These projects involving in production of key products such as software, semiconductors and AI products.

The Government has proposed the National Assembly (NA) to exempt and reduce land rent for projects involved in the production of key digital technology products such as software, semiconductors and artificial intelligence (AI).

The Government presented the proposal during at a recent session of the NA Standing Committee.

The policy is also proposed for innovation centers and research institutes, digital technology research and development centers, concentrated digital technology zones, and the National Innovation Centers.

Additionally, the Government proposed a 30 per cent reduction in land rent payable in 2025, with broader application than in 2024. The aim was to support citizens and businesses in developing production and business activities, striving to achieve an economic growth target of 8 per cent in 2025.

After hearing the report, the NASC agreed in principle to allow the Government to issue a decree stipulating additional cases eligible for land use and land rent exemptions and reductions in 2024, and to expand the scope further in 2025.

 

-Bạch Dương

A working session at the Vietnam Connect Forum 2025 involving Mr. Tran Luu Quang, Secretary of the Party Central Committee and Head of the Party Central Committee's Commission for Policy and Strategy, and representatives from foreign enterprises and associations in Vietnam emphasized Vietnam’s ongoing commitment to fostering a robust economic environment and supporting FDI growth.

On April 23, Mr. Tran Luu Quang, Member of the Party Central Committee and Head of the Central Commission for Policy and Strategy, held a working session with leaders of foreign business associations and executives from leading corporations, foreign-invested enterprises (FIEs), and foreign investors currently operating in Vietnam. The session was part of the Vietnam Connect Forum 2025, jointly organized in Hanoi by the Institute for Policy and Strategy at the Central Commission for Policy and Strategy, in collaboration with Vietnam Economic Times / VnEconomy / Tap chi Kinh te Viet Nam, under the Vietnam Economic Association.

During the session, representatives from the business community commended the consistent efforts of the Communist Party of Vietnam and the Vietnamese Government in fostering a conducive investment environment and attracting FDI. Business leaders also engaged in candid discussions, sharing the challenges they continue to face in doing business in the country.

Seeking clearer investment pathways

Key concerns raised during the session included issues related to the regulatory framework, administrative procedures, legal provisions, and the lack of sufficient and synchronized infrastructure. Furthermore, the persistent shortage of skilled workers, particularly high-quality human resources, was identified as a pressing constraint. Additionally, representatives from FIEs also touched on how the US’s reciprocal tariffs will impact supply chains and the export performance of enterprises across several key sectors.

They put forward practical proposals and recommendations aimed at strengthening collaboration between Vietnam and the investment community. Those suggestions focused on identifying timely and effective solutions to address existing obstacles and support sustainable business operations moving forward.

According to figures from the Foreign Investment Agency, as of the end of 2024, South Korea remained Vietnam’s largest foreign investor, with 10,128 projects and total registered capital exceeding $92 billion, or 24.11 per cent and 18.22 per cent, respectively.

Amid the current global economic landscape, Mr. Ko Tae Yeon, Chairman of the Korean Business Association in Vietnam (KoCham), noted that many FIEs are re-evaluating Vietnam’s competitiveness as a top investment destination. “Companies are shifting their strategies from focusing solely on efficiency to prioritizing diversification,” he emphasized. This approach not only aims to mitigate risks but also reflects a broader structural transformation across industries.

He expressed a wish for more concrete policies to support research and development (RD), including RD workforce training, tax incentives, and visa facilitation for foreign technical experts. In the logistics sector, he stressed the urgent need to upgrade infrastructure to reduce operational costs.

To address the labor market mismatch, KoCham recommends enhancing coordination between enterprises and vocational training centers, implementing tailored internship programs, providing scholarships, and improving living conditions such as dormitories. Financial assistance for exporting firms and deferred tax inspections would also be highly beneficial during this challenging period. “Most importantly, to resolve practical issues, we propose establishing a One-Stop Solution Center,” Mr. Ko said. “In parallel, we call for the creation of a formal dialogue mechanism between the government and the business sector to facilitate constructive feedback from FDI enterprises on policy changes.”

Among more than 100 countries and territories with newly-licensed investment projects in Vietnam in 2024, Singapore ranks as the largest investor with nearly $10.21 billion, accounting for 26.7 per cent of total capital. Mr. Seck Yee Chung, Vice Chairman of the Singapore Chamber of Commerce in Vietnam (SingCham), warned that the proposed US tariffs are likely to disrupt critical supply chains for both businesses and US consumers, as Vietnam has emerged as a key manufacturing hub for major global players.

To sustain this position, Mr. Chung emphasized that Vietnam must continue to improve and reform administrative bodies, streamline procedures, and simplify the bureaucratic system. Furthermore, efforts should be made to foster a more open business environment and facilitate investment by minimizing or eliminating government approval requirements for FIEs.

Meanwhile, with $1.5 billion in investment in 2024 and a positive business outlook for 2025, the EU is poised to become a key source of FDI, particularly in sectors such as renewable energy, technology, and services. Mr. Bruno Jaspaert, Chairman of the European Chamber of Commerce in Vietnam (EuroCham), emphasized the importance for Vietnam of clearly defining its investment priorities over the next decade, whether to attract the highest volume of capital or the most value-added contributions to national development. “This decision is entirely in Vietnam’s hands,” he said. “It is critical that it clarifies its target investor profile and positions itself as a safe and reliable destination for strategic investment.”

Mr. Jaspaert also recommended that Vietnam consider offering incentives to investors producing goods domestically using 100 per cent locally-sourced materials, including tax benefits. Such measures would serve as powerful drivers in attracting more investors in the near future.

In addition, the EU-Vietnam Free Trade Agreement (EUVFTA) has helped elevate the EU to sixth place among Vietnam’s largest FDI sources and will continue to fuel the expansion of European business activities in Vietnam. Mr. Jaspaert stressed that beyond the EU, Vietnam should maximize the benefits of all its FTAs to enhance its competitiveness and attractiveness among international investors.

Voices from key industries

Retail remains one of the fastest-growing sectors in Vietnam, but businesses are encountering significant practical challenges. Mr. Olivier Langlet, CEO of Central Retail Vietnam, pointed out that navigating the legal framework, especially the Land Law, continues to pose considerable obstacles.

Given Central Retail’s long-term investment commitments in Vietnam, he proposed expediting and streamlining the retail licensing process. Under the current system, businesses are required to commit substantial resources prior to application and approval, creating heightened risks and uncertainty. He recommended allowing license applications to be submitted only after securing land use rights and construction permits, with parallel assessments conducted during project development.

Moreover, the limited availability of land for modern retail development presents another pressing issue. Mr. Langlet called for prioritizing and expanding land allocation for commercial and service purposes, enabling retail growth and stimulating broader economic activity. Ambiguities in new laws, such as the Land Law 2024, and fire safety regulations have also caused delays and investment instability. He emphasized the urgent need for clear, consistent guidance for local authorities to ensure uniform enforcement and foster investor confidence.

Mr. Michael Vu Nguyen, Country Director of Boeing Vietnam, highlighted several long-term measures to strengthen Vietnam’s aerospace ecosystem. These include workforce training, particularly in manufacturing, reduced import tariffs on aviation components, and stronger collaboration between FDI firms and domestic businesses.

Regarding US reciprocal tariffs, he suggested that Vietnam address the root cause of the tariffs: its trade imbalance. Vietnam Airlines is currently in the process of purchasing 50 Boeing aircraft, with a total value of around $11 billion. Meanwhile, Vietjet Air is working on a deal to purchase 200 Boeing planes. Several other aircraft contracts between the two countries’ partners are also under discussion.

Ms. Hoang Tri Mai, General Director of Airbus Vietnam, offered two recommendations for Vietnam. First, to institutionalize sustainable development and post-crisis resilience, invest in quality and sustainability rather than quantity, and develop a diversified supply base to help enterprises respond to crises and minimize disruption risks. Second, to invest in infrastructure tailored to the aviation sector’s specific needs, including stable energy sources, specialized logistics, multimodal transport, and green industrial parks. Airbus has been a longstanding partner of Vietnamese aviation. Approximately 200 Airbus aircraft are in operation by carriers such as Vietnam Airlines and Vietjet, representing 65 per cent of the domestic market share.

From a banking standpoint, Mr. Victor Ngo, CEO of UOB Vietnam, believes that amid the uncertainties and shifting world order, the immediate priority is to secure livelihoods by protecting jobs and to retain the existing supply chains and production capacities that Vietnam and FIEs have successfully built over the years.

He highlighted four key areas that are vital for supporting Vietnam’s transition to this new world order. First, the need for measures to support and retain workers in vulnerable industries, ensuring these sectors remain resilient during this period of change. Second, the importance of exploring and expanding new markets to unlock fresh opportunities for growth and diversification. Third, the necessity of incentivizing existing FIEs to continue their operations in Vietnam, leveraging their expertise and capital for further economic development. And lastly, investment in emerging growth sectors, including the development of Vietnamese brands and products, machinery and equipment, software, consumer electronics, and sustainability efforts such as environmental, social, and governance (ESG) practices.

With the support of the local government and business associations and with the entrepreneurial spirit of the Vietnamese people, Mr. Ngo expressed confidence that Vietnam would emerge stronger and more independent in the years ahead.

Among all sectors, the boom in e-commerce is significantly driving Vietnam’s digital economy. However, domestic e-commerce platforms such as Shopee, Lazada, and Tiki currently face higher compliance costs and more complex procedures than cross-border companies. With global trade facing disruptions, intra-regional integration and diversification of export markets are becoming more vital than ever.

Mr. Jason Bay, Country Director of Sea Limited, Shopee’s parent company, advocated for a more equitable legal framework. He said the forthcoming Law on E-Commerce should ensure a level playing field for all market participants. Cross-border e-commerce platforms and social networks with commercial functionalities must be held to the same standards as domestic e-commerce providers. The Ministry of Industry and Trade is currently drafting this new law, which is scheduled to be submitted to the National Assembly for consideration in October.

Across sectors, businesses are aligned in their call for Vietnam to accelerate infrastructure investments and upgrade human resources training, particularly for priority industries. There is also a growing emphasis on attracting investment into emerging sectors with transformative potential, such as AI, renewable energy, and logistics, all of which are reshaping global value chains.

Engaging with stakeholder feedback

After attentively listening to representatives from the foreign business community, Mr. Quang expressed his appreciation of their contributions to Vietnam’s growth agenda. Key proposals included more selective FDI attraction strategies, focusing on both project quality and investment partners, developing human capital through joint efforts, and encouraging innovation and digital transformation across enterprises. He reaffirmed the pivotal role of the FDI sector in Vietnam’s ongoing economic development.

Mr. Quang also responded directly to each concern raised by the FDI business community. For instance, regarding the retail sector, which he noted benefits from the natural advantage of Vietnam’s 100-million-strong consumer market and thus receives fewer incentives, he said the Party and the government are still actively facilitating administrative procedures. This includes potentially decentralizing land allocation authority to local levels, while encouraging businesses to expand local supply chains to gain cost advantages, provided quality control of input materials is maintained.

In response to businesses concerned about US reciprocal tariff on imports, Mr. Quang emphasized the importance of transparency in export data to the US to ensure accurate figures, while affirming that Vietnam is actively negotiating to secure the most favorable outcomes.

Concluding the working session, he outlined several priority tasks that Vietnam must focus on in the near future. First, comprehensive administrative reform; second, resolving overlaps in legal and institutional frameworks; third, expanding and improving infrastructure; fourth, enhancing human resources, especially high-quality talent, which he described as a critical bottleneck. This, he stressed, requires not only policy support from the government but also strong collaboration and commitment from businesses, treating this as a shared responsibility to ensure timely and quality workforce development aligned with emerging industry standards. And finally, addressing US reciprocal tariff measures, for which businesses need government support to navigate the challenge effectively.

“We have taken note of all your input to inform policy formulation, and I can affirm that Vietnam is embracing a new and more adaptive approach to governance,” he told session participants. “The government will continue to accompany and create favorable conditions for FDI enterprises in Vietnam.” He also emphasized that sustainable economic development must be a two-way endeavor. He called on FDI businesses to actively support domestic enterprises, through technology transfer and enabling deeper participation in global value chains, so that together they can build a more resilient and interconnected economic ecosystem.

 

In 2024, the total value of newly-registered, additional, and contributed capital through equity purchases and stake acquisitions amounted to nearly $38.23 billion. Export turnover from the FDI sector (including crude oil) was estimated at close to $290.8 billion, a 12.2 per cent increase compared to 2023, contributing a remarkable 71.8 per cent of Vietnam’s total export value. The FDI sector also accounted for approximately 17 per cent of total social investment.

Mr. Tran Luu Quang, Member of the Party Central Committee and Head of the Central Commission for Policy and Strategy, reaffirmed the pivotal role of the FDI sector in Vietnam’s ongoing economic development.

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-Ngoc Lan

In 2024, Vietnam-Philippines import-export turnover reached $8.66 billion.

Vietnam and the Philippines are striving to boost bilateral trade turnover to $10 billion in the near future.

Amid Vietnam's efforts to explore more export markets to ease challenges for domestic enterprises, the Philippine market remains poised for further growth.

According to the latest statistics from the Vietnam Trade Office in the Philippines, Vietnam's export turnover to this market in March showed signs of recovery, increasing by 25.3% compared to February, reaching $442.631 million.

The import-export dynamics between Vietnam and the Philippines in Q1 2025 reveal several positive trends.

First, strong growth is seen in agricultural product exports compared to the same period last year.

Second, industrial and processed goods, including key Vietnamese exports such as textiles, telecommunications equipment, and components, have also seen significant improvement.

Third, business communities from both countries have become more proactive in researching, assessing market potential, and expanding their presence.

Lastly, new areas of bilateral cooperation have emerged, particularly in pharmaceuticals, veterinary drugs, and livestock vaccines, including the African swine fever vaccine.

In 2024, Vietnam-Philippines import-export turnover officially surpassed $8 billion, reaching $8.66 billion, an 11% increase compared to 2023.

Despite a decline in Q1 2025 trade figures compared to the same period in 2024, the Vietnam Trade Office in the Philippines forecasted an overall increase in trade turnover for 2025. With strong positive indicators in trade relations, the prospect of reaching $10 billion in bilateral trade remains within reach.

-Phạm Long

The Bai Vot - Ham Nghi and Ham Nghi - Vung Ang sections running through central Ha Tinh province with a total length of nearly 90km.

Two sections of the North-South Expressway project, which run through the central province of Ha Tinh, were officially put into operation on April 28.

The Bai Vot - Ham Nghi section has a total length of 35.28 km, with a total investment capital estimated at over VND7.6 trillion ($301 million). Its construction started in May 2021.

Meanwhile, the Ham Nghi - Vung Ang section has a total length of over 54.2 km, with a total investment capital estimated at more than VND9.7 trillion ($382 million).

They were technically open to traffic on April 19.

Both expressway sections have four lanes with a roadbed width of 17m, allowing a maximum speed of 90 kph.

These two major transport projects are expected to contribute to boosting socio-economic development for the north-central region.

 

-Nguyễn Thuấn

The wharft will increase annual cargo throughput of the International Port to 7 million tons.

Wharf No. 3 of Laos - Vietnam International Port was put into operation in the Vung Ang Economic Zone in central Ha Tinh province on April 28.

The wharf features a 225-meter-long pier capable of accommodating cargo vessels of up to 45,000 DWT. Its throughput capacity is expected at 2.15 million tons per year.

It covers a land area of 43,928 sq.m and water surface of 42,000 sq.m.

Total investment capital was estimated at over VND1 trillion ($38 million).

With the addition of Wharf No. 3 alongside Wharf No. 1 and No. 2, the port's annual cargo throughput will rise from 5 million tons to around 7 million tons. 

 

-Nguyễn Thuấn

The target was set during talks in Hanoi on April 28.

Vietnam and Cambodia set a target of $20 billion in bilateral trade in the future, according to Vietnamese Minister of Industry and Trade Nguyen Hong Dien.

During his talks held with Cambodian Minister of Commerce Cham Nimul in Hanoi on April 28, Minister  Dien remarked that the bilateral trade is not only growing in volume but also improving in quality, with diverse cooperation models, modern distribution channels, and dynamic participation from young entrepreneurs, especially in technology and e-commerce sectors.

The two ministers discussed specific measures to enhance economic and trade cooperation and agreed on several major directions for the future. These include accelerating the development of logistics infrastructure and distribution networks in border areas, rapidly transitioning from unofficial to official trade channels, and continuing strong coordination to combat smuggling and trade fraud in border regions.

They also agreed to work closely on trade promotion programs and business networking while enhancing information sharing and technical cooperation.

-Huyền Vy

Secondary investors selected to operate within the cluster must meet strict environmental and technological standards.

The Hanoi People's Committee has announced the establishment of two craft village industrial clusters in Thach That and Phu Xuyen districts, with a total investment of nearly VND370 billion ($14.2 million).

The Thach Xa Craft Village Industrial Cluster - Phase 1, located in Thach That district, spans 10 ha with a total investment of nearly VND250 billion ($9.6 million).

The project aims to allocate industries belonging to the region's traditional craft villages, including forestry product processing, wood product manufacturing and trading, high-quality handicrafts, and other legally compliant industries.

Secondary investors to be selected to operate within the cluster must meet strict environmental and technological standards, including clean industrial manufacturing, automated and modern technology, and adherence to sanitation regulations.

Additionally, enterprises must relocate production facilities from residential areas to centralized production zones while maintaining compliance with the outlined criteria.

Meanwhile, the Son Ha Craft Village Industrial Cluster - Phase 1, situated in Phu Xuyen district, covers 5 ha.

The main industries operating within this cluster include wallet and bag production, hammock sewing, silk netting, mother-of-pearl inlay, carpentry, lacquerware, and mechanical manufacturing.

Currently, the city has designated Hung Thinh General Import-Export and Construction Joint Stock Company as the investor for this project, with a total investment of over VND115 billion ($4.42 million).

-Hoàng Bách

Gia Binh airport is under construction in Bac Ninh province with capacity of handling 5 million passengers by 2030.

Prime Minister Pham Minh Chinh has signed a Decision on establishing a Government task force directing the implementation of a projected road connecting Gia Binh airport in northern Bac Ninh province with the capital city of Hanoi.

The task force is headed by Deputy Prime Minister Tran Hong Ha.

It is tasked to direct relevant ministries, agencies and localities to implement the project, and seek measures to deal with difficulties and obstacles hindering the project.

Construction of the dual-use Gia Binh Airport started on December 10, 2024 with an investment capital estimated at over VND4.43 trillion ($174.6 million).

Under the revised plan, the airport is expected to accommodate 5 million passengers by 2030 and handle 250,000 tons of cargo annually.

Earlier, the PM requested relevant ministries and agencies to submit a construction plan for the projected road in June this year.

-Gia Huy

The runway's lighting system has been activated and ready for test flights before April 30.

Construction of the first runway at Long Thanh International Airport in southern Dong Nai Province has been complete, according to the Airports Corporation of Vietnam (ACV).

The lighting system for the runway has been activated, passed trial operations, and is now ready for test flights before the country's Reunification Day (April 30), as directed by the Prime Minister.

The system uses 100-per cent LED technology imported from Europe, meeting the highest technical standards in international aviation.

The airport is also equipped with an ILS/DME precision landing guidance system, which helps aircraft approach and land safely even in poor weather.

The two systems are integrated to ensure safe and precise takeoffs and landings under any weather condition, enhancing the airport’s operational capacity and stability, according to the ACV.

Long Thanh International Airport is one of key national projects, which covers an area 5,000ha. Total investment capital is estimated at over VND336.6 trillion ($12.8 billion).

The first phase of the airport is scheduled for completion in 2026 with the construction of the runway and a passenger terminal with an annual capacity of serving 25 million passengers.

 

-Quỳnh Nguyễn

The draft resolution on the establishment of international financial centers in Vietnam expected to be passed in May.

The Government is committed to always accompanying businesses, creating the most favorable conditions for enterprises to expand their investment in international financial centers in Vietnam as well as invest in other ecosystems that they are interested in, according to Permanent Deputy Prime Minister Nguyen Hoa Binh. 

The Permanent Deputy Prime Minister was quoted by the Vietnam News Agency as speaking  at a meeting with representatives from ministries, agencies, international institutions, banks, investment funds and investors in Hanoi on April 28, that  he hoped  international organizations and financial institutions that have been doing business successfully in Vietnam will be the first members to be present at Vietnam’s first international financial centers and have a foothold in this market.

Discussing the National Assembly (NA)'s draft resolution on the establishment of international financial centers in Vietnam, many participants said that it has made great strides, in line with international practices and standards on the construction, operation and development of a modern international financial center.

According to a representative of Temasek investment fund, the draft resolution has approached international practices. This is an important legal framework for the process of forming, operating and developing an international financial center in Vietnam according to international standards and practices with outstanding and breakthrough policies, a separate arbitration mechanism, attractive tariff incentives, and modern asset management.

Representatives of banks such as Standard Chartered, ADB, HSBC, SSI Fund, and the Japan International Cooperation Agency (JICA) hoped that the draft resolution will clarify the regulations on preventing money laundering, the application of laws in international financial centers in the correlation between Vietnamese laws and foreign laws according to international practices.

According to Mr. Binh, the draft resolution is expected to be passed by the NA in May, providing a legal framework for the establishment and development of international financial centers in Vietnam.

 

-Vân Nguyễn

The forum held on April 28 as part of Japanese Prime Minister Ishiba Shigeru’s official visit to Vietnam.

Prime Minister Pham Minh Chinh and his Japanese counterpart Ishiba Shigeru attended the Vietnam-Japan Forum on cooperation in strategic industries, high technology, green transition, and semiconductors in Hanoi on April 28, according to a report from the Vietnam News Agency.

The event was attended by leaders of ministries, agencies, and Government bodies from both countries, along with more than 300 delegates representing Vietnamese and Japanese businesses and universities.

In his address, PM Ishiba highlighted Japan’s role in Vietnam’s economic growth since the 1990s when its manufacturing sector expanded into the country. He praised Vietnam’s 100-million-strong market and skilled workforce, calling it a prime investment destination.

Reflecting on his visit to Thang Long Industrial Park, PM Ishiba underscored the deep ties between Japanese and Vietnamese firms. Amid global economic uncertainties, he underlined the potential for both nations, with interconnected supply chains, to collaborate on advancing industrial capabilities.

Japan, he affirmed, is committed to supporting Vietnam’s resilience to external shocks through close public-private partnerships, including workforce training and carbon emission reduction, in line with the "New Era" vision outlined by Party General Secretary To Lam.

PM Ishiba welcomed Vietnam’s focus on high value-added to drive industrialization, modernization, and administrative reform.

To this end, according to the Japanese PM, Japan will launch a semiconductor technology engineer training program at Vietnam-Japan University and host about 250 doctoral researchers in the semiconductor field, supporting half of Vietnam’s national target. Japan will also expand next-generation human resources exchanges in advanced sci-tech. Additionally, Japan will back the construction of a polycrystalline silicon production plant and promote carbon reduction in Vietnam’s industrial parks. Collaboration with Vietnam’s National Innovation Centre (NIC) is connecting startups with leading enterprises, yielding early successes.

In energy and carbon reduction, joint projects in offshore wind power, power transmission networks, and biomass energy are progressing. PM Ishiba expressed Japan’s eagerness to deepen public-private cooperation for a stronger, mutually beneficial partnership.

In response, PM Chinh stressed Vietnam’s people-centered approach, with sci-tech and innovation as key drivers, and international cooperation as a breakthrough. He outlined Vietnam’s foundation on three pillars: socialist democracy, a socialist rule-of-law state, and a socialist-oriented market economy, underpinned by proactive, substantive and effective global integration.

He detailed Vietnam’s “strategic quartet”, including making breakthroughs in sci-tech, innovation and national digital transformation; streamlining the political and administrative systems; fostering the growth of the private sector; and deepening global integration in the new context.

Vietnam is committed to developing an innovation ecosystem, improving institutional frameworks, expanding infrastructure, enhancing workforce quality, and drastically improving business environment, aiming for a green, inclusive, and sustainable economy, the Vietnamese PM said.

He assured that Vietnam views the foreign-invested sector as a vital component of the economy, guaranteeing investors’ legitimate rights and interests, political stability, social safety and order, and favorable investment policies.

Vietnam prioritizes efficiency in time, brainpower, decisive and timely actions to seize opportunities without delay, he said, adding that the country commits to mutual listening and understanding among businesses, the State and the public; sharing visions and actions for rapid and sustainable development; and working together for mutual success, prosperity, happiness, and national pride.

PM Chinh called for continued Japanese official development assistance (ODA), particularly in strategic industries, hi-tech, digital transformation, green transition, and innovation. He sought enhanced cooperation in technology transfer, green finance, workforce training, semiconductor, artificial intelligence, international financial centers, and green transition, urging Japan to further support the NIC as a nucleus of Vietnam’s innovation ecosystem. He also encouraged Japanese firms to expand investments in strategic sectors to boost Vietnam’s competitiveness and integration into global value chains.

At the forum, representatives from Vietnamese and Japanese firms discussed strategic cooperation, introduced outstanding initiatives, and signed agreements to foster a hi-tech and innovation-driven partnership ecosystem.

Vietnam is rolling out comprehensive policies to develop strategic industries, including artificial intelligence, semiconductors, big data, clean energy, green technology, and digital infrastructure. The country aims for its digital economy to contribute at least 30% of GDP by 2030, rank among the top 40 globally in innovation, and achieve net-zero carbon emissions by 2050.

Japan remains a trusted and strategic partner, with foreign direct investment exceeding $78 billion  and its position as Vietnam’s largest ODA provider.

-Vân Nguyễn

Herbalife Vietnam has been recognized among the Top 30 Outstanding FIEs at the Golden Dragon Awards 2025 for sustainable growth.

Herbalife Vietnam, a premier health and wellness company, has been ranked among the Top 30 Outstanding Foreign-Invested Enterprises (FIEs) in Vietnam in the Sustainable Brands Growth category at the Golden Dragon Awards (GDA) 2025, hosted by Tap chi Kinh te Viet Nam / VnEconomy / Vietnam Economic Times. The GDA recognizes FIEs that operate effectively, achieve significant production and business results, and actively contribute to both the local and national economy.

The GDA program surveys, reviews, honors, and promotes reputable FIEs based on five key criteria: business results; brand building, development, and protection; corporate responsibility; green and sustainable business development; and the application of digital transformation. Among hundreds of submissions, the top 30 enterprises were selected based on the program's criteria to be honored at GDA 2025.

"We attribute this proud recognition to the continued strong support and trust from our customers and relevant stakeholders," said Mr. Vu Van Thang, General Manager for Herbalife Vietnam and Cambodia. "As a premier health and wellness company, we have always been strongly committed to helping people live healthier lives through balanced nutrition and active lifestyles, together with direct support from our Independent Members."

Operating in Vietnam since 2009, Herbalife Vietnam has been named one of the Top 500 Companies in Vietnam (VNR500) by Vietnam Report (VNR) for the sixth consecutive time and has been honored by the Vietnam Intellectual Property Association among the Top 10 Famous Trademarks in Vietnam.

The company has also been awarded the Golden Product for Public Health Award by the Vietnam Association of Functional Food (VAFF) for ten consecutive times. Currently, in Vietnam, Herbalife offers nine product categories: Health Supplement/Weight Management, Immune Health, Heart Health, Digestive Health, Bone and Joint Health, Eye Health, Fitness and Energy, Skin and Hair Health, and Sleep and Relaxation Support.

Herbalife (NYSE: HLF) is a premier health and wellness company, community, and platform that has been changing people’s lives with great nutrition products and has provided a business opportunity for its independent distributors since 1980. The company offers science-backed products to consumers in more than 90 markets through entrepreneurial distributors who provide one-on-one coaching, as well as a supportive community that inspires customers to embrace a healthier, more active lifestyle to live their best lives.

Herbalife’s products are available exclusively through its independent members. To learn more about Herbalife products, please contact:

• Hotline: +84-28-38279191

• Email: dichvuthanhvien@herbalife.com

• Website: https://www.herbalife.com/vi-vn/footer/contact-us

-Diep Linh

Japanese PM Ishiba Shigeru is paying an official visit to Vietnam from April 27-29.

Prime Minister Pham Minh Chinh and Japanese counterpart Ishiba Shigeru held summit meeting in Hanoi on April 28 to discuss bilateral relations and international issues of mutual concern, according to a report from the Government News.

 During the talks, Prime Minister Pham Minh Chinh expressed thanks to Japan for its active assistance for Vietnam to overcome the devastating consequences of Yagi typhoon last year and during the COVID-19 pandemic time.

Vietnam regards Japan as a trustworthy partner of top important, affirmed the Vietnamese PM, saying both countries enjoy vast cooperation potential on the basis of high political trust, long-standing people-to-people exchanges and complementary economies.

PM Chinh took the occasion to share that Vietnam is promoting science and technology development, streamlining the political system apparatus, advancing the development of private economy, and building an independent and self-reliant economy in association with extensive, substantive and effective international integration.

PM Ishiba, for his part, spoke highly of Vietnam's position and role in the region and the world, reassuring that Japan will continue support for Vietnam to build an independent and self-reliant economy, promote modernization and industrialization, and development science and technology in the new era – the era of the Vietnamese nation's rise.

In a sincere, friendly and trustful atmosphere, the two leaders expressed their pleasure at the comprehensive advancement of the Vietnam-Japan comprehensive strategic partnership established in 2023.

The two PMs agreed on major orientations and measures to further elevate the bilateral ties to new heights in five domains: economy, human resource connectivity, defense and security, science and technology, green transition, and multilateral collaboration in a sincere, practical, effective and mutually beneficial fashion.

They  agreed to continue strengthening political trust through annual exchange of high-level contacts and visits, improving the role of cooperation and dialogue mechanisms.

The two PMs  agreed to foster defense and security cooperation including military technology, settlement of war consequences, search and rescue, cyber security, UN-led peacekeeping operations.

Both sides also agreed to upgrade the dialogue mechanism at deputy foreign ministerial level to dialogue 2 plus 2 (at deputy foreign ministerial and deputy defense ministerial level), and to convene the first dialogue of this kind in 2025.

 

The two leaders agreed to further deepen economic cooperation as the key pillar of the bilateral ties; promote high-tech agriculture cooperation and sign a joint vision statement for medium and long-term cooperation in agriculture for 2025 - 2030 period in 2025.

The two PMs agreed that cooperation in science and technology, innovation and high-quality human resource training will become the new pillar of the bilateral relations. From this perspective, the two sides will promote cooperation in such fields like digital economy, semiconductor, atomic energy, internet of things, artificial intelligence, green transition, energy transition.

PM Ishiba affirmed that Japan will support joint research projects and PhD training in semiconductor field through the Networked Exchange, United Strength for Stronger Partnerships between Japan and ASEAN (NEXUS).

He announced that Japan wishes to implement 15 projects in the field of energy transition worth more than $20 billion within the framework of the Asia Energy Transition Initiative (AETI) and the Asia Net Zero Emission Community (AZEC).

The two leaders agreed to kick-start negotiations on a social insurance agreement between Vietnam and Japan in 2025.

On multilateral aspect, the two sides underscored the importance of maintaining the international order, and free, open, inclusive and rules-based trading system on the basis of respect for the fundamental principles of international law and the UN Charter.

They affirmed the importance of maintaining peace and stability, resolving disputes in the East Sea through peaceful means on the basis of international law, especially the 1982 UN Convention on the Law of the Sea, the Declaration on the Conduct of Parties in the East Sea (DOC), and soon formulating an effective and efficient Code of Conduct in the East Sea (COC).

PM Ishiba affirmed that his country will coordinate closely with and support Vietnam to successfully host the APEC Year 2027.

PM Chinh thanked Japan for attending the 2025 P4G Summit, announcing that Vietnam will send a delegation to attend the EXPO 2025 Osaka.

-Vân Nguyễn

Regulatory reforms, financial support, improved infrastructure, and tax incentives have collectively created fertile ground for private sector development, according to GIZ Vietnam.

Sustained government support is crucial for enabling Vietnam’s private sector to meet the rising global demand for environmentally and socially sustainable goods and services, the Government News has quoted Dr. Michaela Baur, Country Director of GIZ Vietnam, as reporting.

Speaking on the evolving role of the private sector in Vietnam's economy, Dr. Baur noted: "The private sector is becoming the heart of the Vietnamese economy, contributing over 51 per cent of GDP, generating more than 30 per cent of state budget revenue, and employing over 40 million people—82 per cent of the workforce."

Despite being dominated by micro and small enterprises—over 95 per cent—Vietnam's private sector is poised for growth.

"Tiny companies can grow to small, small to medium, and so on. Their relevance and involvement in global value chains will increase further," Dr. Baur added.

She emphasized the need for predictability, investment capital, skilled labor, strong value chain partnerships, and greater operational freedom as key enablers for enterprise growth and innovation.

Vietnam's ambition to achieve double-digit growth and become a high-income, industrialized country by 2045 depends heavily on a stronger, more innovative private sector, according to Dr. Baur.

"More companies, bigger companies, more innovation, more integration with global markets—and importantly, greener and more sustainable," she said.

The domestic private sector benefits from a favorable ecosystem including a youthful workforce, robust economic momentum, government support, digital transformation opportunities, and increasing foreign investment, Dr. Baur remarked, adding that regulatory reforms, financial support, improved infrastructure, and tax incentives have collectively created fertile ground for private sector development, particularly in high-value, tech-driven, and sustainable industries.

Still, challenges remain—especially in human capital. While skill development is improving, a gap persists between market needs and workforce capabilities, compounded by regional mismatches between labor supply and demand.

GIZ supports Vietnam's private sector through four key areas namely Energy (transitioning to renewable and boosting efficiency); Environment and Climate Change (spanning agriculture, climate, forestry, and transport); Technical and Vocational Education and Training (equipping the workforce with market-relevant skills); and Sustainable Economic Development (promoting inclusive and long-term sustainable economic growth).

 

"The overarching theme of our work is just transition," said Dr. Baur. "We work with and for the private sector on behalf of the German government, the EU, Switzerland, and others."

Germany's partnership with Vietnam in private sector development dates back to the early 1990s, contributing to key legal reforms including the Law on Domestic Investment Promotion (1994, 1998) and the Law on Enterprises (2000).

Today, GIZ's role has been expanded to promoting circular business models, helping SMEs integrate into ASEAN's liberalized markets, supporting digital and green transitions and strengthening their participation into global supply chains.

As part of its forward-looking initiatives, GIZ will establish a Twin Transition Hub in partnership with Vietnam’s Agency for Enterprise Development. The hub will support SMEs in the green and digital transition, particularly in Garment and textile, agro-processing and wood and paper processing

Other Programs of GIZ will help startups develop strategic plans, access international markets, and minimize waste, reinforcing Vietnam's circular economy ambitions.

"Germany's economy is built on SMEs—many of them are hidden champions. We're eager to share this know-how so Vietnam can develop its own models that fit its unique context," Dr. Baur said.

Dr. Baur offered several policy recommendations to further enhance private sector development: Streamlining regulations and promote e-Government to ensure transparency Improving SME financing by supporting digital lending and alternative financing platforms, and enhancing capital markets; upskilling the workforce, particularly for then digital economy, and subsidize rural digitalization efforts; and ensuring fair competition by accelerating SOE (State-owned Enterprises) reforms and creating a level playing field for private firms.

In conclusion, Dr. Baur emphasized that inclusive green growth is the inevitable path for Vietnam. Sustained government support is critical to ensuring the private sector can thrive in global value chains while meeting sustainability standards.

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New agreements between Vietnam and Russia on bilateral cooperation in oil and gas sector are expected to be signed in May.

Deputy Minister of Industry and Trade Nguyen Hoang Long had a working session with Russia’s Deputy Minister of Energy Roman Anatolievich Marshavin, during the former's working visit to Russia from April 23-25.

During the working session, the two sides reviewed and finalized a protocols amending the Intergovernmental Agreement on the Vietnam-Russia Joint Venture Vietsovpetro and Rusvietpetro Company Limited, and the Intergovernmental Agreement on expanding the area of ​​operation in the field of geological exploration and oil and gas exploitation. These agreements are expected to be signed during the upcoming official visit of a high-level delegation of Vietnam to Russia in early May.

Both Deputy Ministers highly praised the tireless efforts of experts from both countries in preparing  the draft documents within an extremely tight timeframe. The signing of these agreements will demonstrate the strong political commitment from both nations to deepening their energy cooperation.

Mr. Marshavin emphasized that building upon the achievements and strong political commitment from both countries' leadership, these new Protocols and Agreements will usher in a new phase of deeper and broader cooperation between Vietnam and Russia in the oil and gas sector.

Both sides expressed their hopes that more effective collaborative projects would soon be implemented, contributing to energy security and sustainable development for both nations.

Within the framework of the working visit, Deputy Minister Nguyen Hoang Long also held working meetings with the leadership of Zarubezhneft Group and Rosatom Group (Russia) to discuss and explore opportunities for expanding cooperation into new areas such as LNG, renewable energy, and nuclear power.

-Phuong Hoa

The project will be executed in three phases, with completion expected between 2027 and 2030.

The central province of Thanh Hoa, in collaboration with Sun Group, held a groundbreaking ceremony on April 26 for the Commercial Service and Cable Car Area Project within the Am Tien Spiritual Tourism and Historical Relic Complex.

The Am Tien Spiritual Tourism and Historical Relic Complex Project, named "Legend of Am Tien," is being developed in the Nua Mountain area, covering a total area of nearly 350 ha.

The VND35 trillion ($1.34 billion) project will be executed in three phases, with completion expected between 2027 and 2030.

Speaking at the event, Nguyen Van Thi, Standing Vice Chairman of the Provincial People's Committee, highlighted: "This is a significant milestone that affirms the province’s potential, strengths, and dedication to promoting cultural and historical values for tourism development, thereby advancing socio-economic growth."

-Nguyễn Thuấn

As Vietnam’s factories shift from manual labor to smart technologies, German expertise in automation is helping power the country’s next industrial leap.

It often starts with a simple question during a factory visit in Vietnam: “Why are there so many workers on this line?”

Foreign guests, especially those familiar with factories in Europe or East Asia, are often surprised. In many Vietnamese manufacturing plants, tasks that are fully automated elsewhere are still done by hand. Rows of workers assemble parts, label products, or manage packing manually. It’s not unusual to hear the explanation: “Labor here is still affordable.”

For decades, this has been Vietnam’s competitive edge. A young, abundant workforce powered the country’s rise as a manufacturing hub. Products “Made in Vietnam” may not have been high-tech, but they were made quickly and cost-effectively.

But today, a quiet shift is happening, one that’s beginning to reshape shop floors and business models across the country.

Source: National Statistics Office (Ministry of Finance)

Drivers behind automation adoption

• Workforce shortages rising labor costs

Vietnam has historically been recognized for its competitive labor costs, attracting numerous manufacturing investments. However, recent data indicates a steady rise in wages due to economic growth and an increased demand for skilled workers. According to the National Statistics Office (Ministry of Finance), the average monthly income of Vietnamese wage workers reached VND7.7 million ($308) in 2024, marking an 8.6% increase from 2023. The manufacturing sector experienced an even steeper increase of 12% income growth during this period.

This rise in labor costs is further intensified by labor shortages in many of Vietnam’s industrialized regions, such as Binh Duong and Dong Nai. When driving through industrial parks in this area, guests will notice red signs in front of many factories advertising jobs that can only be filled with difficulty. The successful manufacturing business is leading to growth pains in the form of labor shortages that employers must address.

These labor trends are prompting manufacturers to seek automation solutions to maintain cost efficiency and competitiveness.

• Increasing quality demands

When thinking about typical Vietnamese exports, many international observers may still have clothing, footwear, and agri-produce in mind. While these still are important export industries, the most important trade goods of the country are electronics.

As Vietnam deepens its integration into global supply chains, international clients are setting increasingly higher quality standards in terms of precision engineering demand. These make advanced automation essential. By adopting these technologies, Vietnamese manufacturers can enhance product quality, boost efficiency, and strengthen their position in the global value chain.

Vietnam’s mold manufacturing sector is vital for industries like automotive and electronics. While full automation is often not feasible due to single-piece production, certain steps, such as CNC machining or quality control, can still benefit from targeted automation.

Beyond manufacturing, automation is also transforming Vietnam’s logistics sector. The integration of automated warehouse systems has not only improved operational efficiency but has also created high-tech jobs, further reinforcing the country’s industrial capabilities and readiness for global competition.

Illustration of robotics and automation at work inside a factory. Photo: Freepik AI Suite

Automation as the solution

Automation has been a major force behind Germany's industrial growth, crucial in economic value creation. In 2024, the country's industrial automation sector contributed 19.7% to the total manufacturing GDP, according to the German Federal Statistical Office (Destatis). With a traditionally larger industrial sector than other major EU economies, Germany exemplifies how technology adoption drives productivity and fosters innovation.

For Vietnam, automation presents an opportunity to accelerate its industrial development. By implementing smart manufacturing solutions, Vietnam can enhance operational efficiency, reduce errors, and achieve greater production scalability. This shift will support the country’s goal of becoming a high-tech manufacturing hub, as outlined in Resolution No. 23/NQ-TW, which aims for the industry to contribute over 40% of GDP by 2030.

Vietnam’s efforts toward automation

Vietnam is accelerating its Industry 4.0 agenda through strategic initiatives designed to drive digital transformation and technological innovation.

One key initiative is the National Digital Transformation Program, launched in June 2020, which outlines ambitious goals for 2025 and a long-term vision for 2030. The program prioritizes expanding broadband coverage, increasing electronic payment adoption, and integrating digital platforms across industrial parks and export processing zones to enhance efficiency and competitiveness.

Additionally, the government is implementing industrial policies that emphasize automation in priority sectors such as electronics, automotive, and logistics. To attract investment in these high-tech industries, businesses can benefit from preferential tax rates, tax holidays, and land rent exemptions, making Vietnam an increasingly attractive destination for technology-driven manufacturing.

Despite these proactive efforts, challenges remain. A significant skills gap in technical expertise continues to hinder the adoption of advanced technologies. Moreover, the high initial costs of automation and the complexities of integrating new systems with existing infrastructure pose additional barriers for businesses.

To overcome these challenges, collaboration with international automation leaders can play a crucial role. Through knowledge transfer, technical support, and investment, these partnerships can help Vietnamese enterprises successfully navigate the transition to Industry 4.0, strengthening their position in the global value chain.

Factory automation – made in Germany symposium

Supporting the automation transition in Vietnam, the Factory Automation – Made in Germany Symposium serves as a premier platform for Vietnamese businesses to explore world-class German expertise in industrial automation. Organized by the Delegation of German Industry Commerce in Vietnam (AHK Vietnam) in collaboration with leading German technology providers, this event highlights groundbreaking solutions that will shape the future of Vietnam’s manufacturing landscape.

This event will feature leading German automation providers, offering Vietnamese businesses the chance to explore innovative solutions for smart manufacturing. Some of the key participating companies include Bosch Rexroth Vietnam, Beckhoff Automation, Baumer Group, Fibro Rundtische, TRUMPF Vietnam, Wuerth Industry Service Vietnam, and SEW EURODRIVE Vietnam.

Unlocking new opportunities in factory automation

The symposium, organized by AHK Vietnam, offers a valuable platform for Vietnamese businesses to enhance their production capabilities through advanced automation. The event will showcase state-of-the-art technologies designed to improve efficiency, reduce costs, and drive competitiveness in an increasingly digitalized manufacturing landscape.

Participants will have the opportunity to engage directly with leading German technology providers, gaining insights into best practices for smart manufacturing and Industry 4.0 integration.

As Vietnam continues its journey toward industrial automation and smart manufacturing, collaboration with trusted and experienced technology providers is crucial. German companies, with their reputation for precision engineering, innovation, and reliability, are well-positioned to drive this transformation.

The Factory Automation – Made in Germany Symposium is more than just an event – it is a gateway to the future of smart manufacturing in Vietnam. Don’t miss this opportunity to explore groundbreaking automation solutions and build lasting business connections.

-Diep Linh

The project has a total investment of over VND2 trillion ($79.7 million).

The People's Committee of Thu Duc City (Ho Chi Minh City) officially launched a project to upgrade and expand Nguyen Thi Dinh Street on April 26, covering the section from Giong Ong To Bridge to My Thuy Bridge, spanning nearly 2 km.

Nguyen Thi Dinh Street will be widened from its current 7-8 m to 30 m, featuring a 21-meter-wide roadway with six lanes and sidewalks measuring 4.5 m on each side.

The project has a total investment of over VND2 trillion ($79.7 million), with more than 80% of the land already handed over for construction.

Speaking at the ceremony, Mr. Nguyen Bach Hoang Phung, Vice Chairman of the People's Committee of Thu Duc City, highlighted the project's significance in improving urban connectivity, reducing goods transportation time, and alleviating traffic congestion, particularly at major traffic hubs such as Cat Lai and Phu Huu ports.

The construction is expected to take 14 months, with completion scheduled for June 2026.

Nguyen Thi Dinh Street is a key traffic artery leading to Cat Lai Port, handling a high volume of vehicles daily.  Its expansion is part of a broader infrastructure development plan in Thu Duc City, which includes major projects such as Ring Road 3, An Phu Interchange, My Thuy Interchange, Nam Ly Bridge, and Tang Long Bridge.

-Phạm Long

Total investment capital is estimated at VND5.4 trillion ($208.7 million).

Construction of Aeon Mall Can Tho in the Mekong Delta city of Can Tho, the largest shopping mall in the region, kicked off on April 26, according to a report from the Vietnam News Agency.

Total investment capital is estimated at VND5.4 trillion ($208.7 million).

The construction will be divided into two phases. In phase 1, a shopping center with a floor area of nearly 114,000 sq.m will be built. Phase 2 will see the construction of a second shopping center and a parking building, with a total area of 81,100 sq.m.

Phase 1 is expected to become operational within 36 months. Phase 2 will be carried out within 10 years after the completion of Phase 1, depending on the local and regional economic situation.

 

-Vân Nguyễn

The industrial park has a total investment capital of over $69 million, with the investor contributing $10.37 million.

The People's Committee of the southern province of Dong Nai has approved a construction zoning plan for Long Duc 3 Industrial Park, located in Long Duc and Loc An communes, Long Thanh district.

Spanning over 244 ha, Long Duc 3 Industrial Park is designed as a modern, multi-sector industrial zone, prioritizing sustainable development, environmental protection, and energy efficiency. The project will integrate renewable energy solutions to minimize its environmental impact.

Following an ecological industrial park model, Long Duc 3 aims to attract industries utilizing advanced and environmentally friendly technologies, with a focus on high-tech and supporting industries.

In July 2023, the Prime Minister approved the investment policy for the Project on Investment in Construction and Business of Infrastructure of Long Duc 3 Industrial Park.

The industrial park has a total investment capital of VND1.8 trillion (over $69 million), with the investor contributing VND270 billion ($10.37 million).

-Hồng Minh