparent way, with stronger traceability and better compliance with international standards. This will help Vietnamese companies access the EU market while strengthening their global competitiveness.

In terms of support, the EU’s approach combines finance, technology, and capacity building. On financing, we are mobilizing investments through the Global Gateway and European financial institutions. The EU, the European Investment Bank, and member states’ development banks have put in place dedicated support packages for Vietnam’s Just Energy Transition, while new facilities are being prepared to promote more sustainable transport. Together, these efforts help create enabling conditions for clean investment and decarbonization.

At the same time, we support the sharing of technology, know-how, and standards, for example in emissions measurement, energy efficiency, supply chain transparency, and responsible business practices.

Critically, we also focus on skills and training, especially for small and medium-sized enterprises (SMEs), so they can build practical capabilities, from carbon footprint calculation and sustainability reporting to responsible sourcing, quality management, and basic cybersecurity readiness. SMEs are not expected to become perfect overnight. What matters is a clear and credible upgrading roadmap, gradual but in the right direction, so that more Vietnamese businesses can participate effectively in Europe’s greener value chains, promote sustainable production and consumption, and contribute to Vietnam’s net-zero pathway.

- Can you tell us about the EU’s core ESG requirements, as well as the support mechanisms available to help Vietnamese enterprises - especially SMEs - adapt and enhance their competitiveness?

For the EU, ESG is a framework for ensuring that growth is anchored in good governance, social responsibility, and environmental sustainability. At its core, the EU places emphasis on three elements: transparency and measurable performance; responsible business conduct across supply chains; and credible pathways for emission reductions linked to real operational improvements.

In practical terms, this increasingly means stronger data and systems: on emissions, traceability, labor and safety standards, and governance and compliance. For SMEs, this can feel demanding, but it is also an opportunity to strengthen competitiveness and become eligible suppliers for larger buyers and international partners.

In terms of support, the EU focuses on capacity building, guidance, and practical tools - often tailored by sector - to help companies take gradual action. We also work to connect businesses with European partners, networks, and, where relevant, financing channels. The most effective approach is to help SMEs prioritize: start with the most material requirements, build internal capability, and then progressively raise the level of compliance as the business grows.

- Though the EU-Vietnam Free Trade Agreement (EVFTA) has delivered positive trade outcomes, EU FDI inflows into Vietnam remain below their potential, accounting for only about 2-5 per cent of total EU outward FDI globally. In your view, what are the main barriers constraining this investment flow?

The EVFTA delivers, as we see in our growing trade and investment figures. Trade in goods reached €76 billion ($87.19 billion) in 2025. Full and effective implementation will ensure mutual benefit, unlock the Agreement’s full potential, and make it a solid basis for our future ambitions.

Looking at our main areas of cooperation today - transport and renewable energy - several constraints stand out.

First, the scale and quality of EU investment in Vietnam are still below potential: many projects remain relatively small, and the share of high-tech, RD-driven investment is not yet as important as it could be given Europe’s strengths.

Second, investment is concentrated in a few regions and traditional sectors, while areas where we would like to see more momentum, such as renewable energy, sustainable transport infrastructure, and advanced technologies, have not yet attracted enough large-scale projects.

Third, absorption capacity: skilled talent, innovation ecosystems, and the ability to move from operating technology to developing and adapting higher-value technologies.

- What specific improvements does the EU expect from Vietnam in order to attract high-quality investment, particularly in renewable energy and sustainable transport?

To unlock more high-quality investment, I would highlight three priorities.

First, a stable, transparent, and consistently-enforced regulatory framework, particularly for renewables and infrastructure. Second, faster and clearer administrative procedures, including digitalized processes and an effective “one-stop” mechanism so that investors can track progress and reduce uncertainty. Third, greater investment in talent, RD, and innovation ecosystems, so that Vietnam can not only attract capital but also absorb technology and create sustained added value.

If these areas move forward, I am confident Vietnam can capture the opportunity created by supply chain restructuring and attract more large-scale, green, and resilient EU investment, especially in renewable energy and sustainable transport. The joint statement upgrading our relations is setting the right ambition and targets.

- The Vietnam-EU relationship is regarded as one of the most dynamic and wide-ranging partnerships between the EU and ASEAN. How do view the potential for both sides to jointly explore and create sustainable added value for Vietnam and Europe?

I agree that Vietnam-EU relations are among the most dynamic partnerships between the EU and ASEAN, and as our cooperation deepens, there is significant potential to expand into emerging, higher value added areas.

Transport cooperation is gaining momentum as a priority under the EU Global Gateway in Vietnam, with growing interest from European industry in supporting Vietnam’s ambitious investment plans, particularly in railways. The EU, together with Team Europe, is eager to share EU experience, know-how, and technology for Vietnam’s high-speed rail projects.

We are establishing a new €40 million ($45.9 million) transport facility to promote scale and impact in the development of public infrastructure projects on the ground.

In terms of emerging areas of cooperation that hold strong potential to create sustainable added value for both Vietnam and Europe, I would highlight four.

First is the high-tech ecosystem. The EU tech business offer brings strengths in advanced technologies, standards, equipment, and research, while Vietnam is rapidly developing its manufacturing base and workforce. With the right cooperation on skills, standards, and industry links, this is already becoming a high-priority area for both sides.

Second is AI and trusted digital innovation, where the EU places strong emphasis on trust, meaning that innovation should go hand-in-hand with safety, ethics, cybersecurity, and data protection.

Third is the circular economy, from sustainable product design and materials to recycling, waste reduction, and resource efficiency, which can strengthen competitiveness while reducing long-term costs and environmental impact.

Fourth is cybersecurity and trusted digital infrastructure, because as digitalization accelerates, cyber resilience becomes a foundational condition for trade and investment.

For our ambitions to succeed, the joint statement on the upgrade of our relations also reminded us that our initiatives need to be interesting for business and create opportunities that help us capitalize on the strengths of each side for the benefit of Vietnam and the EU. This includes an open, transparent, and predictable regulatory and procurement environment. The EU, as a trusted and secure partner, will have a lot to bring if the conditions are right.

We are working to develop a number of new flagship, implementation-ready projects in these areas. I believe the EU and Vietnam can create sustainable added value economically, technologically, and in terms of the quality and resilience of growth.

VET-Ly Ha

Journey of continued growth.

Tue, 24 Mar 2026 02:15:00 GMT

The upgrade of ties to a Comprehensive Strategic Partnership adds further momentum to a Vietnam - EU relationship already developing in a positive manner.

Vietnam and the EU announced the upgrade of their bilateral relationship to a Comprehensive Strategic Partnership on January 29, during the official visit to Vietnam by the President of the European Council António Costa, marking a significant milestone in their 35 years (November 28, 1990 - November 28, 2025) of bilateral relations and shared commitment to peace and prosperity. The upgrade reflects the breadth and depth of cooperation developed over more than three decades.

“For 35 years, our partnership has grown in depth and ambition,” President Costa said. “This upgrade fully captures the breadth and depth of our collaboration to date and our expectations for its future evolution - on trade, on green and digital transformation, on security, and on people-to-people ties.”

Bright spots.

One of the highlights in Vietnam - EU relations is trade and investment cooperation. After more than five years of implementation, the EU-Vietnam Free Trade Agreement (EVFTA) has led to remarkable growth in bilateral trade.

The most-recent figures from the National Statistics Office at the Ministry of Finance put trade turnover between Vietnam and the EU at $73.8 billion in 2025, an increase of 7.8 per cent against 2024. Of this, Vietnam’s exports to the EU totaled $56.2 billion, an 8.6 per cent increase, while imports reached $17.6 billion, up 5.4 per cent. The trade balance for the year was in surplus to Vietnam, by $38.5 billion, a 10.1 per cent ($3.5 billion) increase compared to the previous year and a record high for this market.

According to the Vietnam Chamber of Commerce and Industry (VCCI), significant milestones such as the Framework Agreement on Cooperation (FCA) in 1995 and the Vietnam - EU Comprehensive Partnership and Cooperation Agreement (PCA) signed in 2012 have contributed to shaping an increasingly stable legal framework for bilateral relations.

“The cooperative relationship between Vietnam and the EU since 1990 is seen as a strong, comprehensive, and increasingly in-depth development process,” said Mr. Dau Anh Tuan, Vice Secretary-General and Director of the Legal Department at VCCI. “Starting from humanitarian issues, cooperation between Vietnam and the EU has gradually expanded to many key areas, especially trade and investment.”

From a bilateral trade volume of less than $200 million in the early 1990s, he continued, this figure had reached nearly $74 billion by 2025, reflecting the increasingly close economic ties between the two sides. “Notably, in the context of a volatile global economy, the EVFTA has contributed to maintaining the positive growth momentum of bilateral trade, with an average growth rate of approximately 10 per cent a year,” he added. “The EU is currently Vietnam’s largest trading partner and an important export market for many of its key products, such as electronics, textiles, footwear, and agricultural products (coffee, cashews, and seafood), and is also a major source of machinery, technology, pharmaceuticals, and industrial equipment.”

Regarding investment, the EU is the sixth-largest investor among 153 countries and territories investing in Vietnam, with total FDI from EU enterprises in Vietnam standing at $32.39 billion. Thousands of EU investment projects operate effectively in Vietnam, and the EU business community continues to expand its investments in the country. Conversely, Vietnam currently has 98 investment projects in the EU, with total capital of $434.88 million.

According to Mr. Tuan, the EU is one of Vietnam’s important foreign investment partners, with a significant presence of investors from the Netherlands, Germany, France, Luxembourg, and Denmark. “EU capital flows are primarily concentrated in the manufacturing and processing industries, energy, infrastructure, and high-quality services,” he added. Notably, EU projects often feature high technology content, advanced governance standards, and a commitment to sustainable development, thereby making a positive contribution to Vietnam’s growth model transformation.

According to Deputy Minister of Foreign Affairs Le Thi Thu Hang, looking to the next 35 years and beyond, with a solid foundation and shared vision, along with the upgrade of relations to a Comprehensive Strategic Partnership, there is confidence in a journey of continued growth for Vietnam - EU relations, with broader cooperation space and increasingly high and sustainable quality.

New horizons.

Given ongoing development trends worldwide, Vietnam - EU cooperation faces open doors in various fields. In particular, the Comprehensive Strategic Partnership will provide a strengthened framework for cooperation across a wide range of areas, including trade and investment, climate action, energy transition, digital transformation, security and defense, human rights, and people-to-people exchanges.

Under the Partnership, both sides have great potential for cooperation in the fields of trade, sustainable development, innovation, the maritime economy, governance, security, and people-to-people exchanges. The EU wishes to strengthen cooperation with Vietnam in traditional areas such as trade and investment, agriculture, sustainable development, and climate change response, while expanding cooperation into new areas such as the green transition, the digital transformation, a just energy transition, infrastructure, and transport connectivity, commensurate with the level of the Partnership and becoming a model of cooperation between the EU and a Southeast Asian country.

From a European perspective, Mr. Alain Cany, Chairman of the EuroCham Advisory Board and Country Chairman of Jardine Matheson Vietnam, said this progress brings greater confidence, especially in the long term. “When making major investment decisions far from home, involving not just a few million dollars but substantial capital commitments, stability is essential,” he added. “Vietnam has consistently offered political stability, a talented workforce, and a strong position as a regional hub.”

Vietnam had also previously established comprehensive partnerships with several European countries, including France and Germany. However, he continued, having this framework at the EU level - where decisions on trade and investment are driven - provides stronger assurance for long-term engagement. It signals to European boardrooms that Vietnam is a market where long-term strategies can be confidently developed.

Mr. Tuan believes that building upon traditional areas of cooperation such as trade, investment, and agriculture presents both sides with opportunities to expand cooperation strongly into new, high-potential, and strategic areas such as the green transformation, the digital transformation, a just energy transition, infrastructure development, and connectivity.

Notably, cooperation in science, technology, and innovation is expected to become a new pillar in bilateral cooperation, leveraging Europe’s strengths in science and technology, digital transformation, and connectivity to support Vietnam in enhancing its competitiveness and transforming its growth model.

At the same time, upgrading the relationship will facilitate more effective utilization of the EVFTA and accelerate the ratification process of the EU-Vietnam Investment Protection Agreement (EUVIPA), thereby improving the business environment, increasing investor confidence, and attracting high-quality capital flows from the EU to Vietnam.

Areas such as environmental protection, the green economy, the circular economy, the marine economy, and clean energy will also continue to open up many opportunities for substantive cooperation, contributing to shaping Vietnam - EU economic relations in a sustainable, balanced, and long-term direction.

According to the Ministry of Industry and Trade, in its sixth year of implementation, fulfilment of the terms within the EVFTA has nearly reached 100 per cent. This is a “golden opportunity” for Vietnamese businesses to maximize the advantages of the Agreement, and also a crucial stage for transforming themselves toward the green and sustainable development trends found in the EU.

To further exploit the benefits of the EVFTA in the future, industries and businesses must continue to standardize production, better meet the technical standards of EU buyers, and promote exports while focusing on increasing added value, especially in sectors where Vietnam holds advantages, such as agriculture, fisheries, and manufacturing.

Next practical steps.

Mr. Cany said Vietnam offers political stability and is a dynamic and growing market, meaning that European investors can commit for the long term and select the right partners. “Vietnam offers much more than low-cost labor,” he added. “It has a young and capable workforce, a stable political environment, and strong growth ambitions. For investors who commit for the long term and choose the right partners, the opportunities are substantial.”

To promote Vietnam - EU economic relations in a more substantive and effective manner in the future, Mr. Tuan pointed out that Vietnam needs to implement a comprehensive set of solutions with clear and consistent policy directions. Firstly, continuing the effective implementation of the EVFTA while simultaneously urging the bloc to expedite the ratification of the EUVIPA is crucial in strengthening the legal framework and creating a transparent and stable investment environment, thereby attracting more high-quality capital flows from the EU.

It is also necessary to strengthen cooperation in green transition and sustainable development, considering this a strategic pillar of cooperation. Leveraging the EU’s strengths in technology, green finance, and environmental standards will not only help Vietnam accelerate the transition to a green growth model, develop a circular economy, and reduce carbon emissions, but also open opportunities for it to participate more deeply in global green value chains and better meet the increasingly stringent requirements of the EU market.

Furthermore, it is necessary to strengthen business connections, especially for small and medium-sized enterprises, through trade promotion activities, partner networking, supply chain development, and technology transfer promotion, thereby transforming commitments into concrete and sustainable business opportunities.

Meanwhile, the continued improvement of the investment environment, the enhancement of human resources quality, and infrastructure development play a crucial role in improving the capacity to absorb and effectively exploit opportunities from the EU. These reforms will not only increase the attractiveness of high-quality investment capital but also promote technology diffusion and enhance production capacity and added value in the economy, thereby creating a solid foundation for the stable, sustainable, and long-term development of Vietnam - EU economic relations.

VET-Ngoc Lan

Vietnam – EU ties set to flourish under Global Gateway

Tue, 24 Mar 2026 01:57:01 GMT

The EU-Vietnam Global Gateway Business and Investment Forum will act as a platform to boost investment, strengthen partnerships, and bolster sustainable growth between the two sides.

Hanoi hosts the first EU-Vietnam Global Gateway Business and Investment Forum on March 24, bringing together policymakers, financiers, and business leaders to explore new avenues for sustainable growth.

Held under the theme “Investing together in a sustainable future,” the Forum gathers around 500 delegates, including representatives from the EU, Vietnamese Government agencies, international financial institutions, and leading corporations from both regions. It comes at a pivotal moment, as Vietnam - EU relations were upgraded to a Comprehensive Strategic Partnership in January, signaling a deeper level of political and economic alignment.

Co-organized by the EU Delegation to Vietnam, the Foreign Investment Agency at the Ministry of Finance, and the European Chamber of Commerce in Vietnam (EuroCham), the Forum is expected to serve as both a policy dialogue platform and a practical gateway for business collaboration.

From March 23-25, European Commissioner for International Partnerships, Mr. Jozef Síkela, pays a visit to Hanoi to increase EU investments in Vietnam to create jobs and sustainable economic growth under the Global Gateway initiative. On this occasion, the Commissioner participates in the EU-Vietnam Global Gateway Business and Investment Forum.

Mr. Síkela introduced his mission: “Vietnam is an ambitious country with a fast-growing economy, a young population, and enormous potential. Together, we want to create new economic opportunities for young people and build a more sustainable economy through investments in clean energy and modern transport. With Global Gateway, we are bringing European companies and investors to Vietnam to turn this ambition into concrete projects that create jobs and support the country’s clean transition.”

During the Forum, the Commissioner, together with the European private sector, will announce new EU investments in Vietnam. The gathering will focus on clean energy and sustainable transport, which are Global Gateway priority areas in the country. These also support Vietnam’s efforts and commitments under the Just Energy Transition Partnership (JETP), which the EU co-leads.

The Forum aims to strengthen economic ties between Europe and Vietnam, and support Vietnam’s modernization into a sustainable, digital economy, with strong long-term growth. It will bring together high-level EU and Vietnamese policymakers, private sector leaders, investors, and other partners to create new avenues for trade and investment, showcase existing projects, and build lasting business partnerships.

The visit takes place under a Team Europe approach: joined by the Vice President of the European Investment Bank Ms. Nicola Beer, during which Mr. Síkela will lead a delegation of European companies to explore investment opportunities with a focus on sustainable transport.

Strengthening a 35-year partnership

The Forum builds upon 35 years of Vietnam - EU cooperation since the establishment of diplomatic relations in 1990. Over the decades, the partnership has expanded across trade, sustainable development, innovation, governance, and global security, laying a strong foundation for deeper engagement.

With the recent elevation of ties to a Comprehensive Strategic Partnership, both sides are now seeking to translate political momentum into tangible economic outcomes. Global Gateway - an EU initiative aimed at mobilizing high-quality, sustainable investment worldwide - has emerged as a key framework to achieve this goal in Vietnam.

As Vietnam continues to modernize its economy, it is undertaking major reforms and investing heavily in critical sectors such as energy and transport. These efforts are central to the country’s ambition to achieve a twin green and digital transformation, alongside its long-term commitment to reach net-zero emissions by 2050.

Through Global Gateway, the EU aims to support these ambitions by unlocking capital flows, strengthening infrastructure connectivity, and promoting innovation. The strategy also seeks to create a more enabling business environment, helping Vietnam attract long-term investment while ensuring sustainability standards.

Driving sustainable growth

At the core of the Forum’s agenda are strategic sectors identified as key drivers of sustainable growth, particularly green energy and sustainable transport. These areas are seen as critical not only for Vietnam’s economic development but also for enhancing connectivity between the EU and Southeast Asia.

Discussions will also cover broader themes such as infrastructure development, the green and digital transformation, and the adoption of environmental, social, and governance (ESG) standards in business and investment practices. Together, these topics reflect a shared priority to align economic growth with sustainability goals.

Beyond high-level discussions, the Forum is designed to deliver practical outcomes. It will connect European and Vietnamese stakeholders, facilitate new business partnerships, and spotlight investment opportunities across Global Gateway priority sectors. Particular attention will be given to supporting Vietnamese small and medium-sized enterprises in accessing international investors and integrating into global value chains.

The Forum will also provide a platform to address regulatory bottlenecks and market challenges. Dialogue between public and private sector representatives is expected to focus on improving standards, enabling technology transfer, and developing a skilled workforce to meet the demands of a rapidly-evolving economy.

By fostering closer cooperation between governments, businesses, and financial institutions, the EU-Vietnam Global Gateway Business and Investment Forum is poised to play a catalytic role in shaping the next phase of bilateral economic relations, one defined by sustainability, innovation, and shared prosperity.

About Global Gateway

In 2021, the European Commission and the EU High Representative launched Global Gateway, a new European initiative to boost smart, clean, and secure links in the digital, energy, and transport sectors while also strengthening health, education, and research networks around the world.

Since 2021, Team Europe (consisting of the EU and EU member states, the European Investment Bank, and the European Bank for Reconstruction and Development) has mobilized over €306 billion ($350.7 billion) of investments that support sustainable and high-quality projects, addressing the needs of partner countries and ensuring lasting benefits for local communities. This has allowed EU partners to develop their societies and economies and create opportunities for the private sector in the EU to invest and remain competitive, while upholding the highest environmental and labor standards as well as sound financial management.

The Global Gateway initiative, embodying a Team Europe approach, aims to mobilize up to €400 billion ($458.3 billion) in public and private investment from 2021 to 2027, creating essential links rather than dependencies and closing the global investment gap.

It reflects the commitment made by G7 leaders in June 2021 to launch a values-driven, high-standard, and transparent infrastructure partnership to meet global infrastructure development needs. Global Gateway is also fully-aligned with the UN’s Agenda 2030 and its Sustainable Development Goals, as well as the Paris Agreement. An initial milestone of Global Gateway was the Africa-Europe Investment Package, with approximately €150 billion ($171.8 billion) of investment dedicated to strengthening partnerships with Africa. It has also begun implementing Global Gateway in Asia-Pacific and in Latin America and the Caribbean.

In 2023, 90 key projects were launched worldwide across the digital, energy and transport sectors, while also advancing health, education, and research networks globally.

Total Global Gateway investment mobilized in 2021-2024

- Globally: €14.813 billion ($16.95 billion)

- Sub-Saharan Africa: €79.973 billion ($91.59 billion)

- Middle East and North Africa: €77.161 billion ($88.37 billion)- Asia-Pacific: €47.850 billion ($54.8 billion)

- Latin America / Caribbean: €31.469 billion ($36.04 billion)- Eastern Neighborhood: €28.488 billion ($32.62 billion)

- Western Balkans: €27.044 billion ($30.97 billion)Global Gateway partnerships in VietnamUnder the Vietnam Just Energy Transition Partnership (JETP), three major renewable energy projects are moving forward:

+ Construction of the Bac Ai pumped storage hydroelectric plant (1,200 MW); the first of its kind in Vietnam, which began in February 2025;

+ Expansion of the Tri An hydropower plant by 200 MW, to support greater integration of intermittent renewable energy into the grid;

+ Implementation of Phase 2 of the Tra Vinh near-shore wind farm (48 MW), which has been approved, with a tender planned for mid-2025 and pre-development already underway.

-Linh Trang

Blended approach between Europe and Asia

Mon, 23 Mar 2026 09:30:00 GMT

European discipline and Asian speed have long been seen as opposing forces, but in Vietnam’s rapidly-evolving economy the combining of both may be key to staying competitive.

For decades, global business has been framed by a familiar contrast: Asia moves fast, while Europe moves carefully. Speed versus discipline. Agility versus quality. As supply chains shift and markets converge, the question is no longer which approach is better, but whether the two can actually be aligned.

The differences are stark. In Europe, an e-commerce order may take days to arrive, while in much of Asia it can reach the customer overnight or even within hours. In the automotive industry, meanwhile, European manufacturers often spend three to six years developing a new model, while Asian competitors can do so in as little as 18 to 24 months.

The cliché suggests that Europe takes time to ensure quality, while Asia prioritizes speed at the expense of precision. Yet in an increasingly fast-moving global economy, the real challenge is whether European rigor and Asian momentum can be combined into a new competitive formula.

Where speed meets discipline

Few markets capture the tension between speed and discipline as vividly as Vietnam - a country transforming at a pace that both attracts and challenges European businesses. For companies shaped by long planning cycles and rigorous procedures, Vietnam’s rapid evolution can feel both exhilarating and destabilizing. Yet that momentum is precisely what continues to anchor European confidence in the market.

After nearly 15 years in the country, Ms. Delphine Rousselet, Executive Director of EuroCham Vietnam, has watched the transformation unfold in real time. The speed of change, she noted, is visible not only in economic data but in everyday life. “Every time you leave the country for a few weeks and come back, there is something new,” she said, pointing to the constant emergence of new cafés and shops and other developments as tangible signs of an economy in motion. That dynamism is reflected in business sentiment. EuroCham’s latest Business Confidence Index found that 88 per cent of European companies would recommend Vietnam as an investment destination, with long-term outlooks remaining strongly positive despite ongoing challenges such as talent shortages and regulatory bottlenecks.

Vietnam’s appeal lies not only in growth projections but also in its ability to execute. Ms. Sabine U. Dietrich, Non-Executive Director at Commerzbank AG and a former executive at British Petroleum, experienced firsthand the gap between European decision-making processes and Asian implementation speed. Securing approvals from headquarters for a gasoline station network in Vietnam took five months, shaped by layers of governance and risk assessment. Once approval was granted, local teams completed a fully operational model within just four weeks - a contrast she described as “incredible.” The experience illustrated how speed on the ground can coexist with, and sometimes outpace, the discipline embedded in European corporate structures.

Institutional change has reinforced this momentum. According to Mr. Peter Kompalla, Chief Representative of AHK Vietnam, the country has recorded one of the most significant improvements globally in ease of doing business over the past two decades. Sweeping administrative reforms demonstrate a willingness to pursue change at a scale rarely seen in Europe. While such measures inevitably create short-term disruption, businesses increasingly view them as signals of a long-term commitment to productivity and competitiveness.

At the operational level, the balance between speed and discipline often determines whether rapid growth translates into sustainable success. Mr. Frank Schellenberg, Founder and Chairman of DIGI-TEXX, encountered this reality when relocating his company’s facilities in Ho Chi Minh City. Local teams were confident the move could be completed within weeks, reflecting Vietnam’s capacity for swift execution. Yet closer scrutiny revealed critical infrastructure considerations, from electrical capacity to network reliability, that required careful verification. “Speed is one thing, but quality and sustainability are another,” he said, underscoring the need to integrate both approaches rather than choosing between them.

Taken together, these experiences suggest that the perceived divide between European discipline and Asian speed is less a clash than a balancing act. In Vietnam’s rapidly-evolving economy, success increasingly depends on the ability to combine rigorous preparation with the agility to act quickly, aligning two approaches once seen as incompatible into a single competitive advantage.

Risks that follow

If speed is Vietnam’s defining advantage, it is also a source of vulnerability. Rapid expansion, regulatory shifts, and infrastructure rollouts have created opportunities for businesses, but they have also exposed the limits of moving faster than systems can support.

Much of the current optimism surrounding Vietnam stems from global supply chain realignment and shifting trade dynamics. As companies seek alternatives to traditional manufacturing hubs, the country has emerged as a primary destination for relocation and expansion. Ms. Rousselet noted that some European manufacturers have seen export orders double as production shifts toward Vietnam, reinforcing the perception of the country as a rising industrial center.

Yet acceleration can produce friction. Policies and systems introduced at speed do not always account for operational realities, particularly for foreign businesses navigating unfamiliar administrative frameworks. Ms. Rousselet pointed to the rollout of the VNeID digital identification system as one example where implementation moved ahead of practical guidance for international users, creating complications for companies attempting to comply.

Infrastructure development presents similar challenges, she noted. Major projects can be completed and opened before supporting systems are fully in place - airports without adequate transport connections or facilities launched before construction is entirely finished. Such cases illustrate a recurring tension: speed delivers visible progress, but without coordinated planning it can also create costly disruptions.

For European firms, the challenge is compounded by differences in risk perception. Despite strong interest in Vietnam, many companies remain cautious when committing capital. Mr. Kompalla noted that his company receives 700-800 inquiries from German companies seeking opportunities in Vietnam, yet final decisions are often delayed.

“Part of this relates to developments in Germany, for example uncertainty about the future of the automotive industry and customer demand,” he said. “But there is also a cultural aspect. Things move very fast here, which makes outcomes less predictable. In Germany, this creates fear because risk management becomes more difficult.”

In contrast, he observed, the cultural strength in Vietnam is the willingness to move forward without fear - to act first and resolve problems along the way. The key is to find a compromise: less fear and more trust on the German side, and perhaps more openness to expertise and quality on the Vietnamese side. That would elevate cooperation to the next level.

At the company level, balancing speed with quality becomes a daily operational test. Mr. Schellenberg emphasized that clients increasingly demand rapid delivery without compromising standards, a combination that requires both agility and disciplined processes.

“Our slogan is ‘German quality made in Vietnam,’ which emphasizes quality rather than speed,” he said. “Speed can therefore be challenging for us. We can respond quickly, but sometimes we do not yet fully understand what the customer wants to achieve.” His company’s experience highlighted the importance of training and systems capable of sustaining quality at scale, particularly in a labor market where vocational education pathways remain limited.

Cultural understanding ultimately shapes whether speed becomes an advantage or a liability. Ms. Dietrich argued that aligning European planning with Asian adaptability is not only possible but necessary in a fast-moving global economy. Drawing on her experience managing diverse teams, she pointed to deep-rooted differences in how societies approach hierarchy, uncertainty, and relationships. Vietnamese business culture, she noted, tends to value seniority and personal trust, while German corporate culture emphasizes competence, structure, and precision - differences that can either create friction or form a powerful combination when properly understood.

Her own experience underscored the importance of relationship-building in Vietnam’s business environment. Early in her career in the country, meetings with local industry leaders often began not with negotiations but with deeply personal questions - about her background, family, and life. When she responded candidly, the atmosphere shifted from cautious formality to genuine trust, opening doors that formal credentials alone could not. The episode revealed a fundamental difference in approach: in many Asian contexts, business follows relationships rather than the other way around.

In that sense, Vietnam’s trajectory reflects a broader shift in international business. The debate is no longer about choosing between speed and discipline, but about integrating both into a model that can withstand volatility while maintaining momentum.

VET- Diep Linh

A spectacular transition in gender roles

Mon, 23 Mar 2026 04:00:00 GMT

Women have carved out their own place within Vietnam’s business landscape over the decades.

Vietnam’s economy has witnessed a spectacular transition in gender roles in business during the nearly 40 years of “Doi Moi” (Economic Renewal). Whereas the business environment was once presumed to be the domain of men, governed by rigid management philosophies, women’s presence and intellect now permeate key sectors.

Vietnamese women are shifting from the “back seat” to the “captain’s seat”, steering enterprises forward. Combining empathetic leadership with decisiveness, women entrepreneurs are not only building personal wealth but also pioneering humane, sustainable value for the community, elevating the national economy in the new era.

Pivotal roles

According to the Agency for Private Enterprise and Collective Economy Development at the Ministry of Finance, as of October 2025, Vietnam had more than 1 million active businesses, of which an impressive 20 per cent or more are women-owned and more than half have female participation in ownership structures.

The number of women-led enterprises has been growing at a rate of at least 2 per cent each year; far exceeding the average growth of the business community overall. This has positioned Vietnam as one of ASEAN’s most dynamic markets for female entrepreneurs, with one of the region’s most effective networks of women-owned businesses.

Ms. Mai Thi Dieu Huyen, Vice Chairwoman in charge of the Vietnam Women Entrepreneurs Council at the Vietnam Chamber of Commerce and Industry (VCCI), noted that the private sector currently contributes about 45 per cent of GDP and 33 per cent of the State budget. Within this vast growth engine, women entrepreneurs account for 24 per cent in number yet play pivotal roles across sectors from agriculture and consumer goods to services and, notably, innovation. No longer behind the scenes, they are on the frontlines confronting challenges to create value.

To attain today’s position, women in business have undergone a rigorous process of “tempering,” pairing elegance with extraordinary resilience and pressure tolerance. However, the path to success is not paved with roses. Ms. Huyen and experts from RMIT University have identified a range of systemic barriers still facing women business owners. Most women-led businesses remain small in scale, facing difficulties in accessing formal finance and limited market networks.

More concerning are the invisible barriers of social prejudice. The dual burden of family and work remains a persistent challenge. An RMIT study emphasized that gender bias continues to undermine women’s leadership authority, with real cases of clients doubting a female director’s role solely because of her gender.

Ms. Alice Hawkins, Second Secretary at the Embassy of Australia in Vietnam, agreed that women often lack access to comprehensive business networks and development services. Existing training programs can be overly theoretical, failing to equip them with practical skills such as negotiation, strategic management, and digital technology application in the Industry 4.0 era.

Yet it is precisely in adversity that women’s managerial identity shines. Attention to detail, perseverance in crisis, and an empathetic ability to connect teams become their defining strengths, turning pressure into motivation and prejudice into leverage to prove their capabilities.

Writing a new chapter

In the digital era, Vietnamese women leaders have demonstrated vision equal to any male counterpart. Mr. Dau Anh Tuan, Deputy Secretary General of VCCI, described them as true “female generals” in the marketplace.

One prominent example is Ms. Le Hong Thuy Tien, CEO of the Imex Pan Pacific Group (IPPG). Under her leadership, IPPG has transformed from a small distributor into a leading retail powerhouse over more than 35 years, bringing over 100 luxury brands to Vietnam. Beyond retail, she is building a strategy to position Vietnam as a regional shopping hub through modern duty free and outlet networks.

Her vision is closely tied to technology. Ms. Tien has anchored IPPG’s development on three pillars: intelligent automation using AI and big data to forecast demand and optimize supply chains; a hybrid intelligence model blending physical retail with digital platforms to personalize the customer journey; and investment in knowledge through sponsorship of AI training centers at universities to prepare future talent.

Aligned with the green transition, Ms. Huynh Bich Ngoc, Standing Vice Chair and CEO of the TTC Group, has chosen circular agriculture as a strategic direction. With targets including VND60 trillion ($2.31 billion) in revenue by 2030 and net-zero emissions by 2035, TTC demonstrates that business is not only about profit but also about responsibility to the planet. Through transparency and decisive green transformation, she has mobilized substantial international financing, reinforcing the credibility of Vietnamese women entrepreneurs globally.

The most distinctive trait of women entrepreneurs is inclusiveness in leadership thinking. They pursue not only personal prosperity but also community value, particularly supporting other women.

Ms. Tien said IPPG actively partners with small and medium-sized enterprises and collaborates with UN Women to promote Diversity, Equity, and Inclusion (DEI). For her, sustainable development begins with equal opportunity for all genders.

At the BLUSAIGON JSC, meanwhile, Chairwoman Ton Nu Xuan Quyen has taken a deeply humanistic path by revitalizing traditional handicrafts. Through her pearl pens, she sells not just products but stories of women’s entrepreneurial resilience, believing that workers vulnerable to digital disruption deserve preservation and recognition through cultural values.

Within the multinational sector, Ms. Huynh Thi Ngoc Truc, Vice President, Country Head of People at Coca-Cola Beverages Vietnam, has made women’s empowerment a mission tied to shareholder commitments. With a goal of 50 per cent female leadership by 2030, she has broken stereotypes that technical and supply chain roles belong only to men, even “exporting” Vietnamese female leaders to demanding markets such as India and Indonesia.

At the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), women constitute 60 per cent of the workforce. Ms. Nguyen Thi Quynh Giao, Senior Executive Vice President of BIDV, noted that women hold 99 per cent of leadership roles in retail banking. Leveraging empathy, they have designed initiatives such as “BIDV Women Wealth,” redefining wealth beyond money to include knowledge, health, and networks.

No longer decorative figures in a harsh marketplace, women are architects of sustainable value, agents of change, and the clearest proof of equality in action. Whether leading a conglomerate or a handicraft workshop, they are writing a new chapter for the national economy with empathy and sharp intellect.

In the new era, I believe the role of businesses is also changing. Enterprises are not only generating profits but also helping shape industry development standards and enhance the national image. Each export shipment is not merely a commercial transaction but also a reflection of Vietnam’s credibility in international markets.
For women entrepreneurs, this is a period to demonstrate leadership through intellect and resilience. Women in agricultural exports are not only involved in operations but also directly engaged in strategic planning, risk management, and building corporate cultures grounded in integrity and discipline. In an increasingly transparent global business environment, sustainable competitive advantage does not come from noise but from stability and standards. Women entrepreneurs can contribute to this transition through long-term thinking and the ability to balance economic efficiency with social responsibility.
Our aspiration for the new year is not only to expand markets but also to elevate Vietnamese agricultural products through quality and standards. I believe that when each enterprise maintains its internal strength and each entrepreneur upholds integrity, the national economy will be reinforced from its most solid foundations.
In my view, the new era is one of intellect, standards, and responsibility - and women entrepreneurs can absolutely take the lead in elevating Vietnam’s value in the global marketplace.

Ms. Nguyen Thi My, Chief Executive Officer, Hamy Corporation

To advance women-owned businesses, three core solutions are essential: institutional and policy reforms to create a more equal and transparent business environment; expanded access to finance to help women entrepreneurs obtain capital, particularly from the private sector and international funds; and digital innovation linked with building networks that support women entrepreneurs domestically and internationally.
Regarding institutions, empowering women entrepreneurs with intellectual property rights is critical, as up to 70 per cent of small and medium-sized enterprises have not registered their own brands or trademarks. Ensuring gender-responsive transparency in intellectual property rights will help women protect creative assets, enhance competitiveness, and build sustainable brands.
In addition, leadership remains predominantly male. The share of women in leadership and management positions should increase from the current 24 per cent to 30-40 per cent in the near future. Achieving this requires institutional reform, simplified investment and business procedures, and the removal of gender-related barriers. Institutional reform will also help safeguard women entrepreneurs’ brands, especially major brands, from imitation or theft. When women have equal opportunities in leadership and innovation, the economy will grow more inclusively and sustainably. Politburo Resolution No. 57-NQ/TW represents a “golden opportunity” for Vietnam to realize this core solution.
Financial access solutions include venture capital, funding programs, and support resources such as STEM [Science, Technology, Engineering, and Mathematics] scholarships for women entrepreneurs. For women-led businesses, I encourage entrepreneurs to invest in building and digitizing their brands and to treat these as assets when accessing loans.

Ms. Zoe Dayan, Senior Regulatory Reform Attaché, UK Mission to ASEAN

As a woman entrepreneur, I understand the unique challenges women face in the marketplace. However, I also see significant opportunities. Women today are no longer on the sidelines but are increasingly becoming creators, leaders, and sources of inspiration. Flexibility in thinking, persistence in action, and the ability to balance business efficiency with human values are advantages that enable women entrepreneurs to adapt quickly to a new context, where success is measured not only by revenue but also by positive contributions to society.
In the new era, as sustainable development becomes an inexorable requirement, I believe a company’s core value lies not only in scale or growth speed but also in how it chooses to engage with society. On that foundation, I am confident that Vietnamese women entrepreneurs will continue to assert their pioneering role, contributing to the creation of a green, digital, and deeply humane economy for the country.

Ms. Bui Thuc Anh,Director of the Esperantotur Services JSC

VET-Vu Khue

Legal preparatory steps for crypto asset market

Sun, 22 Mar 2026 09:46:00 GMT

Work continues on developing a framework for the regulation of a crypto asset market in Vietnam.

Vietnam’s crypto asset market remains in its early, pilot stage. As such, during the five-year pilot period, the framework will be continually reviewed and fine-tuned to ensure it operates in line with market developments. Experts believe that if the implementation of Resolution No. 05/2025/NQ-CP on the pilot rollout of the crypto asset market in Vietnam delivers positive outcomes and receives strong social acceptance, a standalone law on crypto assets could be developed.

Sharing insights into the process of drafting Resolution No. 05, Ms. Le Thi Hoang Thanh, Deputy Director General of the Department of Economic-Civil Legislation at the Ministry of Justice (MoJ), said the issue of legally institutionalizing crypto assets had been raised as early as ten years ago and had undergone extensive debate. These discussions focused on three core questions: whether crypto assets should be recognized as assets; which legal instrument should be used and whether the Civil Code would need to be amended; and which ministry should assume primary responsibility. After extensive inter-ministerial discussions, consensus was eventually reached, Ms. Thanh said.

Regulatory rollout

Accordingly, crypto assets were recognized as assets, as they possess all essential attributes of assets, including being the result of labor, production, and investment, having identifiable value, and being capable of existing as physical assets or property rights depending on their structure. It was also agreed that the Civil Code, as the foundational law, should remain unchanged, as it is designed to regulate only stable and general social relations.

Both the Ministry of Finance (MoF) and the MoJ supported issuing a dedicated regulatory instrument tailored to this special class of assets. Regarding institutional responsibility, the MoF was designated as the lead agency, given the financial nature of crypto assets and their role in capital mobilization.

According to Mr. To Tran Hoa, Standing Deputy Head of the Management Board for the Digital Asset Trading Market at the State Securities Commission (SSC) under the MoF, Article 17 of Resolution No. 05 assigns several key tasks to the Ministry. First is the drafting of a decree on administrative sanctions in the crypto asset sector, which has already been submitted to the government for promulgation.

Second, the resolution requires the MoF to coordinate with other ministries to provide detailed guidance on its implementation. Two major issues are currently being addressed: accounting and auditing regimes for enterprises participating in the crypto asset market, and tax regimes applicable to crypto asset-related activities.

Mr. Hoa said the Ministry is drafting three circulars: one on accounting and auditing regimes for crypto asset service providers, issuers, and trading enterprises; one on tax policy, setting out a framework for applicable tax rates; and one defining taxable entities and providing guidance on tax collection. “The SSC is coordinating with relevant units under the Ministry, and these circulars are expected to be issued in the first quarter of 2026,” he said.

In parallel, the SSC has submitted proposals for ministerial-level decisions, including a decision issuing an implementation plan for Resolution No. 05, which establishes professional focal points to support market operations.

In addition, the Commission has submitted Decision No. 96 on administrative procedures to the MoF for issuance. On January 20, it officially opened the portal to receive the first registration applications from organizations seeking to provide crypto asset services.

Ms. Nguyen Van Hien, Vice Chairwoman and Secretary General of the Vietnam Blockchain and Digital Assets Association, said a series of legal frameworks had been issued during 2024-2025 to accelerate market development. “We often joke that just over one year of policy-making has achieved what would normally take ten years to build,” she said.

While Vietnam entered the field later than some countries, Ms. Hien noted that it has actively learned from and adapted international regulatory models. As a result, Vietnam is not moving slowly but rather at a relatively fast pace, with basic legal frameworks already in place. She expressed an expectation that more specialized and in-depth regulations would follow.

From a legislative perspective, Mr. Nguyen Hai Nam, Standing Member of the National Assembly’s Economic and Financial Committee, said Vietnam’s approach reflects two key realities: its relatively large volume of crypto asset transactions compared to global markets, and its strong pool of information technology engineers. These factors, he said, underscore the sector’s development potential.

He added that the Law on Digital Technology Industry, passed in June 2025 and effective from January 1, 2026, includes provisions on digital assets under the Civil Code, signaling a gradual legal formalization of real-economy developments. In addition, pressure from international organizations such as the Financial Action Task Force to strengthen anti-money laundering and counter-terrorist financing measures has reinforced the government’s resolve. Resolution No. 05 was issued just three months after the Law’s passage. “The approach is gradual, proactive, and cautious, ensuring development while maintaining legislative discipline, system security, and investor protection,” Mr. Nam said.

Towards a dedicated law

Experts emphasized that current legalization efforts do not amount to the immediate and full legitimization of the crypto asset market, but rather the establishment of a foundational framework for future growth. Once such a framework is in place, key questions will include how Vietnam identifies and channels global capital flows, estimated at more than $220 billion, how transactions are structured, and how many Vietnamese currently hold crypto assets.

Under Resolution No. 05, crypto asset exchanges operating during the pilot phase will serve two groups: Vietnamese investors currently trading on overseas platforms, and foreign investors, particularly those interested in crypto assets linked to real-world assets; a segment forecast to grow strongly through 2030.

Ms. Hien said a robust legal framework would enhance transparency and investor confidence. After the pilot phase, crypto assets could become accessible to both international and domestic investors, creating opportunities to attract new capital into Vietnam. “We expect the initial legal framework to continue evolving, with the crypto asset market potentially developing in parallel with the stock market,” she said.

Ms. Thanh noted that sufficient grounds already exist to move beyond Resolution No. 05, which has a five-year validity period. Depending on implementation outcomes, higher-level legal instruments could be considered even before the pilot period concludes.

She outlined three possible paths: issuing a decree to guide implementation of the Law on Digital Technology Industry, continuing with a National Assembly pilot resolution at a higher legal level, or, ideally, enacting a standalone law on crypto assets. “The choice will depend on implementation effectiveness and social demand,” Ms. Thanh said. “If Resolution No. 05 delivers positive results and broad social acceptance, a dedicated law on crypto assets would be appropriate, one that balances effective management with the promotion of market development.”

Mr. Nam added that international practice typically progresses from framework laws to pilot sandboxes and eventually to specialized legislation. Vietnam is currently in the second phase, requiring time for implementation, supervision, and evaluation. Once data is sufficiently mature, policymakers can determine the appropriate timing for a specialized law, aligned with Vietnam’s broader economic context.

VET-Thuy Dieu

Positive open-ended fund performance

Sun, 22 Mar 2026 03:30:00 GMT

Many open-ended funds posted double-digit returns in 2025 as their longer-term approach proved fruitful.

Vietnam’s stock market surged over the course of 2025, with the VN-Index climbing nearly 41 per cent while investment funds maintained stability thanks to long-term strategies and disciplined risk management. Behind the impressive gains, however, lay a clear divergence in performance, creating notable challenges for both individual investors and fund managers. Amid significant short-term pressures, many open-ended funds still achieved double-digit returns, with markedly lower volatility and risk than self-directed retail investors.

Standing out

Though the VN-Index repeatedly set new highs, growth momentum was driven mainly by a handful of large-cap stocks in the VN30 basket. Meanwhile, more than 46 per cent of listed stocks posted negative returns. Even companies with solid fundamentals experienced prolonged corrections due to interest rate pressures, macro-economic conditions, and capital rotation. Excluding VIC-related stocks, the VN-Index rose by only 10.6 per cent, underscoring the fact that most investors did not benefit proportionately from the headline index gains.

Data from Fmarket shows pronounced performance rotation across investment styles. In 2025, equity funds with agile strategies and able to rebalance portfolios in line with capital flows emerged as top performers.

Specifically, several funds recorded returns exceeding 30 per cent, far outpacing the realized gains of most individual portfolios. Notable examples include BVFED (36.77 per cent), DCDS (32.84 per cent), and MAGEF (30.74 per cent). Other strong performers included UVEEF (24.6 per cent), BMFF (24.51 per cent), VCBF-BCF (22.82 per cent), MBVF (20.84 per cent), TCGF (18.93 per cent), and EVESG (18.86 per cent). Similarly, Manulife’s open-ended funds posted a strong year, with the Manulife Equity Fund (MAFEQI) gaining 17.3 per cent.

Funds managed by UOB Asset Management Vietnam (UOBAM) also delivered positive results in 2025. The United ESG Vietnam Equity Fund achieved a return of 24.62 per cent, while the United Vietnam Dynamic Income Fund posted 9.67 per cent.

Fmarket’s five-year data shows that the top-performing fund group delivered average annual returns of around 15-22 per cent. Notably, the leaders in long-term performance remain familiar names, such as VINACAPITAL-VESAF, DCDS, SSI-SCA, BVFED, MAGEF, and VCBF-BCF. According to Fmarket, this consistency is not coincidental but reflects portfolio management capabilities, disciplined investment processes, and the ability to adapt across multiple market cycles.

This underscores the core nature of open-ended fund investing as a medium to long-term asset allocation strategy, which proves most effective when investors maintain sufficiently long holding periods, ideally spanning at least one full economic cycle.

What lies ahead

As 2026 begins, attention is focused on Vietnam’s roadmap to upgrade its stock market to FTSE Russell’s Secondary Emerging Market status. This represents not merely a label, but a structural turning point for capital flows.

According to Mr. Ngo Thanh Huan, CEO of the FIDT Investment Consulting and Asset Management JSC, the biggest opportunity does not lie in short-term foreign inflows over a few quarters, but in a structural transformation of the capital market. Market reclassification pushes Vietnam closer to international standards on transparency, corporate governance, institutional investor access, and valuation discipline. This opens the door to longer-term, passive, and institutional capital, which is typically more stable and less speculative.

“In other words, reclassification does not make the market rise faster; it makes the market more mature,” Mr. Huan emphasized. “The greatest opportunities belong to companies and investors willing to play by long-term rules, accept discipline, and meet higher standards. It also lays a solid foundation for attracting large domestic capital pools, such as insurance companies and voluntary pension schemes, which still have significant room to grow.”

Mr. Le Thanh Hung, Chief Investment Officer at UOB Asset Management Vietnam, expects the market upgrade to be a major catalyst, creating a new foundation for fund operations and sustainable market development.

According to Mr. Hung, the key opportunity lies not only in capital inflows but in international recognition. Reclassification would shift institutional investors’ perspectives from tactical allocation to strategic allocation. This would incentivize Vietnam to accelerate reforms, standardize market practices in line with global norms, and improve the quality of listed companies.

He added that alongside the opportunities created by market reclassification, Vietnamese companies will also face more stringent requirements from international institutional investors. “When accessing large and long-term capital pools, evaluation criteria extend beyond financial performance to include transparency, governance, and accountability,” Mr. Hung noted.

Foreign investors expect Vietnamese companies to enhance disclosure transparency; align financial reporting more closely with international standards; and use English in reporting and investor communications. At the same time, companies are expected to improve corporate governance quality and investor relations practices in line with global norms.

An equally important challenge is building long-term trust with institutional investors. Large funds typically prioritize risk management capabilities and the degree to which companies honor commitments to shareholders. Maintaining credibility, consistently delivering on commitments, and acting transparently will be decisive factors in attracting and retaining long-term capital as the market enters a new stage of development.

“To fully capitalize on the reclassification opportunity, Vietnam needs to continue removing structural bottlenecks, such as expanding foreign ownership limits, completing a centralized clearing counterparty (CCP) mechanism, shortening the settlement cycle to T+0, adopting international accounting and financial standards, and increasing the supply of high-quality new products to broaden investment opportunities for foreign institutional investors, particularly large global funds,” Mr. Hung explained.

Growth alongside risk control

Investment funds view Vietnam’s economic outlook in 2026 with cautious optimism. Double-digit growth targets are ambitious amid ongoing global risks, but remain achievable if policy execution is sufficiently decisive and domestic growth drivers continue to play their role. More importantly, growth must not only be rapid but also accompanied by macro-economic stability and effective risk control to ensure medium and long-term quality.

In the stock market, supportive factors seen in 2025, such as accommodative policies, recovering consumption, and a rebound in international tourism, are expected to continue into 2026.

According to Mr. Hung, because 2025’s gains were concentrated largely in a small group of large-cap real estate stocks, overall growth was not broad-based. In the new year, the VN-Index is unlikely to replicate the previous year’s strong double-digit increase, but this may be offset by better sectoral breadth, creating a healthier growth foundation and a more favorable environment for selective, fundamentals-driven investment strategies.

Capital flows in 2026 are expected to remain highly differentiated, rotating among sectors based on distinct growth narratives. Sectors such as banking, retail, construction materials, and those benefiting from public investment are still expected to attract capital. “In addition, companies with strategic roles in the economy and sectors benefiting from government policies, particularly those related to infrastructure and energy security, may become destinations for long-term capital,” Mr. Hung said.

Offering recommendations to investors, Mr. Hung noted that 2026 will require a long-term investment mindset, avoiding the temptation to chase short-term market fluctuations. Portfolio diversification to manage risk, along with investing through professional funds to leverage analytical expertise and risk management capabilities, also represents a prudent approach.

VET-Uyen Van

Epson’s technology sustainability reshaping Vietnam’s textile industry

Sat, 21 Mar 2026 09:30:00 GMT

Industry embracing digital and sustainable technologies such as those from Epson to cut costs, reduce environmental impacts, and strengthen global competitiveness.

Vietnam’s textile sector is at a pivotal moment, showing resilience with a notable rebound in performance even as structural challenges persist. In the first nine months of 2025, textile and garment exports climbed 7.7 per cent year-on-year to around $34.75 billion, helping Vietnam maintain its position among the world’s top exporters in the global market. Vietnam’s textile sector is at a pivotal moment, showing resilience with a notable rebound in performance even as structural challenges persist. In the first nine months of 2025, textile and garment exports climbed 7.7 per cent year-on-year to around $34.75 billion, helping Vietnam maintain its position among the world’s top exporters in the global market.

However, this recovery comes against a backdrop of mounting pressure: heavy reliance on imported raw materials, rising production and logistics costs, and increasingly stringent sustainability and traceability requirements imposed by global brands and export markets. As international buyers accelerate commitments to lower-carbon, water-efficient, and circular supply chains, sustainability has shifted from a competitive advantage to a baseline requirement. These combined forces underscore the urgent need for deeper restructuring and technological transformation, as Vietnamese textile manufacturers seek to move up the value chain while aligning economic growth with environmental responsibility.

A major factor affecting the competitiveness of Vietnam’s textile industry is operational efficiency, particularly in minimizing water usage and production waste.

Conventional textile manufacturing is still highly water-intensive, placing both environmental and financial burdens on producers. In contrast, digital textile printing allows for on-demand production, eliminating the need for high Minimum Order Quantities (MOQs) and significantly reducing overproduction and excess inventory, which are persistent challenges for both manufacturers and brands. The shift aligns closely with Vietnam’s national industrial development strategies, led by the Ministry of Industry and Trade, which identify textiles and garments as a priority sector for technological upgrading, productivity improvements, and sustainable manufacturing.

Digital textile printing provides a significantly more resource-efficient alternative to conventional analog methods. Leading this technological transformation is Epson’s Monna Lisa Series, designed as a sustainable industrial solution.

Using pigment-based inks, Monna Lisa streamlines production and can reduce water consumption by up to 97 per cent compared with traditional water-intensive processes. In addition, Epson is committed to ensuring that its full ecosystem adheres to high standards that deliver quality outcomes suitable for international trade. Its water-based GENESTA inks, certified by Oeko-Tex Eco Passport and approved by GOTS and Bluesign®, guarantee product safety, environmental compliance, and quality; factors that are increasingly essential for Vietnam’s export-focused textile manufacturers.

Adopting digital textile printing enables Vietnamese manufacturers to reduce waste, lower production costs, and gain greater operational flexibility. The Monna Lisa Series can print across a diverse range of fabrics, from fashion and home textiles to industrial applications, allowing manufacturers to respond quickly to market trends, shorten lead times, and diversify revenue streams in a highly-competitive global market.

A key advantage lies in Epson’s integrated development approach: the printer, PrecisionCore printheads, GENESTA inks, and pre- and post-treatment solutions are designed to work seamlessly together. This optimization ensures consistent quality, reliability, and long-term performance, which are essential for manufacturers supplying discerning international brands.

Innovation in Vietnam’s textile industry must go beyond printing to consider the entire lifecycle of materials. The circular economy is increasingly shaping global practices, driven by brand commitments to reduce waste, extend product lifespans, and enhance textile recycling.

One of the most promising solutions is Epson’s Dry Fiber Technology, which converts used garments and production scraps into reusable fibers that can be transformed into new fabrics. Scaled broadly, this technology addresses two of the sector’s biggest challenges: high water usage and low recycling rates.

Demonstrating its creative potential, Japanese fashion designer Yuima Nakazato incorporated this non-woven recycled fabric into his recent couture collection showcased at Haute Couture Week in Paris. The project highlights how circular materials can achieve both aesthetic excellence and high quality. This collaboration exemplifies how technology can support more sustainable production while preserving creative freedom and premium output, underscoring the growing importance of circularity in the future of textiles.

As Vietnamese textile manufacturers increasingly adopt more sustainable and flexible production methods, technology partners are playing an essential role in supporting this transformation.

“For Vietnam’s textile industry to stay competitive on the global stage, embracing both digitalization and sustainable practices is no longer optional,” said Mr. Nakata Ippei, Director of Epson Vietnam. “Digital on-demand printing enables manufacturers to cut water consumption and reduce waste while responding faster to changing market demands. Our solutions are designed to help Vietnam’s textile sector grow efficiently and sustainably, helping the local textile sector thrive both domestically and internationally.”

Blockchain and digital asset talent in high demand

Sat, 21 Mar 2026 03:00:00 GMT

Training talent will be critical along Vietnam’s journey to becoming a major player in blockchain and digital assets.

With the ambition of becoming a strong country in terms of blockchain, Vietnam is approaching the field with a proactive and decisive mindset. National-level blockchain infrastructure has begun to be built and some was put into pilot operation starting in 2025. A series of major initiatives is being rolled out, including the formation of International Financial Centers and regulatory sandboxes (policy and technology testing environments) in central Da Nang city, with plans to later expand to Ho Chi Minh City.

Notably, the southern city recently established its first venture capital fund, with initial charter capital of VND500 billion ($19.23 million), which is expected to increase to VND5 trillion ($192.31 million) by 2035, or ten-fold the initial level. The fund focuses on emerging technologies such as blockchain, AI, and other high-tech sectors, and is expected to begin official operations in the first quarter of this year. The capital is expected to provide a major boost to the innovation ecosystem, accelerate the development of the blockchain industry.

From observer to participant

Most recently, the Ministry of Finance issued Decision No. 96/QD-BTC, announcing new administrative procedures to pilot the digital asset market. These are highly positive steps, marking Vietnam’s transition from a “gray zone” to a clearer legal framework for blockchain and digital assets.

Mr. Dat Le, Head of Growth at Varmeta, affirmed that Vietnam is no longer at the stage of “standing on the sidelines” and has officially entered the blockchain game with a decisive stance. “Instead of crowding into traditional sectors that are already saturated and fiercely competitive, blockchain is a ‘blue ocean’ - a vast open sea of career opportunities for anyone willing to adapt,” Mr. Dat emphasized.

Meanwhile, Mr. Jeffrey Tchui, Executive Director of US software company Hashgraph - the developer of the Hedera Hashgraph distributed ledger, which provides enterprise-grade blockchain infrastructure for Web3 and digital asset applications - said that based on his experience working in major financial centers such as Dubai, Singapore, and Hong Kong (China), he sees that Vietnam is moving very quickly. “The legalization of digital assets and the piloting of digital asset exchanges will mark a major, structural shift in the market,” he believes.

Successful financial centers such as Hong Kong (China), Singapore, the UAE, and Switzerland all follow one common principle: develop human capital first, then attract capital. “Talent always comes before money,” Mr. Tchui emphasized. “Vietnam’s major advantage is that it is developing later than traditional financial centers, without being constrained by heavy historical legacies. This allows it to rapidly build a modern legal framework and an efficient new financial ecosystem.” He added that Hong Kong (China) took a great deal of time to establish legal clarity, capital market depth, and institutional credibility.

Drawing global attention

Vietnam currently ranks among the countries with the highest rates of digital asset adoption in the world. Many studies, however, show that around 70-80 per cent of retail investors still incur losses due to cryptocurrency scams. This reflects a significant gap in knowledge and risk awareness, an issue not only of the market but also of human capacity and systems.

According to experts, as International Financial Centers open up further and transparent policies move the blockchain and digital asset market “from gray to light,” international companies and organizations are coming to Vietnam in search of both markets and talent. “What we need are not just programmers, but people with strong financial foundations, basic technological literacy, legal awareness, systems thinking, and the ability to understand how technology interacts with economic and social systems, especially an entrepreneurial mindset,” Mr. Tchui said.

He further noted that global platform organizations are not only building financial centers but also providing open source technologies so that high-quality talent in Vietnam can use the best tools to build the next generation of applications. He hopes that Vietnam’s younger generation and students will take greater interest in careers in AI and digital finance, deepen their understanding of national policies related to International Financial Centers, and contribute to domestic development.

Dr. Phan Huu Nghi, Deputy Director of the Institute of Banking and Finance at the National Economics University (NEU), said that, in the near future, when Vietnam establishes digital asset and cryptocurrency exchanges with the participation of banks, securities firms, and technology companies, sectors such as digital banking, digital finance, and fintech will have “tremendous room for growth.” The NEU will soon roll out specialized training programs in fintech and digital assets to provide students with the most solid preparation ahead of shifts in the labor market.

According to Mr. Tchui, blockchain and new technologies will strongly impact many industries, in both positive and negative terms. Large, diversified conglomerates that possess vast amounts of data are likely to benefit the most, as blockchain enables data connectivity, integration with AI, and the creation of entirely new financial applications. From real-world asset tokenization, decentralized lending and borrowing, treasury management using stablecoins, to real-time salary payments, “all of these open up financial models that have never existed before,” he explained.

Conversely, industries and business models built on information monopolies, where value is created through earlier or better access to data than others, will face the risk of being displaced. As such, Mr. Tchui believes the younger generation needs to understand that transparency and data analysis capabilities create far more value than information hoarding. Those who can best extract, analyze, and apply data will be the ones who create the greatest value.

Talent comes first

From the perspective of training and workforce preparation, a key question is what students need to prepare in order to enter the digital asset and blockchain field in the years to come. According to experts, the most important skill is not necessarily programming, but the ability to work effectively with AI.

Ms. Trang Dang, Product Management Director at Varmeta, said that from a career perspective, banking and finance students can participate in blockchain and digital asset projects in many different roles. “The two most important foundations are banking and financial knowledge, and the ability to apply AI with critical thinking,” Ms. Trang said. “With these two elements well prepared, students will have a major advantage when entering the digital asset, blockchain, and new economic model space in the years ahead.”

Students with backgrounds in strategy, markets, business, marketing, engineering, design, and other complementary skills will hold significant advantages in pursuing this path. In practice, even very young, newly-graduated students are already able to participate in building technology companies, developing new products, and pioneering markets.

According to experts, this is a critical moment. In human history, there have been few periods in which breakthrough technologies have emerged with the power to fundamentally transform how people work and organize society as profoundly as today.

Students over the next five years are expected to become a “generalist generation” - individuals who can serve as general managers, product managers, advisors, project-based professionals, and adapt flexibly across many roles. “This creates a huge advantage for today’s students,” Ms. Trang said. “While those who graduated 20 years ago are having to return to school to adapt to a new era, today’s students are at a very special moment, with many opportunities to catch up, or even leap ahead, if they know how to seize them.”

On blockchain and digital assets, Mr. Tchui emphasized that “Vietnam needs talent-first infrastructure.” The success of an economy, he continued, depends on people; it is talent that creates value and ultimately attracts investment capital.

VET-Huyen Thuong

Ajanta Caves - A Masterpiece of Buddhist Painting Carved into 2,000-Year-Old Cliffs

Fri, 20 Mar 2026 09:19:00 GMT

During a tourism familiarization trip to the Indian state of Maharashtra, jointly organized by the Embassy of India in Vietnam and the Directorate of Tourism under the Government of Maharashtra, an international delegation of journalists and travel businesses spent an entire day exploring the Ajanta Caves-an ancient Buddhist cave complex recognized by UNESCO as a World Heritage Site.

More than just an architectural wonder carved into a mountainside over 2,000 years ago, Ajanta is also regarded as a “museum of ancient painting,” preserving invaluable Buddhist murals that reflect the life, beliefs, and artistic achievements of ancient India.

A Buddhist Cave Complex Over Two Millennia Old

The Ajanta Caves are located in the state of Maharashtra, about 100 kilometers from the city of Aurangabad. From a distance, the caves appear almost hidden within the basalt cliffs of the Deccan Plateau, overlooking a horseshoe-shaped gorge carved by the Waghur River.

That morning, the delegation departed early to reach Ajanta under the soft morning light. From the visitor center, access to the caves is carefully managed-vehicles are not allowed beyond a certain point, and visitors continue on foot along a path hugging the hillside, a system designed to minimize environmental impact.

At the first panoramic viewpoint, the entire complex gradually reveals itself: a sweeping arc of cave entrances carved into the cliff face, perfectly echoing the curve of the gorge below. The scene feels less like a man-made monument and more like a natural formation shaped over time.

Rock-cut caves at Ajanta Caves, where temples and monasteries were carved directly into the basalt cliffs more than 2,000 years ago. Photo: Trong Thoan.

The majestic yet tranquil landscape gives many visitors the feeling that they are looking at a creation of nature rather than a monument made by human hands.

Ajanta Caves are among the oldest Buddhist cave complexes in India, comprising around 30 caves hewn directly from basalt rock and dating from the 2nd century BCE to around the 5th century CE.

Researchers believe that Ajanta was built in two main phases. The first began around the 2nd century BCE when the earliest monasteries and prayer halls were created under the patronage of the Satavahana dynasty. Construction then paused for several centuries before entering a second phase in the 5th century during the Vakataka dynasty, when many new caves and the famous murals were completed.

The caves at Ajanta mainly consist of two characteristic types of Buddhist architecture. The first is the vihara, or monastic residence where monks lived and meditated. These caves usually feature a square central hall surrounded by small cells for monks.

The second type is the chaitya, or prayer hall, which contains a stupa at the far end. In these chaitya halls, visitors can walk around the stupa in a ritual known as circumambulation - an important practice in Buddhism.

Ancient craftsmen began carving from the top downward, removing rock layer by layer to create complete architectural spaces-an approach that required extraordinary precision and planning.

An Ancient Art Museum Inside the Mountain

What truly distinguishes Ajanta in the history of world art is not only its architecture but its extraordinary system of murals and relief sculptures.

These paintings, created more than 1,500 years ago, cover walls, ceilings, and pillars, depicting scenes from the Jataka tales-the stories of the Buddha’s previous lives-as well as court life, nature, and daily activities in ancient India. The level of detail, emotional expression, and compositional sophistication continues to impress scholars and visitors alike.

Most of the paintings depict stories from the Jataka tales - legends describing the previous lives of the Buddha. In these stories, the Buddha appears in many forms, from human beings to animals, embodying noble virtues such as compassion, sacrifice, and wisdom.

Ancient painters did more than simply illustrate the narratives; they captured subtle emotions through the characters’ eyes, gestures, and postures. Processions of people, royal palaces, forests, and animals are all rendered with dynamic composition and remarkable detail.

A large reclining Buddha sculpture carved into the rock inside Ajanta Caves, depicting the Buddha entering Parinirvana. Photo: Trong Thoan.

One of the most surprising aspects for visitors is that, despite more than a millennium having passed, many paintings still retain clear colors and lines. Historians believe this demonstrates the highly advanced techniques of ancient Indian craftsmen, from preparing the rock surfaces to mixing pigments.

Among the caves, numbers 1, 2, 16, and 17 are considered to house the most beautiful murals. The paintings here are illuminated only very gently to protect their original colors, giving visitors the feeling of stepping into a mysterious and ancient world.

From a Forgotten Monument to a Famous Tourist Destination - and a Lesson in Heritage Conservation

For the international delegation, exploring Ajanta was not a brief visit but a full-day journey through history. Moving from one cave to another along the cliffside, the experience unfolds gradually, each space revealing a different layer of artistic and spiritual expression.

By the end of the day, what remained was not only admiration for the scale and craftsmanship of the site, but also a sense of quiet reflection. In the dimly lit interiors, where ancient murals have survived for over two millennia, visitors can feel a rare connection to the past-one shaped by faith, artistry, and human perseverance.

From intricately carved pillars to sacred stupas deep within the caves, each space reflects the architectural and spiritual life of ancient Buddhist communities.

Walking along the cliff, visitors can see that each cave features its own architectural and decorative style, reflecting the development of art over several centuries. Many members of the delegation were particularly impressed by how ancient craftsmen combined sculpture and painting within the same space. Stone pillars, ceilings, and walls served both as surfaces for carving statues and as “canvases” for murals. This integration creates a unified artistic composition, making Ajanta not merely an archaeological site but a complete work of art.

After religious activities declined around the late 5th century, Ajanta gradually became overgrown with jungle and was largely forgotten for many centuries. It was not until 1819 that a British officer named John Smith accidentally rediscovered the caves while participating in a tiger hunting expedition in the area. The discovery quickly attracted the attention of archaeologists and European scholars.

Throughout the 19th and early 20th centuries, numerous research and restoration projects were carried out. Scholars reproduced many of the murals for study and preservation purposes.

After India gained independence, the government of Maharashtra continued to invest in infrastructure and heritage management. Ajanta was later recognized as a UNESCO World Heritage Site in 1983. Today, together with Ellora Caves, Ajanta has become one of the most important heritage destinations in Maharashtra, attracting millions of visitors each year.

One issue that particularly interested the international delegation was how India preserves the Ajanta heritage while still developing tourism. Conservation remains a central concern. The preservation of Ajanta is carried out in close coordination with the Archaeological Survey of India (ASI), with strict measures in place, including controlled lighting, humidity regulation, limited visitor capacity, and restrictions on flash photography.

At the same time, authorities have introduced innovative solutions such as life-size replicas of selected caves at the visitor center, allowing tourists to appreciate the artwork without putting additional pressure on the original structures.

After a full day exploring Ajanta, many members of the delegation realized that the value of this cave complex lies not only in its millennia-old age or its rare murals. Ajanta also represents the intersection of art, religion, and nature in the history of India.

Amid basalt cliffs and quiet forests, ancient craftsmen created a world of color and emotion. More than two thousand years later, that world continues to tell the story of human history, faith, and creative talent. For first-time visitors, Ajanta is not just a tourist attraction but a journey back into the past - where every brushstroke and every carved stone bears the imprint of time.

From a monument once lost to time, Ajanta has become one of India’s most significant cultural tourism destinations. Millions of visitors each year not only help preserve its historical and artistic value but also support the development of local tourism and livelihoods.

The story of Ajanta demonstrates how heritage, when carefully preserved and responsibly developed, can become a sustainable driver of economic growth.

For many first-time visitors, it is not just a destination, but a rare encounter with the enduring legacy of Buddhist art and human creativity.

Tác giả-Bùi Trọng Thoan

Decisive shift in export performance

Fri, 20 Mar 2026 04:00:00 GMT

Long an exporting country, Vietnam would benefit greatly from meeting the stringent requirements being set by its trading partners.

Vietnam’s trade picture has recorded remarkable expansion in scale over the past 30 years, with annual import-export turnover rising from a modest $500 million in 1995 to in excess of $930 billion in 2025, for a 180-fold increase. Exports were the main growth engine, with turnover surpassing $470 billion last year, up 16 per cent against 2024.

While cementing its position as a global “bright spot,” Vietnam’s export sector is now facing a new and far more stringent set of rules centered on sustainable development. To preserve its role as a key growth driver, a decisive shift from extensive growth to intensive growth, focusing on value added and technological content, has become an urgent requirement in this new phase.

Growth without depth

Vietnam officially joined the world’s Top 20 economies by trade volume in 2023, with average annual export growth exceeding 10 per cent. Notably, a continual trade surplus since 2016 has served as a solid pillar, helping to strengthen national foreign exchange reserves and maintain macro-economic stability.

Despite these achievements, Mr. Nguyen Anh Son, Director General of the Agency of Foreign Trade at the Ministry of Industry and Trade, cautioned that Vietnam cannot rest on its laurels. “To realize the goal of double-digit economic growth in 2026, import-export growth must outpace overall economic growth, which calls for stronger internal capacity than ever before,” he said.

Behind the “glow” of hundreds of billions of dollars in export revenue lie persistent concerns over sustainability. In reality, Vietnam’s exports still face a number of structural vulnerabilities. Heavy reliance on FDI enterprises remains problematic, while domestic companies have yet to participate deeply in higher value added segments of global value chains. Many industries continue to depend heavily on imported raw materials and components, leaving production and exports highly exposed to external shocks and supply chain disruptions.

Representatives from key industry associations in textiles and garments, footwear, and wooden products have all voiced concern about the “trap” of broad-based growth without sufficient depth.

Ms. Phan Thi Thanh Xuan, Vice Chairwoman and General Secretary of the Vietnam Leather, Footwear and Handbag Association (LEFASO), said candidly that although the sector may reach $28-29 billion in export turnover annually its underlying structure remains heavily processing-oriented. Similarly, Mr. Ngo Sy Hoai, Vice President and Secretary General of the Vietnam Timber and Forest Products Association (VIFOREST), warned of increasingly squeezed profit margins. “We cannot keep charging forward purely in terms of scale,” he explained. “Chasing headline growth figures without depth will ultimately leave businesses struggling.”

The intrinsic capabilities of domestic enterprises still exhibit significant gaps. Weaknesses persist across design, international marketing, and brand building. In many sectors, excessive dependence on imported inputs continues to make production vulnerable to external shocks and supply chain breaks.

Green rules

The world is entering a new era of trade, in which environmental, social, and governance (ESG) standards are no longer optional incentives but mandatory requirements. Concepts such as supply chain “greening,” emission reductions, and traceability are becoming new technical barriers, forcing businesses to adapt immediately or risk being excluded from the market.

Ms. Nguyen Thi Thu Trang, a legal and international economic integration expert, former Director of the WTO and Integration Center at the Vietnam Chamber of Commerce and Industry (VCCI), offered a vivid analogy: before thinking about “eating well and dressing well” by meeting voluntary premium standards, businesses must first “eat their fill and stay warm” by complying with mandatory requirements just to clear customs. The EU, for example, has rolled out the Green Deal, with concrete regulations including the Carbon Border Adjustment Mechanism (CBAM), the EU Deforestation Regulation (EUDR), and the Corporate Sustainability Due Diligence Directive (CSDDD).

The challenges posed by this “green wave” are substantial, requiring fundamental changes to production processes rather than simple end-product quality control. Businesses face financial pressure from environmental taxes and fees, as well as heavy investment costs to ensure supply chain transparency. For example, the coffee sector must trace products back to individual farms, while the livestock industry must comply with EU animal welfare standards - concepts that remain relatively new in Vietnam.

Viewed from a more positive angle, however, meeting the EU’s stringent standards can serve as a “passport” for Vietnamese goods to access virtually all other global markets. Green transformation should not be seen merely as a cost, but as a worthwhile long-term investment that helps optimize processes and improve business efficiency over time.

Growth shift

To escape competition based solely on low prices and raw volumes, building a national brand anchored in credibility and quality is a matter of survival. “The spice industry does not aim to compete on price, but to become a globally trusted destination for quality,” Ms. Hoang Thi Lien, Chairwoman of the Vietnam Pepper and Spice Association (VPSA), emphasized.

Under the Commodity Import-Export Strategy to 2030 approved by Prime Ministerial Decision No. 493/QD-TTg in 2022, the Ministry of Agriculture and Environment has set a target of $100 billion in agriculture, forestry, and fisheries export turnover by 2030. To achieve this goal, experts argue that a fundamental shift in production mindset is required, with greater emphasis on quality rather than quantity.

“Instead of focusing solely on processing, industries need to move towards higher value added models such as FOB (free on board), ODM (original design manufacturing), and OBM (original brand manufacturing),” Ms. Xuan stressed. “Increasing technological content, localization rates, and economic self-reliance is key to reducing dependence on traditional cost advantages that are no longer absolute.”

Mr. Tran Thanh Hai, Deputy Director General of the Agency of Foreign Trade, also underscored the need to shift decisively from extensive growth towards deeper, more efficient, and more sustainable growth - closely tied to higher value added, greater technological content, and higher localization rates amid global volatility and changing trends. Specifically, Vietnam needs to focus on solutions that create new growth drivers, develop core foundational industries with lasting value, and strengthen agricultural products. Securing raw material supplies through enhanced scientific research and technological mastery is essential to increasing domestic value added.

Importantly, the journey towards sustainable exports cannot succeed without the enabling and supportive role of the government. Industry associations have put forward a range of practical recommendations to ease business constraints, including amending the Law on Export and Import Duties to ensure fair treatment between processing enterprises and export manufacturers, and resolving longstanding value added tax (VAT) refund bottlenecks to unlock business cash flows.

At the same time, establishing a regular dialogue mechanism to address gaps between policy design and customs implementation is critical. Regulatory authorities need to accelerate electronic customs clearance, create “green lanes” for raw materials, and roll out targeted support packages for digital transformation and product design. In particular, helping small and medium-sized enterprises access green finance is a crucial link in enabling investment in sustainable raw material zones.

For trade offices and industry associations, the business community is calling for continual updates on policy changes in international markets. Associations must serve as “green hubs,” not only providing information but also offering concrete technical guidance to lead their members along the path towards sustainable exports.

VET-Song Ha