The initiative aligns with the province's overarching vision to develop its Thanh Hoa City into a modern, dynamic, and sustainable urban hub.

The People's Committee of  central Thanh Hoa Province has officially approved a detailed zoning plan for Area 8A at a 1/2000 scale, marking a significant milestone in the urbanization journey of the province's Thanh Hoa City.

The initiative aligns with the province's overarching vision to develop the provincial capital into a modern, dynamic, and sustainable urban hub.

Strategically located in the southeastern urban area of Thanh Hoa City, Area 8A encompasses the wards of Quang Hung, Quang Phu, Quang Tam, and Quang Cat.

Spanning an area of approximately 1,652 ha, the zone is bounded by the Ma River to the northeast, Dong Son and Dong Hai wards to the northwest, Sam Son City to the southeast, and National Highway 47 along with sub-area 8B to the southwest.

With its advantageous geographical position, Area 8A is poised to become a multi-functional urban center, serving as a vital connection between Thanh Hoa City and Sam Son City. This area is envisioned as a cornerstone of regional development, fostering economic growth and improving connectivity.

According to the approved zoning plan, the population of Area 8A is projected to reach about 75,000 by 2040—nearly three times larger than its current size.

-Thiên Anh

The Long Bien Bridge, which spans the Red River, was built from 1898 to 1902 by the Daydé Pillé Company (France) and put into operation in 1903.

Hanoi has announced the approval of a technical assistance project called "Research on the Renovation of Long Bien Bridge," funded by a non-refundable grant from the French Embassy in Vietnam through the FASEP Fund under the French Ministry of Economy and Finance, totaling nearly VND20 billion (over $784,000).

The project aims to determine the feasibility of solutions for ensuring structural safety and alternative uses of the bridge in the future. This includes the safety of people and vehicles using the structure, its heritage value, and scenarios for its future use.

The project consists of three components: Survey, data collection, and analysis/evaluation; Proposing short-term renovation and repair solutions for the bridge to ensure traffic safety; and Researching and proposing options for its future use when the national railway line through the bridge is discontinued and handed over to the Hanoi People's Committee for management.

The project will be implemented over 11 months and is expected to be completed in 2025.

Previously, in 2023, the French Embassy sent a letter to the Hanoi People's Committee offering approximately €700,000 in technical advice and support for research into renovation and repair options for the Long Bien Bridge.

The Long Bien Bridge, which spans the Red River, was built from 1898 to 1902 by the Daydé Pillé Company (France) and put into operation in 1903.

The bridge is 2,290 m long over the river and has 896 m of approach spans. It has a single-track railway running in the middle, with roads for motorized vehicles and pedestrians on either side.

-Hoàng Bách

In February and the first two months of 2025, the socio-economic situation recorded many positive developments. In which, the total import and export turnover of goods in the first two months reached $127.07 billion, up 12% y-o-y. The consumer price index (CPI) in February increased by 2.91% year-on-year...@media (max-width: 768px) { .detail__content iframe[data-name="webhtml"] { border: 1px solid #ccc !important; width: 100% !important; min-height: calc(100vh + 200px) !important; } } @media (min-width: 800px) { .detail__content iframe[data-name="webhtml"] {width:1024px; height:680px;} }

-Vietnam Economic Times/ VnEconomy

The My Thuy port project comprising 10 berths.

The first berth of the My Thuy Port project in central Quang Tri province is said to be expected for completion in November this year, according to its investor.

The project was resumed in March 2024 after a four-year hiatus.

Spearheaded by the My Thuy International Port Joint Stock Company (MTIP), the project received investment approval from the Prime Minister on January 4, 2019.

Situated in Hai Lang district, the 685-ha project has a total investment capital exceeding VND14.23 trillion ($555 million), with the investor's contribution amounting to VND2.143 trillion ($83.6 million).

The project is divided into three phases, comprising 10 berths totally.

In the first phase (2024-2026), four berths will be constructed to accommodate vessels of up to 100,000 DWT, featuring a total quay length of 1,300 meters, a wharf length of 1,341.5 meters, and a width of 41.5 meters. The first berth is slated for completion in November this year while the second berth is scheduled for completion in February 2026.

 

 

 

-Xuân Nghi

The fund aims to mobilize social resources to increase low-cost housing supply

Under Prime Minister Pham Minh Chinh’s directive, a national housing fund will be established later this month.

The Prime Minister made the instruction during a video-teleconference on social housing development, held in Hanoi on March 6, according to the Government News.

The fund aims to mobilize social resources to increase low-cost housing supply in Vietnam, especially in major urban centers.

The demand for social housing is very high in Vietnam but construction process remains slow.

The PM tasked relevant ministries, agencies and localities perform their tasks in line with their functions, duties, and authority and deploy breakthrough solutions on social housing development.

He was quoted by the Government News as saying at the video-teleconference that the Government targets to cut at least 30 per cent of administrative procedures in 2025 in a bid to speed up construction progress.

The Ministry of Construction was assigned to review and propose preferential policies for social housing development, which must be submitted to the Prime Minister either this month or in April.

Vietnam targets to build at least 1 million social housing units for low-income earners and workers at industrial parks during the 2021–2030 period.

However, so far, only 103 projects with 66,755 apartments were completed, equivalent to less than 7 per cent of the preset goal. Meanwhile, 137 other projects have been under construction with 114,618 apartments. Over 400 other projects got construction licenses with 412,200 apartments.

-Phạm Long

The total area of newly planted forests nationwide reached approximately 20.1 thousand hectares, an 8.8% increase year-on-year.

The first two months of 2025 witnessed remarkable growth in forestry and seafood production, according to the Ministry of Finance’s National Statistics Office.

Timber production surged, marine seafood harvesting yielded encouraging results, and aquaculture benefited from high market prices for farmed products.

In the forestry sector, the area of newly planted concentrated forests nationwide in February was estimated at 11.4 thousand hectares, marking an 8.5% increase compared to the same period in 2024. Timber production also saw a significant rise, reaching an estimated 1.33 million cubic meters—an 18.2% growth from the previous year. This increase was driven by higher raw wood prices, which motivated people to harvest mature timber.

Over the first two months of the year, the total area of newly planted forests nationwide reached approximately 20.1 thousand hectares, an 8.8% increase year-on-year.

Seafood production also recorded notable improvements. Total February seafood output was estimated at 650.5 thousand tons, a 4.0% increase compared to February 2024. Of this, fish contributed 479.6 thousand tons (up 4.1%), shrimp 69.3 thousand tons (up 5.4%), and other seafood 101.6 thousand tons (up 2.6%).

Aquaculture production for the month reached 362.5 thousand tons, reflecting a 4.6% growth year-on-year, while seafood harvesting achieved an estimated 288.0 thousand tons, a 3.2% rise. Cumulatively, total seafood production in the first two months of 2025 was estimated at nearly 1.3 million tons, an increase of 2.4% compared to the same period last year.

-Chương Phượng

Total registered capital hitting VND136.4 trillion ($5.32 billion).

Over 10,100 enterprises were established in February with total registered capital of nearly VND136.4 trillion ($5.32 billion), according to the Ministry of Finance’s National Statistics Office.

The figure represents a year-on-year rise of 34.4% in the quantity and a 2.1-fold increase in value.

It brings the total number of firms established in the first two months of the year to nearly 20,800 with total registered capital of over VND230.4 trillion ($8.99 billion), up 4.9% year-on-year in quantity but down 8.9% in capital.

Existing enterprises resuming operations in the past two months reached nearly 29,100, surging 53.2% compared to the same period last year.

The first two months also saw almost 56,900 businesses registering for a temporary suspension of operations, soaring 15.5% year-on-year.

-Anh Nhi

Seven working groups set up to monitor ministries, agencies and localities with low disbursement rate.

Prime Minister Pham Minh Chinh signed a decision on March 6 to set up 7 working groups to accelerate the disbursement of public investment capital.

They are in charge of reviewing obstacles facing public projects and proposing solutions to speed up the disbursement of public investment capital as well as improve capital use efficiency at those ministries, agencies and localities that have the disbursement rate lower than the national average.  

They are tasked to monitor the adoption of regulations on public capital allocation by ministries, agencies and localities annually.

The task forces will also review the implementation of measures to facilitate the disbursement of public investment capital by ministries, agencies and localities as directed by the Government and the Prime Minister.

They will report results and recommendations to the Prime Minister within five working days after finishing examining public capital disbursement by relevant ministries, agencies and localities.

 

-Mỹ Văn

As businesses accelerate their digital transformation journeys, Zebra's solutions will serve as a catalyst to enhance efficiency, boost productivity.

Zebra Technologies has announced its strategic focus for the Vietnamese market, highlighting key trends driving industry transformation, including mobility, cloud computing, artificial intelligence (AI), digitization, the on-demand economy, and automation.

At the recent Regional Partner Summit 2025 in Da Nang, the global leader in innovative digital solutions, hardware, and software reaffirmed its commitment to supporting partners and customers in Vietnam and Southeast Asia.

A representative from Zebra emphasized that as businesses accelerate their digital transformation journeys, Zebra's solutions will serve as a catalyst to enhance efficiency, boost productivity, and enable real-time decision-making across diverse industries.

The company's 2025 strategy for Vietnam is built on three main pillars.

First, through the PartnerConnect program, Zebra aims to strengthen collaboration and foster innovation with Vietnamese partners to achieve mutual success.

Second, Zebra is dedicated to continued investment in Vietnam, supporting local talent, promoting economic growth, and advancing digital transformation.
Third, Zebra offers tailored solutions to address the diverse needs of businesses in Vietnam, particularly in manufacturing, retail, transportation, logistics, and healthcare. These solutions aim to empower businesses to thrive in the digital age.

-Hoàng Anh

The development of a National Assembly Resolution is considered a vital step in realizing this vision.

The Government has approved a proposal from the Ministry of Finance to develop a National Assembly Resolution on establishing a Financial Center in Vietnam.

The projected Resolution aims to create a robust legal framework, foster the development of the financial market, attract leading global financial institutions, and ensure a level playing field for both domestic and foreign businesses.

This initiative is expected to strengthen Vietnam's integration with the global financial market, drive sustainable economic growth, enhance its international reputation, and ensure national financial security.

According to the Ministry of Finance, Vietnam stands out as a beacon of economic development, demonstrating macroeconomic stability and strong investment appeal. Moreover, Vietnam's leadership in adopting innovative financial technologies positions it to create a competitive edge and develop "unique" products for the Financial Center.

The country is steadily building the foundations necessary to develop a modern financial market and establish a Financial Center capable of connecting with regional and global financial hubs.

The development of the draft National Assembly Resolution is considered a vital step in realizing this vision. It will lay the groundwork for the successful formation of a regional and international financial center, helping Vietnam deepen its global financial ties, attract foreign financial institutions, mobilize new investment resources, and capitalize on shifting international capital flows.

-Ngân Hà

The total investment capital for the project is some $88.2 million, with the investor's contributed capital accounting for over $13.2 million.

The People's Committee of northern Nam Dinh province on March 6 approved the investment policy for the Hai Long Industrial Park (VSIP Nam Dinh), phase 1, on March 6.

Under the Commitee's decision, the Vietnam Singapore Industrial Park J.V., Co., LTD (VSIP) will be the main investor. 

The project aims to construct and operate infrastructure of the industrial park on an area of approximately 180 ha, located in Giao Long and Giao Chau communes, Giao Thuy district.

The total investment capital for the project is nearly VND2.25 trillion ($88.2 million), with the investor's contributed capital accounting for VND337.4 billion (over $13.2 million).

The project is expected to commence in the third or early fourth quarter of 2025 and complete all infrastructure by the fourth quarter of 2027. The project's operating term is 50 years, starting from the date the investor is granted lease land by the State.

According to the planning of Nam Dinh province for the period 2021 - 2030, with a vision to 2050, in addition to the Ninh Co economic zone, six industrial parks (Hoa Xa, My Trung, Bao Minh, Bao Minh expansion, Rang Dong Textile and Garment, My Thuan) and many industrial clusters are currently in operation.

The locality expects to develop 10 additional industrial parks and many new industrial clusters.

-Anh Nhi

The SJC-branded gold bars were sold at VND93 million ($3,631) per tael on March 6.

Gold prices in the domestic market skyrocketed to a one-month high on March 6 while the global bullion dropped slightly.

The SJC-branded gold bars were sold at VND93 million ($3,631) per tael on the day, up VND300,000 ($11.7) per tael compared to the previous day.

One tael equals 37.5 grams, or 1.2 ounces.

In the global market, the gold prices declined slightly by 0.03% to $2,917.1 an ounce on the same day, or nearly VND91.1 million per tael.

At this level, gold price in Vietnam is higher than the global price around VND1.4 million ($54.6) a tael.

 

-Phương Linh

The rise mainly driven by higher prices for food, rental housing, and transport services.

The Consumer Price Index (CPI) in February rose by 0.34% compared to January and 2.91% year-on-year, according to data announced by the National Statistics Office (NSO) on March 6.

The CPI increase was mainly driven by higher prices for food, rental housing, and transport services.

On average, the CPI in the first two months of the year soared by 3.27% compared to the same period last year.

Nine of the 11 groups of goods and services saw price increases and two groups decreased in price in February, according to the NSO. Transportation showed the largest increase among sectors, rising by 0.63%.

The NSO also reported that core inflation in the past two months surged 2.97% year-on-year.

-Vũ Khuê

Among 420 companies attending the event, 3 came from Vietnam.

THAIFEX - HOREC Asia 2025, one of the leading international exhibitions for the hotels, restaurants and catering (HoReCa) sector in Southeast Asia, officially held in Bangkok (Thailand) on March 5

Co-organized by the Department of International Trade Promotion (DITP) under the Ministry of Commerce of Thailand, the Thai Chamber of Commerce (TCC), and Koelnmesse (Germany), the THAIFEX - HOREC Asia 2025 took place from March 5 to 7 at the IMPACT Muang Thong Thani Exhibition Center in Bangkok (Thailand).

FOSTERING BUSINESS COOPERATION IN HORECA

With the theme “Shaping the Future of HoReCa”, THAIFEX - HOREC Asia 2025 was attended by 420 companies in the HoReCa sector not only from Thailand but also from across the globe, including 3 companies from Vietnam.

This year’s event boasts an expansive exhibition area of 27,000 sq m, offering an ideal platform for businesses in HoReCa sector to connect and explore new opportunities.

With strong recovery of the tourism and hospitality sectors following the global pandemic and Thailand’s solid position as a leading global tourist destination, the HoReCa industry is experiencing significant growth. In this context, THAIFEX - HOREC Asia 2025 is seen as a vital platform for businesses to grasp emerging trends, expand collaborations, and enhance trade connections both regionally and globally.

Addressing the opening ceremony, Thailand’s Minister of Commerce Pichai Naripthaphan emphasized that in order to foster and facilitate global trade and investment with Thailand, the Thai Government is committed to expanding Free Trade Agreements (FTAs) to open new potential markets.

Thailand’s Minister of Commerce Pichai Naripthaphan speaks at the opening ceremony of THAIFEX - HOREC Asia 2025 in Bangkok (Thailand).

Especially, Mr. Naripthaphan noted that the success of this event and the growth of the HoReCa industry underscore Thailand’s potential as a regional HoReCa business hub. 

POTENTIAL FOR COOPERATION BETWEEN VIETNAM AND THAILAND IN HORECA SECTOR

Both Vietnam and Thailand are considered top tourist destinations in Southeast Asia, attracting large numbers of international visitors every year. The robust development of the tourism industry has driven the demand for high-quality hotels, restaurants, coffee, and food services.

In this context, cooperation between the two countries in the HoReCa sector will not only help businesses expand their markets but also improve service quality, optimize supply chains, and contribute to the sustainable development of the tourism and culinary industries.

420 companies from 25 countries in the HoReCa sector joins the THAIFEX - HOREC Asia 2025.

In an interview with Vietnam Economic Times/ VnEconomy, Ms. Sunanta Kangvalkulkij, Director General of the Department of International Trade Promotion (DITP) under the Ministry of Commerce of Thailand, highlighted the many similarities between Vietnam and Thailand in the HoReCa sector, providing a strong foundation for enhanced cooperation.

Moreover, both countries are currently working on several joint projects. Examples of prominent cooperation activities include the development of Thai shopping mall systems in Vietnam (known as Central Vietnam), organizing food festivals and trade promotion events in the HoReCa sector, and facilitating business delegations. These initiatives not only help businesses access new markets but also provide opportunities for knowledge exchange, technology transfer, and capacity-building.

Furthermore, as regional integration deepens, strong cooperation between Vietnam and Thailand and other ASEAN countries is pivotal for driving regional economic development. Both countries not only benefit from their proximity but also share many cultural and culinary similarities, along with business models in the HoReCa sector.

“Therefore, I believe that Vietnam and Thailand can leverage their shared strengths to foster the HoReCa sector’s growth, expand trade cooperation, and create new opportunities for businesses in both countries within this promising industry,” Ms. Kangvalkulkij affirmed.

 

THAIFEX - HOREC Asia 2025 also features various special highlights and activities, including the ASEAN Barista Team Championship, the Thailand Ultimate Housekeeping Challenge, the THAIFEX - HOREC Xperiential Zone showcasing industry trends, and the Asian Pizza Show Academy. Additionally, the THAIFEX - HOREC Academy will offer expert-led seminars, workshops, live cooking demonstrations, and engaging activities throughout the three-day event.

With an expected attendance of over 20,000 visitors, buyers, and business professionals from around the world, THAIFEX - HOREC Asia 2025 aims to generate over THB4 billion in trade value.

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-Phuong Hoa

The goal is to build a resource recycling industrial park in Vietnam to promote the recycling industry and the circular economy through investment activities, technology exchange, promotion of the use of renewable energy.

Vietnam's Ministry of Agriculture and Environment and South Korea's Ministry of Environment are jointly accelerating progress on a resource recycling industrial park project.

This information was revealed during a meeting between Deputy Minister of Agriculture and Environment Le Cong Thanh and Mr. Kim Young Ki, Acting President of the Korea Environmental Industry Technology Institute (KEITI), on March 5.

Deputy Minister Thanh expressed sincere gratitude to the Korean government and KEITI for supporting the Ministry of Agriculture and Environment in developing and implementing environmental protection policies and projects, notably the Extended Producer Responsibility (EPR) regulations. To implement EPR, promote the circular economy, and recycling activities, Vietnam greatly needs to learn from the experiences of countries like South Korea.

During the meeting, Mr. Kim stated that Korea has been implementing EPR for a long time and is ready to share its experience with Vietnam to shape a circular economy in waste management.

Previously, in July 2024, the Vietnamese Ministry of Natural Resources and Environment (now the Ministry of Agriculture and Environment) and the Korean Ministry of Environment signed a memorandum of understanding on cooperation in establishing a Resource Recycling Industrial Park project.

The goal is to build a resource recycling industrial park in Vietnam to promote the recycling industry and the circular economy through investment activities, technology exchange, promotion of the use of renewable energy, and improvement of the welfare of workers involved in the recycling industry, aiming for sustainable development and contributing to the achievement of environmental goals.

"To quickly implement this project, Korea has sent EPR experts to coordinate with provinces and cities to conduct surveys before the two ministries carry out specific activities," said Mr. Kim.

-Tùng Dương

SAM's goal in building the largest data center in Vietnam is to create modern, world-class infrastructure, attracting both domestic and foreign customers.

Saigon Asset Management (SAM), a Ho Chi Minh City-based US private equity fund, announced the launch of the SAM DigitalHub data center project in southern Binh Duong province on March 4.

The SAM DigitalHub will be built on an area of 50 ha, with a capacity of 150 MW and a total target investment of up to $1.5 billion, in collaboration with the Vietnam-Singapore Industrial Park (VSIP) in Binh Duong.

The project focuses on ensuring a stable power supply and prioritizing the use of renewable energy, in line with Vietnam's energy transition trend, aiming to achieve 50% renewable electricity by 2030.

SAM's goal in building the largest data center in Vietnam is to create modern, world-class infrastructure, attracting both domestic and foreign customers, while making Vietnam an important destination in the digital economy of Southeast Asia.

According to Mr. Louis Nguyen, CEO of SAM,  the data security policy and the requirement to store user data in Vietnam, as stipulated in Decree 53/2022/ND-CP, are important driving factors for the development of data centers in the country.

"Previously, businesses often transferred data to Singapore, but now they are forced to return to Vietnam. This is a business opportunity that cannot be missed," he said.

According to a Cushman Wakefield report (2023), Vietnam ranks 3rd in Southeast Asia in terms of data center development prospects, thanks to electricity costs that are 40% lower than Singapore, a young population, an internet penetration rate of 80%, and favorable tax policies for technology businesses.

-Quỳnh Nguyễn

Manufacturing and processing sector leading the growth.

Vietnam’s Index of Industrial Production (IIP) jumped 7.2% year-on-year in the first two months of the year, according to the National Statistics Office (NSO) under the Ministry of Finance.

Breaking down sector performance, the manufacturing and processing sector saw a year-on-year rise of 9.3%, the electricity production and distribution surged 2.3%, and the water supply and wastewater treatment sector posted a 8% growth, while the mining dropped 6.4%.

In February, the IIP increased 17.2% year-on-year but declined 2.2% compared to the previous month.

Several industries recorded strong IIP growth in the two-month period, including vehicle production (53.5%), furniture (19.8%), wood processing and production (12.5%), and electronics, optical products and computers (9.5%).

A total of 58 out of 63 centrally-run cities and provinces recorded an increase in IIP, while 5 reported declines.

 

-Huyền Vy

The US remains Vietnam’s largest export market, while China is its largest import source.

According to data released on March 6 by the National Statistics Office  under the Ministry of Finance, the total import-export turnover in February reached $63.77 billion, marking a 0.7 per cent increase from the previous month and a 32.6 per cent rise year-on-year.

For the first two months of 2025,  the total external trade turnover amounted to $127.07 billion, reflecting a 12 per cent increase compared to the same period last year, with exports rising by 8.4 per cent and imports growing by 15.9 per cent.

Specifically, on the export side, the turnover in February reached $31.11 billion, down 6.2 per cent from January. Of the export value, the domestic sector contributed $8.39 billion, a 12 per cent decline, while the foreign-invested sector (including crude oil) generated $22.72 billion, down 3.8 per cent.

However, compared to the same period last year, exports in February surged by 25.7 per cent, with the domestic sector growing by 32.8 per cent and the foreign-invested sector (including crude oil) increasing by 23.2 per cent.

Cumulatively, in the first two months of 2025, export turnover reached $64.27 billion, up 8.4 per cent year-on-year. Of this, the domestic sector accounted for $17.92 billion (or 27.9% of the total), rising by 12.8% year-on-year, while the foreign-invested sector (including crude oil) contributed $46.35 billion (or 72.1% of the total),  increasing by 6.7% year-on-year. 

During this period, 12 products recorded export values exceeding $1 billion each, collectively representing 77.7 per cent of the total export turnover. Among them, four items surpassed $5 billion each, accounting for 54.6 per cent of the total.

In terms of export structure, processed industrial goods dominated with $57.01 billion (88.7% of the total), followed by agricultural and forestry products at $5.35 billion (8.3%), seafood at $1.43 billion (2.2%), and fuel and minerals at $0.48 billion (0.8%).

On the import side, Vietnam’s total import turnover in February 2025 reached $32.66 billion, an 8.4 per cent increase from the previous month.  The domestic sector contributed $11.87 billion (up 8.7 per cent), while the foreign-invested sector accounted for $20.79 billion (up 8.1 per cent).

Year-on-year, February imports surged by 40 per cent, with domestic sector rising by 49.6 per cent and foreign-invested sector by 35.1 per cent.

For the first two months of 2025, total import turnover amounted to $62.8 billion, up 15.9 per cent compared to the same period last year. The domestic sector imported $22.8 billion, marking an 18.7 per cent increase, while the foreign-invested sector imported $40.0 billion, up 14.4 per cent.

During this period, 16 product categories recorded import values exceeding $1 billion each, accounting for 76.2 per cent of the total import turnover. Among them, two items surpassed $5 billion each, comprising 44.5 per cent of the total.

Regarding import structure, production materials made up the largest share at $58.83 billion (93.7 per cent), including machinery, equipment, and spare parts at 50.8 per cent, and raw materials, fuel, and supplies at 42.9 per cent. Consumer goods imports totaled $3.97 billion, representing 6.3 per cent of the total.

In terms of trade partners, the US remained Vietnam’s largest export market, with value reaching $19.6 billion. Meanwhile, China was Vietnam’s largest import source, with turnover totaling $23.3 billion.

Vietnam recorded a trade surplus of $17.0 billion with the US. (up 16.3 per cent year-on-year), $6.4 billion with the EU (up 19.2 per cent), and $0.5 billion with Japan—nearly ten times higher than the same period in 2024. Conversely, Vietnam posted a $15.4 billion trade deficit with China (up 36.9 per cent),  $4.6 billion with South Korea (up 20.6 per cent), and $2.1 billion deficit with ASEAN countries (up 116.8 per cent).

Overall, Vietnam’s trade balance for the first two months of 2025 showed a surplus of $1.47 billion, significantly lower than the $5.13 billion surplus recorded in the same period last year. The domestic sector posted a trade deficit of $4.87 billion, while the foreign-invested sector (including crude oil) recorded a surplus of $6.34 billion.

-Viet An

There is much for Vietnam to do to bring plans of establishing free trade zones around the country into being.

According to the Vietnam Logistics Report 2024 from the Ministry of Industry and Trade (MoIT), while free trade zones (FTZs) are a familiar model around the world they are still a relatively new concept in Vietnam. The country has, however, been steadily laying the groundwork for their development, by establishing small-scale zones like export processing zones, non-tariff areas within economic zones, bonded warehouses, and duty-free shops. With four export processing zones as of the end of 2023, Vietnam is gradually shaping its own path towards a more dynamic FTZ landscape.

Opportunities from local strengths

Vietnam’s strategic location and economic advantages position it as a prime candidate for developing FTZs. With a coastline stretching 3,260 km and proximity to major international shipping routes, Vietnam serves as a vital trade gateway connecting global markets. This geographic advantage allows for efficient import, processing, and export activities within FTZs, enhancing Vietnam’s role as a key player in global supply chains.

Situated at the heart of Southeast Asia, Vietnam enjoys close economic ties with major economies, including China, Japan, South Korea, and ASEAN nations. This connectivity facilitates seamless trade flows and strengthens Vietnam’s potential as a regional logistics and transshipment hub.

The country’s deep-water seaports, such as Hai Phong in the north, Da Nang in the central region, and Cai Mep - Thi Vai in southern Ba Ria-Vung Tau province, are fully-equipped to accommodate large container vessels, making them ideal locations for FTZ developments. Recent upgrades to road, rail, and air transport infrastructure further enhance the efficiency of Vietnam’s logistics network, ensuring smooth connectivity between industrial parks, ports, and export processing zones.

Recognizing these advantages, the Vietnamese Government has introduced a range of incentives to attract investment in FTZs. These include corporate income tax reductions, import duty exemptions for goods entering FTZs for production and trade, and VAT exemptions for goods and services consumed within these zones. Additional policies, such as land use incentives and preferential loan programs, further enhance Vietnam’s appeal among both domestic and foreign investors.

Its robust economic growth, coupled with its extensive participation in international trade agreements, provides a strong foundation for FTZ expansion. Vietnam is actively engaged in various free trade agreements (FTAs) with key global partners, including the EU, Japan, South Korea, and ASEAN, further integrating the country into the global economy and boosting its competitiveness.

Ba Ria-Vung Tau’s Cai Mep - Thi Vai port complex, one of Vietnam’s largest deep-water ports, has an annual capacity exceeding 18 million TEUs. The province is also home to major industrial parks and export processing facilities, reinforcing its role as a critical logistics and manufacturing hub.

Hai Phong, a leading northern economic center, similarly benefits from extensive industrial and export processing zones. Its strategic location and well-developed port infrastructure make it an attractive destination for international businesses looking to leverage Vietnam’s trade advantages.

Beyond these key locations, the MoIT has also identified northern Lang Son and southern Dong Nai and Binh Duong provinces as potential sites for the development of FTZs. Known for their strong economic performance and strategic locations, these provinces offer additional opportunities for expanding Vietnam’s FTZ network.

As the country continues to refine its economic policies and infrastructure, the development of FTZs presents a significant opportunity to enhance its trade efficiency, attract foreign investment, and solidify its position as a global trade hub.

Operations in free trade zones Lack of mechanisms and resources

Despite the potential benefits, establishing and developing FTZs in Vietnam remains challenging. According to the MoIT report, Vietnam has yet to develop any FTZs, as the country’s legal framework is still to include regulations on investment approval procedures, establishment decisions, management models, operational mechanisms, or the governance structure for FTZs.

Meanwhile, Vietnam faces intense competition from regional countries that have already established well-developed FTZs, such as Singapore, Thailand, and Malaysia. These nations benefit from a comprehensive legal framework, modern infrastructure, and attractive incentive policies, which place significant competitive pressure on Vietnam in attracting investment and fostering FTZ growth. Additionally, their extensive experience in managing and operating FTZs further amplifies the challenge for Vietnam.

A key concern highlighted by the MoIT is the limited quality of human resources in the logistics and FTZ management sectors. Though Vietnam has a young and abundant workforce, its skill levels and professional expertise do not yet fully meet the demands of businesses operating within FTZs. Investing in workforce training and development is essential, to ensure that enterprises and investors can operate efficiently while enhancing the overall performance of FTZs.

Despite ongoing improvements, Vietnam’s logistics infrastructure still requires further investment, particularly in support services such as warehousing, cargo handling, and auxiliary services, to optimize FTZ operations. Enhancing transportation networks between key economic regions and FTZs is also crucial to ensure smooth and efficient goods movement, facilitating trade, and strengthening Vietnam’s position in the regional and global supply chain.

Finalizing the legal framework

The report suggests that developing FTZs in Vietnam requires concrete steps. First, it is essential to finalize the legal framework by formulating and issuing specific regulations on investment procedures and the establishment, management, and operational mechanisms of FTZs. Next, efforts must be made to enhance awareness, by promoting FTZs among regulatory bodies, businesses, and the public to highlight their benefits and opportunities.

Vietnam should also study and learn from the experience of countries that have successfully developed FTZs, such as the US, South Korea, the United Arab Emirates (UAE), China, Brazil, Singapore, and Panama. At the same time, pilot FTZ projects should be implemented in localities with potential to assess their effectiveness and learn lessons for future expansion. International cooperation should also be strengthened by signing new FTAs and economic partnership agreements to facilitate FTZ development.

According to Mr. Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade at MoIT, one of the key challenges for FTZs in Vietnam is the regulatory framework and policies. There are no precedents for how FTZs should interact with regular economic zones and industrial parks, including governance structures, operational frameworks, and delegated authority. As a result, legal adjustments are needed, as there are currently no explicit regulations guiding the approval process for FTZ establishment.

Therefore, cities and provinces should proactively propose draft pilot mechanisms for FTZs through an amendment resolution for National Assembly (NA) approval. They should also seek input from relevant ministries regarding functional zones that align with their strengths. Policies should be established to provide incentives for investors, streamline customs procedures, and improve regulatory oversight, including licensing, labor permits, and zoning approvals.

At the same time, investment in modern transportation infrastructure, such as road networks, seaports, airports, and industrial facilities, should be prioritized. Cities and provinces should also explore ways to simplify customs and administrative procedures to reduce costs and processing times, thereby fostering investor confidence. Furthermore, policies should be developed to attract next-generation investment, focusing on high-tech industries, financial services, and environmentally-friendly industrial sectors.

-Vũ Khuê

Among the 44 countries and territories investing in Vietnam in the two-month period, China is the largest investor with $679.8 million.

Total registered foreign direct investment (FDI) capital into Vietnam reached nearly $6.9 billion in the first two months of the year, representing a 35.5% increase compared to the same period last year, according to the National Statistics Office under the Ministry of Finance.

Of this, newly registered FDI capital amounted to $2.19 billion across 516 licensed projects, marking a 48.4% decrease in registered capital but a 10% increase in the number of projects.

The manufacturing and processing industry continues to be a bright spot, attracting the largest amount of FDI capital with $1.45 billion, accounting for 66.1% of the total. It is followed by real estate business activities, which received $371.5 million, accounting for 16.9%, and other industries reaching $371.8 million, accounting for 17.0%.

Registered adjusted capital recorded a breakthrough growth rate, reaching $4.18 billion, six times higher than the same period last year. This demonstrates that existing investors continue to trust and expand their operations in Vietnam.

Among the 44 countries and territories investing in Vietnam in the two-month period, China is the largest investor with $679.8 million, accounting for 31% of the total newly registered capital. It is followed by Singapore, Hong Kong (China), the British Virgin Islands, the United States, and Japan.

Additionally, the National Statistics Office reported that realized FDI in the first two months of 2025 was estimated at $2.95 billion, an increase of 5.4% compared to the same period last year, marking the highest level in the past five years. The manufacturing and processing industry continues to dominate, with $2.42 billion, accounting for 82.1% of the total realized FDI capital.

-Anh Nhi