Savills notes that demand for Grade A office space in Asia-Pacific remains positive, particularly in emerging talent hubs such as Vietnam, India and Malaysia.

Savills forecasts that real estate investment in Asia-Pacific will increase by approximately 7% in 2026, reflecting a more stable cycle compared to the US and Europe. However, as global investors become increasingly cautious and selective, markets offering real growth, strong domestic demand, and improving legal frameworks—like Vietnam—are poised to maintain a long-term advantage.

Data from the General Statistics Office and international organizations show that Vietnam’s GDP growth maintained a positive trajectory throughout the 2022–2025 period. Specifically, following an 8% growth rate in 2022, GDP reached 5.1% in 2023 before rebounding to 7.1% in 2024 and hitting 8.02% in 2025. Vietnam remains among the fastest-growing economies in the Asia-Pacific region.

Growth has improved not only in speed but also in quality. GDP per capita rose from $3,700 in 2022 to nearly $5,026 in 2025. Rising incomes and an expanding middle class have solidified the domestic market while driving demand for infrastructure, logistics, urban development, and commerce—factors that have a powerful spillover effect on the real estate sector.

In the broader regional picture, Savills notes that demand for Grade A office space in Asia-Pacific remains positive, particularly in emerging talent hubs such as India, Vietnam, and Malaysia. In these markets, multinational corporations are expanding their presence to access high-quality labor at competitive costs. Additionally, the retail real estate segment is being bolstered by recovering consumption, tourism growth, and the return of international brands.

According to Mr. Neil MacGregor, CEO of Savills Vietnam, regional trends are clearly reflected in the Vietnamese market but with increasing depth and quality.

Vietnam has moved past the stage of attracting investment primarily based on cost advantages. Capital flows are now shifting strongly toward high-value sectors such as high-tech manufacturing, electronics, modern logistics, and industries integrated into global supply chains. This is redefining real estate demand toward higher quality, sustainability, and a longer-term focus, Mr. Neil said.

A key driver reinforcing the long-term outlook for Vietnam’s real estate market is the steady influx of high-quality Foreign Direct Investment (FDI). According to 2025 data, total registered FDI in Vietnam reached approximately $38–40 billion, while disbursed capital hit a record high, reflecting the long-term confidence of foreign investors in the domestic business environment.

Notably, capital from Europe is becoming more selective, focusing on high-value-added sectors such as technology, electronics, advanced processing, and logistics. In particular, the EU-Vietnam Free Trade Agreement (EVFTA)—which will see import duties on over 99% of tariff lines for goods exported to the EU eliminated by 2027—is expected to further solidify Vietnam’s position in global supply chains and increase its appeal to long-term investors.

Parallel to FDI, large-scale public investment in infrastructure is seen as a pivotal growth engine for the economy and the real estate market in the medium and long term. The accelerated implementation of key projects—such as the North-South Expressway, Long Thanh International Airport, and ring road systems in Hanoi and Ho Chi Minh City, along with various logistics and energy projects—will improve regional connectivity, encourage urban decentralization, and create new growth poles along strategic infrastructure axes.

Vneconomy-Thanh Xuân

Deputy Minister of Finance Tran Quoc Phuong tells Vietnam Economic Times / VnEconomy how the amended Law on Planning 2025 removes bottlenecks and unlocks investment for Vietnam’s long-term development.

More than 90 per cent of participating National Assembly deputies recently voted in favor of the amended Law on Planning 2025. Can you tell us about the core of the amendments?

Following the direction of the Party Central Committee, the government developed a draft amended Law on Planning to ensure consistency and alignment with related legislation while safeguarding transparency, fairness, efficiency, and a balanced approach to the interests of the State, citizens, and businesses in planning activities.

The Law is grounded in the core principle of improving the legal framework so that planning truly becomes an effective State tool for managing development, shaping development space, and meeting the country’s needs in the “New era - The era of the nation’s rise.”

How does the Law on Planning 2025 address overlapping plans and align with the two-tier local government model?

The Law on Planning 2017 established a unified legal framework for planning nationwide. However, implementation revealed several difficulties, particularly conflicts between the Law and sector-specific laws. In addition, the restructuring of the administrative apparatus and the shift to a two-tier local government model have had a broad impact on the entire planning system.

To address overlapping plans and ensure compatibility with the two-tier local government structure, the Law on Planning 2025 introduces a number of new provisions related to the planning system, inter-plan relationships, conflict resolution, and enhanced decentralization and delegation of authority.

First, sector-specific detailed plans are incorporated into the planning system to ensure consistency and coherence. Second, new provisions clarify relationships among different types of plans, ensuring compliance, continuity, inheritance, stability, and hierarchy, and providing a legal basis for resolving conflicts. Third, the law sets out mechanisms to resolve conflict between plans approved at different levels; between regional or provincial plans and sectoral or sector-specific detailed plans; and between plans at the same level. These provisions are based on clearly identifying which plan is implemented and which must be adjusted (except for conflicts between sectoral plans), with adjustments carried out under simplified procedures.

Fourth, authority to approve provincial plans is delegated to the Chairs of Provincial-level People’s Committees. To balance greater local autonomy, the Law strengthens post-approval supervision, inspection, and accountability to detect overlaps and conflicts in a timely manner. The Law also allows plans to be prepared concurrently and clarifies approval sequencing to ensure coherence across the planning system.

Fifth, national, regional, and provincial plans are refined to focus on strategic orientation rather than detailed project listings, enhancing flexibility in implementation. Certain elements of provincial planning are also revised to align with the two-tier local government structure.

Many projects have been delayed due to legal obstacles. How will the Law help accelerate their implementation?

Several investment projects have faced delays in recent years due to insufficient legal grounds for handling conflicts between plans and a lack of clear criteria for assessing project compatibility with planning.

The Law on Planning 2025 reflects a shift in investment management thinking, by strengthening links between planning and development investment. Key reforms include removing project lists from planning documents to ensure flexibility, avoiding situations where “planning follows projects,” and simplifying procedures for assessing compatibility between investment decisions and planning.

This assessment is guided by three principles. First, approval of an investment policy only needs to be based on one plan within the planning system to assess project compatibility. Second, projects involving the repair, renovation, upgrading, expansion, or replacement of existing works - while maintaining the same objectives, location, and scale - are exempt from compatibility assessment. Third, for special or urgent public investment projects, or projects implemented under directives of the Politburo, the Party Secretariat, or the Party Government Committee, competent authorities may approve investments that differ from existing plans, provided they meet national development needs.

At the same time, projects may proceed immediately without waiting for planning adjustments in cases of conflicting plans. After an investment decision is made, any conflicting plans must be promptly reviewed and adjusted under simplified procedures.

These reforms are expected to resolve bottlenecks in project-planning compatibility, accelerate investment implementation, especially for major projects, unlock new development momentum, mobilize resources more effectively, and strengthen the role of the private sector.

Will the Law on Planning 2025 affect existing plans currently under implementation?

One key requirement set by the Politburo is that planning systems already operating stably, without changes arising from administrative mergers or boundary adjustments and without practical obstacles, may continue to be implemented.

At the same time, a fundamental principle of planning remains ensuring compliance, continuity, inheritance, stability, and hierarchy within the planning system.

Accordingly, the Law on Planning 2025 stipulates that national, regional, and provincial plans for the 2021-2030 period, including adjusted plans and approved technical and sector-specific plans, may continue to be implemented until the end of the planning period or until they are replaced under the Law.

Likewise, implementation plans that have already been issued will remain valid until their expiry or until revised plans are approved under the Law.

These provisions ensure continuity, prevent legal gaps, and avoid disruptions to planning and management activities during the Law’s implementation.

VET-

Vietnam’s International Financial Centre is launched in HCM City and central Da Nang city.

Standing Deputy Prime Minister Nguyen Hoa Binh held a working session with leaders of Ho Chi Minh City and central Da Nang city on February 11 to discuss the operation of Vietnam's International Financial Centre (VIFC).

The meeting took place shortly after the VIFC was officially launched in Ho Chi Minh City earlier the same day.

Deputy PM Binh highlighted three key pillars for the development of the VIFC: a robust legal framework, modern digital infrastructure, and strong governance and human resources.

He directed both cities to further refine their development strategies with clear roadmaps, concrete goals and well-defined implementation steps. They were also urged to study best practices from leading global financial hubs such as Singapore, Hong Kong (China), and Dubai (the UAE), while proposing tailored mechanisms and policies suited to Vietnam’s specific conditions.

Ho Chi Minh City and Da Nang have been tasked with jointly developing a strategy for the international financial centre in their respective localities.

Under the plan, Ho Chi Minh City will focus on building a regulatory sandbox framework and advancing the application of technologies such as blockchain, artificial intelligence and asset tokenisation. The city also aims to develop aviation finance, digital finance and fintech, maritime finance, and an international interbank system.

Meanwhile, Da Nang will prioritise digital assets, digital payments and fintech, along with establishing and operating specialised platforms and exchanges. The city will also promote financial services linked to innovation, startups, trade finance, supply chain financing and sustainable finance, while piloting controlled experiments with new financial models.

VnEconomy-

Hanoi, HCM City and Da Nang are among the first localities to announce the plan.

A number of provinces and centrally-run cities have recently unveiled detailed budget plans to boost science and technology, innovation, and digital transformation this year.

Hanoi is the first locality to earmark up to 4% of its total budget expenditure — equivalent to approximately VND9 trillion ($343 million) annually — for science, technology, innovation, and digital transformation. The capital city has also set a target of disbursing 100% of allocated funds for approved tasks, considering these areas a key growth driver in its ambition to achieve double-digit economic expansion.

Ho Chi Minh City authorities have likewise prioritised the sector, allocating VND12.705 trillion ($485 million) for science and technology in the city’s 2026 budget estimate, accounting for 4.16% of total local budget spending.

Most recently, the People’s Committee of central Da Nang City issued a plan to implement the project titled “Development of Science and Technology in Da Nang City for the 2026–2030 period, with a vision to 2035.” Funding for the project in 2026 alone is estimated at more than VND132.4 billion ($5.05 million).

At the national level, Vietnam plans to allocate VND95 trillion ($3.6 billion) from the State budget this year for the development of science, technology, innovation, and digital transformation, underscoring the Government’s commitment to strengthening growth through knowledge, technology, and digital capacity.

VnEconomy-Ngô Huyền

For 2026, market drivers are forecasted to remain centered on legal reforms, the need for land bank accumulation, and a shift toward high-transparency, sustainable projects, and diversified product portfolios.

The year 2025 marked a period of robust recovery for Vietnam's real estate market, underpinned by stable macroeconomic foundations and extensive institutional reforms, according to a report released in late January 2026 by Jones Lang Lasalle Vietnam (JLL).

In parallel, several key infrastructure projects—including Long Thanh International Airport, Ho Chi Minh City’s Ring Road 3, Metro Line 2, and various inter-regional expressways—are seeing accelerated progress. Administrative reforms, the development of Vietnam's International Financial Center in Ho Chi Minh City and Da Nang, and the prospect of a stock market upgrade (with FTSE Russell’s final assessment results expected in September 2026) continue to bolster the confidence of international investors in Vietnam.

Over the past year, the real estate market stood out with several major MA transactions, entering a phase of more professional and selective restructuring.

CEO of JLL Vietnam, Ms. Le Thi Huyen Trang, noted that FDI inflows continue to prioritize projects with transparent legal status, complete documentation, and immediate deployment readiness.

A notable highlight is the clear stratification among investor groups. Specifically, domestic investors dominate small and medium-sized deals, showing flexibility in transaction structures and development partnerships. Meanwhile, foreign investors are focusing on large-scale transactions, particularly in high-end residential segments, integrated townships, and strategic industrial real estate.

According to Ms. Trang, valuation benchmarks are being reset based on international appraisal standards, more accurately reflecting the true value of assets rather than the "irrational" price levels seen in previous cycles. Transaction yields have also adjusted to more attractive levels, particularly in the hotel segment with expectations of 8–9%, helping to draw international capital back to the market.

Notably, a new policy effective since April 2025, which allows the conversion of non-residential land use purposes to commercial housing development, has provided significant momentum for MA deals in the residential sector—a segment characterized by high demand but limited supply.

For 2026, market drivers are forecasted to remain centered on legal reforms, the need for land bank accumulation, and a shift toward high-transparency, sustainable projects, and diversified product portfolios (including offices, industrial properties, and data centers).

To successfully attract international capital, experts suggest that businesses must finalize legal frameworks, ensure transparent valuations according to international standards, remain flexible in transaction methods, and maintain clear financial and governance systems.

Vneconomy-Hằng Nguyễn

Beyond material preparations, search data also shows that Vietnamese users, particularly the younger generation, are proactively seeking a deeper understanding of traditional cultural values.

2026 marks a significant shift in how Vietnamese people prepare for the Lunar New Year (Tet), according to recently released search data from Google. While Tet-related queries previously spiked only 1–2 months before the holiday, searches now begin appearing as early as three months in advance.

In the initial phase, users primarily seek orientational and overview information, such as dates and holiday schedules. Popular queries include “Which zodiac animal is Tet 2026?”, “What date is the first day of Tet 2026?”, and “Tet 2026 holiday schedule.” This suggests that Vietnamese consumers are trending toward long-term planning rather than the last-minute rush of previous years.

As the holiday draws closer, search behavior shifts toward detailed planning and execution. Queries such as “how many days until Tet” or “Tet 2026 flight tickets” reflect a need to proactively arrange travel logistics. Approximately two months before the festival, lifestyle and consumer-related searches begin to dominate—accounting for an estimated 28% of total Tet-related queries—focusing on familiar topics like “Tet decorations,” “Tet music,” and “Lunar New Year 2026 bonuses.”

A standout highlight of the Tet 2026 trends is the transition from purely informational browsing to action-oriented searches and decision-making. Faced with an increasing volume of preparations, Vietnamese users have begun leveraging "AI Mode"—a new feature in Google Search—to handle complex needs that require deep information and context.

Instead of searching for fragmented pieces of information, users can now pose detailed, conditional questions or combine text with images to receive comprehensive, synthesized recommendations.

According to Mr. Marc Woo, Managing Director of Google Vietnam, the data indicates that Vietnamese people are becoming increasingly organized and proactive.

“With AI Mode, Google Search has evolved into a supportive companion for the Vietnamese people throughout the preparation process for the most important festival of the year. This helps users organize information more efficiently, allowing them more precious time to spend with their families,” said Mr. Woo.

Beyond material preparations, search data also shows that Vietnamese users, particularly the younger generation, are proactively seeking a deeper understanding of traditional cultural values. In recent years, Google Search has increasingly served as a key reference channel for clarifying customs, rituals, and the profound meanings behind the traditional Lunar New Year.

Vneconomy-Như Quỳnh

Specifically, all wastewater from terminal operations is channeled through a closed piping network to an advanced microfiltration system.

Driven by a strategy of sustainable development and service excellence, the Da Nang International Terminal Investment and Operation JSC (AHT) has invested in a state-of-the-art wastewater treatment system at Terminal 2, Da Nang International Airport.

Specifically, all wastewater from terminal operations is channeled through a closed piping network to an advanced microfiltration system. The facility utilizes AO (Anoxic-Oxic) biotechnology combined with cutting-edge Membrane Bioreactor (MBR) technology to effectively eliminate organic pollutants and microorganisms.

The integration of Mitsubishi (Japan) hollow fiber membranes ensures operational stability, extends the system's lifespan, and guarantees high-quality water output over time. Furthermore, all odors generated during the treatment process are captured and processed within a closed-loop system, ensuring surrounding air quality meets all regulatory requirements.

According to the technical process of the "Circular Ecological Fish Pond," the treated water, which meets QCVN 14:2008/BTNMT standards of Vietnam, is repurposed for various functions such as cleaning and irrigation. Most notably, it is reused to sustain a 50-square-meter ornamental fish pond located at the heart of the terminal.

Beyond infrastructure, Biophilic design principles—an approach that integrates nature into human-centric architecture—have been thoroughly applied throughout the terminal. Greenery, natural light, and optimized ventilation are deeply integrated into the interior spaces, helping passengers alleviate travel stress and rejuvenate during their journeys.

“The launch of the aquarium using recycled water is more than just a landscape feature. It is a testament to our commitment to social responsibility and our strategic orientation toward sustainable development aligned with global ESG (Environmental, Social, and Governance) standards,” said Deputy General Director of AHT, Mr. Do Trong Hau.

Vneconomy-Ngô Anh Văn

Ho Chi Minh City has launched the Vietnam International Financial Centre, naming Nam A Bank as a strategic investor to advance green finance and global integration. Mr. Nguyen Van Duoc, Member of the Party Central Committee, Deputy Secretary of the City Party Committee, Chairman of the Ho Chi Minh City People’s Committee, and Vice Chairman of the VIFC - HCMC Executive Board, presents the Strategic Member Certificate to Mr. Tran Khai Hoan, Member of the Board of Directors and Acting General Director of Nam A Bank.

The Vietnam International Financial Centre in Ho Chi Minh City (VIFC - HCMC) was officially launched on February 11, marking a major step in the city’s strategy to position itself as a regional financial hub.

At the ceremony, Nam A Bank (HOSE: NAB) was formally recognized as a strategic investor of VIFC - HCMC.

The event was attended by Prime Minister Pham Minh Chinh, along with leaders of ministries, central agencies, and local departments. Representatives of domestic and international financial institutions were also present, underscoring the ambition to build a modern financial ecosystem aligned with international standards, with green capital and sustainable finance at its core.

Experts say selecting banks with strong governance, advanced technological platforms, and experience in green finance will be critical to connecting Vietnam’s domestic market with global capital flows. Nam A Bank’s participation positions the lender as a key link in the VIFC - HCMC ecosystem, particularly in facilitating green capital circulation.

Mr. Tran Khai Hoan, Member of the Board of Directors and Acting General Director of Nam A Bank, speaks at the event.

Speaking at the launch, Mr. Tran Khai Hoan said the bank is committed to supporting the city’s vision of becoming a regional and global financial destination.

“The establishment of VIFC - HCMC reflects not only the city’s vision but also Vietnam’s strategic move to integrate more deeply into global financial flows through a modern, competitive, and breakthrough-driven model,” he said.

Nam A Bank’s role at VIFC - HCMC reflects its long-standing focus on “digitalization and greening” as core development pillars. The strategy centers on mobilizing and allocating capital sustainably while building transparent, technology-driven financial infrastructure capable of scaling complex solutions.

The bank was among the first in Vietnam to establish an Environmental and Social Management System (ESMS) and has developed expertise in financing renewable energy and high-tech agriculture projects. Through partnerships with international organizations such as GCPF, BlueOrchard, ResponsAbility, and Symbiotics, Nam A Bank has introduced global financial standards to the domestic market, strengthening its capacity to channel green capital.

By the end of 2025, Nam A Bank ranked among the 15 largest banks in Vietnam by total assets, approaching VND420,000 billion ($16.15 billion). Credit growth reached 18.2 per cent. The bank said its expanding balance sheet and digital ecosystem enable it to deliver sophisticated financial services efficiently and transparently.

As part of its commitment to VIFC - HCMC, Nam A Bank has proposed establishing a Green Finance Community, bringing together financial institutions and enterprises aligned on sustainable development to share resources and enhance collective impact.

Strategic partners involved in resource mobilization, ecosystem development, and human resource training receive Strategic Member Certificates.

On the afternoon of February 11, the bank is scheduled to sign cooperation agreements with multiple partners under what it calls a “Standards - Infrastructure - Capital” strategic framework. The agreements aim to:

·       Receive technical assistance to design and implement Green Supply Chain Finance (G-SCF) solutions aligned with international standards.

·       Develop a fully digitalized G-SCF e-platform integrating ESG data to enhance transparency and efficiency.

·       Establish a Green Bond framework to expand sustainable capital mobilization channels and strengthen market capacity.

Key partners in this framework include the Global Green Growth Institute (GGGI) and FiinGroup Vietnam. The bank said it will continue expanding partnerships with domestic and international institutions to build out the Green Finance Community, attract global capital, and support infrastructure development at VIFC - HCMC.

Nam A Bank said its partnership with VIFC - HCMC signals a new phase for green finance in Vietnam. As capital flows through the centre increasingly align with sustainability standards, Vietnamese enterprises are expected to gain improved access to long-term funding at competitive costs, enhancing national competitiveness and reinforcing Vietnam’s position in the global economy.

-Diep Linh

The airport is expected to be upgraded to Level 4E to increase its capacity to handle large aircraft such as Boeing 777, Boeing 787, and Airbus A350.

The People’s Committee of Quang Tri province in central Vietnam has proposed the Ministry of Construction and the Civil Aviation Authority of Vietnam to upgrade Quang Tri airport,  which is under construction, to make it capable of accommodating larger aircrafts.

The upgrade is aimed at gradually completing the local multimodal logistics system in response to the increasing demand for goods transportation along the East-West Economic Corridor, according to local authorities.

The committee proposed to upgrade the airport to Level 4E to increase its capacity to handle large aircraft such as Boeing 777, Boeing 787, and Airbus A350.

The upgrade will be included in the national airport development plan for the 2021-2030 period with a vision towards 2050.

Under the initial plan, Quang Tri Airport will be a Level 4C one with a capacity of handling 5 million passengers and 25,500 tons of cargo per year. Total investment capital is estimated at over VND5.82 trillion ($222 million).

The first phase of the airport is under construction and is scheduled for completion in late 2026.

VnEconomy-Nguyễn Thuấn

Total value reaching $23 million, up 40.3% year-on-year.

Vietnam exported 41,000 tons of tea in January, worth $23 million, according to the Ministry of Agriculture and Environment.

The figures mark a strong year-on-year growth of 44.7% in volume and 40.3% in value.

However, the export price in January dropped 3% to $1,644 per ton.

Vietnam currently has about 128,000 hectares of tea, with fresh tea bud production exceeding 1 million tons per year, equivalent to about 214,000 tons of dry tea, placing Vietnam fifth in the world's tea production. This is an important foundation for developing the tea industry towards high quality and sustainability.

In 2025, Vietnam exported 136,952 tons of tea, earning nearly $238 million.

VnEconomy-Chu Minh Khôi

Vietnam’s midmarket firms lag large caps in returns, but with bold strategy and disciplined execution, the gap can be closed.

Midmarket companies are the backbone of Vietnam’s economy. These energized, medium-sized enterprises drive innovation, create jobs, and keep the country competitive in exports. Yet many are leaving value on the table.

Boston Consulting Group’s (BCG) latest analysis highlights a telling performance gap. Total shareholder return (TSR) for Vietnam’s midmarket has grown at approximately 8 per cent per year, in contrast to the 11 per cent annual growth of large-cap companies.

This gap is narrower than in many other global markets, with a six-percentage-point gap between midcaps and large caps in North America, and seven percentage points in the Asia region.

Navigating macroeconomic headwinds

The macroeconomic environment presents unique challenges for Vietnam.

Financing structures remain conservative, with midmarket companies predominantly relying on traditional bank debt or retained earnings rather than capital markets. The domestic investor base is less mature than many regional peers, constraining market depth and liquidity.

Operational frictions also weigh on midmarket margins. Fluctuating foreign exchange rates introduce unpredictability, with FX volatility compressing midmarket margins faster than those of large caps. High logistics costs and uneven infrastructure further complicate supply chains. These aren’t just budget constraints; they are barriers to scale.

Finally, Vietnamese businesses continue to struggle with a digital lag. Innovation requires investment, and many midmarket players have been slow to adopt the digital tools that drive efficiency. Digital skill levels in Vietnam are also less advanced than those of comparator companies.

These challenges have been underpinned by a turbulent growth history over the last decade, with sharp swings post-2021 and a slower recovery during the post-pandemic correction. This reflects limited buffers against disruption and exposure to punishing macro headwinds.

The global structural squeeze on midmarket companies

Vietnamese midmarket firms are not alone. BCG’s latest global report, Seizing the $3 Trillion Midmarket Opportunity, highlights three key challenges that heighten exposure to macro shocks.

Midmarket firms struggle to attract and retain top-tier talent. Our data shows annual employee attrition at midmarket companies sits at 9 per cent, compared to 7 per cent at large caps. Worse, a clear skills gap is emerging. While large caps aggressively recruit for AI, software engineering, and data analytics roles, midmarket firms are still hiring primarily for operational and service-based roles. This leaves them ill-equipped for a digital future - a gap that only intensifies as the AI race further separates leaders and laggards.

Access to capital is also more expensive and restrictive for the midmarket. These firms carry higher debt-to-equity ratios (averaging 1.5x to 1.6x compared to 1.3x for large caps) and have greater exposure to variable-rate debt. Only 35 per cent of midmarket companies receive investment-grade ratings, compared to 85 per cent of large caps. This makes borrowing costly and limits their ability to fund long-term transformations.

Subscale operations also lead to inevitable cost disadvantages. Midmarket companies consistently face cost ratios that are three to five percentage points higher than large caps. They lack the purchasing power to negotiate better terms with suppliers, leaving them with thinner cushions to absorb inflation or supply shocks.

Four critical steps to close the gap

These challenges are not insurmountable. BCG has identified four critical steps to break the midmarket lag and energize these valuable enterprises.

Step 1: Start with a big vision and fund it.

Incremental changes yield incremental results. Midmarket leaders need to set a bold ambition to unlock the full potential of the business. This prevents the “value leakage” that often causes transformations to fall short.

However, ambition requires funding. Leaders must fully reset the cost base to free up capital, using zero-based budgeting (ZBB) for every process. This enables midmarket companies to stretch targets and prevent unnecessary costs from creeping back in. The goal is to cut smart, then grow. This allows the firm to power long-term bets, investing in strategic capabilities like AI and digital talent that build a lasting advantage.

Step 2: Hardwire commitment, starting with the CEO.

Transformation must be the CEO’s top agenda item. The CEO should be visibly focused on the change, signaling its importance to the entire organization.

This commitment must extend to the leadership team. The CEO needs to bring the team together behind a shared agenda, ensuring everyone is pulling in the same direction. To make this stick, companies should hardwire incentives. Compensation and bonuses, from the C-suite down to the front line, must be tied directly to transformation objectives.

Step 3: Make tough choices and drive execution.

Speed matters more than scale. Midmarket firms have the advantage of agility. Leaders should leverage this by moving quickly to gain momentum.

This requires ruthless prioritization. You cannot do everything at once. Make critical investment trade-offs and allocate your best talent to the most important initiatives. Adopt an execution approach built on agility. Break work into sprints (e.g., 90-day cycles) to deliver value early and often. Crucially, the CEO must lead from the top. Not every decision requires consensus. In times of change, clarity and decisive leadership trump endless deliberation.

Step 4: Lead the change and communicate regularly.

The cultural side of transformation is often the hardest, but most vital element. Leaders must leverage their company’s manageable size to drive faster behavior change. This starts with regular, clear, and consistent communication.

Be direct about what is changing, why it is changing, and what it means for teams. Establish feedback loops that allow the organization to listen, adapt, and reinforce key messages. To scale this effort, appoint “change champions” throughout the business to model new behaviors for their peers.

Finally, identify top talent and implement specific retention plans. Given the high attrition rates among leading talent, keeping your best people motivated and energized is nonnegotiable.

Seizing future opportunity for Vietnam’s midmarket

Strengthening Vietnam’s midmarket is more than a corporate goal; it is a strategic national opportunity. By addressing these structural barriers, midmarket firms can unlock the next wave of growth, resilience, and competitiveness.

The gap between midmarket and large-cap performance is real, but it is not permanent. With bold vision, disciplined execution, and decisive leadership, Vietnam’s midmarket champions can position themselves as the energized, agile drivers of the economy.

-By Il-Dong Kwon, Managing Director Partner, BCG, and Justin Lim, Senior Manager, BCG Vantage.

PM Pham Minh Chinh and his Singaporean counterpart Lawrence Wong hold phone talks to discuss ways to further promote bilateral ties.

Prime Minister Pham Minh Chinh suggested to increase the number of the Vietnam–Singapore Industrial Parks (VSIPs) to 30 in 2026 to mark 30 years since the first VSIP was launched in Vietnam, during phone talks with his Singaporean counterpart Lawrence Wong on February 10.

He proposed to upgrade the VSIPs to a second-generation model integrating industry with services, high technology and eco-urban development.

PM Chinh welcomed the continued positive growth in bilateral trade in 2025, which increased by 12% compared to 2024. He suggested that Singapore further increase imports of Vietnam's agricultural products and effectively implement the memorandum of understanding on rice trade to help ensure food security.

He called on the two sides to strengthen cooperation in developing financial and banking infrastructure, particularly digital infrastructure, payment systems, cross-border payments, digital identification and cybersecurity. He encouraged Singaporean banks, investment funds and fintech companies to expand long-term investment in Vietnam.

For his part, the Singaporean Prime Minister expressed confidence in Vietnam's strong growth potential and reaffirmed Singapore's commitment to expanding investment in the country, including increasing the number of VSIPs. 

VnEconomy-Hà Lê

Vantage Point Asset Management (VPAM), a leading asset management company based in Singapore, has pledged to mobilize $10 billion from global institutional investors and strategic partners within five years into Vietnam’s International Finance Centre.

During the official launch ceremony of Vietnam's International Finance Centre in Ho Chi Minh City (VIFC-HCMC) on February 11, Vantage Point Asset Management (VPAM), one of the leading asset management companies in Singapore and Australia, officially announced its role as a founding and development partner of VIFC-HCMC, with a commitment to mobilizing $10 billion from global institutional investors and strategic partners within five years into VIFC-HCMC.

VPAM’s representative declared that the company would play a pioneering role in promoting the development of Vietnam's financial system by attracting talent, mobilizing large-scale capital, and building modern investment platforms.

The committed capital will be allocated to key sectors such as infrastructure, real assets, and strategic fixed income investments.

VPAM is also set to establish an institutional asset management platform at VIFC-HCMC, where Vietnam's domestic financial products will be introduced and promoted to attract capital flows from international investors.

This platform is expected to serve as a bridge between the Vietnamese market and major financial centers such as Singapore, London, the Middle East, and Australia. Additionally, VPAM also plans to establish an international agricultural finance and trading platform at VIFC-HCMC, leveraging Vietnam's advantages in agriculture to expand export and investment opportunities.

"Vietnam is emerging as a high-growth economy, particularly within the infrastructure and energy sectors," said Colin Mullins, Group CEO of VPAM. "We are committed to collaborating with the VIFC to transform this vision into a reality, leveraging our global expertise to integrate local markets with the international financial community."p

Founded in 2017, VPAM is regulated by the Australian Securities and Investments Commission (ASIC) and holds a Capital Markets Services (CMS) license from the Monetary Authority of Singapore (MAS).

Recently, the company has worked with Khanh Hoa province in central Vietnam to explore investments in infrastructure and green energy in the province, affirming the company's growing interest in the Vietnamese market.

Vneconomy -Anh Hoang

The center has mobilized committed capital of nearly $10 billion.

Prime Minister Pham Minh Chinh attended the launching ceremony of Vietnam's International Financial Centre in Ho Chi Minh City (VIFC–HCMC) on February 11, marking a significant step in the country’s financial sector development.

Speaking at the event, the Prime Minister said the centre is expected to attract and channel capital into priority areas such as strategic infrastructure, core industries, logistics, green growth, and digital transformation. It will also equip Vietnamese enterprises with modern financial tools to enhance their participation in global value chains.

The center is envisioned to help transform Vietnam’s role from a passive capital recipient into a more active contributor to regional and global financial markets, he added.

According to the master plan, VIFC–HCMC covers 898 hectares across Saigon and Ben Thanh wards and the Thu Thiem New Urban Area.

At the ceremony, authorities introduced key institutions of VIFC–HCMC, including its executive authority, a specialised court, and an international arbitration centre. The centre’s official website was also launched, and certificates were presented to founding and strategic members.

Although only recently operational, VIFC–HCMC has already reported several tangible and practical initial results, reflecting strong implementation capacity and readiness for the international financial center model.

Among the highlights is the establishment of an Aviation Financial Centre with total committed capital of up to $6.1 billion, demonstrating early confidence from international investors and financial institutions in the centre’s development orientation and operating mechanisms. A Maritime Financial Centre is also being gradually rolled out to support trade finance, logistics, and supply chain activities linked to global commerce.

In infrastructure and urban development, VIFC–HCMC has mobilised $2 billion for smart urban data infrastructure programs and financial solutions supporting Ho Chi Minh City’s development, reinforcing its role as a bridge between capital markets and the real economy.

Notably, the city has also established a US$1 billion on-chain economy investment fund, focusing on blockchain, asset tokenization, and next-generation digital financial models, creating space for experimentation and growth in advanced financial technology.

VnEconomy-Hoàng Lan

The project is expected to provide approximately 890 units, including 860 social housing apartments and 30 low-rise commercial houses.

The Thanh Hoa Provincial People’s Committee in central Vietnam has officially issued a decision approving WESTMINSTER Vietnam Group JSC as the investor for the Phu Son Social Housing Project. 

The project is located within the Phu Son Ward resettlement area in Hac Thanh Ward. The provincial authorities had previously approved the investment policy for this project on May 12, 2025, under Decision No. 1409/QD-UBND.

The development will be situated on a 1.6-hectare site where land clearance has already been completed. The approved plan includes the construction of two synchronized 21-story social housing towers, each featuring a basement.

The project is expected to provide approximately 890 units, including 860 social housing apartments and 30 low-rise commercial houses, which will be built as shells with finished exteriors. Once completed, the complex is projected to accommodate roughly 3,000 residents.

The total preliminary investment for the project is estimated at over VND1.55 trillion (approx. $60 million). Of this, the developer’s equity contribution exceeds VND310 billion ($12 million), with the remaining capital to be mobilized in accordance with the project’s implementation progress.

Regarding the timeline, the project must be completed within 36 months from the date of land handover. Additionally, within 60 days of the approval decision taking effect, the investor is required to finalize all administrative procedures—including those related to construction, environment, and fire safety—to ensure the project is ready for its official groundbreaking.

Vneconomy-Nguyễn Thuấn

A strong recovery in demand from China, ASEAN, and Japan has propelled pangasius to the top of the seafood growth charts, continuing the upward momentum seen in 2025.

Vietnam’s pangasius exports generated over $177 million in January, a year-on-year increase of more than 33%.

A strong recovery in demand from China, ASEAN, and Japan has propelled pangasius to the top of the seafood growth charts, continuing the upward momentum seen in 2025.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), alongside positive export signals, the pangasius market in the Mekong Delta has recorded an unprecedented price surge. In key farming hubs such as Dong Thap, An Giang, and Can Tho, commercial pangasius (size 0.8–1 kg per fish) has reached a record high of VND35,000 ($1.35)/kg—an increase of VND5,000–7,000/kg compared to previous peaks.

The primary driver behind this sharp price hike is a shortage of raw materials. Because the pangasius farming cycle lasts six to eight months, a prolonged period of low prices in the past led many farmers to suspend operations, reduce stocking density, or leave the industry entirely. As processing and export demand recovered, the volume of fish ready for harvest became insufficient to meet market needs, putting significant upward pressure on procurement prices.

The fingerling (seed) market has also experienced a price explosion. Cold weather and adverse climate fluctuations have increased mortality rates during the nursery stage, making the supply of young fish increasingly scarce.

In 2025, Vietnam’s pangasius export turnover reached an estimated $2.2 billion, up approximately 8% compared to 2024 and exceeding the initial target by 5%. While exports to the European Union (EU) remained relatively stable, monthly data showed clear fragmentation. Unlike the steady demand seen in 2024, the year 2025 was characterized by alternating periods of growth and decline, reflecting inconsistent import demand across various EU member states.

VASEP expects the growth trend to persist throughout 2026, with pangasius maintaining its role as the backbone of Vietnam’s freshwater seafood industry. The total farming area is expected to remain stable at around 6,400 ha, with a projected output of 1.67 million tons. Demand from major markets—including the US, China, Europe, and the Middle East—is forecasted to recover further, providing significant room for growth.

However, challenges remain. The current active farming area across the region sits at only 6,000–6,500 ha, which may not be enough to satisfy long-term demand. Additionally, exporters are facing pressure from geopolitical shifts, trade barriers, tariffs, and increasingly stringent quality requirements from importing nations.

Industry experts warn that the traditional development model—centered on high volume, low costs, and price competition—is reaching its limits and will be difficult to sustain in the long run. While record-high prices are a positive signal for the industry's recovery, they also carry the risk of "hot development"—spontaneous and uncontrolled production growth that could lead to future instability.

Vneconomy-Chu Khôi

Work is needed for the high level of savings found in Vietnam to be effectively translated into investment capital and, hence, higher economic growth.

Vietnam is facing a paradox: while its domestic savings rate ranks among the highest in the region, the efficiency with which those savings are transformed into investment and economic growth remains limited. Experts believe the main cause of this situation lies in an imbalanced financial structure, a lack of depth in the capital market, and low efficiency in capital utilization. Therefore, for “high savings” to be truly converted into “effective investment,” the State needs to create a transparent and competitive institutional environment that allows the market to naturally screen enterprises, thereby forming a healthy and sustainable capital market.

High savings, weak investment

According to several recently-published analytical reports, Vietnam’s total social investment demand during the 2026-2030 period is estimated at $250-260 billion a year. Of this, the private sector is expected to contribute 55-60 per cent, meaning it will need to mobilize roughly $140-155 billion annually. “Vietnam is entering a period that requires significant capital resources to sustain high growth,” said Mr. Nguyen Quang Thuan, Chairman of FiinRatings. “The role and pressure on the banking system will continue to increase if Vietnam’s financial system is not designed to be more balanced and multi-pillared.”

Accordingly, non-bank funding channels need to be developed, including the corporate bond market; equity capital-raising through the stock market, via IPOs; and capital from private equity and venture capital funds.

Dr. Can Van Luc, a Member of the Prime Minister’s Policy Advisory Council, noted that Vietnam possesses many advantages and significant potential in mobilizing resources for high and sustainable growth in the time to come, provided that appropriate approaches and coherent policies are adopted. One notable advantage is the country’s high and stable level of domestic savings. Vietnam’s savings rate currently stands at some 37 per cent of GDP; significantly higher than its total social investment of about 30-31 per cent of GDP and well above that of many ASEAN countries.

According to Dr. Luc, if the financial system and capital markets are designed to be transparent, safe, and diversified in terms of products, these savings could become an important foundation for medium and long-term investment. Over the past decade, the banking system, stock market, bond market, and insurance sector have expanded rapidly. At present, the total assets of Vietnam’s financial sector are estimated at more than 300 per cent of GDP. Nevertheless, enterprises still face difficulties in accessing capital, and the cost of capital remains high. The structure of the financial system is seriously imbalanced, as equity and bond markets lack depth, placing a heavy burden on the banking system.

As a result, he believes the banking sector has to shoulder an excessively large role in supplying capital to the economy. Outstanding bank credit is currently equivalent to about 147 per cent of GDP and could reach 180 per cent by 2030 if current trends continue. In particular, Vietnam’s low efficiency in capital utilization means that large amounts of capital mobilized have not been converted proportionately into economic growth.

Turning savings into capital

Dr. Nguyen Ba Hung, Chief Economist at the Asian Development Bank in Vietnam, said the International Monetary Fund recently conducted a study measuring the impact of policy reforms on Vietnam’s economic growth. “One noteworthy point is that, in terms of long-term impact, capital market reform accounts for nearly half of the contribution to growth,” he explained. “Though capital markets still face many limitations, if reforms are successful in mobilizing medium and long-term capital for investment, this will be the factor with the greatest long-term impact on economic growth.”

According to Dr. Luc, the foundational factor for realizing all resource-mobilization potential is investor and public confidence. When the institutional environment is transparent, policies are stable, fundraising methods align with market principles, and investor rights are protected, domestic and foreign resources will be activated more strongly. This, in turn, will create a solid financial foundation for Vietnam’s high, sustainable, and inclusive growth in the period ahead.

Experts have noted that after a period of overheated growth in the corporate bond and stock markets, which led to “good and bad being mixed together” and eroded investor confidence, regulators have taken strong corrective measures.

However, many believe that developing corporate bond and equity markets should not focus solely on the supply side and improving the quality of instruments, but also on diversifying the demand side, specifically the investor base. “Alongside diversifying the investor base, it is necessary to build a comprehensive ecosystem of financial services such as investment banking, brokerage, advisory, and credit rating services, in order to improve the efficiency of resource allocation,” Mr. Hung proposed.

He also said the State needs to establish an institutional environment that allows for a fair and transparent process of natural market screening. In such an environment, enterprises that operate efficiently, comply with the law, and possess strong technological and governance capabilities will boast the necessary conditions to survive and grow. Conversely, those that are inefficient, violate regulations, or fail to meet governance and technological requirements will be eliminated under market rules. This screening process will not only help restructure the enterprise sector in a healthier direction but also lay the foundation for the sustainable development of the economy in general and the capital market in particular.

In addition, experts recommend that regulators soon establish a legal framework for developing financial intermediaries that provide credit guarantees and bond underwriting, instead of limiting these activities mainly to credit institutions and State-backed guarantee funds as at present.

For equity capital markets, including IPOs, stock market fundraising, and venture capital investment, stronger development is also needed, alongside the goal of upgrading Vietnam’s stock market to emerging market status under FTSE Russell or MSCI classifications.

Moreover, capital structures for large-scale infrastructure projects, such as high-speed rail, should be studied under a project finance approach through build-operate-transfer (BOT) or public-private partnership (PPP) models, rather than relying primarily on bank credit.

Finally, in the context of declining international interest rates, including the Fed Funds Rate, over the next one to two years, Vietnam needs to prepare early and adopt a systemic approach to seize opportunities to attract portfolio investment from international investors at reasonable cost, instead of the high interest rates seen in the recent past.

One of the key solutions to achieving this goal is to promote an upgrade of Vietnam’s sovereign credit rating to investment grade before 2030, in line with the stated roadmap. Achieving this objective would not only have positive impacts on the financial market, but also enable Vietnamese enterprises to expand investment and trade activities at lower capital costs.

According to experts, the spillover effects of upgrading the sovereign credit rating could be even greater and more sustainable than upgrading the stock market itself.

VET-Tung Thu

The total number reaching 134,600 last year.

Statistics from the Vietnam Maritime and Waterways Administration showed that the number of seagoing vessel calls through Vietnam’s seaport system reached 134,600 last year, up 32% year-on-year, according to a report from the Vietnam News Agency.

The number of inland waterway vessel calls through seaports and inland ports totalled 733,200. Cargo throughput via seaports rose by 10%, while that through inland waterway ports increased by 17%.

Container throughput at Vietnam’s ports is expected to maintain growth, with deep-water ports in particular set to record higher efficiency thanks to larger vessel deployment and the accelerated development of infrastructure, which will help enhance competitiveness, according to MBS Securities JSC.

By 2030, total investment demand for Vietnam’s entire seaport system is estimated to reach VND359.5 trillion ($13.8 billion), including VND72.8 trillion for public maritime infrastructure, with the remaining VND286.7 trillion earmarked for commercial terminals providing cargo-handling services.

Vietnam News Agency-Van Nguyen

The Prime Minister ordered the construction of the school to be completed before August 31, 2026.

Construction of the Cam Thach Multi-level School in central Thanh Hoa Province officially began on February 10, with Prime Minister Pham Minh Chinh in attendance.

Cam Thanh is a commune that has a border with Laos. 

The groundbreaking ceremony was organized by the Provincial People’s Committee in coordination with the Ministry of National Defense.

The school is being constructed on a site spanning over 11,000 sq.m and is designed to meet Level 2 National Standards. The complex includes a three-story administrative building, a three-story classroom block with 20 rooms, a three-story subject-specific building, a one-story multi-purpose hall, and a three-story dining and boarding facility. All areas will be equipped with modern infrastructure to meet long-term teaching and learning requirements.

In his address, PM Chinh emphasized that this event carries profound humanitarian significance. It serves to institutionalize the policies of the Party and State while demonstrating the Central Government's commitment to education in disadvantaged areas.

The Prime Minister ordered the construction of the school to be completed before August 31, 2026. This timeline ensures that by September 5, 2026, students can attend the opening ceremony of the new academic year in a spacious, modern facility. He noted that the project design must be reviewed and perfected to ensure full functionality, meeting the boarding and educational needs of students in alignment with Standard 248 for multi-level schools in border communes.

Furthermore, the PM requested contractors and supervisory units to organize construction scientifically and urgently yet strictly. He emphasized the need to ensure quality, safety, technical standards, aesthetics, fire prevention, and the absolute prevention of loss or waste.

The Prime Minister urged local authorities to prioritize resources to complete six other multi-level boarding schools (primary and secondary) that began construction in 2025 before August 31, 2026. He also tasked the province with preparing the necessary land to implement 10 additional schools as part of the regional development plan.

Vneconomy-Nguyễn Thuấn

Most of the bonds were issued with five-, 10- and 15-year maturities, carrying annual interest rates of 3.3%, 4.04% and 4.12%, respectively.

The State Treasury mobilised more than VND26.7 trillion ($1.02 billion) through 18 government bond auctions in January, fulfilling 24% of the first-quarter target and 5.2% of the annual plan, according to the Hanoi Stock Exchange (HNX).

Most of the bonds were issued with five-, 10- and 15-year maturities, carrying annual interest rates of 3.3%, 4.04% and 4.12%, respectively. Ten-year bonds dominated the issuance, accounting for 95% of the total volume, equivalent to nearly VND24.7 trillion.

On the secondary market, the total listed value of government bonds reached more than VND2.57 quadrillion ($98.1 billion) as of January 30. The average daily trading value climbed 31.41% month-on-month to VND17.027 trillion ($650 million).

VnEconomy-Hà Anh