VnEconomy - Vietnam Economic Times

Government's new action plan for combatting money laundering and terrorism financing adopted

Sun, 28 Jun 2026 08:30:00 GMT

The plan aims to remove Viet Nam from the list of countries subject to increased monitoring issued by the Financial Action Task Force (FATF) – a global money laundering and terrorist financing watchdog.

Under Prime Ministerial Decision No.1139/QD-TTg, signed by Deputy Prime Minister Nguyen Van Thang on June 26, the Government's new action plan for combatting money laundering, terrorism financing, and the financing of the proliferation of weapons of mass destruction (WMD) has been adopted.

The plan constitutes part of Vietnam's efforts to implement its international commitments to prevent and combat money laundering, terrorism financing, and proliferation financing, the Government News remarked

The plan aims to remove Vietnam from the list of countries subject to increased monitoring issued by the Financial Action Task Force (FATF) – a global money laundering and terrorist financing watchdog.

Under the plan, the Government required ministries and central agencies to develop, issue, and effecively carry out their action plans to reduce risks of money laundering for 2023-2028 period.

Ministries and central agencies are requested to develop and implement supervision mechanisms for the deployment of their action plans; enhance cooperation with foreign partners.

Since June 2023, when Vietnam made a high-level political commitment to work with the FATF and APG to strengthen the effectiveness of its AML/CFT regime, the country has taken some steps towards improving its AML/CFT regime.

FATF suggested Vietnam should continue to work on implementing its action plan to address its strategic deficiencies, including increasing risk understanding; enhancing international co-operation; implementing effective risk-based supervision for FIs and DNFBPs, taking action to regulate virtual assets and virtual asset service providers.

Vietnam should conduct outreach activities with the private sector, establish a regime that provides competent authorities with adequate, accurate and up-to-date information on beneficial ownership.

VGP-Khanh Van

Attractive offerings from Vietnam's International Financial Center

Wed, 24 Jun 2026 10:30:00 GMT

As the International Financial Center in Vietnam comes into being, the task now at hand is shaping core product portfolios that appeal to investors.

As both the global and domestic economies undergo profound structural shifts, the need to develop breakthrough financial products for Vietnam’s International Financial Center (IFC), headquartered in Ho Chi Minh City and Da Nang, has become increasingly urgent. Such products are expected to attract long-term capital, provide solutions to national-scale bottlenecks, and elevate the standing of Vietnam’s financial market.

Recent directives from the government have sent strong signals regarding a new wave of economic institutional reform. On June 2, 2026, Prime Minister Le Minh Hung chaired a meeting on IFC implementation, assigning ministries and agencies to coordinate with specialized bodies to urgently design flagship product portfolios for the IFC in Ho Chi Minh City and Da Nang.

Ho Chi Minh City IFC

With contributions from a seven-member founding alliance comprising the Sovico Group, VinaCapital, Nasdaq, three major commercial banks (MB, TPBank, and SHB), and Son Kim Capital, the Ho Chi Minh City IFC (VIFC-HCMC) possesses an ideal platform for implementing sophisticated capital structures that combine financial and technological resources with underlying asset infrastructure to create transformative core products.

The first flagship product is a Digital Project and Sustainability Bond framework designed to mobilize and direct long-term capital from international institutions into strategic infrastructure megaprojects and key social housing and rental housing programs in the city, thereby easing budgetary pressures.

VIFC-HCMC could propose a Digital Bond issuance model under which issuers would include the Ho Chi Minh City Finance and Investment State-Owned Company (HFIC) or authorized State-owned corporations responsible for project implementation.

These bonds would not rely on State budget allocations for repayment. Principal and interest obligations would be secured by domestic revenue streams. For project and green infrastructure bonds, repayment sources would include future operating revenues, commercial and service exploitation rights, or land auction proceeds. For social housing and rental housing bonds, repayment would be supported by housing sales revenues or recurring rental income.

A portion of these VND-denominated revenues could be converted into USD through currency swap instruments provided by member commercial banks, thereby reducing exchange-rate risks associated with servicing USD-denominated bonds sold to international investors through the Nasdaq connectivity platform.

The Digital Bond model would operate under a two-tier structure.

Tier 1 - Private Placement and Initial Liquidity Creation: Project entities would issue VND-denominated Digital Bonds through private placements directly on the IFC’s technology platform. International investment funds and financial institutions within the IFC ecosystem would serve as anchor investors, committing to purchase 60-70 per cent of each issuance. The IFC platform, in coordination with founding commercial banks, would provide automated digital foreign-exchange conversion mechanisms, simplifying currency conversion procedures and enabling direct VND disbursement to projects without placing pressure on the State budget.

Tier 2 - International Public Distribution Through the VIFC-Nasdaq Connectivity Platform: The remaining bond volume would be listed in USD on a dedicated digital board operated by VIFC-HCMC. Through direct technological integration with Nasdaq, these Digital Bonds would be displayed simultaneously on both platforms, allowing international investors to place orders and trade in USD via Nasdaq’s infrastructure. Nasdaq’s system would automatically match orders against the underlying assets listed on VIFC-HCMC, ensuring real-time cross-border liquidity while complying with domestic monetary security requirements.

To enhance attractiveness, internationally-linked Digital Bonds issued within the IFC sandbox environment should be granted a zero-tax regime covering foreign contractor tax, dividend income tax, and capital gains tax. Foreign investors would also be guaranteed the right to freely convert currencies and repatriate capital and profits in USD. Administrative friction would be minimized through real-time RegTech (regulatory technology) monitoring systems integrating anti-money laundering (AML) controls and electronic Know-Your-Customer (eKYC) processes on blockchain-based infrastructure.

The second product is an international marketplace for fundraising and intellectual property (IP) tokenization. A major challenge in implementing the Law on Support for Small and Medium-Sized Enterprises is that technology companies and innovative startups often possess valuable IP and patents but face difficulties accessing capital due to the challenges of valuing intangible assets and the banking sector’s concerns regarding collateral.

VIFC-HCMC could address this bottleneck by tokenizing IP assets, such as patents and software copyrights, into blockchain-based IP Tokens. Legal documentation, certification histories, and projected revenue streams would be embedded into smart contracts, ensuring transparency and immutability.

Once packaged, these IP Tokens could be listed on a dedicated digital board within VIFC-HCMC, utilizing technology infrastructure linked to Nasdaq’s digital asset and cross-border trading systems. Through this direct connection, international venture capital funds would gain access to the IP assets of Vietnamese small and medium-sized enterprises (SMEs).

Fund managers would serve as anchor investors supporting market liquidity, while the alliance of the three commercial banks would act as custodians of underlying assets and provide working-capital credit lines based on real-time token valuations.

The third product is a global tokenized agricultural commodities and carbon credit exchange. Each year, tens of billions of USD worth of key Vietnamese agricultural exports, including coffee, rice, and pepper, remain dependent on pricing mechanisms determined by overseas commodity exchanges.

Through its strategic relationship with Nasdaq, VIFC-HCMC should establish a tokenized agricultural commodities and carbon credit exchange. Combining international matching-engine technology, clearing and settlement capabilities from founding commercial banks, and the logistics networks of diversified corporate members would enable Vietnam to gain greater control over pricing for its agricultural products.

Farmers and businesses would benefit from transparent pricing and direct trading through digital certificates, reducing intermediary financial costs and retaining more value within domestic agricultural supply chains.

Da Nang IFC

While Ho Chi Minh City represents the depth of the corporate capital market, the 12 official members of VIFC Da Nang possess stronger financial technology capabilities. Based on this foundation, several core products could be developed.

The first product would be a Digital Bond framework supporting logistics infrastructure across central Vietnam. Similar to the VIFC-HCMC model, it would adopt a two-tier structure, with institutional placements at Tier 1 and retail distribution through Da Nang IFC’s International Digital Asset Exchange at Tier 2.

Bond repayment obligations would be supported by future revenues from port services, warehousing fees, and transportation services generated by pilot logistics networks across the region.

The second product is a dedicated offshore digital banking institution. To fully leverage the special mechanisms established under Resolution No. 259/2025/QH15, Da Nang should consider developing a dedicated offshore digital banking model to strengthen its competitiveness against regional financial centers such as Singapore and Hong Kong (China).

Under this framework, non-resident offshore accounts would operate in a zero-tax environment with unrestricted capital mobility. State-owned commercial banks, in collaboration with digital financial groups, would provide real-time payment services and specialized foreign exchange hedging infrastructure.

This would create a critical financial pipeline facilitating cross-border capital flows while reducing administrative friction costs for foreign trade activities by an estimated 1.5-2 per cent for FDI enterprises operating along the East-West Economic Corridor.

A key innovation of the model lies in replacing paper-based administrative controls with digital infrastructure. Cross-border eKYC procedures, AML compliance checks, and unusual transaction monitoring would be fully automated using decentralized technologies and AI operated by the IFC’s technology and legal alliance.

This smart governance framework could reduce operating costs by up to 60 per cent compared to traditional models while creating a secure environment for attracting foreign capital without undermining domestic monetary stability.

In conclusion, by designing a portfolio of flagship products closely aligned with the strengths of founding members and fully leveraging the institutional and technological advantages of the IFC to address practical national and local challenges, Vietnam can transform the IFC into national models of innovation.

These breakthrough products represent the strategic intersection between the government’s macro-economic management objectives, local aspirations for institutional reform, and the economic interests and development ambitions of participating members. They can serve as a launchpad for Vietnam’s financial market to navigate increasingly challenging global macro-economic conditions and contribute meaningfully to the country’s goal of rapid and sustainable development in the new era.

VET-Hong Ha

HCM City targets services sector to contribute up to 75% of GRDP by 2040

Tue, 23 Jun 2026 01:30:00 GMT

The target is part of the southern city's strategy to become a leading services hub in Southeast Asia.

Ho Chi Minh City has set an ambitious goal of increasing the contribution of the services sector to 60–65% of its Gross Regional Domestic Product (GRDP) by 2030 and 70–75% by 2040, as part of its strategy to become a leading services hub in Southeast Asia.

The city’s People's Committee has issued a plan to implement a project aimed at transforming the southern metropolis into a major national and regional services center, focusing on high-value, modern service industries.

Under the plan, the services sector will remain the primary engine of economic growth and play a leading role in restructuring the economy toward greater efficiency, modernization and sustainability. The city targets annual service-sector growth of 12–14% during the 2025–2030 period. Between 2030 and 2040, service-sector growth is expected to remain strong at 11–13% per year.

The strategy identifies three groups of priority industries. Strategic sectors include finance, banking and insurance; information and communications; transportation, warehousing and logistics; science, technology and innovation; and tourism. Potential growth sectors include education and training, healthcare, and digital economy services, while supporting sectors comprise trade, real estate, arts, sports and entertainment.

A key feature of the plan is the implementation of a “5+1” development model, with Ho Chi Minh City - based Vietnam's International Financial Centre serving as the core and linked to five strategic service hubs: a maritime and logistics center; an information, communications, science and innovation center; a tourism center; a healthcare center; and an education and training center.

By 2030, the city aims to become Southeast Asia’s leading services center and maintain its role as Vietnam’s economic powerhouse in digital economy development, finance, science and technology, logistics, tourism, education and healthcare.

Looking further ahead, the city targets becoming one of Asia’s leading service hubs by 2035 and joining the world's top 100 fastest-growing, most modern and sustainable cities. By 2045, it aspires to achieve global service-center status and rank among the world's top 50 rapidly developing, modern and sustainable cities.

VnEconomy-Minh Huy

$6.5bln raised through G-bond auctions as of June 15

Mon, 22 Jun 2026 00:00:00 GMT

The figure equivalent to 33.7% of the 2026 target.

Vietnam’s State Treasury has raised VND168.5 trillion (approximately $6.5 billion) through government bond issuance as of June 15, fulfilling about 33.7% of its 2026 fundraising target, according to the Ministry of Finance.

Under the ministry’s plan, the State Treasury is tasked with issuing a total of VND500 trillion in government bonds this year to support state budget financing and fiscal balance.

In the second quarter alone, the Treasury conducted 11 bond auctions, raising VND88.4 trillion. All bonds were issued through competitive auctions, with maturities ranging from three to 30 years.

Issuance yields have continued to trend higher compared with last year. By mid-June, the average bond yield had reached 4.09% per annum, up 0.83 percentage points from the average level recorded in 2025.

The State Treasury said it has maintained a flexible approach to interest-rate management, closely monitoring market developments and aligning its issuance strategy with the monetary policy orientation of the State Bank of Vietnam.

VnEconomy-Mai Nhi

Continued resilience of Vietnam's economy

Fri, 19 Jun 2026 09:30:00 GMT

Economic performance in the first five months of 2026 was solid overall though certain concerns are emerging.

Vietnam’s economy maintained its solid recovery trajectory over the course of the first five months of 2026, with bright spots found in industrial production, public investment, FDI inflows, and international goods trade. Behind the growth figures, however, several emerging concerns warrant close attention: mounting inflationary pressure, a widening trade deficit, sluggish domestic demand, and a growing dependence on the FDI sector. These developments suggest that the economy is entering a phase in which the challenge is no longer simply to grow faster but to become more self-reliant and achieve more sustainable growth.

Industrial production

The Index of Industrial Production (IIP) rose 9.1 per cent year-on-year in the first five months, 0.3 percentage points higher than the growth recorded during the same period of 2025. It also marked the strongest five-month performance in four years.

The manufacturing and processing sector remained the primary growth driver, making the largest contribution to industrial output, exports, and job creation. The result underscores the resilience and adaptability of Vietnam’s manufacturing base despite continued uncertainty in the global economy.

The expansion in industrial production also reflects the initial effectiveness of policies aimed at supporting businesses, accelerating public investment, and improving the business environment.

Industrial production continues to be a key pillar of economic growth. However, the quality of the recovery is facing increasing pressure from rising input costs and external volatility.

Still, industrial output data only captures the sector’s end-results. To assess the quality and sustainability of the recovery, it is necessary to examine leading indicators such as new orders, production volumes, and business sentiment. These trends were reflected clearly in the Manufacturing Purchasing Managers’ Index (PMI) for May, which rose to 52.8 points from 50.5 points in April.

Output expanded for the 13th consecutive month, with growth accelerating significantly from March and April. New export orders returned to growth after two months of decline. Purchasing activity and inventories of raw materials also increased substantially. Yet these positive signs should be interpreted with caution.

The rise in orders and purchasing activity during May did not stem entirely from stronger aggregate demand. Rather, much of the increase reflected businesses’ efforts to hedge against potential supply chain disruptions linked to the conflict in the Middle East. Many companies proactively increased inventories of raw materials and goods to protect themselves against future price shocks and supply shortages. As a result, current growth signs appear to be driven more by risk mitigation than by genuine market demand.

More importantly, input costs increased for the fourth consecutive month, hitting the fastest pace of growth since April 2011. Rising prices for imported materials, fuels, and logistics services forced many manufacturers to raise their selling prices. This not only affects profitability and competitiveness but also increases inflationary pressure across the broader economy.

The rebound in the PMI reflects a recovery in manufacturing activity, but much of the momentum appears to be driven by precautionary behavior rather than a durable improvement in demand. The PMI data suggests, however, that manufacturing remains on a growth path despite mounting cost pressures.

However, economic health is measured not only by production activity but also by the ability of businesses to enter, survive, and expand. Against that backdrop, business formation and market exits during the first five months provide additional insights.

Business formation rises sharply

Vietnam recorded 94,800 newly-established enterprises in the five-month period, up 42.1 per cent year-on-year. Combined with nearly 47,800 businesses resuming operations after a period of temporary suspension, total market entrants reached 142,600 enterprises.

This is a positive sign, indicating a significant improvement in business confidence compared with last year. However, 74.47 per cent of newly-established enterprises were concentrated in the services sector, while growth in new industrial and manufacturing enterprises remained modest. On average, each newly-established enterprises registered only 4.5 employees and average charter capital of VND11.2 billion ($431,000).

These figures suggest that while the number of new businesses is rising rapidly, their scale remains small and their contribution to new productive capacity is limited. Most new enterprises continue to focus on trade and services rather than expanding the economy’s manufacturing base.

At the same time, 78,800 businesses suspended operations, more than 31,400 ceased operations pending dissolution, and over 19,000 completed dissolution procedures. In total, 129,200 enterprises exited the market, equivalent to 90.6 per cent of the number entering the market. This ratio indicates that the business environment remains challenging, particularly for small and medium-sized enterprises (SMEs).

More businesses are entering the market, but resilience and business quality remain unresolved challenges. For an economy as open as Vietnam’s, corporate performance is closely tied to international market conditions. Therefore, in addition to domestic business indicators, trade data remains a critical gauge of competitiveness and economic resilience.

Trade deficit widens

Vietnam’s total goods trade turnover stood at $445.12 billion in the first five months of 2026, up 25 per cent year-on-year. Exports totaled $215.66 billion, increasing 19.5 per cent, while imports surged 30.8 per cent to $229.46 billion, resulting in a trade deficit of $13.8 billion.

Notably, the trade deficit in May reached $5.21 billion, exceeding the $3.99 billion deficit recorded in April.

The trend suggests that many businesses have accelerated imports of materials and goods as a precaution against supply chain disruptions and price volatility associated with the conflict in the Middle East.

While higher imports may help businesses manage risks and maintain production, they also highlight the manufacturing sector’s heavy reliance on imported inputs.

Another notable feature is the continued dominance of the FDI sector in exports. Of the $215.66 billion in total exports, FDI enterprises accounted for $172.16 billion, up 24.7 per cent and representing 79.8 per cent of the total. The domestic sector generated only $43.5 billion in exports, up 2.5 per cent and accounting for just 20.2 per cent.

The widening gap underscores the limited participation of Vietnamese enterprises in global value chains. While exports are growing rapidly, the economy’s domestic export capacity is not keeping pace with the expansion of the FDI sector.

FDI inflows

FDI attraction remained another bright spot during the first five months of 2026. Yet behind the impressive growth figures lies a larger question: Is Vietnam strengthening its internal economic capacity, or becoming relatively weaker?

During the period, 1,576 new FDI projects were licensed with total registered capital of $14.84 billion; more than double the level recorded a year earlier. Disbursed FDI reached $9.75 billion, up 9.6 per cent for the highest five-month growth rate in five years.

However, the composition of FDI inflows deserves close monitoring. Of total registered FDI, $4.19 billion came from capital contributions and share acquisitions, up 46.7 per cent year-on-year. In May alone, such transactions totaled $1.68 billion, accounting for more than 40 per cent of the five-month total.

Most notably, foreign investors completed 828 acquisitions of stakes in domestic companies without increasing charter capital, with a combined value of $3.62 billion. This means that a substantial portion of FDI inflows is not directly creating new production capacity or jobs. Rather, ownership of existing domestic assets is being transferred from local investors to foreign investors.

From a market perspective, such transactions are a normal feature of an open economy. From a long-term development perspective, however, they raise two concerns. First, many domestic enterprises may be struggling with capital shortages, technology gaps, and competitive pressures, prompting them to sell equity stakes to foreign partners. Second, if the trend persists, Vietnam risks becoming increasingly dependent on the FDI sector, potentially weakening its economic autonomy. The issue is not the amount of FDI entering the country, but rather the growing share of investment directed toward acquiring existing assets instead of creating new productive capacity.

Domestic consumption

Retail sales of goods and consumer service revenues increased just 6.1 per cent during the first five months of 2026, below the 7.2 per cent growth rate recorded during the same period last year and slower than growth recorded in the first four months of the year. This occurred despite Vietnam welcoming 10.6 million international visitors, up 14.9 per cent and the highest level ever recorded. Without the boost from international tourism, underlying household demand would appear even weaker.

The data suggests that household incomes have not improved sufficiently to offset rising consumer prices. Inflationary pressures continue to encourage cautious spending behavior among consumers. The economy is unlikely to achieve sustainable growth if household consumption recovers more slowly than production and investment.

Weak consumer demand reflects not only modest income growth but also the increasingly visible impact of rising prices. With business input costs continuing to rise and global energy prices remaining elevated, inflation has become one of the most pressing macro-economic concerns.

Rising inflation

The Consumer Price Index (CPI) increased 5.6 per cent year-on-year in May and 4.31 per cent during the first five months, while core inflation rose 4.04 per cent. These figures are relatively high given the dual objective of maintaining macro-economic stability while pursuing double-digit economic growth.

Current inflation is largely cost-push in nature. Higher raw material prices, rising logistics costs, exchange rate pressures, and elevated global energy prices are all contributing factors.

Under the World Bank’s baseline scenario, assuming the most severe disruptions ease and shipping through the Strait of Hormuz gradually returns to near pre-conflict levels by the end of the year, Brent crude oil prices are projected to average $86 a barrel in 2026, up 24.6 per cent from $69 per barrel in 2025. This factor alone could add approximately 1.1 percentage points to the CPI.

At the same time, expanded public investment and adjustments to State-administered prices for selected goods and services could place additional upward pressure on prices. Inflation is no longer a latent risk; it is becoming an active constraint on growth and macro-economic stability.

Emerging constraints

Viewed individually, many indicators point to encouraging economic performance. However, when production, business activity, trade, investment, consumption, and inflation are considered together, new constraints on growth become increasingly apparent.

Rising inflation, weak domestic demand, widening trade deficits, fragile domestic enterprises, and growing dependence on the FDI sector are creating new pressures on the economy.

These risks do not exist in isolation - they increasingly reinforce one another. Higher inflation weakens purchasing power; weaker demand limits business expansion; and when domestic firms struggle, the FDI sector gains an even larger role in driving growth. The greatest risk today is not slower growth, but growth that becomes increasingly dependent on external factors and therefore less sustainable.

Recognizing these constraints is, however, not a cause for pessimism. Rather, it is necessary to identify policy priorities more clearly as Vietnam navigates a period of overlapping challenges.

Under current conditions, the top priority for macro-economic management should be controlling inflation and safeguarding macro-economic stability. At the same time, Vietnam should continue institutional reforms, reduce compliance burdens, and lower logistics and input costs for businesses. Policies in growth support should focus more strongly on strengthening domestic enterprises, particularly manufacturers and technology companies.

With respect to FDI, the objective should not simply be attracting more capital, but attracting higher-quality investment that creates new productive capacity, transfers technology, and strengthens links with domestic enterprises. At this stage, the most important task is not merely to accelerate growth, but to protect the quality of growth.

These measures will be most effective if implemented consistently, comprehensively, and in a timely manner. More importantly, they are not just short-term responses to immediate challenges but essential steps toward reinforcing the economy’s long-term foundations.

Results in the first five months of 2026 demonstrate that Vietnam’s economy remains resilient and continues to recover. Yet new pressures are emerging more rapidly than expected.

Looking beyond this year, the greatest risk may not lie in the pace of growth itself but in the quality, autonomy, and sustainability of such growth. If domestic enterprises are not strengthened, and if growth continues to rely excessively on exports and investment from the FDI sector, the gap between economic scale and internal capacity will continue to widen.

Vietnam’s strategic objective in the years ahead should therefore extend beyond achieving faster growth. It should focus on building a more resilient economy, strengthening self-reliance, and increasing the capacity of domestic enterprises to generate higher value-added output.

In the short term, macro-economic stability and inflation control must remain the top priorities. In the long term, however, the strength of domestic enterprises will determine the economy’s resilience and global standing. High growth is important, but growth built on strong domestic foundations is the true basis for sustainable national development.

(*) Dr. Nguyen Bich Lam is the former Director General of the General Statistics Office (now the National Statistics Office under the Ministry of Finance)

VET-Dr. Nguyen Bich Lam(*)

Airport operators must have minimum capital of $3.8 mln from July 1

Wed, 17 Jun 2026 07:10:00 GMT

Enterprises must maintain an organizational structure and personnel capable of ensuring aviation safety, aviation security, and airport business operations.

The Government has promulgated Decree No. 205/2026/NĐ-CP, dated June 15, 2026, providing regulations on airports and landing and take-off pads, according to a news report by Radio the Voice of Vietnam (VOV).

Specifically, the Decree stipulates conditions for airport businesses, airport business licenses, and conditions for providing aviation services at airports.

Regarding airport business operations, the Decree clearly outlines requirements for capital, organizational structure, and personnel.

To establish and maintain an airport enterprise, the following capital conditions must be met: minimum owner’s equity of VND100 billion ($3.8 million); and foreign ownership limit not exceeding 30% of the enterprise's charter capital, except where otherwise provided by international treaties to which the Socialist Republic of Vietnam is a member.

Enterprises must maintain an organizational structure and personnel capable of ensuring aviation safety, aviation security, and airport business operations.

Specifically, personnel responsible for aviation safety must hold certificates confirming their participation in training and coaching courses on aviation safety management systems; and personnel responsible for aviation security must comply with the legal regulations on aviation security.

The Decree further stipulates that an Airport Business License may be granted to an enterprise to operate at one or multiple airports. In the event that an enterprise changes its scope of business at an airport, it must carry out procedures to amend or supplement its Airport Business License.

Airport enterprises will be granted the license upon meeting all aforementioned conditions. These regulations are set to take effect on July 1, 2026.

VOV-

UK launches new climate and green finance partnerships with Vietnam

Wed, 17 Jun 2026 01:40:00 GMT

The initiatives aim to accelerate Vietnam’s energy transition and sustainable development agenda.

The United Kingdom has unveiled two new climate cooperation initiatives with Vietnam, reinforcing bilateral efforts to accelerate the country’s energy transition and sustainable development agenda.

Announced in Hanoi on June 16, the initiatives include the UK–Vietnam Offshore Wind Accelerator Partnership and a new Green Finance Facility under the UK PACT (Partnering for Accelerated Climate Transitions) program.

The first initiative, the UK–Vietnam Offshore Wind Accelerator Partnership, is designed to support Vietnam during a critical stage in the development of its offshore wind industry. The program will combine technical assistance, research collaboration, and international cooperation to help build a robust offshore wind market.

Under the partnership, activities will focus on three key areas: strengthening the capabilities of government agencies and businesses, sharing international best practices drawn from the UK’s extensive offshore wind experience, and providing specialized technical support on priority policy and technology issues. The initiative also complements broader UK support for Vietnam under the Just Energy Transition Partnership (JETP) and other green investment and sustainable finance programs.

Alongside the offshore wind partnership, the UK announced a Green Finance Facility under UK PACT, implemented in collaboration with KPMG. The initiative aims to strengthen Vietnam’s green finance ecosystem and support the country’s transition to a low-emissions economy.

Built upon the existing Vietnam–UK Green Investment Partnership, the facility seeks to mobilize capital from development finance institutions and UK commercial partners while supporting improvements to Vietnam’s regulatory framework through technical assistance and knowledge sharing.

The new programs are expected to enhance Vietnam’s capacity to attract sustainable investment, expand renewable energy deployment, and advance its long-term climate commitments.

VnEconomy-Chu Khôi

ADB plans $4.6bln financing package for Vietnam through 2029

Tue, 16 Jun 2026 08:30:00 GMT

The Asian Development Bank plans to support Vietnam with a portfolio of 27 projects worth approximately $4.6 billion through 2029.

The Asian Development Bank (ADB) plans to support Vietnam with a portfolio of 27 projects worth approximately $4.6 billion through 2029, focusing on infrastructure, energy, urban development, agriculture, and public sector efficiency.

The plan was discussed during a meeting on June 15 in Hanoi between Deputy Minister of Finance Tran Quoc Phuong and Mr. Kim Dongil, Executive Director at ADB representing a constituency that includes Vietnam and some other Asian countries.

During the meeting, both sides reviewed future cooperation priorities, including budget support lending, large-scale infrastructure projects, and initiatives aimed at expanding ASEAN power grid connectivity.

According to ADB, the proposed project pipeline aligns with Vietnam’s key development priorities and is designed to support sustainable economic growth. The two sides agreed that future cooperation should focus on large-scale, high-impact projects capable of generating broad economic benefits rather than dispersing resources across smaller initiatives.

Deputy Minister Phuong noted that Vietnam’s financing needs remain substantial as the country pursues ambitious development goals. He emphasized that investment resources will be directed toward growth-driving sectors and regions with strong capacity to absorb capital effectively.

For his part, Mr. Kim Dongil reaffirmed ADB’s commitment to expanding its operations and financial support through 2030. He said the bank stands ready to assist Vietnam in achieving its socio-economic development objectives and expressed confidence that cooperation between the two sides will continue to deepen in the years ahead.

VnEconomy-Phương Nhi

Corporate bond issuance rises in May as real estate firms increase fundraising

Wed, 10 Jun 2026 23:00:00 GMT

Total corporate bond issuance in May reaching VND40.26 trillion ($1.53 billion), up 21.5% from the previous month.

Vietnam’s corporate bond market recorded a rebound in May issuance, driven largely by commercial banks and property developers, according to data from the Vietnam Bond Market Association (VBMA).

As of May 29, the market had witnessed 29 privately placed issuances of corporate bonds worth a combined VND36.26 trillion ($1.38 billion), alongside 4 public offerings totaling VND3.99 trillion.

Total corporate bond issuance in May reached VND40.26 trillion, up 21.5% from the previous month. However, the figure was down 42% compared with the same period last year.

In the first five months of 2026, privately placed bond value stood at VND107.02 trillion, while public bond offerings at VND20.33 trillion.

Commercial banks and real estate developers continued to dominate the issuance market. Banks accounted for approximately 48% of total issuance value during the month, while property companies contributed about 44%.

The market structure has shifted significantly from a year earlier. In May 2025, commercial banks represented around 70% of total corporate bond issuance. Their share has since declined to 48%, while the proportion issued by real estate companies has doubled from 22% to roughly 44%, reflecting stronger fundraising demand from the property sector.

VnEconomy-Lan Anh

Ministry proposes special mechanism for North-South Expressway expansion

Wed, 10 Jun 2026 07:28:00 GMT

Under the medium-term public investment plan for the 2026–2030 period, the Ministry of Construction has organized the preparation of a pre-feasibility study to widen sections of the Eastern North-South Expressway.

The Ministry of Construction (MoC) has dispatched a document to 11 provinces and cities to solicit feedback on the pre-feasibility study report for a project to expand several sections of the Eastern North-South Expressway.

The localities involved include Dong Nai city and the provinces of Ninh Binh, Thanh Hoa, Nghe An, Ha Tinh, Quang Tri, Quang Ngai, Gia Lai, Dak Lak, Khanh Hoa, and Lam Dong.

Under the medium-term public investment plan for the 2026–2030 period, the MoC has organized the preparation of a pre-feasibility study to widen many sections of the Eastern North-South Expressway. The plan aims to upgrade segments currently featuring four "limited" lanes (17 meters wide) to a complete six-lane expressway standard.

The ministry has requested local authorities to evaluate the project's necessity and socio-economic efficiency. Localities are also encouraged to propose suitable investment models, choosing between public investment and Public-Private Partnerships (PPP). Furthermore, the MoC called for recommendations on "special mechanisms" to resolve bottlenecks in land clearance, construction material supply, and project implementation.

Earlier, while chairing a meeting on June 9 on the investment preparations for the expansion, Minister of Construction Tran Hong Minh reached a consensus on upgrading the four-lane sections to six lanes in accordance with the national master plan. This approach is intended to ensure long-term synchronization and avoid the inefficiency of multiple incremental expansions, which waste time and resources and disrupt the operation of the entire route.

The MoC has also ordered a comprehensive review of the entire North-South Expressway corridor from the northern mountainous province of Lang Son, which borders China, to the southernmost province of Ca Mau. The route is divided into three primary segments: Lang Son – Hanoi, Hanoi – Ho Chi Minh City, and Ho Chi Minh City – Dat Mui (in Ca Mau province). Based on an assessment of traffic volume, technical standards, and transport demand for each specific section, authorities will determine the investment scope and the order of priority for implementation.

Vneconomy-Gia Huy

UK supports Vietnam’s economic transformation through its financial services sector

Wed, 10 Jun 2026 04:26:00 GMT

As a Comprehensive Strategic Partner of Vietnam, the UK is supporting the country's economic transformation through its financial services sector, as well as through investment, expertise, innovation, and long-term institutional cooperation.

Vietnam’s economic transformation over the past decade has been remarkable. Strong export performance, a rapidly expanding middle class, and deeper integration into global markets have positioned the country among Asia’s most dynamic economies. Behind this success lies a less visible but equally critical factor: a modern financial system that enables businesses to access capital, manage risks, and scale efficiently.

As a Comprehensive Strategic Partner of Vietnam, the United Kingdom is supporting this transformation not only through investment, but also through expertise, innovation, and long-term institutional cooperation. Drawing on the experience of one of the world's leading financial centres, the UK is helping Vietnam build financial systems that are efficient, transparent, and resilient.

Today, this partnership is contributing to Vietnam's development in three key areas: expanding access to finance, advancing the green transition, and strengthening the foundations of its financial system.

Expanding access to finance

UK Export Finance (UKEF) has committed at least £5 billion (approximately $6.5 billion) to support projects in Vietnam through its guarantee framework. A Memorandum of Understanding between Vietnam’s Ministry of Finance and UKEF, signed in October 2025 during General Secretary To Lam’s visit to London, has laid the groundwork for deeper collaboration and expanded access to international capital.

Foreign trade remains central to Vietnam’s growth model, but exporting requires reliable financing for working capital, input materials, and order fulfilment. Yet many small and medium-sized enterprises (SMEs) continue to face challenges in accessing trade finance. Through collaboration with local partners, UK banks such as HSBC and Standard Chartered are expanding trade finance, supply-chain financing, and working-capital solutions, helping channel international capital into Vietnamese businesses and enabling them to integrate more deeply into global value chains.

Long-term investors are also contributing to the development of Vietnam’s capital markets. Dragon Capital, with more than three decades of experience in Vietnam, manages approximately $5 billion in assets, while Eastspring Investment Vietnam manages around $7 billion. Their continued presence reflects growing investor confidence and the increasing maturity of Vietnam’s financial sector.

Together, these partnerships are widening access to finance while improving the quality and depth of Vietnam’s financial ecosystem. By linking domestic businesses with global capital and expertise, they are supporting business expansion, job creation, and stronger export performance.

Cooperation is increasingly moving from commitments to implementation. The UK is supporting efforts to mobilise financing and expertise for metro systems and high-speed rail development in Hanoi and Ho Chi Minh City. UKEF has also engaged with key energy companies, including PetroVietnam and Petroleum Technical Services Corporation (PTSC), issuing letters of interest for Vietnam’s first large-scale offshore wind projects. These initiatives are helping unlock investment while accelerating the country’s green transition.

The UK is also supporting Vietnam’s ambition to achieve net-zero emissions by 2050. In 2025, British International Investment provided a $50 million loan to VPBank to expand climate-related financing, further strengthening the flow of capital towards sustainable development.

Building a stronger financial system for long-term growth

Beyond capital flows, UK expertise is helping Vietnam strengthen the foundations of its financial system. Sustainable economic growth depends not only on investment, but also on transparent institutions, modern infrastructure and trusted regulatory frameworks.

The UK is working with Vietnamese partners across fintech, capital-market development and financial regulation. A growing number of UK fintech companies, including Revolut, Wise, Ozone API, Raidiam, Sumsub and iProov, are exploring opportunities in Vietnam, contributing expertise in digital banking, cross-border payments, open finance and digital assets. Their engagement also supports Vietnam’s ambition to develop international financial centres in Ho Chi Minh City and Da Nang.

One flagship initiative is the Trade Finance Registry (TFR), developed in partnership with the State Bank of Vietnam, the Vietnam Banks Association and Boston Consulting Group. Vietnam is estimated to face a trade-finance gap of $85–90 billion, partly due to fraud risks, limited transparency and fragmented data. The TFR seeks to address these challenges through a centralised platform that records and verifies trade transactions, helping reduce risks and expand lending capacity, particularly for SMEs.

Cooperation also extends to commodity markets and financial infrastructure. Through the Growth Gateway programme, the UK is supporting the development of Vietnam’s commodity exchange market by sharing international best practices and strengthening links with institutions such as the London Metal Exchange and ICE Futures Europe.

For Vietnam, the benefits are clear. Better access to finance, deeper capital markets and stronger financial institutions enable businesses to expand, innovate and participate more effectively in global value chains. As the country works toward becoming a high-income economy by 2045 and achieving net-zero emissions by 2050, trusted financial partnerships will play an increasingly important role.

The UK–Vietnam financial partnership is therefore about far more than capital. It combines investment with expertise, strengthens institutions while supporting innovation, and helps build the foundations for a more resilient, sustainable and globally competitive economy.

(*) H. E. Ms. Alexandra Smith is the British Consul General in Ho Chi Minh City and Trade Director for Vietnam

Vneconomy - Alexandra Smith (*)

Strengthening banking cybersecurity

Tue, 09 Jun 2026 03:30:00 GMT

Rising cases of AI-driven fraud are putting pressure on banks to bolster their cybersecurity capabilities.

The pace of digital transformation in Vietnam’s banking and finance sector is accelerating faster than ever. Cashless payments, digital banking, electronic identification, AI, and digital finance platforms are fundamentally reshaping how people transact, store assets, and access financial services. Behind every interaction, however, no matter how brief, lies a quiet battle between convenience and risk; between speed and security.

According to the National Cybersecurity Association, one in every 220 smartphone users falls victim to online fraud. More than half of agencies, organizations, and businesses in Vietnam have reportedly experienced cyberattacks. This has created an urgent need to strengthen risk management capacity, safeguard customer data, and enhance cross-sector coordination in combating high-tech crime.

At the “Building a Digital Trust Ecosystem for Sustainable Financial Growth” panel discussion, held within the Digital Trust in Finance 2026 forum, experts argued that the issue today is “no longer simply whether to pursue digital transformation or whether to adopt AI,” but rather “who will lead and how will stakeholders work together to ensure a transparent, secure, and trustworthy digital financial environment.”

Downside of AI in banking

Mr. Hoang Minh Tien, Deputy Director General of the Information Technology Department at the State Bank of Vietnam, said more than 70 per cent of credit institutions in Vietnam have already adopted AI in their operations. Many banks now record as much as 95-99 per cent of transactions through digital channels. However, he stressed that AI is also reshaping the risk profile of the banking and financial sector, particularly in fraud, impersonation, and cyberattacks.

Mr. Vu Duy Hien, Deputy Secretary General and Chief of Office at the National Cybersecurity Association, said AI is enabling cybercriminals to reach an entirely new level of sophistication. “Previously, carrying out a cyberattack required hackers to spend a great deal of time and effort preparing,” he said. “Today, AI has dramatically shortened that timeframe.”

In just seconds, AI can generate fake videos using a bank executive’s voice, impersonate advisors, or even mimic family members to request money transfers. Fraudulent websites and phishing emails can now be created faster and are increasingly difficult to detect.

According to Mr. Hien, this is an era of “AI versus AI.” One side uses AI to develop services, while the other exploits the same technology to commit fraud, leaving users increasingly unable to distinguish real from fake.

In the AI era, data has become a strategic asset, but it can also become the greatest vulnerability. Mr. Tien noted that AI relies heavily on data, and the banking sector processes enormous volumes of information, from identification and biometric data to account details, transaction histories, and financial behavior. More concerning, even anonymized data can potentially be reverse-engineered by AI models to recover personal information. “If data is not tightly governed, properly segmented, encrypted, purpose-controlled, logged, and monitored, then data itself, the bank’s strategic asset, could become its greatest vulnerability,” he warned.

Anti-fraud race

Mr. Nguyen Hung, CEO of TPBank, said the bank processes between 5 million and 7 million transactions each day. Without AI, “it would certainly be impossible to control,” he added, but the convenience also comes with an intense battle against fraud.

Bank data analysis, he went on, found that in most fraudulent transactions, once money reaches the destination account, it is transferred again within just 40-45 seconds. “After a few minutes, it has already moved through ten banks and eventually converted into cryptocurrency or another form for cash withdrawal,” he explained. That speed makes tracing or freezing funds extremely difficult and is one reason the banking sector has been forced to rethink fraud prevention.

Biometric authentication following Project 06 on Developing Resident Data and Electronic Identification and Authentication Applications to Support National Digital Transformation in the 2022-2025 Period, with a Vision to 2030, has significantly reduced fraud risks. However, criminals have quickly adapted. “Criminals are increasingly shifting to opening corporate accounts, setting up companies to create accounts, and using them to channel money,” he said.

Experts noted that the race between financial institutions and cybercriminals is continuous. While banks strengthen biometric authentication, behavioral monitoring, and AI-powered transaction analysis, fraud networks constantly evolve their methods to bypass protection systems.

Notably, banks are no longer merely institutions for deposits and lending, but are gradually becoming digital platforms, “a service that can be embedded into the products, services, and applications of other organizations,” Mr. Hung said.

This means the digital financial ecosystem is becoming increasingly interconnected: banks are linked to fintech companies; e-wallets connect with social media platforms; payment systems integrate with e-commerce; and data moves continuously across multiple layers of platforms. According to Mr. Tien, when one link fails, risks can spread rapidly, creating systemic risks.

When many organizations rely on the same AI model or depend on a handful of major technology providers, a single disruption can simultaneously affect multiple financial institutions. “AI risks do not stop at individual models or individual banks, but can spread through technology connections, data, suppliers, markets, and automated decision-making,” Mr. Tien warned. As a result, protecting customers is no longer the responsibility of a single bank, but of the entire ecosystem.

Human factors remain decisive

Speaking at the seminar, many experts emphasized that AI cannot replace humans. “AI is very good at reading documents and summarizing information, but very poor at taking responsibility,” Mr. Thai Tri Hung, Chief Technology Officer of MoMo, told the gathering. “Therefore, the final decision must still rest with people.”

Mr. Tien also argued that AI-driven decisions directly affecting customer rights, such as credit approvals, limits, or rejected transactions, require human oversight mechanisms. This is not only a matter of technology, but also one of ethics, transparency, and accountability.

According to experts, though AI is playing an increasingly important role in banking operations, human judgment remains decisive in risk management and customer protection. “The more powerful the technology, the greater the responsibility for governance,” Mr. Tien emphasized. “The smarter AI becomes, the higher the demands for transparency, security, and accountability.”

Figures from the Ministry of Public Security reveal that losses from online fraud in Vietnam in 2025 were estimated to exceed VND8 trillion ($307.7 million). Between 2020 and 2025, the country recorded more than 24,000 cases of online asset fraud, with total losses approaching VND40 trillion ($1.54 billion).

VET-Ky Phong

Central bank proposes easing rules for foreign exchange agents

Tue, 09 Jun 2026 01:30:00 GMT

The move aiming to reduce business conditions, simplify administrative procedures and expand foreign exchange services at locations frequented by international visitors.

The State Bank of Vietnam (SBV) has proposed easing regulations governing foreign exchange agents, aiming to reduce business conditions, simplify administrative procedures and expand currency exchange services at locations frequented by international visitors.

Under a draft circular released for public consultation, the central bank plans to amend several foreign exchange management regulations related to foreign exchange services provided by non-credit institutions.

A key proposal would relax requirements for foreign currency exchange agents and allow a broader network of exchange points at hotels, tourist destinations, shopping malls, supermarkets and other venues serving large numbers of foreign visitors.

The draft also revises regulations governing agencies that exchange currencies of countries sharing land borders with Vietnam. Under the proposed changes, applications for the issuance, renewal, amendment or extension of operating certificates could be submitted in person, by post or online through the National Public Service Portal.

According to the SBV, the amendments are intended to reduce administrative burdens and compliance costs for businesses while improving access to legal foreign exchange services.

In addition, the draft introduces updated rights and obligations for authorized credit institutions and participating businesses, strengthening the regulatory framework for supervising foreign exchange services provided by non-bank entities while ensuring effective market oversight.

VnEconomy-Tùng Thư

Vietnam raises over $6bln through Government bond auctions in 5M

Sat, 06 Jun 2026 02:00:00 GMT

The figure equivalent to 32% of the annual plan.

The State Treasury raised VND159.2 trillion ($6.05 billion) through Government bond issuance in the first five months of the year, equivalent to 72% of the State Treasury’s second-quarter issuance target and 32% of its annual plan.

The State Treasury mobilized VND33.63 trillion ($1.27 billion) in May alone through 17 bond auctions conducted on the Hanoi Stock Exchange (HNX), according to a news story from the Vietnam News Agency.

Demand remained concentrated in medium- and long-term instruments, with 10-year and five-year bonds accounting for nearly all of the month's issuance. Ten-year bonds made up 54% of total issuance value, raising VND18.25 trillion, while five-year bonds contributed VND15 trillion, or 45% of the total.

During the month, the State Treasury offered bonds with maturities ranging from three to 30 years. Successful bids were recorded for three-, five-, 10-, 15- and 30-year tenors.

Bond yields rose slightly compared with the final auction in April, with winning rates increasing by between 2 and 14 basis points, reflecting continued investor appetite amid evolving market conditions.

VNA-Van Nguyen

Bybit seeks partnership opportunities in Vietnam’s emerging digital asset market

Fri, 05 Jun 2026 06:00:00 GMT

Vietnam earlier issuing a resolution which provides a framework for piloting a digital asset market in the country.

Bybit, one of the world's largest cryptocurrency exchanges headquartered in Dubai, has expressed interest in partnering with Vietnamese organizations as the country moves forward with plans to establish a regulated digital asset market.

At a meeting with Deputy Prime Minister Nguyen Van Thang in Hanoi on June 4, Bybit co-founder and Chief Executive Officer Ben Zhou discussed opportunities for cooperation in developing Vietnam’s digital asset ecosystem.

During the meeting, Deputy Prime Minister Thang highlighted the government's issuance of Resolution No. 05/2025/NQ-CP, which provides a framework for piloting a digital asset market in Vietnam. He noted that while digital assets offer significant growth potential, they also pose risks that require robust oversight to protect investors and prevent money laundering, fraud and other illegal activities.

Mr. Thang said Vietnam welcomes support from reputable international companies with extensive industry experience, particularly in areas such as regulatory development, market supervision, technology infrastructure and workforce training.

The government is also encouraging foreign firms with strong financial and technological capabilities to cooperate with Vietnamese enterprises during the pilot phase. However, participation will be subject to strict criteria covering capital adequacy, technological capacity, system security standards and operational experience.

For his part, Mr. Zhou praised Vietnam’s progress in establishing a legal framework for digital assets and reaffirmed Bybit’s commitment to market transparency and security. He said the company is ready to collaborate with Vietnamese partners and share international expertise in regulatory development and talent training.

Deputy Prime Minister Thang expressed hope that Bybit would become a trusted partner of Vietnamese regulators in building a transparent, efficient and sustainable digital asset market that balances the interests of the state, investors and the broader public.

VnEconomy-Bạch Dương

UOB considers joining Vietnam’s International Financial Center

Fri, 05 Jun 2026 02:30:00 GMT

As part of its expansion plans, UOB will break ground on a new headquarter in Ho Chi Minh City this July. The project is located within the planned Vietnam’s International Financial Center-Ho Chi Minh City zone.

Singapore-based United Overseas Bank (UOB) is exploring the possibility of becoming a member of Vietnam’s International Financial Center (VIFC), underscoring its confidence in Vietnam’s long-term growth prospects, the Government News reported on June 3.

Designed to serve as a gateway between international investors and the Vietnamese market, the VIFC is expected to facilitate capital inflows from Singapore and the broader ASEAN region into Vietnam.

As part of its expansion plans, UOB will break ground on a new headquarter in Ho Chi Minh City this July. The project is located within the planned VIFC-Ho Chi Minh City (VIFC-HCMC) zone.

UOB remains the only Singaporean bank operating a wholly owned banking subsidiary in Vietnam. With charter capital of VND10 trillion ($379.76 million), UOB Vietnam is the country's second-largest foreign-owned bank. Its acquisition and integration of Citi Vietnam's retail banking business, completed in July 2025, significantly expanded its customer base, strengthened its market presence, and enhanced its competitiveness.

The bank's foreign direct investment (FDI) advisory team has supported more than 400 companies investing in Vietnam, helping facilitate projects worth around SGD9 billion ($7.04 billion) and contributing to the creation of over 60,000 jobs.

UOB Deputy Chairman and CEO Wee Ee Cheong described Vietnam as a cornerstone of the bank's ASEAN strategy, highlighting the country as one of Southeast Asia's fastest-growing and most resilient economies. He said Vietnam's ongoing economic transformation and increasing integration into regional supply chains are generating new opportunities for investors and businesses.

Vice Chairman of the VIFC-HCMC Executive Board Nguyen Huu Huan said at a recent forum that more than ten international banks and financial institutions have expressed interest in joining the VIFC-HCMC.

Among them are major global players such as JPMorgan Chase, Bank of America, Bank of China, and Mitsubishi UFJ Financial Group. However, regulatory requirements—particularly those related to credit ratings—have so far prevented them from establishing a presence in the VIFC.

According to Government Decree No. 329/2025/ND-CP, which regulates banking operations, foreign exchange management, anti-money laundering, and counter-terrorism financing within the VIFC, foreign institutions seeking licenses to establish wholly foreign-owned banks or branches in the center must meet strict eligibility criteria.

In addition to demonstrating international operating experience, applicants must hold a minimum credit rating of AA- from SP Global Ratings or Fitch Ratings, or Aa3 from Moody's, with a stable or better outlook at the time of application.

A number of financial experts have called for a review of these requirements, arguing that greater flexibility during the center's formative years could help attract a wider range of international financial institutions and accelerate the VIFC's development as a regional financial hub.

VGP-Van Nguyen

Domestic gold prices plunge to lowest level in 6M

Fri, 05 Jun 2026 01:40:00 GMT

Gold prices in Vietnam hitting their lowest level in the past six months on June 4.

Gold prices in Vietnam fell sharply on June 4, hitting their lowest level in six months amid continued market volatility.

SJC-branded gold bars declined by between VND500,000 ($19) per tael compared to the previous day. Buying prices dropped to VND153.5 million (about $5,836) per tael, while selling prices fell to VND156.5 million (around $5,950) per tael.

A tael is equivalent to 37.5 grams, or roughly 1.2 ounces.

In contrast, global gold prices edged up slightly by more than 0.5% to approximately $4,460.4 per ounce. Despite the uptick in international markets, domestic prices remained significantly higher than global levels, with a gap of about VND13.07 million (roughly $496) per tael.

VnEconomy-Mai Nhi

Vietnam disburses $8.3bln in public investment in 5M

Thu, 04 Jun 2026 07:10:00 GMT

The disbursed amount equal to 21.6% of the annual plan assigned by the Prime Minister.

Vietnam disbursed more than VND219.3 trillion ($8.3 billion) in public investment capital during the first five months of 2026, equivalent to 21.6% of the annual plan assigned by the Prime Minister, according to the Ministry of Finance.

Disbursement from the central budget reached VND70.64 trillion, fulfilling 19.4% of the yearly target, while local-budget disbursement totaled approximately VND148.72 trillion, representing 22.9% of the planned allocation.

Although the disbursement rate remained largely unchanged from the same period last year, the actual amount disbursed increased by nearly VND34.82 trillion.

The figures come as Vietnam implements a record public investment plan for 2026. The National Assembly approved VND1.08 quadrillion ($41.06 billion) in public investment funding for the year, an increase of about VND175 trillion compared with 2025. Of the approved amount, the Prime Minister has allocated VND1.01 quadrillion to ministries, central agencies and local authorities for implementation.

VnEconomy-Hoàng Sơn

PM urges development of flagship products for IFC

Wed, 03 Jun 2026 23:00:00 GMT

Priority will be given to sectors linked to trade and investment to attract development resources, particularly for large-scale infrastructure projects in these regions.

Prime Minister Le Minh Hung chaired a meeting on June 2 regarding the continued deployment of Vietnam's International Financial Center (IFC).

The meeting focused on accelerating specific steps to bring the center into operation as soon as possible.

According to the general orientation, the IFC must be built on a transparent, stable, and competitive legal framework to attract foreign investors. This is seen as a vital channel for mobilizing medium- and long-term capital to serve the country's sustainable economic development goals.

A key task emphasized during the meeting was the development of a comprehensive system of financial products and services, which is considered the foundation for the center’s operational efficiency. With Ho Chi Minh City and Da Nang serving as two vital growth poles, financial products must be closely aligned with trade and investment needs to effectively mobilize resources for key national projects.

The Prime Minister assigned the Ministry of Finance to coordinate with relevant agencies and the two cities to develop a portfolio of flagship products. Priority will be given to sectors linked to trade and investment to attract development resources, particularly for large-scale infrastructure projects in these regions.

In addition to existing regulations, PM Hung requested further research and the introduction of new mechanisms within June to create a breakthrough for the early formation of core financial products. He also stressed the need to establish appropriate inspection and supervision mechanisms to ensure safe and transparent operations.

As the IFC begins to take shape in the next phase, the Government leader noted that establishing a long-term development strategy is an urgent priority. Relevant agencies have been tasked with researching and proposing policy improvements to create favorable conditions for the center’s growth and its deep integration into the global financial system.

Vneconomy-Hoàng Sơn

Science and technology in need of more financial sources

Wed, 03 Jun 2026 10:00:00 GMT

Identified as key drivers of economic growth, ensuring funding for science, technology, innovation and digital transformation has become imperative in the new era.

Science and technology, innovation, and digital transformation have become key drivers of economic growth in Vietnam over recent years, reinforced through major Party and State policies. These three pillars have not only improved productivity and growth quality but also accelerated the shift toward a more modern and sustainable development model.

To achieve annual double-digit economic growth during the 2026-2030 period, Politburo Resolution No. 57-NQ/TW, issued on December 22, 2024, identified science and technology, innovation, and national digital transformation as the main engines of socio-economic development. The Resolution marks a strategic shift from a growth model dependent on capital and low-cost labor to one driven by productivity, technological advancement, and innovation. This transition hinges on addressing three major challenges: financing, human resources, and institutional reform.

Meanwhile, Politburo Resolution No. 68-NQ/TW, issued on May 4, 2025, positions the private sector as a leading force in advancing science and technology, innovation, and digital transformation. Yet financial constraints remain a key barrier. Small and medium-sized enterprises (SMEs) account for 97 per cent of private businesses in Vietnam, but many face limited financial capacity and poor competitiveness.

In response, the Vietnamese Government has introduced financial policies to support science and technology, innovation, and digital transformation as part of its growth agenda. Funding can be mobilized through three main sources: the State budget, domestic and foreign businesses, and other organizations.

Current state of financial resource mobilization

RD investment

Over recent years, funding for RD in Vietnam has remained relatively limited in scale, though it has shown signs of improvement. According to reports from various organizations and the Ministry of Science and Technology, Vietnam’s RD expenditure stands at just over 0.4 per cent of GDP, or only one-quarter of the 2 per cent target stipulated under the Law on the State Budget.

By comparison, global RD spending stood at 2.62 per cent of GDP in 2021, or more than five-times the level in Vietnam (World Bank, 2021). Relative to regional peers such as Singapore, Thailand, and Malaysia, Vietnam’s RD spending remains low, ranging from one-quarter to one-half of those countries’ levels.

By economic sector, the State sector continues to account for the largest share of RD spending, though its proportion has gradually declined, to 48.94 per cent in 2023. The non-State sector has expanded rapidly and now plays an increasingly important role, accounting for 40.99 per cent in 2023. However, funding mobilized from foreign sources remains modest and has gradually declined as a share of total RD investment over the years.

By funding source, the business sector represents the largest contributor to RD investment, accounting for around 58 per cent of the country’s total RD spending in 2023. However, relative to GDP, business expenditure on RD in Vietnam stood at only 0.2 per cent. Meanwhile, RD expenditure by higher education institutions remains disproportionately low relative to their role in science, technology, innovation, and digital transformation, particularly as much of university research funding still originates from the State budget.

Businesses remain the largest investors in RD, with spending concentrated primarily among domestic private enterprises, followed by State-owned enterprises (SOEs). RD investment by foreign-invested enterprises, however, remains limited.

In terms of funding sources, most RD activities undertaken by businesses are financed internally, with enterprise funding reaching VND24.6 trillion ($946 million), equivalent to 74 per cent of total business RD expenditure.

Financial support uptake

The government has introduced a range of financial support policies for businesses, including incentives for technological innovation, credit support programs, technical consulting, and project implementation assistance. However, according to the National Agency for Science and Technology Information’s enterprise innovation survey, the proportion of businesses receiving support remains modest, primarily through technology innovation programs (23.3 per cent of surveyed firms) and credit support policies (24.1 per cent).

By business size, small enterprises have received more support across all categories than larger firms, while medium-sized enterprises have received comparatively less attention. This suggests that government support policies have, at least initially, focused on smaller businesses.

Significant support for SMEs has come from the SME Development Fund, established in 2019 under Decree No. 39/2019/ND-CP, dated May 10, 2019. The fund provides preferential loans to innovative startups, firms participating in industrial clusters, and businesses integrated into value chains. However, disbursement levels and the value of indirectly-approved loans through commercial banks have steadily declined. Both the number of supported projects and the value of financial assistance fell between 2019 and 2023.

Assessment and policy implications

Progress made and remaining constraints

Vietnam has adopted a policy requiring a minimum of 2 per cent of State budget expenditure, recently increased to 3 per cent, for science and technology research, including both infrastructure investment and recurrent research spending. However, implementation has remained challenging in practice.

Financial policies supporting enterprise RD and science and technology activities have delivered some initial results. A proportion of businesses have accessed government support, including funding for technological innovation, credit programs, technical assistance, and project-based support. These policies have also encouraged firms to allocate resources to RD, making the business sector the largest contributor to national RD spending.

Vietnam has introduced several strategic initiatives aimed at reforming the mobilization and use of resources for RD and innovation, particularly following Politburo Resolution No. 57. However, more concrete implementation policies are needed to translate these strategic priorities into practice.

Despite progress, significant limitations remain in policies designed to mobilize resources for science, technology, and innovation in Vietnam. Total RD expenditure remains low at around 0.5 per cent of GDP, far below levels seen in South Korea, China, Malaysia, and Thailand. Both the scale of RD investment and the balance between public and private funding remain weaker than in many middle-income economies in the region.

The analysis also shows that financing for science, technology, and innovation activities in Vietnam continues to depend heavily on State budget support. Though regulations require at least 2 per cent of total State budget spending to be allocated to RD, this threshold has never been fully met in practice.

Ministry of Finance data (2025) shows that the highest allocation was in 2024, reaching only 1.97 per cent. Limited funding spread across numerous projects has resulted in relatively small average grant sizes. In addition, much public spending on science and technology is channeled through ministries and agencies, generating considerable administrative costs and procedural burdens, despite recent improvements.

Public investment in RD infrastructure also remains limited, with capital expenditure accounting for less than 50 per cent of total public RD spending. As a result, infrastructure for prototyping and scaling new technologies remains underdeveloped, leaving many innovation initiatives stalled at the laboratory stage. This limits researchers’ access to complete innovation cycles, hinders commercialization efforts, and reduces Vietnam’s attractiveness to high-tech projects, which require supporting ecosystems including suppliers, laboratories, and testing facilities (World Bank, 2025). Weak public research infrastructure also limits businesses’ ability to rely on public-sector experimental support for innovation.

Low levels of RD investment from both the public and private sectors have further constrained the development of training and research infrastructure, particularly in high-tech industries. In practice, Vietnam’s private sector has yet to become a major driver of innovation, as many firms continue to rely on imported technologies or incremental improvements rather than original RD outcomes.

Businesses, particularly SMEs, continue to face major barriers in accessing State-backed financial support funds. Loan application procedures remain complex and costly, while interest rates and repayment terms are often viewed as unattractive. Businesses also have limited awareness of State support policies for RD, science and technology, and innovation. At the same time, opportunities for firms to participate in public science and technology projects and programs remain limited.

Tax incentives for innovation have had only modest effects. While businesses do invest in innovation and RD, many fail to formally record these expenditures in ways that qualify for tax incentives. Broader challenges also remain, including governance mechanisms for RD activities and research workforce capacity. Other resource mobilization policies have only recently been introduced and still lack clear implementation guidelines.

Policy recommendations

To strengthen a growth model driven by science and technology, innovation, and digital transformation in Vietnam, stronger policy reforms are needed to mobilize financial resources. Several policy priorities are proposed.

First, establish co-financing mechanisms for business RD, under which the State would fund 30-70 per cent of project costs, with enterprises contributing the remainder. This would help share risks and improve SMEs’ ability to test new technologies.

Second, pilot government procurement or purchasing mechanisms for innovative products developed by businesses, creating market demand for startups. Tax incentives for RD should also be expanded in line with policies that accept higher investment risks in science, technology, innovation, and digital transformation.

Third, simplify and streamline disbursement procedures for SME support funds, while introducing low preferential interest rates of around 2-3 per cent, drawing on the experiences of South Korea and China, and extending loan tenors. The governance of support funds should also shift toward market-based principles.

Fourth, strengthen awareness campaigns and guidance for businesses on tax and financial incentives related to RD, science and technology, and innovation, while simplifying access procedures.

Fifth, introduce stronger support mechanisms to help businesses integrate into global and domestic value chains, enabling access to advanced technologies and resources for RD and innovation. Support should also be expanded for intellectual property registration and the transition to science and technology enterprises, making firms eligible for government financial assistance.

Sixth, reform public sector financial management for science and technology activities by simplifying State budget procedures and placing greater emphasis on accountability for final outcomes, while reducing administrative intervention.

Seventh, strengthen public-private partnership mechanisms in RD and innovation. However, careful attention must be paid to technology selection, as international experience shows that poor choices can lead to wasted resources and missed opportunities.

Eighth, increase State budget investment in technology infrastructure, including both hardware and software systems.

Ninth, invest more heavily in human capital development for RD and innovation.

Tenth, establish stronger mechanisms to promote meaningful public recognition of researchers and research achievements, moving beyond symbolic or purely ceremonial approaches.

(*)Associate Professor Vu Sy Cuong is from the Academy of Finance.

VET-Associate Professor Vu Sy Cuong(*)

Five-month socio-economic performance reviewed

Wed, 03 Jun 2026 08:40:00 GMT

At a Cabinet meeting held on June 3, Prime Minister Le Minh Hung confirmed that favorable conditions for science, technology, innovation and digital transformation will be created to become new drivers of economic growth.

A Cabinet meeting to review the country’s socio-economic performance in the first five months of 2026 and discuss key tasks and solutions for the remainder of the year was held on June 3 morning under the chair of Prime Minister Le Minh Hung.

During the meeting, the Cabinet also reviewed the implementation of the public investment plan, the national target program, and sci-tech, innovation, and digital transformation tasks.

Prime Minister Le Minh Hung tasked ministries and agencies to conduct thorough review of existing shortcomings, obstacles and bottlenecks, particularly in administrative reform and institutional development.

The Prime Minister was quoted by the Government News as saying at the meeting that delays in issuing legal documents, decrees and circulars could slow the institutionalization and implementation of major policies.

He urged ministries and sectors to accelerate the completion of outstanding legal documents and strengthen accountability among officials responsible for legislative and institutional affairs.

Regarding socio-economic development, the Prime Minister confirmed that the country’s macroeconomic stability has been maintained and inflation remains under control over the past five months.

However, he pointed out that growth in several sectors failed to meet expectations, while industrial production, agriculture, trade, services, exports and imports in some areas remain below target.

He requested ministries and agencies to identify the root causes of these shortcomings and propose stronger, more effective policy measures. Based on the meeting's conclusions, the Government will issue a resolution outlining specific tasks and solutions to boost growth in the remaining months of the year.

The Prime Minister also announced that Deputy Prime Ministers will work directly with ministries, localities and sectors to address bottlenecks against production and business activities. Particular focus will be placed on industry, agriculture, exports and key export products showing signs of slowing growth or decline.

Regarding the implementation of Politburo's Resolution No. 57-NQ/TW on science and technology, innovation, and digital transformation, dated December 22, 2024, the Government leader commended the innovative approaches adopted by relevant agencies, particularly the Ministry of Public Security and the Ministry of Science and Technology.

VGP-Van Nguyen

FinTech and Digital Economy Disputes Panel launched to support Vietnam’s International Financial Centre

Sat, 30 May 2026 07:30:00 GMT

An effective dispute resolution system considered a key factor in enhancing the competitiveness of international financial centres.

A new expert council dedicated to FinTech and digital economy disputes was launched in Ho Chi Minh City on May 29, marking a significant step in preparing Vietnam’s legal infrastructure for the operation of Vietnam's International Financial Centre (VIFC).

The Vietnam International Arbitration Centre (VIAC) Panel of Fintech and Digital Economy Dispute Specialists is expected to help VIAC develop specialized dispute resolution frameworks tailored to digital finance, digital assets and other emerging sectors, supporting Vietnam’s ambition to become a regional gateway for international capital flows.

Speaking at the event, Professor Le Hong Hanh, Chairman of VIAC, emphasized that developing the VIFC requires not only modern financial and technological infrastructure but also a transparent legal framework aligned with international standards. He noted that an effective dispute resolution system is a key factor in enhancing the competitiveness of international financial centres.

Mr. Nguyen Khanh Ngoc, President of the Vietnam Lawyers Association, echoed the view, stressing that transparent regulations and efficient dispute settlement mechanisms are essential for strengthening investor confidence and ensuring a sustainable business environment.

The event also witnessed the signing of cooperation agreements between VIAC, the Vietnam Association of Financial Investors, and the Vietnam Blockchain and Digital Assets Association.

VnEconomy-Hồng Vinh

Vietnam and Thailand strengthen cooperation in investment and supply chain linkages

Fri, 29 May 2026 07:20:00 GMT

Vietnam’s Minister of Finance Ngo Van Tuan and Thailand’s Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas agreed to promote not only cooperation but also substantive connectivity between the two economies.

Within the framework of the official state visit to Thailand by General Secretary of the Communist Party of Vietnam Central Committee and President of Vietnam To Lam, Vietnam’s Minister of Finance Ngo Van Tuan on May 28 met with Thailand’s Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas.

During the meeting, the two sides exchanged views on macroeconomic developments, fiscal policy orientation, administrative reforms, public investment, FDI attraction, and bilateral economic cooperation.

Sharing updates on Vietnam’s socio-economic situation, the Vietnamese Finance Minister said Vietnam is accelerating institutional reforms, streamlining its administrative apparatus, and building a more efficient tax system.

Vietnam is also targeting double-digit economic growth in 2026 and the following years, which will require substantial investment resources, the minister said, adding that total social investment is projected to account for around 40 per cent of GDP, while public investment is expected to make up approximately 20–22 per cent of total investment.

The minister noted that Vietnam’s economic scale is now approaching that of Thailand. As both countries are highly open economies attracting strong FDI inflows, energy security plays a critical role in sustaining economic growth.

According to the minister, the two countries have maintained strong and dynamic trade-investment ties. Bilateral trade turnover reached approximately $22.1 billion in 2025.

He noted that while the two countries compete in certain sectors, they also have significant potential for cooperation in agricultural exports, particularly durian and rice. He proposed that the two sides strengthen coordination to better tap export markets.

Regarding investment attraction, the minister said Vietnam is prioritizing the power sector and manufacturing and processing industry, while highly appreciating the presence of many major Thai enterprises in Vietnam.

Thailand currently remains one of Vietnam’s leading foreign investors, with 804 valid projects and total registered FDI exceeding $15.4 billion.

Thailand’s Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas, for his part, shared Thailand’s experience in evaluating public investment projects. According to him, Thailand uses the Economic Internal Rate of Return (EIRR) as a key indicator to assess project effectiveness, rather than relying solely on financial returns or interest rates.

The Thai side also shared its experience in reforming tax incentives to adapt to the global minimum tax (GMT) through the qualified tax credits mechanism, which is currently being incorporated into the country’s legal framework.

In the industrial sector, the Thai Deputy Prime Minister noted that many Japanese and Chinese corporations have established home appliance manufacturing facilities in his country under brands such as Toshiba and Midea. At the same time, Thai enterprises are also supplying components and spare parts for Vietnam’s VinFast.

Thailand’s Deputy Prime Minister and Finance Minister also praised Vietnam’s success in attracting Samsung’s investment in the semiconductor sector and stressed that ASEAN should strengthen supply chain linkages to enhance its position in global value chains.

Concluding the talks, both sides agreed to promote not only cooperation but also substantive connectivity between the two economies in the coming years.

Vneconomy-Phuong Nhi

Vietnam Consumer Finance Brand Health Ranking 2025 unveiled

Fri, 29 May 2026 00:30:00 GMT

Home Credit successfully secured the leading position in the industry with 30.2 points. The remaining names in the Top 5 leading brands were HD SAISON with 24.4 points, FE Credit with 23.8 points, F88 with 23.5 points, and Viettel Money with 23.4 points.

The "Vietnam Consumer Finance Brand Health Rankings 2025" was officially released for the first time by Mibrand Vietnam Joint Stock Company on May 27.

The report was based on a quantitative survey of over 300 randomly selected customers in Hanoi and Ho Chi Minh City conducted in December 2025.

Through the proprietary Brand Beat Score index, the report provides a comprehensive and empirical overview of the market standing of various enterprises. This is considered an important database to help consumer finance brands clearly understand customer expectations and experiences, allowing them to leverage strengths and improve weaknesses to strengthen sustainable relationships with consumers and drive business growth in the new landscape.

According to the 2025 Vietnam Consumer Finance Brand Health Rankings, Home Credit successfully secured the leading position in the industry with 30.2 points. The remaining names in the Top 5 leading brands were HD SAISON with 24.4 points, FE Credit with 23.8 points, F88 with 23.5 points, and Viettel Money with 23.4 points.

Mibrand’s measurement scale indicates that the leading brands currently only reach a Grade B, or "Good" level. The market remains in a state of open competition, and no single brand has yet established a dominant position with a significant lead. The point gap between the top-tier units remains very small, suggesting unpredictable shifts in rankings in the future.

The report also indicates that Vietnam’s consumer finance industry is entering a more professional phase of competition. The race for market share no longer revolves solely around disbursement speed or media coverage but has shifted deeply toward factors such as trust, transparency, app experience, and actual service quality.

When asked about the drivers for choosing products in the future, customers focused strongly on three core factors: simplified procedures (63%), transparency in interest rates and fees (60%), and speed of disbursement (51%).

Vneconomy-Song Hà

Outstanding credit in HCM City and Dong Nai reach $237bln in 4M

Wed, 27 May 2026 23:30:00 GMT

The two key economic hubs accounting for 31.1% of Vietnam’s total outstanding credit.

Combined outstanding credit in Ho Chi Minh City and its neighboring Dong Nai city reached over VND6 trillion (approximately $237 billion) by the end of April 2026, up 3.84% compared to the end of 2025, according to the State Bank of Vietnam’s Regional Branch No.2.

Although the growth rate was slightly below the national average of 4.42%, the two key economic hubs accounted for 31.1% of Vietnam’s total outstanding credit, underscoring their central role in the country’s financial system.

Vietnamese dong (VND) -denominated loans in the two cities continued to dominate lending activity, totaling VND5.7 trillion, or 94.6% of total outstanding credit, marking a 2.92% increase from the end of last year.

Credit allocation during the first four months of 2026 reflected a positive trend, with capital flowing primarily into major service sectors and key productive industries.

The manufacturing and processing sector led growth with a 5.8% increase in credit, followed by agriculture, forestry, and fisheries, which rose 5.4%. Lending to the wholesale and retail trade, including vehicle repair services, expanded by 4.4%.

Meanwhile, credit to the construction sector grew 3.3%, while transportation and warehousing recorded a 3.1% increase. Household-sector lending, covering both production and consumption purposes, rose 2.7%, highlighting continued support for domestic economic activity.

VnEconomy-Minh Huy

Potential of Vietnam’s Fintech sector

Wed, 27 May 2026 09:30:00 GMT

A broad platform has been created for the meaningful development of Vietnam’s fintech sector and its potential role in the region and the world.

The fintech sector has grown rapidly and become a key pillar of the global financial system, encompassing services such as electronic payments, online lending, digital banking, and a wide range of technology-driven financial products.

In Vietnam, the rapid expansion of information technology, coupled with rising smartphone and internet penetration, has created a strong foundation for the sector’s development. Recent moves indicate that Vietnam is gradually positioning itself as an attractive destination on the global fintech map, not only in terms of market potential but also in its ability to connect with international financial institutions and technology partners.

Attracting international attention

In mid-April, the Vietnam International Financial Center in Ho Chi Minh City (VIFC), in collaboration with the London Stock Exchange and HD Bank, officially launched a Fintech Hub in the southern city. The Hub is expected to serve as a testing ground for new financial models under a regulatory sandbox framework, while also acting as a platform to connect banks, investors, and businesses. This milestone therefore represents not only a technical advancement but also a significant step forward in building Ho Chi Minh City’s financial-technology ecosystem, moving toward a development model driven by data, technology, and innovation.

Another notable development was the strategic partnership between the Saigon-Hanoi Commercial Joint Stock Bank (SHB) and China’s Huawei Technologies. The agreement focuses on digital transformation, the development of technology architecture, and the strengthening of system capabilities that are core elements in the banking sector’s digitalization journey.

As competition intensifies and customer expectations continue to rise, such collaborative endeavors between domestic banks and global technology firms are becoming essential, helping to drive meaningful fintech development in Vietnam. Moreover, as the global financial landscape undergoes significant transformation, the ability to effectively connect capital flows, technology, and policy will determine the position of emerging financial centers.

According to research from PS Intelligence, Vietnam’s fintech market in 2025 was valued at $19.8 billion and is projected to grow at a compound annual growth rate (CAGR) of 17.3 per cent during 2026-2032, reaching $60.4 billion by 2032.

The market’s growth trajectory reflects Vietnam’s accelerating digital transformation and the increasing adoption of technology-driven financial services across all segments of the population. The convergence of favorable demographics, rising smartphone penetration, and supportive government policies has positioned Vietnam as one of the most promising fintech markets in Southeast Asia.

This growth is being driven by multiple reinforcing factors: rising smartphone and internet penetration, an expanding digital consumer base, and supportive government policies. At the same time, a large proportion of the population remains unbanked, creating strong demand for digital financial solutions. Meanwhile, e-commerce continues to expand, digital infrastructure is improving, and emerging technologies such as blockchain, AI, and digital payments are gaining traction. Together, these elements are creating a compelling convergence point for global investors and fintech partners.

In this context, expanding international cooperation is not just a strategic choice but a key lever for enhancing the quality of Vietnam’s development. Through such partnerships, Vietnam can access global capital, learn from international best practices, improve transparency, and gradually align with global standards.

A case in point is the UK, which has successfully built one of the world’s leading fintech ecosystems. With London at its core, which is home to a dense network of banks, investment funds, and tech startups, the UK has not only attracted substantial global capital but has also pioneered models such as regulatory sandboxes and open banking. In this context, strengthening cooperation with the UK is seen as a well-aligned and promising direction for Vietnam, offering opportunities to learn from regulatory frameworks, foster innovation ecosystems, and attract high-quality resources to modernize its financial sector.

According to Dame Julia Hoggett, CEO of the London Stock Exchange, Vietnam is emerging as one of Asia’s most dynamic economies, with growing potential to attract global capital. “In particular, progress in upgrading the stock market and improving the investment environment has sent positive signals to international investors, opening up opportunities to attract long-term capital inflows,” she said.

Australia is also emerging as a promising partner in fintech. The country ranks among the world’s leading fintech ecosystems, at sixth globally and second in the Asia-Pacific region, with nearly 900 active fintech companies. Its strong alignment of technology, policy, and innovation makes Australia a suitable partner for Vietnam as it builds a modern and globally-integrated fintech ecosystem.

Ms. Emma McDonald, Senior Trade and Investment Commissioner of the Australian Government to Vietnam and Cambodia, underlined that bilateral programs in fintech and compliance are aimed at fostering direct engagement between businesses in both countries. “We believe these initiatives will create more commercial partnerships between Australia and Vietnam, contributing to the development of a robust, trustworthy, and globally-connected financial ecosystem, one that blends Vietnam’s unique characteristics with Australia’s technological solutions,” she emphasized.

Readiness for collaboration

As financial digitalization accelerates worldwide, proactively preparing for international fintech cooperation is no longer optional but has become a necessity for Vietnam. To achieve this, the country needs to fully leverage its existing advantages while pursuing a well-structured, clearly defined, and consistent fintech development strategy. This involves not only fostering domestic innovation, but also building an attractive environment capable of drawing in global partners, from major technology corporations to international investors and fintech startups.

We believe these initiatives will create more commercial partnerships between Australia and Vietnam, contributing to the development of a robust, trustworthy, and globally-connected financial ecosystem, one that blends Vietnam’s unique characteristics with Australia’s technological solutions.

Ms. Emma McDonald, Senior Trade and Investment Commissioner of the Australian Government to Vietnam and Cambodia

By combining domestic market potential with international expertise, Vietnam can shape a sustainable, transparent, and competitive fintech ecosystem. Ms. McDonald noted that fundamental strengths such as a young population, a stable socio-economic environment, and strong GDP growth continue to reinforce Vietnam’s position as a potential digital hub in the region.

Notably, recent government initiatives, including plans to develop international financial centers and implement regulatory sandboxes in areas such as credit scoring, peer-to-peer lending, and digital assets, are laying critical institutional foundations. These are the “building blocks” that will enable Vietnam not only to keep pace but also to participate more deeply in the global fintech value chain.

“The development of the VIFC clearly reflects the country’s ambition to become a globally-connected financial hub,” Ms. McDonald said. “However, the core of a financial center lies not only in capital or infrastructure but in the ability to build a trusted, data-driven, and inclusive financial ecosystem.”

At the same time, readiness in terms of legal framework, technological infrastructure, and governance capacity will be crucial in building confidence among international partners. A transparent and flexible legal system, while maintaining safety and stability, will enable fintech firms to innovate and scale with confidence. Meanwhile, digital infrastructure, including data systems, payment connectivity, and cybersecurity, must be developed in a synchronized manner to meet global standards.

According to Mr. Rich McClellan, CEO of the VIFC, international investors are shifting their focus. Whereas rapid economic growth was once the primary draw, they are now placing greater emphasis on infrastructure readiness, the reliability of the legal framework, and the ability to ensure smooth and secure capital flows.

This shift implies that Vietnam must move from “potential advantages” to “real, tangible strengths” by enhancing institutional quality and market operations. Once these elements are in place, Vietnam will not only become an attractive destination for capital and technology but also be in a position to help shape fintech standards in the region.

VET- Phuong Nhi

Structural leap for SME access to credit

Wed, 27 May 2026 03:00:00 GMT

Experts and industry leaders tell Vietnam Economic Times / VnEconomy how data-driven banking and digital platforms can improve SMEs’ access to finance and accelerate Vietnam’s shift toward a more connected, resilient digital economy.

Professor Hoang Van Cuong, Vice President, Vietnam Economic Association

Small and medium-sized enterprises (SMEs) have limited financial resources, so they rely heavily on labor to sustain operations. This explains why they tend to remain small, struggle to scale, and find it difficult to grow into large enterprises. External support is also limited and insufficient to drive growth, leaving many enterprises fragmented over long periods.

Regarding SME access to credit, five key constraints can be identified. The first is collateral requirements, which are almost mandatory in traditional lending. SMEs typically lack high-value assets, often renting premises and using low-value equipment, putting them at a disadvantage compared to larger firms.

The second is limited transparency. Large enterprises usually have well-established accounting systems, audited financial statements, and strong credibility with banks. In contrast, many SMEs lack structured governance, and some even lack proper accounting functions. Incomplete financial data and limited track records make it difficult for banks to assess performance and risk.

The third is difficulty in proving cash flow. In the absence of collateral, banks may lend based on cash flow, but SMEs often lack clear input-output contracts and stable revenue streams, making any credit assessment challenging.

The fourth is higher risk. Due to limited management capacity, many SMEs operate with one person handling multiple roles, without professional risk control systems. This increases perceived risk and makes lenders more cautious.

The fifth is cost efficiency for banks. The process of appraisal, monitoring, and debt recovery for small loans is nearly the same as for large loans, while returns are significantly lower. This reduces banks’ appetite for SME lending under traditional models.

It is also important to note that banks must ensure the safety of the financial system. Lending capital largely comes from public deposits, so capital preservation is critical. International standards such as Basel require strict risk controls, making it difficult to relax credit conditions. These “one-size-fits-all” criteria - collateral, transparency, and risk management - unintentionally favor large enterprises and disadvantage SMEs.

Improving access to finance requires adjustments on both sides. Banks need more flexible lending approaches tailored to SMEs, while these businesses must enhance governance, improve transparency, and standardize operations.

In the long term, a shift from collateral-based lending to data- and cash flow-based lending is inevitable. With fintech support, banks can leverage diverse data sources, such as transactions, taxes, and supply chains, to assess businesses more comprehensively. This allows more flexible financing, even at the level of individual transactions, rather than large, complex loans. However, SMEs must also accelerate digital transformation to ensure data transparency and connectivity.

Credit guarantee funds are another important tool. They act as intermediaries to reduce risk for banks and enable firms without collateral to access funding. In principle, these funds commit to repayment in case of default, strengthening lender confidence.

However, their effectiveness remains below expectations. Limited capital restricts their ability to provide guarantees, and their administrative, non-market-oriented operations reduce flexibility and responsiveness.

Therefore, financial capacity must be strengthened, operational mechanisms modernized, and funding sources diversified, mobilizing private capital and applying tools such as re-guarantees and risk-sharing. Only then can guarantee funds become effective leverage for SME financing.

Ultimately, improving SME credit access requires a coordinated approach: reforming lending methods, accelerating digital transformation, strengthening legal frameworks, and enhancing support mechanisms.

* * *

Mr. Truong Cong Loc, CEO of the Data Streams Asia Co.

While the banking sector once focused on computerization, the current priority is comprehensive digitalization. At a higher level, “digital-creating banking” goes beyond digitizing operations to generate new value by connecting with other sectors to form ecosystems. This evolution can be seen in three stages: traditional banking, digital banking, and digital-creating banking.

Vietnam’s banking system is still transitioning toward this model, but progress is uneven. Differences exist in technology platforms, awareness, service capability, and value creation.

The legal and policy framework is still evolving, aiming to establish common standards aligned with market development. Open banking is a key example, requiring institutions to share data with partners and third parties to develop services. In this context, banks have proactively developed their own standards and solutions, highlighting the need for greater coordination and standardization, especially in technology and security.

Assessing which models can truly “create value” in Vietnam remains challenging due to incomplete and inconsistent data. As a result, banks’ transformation capacity depends largely on internal capabilities, particularly technology platforms and implementation capacity.

In reality, many banks still operate on legacy core banking systems deployed years ago, requiring structured upgrade roadmaps. Beyond technology, the complexity of setting priorities and implementation strategies also contributes to slow and uneven transformation.

The “leapfrogging” approach in digital transformation can shorten development timelines but carries risks if key learning stages are skipped, potentially leading to system design gaps and weaker risk control.

While it is widely acknowledged that data is foundational and requires a comprehensive governance strategy, such statements are often too general. South Korea’s MyData model offers a more practical approach, organizing data ecosystems around specific use cases with clearly defined roles and responsibilities from the outset.

In this model, data sharing is based on mandatory licensing, standardized APIs (Application Programming Interfaces), and explicit user consent. Roles, such as data subjects, providers, MyData operators, processors, and third parties, are clearly defined and may vary depending on use cases. Data Protection Impact Assessments (DPIAs) and Data Processing Agreements (DPAs) are applied to each data flow to manage risks and clarify accountability. This approach shows that data governance is no longer a broad strategic concept but an operational capability tied directly to products, partners, and specific use cases.

* * *

Dr. To Hoai Nam, Standing Vice Chairman and General Secretary of the Vietnam Association of Small and Medium Enterprises

The main bottlenecks in small and medium-sized enterprises (SMEs)’ access to credit lie in three areas. First, collateral: SMEs, especially in manufacturing, have assets but these are often in the form of leased facilities, machinery, inventory, orders, or cash flows. While economically-valuable, they do not meet banks’ traditional preference for tangible, legally-clear collateral. The issue is not a lack of assets, but how they are recognized and valued.

Second, financial transparency. Many SMEs, often family-run, maintain accounting systems primarily for tax purposes rather than for governance or lending requirements. This creates a gap between bank data standards and what SMEs can realistically provide, complicating credit appraisal.

Third, risk assessment. SMEs are highly flexible, with fast capital turnover, but credit evaluations still rely heavily on static financial statements and historical data. This can underestimate their operational efficiency and business viability.

Overall, while credit standards are sound in principle, they are not fully suited to SME realities, helping explain persistent financing constraints. In addition, risk perception plays a role. Despite similar processing costs to large corporate loans, banks remain more cautious toward SMEs due to perceived higher risk, even though data does not necessarily show higher non-performing loan rates.

While SMEs are often seen as slow to adapt, both banks and businesses need to change - though banks, with greater resources and technological capacity, are better placed to lead and should take a more proactive role.

At the same time, SMEs must improve governance, transparency, and financial standards. While many are making progress, transformation remains costly and slow, particularly for small, family-run firms with limited systems and resources.

As a result, SME reform cannot rely on individual effort alone. A coordinated support ecosystem, spanning digital tools, data infrastructure, and compliance support, is essential to enable meaningful and sustainable change.

SME support funds have fallen short of expectations due to limited resources, weak coordination with banks, complex procedures, and low trust among stakeholders. As a result, the main bottleneck is not funding, but the lack of an effective operating mechanism, highlighting the need for meaningful reform.

Improving SME access to finance requires shifting from collateral-based lending to cash flow and data-driven assessment, alongside legal reforms to better align with SME realities. A coordinated support ecosystem, centered on shared data, and more effective credit guarantee mechanisms are also essential. Equally important is a shift toward data-based risk evaluation, which can better reflect SMEs’ strengths and unlock both greater access to capital and new growth opportunities for the banking system.

* * *

Associate Professor Dang Ngoc Duc, Director of the Institute of Financial Technology, Dai Nam University

In recent years, digital technology’s advances have driven transformation in the banking sector. In this context, “digital-creating banking” represents a more advanced stage than digital banking. While digital banking focuses on digitizing products and optimizing customer experience, this model expands into a more comprehensive role.

Banks not only provide services but actively support business development by building digital ecosystems, leveraging data, and offering decision-making tools.

With big data systems and integrated technology platforms, banks can help businesses access market insights, customers, partners, and investment opportunities more effectively, enhancing service quality, reducing risk, and promoting growth.

Structurally, this model rests on three key platforms. First, the banking platform acts as a central hub connecting services and data, enabling businesses to access a full suite of tools beyond credit and payments, including market and customer intelligence. Second, open banking combined with APIs (Application Programming Interfaces) allows data sharing between banks, businesses, and fintech firms. Third, integrated applications (super apps) and embedded finance enable financial services to be seamlessly integrated into business platforms, improving user experience and reducing costs.

However, implementing this model in Vietnam faces several challenges. Technologically, it requires advanced infrastructure and strict standards for data security and safety, which are not yet consistently applied.

Human capital is another barrier. Banks need personnel who understand both technology and finance and can act as advisors to businesses, requiring a shift in mindset and organizational culture.

The legal framework also lags behind. Issues such as data sharing, privacy protection, and the boundary between “support” and “intervention” remain unclear, slowing cooperation and creating legal risks.

For businesses, this model offers tangible benefits. Access to finance improves through data-based assessment rather than reliance on collateral. Continuous, multi-dimensional data enables more accurate evaluations.

Businesses also benefit from data ecosystems and networks, helping them find partners, expand collaboration, and improve efficiency. Banks can support cash flow management, optimize investment portfolios, and guide long-term strategies.

However, participation requires certain conditions. Many small and medium-sized enterprises (SMEs) lack the resources, governance capacity, and technological readiness needed. Since the model depends on data and system connectivity, enterprises must have digital infrastructure, digitized data, and the ability to share information.

Applying all these standards at once may create barriers. A more flexible approach, starting with pilot groups and scaling gradually, is needed.

As Vietnam advances digital transformation, developing a policy framework for this model is essential. This includes controlled sandbox mechanisms, digital talent development, infrastructure investment, and common standards for connectivity.

The State should play a facilitating role by building shared infrastructure and enabling businesses, especially micro and small enterprises, to integrate into digital ecosystems.

* * *

Mr. Tran Quoc Chinh, Vice President of the CMC Corporation, CEO of CMC Cyber Security

In practice, the concepts of “digital banking” and “digital-creating banking” are not just different terms, they reflect two fundamentally different stages of banking system development. Digital banking, in its common understanding, involves applying technology to digitize traditional products, services, and operational processes. In this model, banks primarily act as financial service providers, offering credit, payments, and digital utilities to individuals and businesses.

By contrast, digital-creating banking represents a structural leap forward. Banks move beyond service provision to deeply leveraging data and technology to build open platforms. On these platforms, businesses, partners, and fintech firms can connect, interact, and participate in a shared ecosystem. Banks thus become an integral part of the value chain, directly contributing to value creation for businesses rather than merely supporting from the outside. Vietnam is currently at the transition point from digital banking to digital-creating banking.

Some financial institutions have begun developing “platform banking” models, integrating banking systems with enterprise management systems such as ERP (Enterprise Resource Planning) via APIs (Application Programming Interfaces). However, the distinction between the two models lies not in technology but in the extent of the bank’s involvement in core business activities, especially in providing data and supporting decision-making. Deeper involvement can generate significant value, but also introduces risks, particularly as the boundary between “support” and “intervention” becomes blurred.

To manage these risks, several foundational principles must be established. First, data ownership must remain with the enterprise. Banks can provide infrastructure, tools, and analytics but should not replace decision-making. Second, transparency in data use must be ensured, including scope of sharing, purpose, and accountability in case of incidents. Third, security must be a prerequisite, as even a minor vulnerability in a connected ecosystem can lead to widespread risks.

From a technology enterprise perspective, the biggest challenge today is not technology itself, but trust. Both banks and businesses remain cautious about sharing data due to concerns over security and legal liability, limiting the depth of integration and data utilization. Technical standardization, especially for APIs, is another significant bottleneck. The lack of common standards means each bank develops its own system, forcing businesses to invest heavily in separate integrations, which is particularly burdensome for small and medium-sized enterprises (SMEs).

In addition, the cybersecurity capacity of many organizations has not kept pace with ecosystem expansion, leading to caution or even delays in adopting new models. Businesses must also strengthen their own data governance, cybersecurity capabilities, and compliance with information security standards. This is essential to building mutual trust; the core of any data-driven collaboration model.

From a legal standpoint, completing the regulatory framework is urgent. Clear rules on data sharing, ownership, and responsibilities must be established to build trust within the ecosystem.

At the same time, common standards for Open APIs are needed to ensure consistency and scalability, with coordination led by regulators rather than fragmented development by individual institutions. Third-party risk management must also be strengthened through monitoring and security assessment mechanisms.

Finally, cybersecurity and data protection must be central. Organizations should implement real-time monitoring systems to detect and respond to incidents promptly, and adopt a “security by design” approach. Retrofitting security after deployment is both inefficient and costly, and introduces significant restructuring risks.

* * *

Mr. Le Hai Doan, Director, 3T Accounting Software

Stricter tax authority management of input and output invoices, along with the rollout of e-invoicing and tighter control over invoice trading, has significantly improved transparency among small and medium-sized enterprises (SMEs).

Previously, the existence of multiple accounting systems reduced financial reliability, while oversight focused mainly on output invoices, making it difficult to detect discrepancies in inputs.

With improved transparency, banks’ appraisal costs have declined, creating conditions to expand credit to SMEs. In this context, fintech platforms act as intermediaries, providing data infrastructure that helps businesses declare, account, and comply more effectively, while optimizing operating costs. For banks, this provides structured data, improving credit assessment, shortening appraisal processes, and creating room to lower lending rates.

Through accounting software, all documents, legal records, and contracts are digitized and centrally stored. Businesses retain full control over data sharing, and can provide complete datasets or selective access based on bank requirements. However, selective sharing may increase time costs due to the volume of documents.

At the platform level, the system acts as a digital data repository, enabling storage and connectivity of all financial and accounting information. With business consent, data can be automatically shared with relevant parties, reducing manual processes. Thanks to connectivity and standardization, banks can easily access data and even move toward automated appraisal processes, including AI applications.

For example, with inventory data, the system can instantly identify origin, invoices, and payment status, enhancing reliability when used as a basis for credit decisions. For businesses, digitizing documents combined with outsourced accounting services simplifies operations, allowing them to focus resources on core business activities.

VET-

Risky business for SMEs

Tue, 26 May 2026 10:00:00 GMT

The attitude among banks toward SMEs seeking financing may eventually be addressed by digital transformation and better-quality data.

Politburo Resolution No. 68-NQ/TW underscores the pivotal role of Vietnam’s private sector, with small and medium-sized enterprises (SMEs) as its backbone. Yet amid ongoing economic volatility, SMEs’ financial health remains highly vulnerable, and business risks are rising. An uncertain business environment risks reinforcing longstanding barriers that have persisted for decades and constrained SMEs’ access to capital.

A 2025 report on SMEs’ credit outlook from FiinGroup showed that these enterprises account for roughly 95 per cent of the total in Vietnam, yet contribute less than 20 per cent of revenue and under 10 per cent of total import-export turnover. One of the core factors is limited access to financing. Only 9.3 per cent of SMEs can obtain bank loans, compared with 56.1 per cent of large enterprises. This significant gap highlights a clear “financing gap,” constraining SMEs’ ability to sustain operations and scale up.

“Blind spot” in risk assessment

In a market economy, banks operate as highly-leveraged institutions, with most assets funded by deposits from individuals and businesses rather than equity. As such, risk control in lending is not optional, it is mandatory. This dynamic has created a longstanding dilemma: SMEs lack capital and struggle to access credit, while banks tend to restrict lending to them or charge higher interest rates.

The FiinGroup analysis indicates that around 60 per cent of large enterprises fall into low credit-risk categories, whereas more than 70 per cent of SMEs are classified as medium to high-risk. In other words, the smaller the business, the higher the probability of financial distress, including default risk. This helps explain banks’ more cautious stance toward SME lending.

Importantly, this is not unique to Vietnam. Globally, the SME financing gap remains substantial. According to the “Boosting SME Finance for Growth” report from the World Bank in 2024, the financing gap for micro, small, and medium-sized enterprises (MSMEs) in developing economies is estimated at about 19 per cent of GDP, or roughly $5.7 trillion. Analysts attribute this gap primarily to two factors: information asymmetry and high transaction costs.

Information asymmetry arises when borrowers have better knowledge of their business conditions than lenders. In Vietnam, this gap is particularly pronounced among SMEs, where financial statements are often unstandardized, unaudited, and in some cases involve dual accounting systems, as flagged by tax authorities.

As a result, banks struggle to accurately assess cash flows, stability, and risk levels, leading them to adopt safer approaches: rejecting loans, requiring more collateral, or charging higher interest rates to compensate for perceived risks. Transaction costs are also higher for SME lending, partly due to smaller deal sizes.

A representative from a “Big 4” bank in Vietnam explained that processing a VND1 billion ($38,460) SME loan can require nearly the same resources and time as a VND100 billion ($3.85 million) loan to a large enterprise. The lending process, including document collection, financial assessment, cash flow analysis, collateral checks, credit approval, disbursement, monitoring, and risk handling, remains largely identical regardless of loan size. When these costs are spread across smaller loans, they become disproportionately high, making SMEs less attractive in terms of return per underwriting hour or per credit file.

“Maturity trap” of preferential credit

Analysts argue that simply expanding credit by injecting more capital is unlikely to resolve the SME financing gap at its root. The World Bank warned that providing concessional financing to SMEs, under conditions more favorable than the market, could weaken the role of private financial institutions and hinder long-term financial market development.

The core issue is that such policies may distort risk pricing signals. When the cost of capital no longer reflects actual risk levels, both borrowers and lenders may develop misaligned incentives: businesses have less motivation to improve financial transparency, while lenders may rely on government support rather than strengthening risk assessment capabilities. The result is not a corrected market failure, but a prolonged state of inefficiency.

Experts suggest that policy focus should shift from credit expansion to improving the foundational conditions of the financial market. A key priority is developing credit information infrastructure to reduce information asymmetry, the primary barrier in SME lending. Enhancing data collection, sharing, and standardization would enable financial institutions to “price risk more accurately rather than avoid it.”

Within this context, digital banking is emerging as a critical tool to leverage and operationalize data systems. By digitizing processes and applying data-driven credit scoring, banks can significantly reduce appraisal costs, thereby expanding access to SME financing.

Automation, digital documentation, and data-based credit scoring can lower the cost of underwriting and managing small-ticket loans that are otherwise economically inefficient. In theory, this allows banks to shift from a “selective low-risk client” model to broader service coverage at lower cost.

However, many experts caution that digital transformation alone addresses only the surface of the problem without a robust data foundation. The real bottleneck lies in data quality. If input data fail to accurately reflect business realities - lacking completeness, standardization, or timeliness - digitalization may speed up processes without improving credit decisions. This increases model risk and ultimately forces banks back to conservative lending practices.

Therefore, the true value of digital banking lies not in process digitization, but in building and leveraging a data ecosystem that is “accurate, sufficient, clean, and live.” Only then can transaction costs be genuinely reduced and SME credit expanded sustainably.

At the same time, analysts emphasize the need to strengthen the legal framework, particularly regulations on collateral and insolvency mechanisms, to enhance contract enforceability and minimize losses when risks materialize.

Overall, around 65 per cent of SMEs have been in operation for more than five years. However, among those still unable to access financing, as many as 40 per cent fall into this segment, having operated for over five years and carrying medium to low risk. This is considered a pool of potential clients that banks could target.

Therefore, digitalizing SME lending, combined with data and analytics, is key to shortening approval times, improving the accuracy of credit scoring, strengthening early risk detection, and expanding access to financing for this potential customer segment.

Mr. Nguyen Van Nam, Director of the Business Information Division, FiinGroup

VET-Phan Linh

Vietnam's MoF and Japan's JICA strengthen ODA cooperation and new strategic projects

Mon, 25 May 2026 10:30:00 GMT

Deputy Minister of Finance Tran Quoc Phuong noted that his ministry would continue to closely coordinate with JICA to concretize cooperation contents, thereby contributing to Vietnam’s socio-economic development.

Deputy Minister of Finance Tran Quoc Phuong held a meeting with Mr. Hayakawa Yuho, Vice President of the Japan International Cooperation Agency (JICA), in Hanoi on May 25.

At the meeting, Deputy Minister Tran Quoc Phuong noted that cooperation between Vietnam and Japan has developed strongly in recent years, particularly following high-level visits by leaders of the two countries. Japan remains one of Vietnam’s leading economic partners, ranking first in ODA provision and labor cooperation, third in investment, and fourth in trade.

According to the Foreign Investment Agency under Vietnam’s Ministry of Finance, as of the end of April 2026, Japanese investors are operating 5,775 projects in Vietnam with total registered investment capital exceeding $79.29 billion, making Japan the third-largest investor among countries and territories investing in Vietnam.

In particular, the Deputy Minister highlighted that during fiscal year 2025, the two sides signed three loan agreements worth nearly JPY90 billion in total (more than $566.22 million). Vietnam’s MoF highly appreciated JICA’s close and effective coordination, which played an important role in the successful conclusion of these agreements.

Referring to recent high-level cooperation outcomes, the Deputy Minister also said that during Japanese Prime Minister Takaichi Sanae’s visit to Vietnam in May, leaders of the two countries agreed to further deepen and enhance the effectiveness of bilateral cooperation, elevating Vietnam–Japan relations to a new height on the basis of harmonized interests and a shared goal of sustainable development.

On this occasion, the Deputy Minister proposed that JICA continue to work closely with the Ministry of Finance and relevant Vietnamese agencies to further promote effective ODA cooperation between the two countries in line with the interests of both sides.

Mr. Hayakawa Yuho, for his part, highly appreciated Vietnam’s socio-economic development achievements in recent years. According to Mr. Hayakawa Yuho, Vietnam’s development trajectory has demonstrated that JICA’s previous cooperation orientations and support programs were appropriate and effective.

On that basis, JICA expressed its desire to continue accompanying and supporting Vietnam in its new development phase through a more strategic and long-term approach.

The two sides also discussed Japanese loan-funded projects expected to be implemented in the coming period, including cooperation orientations and ideas centered on key pillars such as high-quality human resource training; development of supporting industries and strengthening supply chains; support for the startup ecosystem; as well as infrastructure development in Vietnam.

Deputy Minister Tran Quoc Phuong highly valued JICA’s proposals and cooperation orientations, while affirming that the Ministry of Finance would continue to closely coordinate with JICA to concretize cooperation contents, thereby contributing to Vietnam’s socio-economic development in the coming period

vneconomy-Phuong Nhi

Value in partnerships between international capital flows and domestic private sector

Mon, 25 May 2026 08:30:00 GMT

Mr. Brook Taylor, CEO - Asset Management and Executive Director of VinaCapital and CEO of VinaCapital Fund Management, shares his perspective on Vietnam’s investment environment and the role of funds in connecting international capital with the domestic private sector.

Based on your investment experience in Vietnam, what changes in the business environment have enabled investors to move beyond opportunity-seeking and engage more deeply in developing domestic enterprises?

Vietnam has made clear progress in improving its investment environment, enabling investors to shift from being mere capital providers to long-term strategic partners in value creation. The legal framework has become increasingly transparent, stable, and aligned with international practices, significantly reducing compliance costs and legal risks. This has encouraged investors to make longer-term commitments and participate more actively in corporate governance and strategic direction.

Mr. Brook Taylor, CEO - Asset Management and Executive Director of VinaCapital and CEO of VinaCapital Fund Management

At the same time, the equitization process and State divestment, along with the rapid development of the private sector, have created more room for strategic investors to participate in a substantive way. Investors not only bring capital but also contribute technology, management expertise, and operational capabilities.

Combined with improvements in infrastructure and digital transformation, these factors enable investors to work alongside enterprises in restructuring, improving operational efficiency, and upgrading value chains.

In a volatile global context, Vietnam’s political stability remains a key advantage in shaping an investment environment where value is generated not only from capital but from strategic partnerships between investors and Vietnamese enterprises.

How would you assess Vietnam’s shift from attracting capital to creating value, and what signals point to a move toward quality- and innovation-driven advantages?

Vietnam is steadily moving up the global value chain and is no longer merely a low-cost manufacturing base. Investment flows are increasingly directed toward technology, the digital economy, and green growth. At the same time, multinational corporations are expanding their presence into higher value-added activities, such as establishing RD centers or strategic functions in Vietnam.

The quality of human resources continues to improve, driven by greater investment in education, skills training, and digital transformation. The country’s next phase of development is being shaped by deep reforms and long-term vision. Investment attraction policies are also shifting toward prioritizing project quality, environmental standards, technology transfer, and stronger linkages with domestic enterprises, rather than relying solely on cost advantages or tax incentives.

As Vietnam continues to attract FDI and promote the private sector, how can funds like VinaCapital better link international capital and domestic enterprises to enhance investment spillover?

For more than two decades, VinaCapital has played the role of a bridge between international capital flows and Vietnam’s long-term growth opportunities. Today, we focus on forward-looking sectors aligned with policy priorities, including clean energy, high-quality domestic consumption, digital transformation, and logistics.

Beyond providing capital, we position ourselves as a strategic partner to enterprises, supporting improvements in governance, enhancing financial transparency, developing growth strategies, and connecting businesses with international technology and markets. Environmental, social, and governance (ESG) practices and sustainable development are core pillars of this approach, helping Vietnamese enterprises improve operational quality, meet global investor expectations, and integrate more deeply into regional and global value chains.

As Vietnam approaches 40 years of attracting FDI, what key changes have made its market more supporting of long-term, strategic investment decisions?

Vietnam continues to affirm its position as an attractive destination for long-term investment. Legal reforms, notably Politburo Resolution No. 66-NQ/TW [on innovating law-making and law enforcement in response to Vietnam’s development demands in the new era] and amendments to the Law on Investment are bringing the legal framework closer to international practices and improving predictability for investors.

Clear policy signals on innovation and technology-driven growth, particularly through Politburo Resolution No.57-NQ/TW [on science and technology, innovation, and digital transformation], demonstrate Vietnam’s determination to move up the global value chain.

VET-

Essential role of private captal for Vietnam's development

Sat, 23 May 2026 10:00:00 GMT

Not just mobilizing but also fully utilizing private capital will be essential for Vietnam’s ongoing development.

Vietnam has already achieved remarkable success. Over the last three decades, the country has transformed itself into one of Asia’s, and the world’s, most dynamic economies. But the next stage of development will demand better growth: growth that is more productive, more resilient, and more inclusive. Mobilizing private capital is not just about filling a funding gap. It is about upgrading the way the economy works.

Reasons to mobilize private capital

The first reason to mobilize private capital is the sheer scale of what lies ahead. Vietnam faces an estimated $1.5 trillion funding gap over the coming years to support infrastructure development and industrialization. The government’s own estimates indicate that public finances alone cannot carry this burden. If Vietnam relies primarily on State budgets and bank credit, growth will slow and risks will accumulate. Private capital is therefore not optional, it is essential.

Second, private capital brings discipline. Countries that rely more heavily on private and foreign investment tend to allocate resources more efficiently. Vietnam’s localization rate is approximately one-third, meaning the country still has significant work to do in supporting industrialization and building out supply chains. Vietnam’s labor productivity remains roughly half that of Thailand’s, something the International Monetary Fund (IMF) and multiple economists have indicated should be significantly higher. This challenge can be addressed, in part, by domestic and foreign private sector enterprises, which tend to focus on productivity-enhancing investments and projects.

Mr. Brook Taylor, CEO of VinaCapital.

Third, mobilizing capital can help Vietnam accelerate its economic advantage. I wrote a book, “Vietnam: Asia’s Rising Star”, about how Vietnam is following the East Asian development model that created the original Asian Tigers. Economies such as South Korea, Japan, and Taiwan (China) benefited from strong external support and global integration at the right moment in history. In the decades following World War II, the US supported and encouraged economic development in these countries.

Vietnam is also at such a moment, though the dynamic is somewhat different. Today, FDI diversification is replacing direct external support, while supply chain diversification, geopolitical realignment, and strong global investor interest are creating a historic opportunity. Private capital can help Vietnam move faster than public capital alone allows.

Finally, diversifying funding sources increases economic stability. Economies that are overly dependent on bank lending are more vulnerable to interest rate shocks and inflation risks. A diversified system - combining banks, capital markets, long-term institutional investors, and foreign capital - creates resilience.

Such systems allow governments to preserve fiscal capacity and provide a buffer for future economic interventions when necessary. They also allow for better market optimization, enabling governments to steer funding toward priority areas such as housing.

Even governments in advanced economies like Singapore and the US play an active role in the housing sector, alongside private capital, to ensure citizens are better able to afford homes.

How to mobilize

I would like to focus on three areas where policy execution matters most in attracting capital. All of them relate to creating a stable and predictable investment environment.

Creating the conditions

First and foremost is confidence. Investors are willing to accept risk. What they cannot accept is uncertainty. Stable and predictable policy is the foundation of all long-term investment. This means adopting international regulatory best practices, improving transparency, and maintaining consistent enforcement.

The government clearly recognizes this, as reflected in recent reforms, including Politburo Resolution No. 68 supporting private sector development. Steps such as adopting Basel III standards and maintaining prudent loan-to-deposit ratios also enhance financial stability.

Next is ease of doing business. Vietnam has competed successfully with peers such as China in attracting manufacturing investment. But competition is intensifying. Despite considerable progress, many foreign investors still cite difficulties around licensing, land use, and dispute resolution. Maintaining reform momentum in these areas will be critical.

Finally, macro-economic stability is equally important. Inflation control, financial system soundness, and prudent debt management send powerful signals to investors. Vietnam’s continued alignment with global standards, including Basel III for banking and improved loan-to-deposit ratios, reinforces trust in the system. The government has done an excellent job sustaining growth amid global uncertainty.

In short, capital flows where it feels safe, and stays for decades, not just years.

Deepen and professionalize capital markets

The second pillar is capital market development. Vietnam’s overreliance on bank credit constrains growth and increases systemic risk. Deepening capital markets is essential to reducing that risk and unlocking growth.

One key goal should be achieving, and sustaining, an investment-grade sovereign rating. This would send a powerful signal of stability and reliability to global investors, dramatically lowering the cost of capital and opening access to vast pools of global funding. Many pension funds, insurance companies, and long-term asset managers cannot invest in markets below investment grade.

Equally important is the development of private sector pension funds. These funds do more than provide retirement security for citizens. They institutionalize stock and bond markets, provide long-term funding for corporate bonds, and align economic growth with household wealth creation.

Together, deeper financial markets and pension systems reduce dependence on rapid credit growth and improve financial stability.

The newly-launched International Financial Center (IFC) in Vietnam, of which VinaCapital is a founding member, will also play a key role in attracting foreign capital and lowering the cost of debt. Its rapid development reflects the government’s commitment to reform and urgency.

Together with an investment-grade rating, the IFC can help lower Vietnam’s cost of debt and enable the country to compete more effectively with regional peers.

Physical infrastructure development

The third and final pillar I want to highlight is physical infrastructure. We are all aware of the long list of infrastructure projects underway, or soon to begin, including airports, seaports, highways, and railway lines around the country. But infrastructure is not just about building roads and power plants. It is about unlocking productivity.

Vietnam’s logistics costs, as a percentage of GDP, remain high compared to regional peers. Reducing these costs directly improves export competitiveness and domestic efficiency.

Better transport infrastructure allows factories to spread more evenly across the country, supporting regional development, reducing congestion, and tapping into underutilized labor pools. This also connects directly with workforce mobility, housing affordability, and urban planning.

Today, FDI diversification is replacing direct external support, while supply chain diversification, geopolitical realignment, and strong global investor interest are creating a historic opportunity. Private capital can help Vietnam move faster than public capital alone allows.

Energy infrastructure deserves special attention. Reliable, affordable energy is the backbone of industrialization and, increasingly, of a digital future. Given Vietnam’s abundance of renewable energy resources, and in light of changing global dynamics, including developments in the Middle East, the country is uniquely positioned to attract data center investment.

Transit-oriented development (TOD), proper suburban planning, and integrated housing and transport policies will help ensure that growth is sustainable, not just fast.

In short, infrastructure is one of the areas where domestic and foreign private capital can deliver some of the highest economic multipliers, if structured correctly.

The next phase of Vietnam’s development will not be defined by how fast capital comes into the country, but by how wisely it is mobilized.

VET-Brook Taylor

Hai Phong proposes land rent exemptions for high-tech and startup businesses

Thu, 21 May 2026 09:00:00 GMT

If approved, the land rent exemption policy expected to take effect on July 1, 2026.

Authorities of the northern port city of Hai Phong are considering a new policy to exempt land rental fees for high-tech enterprises, small and medium-sized businesses, and innovative startups operating in the city's industrial zones and industrial clusters, as part of efforts to strengthen private-sector growth and attract advanced technology investment.

According to the city’s People’s Committee, the proposed plan would grant eligible businesses a 100% exemption on land rental and sublease fees for five years in industrial parks, industrial clusters, and technology incubators.

The policy would apply to certified high-tech enterprises, small and medium-sized enterprises (SMEs) recognized under Vietnam’s SME Support Law, and innovative startups accredited under the Law on Science, Technology and Innovation.

City authorities said the proposed incentives are intended to improve support mechanisms for the private sector, encourage innovation-driven entrepreneurship, and enhance Hai Phong’s appeal as a destination for high-tech investment.

If approved, the land rent exemption policy is expected to take effect on July 1, 2026.

Currently, Hai Phong has only three certified high-tech enterprises: LG Display Vietnam, LG Electronics Vietnam, and LG Innotek Vietnam.

Data from the city’s Department of Finance show that 865 SMEs are leasing land in industrial parks, while another 282 operate in industrial clusters.

VnEconomy-Nam Khánh

Police smash $45 mln gold smuggling ring

Thu, 21 May 2026 01:00:00 GMT

To evade police detection and tracking, the suspects frequently changed their methods and transportation routes, moving goods through multiple intermediary stages.

The Investigation Police Agency under the Hanoi Public Security Department has announced that it had successfully dismantled a large-scale gold smuggling ring.

The investigation began around October 2025 when Hanoi police detected an operation smuggling exceptionally large quantities of gold from Hong Kong (China) into Vietnam. After approximately six months of surveillance and tracking their methods, law enforcement caught the group red-handed during a raw gold transaction in Bo De Ward, Hanoi.

At the scene, authorities seized 5kg of gold bars and related evidence. Based on collected documents, evidence, and suspect testimonies, investigators identified the ringleader as a Chinese national.

According to the initial investigation, upon receiving orders from customers, the ringleader smuggled gold from Hong Kong into Vietnam by disguising it sophisticatedly within shipments of electronic equipment to evade customs and authorities.

In Vietnam, the ringleader hired Do Minh Duc (born 1988, residing in Bac Ninh province) to serve as the primary reception point. Duc, who had previously studied in China and is fluent in Chinese, acted as an intermediary, organizing the transportation and delivery of gold to five Chinese "satellites" who were renting a house in Bac Ninh.

During questioning, Duc confessed that while he eventually realized the goods were smuggled gold, his greed led him to continue the criminal activity due to the high pay. The ringleader reportedly paid Duc between VND150 million and 200 million ($5,700 - 7,600) per month.

To evade police detection and tracking, the suspects frequently changed their methods and transportation routes, moving goods through multiple intermediary stages. Once a shipment was received, the Chinese group quickly extracted the gold hidden within the electronics, used chemicals to clean it, and then melted and cast it into raw gold bars for delivery to customers in Bac Ninh and Hanoi.

Authorities initially determined that the raw gold was sold on the market for over VND4 billion ($152,000) per kilogram. All proceeds from the sales were transferred to Duc. Duc then used the money to purchase cryptocurrency (USDT) and transferred it to various accounts as directed by the Chinese ringleader to complicate the financial trail for investigators.

According to police statistics, from March 2026 until their arrest, the group had transported and traded approximately 300kg of gold, with an estimated value of VND1.2 trillion ($45.6 million).

The Investigation Police Agency is currently expanding the probe to clarify the roles of all involved parties and handle the case in accordance with the law.

Vneconomy-Đỗ Như

Base salary and pensions to increase from July 1

Mon, 18 May 2026 00:00:00 GMT

The base salary for public employees and armed forces will raise to VND2.53 million ($96.2) per month.

The Government has decided to increase base salary for public employees and armed forces VND2.53 million ($96.2) per month from VND2.34 million ($88.9) from July 1, 2026, according to the Government's latest Decree No. 161/2026/ND-CP.

The base salary will be the basis for calculating monthly salaries for cadres, civil servants, and public employees by multiplying it by their corresponding coefficient.

The Government on May 15 also issued Decree No. 162/2026/ND-CP regarding the adjustment of pensions, social insurance allowances, and monthly allowances. Effective from July 1 this year, monthly pensions and social insurance benefits will increase by 8%.

VnEconomy-Nhật Dương

World Financial Innovation Series (WFIS) 2026 scheduled for May 19-20

Fri, 15 May 2026 07:28:00 GMT

This year’s program will focus on pivotal themes such as cloud-native banking, digital currencies, AI and data-driven personalization of financial services, cybersecurity management, financial inclusion, and the future of customer experience in the banking sector.

The World Financial Innovation Series (WFIS) 2026 is set to take place in Hanoi on May 19 and 20.

The event will gather over 500 delegates and C-suite executives, including CEOs, CIOs, CTOs, heads of digital transformation, risk management leaders, regulators, and senior strategic planners from more than 100 of Vietnam’s leading financial institutions, including banks, insurance companies, digital lenders, and microfinance organizations.

According to the organizers, this year’s program will focus on pivotal themes such as cloud-native banking, digital currencies, AI and data-driven personalization of financial services, cybersecurity management, financial inclusion, and the future of customer experience in the banking sector.

The Vietnam Banks Association (VNBA) will continue its involvement as a supporting partner. Representing banks and credit institutions in Vietnam, the VNBA serves as a vital bridge between policy direction and the practical implementation of digital transformation within the financial industry.

WFIS 2026 has also attracted a significant number of international fintech firms and banking solution providers. The Gold Sponsor group includes nCino, StreamCube, Audax, CleverTap, and WSO2. Additionally, the event will feature companies specializing in digital authentication, cloud-based core banking, open finance APIs, data management, and customer engagement, such as Yubico, Pega, Mambu, Brankas, and Viettel Solutions.

The exhibition area will showcase various tech brands, including Sumsub, Feitian, Wultra, OZ Forensics, ABBYY, Freshworks, and Asseco. These companies represent the cutting-edge technologies that Vietnamese financial institutions will need to implement, integrate, and manage in the coming years.

Vneconomy-B.B

Public investment disbursement remains low

Thu, 14 May 2026 07:10:00 GMT

As of May 7, total public investment disbursement reaching VND153.9 trillion (approximately $5.9 billion), equivalent to 15.2% of the annual plan assigned by the Prime Minister.

Vietnam’s public investment disbursement has remained below target, despite some localities recording strong progress, according to the latest update from the Ministry of Finance.

As of May 7, total public investment disbursement nationwide had reached VND153.9 trillion (approximately $5.9 billion), equivalent to 15.2% of the annual plan assigned by the Prime Minister.

The latest figures reveal significant disparities in implementation across ministries, central agencies, and local governments. To date, only eight ministries and central agencies, along with 16 localities, have achieved disbursement rates equal to or above the national average.

Among the strongest performers were Hanoi, Hai Phong, Quang Ninh, Thai Nguyen, Ha Tinh, Son La, and Khanh Hoa, which have emerged as bright spots in accelerating public investment deployment.

However, delays remain widespread. The Ministry of Finance identified 27 ministries and central agencies, as well as 18 localities, with disbursement rates below the national average. Notably, 14 units have disbursed less than 1% of their allocated funds after more than four months, reflecting persistent bottlenecks in project preparation, contractor selection, and implementation.

According to the Ministry of Finance, the total State-funded public investment plan for 2026 exceeds VND1 quadrillion (around $38 billion), including more than VND363 trillion from the central budget and over VND650 trillion from local budgets.

VnEconomy-Hoàng Sơn

White Book on Vietnam Taxation 2026 released

Wed, 13 May 2026 09:30:00 GMT

The first publication of its kind offering a comprehensive overview of the country’s tax policies and administration.

The Department of Taxation under the Vietnamese Ministry of Finance officially released the White Book on Vietnam Taxation 2026 on May 12, offering a comprehensive overview of the country’s tax policies and administration, while outlining key achievements, ongoing challenges, and reform priorities for the years ahead.

According to the White Book, the tax sector’s development strategy for 2026–2030 will focus on four main pillars. The first is improving tax institutions and policies to ensure greater consistency, transparency, and alignment with international standards, while adapting to the rapid growth of the digital economy, e-commerce, and cross-border transactions.

The second pillar emphasizes accelerating digital transformation and simplifying administrative procedures to reduce compliance costs for businesses and individuals, while increasing automation in tax management. Third, authorities aim to place taxpayers at the center of reform efforts by enhancing support services and improving the overall tax compliance experience. The final priority is strengthening data-driven governance, expanding risk management capabilities, and intensifying efforts to combat tax evasion, transfer pricing, and fraud.

Alongside the White Book’s launch, the tax authority also introduced new technology solutions, including artificial intelligence tools to assist household businesses with tax declarations and biometric verification systems to enhance security for electronic invoice registration.

Officials said the simultaneous rollout of the White Book and new digital solutions underscores Vietnam’s commitment to modernizing tax administration, improving efficiency, and delivering more transparent, secure, and taxpayer-friendly services.

VnEconomy-Mai Nhi

Vietnam eyes official launch of crypto asset market in Q3 2026

Wed, 13 May 2026 03:00:00 GMT

The market operating under a framework designed to ensure safety and transparency.

Vietnam could officially launch its cryptocurrency and digital asset market as early as the third quarter of 2026, according an announcement by Mr. Nguyen Duc Chi, Deputy Minister of Finance, at the Digital Trust in Finance 2026 forum held on May 12.

Addressing the event, themed “Building Digital Financial Trust in the AI Era,” Mr. Chi highlighted the government’s commitment to advancing the digital economy under the Politburo's Resolution 57-NQ/TW, which outlines strategic breakthroughs in science, technology, innovation, and national digital transformation. The resolution targets a digital economy accounting for at least 30% of GDP by 2030, with 80% of transactions conducted cashlessly and more than 40% of enterprises engaged in innovation activities.

To achieve these goals, the Ministry of Finance has launched several large-scale digital transformation projects aimed at improving services for citizens and businesses. These include information technology systems for digital customs operations, redesigned digital tax administration processes, and modernized state budget management systems.

A key development is the ministry’s coordination with the Ministry of Public Security and the State Bank of Vietnam to approve five companies to provide services for organizing and operating digital asset trading platforms in the country.

“We believe that, as early as the third quarter, Vietnam could witness the first official activities of its crypto asset market, operating under a framework designed to ensure safety and transparency,” Mr. Chi announced.

VnEconomy-Ngô Huyền

Domestic gold prices continue downward trend

Tue, 12 May 2026 00:40:00 GMT

The prices declining sharply on the first transaction of the week.

Gold prices in Vietnam dropped sharply on the first transaction day of the week, following the global downward trend.

Prices of SJC-branded gold bars declined VND1.6 million ($60.8) per tael on May 11 from the previous day to VND165.9 million ($6,307) for selling and VND162.9 million ($6,193) for buying.

A tael is equivalent to 37.5 grams, or roughly 1.2 ounces.

On the global market, gold prices slipped nearly 0.6% to $4,687.5 per ounce. Despite the decline, domestic prices remained significantly higher than international levels, with a gap of about VND15.33 million (approximately $582) per tael.

VnEconomy-Mai Nhi

Vietnam records surprise trade surplus of over $87 mln in second half of April

Sun, 10 May 2026 01:12:00 GMT

Vietnam's total import-export turnover reached approximately $48.56 billion from April 15-30, a decrease of 6.86% compared to the second half of March 2026.

After five consecutive periods of deficit, Vietnam's trade balance reversed to a surplus of $87.69 million in the second half of April 2026.

However, this development primarily reflects a short-term decline in imports, while deficit pressure remains evident when considering the first four months of the year.

According to preliminary reports from Vietnam Customs, in the second half of April 2026, Vietnam's total import-export turnover reached approximately $48.56 billion, a decrease of 6.86% compared to the second half of March 2026.

Despite this, the cumulative total for the first four months of the year reached $345.68 billion, an increase of 24.66% over the same period in 2025. This indicates that the growth trend is being maintained, even with signs of a short-term slowdown.

On the export side, turnover in the second half of April 2026 reached about $24.32 billion, down 6.59% compared to the second half of March. This decline was widespread, concentrated heavily in key commodity groups within the processing and manufacturing sectors.

Specifically, "computers, electronic products, and components"—the category with the highest export value at $6.21 billion—plumpmeted by 16.22%, becoming the primary factor dragging down total turnover. This was followed by "machinery, equipment, tools, and spare parts" at $3.12 billion (down 6.83%) and "phones and components" at $2.39 billion (down 6.81%).

Beyond high-tech sectors, labor-intensive industries also recorded a downward trend. Textiles and garments decreased by 4.7%, reflecting that consumer demand in major markets like the US and the EU has yet to recover stably.

Regarding imports, Vietnam’s import turnover in the second half of April 2026 reached approximately $24.23 billion, a 7.13% decrease compared to the second half of March.

Similar to exports, the import structure remains focused on the processing and manufacturing sectors, particularly high-tech products. The decline in these key groups pulled the overall figures down. The stagnation of export orders has prompted businesses to proactively scale back input imports to control inventory and optimize production costs.

The Foreign Direct Investment (FDI) sector continues to play a dominant role in the import structure, especially in high-tech goods serving export production. During this period, the import turnover of the FDI sector reached nearly $17 billion, down 6.9% from the previous period.

Meanwhile, the domestic business sector recorded import turnover of approximately $7.24 billion, a decrease of 7.65%. This trend reflects a simultaneous decline across both sectors, though the FDI sector's heavy reliance on global supply chains made the impact more pronounced within that group.

Vneconomy-Hoàng Sơn

Finance and beyond support for Vietnam's startups

Sat, 09 May 2026 03:00:00 GMT

The newly-launched Ho Chi Minh City Venture Capital Fund is expected to attract private capital and support innovation and technology startups within the ecosystem in various ways.

Vietnam currently has more than 3,000 active startups, with Ho Chi Minh City accounting for nearly half of the total, mainly concentrated in digital technology, e-commerce, fintech, logistics, and creative services. However, domestic financial institutions dedicated to venture capital remain limited in both scale and number, making it difficult for many promising projects to access funding at the seed and early stages.

In this context, the Ho Chi Minh City Venture Capital Fund was officially launched on April 17. Operating as a joint stock company under the Law on Enterprises, the Fund, formally named the Ho Chi Minh City Venture Capital Investment Fund Joint Stock Company (HCM VIF JSC), is expected to help narrow the existing “funding gap” for startups.

Structured under a public-private partnership (PPP) model, the Fund has initial charter capital of some $20 million, with 40 per cent, or around $8 million, contributed by the city budget as “seed capital” and the remaining 60 per cent, or about $12 million, mobilized from private investors, enterprises, and financial institutions. This structure not only provides financial resources but also sends a strong market signal, helping catalyze broader participation from both domestic and international capital while promoting a market-oriented investment approach with controlled risk-taking.

Ripe moment

According to Mr. Lam Dinh Thang, Director of the Ho Chi Minh City Department of Science and Technology, the Fund is designed as a strategic policy tool to advance the city’s innovation ecosystem, while investors contributing capital expressed expectations that it will go beyond financing to become a platform connecting market access, infrastructure, and operational capabilities.

Mr. Thang said the establishment of the city’s Fund is a concrete step toward implementing two major policy directions of the Party and the State on promoting science, technology, innovation, and digital transformation: Politburo Resolution No. 57-NQ/TW, dated December 22, 2024, and National Assembly Resolution No. 98/2023/QH15, dated June 24, 2023, on piloting specific mechanisms and policies for the development of Ho Chi Minh City.

The Fund’s establishment comes at a time when the city’s innovation startup ecosystem is expanding rapidly, driving increasing demand for suitable financing, particularly at the early stage. Against this backdrop, the city has chosen a market-oriented venture capital model with controlled risk-taking to expand access to funding and diversify financial instruments for innovative startups.

One notable feature is the introduction of a “controlled risk-taking” framework for State capital. Instead of requiring capital preservation for each individual project, investment performance will be assessed across the entire portfolio over an investment cycle, with total losses capped at 50 per cent of the State capital portion. In parallel, a liability waiver mechanism is applied to authorized representatives and decision-makers who fully comply with prescribed procedures, thereby helping to remove longstanding risk aversion within the public sector.

Beyond capital provision, the Fund is also expected to promote the “quadruple helix” collaborative model between the government, universities and research institutions, enterprises, and the broader community. This approach aims to strengthen links between research, training, production, and the market, thereby enhancing the commercialization of innovation outcomes.

“The timing is ripe for the city to implement this model, as institutional, market, and ecosystem conditions have largely converged,” Mr. Thang emphasized. “In particular, the strong attention and decisive direction from central leadership, especially Party General Secretary To Lam, along with close guidance from Ho Chi Minh City Party Committee leaders, have created significant momentum and confidence for the establishment of the Fund.”

Its launch therefore represents not only a financial initiative but also a significant milestone in the development of Ho Chi Minh City’s innovation ecosystem, reinforcing its pioneering role nationwide.

Investor confidence

From the perspective of private investors, participation in the Ho Chi Minh City Venture Capital Fund reflects not only financial commitment but also long-term confidence in Vietnam’s innovation trajectory.

For Mr. Jesse Choi, CEO of Sunwah Innovations, joining the Fund is seen as a natural extension of the group’s ecosystem-building efforts in Vietnam. The move goes beyond capital deployment, he said, bringing with it regional networks, cross-border collaboration, and hands-on experience in nurturing startups. He noted that the PPP model, with 60 per cent of capital coming from the private sector, sends a strong signal of market confidence while ensuring investment discipline and flexibility.

Similarly, Mr. Brook Taylor, CEO of Asset Management at VinaCapital, emphasized that the PPP structure strikes a balance between government direction and private-sector efficiency, helping to reduce early-stage risks while improving capital mobilization. The Fund’s joint stock company model, he added, marks a clear departure from traditional administrative mechanisms, allowing investment decisions to be driven by market signals and data.

At the same time, both investors highlighted the “controlled risk-taking” mechanism as a critical breakthrough. By allowing a loss threshold of up to 50 per cent of State capital and introducing liability waivers for compliant fund managers, the framework helps remove longstanding barriers to deploying public capital into high-risk startup ventures. This, in turn, creates a more balanced risk-return profile and encourages broader participation from institutional and international investors.

Beyond financing, investors underlined that the Fund’s real value lies in its ability to catalyze a more connected and functional innovation ecosystem. From a market standpoint, Ho Chi Minh City is widely viewed as Vietnam’s digital engine and a leading startup hub in Southeast Asia. Mr. Taylor described its concentration of technology talent and entrepreneurs as a “cluster effect” that minimizes operational friction and enhances the city’s appeal as a gateway to one of the world’s fastest-growing middle-class markets.

Importantly, startups backed by the Fund are expected to gain not only capital but also credibility; an institutional “seal of approval” that helps de-risk opportunities for foreign and private investors and signals that these startups have the resources to navigate operational challenges.

Mr. Choi added that for the Fund to truly play its “seed capital” role and attract more private investment, three key conditions must be met. First, a strong pipeline of startups and technology companies with real growth potential is essential. Second, investors require clear rules, professional management, and an efficient investment process. Third, the Fund needs to deliver early success stories to build market confidence. If achieved, these factors could enable the Fund to crowd in additional private capital and encourage broader participation in Ho Chi Minh City’s innovation ecosystem.

Ms. Truong Cam Thanh, Deputy General Director of VNG, stressed that capital alone is insufficient for startups to scale. Rather, access to infrastructure, market-testing environments, and operational expertise are equally critical. She noted that VNG is exploring ways to support startups in accessing cloud services, eKYC (Electronic Know Your Customer), and payment platforms, which are core technical infrastructure systems that typically require significant time and cost for startups to build in the early stages.

On the market side, VNG can provide opportunities for startups to pilot, test, and validate their products within its ecosystem before scaling up. In terms of operations, the company is also willing to share practical experience accumulated over more than 20 years of building technology products at scale, particularly in international markets. “The biggest bottleneck facing Vietnamese startups is not a lack of ideas, but the challenge of scaling sustainably,” Ms. Thanh pointed out. “In this context, the Fund can play a bridging role by connecting startups with large enterprises, facilitating market access, and strengthening operational capabilities during the early stages of growth.”

Long-term bets

Looking ahead, all three investors agree that priority sectors such as AI, semiconductors, biotechnology, and renewable energy present both significant opportunities and inherent risks. These industries typically require substantial capital, longer investment horizons, and strong alignment across policy, talent, and infrastructure.

Mr. Choi described these sectors as critical to Vietnam’s future competitiveness, noting that while they offer high potential they also carry higher risks and are less attractive from a short-term return perspective. However, he emphasized that these are precisely the areas that will shape Ho Chi Minh City and Vietnam’s long-term economic growth. Drawing comparisons with markets such as China, he pointed out that rapid advancements in these sectors have been driven not only by capital but also by strong and coordinated public sector support in RD funding, talent development, and innovation infrastructure.

For the first time, Ho Chi Minh City is implementing a controlled risk-taking mechanism and providing exemptions from civil and criminal liability for fund managers provided they fully comply with investment processes, even if the investment ultimately fails.

Mr. Brook Taylor, CEO of Asset Management at VinaCapital

In this context, he believes the Fund can play a catalytic role. Beyond providing capital, it can help absorb early-stage risks, support companies through longer development cycles, and attract both private and international investors into sectors traditionally seen as more challenging. Leveraging its networks across Hong Kong (China), China, and Southeast Asia, the Sunwah Group also aims to connect Vietnamese startups with strategic investors, technology partners, and market opportunities. In the near term, the Fund is expected to go beyond being a financing vehicle and become a platform for building market confidence, attracting high-quality projects, and strengthening links between capital, talent, and industry.

Meanwhile, Mr. Taylor cautioned that the lack of “patient capital” remains a structural constraint. Without careful planning, deep-tech startups may run out of funding before reaching commercial inflection points or securing follow-on investment. He also noted that in sectors such as biotechnology and renewable energy, technological advancements often outpace regulatory frameworks, creating the risk of business models being stalled while awaiting policy clarity.

To mitigate such risks, the Fund is expected to adopt a disciplined portfolio management approach, calibrating exposure across sectors and stages. This would allow it to pursue long-term, high-impact investments while maintaining resilience against individual project failures. Mr. Taylor expressed confidence that, given its structured framework and strong collaboration between the public sector and private stakeholders, the Fund could serve as a launchpad for Vietnam’s most ambitious entrepreneurs.

From a practical perspective, Ms. Thanh highlighted that the greatest obstacles facing startups are not ideas but execution. Key challenges include securing an initial customer base large enough to validate business models, sustaining operations during rapid scaling, and accessing a truly supportive ecosystem. In this regard, the Fund can play a bridging role by connecting startups with large enterprises, facilitating access to shared infrastructure and platforms, and strengthening operational capabilities during early growth stages.

Though the startup ecosystem is developing rapidly, we still lack sufficiently strong domestic financial institutions, causing many promising projects to fall into a ‘funding gap’ at the early stage. The venture capital fund was established to help address this issue by evaluating promising projects from the earliest fundraising rounds, a period when risks are highest and access to traditional credit is most difficult.

Mr. Lam Dinh Thang, Director of the Ho Chi Minh City Department of Science and Technology

At a broader level, Ho Chi Minh City aims for the innovation-driven and high-tech economy to contribute around 20-25 per cent of its gross regional domestic product (GRDP) by 2030. According to Mr. Thang, the Fund’s role goes beyond capital deployment, serving as a strategic instrument for the city’s development agenda. It is positioned as one of the key financial tools to help increase the share of the digital economy and high-tech sectors within GRDP.

The Fund provides venture capital alongside governance advisory, market expansion support, and connections to professional investor networks. “In the long term, the Fund is expected to help nurture a new generation of innovative enterprises with strong competitiveness at both national and regional levels,” Mr. Thang said. “This will reinforce Ho Chi Minh City’s pioneering role in the startup ecosystem and contribute meaningfully to increasing the share of the knowledge-based economy within the city’s sustainable GRDP structure.”

Ho Chi Minh City Venture Capital Fund

- Launched on April 17, the Ho Chi Minh City Venture Capital Fund operates as a joint stock company under the Law on Enterprises, with the formal name the Ho Chi Minh City Venture Capital Investment Fund Joint Stock Company (HCM VIF JSC).

- Of its initial charter capital of around $20 million, 40 per cent is contributed by the city budget and the remaining 60 per cent by private investors, enterprises, and financial institutions. The structure is intended to combine public support with market-based governance and investment decisions.

- By 2035, the Fund targets a scale of about $200 million and plans to back 50 to 150 innovative startups in priority sectors such as AI, semiconductor microchips, biotechnology, renewable energy, robotics, and automation. It is also expected to strengthen Ho Chi Minh City’s appeal as a destination for international venture capital.

Amid intensifying regional competition for startup capital, Ho Chi Minh City retains key advantages, including a large market, a young workforce, strong universities and research institutions, and an increasingly active startup community.

Mr. Jesse Choi, CEO of Sunwah Innovations

The biggest bottleneck facing Vietnamese startups is not a lack of ideas, but the challenge of scaling sustainably. In this context, the Fund can play a bridging role by connecting startups with large enterprises, facilitating market access, and strengthening operational capabilities during the early stages of growth.

Mr. Jesse Choi, CEO of Sunwah Innovations

VET-Nhu Quynh

New opportunities for MA in renewable energy

Fri, 08 May 2026 10:00:00 GMT

Mr. Giles Cooper, Partner at Allens, Hanoi Branch, tells Vietnam Economic Times / VnEconomy that changes in policy framework will unlock new deal opportunities and structures in renewable energy MA activities in Vietnam.

What are your thoughts on foreign investor appetite for Vietnam’s renewable energy sector at this time?

Foreign investors continue to show a strong appetite for Vietnam’s renewable energy sector, particularly in wind and solar, supported by expectations of improving policy clarity and sustained long-term demand growth. Recent policy developments, especially special mechanisms such as National Assembly Resolutions No. 253 and 254, have been welcomed by the market and contribute to greater confidence around the future pipeline of new projects, particularly as investor selection processes start to gather pace around the country.

Mr. Giles Cooper

From a merger and acquisition (MA) perspective, investors are increasingly focused on operational assets, including projects previously affected by regulatory issues that are now closer to resolution. For international players considering acquiring renewable energy assets, careful assessment of permitting status, planning alignment, grid connection risk, and the treatment of legacy regulatory issues remains critical.

How are reforms such as Decree No. 57/2025 on Direct Power Purchase Agreements (DPPAs) and Decree No. 58/2025 on rooftop solar beginning to impact renewable energy MA deal pipelines or structures for renewable projects in Vietnam?

Investors are increasingly encouraged by Decrees No. 57 and 58, which introduce market-based mechanisms that are well established in developed power markets but still new in Vietnam. These frameworks improve project bankability by allowing generators to better manage electricity price risk, secure long-term offtake, and diversify revenue streams beyond the traditional Vietnam Electricity (EVN)-backed model. On the demand side, large power consumers - particularly manufacturers - are gaining greater flexibility in how they structure electricity procurement, manage power costs, and meet environmental, social, and governance (ESG) and green export requirements for markets such as Europe and the UK.

In the MA context, this is beginning to unlock new deal opportunities and structures, including portfolio transactions for rooftop solar, offtake-backed valuations, and earlier-stage investments tied to corporate Power Purchase Agreements (PPAs). Both regulations are undergoing further tweaks, which we expect will make them increasingly functional. While slow to get moving, we expect to see significant and rapid growth in the near future.

What has stood out for you from your broader work handling many renewable energy MA transactions in Vietnam over recent years?

Onshore wind projects have come back in focus over the past year, driven by both brownfield MA activity and renewed greenfield investment. The revised National Power Development Program VIII (PDP8), adopted under Prime Ministerial Decision No. 768 in April 2025, significantly increased onshore and nearshore wind targets, to 26-38 GW by 2030, up from 21 GW in the original PDP8. This signals continued policy support for wind power, though future development is expected to rely on auction-based tariffs rather than fixed feed-in-tariffs, as previously.

For operational wind asset deals, the key regulatory challenge is not any single legal issue but identifying and prioritizing the risks that truly matter. There is no perfect asset, so it’s essential to assess the exact status of each project through due diligence to identity risks and then allocate and/or mitigate them by way of agreement in the relevant transaction documents. We see legacy issues can arise across issues like capital contribution, land rights, permitting, and project contracts. Successful transactions depend on focusing efforts on material issues, assessing risk in line with market practice, and proposing practical solutions that allow the deal to proceed.

While there is no statutory foreign ownership cap for onshore wind projects, MA transactions remain subject to close regulatory scrutiny, including MA approvals and merger control clearance. As a result, careful structuring, thorough preparation, and realistic timelines are essential.

What are the key lessons from advising on renewable energy MAs in Vietnam recently?

One consistent lesson is the critical importance of due diligence on land, regulatory approvals, and PPAs, among other aspects. These areas often carry complicated and longstanding issues.

Furthermore, the risk profile of issues can develop over time as well as wider policy, political, and enforcement environments evolve. So just because one type of risk was addressed one way in a prior transaction doesn’t necessarily mean it is appropriate or possible to address it in the same way in a subsequent transaction. We work with our clients to focus efforts on identifying and assessing key risks early and efficiently. Once risks are properly understood and assessed as manageable, successful outcomes depend on creative structuring and a high level of trust between the parties to bridge issues and close the transaction.

Looking at 2026 and beyond, how do you anticipate legal and regulatory developments will shape MA activity in Vietnam’s renewable energy market?

2025 was a landmark year for Vietnam’s legal framework, with 86 laws enacted and 374 decrees issued, including amendments or replacements of core statutes such as the Law on Investment, the Law on Enterprises, and the Law on Construction. These reforms have materially reshaped the regulatory landscape for developing new renewable projects, something that could cause a drag on the pace of greenfield investment activity in the first half of 2026 as the market adapts to the new rules.

That said, we have observed clear evidence of more greenfield activity already this year, which is pleasing after a number of years of very slow progress. We may see this gather even more pace if global events threaten the viability of planned new large-scale LNG projects. Meanwhile, we expect MA - especially involving operational projects - to continue to attract strong investor interest.

VET-

South Korea's Bithumb partners with SSI Digital to develop digital asset exchange

Fri, 08 May 2026 09:00:00 GMT

The partnership coming as Vietnam moves forward with plans to pilot a regulated digital asset market.

Bithumb, South Korea’s second-largest cryptocurrency exchange, has entered into a strategic partnership with SSI Digital (SSID), a subsidiary within the ecosystem of SSI Securities Corporation, to support the development and operation of a digital asset exchange in Vietnam.

Although the agreement was signed in Hanoi in early March, it was only officially announced by Bithumb on May 7.

Under the partnership, the two sides will cooperate in several key areas, including the development of exchange technology infrastructure, digital wallet and custody systems, cybersecurity and risk management, legal compliance, and the transfer of operational expertise and know-how. They also plan to jointly develop products and services targeting institutional clients.

Bithumb said it is also considering a strategic investment in an entity designated by SSID, subject to approval from Vietnamese regulators.

As part of the alliance, Bithumb will contribute its experience in operating cryptocurrency exchanges and its cybersecurity capabilities to help establish a secure and stable trading platform aligned with Vietnam’s regulatory framework.

Meanwhile, SSI and SSID are expected to leverage their understanding of the domestic market, established financial network, and relationships with local institutions to advance the project.

The partnership comes as Vietnam moves forward with plans to pilot a regulated digital asset market. Under Government Resolution No. 05/2025/NQ-CP, the pilot program will run for five years. Participating exchange operators must be locally incorporated entities with minimum charter capital of VND10 trillion (approximately $380 million), while foreign ownership must remain below 49%.

VnEconomy-Ngô Huyền

HCMC speeds up disbursement of $5.6 bln in public investment

Thu, 07 May 2026 23:00:00 GMT

The southern city is now working to remove bottlenecks and aims to disburse 100% of the planned capital to propel economic growth.

With a public investment plan of nearly VND148 trillion ($5.6 billion) for 2026, Ho Chi Minh City has already allocated 87.5% of the funds. However, disbursement progress in the first four months has not yet met expectations. The city is now working to remove bottlenecks and aims to disburse 100% of the planned capital to propel economic growth.

The information was revealed at a meeting chaired by the city People’s Committee, Mr. Nguyen Văn Duoc, on May 6, to review the implementation and disbursement of public investment capital for the first four months of 2026 and to discuss the medium-term investment plan for the 2026–2030 period.

According to Deputy Director of the city's Department of Finance, Mr. Mai Ba Truoc, during the first four months of 2026, the city's investment efforts were carried out amidst organizational restructuring and the start of the 2026–2030 medium-term investment cycle. However, thanks to decisive guidance from both central and local authorities, there have been positive shifts that lay an important foundation for the coming months.

Regarding specific results, 36 agencies and project owners achieved or exceeded their set progress targets, helping to pull up the city’s overall disbursement rate.

At the same time, the city has essentially completed the handover and transfer of 3,195 projects following a reorganization of the project management system, ensuring that work continues without interruption. Preparation for new projects is also being fast-tracked to increase implementation volume and disbursement in the following quarters, particularly during the second half of the year.

It is noted that since 2026 is the first year of the 2026–2030 medium-term plan, many projects are still in the preparatory phase, which limited the volume of work accepted and paid for in the first quarter.

Furthermore, persistent obstacles such as site clearance, technical infrastructure issues, legal hurdles, contract disputes, fluctuating material prices, and the lack of standardized unit prices for night-time construction continue to affect progress.

Additionally, a review of 46 major projects (each with an assigned budget of VND500 billion ($19 million) showed they account for VND77.855 trillion ($2.96 billion) - representing 60% of the city’s total allocated capital. Most of these projects currently show low disbursement because spending is concentrated in the last six months of the year, following the completion of procedures and official groundbreaking.

Regarding the medium-term investment plan for 2026–2030, the city has proactively coordinated with the Ministry of Finance and central agencies to determine budget balancing capabilities.

Total mobilizable capital is estimated at approximately VND1.145 quadrillion ($43.5 billion) from both central and local budgets. Based on this, the city has reviewed and developed a list of key projects in sectors such as transportation, urban rail (metro), education, healthcare, science and technology, and social welfare to meet socio-economic development goals for the new period.

Vneconomy-Thanh Thủy

Vietnam and India strengthen cooperation across multiple sectors

Thu, 07 May 2026 07:16:24 GMT

During their meeting in New Delhi, Vietnam’s Minister of Finance Ngo Van Tuan and India’s Finance Minister Nirmala Sitharaman agreed to strengthen cooperation in key areas between the two countries in the coming times.

Vietnam's Minister of Finance Ngo Van Tuan had the bilateral talks with India's Minister of Finance Nirmala Sitharaman to discuss the macroeconomic situation, fiscal policy reforms, the promotion of economic and investment cooperation, and the strengthening of financial cooperation between the two countries.

The meeting took place on May 6, in New Delhi, within the framework of the State visit to India by Vietnam's Party General Secretary and State President To Lam.

According to Minister Tuan, India’s development achievements in recent years have provided valuable references and lessons for many developing countries, including Vietnam. For countries with large labor forces such as Vietnam and India, adapting to technological transformation and automation trends will be an important requirement in the coming period.

Regarding bilateral economic and investment cooperation, he noted that the cooperation potential between the two countries remains substantial and has yet to be fully tapped. Although the number of investment projects is relatively large, their average scale remains modest, indicating significant room for both sides to elevate cooperation in a more strategic, long-term, and in-depth manner.

Vietnam expects to expand investment in India, however, the scale of Vietnamese business investment in India remains limited, said Minister Tuan. Therefore, Vietnam proposed that the two sides continue discussions to improve market access conditions and create more favorable conditions for the business communities of both countries.

He expressed his hope that both sides would continue promoting cooperation in a more substantive and effective manner by making full use of existing cooperation mechanisms, enhancing information exchange, sharing experiences and technical support, while also strengthening market connectivity and facilitating trade and investment toward building a transparent, stable, and efficient financial environment.

In addition, the minister proposed that technical-level agencies of both sides study specific solutions to share successful experiences and strengthen capacity in areas where both countries have strengths and priorities, such as tax policy reform, especially for micro, small, and medium-sized enterprises, as well as promoting public investment in ways that improve both scale and efficiency.

India's Minister Sitharaman said she was particularly impressed by Vietnam’s strong interest in and in-depth research on the Indian economy, especially policies related to public investment, tax reform, and support for micro, small, and medium-sized enterprises.

Overview of the bilateral talks between Vietnam’s Minister of Finance Ngo Van Tuan and India’s Finance Minister Nirmala Sitharaman. (Photo courtesy of Vietnam's Ministry of Finance)

She highly appreciated Vietnam’s development achievements and emphasized that many of Vietnam’s reform orientations are aligned with India’s current development priorities, including institutional reform, improving the business environment, infrastructure development, enhancing the quality of human resources, and controlling inflation while maintaining growth.

Sharing India’s experience in public investment, Minister Sitharaman said that following the Covid-19 pandemic, the Indian Government had chosen public investment as the key driver for economic recovery. According to the minister, infrastructure investment generates strong spillover effects on growth, employment, and the competitiveness of the economy.

Minister Sitharaman noted that India has implemented major reforms to simplify tax procedures, including allowing small businesses to file taxes entirely online without auditor certification, while also applying Goods and Services Tax (GST) registration exemption thresholds for enterprises with low revenue.

India has also accelerated comprehensive digitalization in tax and public financial management under a “faceless” approach, with most declaration, dossier processing, and tax management procedures conducted through digital platforms.

The two ministers also held in-depth discussions on policies supporting micro, small, and medium-sized enterprises (MSMEs).

Two sides also exchanged views on orientations for strengthening economic and financial cooperation in the coming period, focusing on high technology, innovation, digital transformation, clean energy, pharmaceuticals, digital payments, and high-quality human resource training. Both sides agreed to continue promoting information exchange and sharing experiences in tax policy reform, infrastructure development, and improving the efficiency of public investment.

Vneconomy-Phuong Nhi

More than 800 listed companies report 38.2% profit growth in Q1 2026

Wed, 06 May 2026 08:00:00 GMT

Growth continued to be driven by the non-financial sector, which surged by 69.8%, significantly outperforming the Financial sector (+14.4%).

According to statistics from FiinTrade, as of May 4 this year, 803 banks and listed companies—representing approximately 97% of the total market capitalization—have released their Q1 2026 financial statements or preliminary business estimates, with average net profit growth remaining steady, reaching +38.2% year-on-year (YoY).

Growth continued to be driven by the non-financial sector, which surged by 69.8%, significantly outperforming the Financial sector (+14.4%). Notably, the banking sector recorded a growth of only +13.7%—the lowest in several quarters—as it faced pressure from narrowing Net Interest Margins (NIM) and sluggish credit growth.

In terms of market capitalization, mid-cap stocks (VNMID) remained the primary engine of growth with an 82.6% YoY increase, far exceeding large-caps (VN30) at +27.4%, while the small-cap group (VNSML) remained nearly flat (+4.5%).

At the industry level, the profit landscape showed sharp divergence. Growth was concentrated in cyclical sectors such as oil gas, basic resources, retail, food beverage, chemicals, and real estate. In contrast, information technology saw a decline, while sectors such as banking, securities, and construction materials recorded slowing growth momentum.

Notably, the profit structure continues to shift. The banking sector's contribution to total market earnings dropped from 46.3% to 38.1%, while real estate and commodity-related industries increased their share. This reflects the waning leadership role of banks as the market's profit structure leans more toward cyclical industries.

Despite the overall Q1 2026 earnings remaining at a high level, stock price movements have shown a distinct divergence across different sectors.

Vneconomy-Thu Minh

Holistic approach to competitiveness in banking sector

Wed, 06 May 2026 02:30:00 GMT

The elements determining customer preferences in Vietnam’s banking sector have been shifting over time, especially ESG and AI.

Vietnam’s banking sector is entering a new phase of brand competition, where scale alone is no longer enough to secure a leadership position. According to the Vietnam Banking Brand 2025 report from Mibrand Vietnam, the strongest banking brands are increasingly those that can convert operational capability into customer experience while building long-term trust through sustainability and delivering relevance through technology.

The report’s Brand Beat Score (BBS) ranking shows Vietcombank retaining the Number 1 position for a fourth consecutive year, with a score of 34.8. MB followed closely, with 34.2, while BIDV ranked third with 32.5. One of the most notable changes was Agribank’s return to the Top 10 with 20.4 points, highlighting how a legacy State-owned institution can regain momentum through sharper positioning and stronger relevance.

From responsibility to competitiveness

More importantly, the report argues that the gap between leading banks is narrowing. Competitive advantage is no longer determined primarily by branch networks, balance sheet size, or historical presence. Rather, communication consistency, digital experience, personalization, and the ability to create emotional trust now play a much larger role in influencing customer preferences.

This shift is visible across component rankings such as awareness, consideration, usage, brand fondness, willingness to pay more, and referrals. In other words, banking brands are no longer competing only to be known. They are competing to be chosen, used repeatedly, recommended to others, and valued enough for customers to pay a premium. Against that backdrop, environmental, social, and governance (ESG) practices and AI stand out as the two themes most likely to define the next stage of brand leadership in Vietnam’s banking sector.

The report suggests that 2025 marked a turning point for ESG in Vietnam’s banking sector. In earlier years, sustainability initiatives were often associated with philanthropy, community programs, or compliance-focused Corporate Social Responsibility (CSR) reporting. Today, ESG is being embedded more directly into products, risk management, lending decisions, funding strategies, and brand positioning.

According to a PwC Vietnam report in 2025, ESG has evolved from a strategic choice into a business imperative, a shift also reflected in policy as the State Bank of Vietnam (SBV) targeted green credit accounting for 10 per cent of total outstanding loans by 2025.

This transition matters because customers increasingly interpret ESG as a signal of quality, responsibility, and long-term reliability. Rather than seeing sustainability as a side activity, consumers are beginning to connect it with whether a bank is modern, trustworthy, and aligned with future economic priorities.

The Vietnam Banking Brand 2025 report contrasts the “old model” of ESG with the “new model.” Previously, ESG activity was often detached from core business operations and viewed as a branding cost. In the new model, ESG is integrated into financial products such as green credit, sustainability-linked solutions, and carbon-related payment tools. It becomes part of the customer journey and a source of competitive differentiation. Performance is also expected to be measurable through brand metrics and transparent disclosure.

The commercial opportunity is significant. Outstanding green loans reportedly expanded at an average annual rate of 21 per cent from 2017 to 2024; faster than overall credit growth. Meanwhile, the number of green credit institutions rose from 15 in 2017 to 58 in 2025.

Just as important is the reputational dimension. According to the report, 80 per cent of customers prioritize “credibility” when selecting a bank, while 59 per cent prioritize “safety.” These attributes align strongly with the governance pillar of ESG, showing that sustainability is not only about climate finance or social inclusion but also about internal controls, transparency, fraud prevention, and disciplined management.

The environmental pillar, meanwhile, helps banks appear progressive and responsible, particularly through renewable energy financing or green lending products. And the social pillar supports emotional connection through financial inclusion, community support, and fair access. Governance also reinforces trust and premium value perception. Together, these dimensions shape how customers feel about a bank, not just how they assess rates or fees.

Among the most striking examples is Agribank. The bank’s ESG momentum does not come from adopting a fashionable narrative, but from aligning sustainability with its longstanding identity around agriculture, rural communities, and farmers. The report notes that Agribank recorded VND28.783 trillion ($1.11 billion) in outstanding green credit in the second quarter of 2025, alongside large-scale concessional lending packages for individuals and businesses. Agribank re-entered the Top 10 BBS rankings and improved sharply in awareness and consideration. It was also recognized by Viet Research as being among the Top 100 ESG Vietnam Green Enterprises and in the Top 10 ESG Banking Sector 2025.

From operations to brand power

While ESG helps banks earn trust over time, AI helps them express that trust in personalized and continuous ways. The report argues that AI is no longer just an efficiency tool used for back office automation or credit approval. It is becoming a central capability for customer experience management, communication relevance, and brand differentiation.

This is especially important because customer behavior in financial services is becoming more dynamic and context-driven. Traditional segmentation models based on age, income, or static demographics are less effective when customer needs change rapidly depending on life stage, spending patterns, or real-time events. Banks that can interpret signals quickly and respond intelligently are more likely to be selected.

The report identifies a common trait among top-performing banks: they do not simply invest in technology. They convert technology into experiences that customers can feel - safer transactions, faster decisions, more useful offers, and more relevant communication.

MB’s Number 2 overall ranking in the report is linked partly to its use of AI in security and risk prediction. The report highlights features such as app protection and transaction behavior analytics, which appear to strengthen customer perceptions around safety and service quality. MB also ranks strongly in referral and value-for-money metrics, suggesting that AI is not only improving internal processes but influencing real customer behavior - usage, advocacy, and satisfaction.

Meanwhile, Techcombank is presented as a leading case study in AI-driven brand management. The bank reportedly uses Adobe Experience Cloud combined with Personetics to analyze customer data in real time and deliver tailored financial prompts, rewards, and communication.

The report identifies three major roles for AI in this model. First, it enables real-time brand health monitoring by continuously processing signals such as engagement, customer feedback, and channel performance. Second, it deepens customer insight beyond traditional segmentation, using behavior patterns, transaction habits, response timing, and unmet needs. Third, it allows personalized communication at scale - matching message, timing, and offer to the right audience more precisely.

Despite growing AI adoption, the report says no bank has clearly addressed two major customer needs: fraud-alert prevention and highly-effective virtual financial advisory. That creates a strategic opening. A bank that combines real AI capability with strong communication around financial safety or intelligent advisory could establish a distinctive brand position before its competitors do.

The report also suggests that Vietnam’s banking sector is shifting from competition in visibility to competition in trust and relevance. ESG builds long-term brand trust by proving responsibility, discipline, and alignment with sustainable growth, while AI builds brand intelligence by making services more personal, timely, and useful.

For banks, the implication is significant. Future winners may not simply be the largest institutions or the loudest marketers. They are more likely to be those that can combine credible purpose with intelligent execution. In the next chapter of Vietnam’s banking sector, the strongest brands may be those that customers trust the most and those that understand them best.

The [Vietnam Banking Brand 2025] report’s Brand Beat Score (BBS) ranking shows Vietcombank retaining the Number 1 position for a fourth consecutive year, with a score of 34.8. MB followed closely, with 34.2, while BIDV ranked third with 32.5. One of the most notable changes was Agribank’s return to the Top 10 with 20.4 points, highlighting how a legacy State-owned institution can regain momentum through sharper positioning and stronger relevance.

VET-Linh Tong

Domestic gold prices drop to lowest level in four month

Tue, 05 May 2026 10:30:00 GMT

The selling prices of SJC-branded gold bars fell to VND165 million (around $6,273) per tael.

Domestic gold prices on May 5 plunged to theier lowest level in the past four months.

Prices of SJC-branded gold bars dropped by between VND500,000 ($19) and VND1.6 million ($60.8) per tael compared to the previous day. Buying prices fell to VND162 million (about $6,159) per tael, while selling prices declined to VND165 million (around $6,273) per tael.

A tael is equivalent to 37.5 grams, or roughly 1.2 ounces.

In contrast, global gold prices rose slightly by nearly 0.4% to $4,541 per ounce. Despite the uptick in international markets, domestic prices remained significantly higher than global levels, with a gap of about VND19.18 million (roughly $729) per tael.

VnEconomy-Mai Nhi

PM urges synchronized solutions to build growth foundation from start of term

Tue, 05 May 2026 01:08:00 GMT

The Government meeting focused on discussing the socio-economic development situation in April and the first four months of 2026, the progress of public investment allocation and disbursement, the implementation of national target programs, and key tasks for May.

Prime Minister Le Minh Hung chaired the Government’s regular monthly meeting for April 2026 on May 4, the first regular session of the 16th-tenure Government following its consolidation since March this year.

The meeting focused on discussing the socio-economic development situation in April and the first four months of 2026, the progress of public investment allocation and disbursement, the implementation of national target programs, the Government's leadership and management performance, and key tasks for May and the upcoming period.

Stable macro-economy and rebounding growth drivers

According to evaluations at the meeting, immediately following its consolidation, the Government and the Prime Minister promptly updated and supplemented the Action Program to implement the Resolution of the 14th National Party Congress and Conclusion No. 18 of the Party Central Committee's 2nd plenum, regarding plans for socio-economic development, national finance, public debt management, and mid-term public investment for the 2026–2030 period—all aimed at the ambitious goal of achieving "double-digit" growth.

Furthermore, the Government issued eight resolutions focused on cutting, decentralizing, and simplifying administrative procedures and business conditions. Under these resolutions, 184 administrative procedures were abolished, 134 were decentralized to local authorities, 349 were simplified, and 890 business conditions were removed.

Regarding the socio-economic situation, delegates reached a consensus that the macro-economy remains fundamentally stable, inflation is under control, and major economic balances are maintained. The average Consumer Price Index (CPI) for the first four months is estimated to have increased by 3.99%.

Import-export activities maintained positive growth momentum, with total turnover for the four months estimated at $344,2 billion, up 24.2%. Development investment continued to show promising results, with public investment disbursement reaching approximately 14.2% of the yearly plan. Foreign Direct Investment (FDI) attraction saw a sharp increase, with newly registered capital exceeding $18.2 billion (up 32%), while realized FDI reached $7.4 billion (up 9.8%).

In addition to the achievements, the meeting also identified several shortcomings, limitations, and challenges. Notably, macroeconomic management remains under significant pressure, particularly regarding interest rates, exchange rates, and inflation. Traditional growth drivers have yet to reach their full potential, while new growth engines require more time to produce clear results.

Furthermore, the operation of the two-tier local government system still faces certain inadequacies. The decentralization and delegation of authority have not been fully realized, and the progress of issuing legal documents and implementation guidelines remains slow.

In his remarks, regarding the task of promoting growth in tandem with macroeconomic stability, the Prime Minister requested the synchronized implementation of solutions to mobilize and effectively utilize all resources for development.

Accordingly, the Ministry of Finance (MoF) was assigned to lead and coordinate with the State Bank of Vietnam (SBV) and relevant ministries to develop management scenarios and proactively respond to both domestic and international fluctuations.

The MoF was also directed to urgently propose plans for utilizing revenue increases and expenditure savings, reporting to the Prime Minister by May 15, 2026.

Simultaneously, the ministry must refine tax and financial policies to broaden the tax base, prevent revenue erosion, and strengthen collection management—particularly regarding cross-border e-commerce. Furthermore, the Government continues to prioritize the completion of the legal framework for the capital market, corporate bonds, the digital asset market, and investment funds.

On public investment, PM Hung emphasized the urgent need to allocate and disburse capital, improve usage efficiency, and strengthen discipline in management. He called for a definitive resolution to delayed capital allocation and urged the promotion of online bidding to increase transparency and prevent corruption and waste. Disbursement results are to be made public on a monthly basis.

The SBV was tasked with managing monetary policy flexibly, maintaining control over foreign exchange and credit markets, and ensuring systemic liquidity. The SBV must create favorable conditions for citizens and businesses to access capital at reasonable interest rates while continuing to refine the legal framework for credit activities.

In the management of specific sectors and fields, the PM requested the Ministry of Agriculture and Environment to ensure food security under all circumstances, promote the consumption of agricultural products, and enhance the capacity for forecasting and responding to climate change and natural disasters.

The Ministry of Industry and Trade was directed to proactively expand export markets, develop the domestic market, and accelerate the implementation of energy master plans to ensure energy security and prevent power shortages for both production and daily life.

The Ministry of Construction was told to focus on accelerating the progress of key infrastructure projects, promoting a healthy real estate market, and advancing the development of social housing in accordance with the established targets.

Vneconomy-Ly Ha

Moody’s upgrades Vietnam’s credit outlook to "Positive"

Mon, 04 May 2026 23:10:00 GMT

The agency highlighted significant strides in institutional and governance quality, driven by a comprehensive wave of administrative, legal, and public sector reforms initiated in late 2024.

The credit rating agency Moody’s Investors Service has revised Vietnam’s sovereign credit outlook from "Stable" to "Positive," while affirming the country’s long-term issuer and senior unsecured ratings at Ba2, the Ministry of Finance announced on May 4.

According to Moody’s, the outlook upgrade reflects growing confidence in Vietnam’s ability to improve its credit profile over the medium term. The agency highlighted significant strides in institutional and governance quality, driven by a comprehensive wave of administrative, legal, and public sector reforms initiated in late 2024.

Moody’s noted that these improvements not only bolster Vietnam’s institutional score within its credit profile but also promote macroeconomic stability and mitigate potential risks.

Beyond institutional gains, the Vietnamese economy has seen enhanced competitiveness through technological integration, infrastructure investment, improved labor quality, and the continued development of capital markets.

The affirmation of the Ba2 rating indicates that Vietnam’s fundamental economic strengths remain intact. Moody’s emphasized that the country’s growth potential continues to be a primary anchor for its credit profile. This is supported by a diversified export base, recovering domestic demand, and robust Foreign Direct Investment (FDI) inflows, all of which provide a solid foundation for macroeconomic stability.

Vietnam’s fiscal position also remains a key strength. Government debt is maintained at low and stable levels, supported by strong debt-servicing capacity. Reduced reliance on foreign currency-denominated debt has further lowered exchange rate risks and enhanced the country’s resilience against external shocks.

Furthermore, Moody’s evaluated that Vietnam has demonstrated a high degree of adaptability to global volatility, such as fluctuating energy prices, rising shipping costs, and inflationary pressures stemming from geopolitical tensions. This resilience is underpinned by a stable economic foundation, a positive external balance, and a highly diversified trade structure.

However, the rating agency cautioned that certain challenges remain. Risks within the banking system, vulnerabilities in the real estate market, and lingering institutional bottlenecks continue to serve as hurdles for a potential rating upgrade in the future.

Vneconomy-Hoàng Sơn

Six cooperation agreements between Vietnam and Japan signed

Sat, 02 May 2026 06:30:00 GMT

The agreements have been signed as part of the official visit to Vietnam by Japanese Prime Minister Takaichi Sanae from May 1-3.

Vietnamese Prime Minister Le Minh Hung and his Japanese counterpart Takaichi Sanae witnessed the exchange of cooperation agreements between Vietnam and Japan at a ceremony held in Hanoi on May 2, according to a report from the Government News.

These agreements are:

1. The Loan Agreement for the Project on disaster resilient rural development between the Government of Vietnam and the Japan International Cooperation Agency (JICA);

2. The Loan Agreement for the Project on climate resilient infrastructure development to support production for ethnic residents in Northern mountainous provinces between the Government of Vietnam and the JICA;

3. The Memorandum of Understanding on cooperation in low-carbon growth between the Government of Vietnam and the Government of Japan regarding the implementation of Joint Credit Mechanism.

4. The Memorandum of Understanding on cooperation in technological and technical exchanges in the hydraulic field between the Department of Hydraulic Works Management and Construction under the Ministry of Agriculture and Environment of Vietnam and the Rural Development Bureau under the Ministry of Agriculture, Forestry and Fisheries of Japan;

5. The Memorandum of Understanding on cooperation in the fields of information technology, communication, and digital transformation between the Ministry of Science and Technology of Vietnam and the Ministry of Internal Affairs and Communications of Japan; and

6. The agreement on satellite data exchange between the Viet Nam National Space Center under the Academy of Science and Technology of Vietnam and the Aerospace Exploration Agency of Japan.

VGP-Vân Nguyen

Decree on import duty cuts to 0% for certain fuel products takes effect until June 30

Fri, 01 May 2026 01:00:00 GMT

Under a newly-issued resolution of the Government, the validity of Decree No. 72/2026/ND-CP, which lowers preferential import duty rates on selected fuel products and raw materials to 0%, is extended until the end of June 30 this year.

According to the Government’s Resolution No. 25/2026/NQ-CP, issued on April 30, the validity of Decree No. 72/2026/ND-CP, which reduces preferential import tariffs to 0% on several fuel products and inputs for fuel production, will be extended until the end of June 30 this year.

Decree No. 72/2026/ND-CP, issued on March 9, 2026, was initially set to be applied until April 30, 2026.

Accordingly, preferential import duty rates of 0% will continue to be applicable to certain fuel production inputs under HS codes 2710.19.20 (partly refined crude oil), 2710.19.89 (other medium oils and preparations), and 2711.19.00 (other categories).

Resolution No. 25/2026/NQ-CP will take effect from May 1 through June 30. From July 1, preferential import duty rates for fuel products and production inputs will revert to the provisions stipulated in Decree No. 26/2023/ND-CP and its amendments.

During the validity of the resolution, in case of discrepancies between its provisions and those of Decree No. 26/2023/ND-CP or related amending decrees, the provisions of Resolution No. 25/2026/NQ-CP shall prevail.

The Ministry of Finance said that the extension of Decree No. 72/2026/ND-CP aims to help stabilize the domestic fuel market and ensure national energy security amid ongoing global uncertainties, while supporting macroeconomic stability and contributing to economic growth targets.

vneconomy-Van Nguyen

Real estate capital flows show signs of recovery

Wed, 29 Apr 2026 00:00:00 GMT

Outstanding credit for real estate business activities reaching VND2.24 quadrillion ($88.9 billion) as of late February.

Vietnam’s real estate capital flows are showing notable signs of recovery, albeit in a cautious and uneven manner, according to the Ministry of Construction.

As of February 28, 2026, outstanding credit for real estate business activities reached VND2.24 quadrillion ($88.9 billion), up 11.7% from the fourth quarter of 2025 and 43% year-on-year. The increase reflects improving confidence in the sector, though capital allocation remains selective.

A significant portion of credit has been directed toward urban development and housing projects, which accounted for 35% of total real estate lending—rising 24.1% compared to the previous quarter. Meanwhile, other segments such as industrial parks, resort properties and land-use rights also recorded credit growth, albeit at a slower pace.

In the corporate bond market, total bond issuance surged to VND16.31 trillion ($620 million) in March. Of this, the real estate sector made up a dominant share of VND10.2 trillion, equivalent to 62.51%, signaling a strong return of capital flows into the segment.

Foreign direct investment (FDI) inflows in the first two months of 2026 remained stable, with no major fluctuations in registered or disbursed capital. This was largely attributed to seasonal factors early in the year and the time required to complete investment procedures. Overall, the steady inflows underscore continued investor confidence in Vietnam’s business environment.

Momentum picked up in March, with newly registered FDI reaching an estimated $15.2 billion, up 42.9% year-on-year, while disbursements totaled $5.4 billion. Notably, real estate accounted for 7.2% of total disbursed FDI, equivalent to $389.5 million, signaling an initial recovery of foreign capital into the sector.

VnEconomy-Thanh Xuân