Vietnam News
Vietnam Economic Times April 21, 2025
-Vietnam Economic Times - VnEconomy
Vietnam Innovation and Private Capital Summit 2025 opens
The Vietnam Innovation and Private Capital (VIPC) Summit 2025 opened in Hanoi on April 22, bringing together over 1,000 delegates, including more than 200 investors from Asia and Europe.
The event was co-organized by the National Innovation Center (NIC), the Ministry of Finance, the Vietnam Private Capital Association (VPCA), Golden Gate Ventures, and Do Ventures.
In his keynote speech, Deputy Prime Minister Nguyen Chi Dung affirmed the Government’s unwavering support for innovation, pledging to collaborate with stakeholders to foster a dynamic ecosystem.
The Deputy Prime Minister Nguyen Chi Dung is addressing the Summit.The Deputy Prime Minister highlighted an unprecedented wave of investment in hi-tech sectors and innovation, with artificial intelligence (AI), particularly generative AI, emerging as a strategic focus for global investors.
He noted that sustainable development, green growth, and circular economy have become inevitable global trends, driving nations to prioritise innovation.
The financial sector is transforming through fintech solutions like digital payments, blockchain, and online lending, expanding access to capital and services for millions worldwide, the Deputy PM said, underscoring the critical role of innovation funds and private capital, citing models in Europe, the Republic of Korea, and the US.
Addressing the summit, Deputy Minister of Finance Nguyen Duc Tam emphasized VIPC 2025’s role in connecting stakeholders and positioning Vietnam as an attractive destination for innovation-driven capital flows in Southeast Asia.
He reiterated the commitment of the Vietnamese Government and the Ministry of Finance to supporting investors and creating favorable conditions for mobilizing capital in technology and innovation.
Vinnie Lauria, VPCA board member and founder of Golden Gate Ventures, noted that the forum is expected to help attract more global capital into Vietnam at a pivotal time in Vietnam’s development journey, becoming a strategic “destination” for investment capital sources.
VIPC 2025 features discussions on key industries, presentations of Vietnam’s investment policies and strategic vision, and updates on divestment and cross-border business opportunities in fintech, AI, and deep tech. The forum reflects Vietnam’s long-term ambition to become a regional innovation hub, particularly in high-tech manufacturing, capital market development, and international business expansion.
At the forum, NIC and VPCA signed a series of Memorandums of Understanding (MoUs) with three major Asian investment associations – the Korean Venture Capital Association (KVCA), the Singapore Venture Capital Private Equity Association (SVCA) and the Hong Kong Venture Capital and Private Equity Association (HKVCA). This collaboration has combined assets of $5 trillion.
-Khánh Vy
Vietnam's ambition to rise: Insights from the P4G Summit
Ms. Robyn McGuckin, Executive Director, Partnering for Green Growth and the Global Goals 2030 (P4G)
The Vietnamese Government has remained firmly committed to and proactive in promoting green growth and creating an environment conducive to sustainable development, as clearly demonstrated through pioneering and progressive policies. Notably, Vietnam’s efforts have not only encouraged businesses, from small and medium-sized enterprises (SMEs) to large corporations, to transition towards greener operations, but have also helped them see this transition as a real opportunity for growth, innovation, and the building of a more sustainable and resilient future. This progress reflects strong collaboration between the public and private sectors, and the Vietnamese Government deserves recognition for its achievements.
What’s most crucial now is to maintain and build upon this momentum. Sustained policy continuity and a clear regulatory framework are essential to guide businesses in navigating the green transition, knowing how to adapt, how to operate, and how to align with national sustainability goals. Equally important is the provision of catalytic funding and support, especially for startups and SMEs.
Many of these enterprises are also offering critical and urgently-needed solutions such as clean energy, green transportation, and clean water, all addressing the growing demands of society. Therefore, access to funding during this phase is vital and can determine whether a business survives and thrives.
Looking ahead, we are eager to expand our cooperation with Vietnam, with many promising initiatives being implemented under the P4G Summit framework. These include startup support programs, green growth market mapping activities, and the application of digital technology and AI to support the development of innovative enterprises.
I believe Vietnam is currently standing at a particularly significant crossroads in the field of green growth. This is not only a chance to develop solutions that meet domestic needs, but also an opportunity to bring those innovations to regional and international markets.
We are committed to continuing our support for our startup partners in Vietnam, helping them enhance their fundraising readiness, from improving pitch presentations and building compelling financial profiles to connecting with potential investors. Through this approach, we hope that innovative green enterprises in Vietnam will not only survive but thrive, contributing to the country’s sustainable future and generating positive global impact.
Dr. Mallé Fofana, Global Executive and ASIA Regional Director, Global Green Growth Institute (GGGI)
I believe the Vietnamese Government truly understands the vital role of policy in driving green growth. It’s encouraging to see that they also recognize the real-world challenges faced by startups and climate tech innovators, especially when it comes to accessing finance, navigating regulatory frameworks, and transitioning from traditional, carbon-intensive activities to more sustainable practices.
Green policies are not only the foundation for attracting green investment, but also act as a catalyst to accelerate the implementation of climate solutions. At present, Vietnam is exploring innovative policies, such as integrating AI into emissions management and reductions. AI holds the potential to cut emissions by 5-10 per cent over the next few years, and establishing a supportive policy environment for its application is a strategic and forward-looking move.
Another notable effort by the Vietnamese Government is the development of a green startup ecosystem map, which helps identify where each enterprise stands on its development journey and what challenges they face. This allows support to be more targeted and effective, ranging from the incubation to growth stages. Importantly, a significant portion of emission reductions is expected to come from technologies currently in their early stages of development. Therefore, prioritizing support for startups and climate innovation enterprises is critically important, not only for advancing the green economy but also for contributing meaningfully to national goals on emission reduction and climate change adaptation.
Vietnam is now demonstrating clear leadership in the green transition. The government is not only partnering with the private sector but also treating climate action as a global responsibility. Smart, consistent, and long-term policies will play a pivotal role in mitigating risks, boosting investor confidence, and channeling capital into Vietnam’s green and sustainable sectors.
In addition, financial tools such as de-risking mechanisms and blended finance will be essential solutions for Vietnam. These tools help lower investment barriers and create opportunities for the private sector to invest more boldly in green sectors. When combined with tax incentives or clear regulatory frameworks, they can further reveal the true potential of green innovation to businesses.
Ultimately, policy is part of a broader, long-term framework aligned with Vietnam’s net-zero emissions targets for 2030 and 2050. A stable, transparent, and consistent ecosystem will pave the way for climate startups, venture capital funds, and both public and private sectors to contribute effectively to Vietnam’s sustainable development goals in the years to come.
Mr. Bruno Jaspaert, Chairman, EuroCham Vietnam, and General Director, DEEP C Industrial Zones
A country like Vietnam is at a crossroads, where it must be ready to embrace sustainability, drive innovation forward, and position itself as a regional leader. Doing so will allow it to distinguish itself from other investment destinations. Change is never easy - it demands hard work, effort, and energy.
However, the process of sustainable development requires commitment, effort, and strong coordination from multiple parties. The biggest barriers we currently face include limited local management capacity, a lack of training opportunities, difficulties accessing green finance, and policy-related obstacles.
For example, Deep C is one of the pioneers in applying the new eco-industrial park standards developed by the UN Industrial Development Organization (UNIDO), and Vietnam is among only a few countries that have integrated these standards into its legal system. As a leader in this field, we have never requested financial support or received any incentives. However, if we want more developers to follow this path, it is essential to have discussions about the forms of public sector support for the private sector, especially in the development of green infrastructure.
We need to frankly acknowledge that developing sustainable infrastructure is often very costly. If Vietnam wants to expand the eco-industrial park model, there needs to be creative support mechanisms. It doesn’t necessarily have to be financial, as support can come in the form of time, such as extending land lease durations, or prioritizing research and development activities.
Vietnamese authorities have told me many times that the country wants to bring more innovation into the country. That’s no easy task. We need to create the right conditions to make it happen. A fixed tax rate might not be the most important factor. What matters is ensuring companies are motivated to bring innovation to Vietnam. That means smart incentives, like activities with a different social tax rate, investments that can be depreciated differently, or special tax statuses for foreign experts.
In addition, activities that require specialized skills and are also vital to Vietnam should be earmarked, and we need to focus on those skills. It is crucial to overhaul Vietnam’s education system so that the skills of its people align with the needs of investors who want to bring innovation here.
Mr. Tim Evans, CEO, HSBC
Even though the Vietnamese Government has worked hard on developing its legal framework, the lack of a detailed taxonomy, especially to define what is truly “sustainable” and “green”, remains a hindrance. Greater clarity on regulations would also reduce hesitation around large-scale sustainability projects that require complex financing solutions.
A second barrier is environmental, social, and governance (ESG) disclosure. With over 90 per cent of Vietnamese companies being small and medium-sized enterprises (SMEs), only listed companies are currently required to provide ESG performance and reporting data. Furthermore, much of this data is basic and lacks third-party verification. This, in turn, limits investor confidence, as the data is insufficient to derive accurate ESG ratings.
Additionally, Vietnam’s sustainability standards are not yet fully ready for future implementation. This means that financial institutions must rely on international standards and attempt to adapt them to the local market. However, these international standards are currently too advanced for most firms, which prevents them from accessing sustainable financing.
To improve financial policies that attract both public and private investors to support the green transition, Vietnam should focus on several key actions. For example, setting clear requirements for each credit instrument would allow banks to develop more robust green credit frameworks. Clear targets on green credit performance should also be established for each bank, such as setting a specific percentage of outstanding green loans relative to their total lending book.
Vietnam should also consider increasing credit growth quotas for green sectors. Providing incentives to motivate banks in their green transition could include offering a higher general credit growth cap to banks that meet or exceed green targets, and a lower cap for those that do not. Lowering the Required Reserve Ratio for green loan balances could also serve as a powerful tool to encourage green market growth.
Furthermore, Vietnam should develop an enhanced framework for green capital market instruments. Currently, the State Securities Commission (SSC)’s handbook, which guides the issuance of green bonds, is not a binding regulation. Introducing financial incentives for sustainable bond issuance, such as tax advantages, reduced regulatory fees, and other financial benefits, would help stimulate both domestic and international investor interest. For instance, Singapore launched the Sustainable Bond Grant Scheme in 2017 and the Green Sustainability-Linked Loan Grant Scheme in 2021, effectively lowering barriers to entry for sustainable bond issuers.
Finally, Vietnam should consider blending public and private sector efforts to support the green transition. Partnerships between the public and private sectors can help “crowd in” additional private finance. The demand for finance is so great that the only path to success is through collaboration.
Mr. Edwin Tan, Deputy CEO, Frasers Property Vietnam, Managing Director, Industrial Logistics (Southeast Asia)
Frasers Property Vietnam (FPV) is part of the Frasers Property Group, a multinational investor-developer-manager of real estate products and services across the property value chain with close to S$48.9 billion ($37.25 billion) in total assets under management (AUM). The Group has real estate footprints across 20 countries and territories and its significant Industrial Logistics (IL) business stands at more than S$15 billion ($11.42 billion) AUM across Australia, Europe, and Southeast Asia, predominantly in Thailand, Vietnam, and Indonesia.
In Vietnam, FPV currently operates over 300,000 sq m of built-up industrial and logistics space in southern Binh Duong province and northern Bac Ninh, Hung Yen, and Quang Ninh provinces. With a strong growth trajectory, FPV is on track to reach nearly 1 million sq m by 2028. Expanding beyond its industrial and logistics roots, FPV’s portfolio now includes premium commercial real estate, exemplified by Melinh Point. This Grade-A office building in District 1, Ho Chi Minh City. FPV has also made a strong mark in the residential sector with Q2 Thao Dien, a high-end residential and mixed-use development. Fully handed over to residents, the project now features active management of its commercial components, including Worc@Q2, a modern high-rise office tower.
Real estate contributes nearly 40 per cent of carbon emissions globally and over 70 per cent of a city’s emissions. Hence, sustainability has always been a key area of focus for Frasers Property. We embarked on our sustainability journey in 2006. Across the real estate lifecycle, we must lead and act as a responsible investor, developer, and manager.
We are committed to achieving net-zero carbon emissions for the build environment, creating lasting share value for people, the planet, and society. We are making progress on environmental, social, and governance practices (ESG) on different fronts, from sustainable innovation to green certification and climate adaptation. Frasers Property is the first SGX-listed company to fully commit to net-zero carbon emissions by 2050, encompassing Scope 1, 2, and 3 emissions. In Vietnam, we are the first real estate company with SBTi-approved targets. Our goal is to install 215 MW of renewable energy capacity on our properties by 2030 (~15MW in Vietnam).
Frasers Property is driving innovative solutions for an effective and sustainable energy transition, supporting Vietnam’s ambitious net-zero goal to create lasting positive impact. Our Industrial Service Centre (ISC) is a first-of-its-kind in Vietnam, and we build an ISC in every industrial development, offering a diverse range of amenities to enrich industrial life.
Last but not least, we are advancing the agenda on responsible investment. One of our sustainability goals is to finance the majority of our new sustainable asset portfolios with green and sustainable financing by 2024. To date, the Group has secured approximately $15.1 billion in green or sustainability-linked loans and bonds. Frasers Property is one of the largest issuers of green and sustainable financing among SGX companies. This makes us more attractive to the increasing number of investors and partners that consider ESG factors when making investment decisions. Banks have also accelerated strong support for green loans versus traditional loans as part of their commitment to make their portfolio more sustainable.
This ongoing dedication, guided by a consistent strategy, will bring meaningful and lasting positive impact.
Ms. Thai Huong, Founder and Chairwoman, TH Group Strategy Council
Vietnam hosting the P4G Summit 2025 is a clear testament to the country’s increasingly prominent role in global efforts to promote green growth and sustainable development. In particular, this year’s theme of “Sustainable and People-Centered Green Transition” resonates fully with the development philosophy the TH Group has adhered to since its inception.
We firmly believe that true development is only sustainable when it is based on “Mother Nature”, respecting the laws of nature and putting people at the core. That’s why we have built a complete, closed-loop high-tech agricultural ecosystem, where advancements in AI, global big data, the green economy, and the circular economy are applied thoroughly.
Mastering technology and data not only helps TH optimize costs and improve productivity, but more importantly enables us to create clean, entirely natural products that meet international standards, earning the trust of domestic consumers and being embraced globally. This model has helped us maintain double-digit growth rates, even during difficult periods such as economic crises and global pandemics.
More importantly, this is a model that contributes to shaping a sustainable agricultural economy and a green and circular economy, restoring the greenness of the land and nature, using resources efficiently, and simultaneously creating sustainable livelihoods for farmers. As a result, farmers are no longer outsiders but become a key link in the modern value chain.
Today, the green economy, combined with innovation, is not just a trend but truly brings practical and long-lasting benefits. However, for this trend to spread widely and have profound effects, the role of public-private cooperation is extremely important.
First, we need strong, coherent, and appropriate policies to lead businesses and encourage “pioneers” in each field.
Second, we need to promote the building and sharing of data between businesses. Linking and sharing experiences is the shortest path to integrating technology into production and business processes, creating an ecosystem of mutual learning and development.
Third, economic development must go hand-in-hand with improving the quality of life and physical well-being of the people. Investment in high-tech agriculture, the green economy, and the circular economy not only brings clean, nutritious products but also strategically invests in preventive healthcare, public health, future generations, and national sustainability.
I believe that with the ambition to rise, with an innovative foundation, and the collaboration of the entire ecosystem, Vietnam will successfully seize the opportunities presented by Industry 4.0, realizing the goal of green growth and making strong strides forward into a “New era - the era of the nation’s rise”.
Ms. Le Thi Hong Nhi, Deputy General Director of Communications, External Affairs and Sustainable Development, Unilever Vietnam
In the context of Vietnam actively promoting green transition through progressive policies such as the National Action Plan for the Circular Economy, the Law on Environmental Protection 2020, and the Extended Producer Responsibility (EPR) system, we see this as the ideal time for the private sector to play an increasingly proactive and profound role in creating sustainable solutions.
One of the greatest challenges facing both the world and Vietnam is the issue of plastic waste. With strong determination, the Vietnamese Government has implemented a host of important initiatives, including the National Action Plan on Marine Plastic Debris Management, with the goal of reducing 75 per cent of plastic waste entering the oceans by 2030, and gradually eliminating single-use plastics in coastal areas. Vietnam is also the first country in ASEAN to adopt mandatory EPR, requiring that producers and importers be responsible for managing the lifecycle of their products and packaging.
In response to the government’s call, since 2020, Unilever Vietnam has been a pioneer in collaborating with the Ministry of Agriculture and Environment to establish “Public-Private Collaboration (PPC) to Promote a Circular Economy for Plastic Waste” and many other sustainable development activities.
However, the green transition process still faces many barriers. The infrastructure for waste segregation at the source is not yet complete, recycling technology, particularly for flexible plastics, is still limited, while policies have not yet strongly encouraged the use of recycled materials. EPR, though a significant step forward, still requires adjustments to better support the domestic recycling industry.
To overcome these challenges, we hope that Vietnam can accelerate technological innovation and support local innovators through multilateral cooperation models between educational institutions, startups, small and medium-sized enterprises (SMEs), and global corporations.
At the same time, it is essential to strengthen the policy framework to develop a high-quality recycling industry, particularly by adding mechanisms to encourage the use of recycled plastics in EPR regulations to ensure stable outputs for the domestic recycling industry. The effective use of the Environmental Protection Fund from EPR fees is crucial to fund new technologies, support startups, and drive the application of creative solutions in the recycling sector. Investment in waste sorting and collection infrastructure at the source is also a vital foundation to build a sustainable circular economy ecosystem.
The journey to a green transition cannot be led by one side alone; only when the public and private sectors truly accompany each other, with mutual commitment and joint action, can innovation become a practical driver for sustainable development.
Mr. Truong Sy Ba, Chairman and CEO, Tan Long Group
Green and sustainable agriculture is becoming an urgent requirement in the face of climate change impacts, market volatility, and shifting consumer trends. Future food security is not just about quantity, but about being “Sufficient - Right - Sustainable”. In recent years, I have observed clear interest from our partners and customers in clean production processes that meet environmental, social, and governance (ESG) criteria or certifications for sustainable farming practices. I believe that investing in ESG and sustainable agriculture is an investment in the future, where product quality, consumer health, farmers’ rights, and the stability of ecosystems are all placed at the center.
In line with the global trend of green transformation, we proactively participate and accompany government and international organizations’ sustainable farming programs. Notable examples include the One Million Hectares of High-Quality, Low-Emission Rice project, led by the Vietnamese Government, or the “Transforming the Rice Value Chain to Combat Climate Change and Move Towards Sustainable Development in the Mekong Delta” project, funded by the Embassy of Australia in Vietnam and the Netherlands Development Organisation (SNV), in cooperation with the International Finance Corporation (IFC). This is a strategic direction aimed at creating modern agriculture that is climate-resilient and develops harmoniously with the ecological environment in Vietnam.
We do not follow a path that focuses on production volume at the cost of depleting resources for the future. Tan Long’s practical model is one of “from root to tip”, from production to finished products with traceability, ensuring quality control according to international integration standards.
Currently, Vietnam is facing a huge and transformative opportunity in the journey of food system transformation, opening the door to an era of sustainable, inclusive, and climate-resilient development. This is not only an inevitable global trend but also a driving force for Vietnam to redefine how we produce, distribute, and consume food in a greener, safer, and more efficient manner. If we take advantage of this moment, we can build an intelligent agricultural ecosystem that ensures food security, enhances the value of Vietnamese agricultural products in international markets, and improves the livelihoods of millions of rural people.
With the achievements from our business practices and production, along with our ambitious goals, we are committed to continuously striving to develop green and sustainable agricultural models, contributing effectively to the common goal of creating a sustainable and flexible food system for the future in the context of sustainable development trends in Vietnam.
Mr. To Dung Thai, Chairman of the Member Council, Vietnam Posts and Telecommunications Group (VNPT)
The world is undergoing a strong transformation, opening a new era where technology, the environment, and people develop harmoniously, all heading towards a green and sustainable future. In this context, green transformation and innovation are no longer strategic choices but have become prerequisites for countries and businesses to survive, grow, and establish their position on the global map.
Seizing this inexorable trend, we have not only chosen to participate but also proactively taken on the role of leading the green transformation and innovation process in Vietnam. With a long-term vision, we see green transformation as the foundation for sustainable development, realized through the use of clean energy, reducing emissions, limiting pollution, and protecting the living environment.
In the field of information technology and telecommunications, this direction is embodied by the development of green infrastructure and smart infrastructure, such as energy-efficient data centers, renewable energy applications, and the integration of environmentally-friendly cloud computing solutions.
In line with Resolution No. 57 from the Politburo on breakthroughs in science, technology, innovation, and national digital transformation, we have identified three key tasks. First, to accelerate investment in research and development (RD), focusing on strategic technologies such as AI, big data, the Internet of Things (IoT), 5G, and 6G, to create a foundation for innovation and enhance competitiveness.
Second, to build and deploy modern digital infrastructure, including 5G networks, large-scale data centers, and national digital platforms, to meet the needs of comprehensive digital transformation. Third, to develop a high-quality digital workforce through in-depth training and attracting domestic and international talent, ensuring the ability to sustainably implement technological strategies.
Sustainable development is not only a long-term vision but also a core strategy, demonstrated through specific actions and clear responsibilities towards the country and the future. We are committed to working alongside the government, international partners, and the business community to turn today’s aspirations into tomorrow’s reality in the journey of green transformation and innovation.
-Linh Tong
E-commerce sales surpass $3.9 billion in Q1 of 2025
According to the Q1 2025 Online Retail Market Report and Q2 Forecast report releases recently by data analytics platform Metric, the combined sales of Vietnam’s 4 largest e-commerce platforms (Shopee, TikTok, Lazada, Tiki) reached VND 101.4 trillion ($3.91 billion) in the first 3 months of 2025. This represents a 42.29 per cent jump compared to the same period of last year.
The total number of products sold through e-commerce platforms in the first quarter also reached 950.7 million, up 24 per cent year on year.
Notably, this revenue growth has led to a significant reshuffling of market share. TikTok Shop recorded a remarkable sales growth of 113.8% in the first quarter, raising its market share from 23 per cent to 35 per cent. This surge reflects the growing consumer preference for video-based “shoppertainment” experiences.
Meanwhile, despite a 29.3 per cent increase in revenue, Shopee saw its market share slip from 68 per cent to 62 per cent underscoring the mounting competitive pressure in the sector. Lazada and Tiki also experienced steep declines in sales, with losses of 43.5 per cent and 66.6 per cent respectively.
Metric highlighted the rapid consumer shift toward content-driven platforms like TikTok Shop as a critical signal for e-commerce platforms to recalibrate their development strategies.
The first quarter of 2025 also saw a sharp decline in the number of active small retailers, with over 38,000 shops disappearing from the market compared to the same period last year. Conversely, the number of high-performing sellers rose substantially, particularly those generating over VND 50 billion ($1.92 million) in revenue, which nearly doubled (up 95 per cent) from the first quarter of 2024.
According to Metric, the retreat of small-scale sellers is making way for larger, more capable vendors with superior operational resources.
Consumers are increasingly gravitating toward official branded stores (Mall shops), making them a key driver of e-commerce growth. Although they account for just 3 per cent of total sellers, these Mall shops contributed 26.7 per cent of total sales on Shopee and TikTok Shop, highlighting their pivotal role in generating value. This trend reflects growing consumer prioritization of authenticity and service reliability amid widespread concerns over substandard products.
Imported goods on Shopee are gaining ground over domestic sellers thanks to their competitive pricing, wide range of designs, and alignment with local consumer tastes. In the first quarter of 2025, imported products achieved VND 3.6 trillion ($134.78 million) in sales with over 80 million units sold, reflecting a 12.2 per cent increase in revenue and a 7.18 per cent rise in volume.
Despite accounting for only 5.9 per cent of total market share, imported items continue to attract buyers due to their affordability and diversity, with the average price per product standing at just VND 45,000 ($1.73). This points to a strong consumer inclination toward high-volume, low-cost purchases, intensifying pressure on domestic vendors—particularly in the mass-market segment.
This growing competition poses a major challenge for local sellers, pushing them to enhance product quality and rethink their pricing strategies. In this context, advantages such as faster delivery and deeper local market knowledge will be crucial for domestic businesses looking to defend their market share.
Niche categories are showing impressive momentum, with strong potential for breakout growth in the near future. In the first 3 months, beauty products, home living, and women’s fashion remained the top-performing categories on e-commerce platforms, with total revenues reaching VND 18 trillion ($693.17 million), VND 13.8 trillion ($531.52 million), and VND 11.9 trillion ($458.32 million) respectively.
Meanwhile, the dominance of mid-range products became increasingly evident. The VND 100,000–200,000 ($3.85- 7.7) price bracket led the way in both revenue and units sold, increasing its market share from 22.7 per cent to 25.9 per cent. In contrast, the share of premium items priced over VND 1 million ($38.5) declined from 19.4 per cent to 17.2 per cent. This segmentation underscores the strong potential of the mid-range segment, particularly in beauty, fashion, and baby products.
Among the top 10 highest-grossing brands, the majority belonged to the beauty sector. Tech giants, while still posting strong numbers, showed signs of deceleration. Samsung and Xiaomi ranked second and third respectively in revenue in Q1, but experienced year-on-year declines of 28.4 per cent and 17.1 per cent. In contrast, Apple maintained its top position, recording a revenue increase of approximately 58.3 per cent compared to the same period last year.
Looking ahead, Metric.vn forecasts that total industry revenue in Q2 2025 will reach VND 116.6 trillion ($4.49 billion), with product volume estimated at 1.112 billion units, representing quarter-over-quarter growth of 15 per cent and 17 per cent respectively. This growth is expected to be fueled by a range of favorable factors, including the mid-year promotional campaigns such as summer sales festivals, and an increasingly stable online shopping behavior. Consumer spending is also showing a clear shift toward essential goods, health care, and high-quality products with transparent origins.
In addition, e-commerce platforms are continuing to invest heavily in logistics, livestream shopping, and seller support tools, which are enhancing the overall shopping experience and driving higher conversion rates. All these factors together reinforce optimism around the e-commerce sector’s recovery and growth momentum heading into the second quarter of 2025
-Viet An
Hanoi to build $254 mln craft village industrial cluster
Hanoi plans to build Nam Tien Craft Village Industrial Cluster in Phu Xuyen outlying district of Hanoi with a total investment capital of VND623 billion (more than $23.9 million), the Vietnam News Agency quoted the municipal People’s Committee as reporting.
Spanning 26.3ha across Nam Tien commune and Phu Minh town, which are known for traditional crafts such as carpentry and mechanical engineering, the industrial cluster is designed to relocate production facilities from residential areas. It aims to improve environmental protection, enhance product quality, and promote sustainable industrial practices.
Hoang Tin Urban and Infrastructure Development Investment JSC has been selected as the main investor for the project. The industrial cluster is expected to be completed in two years and operate for 50 years.
The site will feature modern infrastructure, including a centralized wastewater treatment plant, separate wastewater and surface water collecting systems, street lighting, and trees. Priority will be given to secondary investors that use clean, automated, and high-tech production processes that meet stringent environmental standards.
-Vân Nguyễn
Vietfood Beverage Exhibition 2025 set to open in HCM City in August
The Vietfood Beverage – Propack 2025 exhibition, the leading trade event for Vietnam’s food, beverage, and processing-packaging industries, is scheduled to take place in Ho Chi Minh City on August 7-9, according to a report from the Vietnam News Agency.
It is expected to draw over 1,000 businesses from more than 20 countries and teritories, and feature 1,400 booths showcasing top-tier food, beverage, packaging, and processing technologies from global and domestic brands.
The event will also serve as a venue for enterprises to engage in B2B networking, explore market trends, and strengthen their business strategies.
Workshops and seminars will also be held on the sidelines of the exhibition, with hands-on experience and trend updates particularly valuable for those involved in RD and quality control.
-Vân Nguyễn
Quang Nam calls for investors to invest in 277 projects
The People’s Committee of central Quang Nam province has issued a list of 277 projects calling for investment in 2025.
These projects focus on key areas such as industrial zone infrastructure, industrial production, urban development, tourism, healthcare and education.
Noteworthy, the province calls for investors to invest in upgrading Chu Lai airport with a capacity of handling 10 million passengers and 1.5 million tons of cargo per year.
They also include projects to build two urban railway routes connecting with neighboring Da Nang city, which are expected to help enhance connectivity between the two key tourism centers of the central region.
-Phương Nhi
Preparing for trade negotiations with U.S.
Prime Minister Pham Minh Chinh on April 22 presided over a meeting to discuss preparations for trade negotiations with the U.S.
The meeting drew the participation of Standing Deputy Prime Minister Nguyen Hoa Binh, Deputy Prime Ministers Tran Hong Ha, Le Thanh Long, Bui Thanh Son, Nguyen Chi Dung, and Mai Van Chinh, and several Cabinet ministers.
The Prime Minister was quoted by the Government News as saying at the meeting that Vietnam has adopted flexible and timely responses since the U.S. Administration announced reciprocal tariff policy, and that Vietnam's responses have been positively appreciated by the U.S. side.
These responses include the phone conversation between General Secretary To Lam and President Donald Trump, dispatch of Deputy Prime Minister Ho Duc Phoc as special envoy of the General Secretary to the U.S., appointment of Minister of Industry and Trade Nguyen Hong Dien as special envoy of the Prime Minister to discuss with the U.S. side.
Leaders of the Party and State of Vietnam also met with the U.S. Ambassador to Vietnam, American politicians, scientists, and businesses to discuss the U.S. tariff policy.
The Government has promulgated a decree under which several tariff lines shall be reduced on imports from the U.S.; resolved barriers in several projects concerned by the U.S. side; and increased purchase of U.S. goods such as aircraft to balance bilateral trade.
Prime Minister Pham Minh Chinh stressed that Vietnam will continue negotiations with the U.S. to promote bilateral trade in a balanced, stable, sustainable and effective manner for the benefits of each country and businesses and consumers of the two sides.
Vietnamese exports do not compete with those of the U.S. So far, the two countries have maintained trade relations that benefits American consumers.
Vietnam stands ready to negotiate at the requests of the U.S., the PM affirmed.
He requested ministries, branches, especially the negotiation delegation to prepare well for negotiations with the U.S. side, on the principle of closely following the instructions of the Politburo, General Secretary To Lam, the Government, and the Prime Minister to promote balanced and sustainable Vietnam-US trade; not to complicate the issue; not to affect international agreements to which Vietnam is a signatory; not to let this affect another; not to let this market affect another market; to have reasonable solutions for mutual benefit, harmonious benefits, and shared risks.
The current global trade situation would provide Vietnam an opportunity to restructure export drivers and enterprises, diversify products and supply chains, improve the quality of products, develop high-tech products, and promote green economy, circular economy, knowledge economy and sharing economy based on science, technology, digital transformation in accordance with the global trends.
PM Chinh also requested ministries, agencies and localities to coordinate and settle the issues concerned by the U.S. side, while developing and improving institutions to promote management and protection of domestic production, especially the origin of goods, and prevent smuggling, trade fraud and counterfeit goods.
He urged ministries, agencies and localities to continue review tax refund mechanisms , cut administrative procedures and compliance costs and time.
The Government chief underscored the need to encourage and attract foreign investment in a selective manner, with a focus on high-tech areas, to promote technology transfer, human resource training, research and development, and to support enterprises to join production and supply chains of foreign companies.
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Venture capital has enormous potential
Venture capital (VC) fundraising in Southeast Asia took a significant hit in 2024, plunging 68 per cent against 2023 and marking a four-year low, according to a recent report from DealStreetAsia Data Vantage. Despite the turbulence in the regional market, Vietnam remains a bright spot. Speaking with Vietnam Economic Times / VnEconomy, three investment funds - Ascend Vietnam Ventures (AVV), Monk’s Hill Ventures, and Antler - emphasized that Vietnam continues to offer the stability needed to attract venture capital, reinforcing its position as a resilient destination for investors.
Mr. Justin Nguyen, Managing Partner at Monk’s Hill Ventures, said the fund is not overly concerned about these short-term fluctuations. On the contrary, he believes that this is one of the best times to invest in Southeast Asia, particularly in Vietnam, a market that continues to demonstrate stability despite broader challenges.
Mr. Eddie Thai, Managing Partner of AVV, and Mr. Erik Jonsson, Managing Partner at Antler Vietnam, are both of a similar mind. They affirmed that their funds remain well-capitalized to support promising startups.
That said, experts have acknowledged that the success rate for startups in securing funding has declined compared to previous years. Even those that do secure investment often face longer fundraising timelines and lower capital volumes than previously.
Global headwinds
Discussing the key reasons behind the slowdown in VC flows in recent years, fund representatives agreed on two main factors.
First, on a global scale, economic cycles, market volatility, and rising interest rates have made investors more cautious. Fundraising has become increasingly difficult as institutional investors prioritize asset preservation over high-risk deals.
Second, in Southeast Asia specifically, the region faces several internal challenges, including fraud scandals, ineffective fund management, and mounting pressure for exits to realize returns. These factors have exacerbated an already tough global fundraising environment, making it even more challenging for the region.
Highlighting the issue of inefficiency, Mr. Thai pointed out that an eight-year-old VC fund in the US may have already returned over 50 per cent of its capital to investors, while in Southeast Asia the figure could be as low as 10 per cent. This explains why investors tend to favor US-based funds, especially in today’s uncertain climate, where they seek safer alternatives over high-risk investments.
However, Mr. Nguyen emphasized the need for a long-term perspective. Southeast Asia’s VC ecosystem is still in its early stages. The region is currently at a similar stage to where China was in the 2000s, with Covid-19 acting as its equivalent of a “global financial crisis”. The fundamentals, however, remain strong: a young, dynamic population, a rapidly-growing digital economy, and improving infrastructure. The real boom is still ahead. The priority now is to continually build the ecosystem, nurture promising startups, and create locally-driven success stories that will attract the next wave of investment.
Resetting investment criteria
Though VC funds continue to maintain a stable pace of disbursement, they are becoming increasingly cautious about selecting which startups to invest in. Mr. Jonsson said Antler is now placing greater emphasis on core business fundamentals such as financial sustainability, market fit, and operational efficiency. “Last year, we received 2,348 applications but invested in only 24, or some 1 per cent,” he explained. “This was not because we want to make it difficult for startups, but because we aim to build companies that can withstand any economic turbulence.”
The era of “burning cash for growth at all costs” is over. With capital no longer as cheap or as easily accessible as before, funds are eliminating distractions and concentrating resources on the most resilient startups, those with sustainable revenue models and visible profitability.
In this challenging landscape, founders with strong financial management skills have a significant advantage. Not only can they help their businesses navigate market headwinds, they can also convince investors and unlock new growth opportunities.
Mr. Thai noted that the decline in “hot money” in the market brings certain benefits. Funds now have more time to build relationships with founders, conduct thorough due diligence, and secure reasonable deal terms, rather than being swept up in the overly optimistic market sentiment of previous years. Over the next 5-10 months, AVV expects to lead at least five new investments.
Meanwhile, Mr. Jonsson observed that the VC market is gradually returning to its fundamental nature. During periods of cheap capital, many companies without true “VC-scale” potential were still able to secure funding, even though their business models were better suited to other financing channels. Now, as capital becomes more expensive and investors exercise greater caution, this natural filtering process has become more apparent, a shift that, in the long run, benefits both startups and investors alike.
Evolving preferences
Representatives from three VC funds believe that startups with product models supporting digital transformation will strongly attract investors. “We are optimistic about technology sectors benefiting from digital transformation, such as industrial digitization and smart manufacturing,” Mr. Jonsson said. “These fields have significant growth potential, playing a crucial role in enhancing operational efficiency and driving innovation.”
Mr. Nguyen pointed out that global supply chain shifts and rising FDI inflows are accelerating Vietnam’s adoption of technology in manufacturing. Local businesses are increasingly recognizing digitalization as the key to competitiveness and meeting international standards, creating substantial opportunities for startups in supply chain optimization, digital transformation, and enterprise technology.
Additionally, “rural-tech” is another sector holding potential. With more than 60 per cent of Vietnam’s population living outside of major urban areas, this remains an underexplored market in industries such as financial services, e-commerce, and agricultural technology.
Mr. Thai expressed interest in startups operating in education, agritech, and industrial technology.
Gradually rebounding
As the market enters its third consecutive year of capital contraction, the key question remains: when will the recovery begin?
According to Mr. Jonsson, predicting the exact timing of a full recovery is challenging, but he remains cautiously optimistic. “History shows that downturns often set the stage for strong growth cycles,” he said. “Under the right conditions, VC fundraising in Southeast Asia could gradually recover over the next few years.”
Mr. Thai highlighted that one of the key drivers of market recovery is the increasing number of exit deals. Over the next 2-5 years, several significant transactions are expected, initially driven by strategic merger and acquisitions (MAs), private share sales, and secondary transactions. “We expect that in the years ahead, some companies will reach sufficient scale to pursue IPOs [initial public offerings],” he said. “At AVV, we anticipate that key policy reforms in 2026-2027 will create a more favorable environment for VC investment.”
For his part, Mr. Nguyen emphasized that the issue is not a lack of capital but rather that investors are waiting for truly compelling opportunities. “This is a period of market ‘cleansing’, refocusing attention on sustainable business models, both for VC funds and startups with disciplined growth and clear profitability roadmaps,’ he continued. “In the long run, this will strengthen the ecosystem.”
With late-stage funding becoming scarcer and investor sentiment more cautious, startups are also adjusting their fundraising strategies. While VC remains a critical funding source, many startups are exploring alternative financing channels. Venture debt has emerged as a popular option for companies with stable revenue and short-term profitability potential, allowing them to extend their runway without excessive equity dilution. Additionally, private investments and structured secondary transactions are becoming more common, particularly for growth-stage companies struggling to secure later-stage funding.
Experts predict that this trend will persist even as the market recovers, as investors increasingly favor startups with strong capital management strategies, diversified funding sources, and the ability to adapt to macro-economic fluctuations.
-Ngô Huyền
PM asks to accelerate transport projects in Mekong Delta
At a conference held in the Mekong Delta city of Can Tho on April 21 to review the progress of major transport infrastructure projects in the Delta, Prime Minister Pham Minh Chinh called for “faster, bolder and greater” action in Mekong Delta transport infrastructure development, stating that each year must be better than the last, and each term must surpass the one before.
The PM was quoted by the Vietnam News Agency as saying at the conference that unlocking all modes of transport, including road, air, maritime, inland waterway, and rail, is key to lifting the Mekong Delta out of poverty and propelling its growth.
He underlined that each generation must contribute to achieving this overarching goal.
According to the road network plan for 2021–2030 with a vision to 2050, the region will have 1,256km of roads, comprising three vertical and three horizontal expressways.
Currently, 121km of vertical expressways have been completed, including Ben Luc – Trung Luong – My Thuan (91km), My Thuan – Can Tho (23km) and My Thuan 2 Bridge (7km). From 2021 to 2025, ten additional expressway projects totaling 432km are being implemented. A further 703km are planned for the coming time, including the 90km Ca Mau – Dat Mui route which is the last section of the eastern North – South expressway.
With strong Government oversight and local cooperation, issues such as land clearance and the supply of construction materials have been largely resolved, allowing smoother implementation.
Key projects include Can Tho – Ca Mau (110km), which is scheduled to complete by 2025; Chau Doc – Can Tho – Soc Trang (191km), expected to finish in July 2026; and Cao Lanh – An Huu, to be completed by 2027. Meanwhile, the My An – Cao Lanh project's construction will begin in June 2025, the Cao Lanh – Lo Te and Lo Te – Rach Soi projects have their construction deadlines in 2025, and the Ho Chi Minh Road (Rach Soi – Ben Nhat, Go Quao – Vinh Thuan) and Rach Mieu 2 Bridge are all scheduled for completion this year.
In aviation, the region currently has four airports: Can Tho, Ca Mau, Rach Gia and Phu Quoc. A high-speed rail line connecting Ho Chi Minh City and Can Tho (174km) is planned for investment before 2030, with a future extension to Ca Mau under review.
The maritime network includes 12 seaports across all delta localities, while a comprehensive system of inland waterways and logistics corridors is being developed.
PM Chinh affirmed that in special circumstances, with extraordinary efforts and methods, exceptional results have been achieved, surpassing initial targets.
He outlined three key requirements for all infrastructure projects: completion on time or ahead of schedule, high quality, and no cost overruns, adding there must be zero corruption and strict adherence to environmental standards.
The PM instructed the Ministry of Construction to issue guidance next week on adopting advanced technologies to accelerate construction.
With construction materials now largely secured, he called on relevant ministries to expedite the reallocation of sand and the transfer of mining rights between projects to ensure resource efficiency. The Ministry of Finance was tasked with guaranteeing sufficient funding.
Drawing inspiration from the Great Spring 1975 Victory, the 50th anniversary of which will be celebrated on April 30 (April 30, 1975 – April 30, 2025), the PM called for “faster, bolder and greater” action in transport infrastructure development, stating that each year must be better than the last, and each term must surpass the one before. He stressed a long-term vision that prioritizes national interests above all.
By the end of the current term, the region is expected to have 600km of expressways, with a goal of at least 1,300km by 2030 - 100km more than initially planned.
Plans are also in motion to expand Phu Quoc, Ca Mau and Rach Gia airports, with local governments responsible for land clearance. Key seaports under development include Cai Cui, Tran De and Hon Khoai.
The Government leader also underscored the need for comprehensive and inclusive development, underpinned by transparency and accountability, with clear responsibilities, clear timelines, and clear outcomes.
He reiterated the principles of ensuring the benefits of the State, the people and enterprises, and say no to corruption and wastefulness of public assets and resources.
Beyond transport, the Government plans initiatives to combat land subsidence, erosion, and salinity, and to enhance health care, education and human resources development, he stated.
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Hai Phong to auction residential project worth $309 mln
The People's Committee of the northern port city of Hai Phong has issued a decision approving the auctioning of land use rights for an investment project aimed at constructing a residential area in Ngo Quyen District.
The Ngo Quyen District People's Committee has been assigned to organize the auction to identify an investor for the project, which has an estimated total investment capital exceeding VND8 trillion (nearly $309 million).
According to the approved auction plan, a 13.6-ha land plot in Alley 226 Le Lai, May Chai Ward, has been designated for auction.
Within the approved land area: over 6.79 ha are zoned for residential development; more than 1.88 ha for social infrastructure facilities; some 4.8 ha for transportation development; and nearly one hectare for technical infrastructure and parking lots.
The 6.79-hectare residential land portion is divided into four functional zones, including areas designated for villas, townhouses (terraced houses), mixed-use apartment buildings, and social housing.
The auction is tentatively scheduled for April 2025.
Participation conditions require bidders to demonstrate financial capacity to ensure land use according to the project timeline, possess business registration lines suitable for the designated land use, and show experience and capability in project development.
-Nam Khánh - Đỗ Hoàng
Deputy Chairman of UOB: “The Bonsai symbolizes our approach”
As the bank marks more than eight decades of operation and approaches its 90th anniversary, the bonsai serves not only as a visual metaphor but also as a cultural cornerstone-particularly in UOB’s expansion efforts across ASEAN.
“We don’t chase rapid expansion. We believe in taking a long-term view, rooted in strong fundamentals. That’s what enables us to grow with resilience,” Mr. Wee Ee Cheong, Deputy Chairman and CEO of United Overseas Bank (UOB), noted that the bank’s steady presence in Vietnam exemplifies this philosophy.
UOB’s journey in Vietnam began in 1993 with the opening of a representative office, followed by the establishment of a branch in Ho Chi Minh City in 1995. Since then, the bank has focused on building a strong foundation through consistent investments in digital infrastructure, sustainable finance, and talent development.
Empowering Vietnam’s digital and green transformation
UOB is deepening its commitment to Vietnam’s digital and green transformation through sustained investment in technology, innovation, and people—aligning closely with the country’s push for a digitally driven, sustainable economy. According to Mr. Wee Ee Cheong, technology is a key enabler in this transformation.
“Our unified platform, developed to span across ASEAN, enables us to deliver seamless banking services regardless of geographic location,” he said.
Mr Wee Ee Cheong, Deputy Chairman and CEO of United Overseas Bank (UOB)Now active in key markets such as Vietnam, Malaysia, and Thailand, the integrated platform ensures clients receive consistent, efficient service across the region. Designed to go beyond core banking, the platform enhances cross-border trade finance and supply chain management, streamlining operations and reducing paperwork. This has been particularly impactful for foreign investors looking to enter or expand in Vietnam.
Reflecting on recent developments, Mr. Wee shared that the COVID-19 pandemic further accelerated UOB’s digital rollout. In response to changing customer behavior, the bank fast-tracked the launch of its digital banking app called UOB TMRW (Tomorrow), which has been well-received across the region and is set to introduce in Vietnam this year.
At present, UOB continues to take the omni-channel approach to banking, combinating digital innovation with in-person service. “Digital-savvy customers, especially the younger generation, prefer to interact via apps, while older generations tend to visit branches. We have tailored our offerings to serve both groups with a flexible approach, adapting our physical presence to meet customer preferences,” he explained.
Currently, UOB operates five branches in Vietnam, though this number could evolve in line with digital adoption rates. “Ultimately, it’s about delivering the best possible experience to our customers,” he said.
Alongside digitalization, UOB is also taking measured steps toward integrating artificial intelligence (AI) into its operations. Initial applications in customer service—particularly in call centers—are helping anticipate customer needs and enhance efficiency. “AI can greatly improve efficiency, but only if the data behind it is accurate. In banking, where confidentiality is crucial, any misstep can be costly. That’s why we apply AI carefully and with robust oversight”, Mr. Wee emphasized.
He added that while broader AI applications—such as personalized product offerings—are being explored, customer data security remains paramount. “AI is a powerful tool—but without proper control, it can be dangerous. Human oversight remains essential.”
Beyond technology, Mr. Wee underlined the importance of talent development. “No matter how advanced our systems are, they’re only as good as the people operating them,” he said. “That’s why we prioritize training and development—to empower our employees to fully leverage digital tools and deliver exceptional service.”
Additionally, UOB is reinforcing its commitment to green transformation. Mr. Wee highlighted that the bank’s new headquarters in Ho Chi Minh City’s District 1 is being designed with sustainability in mind. “A focus on sustainability is beneficial for everyone, not just the bank, but for the broader community as well. While progress may take time, we all have a role to play in ensuring that we continue to move in the right direction,” he emphasized.
UOB’s talent strategy in Vietnam
UOB expands its presence across ASEAN, developing and retaining the right talent remains a cornerstone of its long-term growth strategy—particularly in rapidly growing markets like Vietnam. For Mr. Wee Ee Cheong, sustainable success is not just about hiring the right people, but also about creating an environment where they are equipped to excel.
At UOB, talent empowerment is driven by ongoing investments in training, digital tools, and leadership development. By fostering a culture rooted in innovation and continuous learning, the bank ensures its people are well-prepared to navigate the evolving demands of a digital-first economy.
However, building a stable workforce in Vietnam presents challenges, especially with a young and ambitious talent pool. Many employees, after gaining initial experience, are drawn to opportunities elsewhere that offer faster career progression or higher compensation. Recognizing this trend, UOB places a strong emphasis on long-term employee value.
The bank encourages staff to view career development not merely as a corporate benefit, but as a personal investment in their future. By cultivating an inclusive and supportive work environment, UOB aims to inspire employees to build meaningful, enduring careers—rooted in purpose, growth, and a shared vision for success.
UOB's commitment to community and legacy
UOB emphasizes the importance of adaptability, not only in business but also in its engagement with local communities. In Vietnam, the bank actively contributes through initiatives like the UOB Heartbeat program, which focuses on education and social impact. “We don’t just work in a country; we aim to be a part of it,” said Mr. Wee Ee Cheong. This approach fosters acceptance, which is vital for long-term success.
UOB’s commitment to education is a cornerstone of its broader corporate social responsibility (CSR) strategy, which is structured around three core pillars: art, education, and children. Among these, children’s education is given particular emphasis due to its long-term impact on individual lives and communities. By focusing on education, especially for underprivileged children, UOB aims to equip the next generation with the skills needed to thrive in an increasingly digital world.
A key component of this initiative is improving digital literacy. In today’s economy, the ability to navigate and utilize technology is essential, and providing access to digital tools and learning platforms can significantly level the playing field for disadvantaged youth. To mark its 90th anniversary, UOB is partnering with an education platform to support 120,000 underprivileged children across Singapore and the region. “It’s about making a lasting impact on society,” Mr. Wee affirmed.
UOB embraces a philosophy of deliberate, sustainable growth to preserve its legacy while embracing innovation. Mr. Wee likens this approach to nurturing a bonsai tree, symbolizing patience, care, and the right environment for growth. The bonsai is featured in UOB’s annual reports and in the bank’s Singapore branch and will be in new Ho Chi Minh City headquarters. “It reminds our people, especially in Vietnam, that we are here to grow together—with patience, purpose, and pride,” he added.
As UOB strengthens its presence in ASEAN, its bonsai-inspired philosophy shapes not only its financial strategy but also its role in supporting communities, nurturing talent, and contributing to sustainable development. The bank's senior management team, with decades of experience, ensures stability and continuity, maintaining a consistent vision.
The bonsai at UOB headquarters in SingaporeWith UOB’s 90th anniversary approaching, Mr. Wee identifies UOB's most significant legacy as its ability to thrive across three generations. "Many family businesses and SMEs struggle to carry on from one generation to the next, but UOB has managed to grow over three generations and continues to evolve as a leading regional bank. This longevity is a testament to the culture we've built, the adaptability we've embraced, and the institutional strength we've developed," he stated.
To ensure sustainability, UOB focuses on cultivating a strong organizational culture. “We believe in growing our own timber,” Mr. Wee explained, noting the long tenure of the bank’s senior leadership team. This continuity supports UOB’s long-term growth.
Upbeat on long-term outlook
Looking ahead to UOB’s 100th anniversary, the bank’s long-term vision centers on becoming more deeply rooted in the ASEAN region. Over the next decade, UOB aims to increase activities, strengthen engagement, and accelerate growth across all key markets. A core component of this strategy is simplifying banking processes and making them more intelligent through the integration of artificial intelligence. This will enable UOB to scale more efficiently and deliver more responsive, tailored services to its customers.
Over the next 10 years, UOB also sees significant potential in ASEAN’s demographic advantage—a young, growing population of over 600 million people. However, unlocking this potential depends on maintaining political stability and fostering stronger regional cooperation. Rather than competing within the region, UOB emphasizes the importance of a unified ASEAN front, where collaboration enhances global competitiveness. Without this collective approach, ASEAN risks missing out on critical opportunities.
By focusing on innovation, efficiency, and regional solidarity, UOB aims to contribute meaningfully to the region’s development and ensure it remains dynamic and prosperous.
In 2025, the banking industry faces key challenges and opportunities amid global economic uncertainties, particularly the impact of tariffs. While tariffs add complexity, UOB’s 90 years of experience navigating economic storms gives the bank confidence in its ability to weather future challenges.
The imposition of U.S. tariffs has significant ramifications, not only for Vietnam but for countries across the ASEAN region. Higher costs for goods going to the U.S. could shift trade routes, with Vietnam, facing particularly high tariffs, potentially redirecting trade to other ASEAN nations or Europe. Mr. Wee acknowledges that the current global economic landscape creates added pressure.
However, UOB remains optimistic about the medium- to long-term outlook. "We shouldn’t overreact to short-term challenges," Mr. Wee emphasized. Despite these uncertainties, the bank’s strategy remains focused on expanding and investing in the region, ensuring continued growth and stability in the face of global fluctuations.
-Nhu Quynh
Capital mobilization approved for Da Nang's Thuan Phuoc project
The Da Nang City Department of Construction has announced that the Thuan Phuoc - Da Nang New Urban Area commercial housing investment and construction project is now eligible for capital mobilization, covering approximately 1,880 townhouses and 212 villas.
Situated within the administrative boundaries of Nai Hien Dong and Tho Quang Wards (Son Tra District), the project is developed by Thuan Phuoc Bay Urban Investment Joint Stock Company.
It spans a total land area of nearly 976.5 sq.m, with a total construction investment capital exceeding VND11,493 billion (nearly $444 million).
Of this amount, VND5.485 trillion (nearly $212 million) is allocated for townhouse and villa construction, with approximately VND2.139 billion or $82.6 million (39%) expected to be mobilized from organizations and individuals.
The capital mobilization period begins upon the issuance of the Department of Construction's notice confirming eligibility and will continue until the completion of the project's construction investment schedule.
The project developer is responsible for ensuring the accuracy of all disclosed information and must comply with the principles outlined in Article 116 of the Housing Law regarding capital mobilization and utilization. Additionally, project details must be publicly disclosed in strict accordance with Article 6 of the Law on Real Estate Business 2023.
-Ngô Anh Văn
Nine fill soil mines in Hoa Binh set for mining rights auction
The Ministry of Agriculture and Environment has publicly announced a plan to auction mineral extraction rights in unexplored areas for nine fill soil mines across districts of the northern mountainous province of Hoa Binh.
According to a decision by the Provincial People's Committee, the auction will serve as a basis for determining reserves, approving project investment policies, and granting mineral activity licenses in accordance with regulations.
The initiative aims to ensure the rational and economical management, exploitation, and use of resources, address the demand for fill material for construction projects, and eliminate illegal extraction stemming from shortages in fill material supply.
The auction of extraction rights is expected to unlock the province’s mineral potential, attract investment in efficient exploration and exploitation, enhance economic efficiency, and increase State budget revenue, contributing to the goal of achieving double-digit growth during the 2026–2030 period.
The Provincial People's Committee mandates that mineral mines selected for auction must align with approved mineral exploration, exploitation, processing, and utilization plans and meet the criteria outlined in Article 78 of the Mineral Law.
The plan specifies that auction dossiers will be completed in the second quarter of 2025, with the auction scheduled for the third quarter of the same year.
-Hằng Anh
Quang Binh needs for housing development till 2030
The central province of Quang Binh has unveiled its housing development plan for the 2025–2030 period, aiming to allocate a land area of 5,520.62 ha for residential construction, with a projected total investment capital exceeding VND65 trillion ($2.52 billion).
Under the plan, the province-wide average housing space per person is expected to reach 33 sq.m by 2030.
To achieve this goal, Quang Binh will continue implementing housing and urban development projects already approved by the Provincial People's Committee, including 52 ongoing projects with confirmed investment decisions.
Additionally, the province will explore and invest in planned housing and urban development areas, encompassing 33 designated sites.
Social housing initiatives will also be prioritized, including the Loc Ninh commune project. The province plans to develop 46 social housing areas as listed in the social housing development plan.
The projected investment allocation for the 2026–2030 period includes VND8.75 trillion (nearly $339 million) for commercial housing development, nearly VND2.5 trillion (over $96 million) for social housing, and VND53.85 trillion (more than $2 billion) for individual housing construction by residents.
-Hoàng Bách
Student entrepreneurship encouraged to develop
Prime Minister Pham Minh Chinh has During a conference held in Ho Chi Minh City on April 20 to review the achievements of the student startup support initiative (Project 1665) and launched the 7th National Startup Day for Students (SV.STARTUP), Prime Minister Pham Minh Chinh urged ministries, agencies, and local authorities to create favorable mechanisms and policies that support student entrepreneurship, particularly in the areas of finance and intellectual property.
The PM was quoted by the Government News as highlighting that the Party and State's long-standing commitment to empowering young people as key drivers of the national development. He praised the growing creativity and dynamism of student-led startup movements seen through each edition of the conference.
He expressed support for expanding student startup support funds using public capital, establishing platforms for idea exchange, and developing mentor networks at both local and institutional levels.
The Prime Minister expressed his belief that 20 million young people—equipped with vision, intellect, and proper guidance—will spearhead advancements in science and technology, helping to elevate Vietnam's global standing in the digital era and lead the country toward becoming a regional and global innovation hub.
Since its inception seven years ago, Project 1665 has achieved significant milestones. All universities, academies, colleges, vocational schools, and the 63 provincial and municipal Departments of Education and Training now have actionable plans to support student entrepreneurship.
To date, students across the country have launched over 42,000 startup projects. The Ho Chi Minh Communist Youth Union (HCYU) has played a pivotal role by organizing more than 3,500 startup idea competitions, engaging nearly 480,000 young people and generating close to 23,000 proposals.
Over the past seven years, Project 1665 has also transformed the education sector's approach to entrepreneurship and made significant contributions to the country's startup ecosystem.
Between 2020 and 2024, Vietnamese students launched nearly 39,000 startup projects, with secondary and high school students initiating around 9,000. Since 2020, nearly 300 startups have emerged from university incubators. More than 2,000 educators and nearly 10,000 students have been honored for their contributions to entrepreneurship.
-Phạm Long
Competition becomes more intensified in FB sector
Vietnam’s food and beverage (FB) industry has demonstrated remarkable resilience amid ongoing economic headwinds, with total revenue reaching approximately VND688.8 trillion ($26.96 billion) in 2024, a 16.6 per cent increase compared to 2023, according to the 2024 FB Market Business Report released by iPos.vn on March 18.
However, the report also revealed a significant disparity in business performance across the industry. While the overall market recorded strong growth, only 40.2 per cent of businesses achieved stable or increasing revenues, whereas nearly 60 per cent struggled to maintain profitability or faced revenue declines. This indicates that not all enterprises were able to fully capitalize on the industry’s upwards trajectory. “The market is becoming increasingly polarized, with advantages favoring brands that have well-structured business strategies and long-term development plans,” the report noted.
Uneven growth
Vietnam’s FB industry experienced a clear divergence between the first and second halves of the year in 2024, according to the report. In the first half, total revenue reached VND403.9 trillion ($15.81 billion), driven in part by the late arrival of the Lunar New Year, or Tet, holiday.
However, the second half presented a more challenging landscape. Despite Vietnam’s economy entering a recovery phase, the pace of consumer spending growth declined sharply. It was not until November, when the market entered the year-end festive season, that revenue showed signs of a rebound.
In terms of market expansion, the total number of FB establishments in the country was estimated at 323,010 as of the end of 2024, reflecting a modest 1.8 per cent increase compared to the previous year. This growth, however, remains notably lower than the 3.1 per cent recorded in 2023, signaling that the industry is still undergoing a period of adjustment following recent economic hardships.
Vietnam’s FB industry continues to face significant challenges, particularly the pressure of maintaining profit margins amid rising operational costs. Businesses are being forced to rethink their models and implement flexible strategies to ensure stability and long-term sustainability.
A nationwide survey of 4,005 FB establishments by Nestlé Vietnam and iPOS.vn revealed that only 25.5 per cent of businesses managed to maintain stable revenue compared to the same period in 2023, while just 14.7 per cent reported growth. These figures highlight the uneven nature of the industry’s recovery and the difficulties many businesses face in adapting to market dynamics.
One of the key issues facing struggling businesses is the lack of flexibility in their operational models. Many establishments that fail to keep up with emerging trends, rely on intuition-based decision-making, or lack a clear long-term strategy are at risk of being phased out.
2024 marked a period of natural market consolidation, as many underperforming independent establishments were forced to shut down due to high operational costs and weakened consumer spending. In contrast, larger FB chains demonstrated greater resilience, benefiting from optimized operational strategies and stronger financial management, the report stated.
The primary driver of these challenges is intensifying competition, as consumers now have more choices than ever before. At the same time, businesses are grappling with rising costs for raw materials, labor, and overall operations, while their ability to raise prices remains limited.
Consumer sentiment has shifted towards price sensitivity, and brands are increasingly competing through promotions and discount programs, the report noted. This trend has been further amplified by the rapid expansion of online food delivery platforms such as ShopeeFood and GrabFood, which have reshaped pricing strategies and heightened competition within the industry.
Delicate balance
In 2024, 44.8 per cent of FB businesses reported that raw material costs accounted for at least 30 per cent of their selling prices, with 6.2 per cent saying they exceeded 50 per cent, pushing profit margins into the critical zone.
On the other hand, only 24.8 per cent of businesses managed to keep raw material costs below 20 per cent of their selling prices, highlighting the mounting pressure from rising input costs. This surge has forced establishments to adapt quickly. The spike in ingredient prices is driven by multiple factors, including inflation, escalating transportation costs, supply shortages, exchange rate fluctuations, and rising employee wages.
To cope with these challenges, some FB businesses have implemented price increases of 5 to 15 per cent, optimized their product offerings and portion sizes, sought new suppliers, and leveraged technology for cost management.
Looking ahead, raw material cost pressures show no signs of easing in the short term, requiring FB businesses to adopt even more flexible strategies.
Striking the right balance between pricing, profitability, and consumer purchasing power will be a critical challenge in 2025 as the market grows increasingly competitive, the report warned.
Commenting on the prospect of price increases in 2025, Mr. Nguyen Thai Binh, Co-founder of Concepts - VCS Academy, emphasized the need for FB businesses to exercise careful consideration. While input costs continue to rise, consumer purchasing power remains weak, making abrupt price hikes a risky move that could hurt sales as customers become increasingly cautious with their spending. “Instead of implementing across-the-board price increases, businesses should focus on cost optimization by negotiating with suppliers, adjusting recipes, or modifying portion sizes,” Mr. Binh suggested.
He further advised that if price adjustments are unavoidable, a flexible pricing strategy should be applied, taking into account regional differences, customer segments, and product value enhancements to maintain competitiveness and consumer appeal.
As operational costs continue to rise, the adoption of technology has become a critical factor in helping FB businesses streamline operations, enhance the customer experience, and maintain a competitive edge. From customer data management and workflow optimization to personalized services, technology plays a vital role in improving business efficiency and adapting to modern consumer trends.
Technology is increasingly becoming an essential tool for traditional restaurants to boost efficiency while preserving their unique identity and service culture. This distinctiveness serves as the core value of a business, shaping products and services that leave a lasting impression. However, in order to optimize operations, drive revenue growth, and reduce costs, integrating technology into business processes is no longer an option, it has become a necessity.
On March 19, at the “Solutions for Developing FB Chain Models Combining Traditional Culture with Technology and Innovation” seminar, held as part of the Food Hospitality Hanoi 2025 exhibition, Mr. Anthony Tuan Phan, Founder and CEO of AIAIVN, emphasized that technology is not only a tool for improving operations but also a powerful enabler for systematic data collection and management in the FB industry. “With the help of technology, customer information can be gathered quickly, and their feedback processed in a structured manner,” he noted. “This allows restaurants to analyze insights more effectively and make informed adjustments to their business strategies.”
Mr. Hoang Tung, Chairman of FB Investment, is of a similar mind, emphasizing that customer data is a valuable asset for businesses. However, if not collected and utilized effectively, companies risk missing out on opportunities to enhance the customer experience and drive revenue growth. “Thanks to solutions like online surveys and QR codes, restaurants can gather customer feedback immediately after their meal,” he said. “By analyzing this data, businesses can gain deeper insights into consumer behavior, personalize experiences, and even remember customers’ past orders. This helps to improve service quality and create a sustainable competitive advantage.”
Technology has become a critical tool for optimizing business operations, allowing FB companies to focus on enhancing the customer experience and driving revenue growth. With challenges ahead, Vietnamese FB businesses must adapt to meet the increasingly demanding expectations of consumers.
-Anh Hoang
Construction of a new passenger terminal of Dong Hoi airport begins
Construction of Passenger Terminal T2 of Dong Hoi airport in the central province of Quang Binh kicked off on April 19, with an investment capital estimated at over VND1.75 trillion (approximately $72.3 million).
It is a sub-project of the project for expansion of the airport, including construction of the terminal and expansion of aircraft apron.
Once completed, the Passenger Terminal T2 will have a capacity to serve three million passengers annually.
Addressing the groundbreaking ceremony, Vice Chairman of the provincial People’s Committee Doan Ngoc Lam said this project is very important to the socio-economic development of the province and the north-central region as a whole.
It will help to improve infrastructure system of the province and open up new opportunities to attract more investment, he said.
-Nguyễn Thuấn
PM requests to complete Can Tho - Ca Mau expressway by December
Prime Minister Pham Minh Chinh has required that the Can Tho-Ca Mau expressway project must be completed by December 19, 2025 to mark the National Resistance Day, while examining the construction site in southern Ca Mau city on April 20.
This is the eighth time the Government leader inspected the project since its construction began on January 1, 2023.
The 110-km expressway connects Mekong Delta Can Tho city with nearby provinces of Hau Giang, Bac Lieu, Kien Giang, and Ca Mau in the delta.
The Can Tho-Ca Mau expressway has a total investment capital estimated at over VND27.5 trillion ($1.05 billion). It is the last section of the Eastern North-South expressway project.
-Thanh Thủy
LG CNS Vietnam seeks investment opportunity in Da Nang
LG CNS Vietnam Co., Ltd., a subsidiary of South Korea's LG Group, is seeking an investment opportunity in the central city of Da Nang.
During a recent working session between the People's Committee of the city and LG CNS Vietnam Co., Ltd., Mr. Ho Ky Minh, Standing Vice Chairman of the municipal People's Committee, told the company that Da Nang has approved a policy for utilizing the infrastructure of the Concentrated Information Technology Zone – Da Nang Software Park No. 2 (Phase 1), including preferential leasing mechanisms, either through auction or without auction, for strategic partners in the fields of semiconductor chips and artificial intelligence.
Under Resolution 136/2024/QH15 of the National Assembly on organization of urban government and pilot implementation of specific regulations and policies on Da Nang city development, companies which are classified as strategic partners are eligible for various practical and flexible support policies.
Additionally, information technology enterprises are currently entitled to the highest level of incentives, including a 10% tax rate for 15 years, tax exemption for the first four years, and a 50% reduction in payable tax for the subsequent nine years. They are also exempt from import tax on goods used to create fixed assets and imported raw materials, supplies, and components utilized in production.
To accommodate high-tech growth, Da Nang is accelerating the development of supporting infrastructure, such as the Hi-Tech Park, the Concentrated IT Zone, and associated power systems, fiber optic cables, internet connectivity, and data platforms, aimed at serving investors.
-Hạ Chi