Vietnam News
SUEZ and Sonadezi partner to enhance environmental solutions for Vietnam’s largest industrial park
SUEZ has teamed up with Sonadezi, a State-owned developer managing 11 large-scale industrial parks across Vietnam, to introduce integrated environmental solutions at Chau Duc Industrial Park - the largest in South Vietnam. This marks SUEZ’s first industrial park project in Vietnam and its 22nd in Asia, reinforcing its commitment to sustainable growth through circular and resilient water and waste management.
Strategic move toward sustainability
"This partnership marks a major step for SUEZ into Vietnam’s industrial park sector.” Mr. François Fevrier, CEO Water and RR of SUEZ Asia, emphasized the significance of the partnership. “We have proven expertise and technical know-how in industrial parks across Asia, providing state-of-the-art environmental services to 22 parks in the region. We are pleased to join hands with Sonadezi to write the next chapter of our story in Vietnam. As the country continues to develop its industrial landscape, SUEZ is committed to supporting its vision for a more sustainable future, by providing innovative water and waste solutions."
Since establishing its first industrial park in 1963, Vietnam has developed over 400 such parks. To address industrial water and wastewater challenges, such as improving wastewater quality, stabilizing effluents from wastewater treatment plants, and enhancing pipe network conditions, the government has introduced robust environmental and discharge policies, pushing for higher-quality development. As part of the country’s environmental transition, 40% to 50% of localities in Vietnam aim to convert existing industrial parks into eco-industrial parks by 2030. Leveraging its expertise and extensive experience, SUEZ is well-positioned to play a role in advancing this transformation further.
Strategically situated just over an hour's drive from Ho Chi Minh City, Chau Duc Industrial Park - the largest of its kind in South Vietnam - is a vital hub for industrial activities. It serves as a gateway for international businesses looking to invest in Vietnam's flourishing industrial sectors, such as semiconductors, mechanics, and automotive accessories, and plays a crucial role in national economic development.
Chau Duc Industrial Park, the largest of its kind in South Vietnam, plays a crucial role in the national economic development.Driving real impact
The first phase of the collaboration between SUEZ and Sonadezi will involve upgrading and operating the maintenance (OM) of existing wastewater treatment facilities, providing comprehensive wastewater solutions to over 100 industrial clients within Chau Duc Industrial Park. With the park's rapid development and the country’s increasing environmental standards, the new joint venture will also explore opportunities to strengthen water and waste services through cutting-edge facilities and technologies.
The phase-1 collaboration will provide comprehensive wastewater solutions to over 100 industrial clients within the Park.With over 160 years of expertise in water and waste management, SUEZ has a strong track record in Asia, providing environmental solutions to major industrial parks for more than two decades. In Vietnam, the company has been working with local partners since 1955, delivering sustainable drinking water and wastewater services through over 20 projects.
This partnership with Sonadezi marks another step toward supporting Vietnam’s sustainability goals by providing industrial clients with efficient and reliable environmental solutions.
-Diep Linh
Ho Chi Minh City's tourism credit grows 10%
Total outstanding tourism credits in Ho Chi Minh City reached nearly VND57 trillion ($2.2 billion) by the end of February, making up 1.5% of the city’s total loans, according to the State Bank of Vietnam's (SBV) Regional Branch No.2.
The figure represents a growth of 10%.
The credit growth was attributed to the recovery of tourism activities after the Covid-19 pandemic over the past two years.
In the first three months of this year, the local tourism sector recorded total revenue of over VND56.66 trillion ($2.19 billion), a year-on-year rise of 26.7%, figures from the city’s Tourism Department show.
-Minh Huy
Vietnam Economic Times March 31, 2025
-Vietnam Economic Times - VnEconomy
Khanh Hoa breaks ground on Doc Da Trang Industrial Park
The People's Committee of the south-central province of Khanh Hoa broke ground on the Doc Da Trang Industrial Park on April 2.
The project spans an area of 288 ha and boasts a total investment capital exceeding VND1.8 trillion (over $72.2 million).
It is located in the Van Phong Economic Zone (Van Ninh District and Ninh Hoa Town).
The industrial park benefits from its prime location near the Van Phong seaport system and key expressways, such as Van Phong - Nha Trang and Khanh Hoa - Buon Ma Thuot, thus providing a significant competitive edge and attracting secondary investors.
Under the master plan on development of Khanh Hoa Province by 2030, with a vision to 2045, the locality is prioritizing industries such as clean energy, processing, high-tech manufacturing, precision engineering, and electronics.
Moreover, the development of synchronized industrial infrastructures like Doc Da Trang Industrial Park is essential to meet the growing demands of secondary investors.
Once operational, the industrial park is expected to generate over 16,000 jobs, attract substantial investment to the Van Phong Economic Zone, and play a critical role in accelerating the local economic restructuring process, further solidifying the province’s industrial growth and development.
-Phạm Long
Vietnam Expo 2025 opens in Hanoi
The 34th Vietnam International Trade Fair (Vietnam Expo 2025) officially opened in Hanoi on April 2.
Running until April 5, Vietnam Expo 2025 embraces the theme "Accompanying Businesses in the Digital Era".
This year’s event highlights the transformative power of technology in trade promotion, empowering Vietnamese and international enterprises to optimize digital platforms and technological solutions.
The expo showcases over 400 businesses across 500 booths from 18 countries and territories.
As a premier event for Vietnam's industry and trade sector, it features key zones such as International Pavilions, the Vietnam Export Promotion and Investment Zone, the Electronics, Machinery, and Supporting Industries Zone, the Digital Technology and E-commerce Zone, and the Agri-food and Beverage Zone.
Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan was quoted by Radio the Voice of Vietnam as emphasizing the expo's vital role in fostering Vietnam's industrial and trade development over its 33-year history.
He highlighted its contributions to economic growth, export promotion, and international integration, stating: "Vietnam Expo 2025, alongside its traditional activities, will introduce online B2B matchmaking. These activities will facilitate year-round engagement, enabling businesses to connect with partners remotely, expand networks, and strengthen their competitiveness for sustainable development."
The event also includes various high-level forums, promotional conferences, and seminars, offering invaluable information and networking opportunities for domestic and international enterprises. A highlight of the expo is the Supply Link Program, which fosters collaboration between supporting industries and Foreign Direct Investment (FDI) enterprises through a dedicated 1-on-1 meeting area.
Vietnam Expo 2025 and its associated activities are expected to attract over 20,000 visitors.
-Phạm Long
Potential of the private sector awakened
The private sector is considered one of the key drivers of Vietnam’s economic growth. What are your thoughts?
After decades of observing listed companies, we have seen that those with a high level of State ownership tend to have lower capital efficiency and slower growth rates compared to private enterprises.
State-owned enterprises (SOEs) often hold significant land resources and enjoy monopolistic positions, yet their operational efficiency, cost control, innovation, and ability to seize opportunities are far lower than those of private enterprises. Just over a decade ago, the leading companies in most industries were SOEs. Today, private enterprises have risen to the top in many sectors, demonstrating strong competitiveness not only domestically but also in replacing imports and expanding into global markets.
Mr. Le Chi Phuc, CEO of SGI CapitaWe frequently compare Vietnamese private enterprises with their counterparts in ASEAN and worldwide. Despite operating in a business environment that is not always favorable and receiving limited policy support, many Vietnamese private enterprises perform remarkably well, posting strong growth rates. In fact, when assessed against various financial efficiency and growth criteria, some even surpass regional standards and are on par with top global corporations in their industries.
Compared to other countries in the region, Vietnamese entrepreneurs are highly intelligent, dynamic, and quick to adapt. Therefore, if the government implements mechanisms to further activate the private sector, Vietnam could achieve even higher growth rates.
Will Vietnam’s future growth drivers turn out to be institutional reform, the private sector, and workplace productivity?
In this new era, we have reason to hope for strong institutional reforms. In just the past few months, we have witnessed a high level of determination for change. Things are progressing rapidly, with groundbreaking policies that have never been considered since Vietnam’s economic opening. These include initiatives such as streamlining the government apparatus, digitalizing administrative management, establishing digital asset exchanges, building international financial centers, and developing special economic zones.
This is not just about constructing buildings and central hubs or meeting hard infrastructure needs. More importantly, it is about institutional reform, creating a more open legal framework that facilitates free capital flows, emphasizes technology and high productivity, and offers comprehensive incentives in taxation, fees, and labor policies. If realized, these initiatives could mark a turning point, stimulating domestic investment while attracting additional foreign capital into Vietnam.
In the short term, any major change will have both positive and negative impacts. However, I believe that strong institutional reform will make Vietnam’s economy more dynamic and improve capital circulation. The key is to direct capital into areas that enhance productivity and ensure sustainable growth quality.
One important lesson from both Vietnam’s past and other countries’ experience is that accelerating public investment disbursement while simultaneously easing monetary policy can immediately drive GDP growth. Infrastructure development can also stimulate a vibrant real estate market, attracting speculative capital through debt financing. While this model can sustain high growth for two to three years, it lacks long-term sustainability, as it carries risks of asset bubbles, inflationary pressure, and exchange rate instability. Therefore, the quality of growth matters far more than just the growth figures.
To achieve the government’s target of 8 per cent economic growth in 2025, the banking system must supply approximately VND2,500 trillion ($100 billion) in credit to the economy, equivalent to credit growth of 16 per cent. How would you assess the challenges and opportunities that banks will face this year?
Looking at the banking sectors of countries that have gone through similar economic cycles as Vietnam, such as Thailand, Malaysia, and China 15-20 years ago, credit growth slowed to around 10-12 per cent a year after a period of economic boom.
Credit growth must be in keeping with the economy’s absorption capacity, as reflected in the credit-to-GDP ratio. Vietnam’s ratio has risen to approximately 140 per cent, and if corporate bonds held by banks were to be included, the figure is even higher. This is a significant number compared to economies of similar size or even those that were ahead of Vietnam by 15-20 years in development terms.
Every 1 per cent GDP growth requires 2 per cent credit growth. With projected credit growth of 16-20 per cent per year in 2025 and beyond, the credit-to-GDP ratio will rise even further. This presents a major challenge for the banking sector in the years to come.
From an investor and market observer’s perspective, I believe the banking system has limited room left for credit expansion. Looking back at the period of interest rate cuts during Covid-19, in 2021 and 2022, credit growth was already quite high, at 15-16 per cent. In 2022, banks exhausted their credit limits in the first half of the year. In 2024, banks continued to lend at a rate about 5 per cent higher than deposit growth, preventing improvements in their liquidity and capital adequacy ratios. At the end of 2022, an external interest rate shock led to a sharp exchange rate surge, combined with the corporate bond crisis and the SCB incident, pushing the banking system into a liquidity crisis.
Currently, the global and macro-economic environment remains volatile and full of risks. If banks do not accelerate deposit mobilization and reduce their loan-to-deposit ratio (LDR), they will struggle to maintain liquidity while expanding credit as expected, and they will also be vulnerable to sudden shocks.
However, reducing the LDR is also a challenge for banks, as they must simultaneously maintain low interest rates while global interest rates, especially in the US, remain high. When deposit interest rates are low, bank savings become less attractive to both individuals and businesses. Capital will instead flow into other, more profitable investment channels such as gold, real estate, USD holdings, or even cryptocurrencies.
How would you assess the relationship between credit growth quality and the economy’s capacity to absorb capital?
We have conducted statistical analyses on the borrowing demand of both listed and non-listed enterprises across the manufacturing, trade, and service sectors. The results indicate that corporate borrowing demand has been on a continuous decline over the past 5-7 years.
The main reason is that well-performing publicly-traded companies in manufacturing, trade, and services have scaled up their operations, strengthened their market position, and built strong cash flows. They have also accumulated sufficient equity to reinvest and expand without relying heavily on loans. Furthermore, their growth rates have slowed compared to the high average recorded between 2005 and 2015, leading to a decreased need for financing.
Looking at credit growth data from the banking system, we see that the highest credit expansion has been concentrated in two sectors: consumer lending, and real estate (including mortgages and loans to property developers).
I believe that capital absorption capacity in manufacturing, trade, and services may remain low in the immediate future for two reasons: (1) the global economy has yet to show significant signs of recovery, and trade tensions could disrupt international commerce; and (2) domestic consumption is recovering but at a slow pace, making businesses cautious about investing in production and expansion.
As a result, it is likely that credit will continue to flow into the real estate sector or industries related to infrastructure development.
-Phan Linh
Vietnamese poultry products allowed to export to Singapore
The Singapore Food Agency (SFA) has officially approved the import of various poultry meat and egg products from Vietnam, the Vietnam News Agency quoted the Vietnam Trade Office in Singapore as announcing on April 1.
The approved products include heat-processed poultry meat from CPV Food Co., Ltd. and Meatdeli Hanoi Co., Ltd., as well as canned poultry eggs and meat (excluding beef) sterilized at high temperatures and pressures, following recommendations from the Department of Livestock and Veterinary Affairs.
This approval marks a significant milestone in agricultural trade relations between the two countries and is expected to boost Vietnam's export turnover for livestock products.
To secure approval for export to Singapore, Vietnamese ministries and enterprises worked closely with the SFA, conducting thorough surveys, inspections, field evaluations, and online assessments. The two companies involved have invested in modernizing production processes and technology to meet SFA's stringent requirements, including food safety standards, operating procedures, traceability, and worker training.
A representative of the Trade Office remarked, as quoted by the State-run news agency, "This achievement demonstrates Vietnam’s capability and immense potential in penetrating demanding markets. It represents a significant milestone for Vietnam’s livestock industry, laying the groundwork not only for the companies licensed this time but also for other enterprises aiming to enter the highly regulated Singapore market."
However, the representative also acknowledged the challenges ahead for businesses in maintaining product quality and stable output to remain competitive in such a stringent market environment.
-Phạm Long
"AI for all" program launched
The National Innovation Center (NIC) (under the Ministry of Finance), in collaboration with Intel, launched the “AI for all” program on April 2.
“AI for all” is a self-learning program designed for all Vietnamese citizens, including students, office workers, parents, and even senior citizens.
The initiative aims to equip individuals with the necessary knowledge and skills to adapt to a world where AI is becoming increasingly prevalent, thus preparing a workforce and a society for the AI-driven future.
The program will help popularize and disseminate knowledge of AI, while raising public awareness about it, in line with Resolution No. 57-NQ/TW issued by the Politburo on December 22, 2024.
Speaking at the launching event of the program, Deputy Minister of Finance Nguyen Thi Bich Ngoc emphasized the urgent need to make fundamental AI knowledge accessible to the entire population in a simple and internationally standardized manner, given the rapid development of AI.
Deputy Minister of Finance Nguyen Thi Bich Ngoc speaks at the event.“Therefore, the implementation of the program at this time is crucial and directly addresses the urgent and practical need for learning, disseminating AI knowledge, and enhancing AI application skills across government agencies, socio-political organizations, businesses, and the general public as a whole,” the Deputy Minister stressed.
Discussing Vietnam’s strengths in AI development and application, Ms. Sarah Kemp, Vice President, International Government Affairs for Intel, noted that Vietnam is embarking on an ambitious digital transformation journey, aiming to rank among the top four ASEAN nations in AI research and development by 2030.
Additionally, Vietnam’s AI market is projected to reach $1.5 billion by 2030, with an annual growth rate of 15.8 per cent. The country currently ranks 39th out of 139 countries and territories in AI Readiness Index. The number of AI startups in Vietnam has surged from just 60 in 2021 to 278 in 2024.
“For these reasons, Vietnam has the potential to become a leading AI nation. With strong collaboration, targeted education, and a forward-thinking digital mindset, I am confident that Vietnam will not only reach the top four in ASEAN about AI development but also emerge as a global AI powerhouse,” Ms. Sarah emphasized.
-Phuong Hoa
Lam Dong approves Bao Loc - Lien Khuong Expressway project valued at nearly $691 million
The People's Committee of the Central Highlands province of Lam Dong has approved an investment policy for the Bao Loc - Lien Khuong expressway (phase 1) under the public-private partnership (PPP) model.
The projected 73.62 - km expressway will begin in Loc Phat ward, Bao Loc city, and end at its connection with the Lien Khuong - Prenn expressway in Hiep Thanh commune, Duc Trong district.
When fully completed, the expressway will feature four lanes and two emergency stop lanes, with a roadbed width of 24.75 m, and an allowed maximum speed limitted to 100 km/ha.
The project (phase 1)'s total investment capital is estimated at VND17.718 trillion (nearly $691 million), including VND7.761 trillion (around $303 million), or 43.8% of the total, to be sourced from the State budget. The remaining VND9.957 trillion (over $388 million), or 56.2% will be mobilized by investor.
The Provincial People's Committee will select an investor through open domestic bidding, with incentives provided according to current regulations. The investor selection process is expected to conduct in 2025.
Upon completion, the Bao Loc - Lien Khuong Expressway will be a key segment of the expressway network from Dau Giay (in southern province of Dong Nai) to Lien Khuong, as outlined in a plan which had been approved by the Prime Minister.
The project aims to enhance connectivity with the national transport system, reduce travel time between the Central Highlands and the Southern Key Economic Region, which includes Ho Chi Minh City and the provinces of Dong Nai, Ba Ria - Vung Tau, Binh Duong, Binh Phuoc and Tay Ninh; and improve access to economic and industrial hubs along National Highway 20. It is expected to contribute significantly to regional economic development and integration.
-Gia Huy
$72 mln for Long An-HCMC connecting road upgrade
The People's Committee of the Mekong Delta province of Long An has announced an adjusted investment policy for upgrading provincial road 830C (the project), which connects the province to Ho Chi Minh City (HCMC).
Under the revised plan, the project timeline has been extended to the 2024–2027 period; and the total investment capital has increased from VND971 billion (approximately $38 million) to over VND1.85 trillion (around $72 million), with site clearance costs estimated at VND1.1 trillion (nearly $43 million).
The project was initially approved by the Long An Provincial People's Committee under Decision No. 11543/QD-UBND, dated December 7, 2022. It covers a 9-kilometer route, starting at the intersection with Nguyen Huu Tho Street in Ben Luc Town, Ben Luc District, and ending at the border with HCMC.
The upgrade and expansion of the provincial road aim to facilitate smoother goods transportation and promote the development of trade and services.
The project is also expected to enhance connectivity between Long An and HCMC, reduce travel time, and alleviate traffic congestion on neighboring routes. These improvements are anticipated to boost economic growth and attract investment to the region.
-Thanh Thủy
Vietnamese manufacturing sector returns to growth: SP Global
The Vietnamese manufacturing sector returned to growth in March amid renewed increases in both output and total new orders, according to the latest report released by the SP Global on April 1.
The SP Global Vietnam Manufacturing Purchasing Managers' Index (PMI) posted above the 50.0 no-change mark for the first time in four months during March, thereby signaling an improvement in business conditions at the end of the first quarter of 2025. At 50.5, the PMI was up from 49.2 in February and pointed to a slight strengthening in the health of the sector.
Manufacturing production increased for the first time in three months during March, and to the largest degree since August last year.
According to respondents, the rise in output in part reflected improvements in the availability of goods, but also a renewed increase in new orders, which likewise expanded following a two-month sequence of decline.
Growth of new orders was recorded amid signs of improving customer demand, but was only slight amid ongoing weakness in international demand.
-Huyền Vy
Fruit vegetable exports reach $1.14 bln in Q1
Vietnam’s exports of fruit and vegetable in the first quarter of the year earned $1.14 billion, down 11.3% year-on-year, according to the Ministry of Agriculture and Environment.
In March alone, the export revenue reached $450 million.
China remains the biggest importer, accounting for 44.5% of the total export volume of fruit and vegetable in the three-month period. It was followed by the US and the Republic of Korea with a market share of 9.6% and 6%, respectively.
Meanwhile, the country imported fruit and vegetable worth nearly $578 million, up 17% compared to the same period last year, as a result of high demand for local consumption and processing.
A target of gaining $8 billion in fruit and vegetable exports has been set for this year.
Last year, export value of fruit and vegetable reached over $7 billion.
-Chu Khôi
Domestic gold price drops after hitting historic high
Gold prices in the domestic market reversed to plummet on April 1 afternoon after skyrocketing to a historic high in the morning session.
The SJC-branded gold bars were sold by the Saigon Jewelry and Gem Stone Co. (SJC) for VND102.1 million ($3,876) per tael, dropping by VND500,000 ($19.3) per tael compared to the morning session.
One tael equals 37.5 grams, or 1.2 ounces.
Meanwhile, in the global market, the gold price hit $3131.9 per ounce on April 1, increasing by $10.7 per ounce compared to the previous day.
At this level, gold prices in Vietnam stand at around VND3.6 million ($139) a tael higher than the global price.
-Phương Linh
Thanh Hoa's Q1 Industrial Production Index rises by 15.9%
Thanh Hoa province's Industrial Production Index (IIP) in the first quarter of 2025 is estimated to have increased by 15.9% compared to the same period last year.
Notable sectoral growth includes a 4.26% rise in the mining industry, 16.9% in the manufacturing and processing sector, 4.22% in the production and distribution of electricity, gas, hot water, steam, and air conditioning, and an 8.43% in water supply and waste management. Meanwhile, the number of employees in industrial enterprises grew by 4.95% year-on-year.
During Q1, 13 out of 18 major industrial products in the central province reported growth. Some products showed remarkable increases, such as athletic footwear (up 53.7%), ready-made garments (up 36.3%), crystallized sugar (up 18.6%), various types of iron and steel (up 12.8%), and building bricks (up 10.62%).
This strong performance sets a positive outlook for Thanh Hoa's industrial production growth, particularly in key sectors such as manufacturing and processing, mining, and energy.
In addition, Thanh Hoa began construction on several major industrial projects during the quarter. These include Project No. 1 - Duc Giang Chemical Complex, the Billion Union Vietnam Textile Factory, the Hop Thang Industrial Cluster in Trieu Son district, and the Outdoor Gear Vietnam sports equipment manufacturing plant.
The province also inaugurated and operationalized several industrial facilities, such as the Nghi Son High-Tech Mechanical Factory, the Dai Duong High-Tech Reinforced Concrete Component Factory, and the automotive wiring harness manufacturing and assembly plant operated by BOB Thanh Hoa Co., Ltd.
-Nguyễn Thuấn
PM orders reports on long-delayed investment projects by April 10
Prime Minister Pham Minh Chinh has called on ministries, sectors, and localities to urgently review and report on investment projects facing prolonged difficulties, obstacles, and backlogs via the National Public Investment System.
In his Official Dispatch dated March 31, 2025, the Prime Minister has issued numerous directives urging relevant parties to focus on these projects, identify definitive solutions, and promptly implement them. The objective is to promote socio-economic development while avoiding the waste of assets and resources belonging to the State, businesses, citizens, and society.
To address these issues, a Steering Committee for reviewing and resolving project-related difficulties has been established under Prime Ministerial Decision No. 1568/QD-TTg, dated December 12, 2024. This committee is led by Permanent Deputy Prime Minister Nguyen Hoa Binh.
On March 30, 2025, PM Chinh chaired a meeting of the Steering Committee, during which he instructed the Ministry of Finance to develop a unified database system to streamline data entry and provide information on problematic investment projects. Ministries, central agencies, and localities are required to input data into this system for analysis and resolution.
Additionally, authorities were directed to continue reviewing and updating the list of projects facing difficulties, proposing solutions, and reporting to the appropriate decision-making bodies.
The review and submission of updated information, along with proposed solutions, are to be conducted on the designated database system for problematic projects via the link dautucong.mpi.gov.vn. The deadline for completion is set for April 10, 2025.
-Tiến Dũng
PM proposes Belgium to push for removal of EC yellow card warning on Vietnam’s seafood exports
Prime Minister Pham Minh Chinh proposed Belgium to expedite the ratification of the EU-Vietnam Investment Protection Agreement (EVIPA) and to push the European Commission to remove its yellow card warning on Vietnam’s seafood exports, during a meeting with visiting Belgian King Philippe in Hanoi on April 1.
The PM suggested the two countries to promote cooperation in areas of Belgium's strength and Vietnam’s need, particularly high technology, circular economy, strategic infrastructure and human resources training.
For his part, King Philippe recognized Vietnam’s strategic significance in the region and highlighted Belgium’s interest in enhancing cooperation in education, health care, seaport development, renewable energy, science-technology, and innovation.
He also underscored Belgium’s support for businesses of both sides in bolstering investment and trade activities in respective countries.
-Tiến Dũng
Private economic sector seen as spearhead of development
Since the launch of the “Doi Moi” (Renovation) policy in 1986, the Communist Party of Vietnam’s perspective on the private sector has undergone a remarkable transformation, shifting from non-recognition to cautious acceptance and ultimately to recognizing it as a vital engine of economic growth and sustainable development.
Unleashing the power
Vietnam’s private sector has grown alongside Doi Moi, becoming a driving force in the nation’s socio-economic development. As of 2024, nearly 900,000 private enterprises were in operation, with major players like Vingroup, Masan, Sun Group, Vietjet Air, and Thaco shaping the business landscape.
With over 5 million individual business households, the private sector now accounts for approximately 50.4 per cent of GDP and around 30 per cent of State budget revenue, and provides jobs for about 85 per cent of the workforce. Beyond economic contributions, it has played a crucial role in poverty reduction and closing development gaps between regions and between urban and rural areas.
However, despite these achievements, the private sector still faces significant challenges. First, many businesses lack the motivation to scale up, with some choosing to remain small or selling to foreign investors rather than pursuing long-term growth. Second, limited internal capacity, particularly among small and medium-sized enterprises (SMEs), continues to be a roadblock. Third, both businesses and policymakers have yet to establish a clear long-term development strategy, leading to fragmented growth and missed opportunities. Fourth, the sector still operates in silos, with weak connections between private enterprises, between the private sector and FDI enterprises, and between the private sector and State-owned enterprises (SOEs), making it difficult to integrate with national development strategies. Finally, while support mechanisms and policies exist, their effectiveness remains limited, preventing businesses from fully leveraging government initiatives.
Those challenges have resulted in low efficiency, poor competitiveness, and limited international integration. Many businesses struggle not only to expand beyond Vietnam’s borders but also to compete effectively in their home market. Innovation capacity remains underdeveloped, further limiting the sector’s potential.
With rapid global changes reshaping economies, Vietnam can no longer afford to delay addressing these issues. Now is the time to unlock the full potential of the private sector and drive the country towards its strategic development goals for 2030 and 2045. During a working session on March 7, Party General Secretary To Lam emphasized the urgent need for bold, revolutionary solutions that not only tackle immediate challenges but also lay the groundwork for long-term, sustainable, and dynamic growth. These solutions must be implemented in a comprehensive, coordinated manner to ensure the private sector becomes a true engine of Vietnam’s future prosperity.
Six key solutions
To drive breakthrough, sustainable growth in Vietnam’s private sector, six key solutions must be implemented.
First, renewing perspectives and building a strong consensus on the role and position of the private sector in Vietnam’s socialist-oriented market economy is essential. Creating a breakthrough in improving the business and investment environment is critical.
Only when mindsets evolve and perceptions align can effective policies and mechanisms be developed to foster private sector growth. Vietnam must reaffirm that the private sector is an indispensable component of its socialist-oriented market economy, playing a vital role in driving economic growth. Alongside SOEs and the collective economy, the private sector forms the backbone of an independent, self-reliant economy, capable of spearheading development and propelling the country past the middle-income trap towards prosperity by 2030 and 2045. The private sector should enjoy equal development opportunities alongside other economic sectors.
However, removing restrictions alone is not enough. A more significant transformation is needed, one that creates a breakthrough in improving the business and investment environment. This requires a revolution in transparency, digitization, intelligence, and automation, leveraging information technology (IT), AI, and big data to eliminate inconsistencies in legal frameworks, simplify and enhance transparency in administrative procedures, reduce business costs and compliance burdens, reform inspection mechanisms to avoid redundancy, and establish continuous consultation and dialogue mechanisms to resolve bottlenecks. These measures will inspire confidence, ambition, and decisive action within the private sector as Vietnam enters a “New era - The era of the nation’s rise”.
Second, developing and effectively implementing a comprehensive strategy for private sector growth is crucial.
Vietnam currently lacks a dedicated private sector development strategy. Creating one will ensure that the sector’s expansion aligns with the country’s overall economic strategy, supporting national targets for 2030 and 2045. A well-defined strategy will maximize the potential of different enterprise groups within the private sector, fostering connectivity between them as well as with SOEs and FDI enterprises, ultimately strengthening Vietnam’s economic foundation.
The strategy should set concrete targets, including the private sector’s contribution to GDP, job creation, tax revenue, workplace productivity, integration into global value chains, and innovation capabilities. It must also define the distinct roles of different business segments, from large enterprises leading in innovation and international market penetration to medium-sized enterprises strengthening their market positions, small businesses and household enterprises driving employment, and startups serving as incubators for new ideas, business models, and products. Additionally, the strategy must outline priority sectors for State support and detail mechanisms and policies tailored to each business group, ensuring a dynamic and resilient private sector that propels Vietnam towards its long-term economic ambitions.
Third, design effective mechanisms and policies tailored to different groups within the private sector. Segmenting beneficiaries ensures policies align with their roles and characteristics, maximizing their potential.
Fourth, establish policies linking the private sector with national development strategies, fostering connections among private enterprises, SOEs, and FDI enterprises. Strengthening these links enhances domestic business capacity, reduces import dependency, increases localization, promotes innovation and technology transfer, and boosts global value chain integration.
To achieve this, a “three-way ecosystem” between private enterprises, the State, and FDI should be developed to ensure collective growth through: (i) Building a national innovation ecosystem that connects private businesses and FDI with research and development (RD) centers, universities, research institutes, and venture capital funds to foster product development, technological innovation, and digital and green transformation; (ii) Establishing integrated industrial parks, high-tech parks, and innovation hubs, following models like “Vietnam’s Silicon Valley”, where large, medium, and small enterprises, startups, and FDI enterprises interact, bridging research, production, business, and policy-making; (iii) Implementing localization policies by mandating local content ratios in strategic sectors (for example, automotive, electronics, and high-tech), supporting domestic companies in meeting FDI supply chain standards.
To enhance collaboration between private enterprises: (i) Strengthen industry associations and business clubs, develop digital platforms for networking, information sharing, and supply chain integration; (ii) Establish industry clusters and value chains, encouraging large enterprises to lead local supply networks and support SMEs and household businesses, particularly in supporting industries, agribusiness, IT, and creative industries.
To connect the private sector with the State sector: (i) Establish direct dialogue channels between private businesses and government agencies, ensuring timely resolution of business concerns; (ii) Promote public-private partnerships (PPPs) in infrastructure, healthcare, education, and environmental projects; (iii) Prioritize domestic private enterprises in public investment, digital transformation, and technology innovation programs; (iv) Improve access to national development funds (for example, technology innovation funds, SME development funds, and credit guarantee funds).
To integrate private businesses with FDI: (i) Develop supply chain links, particularly in supporting industries, manufacturing, and high-tech sectors, and encourage FDI enterprises to transfer technology, train workers, and enhance local supplier capabilities; (ii) Establish centers to connect and advise local companies on global supply chain participation and industrial promotion hubs in key economic zones; (iii) Offer investment incentives to FDI enterprises committed to technology transfer and local procurement, requiring large FDI projects to include domestic supply chain development plans.
Fifth, develop modern, integrated infrastructure to support business activities. These include transport networks (high-speed rail, urban railways, and logistics hubs), international-standard ports, free trade zones, and national and open-access databases for business operations.
Sixth, strengthen the leadership of the Party, State management, and business associations in supporting, protecting, and promoting business links. The Politburo is set to issue a new resolution on private sector development, with the government working alongside the Central Policy and Strategy Committee to formulate actionable and breakthrough solutions, similar to Resolution No. 57-NQ/TW on science, technology, innovation, and digital transformation.
(* )Associate Professor Nguyen Hong Son is the Deputy Head of the Party Central Committee’s Commission for Policies and Strategies
-By Associate Professor Nguyen Hong Son(*)
Nationwide business survey scheduled to start from April 1
The statistics sector is scheduled to begin a survey of businesses nationwide from April 1 with a view to collecting basic information to serve management and policy making and socio-economic development forecast.
The survey will cover enterprises, cooperatives and cooperative unions.
The information to be collected will serve the management and formation of policies and plans on socio-economic and enterprise development across the country, as well as calculate important criteria such as the GDP, and the Gross Regional Domestic Product (GRDP).
It will also be used to build a national statistical criteria system, compile the White Book on Vietnamese Businesses 2025, and the White Book on Vietnamese Cooperatives 2025, update the enterprise database, and serve other purposes.
-Khánh Vy
Da Nang needs estimated $904 mln to develop seaports by 2030
Central Da Nang city needs over VND23.33 trillion ($904 million) to develop its seaport system by 2030 under a development plan for local seaport land and water areas in the 2021-2031 period with a vision to 2050.
The plan has been approved by the Ministry of Construction.
According to the plan, ports in the city will be capable of handling 23 – 29 million tons of cargo and serving 532,300 – 597,000 passengers by 2030.
Regarding infrastructure development, Da Nang will have 12 – 15 new terminals with 20 – 23 berths, spanning from over 4,220m to over 5,745m in total. New terminals will be developed to meet the cargo clearance demand, expected to grow by 4.5–5.5% annually through 2050.
By the end of 2024, the total seaport cargo throughput in Da Nang was estimated at 13.88 million tons.
-Thiên Ân
Vietnam and South Korea strengthen cooperation in railway sector
During his talks with South Korean Minister of Land, Infrastructure, and Transport Park Sangwoo in Hanoi on March 31, Minister of Construction Tran Hong Minh asked relevant agencies of South Korea to continue sharing experience with Vietnam in mastering high-speed rail technology, developing the railway industry, and organizing rail freight transportation services.
The event marks a significant milestone, reflecting the strong and growing relationship between Vietnam and South Korea in effectively implementing the Comprehensive Strategic Partnership established in 2022.
In the field of transport infrastructure, since 1996, the South Korean government has provided funding support for Vietnam to develop its transportation infrastructure. Up to date, the two sides have successfully completed nine projects on transport infrastructure, with a total loan value estimated at over $1 billion and are currently working together on other six projects with a total loan value of nearly $600 million.
Minister Park Sangwoo shared that South Korea is eager to share its experience, transfer technology, train human resources, and support Vietnam in localizing and mastering high-speed rail technology in the coming times.
“We are ready to cooperate on a mutually beneficial basis for the common development of both countries,” Minister Park Sangwoo noted.
Currently, Vietnam is strongly focus on developing the railway sector, therefore, Minister Tran Hong Minh hopes that South Korean agencies will continue to support Vietnam by sharing expertise in acquiring and mastering high-speed rail technology, developing the railway industry, and organizing rail freight transport services.
Additionally, Minister Tran Hong Minh urged South Korea to consider providing Official Development Assistance (ODA) for Vietnam’s railway infrastructure projects as well as promote cooperation between the two countries in training human resources, sharing expertise in railway technology, smart transportation, energy transition, and developing sustainable green infrastructure.
In addition to cooperation in the railway sector, he also suggested that South Korean enterprises, with their extensive experience, explore the possibility of participating in the design, construction, and development of aviation infrastructure projects in Vietnam in the coming times.
On this occasion, the two Ministers signed a memorandum of understanding (MoU) to elevate cooperation in the railway sector between the two countries.
On the same day, the Ministry of Construction (MoC), in collaboration with South Korea’s Ministry of Land, Infrastructure, and Transport of South Korea (MOLIT), also organized the Vietnam - South Korea Railway Cooperation Forum 2025.
Within the framework of the forum, several key MoUs were signed between the two sides to promote the partnership in the railway sector. These agreements include a partnership between the Korea Railroad Corporation (KORAIL), the Korea National Railway (KNR), and the Vietnam Railway Corporation (VNR), and partnership between the Korea Rail Industry Association (KORASS) and the Vietnam Association of Construction Contractors (VACC).
-Phuong Hoa