Asia Commercial Bank sets its sights on VND23,000 billion ($920 million) in pre-tax profit and 16 per cent credit growth for 2025, as it begins a new five-year strategy focused on sustainable expansion, digital investment, and consistent shareholder payouts. 2025 Annual General Meeting of Shareholders. Photo: ACB

Asia Commercial Bank (ACB) held on April 8 its 2025 Annual General Meeting of Shareholders, where shareholders approved the bank’s business plan and key initiatives for the year 2025 - a pivotal year in ACB’s 2025–2030 five-year development strategy.

For 2025, ACB aims for a pre-tax profit of VND23,000 billion ($920 million), up 9.5 per cent from 2024, supported by a focus on sustainable growth, risk management, and asset quality. A 25 per cent dividend payout was also approved, comprising 10 per cent in cash and 15 per cent in shares. This continues the bank’s five-year trend of high dividends, including three years of cash distributions, and reflects a consistent business performance and commitment to shareholder returns.

Speaking at the meeting, Mr. Tran Hung Huy, Chairman of the Board, said: “ACB has concluded its previous five-year strategy with notable achievements - tripling profits and delivering consistently high and balanced dividends. Looking ahead, the Vietnam’s economy and financial market would face various challenges in terms of increasing competition and stricter compliance requirements. To meet our strategic goals, ACB will continue to invest in infrastructure and new technology to enhance efficiency and strengthen risk control, with a focus on safety and security.”

Mr. Tran Hung Huy, Chairman of the Board of ACB, at ACB’s 2025 Annual General Meeting of Shareholders. Photo: ACB

In 2025, ACB will continue pursuing its goal of becoming a leading retail bank in both scale and profitability, laying a foundation for the next five-year phase. Key targets include 14 per cent growth in total assets and deposits (including valuable papers), and 16 per cent credit growth. While retail banking remains a core business, the bank also plans to increase its focus on corporate banking, particularly with leading enterprises and FDI clients.

Addressing questions about how economic developments might affect 2025 targets, Mr. Tu Tien Phat, CEO of ACB, said: “Despite economic challenges, including recent US tariff policies, ACB remains committed to its 2025 credit growth targets. Preliminary estimates for Q1 2025 show credit growth exceeding 3 per cent, deposit growth above 2 per cent, and a slight decline in the non-performing loan ratio to 1.34 per cent, indicating effective operational and risk management.”

Mr. Tu Tien Phat, CEO of ACB. Photo: ACB

In line with these targets, ACB plans to expand credit and deposits while maintaining a close watch on asset quality. It will also aim to increase fee-based income, especially in cards and international payments, and continue investing in its subsidiaries to diversify financial products and enhance group performance. Investments in digital banking, modern technology, and secure operational solutions remain a priority.

In 2024, ACB posted a pre-tax profit of VND21,006 billion ($840.24 million), placing it among the top seven banks with profits exceeding VND20,000 billion ($800 million), and among the top three most profitable private banks. The bank completed its 2019–2024 goals, nearly reaching its ambition of being Vietnam’s leading retail bank, with profits tripling and return on equity (ROE) consistently above 20 per cent. By the end of 2024, total assets reached VND864 trillion ($34.56 billion), up over 20 per cent year-on-year and 7 per cent above plan. Loans to customers totaled VND581 trillion ($23.24 billion), a record 19.1 per cent credit growth, well above the sector average and the highest in a decade for the bank.

Beyond financial performance, ACB continued to support government policies and State Bank of Vietnam initiatives through competitive lending rates and preferential housing loans for young customers. The bank has also streamlined loan procedures and offered online disbursement to improve access to banking services.

ACB is one of 10 banks selected by the State Bank of Vietnam to pilot the Internal Ratings-Based (IRB) approach for credit risk and capital management, marking a move toward international Basel standards and enhanced risk control.

According to recent credit rating updates, Moody’s maintained ACB’s outlook at “Stable,” while Fitch Ratings upgraded the outlook from “Stable” to “Positive” in 2024. Domestically, FiinRatings assigned ACB the highest long-term issuer rating of “AA+” with a “Stable” outlook. In March 2025, ACB was named one of Vietnam’s Top 10 Best Banks by Decision Lab (partner of YouGov) and saw an improvement in its brand health score. As part of its sustainable finance strategy, ACB introduced a Sustainable Finance Framework and disbursed VND4,000 billion ($160 million) in 2024 to support businesses aligned with sustainability goals.

-Diep Linh

The reciprocal trade agreement would include agreements on tariffs, according to US Trade Representative Jamieson Greer.

The US agreed to begin negotiations on a reciprocal trade agreement with Vietnam, including agreements on tariffs, as proposed by Vietnamese Deputy Prime Minister Ho Duc Phoc at his meeting with US Trade Representative Jamieson Greer in the US on April 9 (local time).

Mr. Phoc is paying a working visit to the US in his capacity as special envoy of Party General Secretary To Lam.

He emphasized that Vietnam has proactively implemented various measures in recent times to help address the trade imbalance between the two countries and respond to the concerns raised by the US.

He proposed that, although the US has decided to delay the imposition of tariffs by 90 days, the two countries should promptly begin negotiations on a bilateral trade agreement in order to establish a long-term framework to promote a stable and mutually beneficial economic and trade relationship, in line with the Comprehensive Strategic Partnership.

For his part, Mr. Greer proposed that technical-level representatives from both countries start discussions immediately.

He lauded Vietnam’s proactive and positive steps, which demonstrate the country’s strong commitment to advancing the bilateral economic and trade ties.

At the meeting, the two sides consented to continue working closely together to promote a favorable business environment, proactively review and minimize non-tariff barriers on each other’s goods, facilitate greater investment and business activities by US companies in Vietnam, and enhance cooperation in monitoring and preventing trade fraud.

 

-Tiến Dũng

Vietnam has a vision of, by 2050, building a modern railway network and taking full control of all related technologies, from manufacturing rails and switches to self-sufficiency in electrification.

Once a source of national pride, Vietnam’s railway industry has steadily lost ground due to aging infrastructure and poor connectivity. In recent years, however, the Party and the government have intensified efforts to breathe new life into the industry, rolling out ambitious strategies to gradually rebuild and modernize the railway network.

Despite these initiatives, railway transport still holds a modest market share in Vietnam’s transportation sector. According to the National Statistics Office (now under the Ministry of Finance), since 2019, passenger rail transport has never exceeded 0.17 per cent market share. The impact of Covid-19 in 2021 pushed this figure even lower, to just 0.06 per cent. On the freight side, railway transport saw its highest market share in 2021, of 0.35 per cent, but by 2024 this had fallen to just 0.19 per cent, highlighting the ongoing challenges the industry faces.

Improving connectivity

The decline in railway market share stems from multiple factors. One of the most significant is Vietnam’s outdated railway infrastructure. The country still primarily relies on a 1,000 mm gauge system that has been in place for more than a century. Despite ongoing efforts to upgrade and improve service quality, the railway network struggles to meet modern transportation demand, especially when neighboring countries have already adopted the 1,435 mm gauge. This disparity directly affects Vietnam’s railway connectivity, making it difficult for domestic freight transport to integrate with international rail networks.

Within the country, the lack of interconnectivity is even more evident, as the railway network remains largely disconnected from other modes of transportation such as aviation and waterway. This limitation reduces the railway’s role in the logistics chain, preventing it from maximizing its advantages. As a result, many transportation businesses still view rail as a secondary option despite its potential benefits.

With Vietnam’s economy targeting an annual growth rate of over 8 per cent, the development of transport infrastructure and the restructuring of transportation modes have become urgent priorities. The railway sector, in particular, needs to be recognized as a key pillar in reducing pressure on road networks and optimizing the country’s multimodal transport network.

To address these challenges, the government has introduced a Master Plan on the Railway Network for the 2021-2030 Period, with a Vision towards 2050, which focuses on selective development, prioritizing investments in key transport corridors with high demand while making full use of the existing network. It also outlines the construction of modern and well-integrated railway lines that connect seamlessly with seaports, airports, and major economic hubs.

A crucial aspect of this strategy is mobilizing capital from various economic sectors rather than relying solely on the State budget. While public investment will be directed towards building and upgrading railway infrastructure, the private sector is encouraged to participate in manufacturing locomotives and carriages, developing logistics services, and operating transportation systems.

The government is also aiming to establish a modern railway industry capable of maintaining self-sufficiency in equipment production and maintenance while promoting international cooperation to secure technology transfer. The plan emphasizes the application of Industry 4.0 advancements to optimize energy use, reduce environmental pollution, and enhance operational efficiency, ultimately transforming rail transport into a more intelligent and sustainable mode of transportation.

Back on track

Between now and 2030, the primary focus will be on renovating and upgrading the existing railway network while preparing for new routes. Efforts will be made to enhance safety and operational capacity across seven major railway lines, alongside investments in two high-speed rail sections on the North-South corridor. The government has also prioritized the development of railway connections to major seaports, including in Hai Phong in the north and in Ba Ria-Vung Tau in the south, as well as expanding rail links to international airports and key logistics hubs.

Looking ahead to 2050, the government aims to complete the North-South high-speed railway while continuing to expand railway networks connecting seaports, industrial parks, economic centers, and even the central highlands region.

The National Assembly recently approved several key resolutions that together mark a major shift for Vietnam’s railway sector. One of the most significant projects, the North-South high-speed railway line, has estimated investment of over VND1,713 trillion ($67 billion), while the Lao Cai-Hanoi-Hai Phong railway project is set to receive approximately VND203 trillion ($8.37 billion).

Resolution No. 188/2025/QH15, dated February 19, 2025, also introduces special mechanisms and policies to accelerate the development of urban rail networks in Hanoi and Ho Chi Minh City. Under the Resolution, during the 2026-2030 and 2031-2035 periods, the State budget will provide targeted financial support, with a maximum allocation of VND215.35 trillion ($8.3 billion) for Hanoi and VND209.5 trillion ($8.1 billion) for Ho Chi Minh City.

With these ambitious plans and strategic investments, Vietnam’s railway sector is set to undergo a significant transformation, playing a more prominent role in the country’s transportation and logistics landscape.

Seeking self-sufficiency

Vietnam is making comprehensive preparations to achieve a breakthrough in railway development, not only to enhance transportation infrastructure but also to create a vast market for the production of materials, equipment, and construction in the railway industry.

According to Mr. Tran Thien Canh, Director of the Vietnam Railway Authority, there is a significant demand for railway technology products. Specifically, the railway infrastructure construction sector requires 28.7 million meters of rail, 11,680 sets of switches, and 46 million sleepers.

From now to 2030, the railway sector will need an additional 15 locomotives and 26 narrow-gauge (1,000 mm) carriages, along with 250 locomotives and 1,760 standard-gauge (1,435 mm) carriages. By 2045, these numbers will increase substantially, reaching 150 locomotives and 160 narrow-gauge carriages as well as 2,000 locomotives and 10,144 standard-gauge carriages.

In terms of development strategy, by 2030, Vietnam aims to establish the capability to design locomotives and carriages through technology transfer, assembly, and the gradual localization of locomotives operating at speeds under 200 km/h. The railway sector also targets full domestic production of freight and passenger carriages with speeds under 120 km/h, achieving an 80 per cent localization rate. Notably, mastering the technology for manufacturing freight and passenger carriages under 200 km/h has been identified as a key priority.

Beyond rolling stock, the railway sector also aims to independently handle 90 to 95 per cent of the construction techniques for substructures and fully master the design and construction of superstructures for railway lines operating at speeds under 200 km/h. For high-speed rail, Vietnam seeks to participate in 50 to 70 per cent of the construction process, gradually enhancing its expertise in modern railway infrastructure development.

The production of railway materials and equipment is also being prioritized. The domestic metallurgical industry will focus on manufacturing P43 and P50 rails to international standard while mastering the maintenance and replacement of materials and spare parts for standard-gauge railways, urban railways, and high-speed rail.

Vietnam also aims to localize approximately 80 per cent of the power supply networks for locomotives and high-speed rail carriages, progressing towards full mastery of operations, maintenance, and spare part production.

With an ambitious vision for railway development, Vietnam is actively working towards self-sufficiency in vehicle manufacturing technology. By 2050, the country aims to fully master the design, construction, and operation of its railway network, including high-speed urban rail. Furthermore, acquiring and mastering railway signaling and communication technology is another crucial goal. Vietnam seeks to domestically produce 80 to 90 per cent of hardware components while fully developing software for communication and signaling systems.

Looking ahead to 2050, Vietnam’s vision is not only to build a modern railway network but also to take full control of all related technologies, from manufacturing rails and switches to international standards to self-sufficiency in railway electrification. With localization rates projected to reach 60 to 70 per cent across multiple sectors, the railway industry has a tremendous opportunity to rise and become a key pillar of the national economy.

 

* By 2030, the railway sector is expected to transport 11.8 million tons of cargo annually, accounting for 0.27 per cent of the total freight market, and carry 460 million passengers, equivalent to a 4.4 per cent market share

* Freight transport turnover is estimated at 7.35 billion ton-kilometers, making up 1.38 per cent of the market, while passenger turnover is expected to hit 13.8 billion passenger-kilometers, capturing 3.55 per cent of the market.

#box1744168716333{background-color:#c2d0c4}

-Minh Kiệt

The figure marking a 3.2-fold increase year-on-year.

Southern Binh Duong province attracted $630 million worth of FDI capital in the first quarter of 2025, a 2.3-fold increase compared to the same period last year, according to the provincial People’s Committee.

Of the total, industrial parks drew $588 million, up 32% year-on-year.

The province also lured VND31 trillion ($1.18 billion) worth of domestic investment.

Binh Duong also recorded impressive growth in other economic indicators in the first quarter. Its GRDP grew 7.5% year-on-year, Index of Industrial Production (IIP) surged 7.51%, and export revenue reached nearly $8.6 billion, soaring 8.8%.

Total revenue of retail sales of consumer goods and services stood at more than VND92.8 trillion ($3.55 billion), rising 13.8% year-on-year.

 

-Thanh Thủy

The fresh capital injection of VND2 trillion ($80 million) comes as UOB Vietnam also unveils plans for its new headquarters building in Ho Chi Minh City.

The United Overseas Bank Limited (UOB) announced on April 8 that it will increase the charter capital of its Vietnam subsidiary to VND10 trillion ($400 million). The fresh capital injection of VND2 trillion ($80 million) into UOB Vietnam is currently under review by the State Bank of Vietnam.

Once approved and completed, the capital injection will bring UOB Vietnam’s total charter capital to VND10 trillion ($400 million). UOB has made three capital injections into its wholly owned subsidiary in Vietnam since 2021. The latest injection means UOB Vietnam’s charter capital has doubled from its 2021 levels, making it the second-largest foreign-owned bank in the country in terms of charter capital.

Reaffirming its strong commitment to Vietnam, where UOB is the only Singaporean bank with a subsidiary, UOB Group will also invest in a new headquarters building for UOB Vietnam in Ho Chi Minh City. This new building will support the bank’s business growth and workforce expansion over the next five years. Strategically located in the city center, the headquarters aligns with the bank’s vision and the government’s goal of developing Ho Chi Minh City into an international financial hub. Designed with a future-oriented vision, UOB Vietnam Plaza will embody prosperity and sustainability while providing a modern, professional, and efficient workspace for UOB’s growing workforce in Vietnam.

With the completion of the headquarters in Vietnam, UOB Group will have local headquarters across all five of its key ASEAN markets—Singapore, Malaysia, Indonesia, Thailand, and Vietnam.

Mr. Wee Ee Cheong, Deputy Chairman and CEO of UOB, said: “UOB has established the most extensive footprint in Southeast Asia, and we have been part of the ASEAN growth story. Vietnam is a key market in our ASEAN strategy, and we are dedicated to deepening our presence here for the long term. The upcoming UOB Plaza in Vietnam is more than just a building — it epitomises our long-term commitment to the country. Having our own headquarters buildings in all five of our key ASEAN markets underscores our confidence in this region and our steadfast support for our customers and communities.”

Mr. Wee Ee Cheong, Deputy Chairman and CEO of UOB

Enhancing competitiveness and driving growth with Vietnam’s economy

With strong support from the Group, UOB Vietnam is strengthening its competitiveness and accelerating growth in digital banking to better serve both individual and corporate customers.

For the retail segment, the Bank is making significant investments in digital technology and artificial intelligence to develop a new digital banking platform, which is set to launch this year. This will enhance the banking experience and meet the growing demand for seamless digital financial transactions. The Bank is also strengthening its wealth and investment offerings, providing customers with more tailored financial solutions to grow and manage their assets effectively.

For corporate clients, UOB Vietnam is committed to supporting businesses across their supply chains, helping them seize new opportunities and advance their sustainability goals. Going forward, UOB Vietnam will continue to support foreign investment and local enterprises, facilitating growing trade and investment flows into Vietnam and contributing to the country’s economic growth ambitions.

Over the past five years, UOB’s Foreign Direct Investment Advisory (FDIA) unit, established in Vietnam in 2013, has supported more than 340 companies in expanding into the market. These companies have pledged investments of over S$8 billion ($5.92 billion) and are expected to create around 53,000 job opportunities in Vietnam.

UOB recently signed an MoU with the Investment and Trade Promotion Centre (ITPC) to attract high-quality FDI into Ho Chi Minh City and Southern Vietnam, particularly in key sectors such as high technology, green growth, sustainable development, infrastructure, digital transformation, and healthcare. This partnership reinforces the Bank’s commitment to supporting the city in attracting international investors and advancing its vision of becoming an international financial centre, in line with the government's direction.

As Vietnam advances its efforts to achieve its net-zero commitment by 2050, UOB remains committed to supporting green projects and driving the transition of the domestic economy. In Vietnam, UOB has financed 19 green projects across renewable energy, manufacturing, agriculture, and sustainable aquaculture, contributing to the Bank’s broader efforts in helping businesses on their transition journey. As of December 2024, UOB Group’s sustainable finance portfolio had grown by 43 per cent to S$58 billion ($42.92 billion), exceeding its original S$30 billion ($22.2 billion) target set for 2025.

Deepening support to the local community

In line with UOB’s commitment to making a positive impact in the communities it serves, and as part of its regional initiatives marking the Bank’s 90th anniversary, UOB Vietnam will continue to implement Corporate Social Responsibility (CSR) initiatives to address the needs of local communities. These include: (i) A five-year partnership with Saigon Children's Charity (2023–2027) to equip five computer rooms in schools across the Mekong Delta, benefiting over 2,000 students by enhancing their digital learning and computer skills; (ii) Partnering with a leading non-governmental organisation (NGO) in Vietnam to plant 10,000 trees in the Ca Mau mangrove forest over three years starting in 2025, contributing to climate action and environmental sustainability.

UOB Vietnam also participates in group-wide initiatives designed to empower and inspire communities by equipping them with essential knowledge and skills to progress and build resilience. These include: (i) A first-time partnership with a leading education technology (EdTech) platform to provide 90,000 children from underprivileged families across 60 cities in Southeast Asia, including Vietnam, with a head start in school. Through this platform, children in Vietnam will gain easy access to quality educational resources in areas such as coding, computational thinking, and digital literacy over the next three years; (ii) UOB My Digital Space Programme – a multi-year initiative aimed at bridging the digital divide for children from disadvantaged backgrounds across the region, connecting them to a world of digital learning opportunities. Since its launch, the programme has benefited about 38,000 students regionally. This year, as part of the UOB My Digital Space Programme, about 20,000 children from disadvantaged backgrounds across Southeast Asia will receive digital learning tools and skills, further equipping them for the future.

-Diep Linh

Freight and passenger transport up 15.4% and 17.6% year-on-year, respectively.

Transport services posted positive growth in the first three months of 2025, with year-on-year increase of 15.4% in cargo and 17.6% in passenger transport, according to the National Statistics Office under the Ministry of Finance.

Freight transport volume reached 715 million tons while the number of  transported passengers was estimated at over 1.41 billion.

Regarding cargo transport, transport by roads is the key growth driver, contributing 525.8 million tons or 73.5% of the total and surging 16.2% year-on-year.

The first quarter witnessed a strong recovery of the railway transport, with a total freight volume hitting nearly 1.45 million tons, up 11.8% year-on-year. Meanwhile, passenger transport by rail recorded an impress growth of 165.1% compared to the same period last year.

 

 

-Minh Kiệt

After a strong GDP growth of 7.1 per cent in 2024, Vietnam's economic expansion is expected to moderate to 6.6 per cent in 2025 and further ease to 6.5 per cent in 2026.

At a press conference announcing the Asian Development Outlook (ADO), held in Hanoi on April 9 by the Asian Development Bank (ADB) Vietnam Resident Mission,  ADB forecast that Vietnam’s GDP would grow by 6.6 per cent in 2025 and 6.5 per cent in 2026.

According to the report, global trade tensions may negatively impact Vietnam’s export-oriented manufacturing sector this year. Although Vietnam’s total import-export turnover in the first quarter of 2025 reached $202.52 billion, up 13.7 per cent year-on-year, the ADB projects that trade growth will slow to around 7 per cent in both 2025 and 2026.

The country’s industrial sector is forecast to decelerate, with growth estimated at 7 per cent only in 2025.

In addition, pressures from global geopolitical tensions, rising domestic consumption, and the government’s push to accelerate public investment disbursement are expected to drive inflation rate up to 4 per cent in 2025 and 4.2 per cent in 2026.

Forecasts on GDP growth and inflation rate of Vietnam in 2025 and 2026. (Sources: National Statistics Office of Vietnam and ADB's estimates).

According to Mr. Shantanu Chakraborty, ADB’s Country Director for Vietnam, strong trade performance, a rebound in export manufacturing, and robust foreign direct investment (FDI) inflows were the main drivers of Vietnam’s economic growth in 2024.

“However, the new US tariff policy and ongoing global uncertainties could pose significant challenges to Vietnam’s growth this year,” he stated.

Specifically, the international economic landscape is undergoing profound changes, with various risks such as escalating tariffs, retaliatory measures, the prolonged Russia–Ukraine conflict, and persistent instability in the Middle East.

Economic slowdown in two of Vietnam’s key trading partners, namely  China and the United States, may further impact the country’s economic outlook. These external headwinds could hinder the pace of global recovery in the short to medium term, particularly for export-reliant economies like Vietnam.

Regarding FDI trends, Mr. Nguyen Ba Hung, ADB’s Chief Economist in Vietnam, noted that the imposition of US tariffs on Vietnam’s export could cause hesitation among investors and slow their investment activities in Vietnam, thereby affecting FDI inflows in the near future.

In order to mitigate growth risks in 2025, Mr. Hung suggested Vietnam focus on stimulating domestic demand by increasing public spending on infrastructure, technology, and innovation. This approach would not only enhance the competitiveness of domestic enterprises but also strengthen Vietnam’s appeal to foreign investors.

ADB’s experts also recommended that Vietnam continue to enhance its value-added role in global supply chains to reduce economic risks. “Global supply chains involving FDI enterprises in Vietnam will form an important foundation for the country to diversify its export markets amid shrinking international demand,” Mr. Chakraborty remarked.

Furthermore, ADB experts acknowledged that the Vietnamese government has undertaken comprehensive institutional reforms to improve governance efficiency and promote economic growth. If these reforms are implemented more comprehensively, they will further support the development of the private sector, strengthen macroeconomic stability, and foster more sustainable growth for Vietnam in the medium to long term.

-Phuong Hoa

Vietnam Economic Times Issue 399 | Monday, April 07, 2025 .container-xxl, .detail__content {/*max-width: 100% !important;*/} .detail__content iframe[data-name="animatecc"] { width: 100% !important; overflow: hidden; position: relative; /*z-index: 99999;*/ max-height: 100vh; } .align-center-image { width: 1290px; max-width: 1320px; margin-left: -50% !important; } @media screen and (max-width: 720px) { .align-center-image { width: 100% !important; max-width: 100%; margin: 0 !important; } .detail__content iframe[data-name="animatecc"] { height: 100vh; } }

-Vietnam Economic Times - VnEconomy

The project spans approximately 11 ha in the central province's Nghi Son Town, impacting 117 households.

The Cong Thanh Cement Joint Stock Company  has been required to terminate its Golden Coast Resort Hai Hoa beach tourism project in the central province of Thanh Hoa, after nearly 19 years of failing to complete necessary documentation and implementation procedures.

The investment policy for the project was approved by the Thanh Hoa Provincial People's Committee in 2006.

The project spans approximately 11 ha in Hai Hoa Ward and Binh Minh Ward, Nghi Son Town, impacting 117 households, including 76 that required resettlement.

The project saw no implementation progress for many years since approved. 

In August 2016, the Provincial People's Committee granted an extension to the project’s timeline. The company committed to completing site clearance, land, and environmental procedures to start construction in October 2017 and put the project into operation by May 2019.

However, no further development materialized, leading to the termination of the project.

-Thiên Anh

In March 2025 alone, the capital city attracted $312.7 million in FDI.

Hanoi continues to affirm its status as an attractive destination for foreign investors, attracting $1.415 billion in foreign direct investment (FDI) capital in 2025’s first quarter, a 49.5% increase compared to the same period in 2024.

Specifically, 81 new projects were registered with a total capital of $29 million; 34 projects underwent capital increases, totaling $1.165 billion; and 83 instances of foreign investors contributing capital and purchasing shares amounted to $221 million.

In March alone, the capital city attracted $312.7 million in FDI. This includes 29 newly licensed projects with total registered capital of $9.1 million, nine instances of adjusted investment capital amounting to an additional $126.2 million, and 27 cases of foreign investors contributing capital and purchasing shares worth $177.4 million.

-Song Hoàng

The US remained the largest supplier of round wood to Vietnam, accounting for 16.5% of Vietnam's total round wood imports.

Vietnam boasts a robust wood processing and wooden furniture export industry; however, the output from domestically planted forest wood remains insufficient to meet demand, according to the Vietnam Timber and Forest Product Association (VIFOREST).

As a result, Vietnam imports a substantial volume of raw wood materials annually to support its wood processing sector.

In 2024, Vietnam's wood and wood product imports totaled $2.81 billion, with raw wood materials accounting for nearly $2.4 billion, or 85.2% of the total.

"In 2024, Vietnam imported $316.36 million worth of raw wood materials from the US market, an increase of 32.9% compared to 2023, accounting for 11.2% of total imported wood materials. The three primary items—sawn wood, round wood, and veneer—contributed $311.96 million to the total import turnover from the US, representing 98.6% of the timber imports from the US," stated Mr. Ngo Sy Hoai, Vice Chairman and General Secretary of VIFOREST.

Within the import structure, round wood and sawn wood continued to dominate, making up more than 50% of the wood industry's import value.

In 2024, Vietnam imported over 1.83 million cubic meters of round wood. Of this, imports from the US exceeded 303,300 cubic meters, worth $89.9 million, reflecting an increase of 41.4% in volume and 51.6% in value compared to 2023. The US remained the largest supplier of round wood to Vietnam, accounting for 16.5% of Vietnam's total round wood imports.

Additionally, the US was the leading supplier of sawn wood, providing 428,980 cubic meters worth over $215.3 million, up 20.8% in volume and 29.6% in value compared to 2023.

In the first quarter of 2025, the export value of wood and wood products reached $3.95 billion, an 11.6% increase compared to the same period in 2024, according to the Ministry of Agriculture and Environment.

 

-Chu Khôi

The total route length is approximately 32.3 km.

The People's Council of the northern province of Ninh Binh has issued Resolution No. 24/NQ-HĐND, approving investment policy for Phase I of a  road project, which will link the province with its neighbors of Thanh Hoa and Hoa Binh provinces. 

The over 32-km projected road will run through the province's districts of Kim Sơn and Yen Mo, and Tam Diep city, with a total investment capital estimated at VND6.939 trillion (nearly $268 million).

The project is scheduled for implementation between 2025 and 2028.

The road, also designated as phase II of the East-West Route, aims to connect Nga Sơn district in Thanh Hoa province, the districts of Kim Sơn, Yen Mo, and Nho Quan, and Tam Diep city in Ninh Bình province, and the Ho Chi Minh Highway in Hoa Binh province.

-Nguyễn Thuấn

A number of draft laws on tax matters recently went before the National Assembly Standing Committee for consideration and comment.

During its 43rd session on March 10 and 11, the National Assembly (NA) Standing Committee gave opinions on five draft laws, including the amended Law on Product and Goods Quality, the amended Law on Railways, the Law on Personal Data Protection, the Law on State of Emergency, and the Law on Participation in United Nations Peacekeeping Forces.

The Standing Committee also gave opinions on explaining, accepting, and revising three draft laws, including the amended Law on Special Consumption Tax (SCT), the amended Law on Corporate Income Tax, and the Law on Management and Investment of State Capital in Enterprises. These revisions are expected to play a crucial role in shaping tax policies that align with Vietnam’s ambitious goal of achieving double-digit economic growth in the years to come.

Aligning with growth targets

The proposed amendments to the Law on Corporate Income Tax have drawn significant attention, given their potential impact on businesses, the investment climate, and overall economic development. Recognized as highly-complex legislation, it directly affects the corporate sector, production, and the broader socio-economic landscape.

A recent report summarizing key feedback and revisions highlights several areas of consensus between the reviewing and drafting agencies. They agreed to incorporate recommendations from NA deputies on key issues, such as taxable entities, tax exempt income, tax assessment periods, deductible expenses, and tax rules for foreign organizations without a presence in Vietnam.

One of the most debated aspects of the amendment is a proposed provision that would allow real estate businesses to offset profits from property transactions (including project transfers) against losses from other business activities.

This has sparked concerns that such a mechanism could be exploited, enabling companies to minimize their tax obligations on real estate transactions by deliberately offsetting them with losses from unrelated business activities, some of which may be short-lived ventures registered solely for this purpose.

The NA’s Economic and Financial Committee has cautioned that such a provision could significantly reduce corporate income tax revenue from the real estate sector in the years ahead. To prevent potential loopholes and policy abuse, the committee has called for a thorough risk assessment.

During the discussions, Mr. Hoang Thanh Tung, Chairman of the Legal and Judicial Committee, emphasized that the draft law prioritizes corporate income tax incentives over other tax laws. He urged a comprehensive review of Vietnam’s existing legal framework to ensure consistency and clarity in tax policies.

NA Vice Chairman Nguyen Khac Dinh stressed the need for a holistic approach to tax reform. He pointed out that the current draft does not yet account for Vietnam’s economic growth targets of at least 8 per cent in 2025 and double-digit growth in subsequent years, as set by the Party Central Committee and the NA. He called for a reassessment to ensure tax policies effectively support these development goals.

NA Chairman Tran Thanh Man called for close collaboration between the Economic and Financial Committee and the drafting agency to conduct a comprehensive impact assessment, particularly regarding State budget revenue. “Tax policies must strike a balance - driving economic growth, maintaining macro-economic stability, controlling inflation, and ensuring social security,” he emphasized. “A thriving business sector is the backbone of national progress, and any tax reform must carefully consider its impact on State revenue. The goal is to sustain revenue streams, enforce fair and effective tax collection, avoid excessive taxation, and prevent tax evasion through policy loopholes.”

Reassessing excise tax policies

The NA is currently reviewing proposed amendments to the Law on SCT, with Chairman Man emphasizing the significance of these revisions, which have drawn widespread attention from the business community. He stressed that the amendment process must be thorough and well-founded, ensuring effective management while promoting economic growth.

As discussions continue on tax rates for tobacco, alcohol, sugary beverages, pickup trucks, and hybrid vehicles, the Chairman called on the Ministry of Finance and relevant agencies to engage further with ministries, the Vietnam Chamber of Commerce and Industry (VCCI), and business associations. He urged them to gather more data to support the proposed tax adjustments, with findings to be presented at the next NA session. He also requested a detailed assessment of how these tax adjustments would impact production volumes, pricing, and the proportion of tax within retail prices. Additionally, he emphasized the need for concrete evidence on how tax policies would affect consumption, ensuring a data-driven and well-substantiated report for the NA.

Speaking on the broader taxation strategy, he highlighted the importance of balancing public health protection with economic development. Tax policies, he noted, should not hinder normal business operations but instead align with international practices while remaining suitable for Vietnam’s economic conditions.

Several NA deputies expressed opposition to maintaining excise tax on fuel and air conditioners with a capacity below 90,000 BTU. Many argued that these products are no longer considered luxury items but essential household necessities. Standing Vice Chairwoman of the Committee on Petitions and Oversight Le Thi Nga pointed out that applying excise tax to these goods contradicts the tax’s original purpose, which is to target luxury products. She added that concerns over this issue had been raised multiple times in discussions but had yet to be adequately addressed.

Chairman of the Legal and Judicial Committee Hoang Thanh Tung also supported the removal of an excise tax on fuel and air conditioners. He noted that fuel is already subject to various taxes, including environmental protection tax, value added tax (VAT), and import tax, making an additional excise tax redundant. Regarding air conditioners, he pointed out that most households now own one or two units, making it unreasonable to continue taxing them as luxury goods. He called for a careful reassessment of the tax policy to reflect the changing nature of these products in modern households.

In a related development, the NA Standing Committee unanimously approved a government proposal to reduce land rental fees by 30 per cent for 2024, extending the policy implemented in 2023. This move is expected to have minimal impact on State budget revenue while providing significant support for businesses as they recover and expand operations. It is also seen as a key initiative in Vietnam’s broader economic strategy, aiming for at least 8 per cent growth in 2025 and double-digit growth in the following years.

-Nguyễn Tuyến

The US, China, and Japan remaining the largest importers.

Vietnam’s exports of agro-forestry-fishery products recorded an impressive growth in the first quarter of this year, with total revenue of $15.72 billion, up 13.1% compared to the same period last year, according to the Ministry of Agriculture and Environment.

Of the total, export turnover of agriculture reached $8.53 billion, increasing 12.2%; seafood $2.29 billion, up 18.1%; and forestry $4.21 billion, soaring 11.2%.

The US, China, and Japan remained the largest importers of Vietnamese agro-forestry-aquatic products, accounting for 20.2%, 17.3% and 7.7% of the total export value, respectively.

Key export products include coffee with export value of $2.88 billion, up 49.5% year-on-year; pepper $323.6 million, jumping 37.3%; rubber $765.8 million, soaring 26.1%; and cashew nuts $841.1 million, up 4.3%.

 

-Chu Khôi

The 2024 index assessing the implementation of Free Trade Agreements (FTAs) by localities and businesses nationwide.

The 2024 FTA Index which assessed the implementation of Free Trade Agreements (FTAs) by localities and businesses last year was announced in Hanoi on April 8 with the presence of Prime Minister Pham Minh Chinh and many other senior officials.

This is the first FTA Index created by the Ministry of Industry and Trade in coordination with relevant ministries and agencies.

The FTA Index is based on four main pillars: FTA dissemination and advocacy; implementation of legal regulations on FTAs; support policies to enhance competitiveness; and the implementation of commitments on sustainable development.

The top 10 localities leading the country in terms of FTA Index score in 2024 are: Ca Mau, Thanh Hoa, Binh Duong, Khanh Hoa, Tra Vinh, Long An, Ha Giang, Bac Lieu, Ninh Binh, and Dien Bien.

To date, Vietnam has signed and implemented 17 FTAs with more than 60 partners on all the five continents.

Addressing the announcing ceremony, Prime Minister Pham Minh Chinh said the FTA Index, based on business surveys across 63 provinces and centrally-run cities nationwide, aims to provide transparent and objective data for the Government, central agencies, and local authorities to guide, monitor, and manage economic integration. It will also serve as a foundation for policy formulation and local development strategies, contributing to sustainable export growth.

PM Chinh stressed that the effective implementation of the FTAs is not only about fulfilling international commitments but also serves as a catalyst for domestic reform, market expansion, and better economic competitiveness.

The government will continue to optimize the FTAs' advantages, strengthen international commitments, expand markets, pursue new trade agreements with potential partners, and diversify markets and supply chains, the PM noted.

 

 

-Vũ Khuê

The proposed capital adjustment seeks to raise from $267 million to approximately $365.4 million.

The Ministry of Construction (MoC) has submitted a proposal to the Ministry of Finance to adjust the total investment Capital for the component project 1A of the Tan Van - Nhon Trach section construction project (phase 1), part of Ho Chi Minh City’s Ring Road 3.

The proposed adjustment seeks to raise the investment capital from VND6.955 trillion ($267 million) to approximately VND9.268 trillion ($365.4 million), sourcing from Official Development Assistance (ODA) funds.

According to the MoC, the project employs ODA loans from the South Korean government. The initially adjusted investment capital, as approved by the Prime Minister in January 2020 and then revised in April 2022,  set at approximately VND6.955 trillion.

The project spans a total of 8.75km with a design speed of 80 km/h, featuring four motorized lanes and two mixed traffic lanes.

Within the initial investment plan, the ODA loan was set at over $190.77 million, complemented by a counterpart fund of over VND2.779 trillion ($106.8 million).

The implementation period is scheduled for five years, from September 2020 to September 2025, following the effective date of the loan agreement.

The MoC emphasized that adjustments to the project’s scope, including additional investments in specific construction items, are essential to ensure that the section operates at expressway standards. These adjustments align the project with other components of Ring Road 3 and have led to an increase in the total ODA loan amount.

As a result, the preliminary adjusted total investment has increased by approximately VND2.312 trillion (over $88.8 million), requiring the project’s ODA loan capital to increase from $190 million to $262 million.

-Thanh Thủy

According to newly released data from the General Statistics Office (GSO), Vietnam’s Gross Domestic Product (GDP) in the first quarter of 2025 grew by 6.93% year-on-year and this is the highest Q1 growth rate recorded during the 2020 - 2025 period.@media (max-width: 768px) { .detail__content iframe[data-name="webhtml"] { border: 1px solid #ccc !important; width: 100% !important; min-height: calc(100vh + 200px) !important; } } @media (min-width: 800px) { .detail__content iframe[data-name="webhtml"] {width:1024px; height:680px;} }

-Vietnam Economic Times/ VnEconomy

The event, taking place between April 14-17, will be the largest multilateral high-level summit on green growth that Vietnam will host during the 2021-2026 period.

Vietnam will host the 4th Partnering for Green Growth and the Global Goals 2030 Summit in 2025 (the P4G Vietnam Summit 2025), under the theme “Sustainable and People-Centered Green Transition”,  in Hanoi from April 14 – 17.

This will be the largest multilateral high-level summit on green growth that Vietnam will host during the 2021-2026 period.

Speaking at a press conference on April 8 announcing the summit, Standing Deputy Minister of Foreign Affairs Nguyen Minh Vu emphasized that the event will demonstrate Vietnam’s role, responsibility and contributions to P4G and the collective efforts to promote green growth and sustainable development at national, regional, and global levels.

No country can address climate challenges alone. International and regional cooperation is essential, the Deputy Minister said, adding that the summit aims to raise awareness about sustainable development while facilitating the sharing of experiences, resources, and public-private partnerships to advance green growth initiatives.

According to the Deputy Minister, Vietnam had been significantly affected by climate change and has taken progressive steps toward environmental protection and sustainable development. The country had committed to net-zero emissions by 2050, and reducing greenhouse gas emissions by 30 per cent by 2030, and had implemented various policies to balance economic growth with environmental protection, he said.

“Therefore, I hope that through this summit, Vietnam will gain access to valuable experiences, effective models, and practical lessons from other countries, international organizations, and leading experts in the fields of green growth and sustainable transition,” the Deputy Minister added.

The summit will begin with sideline activities on April 15-16, organised by the P4G Secretariat, including a Global Advisory Forum and investment promotion events for startups.

The main summit activities on April 16-17 will feature seven key events chaired by Vietnamese Prime Minister Pham Minh Chinh.

Approximately 600 international delegates from 40 countries and international organisations have confirmed their attendance, both in-person and virtually, including representatives from P4G member countries and partner organisations.

Participants will include government officials, investment fund representatives, businesses and start-ups in climate fields, and international organisations focused on sustainable development.

It is expected that the Summit will adopt outcome documents, including the "Hanoi Declaration on P4G", which will affirm commitments to sustainable development centred on people and responsible action to address global challenges.

-Phương Nhi

International organizations have noted what lies ahead as Vietnam works to reach ambitious growth targets set for 2025 and beyond.

The World Bank (WB)’s March edition of its Taking Stock report forecasts Vietnam’s real GDP growth at 6.8 per cent this year and 6.5 per cent next year. The main uncertainties in its growth outlook stem from slower-than-expected global growth and trade disruptions, particularly among Vietnam’s major trading partners.

“Vietnam is projected to maintain robust economic growth over the next two years, but it can use its fiscal space to better prepare for heightened uncertainties,” said Ms. Mariam J. Sherman, World Bank Director for Vietnam, Cambodia, and Lao PDR. “Growth-enhancing public investment, especially in urban, transport, and energy infrastructure, will be critical, provided authorities can scale this up and ensure that spending is efficient.”

Indicators slowing down

Vietnam’s trade activities in 2025 are expected to slow, with a potential decline to follow in 2026. Exports are projected to grow 12.1 per cent this year, while imports are forecast to rise by 12.7 per cent. While still representing handsome growth, this short-term slowdown in trade is primarily attributed to weakening demand from Vietnam’s two largest trading partners, China and the US, along with global trade uncertainties amid potential adjustments in trade policies.

Regarding inflation, the WB cautions that while inflation remains below the target, Vietnam should continue to exercise prudence. Stabilized food prices have helped keep inflation under control in 2024, with projections indicating it will remain at 3.5 per cent in 2025-2026, under the government’s limit of 4.5-5 per cent this year. Notably, despite ongoing conflict in Ukraine and the Middle East, crude oil prices are expected to fall further, contributing to inflation control.

Foreign investment and trade will continue to be key drivers of Vietnam’s economic growth over the next two years. FDI inflows are expected to remain stable in the short to medium term, supported by strong interest from international investors. With sustained FDI attraction, the WB forecasts that disbursed FDI in Vietnam could reach $25 billion in 2025.

Despite the slowdown in several economic indicators this year, Vietnam remains one of the fastest-growing and most-dynamic economies in Southeast Asia, according to Mr. Andrea Coppola, WB Lead Economist for Vietnam. “The government’s ambitious target of 8 per cent GDP growth in 2025 is entirely achievable, provided that global economic conditions remain favorable, policy support is robust, and Vietnam strengthens cooperation with its key trading partners,” he emphasized.

Rising uncertainties

While Vietnam’s economic outlook remains positive, the WB warns that the country will face three escalating uncertainties in 2025 and beyond.

First, trade-distorting policies implemented by some Southeast Asian countries, such as higher tariffs and measures that increase production costs in Vietnam, have been in place since 2015 and are continuing to rise. These policies not only affect the business environment but also pose risks to Vietnam’s GDP growth both this year and in the long term.

Second, the global economy may grow at a slower-than-expected pace, particularly in Vietnam’s key trading partners such as the US, China, and the EU. Shifts in trade policies, coupled with deepening fractures in international trade relations, could negatively impact Vietnam’s exports, especially in the manufacturing and processing sectors. This would not only affect industrial output but also challenge the country’s overall growth trajectory.

Finally, the recovery of the domestic economy, particularly the real estate sector, remains sluggish. Though the number of real estate projects have shown signs of improvement since late 2024, the pace of recovery has yet to reach pre-pandemic levels. This impacts market sentiment, affects investment flows, and creates certain pressure on economic stability in the time to come.

Additionally, Mr. Coppola noted that while Vietnam’s economy is expected to continue its rapid growth this year, there are significant issues to monitor. The most concerning is weakening external demand, with one of the clearest indicators being the slowdown in export growth. In the first two months of 2024, Vietnam’s export turnover saw a nearly 20 per cent increase year-on-year, but this pace slowed considerably in the same period this year, falling to just 8 per cent.

Weaker demand is also reflected in Vietnam’s Manufacturing Purchasing Managers’ Index (PMI). “The PMI in January stood at 48.9, down from 49.8 in December,” Mr. Coppola added. “Though it edged up slightly in February, to 49.2, it remains below the 50-point threshold.”

Appropriate policies

According to a report from AFA Capital, in order for Vietnam to achieve its targeted GDP growth of 8 per cent this year, investment activities, both public and private, must be accelerated compared to 2024 to spur economic momentum. Specifically, total public investment must reach VND875 trillion ($35 billion), a 28 per cent increase from 2024, while private investment needs to hit VND2,300 trillion ($92 billion), up 7.7 per cent, and FDI $28 billion, up 9.4 per cent.

At the same time, other key economic indicators must be maintained, such as domestic consumption growth exceeding 12 per cent and net exports rising 12 per cent. These factors will help strengthen Vietnam’s foundation for sustainable growth throughout the year.

To realize these targets and meet the projected GDP growth rate for 2025, AFA Capital’s report outlined several critical policies that Vietnam must implement. These include promoting public investment and credit growth, streamlining administrative procedures through a “one-stop” mechanism, encouraging private sector investment, improving the legal framework, optimizing the administrative apparatus, accelerating major projects, and enhancing coordination between central and local governments through specialized conferences.

Further analyzing policy directions, the WB also emphasized the need for Vietnam to improve the efficiency of fiscal policies, accelerate public investment disbursement, and focus on both the scale and quality of public investments. In particular, the country should prioritize sectors that have a significant impact on economic productivity, such as transport infrastructure, energy, and human resources development.

Lastly, controlling inflation is considered a crucial factor. According to Mr. Coppola, in addition to targeting 8 per cent GDP growth in 2025, Vietnam also aims for double-digit growth in subsequent years. Closely monitoring inflation trends and implementing appropriate measures to maximize the economy’s potential are therefore essential.

 

 

-Phương Nhi

Q1 GRDP rose by 6.72% year-on-year, surpassing the 4.84% increase recorded in Q1 2024 and exceeding the planned growth scenario for Q1 2025.

The central province of Quang Tri has recorded GRDP growth rate of 6.72% in the first quarter of 2025, surpassing the 4.84% increase recorded in Q1 2024, and exceeding its planned growth scenario for the first quarter of this year, thanks to strong performances across all sectors. This achievement significantly contributes to the province's annual growth target of 8% or more.

The agriculture, forestry, and fishery sector expanded by 6.35%, with the forestry sub-sector leading the charge with a remarkable growth rate of 19.81%. The logging industry also surged by 33.16%, driven by rising demand for wood exports. Agriculture grew by 2.73%, bolstered by a 3.90% increase in live weight livestock output.

The industry and construction sector recorded a 6.38% increase, outpacing the 4.60% growth observed in Q1 2024. Signs of recovery in the processing and manufacturing industry contributed to a 4.89% growth rate, while electricity production and distribution saw impressive growth of 13.86%. Construction maintained a strong performance with a growth rate of 6.81%.

The service sector experienced robust growth, rising by 7.29% compared to the same period last year. Market service industries, including wholesale and retail, financial services, banking and insurance activities, and information and communication, all recorded significant gains.

-Nguyễn Thuấn