The national flag carrier now operates six routes between Vietnam and China, with a total of 40 flights per week.

To address the growing demand for travel between Vietnam and China, Vietnam Airlines has officially launched a direct route connecting Ho Chi Minh City to Beijing’s Daxing International Airport, which is considered as the largest airport in the world.

According to Vietnam Airlines, the inaugural flight, VN516, departed from Ho Chi Minh City at 00:45am on March 30 (local time) and arrived at Daxing International Airport at 06:30am on the same day (local time). In the reverse direction, flight VN517 departed Daxing at 08:30am (local time) and touched down at Tan Son Nhat International Airport at 12:25pm on the same day.

The national flag carrier will operate five return flights per week on the new route, on every Monday, Wednesday, Thursday, Friday, and Sunday, using Airbus A321 aircraft.

With its launch, Vietnam Airlines now operates six routes between Vietnam and China, with a total of 40 flights per week, linking major cities such as Hanoi and Ho Chi Minh City with Beijing, Shanghai, and Guangzhou.

According to the National Statistics Office, in 2024, Vietnam welcomed over 3.7 million Chinese visitors, marking a 214% increase compared to 2023 and solidifying China as Vietnam's fastest-growing inbound tourist market of the year.

-Đan Tiên

"The development of the financial center is one of the strategic spearheads to help transform the growth model, improve resource utilization efficiency, and strengthen Vietnam's position on the international stage," Minister of Finance stated.

"The year 2025 is considered a pivotal year in the Socio-Economic Development Strategy, as it is the final year of the 2021-2025 plan, and a strategic stepping stone for the accelerated period of 2026-2030, aiming to turn Vietnam into a country with a modern industry and upper-middle income by 2030, and a developed nation by 2045," stated Minister of Finance Nguyen Van Thang.

To achieve this ambitious goal, Vietnam has identified the development of the financial center as one of its strategic priorities, serving as a breakthrough in institutional development at the national level, the minister spoke at the "Building a financial center in Vietnam" conference, held in HCM City on March 28.

"The development of the financial center is one of the strategic spearheads to help transform the growth model, improve resource utilization efficiency, and strengthen Vietnam's position on the international stage," emphasized Minister Nguyen Van Thang.

Meanwhile, Chairman of the Ho Chi Minh City People's Committee Nguyen Van Duoc affirmed that Ho Chi Minh City is well-positioned to take on a leading role in this strategy.

The city boasts a dynamic and internationally integrated economy, contributing approximately 15.5% of Vietnam's GDP, accounting for more than 25.3% of total national budget revenue, and nearly 11.3% of the country's export turnover, according to the Chairman of the municipal People's Committee.

HCM City is the largest trade, service, and financial hub in Vietnam, housing the headquarters of numerous banks, credit institutions, securities companies, fund management firms, and significant domestic and foreign investors, he further explained.

Minister Thang added that while the concept of a financial center is not new globally, for Vietnam, it is an unprecedented initiative. He stressed the importance of a balanced approach: "Vietnam will learn by doing, without being hasty but also without being overly perfectionist, to avoid missing opportunities."

-Minh Huy

The assets under management of securities investment funds remain modest relative to their potential, representing just 6.5% of Vietnam's GDP, compared to 21% in Thailand and 52% in Malaysia.

Vietnam's fund industry still has significant room for expansion, as the total assets under management (AUM) of fund management companies only account for about 6.5% of GDP, significantly lower than in other countries in the region.

This was emphasized by Minister of Finance Nguyen Van Thang at the "Investment Funds and Foreign Investment in Vietnam’s new era of development" conference held on March 28.

A report from the Ministry of Finance stated, "To date, the total value of assets managed by securities investment funds is still modest compared to the potential, accounting for only 6.5% of GDP, while Thailand stands at 21% and Malaysia at 52%."

The number of individual investors in the Vietnamese stock market currently accounts for a large proportion. The majority of this group participates in the market by buying and selling themselves, engaging in short-term speculation rather than investing in professional funds. This situation makes the market unstable, easily affected by herd mentality, and does not ensure long-term investment orientation, according to the report.

The Ministry of Finance stated that it will promote the development of the investment fund system through: (i) diversifying types of investment funds, stock indices, and products suitable for the needs and risk appetite of investors; (ii) diversifying distribution channels, creating motivation for fund management companies to establish new investment funds in the market; (iii) researching and reviewing tax policies for securities investment fund types in accordance with the nature of the investment fund's operations to promote investment through these professional financial institutions.

At the conference, Mr. Thang stated that with the goal of achieving GDP growth of over 8% in 2025, creating momentum for annual double-digit growth in the period 2026-2030, the total social investment capital in 2025 is expected to reach about $174 billion, of which private investment accounts for $96 billion, a sharp increase compared to the $80 billion in 2024.

To achieve this goal, it is essential to mobilize to the maximum and efficient use of financial resources, both domestic and foreign, to support rapid and sustainable growth.

-Hoàng Lan

Mr. Luke Nieuwenhuis, Amway’s Chief Sales Officer and Regional President of Southeast Asia and India, tells Vietnam Economic Times / VnEconomy about the company’s ongoing commitment to sustainability, its market approach, and the importance of community and values-driven business operations in Vietnam. Mr. Luke Nieuwenhuis, Amway’s Chief Sales Officer and Regional President of Southeast Asia and India

Could you kindly share your journey with Amway and what inspired you to join the company?

I joined Amway in 2004, and it’s been over 20 years now. Before joining, I had always heard about Amway but never had the chance to fully understand the company until I interviewed for a position. What intrigued me most at that time was the opportunity to work for a company with global potential. The person who hired me is now the CEO of Amway, and I was truly impressed by the people working here. For me, Amway is a company built on a strong foundation, with enduring core values and a clear purpose of helping people.

With your extensive experience in global markets, what factors have contributed to Amway’s success in Vietnam?

Over the past 20 years, I’ve worked across multiple markets, including Asia-Pacific, Europe, Latin America, and of course, the Americas. My roles have ranged from technology, corporate strategy, and supply chain to sales. In my current role, I directly oversee markets like Vietnam, Malaysia, Singapore, Indonesia, and India, supporting local leadership, such as the current director in Vietnam, to meet the unique needs of each market.

Vietnam is a rapidly growing market, driven by a youthful and dynamic population. This creates fertile ground for health, beauty products, and entrepreneurial opportunities. The combination of consumer demand and an entrepreneurial spirit has contributed to Amway’s success in Vietnam.

Could you share Amway’s development and expansion plans for Vietnam?

We always have long-term, medium-term, and short-term plans for each market. Amway has officially launched our Health and Wellbeing strategy and Morning Nutrition product solution, featuring protein, probiotics, and essential nutrients. We are proud to unveil the new eSpring Water Purifier, an upgraded version of the world’s best-selling home water treatment system (according to the Verify Markets Report, 2022), further enhancing our comprehensive product ecosystem designed to support every household.

In Vietnam, Amway takes pride in our professional team, which ensures product quality, service, and website performance. Especially, our strong relationship with the Vietnamese government, coupled with solid distribution partnerships, provides a solid foundation for our sustainable growth in this market. Moving forward, we are committed to strengthening and expanding this cooperation.

In recent years, sustainability and corporate social responsibility have become major concerns for consumers. What commitments and actions has Amway taken to promote sustainability in Vietnam and Southeast Asia?

Sustainability has always been a key element in Amway’s strategy since our inception. The company takes great pride in its social responsibility and pioneering efforts in setting sustainability standards.

Amway is committed to using resources responsibly and developing environmentally friendly products that meet consumer needs while contributing to global sustainable development. The company is also a pioneer in organic farming, owning farms that cultivate plants and botanicals that serve as key ingredients for our nutritional supplements.

In addition, Amway places a strong emphasis on charitable activities, from global social responsibility programs to local community support projects. In Vietnam, these programs have been highly effective. Sustainability is not just a goal for us; it is a mission, ambition, and a guiding principle embedded in all of Amway’s activities.

Furthermore, Amway Vietnam has announced a strategic partnership with the National Institute of Nutrition, marking a significant step in Amway’s global Health and Wellbeing strategy. In 2025, we will launch a community initiative in collaboration with the Ho Chi Minh Communist Youth Union to foster a greener and more sustainable future.

Mr. Luke Nieuwenhuis, Amway’s Chief Sales Officer and Regional President of Southeast Asia and India

As an American company, how has Amway tailored its approach to the consumer market and needs in Asia, especially in terms of nutritional products?

Amway has conducted in-depth research on the Asian market from the very beginning, particularly regarding consumer demand for skincare, personal care, and nutritional supplements. After expanding into Malaysia, one of our long-standing markets, we continued to develop products that align with the needs of consumers in neighboring markets such as Korea, China, and Southeast Asia. Our products are always designed to meet the specific requirements of each country.

Southeast Asia is a region with a young population and a rapidly developing economy, with high demand for health and wellbeing products. Young consumers in the region tend to be ambitious and often look for business opportunities. However, the nutritional supplement market is complex, as each country has its own requirements for ingredients and dosages in products. Naturally, Amway continuously studies and develops products to meet the needs of consumers in each market.

For instance, our flagship product, Double X, is a nutritional supplement that has been adjusted in formulation to meet specific country standards. We are always ready to modify certain ingredients or dosages to comply with local regulations while ensuring the highest quality. This reflects our commitment to providing the best products for consumers in every market.

We will continue to seize opportunities in the Southeast Asian market to contribute to Amway’s global vision.

Amway’s slogan for Expo 2025 in Ho Chi Minh City is “Health Leads to Success.” Could you share the significance of this slogan and Amway’s mission in enhancing the health and quality of life for the people of Vietnam?

We believe that Amway’s impact is multidimensional. It’s not just about providing business opportunities, it’s also about helping personal development, and improving health and wellbeing. Our distributors gain confidence in their business and life by learning skills like public speaking, product demonstrations, and developing a positive mindset.

A key slogan we live by is “We before me,” meaning the success of each individual contributes to the collective success of the community. Success, for us, is not solely measured by revenue or retention rates but by the meaningful impact we make in people’s lives. Even if someone uses our products for a short time and doesn’t continue as a distributor, they still benefit from personal growth, and that’s a form of success in itself.

After the pandemic, people have shown a tendency to seek core values through a balance between mental and physical health. Could you share more about how consumer behavior shifted in this regard?

Post-pandemic, people worldwide, including in Vietnam, are increasingly concerned with balancing mental and physical health. The pandemic has heightened issues such as anxiety, depression, and loneliness, which have deeply affected health and social habits. Excessive smartphone and technology use is detrimental to health, posing a significant challenge.

While Amway cannot solve these issues alone, we aim to contribute to changing awareness and building a supportive community to achieve shared goals. Our company’s mission is to foster that kind of community, which is essential for overall health.

Vietnam’s direct selling industry, still in its early stages, faces significant challenges. What solutions is Amway implementing to maintain and enhance its competitive advantage in Vietnam?

I believe that the direct selling industry, of which Amway is a part, is essential to economic development, but it requires careful attention to ensure that the business stays true to its core values and original mission. Some companies have struggled to ensure their distributors remain aligned with the mission, negatively impacting the entire industry, including companies like Amway.

However, Amway has remained steadfast in its commitment to core values, such as personal worth, responsibility, integrity, and partnership, not only with distributors but also with the government. The company aims to be a model of ethical and effective business practices.

As the Regional President for Southeast Asia and India, what strategies will you focus on to help Amway continue to thrive, especially in the digital age with changing consumer habits?

I hold two main roles at Amway: Chief Sales Officer, where I collaborate with all Amway markets, and Regional President of Southeast Asia and India - markets I am familiar with and have worked closely with throughout my tenure.

I will answer this question from the perspective of the Chief Sales Officer. At Amway, we will continue to strengthen our digital presence by focusing on enhancing our e-commerce platforms, optimizing the entire digital experience, and leveraging AI-driven personalization and insights. Understanding shifting consumer habits and needs requires deep data insights, and we will continue to focus our efforts on leveraging these tools. We will also expand our focus on digital training, social selling tools, and content creation to help support our Amway Business Owners in building and growing their businesses.

A key point you’ve highlighted is Amway’s partnership with the Vietnamese government and the companuy’s mission in the country. What message would you like to convey to your partners in the Vietnamese market?

What I would like to emphasize is that Amway’s core values remain unchanged. These values are our foundation and have guided Amway for 65 years, serving as a promise to business owners and customers around the world. One of the values is partnership, built on trust, respect, and the recognition of the complementary skills necessary to achieve shared success.

This is the cornerstone of our enduring “legacy” and the key to our future. We are a people-driven company, and this is evident in everything we do. We are committed to helping individuals build a better life for themselves and others, whether through improving their health, offering business opportunities, or fostering personal development.

We deeply value our relationship with the Vietnamese government and look forward to continuing our partnership in fostering economic growth, supporting entrepreneurs, and serving communities across Vietnam.

-

In 2024, UTI began investing in its Vinh Phuc project with an initial phase valued at $35 million.

The Management Board of Industrial Parks in the northern province of Vinh Phuc recently hosted a signing ceremony for a cooperation agreement between CNCTech Group and UTI Vina Vinh Phuc Co., Ltd. to implement a $105 million electronics manufacturing investment project in the province.

CNCTech, a leading Vietnamese corporation in supporting industry manufacturing, is a key investor and developer of industrial infrastructure in the province, with an industrial land fund exceeding 600 ha.

Meanwhile, UTI Vina Vinh Phuc Co., Ltd., a 100% foreign-invested enterprise from South Korea, specializes in manufacturing electronic components and delivering high-tech products and solutions to major global electronics corporations.

Prior to investing in Vinh Phuc, UTI Inc. established UTI Vina in Diem Thuy Industrial Park, Thai Nguyen, in 2016.

In 2024, UTI began investing in its Vinh Phuc project with an initial phase valued at $35 million. Currently, the company is expanding the second phase of the project, totaling $105 million.

During the signing ceremony, Chairman of the Provincial People's Committee Tran Duy Dong emphasized the significance of this investment project, noting its alignment with Vinh Phuc's planning and industrial development orientation. He highlighted its contribution to the province's advancement, particularly in the electricity and electronics sectors.

-Bạch Dương

Efficient credit allocation is central to controlling inflation and ensuring banking system safety.

Economists and experts told the “Vietnam Credit Spotlight 2025” conference held by SP Global Ratings and FiinRatings in Hanoi on February 27 that maintaining sustainable growth and ensuring financial market stability are not only urgent requirements amid the ongoing global economic volatility but are also essential foundations for Vietnam’s long-term development goals.

The government has set a target of 8 per cent GDP growth in 2025, laying the foundation for double-digit growth between 2026 and 2030. Given that Vietnam’s economy remains heavily reliant upon the banking system for capital, the allocation of credit will play a critical role. To achieve growth of 8 per cent or more, credit growth must reach at least 16 per cent, equivalent to an additional VND2,500 trillion ($100 billion) in new capital this year. The key question is: Which sectors should this amount be directed towards to ensure inflation is controlled and bad debts managed?

Concerns about capital absorption

Mr. Louis Kuijs, Chief Economist for Asia Pacific at SP Global Ratings, noted that during his years working in Asian economies he has observed that credit growth does not always go hand-in-hand with inflation. What matters most is how credit is allocated and its overall quality.

Experts believe that as Vietnam enters 2025, its economy faces multiple challenges despite signs of recovery in 2024. The economic outlook for this year presents a mixed picture, with both growth drivers and headwinds. While several industries continue to expand, exports may come under pressure due to global economic uncertainties.

One major concern is the risk of a global economic slowdown driven by escalating geopolitical tensions, particularly the prospect of a “Trump 2.0” administration with stricter tariff policies. The restructuring of international trade relationships, coupled with the US Federal Reserve (Fed)’s slower-than-expected rate cuts, could significantly impact Vietnam’s key export markets, including the US, Japan, China, and Europe.

Additionally, exchange rate fluctuations and Vietnam’s foreign exchange reserves, now at their lowest level in five years, could put pressure on monetary policy, especially during periods of high foreign currency demand. This may affect corporate profitability as inflationary and interest rate pressures continue to rise. These challenges could negatively impact the capital absorption capacity of businesses in the manufacturing sector.

However, there are also notable bright spots. Vietnam maintains a relatively low public debt-to-GDP ratio, estimated at around 37 per cent in 2024. The government is actively steering the economy by boosting public investment, advancing institutional reforms, and attracting FDI into high-tech industries. In 2025, the government plans to allocate VND870 trillion ($34.8 billion) to public investment while addressing legal bottlenecks to unlock the real estate market.

Analysts expect these measures to help restore confidence in the private sector, driving investment and consumption growth in the time ahead.

Real estate companies facing risks

Mr. Ivan Tan, Director of Financial Institution Ratings at SP Global Ratings, forecasts that with the government’s efforts to improve the regulatory framework for businesses, the real estate and corporate bond markets could see a recovery in 2025. Long-term reforms, such as amendments to the Land Law 2024, are expected to stimulate real estate activity, positively impacting asset quality and expanding bank balance sheets. However, he noted that Vietnam remains a market characterized by highly-cyclical credit growth and asset prices, posing unique risks to the banking system.

While Vietnam’s macro-economy maintains positive momentum, Mr. Xavier Jean, Managing Director of Corporate Ratings at SP Global Ratings, told the conference, real estate companies around the country will face increasing challenges in posting sustainable revenue growth and profit margins in the years to come. Previously, many real estate companies prioritized market expansion over profit optimization, taking advantage of low capital costs. However, intensifying competition and trade uncertainties could add pressure to business operations.

The financial leverage of Vietnamese real estate companies remains moderate overall but has risen rapidly among large corporations, particularly multi-industry conglomerates. “The growing divergence in credit quality makes larger companies more vulnerable to economic shocks, refinancing risks, and shifts in market sentiment,” he said. “If a financial crisis were to hit a major conglomerate, contagion risks could spread across the corporate sector and banking system, similar to the real estate crisis of 2021-2023.”

According to SP Global Ratings experts, local real estate companies still face higher refinancing risks than their regional counterparts. Their heavy reliance on short-term debt makes them more susceptible to liquidity fluctuations, while the domestic bond market remains underdeveloped and access to foreign capital is hindered by multiple barriers.

Banking sector prospects

Mr. Nguyen Anh Quan, Senior Manager in Charge of Financial Institution Ratings at FiinRatings, said Vietnam’s banking regulatory policies in 2025 will focus on two main priorities. First, promoting credit growth to stimulate the economy and ensuring capital flows into priority sectors, and second, enhancing risk management by tightening the regulatory framework and guiding banks in controlling credit risks related to guarantees and off-balance sheet commitments.

Additionally, certain policies allowing loan restructuring in specific cases will help reduce the sector’s bad debt ratio. However, the decision not to extend Circular No. 02/2023/TT-NHNN dated April 23, 2023, also reflects the government’s efforts to improve transparency in the banking system. However, Mr. Quan cautioned that overly rapid loan growth could increase pressure on asset quality, which has shown no significant improvement in recent quarters.

“One major concern is that many banks still have thin capital buffers,” said Mr. Ketut Ariadi Kusuma, Senior Financial Sector Specialist at the World Bank, while recommending that both the government and commercial banks adopt measures early to address this issue.

In the near term, experts predict that, in 2025, commercial banks may continue paying dividends in shares rather than cash to maintain internal capital sources for credit growth. Mr. Tan noted that SP Global Ratings assesses the overall outlook for Vietnam’s banking system in 2025 as stable, but with clear differentiation. Large joint stock commercial banks and State-controlled banks are expected to maintain their leadership in profitability and financial strength, while smaller banks will face challenges related to capital and asset quality.

 

"We forecast that the second half of 2025 will be a crucial period, with the retail sector expected to see significant improvements and the real estate market entering into a new phase in its recovery cycle. Supported by the government’s growth policies, we believe the banking sector can maintain stability in the immediate future. As a result, similar to previous years, many banks may exceed the 16 per cent credit growth target in 2025."

Mr. Nguyen Anh Quan, Analyst and Manager of Financial Sector Ratings, FiinRatings.

#box1743380342884{background-color:#87a572}

-Hoang Lan

About 1,500 projects across the country are currently facing difficulties, spanning about 20 different issue groups.

Chairing  a meeting  on March 30 with the steering committee for reviewing and settling difficulties for investment projects, aiming to seek solutions to stalled ones, Prime Minister Pham Minh Chinh directed ministries to categorize problems, refine legal procedures, and ensure the committee operates with greater efficiency. 

According to a report from ministries and localities, about 1,500 projects nationwide are now facing difficulties, spanning about 20 different issue groups. They include public investment projects, non-budget investment ones, and those under the public-private partnership (PPP) model. 

The PM was quoted by the Vietnam News Agency as saying at the meeting that it will not only remove difficulties for businesses but also unlock substantial resources, create jobs, improve people's living conditions, and enhance urban landscape; while tackling inefficiencies, and preventing corruption and wastefulness. 

The PM tasked the Ministry of Finance with developing a national database on stalled projects. “This system should accurately reflect project status, analyze root causes, and provide feasible solutions,” the PM said, adding that the focus must be on solving problems by categorizing them for specific solutions.

Given that some projects with issues may not have been fully identified, he instructed the Ministry of Finance and the Government Office to draft an urgent dispatch requesting ministries, agencies, and localities to conduct a comprehensive review and submit updated reports by April 10, 2025. He emphasized that any failure to meet this deadline would hold  “local leaders accountable." 

The effort will contribute to fulfilling the goal of 8% economic growth for this year and double-digit rates in following years, the Government leader said, encouraging authorities to dare to think, dare to do and dare to take responsibility for common benefits

He stressed that problems must be resolved transparently, with a set timeframe, and without delays. 

Stressing the need for a result-oriented approach, the PM called for high determination and drastic actions from all-level authorities with clear tasks, powers and responsibilities. 

For projects with land-use issues, he called on local administrations, particularly at commune and district levels, to expedite resolutions while ensuring the legitimate rights of affected residents. He urged tailored support for vulnerable groups and strict measures against those exploiting disputes for personal gain. 

For planning, PM Chinh asked for revision of planning schemes, especially for sectors, to ensure consistency with the general planning. 

Regarding projects with legal violations during their implementation, the guiding principle is that economic problems should be resolved through economic solutions. Criminal measures should only be a last resort, he stated. 

In conclusion, the Government leader ordered dealing with all projects with problems within 2025.

-Vân Nguyễn

The Government will priorities capital allocation for projects set to be completed this year.

Relevant ministries, agencies and localities have been requested to complete the 2,063-km North – South expressway project from the northern mountainous province of Lang Son to the southernmost province of Ca Mau by this year’s end, thus achieving the goal of 3,000 km of expressways nationwide by 2025.

The request was made by Prime Minister Pham Minh Chinh during  a meeting between permanent Government members and inspection teams for expressways nationwide held  in Hanoi on March 29 evening.

PM Chinh, who is also head of the State Steering Committee for Key Transport Projects, was quoted by the Vietnam News Agency as stressing at the meeting that achieving a growth rate of at least 8% in 2025 and double-digit growth thereafter hinges on public investment.

Transport infrastructure is pivotal in creating new development spaces for localities, easing travel, cutting input and logistics costs, boosting product competitiveness, and attracting investment, he said.

To reach over 3,000km of expressways later this year, he noted his decision to form seven inspection teams led by Deputy PMs. Their efforts have proven effective, resolving many issues on-site.

He directed localities to pool the entire political system to finalize land clearance and secure sufficient material supply, and prevent its shortages. He underscored the need for flexible implementation of mechanisms and policies while ensuring that residents’ livelihoods in project areas are improved, or at least maintained post-relocation, safeguarding their well-being.

Other specific tasks were also assigned to relevant ministries, localities and Vietnam Electricity.

The Government will priorities capital allocation for projects set to be completed this year, he said, adding that alongside administrative reform, it is essential to actively study and invest in the construction of additional bridges and roads to enhance connectivity.

-Vân Nguyễn

Thu Thiem station will be a key node in a network of strategic railway lines in southern region.

Thu Thiem Station in Ho Chi Minh City is steadily taking shape as a key node in a network of strategic railway   lines that will connect the southern city to the region and the nation as a whole.

It is poised to become a vital hub within a modern transportation system, linking major cities and provinces  and providing direct access to Long Thanh International Airport which (phase 1) is scheduled to complete by the end of this year.

According to the approved Railway Network Plan for the 2021–2030 period, with a vision to 2050, Thu Thiem  is set to play a critical role in the national and southern regional railway systems.

The Vietnam Railway Authority outlined that the North-South high-speed railway will originate at Ngoc Hoi Station (Hanoi) and terminate at Thu Thiem Station. The double-track line will use a 1,435 mm gauge and have a total length of approximately 1,545 km.

Thu Thiem Station is planned to be located in An Phu Ward, Thu Duc City, serving as one of Ho Chi Minh City’s major passenger terminals. It will act as a central hub connecting passenger transport for multiple railway lines, including the North-South high-speed railway, the Thu Thiem–Long Thanh (Dong Nai) railway, the Bien Hoa (Dong Nai)–Vung Tau railway (starting at Trang Bom Station in Dong Nai province), and future urban railway networks.

Additionally, Thu Thiem Station will facilitate connections with other public transport systems, such as metro lines (MRT-2, MRT-10),  bus rapid transit (BRT No. 1), buses, taxis, and parking facilities. The surrounding area is planned as an integrated transport square to improve convenience for travelers.

The total planned area for Thu Thiem Station spans 17.2 ha, comprising three key zones: the North-South high-speed railway station area (7.9 ha), the Thu Thiem–Long Thanh railway station area (4.6 ha), and the integrated transport square (4.7 ha).

For the North-South high-speed railway, the section connecting Thu Thiem Station to Long Thanh International Airport Station in Dong Nai Province is approximately 35.25 km long.

-Thanh Thủy

At the first meeting of the steering committee for key national railway projects, PM Pham Minh Chinh called for formation of major corporations, including private ones, to drive railway industry development.

Prime Minister Pham Minh Chinh called on the entire nation to push beyond its limits in order to develop a robust railway industry while chairing the first meeting of the steering committee for key national railway projects on March 29 evening, according to a report from the Vietnam News Agency.

The committee,  established earlier this month and headed by the PM, aims to oversee key railway projects, including the North-South high-speed railway and rail lines connecting Lao Cai - Hanoi - Hai Phong, Hanoi - Lang Son, and Mong Cai - Ha Long (Quang Ninh) - Hai Phong, as well as urban railway projects in Hanoi and Ho Chi Minh City.

The North-South high-speed railway was approved under the National Assembly's Resolution No. 172/2024/QH15 and will span 1,541 km from Hanoi to Ho Chi Minh City.

The projected double-track railway is designed for speeds of up to 350 km/h, with an estimated cost of VND1.71 quadrillion (approximately $67.34 billion). The implementation period is planned from 2025 to 2035.

Meanwhile, the Lao Cai - Hanoi - Hai Phong railway project, which will link with China's rail network, will have a standard gauge of 1,435 mm, serving both passenger and freight transport. The main line will span 390.9 km and branch lines will cover an additional 27.9 km.

The estimated cost for the project is $8.36 billion. Its first phase will involve the construction of a single-track railway and site clearance for a future double-track upgrade. The project is scheduled to be implemented between 2025 and 2030.

At the same time, the Hanoi - Lang Son railway connecting Hanoi with Bac Ninh, Bac Giang, and Lang Son provinces and providing an international rail link to China, will have an estimated length of 156 km.

The Hai Phong - Ha Long - Mong Cai railway will connect Hai Phong city with Quang Ninh province and link with China's rail network. The estimated length of the railway is 187 km.

Under the National Assembly's Resolution No. 188/2025/QH15, Hanoi plans to build 15 metro lines, while Ho Chi Minh City aims for 10.

At the meeting, PM Chinh underlined the significance of the projects and the development of the railway industry, stressing that achieving these ambitious goals requires a shift in mindset—moving away from outdated thinking and embracing self-reliance, national pride, and resilience.

 

He emphasized the need to establish a full-fledged railway industry, mastering technology, producing rolling stock, and developing an integrated railway ecosystem. He also highlighted the opportunity for Vietnam to harness this challenge as a catalyst for national growth and innovation.

To build a skilled workforce, he directed the Ministry of Construction and the Ministry of Education and Training to design a comprehensive human resources development plan for the industry. This plan includes domestic and international training, setting specific targets for each level and specialty, and establishing railway engineering faculties at universities, particularly for training chief engineers.

Furthermore, he called for the formation of major corporations, including private ones, to drive railway industry development.

The Government leader also underlined the importance of diversifying resources, including State funds, loans, infrastructure bonds, public-private partnerships (PPP), and Transit-Oriented Development (TOD) models, while ensuring strict financial oversight to prevent wastefulness and losses.

He assigned the Ministry of Science and Technology and the Ministry of Construction to establish technical standards, implement modern technology, and facilitate the transfer of advanced expertise. He also instructed the Ministry of Construction to review and propose necessary policy adjustments for submission to the National Assembly.

There must be a clear understanding of the importance of railway projects, he said, emphasizing that efforts should be made to remove obstacles and expedite project execution, particularly in land clearance, which should be handled as a separate project, allowing local authorities to secure land while investors develop stations.

Intersectoral cooperation and accountability must be enhanced to ensure that responsibilities, timelines, and deliverables are clearly defined and strictly monitored. Strict penalties should be enforced for delays and inefficiencies, while those excelling in their duties should receive recognition, he stated.

Emphasizing that railway projects must priorities the public interest, improving transport services, reducing congestion, protecting the environment, and promoting sustainable development, the PM assigned specific tasks to ministries and agencies.

Particularly, he directed the Ministry of Agriculture and Environment to develop regulations on the temporary use of forests for railway construction within September.

The Ministry of Construction is tasked with developing a decree outlining the criteria for selecting state-owned organizations or enterprises assigned with tasks, or Vietnamese organizations and enterprises contracted to provide railway industrial services and goods.

 

The leader approved the commencement of construction of the Lao Cai station and resettlement areas of the Lao Cai-Hanoi-Hai Phong railway in 2025. The Ministry of Foreign Affairs and the Ministry of Finance were instructed to engage China in negotiations over project agreements.

For the North-South high-speed railway, the PM ordered groundbreaking in December 2026. The Ministry of Justice will streamline approval procedures for a decree on railway design in early April 2025, while relevant ministries will promptly provide feedback, he asked.

For urban rail projects in Hanoi and Ho Chi Minh City, local authorities must reassess progress. The Ministry of Finance must review and approve adjustments to financing, including halting the use of official development assistance (ODA) and foreign concessional loans for Ho Chi Minh City's Metro Line 2 (Ben Thanh - Tham Luong), the PM said.

-Vân Nguyễn

Rising housing prices and stagnant wages continue to put pressure on low-income earners hoping to secure their own home, though solutions have been forthcoming.

Housing supply in Hanoi and Ho Chi Minh City is expected to increase over the course of 2025, with the Vietnam Association of Realtors (VARS) estimating this year’s supply at 37,000 units in Hanoi and 18,000 in Ho Chi Minh City and surrounding areas. This suggests a greater market supply than in 2024, with the addition of unfinished and unsold inventory contributing to relatively abundant supply. Apartments continue their upwards trend and maintain a leading position.

However, most new supply is in the high-end segment, keeping primary market prices elevated, while demand remains strongest for affordable housing. The shortage of the latter in major cities is driving buyers towards suburban areas and lower-tier provinces, where prices are more reasonable.

Lack of affordable options

At the recent “Real Estate 2025 - Seeking Opportunities Amidst Challenges” seminar, a representative from the Ministry of Agriculture and Environment noted that property prices have surged dramatically. Newly-built apartments priced below VND50 million ($2,000) per sq m have nearly disappeared, while many older apartments now exceed VND70 million ($2,800) per sq m. Even units in old residential blocks have seen prices rise 1.5 to 2-fold, making home ownership increasingly difficult for average-income workers.

Buyers with a budget of VND3-4 billion ($120,000-$160,000) still struggle to find a suitable home. Housing prices continued to soar throughout 2024, particularly in Hanoi and Ho Chi Minh City, where some areas saw increases of up to 40 per cent year-on-year. This sharp rise not only challenges middle and low-income buyers but also threatens market sustainability.

The main reason behind this trend is the overwhelming dominance of luxury and ultra-luxury segments in new supply, while affordable apartments (below VND30 million, or $1,200 per sq m) have all but vanished.

Data from the Ho Chi Minh City Real Estate Association shows that, since 2021, new housing projects no longer include commercial homes priced under VND30 million ($1,200) per sq m, and social housing remains in severe shortage. Meanwhile, from 2020 to 2023, high-end housing consistently accounted for about 70 per cent of annual market supply. By 2024, only luxury projects were launched for capital mobilization, with average apartment prices reaching VND91 million ($3,640) per sq m (excluding VAT). As a result, the southern city has not only lost affordable commercial housing but also mid-range housing options.

Similarly, in Hanoi, despite record-high housing supply over the past five years, prices remain steep. According to Savills Hanoi, new apartment supply in 2024 totaled 24,996 units; the highest since 2020. However, primary market prices (direct from developers) continued rising, reaching VND75 million ($3,000) per sq m, up 9 per cent quarterly and 29 per cent annually. Even Grade C apartments, once considered low-cost housing with average prices of VND30-40 million ($1,200-1,600) per sq m, have now climbed to around VND50 million ($2,000) per sq m. This makes it even more challenging for budget-conscious buyers to find homes within their financial reach.

Surging prices outpace income growth

Data from Global Property Guide shows that Vietnam’s real estate prices are rising rapidly compared to the global market. Over the past five years, Vietnam’s property prices increased by 59 per cent, surpassing countries like the US (54 per cent), Australia (49 per cent), Japan (41 per cent), and Singapore (37 per cent).

According to VARS, housing prices in Hanoi have surged dramatically while incomes have not kept pace, making home ownership increasingly unaffordable. Many households struggle to afford home purchases or keep up with mortgage payments, especially amid economic uncertainties and trade war risks affecting income growth.

VARS research indicates that the minimum recommended income to buy an average-priced home in Hanoi is 2.3 to ten-fold higher than the average household income. As of late 2024, the average monthly wage in Hanoi was VND10.7 million ($430). A four-person household with two working adults would therefore earn some VND21.4 million ($855) a month. Given the 2024 average primary apartment price of VND70 million ($2,800) per sq m, buyers would need a monthly income of between VND45 million and VND210 million ($1,800 and $8,400), depending on the location.

VARS explained that these estimates assume buyers take out a 20-year mortgage covering 70 per cent of the home’s value at an 8 per cent annual interest rate. Under financial best practices, monthly mortgage payments should not exceed 40 per cent of household income.

With the economic downturn, declining incomes may further strain affordability and increase mortgage burdens. Interest rates fluctuate, and adjustments could make home loans even more expensive, pushing some buyers beyond their repayment capacity.

Speaking at a VARS event on February 26, Deputy Minister of Construction Nguyen Van Sinh acknowledged ongoing challenges in the real estate market, including limited supply, site clearance and rezoning difficulties, scattered investment, funding shortages, and rising property prices outpacing affordability.

Opportunities for low-income buyers

To address current challenges and promote a sustainable real estate market, the Ministry of Construction has proposed several solutions for relevant ministries and sectors. For developers, it advised focusing on compliance with legal regulations while also proactively restructuring their businesses, investment portfolios, and product offerings. Additionally, leveraging technology in construction and corporate management is essential to align with financial capacity, business scale, and market demand. Developers should prioritize resources for ongoing real estate projects, especially those near completion, to expedite commercialization, recover capital, and increase market supply. Investing in new projects, particularly those meeting real housing demand, such as affordable commercial housing and worker accommodation, will help stimulate overall market growth.

Addressing financial challenges is also crucial. Developers must resolve debt issues and secure access to credit and other funding sources. Expedited legal procedures are needed to commence social housing projects, including the mandated 20 per cent allocation in commercial housing developments. Additionally, registering eligible projects with local authorities can help secure preferential loans from the VND120 trillion ($4.8 billion) support package.

Experts believe home ownership is still within reach for individuals on middle to low incomes. Social housing supply is expected to rise as localities accelerate project implementation. In Ho Chi Minh City, four projects with 2,874 units will be completed this year and eight projects with 7,945 units will break ground. Meanwhile, Hanoi is set to start eight social housing projects this year with nearly 1,600 units, along with other projects ready for sale.

While affordable commercial apartments have become scarce in the primary market, some are still available on the secondary market, though mainly in suburban areas with smaller sizes. “With reasonable budgets, buyers can explore properties in outlying areas where prices are more affordable,” said Ms. Do Thu Hang, Senior Director, Advisory Services, at Savills Vietnam. “While this requires greater commuting flexibility, infrastructure development will soon make travel more convenient.”

Mr. Nguyen Van Dinh, President of VARS, added that with current favorable interest rates, households or individuals with at least 30 per cent of the apartment’s value in savings can consider mortgage financing. However, buyers must be willing to relocate to lower-priced districts or satellite cities. To encourage buyers, developers must offer more reasonable pricing in line with affordability.

Looking ahead to 2025, Mr. Dinh forecasts that suburban land plots with clear legal status and prices under VND2 billion ($80,000) will continue appreciating, with auctioned land prices rising by about 10 per cent. Primary prices for villas, townhouses, and shophouses will keep climbing due to limited land availability and rising investment costs, while secondary market prices for well-established projects with residents will trend upwards and projects lacking infrastructure and occupancy will remain flat.

-Phan Nam

The application regulated by the Law on entry, exit, transit and residence of foreigners in Vietnam

According to the Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam, foreigners can apply for visas to enter Vietnam at the country’s international border gates

Under the law, Accordingly, foreign citizens shall be issued with Vietnamese visas in the following cases:

a) Departing from a country where there is not a Vietnamese competent authority responsible for visa issuance;

b) Having travelled to other countries before arriving in Vietnam;

c) Entering Vietnam on tours organized by international tourism agencies in Vietnam;

d) Foreign crew members on board ships anchored in Vietnamese seaports who need to exit Vietnam through another border gate;

e) Entering Vietnam to attend the funeral of a relative or visit a seriously ill relative; and

f) Entering Vietnam to participate in emergency, rescue, disaster and epidemic prevention and control efforts or others reasons at the request of Vietnamese competent authorities.

Foreign citizens shall have to show valid passports, or international travel papers, fill visa application form at the checkpoint areas.

Children under 14 years of age shall be declared together with the visa application form of their parent or guardian in case they share the same passport with their parent or guardian.

Additionally, Vietnam now issues e-visas to foreigners from all countries and territories with the duration of stay of up to 90 days.

The fee shall be $25 for a single-entry visa and $50 for a multiple-entry visa.

Foreigners using e-visas must enter and exit Vietnam through the international border gates designated by the Government, as listed below:

List of land border gates:

1. Bo Y international border gate, Kon Tum province,
2. Cha Lo international border gate, Quang Binh province,
3. Cau Treo international border gate, Ha Tinh province,
4. Huu Nghi international border gate, Lang Son province,
5. Ha Tien international border gate, Kien Giang province,
6. Lao Bao international border gate, Quang Tri province,
7. Lao Cai international border gate, Lao Cai province,
8. La Lay international border gate, Quang Tri province,
9. Moc Bai international border gate, Tay Ninh province,
10. Mong Cai international border gate, Quang Ninh province,
11. Nam Can international border gate, Nghe An province,
12. Na Meo international border gate, Thanh Hoa province,
13. Vinh Xuong international land and river border gate, An Giang province,
14. Tinh Bien international border gate, An Giang province,
15. Tay Trang international border gate, Dien Bien province, and
16. Xa Mat international border gate, Tay Ninh province.

List of air border gates at the following airports:

1. Cat Bi Airport,
2. Cam Ranh Airport,
3. Can Tho Airport,
4. Da Nang Airport,
5. Noi Bai Airport,
6. Phu Quoc Airport,
7. Phu Bai Airport,
8. Tan Son Nhat Airport,
9. Van Don Airport,
10. Tho Xuan Airport,
11. Dong Hoi Airport,
12. Phu Cat Airport, and
13. Lien Khuong Airport.

List of sea border gates at the following ports:

1. Chan May Port, Hue City,
2. Cam Pha Port, Quang Ninh Province,
3. Hon Gai Port, Quang Ninh Province,
4. Da Nang Port, Da Nang City,
5. Duong Dong Port, Kien Giang Province,
6. Dung Quat Port, Quang Ngai Province,
7. Hai Phong Port, Hai Phong City,
8. Nghi Son Port, Thanh Hoa Province,
9. Nha Trang Port, Khanh Hoa Province,
10. Quy Nhon port, Binh Dinh Province,
11. Ho Chi Minh City Port, Ho Chi Minh City,
12. Vung Ang Port, Ha Tinh Province, and
13. Vung Tau Port, Ba Ria - Vung Tau Province.

 

-Vân Nguyễn

Over 200,000 ha of Vietnam's shrimp farms are cultivated organically and ecologically, certified by international organizations.

Currently, Vietnam's shrimp industry is undergoing a "green revolution," transitioning from traditional practices to sustainable production methods that minimize environmental impact while meeting international market standards.

Radio the Voice of Vietnam quoted statistics from the Directorate of Fisheries under the Ministry of Agriculture and Environment as reporting that over 200,000 ha of Vietnam's shrimp farms are cultivated organically and ecologically, certified by international organizations.

These certified products have demonstrated significant advantages in large, demanding markets.

However, despite these advancements, the Vietnamese shrimp industry continues to face challenges, particularly regarding market trade policies. To address these issues, the industry needs to adopt synchronized solutions, shift towards green and responsible production practices, prioritize product quality, protect consumer health, and create sustainable added value.

Ms. Nguyen Thi Phuong Dung, a representative from the Directorate of Fisheries, noted that Vietnam's main shrimp export markets include China, South Korea, the United States, Japan, and the EU.

To meet the demands of these markets and align with the global shift toward green, clean, safe, and sustainable agriculture, it is crucial to develop technologies and models for water-saving aquaculture, improve material efficiency, and reduce antibiotic use in shrimp farming.

Additionally, strengthening disease control, ensuring food safety in aquaculture, promoting the application of recycling technology, utilizing agricultural by-products, advancing a circular economy, and reducing greenhouse gas emissions are essential measures.

Ms. Dung emphasized: "Technical advancements in shrimp farming, particularly those aimed at green growth and a circular economy, will greatly benefit our shrimp farming community by offering energy-saving solutions, reducing input costs, and maintaining a sustainable environment."

-Phạm Long

Chemical-pharmaceutical industry is identified as one of the three key sub-sectors of pharmaceutical manufacturing.

Developing the chemical-pharmaceutical industry is identified as one of the three key sub-sectors of pharmaceutical manufacturing and is regarded as a critical driver of the nation's modernization and enhanced competitiveness, according to the Ministry of Industry and Trade (MoIT).

However, the industry faces significant challenges, including limitations in production capacity and technology, gaps in human resources and training, vulnerabilities in raw materials and supply chains, as well as obstacles related to mechanisms, policies, the investment environment, and global competition.

On February 13, 2025, the Prime Minister approved the Program for the Development of the Chemical-Pharmaceutical Industry to 2030, with a vision to 2045. This initiative marks a pivotal step in advancing self-sufficiency in raw materials and fostering the development of Vietnam's domestic pharmaceutical sector.

The Vietnam Chemicals Agency (under MoIT) emphasizes that the program not only reflects the Government's strategic orientation to enhance the quality of pharmaceutical products and secure raw material supplies, but also acts as a catalyst for Vietnam's ambition to become a pharmaceutical hub within ASEAN.

Nevertheless, achieving these goals demands overcoming numerous challenges, such as modernizing production capacity, training high-quality human resources, establishing a complete domestic supply chain, and attracting crucial investment capital.

"The synchronized efforts of the 4 entities - regulatory agencies, businesses, researchers, and farmers—will be a key to unlocking sustainable development for the industry," the Vietnam Chemicals Agency stated.

Specifically, simplifying administrative procedures, improving the investment environment, and facilitating access to capital for domestic enterprises are essential to enhancing production capacity and competitiveness.

Additionally, fostering collaboration through stronger training partnerships and technology transfers between universities, research institutes, and businesses will be vital in driving the industry's growth and innovation.

-Vũ Khuê

The Hiep Hoa urban area spans approximately 293 ha and is designed to accommodate a population of about 31,600 people.

The People's Committee of the southern province of Dong Nai has announced two significant decisions regarding urban and industrial planning in Bien Hoa City.

The Hiep Hoa urban area is set to become a modern, culturally rich urban hub in harmony with its natural surroundings, while the planning of the Agtex Long Binh Industrial Park has been revised to enhance infrastructure for industrial development.

According to the decision, the Hiep Hoa urban area spans approximately 293 ha and is designed to accommodate a population of about 31,600 people.

This low-density, modern urban and service complex aims to integrate sustainable tourism with diverse housing options, commercial services, and public amenities, all while maintaining a well-structured layout in harmony with nature.

The Agtex Long Binh Industrial Park is situated in the center of Bien Hoa City,  about 3.5 km from the Bien Hoa - Vung Tau Expressway and 20 km from Long Thanh Airport. Covering a planning area of approximately 133.85 ha, the industrial park's detailed planning has been updated to a scale of 1/500 .

The People's Committee explained that the planning ratio adjustment was necessary as the Agtex Long Binh Industrial Park had originally been approved in 2007 at a 1/2000 scale, in line with the Construction Law of 2003.

However, the Construction Law of 2014 and Circular No. 04/2022/TT-BXD, issued by the Ministry of Construction on October 24, 2022, mandate that detailed construction planning for functional areas such as industrial parks must now adhere to a 1/500 scale.

-Thiên Di

The event is part of Brazilian President Luiz Inácio Lula da Silva’s State visit to Vietnam.

Prime Minister Pham Minh Chinh and Brazilian President Luiz Inácio Lula da Silva attended the Vietnam-Brazil Economic Forum, held in Hanoi on March 29 as part of the latter’s State visit to Vietnam between March 27-29.

Despite global economic headwinds, Vietnam-Brazil trade surged to nearly $8 billion last year. Brazil remains Vietnam’s largest trade partner in Latin America, while Vietnam is Brazil's leading trade partner in ASEAN, according to a report from the Vietnam News Agency, stressing that both leaders acknowledged that economic cooperation lags behind their robust diplomatic and political ties, especially following the upgrade to a Strategic Partnership in November 2024.

The forum brought together business leaders from both nations, showcasing their respective strengths and investment opportunities. Key sectors discussed included aviation, mechanical engineering, manufacturing, energy, agriculture, wholesale and retail trade, and science and technology.

President Lula da Silva was quoted by the news agency as noting that market potential - Vietnam’s 100 million people and Brazil’s 196 million - linked by a shared love for football and status as leading coffee exporters. He urged tapping trade frameworks to hit a $20 billion trade goal soon, thanking Vietnam for importing Brazilian beef and announcing plans for beef processing plants to access ASEAN markets. Brazil, he added, stands ready as a gateway for Vietnam's goods to the Southern Common Market (Mercosur).

The Brazilian President introduced Brazil's edge in aviation, biofuels, sports, and agriculture, encouraging firms to connect and enhance the Vietnam-Brazil Strategic Partnership. He proposed joint investment funds to foster sci-tech collaboration, build trust and facilitate business cooperation.

PM Chinh, in his address, revealed the already signing of an Action Plan to enact the new strategic partnership framework formed in November 2024, alongside consensus to upgrade the Joint Governmental Committee and facilitate high-level visits, the news agency reported.

Vietnam and Brazil committed to a more balanced trade, with Brazil opening its market to Vietnamese tra and basa fish, shrimp, electronics and agro-fishery goods, and Vietnam staying ready to join hands in ensuring Brazil’s food security, partly with its one-million-hectare low-emission rice cultivation program.

The PM stressed multilateralism to tackle global issues and affirmed Vietnam's willingness to join Brazil’s initiatives to ensure peace, stability, cooperation and development in the world, especially poverty reduction ones.

He proposed coffee trading platforms and mining cooperation to bolster Vietnam’s metallurgy sector, noting Brazilian footballers’ contributions to Vietnam’s ASEAN championship titles as a cultural bridge. With Vietnam targeting 8% growth in 2025 and double-digit growth thereafter,  the PM sought Brazil’s partnership. He introduced the country's priorities in institutional reform, infrastructure upgrade, and workforce training.

In infrastructure, Vietnam is advancing nuclear energy, wind and solar power, 5G/6G networks, exploration of marine, outer and underground spaces. The Government is streamlining its apparatus and empowering the private sector – the economy’s key driver, according to the Government leader.

He positioned Vietnam as Brazil’s entry to ASEAN’s 600-million-strong market, appreciating Brazil’s role in accessing Mercosur and Latin America.

For investment, he urged focus on green, digital, circular, and knowledge-based economies, alongside sci-tech, innovation, energy transition, hi-tech agriculture, and advanced industries. He underscored resilient supply chains, supporting industries, and skilled labor, seeking Brazil’s aid in tapping shifting investment flows, green finance and building international and regional financial hubs in Ho Chi Minh City and Da Nang.

He pushed the Brazilian Government to accelerate negotiations for a Free Trade Agreement (FTA) between Vietnam and Mercosur. He also called for a more favorable legal framework to facilitate trade through the signing of key cooperation agreements, including investment protection, labor, education and training, and visa exemptions.

PM Chinh pledged to ensure that the foreign-invested area remains an essential part of Vietnam's economy; protect the legitimate rights and interests of investors, and maintain national independence, sovereignty, political stability, security, and public safety.

Vietnam will listen to and foster understanding among businesses, the Government, and the public; share visions and actions to foster cooperation and mutual support for rapid and sustainable development; succeed, benefit, and grow together - united in joy, happiness, and pride, the PM said.

-Vân Nguyễn

Deputy Minister of Agriculture and Environment Phung Duc Tien tells Vietnam Economic Times / VnEconomy’s Chu Khoi of the untapped potential, competitive advantages, and growth opportunities in agricultural, forestry, and fisheries exports in 2025.

The Ministry of Agriculture and Environment (MAE) has entered its first working week after being formed by a merger between the Ministry of Agriculture and Rural Development (MARD) and the Ministry of Natural Resources and Environment (MoNRE). Can you tell us about its operations post-merger?

We have not faced any obstacles from the merger. Though the merger of MARD and MoNRE was carried out rapidly, no tasks were overlooked, no disruptions occurred, and all operational processes have been ensured.

The delegation of responsibilities to ministry leaders remains clear, with each Deputy Minister directly overseeing their respective sectors. During the merger process, both former ministries held separate meetings, followed by multiple bilateral working sessions to consolidate efforts and finalize outstanding documents, ensuring a smooth transition under the new entity - the Ministry of Agriculture and Environment.

MoNRE had a Digital Transformation Center and MARD had an Agricultural Statistics and Digital Transformation Center, which collaborated to enable the completion of all pending administrative procedures by February 28 and the transition to a new official seal for all documents.

Pursuing the government resolution on cutting administrative procedures is also a crucial task, acting as a key driver for the sector’s growth and export performance. In these initial working days, no bottlenecks have appeared, particularly in administrative procedures. All sectoral activities continue without disruption, ensuring seamless operations while maintaining full coverage of industries, facilities, and businesses.

How do you view agricultural, forestry, and fisheries exports in the first two months of 2025?

The export value of products reached $9.38 billion, an 8.3 per cent increase compared to the same period of 2024. Agricultural exports reached $4.89 billion, up 4.5 per cent, with livestock product exports at $72.2 million, up 4 per cent; fisheries exports stood at $1.42 billion, up 18.6 per cent; forestry exports totaled $2.68 billion, up 11.9 per cent; production input exports amounted to $307.6 million, down 0.2 per cent; and salt exports reached $1.4 million, doubling year-on-year.

Most major sectors continued to grow and maintained a trade surplus. Notably, coffee exports saw a significant 26.2 per cent increase in value despite a 28.2 per cent decline in volume, with projections suggesting coffee exports could reach $6 billion in 2025. Seafood exports recorded $1.42 billion in value in the first two months, up 18.6 per cent year-on-year. Similarly, wood and wooden product exports reached $2.52 billion, marking a 12.4 per cent increase compared to the same period of 2024.

However, fruit and vegetable exports declined 11 per cent, while rice exports saw a 13.6 per cent fall in value compared to the first two months of 2024. The sector must therefore continue to capitalize on its strengths while addressing the challenges faced by declining product categories such as fruit and rice through targeted solutions to enhance value in the months ahead.

Given those results, what new challenges lie ahead for agricultural, forestry, and fisheries exports?

The sector’s exports play a crucial role in Vietnam’s economy as they generate real revenue and trade surpluses, providing foreign exchange to drive the country’s industrialization and modernization. At a government meeting in January, the looming trade war was highlighted as a key concern, especially following US President Donald Trump’s first two months in office, which have had a significant impact on global markets. In reality, fluctuations were already observed in the Chinese market and several other countries.

At the same time, developments in US-Europe relations with Ukraine remain highly volatile and could have ripple effects on our economy. However, we assess that the impact on Vietnam’s agricultural exports will not be overly significant. Facing these challenges, we must analyze and implement appropriate solutions to achieve the government’s export target of $65 billion and potentially strive for $70 billion if conditions are favorable.

It is essential to leverage products with comparative advantages while identifying and addressing difficulties in specific sectors. For example, Vietnam exported 9.15 million tons of rice in 2024, and we expect to maintain exports at around 9 million tons this year. We are also accelerating the transition to high-quality rice varieties, aiming for fragrant rice and specialty rice to account for 75 per cent of total exports in 2025. This strategic shift ensures that any decline in rice export volumes will be minimal, as we target higher-value markets that demand premium-quality products, thereby maintaining both export volume and value.

How do you view the growth potential of the agriculture sector in 2025?

The government has set a target of 4 per cent growth for this year. A closer look at each sub-sector reveals that crop production contributes 43 per cent to total agricultural value, with peak growth reaching 2.2 per cent in some years but generally ranging between 1.5 and 1.8 per cent.

Livestock, which accounts for 26 per cent of agricultural GDP, recorded its highest growth, of 5.92 per cent, in 2022. Meanwhile, the fisheries sector, contributing 28 per cent to agricultural GDP, has maintained an annual growth rate of 3.5 to 3.8 per cent. The forestry sector, though smaller in proportion, consistently grows at around 7 per cent annually. These figures highlight the key areas where we must implement strategic growth measures to ensure the sector meets its 4 per cent target.

Given the ongoing global uncertainties, the MAE has been closely monitoring developments and implementing targeted solutions to maintain agricultural export turnover in 2025. Achieving the 4 per cent growth target set by the government requires a comprehensive review and strategic restructuring of each industry within the sector, to ensure sustainable progress.

In terms of exports, Vietnam’s agricultural sector still has substantial untapped potential. The most critical driver for future growth is science and technology, which will play a decisive role in elevating Vietnam’s position in global agriculture. Resolution No. 57-NQ/TW provides a strategic framework for advancing science, technology, innovation, and national digital transformation, and must be fully leveraged.

Our first priority is to accelerate the application of cutting-edge science and technology in a more robust and effective manner. Since over half of the sector’s added value comes from technological advancements, we need to focus on seed development, modern cultivation techniques, plant protection, veterinary medicine, and other critical areas. These improvements must align with circular economy principles and digital transformation initiatives, ensuring transparency and traceability to enhance Vietnam’s competitiveness in global markets.

Another key growth avenue lies in deep processing, which presents immense opportunities for value creation. Currently, a significant portion of Vietnam’s agricultural exports remains in bulk, unbranded formats rather than high-value processed products. This underscores the need to enhance processing capabilities to meet global standards. As agricultural land expansion is no longer an option, the focus must shift towards increasing productivity, improving product quality, and developing raw material zones that support advanced processing. Strengthening deep processing will not only boost export value in 2025 but also lay the foundation for sustainable growth in the 2026-2030 period.

-Chu Khôi

Vietnam has made significant progress, narrowing the Green IMPACT Gap from 52% in 2023 to 45% in 2024.

An increasing number of Vietnamese businesses are demonstrating interest in sustainable development, according to the recently released Schneider Electric Green IMPACT Gap Sustainability Report 2024.

The report surveyed 4,500 business leaders across nine countries, including 500 representatives from Vietnam. It aimed to gather insights from leaders in Asia regarding sustainability and environmental challenges. Participants, including mid-level and senior executives in the private sector, answered 30 questions about the impact of sustainable development on business operations.

The survey was conducted in Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam.

Mr. Dong Mai Lam, General Director of Schneider Electric Vietnam and Cambodia, observed that Vietnam is at a pivotal point in its journey toward realizing sustainable development commitments. Within just one year, the country has made significant progress, narrowing the Green IMPACT Gap from 52% in 2023 to 45% in 2024.

“This remarkable progress reflects not only the determination of the Vietnamese business community but also the leadership of 'Impact Makers'—visionaries who actively promote sustainable transformation,” said Mr. Lam.

However, he emphasized that achieving the Net Zero target by 2050 will require addressing challenges such as securing financial resources, leveraging advanced technologies, and adapting to new policies.

The survey revealed that 96% of Vietnamese businesses are now familiar with Decree No. 06/2022/ND-CP, which outlines regulations for reducing greenhouse gas emissions and protecting the ozone layer. Among these businesses, 54% cited a lack of technical expertise in measuring and reporting emissions as the biggest hurdle to full compliance. Additionally, 46% highlighted insufficient capital and resources as a key challenge.

-Song Hoàng

The projects focus on high-tech, commercial services, tourism, urban economy and port services.

Authorities of south central Binh Dinh province granted investment policy decisions and certificates for 62 projects with total registered capital of over VND231 trillion (over $9 billion) at an investment promotion conference held on March 28, according to a report from the Vietnam News Agency.

The projects cover various fields, including high-tech industries, commercial services, tourism, urban economy, port services and logistics.

Of the total, 16 projects received investment policy approvals and investment certificates with registered capital of more than VND17 trillion ($659 million).

Meanwhile, memoranda of understanding on investment cooperation were presented to 42 projects, with domestic investment totaling over VND75 trillion ($2.91 billion) and foreign investment exceeding $1.1 billion.

 

-Vân Nguyễn

The southern province has over 1,700 valid FDI projects with total registered capital of nearly $36 billion.

The People's Committee of the southern province of Dong Nai on March 28 held a meeting with foreign direct investment (FDI) enterprises operating in the locality to address difficulties they are facing, according to a report from the Vietnam News Agency.

The event saw the participation of representatives from over 300 FDI companies, foreign business associations and industrial infrastructure firms in the province.

Chairman of the People's Committee Vo Tan Duc said that the meeting provided an opportunity for local authorities to share information, and understand specific difficulties, thus better supporting businesses.

He said that in the coming time, Dong Nai will continue to speed up administrative reforms, improve workforce quality, and enhance infrastructure to create a favorable investment environment.

The province's strategy gives priority to attracting investments in modern technology, supporting industries, semiconductor, and environmentally friendly technologies, thus promoting sustainable industrial growth and enhancing competitiveness, he said.

To date, Dong Nai is home to over 1,700 valid FDI projects with total registered capital of nearly $36 billion from 46 countries and territories.

-Vân Nguyễn