Encouraging overseas Vietnamese experts to return and attracting international professionals is part of a new strategy to facilitate Vietnam’s development.

As global competition over technology and supply chains intensifies, many Asian economies are shifting their focus from attracting capital to attracting people. High-quality human resources are emerging as a decisive factor in long-term competitiveness and are no less important than tax incentives or manufacturing infrastructure. After years of relying on cost advantages and macro-economic stability to attract foreign investment, Vietnam is now looking to add a new pillar to its development strategy: attracting and retaining talent, including overseas Vietnamese experts and highly skilled international professionals.

Party General Secretary To Lam has underscored the need to design special incentive policies, such as salaries beyond standard pay scales, housing, and supportive working environments, to attract “at least 100 top experts to return and work in Vietnam.” He has also called for the development of a comprehensive database of intellectuals at home and abroad, including overseas Vietnamese active in science and technology, to support high-quality workforce policymaking.

Breakthrough incentives

Vietnam’s talent attraction strategy is being gradually institutionalized through national policies, particularly as the country designates certain high-tech industries, including semiconductors, as priority sectors. Under this strategy, Vietnam aims to encourage overseas Vietnamese experts to return and contribute to domestic development.

Mr. Nguyen Anh Tuan from the Department of Information Technology Industry at the Ministry of Science and Technology (MoST) said one of the top priorities of the national strategy is human resources development. The semiconductor development strategy identifies talent as the core factor and Vietnam’s greatest competitive advantage amid increasingly intense global competition.

In this context, the Law on Digital Technology Industry, passed by the National Assembly on June 14, 2025, and effective from January 1, 2026, for the first time introduces a range of breakthrough incentive mechanisms aimed at attracting and retaining talent. These measures particularly target overseas Vietnamese professionals returning to Vietnam to work while also widening access for highly-skilled international workers.

One notable policy, Mr. Tuan added, is the exemption from work permit requirements for high-quality human resources in the digital technology industry, including semiconductors. Previously, such exemptions applied only to special cases such as investors or diplomatic staff, but they have now been expanded to facilitate long-term employment for top experts, including overseas Vietnamese.

Vietnam is also introducing long-term visas of up to five years for high-quality talent, with eligibility extended to spouses and children under 18, whose visas will match the duration of the associated work permit. “This is a significant step forward,” he said. “For the first time, Vietnam is implementing such a broad, long-term visa policy, helping provide stability and peace of mind for experts considering returning to or coming to Vietnam to work.”

Another standout incentive is a five-year personal income tax exemption for high-quality workers in the digital technology industry, particularly semiconductors. This policy is designed to enhance the overall compensation package and strengthen Vietnam’s competitiveness in the regional race for talent.

The Law also allows for more flexible personnel mobility between the public sector and enterprises in digital technology and semiconductors. Under this framework, high-quality professionals can move between government agencies and private companies, enabling the State to attract top experts from the private sector while promoting the transfer of knowledge and experience across sectors.

Beyond central-level policies, local authorities have been granted greater autonomy to design their own resolutions providing additional support for talent, such as financial assistance, working conditions, housing, and transportation. Cities such as Da Nang and Ho Chi Minh City have already begun issuing tailored policies to attract high-quality human resources, helping create favorable ecosystems to draw and retain experts, including overseas Vietnamese scientists and engineers.

Mr. Nguyen Thanh Vinh, a semiconductor expert with more than 40 years of experience at leading US tech companies, said one effective approach would be to invite retired overseas Vietnamese experts to return to Vietnam for three to five years. “They could pass on their knowledge and experience to the younger generation,” he said. “To attract them, however, the government needs to ensure conditions such as housing, healthcare, and a good working environment.”

Encouraging returnees

Vietnam also needs a strategy to send young engineers abroad to study and work to gain experience, “but more importantly, it must have policies to bring them back,” Mr. Vinh stressed. “Overall, the government needs policies that encourage Vietnamese participation throughout the entire pipeline, from training and overseas placement to creating favorable conditions to return and contribute. If 100 engineers are sent abroad, just 10 to 15 returning with practical experience would be enough to lay the foundation for the semiconductor industry. They would become the nucleus for training the next generation. The key is to adopt long-term policies not only to attract them but also to retain them.”

China is often cited as a country that achieved notable success with such an approach, having sent talent abroad in the 1970s and 1980s before later attracting them back through large-scale programs such as the Thousand Talents Plan.

According to Professor Raymond Kai-yu Tong from the Chinese University of Hong Kong, attracting talent should begin by encouraging young people to study abroad to access advanced knowledge, technology, and experience, and then creating conditions for them to return and apply those skills at home.

The next step is to design comprehensive attraction packages, not only for individual experts but also for their families, such as housing support, preferential mortgage programs, and assurances of a high-quality education system so their children can study in Vietnam. “When experts have stable living arrangements and their children can pursue long-term education in Vietnam, they are more likely to develop a strong sense of attachment and remain committed to contributing to national development,” he said.

Creating an open environment

Professor Tong also noted that shifts in global supply chains have prompted many factories and production facilities to relocate from mainland China to Vietnam, creating significant opportunities for the economy. In this context, Vietnam’s increased investment in science and technology is, in his view, the right approach. He recommended that Vietnam remain steadfast in this strategy to better capture new investment waves and gradually build domestic manufacturing networks closely linked to science, technology, and innovation.

Alongside appropriate compensation and flexible policy mechanisms, modern research infrastructure and stable financial resources are seen as critical factors. According to Associate Professor Luu Anh Tuan from Nanyang Technological University in Singapore and Executive Director of the VinUni Center for AI Research in Hanoi, income is not the most important consideration for many scientists. “What matters more is the research environment - an open space with academic freedom that allows experimentation and accepts trial and error,” he explained. “Science does not always deliver results on the first attempt, so there must be room to experiment, accept failure, and learn from it.”

Speaking at a policy workshop on solutions to promote Vietnam’s semiconductor industry, Mr. Nguyen Khac Lich, Director General of the Authority of ICT Industry and Communications at MoST, emphasized the need for more concrete and substantive support policies for high-quality experts. “Local authorities need to be bolder in designing policies and truly know how to value and utilize talent,” he believes. “Valuing talent should not stop at salaries or financial support. More importantly, experts must be entrusted with major challenges - tasks that are significant and demanding enough for them to fully apply their capabilities and remain committed over the long term. Without strategic missions and creative space, even generous compensation will struggle to retain talent.”

He also proposed clearly classifying experts, suggesting that alongside general policies, Vietnam should develop special mechanisms with stronger incentives for a truly elite group - those with outstanding contributions, multiple patents, or leadership roles at major technology corporations - rather than applying uniform policies across all groups.

VET-Huyen Thuong

The project, linking Provincial Road 391 (DT.391) with Provincial Road 390 (DT.390), is also expected to create fresh momentum for the city’s socio-economic development.

The Hai Phong Traffic Construction Investment Project Management Board has been tasked with coordinating with the northern city’s Agriculture and Rural Development Construction Investment Project Management Board to review and finalise the pre-feasibility report for a project linking Provincial Road 391 (DT.391) with Provincial Road 390 (DT.390).

The project aims to gradually complete Ring Road No. 1 in the city’s western urban area in line with the approved master plan, ease congestion on National Highway 5, and enhance connectivity among neighbouring wards and communes as well as the regional road network. It is also expected to create fresh momentum for the city’s socio-economic development.

The planned road will stretch 5.38km and require approximately 24.6 hectares of land in Nam Dong and Ai Quoc wards in western Hai Phong.

The total investment is estimated at more than VND1,000 billion (approximately $38.8 million), sourced from the municipal budget. Implementation is scheduled for 2026–2028.

VnEconomy-Đỗ Hoàng

Vietnamese citizens are advised to avoid unnecessary travel, especially to crowded areas, sensitive events, areas around diplomatic missions, military bases, key installations and major shopping malls during periods of security alerts.

Vietnamese embassies in the Middle East have issued urgent advisory notices for Vietnamese nationals amid rising tensions in the Middle East, according to a report from the Government News.

Specifically, the Vietnamese Embassy in Qatar urged Vietnamese citizens living, studying and working there to remain vigilant, proactively take measures to ensure their personal safety, closely follow instructions from Qatari authorities and monitor further announcements from the embassy.

The embassy advised citizens to avoid unnecessary travel, especially to crowded areas, sensitive events, areas around diplomatic missions, military bases, key installations and major shopping malls during periods of security alerts.

Vietnamese citizens have been advised to  prepare for possible 'shelter-in-place' situations if necessary and identify a safe location, stock up on essential supplies such as drinking water, dry food, personal medication, backup batteries and flashlights, according to the embassy.

They must closely follow updates from Qatari authorities including the Ministry of Interior and local security forces, official media outlets and the embassy's communication channels.

They have also been asked to promptly inform relevant parties of any change of residence or movement away from their registered address while checking, keeping copies of identification documents and recording emergency contact details of employers/sponsors and family members.

In case Qatari authorities issue 'shelter-in-place' guidance or travel restrictions, Vietnamese citizens are urged to strictly comply and avoid going outside until further notice.

For emergency protection and assistance, Vietnamese nationals in Qatar can contact the embassy's citizen protection hotline at +974 77088920 or via email at vietnamembassy.doha@gmail.com.

The same day, the Vietnamese Embassy in the UAE issued a similar advisory notice to Vietnamese nationals living, studying and working in the UAE, particularly in the capital Abu Dhabi, urging them to proactively ensure their safety and closely follow official information from UAE authorities and further updates from the embassy.

The embassy requested citizens to avoid non-essential travel, prepare personal protection plans at safe locations at home or workplaces and closely monitor updates from UAE authorities, official media and the embassy's channels; and keep communication devices operational at all times.

Should UAE authorities issue safety guidance or movement restrictions, the embassy urged citizens to strictly comply until further notice.

For emergency assistance, Vietnamese nationals in the UAE may contact the embassy via the citizen protection hotline at +971 50 129 9789 or email vnemb1@emirates.net.ae@gmail.com.

The embassy's address is Villa 147, Salama Bint Butti Street (Street 23), Al Mushrif Area, Abu Dhabi, UAE.

The embassy also called on the Vietnamese community in the UAE to remain calm, proactively ensure their safety and regularly update themselves on further announcements.

The Vietnamese Embassy in Kuwait also issued similar notice, urging Vietnamese nationals there to follow official Kuwaiti media channels for updates, keep mobile phones operational and maintain contact with family and friends to report their situation and follow the embassy's communication channels for new announcements.

For emergency assistance, Vietnamese nationals can contact the embassy via the citizen protection hotline at +965 9975 8155 or +965 2531 1450.

The Vietnamese Embassy in Saudi Arabia advised Vietnamese citizens living, studying and working in Saudi Arabia, Oman, Bahrain and Yemen to take precautionary measures, including avoiding security-sensitive areas, especially crowded places.

They must regularly update information via reliable official channels, always carry identification documents such as passports, visas and other important papers, keep electronic copies for use when necessary and maintain regular contact with family, colleagues and friends for mutual support in case of emergencies.

In case of emergency, citizens are advised to immediately contact the embassy at +966114547887 or +966 595731500, or via email at vnemb.sa@mofa.gov.vn.

VGP-Pham Long

This marks a major stride in modernizing urban management, enabling the city to maximize the potential of data for informed decision-making and policymaking.

Under a decision signed by Chairman of the Hanoi Municipal People’s Committee Vu Dai Thang on February 26, the capital city's Steering Committee for Data has been established.

The Steering Committee is led by Chairman Vu Dai Thang, with Vice Chairman of the Municipal People’s Committee Truong Viet Dung serving as the Deputy Head, and leaders of various municipal departments, boards, and agencies as members.

This is a significant step aimed at promoting the management and exploitation of data throughout the city.

Its primary goal is to create an effective interdisciplinary coordination mechanism.

The primary mission of the Steering Committee is to advise, coordinate, and support the Municipal People’s Committee in implementing data-related strategies and policies. This includes the development of national and specialized databases, as well as ensuring the efficient integration, synchronization, storage, sharing, and exploitation of data.

Furthermore, the body is responsible for researching and proposing solutions to address issues arising during the implementation of data-related guidelines and strategies.

The Steering Committee will also assist the Municipal People’s Committee in directing departments, agencies, and local authorities (at ward and commune levels) to achieve data-related objectives. It will also coordinate the execution of interdisciplinary programs and projects.

The establishment of this committee is intended not only to improve data management but also to create a synchronized and efficient data system that contributes to Hanoi’s sustainable development. This marks a major stride in modernizing urban management, enabling the city to maximize the potential of data for informed decision-making and policymaking.

Vneconomy-Hạ Chi

The airline is closely monitoring updates from relevant authorities and will notify passengers immediately of any schedule adjustments or itinerary changes that may arise.

Vietnam Airlines’ flights between Vietnam and Europe continue to operate normally despite widespread airspace closures across parts of the Middle East triggered by recent airstrikes targeting Iran, a representative of the national carrier was quoted by  the Vietnam News Agency  as affirming.

 The airline is closely monitoring updates from relevant authorities and will notify passengers immediately of any schedule adjustments or itinerary changes that may arise.

Other Vietnamese carriers, including Vietjet Air, Bamboo Airways, Vietravel Airlines and Sun PhuQuoc Airways, currently do not serve routes to Europe and have no flight paths crossing the airspace of Israel or Iran.

Amid airstrikes targeting capital Tehran and other cities across Iran on February 28, along with retaliatory actions against Israel, a number of Middle Eastern nations tightened aviation activities and announced temporary airspace closures.

VNA-Van Nguyen

Businesses are warned of possible increase in global prices for fuel, crude oil and consumer goods, indirectly affecting Vietnam’s production, import-export activities.

The Ministry of Industry and Trade on March 2 urged associations and businesses operarating in the import-export and logistics sectors to take proactive measures amid escalating tensions in the Middle East that threaten to disrupt transport routes and drive up logistics costs.

The ministry advised businesses to diversify markets and sources of supply, while actively seeking alternative destinations with similar demand structures to minimise the potential impact of disruptions to exports to Israel, Iran and other Middle Eastern markets. Enterprises were also encouraged to develop long-term contingency plans.

During contract negotiations, firms were told to pay close attention to logistics, delivery and insurance clauses. Transport agreements should clearly define force majeure provisions, liability responsibilities and cost-sharing arrangements in the event of unforeseen risks. Adequate insurance coverage is essential to limit potential losses if incidents occur in import markets.

The ministry also called on associations and enterprises to maintain regular communication and coordinate with relevant ministries and agencies to analyse trade data and stay updated on geopolitical developments, freight rates, surcharges and transport costs. This would enable timely and coordinated response measures.

In addition, industry groups and businesses were instructed to establish preventive and adaptive strategies to mitigate risks in international trade and transportation, while preparing rapid response mechanisms to safeguard supply chains.

They were also encouraged to strengthen cooperation with State agencies to identify alternative orders and explore potential substitute markets.

The ministry warned that global prices for fuel, crude oil and consumer goods could rise in the near term, indirectly affecting Vietnam’s production, import-export activities and trade relations with partners in the region.

Higher fuel costs are expected to push up sea freight and air cargo rates, directly impacting shipping routes to the Gulf. Transport through the Strait of Hormuz has reportedly been severely disrupted following airstrikes targeting Iran, heightening concerns over supply chain stability.

VnEconomy-Nguyệt Hà

Vietnam Economic Times / VnEconomy gathered insights from economists and market practitioners on how real-world asset tokenization could evolve in Vietnam, balancing innovation with regulation and investor protection.

Mr. Jack Nguyen, Founder and Managing Partner of BlockBase Ventures

The tokenization of real-world assets should not be viewed merely as a new “digital asset class” but rather as financial infrastructure that enables markets to operate with greater transparency, efficiency, and scalability.

In Vietnam, capital demand for traditional assets such as real estate, infrastructure, energy, manufacturing, and private credit is substantial, while existing capital channels remain limited, particularly for mid-sized and long-term projects. In this context, tokenization, if implemented properly, can help address capital fragmentation and expand access to investors, not only domestically but also internationally. Sectors considered most suitable for early-stage tokenization include income-generating real estate such as industrial parks, logistics, and infrastructure; private credit and supply chain finance, where capital demand is high but efficient funding channels are lacking; and green finance and energy infrastructure, aligned with environmental, social, and governance (ESG) standards and the preferences of international investors.

However, it must be emphasized that tokens do not create new value on their own. They are merely tools for packaging, standardizing, and distributing ownership rights more efficiently. If the underlying assets are of poor quality, the legal framework is unclear, or cash flows are unsustainable, tokenization will not improve value and may even accelerate the spread of risk.

In my view, safe tokenization must prioritize legal standards and asset structuring, rather than technology alone.

First, the underlying assets need to be placed within a transparent legal structure, such as a special purpose vehicle (SPV) - a company established specifically to hold and manage the assets - or licensed trust funds or investment funds. In such cases, tokens represent lawful ownership rights or economic benefits, rather than merely conceptual digital assets.

Second, it is essential to clearly distinguish that tokenization is the digitization of ownership rights and does not equate to unrestricted trading on unregulated secondary markets. The transfer of tokens must still comply with regulations on qualified investor classification, identity verification, anti-money laundering, transaction limits, and disclosure obligations, similar to the standards of traditional financial markets.

Third, blockchain should be used as a record-keeping and reconciliation layer to enhance transparency and reduce operational risk; it cannot replace the role of the law, regulators, or financial intermediaries.

Tokenization can create new opportunities, but it also carries risks related to artificial liquidity and financial leverage. This is a very real concern, especially for developing markets like Vietnam. Tokenization may create a perception of “high liquidity” but, in reality, liquidity is only sustainable when supported by real cash flows and genuine demand.

For investment funds, a tokenization approach must be grounded in traditional risk management thinking. The focus should remain on assessing assets based on cash flows, resilience across cycles, and downside scenarios; tightly controlling financial leverage, especially for assets that are already highly cyclical; and maintaining transparency with investors regarding holding periods, exit possibilities, and liquidity-related risks. For these reasons, over the next three to five years, I do not expect tokenization to experience a widespread boom. Instead, it is likely to develop in a selective and controlled manner, closely tied to regulatory sandboxes and reputable financial institutions.

Mr. Richard D. McClellan, Vice Chairman of the Advisory Council of the Vietnam International Financial Center in Da Nang

Asset tokenization is not a standalone product, but a supporting capability within a broader financial ecosystem. For Da Nang, the value of tokenization lies in its development orientation towards innovation, digital finance, and controlled pilot mechanisms.

If implemented properly, tokenization can improve the efficiency of asset issuance, enhance transparency, and improve liquidity in secondary markets. However, this is only feasible when it is embedded within a credible legal framework, supervisory regime, and market infrastructure. The real opportunity is not in branding Da Nang as a “token hub” but in positioning the city as a place to responsibly pilot new financial models that can later be scaled nationwide if successful.

As to whether asset tokenization can become a strategic competitive advantage for Vietnam’s International Financial Center (IFC), the answer is “yes” but only in a highly selective manner. Tokenization itself is not a competitive advantage; institutional trust is the decisive factor. Tokenization can only differentiate Vietnam if it is integrated early into an IFC framework grounded in clear rules, with transparent principles for investor protection, property rights, and dispute resolution mechanisms. If done well, tokenization can complement traditional finance rather than compete with or replace it. Conversely, if rolled out indiscriminately or without adequate oversight, it risks being perceived as speculative activity rather than a long-term strategy. In this context, the sequencing of implementation matters more than the technology itself.

At the current stage, I believe Vietnam’s priority in asset tokenization should be controlled experimentation - narrow in scope, closely supervised, and with clearly-defined exit criteria. The objective is not speed, but trust: trust from regulators, investors, and international partners that innovation is being pursued cautiously and responsibly.

Within this broader picture, the role of the State should be to “enable with discipline.” This requires establishing clear rules of the game, enforcing them consistently, and allowing the market to innovate within those boundaries. Overly permissive mechanisms can erode trust, while excessively tight regulations may cause capital and innovation to migrate elsewhere. The IFC model is designed precisely to find the balance between these two extremes.

From my experience advising policymakers in many emerging economies, the most important lesson is that tokenization should not be viewed as a shortcut to capital mobilization. Markets allocate trust and capital based on credibility and institutional foundations, not on short-lived novelty. Countries that succeed are those that know how to link technological innovation with a strong legal system, effective supervision, and international standards, even if that means accepting slower progress in the early stages.

Mr. Nguyen Minh Tuan, Head of the Vietnam Digital Asset Investors Community (VIDA)

First, it is important to correctly understand the nature of real-world asset tokenization. At its core, tokenization is the certification of participation or ownership rights in an asset by breaking that asset into smaller units. A familiar example already exists in traditional finance: when investors participate in equity funds, they do not directly hold shares but instead own fund certificates - a form of tokenization that has existed for decades. In this sense, tokenization is essentially the standardization and fragmentation of investment rights, allowing more investors to participate with smaller capital amounts.

What makes tokenization different today is blockchain technology, which enables this process to be faster, cheaper, more efficient, and scalable. Thanks to blockchain, tokenization is no longer limited to equities or corporate bonds, but can be extended to government bonds, real estate, and other real-world assets. Blockchain allows ownership rights to be flexibly divided while supporting transparent, tamper-resistant tracking and verification of asset information. This creates an important opportunity for Vietnam’s financial market to deepen, diversify, and reach a broader investor base.

However, these opportunities come with significant risks and challenges, particularly on the legal side. When assets are fragmented and ownership rights are represented by tokens, critical questions arise: how legal ownership is established, how ownership is transferred, and who is responsible for protecting investors’ interests. A useful comparison is the fund certificate model, where investors own certificates while fund management companies hold the underlying assets. These two layers are clearly separated and protected by law, supported by custodian and supervisory banks that oversee assets and cash flows. Real-world asset tokenization requires a similar legal structure to clearly distinguish between token ownership and ownership of the underlying asset, and to safeguard the rights of token holders.

Globally, real-world asset tokenization is developing rapidly. Blockchain allows assets to be fragmented while remaining transparently controlled on decentralized systems where data is nearly immutable. The growing volume of tokenized assets traded worldwide shows that tokenization is no longer just a technological trend and is becoming a structural component of modern financial markets.

In Vietnam, over the next three years, the development potential for real-world asset tokenization is quite clear. On the legal front, Vietnam has begun to make initial progress, while on the technology side, national-level blockchain platforms are being developed. With appropriate regulatory and supervisory mechanisms, Vietnam can pilot and gradually introduce tokenized asset trading in the years to come.

A key concern for investors is whether tokenization increases the risk of fraud. In reality, investment risk always exists, especially when token ownership and ownership of the underlying asset are separate layers. Without strict oversight, tokens may be issued without being properly backed by real assets. In traditional finance, this risk is mitigated through custodian and supervisory banks that ensure assets and cash flows are properly managed. Tokenized real-world assets require similar custodial and supervisory mechanisms to confirm that assets are securely held and cash flows are properly controlled. Without these safeguards, investor risk is extremely high.

Compared with traditional markets such as land, equities, or bonds, tokenization offers several notable differences. Beyond fragmenting physical assets, blockchain also enables the tokenization of intangible assets such as artworks, intellectual property, and other rights. Tokenized markets operate online, run 24/7, and have lower transaction costs, improving efficiency and liquidity. At the same time, this expanded scope places higher demands on regulation and supervision.

One of Vietnam’s biggest challenges today is that public understanding of tokenization and digital assets remains limited. It is essential to emphasize that financial investment always involves risk and the possibility of capital loss. Therefore, the most important investment every investor must make is an investment in knowledge.

VIDA was established on January 15 to create a platform for connection, knowledge sharing, and the standardization of investor behavior as the market prepares for formal operation. It focuses on three core segments: decentralized finance (DeFi), tokenized real-world assets, and stablecoins.

Ultimately, investors need to clearly understand digital assets, investment products, and the nature of the transactions they participate in. Similar to the stock market, investors who understand businesses and select the right assets during economic growth cycles can benefit. Conversely, treating investment as gambling or acting without sufficient knowledge almost inevitably leads to losses. Strengthening investor education, connecting with international experience, and building a knowledgeable investment community are therefore critical foundations for the sustainable development of Vietnam’s digital asset market and broader financial system.

Mr. Jeffrey Tchui, Executive Director of Web3 Harbour (Hong Kong (China))

Asset tokenization can bring multiple opportunities to Vietnam’s financial market.

First, it can expand access to high-value assets. Tokenizing real estate, infrastructure, or private credit allows investment value to be fractionalized, thereby broadening participation. This is broadly consistent with pilot models I have supported across the Asia-Pacific region, where policymakers place high value on platforms with stable transaction fees, transparent governance, and innovation that does not cause disruption or create conditions for speculation or market manipulation.

Second, tokenization can help create liquidity for structurally-illiquid sectors. Real estate and the small and medium-sized enterprises (SME) sector in Vietnam are consistently “capital-hungry” yet suffer from structural illiquidity. Tokenization can open the door to compliant secondary markets that are regulator-friendly.

Third, it can attract foreign capital through trusted infrastructure. Vietnam’s public sector has repeatedly emphasized the need to build highly-reliable financial services infrastructure. A public network with enterprise-grade governance can meet the expectations of institutional investors while still encouraging open innovation at International Financial Centers.

Fourth, tokenization can enhance operational efficiency and market transparency. Hedera’s consensus services and token services, which are compliant with OFAC (Office of Foreign Assets Control) requirements from the US, enable real-time auditing and immutable data storage. These features align well with the Vietnamese regulator’s approach to supervising tokenized markets without increasing systemic risk.

Fifth, tokenization can open new capital-raising channels for SMEs and green / ESG (environmental, social, and governance) projects. I consistently emphasize the role of tokenization in supporting Vietnam’s sustainable development goals and SME financing needs.

However, it is important to note that in an environment where investor trust remains fragile, asset tokenization can amplify market psychology risks, especially in a market where retail investors are still sensitive to geopolitical factors and are in a relatively early stage of maturity. Tokenization can accelerate both information flows and the spread of sentiment. Without appropriate “safety rails,” several risks may emerge: retail investors may mistake tokenization for “risk-free innovation,” easily follow Key Opinion Leader (KOL)-driven hype or copy trading; complex products may be wrongly sold under the banner of digital transformation; and association with large brands, financial institutions, or banks may lead investors to lower their guard in a market that is not yet fully mature.

In particular, rumors or inconsistent policy changes can trigger “herd” sell-offs. A lack of clarity in regulatory messaging will erode trust. That is why, in my work in Vietnam, I consistently stress that infrastructure and human capital development, along with market education, are critical foundations and cannot lag behind product development.

In my view, tokenization should not be positioned as a “crypto experiment” but as a tool to support capital mobilization for SMEs, State-owned enterprises, and cross-border financing. In addition, tokenization can serve as an investment channel for green projects and infrastructure, combined with new payment methods such as stablecoins or central bank digital currencies. This is how institutional capital can be attracted from international markets. More importantly, tokenization represents a modernization of market infrastructure, enabling more transparent and efficient clearing and settlement processes.

Mr. Tran Dinh Nha, Founder and CEO of Varmeta

Vietnam is a “controlled acceleration” market for real-world asset tokenization. Regulators have clearly demonstrated openness towards tokenization, but only within a framework that is transparent, tightly governed, closely supervised, and clearly separated from the existing core financial infrastructure.

In the short term, the greatest opportunity lies in partnering with domestic issuers and with platforms that are expected to be licensed in the future to design real-world asset products aligned with pilot models. These products should have clearly defined underlying collateral, target foreign investors, and be built to institutional-grade compliance standards. Initial deployment should take place within International Financial Centers and regulatory sandboxes, before being gradually expanded to the domestic market.

From an opportunity perspective, I believe Vietnam is in a favorable position because it is building its tokenization framework from the ground up. This allows the country to avoid fragmentation caused by legacy systems and to design interoperable, data-rich infrastructure from Day 1; something that many developed markets are currently struggling to achieve.

This advantage enables Vietnam to integrate leverage visibility directly into the infrastructure itself, such as requiring on-chain registration of collateral assets, standardizing reporting of related obligations, and allowing regulators to access real-time supervisory data from intermediaries.

By positioning International Financial Centers as strategic sandboxes and, in the early stages, limiting real-world asset products to foreign investors under strict regulations, Vietnam can test and refine institutional-grade structures without exposing domestic retail investors to the risks of “first versions.” We are ready to accompany this process by designing products that meet global investor expectations while remaining fully aligned with Vietnam’s regulatory conditions.

We do not view tokenization merely as a feature or a technical wrapper. At Varmeta, we see it as a new foundational infrastructure for financial markets, a “pipeline layer” capable of supporting the entire value chain, from primary issuance and secondary trading to collateral management, reporting, and supervision.

If tokenization was to be viewed only as a technological innovation, the discussion would center on digitizing ownership rights, using smart contracts, and improving settlement and reconciliation. But if it was to be understood as a restructuring of market infrastructure, the focus would shift to deeper questions: how assets can be issued, held, and transferred faster and at lower cost; how rights and obligations can be enforced with higher levels of control and security; how regulators can observe and supervise risks in real time to protect investors through prevention rather than post-incident remediation; and how investors can access better products with higher liquidity, 24/7 availability, and fewer intermediaries.

VET-

The fair expected to attract 650 enterprises from Vietnam and 18 countries and territories across the globe.

The 17th Vietnam International Furniture and Home Accessories Fair (VIFA Expo 2026) is scheduled to take place in Ho Chi Minh City from March 8 to 11, organisers announced at a press briefing on February 27.

Nearly 650 enterprises from 14 provinces and cities across Viet Nam, and from 18 countries and territories globally, have registered to participate. Exhibitors will showcase their products across 2,500 booths spanning a total exhibition area of 45,000 square metres.

More than 3,000 importers and buyers from 80 countries have confirmed their attendance, said Mr. Dang Quoc Hung, General Director of Alliance Handicraft Wooden Fine Art Corporation (Liên Minh Company), one of the event’s organisers, as quoted by the Vietnam News Agency.

Organisers are placing special emphasis on attracting buyers from non-traditional markets, including the Middle East, India, China, South America and Africa, in a bid to help Vietnamese enterprises diversify export destinations and expand their global footprint.

In addition to product displays, the fair will feature industry seminars, factory tours, a business luncheon and the VIFA Expo Online Exhibition platform. These activities aim to provide participants with updated market insights, facilitate networking and enhance trade promotion effectiveness.

VNA-Van Nguyen

The SP Global Vietnam Manufacturing Purchasing Managers' Index (PMI) rose to 54.3 in February, up from 52.5 in January.

The Vietnamese manufacturing sector saw improved growth momentum during February, according to a report released by SP Global on the morning of March 2.

Production increased at the fastest pace in over a year-and a-half amid a sharper increase in new orders. Stronger rises in both employment and purchasing activity were also recorded, while business confidence hit a 41-month high.

Improved demand for inputs led suppliers to hike their charges, resulting in a sharp increase in manufacturers' input costs. In turn, selling price inflation remained marked. Meanwhile, suppliers' delivery times lengthened amid some reports of customs delays for imported items.

The SP Global Vietnam Manufacturing Purchasing Managers' Index (PMI) rose to 54.3 in February, up from 52.5 in January and reaching a four-month high.

The PMI signalled a solid monthly improvement in the health of the sector, extending the current sequence of strengthening business conditions to eight months. Manufacturing production increased rapidly in February, with the rate of expansion quickening to a 19-month high. Panellists reported that the preparation of products ahead of delivery to clients and stronger customer demand were behind the latest rise in output.

VnEconomy-Huyền Vy

The country aiming for a two-notch upgrade to Baa3 on the Moody’s Ratings scale.

Vietnam is stepping up efforts to improve its national credit rating, aiming for a two-notch upgrade to Baa3 on the Moody’s Rating scale, Minister of Finance Nguyen Van Thang has said.

Speaking at a recent working session with Moody’s Ratings President Michael West, Minister Thang noted that the Vietnamese Government issued a decree on credit rating services in 2024. To date, five enterprises have been licensed to operate in this field.

The minister was quoted by the Government News as saying that the Finance Ministry is strongly promoting the role of fiscal policy, particularly through the development of the capital market, including both the stock and bond segments.

Regulations governing corporate bond issuance — covering public offerings and private placements — are being refined in line with international practices. The changes are intended to create favourable conditions for financially sound enterprises with viable projects to mobilise medium- and long-term capital.

Regarding the stock market, Mr. Thang highlighted that in September 2025, FTSE Russell upgraded Vietnam's stock market from a frontier market to Secondary Emerging Market status, to be effective on September 21, 2026.

Market capitalisation is projected to reach at least 100% of GDP this year. In the first two months alone, total market capitalisation rose by nearly 5%, reaching more than 84% of GDP — a sign of positive momentum, he said.

For his part, Mr. West expressed confidence in Vietnam’s long-term growth prospects, citing its strong GDP growth, solid external position, export competitiveness and stable foreign direct investment inflows.

Members of the Moody’s delegation also acknowledged the country’s ample fiscal space, sound debt repayment capacity and the Government’s robust reform agenda. These reforms, they noted, are expected to enhance institutional quality and strengthen the foundations of Vietnam’s credit profile.

Moody’s committed to continuing its support for the development of Vietnam’s domestic capital and debt markets. The agency will assist in refining infrastructure bond rating methodologies, building a Second Party Opinion (SPO) framework for sustainable bonds in line with the country’s green taxonomy and international standards, and expanding training programs, workshops and the sharing of global best practices.

VGP-Van Nguyen

According to the plan, VND583.7 trillion will be borrowed for central budget to cover deficits, and over VND376 trillion for repayment of debts.

The Government will  borrow nearly VND969.8 trillion  ($38.5 billion) in 2026, according to its latest debt plan unveiled on February 28.

The figure includes VND583.7 trillion for central budget to cover deficits, and over VND376 trillion for repayment of debts.

The Government was quoted by the Government News as saying that it will mobilize the funding through issuance of Government bonds, international bonds, official development assistance and concessional loans, and other lawful resources.

Meanwhile, local governments shall be allowed to borrow more than VND26 trillion and use nearly  VND4  trillion to repay their debts this year.

The Government requests ministries, agencies and localities to speed up disbursement of public investment capital in a bid to raise the efficiency of State funding.

It also urges the Ministry of Finance to strictly control budget overspending at both central and local levels, formulate a project for issuance of international bonds and submit to competent authorities for consideration.

Public debt is forecast to reach 36-37 per cent of GDP by the end of 2026, while government debt will stand at 34-35 per cent of GDP and foreign debt is expected at 32-33 per cent of GDP.

VGP-Pham Long

The move is seen as a strategic step toward gradually replacing fossil fuels, strengthening energy security, and delivering on Vietnam’s commitment to achieve net-zero emissions by 2050.

Prime Minister Pham Minh Chinh has called for accelerating production, distribution and use of biofuels in a Directive issued on February 26.

The move is seen as a strategic step toward gradually replacing fossil fuels, strengthening energy security, and delivering on Vietnam’s commitment to achieve net-zero emissions by 2050.

The Government leader requested heads of relevant ministries, agencies and local authorities to promptly integrate targets for promoting biofuel consumption into upcoming sectoral strategies, master plans, projects and legal documents.

They were also tasked with reviewing and assessing the potential and effectiveness of emerging sectors related to biofuel development, production and consumption, while accelerating the rollout of programs, projects and pilot models linked to biofuels—particularly in transport, industry and agriculture.

The Prime Minister assigned the Ministry of Industry and Trade to take the lead, in coordination with other ministries and localities, in formulating a detailed roadmap for biofuel blending ratios with conventional fuels. The ministry is responsible for ensuring a stable supply of bio-petrol to meet domestic demand, encouraging enterprises to invest in infrastructure for biofuel production and distribution, and strengthening inspection and supervision in line with regulations.

It was also directed to promote domestic biofuel production to gradually secure self-reliance in the supply of E100.

In addition, the ministry must closely monitor domestic and international markets, analyse and forecast biofuel supply and demand trends to ensure stable provision and timely responses to consumption needs. Contingency plans are to be developed to address potential market fluctuations and minimise risks for consumers and businesses.

VnEconomy-Vũ Khuê

Wood and wooden product exports are rising substantially but Vietnam will need to fully address the myriad trade and other barriers in place.

Data from Vietnam Customs show that Vietnam’s exports of wood and wooden products in 2025 reached $18.5 billion, up 6.6 per cent year-on-year, marking the first year the industry surpassed $17 billion in exports and pushing its trade surplus to nearly $14.9 billion.

Major milestone

Wooden furniture exports totaled $10.25 billion, accounting for nearly 60 per cent of the industry’s total export value and continuing to serve as the main export pillar.

Several other product categories also posted export revenue of $1 billion or more, including wood chips, with $2.42 billion; timber, boards, and flooring $2.2 billion; and wooden pellets $1.18 billion.

In terms of markets, the US remained the largest export destination, with shipments valued at $9.46 billion, up 4.4 per cent year-on-year and accounting for 55 per cent of the industry’s total export turnover.

Despite facing reciprocal tariff pressure since the third quarter of 2025 and a 25 per cent duty imposed on kitchen cabinets and upholstered furniture from October, Vietnamese enterprises maintained their position as the largest furniture suppliers to the US market. This underscores the industry’s efforts to weather strong headwinds.

One notable bright spot was Japan, which recorded impressive growth of more than 23 per cent, reaching $2.153 billion and becoming Vietnam’s second-largest export market. China ranked third, with $2.086 billion.

As a result, the three “billion-dollar” markets - the US, Japan, and China - accounted for nearly 80 per cent of Vietnam’s total exports of wood and wooden products in 2025. Other markets were significantly smaller, including South Korea, with $709 million, Canada $288 million, and the UK $244 million.

Supply chain transparency

Vietnam’s exports of wood and wooden products to the US in recent years have not only been subject to reciprocal tariffs but have also faced a series of anti-dumping and countervailing duties as well as national security investigations under Section 232 of the US Trade Expansion Act. These measures currently focus on plywood and furniture and could extend to other products if Vietnam fails to demonstrate the legality and transparency of its timber sources.

The main reason many markets have erected “barriers” against Vietnamese wooden products lies in concerns over dumping, tariff circumvention, and a lack of transparency in supply chains. In this context, traceability and the legal management of forest resources have become mandatory requirements for maintaining and expanding export markets.

Under mounting pressure, the Ministry of Agriculture and Environment is studying the development of a coding system for the nationwide plantation forest area, scheduled for implementation from 2026. Deputy Minister of Agriculture and Environment Nguyen Quoc Tri said the system would provide a basis for proving the legality of raw timber and enhance the forestry sector’s management capacity.

Alongside policy efforts, digital technologies are also being applied to support timber traceability. The WoodID application can currently identify more than 260 wood species with a high degree of accuracy, helping officials and businesses with inspections and declarations.

Commenting on the policy, a representative from the World Wide Fund for Nature (WWF) Vietnam noted that once the system operates in a synchronized manner, Vietnam will be able to clearly demonstrate the legal origin of its timber, thereby increasing its access to high-end markets.

Ms. Ashley Amidon, Executive Director of the International Wood Products Association (IWPA), said that while US consumers primarily focus on price, regulators place particular emphasis on timber origin and material transparency. Vietnam’s large trade surplus in the wood sector has prompted the US to step up investigations under various mechanisms.

She added that building a plantation forest coding system and enhancing supply chain transparency would not only help Vietnam’s wood industry overcome current trade barriers but also prepare it to meet new regulations such as the EU Deforestation Regulation (EUDR) and to effectively implement agreements including the Voluntary Partnership Agreement (VPA) with the EU and timber cooperation arrangements with the US.

Three strategic directions

According to Mr. Nguyen Quoc Khanh, Chairman of the Vietnam Timber and Forest Product Association (VIFOREST) for the 2025-2030 period and Chairman of the Board of the AA Architecture Construction JSC, over the past two decades, starting almost from zero, Vietnam’s wood industry has authored a proud story on the global export map. This achievement is the result of a sustainable forestry governance foundation built by the government, supported by international organizations, and driven by more than 6,000 enterprises nationwide that have worked tirelessly to build and grow the industry.

Today, Vietnam’s wood sector stands at a new stage, one of major challenges but also of significant opportunities if they are seized effectively. According to Mr. Khanh, Vietnamese enterprises are currently facing three major challenges.

First, market instability. The US, the industry’s key, traditional market, is applying inconsistent tariff policies, while the EU market continues to struggle with economic slowdown. Japan and South Korea remain relatively stable, but their scale is still limited and insufficient to offset declines in traditional markets. Meanwhile, emerging markets such as the Middle East, Australia, New Zealand, Latin America, Southeast Asia, and Africa offer new opportunities but also pose risks related to payments, logistics, and legal frameworks.

Second, competitive pressure from foreign-invested enterprises. These players enjoy significant advantages in technology, capital, management capability, and long-established international market networks, creating an urgent need for Vietnamese enterprises to accelerate improvements in productivity, quality, and governance.

Third, internal constraints. The prevailing development model remains heavily reliant on processing, as Original Equipment Manufacturers (OEM), with low productivity due to limited RD and insufficient investment in technological innovation. Products, markets, and segments also lack diversification, while labor attraction is declining compared to other industries as the country enters a new growth phase.

In light of these challenges, Mr. Khanh said it is time for the wood industry to build a new internal foundation: green production, modern technology, advanced governance, and high productivity.

To achieve the $25 billion export target by 2030, the industry as a whole, and the Association in particular, need to focus on three clear directions.

First, enhancing competitiveness through a tightly linked ecosystem. This includes building a complete, strong, and self-reliant supply chain; improving production capacity; providing systematic training; updating international information; investing heavily in technological innovation and green production; and strengthening links between domestic and international associations.

Second, building a national Vietnamese wood furniture brand based on four pillars: green, quality, flexibility, and competitiveness. Specifically, the industry needs a transparent, inclusive, and internationally-standardized data system, and broader adoption of global standards.

Third, diversifying markets, products, and distribution channels while gaining deeper control of market opportunities. Vietnamese enterprises need a greater presence at major trade fairs, deeper connections with domestic and international partners, and the more effective use of Vietnam’s overseas trade offices. Domestically, specialized trade fairs should be upgraded to position Vietnam as a global destination for international buyers.

VET-Chu Khoi

The target is part of 2026 action plan signed by Prime Minister Pham Minh Chinh.

Vietnam has set a target to increase the contribution of science and technology, innovation and digital transformation to the national GDP to 17.5% as part of a 2026 action plan signed by Prime Minister Pham Minh Chinh, head of the Government Steering Committee on science and technology development, innovation, digital transformation and Project 06.

The plan also targets the digital economy’s share of GDP at 14.5% in 2026.

In terms of digital infrastructure and data platforms, 5G coverage is expected to reach 70% of the population nationwide.

The Government aims to increase by 30% the number of innovative startups operating in science and technology, innovation and digital transformation.

At least 30–50 new spin-off enterprises are expected to be established from university and research institute outcomes in 2026, with Hanoi accounting for at least 20 of them.

In the field of science, technology and innovation, the Government aims to successfully commercialize at least five products listed in the national portfolio of strategic technologies, including semiconductor chips, 5G network equipment, industrial robots, artificial intelligence and unmanned aerial vehicles (UAVs).

At least 15% of state budget expenditure for science will be allocated to research and development of strategic technologies.

VnEconomy-Hạ Chi

By 2050, the central province envisions becoming a dynamic and sustainable economy primarily driven by industry and services.

The 8th Quang Tri Provincial People's Council (2021-2026 term) recently passed a Resolution on adjusting the Provincial Master Plan for the 2021-2030 period, with a vision toward 2050.

Under the approved plan, by 2030, Quang Tri strives for rapid and sustainable development, building a dynamic economy alongside a safe, civilized, and happy living environment. The province aims to gradually assert its role as a key growth pole on the East-West Economic Corridor and within the Central region, contributing significantly to national development.

By 2050, the province envisions becoming a dynamic and sustainable economy primarily driven by industry and services. It aims to emerge as a new growth pole for the North Central region and one of the nation’s specialized hubs for energy, logistics, and tourism.

A key highlight of the plan is the orientation of spatial development toward a multi-centric model with close regional connectivity. Specifically, the province identifies three main economic corridors:

First, the North-South Economic Corridor is linked to the North-South Expressway, National Highway 1A, coastal roads, and the national railway, this will serve as the central driving axis.

Second, the Auxiliary Western North-South Economic Corridor is linked to the Ho Chi Minh Highway (West branch), focusing on the forest economy and renewable energy while ensuring national defense and security.

Third,  the Trans-Asian East-West Economic Corridor features the Dong Ha – Lao Bao, Cha Lo, and La Lay – My Thuy axes. This corridor is designed to boost logistics, cargo transit, and international integration.

In tandem with these corridors, seven growth poles have been identified: Hon La – Ba Don – Quang Trach; Dong Hoi – Hoan Lao; Dong Ha – Quang Tri – Cam Lo; the Southeast Economic Zone; the Cha Lo International Border Gate Economic Zone; the Lao Bao International Border Gate Economic Zone; and the La Lay International Border Gate.

These growth poles will serve as the nuclei for economic, urban, and commercial development. They are expected to ensure a balanced distribution of development drivers across the North-South, coastal-mountainous, and urban-rural regions.

Vneconomy-Nguyễn Thuấn

The northern province prioritizes attracting high-tech and environmentally friendly projects that offer high added value, strong spillover effects, and the potential to establish new manufacturing ecosystems.

Yadea Vietnam Science and Technology Co., Ltd., a subsidiary of the China-based YADEA Group, officially inaugurated its smart electric motorcycle manufacturing plant at Tan Hung Industrial Park in northern Vietnam's Bac Ninh Province on March 1.

The facility represents a phase 1 investment of over $100 million, with an initial production capacity of more than 1 million electric motorcycles per year, which is slated to scale up to approximately 2 million units annually. 

Speaking at the event, Standing Vice Chairman of the Provincial People’s Committee, Mr. Mai Son, said that once the project is fully operational, it will not only contribute significantly to the provincial budget but also drive the formation of an electric vehicle (EV) industrial cluster and supporting industries, such as batteries, motors, and electronic components.

According to Mr. Son, Bac Ninh has identified modern, green, and sustainable industrial development as a core pillar of its long-term growth strategy. The province prioritizes attracting high-tech and environmentally friendly projects that offer high added value, strong spillover effects, and the potential to establish new manufacturing ecosystems.

Furthermore, Mr. Son expressed his hope that YADEA would continue to view Bac Ninh as a strategic hub within its global value chain. He encouraged the company to ramp up investment in research and development (RD), strengthen partnerships with domestic enterprises, gradually increase the localization rate, and build a comprehensive EV manufacturing ecosystem with international competitiveness.

Vneconomy-Nam Anh

Airlines must proactively assess potential risks and the level of impact on international routes, especially the Europe-Asia corridors.

The Civil Aviation Authority of Vietnam (CAAV) on March 1 issued an urgent official dispatch to domestic and foreign airlines operating in Vietnam, the Vietnam Air Traffic Management Corporation (VATM), the Airports Corporation of Vietnam (ACV), international airports, and relevant agencies regarding the implementation of safety measures in response to escalating tensions in the Middle East.

The VATM has been directed to proactively develop air traffic control solutions, particularly for flights requiring schedule adjustments due to the conflict. It is responsible for providing accurate and timely information to airlines and relevant units to ensure safe flight operations.

The CAAV requested both domestic and foreign airlines with routes to, from, or through the affected regions to closely monitor and stay updated on the military conflict in the Middle East, with a specific focus on Iran and countries that have closed their airspace.

Airlines must proactively assess potential risks and the level of impact on international routes, especially the Europe-Asia corridors. At the same time, they are required to fully update safety warnings and information from international aviation authorities, as well as from IATA, ICAO, EASA, and other official sources.

Based on these assessments, carriers are expected to promptly adjust their operating plans and flight schemes, selecting safe alternative air routes to avoid closed or high-risk airspace and ensuring that aircraft do not transit through conflict zones.

The CAAV has also instructed airlines to provide prompt and comprehensive information to passengers regarding flight schedule changes caused by the military conflict. Carriers are required to strictly fulfill their legal obligations to passengers, providing support, updated flight schedules, and clear explanations to minimize inconvenience. Furthermore, airlines operating to and from Vietnam must report to and coordinate closely with the CAAV when adjusting their operational plans.

Currently, Vietnamese airlines do not operate direct routes to Iran or other Middle Eastern countries. While Vietnam Airlines operates several flights between Vietnam and Europe, the national carrier stated that these routes remain well away from the conflict zones. 

A number of international carriers, such as Emirates and Qatar Airways, have to cancel flights from Vietnam to the Middle East. According to the CAAV, due to the impact of the military conflict and resulting airspace closures, two aircraft—one from Qatar Airways (QR) and one from Emirates (EK)—are currently grounded at Noi Bai International Airport, unable to return to their home bases.

Vneconomy-Thanh Thủy

Vietnam’s textile and garment industry continues to be impacted by a changing global trade environment that presents a host of challenges.

Speaking at the “Strategies for Developing Vietnam’s Textile and Garment Industry in a Fluctuating Environment” seminar, held recently, Mr. Vu Duc Giang, Chairman of the Vietnam Textile Apparel Association (VITAS), said 2025 marked a pivotal phase in the industry’s global economic integration, as its position and stature become more firmly established. Export turnover reached $46 billion, up an impressive 5 per cent against 2024 and reinforcing Vietnam’s place among the world’s Top 3 textile and garment exporters.

Challenges on all fronts

As the industry moves into 2026, Vietnam’s textile and garment sector faces not isolated difficulties but an interconnected ecosystem of challenges. According to Mr. Giang, the industry is being heavily affected by global economic uncertainty, rising trade protectionism, and increasingly-strict technical barriers from major markets such as the US and the EU. Requirements related to environmental protection, labor standards, and especially traceability are no longer recommendations but prerequisites for Vietnamese products to reach global retail shelves.

One of the most deep-rooted challenges lies in the “health” of domestic enterprises. Ms. Nguyen Hong Ha, Program Manager at Better Work Vietnam (BWV), noted that around 90 per cent of companies in the sector are micro, small, and medium-sized enterprises (MSMEs). With limited financial resources and poor risk management capabilities, this cohort has become the most vulnerable link in the supply chain as it confronts a “dual transition”: digitalization to boost productivity, and greening to meet sustainability standards. Rising logistics costs and compliance expenses related to green standards are forcing businesses to be cautious in their use of financial leverage and to prioritize long-term stability over short-term, rapid growth.

Human resources have also emerged as a critical bottleneck. Vietnam’s textile and garment workforce is aging, while attracting younger workers is becoming increasingly difficult. More concerning, around 80 per cent of current jobs remain low-skilled, and workers’ skill levels have seen little meaningful improvement since 2012. As competitiveness based on cheap labor fades, it is being replaced by demands for resilience and reliability in labor relations.

In addition, the sector faces significant challenges in implementing green commitments. Ms. Nguyen Thi Ngoc Minh, Lean Manager at Hanesbrands, said that while brands have made strong sustainability pledges, the journey from commitment to actual implementation at the factory level remains long and complex. Emission reduction solutions require substantial investment in green technologies and renewable energy, placing direct pressure on price competitiveness.

From a policy perspective, Dr. Tran Cong Chinh from the University of Economics Business at the Vietnam National University, Hanoi (VNU-UEB), highlighted barriers relating to recycling permits. Many companies wish to reuse wastewater but are constrained by regulations, as permits are tied to industrial parks. If an industrial park lacks this function, its member enterprises are also prohibited from implementing circular water treatment solutions.

Dual roadmap

Amid mounting pressure, digital transformation and the application of science and technology are widely seen as the keys to helping the textile and garment industry escape the “low-cost trap” and move up the value chain.

H.E. Kees van Baar, Ambassador of the Netherlands to Vietnam, emphasized the role of international cooperation in advancing sustainable transformation, recommending that the industry continue to accelerate technological innovation, supply chain transparency, and compliance with new European market standards. “Technology adoption in textiles should not be narrowly understood as replacing humans with robots, but rather as people leveraging AI to work smarter and make more accurate, data-driven decisions,” he said.

Mr. Jatin Paul, CEO of World Fashion Exchange, said that instead of spending hours or days manually entering hundreds of pages of data on designs and measurements, AI can read and process them in seconds. Notably, AI can also function as a living “knowledge library,” preserving a company’s production know-how even amid high workforce turnover, ensuring business continuity and smooth knowledge transfer. This is a crucial solution for helping enterprises respond more rapidly to the constantly changing demands of international brands.

Alongside digitalization, “greening” has become a matter of survival. Vietnam has set a net-zero target for 2050, and the textile and garment industry must be among the pioneers. Implementing green solutions cannot stop at audit reports but must penetrate actual production processes, including investments in renewable energy and advanced waste treatment technologies.

The circular economy model, built on five pillars - sustainable design, green production, waste management, product life extension, and supply chain management - is being actively promoted by organizations such as IDH. At model industrial parks like Bao Minh in northern Ninh Binh province, the application of Phase 2 wastewater treatment technology has reduced sludge by up to 55 per cent and chemical use by 35 per cent. This demonstrates that with the right vision and investment, technology can fundamentally address environmental challenges, transforming “waste” into “resources” through industrial symbiosis.

Mr. Wu Liang Jie, Chairman of Hikari Precise Machinery, said modernizing equipment and adopting smart sewing machines are critical solutions to boost productivity, cut costs, and improve product quality, enabling Vietnamese enterprises to better meet international brand requirements.

Unlocking breakthrough policies

To achieve the export target of $64.5 billion by 2030, equivalent to annual growth of 6.5-7 per cent, enterprise efforts alone will not suffice. A policy framework that is both enabling and grounded in reality is essential.

One of the most positive developments for the industry, according to Dr. Chinh, is the National Assembly’s passage of the amended Law on Value Added Tax, effective January 1, 2026. Under the new law, enterprises purchasing agricultural products such as cotton fiber and pandan leaves will no longer be required to declare the 5 per cent VAT previously applied, directly reducing input costs and encouraging the use of domestically-sourced organic materials. In addition, the removal of overly stringent VAT refund regulations is expected to free up significant financial resources for businesses.

However, Dr. Chinh argued that the concepts of waste and reusable materials need to be redefined. Currently, many types of fabric scraps are still classified as waste requiring disposal rather than as inputs for other industries. Regulations on recycling permits within industrial parks should also be relaxed to allow factories to implement circular water treatment without being constrained by outdated infrastructure rules.

Another key recommendation, put forward by Ms. Nguyen Thi Minh Thuy, Senior Program Manager at IDH, is the development of a sector-specific circular economy roadmap with clear guidance by industry level. At present, many enterprises, especially small ones, feel overwhelmed by the lack of a clear action framework. Establishing international standards and developing eco-labels for Vietnamese textile and garment products would serve as a powerful lever for enterprises to fully capitalize on free trade agreements. In parallel, public-private partnership (PPP) models should be strengthened to share the financial burden of investing in green technologies, where payback periods are often very long.

According to Ms. Thuy, the voices of enterprises need to be more substantively heard during the legislative process. VITAS should continue to persistently advocate for reforms related to the Law on Social Insurance, trade union fees, and administrative procedures, to improve the business environment.

VET-Vu Khue

The Prime Minister noted that law-making must ensure the "5 Easies": easy to understand, easy to access, easy to implement, easy to inspect, and easy to supervise.

Prime Minister Pham Minh Chinh has called for a continued review and maximum reduction of administrative procedures to minimize inconvenience and compliance costs for citizens and businesses.

He made the statement while chairing the Government’s thematic meeting on law-making for February 2026 on February 27. The session was held to review and discuss five important draft laws and resolutions.

The five projects include: the draft Capital Law (amended); the draft Law on Civil Status (amended); the draft Law on Belief and Religion; the draft Law amending and supplementing several articles of the Law on Representative Missions of the Socialist Republic of Vietnam Abroad; and a draft Resolution of the National Assembly on coordination mechanisms and specific policies to improve the efficiency of prevention and resolution of international investment disputes.

In his opening remarks, the PM affirmed that institutions are both a driving force and a resource for development. He emphasized that institutions must "lead the way" to remove bottlenecks and address issues arising from practical realities. The resolutions of recent Party congresses have consistently identified building and perfecting institutions as one of the three strategic breakthroughs for rapid and sustainable national development.

Over the past period, the Government and the Prime Minister have placed a high priority on law-making, allocating resources and focusing leadership on resolving mechanism and policy hurdles to create favorable conditions for the public and businesses while promoting socio-economic growth.

PM Chinh noted that since the beginning of the current term, the Government has organized 41 thematic meetings on law-making. It has reviewed and commented on over 215 draft laws, ordinances, resolutions, and policy dossiers, and submitted 179 documents to the National Assembly for promulgation—more than double the amount during the 14th National Assembly's term. In 2025 alone, many legal "bottlenecks" were essentially cleared in the spirit of the Politburo's Resolution 66.

Concluding the meeting, the Prime Minister emphasized the requirement to continue streamlining administrative procedures. According to the Government leader, laws should only regulate fundamental principles; specific and detailed contents should be delegated to government decrees and ministerial circulars to ensure flexibility and adaptability to practical situations.

The Prime Minister noted that law-making must ensure the "5 Easies": easy to understand, easy to access, easy to implement, easy to inspect, and easy to supervise. Matters that are clear and proven effective by practice should be codified into law. For issues that are not yet "ripe" or clear, he suggested conducting pilot programs to learn and improve gradually, avoiding both perfectionism and haste.

The Government also requested drafting agencies to fully incorporate feedback from Government members, while seeking further input from experts, scientists, practitioners, and those directly affected by the laws. They should also reference international experiences suitable for Vietnam's specific conditions to finalize the drafts for submission to competent authorities.

According to the plan, at the first session of the 16th National Assembly, the Government expects to submit 34 sets of documents and dossiers, including 15 draft laws and resolutions covering difficult and complex issues with a broad impact on socio-economic life.

Vneconomy-Dũng Hiếu

During the latest round, negotiators focused on flexibly addressing remaining differences.

The 19th round of negotiations for a free trade agreement (FTA) between Vietnam and the European Free Trade Association (EFTA), which groups Switzerland, Norway, Iceland and Liechtenstein,  took place in Geneva, from February 24 to 27, generating positive momentum as both sides demonstrate strong  determination to reach a trade deal as soon as possible, according to a report by the Government News.

During the latest round, negotiators focused on resolving key outstanding issues. Both sides noted substantial progress in core chapters, including trade in goods and services, investment, intellectual property, sustainable development and government procurement.

In a bid to expedite the process, the two sides agreed not to introduce new matters into the  negotiations and instead concentrate on flexibly addressing remaining differences. Technical teams are stepping  up legal reviews and completing necessary procedures, aiming to conclude negotiations and possibly sign the agreement at the upcoming EFTA Ministerial Conference scheduled to take place in Iceland this June.

The EFTA side commended Vietnam's active engagement and its proposals on market access, while reiterating the bloc's strengths in fostering private sector investment and facilitating technology transfer.

Once finalized and signed, the Vietnam–EFTA FTA is expected to significantly enhance bilateral trade and investment flows, broaden cooperation with some of Europe's most advanced economies and make a meaningful contribution to resilient supply chains and sustainable economic growth.

Vietnam has joined a network of 17 free trade agreements involving 60 economies, covering most major global markets. Vietnam's FTA network can be grouped into three main categories: ASEAN-based agreements, new-generation FTAs and bilateral accords.

High-standard trade agreements include the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP), and the European Union–Vietnam Free Trade Agreement (EVFTA). These agreements connect Vietnam to major economies across Asia-Pacific, Europe and the Americas.

VGP-Pham Long