VnEconomy - Vietnam Economic Times

Vietnam’s first carbon trading exchange is to launh soon

Sun, 28 Jun 2026 01:05:00 GMT

The domestic carbon trading exchange is organized and operated as regulated by the Government’s Decree 29/2026/ND-CP.

Vietnam’s first carbon trading exchange is scheduled for launching on June 29.

This will mark a significant milestone in the development of the country's carbon market, thus making contributions to fulfilling its international commitments to reducing greenhouse gas emissions, promoting green transition, fostering the development of a low-carbon economy, and providing businesses with an additional market-based instrument to support the achievement of their sustainable development goals.

Vietnam is actively developing a centrally managed domestic carbon market, with a pilot phase from late 2026 to 2028 and full implementation scheduled for 2029.

This development aims to achieve the country’s greenhouse gas (GHG) emission reduction targets by 2030 and ultimately reach an ambitious goal of reaching net-zero emissions by 2050.

Earlier, the Vietnamese Government had approved pilot greenhouse gas emission quotas for key industrial sector in 2025 and 2026.

Under this pilot policy, Ministry of Agriculture and Environment had allocated greenhouse gas emission quotas to 110 facilities.

The ministry has also issued a circular regulating the management and operation of the national registry system for greenhouse gas emission quotas and carbon credits, providing the foundation for managing and trading commodities on the carbon exchange.

In January this year, the Government promulgated Decree 29/2026/ND-CP, paving the way for setting up domestic carbon exchange. The Decree stipulates that the domestic carbon exchange is a comprehensive legal framework for the organization and operation of the carbon market in Vietnam.

VGP-Pham Long

ProPak Hanoi 2026: technological boost for manufacturing sector

Sat, 27 Jun 2026 08:00:00 GMT

Spanning over 4,000 sq.m, the event will showcase the latest advancements in processing technology, packaging, automation, smart factories, and cold chain logistics.

The International Processing and Packaging Exhibition — ProPak Hanoi 2026 — will take place from October 13 to 15, 2026, at the Vietnam Exposition Center in Dong Anh, Hanoi.

As Northern Vietnam emerges as a pivotal industrial growth hub, fueled by an explosion of industrial zones, global supply chain shifts, and a surge in Foreign Direct Investment (FDI), ProPak Hanoi 2026 is set to become the premier platform for connecting knowledge, technology, and business opportunities across the food, beverage, pharmaceutical, and logistics industries.

Spanning over 4,000 sq.m, the event will showcase the latest advancements in processing technology, packaging, automation, smart factories, and cold chain logistics.

Speaking at the press conference on June 25, Senior Manager of Informa Markets Vietnam, Ms. Annie Tran, said "Businesses no longer compete solely on scale or cost. Today’s competition is defined by operational efficiency, technological integration, quality standards, sustainability, and the capacity to participate in global supply chains."

According to Ms. Tran, a modern production line does more than just increase productivity; it serves as a vital tool for businesses to minimize waste, optimize quality control, and meet the stringent demands of international markets.

Chairman of the Vietnam Beer, Alcohol, and Beverage Association (VBA), Mr. Nguyen Van Viet, noted that for the beverage industry, processing, filling, and packaging technologies must be viewed as strategic pillars of development. He argued that these are no longer just technical components of a production line, but factors that directly impact product quality, operational efficiency, and overall market competitiveness.

From a research and application perspective, Assoc. Prof. Dr. Nguyen Duy Lam, President of the Vietnam Association of Food Science and Technology, asserted that science and technology are the "keys" to the industry’s major breakthroughs.

“Processing, preservation, and packaging technologies are no longer isolated technical stages; they have become fundamental elements that determine the efficiency of the entire value chain. From reducing post-harvest losses and enhancing product quality to ensuring food safety and expanding export markets, modern technology is the direct contributor to every success,” said Mr. Lam.

Vneconomy-Vũ Khuê

Hanoi unveils 100-year master plan through digital exhibition

Fri, 26 Jun 2026 10:10:00 GMT

Scheduled for June 29, the event is expected to attract between 1,000 and 1,200 delegates, including 580 to 780 domestic and international investors.

To bring the 100-year vision of the Capital Master Plan closer to its citizens, Hanoi will launch a large-scale exhibition at the Hanoi Museum, featuring advanced digital technology to illustrate the city's future growth.

According to a press conference held on June 25 regarding the conference to announce the Hanoi Capital Master Plan with a 100-Year Vision and Investment Promotion 2026, the exhibition will be spread across multiple floors of the museum. On the first floor, a circular scale model with a 7-meter diameter will be displayed, providing fully updated information on the latest planning boundaries.

The fourth floor, spanning 1,200 sq.m, has been designed as a "special experience space." In addition to large-scale panels detailing Hanoi’s development throughout history, visitors can witness a 3D Mapping model that visually demonstrates the city’s technical infrastructure and spatial orientation. Guests will also have the opportunity to view 3D documentaries and trial-test an urban planning information lookup system.

The Master Plan covers a natural area of over 3,359 sq.km. It establishes a development structure based on a "multi-tier, multi-layer, multi-polar, and multi-center" model, utilizing the Red River as the primary ecological and cultural landscape axis.

By 2045, Hanoi aims to reach a GRDP of approximately $640 billion, transforming into a global city with a high quality of life. To realize this vision, the city has identified 11 breakthrough solution groups, notably an urban railway system integrated with Transit-Oriented Development (TOD) and a commitment to "Net Zero" emissions.

Scheduled for June 29, the event is expected to attract between 1,000 and 1,200 delegates, including 580 to 780 domestic and international investors.

On this occasion, the city will officially debut a 360-degree digitized data management system for investment projects. This system, along with the digital experience zone, promises to provide a comprehensive overview of investment potential and local products.

As part of the program, Hanoi is expected to grant investment policy decisions and investment registration certificates to key projects, while signing several Memoranda of Understanding (MOUs) with major global corporations.

Vneconomy-Thanh Xuân

HCM City establishes seven high-tech agricultural zones

Fri, 26 Jun 2026 02:17:00 GMT

The zones are designed to serve as centers for research, development and application of advanced technologies in agriculture.

Under a recent decision by the Ho Chi Minh People's Committee, seven High-Tech Agricultural Zones will be established with their operational framework approved, marking a significant step in advancing technology-driven and sustainable agricultural development.

The seven zones will cover more than 1,700 ha across key agricultural areas of the southern city. The zones include 2 facilities in Nhuan Duc commune (88.17 ha and 470 ha), and 5 others in Can Gio (89.74 ha), Cu Chi (23.3 ha), An Nhon Tay (470 ha), Binh Gia (383.22 ha), and Phuoc Hoa (203 ha).

The zones are designed to serve as centers for research, development and application of advanced technologies in crop cultivation, livestock farming, aquaculture, forestry, medicinal plants, biotechnology and post-harvest processing.

They will also function as hubs for testing, demonstrating and transferring new technologies, helping accelerate the modernization of agricultural production while improving efficiency and environmental sustainability.

Under the approved regulations, the zones will undertake a wide range of activities, including applied research, pilot production, controlled testing of new technologies and policy initiatives, technology exhibitions, and scientific and technical services. They will also provide agricultural quality testing services, support business incubation and innovation startups, and train highly skilled agricultural workers.

In addition, the zones are expected to attract domestic and international scientists, experts and investors to participate in the development of high-tech agriculture.

Each zone will focus on sectors suited to local conditions. Can Gio will specialize in high-tech aquaculture, Cu Chi will prioritize crop production and post-harvest technologies, An Nhon Tay will focus on high-tech livestock farming, while Binh Gia and Phuoc Hoa will develop crop cultivation, medicinal plants and forestry. Other zones will support a combination of agriculture, aquaculture and biotechnology-related activities.

VnEconomy-Thi Nguyễn

Dong Nai targets green transition of 44 industrial parks by 2030

Fri, 26 Jun 2026 00:00:00 GMT

Green transition is no longer optional but essential for the southern city’s industrial parks to attract high-quality investment.

Dong Nai city is aiming to transform all 44 of its industrial parks into eco-industrial parks by 2030, with a vision to 2050, as the southern city seeks to strengthen its investment appeal amid increasingly stringent global environmental standards.

The strategy reflects a broader shift in industrial competitiveness, where factors such as carbon emissions, resource efficiency and compliance with environmental, social and governance (ESG) standards are becoming as important as land availability and labor costs.

The transformation agenda was highlighted at a seminar on promoting eco-industrial parks, circular economy development and carbon emission reduction, jointly organized on June 25 by the Dong Nai Industrial Zones and Economic Zones Authority (DNIEZA) and the United Nations Industrial Development Organization (UNIDO).

Speaking at the event, Mr. Pham Viet Phuong, Acting Deputy Head of DNIEZA, said green transformation is no longer optional but essential for industrial parks seeking to attract high-quality investment.

"Investment attraction is increasingly judged not only by the scale of capital or the number of projects, but also by technology, resource efficiency, energy use and environmental performance," he said.

Dong Nai is home to 44 established industrial parks with 2,793 active investment projects, making it one of Vietnam's leading destinations for foreign direct investment (FDI). However, the city's large industrial base has also placed growing pressure on energy consumption, water resources, environmental infrastructure and greenhouse gas emissions.

To address these challenges, the city People's Committee issued a roadmap in February 2026 to convert existing industrial parks into green and eco-industrial parks by 2030, with a longer-term vision extending to 2050.

The plan aligns with the Politburo's Resolution No. 10-NQ/TW, issued in June 2026, which targets having around 10% of Vietnam's industrial parks operating under the eco-industrial model by 2030 through both new developments and the conversion of existing sites.

Ms. Le Thi Thanh Thao, UNIDO's Country Representative in Vietnam, said Dong Nai is well positioned to become a national leader in eco-industrial park development. She noted that the transition could significantly enhance the city's ability to attract high-quality FDI, as multinational corporations increasingly favor industrial parks that meet ESG requirements and support low-carbon supply chains.

VnEconomy-Nguyệt Hà

Vietnam capable of producing 1 million barrels of SAF daily: expert

Thu, 25 Jun 2026 23:30:00 GMT

Key actions include refining policies to support the SAF ecosystem, ensuring sustainable feedstock supplies, selecting appropriate technologies, and developing supply chains and supporting infrastructure.

Vietnam has a potential to produce roughly 1 million barrels of SAF daily between 2030 and 2050 by leveraging its vast agricultural waste from rice and cassava.

This assessment was shared by Mr. Sharmine Tan, Boeing’s Southeast Asia Sustainability Lead, at the international workshop titled "Sustainable Aviation Fuel (SAF): Policy Framework and Market Development in ASEAN" held on June 25, according to a report by the Government News.

Speaking at the event, Deputy Minister of Construction Le Anh Tuan noted that the green transition and sustainable development within the aviation sector are becoming increasingly urgent. This urgency aligns with Vietnam's commitment to achieving net-zero emissions by 2050 and its official participation in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) starting in 2026.

According to Ms. Nguyen Thi Phuong Hien, Deputy Director of the Ministry of Construction's Institute of Strategy and Development, Vietnam's aviation industry is maintaining one of the fastest growth rates in Asia. Current consumption of traditional Jet A-1 fuel stands at approximately 2.8 to 3 million tons annually. Demand for air transport is forecasted to continue rising sharply, potentially driving fuel consumption to 4 million tons by 2030 and reaching 11 million tons by 2050.

"The biggest barrier to the development of SAF in Vietnam remains the economic challenge, as SAF production requires massive capital investment and cutting-edge technology," Ms. Hien remarked.

Currently, the production cost of SAF is 2 to 5 times higher than that of conventional Jet A-1 fuel, while investment incentive mechanisms are still being refined. Vietnam also faces several hurdles, including the lack of a formal SAF adoption roadmap, the absence of appropriate support mechanisms, difficulties in mobilizing sustainable raw materials, and challenges regarding traceability and meeting international certification standards.

Sharing this perspective, Mr. Philip Goh, CEO of the Asia-Pacific Sustainable Aviation Centre (APSAC), noted that SAF is projected to account for less than 1% of total global aviation fuel consumption by 2025. This is primarily due to its high cost compared to conventional fuels and the fact that production is concentrated in only a few countries. Furthermore, market instability and uncertain demand make investors hesitant to fund production without guaranteed long-term off-take agreements.

To drive SAF development, Ms. Hien suggested that Vietnam needs to establish a roadmap tailored to its practical conditions. Key actions include refining policies to support the SAF ecosystem, ensuring sustainable feedstock supplies, selecting appropriate technologies, and developing supply chains and supporting infrastructure. She also emphasized the need to mobilize investment, create risk-sharing mechanisms, expand international cooperation, and accelerate technology transfer alongside high-quality human resource development.

Echoing these views, Mr. Subash S, Deputy Regional Director for Asia-Pacific at the International Civil Aviation Organization (ICAO), stated that each nation must build an SAF roadmap aligned with its specific reality, based on its potential feedstock, energy sources, market demand, and existing infrastructure.

Developing SAF cannot be the sole responsibility of the aviation industry; it requires a coordinated policy framework involving transport, energy, environment, finance, industry, and investment. SAF must be integrated into existing national policies, with the Government playing a leading role by committing to SAF usage in state-managed activities, said Mr. Subash S.

Mr. Philip Goh added that Vietnam possesses immense potential for feedstock derived from agricultural by-products and biomass waste, such as rice straw, husks, bagasse, and other sources. APSAC is prepared to support research on materials and policies suitable for Vietnam, while providing training and capacity-building for government officials and connecting Vietnam with ICAO, regional partners, and the global aviation industry.

VGP-

Quang Ninh to become smart coastal city and national maritime economic hub

Wed, 24 Jun 2026 09:45:00 GMT

The ultimate goal of the planning is to transform Quang Ninh into a modern, smart, green, and sustainable city that serves as a national growth pole and a driver for regional development.

The Prime Minister has issued Decision No. 1123/QD-TTg dated June 23, 2026, approving the General Urban Planning for northern Quang Ninh province through 2050, with a vision toward 2075.

The ultimate goal of the planning is to transform the province into a modern, smart, green, and sustainable city that serves as a national growth pole and a driver for regional development. The province aims to possess international competitiveness while maintaining a balance between economic growth, social welfare, and environmental protection.

The planning scope covers approximately 6,232.4 sq.km of land along with the sea area within the province's administrative boundaries. This timeline is divided into stages: short-term to 2040, long-term to 2050, and a vision extending to 2075.

The locality is directed to integrate its urban, maritime, border, and heritage components into a complete ecosystem, providing the spatial and infrastructural foundation for the development of services, the maritime economy, and high-tech industries. This development is to be closely linked with science and technology, innovation, and green and digital transformations.

The vision identifies Quang Ninh as an international gateway, a global service and tourism hub, and a national maritime economic center. It is envisioned as a civilized, modern coastal city with a high international standard of living, pioneering national innovation models while remaining human-centric and heritage-focused.

According to the development roadmap, by 2030, Quang Ninh will be an international tourism service center, a national trade gateway, and a hub for high-quality services and high-tech manufacturing.

By 2040, it will become a national maritime economic center and a modern coastal city that applies innovative models in economic development, social management, and infrastructure governance. By 2050, Quang Ninh is oriented to be an international heritage city and a leading maritime economic center for both the nation and Southeast Asia. It will serve as a key national economic locomotive and a model for green, smart, and sustainable urban governance that preserves local identity and adapts to climate change.

In terms of its urban character, Quang Ninh is defined as a modern national and international maritime economic center, positioned as a leader in Southeast Asia and a primary driver for the Red River Delta. It will function as a national and international tourism hub, as well as a center for modern industry, trade, and logistics featuring maritime economic sectors with high global competitiveness.

Furthermore, Quang Ninh will be a "green, smart, and climate-resilient" coastal-border-heritage city, serving as a vital national transport node that connects domestic and international economic corridors and acts as a regional and international hub for logistics and trade.

Vneconomy-Hà Lê

Energy transition for economic development

Wed, 24 Jun 2026 07:35:00 GMT

The energy transition is a crucial pillar of Vietnam’s economic development targets and overall ambitions.

From its double-digit growth target to its aspiration of becoming a developed, high-income nation by 2045, Vietnam is facing the need to accelerate the development of new growth drivers. Politburo Resolution No. 70-NQ/TW, dated August 20, 2025, on ensuring national energy security to 2030, with a vision to 2045, has identified the importance of the energy sector for socio-economic development, national defense and security, and social welfare.

At the “Energy Transition - A Driving Force for Double-Digit Growth Targets” workshop, organized by the Ministry of Industry and Trade (MoIT) in coordination with relevant agencies on June 9, Associate Professor Ngo Tri Long, Economic Expert at the Vietnam Financial Consulting Association, said that in the current context, energy transition has become a global development trend, directly linked to energy security, national competitiveness, supply chain restructuring, export standards, investment flows, and a new growth model.

Securing the energy future

Over the years, Vietnam’s economic growth rate has consistently remained high compared to other countries in the region and around the world. Accordingly, the demand for energy in general and electricity in particular has also increased rapidly.

Regarding institutional reform, the MoIT advised the National Assembly (NA) to enact the amended Law on Electricity in November 2024, and simultaneously developed guiding documents under the Law. This is an important foundation for perfecting mechanisms and policies for the electricity and renewable energy sectors, especially offshore wind power.

Regarding electricity development planning, the MoIT has coordinated with ministries, sectors, and localities to implement the Project to Adjust the Power Development Plan VIII (PDP8), prioritizing the development of green and clean energy sources and efficiently exploiting domestic energy potential. The goal is to ensure electricity supply for socio-economic development, while reducing emissions and enhancing national energy self-reliance.

Regarding mechanisms to promote investment, the Ministry has advised the government to submit Resolution No. 253/2025/QH15 on mechanisms and policies for national energy development in the 2026-2030 period to the NA, aiming to remove institutional bottlenecks from the past, build mechanisms and policies to promote the development of power projects, and ensure energy security in the 2026-2030 period.

Specifically for 2026, Mr. Trinh Quoc Vu, Deputy Director General of the Electricity Department at MoIT, said the Ministry has developed three scenarios. The baseline scenario forecasts a 5.5 per cent increase in load compared to 2025. The operational scenario forecasts a load increase of up to 11.7 per cent, and the contingency scenario forecasts a load increase of up to 14.1 per cent compared to 2025.

He added that the Resolution of the 14th National Congress of the Communist Party of Vietnam sets a target of economic growth of 10 per cent or more a year during the 2026-2030 period, so ensuring sufficient electricity supply for socio-economic development plays an extremely important role. “Under the guidance and direction of the government and various ministries, departments, and localities, we have basically ensured sufficient electricity and energy supply for the country’s economic development in the past,” he said.

In the time to come, the MoIT will continue to research and review amendments to certain articles of the Law on Electricity and issue detailed guiding documents to institutionalize the new and important policies of the Party in Politburo Resolution No. 70, which is expected to be submitted to the National Assembly for promulgation this year.

Range of challenges

Vietnam’s energy transition process still has many limitations. The existing power grid is severely overloaded and lacks synchronization. As of the end of 2025, the total national power generation capacity was expected to have reached approximately 87,600-95,000 MW, of which renewable energy (excluding large hydropower) is expected to account for 27-28 per cent, equivalent to more than 24,000 MW. Many provinces in the central and southern regions, such as Khanh Hoa and Lam Dong, frequently have to reduce renewable energy output by 20-30 per cent or even up to 50-60 per cent during certain hours or when the weather changes suddenly.

This creates a paradox, according to Dr. Nguyen Xuan Quang from the Institute of Energy Technology at the Hanoi University of Science and Technology. “Vietnam has clean energy sources but cannot transmit all of them to the grid, leading to wasted resources and reduced investor confidence,” he said.

In addition, the policy mechanisms are unstable and inconsistent. According to the Institute, the initial success of the preferential electricity purchase price mechanism with the Feed-in Tariff (FIT) pricing system contributed to the boom in solar and wind power. However, this rapid development has also revealed many shortcomings. The power system has not had time to prepare in terms of grid and dispatching, leading to many projects having to reduce output despite having completed investment. After the FIT mechanism ended, many transitional projects continued to face difficulties in determining electricity selling prices.

Financial challenges are fundamental issues determining the success of the energy transition process. According to the revised PDP8, the total investment capital required for power generation and transmission grids in the 2026-2030 period is estimated at $136-150 billion. On average, the power sector needs to mobilize $27-30 billion annually, equivalent to about 6-7 per cent of Vietnam’s current GDP. This capital must be invested in the development of renewable energy sources.

Meanwhile, Mr. Quang said, the commitment under the Just Energy Transition Partnership (JETP), worth $15.5 billion, is progressing slowly, with only a small portion disbursed. High domestic borrowing interest rates, exchange rate risks, and production cuts are making many projects less attractive. Foreign investors often require that power purchase agreements (PPAs) meet conditions that facilitate access to funding from international financial institutions. Furthermore, the trend of reduced financing for fossil fuels from international financial institutions is putting significant pressure on coal and natural gas power projects.

Under the guidance and direction of the government and various ministries, departments, and localities, we have basically ensured sufficient electricity and energy supply for the country’s economic development in the past.

Mr. Trinh Quoc Vu, Deputy Director General of the Electricity Department at the Ministry of Industry and Trade.

Proposed solutions

Vietnam’s energy transition is at a critical stage. To effectively implement the set goals and meet the growth needs for socio-economic development of the country, Mr. Vu said several important solutions are needed, including continuing to improve mechanisms and policies to create a favorable environment for the implementation of power projects; regularly urging localities to support and facilitate investors in implementing projects within their areas, ensuring the set deadlines are met; diversifying capital sources and forms of capital mobilization, effectively attracting domestic and foreign capital; and encouraging all economic sectors to participate in investing in the power sector.

“With these comprehensive solutions, from the legal framework for power development to project investment implementation, I believe that investors will have sufficient legal framework to implement power projects in general, and renewable energy projects in particular, to realize Vietnam’s sustainable energy development strategy,” he added.

Mr. Quang also proposed accelerating investment in the power grid and energy storage systems, perfecting the electricity market mechanism, promoting the implementation of the JETP, and developing flexible power sources. At the same time, it is necessary to enhance energy efficiency, synchronously plan electricity and transportation, reform electricity pricing, and focus on training human resources for a just energy transition.

“With its abundant potential and favorable geographical location, Vietnam can absolutely become a renewable energy hub in Southeast Asia,” he said. “The energy transition is not only a responsibility to the environment but also a crucial opportunity for sustainable economic development and ensuring long-term energy security for the country.”

On the other hand, Mr. Long pointed out that energy transition must be based on science, markets, technology, infrastructure, institutions, and social consensus. In this new phase, the content of Vietnam’s energy transition must be understood more broadly: not just electricity, but also petroleum, biofuels like E10, green transportation, energy efficiency, carbon markets, energy prices, storage infrastructure, smart grids, and the consumption behavior of the entire society.

“If done correctly, energy transition will not be a cost burden,” he believes. “On the contrary, it will be a driving force for Vietnam to upgrade its growth model, reduce dependence on imported fuels, increase the competitiveness of businesses, attract green investment, expand new industries, and ensure national energy security.”

VET- Linh Ngoc

HCMC develops megacity-scale flood control strategy through 2060

Tue, 23 Jun 2026 23:50:00 GMT

A notable highlight of the project is the development of growth scenarios that account for population increases, rapid urbanization, climate change, sea-level rise, and land subsidence.

Ho Chi Minh City is drafting a comprehensive master plan for flood control and wastewater treatment for the 2026–2060 period, alongside a detailed implementation plan for 2026–2036. For the first time, urban water management will be studied based on river basins rather than restricted by administrative boundaries.

According to the city Department of Construction, this basin-based approach allows for a more accurate identification of water flows, the relationship between upstream, downstream, and estuaries, hydraulic bottlenecks, and areas affected by the ripple effects of flooding. Furthermore, the project sets out an integrated approach combining flood control, drainage, wastewater treatment, urban water management, environmental protection, and climate change adaptation.

As an initial step, the project will review the entire legal framework, existing urban planning, and previous programs related to drainage and wastewater. This includes evaluating the continuity of past initiatives, such as "Project 299," which has already been implemented in the city.

In parallel, the city will conduct a comprehensive assessment of the current state of flooding, drainage systems, tidal control, and wastewater collection across all districts post-merger. This effort will include the creation of a digital GIS (Geographic Information System) database mapping flood points, drainage works, tidal control structures, and wastewater treatment systems.

A notable highlight of the project is the development of growth scenarios that account for population increases, rapid urbanization, climate change, sea-level rise, and land subsidence. Based on these scenarios, technical analyses and flood-risk modeling will be conducted to identify priority basins for intervention and create a flood-risk zoning map for the entire city.

The draft outline also specifies that the city will establish a set of quantitative indicators for various sectors, including flood reduction, drainage capacity, wastewater collection and treatment rates, operational efficiency, resilience, and water reuse.

Beyond traditional "gray infrastructure"—such as sewers, dikes, pumping stations, tidal control gates, and treatment plants—the plan places heavy emphasis on integrating "green" and "blue" infrastructure alongside nature-based solutions.

Detention basins, water storage spaces, permeable surfaces, canal systems, ecological wetlands, and aquatic landscapes are viewed as vital components to enhance water regulation and reduce pressure on the city's technical infrastructure.

Vneconomy-Thiên Ân

Nghe An launches $720 mln climate change adaptation project

Mon, 22 Jun 2026 09:00:00 GMT

This includes roughly $595 million in loans from the World Bank (WB) and approximately $125 million in local counterpart funding.

Nghe An is set to launch a $720 million climate change adaptation and eco-tourism infrastructure project in the province's western region. This includes roughly $595 million in loans from the World Bank (WB) and approximately $125 million from local counterpart funding.

According to the proposal, the project is divided into four components. Among them, the component on developing Vinh’s urban infrastructure to adapt to climate change is the largest, with a total estimated capital of about $415 million.

The funds will be used to upgrade urban infrastructure by integrating stormwater drainage and transportation systems at a cost of around $258 million; expand the wastewater collection and treatment system with about $65 million; and strengthen the drainage capacity of major rivers and canals with about $60 million.

Additionally, a component dedicated to strengthening solid waste management through a circular economy approach has a projected investment of $50 million. This segment focuses on improving waste management efficiency, developing material recovery facilities, and promoting circular economy models.

Another notable feature of the project is the $170 million component dedicated to upgrading infrastructure to drive tourism development in Western Nghe An. Under this plan, the province will prioritize the construction of roads connecting to tourist sites along National Highway 7A, upgrade technical infrastructure at central hubs, and support local villages in developing community-based tourism.

Furthermore, between $78 million and $85 million has been allocated for technical assistance and capacity building to ensure the effective management and implementation of all investment items.

During a working session on June 19 between the Provincial People’s Committee and the World Bank Vietnam to consult on the adjusted investment list and conduct a preliminary investment screening for the project, World Bank representatives stated that their task force had previously conducted several field surveys and held specialized meetings with local authorities and relevant agencies to assess the current situation, identify investment needs, and finalize the project proposals.

Vneconomy-Nguyễn Thuấn

Vietnam, Russia target $15bln in bilateral trade

Fri, 19 Jun 2026 03:00:00 GMT

Vietnamese Prime Minister Le Minh Hung and Russian President Vladimir Putin agreed to boost effective implementation of high-ranking cooperation agreements.

Prime Minister Le Minh Hung and Russian President Vladimir Putin agreed to take measures to raise bilateral trade to $15 billion in the near future, during their meeting in Kazan on June 18, as part of the Vietnamese leader’s trip for the ASEAN – Russia Commemorative Summit and bilateral activities in Russia.

They agreed to continue collaboration in mining, transport, shipbuilding, railway modernisation, the expansion of transport corridors, including international intermodal railway routes through China.

They agreed to accelerate negotiations for the early implementation of the Ninh Thuan 1 Nuclear Power Plant project. They affirmed that cooperation in energy, oil and gas, and nuclear power is one of the key pillars of bilateral relations and should be implemented in line with the agreed roadmap.

PM Hung proposed that Russia create more favourable conditions for Vietnamese products, particularly agricultural goods, to gain greater access to the Russian market. He also called for the removal of restrictions on certain Vietnamese seafood processing facilities exporting to Russia and the expansion of the list of enterprises eligible to export seafood products to Russia and other member states of the Eurasian Economic Union (EAEU).

The Vietnamese leader further suggested that Russia consider negotiations to amend the Free Trade Agreement between Vietnam and the EAEU, including the complete removal of safeguard measures applied to Vietnamese textile, garment and footwear exports to Russia and the EAEU market.

The two sides agreed to promote tourism cooperation and people-to-people exchanges, expedite the establishment of a Vietnamese Cultural Centre in Russia, consider the construction of a Russian school in Hanoi, and organise a Russian Cultural Season in Vietnam in 2027.

VnEconomy-Hà Lê

Vietnam has potential to become Southeast Asia’s renewable energy hub: Suzlon

Fri, 19 Jun 2026 01:00:00 GMT

Speaking with Vietnam Economic Times / VnEconomy on the sidelines of the APAC Wind Energy Summit 2026 in Hanoi, Mr. Girish Tanti, Vice Chairman of Suzlon Group, said Vietnam is not only a promising market but also has the potential to become a regional hub for renewable energy development, services, and supply chains.

https://www.youtube.com/embed/yy9iOVQlpw0

Nearly seven months have passed since Suzlon first began actively exploring opportunities in Vietnam. How would you assess the current outlook for Vietnam’s wind energy market, particularly in light of the revised Power Development Plan VIII and the country’s long-term energy transition goals?

Vietnam, within Asia, stands out, in terms of its bold targets-almost 24 gigawatts of renewable energy already operational, and 7 gigawatts of wind operational in the country, and set out a very strong goal for energy green transition by 2035, to adoption of renewable energy.

It is the fastest growing renewable energy market in the region, and Suzlon being one of the pioneers in Asia, we have opened up several markets in Asia, with product portfolio ranging from 2 megawatt to almost 6 megawatt now, largely focused on onshore wind.

We see Vietnam market for onshore, near shore also pretty interesting, that is something that is more likely to happen in the immediate future, and we are very confident that we should be able to make a meaningful contribution to Vietnam's growth from here.

Does Suzlon view Vietnam primarily as a potential market for wind turbine sales, or does the Group see Vietnam as a strategic manufacturing and service hub for Southeast Asia in the future?

Vietnam being the largest market in Southeast Asia has a very unique position, because it is an early starter with probably the largest, almost 7 gigawatts installed wind fleet. It is very uniquely placed to play a regional role.

Any company that is focused around renewable energy operating out of Vietnam, will use Vietnam as a regional player, so we too will not just focus on the supply of wind turbines, but also the full scale service of wind turbines, and then using it as a base for the rest of Asia.

If market conditions are favorable, would Suzlon consider establishing its first manufacturing facility or technical service center in Vietnam during the 2027-2030 period?

I think we are in the first phase of kick-starting our build-out in Vietnam, so we are in that stage where we are connecting with all the key developers and customers to see how we can develop long-term portfolio projects with our customers.

And as the outcome of that come out, I think the first phase service business will pick up, then we will have new turbine sales, and with that then we will look at how we can build the supply chain ecosystem in Vietnam, not just for Vietnam, but for the rest of the region.

Suzlon Group- one of the leading wind turbine manufacturers in India and Asia. Photo: Suzlon

Suzlon played an important role in helping India develop a strong domestic wind energy manufacturing ecosystem. Based on that experience, what lessons could Vietnam learn to build its own wind power supply chain and supporting industries?

I think Vietnam has a beautiful opportunity right now, we can replicate some of the things we did in India.

First and foremost for any market to grow and develop in a strong way, you need a stable policy.

Vietnam now has a good vision and a stable policy in place, which is very critical.

The second important element is to make sure that you have the right infrastructure to be able to build this.

So your grid infrastructure, your port infrastructure, all the other infrastructure to allow renewable energy adoption.

The third is, you know, having the market development, creating the demand for adoption of renewable energy and energy transition, that is another third important area.

And when we look at building the ecosystem for manufacturing, I think it's important that you do a phased manner adoption of local development of things, otherwise it can hamper your growth.

So while the growth is coming out, not to slow down your growth, it's important that we build out ancillary industries and ecosystems across Vietnam, which can benefit from the growth of the renewable sector also.

Many wind farms in Vietnam are now entering the operational phase and require professional maintenance services. How does Suzlon evaluate the potential of the operations and maintenance (OM) market in Vietnam?

So you have 77 gigawatts of already installed capacity of wind. Suzlon today operates close to about 21.5 gigawatts globally, around 17 nations that we have this fleet.

Within Asia itself, the largest part of this fleet is there. So very strong competency and we are close to Vietnam geographically also. So I think in India, Vietnam cooperation is very good. So there is a good partnership relationship between the two countries. I think we can leverage that to build a whole ecosystem, which can be of mutual benefit on that.

And definitely the service business is an important piece, and Suzlon has been very strong on the service side. Because we strongly believe it's not just installing the turbines, it's making sure that the green electrons delivered over the life of the project, which ultimately gets investors to kind of reinvest into renewable energy.

Today we see almost 90% of Suzlon's business comes from repeat business, which is primarily because they are happy with Suzlon's performance.

Chinese wind turbine manufacturers have expanded rapidly across Asia with highly competitive pricing. How does Suzlon differentiate itself and compete in markets such as Vietnam?

Cost competitive and affordability of energy is very critical. Suzlon's unique proposition is that, like if you see our current 5 megawatt and 6 megawatt project, which we launched at this conference for the Asian market, the Blue Sky platform, both of these are very uniquely designed to meet the energy profile and the grid requirement of this region and the climate requirement.

The 5 megawatt is largely for the low wind conditions to extract the maximum energy. And you have a 6 megawatt, which is a high wind turbine, which can extract energy from higher 8, 9 meters per second of that.

So I think with this combination of two turbines, today effectively we are able to provide almost 90% coverage of any wind sites that exist in Asia to fit this turbine.

So the competitiveness is coming purely not just from cost, but it is the value delivery.

So from a cost per kilowatt hour, there is a little, at times people just look at the capital cost, but you must also see the life cycle cost, LCOE as we call it.

I think Suzlon product is very competitive on the life cycle cost of a turbine, means a unit cost of generation of electricity from Suzlon will be competitive to any other product. And these two products are powerhouses. They are very strong on performance.

Suzlon is entering a new phase of global growth and business transformation. Within Suzlon’s long-term international strategy, what role do you envision Vietnam playing over the next five to ten years?

We are entering a new phase of Suzlon 2.0, where we are growing the global markets in a big way. We will also grow beyond wind.

So the idea is to do wind solar storage and make firm renewable energy. So we will work with partners and develop plans of not just one or two years from project to project, but build relationships for a decade and help them build their energy portfolio of wind solar storage together.

Technical partner, operational partner, end-to-end service. And Vietnam is uniquely placed with its strong ahead-of-the-curve build-up of renewable energy. So we will be leveraging that for the Asia market build-up.

Tác giả trực tiếp phỏng vấn-Trọng Hoàng

Vietnam, Poland explore green growth and circular economy cooperation

Thu, 18 Jun 2026 09:00:00 GMT

At a seminar held in Hanoi on June 18, the Polish ambassador to Vietnam, H.E. Ms. Joanna Skoczek highlighted the longstanding friendship between Vietnam and Poland, which has been nurtured across generations and serves as a strong foundation for cooperation in politics, trade, education, culture, and people-to-people exchanges.

A seminar titled “Green Champions of Growth: Lessons from Poland’s Economic Transition Toward a Sustainable and Circular Economy” was jointly organized on June 18 by the Embassy of the Republic of Poland in Hanoi and the Institute for European and American Studies (IEAS) under the Vietnam Academy of Social Sciences.

Focusing on economic transformation and sustainable development, the event provided an opportunity for participants to gain insights into Poland’s remarkable economic transition, while engaging with leading experts in economics, business, and green technology from Poland, the European Union, and Vietnam.

The seminar brought together a distinguished group of participants, including Ambassador Vu Quang Minh, former Vice Minister of Foreign Affairs of Vietnam.; H.E. Ms. Joanna Skoczek, Polish Ambassador to Vietnam; Associate Professor Dr. Nguyen Chien Thang, IEAS Director; Professor Marcin Piątkowski of Poland's Kozminski University; Dr. Bui Viet Hung, Senior Research Fellow at IEAS; as well as representatives from Poland’s Ministry of Climate and Environment, the Delegation of the European Union to Vietnam, researchers, experts, and leaders of businesses from Europe and South Korea operating in Vietnam.

In her opening remarks, the Polish ambassador highlighted the longstanding friendship between Vietnam and Poland, which has been nurtured across generations and serves as a strong foundation for cooperation in politics, trade, education, culture, and people-to-people exchanges.

According to the ambassador, as the world undergoes profound technological, geopolitical, and economic changes, Vietnam and Poland have significant opportunities to deepen practical cooperation, particularly in innovation, digital transformation, education, scientific research, and the development of highly skilled human resources.

“We believe that Poland’s transformation journey may offer valuable lessons for Vietnam as it pursues its ambitious goals of economic growth, technological advancement, and prosperity for its people,” she said.

Speaking at the seminar, Associate Professor Dr. Nguyen Chien Thang noted that the world is entering a period of profound transformation, with green growth, the circular economy, energy transition, and innovation emerging as key development drivers. Amid mounting challenges related to climate change, resource depletion, energy security, and sustainable development, countries worldwide are accelerating their shift toward greener, more efficient, and more resilient growth models.

“Green transition is no longer an option, but has become an inevitable trend and a crucial driver of future growth,” he emphasized. “Countries that successfully embrace this transformation will be better positioned to enhance competitiveness, attract investment, and ensure long-term sustainable development.”

Against this backdrop, international experience offers valuable lessons. Poland stands out as a compelling example of successful economic transformation, enhanced competitiveness, and innovation-driven growth. Today, the country continues to advance its green transition agenda in line with the objectives of the European Green Deal, providing practical insights for Vietnam as it seeks to build a green growth model and pursue sustainable development.

The keynote presentation was delivered by Professor Marcin Piątkowski, an economist at Kozminski University and an internationally recognized expert in economic development, innovation, and competitiveness. He shared Poland’s experience in economic transformation and discussed lessons related to sustainable growth, economic modernization, and green transition.

The event also featured presentations and panel discussions on green technology, the circular economy, and sustainable economic transformation. Speakers included representatives from major European and Asian business organizations, including the leadership of EuroCham and KOCHAM, the EU Delegation to Vietnam, Vietnamese research institutions, and the business community.

A highlight of the event was the participation of GreenEvo – the Green Technology Accelerator, a flagship initiative of Poland’s Ministry of Climate and Environment that supports the international expansion of Polish environmental technologies. As a key partner of the seminar, GreenEvo brought a delegation representing 12 Polish technologies across a wide range of sectors, including water management, waste management, biodiversity protection, air quality improvement, climate protection, and circular economy solutions.

The GreenEvo program focuses on areas such as water and wastewater treatment, waste management and recycling, renewable energy, energy efficiency, environmental technologies, and solutions that support circular economy development and carbon emission reduction.

The seminar contributed to strengthening mutual understanding, promoting research cooperation, facilitating knowledge exchange, and expanding business opportunities between Vietnam and Poland in the fields of green growth, circular economy, and sustainable development. These efforts are expected to support both countries in advancing their sustainable development goals while fostering deeper bilateral cooperation in the years ahead.

Vneconomy-Anh Hoang

Energy should become key pillar of ASEAN-Russia relations: Prime Minister

Thu, 18 Jun 2026 00:00:00 GMT

At the ASEAN-Russia Business Forum, held in Kazan, Russia, on June 17, Vietnamese Prime Minister Le Minh Hung highlighted that given the rapid and complex transformations around the world, it is imperative for ASEAN and Russia to foster trusted partnerships, stable markets, and resilient supply chains.

Speaking at the ASEAN-Russia Business Forum, held in Kazan, Russia, on June 17, Vietnamese Prime Minister Le Minh Hung stated that energy should be positioned as a key pillar of ASEAN-Russia cooperation as energy security remains one of the most pressing challenges to the growth and sustainable development of nations

The Prime Minister was quoted by the Government News as saying that this year's forum provides a valuable opportunity for both ASEAN and Russia to exchange strategic perspectives aimed at fostering broader, more substantive, more connected, and more resilient future cooperation amid global changes.

Given the rapid and complex transformations around the world, it is imperative for ASEAN and Russia to foster trusted partnerships, stable markets, and resilient supply chains, he said.

Building on the complementary strengths and potentials between ASEAN and Russia, the Vietnamese Prime Minister suggested both sides should work together to build stable, flexible, and resilient supply chains capable of withstanding external disruptions.

The development of transportation routes linking Russian Far East with Southeast Asian seaports and railways will not only help bridge geographical divides and facilitate trade but also unlock immense opportunities for cooperation and investment for the business communities on both sides, he added.

The Prime Minister suggested businesses should make fuller use of existing economic cooperation frameworks, particularly the free trade agreements between the Eurasian Economic Union (EAEU) and several ASEAN Member States.

Drawing on its experience in promoting trade and investment cooperation with the Eurasian region through the Vietnam-EAEU free trade agreement, Vietnam stands ready to serve as a bridge, helping to deepen trade and investment ties between ASEAN and the EAEU as well as between ASEAN and Russia. According to him.

Prime Minister Hung also suggested energy should be positioned as a key pillar of ASEAN-Russia cooperation as energy security remains one of the most pressing challenges to the growth and sustainable development of nations.

The potential for investment and collaboration between ASEAN and Russia is significant, particularly in clean energy, LNG, hydrogen, offshore wind power, and energy-efficiency technologies, he noted.

As energy has long been a cornerstone of the Vietnam-Russia partnership, Prime Minister Hung said Vietnam looks forward to working with Russia and fellow ASEAN Member States to develop viable projects, particularly in clean energy and green technologies, thereby contributing to regional energy security and stability.

Prime Minister Hung suggested ASEAN and Russia advance cooperation in technology, innovation, and digital transformation, adding that this will be one of the most important areas of cooperation between the two sides in the years ahead.

He affirmed that Vietnam welcomes and stands ready to facilitate deeper cooperation with Russian enterprises in areas such as artificial intelligence, cyber-security, digital education, and digital healthcare.

The Vietnamese leader also encouraged ASEAN and Russia to advance innovation cooperation programs, support technology companies and young start-ups, and foster a vibrant innovation system that connects the business communities on both sides.

As the Governments have the responsibility to create a stable, transparent, and enabling environment for investment and business, the business community, for its part, serves as the driving force in translating cooperation into tangible outcomes and strengthening ties among economies, said PM Hung.

From that perspective, he encouraged ASEAN and Russian business communities to continue making long-term investments and to work together in building new value chains for the future that deliver mutual benefits.

PM Hung also reiterated that Vietnam stands ready to work with Russia and follow ASEAN Member States to transform potential into concrete projects, connectivity into business opportunities, and mutual trust into new driver of growth.

The ASEAN-Russia Business Forum, held ahead of the ASEAN-Russia Commemorative Summit marking the 35th anniversary of ASEAN-Russia relations, also drew the participation of ASEAN Secretary General Kao Kim Hourn, Malaysian Prime Minister Anwar Ibrahim, Thai Prime Minister Anutin Charnvirakul.

VGP-Van Nguyen

Vietnam's strong ecosystem rebound

Wed, 17 Jun 2026 09:30:00 GMT

Vietnam’s rise in global rankings for startup ecosystems reflects a strong rebound after a challenging few years.

Vietnam rose five places to 50th globally in the 2026 Global Startup Ecosystem Index Report released by StartupBlink, marking the country’s strongest performance since the annual rankings began in 2017. The improvement places it among the fastest-rising startup ecosystems in Southeast Asia and comes as new investment data points to renewed momentum following a difficult period for global venture funding.

Yet while the ranking signals growing international recognition, it also raises a broader question: what is driving Vietnam’s startup rise, and can the country sustain the momentum amid intensifying competition for technology investment and global capital?

Recent data suggests the answer lies not only in startup activity itself, but also in broader shifts across the innovation landscape. Private capital investment is recovering, foreign investors are returning after a period of caution, startup activity is spreading beyond traditional hubs, and sectors such as AI are attracting growing attention. At the same time, investors are becoming more selective, placing greater emphasis on startups with stronger business models and clearer growth prospects.

Gaining momentum

According to StartupBlink, Vietnam and Thailand recorded the strongest growth momentum among countries ranked between 21st and 50th globally; a segment identified as the most dynamic tier of startup ecosystem development. It noted that countries in this group are often growing more quickly than leading startup ecosystems, where expansion naturally slows due to maturity.

At the city level, Ho Chi Minh City recorded one of Vietnam’s most significant gains, climbing 12 places to rank 98th globally and entering the world’s Top 100 startup ecosystems for the first time. The southern city also strengthened its position in several sectors, particularly fintech and blockchain, ranking 60th and 70th globally, respectively. As Vietnam’s largest economic center, Ho Chi Minh City has benefited from a concentration of venture capital firms, financial institutions, technology companies, and digital consumers, helping it emerge as the country’s leading startup hub.

Beyond Ho Chi Minh City, the latest rankings also suggest startup activity is gradually expanding outside of Vietnam’s traditional innovation centers. The northern port city of Hai Phong entered StartupBlink’s global Top 1,000 startup ecosystems for the first time, joining Hanoi, Ho Chi Minh City, and central Da Nang city among the country’s recognized startup locations. While still in the early stages of development, Hai Phong’s emergence reflects broader efforts by local authorities to support innovation and technology-oriented industries.

StartupBlink also recorded increased participation by Vietnamese organizations and local authorities in its ecosystem partner network, including the Vietnam National Startup Support Center (NSSC), the Da Nang and Hai Phong City People’s Committees, the Startup Innovation Hub of Ho Chi Minh City, and Startup Hai Phong.

Its improved ranking comes as Vietnam continues to position technology and innovation as important pillars of long-term economic development. Policymakers have increasingly emphasized digital transformation, high-value manufacturing, and innovation-led growth as the country seeks to strengthen its position in regional and global supply chains.

However, rankings alone provide only a partial picture of ecosystem development. While startup activity and institutional support have expanded, the long-term strength of an innovation ecosystem also depends on the availability of capital, the ability of startups to scale, and the development of viable exit opportunities for founders and investors. Recent investment data indicates progress in several of these areas.

Capital to return selectively

Vietnam’s startup ecosystem is showing signs of recovery after several years marked by weaker global venture activity and tighter financing conditions. According to the Vietnam Innovation Private Capital Report 2026, released jointly by the National Innovation Center (NIC), the Vietnam Private Capital Agency (VPCA), and Boston Consulting Group (BCG), the country’s private capital market recorded its strongest rebound in years in 2025.

The report revealed that total private capital investment reached approximately $4.5 billion across 149 deals, with private equity (PE) rising to a record $4 billion and venture capital (VC) rebounding to $509 million. The recovery followed a period of adjustment in global technology investment, during which higher interest rates, inflationary pressures, and slowing economic growth prompted investors to become more cautious about startup valuations and funding strategies.

According to the report, Vietnam’s rebound broadly reflected wider recovery patterns across Southeast Asia, where investor activity has gradually strengthened after several years of volatility. However, the latest funding cycle differs from earlier periods of rapid expansion, when abundant liquidity supported aggressive growth strategies across the region’s startup ecosystem.

Although total venture capital increased by 28 per cent in 2025, deal volume declined to 103, suggesting investors are concentrating funding into fewer but larger investments. The report noted that investment activity remained relatively stable in Pre-A and Series A rounds, while later-stage financing strengthened, contributing to the highest level of C+ deals since 2022.

The trend points to a more selective investment environment, with investors placing greater emphasis on profitability, operational performance, and business sustainability rather than expansion at any cost.

The number of private equity investors more than doubled to 48; the highest level recorded in nearly a decade, while US and European investors made a notable return. Singapore continued to maintain a strong position in Vietnam’s venture capital ecosystem, reflecting its role as a regional financial and startup hub.

The return of international investors is particularly important for Vietnam’s startup sector because foreign capital has historically played a significant role in supporting startup growth and scaling. In addition to funding, international investors often bring operational expertise, market access, and global networks that can help Vietnamese startups expand beyond the domestic market.

The recovery in investment activity may therefore reflect growing confidence not only in Vietnam’s startup ecosystem, but also in the country’s broader economic outlook and policy environment.

Next challenge

Alongside recovering investment activity, sectoral shifts are beginning to reshape Vietnam’s startup landscape. According to the report, AI-related investment increased 13-fold between 2023 and 2025, reaching an all-time high and emerging as one of the fastest-growing areas of investor interest.

The increase reflects broader global momentum around AI adoption, while also highlighting growing confidence in Vietnam’s engineering talent base and digital economy. Beyond AI, the report identified healthcare, retail, and climate technology as among sectors attracting stronger investment attention in 2025. Investor interest in those sectors reflects longer-term structural trends, including urbanization, changing consumer behavior, sustainability requirements, and rising healthcare demand.

Those developments suggest Vietnam’s startup ecosystem is gradually broadening beyond sectors that previously dominated startup activity, including fintech, e-commerce, and digital consumer platforms. While those segments remain important, investors are increasingly exploring opportunities tied to industrial upgrading, climate adaptation, and technology-enabled services.

At the same time, stronger financing pathways are becoming increasingly important as startups seek to scale. The report pointed to the role of deeper capital markets and stronger exit mechanisms in supporting startup growth over the coming years. In particular, the report highlighted an improving outlook for Vietnam’s public markets, including a stronger IPO pipeline expected in 2026 and 2027, which could help expand financing options for fast-growing companies.

According to the report, Vietnam is expected to benefit from its planned FTSE Emerging Markets reclassification next September, while potential future inclusion in MSCI Emerging Markets indices could eventually unlock larger institutional capital flows.

Despite the positive momentum, several challenges remain. Access to later-stage funding remains more limited than in more mature startup ecosystems, while competition for highly-skilled technology talent, particularly in AI and deep technology, continues to intensify.

Commercialization capacity, RD capabilities, and stronger links between startups, universities, and larger enterprises also remain areas requiring further development. Strengthening those foundations may become increasingly important as Vietnam seeks to move beyond early-stage ecosystem growth toward building globally-competitive technology companies.

Vietnam’s rise in the StartupBlink rankings signals growing momentum, but the longer-term challenge will be converting that momentum into a deeper innovation ecosystem capable of producing stronger technology companies and more durable economic value.

VET-Linh Tong

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

Nearly 540 additional enterprises set to face mandatory greenhouse gas inventories

Tue, 16 Jun 2026 23:30:00 GMT

The issuance of the 2026 updated list contributes to fulfilling Vietnam's international climate commitments, specifically the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement.

The number of facilities required to conduct greenhouse gas (GHG) inventories under the updated list scheduled for issuance in 2026 is 2,705. This represents an increase of 539 facilities compared to the 2024 list.

The Ministry of Agriculture and Environment has submitted a draft Decision to the Ministry of Justice for appraisal. This draft outlines the updated list of sectors and facilities emitting GHG that must perform mandatory inventories for 2026.

Under current regulations, the list is updated every two years. This particular update is based on the Prime Minister's Decision No. 13/2024/QĐ-TTg, dated August 13, 2024.

The issuance of the 2026 updated list aims to enhance the effectiveness of state management regarding GHG reduction. It also contributes to fulfilling Vietnam's international climate commitments, specifically the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement.

The updated list will also serve as the foundation for conducting GHG inventories, reducing emissions, and determining facility-level emission reduction targets for the 2026-2030 period. Furthermore, it supports businesses in meeting new requirements and standards of international markets regarding emissions, thereby helping maintain Vietnam’s global competitiveness.

Notably, the results of these corporate GHG inventories will serve as the basis for allocating emission quotas, enabling businesses to participate in the domestic carbon market.

The list of emitting facilities subject to mandatory reporting covers sectors including industry and trade, construction (incorporating both construction and transport sectors), and agriculture and environment.

The list has been revised to align with the State management functions of recently merged ministries (the Ministry of Agriculture and Rural Development merged with the Ministry of Natural Resources and Environment; the Ministry of Construction merged with the Ministry of Transport).

Vneconomy-Hằng Anh

Hanoi offers financial support for needy households to switch to green vehicles

Tue, 16 Jun 2026 07:30:00 GMT

Eligible individuals will receive support covering 100% of the green vehicle's value, capped at a maximum of VND20 million ($760).

The 17th Hanoi People's Council on June 15 officially passed a resolution outlining policies to support the transition of road vehicles from fossil fuels to clean energy and to encourage the use of public transportation across the city.

A standout feature of the Resolution is the provision of direct cash assistance for individuals from poor households who transition to green vehicles.

Regarding the specific subsidy level, eligible individuals will receive support covering 100% of the green vehicle's value, capped at a maximum of VND20 million ($760). Each individual from poor households is entitled to this support only once, applicable to one motorbike or moped.

In terms of implementation, the city budget will provide the funds, which will be distributed by commune-level People's Committees via bank transfers to recipients. This support policy will remain in effect from the date the Resolution becomes active until December 31, 2027.

Furthermore, the Resolution details incentives to promote the use of public passenger transport, including buses and urban railways (metro). Specifically, the city will offer free bus fares (excluding tourist-specific bus routes) for passengers traveling within Ring Road 1 from January 1, 2027, through December 31, 2027.

Additionally, the city will provide free fares on all bus routes (excluding tourist buses) and urban railway lines across the entire city during national holidays, the Lunar New Year (Tet), and special socio-political events of the country and the capital. This free-fare policy for special occasions will be effective until December 31, 2030.

Vneconomy-Song Hoàng

Wind power a viable energy source

Mon, 15 Jun 2026 09:00:00 GMT

The clear potential Vietnam’s wind power development under discussions at the APAC Wind Energy Summit in Hanoi.

Vietnam aims to have 26-38 GW of onshore wind power and about 6 GW of offshore wind power by 2030 under the National Power Development Plan VIII (PDP8). This is not only a crucial step in its energy transition and the realization of its commitment to net-zero emissions by 2050, but also opens up significant opportunities for the development of its renewable energy industry, attracting investment and enhancing national energy self-sufficiency.

Mr. Bui Vinh Thang, Vietnam Country Manager at the Global Wind Energy Council (GWEC), which recently organized the APAC Wind Energy Summit 2026 in Hanoi, said that with the objectives outlined in PDP8, Vietnam can be considered one of the leading countries in wind power development compared to others in the region (excluding China and India), in both onshore and offshore. “Of course, the prerequisite is that we must realize the set objectives,” he added.

Wind potential

The Politburo recently issued Resolution No. 70-NQ/TW on ensuring national energy security until 2030, with a vision to 2045, which is considered a more significant step forward by cementing objectives, mechanisms, and solutions, closely adhering to reality and directly addressing the urgent issues of the energy sector in general.

According to the GWEC, Vietnam possesses enormous offshore wind power potential, estimated at around 600 GW. Notably, most projects can be developed using fixed-foundation technology thanks to its relatively shallow continental shelf, making investment costs more competitive compared to countries that use floating-foundation technology, such as South Korea, Japan, and Taiwan (China). For onshore wind power, the target of reaching 26-38 GW by 2030 is ambitious but entirely feasible if there is a smooth policy mechanism along with the promotion of domestic supply chain development and strengthened links with the FDI sector. “Given Vietnam’s double-digit electricity demand growth, wind power will play a particularly important role in the nation’s energy structure,” Mr. Thang believes.

Mr. Alessandro Antonioli, Country Representative in Vietnam at Copenhagen Infrastructure Partners (CIP), added that Vietnam possesses significant competitive advantages in wind power development thanks to its favorable natural resources, including high wind speeds, stable wind quality, and a long coastline.

Furthermore, domestic demand is a major driving force. “A rapidly-growing economy like Vietnam needs a more stable, affordable, and sustainable energy source in the long term,” he said. “In particular, the trend of shifting manufacturing supply chains from Europe and the US to Vietnam is driving increasing demand for green energy.”

This presents both challenges and opportunities for Vietnam to develop its wind power industry if appropriate support policies, a clear legal framework, and a strategy to enhance the capacity of its domestic supply chain are in place. “Vietnam also has a considerable advantage due to its many experienced offshore oil and gas companies, creating an important foundation for the future development of offshore wind power,” he added.

As a leading wind turbine supplier from India, the Suzlon Group sees Vietnam as a highly-promising market in the Asia-Pacific region. Mr. Ngo Tien Dat, Country Manager of Suzlon, affirmed that Vietnam’s fast-growing economy and young workforce were among the reasons Suzlon Energy chose Vietnam as its first regional hub in Southeast Asia.

Next steps for the future

Following a period of strong growth fueled by the Feed-in Tariff (FiT) mechanism, Vietnam’s wind power industry is entering a new development cycle with high expectations from international investors. However, to realize this potential, the market still needs more decisive steps regarding policies, pricing mechanisms, and the legal framework to strengthen business confidence.

Mr. Thang said the GWEC has been present in Vietnam since 2018 - precisely when the wind power market began its rapid acceleration. He himself had followed the industry for many years prior and witnessed the entire development process of onshore, nearshore, and offshore wind power in the country.

Given Vietnam’s double-digit electricity demand growth, wind power will play a particularly important role in the nation’s energy structure.

Mr. Bui Vinh Thang, Vietnam Country Manager, Global Wind Energy Council (GWEC)

The biggest turning point for the industry, he believes, was the FiT mechanism issued in 2018. Though not a perfect mechanism, it created a huge boost, attracting a strong flow of investment into the wind power sector. Thanks to this, Vietnam now has over 5.5 GW of onshore and nearshore wind power in operation, supplying electricity to the national grid.

However, after a period of rapid growth, the market began to slow down as there was no clear alternative mechanism to FiT from 2021 to early 2024. During this time, many investors were in a holding pattern due to the lack of a legal framework and specific regulations for the next phase.

The international context has also created many difficulties for the global wind power industry. Russia - Ukraine tensions, high interest rates, the lingering consequences of the Covid-19 pandemic, and cost pressures forced many businesses to restructure their investment portfolios. According to Mr. Thang, now is a time in which the global wind power market is undergoing a “market correction” - a process of market adjustment. Some investors have withdrawn from Vietnam to focus on other priority markets.

However, since the end of 2024, the market has begun to see more positive signs as the government and the Ministry of Industry and Trade have continually issued new mechanisms and policies to address difficulties in the industry. Many important documents have been issued.

“The GWEC greatly appreciates the efforts of the Vietnamese Government over the past two years to build a new policy framework for the wind power industry,” Mr. Thang said. “Though the current policy system is not yet perfect, it is relatively sufficient for the market to begin operating again. Several projects have been launched, with the offshore wind power sector making initial progress as regulatory authorities begin granting permits for project surveys. Investors closely following the market have seen the opportunity for a new development cycle.”

From the perspective of international investors, Mr. Antonioli said CIP maintains strong confidence in the long-term potential of the Vietnamese market. “Vietnam’s sustainable electricity demand remains a crucial foundation for investors to continue pursuing renewable energy projects,” he added. “However, delays in policy planning over the past three years have eroded the confidence of many investors. There were high expectations for resolving bottlenecks in a series of renewable energy projects, but the process has been slower than expected. In addition, delayed payments to some renewable energy producers have significantly impacted market sentiment.”

He argued that now is the time for Vietnam to take more decisive action, especially with a centralized coordination mechanism for the renewable energy sector. Policy tools such as Direct Power Purchase Agreements (DPPAs) need to be promoted more strongly to accelerate project implementation.

However, the most important thing for international investors is clarity and predictability in the legal framework. “Investors need to know clearly the licensing timeline, the electricity pricing mechanism, and especially the Power Purchase Agreement (PPA) template,” Mr. Antonioli emphasized. “The current PPA template still does not fully meet the necessary conditions for mobilizing international capital.”

If these bottlenecks are removed, he added, Vietnam can fully enter a phase of larger-scale wind power development, playing a crucial role in ensuring energy security and promoting the green transition in the years to come.

VET-NGOC LAN

Qualitative adaptation to new development requirements

Sat, 13 Jun 2026 10:00:00 GMT

Policymakers, local leaders, academics, and representatives from Vietnamese and international organizations share their perspective on how science, technology, innovation, and human-centered governance can drive sustainable growth, stronger competitiveness, and greater national resilience.

Professor Nguyen Quang Thuan, Member of the Central Theoretical Council and former President of the Vietnam Academy of Social Sciences

The documents from the 14th National Party Congress began to define, in relatively comprehensive terms, the core components of Vietnam’s development model in the new era, from the development context, objectives, perspectives, and operational mechanisms to key tasks and strategic breakthroughs.

In particular, the framework focuses on four key priorities. First, Vietnam’s new development model places people at the center, with national self-reliance serving as the foundation. Science and technology, innovation, and digital transformation are identified as the principal drivers, while sustainable development and improvements in people’s quality of life are regarded as the highest objectives. Notably, economic development must go hand-in-hand with social progress, equity, and comprehensive human development.

At the same time, reforming the development model is framed within both international and domestic contexts. The documents also outline key solutions for refining the new model, particularly through the continued improvement of institutions to support rapid and sustainable development.

Second, strong advances in science and technology must go hand-in-hand with human development, particularly the cultivation of high-quality human resources. This is regarded as a decisive factor in raising labor productivity, strengthening competitiveness, and enhancing the long-term autonomy of the economy.

Third, infrastructure development continues to be identified as a key component of reforming the growth model. The concept of infrastructure extends beyond traditional socio-economic systems to include infrastructure supporting science and technology, innovation, and digital transformation. This will provide an important foundation for creating new growth drivers for the economy.

Fourth, greater emphasis must be placed on the role of businesses, particularly the private sector. In the new development context, effectively leveraging the business community, especially private enterprises, will enable Vietnam to accelerate the application of science and technology, innovation, and digital transformation in production and business activities, thereby improving competitiveness and generating new growth momentum for the economy.

Associate Professor Vu Trong Lam, Deputy Editor-in-Chief of the Communist Review and Director-General and Editor-in-Chief of the National Political Publishing House

In the process of shaping Vietnam’s national development model for the new era, there are two fundamental and decisive issues that require particular attention in determining the country’s long-term development position and competitiveness.

First, Vietnam must fundamentally transform its “national development logic” as the world transitions into a new mode of development. In the 21st century, however, particularly under the impact of AI, big data, digital technologies, and the green economy, the foundations of national competitiveness are shifting rapidly toward knowledge, technology, data, and innovation capacity. This presents Vietnam with a fundamental challenge: moving from a development model based on exploiting existing advantages to one centered on creating new advantages. This represents a qualitative shift in development thinking.

In particular, Vietnam’s strategic task in the coming period is to move decisively from a mindset of “development based on existing resources” to one of “creating new development capabilities.” Under this model, science, technology, and innovation must become the primary engines of growth; data must be recognized as a strategic resource; high-quality human resources must form the core of national competitiveness; and innovative enterprises must become the center of the national development ecosystem.

Second, Vietnam must pursue breakthrough reforms in institutions and national governance capacity amid profound changes in the global development landscape. In particular, three institutional priorities deserve special attention in the coming period: building sufficiently flexible institutions capable of adapting to the rapid pace of change in science, technology, and the digital economy; establishing a data-driven and real-time national governance model to replace fragmented, slow-moving, and procedure-heavy management systems; and creating a coordinated development mechanism between the State, the market, and society, in which businesses serve as the center of innovation while people remain the central actors in development.

Reforming the national development model today is, in essence, not merely about changing the pattern of growth but about reconstructing the entire operational foundation of the country in the digital era. This is not only a development imperative, but also a strategic requirement for Vietnam to realize its ambition of becoming a high-income developed nation by 2045.

Mr. Nguyen Tuan Anh, Deputy Secretary of the Can Tho City Party Committee

Can Tho has identified science and technology, innovation, and digital transformation as the central drivers for shifting its growth model from extensive to intensive development, with the goal of improving growth quality and enhancing economic competitiveness. Since the beginning of the current term, the city has established a relatively comprehensive political and legal foundation to implement this development orientation in a coordinated and systematic manner.

In terms of its development model, Can Tho is prioritizing rapid and sustainable economic growth based on science and technology; the construction of synchronized infrastructure systems; the development of high-quality human resources; institutional reform; and the promotion of innovation and startup ecosystems.

In recent years, the city has worked to implement the contents of Politburo Resolution No. 57-NQ/TW and has gradually developed a science-, technology-, and innovation-driven development model through a series of concrete measures.

First, Can Tho has focused on building and strengthening its innovation ecosystem by expanding cooperation with agencies and institutions to foster stronger links between universities, research institutes, and businesses. This is considered a critical foundation for promoting research, technology transfer, and the commercialization of scientific and technological products.

Second, the city has established a Science, Technology, and Innovation Development Fund to support research, startups, and the development of new technologies.

Third, it has gradually developed “grand challenges” tied to practical development needs, while introducing mechanisms for commissioning and assigning scientific research tasks. This model has begun to deliver positive results by aligning research more closely with local socio-economic development needs.

Fourth, the city is prioritizing high-tech and digital agriculture, in line with the Mekong Delta’s role as Vietnam’s agricultural and agro-processing hub.

Fifth, Can Tho is developing a data center-based growth model and digital operating systems for the Mekong Delta region, helping advance digital transformation in governance, administration, and regional economic development.

Sixth, the city is accelerating the development of an innovation center, with the ambition of becoming a regional hub for innovation.

Seventh, it is gradually establishing concentrated information technology parks and high-tech zones, laying the groundwork for attracting technology enterprises, promoting innovation, and supporting the growth of the digital economy. According to the city, these models have already demonstrated encouraging early results in practice.

In terms of implementation, Can Tho has experimented with multiple approaches while developing a regional-scale innovation and startup center. Initially, the model was largely State-led, then the city later expanded to an innovation-oriented joint stock company model to mobilize additional social resources. At the same time, Can Tho has increasingly entrusted businesses with taking the lead in certain innovation and technology development initiatives.

Mr. Hoang Minh Cuong, Vice Chairman of the Hai Phong City People’s Committee

Hai Phong views reforming its development model as more than simply adjusting the economic structure or adding digital transformation programs. At its core, it represents a fundamental shift in development thinking, the organization of the economy, urban governance, and the creation of new growth drivers.

The city has chosen a development model built on science and technology, innovation, and digital transformation, with people at the center, knowledge and technology as the foundation, innovation as the driving force, modern governance as a competitive advantage, and strategic development spaces as platforms for realizing new growth ambitions. This is not a simple replacement of an old model with a new one, but rather an upgrade of the city’s “operating system” to a higher level.

Hai Phong has identified four strategic pillars for this new model. First, economic restructuring based on high technology. The city is shifting from a mindset of “attracting manufacturing” to one of “building a high-tech industrial ecosystem.” This includes developing green, eco-friendly port-industrial urban areas connected in both the physical and digital worlds. Factories will not only be large-scale but also “smart factories” deeply integrated into global value chains and leveraging advantages in technology, productivity, and innovation.

Second, the digital economy and smart logistics. The digital economy is not merely a technological trend but also a strategic requirement for Hai Phong to maintain and strengthen its international competitiveness. In the digital era, logistics competitiveness depends on the ability to optimize data flows. Accordingly, Hai Phong will prioritize the data economy, smart seaports, the blue economy, and large-scale logistics hubs linked to high-speed rail and aviation networks.

Third, data-driven urban governance. The city aims to be governed through real-time data using digital twins and AI, enabling authorities to conduct smart analysis, make early forecasts, and deliver faster, more accurate, and transparent decisions, thereby gradually transforming urban governance capacity.

Fourth, expanding pilot applications of scientific and technological advances, new technologies, and smart solutions so residents can benefit from higher-quality healthcare, education, and cultural services, while expanding development opportunities, preserving heritage values, and building a globally livable city.

To realize this vision, Hai Phong is focusing on six decisive groups of solutions: institutional breakthroughs; strategic infrastructure development; placing businesses at the center of the new development model; building a substantive innovation ecosystem; ensuring people remain the focus and ultimate beneficiaries of digital transformation; and pursuing sustainable development while preserving and promoting the city’s unique identity.

Mr. Nguyen Tuan Anh, Deputy Secretary of the Lai Chau Provincial Party Committee

There are four key priorities related to the application of science and technology, innovation, and digital transformation today.

First, regarding institutions, institutional reform is often implemented through a top-down approach. However, in practice, many applications with the greatest potential to deliver tangible benefits to people tend to emerge from real needs at the grassroots level, or from the bottom up. One effective solution has been the use of controlled pilot models. Yet many localities continue to face challenges due to the lack of sufficiently clear mechanisms to safeguard proactive innovation, particularly in terms of authority, experimentation space, implementation timelines, and regulatory flexibility for localities willing to think boldly, act decisively, and take responsibility.

Second, people are the ultimate beneficiaries of digital transformation, making user experience a critical consideration. Technologies supporting governance, such as monitoring, screening, tracing, evaluation, and forecasting, are all important. However, these alone are insufficient, as many still function mainly as tools for high-level management rather than directly improving productivity and efficiency at the grassroots level.

While data is critically important, user experience may be even more so. At present, many large language models and AI technologies are focused primarily on developing “smart assistants” for government agencies, while insufficient attention is being given to optimizing social resources by supporting the digital economy for micro, small, and medium-sized enterprises.

Third, internal knowledge and synchronized, interconnected data systems are essential in applying science and technology, innovation, and digital transformation. At the same time, local characteristics and cultural identity must be respected and preserved. This means maximizing citizen satisfaction and benefits without eroding the distinct identity of each locality.

Finally, it is essential to create an environment that encourages and nurtures innovative ideas in the application of new technologies. If society focuses only on fear and hesitates to experiment with and adopt emerging technologies, it will be difficult to achieve breakthrough development.

Associate Professor Nguyen Ba Chien, Director of the Academy of Public Administration and Governance and Member of the Central Theoretical Council

A country seeking rapid and sustainable development must have a sound philosophy for both its development model and national governance. In this context, philosophy can be understood as a system of core and foundational principles that guide the thinking and actions of stakeholders throughout the development process. In terms of national governance, it refers to the foundational perspectives shaping how a country is organized, governed, and developed over the long term.

Accordingly, three groups of philosophies deserve particular attention. First, the philosophy of development objectives. This group comprises four core elements. The first is a people-centered philosophy, in which citizens are simultaneously the center, the subject, the objective, and the driving force of development. Ultimately, all policies and development models must aim to improve quality of life and create conditions for comprehensive human development. This is followed by a philosophy of comprehensive and inclusive governance, ensuring that no sector is overlooked and no group is left behind in the development process.

At the same time, there is the philosophy of rapid development, aimed at seizing opportunities, strengthening national competitiveness, and narrowing the development gap with advanced economies. Finally, sustainable development must ensure harmony between economic growth, social progress, environmental protection, and long-term human development.

Second, the philosophy of development drivers. The first key driver is knowledge-based development, followed by technology-driven development, innovation-led development, and finally data-driven development.

In particular, technology development plays an especially important role in today’s context. However, knowledge-based governance remains indispensable to ensuring the efficiency, quality, and sustainability of development. Technology can only deliver its full value when supported by a strong foundation of knowledge and appropriate governance capacity.

Third, the philosophy of development content, which includes five key priorities. The State must play a development-enabling role, creating a favorable environment and incentives for economic actors. Institutions must stay ahead of development, paving the way for reform and innovation. The spirit of innovation must be continually sustained to adapt to rapid changes in the global environment. Development should follow an open approach, strengthening domestic and international connectivity and cooperation. The ability to adapt flexibly to global and economic shifts will be essential to ensuring long-term sustainable development.

Ms. Sinwon Park, Director of the International Labour Organization (ILO) Country Office for Vietnam

Regarding the economic development model, I believe there are three key dimensions that Vietnam should prioritize in the coming period, with the most fundamental being the need to place people at the center of development.

Specifically, economic development policies should not focus solely on growth, but must be closely linked with social policies and social protection systems to ensure that all citizens can benefit from development gains. This is also one of Vietnam’s key challenges today: how to sustain productivity and strengthen economic competitiveness while building an effective, inclusive, and sustainable social protection system.

At the same time, greater efforts are needed to improve people’s access to healthcare, education, and broader development opportunities. This will also serve as an important foundation for achieving long-term sustainable development goals.

Amid today’s rapid transformation, creating sustainable employment opportunities and ensuring gender equality must also be prioritized. Through these efforts, the State can gradually improve social welfare quality while enabling all citizens to participate in and adapt to the ongoing economic transition. At the same time, a more inclusive approach is needed to strengthen the resilience of the workforce against future shocks and emerging challenges.

This will require raising awareness and strengthening workers’ knowledge and skills to ensure fair and sustainable access to new development opportunities. Alongside this, institutions should continue to be improved, accountability among stakeholders enhanced, and conditions created for businesses and workers to proactively engage and adapt to potential disruptions during the development process.

In addition, expanding access to employment opportunities during the current transition is essential, particularly in strengthening social protection systems to shield people from socio-economic risks. Economic development must go hand-in-hand with social and human development. Labor markets should also be expanded through appropriate policies that help workers access new employment opportunities and improve job quality.

In this context, science and technology and AI will play an especially important role in boosting labor productivity, improving workforce quality, and strengthening labor market capacity. At the same time, they will provide a foundation for more effective governance and stronger institutional capacity, helping Vietnam take a more proactive approach as it enters a new era of development.

Mr. Nguyen Thanh Nhan, Standing Deputy Secretary of the An Giang Provincial Party Committee and Chairman of the An Giang Provincial People’s Council

For many years, the growth model of most localities in Vietnam, including An Giang province, relied primarily on traditional drivers such as land, natural resources, and low-skilled labor. This model has played an important role in promoting economic growth, ensuring national food security, improving living standards, and laying the foundation for regional development over an extended period.

However, in the current development context, these traditional growth drivers are increasingly revealing their limitations. In An Giang, it has become increasingly clear that the old growth model is approaching its limits. Under the province’s 2026 growth scenario, agriculture, forestry, and fisheries are projected to grow by only around 3.5-3.8 per cent, while industry, construction, and services will need to expand by 10-14 per cent to achieve the target of more than 10 per cent gross regional domestic product (GRDP) growth.

This highlights a clear reality: traditional growth drivers are no longer sufficient to generate faster economic progress for the locality in the years ahead.

Against this backdrop, An Giang views reforming its local growth model as more than simply adjusting economic indicators; it requires a fundamental transformation in the way growth is generated. This means shifting from a resource-based growth model to one driven by knowledge and data; from extensive to intensive development; from low-cost competition to competition based on technology, governance quality, and productivity; and from growth driven mainly by output to growth based on added value, productivity, and innovation.

Through practical implementation, An Giang has found that without synchronized development in digital infrastructure, logistics, data systems, digital human resources, and sufficiently-strong mechanisms and policies to encourage investment and strengthen regional connectivity, reforming the growth model will be extremely difficult, not only for An Giang but for the entire Mekong Delta region in the years to come.

The province therefore recommends that the central government continue supporting the development of coordinated mechanisms, policies, and investment frameworks to enable localities to effectively implement new growth models suited to the demands of rapid and sustainable development in the next phase.

Professor Hoang Van Cuong, Vice Chairman of the Vietnam Economic Association and former Vice Rector of the National Economics University

Reforming Vietnam’s national development model should be conducted around five key components: national governance, economic development, social development, environmental governance, and foreign affairs and national defense.

First, reforming the national governance model. This begins with restructuring the State apparatus and reallocating State power. Vietnam is currently advancing efforts to streamline and clarify institutional structures. However, a key challenge is how to coordinate power and inter-agency collaboration to avoid fragmentation and ensure smooth, effective operations. At the same time, greater decentralization and delegation of authority are needed, together with a more balanced allocation of power in the coming period.

Institutional and legal reform, as well as governance methods, must also evolve. This requires shifting from a management mindset to one centered on development facilitation; from process- and behavior-based management to governance focused on objectives and outcomes; from State intervention to a development-enabling State; and from rigid administration to flexible and adaptive governance. Mechanisms are also needed to encourage officials to adapt to change and foster innovation, while building governance systems grounded in data, digital technologies, and integrated digital ecosystems.

Second, reforming the economic development model. This requires modernizing the socialist-oriented market economy framework, including the roles of economic actors, market-based operating mechanisms, and institutional frameworks for the digital, green, and circular economies. Only through reforming this framework can Vietnam establish an appropriate foundation for a new national growth model.

Third, reforming the socio-cultural development model. This includes transforming education, training, and human resources development, shifting the focus from knowledge acquisition to capability building and creativity. In healthcare, the emphasis should move from treatment-centered systems toward preventive care, alongside stronger coordination between public and private healthcare and accelerated digital transformation.

Fourth, reforming the environmental governance model. Environmental, social, and governance (ESG) standards may present challenges, but if implemented effectively, they can become powerful tools to enhance competitiveness, deepen integration, attract investment, and transform sustainability criteria into development resources. At the same time, Vietnam should shift from resource extraction toward green resource governance focused on carbon reduction and the circular economy, while increasing technology adoption and climate resilience.

Fifth, reforming foreign affairs and national defense. In foreign policy, Vietnam needs to move beyond a narrow focus on economic gains and investment attraction toward enhancing national standing, strategic capacity, and self-reliance. Investment attraction, international cooperation, and connectivity should always strengthen domestic capabilities and reinforce strategic autonomy. Meanwhile, national defense must also adapt to the realities of deeper international integration and be closely linked with advances in modern science and technology.

VET-

Politburo issues specific resolution on foreign-invested sector

Sat, 13 Jun 2026 08:00:00 GMT

By 2045, the foreign-invested economic sector is projected to account for 25% of the total social investment capital and contribute approximately 30% to the national GDP.

Party General Secretary and State President To Lam has officially signed Resolution No. 10-NQ/TW, dated June 8, 2026, of the Politburo regarding the development of the foreign-invested economic sector.

The Resolution sets a general objective to transform Vietnam into a leading, highly competitive destination for medium and long-term foreign capital flows. Specifically:

Targets for the 2026–2030 period include $200–300 billion in registered capital and $150–200 billion in disbursed (implemented) capital; 75% of foreign investment to come from developed economies; increased Fortune 500 corporations investing in Vietnam by 30%; at least three world-leading technology corporations to establish headquarters and Research and Development (RD) centers in the country; a localization rate of 45–50% in key industries; approximately 10,000 domestic enterprises to participate in the supply chains of foreign-invested firms; increased proportion of Vietnamese personnel holding technical, managerial, and research positions in high-quality foreign investment projects; and 10% of industrial parks nationwide being "eco-industrial parks" and successfully achieving a stock market upgrade (according to MSCI rankings).

By 2045, the foreign-invested economic sector is projected to account for 25% of the total social investment capital and contribute approximately 30% to the national GDP. This will play a pivotal role in establishing Vietnam as a leading hub for manufacturing, services, and innovation in Asia, and as a developed, high-income nation.

Tasks and solutions

To realize this objective, the Politburo requires the comprehensive and decisive implementation of breakthrough solution groups.

First, a group of general tasks focusing on improving institutions and the business environment, enhancing the quality of human resources and infrastructure. Investment incentives and support mechanisms will shift from traditional incentives to mechanisms linked to project performance; special investment procedures and preferential policies will be applied to key projects and areas such as international financial centers, free trade zones, and innovation hubs.

Second, renewing the orientation for attracting foreign investment by sector, field, and location. Priority will be given to core areas such as: electronics industry, semiconductors and digital devices; artificial intelligence, big data, Internet of Things and blockchain; advanced biotechnology and biomedicine. Emphasis will be placed on attracting projects and investors with foundational and core technologies, committed to research and design activities, establishing innovation centers, data centers, investing in energy reserves and commodity reserves for regional and international markets.

Third, promoting green economy, digital economy, technology transfer, and strengthening spillover effects and linkages with the domestic economy. Foreign-invested enterprises will be encouraged and required to commit to technology, research and development, technology transfer, training Vietnamese personnel, increasing domestic value-added, and developing local suppliers. At the same time, a national program for developing domestic suppliers will be built and implemented; a national database and platforms for supplier connectivity, industry clusters, and long-term cooperation mechanisms between foreign investors and domestic enterprises will be established.

Fourth, innovating and improving the effectiveness of investment promotion. Investment promotion will be fundamentally renewed towards proactivity, focus, and priority, based on data, professionalism, substance, and long-term vision. A database of strategic investors, strategic partners, leading corporations, major financial institutions, large investment funds, and key innovation centers will be developed, with specialized approaches tailored to each market, industry group, and location.

Fifth, enhancing the effectiveness of state management over the foreign-invested economy.

Sixth, improving mechanisms and policies related to foreign indirect investment. Developing medium- and long-term capital markets in a transparent, modern, safe, and sustainable manner, reducing dependence on short-term credit markets; urgently building and putting into operation international financial centers.

Vneconomy-Anh Nhi

Vietnam mandates product traceability for high-risk goods

Sat, 13 Jun 2026 02:00:00 GMT

The regulation aims to strengthen product origin verification and enhance consumer protection by improving transparency throughout the supply chain.

Vietnam’s Ministry of Industry and Trade has issued a Circular introducing mandatory traceability requirements for high-risk products and goods under its regulatory authority.

The regulation aims to strengthen product origin verification and enhance consumer protection by improving transparency throughout the supply chain.

To support implementation, the ministry has launched a centralized product traceability platform, VeriGoods, accessible at verigoods.vn. The system serves as a national database for receiving, storing, managing and connecting traceability information submitted by businesses, while also generating identification codes for product verification and information sharing.

Since development began in late December 2025, the VeriGoods platform has authenticated more than one million product codes as of the end of May 2026. Authorities say the system has established an important foundation for the nationwide rollout of the new requirements from July 1, 2026.

Through the platform, consumers can access basic product information free of charge, including product names, images, manufacturers or distributors, business addresses, brands, production batch numbers, serial numbers and expiry dates where applicable.

Businesses will be required to register products and submit traceability data before goods are placed on the market. For imported products, additional information on importers and official distributors in Vietnam must also be provided.

Under the implementation roadmap, traders must register accounts, obtain identification codes and verify product information from July 1, 2026. Full traceability compliance will become mandatory from January 1, 2027, before covered products can be legally distributed in the market.

VnEconomy-Vũ Khuê

Ground broken for first wind power plant in northern mountainous region

Fri, 12 Jun 2026 09:00:00 GMT

The project is scheduled for completion and is expected to enter commercial operation by the third quarter of 2028.

The People's Committee of Son La Province in Vietnam's northern mountainous region, in collaboration with the Northern Wind Energy JSC, on June 11 held a groundbreaking ceremony for the Risen Phu Yen Wind Power Plant.

The project has a total capacity of 80 MW and represents an investment of VND2,941 billion (nearly $114 millino). It is located within the administrative boundaries of Muong Coi and Phu Yen communes in the northwestern province.

This is the first wind power project to break ground in the country's Northern mountainous region, marking a significant milestone in tapping into the Northwest's renewable energy potential. Spanning approximately 46.4 ha, the plant has an operational lifespan of 50 years.

The project is scheduled for completion and is expected to enter commercial operation by the third quarter of 2028.

Once operational, the plant is projected to contribute over 250 million kWh annually to the national power grid.

Vneconomy-Hằng Anh

More recommendations for Vietnam's national development

Fri, 12 Jun 2026 04:00:00 GMT

As Vietnam introduces new growth drivers into its economy, it must also pay due regard to structural bottlenecks requiring resolution.

Vietnam has delivered remarkable economic results over the past three decades, not only by sustaining strong growth over an extended period but also by lifting millions of people out of poverty in a relatively short time; an achievement few countries have managed to accomplish simultaneously.

However, traditional drivers such as export-led growth, low-cost labor, and capital expansion through FDI and public investment are unlikely to sustain the country’s ambitious growth targets in the next stage of development. Vietnam must generate greater value from the same pool of resources. This underscores the need to transition toward a growth model driven more by productivity, technology, and higher value-added activities.

New model takes shape

The good news is that Vietnam has already established a relatively clear direction for the next phase of development. At the center of the country’s economic restructuring agenda is the push to make science and technology, innovation, and digital transformation new engines of growth. This is not only the right strategic choice amid growing global uncertainty and competition but also reflects a long-term, sustainable vision for economic development.

On the institutional front, Vietnam has taken important steps to establish a legal framework for emerging technologies such as AI, while advancing regulations on data protection. Most notably, Politburo Resolution No. 57-NQ/TW has elevated science and technology, innovation, and digital transformation to a central role in the country’s new growth model.

The first “seeds” of this transformation have already begun to take root. Major domestic companies such as FPT, Viettel, and Vingroup are increasing their investment in AI, semiconductors, data, and core technologies, while gradually commercializing technology products and solutions developed by Vietnamese talent. At the same time, the innovation startup ecosystem has become increasingly vibrant, particularly in Ho Chi Minh City. These developments are opening up new growth drivers for the economy, especially as Vietnam begins to encounter the limits of its previous development model.

Yet to sustain long-term growth and move to a higher stage of development, Vietnam must address several structural challenges.

First is the shortage of sufficiently-strong mid-sized enterprises capable of becoming drivers of growth. This gap deserves close attention, as an economy is unlikely to develop sustainably if it relies solely on a handful of large conglomerates or millions of micro-enterprises. Vietnam needs to cultivate a strong middle tier of companies capable of absorbing technology, scaling production, integrating more deeply into global supply chains, and gradually strengthening national competitiveness.

Second, the gap between research and commercialization remains substantial. The intellectual property ecosystem, particularly within the private sector, requires much stronger reinforcement. At the same time, links between businesses, universities, research institutes, and the government remain insufficiently robust to create a fully functioning innovation ecosystem. Vietnam needs not only policies that encourage collaboration, but also a comprehensive ecosystem that enables stakeholders to cooperate more effectively in research, application, and technology commercialization.

Third is the challenge of energy infrastructure. In the years ahead, Vietnam’s power system will need to modernize at a faster pace to meet new growth demands, particularly as the economy becomes increasingly dependent on data, AI, and energy-intensive technology industries. The issue extends beyond ensuring adequate supply; it also concerns system stability, resilience, and the long-term competitiveness of the broader economy. Major policy directions such as Politburo Resolution No. 70 on energy security indicate that Vietnam recognizes the strategic importance of this sector.

Finally, Vietnam must strengthen the capabilities of its small and medium-sized enterprises (SMEs). In high-income economies, SMEs often serve as the “backbone” of economic activity due to their ability to innovate, scale, and diffuse productivity gains across production ecosystems. For Vietnam - an economy still in transition - improving the capacity of this segment will be decisive not only for growth but also for technological self-reliance and long-term economic resilience.

Additional suggestions

What, then, is the role of large corporations in this process? Major companies will serve as pioneers, introducing new technologies, AI, and innovative business models to the market. But for these technologies to generate broad-based impact, SMEs must be capable of absorbing the knowledge, technology, and resources involved, enabling innovation to spread throughout the wider economic ecosystem.

In addition, given its deep integration into global production networks, Vietnam must continue strengthening connections between domestic and foreign-invested enterprises (FIEs) as well as with global supply and value chains. This is not merely about expanding market access; it is also an opportunity for Vietnamese businesses to acquire new technologies, improve governance standards, and gradually enhance long-term competitiveness.

Another issue that deserves particular attention is RD, as well as strategic investment in innovation. Compared with regional economies such as Thailand, Malaysia, China, and South Korea, Vietnam’s RD spending as a share of GDP remains relatively modest, at below 1 per cent, while many peer economies surpassed this threshold long ago. This suggests that Vietnam still has considerable room for improvement if it aims to boost productivity and move up higher-value segments of global production chains.

At the same time, Vietnam’s target of raising RD investment to around 2 per cent of GDP in the coming years signals growing recognition of the pivotal role science, technology, and innovation will play in sustaining long-term growth. However, the challenge is not solely about increasing the scale of investment. More importantly, RD spending must be strategic, targeted, and sustained over time. Resources for RD should be closely aligned with national priorities rather than dispersed across too many disconnected and inefficient areas.

UNDP recommendations

Based on these observations, we would like to offer several recommendations. The first is to strengthen the capabilities of domestic enterprises while deepening links with the foreign-invested sector. Vietnam has achieved significant success in attracting FDI, but in the next stage the goal should extend beyond attracting additional foreign capital to improving the quality and developmental impact of these investments.

This will require supporting domestic businesses in upgrading their technological capabilities and meeting higher standards in quality, productivity, and technical performance so they can participate more deeply in higher value-added segments of global value chains. At the same time, local enterprises should be given stronger support to scale up operations, upgrade technologies, and improve their competitiveness in regional and international markets.

The second recommendation is to narrow the gap between research and commercialization. This will require seamless links across research, financing, commercialization, and market expansion. Vietnam should also continue strengthening its intellectual property framework, enhancing the role of universities, and developing more effective technology commercialization models.

The third recommendation is to ensure the synchronized development of foundational infrastructure, particularly energy infrastructure. A stable, reliable, and reasonably-priced energy system will directly contribute to improving the competitiveness of the economy.

If these priorities are implemented effectively, Vietnam will strengthen competitiveness, sustain economic growth, and ensure that development remains inclusive. Ultimately, the goal of development is not only economic growth but also improved well-being, safety, and quality of life for people. Through this inclusive development journey, the UNDP hopes to continue accompanying Vietnam in the process.

(*) Ms. Francesca Nardini is Deputy Resident Representative of the United Nations Development Programme (UNDP) in Vietnam.

VET-Francesca Nardini (*)

Hanoi mulls proposal for high-rise pig farms

Thu, 11 Jun 2026 23:00:00 GMT

The project is designed as a closed-loop chain with modern production lines, spanning from breeding to commercial hogs.

A proposal from BAF Vietnam Agriculture JSC to invest in a concentrated, high-tech livestock complex in the capital city has been submitted to the Hanoi People's Committee.

The project features a multi-story building model integrated with a multifunctional slaughterhouse and food processing facility. The proposed project is being researched for implementation in Bat Bat, Da Phuc, and Binh Minh communes.

The City People's Committee has tasked the Department of Agriculture and Environment to take the lead, coordinating with relevant departments and local authorities to guide and support the enterprise in finalizing the project proposal. At the same time, the department will conduct a comprehensive assessment of the high-rise, high-tech farming model’s suitability regarding urban planning, industry development trends, technical infrastructure, land use, environmental impact, biosafety, and existing legal regulations.

According to Chairman of the Board of BAF Vietnam Truong Sy Ba, the project is designed as a closed-loop chain with modern production lines, spanning from breeding to commercial hogs.

"Compared to traditional farming methods, this model saves land, reduces feed and labor costs, and helps alleviate environmental pressure," said Mr. Ba.

BAF has proposed including the project in the category of State land recovery for lease to investors and requested a "green lane" (fast-track) mechanism for administrative procedures to shorten implementation time.

BAF stated that approximately 25-30% of treated wastewater would be reused for cleaning, cooling, and deodorizing within the farming area. The remaining wastewater and solid waste would be utilized for irrigation, fertilization, and soil improvement. The enterprise also plans to recover exhaust gases for power generation.

Under the proposed scale, approximately 15-20 ha would be dedicated to farming activities, while the remaining 200-250 ha would be used for circular agriculture development.

According to the Department of Agriculture and Environment, the city’s current hog population stands at nearly 1.4 million, supplying over 450,000 tons of live-weight pork annually. The city is trending toward gradually phasing out small-scale farming in residential areas while encouraging the development of concentrated, high-tech, circular, and organic livestock farming.

Vneconomy-Chu Khôi

A new development model from the viewpoint of Hai Phong city

Thu, 11 Jun 2026 10:20:00 GMT

Hai Phong is highly attuned to the need for a new development model to address limitations and take the country forward.

The need to reform Vietnam’s development model based on science and technology, innovation, and digital transformation is becoming more urgent than ever in order to create breakthrough momentum in the digital era. This spirit is consistently reflected in Politburo Resolution No. 57, the documents from the 14th National Party Congress, and Conclusion No. 18-KL/TW dated April 2, 2026, issued by the Party Central Committee on the socio-economic development plan, national finance, public debt borrowing and repayment, and medium-term public investment for the 2026-2030 period, associated with Vietnam’s double-digit growth target. In this context, the transition to a new growth model based on science and technology, innovation, and digital transformation has been identified as the primary driver of development.

Most recently, at a ceremony celebrating Vietnam Science, Technology, and Innovation Day on May 18, Prime Minister Le Minh Hung reaffirmed that science, technology, and innovation are “vital factors” and the “golden key” to realizing the country’s development aspirations in the new era.

Expanded development space

Against this backdrop, the recent national scientific conference on “Reforming Vietnam’s Development Model Based on Science, Technology, Innovation, and Digital Transformation” in Hai Phong carried not only theoretical significance in supplementing and refining development thinking for the country’s new stage, but also profound practical and contemporary importance by helping clarify major orientations, mechanisms, policies, and breakthrough solutions for promoting rapid and sustainable development on the basis of science, technology, innovation, and digital transformation. As a major port city, northern Vietnam’s maritime gateway, an industrial center, transportation hub, and a key growth pole of the Northern Key Economic Region, Hai Phong has continued over many years to affirm its role as a regional growth engine through strong and relatively stable economic performance.

In particular, from July 1, 2025, following its merger with Hai Duong province, Hai Phong entered a new phase of development with greater scale, enhanced strategic importance, stronger development potential, and more abundant resources, while also assuming greater responsibilities in supporting the country’s development in the new era.

With an area of nearly 3,200 sq km, a population of more than 4.6 million, and an economy approaching $30 billion, Hai Phong now ranks third nationwide in economic scale. In 2025, the city recorded gross regional domestic product (GRDP) growth of 11.81 per cent, ranking it second nationwide and the highest among centrally-governed cities. Notably, Hai Phong is the only locality in Vietnam to sustain double-digit GRDP growth for eleven consecutive years.

Its economic structure has continued shifting toward industrialization and modernization, with industry-construction and services accounting for nearly 90 per cent of GRDP. Alongside economic development, social welfare, healthcare, and education continue receiving attention, while national defense and security remain firmly maintained.

In 2026, despite facing numerous challenges, the city’s socio-economic performance has maintained positive momentum. First-quarter GRDP rose 11.21 per cent, ranking it third nationwide and first among Vietnam’s six centrally-governed cities. State budget revenue exceeded VND78 trillion ($3 billion), equal to 40.3 per cent of the annual target assigned by the central government.

FDI inflows were estimated at nearly $1.3 billion, up 76.8 per cent year-on-year, bringing the total number of FDI projects in the city to 1,044, with combined registered capital exceeding $44 billion. Total export turnover reached approximately $18.3 billion, up 26.2 per cent year-on-year, while cargo throughput at ports stood at nearly 59 million tons, up 11.6 per cent.

Alongside socio-economic development, Hai Phong has also focused on implementing Politburo Resolution No. 57 under the principle of the “six clarities” and has achieved a number of important initial results. The city currently ranks third nationwide in the Provincial Digital Transformation Index (DTI) and fourth in the Provincial Innovation Index (PII).

Notably, according to a Ministry of Home Affairs’ announcement on May 11, Hai Phong has continued to rank first nationwide in both the Public Administration Reform Index (PAR Index) and the Satisfaction Index of Public Administrative Services (SIPAS), reaffirming its position as a leading locality in administrative reform, digital transformation, and the building of a two-tier local government model focused on efficiency and effectiveness.

At the same time, the Hai Phong City People’s Council and People’s Committee have issued six resolutions and four decisions to implement special mechanisms and policies on science, technology, and innovation under Resolution No. 226 from the 15th National Assembly on piloting special mechanisms and policies for Hai Phong’s development.

Piloting new models

Based on its development experience, Hai Phong has identified that in the coming period it will not only strive to become the country’s leading modern industrial, seaport, and logistics center, but also position itself as a growth pole driven by knowledge, science and technology, innovation, and digital transformation, while becoming a pioneer in reforming development models, strengthening modern governance capacity, and improving growth quality.

To realize this goal, the city has set ambitious targets for the 2026-2030 period, including maintaining average annual GRDP growth of at least 13 per cent and striving for 14 per cent; increasing the digital economy’s contribution to GRDP to over 35 per cent by 2030; and building Hai Phong into Vietnam’s international center for marine science and technology training, research, and application.

However, alongside the demands for rapid and sustainable growth, practical challenges remain that require further study and refinement, ranging from institutions and science and technology policies to mobilizing resources for innovation, attracting and utilizing scientific talent, and developing high-quality human resources. The objective is to ensure that science, technology, innovation, and digital transformation genuinely become key drivers and breakthroughs for socio-economic development. These are also major issues that the Party General Secretary and central leaders have closely directed in recent years.

In this context, hosting the national scientific workshop in Hai Phong carried not only professional significance but also reflected the connection between the central government’s strategic thinking and local development realities. It also demonstrated the central government’s attention to and expectations for Hai Phong’s role, position, and development potential within the country’s new development model.

With its strengths as a seaport, industrial and logistics center, and a locality deeply integrated into the global economy, Hai Phong is considered well-positioned to lead pilot programs for new development models, governance mechanisms, digital infrastructure, smart ports, smart logistics, and innovation ecosystems linked to high-tech industries.

It hopes to continue receiving support from central agencies and ministries, cooperation from other localities, and, in particular, valuable recommendations, strategic insights, and practical experience from experts and scientists to help refine development thinking, strengthen governance capacity, and realize the city’s development ambitions in the new era. At the same time, Hai Phong affirms that it will continue creating favorable conditions for scientists and experts to implement research projects and pilot models in the locality.

VET-Dr. Le Ngoc Chau, Member of the Party Central Committee, Secretary of the Hai Phong City Party Committee

Balance between growth goals and human resources

Thu, 11 Jun 2026 04:00:00 GMT

As it goes about identifying and introducing a new development model, Vietnam must weigh growth goals against workforce and population issues.

To achieve double-digit growth during the 2026-2030 period and become a high-income country by 2045, Vietnam needs to proactively adopt a development model suited to its practical conditions and the new economic context.

In this process, a key objective is to transform challenges into drivers of development, turning existing bottlenecks and limitations into opportunities for breakthroughs. This requires Vietnam not only to effectively leverage its existing advantages but also to strongly promote innovation, develop high-quality human resources, enhance science and technology capabilities, and strengthen the economy’s self-reliance.

Lessons from elsewhere

Japan is among the world’s most successful examples of a country reaching high-income status. From 1965 to 1995, it experienced an extraordinary three-decade economic boom, with average annual nominal GDP growth of 14.68 per cent. Widely known as Japan’s economic miracle, this period transformed the country into one of the world’s largest economies.

Yet after three decades of rapid expansion, Japan entered a prolonged period of stagnation. Between 1996 and 2025, average nominal GDP stood at around $4.76 trillion, or only 86 per cent of its 1995 level ($5.5 trillion). A key reason was the steady decline in the workforce, coupled with weak productivity growth.

Looking back over six decades, Japan achieved extraordinary economic success in its first 30 years but then struggled to reverse the stagnation in the following 30 years. According to projections by Japan’s National Institute of Population and Social Security Research, the country’s population may shrink to around 50 million by 2100, down 51 per cent from its 2010 peak, and to just 10 million by 2200, a decline of as much as 92 per cent.

Like Japan, South Korea and China have also faced prolonged fertility decline since the 1990s, creating mounting challenges for economic growth, labor supply, and long-term development.

Japan and other countries’ experience offers important lessons for Vietnam. First, Vietnam should avoid a development model based on short-term explosive growth followed by prolonged stagnation. Economic growth must be sustainable, balancing economic expansion with workforce resilience and long-term population stability.

Second, reliance on large-scale immigration to offset labor shortages may become increasingly difficult in the second half of the 21st century. Many high-income economies, including Singapore, the US, Canada, and Australia, have used immigration to sustain growth. However, global labor supply is projected to decline after 2053, intensifying competition for migrant workers and making this model harder to sustain.

Third, sustainable human development must be viewed as the most important foundation for long-term national development. The experiences of Japan, South Korea, China, and other high-income economies show that even advanced economies with strong technology and high GDP per capita may face long-term decline if persistently low fertility erodes population replacement over decades.

RD workforce and investment

Economic growth in every country is closely tied to the quality and scale of its human resources. In particular, for Vietnam to achieve rapid and sustainable development in the coming decades, human resources for RD will play a pivotal role.

A country’s GDP per capita is influenced by multiple factors, including RD workforce density (the number of RD personnel per 1,000 workers), RD investment as a percentage of GDP, and the effectiveness of financial markets in supporting startups and venture capital, to name just a few. Among these, RD workforce density is considered the most influential factor, accounting for as much as 52.65 per cent of a country’s GDP per capita.

In practice, most countries with GDP per capita above $30,000 during the 2024-2025 period recorded RD workforce density levels of 9 or higher. Vietnam’s RD workforce density currently stands at only 1.5, while GDP per capita is approximately $4,500. Compared to many countries in the region and globally, this gap remains substantial.

According to current estimates, if Vietnam aims to become a high-income country by 2045, its RD workforce density will need to increase from the current level of 1.5 to around 5.83. This means the country’s total number of RD personnel would need to rise from approximately 75,665 at present to nearly 294,000 by 2045.

In addition to developing RD human resources, investment in RD as a percentage of GDP is the second-most important factor influencing a country’s GDP per capita. This is considered a foundational resource for promoting innovation, improving labor productivity, and strengthening the economy’s long-term competitiveness.

Many developed economies currently allocate substantial shares of GDP to RD. Notably, South Korea invests around 4.95 per cent of GDP in RD, the US 3.45 per cent, and Japan approximately 3.44 per cent.

In contrast, Vietnam currently spends only about 0.5 per cent of GDP on RD; significantly lower than developed economies and leading innovation-driven countries. Countries with high levels of RD investment also tend to have higher labor productivity, stronger technological capabilities, and higher GDP per capita. This underscores the particularly important role of science, technology, and innovation in generating new drivers of economic growth.

Five solutions

The greatest risk to Vietnam’s development in the 21st century is unsustainable human development, which could in turn create long-term economic and social risks. In particular, the biggest bottleneck to maintaining average GDP growth of around 10 per cent annually over the course of the next two decades is the risk of a shortage of high-quality human resources in science, technology, and innovation. Without addressing this challenge, the economy may face the risk of falling into the “middle-income trap” and struggle to generate new growth drivers.

To achieve the goal of becoming a high-income country and ensuring rapid, sustainable development during the 2026-2045 period, Vietnam should focus on implementing several key solutions in a synchronized manner.

First, it should decisively uphold the principle that “sustainable human development is the most important foundation for rapid and sustainable development,” while ensuring the restoration of replacement-level fertility by 2030 (2.1 children per woman), or no later than 2035. Long-term population forecasts indicate that if fertility remains around 1.3 children per woman over an extended period, Vietnam’s population could fall to around 46 million by 2200, approximately 22.5 million by 2300, and just 11 million by 2400.

Second, Vietnam should formulate a ten-year plan (2026-2035) to gradually raise the retirement age. As the workforce is projected to begin declining sharply after 2035, increasing the retirement age to around 65 after that period would significantly supplement the country’s labor supply. According to estimates, this measure could add approximately 5 million people to the working-age population during 2036-2100, thereby creating an important basis for sustaining annual GDP growth of 10 per cent.

Third, Vietnam should review labor productivity growth targets for the 2026-2045 period to ensure GDP growth of 10 per cent annually. Currently, Vietnam’s labor productivity growth target for 2026-2030 is set at around 8.5 per cent per year, while actual growth during 2021-2025 was only about 5.1 per cent annually. Vietnam therefore needs to redesign labor productivity targets for each phase and closely align them with strategies for science and technology development, digital transformation, and innovation in order to secure long-term GDP growth objectives.

Fourth, in 2026, Vietnam should immediately formulate and implement a plan to increase its RD workforce from 75,665 people in 2025 to 294,000 by 2045. This is a critical prerequisite for increasing the country’s RD workforce density from 1.5 in 2025 to 5.83 by 2045. Without a breakthrough in RD human resources, the goal of becoming a high-income country by 2045 will not be achievable.

Finally, Vietnam should formulate in 2026 and begin implementing from 2027 a plan to increase total social expenditure on RD, in line with the roadmap for expanding RD workforce density. Particular emphasis should be placed on increasing RD investment from the business sector, given its decisive role in technology commercialization, innovation promotion, and strengthening the economy’s competitiveness.

VET- Professor Nguyen Thien Nhan, former Politburo Member and former Deputy Prime Minister

Ha Tinh approves $2bln Vung Ang III LNG Power Plant project

Wed, 10 Jun 2026 23:30:00 GMT

The project, with a total installed capacity of 1,500MW, expected to support national energy security.

Authorities in Ha Tinh Province have, central Vietnam, approved investment policy and investors for the Vung Ang III LNG Power Plant, a major energy project with a total investment of more than VND51.43 trillion (approximately $2 billion).

Located in Hoanh Son Ward, the project will have a total installed capacity of 1,500 megawatts (MW) and is expected to become one of the key energy facilities in Vietnam’s North Central region, supporting national energy security and the implementation of the country’s Power Development Plan VIII.

The approved investor consortium comprises PetroVietnam Power Corporation (PV Power), Vietnam Machinery Installation Corporation (Lilama) and Thailand-based B.Grimm Power Public Company Limited.

The project will occupy approximately 51.7 hectares of land and nearly 16 hectares of sea surface area. The plant will consist of two LNG-fired generating units with a combined capacity of 1,500 MW.

With an operating term of 50 years from the date of land and water allocation, the project is scheduled to be developed in phases. The first 750-MW generating unit is expected to begin commercial operations in the first quarter of 2031, while the second is planned to enter operation in the second quarter of 2032.

VnEconomy-Nguyễn Thuấn

A people-centered development model

Wed, 10 Jun 2026 09:30:00 GMT

Professor Nguyen Xuan Thang, Politburo Member in the 13th Tenure and Chairman of the Central Theoretical Council, delivered a speech at the national scientific conference theming “Reforming Vietnam’s Development Model Based on Science, Technology, Innovation, and Digital Transformation," held in Hai Phong city on May 26, stressing people-centric principles for shaping a new development model.

After 40 years of “Doi Moi” (Economic Renewal), shaped by both domestic experience and adaptation to global trends, Vietnam has gradually developed a distinctive development model grounded in its steadfast commitment to national independence and socialism. This model places people at the center, promotes inclusive and sustainable development, and seeks to ensure that no one is left behind. In this framework, citizens are not only beneficiaries of development but also active participants in creating its outcomes.

At the same time, this model has defined Vietnam’s unique development path in the 21st century, reflected in the balance between continuity and innovation; stability and growth; rapid development and sustainability; economic progress and social equity; independence and self-reliance alongside international integration; a modern market economy with a socialist orientation; and modernization combined with the preservation of national identity and cultural values.

Beyond the limits

At the heart of any development model lies its growth model. For many years, Vietnam’s growth relied primarily on capital, natural resources, and low-skilled labor. However, at the 14th National Party Congress, the Party called for a decisive shift away from a model driven mainly by capital, resources, and cheap labor toward one powered by science and technology, innovation, digital transformation, high-quality human resources, and modern governance capacity.

Yet a new growth model answers only part of the equation: how the economy grows, what its main drivers are, and the role of economic actors. It does not fully address broader questions such as growth for what purpose, for whom, and according to which social values. Nor does it determine the place of human development, happiness, citizen satisfaction, culture, society, and the environment in the development process.

For this reason, countries are increasingly focusing on defining broader development models. The ultimate aim of development is not limited to GDP size, GDP per capita, growth rates, or labor productivity, but also includes improving quality of life, expanding opportunities, and enhancing people’s well-being.

A development model cannot be separated from the political and social model, as the latter shapes the values and long-term goals of development. In Vietnam, this is reflected in a socialist model built on three pillars: a socialist-oriented market economy; a socialist rule-of-law State of the people, by the people, and for the people; and socialist democracy under the leadership of the Party.

Vietnam’s growth model, development model, and socialist model are often viewed as three concentric circles, closely linked and mutually reinforcing. Reforming the development model therefore goes far beyond changing the economic growth model. It also provides a foundation for further refining Vietnam’s socialist model and shaping its long-term development path.

In an increasingly complex and unpredictable world, reforming the development model is also seen as essential for Vietnam to move beyond the limitations of outdated growth thinking, create new drivers of development, and strengthen the country’s strategic autonomy and resilience.

Shaping a new model

In the new development model, people are simultaneously the objective, resource, and most important internal driver of development. This requires the comprehensive development of a new generation of Vietnamese citizens in the 21st century - individuals with patriotism, civic awareness, respect for the rule of law, digital skills, innovative thinking, lifelong learning capacity, and a strong sense of cultural identity and contribution.

Inclusive, people-centered development is identified as a guiding principle of rapid and sustainable growth. Development goals will therefore go beyond reducing income poverty to addressing multidimensional poverty and ensuring equitable access to education, healthcare, employment, and digital skills.

Within this framework, investment in education, science, healthcare, culture, and social welfare is viewed as a strategic investment in the future. Culture, meanwhile, must become a genuine regulator of development, an internal resource, and a source of national soft power. It plays an important role in fostering social trust, ethics, identity, creativity, and national adaptability.

In the digital era, culture not only helps shield society from fragmentation and distortions, but also creates new opportunities for cultural industries, the creative economy, tourism, media, and the promotion of Vietnam’s global image.

At the same time, green growth is no longer optional but a necessity. However, the green transition must be implemented in a socially-equitable way, ensuring that adjustment costs do not disproportionately burden low-income groups, small businesses, or vulnerable communities.

The new development model, built on science and technology, innovation, and digital transformation, is envisioned as one that fully integrates cultural, social, and human development with economic growth, social progress, equity, environmental protection, and adaptation to major global shifts such as digital and green transitions, energy transformation, workforce upgrading, and new governance models.

At the same time, Vietnam must deepen international integration in both scope and quality, gradually building a new development ecosystem to support the country’s next phase of growth.

Turning institutions into competitiveness

The documents of the 14th National Party Congress set out an important principle: to “strengthen strategic autonomy, establish a new development model, use development to maintain stability, and use stability to promote rapid and sustainable growth while improving people’s well-being and happiness.”

This idea of “development for stability, stability for development” is seen as a defining feature of Vietnam’s development approach. Development builds national strength and creates conditions for safeguarding the country, while stability provides the secure environment needed for innovation and long-term progress.

In an increasingly fragmented and competitive world, strategic autonomy is viewed as essential to sustainable development. This extends beyond institutional and macro-economic independence to include autonomy in technology, data, energy, food, defense, security, and foreign affairs.

At the same time, strategic autonomy does not mean isolation. Rather, it calls for deeper international integration that is smarter, more diversified, and supported by stronger domestic capabilities.

Throughout this process, the Party’s leadership is regarded as the decisive factor in safeguarding socialist orientation and guiding reform. This leadership must go beyond sound policymaking to include stronger strategic foresight, better institutional capacity, more effective implementation, and stronger oversight.

Development leadership must be accompanied by improved governance capacity, more modern and transparent institutions, stronger democracy, intensified anti-corruption efforts, and greater accountability across the governance system.

In the new development model, the State is expected to act as a socialist rule-of-law State that enables development, serves citizens and businesses, and governs with integrity. Rather than replacing the market, the State should proactively build institutions, infrastructure, data systems, and a fair competitive environment while ensuring social equity and addressing market failures.

This also requires a shift from traditional State administration toward development governance, creating more room for innovation and experimentation. In this approach, institutions are no longer merely tools of management but a source of national competitive advantage.

Against this backdrop, discussions at the recent national scientific conference in Hai Phong are expected to deepen around reforming Vietnam’s development model through science, technology, innovation, and digital transformation.

A key priority is identifying both the opportunities and challenges these forces present, particularly in linking economic growth with social progress, equity, human development, and environmental protection, while also improving productivity, governance, and living standards.

Additionally,serious attention must be given to challenges related to institutional quality, technology absorption, workforce capabilities, digital infrastructure, data systems, cybersecurity, and the risk of falling behind or widening inequalities during digital transformation.

Another priority is learning from international experience in development models, drawing lessons from both successes and failures that may offer useful guidance for Vietnam.

Equally important is clarifying the relationship between Vietnam’s growth model, development model, and socialist model; establishing criteria to assess the new development framework; and proposing solutions to strengthen institutions and the broader ecosystem for rapid and sustainable growth.

Beyond defining development priorities, the next challenge is implementation: ensuring that science and technology, innovation, and digital transformation become measurable drivers of growth across industries, localities, businesses, and public institutions.

Further research is also needed on how to design institutions that encourage innovation while managing risks effectively, and how to build evaluation systems that go beyond GDP growth to reflect productivity, quality of life, public service quality, social equity, cultural vitality, and national resilience.

VET-

Key components of a development model

Wed, 10 Jun 2026 04:00:00 GMT

Associate Professor Doan Minh Huan, Politburo Member and President of the Ho Chi Minh National Academy of Politics, made a concluding speech at the national scientific conference theming “Reforming Vietnam’s Development Model Based on Science, Technology, Innovation, and Digital Transformation," held in Hai Phong city on May 26, which identified the key components of a development model as well as matters in need of further consideration.

The outcomes from the national scientific conference are reflected not only in the number of reports and papers presented but also in the initial shaping of a relatively-systematic conceptual framework for the country’s development model in the new era, in which science, technology, innovation, and digital transformation serve as the foundation, central driving force, and key determinants of national governance modernization and the renewal of development approaches.

Clarifying the model

The conference further clarified the concept of a development model by distinguishing it from a growth model and placing it within the broader relationship with the overall development model of a social system, that is, as a socio-economic formation to be examined under the program reviewing 40 years of implementing the Platform for National Construction in the Transitional Period towards Socialism.

These three models may be likened to three concentric circles with close interconnections, in which the country’s development model possesses its own structure, function, and role, positioned within this framework of three concentric circles. The distinctions and interrelationships among these three models will provide an appropriate basis for defining the subject matter and scope of the project.

Many papers provided in-depth analyses of the context and urgent need to reform Vietnam’s development model as the country enters a new era, particularly amid the rapid advancement of science and technology, innovation, digital transformation, green transition, the development of new productive forces, intensifying strategic competition, and the growing global trend toward strategic autonomy.

In particular, to achieve the goal of becoming a high-income developed country by 2045, there is an increasingly urgent need to reform the national development model in a way that addresses not only the pace of development but also its quality and long-term sustainability.

Reforming the development model is not merely a matter of theoretical research; it also carries direct implications for strategic planning, policy-making, and implementation, ensuring coherence across short, medium, and long-term development.

Seven key elements

Based on assessments of current realities and the evolution of existing development models, many papers proposed a structural framework for Vietnam’s development model in the new era. While approaches varied in structure and categorization, there was broad consensus around seven core elements.

The first concerns the development vision and goals, together with governance mechanisms to realize them. Vietnam’s new development model should pursue rapid, sustainable, prosperous, and resilient growth.

The second is the development philosophy, centered on core values: people as the center and driving force of development; growth driven by knowledge, science, technology, innovation, cultural resources, and national aspiration; rapid development balanced with sustainability; modernization rooted in humanistic values; and deep international integration alongside independence and self-reliance.

The third concerns key actors within the model. The new framework calls for mobilizing the strength of society as a whole: the Party providing strategic leadership; the State enabling development through institutions and implementation; businesses serving as the center of innovation and knowledge commercialization; intellectuals and scientists generating new knowledge; citizens driving digital transformation while benefiting from and co-creating development.

The fourth element is governance, embedded within the modernization of national and local administration. This requires a shift from traditional administrative management toward data-driven, innovation-led governance, alongside digital government and greater integrity, transparency, and fairness.

The fifth relates to development resources and drivers. Beyond traditional factors such as capital, labor, and natural resources, the model must increasingly rely on science, technology, innovation, digital transformation, data, productivity, high-quality human resources, advanced institutions, culture, entrepreneurship, and deeper participation in emerging value chains. This also requires effectively mobilizing and connecting public and private, domestic and international resources.

The sixth concerns the model’s operating mechanism. The new framework must rest on enabling institutions, a modern market, an effective State, dynamic enterprises, a creative society, and data-driven governance.

And the seventh element concerns the pillars of the development model. Participants proposed different approaches, ranging from institutions, governance, the economy, culture, society, the environment, national defense, security, and foreign affairs.

In this sense, Vietnam’s development model in the new era may be viewed from multiple dimensions and perspectives. Yet participants shared a common goal of defining a coherent, integrated framework with clearly structured and interrelated components.

Proposed solutions

The papers, presentations, and discussions proposed a range of breakthrough solutions across multiple dimensions, including development-oriented institutions, enabling environments, new growth drivers, and ecosystems to support the effective operation of the development model. Governance-related solutions were also emphasized to ensure effective implementation in practice, backed by stronger execution discipline and measurable outcomes across sectors, industries, and localities.

Specific recommendations addressed economic and social development, human capital, demographic adaptation to population aging, labor market development linked to universal social protection, environmental sustainability, national defense and strategic autonomy, comprehensive security, deeper international integration, stronger global positioning, and the enhancement of soft power.

Many recommendations focused on ensuring that science and technology, innovation, and digital transformation genuinely become the central drivers of the new development model, laying the groundwork for new productive forces, new production methods, modernized national governance, and greater national competitiveness.

International experience was widely examined, with participants proposing ways to adapt suitable approaches while drawing lessons from both successes and failures abroad. Hai Phong’s experience was presented as a case study in transforming growth models and experimenting with new approaches to local governance based on science, technology, innovation, and digital transformation.

Delegates from Can Tho, Lai Chau, and An Giang provinces also shared valuable practical insights. Several papers further proposed implementation mechanisms tailored to Vietnam’s conditions, emphasizing consistency between policymaking and execution.

At the same time, the conference highlighted a number of major issues requiring deeper study. These include how science and technology can be translated into national productivity; how businesses can become genuine centers of innovation; how to develop science and technology and data markets; how to establish regulatory sandboxes for emerging sectors; and how to cultivate high-quality human resources in the AI era.

Participants also raised questions about preventing new forms of digital inequality, safeguarding data security, digital sovereignty, and technological autonomy, and balancing rapid growth with social equity, cultural identity, and sustainability. Another key challenge is how to integrate the latest advances in science, technology, and innovation into everyday life while effectively managing risks arising from technological change that is often advancing faster than forecasting capabilities.

Following the conference, the co-organizers will continue refining and systematizing its theoretical and practical foundations, translating outcomes into advisory reports and policy recommendations to support the formulation of the national development project and help shape Vietnam’s development model in the new era.

VET-

VietAgros 2026 showcases green agriculture and smart aquaculture technologies

Wed, 10 Jun 2026 02:30:00 GMT

The event bringing together businesses, experts and policymakers to promote innovation and sustainable development in agriculture and aquaculture.

The Vietnam International Agricultural Technology and Environmental Exhibition (VietAgros 2026) officially opened in the Mekong Delta’s Can Tho city on June 9, bringing together businesses, experts and policymakers to promote innovation and sustainable development in agriculture and aquaculture.

Held under the theme “Green Agriculture,” the three-day event is expected to serve as a platform for technology exchange, trade promotion and the dissemination of sustainable solutions for the agricultural sector, particularly aquaculture.

VietAgros 2026 features more than 200 booths from companies specializing in high-tech agriculture, aquaculture, breeding, animal feed and nutrition, veterinary products, food processing, environmental technology, machinery, automation and digital transformation.

Among the highlights are advanced solutions for the aquaculture industry, including environmental monitoring systems, smart farming technologies, digital pond management platforms, innovative nutrition products, water treatment technologies and low-emission production models.

The exhibition also showcases OCOP (One Commune One Product) goods, regional agricultural specialties and green economic development models from the Mekong Delta and other parts of Vietnam.

Organizers expect the event to help businesses strengthen brand visibility, expand market opportunities and establish new partnerships while enabling producers to access the latest technological advances.

A key feature of the event is a series of specialized seminars held throughout the exhibition.

VnEconomy-Chu Khôi

Property market expected to gain fresh impetus

Tue, 09 Jun 2026 23:35:00 GMT

As Vietnam strives to become a regional green finance hub, the demand for "green" real estate projects—characterized by energy efficiency and environmental friendliness—is expected to escalate in the near future.

In the coming period, the real estate market is expected to receive a significant boost driven by urban planning adjustments, massive infrastructure investment, and a refined regulatory framework. Strategic infrastructure projects, the Transit-Oriented Development (TOD) model, and landmark legislative changes are poised to create vast new "room" for development across the sector.

Speaking at the recently held seminar "Identifying Real Estate Financial Trends 2026," Dr. Vo Tri Thanh, Director of the Institute for Brand and Competitiveness Strategy, emphasized that a pivotal trend currently is the simultaneous effort by localities to review, adjust, and restructure their development master plans. Unlike previous approaches, current planning is viewed as a "development space" strategy, with infrastructure and real estate serving as its two core pillars.

Accompanying these master plans is a wave of infrastructure projects spanning not only transport but also digital networks, underground utilities, maritime, and aerial spaces, said Dr. Thanh. Notably, the TOD model—integrated with urban railway lines in Hanoi and Ho Chi Minh City and future regional rail networks—is expected to catalyze the property market while fostering the emergence of new industrial sectors.

Furthermore, regional connectivity policies, the vision for Ho Chi Minh City as a megacity, and the nationwide replication of specific special mechanisms are projected to bring transformative changes to the real estate landscape.

The market is also being increasingly influenced by the rise of green finance and the green economy. As Vietnam strives to become a regional green finance hub, the demand for "green" real estate projects—characterized by energy efficiency and environmental friendliness—is expected to escalate in the near future.

From a policy perspective, the expert noted that the market will be shaped by major amendments to the Land Law, Housing Law, Law on Real Estate Business, Law on Public Investment, and Law on Bidding.

In particular, he said, the development of a real estate identification system and the formation of a national real estate exchange promise to standardize data, enhance transparency, and mitigate market risks. Additionally, property taxes, transaction taxes, and market structural adjustments will remain critical focal points in the upcoming phase.

Vneconomy-Thanh Xuân

Strategic choice of development model

Tue, 09 Jun 2026 10:00:00 GMT

Mr. Nguyen Thanh Nghi, Politburo Member, Secretary of the Party Central Committee, and Chairman of the Central Commission for Policy and Strategy, delivered remarks at the recent national scientific conference on how Vietnam can redesign its development model to achieve high-income status by 2045.

As the Party and people intensify efforts to implement resolutions from the 14th National Party Congress, with the goal of transforming Vietnam into a developed, high-income, peaceful, independent, democratic, prosperous, civilized, and happy nation by 2045 while steadily advancing toward socialism, and as the Central Commission for Policy and Strategy leads the formulation of the “Reforming Vietnam’s Development Model Based on Science, Technology, Innovation, and Digital Transformation” project, for submission to the Party Central Committee at its third session, the national scientific conference on this theme was convened as an important academic forum to strengthen both the theoretical and practical foundations for strategic policymaking in the country’s new development phase.

Driving transformation

After nearly 40 years of “Doi Moi” (Economic Renewal), Vietnam’s development model has gradually evolved, been refined, and improved through successive stages, as reflected consistently in Party documents. Under the Party’s leadership, the country has achieved significant and historic accomplishments, laying a vital foundation for the next phase of development.

From a low-income economy, Vietnam has emerged as one of the world’s most dynamic and fastest-growing economies, ranking 32nd globally in GDP size in 2025 and among the world’s Top 15 trading nations. Income per capita has risen substantially, living standards have steadily improved, and Vietnam’s international standing and reputation continue to strengthen.

However, as the country enters a new development phase, the current growth model is revealing mounting limitations. Growth remains heavily dependent on capital, labor, and natural resource extraction, while productivity, quality, and competitiveness remain constrained. Innovation capacity and technological mastery also remain limited. At the same time, national and social governance, inter-sectoral coordination, and data-driven governance have yet to keep pace with the demands of digital development and the digital economy. Defense, security, foreign affairs, and international integration likewise require further reform to meet new development challenges.

Alongside these domestic constraints, the global environment is changing rapidly under the impact of emerging digital technologies. Breakthroughs in AI, big data, cloud computing, and the Internet of Things (IoT) are fundamentally reshaping production methods as well as models of national, sectoral, and corporate governance. Competition between countries increasingly depends on innovation capacity, technological sophistication, and the quality of human resources. As a result, science, technology, and innovation are no longer merely economic drivers, but have become the foundation of national competitiveness, strategic autonomy, and development security.

Major trends in science, technology, innovation, and digital transformation are profoundly reshaping development models, economic and social structures, governance approaches, and national competitiveness. The challenge is not merely adapting to change, but proactively creating new capabilities, growth drivers, and development spaces.

Against this backdrop, reforming Vietnam’s development model based on science, technology, innovation, and digital transformation is not only an objective necessity but a strategic choice that will shape the country’s future. This is not simply an adjustment of the development model, but a comprehensive transformation of the national development approach to generate new growth drivers, raise labor productivity and national competitiveness, and strengthen strategic autonomy and national resilience.

Primary drivers of a new development model

The documents from the 14th National Party Congress reaffirm the need to reform Vietnam’s development model under a modern, green, digital, and knowledge-based approach, with science, technology, innovation, and digital transformation serving as the primary drivers of rapid and sustainable growth. This vision also includes the development of a digital economy, digital society, and digital citizenship; the creation of a national innovation ecosystem; the establishment of high-tech and strategic industries alongside globally-competitive Vietnamese technology companies; the development of high-quality human resources; and the modernization, digitalization, transparency, and efficiency of national governance.

Party General Secretary and State President To Lam has repeatedly emphasized that Vietnam is standing before a historic opportunity to enter the “era of the nation’s rise.” In this new phase of development, Vietnam must fundamentally reform its development model by placing science, technology, innovation, and digital transformation at the core of growth, while building development on knowledge, technology, data, and the capabilities of the Vietnamese people. At the same time, the country must strengthen an independent and self-reliant economy integrated deeply and effectively into the global system.

This path is also seen as essential to realizing Vietnam’s aspiration of becoming a peaceful, independent, democratic, prosperous, civilized, and happy nation, where people enjoy prosperous and fulfilling lives and the country develops rapidly and sustainably while advancing steadily toward socialism.

In shaping a new development model, the first priority is to clarify the theoretical foundations of Vietnam’s development model for the new era; comprehensively assess the achievements, limitations, and bottlenecks of the current model; and identify emerging global trends and new requirements facing Vietnam.

A key priority is conducting a comprehensive review of Vietnam’s development model across different periods, clearly identifying achievements, limitations, bottlenecks, and their root causes, particularly institutional, technological, data-related, and human resource barriers. This also requires in-depth analysis of implementation outcomes and gaps between actual results and the goals established in Party and State documents across economic, social, cultural, environmental, defense, security, foreign affairs, and international integration policies.

At the same time, deeper analysis is needed of international developments and emerging trends, particularly technological competition, the green transition, digital transformation, rapid and sustainable growth requirements, and Vietnam’s 2045 development targets, in order to identify opportunities, development space, and challenges for the coming period.

Another major priority is proposing the philosophy, structure, and pillars of the new development model, while clarifying the central role of science, technology, innovation, and digital transformation in creating new growth drivers, enhancing labor productivity, strengthening competitiveness, and reinforcing national strategic autonomy.

At the same time, reforming the development model must deliver structural breakthroughs that ensure rapid, sustainable, inclusive, self-reliant, and strategically-autonomous growth, in which today’s development does not undermine the foundations for tomorrow or diminish resources for future generations.

Within this framework, all citizens must benefit from development outcomes, while economic progress must advance alongside cultural and social development, environmental protection, national defense and security, and stronger foreign relations and international integration.

A national scientific conference with the theme “Reforming Vietnam’s Development Model Based on Science, Technology, Innovation, and Digital Transformation,” co-hosted in Hai Phong on May 26 by the Central Commission for Policy and Strategy, the Hai Phong City Party Committee, People’s Council, and People’s Committee, the Ho Chi Minh National Academy of Politics, and the Central Theoretical Council, and co-organized by Communist Review, the National Political Publishing House, the Vietnam Economic Association, and Vietnam Economic Times / VnEconomy, attracted significant attention from leaders, managers, research institutions, policy-making bodies, the business community, domestic experts and scientists, and international delegates.

VET-

Hue proactively seeks green financial resources from Europe

Tue, 09 Jun 2026 08:30:00 GMT

The central city of Vietnam has a strong interest in learning about climate finance mobilization mechanisms, green bond development, carbon credits, and disaster risk insurance solutions—areas where Luxembourg possesses extensive expertise.

Through a series of business activities in Luxembourg and Belgium in early June 2026, authorities of Hue City, central Vietnam, have continued to bolster the city's economic diplomacy, expanding international cooperation in environmental protection, climate change response, and sustainable development.

A delegation from the Hue City People's Committee, led by its Permanent Vice Chairman, Mr. Hoang Hai Minh, attended the Luxembourg International Climate Finance Days 2026, held from June 3 to 6.

On the sidelines of the forum, Mr. Minh held working sessions with leaders from Luxembourg's Ministry of the Environment, Climate and Biodiversity, and Ministry of Finance, the Luxembourg Development Cooperation Agency (LuxDev), the Green Climate Fund (GCF), the Luxembourg Sustainable Finance Initiative (LSFI), WWF International, and various other development partners.

The city leader introduced Hue’s future development orientations, highlighting its green growth strategy, climate change adaptation, and nature-based development plans for the Tam Giang - Cau Hai lagoon system. He expressed a strong interest in learning about climate finance mobilization mechanisms, green bond development, carbon credits, and disaster risk insurance solutions—areas where Luxembourg possesses extensive expertise.

According to Mr. Minh, Vietnam and Luxembourg established a Strategic Partnership on Green Finance in 2024. Luxembourg remains one of the most active nations supporting Vietnam in developing green capital markets and green credit standards.

Prior to the Luxembourg forum, the delegation conducted a working visit to Belgium on June 1 and 2, at the invitation of LuxDev, WWF-Vietnam, and WWF-Belgium.

In Brussels, the delegation conducted field surveys of various eco-district and climate-adaptive urban models. Representatives from the Brussels municipal government introduced the "Tivoli" Eco-district, a hallmark model of nature-based solutions (NbS) designed to manage stormwater runoff, mitigate flood risks, and reduce the urban heat island effect.

The delegation also explored wetland management solutions at the Ganshoren marshes and the development model of King Baudouin Park, which harmoniously integrates public infrastructure, biodiversity conservation, and the enhancement of residents' quality of life.

During working sessions with WWF-Belgium, international experts shared extensive experience in ecosystem conservation, nature restoration, water resource management, and the creation of ecological corridors. They also discussed strategies to mobilize private sector participation in conservation and sustainable development programs.

Vneconomy-Nguyễn Thuấn

Hanoi strengthens connectivity with ASEAN cities

Tue, 09 Jun 2026 03:35:00 GMT

Strengthening cooperation among ASEAN cities is not only an inevitable necessity but also a crucial driver for realizing a resilient, creative, and sustainable ASEAN Community.

The future of ASEAN will be shaped by its cities—the converging hubs of resources, knowledge, technology, and innovation. Therefore, no city can achieve sustainable development if it remains outside regional cooperation networks.

This statement was highlighted by the Chairman of the Hanoi People’s Committee, Mr. Vu Dai Thang, during his opening speech at the ASEAN City Leaders Conference held in Hanoi on June 8.

The event, hosted by Hanoi on the sideline of the ASEAN Future Forum 2026, centered on the theme “Driving the Future through Smart, Sustainable, and Connected Cities.”

Mr. Thang emphasized that the presence of leaders, experts, and partners from across the region reflects the spirit of solidarity and a collective ASEAN aspiration to build prosperous, sustainable, and people-centered urban areas.

According to the Hanoi leader, ASEAN currently stands as one of the world’s most dynamic regions. Rapid urbanization is transforming cities into engines of economic growth, innovation, and regional integration. However, this progress comes with significant shared challenges, including climate change, infrastructure pressure, environmental pollution, and the urgent need for digital transformation to meet the rising quality-of-life demands of citizens.

Given this reality, the Hanoi leader asserted that strengthening cooperation among ASEAN cities is not only an inevitable necessity but also a crucial driver for realizing a resilient, creative, and sustainable ASEAN Community.

"The conference serves as a forum for cities to share experiences, exchange initiatives, and develop new cooperation models. Our goal is to collectively address common challenges while effectively harnessing the opportunities presented by the Fourth Industrial Revolution and the digital era,” said Mr. Thang.

Speaking of Hanoi’s development vision, he noted that with a history spanning over a thousand years, the capital consistently treasures and preserves its profound historical values and unique cultural identity. Simultaneously, the city is making robust efforts to transform into a greener, smarter, more modern, and more livable metropolis.

In this journey, Hanoi identifies digital transformation as a key driver for development. The city is actively advancing the development of a digital government, digital economy, and digital society. This includes the widespread application of Artificial Intelligence (AI), Big Data, and other cutting-edge technologies to enhance urban governance, streamline public services, and foster a more conducive environment for both residents and businesses.

)The city chairman particularly emphasized the city’s consistent philosophy: technology is only truly meaningful when it serves people. Accordingly, citizens must remain the center, the primary actors, and the ultimate beneficiaries of all urban development policies.

"Alongside digital transformation, Hanoi is committed to promoting green growth, enhancing climate resilience, developing sustainable transport systems, expanding green spaces, and preserving cultural heritage throughout its modernization process," said Mr. Thang.

Vneconomy-Hoàng Bách

New mindset, vision necessary in marine development: Top leader

Mon, 08 Jun 2026 10:00:00 GMT

The sea should not be viewed solely as an area for resource exploitation or sectoral economic development. It must be recognized as a strategic national development space where economic growth, national defense, security, science and technology, and international integration converge, said Party General Secretary and State President To Lam.

Party General Secretary and State President To Lam on June 8 chaired a meeting in Hanoi with the Central Commission for Policy and Strategy and relevant agencies on the review of Resolution No. 36-NQ/TW, issued by the Party Central Committee on October 22, 2018, on Vietnam’s sustainable marine economy development strategy to 2030, with a vision to 2045.

The top leader was quoted by the Vietnam News Agency as calling for a fundamental shift in mindset and vision in marine development in the new period, stressing the need for a broader vision that views the sea not merely as an economic resource but as a strategic national development space.

The leader stressed the need for a prompt and thorough assessment of the implementation of Resolution 36, including achievements, shortcomings, bottlenecks and emerging challenges, to provide a solid basis for drafting a new resolution with a higher level of strategic vision.

The leader affirmed that Resolution 36 was a major strategic policy that has produced important results over the past eight years. Public awareness of the sea’s role has improved, institutional frameworks and policies have gradually been refined, marine industries developed, coastal infrastructure strengthened, living standards in coastal areas improved, and significant progress made in maritime sovereignty safeguarding, national defense, security and foreign affairs.

However, he acknowledged that the marine economy has yet to develop on par with the country’s potential, advantages and development requirements.

According to General Secretary and President Lam, the new resolution must not only inherit and build on previous achievements but also create a breakthrough in thinking, institutions and marine development models.

He stressed the need to move beyond a traditional “marine economy” mindset towards a broader concept of a strong national maritime development space.

The sea should not be viewed solely as an area for resource exploitation or sectoral economic development. It must be recognized as a strategic national development space where economic growth, national defense, security, science and technology, and international integration converge, he said.

The new resolution, he noted, should answer a broader question: how Vietnam can effectively manage, utilize and maximize the value of its entire maritime space to serve national development over the coming decades. It should also define the characteristics of a strong maritime nation in the 21st century and clarify the role of the sea in the realization of the strategic goals for 2030, 2045 and beyond.

The Party and State leader suggested that the sea must be positioned as one of the country’s key strategic growth drivers in implementing the Resolution of the 14th National Party Congress. He urged further research to identify breakthrough development areas while adopting approaches grounded in science, technology, innovation and digital transformation.

He also suggested incorporating new priorities into the strategy, including national marine data systems, digital ocean mapping and the application of artificial intelligence in maritime governance.

General Secretary and President Lam emphasized the need to closely integrate marine development with the task of safeguarding the nation from an early stage and from afar. Every marine economic project, he added, should contribute to both national development and defense.

The leader also highlighted the importance of establishing a modern national marine governance model, saying the new resolution should include orientations for studying and proposing a modern, integrated, and consistent governance framework based on data and national marine spatial planning.

He stressed that the accompanying action plan must clearly identify priority tasks, national programmes, key projects, measurable targets and the responsibilities of each relevant agency, sector, locality and administrative level.

He assigned the Central Commission for Policy and Strategy to work closely with the Government Party Committee, the Party Central Committee Office and relevant agencies to finalize the draft resolution and action plan for submission to the Politburo and the Party Central Committee.

The General Secretary and President underscored that the ultimate goal is to develop a new resolution with long-term strategic vision, breakthrough thinking and strong actionability, enabling the sea to become a genuine strategic development space and a new driver of fast and sustainable growth, contributing to the successful implementation of the 14th National Party Congress Resolution and Vietnam’s aspiration to become a high-income developed country by 2045.

VNA-Khanh Chi

Top leader calls for building ecological civilisation, green Vietnam, and peaceful, sustainable ocean

Mon, 08 Jun 2026 07:20:00 GMT

Vietnam must overhaul its development model based on science, technology, and digital transformation, while ensuring the safety of the ecological environment in order to achieve rapid, sustainable growth and high-income status, Party General Secretary and State President To Lam said in his article.

On the occasion of World Environment Day (June 5) and World Oceans Day (June 8), Party General Secretary and State President To Lam wrote an article, titled "For an ecological civilization, a green Vietnam and a peaceful, sustainable ocean," stressing that environmental protection must be regarded as a core component of both national security and human security.

The following is a translation of the article, released by the Vietnam News Agency:

FOR AN ECOLOGICAL CIVILIZATION, A GREEN VIETNAM AND A PEACEFUL, SUSTAINABLE OCEAN

On the occasion of World Environment Day (June 5) and World Oceans Day (June 8), we reflect more deeply on one of the defining issues of our time: the relationship between humanity and nature is undergoing profound changes, requiring new approaches to development, responsibility and action. A safe environment and a peaceful, sustainable ocean lie at the heart of development, security, peace, justice, ethics and the long-term survival of nations.

The world today is witnessing unprecedented and far-reaching changes to the ecological environment. Rising global temperatures, extreme weather events, melting ice, sea-level rise, droughts, floods, wildfires, saltwater intrusion, biodiversity loss, and marine and ocean pollution are affecting every continent. These imbalances suggest that nature’s limits are being pushed to a dangerous threshold.

These challenges raise a fundamental question for humanity: can development be sustainable if the ecological foundations that sustain life are being eroded? Over the centuries, humanity has achieved great advances in industry, science, technology, trade and urbanisation. Yet a development model that relies heavily on resource extraction, fossil-fuel consumption, linear production and a wasteful consumption behavior has also left a heavy ecological and environmental toll.

Against that backdrop, environmental protection must be regarded as a core component of both national security and human security. A country may post strong economic growth, but if its people are forced to live amid pollution and environmental degradation, such growth cannot be considered sustainable. A modern and prosperous society is one that creates wealth within ecological limits, uses resources responsibly, and views nature as a condition for survival, a national asset and a legacy for future generations.

The ocean illustrates even more clearly the interconnected nature of humanity. Climate disruptions or instability in one ocean region can affect food security, trade, energy security and livelihoods across many countries. Protecting the ocean, therefore, is not only an environmental obligation but also a requirement for peace, cooperation, international law, development equity and the shared responsibility of the international community.

For Vietnam, these issues carry particular significance. As a maritime nation, Vietnam is highly vulnerable to the impacts of climate change. With more than 3,260 kilometres of coastline, two major deltas, a dense river network and numerous coastal urban areas that are home to millions of fishermen and local communities, the country is especially exposed to sea-level rise, storms and floods, saltwater intrusion, erosion, pollution, resource depletion, ecological disruption and the overexploitation of nature.

Given this, Vietnam has demonstrated a strong sense of responsibility to the international community through its commitment to achieving net-zero emissions by 2050, advancing a just energy transition, reducing ocean plastic waste, promoting a circular economy, conserving biodiversity and implementing its sustainable marine economic development strategy. These commitments are not obligations imposed from outside, but arise from the country's own development needs. To develop rapidly and sustainably and become a high-income country, Vietnam must overhaul its development model based on science, technology, and digital transformation, and ensure the safety of the ecological environment. The cultural traditions of Vietnam’s regions, localities and rural communities have long embodied a spirit of harmony with nature. In the new era, this tradition should be elevated into a modern development value system founded on respect for nature, economical use of resources, responsible consumption, cleaner production, greener technologies, more transparent governance, and greater equity between generations.

With his far-sighted vision, President Ho Chi Minh, from an early stage, viewed humanity, nature, and the future of the nation as interconnected elements of a unified whole. He advised: “For the benefit of ten years, plant trees; for the benefit of one hundred years, cultivate people.” In this philosophy, “planting trees” is a practical action to build and improve the living environment, while “cultivating people” is the fundamental task of nurturing citizens who possess knowledge, morality and a strong sense of responsibility. He also wrote: “Spring is the festival of tree planting, making the country ever more like spring.” This simple yet timeless message reminds us that every tree planted represents hope for the future, and every act of protecting nature contributes to making the country more sustainable, prosperous and humane.

Regarding the seas and islands, he once told the people of Cat Ba, Cat Hai: “Forests are gold and the sea is silver. The forests and seas belong to us and are owned by our people; therefore, we must strive to tap and protect them.” These words embody a profound development philosophy: the right to utilise natural resources must always be accompanied by the responsibility to preserve them; exploitation must go hand in hand with protection; and today’s development must take account of future generations. The sea is not only a source of economic wealth but also a space for survival, sovereignty, culture, connectivity and strategic development for the Vietnamese nation.

Drawing upon Ho Chi Minh’s thought and the demands of the times, we must establish a consistent guiding principle that green development, environmental protection, ocean conservation and climate change adaptation should become a central pillar of the country’s development model in the new era. This is not solely the responsibility of the natural resources and environment sector; it is a shared task of the entire political system, the business community, every locality, every family and every citizen.

To achieve this goal, six major groups of tasks should be prioritised in the period ahead.

First, it is essential to improve development thinking and environmental governance institutions in the direction of recognising nature as the foundation of sustainable development. All development strategies, plans, programmes and projects must operate within the carrying capacity of ecosystems, climate resilience limits and the imperative of protecting public health. Development thinking must shift from addressing pollution after it occurs to preventing pollution right from the stage of development design. Environmental and natural resource governance should be reformed in an integrated, cross-sectoral and inter-regional manner. Development indicators should extend beyond output and growth rates to encompass quality of life, resource-use efficiency, emissions levels, climate resilience and social equity. Institutions must uphold the principle that polluters bear the costs of environmental damage, those who protect nature benefit from their efforts, localities pursuing green development are encouraged, businesses embracing green innovation are supported, and environmentally destructive acts are dealt with rigorously.

Second, green transition must be accelerated across growth models, energy structures, production systems, consumption patterns and urbanisation processes. Green transition should become a key driver of national competitiveness. Efforts should focus on promoting energy efficiency and conservation, developing renewable energy in a manner consistent with system security, gradually reducing dependence on fossil fuels, and advancing low-emission industries, ecological agriculture, public transport, green buildings, green materials and the circular economy. Businesses must be placed at the centre of this transformation, as they are the primary drivers of technological innovation, supply chain restructuring, green job creation and compliance with evolving standards of international markets. The State should introduce policies in green finance, green credit, green public procurement, emissions standards, carbon pricing mechanisms, and support for small and medium-sized enterprises in accessing technology, capital and markets.

Third, develop a modern, responsible blue economy linked to safeguarding sovereignty, livelihoods, and peace at sea. Vietnam believes that marine environmental protection, conservation of marine ecosystems, and sustainable sea-based economic development must go hand in hand with preserving peace, stability, security, safety, and freedom of navigation, and respect for international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS). The country remains committed to resolving disputes through peaceful means and joining efforts to build the East Sea into a sea of cooperation, responsibility, and sustainable development. Vietnam will pursue a more advanced model of marine economic development driven by science, technology, ocean data, and ecosystem conservation. Priorities include developing green seaports, offshore renewable energy, marine biotechnology industries, marine and island ecotourism, and maritime services. Stronger measures are also needed to combat illegal fishing, protect fisheries resources, and improve the livelihoods of fishermen.

Fourth, restore natural ecosystems and strengthen climate resilience as strategic national infrastructure. Investing in nature is investing in the future. Efforts must focus on disaster prevention and response, water security, food security, public health, and livelihood stability. Priority should be given to restoring watershed forests, coastal forests, and mangrove ecosystems, while sensitive ecosystems must be strictly protected. The exploitation of sand, groundwater, and coastal resources should be closely monitored. Climate-resilient urban areas should be developed, with renewed attention to rivers, lakes, and canal systems, alongside stronger forecasting, early-warning, and disaster-risk management capabilities. For the Mekong Delta, the central coastal region, the northern mountainous areas, and major urban centres, climate adaptation must become a core component of development planning, public investment, and social welfare policies.

Fifth, build an environmental governance system based on science, data, digital technology, and public participation. Vietnam should establish a national database covering emissions, water and air quality, waste, biodiversity, marine resources, coastal erosion, saltwater intrusion, climate risks, and corporate compliance with environmental standards. Satellite technology, artificial intelligence, environmental sensors, digital mapping, marine and island databases, disaster forecasting models, and citizen feedback platforms should be widely deployed. People have the right to know the environmental quality of the places where they live. Businesses have a responsibility to transparently disclose their environmental impacts. State agencies must make evidence-based decisions and remain accountable to the public. At the same time, environmental education should be promoted in schools and communities, while scientific communication, green lifestyles, waste separation at source, reductions in single-use plastics, and the development of an ecological citizenship culture across society should be encouraged.

Sixth, ensure a just green transition and strengthen international cooperation on climate, environment, and ocean. A green transition can succeed only if it is fair, inclusive, and people-centred. Poor households, workers in high-emission industries, coastal communities, women, children, and vulnerable groups must receive support through livelihood programmes, vocational training, financial assistance, risk insurance, climate-resilient infrastructure, and access to social services. Mechanisms should also be put in place to support businesses in adopting greener practices while creating sustainable livelihoods for communities engaged in environmental protection.

Vietnam calls on the international community, especially developed countries, to more fully and substantively fulfill their commitments on climate finance, technology transfer, human resource training, adaptation support, capacity building in governance, and expanded market access for green products from developing countries. Developed industrialised nations embarked on industrialisation earlier, accumulated wealth over a long period through higher levels of emissions, and possess superior financial and technological capabilities. Therefore, their responsibility in addressing climate change, protecting the oceans, and restoring global ecosystems must be commensurate with both their current capacities and their historical responsibilities. A fair green order must ensure that developing countries are not left behind and that environmental standards do not become new trade barriers.

Developing countries must demonstrate determination in transforming their growth models, effectively utilising support resources, and enhancing transparency and accountability in implementing green commitments. However, the transition pathway must be aligned with their level of development, technological capabilities, budgetary conditions, and the need to ensure energy security, food security, and people's livelihoods.

Vietnam stands ready to be an active and responsible member of the international community in efforts to combat climate change, protect biodiversity, reduce plastic pollution, safeguard the oceans, promote a just energy transition, and build a green economy. We seek to work with our partners to develop a more substantive framework for cooperation, in which green finance reaches those who need it most, clean technologies are shared more widely, governance knowledge is disseminated more rapidly, and the benefits of the green transition are distributed more equitably among nations, communities, and generations.

The six groups of tasks outlined above must be implemented through a spirit of practical action with the joint efforts of the State, businesses, and society as a whole. Each locality should develop an action program suited to its ecological characteristics and development model. Every ministry and sector must integrate green objectives into its specialised policies. Every enterprise should regard environmental compliance as a prerequisite for survival and green innovation as a condition for competitiveness. Every citizen should transform their love for nature, the seas and islands, and their homeland into concrete daily actions.

World Environment Day and World Oceans Day remind us that the Earth's capacity to absorb human impacts is limited, that the oceans are under increasing stress, and that humanity bears a responsibility to act. We stand before the mission of building a green, responsible, and sustainable Vietnam in the 21st century; a development model that is prosperous, humane, modern, and in harmony with nature; a strong and prosperous nation where the environment remains clean, the seas and islands remain peaceful, rivers continue to be clear, forests remain vast and thriving, and every citizen can live safely, healthily, and happily.

Let every Vietnamese begin with one concrete action: planting and caring for a tree, reducing the use of single-use plastics, conserving energy, sorting waste, protecting water resources, keeping beaches clean, and promoting green lifestyles. Let us act for a future in which Vietnam remains forever green and sustainable.

VNA-

Small modular reactors a solution for Vietnam's energy security

Mon, 08 Jun 2026 03:00:00 GMT

Experts attending a seminar told Vietnam Economic Times / VnEconomy that small modular reactors (SMRs) could strengthen Vietnam’s energy security, support decarbonization, and open new pathways for technology, workforce, and industrial development.

Dr. Nguyen Ngoc Hung, Head of the Energy Economics Division, Institute of Energy, the Ministry of Industry and Trade

At present, electricity demand growth is under significant pressure, compounded by challenges in capital mobilization and non-traditional security risks, such as extreme weather events affecting hydropower supply.

Vietnam’s revised National Power Development Plan VIII (PDP8), approved under Decision No. 768/QD-TTg dated April 15, 2025, outlines a roadmap for nuclear power development, with a planned capacity of 4,000-6,400 MW expected to become operational during the 2030-2035 period, with the possibility of earlier deployment if conditions are favorable. However, it does not yet provide clear regulations for small modular reactor (SMR) technology.

That said, we would reiterate that amid rapidly-rising electricity demand and the increasing need to integrate large volumes of solar and wind power in the years ahead, factors such as flexible modular-scale generation, siting flexibility, and the ability to support renewable energy integration will be critically important.

Our research found that SMRs offer greater operational flexibility than large-scale nuclear reactors. This is a key advantage for integrating variable renewable energy, where output can fluctuate rapidly. More flexible power sources are highly beneficial for the electricity system. Importantly, SMRs are also a zero-CO2 emissions power source, contributing to climate goals.

There are no specific milestones or concrete targets for SMR technology under the revised PDP8 and the National Energy Master Plan. However, Politburo Resolution No. 70-NQ/TW clearly states the need to urgently implement the Ninh Thuan 1 and 2 nuclear power projects, with operations scheduled for 2030-2035, while also developing a nuclear power program based on flexible scales and modular nuclear power plants. Therefore, immediate action is required to translate energy transition milestones into concrete steps associated with SMR development.

We hope that a clearer program will soon be introduced so that when the National Power Development Plan IX is drafted, around 2029-2030, it can establish more concrete milestones for SMR technology, similar to what has already been done for large-scale nuclear power.

* * *

Dr. Tran Chi Thanh, President of the Vietnam Atomic Energy Institute

The development of nuclear power is a major task ahead, one that the Party and the State are genuinely committed to and strongly promoting. As I understand it, Party General Secretary and State President To Lam has shown strong interest in nuclear power projects and is eager for Vietnam to move forward and develop genuine operational capabilities.

For professionals like us at the Institute, there is also a strong belief that if Vietnam can successfully implement nuclear power projects and build nuclear capabilities, it would be immensely valuable for the country. Beyond ensuring energy supply and energy security, it would also help advance a wide range of sectors, foster human resources development, and elevate the country to a new stage of development. In reality, countries with nuclear power programs have generally achieved strong levels of development.

SMR technology is an undeniable global trend. Politburo Resolution No. 70 on safeguarding national energy security through 2030, with a vision to 2045, emphasized the development of a nuclear power program based on flexible scales and small modular nuclear power plants.

According to international projections, global nuclear power capacity could double by 2050 compared to current levels, alongside the emergence of next-generation technologies designed to meet higher safety standards following the Fukushima Daiichi nuclear disaster.

This international seminar demonstrated that human resources, talent, and technical capabilities are the most critical factors. In addition, partners from Russia, Canada, and other countries have expressed readiness to accompany Vietnam on its nuclear power development journey. This is a highly-valuable opportunity. We must seize it by developing programs, plans, and implementation efforts in a serious and systematic manner, as other countries have done.

* * *

Mr. Dao Quang Binh, General Director of Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy

We are standing at a historic turning point for the global energy sector. According to reports from the International Energy Agency (IEA), the world is facing not only a climate crisis but also mounting pressure from disruptions to traditional energy supply chains. Against this backdrop, the commitment to achieving net-zero emissions by 2050 has officially become a new “rule of the game,” shaping the entire flow of global trade and investment.

In Vietnam, the challenge of energy security has become a matter of strategic importance. The country not only needs energy to sustain economic growth but also requires a source of power that is genuinely clean, stable, and self-reliant. For this reason, ongoing research into Small Modular Reactor (SMR) models is increasingly linked to the realization of new energy scenarios under the revised National Power Development Plan VIII (PDP8).

Under the long-term roadmap within the energy transition strategy, SMRs are being studied and positioned as a highly-flexible baseload power solution. Far more than simply scaled-down versions of conventional nuclear power plants, SMRs represent a potentially transformative breakthrough expected to balance the dual objectives of the future power system.

On one hand, the technology offers the opportunity to meet the massive and uninterrupted electricity demand required by AI data centers and advanced semiconductor manufacturing chains, both of which depend on absolute reliability and stability. On the other hand, with their ability to adjust output rapidly, SMRs are increasingly viewed as a promising technical solution to help manage the variability and intermittency inherent in renewable energy sources.

Notably, thanks to their integrated design, SMRs offer a high level of inherent safety, significantly minimizing operational risks while strengthening public confidence and long-term strategic trust. From a financial perspective, the model provides notable advantages through lower upfront capital requirements and shorter construction timelines. Its modular approach enables factory-based mass production and on-site assembly, helping ease financing pressure for investors. Combined with deployment flexibility, this advantage allows SMRs to adapt to diverse geographic settings, from concentrated industrial parks to remote and isolated areas.

However, the pathway toward small-scale nuclear power development is not without challenges, including concerns over electricity costs, commercial viability, and the need for a comprehensive legal and regulatory framework. Addressing these issues will require close coordination among policymakers, scientific experts, and implementing businesses.

In the era of AI and digital transformation, the development of next-generation nuclear energy has become an urgent necessity that can no longer be delayed.

To avoid falling behind the pace of global development, Vietnam must move faster by establishing strategic international partnerships. This will be key to accessing core technologies, studying best practices in safety governance, and preparing a highly-skilled workforce. Launching cooperative programs now would create significant opportunities for Vietnam to leapfrog development stages, narrow the gap with more advanced economies, and strengthen its position on the regional nuclear energy map.

* * *

Ms. Susie Ho, Director of Laurentis Energy Partners

The year 2024 marked the moment when the world truly returned to nuclear energy. At COP28, more than 20 countries jointly committed to a landmark goal: tripling global nuclear power capacity by 2050.

The next five years will be an acceleration phase for the nuclear power industry. We are moving beyond theory toward the rapid deployment of projects. Decarbonization and energy security are no longer simply political goals, they have become matters of survival for many nations. Against this backdrop, governments around the world are not only accelerating investment in small modular reactors (SMRs) but are also simultaneously developing new financing mechanisms and licensing frameworks to shorten project implementation timelines.

By 2030, the world could see between 20 and 30 SMR projects either under construction or in the licensing phase, with a total market size estimated at $100-150 billion. Looking further ahead, to 2050, the world will not simply witness the expansion of a new energy market, but rather a major turning point in the global energy system, where today’s ambitions become tomorrow’s infrastructure.

In my view, four major trends are driving this momentum. The first is the growing need to ensure energy security amid increasingly unstable geopolitical conditions. Recent developments have shown that energy independence has become an urgent priority for many countries. SMRs provide a suitable solution because their flexible design allows nations to exercise greater control over their electricity systems and reduce dependence on international gas markets.

The second trend is the need to decarbonize while maintaining stable operations across heavy industrial production chains.

The third is the explosive growth of AI, a sector consuming enormous amounts of electricity. The rapid expansion of data centers is placing mounting pressure on global electricity systems. Technology companies now require not only clean power but also reliable 24/7 electricity to sustain uninterrupted computing infrastructure. In this context, SMRs are increasingly viewed as one of the most viable solutions to meet these demands. As a result, SMRs are increasingly prioritized for deployment near large-scale data centers to ensure stable and continuous electricity supply.

The final trend is the maturation of global supply chains. By around 2040, the SMR industry is expected to shift strongly toward standardization. As modular manufacturing technologies advance and international licensing processes become more harmonized, construction costs are likely to decline significantly while deployment speeds accelerate on a global scale.

According to forecasts by the International Atomic Energy Agency, by 2050 the world could have between 400 and 600 new nuclear power projects under development or in operation, including approximately 200 SMR projects. The total market size could reach as much as $1 trillion.

* * *

Mr. Dmitry Aleksandrovich Raspopin, Head of the Representative Office, State Atomic Energy Corporation Rosatom in Vietnam

As energy transition becomes a matter of survival, small modular reactor (SMR) technology offers an optimal alternative to traditional energy sources thanks to its outstanding core advantages. First and foremost, the greatest strength of SMRs lies in their reliability.

Unlike wind and solar power, which are intermittent and heavily dependent on weather conditions, SMRs provide a continuous, uninterrupted, and stable electricity supply regardless of day or night or extreme weather conditions. This characteristic is particularly compatible with Vietnam’s climate conditions.

In addition, the technology stands out for its environmental sustainability, producing near-zero emissions while using land extremely efficiently. Its relatively small footprint helps optimize urban planning, significantly reduce the size of safety planning zones surrounding power plants, and enable flexible infrastructure integration across a wide range of applications.

From a practical standpoint, SMRs represent a strategic option because they address major infrastructure and workforce challenges facing developing countries. The technology improves economic and operational efficiency through lower upfront capital requirements and significantly shorter construction timelines compared to conventional reactors. This helps investors minimize financial risks and reduce the burden of borrowing costs throughout project implementation.

Thanks to their flexibility and rapid load-following capability, SMRs can operate effectively even in small, isolated power systems, while also working in coordination with renewable energy sources and large-scale nuclear power plants.

The impact of SMR projects extends beyond technical considerations, delivering substantial socio-economic benefits aligned with the sustainable development goals of the United Nations. For example, a floating nuclear power unit can provide low-emission electricity to approximately 100,000 people while maintaining uninterrupted power generation over an operational lifespan exceeding 60 years.

The technology’s risk management capabilities also allow countries to forecast long-term electricity generation costs with greater accuracy, creating a solid foundation for ensuring national energy security. Ultimately, expanding SMR nuclear power, one of the cleanest energy sources available, would serve as a strong driver for RD, strengthen domestic capabilities, and contribute meaningfully to global climate action.

* * *

Ms. Breann Whitby, Acting Director of Nuclear Policy, Crown Investments Corporation of Saskatchewan

Canada is currently the world’s second-largest uranium producer, with 100 per cent of the country’s commercial uranium mining operations concentrated in Saskatchewan province. The expansion of the nuclear industry in Saskatchewan in particular, and globally more broadly, is expected to create major opportunities for businesses, workers, and suppliers.

Preliminary analyses suggest that Saskatchewan’s nuclear program alone could require between 2,500 and 3,500 highly-trained technical and professional workers. In addition to engineers, project managers, and nuclear operations personnel, demand is also expected to be particularly strong for skilled trades and supporting technical labor.

Nuclear power is also creating substantial opportunities for Saskatchewan’s industrial suppliers, building on the province’s existing strengths in oil and gas, mining, and manufacturing. The Saskatchewan Government is currently supporting multiple initiatives aimed at developing nuclear supply chains at the local, Canadian, North American, and global levels, helping businesses in the province deepen their participation in the value chain.

In addition, several new initiatives have been launched to strengthen nuclear research in Canada. The Global Institute for Energy, Minerals and Society, a collaborative model involving the University of Saskatchewan, the University of Regina, and Saskatchewan Polytechnic, was established in 2025 and is expected to dedicate significant resources to nuclear technology and related supply chains.

Saskatchewan has also taken a proactive approach to collaborating with governments and organizations to advance nuclear energy development. In 2019, Saskatchewan signed an MoU with Ontario and New Brunswick provinces to promote the development of small modular reactors (SMRs) in Canada. In April 2021, Alberta province joined the initiative. By 2022, the four provinces had agreed on a shared strategic plan outlining a roadmap for SMR development.

The plan identifies SMRs as a source of safe, reliable, and zero-emission electricity to support growing economies and populations, while also creating opportunities to bring Canada’s nuclear knowledge, technologies, and expertise to global markets.

VET-

Lessons for Vietnam to develop nuclear power

Sun, 07 Jun 2026 09:00:00 GMT

There are many examples of the growing interest in Small Modular Reactor technology around the world for Vietnam to study and learn from.

The global shift toward Small Modular Reactor (SMR) technology is accelerating rapidly to meet the growing demand for 24/7 baseload electricity driven by the expansion of AI infrastructure and heavy industry, offering valuable lessons for Vietnam on both deployment models and investment attraction mechanisms.

At the international seminar entitled “Small Modular Reactors: Strategic Solutions for Vietnam’s Energy Security,” representatives from businesses and international organizations shared vivid insights into the global transition toward next-generation nuclear energy. Drawing on the real-world deployment of SMR technology in pioneering countries, international experts provided in-depth analyses of operational challenges and risk-sharing financing models, while offering important recommendations for Vietnam’s nuclear energy development roadmap.

Speaking at the seminar, Mr. Dmitry Aleksandrovich Raspopin, Director, Country Office in Vietnam, the State Atomic Energy Corporation ROSATOM, said the corporation is currently developing both land-based SMR projects and floating nuclear power plants, all of which comply with the highest safety standards. Rosatom currently holds 88 per cent of the global nuclear power plant export market. Of the 25 large-scale nuclear power plant construction projects currently underway worldwide in multiple countries, 22 are being implemented by Rosatom.

Lessons from pioneering countries

Regarding SMR technology, Mr. Raspopin introduced the RITM-200 reactor series. Russia has already deployed four icebreaker ships equipped with RITM-200 reactors and is continuing the construction of three additional vessels, alongside upgraded floating nuclear power units.

It is also supplying energy solutions for the first SMR project in Yakutia, Russia, using RITM-200N reactor technology. The project features a fuel cycle of up to six years and a lifespan of 60 years, and is intended to power tin, gold, and other mineral mining operations.

Rosatom expanded into international markets through its first SMR export agreement, signed with Uzbekistan in 2024. Under the project timeline, equipment manufacturing and construction of the first SMR units in the country began in 2025, aiming to strengthen energy security and support broad-based economic development. “Rosatom has addressed international clients’ concerns by offering turnkey project delivery while minimizing infrastructure requirements through the outsourcing of lifecycle functions,” he noted.

Practical lessons from several pioneering countries are also shaping the next era of nuclear deployment. Ms. Susie Ho, Director of Canada’s Laurentis Energy Partners, highlighted Poland as a case in point, where Orlen Synthos Green Energy (OSGE) is actively planning the deployment of 24 BWRX-300 reactors across six locations. OSGE demonstrates that combining industrial off-takers, digital demand, and a network strategy based on standardized reactors is a workable formula for project success.

These SMRs are being located at industrial hubs such as Wloclawek, adjacent to chemical plants, supplying high-temperature steam for chemical production, hydrogen generation, and district heating, thereby enhancing energy security and price stability. OSGE has established a dedicated taskforce with the Polish Data Center Association. Poland’s data center sector could require up to 1,000 MW of capacity by 2034, as hyper-scalers such as Google, Amazon, and Microsoft increasingly demand clean, 24/7 electricity.

Rosatom has addressed international clients’ concerns by offering turnkey project delivery while minimizing infrastructure requirements through the outsourcing of lifecycle functions.

Mr. Dmitry Aleksandrovich Raspopin, Head of the Representative Office at the State Atomic Energy Corporation Rosatom in Vietnam.

In Sweden, after four decades of gradual nuclear phase-out policies, the country has reversed course entirely and now targets 2,500 MW of new nuclear capacity by 2045.

Meanwhile, Canada is leading in nuclear deployment models by prioritizing projects at existing sites to create a replicable blueprint for future expansion. By leveraging existing regulatory and environmental approvals at Darlington, Ontario, this approach avoids the uncertainties associated with greenfield development while focusing on site readiness and sequential risk reduction.

Adding to the discussion on the local development benefits of SMR technology, Ms. Breann Whitby, Acting Director of Nuclear Policy at Crown Investments Corporation of Saskatchewan, emphasized that SMRs are not merely an energy solution but also a core engine for achieving key socio-economic goals under Saskatchewan’s growth plan. Summarizing the transformative value of SMR technology, Mr. Raspopin noted that SMRs offer distinct advantages in addressing modern energy challenges. Beyond electricity generation, SMRs can support district heating and cooling, power data storage and processing centers, and replace conventional power plants.

From a planning perspective, the compact design of SMRs and the optimization of emergency planning zones enable deployment without disrupting urban infrastructure development. The technology is particularly well suited for small-scale grids and remote regions facing logistical challenges.

Technical and operational barriers

Despite the clear advantages of SMRs, experts believe several challenges continue to slow the sector’s development. According to Ms. Ho, five core risks are delaying nuclear deployment before the industry reaches full maturity, requiring deeper global collaboration, strategic partnerships, and innovative procurement models.

The first challenge is the erosion of institutional capability. After decades of disruption, the global nuclear sector has lost much of its practical construction expertise. Countries must therefore rebuild capabilities and transition from single-unit projects to multi-unit deployment strategies.

The second challenge is supply chain readiness, which Ms. Ho described as one of the toughest obstacles. Suppliers must meet strict nuclear quality assurance (Nuclear QA) standards to manufacture components or deliver services, requiring costly investments in systems such as ISO 9001.

The third challenge is workforce. The nuclear industry is facing an intensifying global competition for talent, from project managers and engineers to skilled welders. With experienced professionals retiring and younger talent drawn to other sectors, countries must begin serious workforce planning today to secure labor capacity for the next three decades.

The fourth challenge is competition for resources with the AI industry. Nuclear projects are increasingly competing with Big Tech firms for high-tech materials and equipment, while the rapid expansion of AI data centers has pushed copper and high-voltage component prices to their highest levels in 40 years.

The fifth challenge is regulatory fragmentation. According to Ms. Ho, global reactor deployment will require harmonized licensing requirements and regulatory processes across jurisdictions.

International financing models

Beyond these five risks, financing remains the largest barrier to new nuclear projects. Nuclear power requires massive upfront investment, while return on investment (ROI) often taking decades to materialize. “This creates a ‘bankability gap,’ making investors reluctant to finance projects that may face construction risks for up to ten years before generating revenue,” Ms. Ho emphasized.

To close this gap, international markets have increasingly adopted sophisticated risk-sharing mechanisms rather than relying solely on traditional government funding, centered around three key financing tools.

The first is the Regulated Asset-Based (RAB) model, used in the Sizewell C project in the UK. This mechanism allows developers to recover part of project costs from electricity consumers during construction instead of waiting until operations begin, reducing the weighted average cost of capital (WACC) and potentially saving UK consumers up to £80 billion ($110 billion) over the project’s lifecycle.

The second is the Concurrent Cost Recovery (CCR) model, applied in Ontario. It enables developers to recover borrowing costs as they arise, preventing interest accumulation during long construction periods and helping keep project costs manageable.

The third is the use of long-term Power Purchase Agreements (PPAs). Hyper-scalers such as Microsoft, Google, Meta, and Amazon have increasingly become direct backers of nuclear projects by signing long-term electricity purchase contracts, providing stable cash flow that helps unlock commercial bank financing.

For Vietnam, the lesson is increasingly clear. “Vietnam does not need to shoulder this financial burden alone,” Ms. Ho said. “By adopting appropriate financing mechanisms, the country can align the interests of the government, consumers, and global investors, transforming large capital needs into manageable long-term economic guarantees,” Ms. Ho said.

The era of nuclear implementation has officially begun, and countries are racing to take the lead. “Vietnam should move beyond exploratory discussions and begin building the infrastructure needed to strengthen its position,” she believes. “The future belongs to nuclear energy, and this is a strategic opportunity for Vietnam.”

VET-Hoang An

Proposal to ban import of used ships for dismantling and recycling in Vietnam

Sun, 07 Jun 2026 07:00:00 GMT

According to the Ministry of Agriculture and Environment, the dismantling of imported used ships in Vietnam poses significant environmental threats due to hazardous materials and pollutants.

The Ministry of Agriculture and Environment (MAE) is currently drafting amendments and supplements to several articles of the Law on Environmental Protection, aiming at reforming administrative procedures—particularly regarding Environmental Impact Assessments (EIA) and environmental permits—to ensure effective control over projects and facilities with a high risk of pollution while simplifying procedures to promote socio-economic development.

The draft law introduces several new prohibited acts, including the import of used sea vessels for dismantling and recycling. This measure is intended to limit the risk of environmental pollution from old ships, prevent the influx of outdated technology and equipment into Vietnam, and mitigate risks associated with the dismantling and disposal of waste generated from end-of-life vessels. Additionally, the discharge of controlled substances contained in discarded equipment and products into the environment will also be prohibited to strengthen pollution control.

Specifically, the draft lists the illegal import of used vehicles, machinery, and equipment for scrapping, as well as the import of used sea vessels for dismantling and recycling, as prohibited activities in environmental protection.

According to the MAE’s analysis, the dismantling of imported used ships in Vietnam poses significant environmental threats due to hazardous materials and pollutants, such as Polychlorinated Biphenyls (PCB), Cadmium and its compounds, Chromium (VI) and its compounds, and Mercury and its compounds, among others.

The ministry noted that these hazardous materials are subject to strict controls under Annex 1 of the International Maritime Organization (IMO) Resolution MEPC.379(80), which provides updated guidelines for the development and management of the Inventory of Hazardous Materials (IHM) under the Hong Kong Convention. The Hong Kong International Convention focuses on controlling the IHM during the construction, repair, and modification of ships, as well as ensuring safety and environmental protection during the dismantling process at ship-breaking facilities.

The MAE further emphasized that banning the import of used sea vessels for dismantling will not affect the supply of materials for Vietnam’s domestic shipbuilding and repair industry.

Vneconomy-Đỗ Phong

A modern and safe option for nuclear power development

Sun, 07 Jun 2026 01:30:00 GMT

Once fully developed, nuclear power generated by Small Modular Reactors may well be the solution to growing energy needs in Vietnam and elsewhere during the AI era.

As AI becomes the new infrastructure of the digital economy, electricity is increasingly emerging as a form of “national competitiveness.” According to experts, Small Modular Reactors (SMRs) have become one of the most promising technologies to address the energy demands of the AI era.

Speaking at an international seminar entitled “Small Modular Reactors: Strategic Solutions for Vietnam’s Energy Security,” jointly organized by Vietnam Economic Times / VnEconomy and the Vietnam Atomic Energy Institute (VINATOM), Dr. Nguyen Ngoc Hung, Head of the Energy Economics Division at the Institute of Energy under the Ministry of Industry and Trade, emphasized that Vietnam’s electricity demand is entering an entirely different growth phase from previous decades, and electrification is no longer confined to households or traditional industries but is rapidly expanding into electric vehicles (EVs), data centers, AI, and high-tech industries.

Electricity crunch

According to Dr. Hung, multiple forecasts suggest Vietnam’s electricity consumption pattern in the years ahead may resemble those of countries such as South Korea and the US during periods of rapid industrial acceleration. However, a major difference lies in the much faster growth of new demand sources such as data centers, EVs, and green hydrogen.

“Non-traditional demand is expected to grow significantly, including data centers, electric transportation, and, in later decades, green hydrogen production powered by electricity,” he said. “These demand sources need to be forecast separately because of their importance and scale in driving total electricity demand,” he said.

In reality, this trend is not unique to Vietnam. Globally, AI is pushing electricity demand higher again after years of relatively slow growth. Major technology companies such as Microsoft, Google, Amazon, and Meta are rapidly expanding AI-focused data centers at an unprecedented pace.

This trend is prompting many countries to reassess the role of nuclear power as a reliable baseload energy source for the AI economy. Unlike solar and wind power, which depend on weather conditions, AI data centers require continuous, uninterrupted, high-capacity electricity supplies.

In this context, nuclear energy is increasingly viewed as a critical solution for achieving net-zero targets while ensuring energy security and maintaining technological competitiveness.

According to Dr. Tran Chi Thanh, President of VINATOM, the global energy market is entering an increasingly volatile period, prompting many countries to rethink their long-term baseload energy strategies. “Nuclear power is no longer viewed solely through the lens of emission reductions, but is increasingly tied to energy security and the long-term stability of the economy,” he said.

One of nuclear energy’s greatest advantages is its ability to store fuel for the long term, reducing the risk of supply chain disruptions amid rising geopolitical instability. For Vietnam, this pressure is becoming increasingly evident. While the country remained a net energy exporter in 2010, by 2025 approximately 43.9 per cent of primary energy supply depended on imports.

SMRs: The energy piece

According to experts, as electricity demand rises sharply, SMRs have been attracting growing interest worldwide. Unlike traditional nuclear power plants, which typically involve very large capacities and lengthy construction timelines, SMRs are designed on a smaller scale, allowing modular assembly and more flexible deployment.

Dr. Thanh said there are currently around 100 different SMR designs under RD globally. These technologies differ in cooling methods, fuel types, and reactor materials, but share a common objective: improving safety and optimizing operations. He added that SMRs could open a new pathway for nuclear power markets thanks to their smaller scale, lower upfront investment requirements, and more manageable financial risks. This is particularly important for developing countries such as Vietnam, where financing and implementing large-scale infrastructure projects remain major challenges.

Beyond that, the flexibility of SMRs is considered better suited to future energy systems, where renewable energy is expected to account for an increasingly larger share of the electricity mix.

According to experts, as wind and solar output fluctuates rapidly depending on weather conditions, power systems will require flexible baseload sources capable of balancing loads. This is seen as one of SMRs’ key advantages. In addition to supporting national power systems, SMRs are also viewed as having significant potential to supply electricity to high-tech industrial parks, data centers, and other areas with concentrated electricity demand.

Looking ahead, many experts believe large-scale AI data centers could be directly connected to small-scale nuclear power sources to ensure stable electricity supply while reducing carbon emissions.

Dr. Thanh stated that beyond SMRs, the world is also exploring Micro Modular Reactors (MMRs) with capacities below 10 MWe for specialized applications. However, he cautioned that most SMR technologies remain in the early stages of commercialization and continue to face multiple challenges. In addition, many SMR technologies rely on High-Assay Low-Enriched Uranium (HALEU) or other specialized fuels that are not yet widely available in the market. “If reactors are built without securing a reliable fuel supply, the risks are considerable,” he warned.

Even so, as AI and the digital economy reshape global electricity demand, many countries continue to view SMRs as a strategic technology for the future. For Vietnam, this could represent an opportunity to participate early in a new energy technology cycle rather than continuing to lag behind in core technologies.

Culture of safety

While SMRs are generating considerable optimism, experts agree that the most critical factor in nuclear power development is not the pace of technological advancement but governance capacity and a strong culture of safety.

According to Dr. Thanh, the key lessons from disasters such as Chernobyl and Fukushima Daiichi highlight that human factors remain the greatest source of risk. This is why next-generation SMR technologies are increasingly focused on passive safety systems designed to reduce reliance on human intervention.

Mr. Dmitry Aleksandrovich Raspopin, Head of the Representative Office at the State Atomic Energy Corporation Rosatom in Vietnam, said many new safety mechanisms were added to modern reactor designs such as the VVER-1200 following the Fukushima disaster. These systems allow plants to remain safe even during total power loss or without human intervention.

For SMRs, one key feature is the natural circulation mechanism within the reactor itself, functioning as a passive safety system to minimize accident risks.

However, Dr. Thanh stressed that technology is only part of the equation. More importantly, countries must develop a skilled workforce and a strong safety culture. “It is essential that people working in nuclear energy truly understand and internalize a culture of safety,” he said. “Those who genuinely work in a nuclear environment understand that safety comes first, without exception.”

Vietnam, he continued, has developed a basic nuclear workforce, but the pool of highly-specialized experts remains limited. A key priority is therefore building domestic nuclear training capacity instead of relying entirely on overseas education. At the same time, Vietnam will need deeper cooperation with international partners to access technology, train talent, and gradually strengthen domestic capabilities.

Mr. Dao Quang Binh, General Director of Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy, told the seminar that the global energy sector is approaching a historic turning point, as climate pressures and supply chain disruptions have turned Vietnam’s net-zero emissions by 2050 commitment into a “new rule of the game” shaping global investment flows. “We do not simply need energy for growth; we need an energy source that is truly clean, stable, and self-reliant,” he explained, adding that rapid advances in AI and science and technology are making the path forward increasingly clear for Vietnam.

“In an era of rapidly advancing AI and science and technology, we must move faster and leverage cooperation with strategic international partners to access technology, management expertise, and workforce training,” Mr. Binh said, noting that if Vietnam establishes early foundations for cooperation, it could narrow the gap and move faster than many regional peers in nuclear energy, securing stable power for economic growth, high-tech industries, and future data centers.

VET- Bao Binh

FAO Representative: Nature is the "quiet infrastructure" of Vietnam's climate resilience

Fri, 05 Jun 2026 10:00:00 GMT

Marking World Environment Day on June 5, Mr. Vinod Ahuja, FAO Representative in Vietnam, shares with Vietnam Economic Times his reflections on the role of nature, food systems, and climate resilience in shaping Vietnam's future

Every year, World Environment Day encourages us to reflect on our relationship with nature. Too often, however, that conversation is framed solely around protection: protecting forests, rivers, oceans, wildlife and biodiversity. While this remains essential, I believe the climate crisis requires us to recognize a deeper reality. Nature is not only something we must protect. It is also something that protects us.

Mr. Vinod Ahuja, FAO Representative in Vietnam. (Photo: FAO Vietnam)

Forests regulate water flows. Mangroves shield coastlines from storms and erosion. Wetlands absorb floods. Healthy soils retain moisture and sustain crops. Biodiversity supports pollination, pest control and ecological balance. Rivers, watersheds and coastal ecosystems quietly provide the conditions that allow communities, farms, cities and economies to function.

This is what I call the quiet infrastructure of climate resilience.

Unlike roads, bridges, dams or power plants, this infrastructure often operates unnoticed. It rarely appears in investment plans, public budgets or balance sheets. Yet its contribution to development is profound. When ecosystems are healthy, they reduce risks and strengthen resilience. When they are degraded, climate shocks become more severe and development gains become increasingly fragile.

Vietnam perhaps understands this reality better than many countries. Its development story has long been intertwined with nature. The country's remarkable achievements in food production, rural development and poverty reduction have been built on the strength of its deltas, rivers, forests, mountains, coastlines and agricultural landscapes.

Today, however, that relationship is under growing pressure. Climate change is no longer a future projection. It is already being felt through more intense storms, prolonged droughts, saline intrusion, landslides, coastal erosion, changing rainfall patterns and rising heat stress.

A recent Food and Agriculture Organization of the United Nations and World Meteorological Organization (FAO-WMO) joint report warns that extreme heat is emerging as one of the most urgent and least understood threats to agriculture and food security. It affects crops, livestock, fisheries, forests and rural livelihoods, with consequences extending far beyond the environmental sector.

The impacts of climate change are increasingly being felt across food production, public health, infrastructure, migration patterns and long-term economic stability. In 2025 alone, natural disasters and widespread flooding caused economic losses estimated at nearly $4 billion, in Vietnam, with agriculture among the hardest-hit sectors.

For farmers, fishers and forest-dependent communities, climate change is not an abstract global issue. It is reflected in changing rainfall patterns, salinity reaching further inland, declining crop yields, warming waters and increasing uncertainty in everyday life.

From recognizing nature's value to investing in resilience

This is why climate resilience cannot be built solely through emergency response measures. Nor can it rely only on hard infrastructure, important as those investments are. Resilience must also be strengthened through healthier farms, forests, wetlands, watersheds and coastal ecosystems that can absorb shocks and protect the communities that depend on them.

A mangrove belt that reduces storm surges is climate infrastructure. A restored watershed that regulates water flow is climate infrastructure. Healthy soils that help crops withstand drought are climate infrastructure. A thriving forest that stabilizes landscapes and protects biodiversity is climate infrastructure.

Yet we have not always treated these natural systems as infrastructure. Too often, nature is viewed as a backdrop to development rather than one of its foundations. We readily calculate the value of land when it is converted for economic use, but not always when it is conserved. We count the costs of disasters after they occur, but rarely measure the savings generated by ecosystems that help prevent or reduce those disasters in the first place.

This gap between the value nature provides and the investments we make to sustain it remains one of the key challenges in climate adaptation.

The issue is not a lack of knowledge. The evidence is increasingly clear. Ecosystem restoration, sustainable forest management, climate-smart agriculture, improved water governance and integrated land-use planning all have critical roles to play. The challenge lies in moving from isolated projects to systemic implementation and long-term investment. That shift begins with how we think, plan and invest.

First, nature must be placed at the center of climate adaptation planning. Ecosystems should not be treated as environmental add-ons. Forests, wetlands, soils and coastal ecosystems are strategic assets for risk reduction, food security and rural development. They need to be fully integrated into national and provincial adaptation plans, public investment decisions and disaster risk management systems.

Second, agrifood systems must become part of the climate solution. Agriculture is highly vulnerable to climate risks, but it also has enormous potential to build resilience when managed sustainably. Better soil health, efficient water use, diversified production systems, integrated pest management and low-emission farming practices can strengthen productivity while reducing environmental pressures. The goal should not simply be to produce more food, but to produce food in ways that protect the natural systems on which future production depends.

Third, resilience must be local. Climate impacts vary significantly across Vietnam, from the Mekong Delta and the Central Highlands to the northern mountains and coastal provinces. Each landscape faces different risks and requires different solutions. Effective adaptation therefore requires territorial approaches that combine science, local knowledge, community participation and practical investment.

Farmers and local communities are not merely beneficiaries of resilience programmes. They are custodians of the landscapes where resilience must ultimately be built.

Building resilience from the ground up

Vietnam already has strong foundations to build upon. The country has demonstrated leadership in disaster risk reduction, climate adaptation, sustainable agriculture, forest protection and food systems transformation. It has also made ambitious national commitments and accumulated valuable experience across provinces and sectors. The task now is to connect these efforts more strategically and scale up what works.

At FAO, this agenda remains central to our work in Vietnam. We support initiatives that strengthen climate-resilient agriculture, promote sustainable forest and fisheries management, reduce disaster risks, advance the One Health approach, transform food systems and leverage data and innovation to improve decision-making.

Across all these areas, one principle remains clear: environmental sustainability and food security cannot be separated. The health of ecosystems and the wellbeing of people are fundamentally interconnected.

World Environment Day reminds us that the environment is not a standalone sector. It is the foundation upon which food security, public health, livelihoods, disaster risk reduction and long-term prosperity depend.

As Vietnam continues its journey toward high-income status and deeper global integration, the quality of growth will matter as much as its pace. Growth that protects and restores natural systems will be more durable, more inclusive and more resilient.

The quiet infrastructure of climate resilience is already all around us, in forests, rivers, wetlands, farms, soils and coastal ecosystems. It asks not simply to be admired, but to be understood, valued and invested in.

On this World Environment Day, recognizing that reality may be one of the most important climate actions we can take.

Vneconomy -Mr. Vinod Ahuja, FAO Representative in Vietnam

Main pillars for re-inventing growth model

Fri, 05 Jun 2026 09:30:00 GMT

Six pillars can be utilized to re-invent Vietnam’s growth model for faster development in the new era.

As traditional growth drivers based on natural resources and low-cost labor approach their limits, the Party and the government have identified science, technology, innovation, and digital transformation as decisive factors for national development rather than merely supporting pillars for key industries, under Politburo Resolution No. 57-NQ/TW.

Experience from other countries and Vietnam’s own development show that sustainable growth increasingly depends not on low costs or production expansion but on a nation’s ability to generate knowledge, absorb technology, develop digital infrastructure, and foster innovation. In this context, six breakthrough strategic pillars could help reposition Vietnam’s growth model and provide a practical foundation for accelerated development in the new era.

Pillar 1 Institutional reform

From control to development-oriented governance: Vietnam’s development model will require a fundamental shift in how the State operates. The 14th National Party Congress identified strengthening governance and development facilitation as a core priority, signaling a move away from a system centered on “management and control” toward one focused on governance, service delivery, and measurable outcomes.

A more agile legal framework: As technologies such as fintech, blockchain, AI, and digital assets evolve rapidly, Vietnam’s legal system must become more flexible and adaptive. Rather than relying on rigid, rules-based regulation, policymakers should adopt principle-based frameworks that can evolve with technological change and create space for innovation.

Closing the implementation gap: Despite a growing number of major policies on science, technology, innovation, and digital transformation, implementation remains uneven. Improving execution capacity and reshaping the mindset of public officials will be essential.

Expanding regulatory sandboxes: Vietnam has introduced initial frameworks, including Resolution No. 05/2025/NQ-CP on crypto asset markets and Decree No. 94/2025/ND-CP on banking sandboxes. Yet implementation remains incomplete across strategic sectors such as AI, blockchain, open data, autonomous robotics, unmanned aerial vehicles (UAVs), fintech, and green finance.

From ex-ante control to ex-post oversight: Regulatory reform should move away from excessive pre-approval requirements toward post-supervision, while introducing liability protections for objectively risky technology experimentation. Such a shift could encourage businesses and researchers to pursue innovation more aggressively.

Creating specialized innovation zones: Vietnam could pilot dedicated innovation hubs with preferential rules on data, investment, taxation, and emerging technologies. Ho Chi Minh City could position itself as a digital finance and fintech center, Da Nang as a hub for AI and semiconductors, Hanoi for GovTech and public data, and Khanh Hoa province for smart logistics and the marine economy.

Unlocking commercialization of research: Research priorities have shifted from being merely “applicable” to commercially viable. Yet classifying intellectual property generated from publicly-funded science and technology projects as State assets has fueled concerns over capital loss, discouraging commercialization and limiting practical deployment.

Pillar 2 Human capital

Building a strategic technology workforce: Vietnam needs to develop talent in core technologies such as AI, semiconductors, big data, cybersecurity, robotics, biotechnology, and new energy, while improving the quality of engineers and digital workers adapting to automation and AI. This will require a fundamental overhaul of education and training.

Creating an ecosystem to attract and retain talent: Talent policies should move beyond financial incentives to foster a stronger research and innovation environment. Experts need greater autonomy, access to data and laboratories, and clearer pathways to commercialize research. Vietnam should also develop regional high-tech talent ecosystems based on local strengths while improving living conditions for professionals.

Strengthening university-industry links: Vietnam should expand international partnerships, scholarships, joint laboratories, university spin-offs, and intellectual property-sharing mechanisms to accelerate commercialization. Recent policy directions also envision allowing lecturers and researchers to participate in businesses built from research outcomes.

Pillar 3 Data infrastructure AI

Building a unified national data platform: Vietnam needs an integrated national digital architecture with standardized data systems, interoperability, digital identity, cybersecurity, and data-sharing mechanisms to address fragmentation and overlapping investments across ministries and localities.

Treating data and computing power as strategic infrastructure: Under the Law on Data 2024 and Resolution No. 03/NQ-CP, priority should be given to national data centers, high-performance computing (HPC) systems, AI centers, and interoperable open-data networks. The Ministry of Public Security could further integrate population databases and expand VNeID into a national digital super platform, while domestic cloud infrastructure and Vietnamese large language models (LLMs) should also be accelerated.

Developing regional data ecosystems: Open-data ecosystems tailored to regional strengths could help drive the digital economy and smarter governance.

Balancing innovation, digital sovereignty, and data protection: Vietnam could draw lessons from Estonia’s open-data governance, China’s AI expansion, and the EU’s regulatory framework to shape its own approach. Stronger AI capabilities should go hand-in-hand with digital sovereignty and personal data protection, including the potential creation of a national data exchange to stimulate the data economy.

Scaling national AI computing capacity: Building sovereign AI infrastructure will be critical to long-term competitiveness. Tax, credit, and investment incentives should also be expanded for strategic digital technology platforms.

Pillar 4 Strategic technologies

Prioritizing core technologies: Vietnam should focus on strategic technologies such as AI, semiconductors, data infrastructure, cybersecurity, robotics, advanced materials, green technologies, and smart manufacturing. Advancing these sectors will require closer coordination across ministries and agencies.

Aligning sectoral priorities: Under Decision No. 808/QD-TTg, ministries have been assigned distinct mandates: the Ministry of Science and Technology oversees AI, core technologies, and 5G infrastructure; the Ministry of Agriculture and Environment develops biotechnology and agricultural traceability; the Ministry of Industry and Trade advances smart logistics and energy technologies; while healthcare, cybersecurity, UAVs, and AI-based financial supervision are being prioritized by relevant agencies.

Building regional technology clusters: Localities should develop specialized high-tech clusters based on regional strengths. Bac Ninh and Thai Nguyen could deepen electronics and semiconductor supply chains, Da Nang could emerge as an AI and microchip hub, Ho Chi Minh City could focus on green energy and hydrogen, while Lao Cai and Lai Chau provinces could move toward deep processing of rare earth minerals rather than raw exports.

Strengthening domestic technology firms: Vietnam also needs stronger domestic technology champions and more autonomous RD capacity.

Pillar 5 Startups, innovation, co-creation

Building an enterprise-centered innovation ecosystem: Vietnam’s innovation ecosystem should place businesses at the center, with the State acting as an enabler, universities driving research, and enterprises commercializing technology. The National Innovation Center could expand its role as a hub connecting startups, corporations, investors, and universities, while blended public-private venture funds could help share risks.

Linking innovation to regional strengths: Innovation ecosystems should align with local economic priorities and the 20 strategic technology missions outlined in Decision No. 808/QD-TTg. Public procurement should also position the State as the “first customer” for Vietnamese technology products, helping firms scale.

Strengthening the State-university-business nexus: Closer collaboration between government, universities, and businesses will be key to commercializing research and building large-scale technology firms.

Pillar 6 Dual transition green growth

Aligning technology with green growth: Science, technology, innovation, and digital transformation should support sustainable development through better resource management, emissions monitoring, energy optimization, and environmental protection. Vietnam should accelerate a “dual transition” model that combines digitalization and decarbonization to boost green productivity and climate resilience.

Applying advanced technologies for sustainability: AI, the Internet of Things (IoT), blockchain, and Earth observation satellites can strengthen environmental monitoring, energy efficiency, and climate adaptation.

Developing biotechnology and smart healthcare: Biotechnology and smart healthcare should become strategic growth sectors. Priorities include next-generation vaccines, stem-cell and immune-cell therapies, personalized medicine based on genetic data, and 3D-printed medical devices.

Scaling green finance and carbon markets: Carbon markets, green finance, and environmental technologies will be essential to attracting international environmental, social, and governance (ESG) capital and supporting businesses in their green transition. Priority areas include renewable energy, smart grids, and UAV and satellite systems for environmental monitoring, alongside a national green transition fund to support technology upgrades and compliance with global standards.

(*)Professor Nguyen Khac Quoc Bao, Dr. Nguyen Kim Duc, and Dr. To Cong Nguyen Bao, University of Economics Ho Chi Minh City.

VET-Professor Nguyen Khac Quoc Bao and colleagues(*)

Spatial resources for growth

Fri, 05 Jun 2026 04:00:00 GMT

The governance of spatial resources is a key feature of growth models based on science, technology, and innovation.

Industry 4.0 has reshaped national development models around three key pillars: digital transformation, green transition, and circular transformation. Human capital, financial capital, and natural resources remain the core inputs underpinning productive capacity and economic strength. However, the way labor, capital, and physical resources are organized, allocated, and connected is undergoing profound change. Countries are shifting from growth models driven by capital and physical resources toward those powered by science, technology, innovation, and sustainability, placing people at the center.

A critical element of this new model is the governance of spatial resources. Leading countries have increasingly adopted comprehensive resource management strategies based on three-dimensional (3D) and four-dimensional (4D, including time) spatial frameworks. This approach spans sovereign territory from the Earth’s core to the atmosphere, treating land and territorial space as “means of production,” “development platforms,” and multidimensional ecosystems.

Effective governance of these resources requires integrated national land-use planning tools that allocate and zone land by spatial function - sub-surface, surface, and airspace - to simultaneously support socio-economic development, national defense, security, environmental protection, biodiversity conservation, and climate adaptation.

Shift in strategic thinking

To realize this vision, Vietnam must establish geographic information system (GIS) infrastructure ensuring that all national resources - from forests, mineral reserves, and urban land funds to radio spectrum space - are digitally cataloged and assigned precise geospatial coordinates. The National Spatial Data Infrastructure (NSDI) serves as the backbone of the digital economy and modern governance.

More than a map repository, the NSDI is a comprehensive framework encompassing institutions, data-sharing policies, technical standards, technologies, and networks of agencies responsible for data collection, creating a strong foundation for management and development.

The operation of multilayer thematic mapping technologies and digital twin systems for managing national resources, from the Earth’s core to the atmosphere, depends on the convergence of five advanced technological pillars.

The first pillar is big data, serving as the “storage brain” that processes and maintains thousands of digital data layers generated by agencies at all levels. The system integrates datasets ranging from geology, hydrology, and infrastructure to demographics and healthcare, with each data point geotagged into a unified data lake to support more effective national decision-making.

The second pillar is AI and machine learning, functioning as the “analytical brain” that automates analysis and forecasting in a constantly changing spatial environment. Advanced algorithms can automatically analyze and validate information collected from remote sensing imagery, drones, street cameras, and citizen feedback.

The third pillar is the Internet of Things (IoT) and smart sensors, essential for creating a living digital replica closely aligned with reality. Millions of IoT devices act as “sensory organs,” embedded in infrastructure, transport networks, underground pipelines, and natural environments to continuously measure indicators such as temperature, water flow, pressure, and vibration. This network generates uninterrupted real-time data, ensuring the digital twin remains synchronized with the constantly evolving physical world and provides a comprehensive, up-to-date view.

The fourth pillar, cloud computing, acts as the “circulatory system” linking the national information infrastructure and breaking down data silos across ministries and sectors. It provides the foundation for centralized, synchronized information management.

The fifth pillar is blockchain technology, integrated as both a “security wall” and a “trust engine” to protect the entire data ecosystem. By recording data in real time and maintaining immutable records of every adjustment, permit, or transaction, blockchain strengthens transparency and security while ensuring only authorized individuals can access or modify databases.

The integration of the NSDI, the National Digital Cadastral Database (NDCD), and the five technological pillars of the digital twin creates a digital replica of the country’s entire physical space. Multilayer thematic mapping enables the government to visualize and manage economic and social development, as well as environmental protection, in an integrated manner.

From transport infrastructure, seaports, border gates, and toll booths to the positioning of public transport vehicles, all assets can be monitored and updated continuously. The system also manages telecommunications infrastructure; tourism facilities, resorts, restaurants, hotels, and travel routes; healthcare and educational systems; and cultural and sports facilities. At the same time, it supports environmental pollution control, biodiversity monitoring, climate adaptation, and the management of solid, liquid, and gaseous waste.

The system integrates financial infrastructure, including treasury operations, banks, and credit institutions; supports public asset and cadastral management; and incorporates postal codes and public service user behavior analysis, creating a comprehensive and intelligent governance ecosystem.

In addition, the system integrates financial infrastructure, including treasury operations, banks, and credit institutions; supports public asset and cadastral management; and incorporates postal codes and public service user behavior analysis, creating a comprehensive and intelligent governance ecosystem.

Land value capture and spatial finance

Integrated spatial planning is not only a tool for territorial organization but also a macro-financial instrument for managing a nation’s most valuable public asset: sovereign territory. In modern urban governance, public infrastructure investments, such as high-speed railways, airports, and expressways, or planning adjustments that increase land-use intensity, often generate enormous increases in the value of surrounding private real estate. Without mechanisms to recapture part of this windfall, public budgets face growing pressure while a small group of private actors captures disproportionate gains.

Land Value Capture (LVC) is a spatial finance mechanism that allows communities to recover and reinvest increases in land value generated by public investment or planning decisions. LVC mechanisms take many forms, including betterment levies, impact fees, linkage fees, and voluntary contributions from high-density development projects. From a property rights perspective, rezoning land use or granting permits for high-rise development effectively amounts to the State “privatizing” part of public space. Such transfers should not occur without compensation.

Spatial data management through multilayer thematic mapping enables governments to more accurately value and charge for the use of surface land, underground infrastructure, and airspace development. Granting higher development density should therefore be accompanied by financial obligations that reinvest value into public goods, ensuring fairness and long-term sustainability.

The Transfer of Development Rights (TDR) model has been widely implemented in many jurisdictions. In countries such as India and the US, development rights above transit hubs have been actively commercialized, directly linking public transport systems with commercial real estate. Supported by multidimensional cadastral systems, these “spatial rights” are increasingly treated as tangible assets that can be traded, mortgaged, and legally-registered in national databases, opening new avenues for development financing.

Creating new economic spaces

Spatial planning in the ecological era requires that territories be divided into clearly-defined functional zones that balance economic use with the preservation of natural capital. Unlike fragmented development, multilayer thematic mapping under an integrated national spatial planning framework would establish three categories of zones: strictly protected areas, restricted development areas, and development-priority areas, creating the basis for balanced and sustainable growth.

Integrated spatial planning is also a prerequisite for the circular economy and green transition. Circular transformation cannot occur solely at the level of individual enterprises; it must be organized through industrial clusters where waste or excess heat from one facility becomes an input for another. Applying material flow mapping through GIS platforms enables the optimization of these closed-loop supply chains, reducing logistics costs and carbon emissions while supporting sustainable development goals.

With more than 3,260 km of coastline and a vast exclusive economic zone, the “blue economy” is a vital pillar of Vietnam’s long-term development. What distinguishes the blue economy from the traditional marine economy is its emphasis on the sustainability of ocean ecosystems. Marine spatial planning, supported by the NDCD, enables simultaneous management of surface waters, water columns, seabeds, and subsurface marine areas.

Beyond traditionally-governed domains, the low-altitude economy and the space economy are opening new frontiers for growth. The low-altitude economy operates within airspace below 3,000 meters and includes drone manufacturing, urban air mobility, low-altitude logistics, and precision agriculture. Three-dimensional thematic mapping technology enables the digitization of “low-altitude flight corridors,” dividing airspace into dynamic safety matrices. Governments can regulate licensing, radio frequencies, and airspace usage rights, transforming urban airspace into a new category of economic asset and public revenue source.

Meanwhile, the space economy, including satellite orbit management, satellite internet, and remote sensing, forms a critical foundation of the data economy. Satellite imagery collected from space serves as a core input for updating topographic maps, monitoring climate change, and supporting the verification cycle within the Plan-Do-Check-Act (PDCA) framework for integrated national land-use planning.

Restructuring social foundations

People are at the center of development. Investment in healthcare and education is a direct investment in human capital, aimed at improving quality of life and enhancing the physical and intellectual well-being of society. Vietnam’s Law on Identity and Project No. 06 have marked a transformative turning point by introducing a unified personal identification number through which citizens interact with the entire public service system.

This digital identity is directly linked to land databases, creating a comprehensive governance profile for each individual. Unified citizen data can connect social insurance, health insurance, tax identification, population management, electronic health records, student identification systems, Party membership, civil servant and public employee records, and public service user accounts, while also integrating with banking and treasury systems.

In the digital era, the most valuable asset of an economy is no longer oil but user data. Overreliance on cross-border technology platforms poses growing risks to data security and digital sovereignty. A strategic priority is therefore to strengthen the personal digital identity system to ensure consistency across public services, while taking initial steps toward building a Vietnamese digital ecosystem and social network. Leveraging the strength of nearly 100 million domestic users, starting with students, civil servants, and public employees, such platforms could become spaces for policy communication, social interaction, and the development of an autonomous digital economy.

Investment in healthcare should extend beyond building new hospitals to restructuring the entire healthcare system around smart, preventive care supported by multilayer thematic mapping. Priority should be given to preventive healthcare systems capable of early disease detection and control, alongside primary healthcare networks built around family doctors connected to commune and ward health stations.

Technology plays a central role through the development of a lifelong electronic health record linked to each citizen’s digital identity. These records would store medical histories, treatment data, and interoperable test results across healthcare tiers and satellite hospitals, eliminating costly duplication in diagnosis and treatment.

AI-powered healthcare applications could further support disease prevention by delivering public health guidance, recommending initial care measures, directing citizens to the most appropriate healthcare facilities based on geospatial healthcare mapping, and coordinating referrals more efficiently. Combined with real-time epidemiological monitoring, such systems would significantly strengthen national preparedness and responsiveness to public health challenges.

In the digital age, education systems must be fundamentally restructured to prioritize lifelong learning, self-directed study, creativity, entrepreneurship, and self-reliance. Educational philosophy should revolve around the principles of “learning to know, learning to do, learning to be, learning to live together, and learning to become fully human,” with the goal of cultivating globally-competitive citizens capable of absorbing global knowledge and succeeding in international labor markets.

A key reform in general education management is the establishment of detailed learning outcome standards for every educational level, grade, and lesson. New curricula should not rely solely on textbooks but also include standardized model video lessons developed by top educators and aligned with learning outcomes. Through interactive television and online education platforms, teachers in remote areas could use these resources to enhance classroom instruction, promoting equal access and establishing a consistent national education standard.

For career orientation, adopting Germany’s dual vocational training model represents a strategic direction. Students would combine classroom learning with continuous workplace training, ensuring stronger alignment between education and labor market needs. The system should support lifelong learning in life skills while providing specialized pathways across a broad range of occupations, helping standardize practical competencies and meet labor market demand more effectively.

Assessment systems should also be standardized, with competency- and knowledge-based examinations spanning general education, vocational training, and higher education. These systems should evaluate not only knowledge, but also skills, attitudes, autonomy, and applied competencies through online testing. Within the public sector, civil servant and public employee training should transition significantly toward online learning, reducing the time and cost of centralized training while maintaining rigorous, transparent competency assessments through standardized digital examinations.

Spatial performance budgeting

For systems such as the NSDI, the NDCD, healthcare, and education to function effectively, public financial management must be fundamentally reformed. Traditional line-item budgeting, often associated with rigid, fragmented spending and inefficiencies, should be replaced by an outcome-based budgeting system.

Performance-based budgeting is essential to safeguarding national resources. Public expenditure should operate through a medium-term framework aligned with development strategies while applying a “rolling annual adjustment” mechanism to maintain flexibility amid macro-economic changes. Whether for recurrent expenditure or development investment, every unit of public spending must be tied to measurable outcomes that directly support growth objectives, ensuring efficiency and accountability.

A key innovation in the Vietnamese context lies in integrating outcome-based budgeting with multilayer thematic mapping systems. The management of spatial resources, public assets, land, minerals, environmental protection, and budget allocation would be guided by spatial statistics and geospatial indicators. By layering data on population, employment, and public service density through GIS platforms, policymakers can gain a comprehensive and visual understanding of geographic inequality, enabling more targeted and evidence-based decisions.

Investment prioritization can also be automated through spatial algorithms. Areas experiencing shortages of schools, hospitals, transport infrastructure, cultural institutions, sports facilities, or unusually high unemployment rates would automatically be flagged for priority budget allocation in the relevant sectors. Evidence from Organization for Economic Co-operation and Development (OECD) countries and Latin America suggests that presenting budget allocation data through geographic mapping not only enhances transparency but also improves poverty reduction outcomes and narrows urban-rural development gaps.

Spatial budget management, when combined with land value capture mechanisms and digital identity systems, forms a powerful governance triangle capable of accelerating national development strategies.

As space becomes digitized, governments can implement land value capture policies to redistribute gains generated by land-use conversion and increased development density. These mechanisms can unlock substantial resources for infrastructure development while supporting emerging growth models such as the blue economy, the circular economy, and the low-altitude economy, paving the way for a more diversified and sustainable economy.

Ultimately, infrastructure and technology reforms must serve people. The integration of spatial databases, unified digital citizen identities, intelligent preventive healthcare systems, and lifelong learning models can create an ecosystem that nurtures talent and strengthens human capital. By allocating budgets based on measurable outcomes and spatial data, the new development model establishes an institutional environment where individual incentives align with national interests, creating the momentum for Vietnam to become a prosperous, self-reliant, and globally-competitive nation.

VET-Associate Professor Nguyen Dinh Tho

HCMC aims to become a multi-centric megacity in new 100-year vision

Wed, 03 Jun 2026 07:10:00 GMT

The draft master plan proposes that the southern city operate as a multi-centric megacity based on a "5-5-10" structure: 5 dynamic growth poles, 5 strategic axes, and 10 development management zones.

The Ho Chi Minh City People’s Council hosted a seminar titled "Ho Chi Minh City Master Plan: A 100-Year Vision" on June 2, during which the draft master plan—jointly developed by the National Institute for Urban and Rural Planning (VIUP) and Boston Consulting Group (BCG)—was presented for the first time.

Fundamental shift in planning mindset

The most widely supported consensus at the seminar was not centered on specific targets, but rather the urgent need for a fundamental transformation in planning philosophy.

Dr. Tran Du Lich, former Deputy Head of the HCMC National Assembly delegation, raised a pivotal question: "In the past, planning primarily focused on ‘what to do with this piece of land.’ However, the new mindset must address much larger questions: Which economic sectors will generate the highest value? How will people live and work? What infrastructure will trigger a breakthrough in productivity? And what factors will ensure sustainable development and climate resilience?"

"With a total area of over 6,700 sq.km and a population of approximately 14 million following administrative mergers, the city is no longer just a single urban entity; it is evolving into a megacity region. Our planning must reflect this reality. This shift in mindset carries profound practical significance," Mr. Lich said.

Echoing this view, Deputy Director of the National Institute for Urban and Rural Planning (VIUP) Sam Minh Tuan stated that HCMC’s greatest challenge is not a lack of development potential. Instead, it lies in the ability to reorganize resources and development space into a unified, multi-centric, and efficiently functioning structure.

The "5-5-10" model and six specialized zones

The draft master plan proposes that the city operate as a multi-centric megacity based on a "5-5-10" structure: 5 dynamic growth poles, 5 strategic axes, and 10 development management zones. This structure will be interconnected by a multi-layered urban infrastructure network—including metros, Transit-Oriented Development (TOD), and both underground and elevated spaces—serving as the city's "backbone."

To integrate deeply into global value chains, the plan establishes six specialized zones backed by breakthrough regulatory mechanisms: high-tech zone (Thu Duc and vicinity) specializing in semiconductor chips, electronics, and robotics; free trade zone (Cai Mep - Can Gio port cluster) integrating logistics with export-oriented manufacturing; International Financial Center operating under a legal framework aligned with international best practices; digital and data tech enter prioritizing computing infrastructure, Artificial Intelligence (AI), and cybersecurity; national energy hub developing LNG, hydrogen, and offshore wind power; and commercial and cultural hub focusing on large-scale cultural and trade development.

Contributing to the draft, Architect Ngo Viet Nam Son suggested that HCMC could achieve double-digit growth by aggressively pursuing regional connectivity. This includes strengthening links with Dong Nai City and Tay Ninh Province toward border gates and the Central Highlands, while simultaneously tapping into the East Sea corridor via the Cai Mep - Thi Vai port cluster.

"Many of the urban models proposed for HCMC, such as TODs and Free Trade Zones, are unprecedented in Vietnam’s current legal system. Therefore, a corresponding legal foundation is required to bring these plans to life," Mr. Son noted.

Productivity: critical bottleneck for growth

Mr. Vu Ngoc Dung, representing a research group that compared 40 competitiveness indices of the city with approximately 50 Southeast Asian metropolitan areas, presented several noteworthy findings. While HCMC's greatest historical advantages have been its large population and young workforce, data shows that population growth and the city's ability to attract new residents have slowed significantly since 2021.

"To maintain high growth rates in the future, the city must remain attractive to both residents and businesses by offering superior living and working conditions," Mr. Dung suggested.

The most critical point in Mr. Dung’s analysis was his warning regarding a "productivity trap." The productivity gap between HCMC and other localities is narrowing, while the costs associated with traffic congestion, logistics, and housing are increasingly becoming barriers to investment. Consequently, to accelerate growth, the city must lower operational costs for businesses and the cost of living for residents. These are the prerequisites for continuing to attract investment, securing high-quality labor, and maintaining development momentum.

Echoing this sentiment, Mr. Vu Doan Thai Long, Senior Project Manager at Roland Berger Vietnam, argued that HCMC does not lack potential, but rather the mechanisms to transform that potential into a sustainable growth model.

"The city needs to focus on high-value industries such as semiconductors, biotechnology, and specialized hubs for healthcare, education, logistics, and the digital economy," Mr. Long proposed. He further recommended the establishment of a powerful city-level coordination mechanism, "institutional sandboxes," and iconic projects with a strong "spillover" effect.

Resources and international cooperation

Regarding the financing of the master plan, Ms. Vu Hoang Uyen, a representative from the World Bank, proposed restructuring public investment to focus on key programs such as Transit-Oriented Development (TOD). With rational resource allocation, HCMC could potentially absorb three to five times the VND800 trillion ($30.4 billion) currently earmarked for public investment over a five-year period. She also suggested utilizing green bonds and carbon credits as supplementary financial tools.

Notably, diplomatic representatives from Singapore and France both affirmed their readiness to support HCMC in its planning process—ranging from multimodal connectivity models to transportation infrastructure and the development of high-quality urban living spaces.

Vneconomy-Phan Nam

Gia Lai emerges as renewable energy investment hub

Tue, 02 Jun 2026 23:30:00 GMT

The central province securing several large-scale wind power projects in the first months of 2026.

The central province of Gia Lai is attracting a growing wave of investment in renewable energy, with several large-scale wind power projects securing investors in the first months of 2026.

Benefiting from favorable wind conditions, abundant land resources and a strong commitment to green growth, Gia Lai has become one of the country's most promising destinations for renewable energy development. The recent influx of investment reflects both investor confidence in the province's potential and efforts to implement Vietnam's revised National Power Development Plan VIII.

In late May, provincial authorities approved a consortium comprising ANI Power, Song Da 505 and Trang Duc Solar Power as the investor for the Chu Pong Wind Power Plant project in Bo Ngoong Commune. The project carries a total investment of more than VND1.6 trillion ($62 million) and is expected to begin construction in December 2026 before entering commercial operation in early 2028.

Earlier in April, another consortium was selected to develop the 42-MW Nhon Hoa 4 Wind Power Plant, with total investment estimated at VND1.68 trillion.

Meanwhile, VinEnergo, a member of Vietnam's leading conglomerate Vingroup, became the investor for the Hon Trau Phase 1 and Vinh Thuan wind power projects, which have a combined investment exceeding VND53 trillion.

By the end of 2025, Gia Lai had 87 renewable and hydropower projects commercially operated, including 17 wind farms with a combined capacity of 916 MW, reinforcing its position as one of Vietnam's leading renewable energy centers.

VnEconomy-Phương Nhi

For full thorough transformation of development model

Tue, 02 Jun 2026 09:30:00 GMT

As Vietnam goes about renewing its growth model it must also pay due regard to reviewing its development model.

The Resolution from the 14th National Party Congress in January and Conclusion No. 18-KL/TW from the Second Plenum of the 14th Party Central Committee, on April 2, consistently identify an average annual economic growth rate of 10 per cent or higher during the 2026-2030 period, alongside the establishment of a new growth model based on science and technology, innovation, and digital transformation as the primary drivers. This foundation is intended to enable Vietnam to break through the middle-income trap, become a developing country with modern industry and upper-middle income by 2030, and realize the 2045 vision of becoming a developed, high-income nation.

The Resolution from the 14th National Party Congress also set forth the guiding principle of “Strategic autonomy, renewing the development model, using development to maintain stability and stability to accelerate the country’s rapid and sustainable development, improve the people’s living standards and happiness, and firmly safeguard the Socialist Republic of Vietnam.”

Recent conclusions from the Secretariat, the Politburo, and Party General Secretary and State President To Lam have also underscored the urgent need to review and study the country’s development model, particularly in conjunction with the 100th anniversary of the Party’s leadership of the Vietnamese revolution, while shaping national development with a vision for the next 100 years.

Theoretical foundations

According to the Organization for Economic Co-operation and Development (OECD) (1962), a “development model” refers to a system of theoretical and practical frameworks used to understand and analyze the socio-economic and political development process of a country or territory.

A “national development model” is a system of theoretical and practical frameworks designed to explain, guide, and establish the interactive relationship between the State, the market, and society in order to optimize resource allocation while simultaneously achieving economic growth, improving quality of life, and enabling the comprehensive transformation of a nation from underdevelopment to a State of civilization, prosperity, and sustainability.

Though the terms “growth model” and “development model” are often used interchangeably, they are distinct concepts with different policy implications for a country’s socio-economic development. Broadly speaking, there are three major differences between the two.

First, a growth model primarily focuses on quantitative factors, measured through indicators such as economic growth, GDP size, income per capita, and employment. By contrast, a development model has a broader scope, placing greater emphasis on qualitative and more comprehensive dimensions, measured through indicators such as living standards, quality of life, health and social welfare, the Human Development Index (HDI), poverty reduction, inequality reduction (GINI coefficient), improvements in healthcare and education, progress in socio-economic structures, and environmental sustainability, including reductions in air and water pollution, greenhouse gas emissions, and ensuring that modernization does not compromise the well-being of future generations.

Second, a growth model generally seeks to achieve objectives over the short to medium term (three to five years), such as Vietnam’s 2026-2030 socio-economic development strategies and plans. In contrast, a development model is inherently long-term and more sustainable in nature, as reflected in Vietnam’s development strategies and orientations toward 2045, 2100, and beyond.

Third, achieving rapid, sustainable, and inclusive development requires high economic growth as a necessary condition, but this must go hand-in-hand with sustainability and inclusiveness as sufficient conditions. Therefore, while growth and development models are closely interconnected, the growth model serves as the necessary foundation for building a development model that places people as both the purpose and the center of all development policies.

Seven international lessons

Seven key lessons can be drawn from the experiences of China, South Korea, Nordic countries, and the Netherlands in developing and implementing national development models.

First, establishing a national development model is an inexorable trend. Maintaining growth models dependent on capital, low-cost labor, and natural resources has revealed increasing limitations as input resources become more constrained.

Therefore, alongside improving the efficiency of the two traditional growth drivers - labor and capital (including financial capital and machinery and equipment) - countries that successfully escaped the middle-income trap, particularly China and South Korea, as well as advanced welfare states in the Nordic region, have shifted toward growth models driven more heavily by Total Factor Productivity (TFP). These efforts focus on five key pillars: (i) advancing science and technology, innovation, and digital transformation; (ii) developing high-quality human resources; (iii) improving market efficiency to mobilize and allocate resources more effectively; (iv) developing infrastructure, including digital infrastructure; and (v) reforming economic institutions.

Second, building a strong developmental State alongside a dynamic and efficient market. The role of a “developmental State” includes strategic planning, resource coordination, infrastructure development, promoting science and technology, and ensuring macro-economic stability. It also involves designing sound institutions that foster competition, protect property rights, uphold the rule of law, and support innovation, while accompanying and assisting people and businesses in adapting to economic changes, promoting competition, attracting investment, expanding exports, and facilitating technology transfer, alongside ensuring social welfare.

The State should avoid excessive administrative intervention in markets and instead create favorable conditions for diverse economic sectors to thrive while preventing monopolistic behavior. Large corporations and nationally-championed enterprises may receive preferential treatment and support, but they must commit to and fulfill a leading role in promoting broader business development through supply chain linkage mechanisms, rather than constraining the growth of small and medium-sized enterprises (SMEs) and startups.

Third, developing inclusive institutions that balance broad participation with risk control. Inclusive institutions enable a broad range of stakeholders to access resources, compete fairly, have their rights protected, and contribute to development. As such, they “open opportunities” to the wider population rather than serving only a privileged minority. Inclusive institutions are critical to sustaining long-term development because secure property rights encourage business investment, fair competition drives innovation, and broad access to education, employment, and entrepreneurship allows societies to better mobilize resources. Transparent policymaking also lowers transaction costs and strengthens market confidence. However, for a developing economy such as Vietnam, institutional inclusiveness must strike an appropriate balance between encouraging participation and managing risks.

Fourth, reform should follow a gradual approach but be implemented decisively, avoiding incomplete execution. This important lesson from China is particularly relevant to Vietnam, given the country’s limited financial resources relative to development needs and limited experience in emerging sectors, especially the digital economy, the green economy, energy transition, AI, semiconductors, smart cities, free trade zones, international financial centers, digital assets, and carbon markets. Piloting new economic models through a prioritized reform sequence, from easier to more complex areas, would allow Vietnam to access advanced technologies and global best practices while drawing lessons from risks and shortcomings encountered elsewhere. This approach would support scaling up successful models while containing risks associated with less effective ones.

Fifth, creating effective mechanisms for resource mobilization, allocation, and benefit distribution aligned with long-term socio-economic development goals. Resources are critical for achieving rapid, sustainable, and inclusive development, and successful countries have developed mechanisms to mobilize, allocate, and utilize them efficiently. This requires the effective functioning of factor markets, including land, finance, labor, and science and technology. Rather than focusing on short-term objectives, resource allocation and welfare policies should be designed and adjusted with medium to long-term horizons in mind, contributing to more effective State governance, reduced social welfare pressures, and the mitigation of demographic challenges, while increasing public trust and social consensus, particularly as Vietnam enters the final stage of its demographic dividend and faces rapid population aging.

Sixth, people are the center of development. In addition to affirming the central role of citizens, China, South Korea, and Nordic countries have all prioritized investment in human capital, education, and training, including strong emphasis on Science, Technology, Engineering, and Mathematics (STEM) education, vocational training, and developing universities with world-leading teaching and research capabilities. These countries have also pursued major reforms in healthcare and social welfare systems to ensure fairness, inclusiveness, efficiency, and transparency, while strengthening public oversight and the role of civil society organizations, thereby enhancing transparency across government institutions, businesses, and the broader economy.

Seventh, pursuing rapid, sustainable, and inclusive development while maintaining macro-economic stability. This includes consistently prioritizing macro-economic stability, inflation control, currency value preservation, and safeguarding major economic balances. It also requires strengthening national competitiveness and enhancing the economy’s resilience, self-reliance, and strategic autonomy amid increasing uncertainty and volatility. At the same time, countries must ensure economic security, energy security, food and water security, supply chain resilience, and cybersecurity and data security.

Proposed development model and recommendations

Vietnam can draw lessons from and combine development models adopted by countries in the region and globally. However, the model must be tailored to Vietnam’s specific conditions to address limitations, maximize effectiveness, seize opportunities, and strengthen the country’s position.

The development philosophy should be: “A sustainably developing economy; a civilized society; a healthy environment; with people and citizens’ happiness placed at the center.”

Regarding guiding principles, strategic orientation, and time horizon, Vietnam should establish a national development model based on productivity, innovation, green growth, sustainability, strategic autonomy, and inclusiveness through 2045, with a vision to 2100 (the end of the first century of the new millennium) or 2130 (marking 200 years since the founding of the Party). The research team recommends the 2100 horizon for two main reasons: (i) it marks the end of the first century of the new millennium - an important and memorable milestone adopted by many countries; and (ii) it is not excessively distant from the present, particularly in the context of increasingly rapid and unpredictable global changes.

The overarching objective should be rapid, sustainable, inclusive, and people-centered development, with human well-being and citizens’ happiness at the core.

The proposed development formula or model may be summarized as: Development Model = Economic Growth + Social Progress + Equity + Environmental Sustainability + Enhanced Human and Institutional Capacity (including implementation capacity).

To realize these development goals, the Research Team at the BIDV Training and Research Institute offers several recommendations. First, it is necessary to clarify the substance and scope of the new development model. Second, Vietnam should proactively update, clarify, and improve the model of the “socialist-oriented market economy” to ensure it remains relevant in the current context. Third, it is important to define a “national value system” and establish corresponding mechanisms, policies, and solutions to support it. Fourth, Vietnam should develop a standardized framework of indicators for the new development model, reflecting its core principles, objectives, and substantive content.

In terms of implementation, a number of major solution groups are proposed. The first group concerns national governance reform. This includes undertaking structural reforms based on three foundational pillars: a developmental State, a market economy with the private sector as the primary growth driver, and inclusive institutions. It also involves redefining relationships among the Party, the National Assembly, the government, and local authorities; among the State, the market, and social organizations; between the central government and localities; and among regions themselves. In parallel, Vietnam should undertake comprehensive reforms in the process of drafting, implementing, and evaluating laws and regulations.

The second group of solutions concerns economic development and the advancement of new productive forces. Vietnam should fundamentally renew its growth model by focusing on five key areas: (i) science and technology, innovation, and digital transformation; (ii) high-quality human resources development; (iii) greater market efficiency to improve resource mobilization and allocation; (iv) infrastructure development, including digital infrastructure; and (v) economic institutional reform, with strong emphasis on implementation effectiveness. These efforts should go hand-in-hand with maintaining macro-economic stability, controlling inflation, safeguarding major economic balances, and strengthening the economy’s strategic autonomy, resilience, and competitiveness amid a rapidly-evolving global environment marked by restructuring, protectionism, and growing fragmentation in trade and technology.

Vietnam should simultaneously pursue a “3i Strategy” - investment, infusion, and innovation, based on the World Bank’s 2024 framework.

At the same time, economic restructuring should be accelerated, including reform and modernization of the State sector, State-owned enterprises (SOEs), public service units, public investment, and the State budget, as well as restructuring the financial sector to improve resource mobilization and allocation. Stronger links between FDI enterprises and domestic firms should also be prioritized. Efforts should focus on improving growth quality, raising investment efficiency (with the Incremental Capital-Output Ratio (ICOR) targeted at 4-4.5 by 2030, then gradually declining to around 3), increasing localization rates, strengthening strategic autonomy and resilience, and safeguarding food security, energy security, supply chain security, and cybersecurity and data security amid growing uncertainty.

The third group of solutions focuses on social development, environmental protection, people-centered development, and strengthening social trust. This includes expanding access to healthcare and education services through a combination of “ability-to-pay” and “higher fees-higher support” models, improving access to housing, and enhancing the sustainability of the social insurance system.

Vietnam should also prioritize the development of high-quality human resources through major reforms in education, healthcare, and social welfare systems, including preferential treatment for engineers in high technology, IT, AI, data science, and cybersecurity, while implementing practical and effective policies to attract overseas Vietnamese scientists and professionals to contribute to national development. Improving the Human Development Index (HDI) should also remain a priority.

Comprehensive labor market reforms are equally important, including vocational training, reducing the informal workforce, slowing population aging, and improving access to healthcare, public health, and housing services.

Vietnam must also proactively adapt to climate change and strengthen environmental protection while ensuring harmony between economic growth and emission reductions. This requires integrating green transition objectives into national and local socio-economic development strategies and business planning; addressing environmental pollution in urban areas, industrial parks, and craft villages; updating climate adaptation strategies for the Mekong Delta; introducing carbon taxation and developing a carbon market to accelerate low-carbon technological transitions; and implementing a combination of incentives and enforcement measures to encourage green transition, environmental protection, and waste management. Pilot initiatives in one or two pioneering localities could be considered, alongside the development of a National Green Transition Strategy.

Science and technology, data, and digital platforms should also be leveraged to strengthen engagement with citizens and businesses and improve public service delivery. Institutionalized, substantive dialogue mechanisms should be established between the government, local authorities, business associations, and labor organizations, while encouraging citizens, experts, and social organizations to participate in monitoring and providing feedback on major economic projects to maximize harmony between three goals: economic prosperity, social equity, and environmental sustainability.

Vietnam should also comprehensively promote the development of Vietnamese culture and people by building an advanced culture imbued with national identity, grounded in national values, Vietnamese cultural values, family values, and standards of human behavior and business ethics. Citizens should remain at the center of cultural development, not only as beneficiaries but also as creators and promoters of cultural values, particularly in social order, public safety, social welfare, diplomacy, tourism, and cultural exchange.

Lastly, Vietnam should formulate a comprehensive strategy for mobilizing and allocating development resources, combined with a consistent commitment to thrift, waste reduction, stronger socio-economic and environmental risk management, and decisive economic restructuring, which fundamentally means restructuring national resources.

VET-Dr. Can Van Luc and the Research Team at the BIDV Training and Research Institute

In need of an appropriate development model

Tue, 02 Jun 2026 03:30:00 GMT

As myriad global shifts take center stage, the need for Vietnam to identify and adopt an appropriate development model grows in importance.

Vietnam has recorded historic progress after nearly four decades of “Doi Moi” (Economic Renewal), but the existing growth model now faces growing structural constraints. The economy remains heavily dependent on investment capital, resource extraction, low-cost labor, and FDI. Labor productivity continues to trail the country’s East Asian peers, domestic innovation remains limited, large private enterprises are still relatively few in number, and institutional and governance bottlenecks persist. At the same time, the rapid rise of AI and automation is heightening the risk of technological lag.

Amid profound global shifts, national development can no longer be defined solely by economic growth or traditional industrialization. A modern development model must be integrated and multidimensional, encompassing development goals, political and legal institutions, economic structure, social well-being as well as environmental sustainability, climate resilience, science and technology, innovation, digital transformation, culture, stakeholder engagement, and international integration. These elements must work together within a long-term framework that can adapt, self-correct, and withstand external shocks.

New dynamics

Digital transformation has become an unavoidable global trend. According to the World Economic Forum (2025), by 2030 around 22 per cent of jobs worldwide will be significantly reshaped by AI and automation, with roughly 170 million new jobs created while some 92 million existing roles may disappear.

Vietnam’s digital economy now accounts for approximately 14.2 per cent of GDP and is among the fastest-growing in Southeast Asia, supported by more than 78 million internet users and over 170 million mobile connections. The country has also taken notable early steps in semiconductors and AI, attracting major technology companies to invest and establish RD centers.

The green transition is another defining trend, bringing both challenges and opportunities. Vietnam’s net-zero commitment by 2050, announced at COP26, along with the Just Energy Transition Partnership (JETP), requires a major shift in energy systems while creating opportunities to restructure the country’s energy mix toward renewable and clean sources. Green transformation is also becoming essential for maintaining access to major export markets such as the EU, which is introducing stricter carbon-related regulations, including Carbon Border Adjustment Mechanism (CBAM), the Ecodesign for Sustainable Products Regulation (ESPR), and the Corporate Sustainability Reporting Directive (CSRD).

At the same time, technology competition and disruptions caused by global crises are reshaping supply chains. Multinational corporations are increasingly adopting new strategies to diversify FDI flows. Vietnam is emerging as an increasingly attractive destination, with disbursed FDI surpassing $25 billion in 2025.

However, relying primarily on low-value assembly and processing will make it difficult for Vietnam to escape the middle-income trap. The challenge now is to move up the global value chain by strengthening science and technology, enhancing the competitiveness of Vietnamese enterprises, deepening links between FDI and domestic enterprises, and accelerating innovation-driven entrepreneurship.

The 14th National Party Congress set an ambitious target for Vietnam to become a high-income developed country by 2045. Based on the World Bank’s 2024 threshold, high-income status requires Gross National Income (GNI) per capita of around $14,005 annually, meaning Vietnam would need to roughly triple current income levels. This presents a formidable challenge, particularly as the country entered a population aging stage in 2011 and is projected to become an aged society by around 2036.

To adapt to this new reality, Vietnam’s development model must shift toward one driven by Total Factor Productivity (TFP), science and technology, innovation, AI, robotics, data, stronger domestic enterprises, and the digital and green economies, underpinned by modern institutions.

Theoretical framework

A national development model is more than a strategy or a collection of policies. It must answer fundamental questions: What are the country’s development goals? How should development be pursued? Who are the key actors? What values should guide progress? How should the State, market, and society interact? And how should the country integrate with the world? A theoretical framework for Vietnam’s development model in a new era can be built around several core ideas.

Development goals

Vietnam’s new development model should place people at its center, national self-reliance at its foundation, and innovation and knowledge as its main drivers, while making sustainable development and quality of life the ultimate goals. By 2045, the country aims to achieve high-income developed status, while longer-term goals beyond that milestone remain open for further discussion.

In this framework, economic growth is necessary but not sufficient. The ultimate objective is human development and well-being, in line with the thinking of Amartya Sen (1999) and the United Nations Development Programme (1990). Progress, therefore, should be measured not only by GDP but also by broader indicators such as the Human Development Index (HDI), happiness, sustainability, resilience, and adaptive capacity.

Values and development orientation

Vietnam’s new development model should be guided by a clear set of values: a resilient and prosperous nation with strong self-reliance; a democratic, rules-based, fair, and humane society; an innovative, digital, green, and sustainable economy; a harmonious relationship between people and nature; citizens who are compassionate, creative, responsible, and motivated to contribute; an advanced culture rooted in national identity; and a Vietnam that actively integrates into the global economy while contributing responsibly to the international community.

In this context, resilience means both self-reliance and the ability to withstand shocks, while prosperity implies not only modernization but also a higher quality of life. Democracy, the rule of law, and social discipline also depend on effective governance. A key feature of this model is its emphasis on creativity and contribution as drivers of faster growth and stronger competitiveness. This marks a shift from an earlier period, when individuals were expected mainly to follow rules and fulfill responsibilities. In an era shaped by rapid technological change and digital transformation, innovation has become essential for accelerating development.

At the same time, the model retains a defining feature of Vietnam’s development path: its socialist orientation under the leadership of the Communist Party of Vietnam, adapted to national conditions and the demands of a changing era.

Development institutions

Institutions serve as the central “operating system” of Vietnam’s development model, reflecting the arguments of Douglass North (1990) and Daron Acemoglu and James Robinson (2012). Institutional quality shapes a country’s ability to mobilize and allocate resources, sustain market confidence, build social trust, and foster innovation, while preventing governance bottlenecks.

This model calls for a modern socialist rule-of-law state with transparent and stable laws; Party leadership through policy direction and personnel management; data-driven governance built on digital platforms; stronger protection of property rights; accountability and checks on power; fair competition; and legal frameworks that encourage innovation while protecting those willing to take risks.

The State must also undergo three major transitions: from administrative control to development facilitation; from micro-level intervention to strategic coordination, infrastructure investment, and market shaping; and from traditional governance to data-driven digital governance. Politburo Resolution No. 66 identified the legal system as the “breakthrough of breakthroughs,” laying the legal foundation for this transformation.

New growth model and modern economic structure

The growth model is a core component of Vietnam’s broader development framework. Future growth can no longer depend on low-cost labor or extensive expansion. Instead, it must be driven by science and technology, innovation, AI, robotics, big data, high-value-added services, advanced manufacturing, and the digital, green, and circular economies.

These sectors will become Vietnam’s new growth engines, helping narrow productivity gaps with regional peers. Their success will depend on a fully-developed, high-quality market capable of allocating resources efficiently.

By 2045, Vietnam’s economy should evolve into a knowledge- and technology-intensive system. High-value services, including finance, logistics, premium tourism, healthcare, education, and information technology, could account for 65-75 per cent of GDP, in line with developed economies. High-tech and green industries, including semiconductors, smart electronics, renewable energy, electric vehicles, biopharmaceuticals, and advanced materials, should form the industrial backbone. Agriculture, meanwhile, will need to transition toward smarter, greener, circular, and higher-value production.

Emerging sectors such as the digital economy, the data economy, the low-altitude economy, and cultural industries will also play an important role in sustaining faster growth. Together, these shifts represent a strategic transition from an economy driven by resources and low-cost labor to one powered by knowledge, technology, and innovation.

Social policy and human development

In Vietnam’s development model, education, healthcare, social protection, and equal opportunity are not social costs attached to economic growth but essential foundations for long-term development. As argued by Amartya Sen (1999) and James Heckman (2006), human capital is critical both for absorbing new technologies and driving innovation.

Vietnam has a workforce of more than 52 million people and a strong culture of learning. Yet significant gaps remain in areas crucial to the new growth model, including Science, Technology, Engineering, and Mathematics (STEM) studies, AI, semiconductors, biotechnology, advanced materials, and technology management. The shortage of researchers and highly-skilled engineers continues to constrain next-generation industrialization. Closing this gap will require breakthrough policies in education, workforce training, and talent attraction.

The environment and the green economy

Vietnam’s development model treats sustainability and the green economy not as add-ons but as core requirements embedded across every pillar of development. Sustainability must be integrated into the model itself.

This includes more efficient use of land, water, and energy; reducing greenhouse gas emissions in line with Vietnam’s net-zero commitment by 2050; expanding renewable and clean energy sources such as solar, wind, biomass, hydrogen, and next-generation nuclear power; advancing the circular economy; protecting ecosystems; and strengthening energy and environmental security.

The green economy is also becoming a source of competitive advantage, particularly as the EU introduces stricter sustainability regulations such as CBAM, ESPR, and CSRD, while global green finance continues to grow.

Science, technology, and innovation

Science, technology, and innovation are central to Vietnam’s development model. They are not simply policy areas, but forces shaping the economy, social governance, and environmental management. More broadly, they are both the foundation of national development and a strategic breakthrough for faster, more sustainable growth.

Economic, social, environmental, and institutional progress increasingly depend on new technologies, AI, and digital transformation. In the economy, AI, robotics, big data, semiconductors, biotechnology, advanced materials, and digitalization are emerging as new productive forces that can accelerate sustainable growth. In society, technology can improve governance and strengthen inclusion and fairness. In environmental management, AI and digital tools can support ecosystem protection and sustainability.

Culture as the foundation

In Vietnam’s development model, culture is not merely one dimension of social life but a core pillar of development. It provides the values, social cohesion, and long-term strength that shape national progress.

Culture is also an increasingly important driver of growth and innovation. Long-term development depends not only on capital, technology, or natural resources, but also on the values embedded in people, businesses, and institutions. Building culture, therefore, is not only about preserving tradition, but also about shaping the norms and values of a modern society.

As Vietnam’s market economy and digital transformation accelerate, culture also serves as a guide for ensuring development remains humane and sustainable. Economic growth can only be truly sustainable when grounded in progressive values and centered on people.

Culture, therefore, is both the spiritual foundation of society and a source of national strength - a form of soft power that supports development. In Vietnam’s new development model, it should play a central role in human development, institutional quality, and sustainable growth with a distinct national identity.

Taken together, Vietnam’s development model rests on six interconnected pillars: the economy, society, the environment, institutions, science and technology and innovation, and culture. Science, technology, and innovation represent the key breakthrough for faster growth; culture provides continuity and identity; the economy and environment support sustainability and resilience; while institutions enable coordination and effective implementation.

Key actors

Vietnam’s development model is envisioned as a multi-actor development ecosystem, in which each stakeholder plays a distinct role while interacting and reinforcing one another within a layered system. This approach reflects the principles of national innovation system theory developed by Christopher Freeman (1987) and Bengt-Åke Lundvall (1992).

First, the State plays a development-enabling role, responsible for strategic coordination, ensuring the effectiveness of the rule of law, investing in both hard and soft infrastructure, including digital systems, data, education, and science, and sharing risks in strategic technology sectors. This reflects a “next-generation developmental State” that combines lessons from East Asia with Mariana Mazzucato’s mission-oriented approach (2013, 2021).

Second, the private sector is a key engine of growth and innovation. Politburo Resolution No. 68 marked an important shift by placing the private economy at the center of development. Private enterprises are expected to evolve in four directions: serving as the main force behind innovation; commercializing research and technology; leading value chains in sectors where Vietnam holds comparative advantages; and building a new generation of globally-competitive Vietnamese companies. Vietnam currently has nearly 1 million active businesses, yet the number of large, leading firms in high-tech sectors remains limited, underscoring the need for structural change.

Third, the State sector retains a leading role in strategic areas that private enterprises cannot easily undertake alone, including energy, transport and logistics infrastructure, national defense and security, foundational and strategic technologies, development finance, and sovereign investment funds. Politburo Resolution No. 79 calls for restructuring this sector to improve efficiency and transparency.

Fourth, FDI is no longer viewed simply as a source of capital but increasingly as a channel for technology transfer, managerial expertise, and participation in global value chains. The priority now is to strengthen links between FDI firms and domestic enterprises, raise the share of local value added in exports, and use foreign investment as a lever for technological upgrading. The experiences of South Korea and China, both of which used selective FDI policies to build domestic technological capabilities, offer valuable lessons for Vietnam.

Fifth, universities and research institutes are the knowledge engines of a modern economy. They serve four main functions: generating new knowledge, developing and transferring technology, training high-quality talent, especially in STEM and strategic technologies, and incubating technology startups. The “entrepreneurial university” model, exemplified by Stanford, MIT, KAIST, and Tsinghua University, demonstrates how higher education institutions can become direct drivers of economic growth.

Sixth, people are both the ultimate goal and the driving force of Vietnam’s development model. The global Vietnamese community, more than 5.3 million people across over 130 countries, represents a strategic source of knowledge, technology, finance, and international networks, with annual remittances estimated at around $14 billion to $16 billion.

Seventh, the Communist Party of Vietnam plays the central leadership role in the country’s development model by defining long-term priorities, setting strategic direction, issuing resolutions and policy guidance, and selecting and overseeing senior leadership. This role provides long-term strategic stability, an advantage that many developing countries struggle to achieve.

Operating mechanism

Vietnam’s development model functions as an integrated and dynamic system in which different components play distinct yet interconnected roles, reinforcing one another to drive development.

First, institutions sit at the center of the model, shaping the ability to mobilize resources, including capital, labor, land, technology, and knowledge, while influencing market performance, social trust, and incentives for innovation. This is why Douglass North (1990) and Daron Acemoglu and James Robinson (2012) viewed institutions as the key factor behind long-term prosperity.

Second, science and technology, AI, big data, robotics, and innovation are not only transforming production but also creating entirely new industries, from semiconductors and the data economy to AI services and the low-altitude economy. These technologies can raise labor productivity and TFP, becoming a new engine of growth to replace the traditional model based on capital accumulation and low-cost labor.

Third, private Vietnamese enterprises, State-owned enterprises (SOEs), and FDI enterprises are the direct creators of value. Through investment in RD, the commercialization of research, job creation, and deeper participation in global value chains, businesses will play a critical role in upgrading Vietnam’s economic position.

Fourth, education and healthcare form the foundation of human capital, which underpins all long-term drivers of growth. A healthier, more skilled workforce will determine Vietnam’s capacity to innovate, absorb technology, and sustain productivity gains.

Fifth, culture provides the values and social trust that shape development, reinforcing a spirit of learning, creativity, and national cohesion while strengthening Vietnam’s soft power. Politburo Resolution No. 80 reaffirmed culture as both the spiritual foundation of society and a driver of national development.

VET-Associate Professor Bui Quang Tuan

Samsung Electronics Vietnam Thai Nguyen pioneers direct solar power purchase via DPPA

Tue, 02 Jun 2026 01:30:00 GMT

This is considered the first commercial transaction to be implemented since the DPPA mechanism officially took effect in Vietnam.

Samsung Electronics has announced that Samsung Electronics Vietnam Thai Nguyen (SEVT) has finalized negotiations and signed the first Direct Power Purchase Agreement (DPPA) in Vietnam via the national grid, officially transitioning to renewable energy for its manufacturing operations.

Under the agreement, SEVT will be supplied with approximately 70 GWh of solar power annually, an amount equivalent to the electricity consumption of about 17,000 Vietnamese households. The project is expected to reduce carbon dioxide emissions by roughly 46,000 tons per year.

The electricity for SEVT will be sourced from the Duc Hue 2 Solar Power Plant, which has a design capacity of 49 MWp/41.4 MWAc. Located in Tay Ninh Province, the facility was developed and invested in by the TTC Duc Hue - Long An Joint Stock Company. The integration of this power source into the grid contributes to increasing the proportion of renewable energy within the national power mix.

During the negotiation and signing process, Schneider Electric served as the energy consultant for Samsung Electronics.

This is considered the first commercial transaction to be implemented since the DPPA mechanism officially took effect in Vietnam. It marks a significant milestone in the development of a competitive electricity market and expands the ability of the corporate sector to access renewable energy sources.

“Through this inaugural DPPA, we hope to contribute to the growth of Vietnam’s renewable energy market while actively supporting global efforts to address the climate change crisis,” said Mr. Na Ki Hong, General Director of Samsung Vietnam.

Vneconomy-Dũng Huỳnh

An alternative model of national development

Mon, 01 Jun 2026 09:30:00 GMT

The nature and scope of Vietnam’s development model must be reconsidered to guarantee national progress is sustained amid an ever-changing world.

The world is entering a period of profound transformation, driven by the rapid expansion of the digital economy, AI, green transition, and intensifying competition in high technology. These shifts are not only reshaping production methods, governance models, and global value chains, but are also placing urgent pressure on countries to restructure their development strategies to adapt to a changing landscape.

Professor Hoang Van Cuong, Vice Chairman of the Vietnam Economic Association.

After nearly 40 years of “Doi Moi” (Economic Renewal), Vietnam has recorded major achievements in economic growth, improved living standards, and stronger international standing. However, the current development model has also revealed limitations, including growth that remains heavily dependent on investment capital and low-cost labor, relatively weak labor productivity and innovation capacity, limited technological self-reliance, and institutional bottlenecks that continue to constrain progress.

Rethinking development model

Against this backdrop, reforming Vietnam’s national development model is no longer only an economic necessity, but a strategic requirement for the country’s long-term future. In theory, a national development model refers to the overall structure of the economy, society, institutions, and governance capacity used to mobilize and allocate resources toward long-term development goals. Modern development theories suggest that sustainable growth depends on three core pillars: economic development, social development, and effective national governance.

Economic development provides the material foundation for growth, while social and human development serves as both a goal and an internal driver of progress. National governance, meanwhile, determines a country’s ability to organize, coordinate, and safeguard the development process. In the new era, all three pillars must be closely linked to science and technology, innovation, digital transformation, and green transition.

International experience shows that no single development model fits all countries, but successful economies have generally built effective combinations of strong governance, economic progress, and social development. Japan and South Korea succeeded through developmental State models in which governments played a strategic role in industrialization and innovation. Nordic countries stand out for balancing economic growth, social equity, and transparent governance, while Singapore has developed a modern governance system based on data and digital technologies. China, meanwhile, is rapidly shifting toward a high-tech and strategically-autonomous development model.

A common feature of successful models is the decisive role of institutional quality and governance capacity, with science, technology, and innovation acting as central growth drivers and human development serving as the foundation of sustainable progress.

Redefining competitiveness

The world is undergoing deep restructuring across economic, technological, and geopolitical dimensions. Strategic competition among major powers is no longer limited to trade, but increasingly extends to technology, data, AI, semiconductors, and supply chains. At the same time, green standards, carbon-emission requirements, and environmental, social, and governance (ESG) expectations are emerging as new barriers in global trade and investment.

Industry 4.0 is also fundamentally reshaping growth models. Data, digital technologies, and AI are becoming new productive forces, transforming labor markets, governance systems, and national competitiveness. Countries that fail to adapt risk falling behind and becoming increasingly dependent on foreign technologies.

For Vietnam, reforming the national development model must begin with modernizing governance toward a digitally-enabled developmental State. The government needs to move beyond traditional administrative management toward modern governance based on data, technology, and accountability. In the digital era, data should be treated as a strategic resource and soft infrastructure for the economy.

At the same time, Vietnam must continue strengthening a transparent and effective rule-of-law State that encourages innovation, while promoting decentralization alongside stronger checks and balances. Policymaking capacity must also improve to better anticipate and adapt to a rapidly-changing environment.

An especially important requirement is strengthening national strategic autonomy. Amid intensifying competition in global technology, autonomy does not mean isolation or self-sufficiency but rather the ability to preserve strategic choices and reduce dependence on external technologies, data, or supply chains. Developing domestic capabilities in AI, semiconductors, cybersecurity, new energy, and data infrastructure should therefore be treated as part of Vietnam’s broader national development strategy.

Shifting toward new engines

On the economic front, Vietnam needs to move decisively away from a growth model reliant on investment capital, low-cost labor, and natural resource extraction toward one driven by productivity, science and technology, and innovation.

This transition requires continued improvement of Vietnam’s socialist-oriented market economy institutions, ensuring that markets play the decisive role in allocating resources, while the government focuses on strategic regulation and development facilitation. Land, capital, labor, science and technology, and data markets also need to become more transparent, modern, and integrated.

The private sector must genuinely become a key engine of innovation, while FDI policy should shift from attracting low-cost capital toward securing high technology and stronger links with domestic businesses.

Vietnam must also accelerate digital transformation, strengthen its national innovation ecosystem, and identify strategic technology sectors capable of generating long-term competitiveness. Green transition should be viewed not as a burden, but as an opportunity to restructure the growth model through renewable energy, clean industries, circular economy practices, and low-carbon agriculture.

Putting people first

At the social level, reforming the development model must place people at the center. Education should evolve from knowledge transmission toward fostering creativity, critical thinking, and digital skills. The healthcare system should prioritize preventive care, primary healthcare, and digital health services. Social welfare policies also need to become more flexible and inclusive in response to emerging risks associated with the digital economy and digital society.

Importantly, in the context of rapid digital transformation, social equity should not only concern income distribution, but also equal access to data, digital skills, and online public services. Likewise, green transition must be implemented fairly, ensuring vulnerable groups do not bear a disproportionate share of adjustment costs.

Ultimately, reforming Vietnam’s national development model in the new era is not simply about adjusting the economic growth model. It requires a comprehensive restructuring of the country’s development approach across three interconnected pillars: national governance, economic development, and social development. This will be critical for strengthening competitiveness, avoiding the middle-income trap, reducing the risk of falling behind, and achieving Vietnam’s ambition of becoming a high-income developed country by the middle of the 21st century.

VET-Professor Hoang Van Cuong

Vietnam to seek a new development model

Mon, 01 Jun 2026 04:30:38 GMT

As it looks to the future, Vietnam must move on from a growth model that has served it well over the last 40 years to one with a basis in modern technology.

After four decades of “Doi Moi” (Economic Renewal), Vietnam now stands at a decisive crossroads. Its growth model is increasingly revealing its limitations, and the time has come to establish a new system of growth drivers powered by data, algorithms, innovative thinking, and, above all, effective national governance.

A national scientific conference with the theme “Reforming Vietnam’s Development Model Based on Science, Technology, Innovation, and Digital Transformation” took place in Hai Phong on May 26, where policymakers, economists, and the business community discussed solutions to Vietnam’s growth challenges. Reframing the national development model is not only an urgent economic necessity but also a pathway toward realizing the country’s 2045 aspirations.

Process of development growth

Vietnam’s national development model has gradually taken shape, evolved, and matured through different stages over the 40-year period. The most defining and enduring hallmark has been a human-centered development philosophy, in which people are regarded as the central actors, the most important resource, and the ultimate objective of development.

Economic growth has consistently been pursued in harmony with social progress and equity, cultural development, environmental protection, and national independence, self-reliance, and international integration.

The achievements recorded carry historic significance. From a centrally-planned, closed economy marked by severe shortages, Vietnam has transformed into a dynamic socialist-oriented market economy. It has moved beyond poverty to become an upper-middle-income country, significantly improving the material and spiritual well-being of tens of millions of people. The scale, capacity, and competitiveness of the economy have steadily expanded, and Vietnam has become an indispensable link in global value chains.

At the same time, broad and deep international integration has enabled it to break out of isolation and embargoes, establish diplomatic relations with most countries around the world, and strengthen its position and reputation on the international stage.

However, every model has its own “cycle.” Though Vietnam’s current development model has enabled substantial economic progress, it is increasingly revealing structural bottlenecks and has yet to fully unlock the country’s inherent potential and advantages.

First, economic development remains largely extensive rather than intensive; productivity, quality, and competitiveness remain limited, while the application of science, technology, and innovation is still insufficient.

Second, the social governance model lacks integration and data interoperability, and a governance system based on real-time data has yet to be established.

Third, the management and utilization of natural resources and minerals remain inefficient, while opportunities associated with a green and sustainable development model integrated with science, technology, innovation, and digital transformation have not been fully leveraged.

Fourth, the national defense and security model still faces limitations, particularly in developing a defense industry capable of meeting the demands of a modern military. Capacity in mastering core technologies, digital infrastructure, and national data remains limited, while cybersecurity, data security, and the ability to identify and address emerging security threats have yet to match the requirements of safeguarding national digital sovereignty amid rapid technological advancement.

Fifth, foreign affairs and international integration continue to focus primarily on market expansion, attracting investment, and promoting trade, while cooperation in core technologies, RD, knowledge transfer, and high-tech workforce training has yet to meet the demands of transforming the development model.

Sixth, national governance remains fragmented. Legislative thinking in certain areas remains management-oriented and has not kept pace with technological changes or the requirements of innovation.

The State apparatus also remains fragmented across sectors, with institutional structures not yet optimized for cross-sector coordination. Mechanisms and tools for information sharing between ministries, agencies, and local authorities remain incomplete, while intersectoral coordination capacity and data-driven governance have yet to be fully developed.

These bottlenecks represent a tangible risk of Vietnam suffering from the “middle-income trap.” If it continues along its current trajectory, the country may face shrinking development space. Therefore, transitioning to a new development model driven by science, technology, innovation, and digital transformation as breakthrough forces is an inexorable path forward.

New development model

To realize the aspiration of becoming a developed, high-income nation by 2045, Vietnam’s development model for the 2026-2045 period is envisioned as one of rapid and sustainable growth based on science, technology, and innovation.

The new system of growth drivers will operate under the principle of a “multi-stakeholder mechanism,” involving various actors in the development process. Within this framework, the political system plays the central guiding role; the business sector and economic actors serve as the direct creators of material wealth and drivers of growth; while social organizations, communities, and the intellectual sector contribute to the broader development process.

With a number of papers submitted to the conference, experts have focused on analysis and recommendations to further deepen the foundational pillars of the overall framework. Accordingly, the proposed model consists of five key components: the national governance model, the economic development model, the social development governance model, the environmental governance model, and the foreign affairs and national defense model.

Regarding the national governance model, governance is identified as the decisive pillar determining the effectiveness and efficiency of the entire system. The major conceptual leap lies in a strong shift from the traditional “administrative State” toward a “developmental State” and smart national governance.

In regard to the economic development model, the framework for 2026-2045 is based on five principles: (i) pursuing rapid and sustainable national development through breakthroughs in science, technology, and innovation; (ii) transitioning from a processing-based economy to one driven by innovation-led growth; (iii) integrating globally to strengthen resilience and national self-reliance; (iv) placing people at the center, with science, technology, innovation, and digital transformation as key drivers and businesses as the principal actors; and (v) building a developmental State with the goal of becoming a high-income developed nation by 2045.

Accordingly, economic growth during this period will be supported by a high-quality and fully developed market economy, a highly skilled workforce for strategic sectors, a culture of innovation, and advanced, green, and smart infrastructure.

Regarding cultural and social development governance, culture serves as the spiritual foundation of society, as well as a goal, a driving force, and an internal resource for development, closely linked with science, technology, innovation, and digital transformation. The objective is to build an advanced culture deeply rooted in national identity; develop cultural industries; strengthen national soft power; and accelerate the application of science, technology, and digital transformation. Accordingly, efforts should focus on developing cultural industries and cultural markets, fostering a healthy cultural environment, promoting the role of cultural communities, and advancing digital infrastructure and technologies. The goal is also to build a developed, democratic, equitable, civilized, prosperous, and happy society with a high quality of life, equality, and comprehensive human development. To this end, priorities include developing a modern labor and employment market powered by data and technology; building a universal, sustainable, and highly-adaptive social protection system; fostering a balanced population structure; and establishing a modern, equitable, inclusive, and sustainable healthcare system.

In regard to the environmental governance model, the country will move away from reactive control and remediation toward proactive prevention, ecosystem-building, and integration, positioning environmental protection at the center of the development process. Accordingly, the objective is to fundamentally and comprehensively reform environmental governance and development on the basis of science, technology, innovation, and digital transformation; establish a modern and integrated governance system; promote green transition, the circular economy, and low-carbon development; and position the environment as a foundation, enabling condition, and core competitive advantage.

Regarding the foreign affairs and national defense model, building strategic autonomy is considered an overarching requirement. In national defense, the all-people defense system must become modern, self-reliant, and resilient enough to safeguard cyberspace and national digital sovereignty. In foreign affairs, Vietnam must advance “technology diplomacy” and “digital diplomacy.”

Overall, to sustain growth in the period to come, the five components of the development model must be designed and operated in a synchronized manner within a unified framework, enabling Vietnam’s socio-economic engine to accelerate in what leaders describe as “the era of the nation’s rise.”

VET-Dang Huong

New approach to environmental factors

Sat, 30 May 2026 10:00:00 GMT

While various bottlenecks are to be eased under a draft Law on Environmental Protection, it also aims to, among others, improve mindsets on governance.

Vietnam faces a range of new development pressure points, with the environment becoming a prerequisite for sustainable growth rather than simply an area for protection. At the same time, stricter global environmental standards - including carbon border measures, green product traceability, and transparency requirements - are increasing the pressure from environmental regulations.

Draft amendments to the Law on Environmental Protection are expected to not only address existing bottlenecks but also to mark an important shift in environmental governance thinking, establishing a legal foundation for a circular economy, a green economy, emission reductions, and climate adaptation.

Proposed amendments

Revising and supplementing the Law on Environmental Protection 2020 is considered necessary to address shortcomings that have emerged during implementation while ensuring consistency and alignment with related legislation. The amendments are also expected to modernize environmental management tools, making them more transparent and better suited to economic development linked to environmental protection and sustainable growth in the new era.

The Ministry of Agriculture and Environment said the focus of the proposed amendments is to continue streamlining administrative procedures, particularly those related to Environmental Impact Assessments (EIAs) and environmental permits, while ensuring effective oversight of projects and facilities with a high risk of adverse environmental impacts. The reforms are also intended to simplify procedures and facilitate socio-economic development projects.

The revised law is expected to establish a sufficiently robust legal foundation for digital transformation in environmental management, creating strong momentum for the development of a green and circular economy in Vietnam. At the same time, it seeks to strengthen environmental quality management mechanisms to prevent pollution risks early and proactively, alongside enhanced forecasting, warning systems, and public disclosure of environmental quality information.

In parallel, the amendments aim to remove unresolved regulatory bottlenecks so as not to hinder development, while mobilizing and unlocking resources to support the country’s goal of double-digit growth and foster a more favorable investment environment.

Deputy Minister of Agriculture and Environment Le Cong Thanh said at a recent consultation workshop that the draft law is built on a new legislative philosophy: the law itself will establish only broad frameworks and principles to ensure flexibility, while technical matters will be delegated to the government and competent authorities for detailed regulations.

Accordingly, the proposed amendments focus on five strategic directions. First, substantive administrative reform and stronger decentralization: procedures such as EIAs and environmental permits will be simplified and made more transparent to reduce compliance costs for businesses.

Second, a new approach to waste: shifting from “waste treatment” to viewing waste as a “resource.” “We will create a legal corridor to strongly develop the environmental industry and promote the circular economy,” the Deputy Minister said.

Third, pioneering digital transformation: building a synchronized, transparent, and publicly-accessible environmental data ecosystem to better serve regulators, citizens, and businesses.

Mr. Le Cong Thanh, Deputy Minister of Agriculture and Environment

We will create a legal corridor to strongly develop the environmental industry and promote the circular economy.

Fourth, moving from “reactive remediation” to “proactive prevention”: strengthening forecasting and early warning capabilities while tightly controlling emissions at the source amid rapid urbanization and industrialization.

Fifth, enhancing the effectiveness of economic instruments: improving market mechanisms, particularly the carbon market, to transform environmental protection and climate adaptation into economic drivers that encourage businesses to innovate and improve competitiveness.

Narrowing the scope

Mr. Nguyen Hung Thinh, Deputy Director of the Vietnam Environment Authority, said the draft law focuses on key priorities, including administrative simplification and stronger decentralization, while maintaining strict oversight, digital and green transformation in waste management, expanded recycling and reuse, and improvements in environmental quality management.

Regarding EIA appraisals, the draft law proposes significant reforms to improve the investment and business environment while maintaining targeted environmental oversight during the project preparation stage. Specifically, the law would reduce the number of projects required to undergo EIAs, shifting many toward environmental registration procedures and simplifying appraisal processes.

The draft proposes classifying projects into three groups instead of four under the current law. It would also eliminate certain environmentally-sensitive criteria used for project classification, such as proximity to concentrated residential areas, water sources used for domestic supply, and resettlement requirements. Projects located in industrial parks or clusters, projects not considered high-risk for environmental pollution, and smaller-scale projects without environmentally-sensitive factors would no longer be subject to EIAs.

According to the Vietnam Environment Authority, EIAs would instead focus on sectors with high pollution risks, including toxic mineral processing, paper manufacturing, inorganic chemicals, leather tanning, textile dyeing, coal-fired power generation, and cassava starch production, as well as projects involving land use in protected natural areas. “The remaining projects, accounting for more than 90 per cent of total investment projects, would only be required to complete environmental registration procedures,” Mr. Thinh said.

The EIA appraisal process would also be simplified. The draft law proposes two forms of reporting, appraisal, and approval based on a project’s level of environmental risk.

The draft also seeks to further decentralize environmental administrative procedures to local authorities. It is estimated that around 90 per cent of EIAs would be delegated to local governments compared with the current framework.

In addition, the draft proposes abolishing requirements for trial operation of waste treatment facilities after obtaining environmental permits, reducing compliance costs and implementation timelines for businesses while shifting from pre-approval to post-inspection and strengthening enforcement against violations.

Meeting environmental governance demands

Experts have broadly welcomed the proposed reforms, particularly those related to EIAs and environmental permits, which seek to maintain effective oversight of high-risk projects while simplifying administrative procedures.

According to specialists, reducing bureaucracy, simplifying EIA procedures, strengthening post-inspection mechanisms, and expanding decentralization are positive steps. The broader shift from procedural management to risk- and data-based governance also represents a new approach to environmental management.

Dr. Tran Van Minh, former Vice Chairman of the National Assembly’s Committee on Science, Technology and Environment, said the amendments demonstrate progress and are aligned with both practical realities and emerging requirements. The proposed revisions, he said, simplify and clarify those environmental criteria used to classify investment projects, making compliance easier for investors and businesses.

On EIAs, Dr. Minh praised the draft law’s clearer criteria and three-group project classification system. However, he stressed that because EIAs directly affect administrative procedures and business costs, the requirements for both detailed and simplified EIAs should be further clarified.

Dr. Hoang Duong Tung, Chairman of the Vietnam Clean Air Partnership, emphasized the importance of data-driven governance. While revisions related to EIAs and environmental permits represent progress by shifting from procedural to risk-based management, he argued the framework still falls short of fully embedding data-based governance.

He suggested requiring standardized and interoperable data in EIA reports and permit applications, along with a comprehensive environmental data lifecycle spanning EIAs, permits, and post-inspection.

Experts also stressed that environmental governance should become fully digitalized, data-driven, and interconnected. Such an approach would allow authorities to forecast risks earlier and prevent pollution proactively.

At a recent consultation workshop, Mr. Ta Dinh Thi, Vice Chairman of the National Assembly’s Committee on Science, Technology and Environment, emphasized the importance of institutionalizing Party guidelines through amendments to the Law on Environmental Protection. He said environmental protection should be placed at the center of development and move in parallel with socio-economic growth. In particular, he argued that it is time to shift policy thinking from reaction to proactive environmental stewardship.

As Vietnam pursues double-digit growth, he said, environmental protection must be positioned in a way that ensures both growth quality and environmental quality. He expressed hope that the revised law would be practical, highly feasible, and supportive of sustainable development in the new phase.

VET-Hoang Anh

PV Power and B.GRIMM sign agreement for $2bln LNG Power Project in Ha Tinh province

Fri, 29 May 2026 02:30:00 GMT

The agreement was signed in Bangkok on the sidelines of the Thailand–Vietnam Economic Forum 2026, which was held as part of the official visit to Thailand by General Secretary of the Communist Party of Vietnam Central Committee and President of Vietnam To Lam.

Vietnam’s PV Power and Thailand’s B.GRIMM Power on May 28 signed a cooperation agreement to develop the Vung Ang III LNG Power Plant project.

The agreement was signed in Bangkok on the sidelines of the Thailand–Vietnam Economic Forum 2026, which was held as part of the official visit to Thailand by General Secretary of the Communist Party of Vietnam Central Committee and President of Vietnam To Lam.

The proposed LNG-fired power plant will be located in Hoanh Son Ward, Ha Tinh Province, with an estimated investment of around VND51.43 trillion (approximately $2 billion).

The project will have a total capacity of 1,500 MW, comprising two generating units scheduled to begin commercial operations between 2030 and 2031.

Under the proposed ownership structure, PV Power will hold a 51% stake, while B.GRIMM Power will own 34%.

Once operational, Vung Ang III is expected to become one of the key LNG-to-power projects in north-central Vietnam, supplying large-scale baseload electricity to support the country’s rapidly rising energy demand driven by industrial expansion and economic growth.

The project also aligns with Vietnam’s strategy to gradually reduce coal-fired power generation, diversify energy sources, and advance its long-term energy transition and sustainability commitments.

Beyond energy security, the project is expected to boost socio-economic development in Ha Tinh and the broader north-central region of the country by attracting major investment flows, accelerating infrastructure and logistics development, and creating thousands of jobs during both construction and operation phases.

VnEconomy-Vũ Khuê

Australia commits $10mln to support climate-focused startups in Vietnam

Thu, 28 May 2026 23:30:00 GMT

The funding will back early- and growth-stage SMEs working in areas including clean manufacturing, sustainable consumption and AI-driven climate solutions.

The Australian Government on May 26 announced a $10 million investment commitment to Do Ventures Fund II, aiming to provide capital for Vietnamese climate-focused businesses and strengthen Vietnam’s climate investment market to attract greater private financing.

The investment, marking the first commitment by the Australian Development Investments (ADI) in Vietnam, will back early- and growth-stage small- and medium-sized enterprises (SMEs) working in areas including clean manufacturing, sustainable consumption and AI-driven climate solutions.

Under the partnership, the ADI will work closely with Do Ventures to enhance climate investment capabilities, including environmental, social and governance (ESG) standards and impact measurement frameworks, helping both the fund and its portfolio companies grow sustainably over time.

Vietnam currently represents around 40% of the ADI’s existing investment portfolio. Through five investment funds, the ADI has supported the growth of 26 small and medium-sized enterprises in Vietnam, helping create 5,781 jobs, improve access to finance for 260,000 small entrepreneurs, and install 19.2 MW of new solar power capacity.

VnEconomy-Hằng Anh

“Tien Phuoc” pepper officially granted geographical indication protection

Wed, 27 May 2026 10:00:00 GMT

Currently, Vietnam's central Da Nang City holds five GIs for local specialties: Ngoc Linh ginseng, Tra My cinnamon, Cu Lao Cham – Hoi An bird’s nest, Nam O fish sauce, and Tien Phuoc pepper.

The Tien Phuoc Commune People’s Committee, central Da Nang city, on May 25 held a ceremony to announce and receive the Geographical Indication (GI) protection certificate for “Tien Phuoc” pepper.

Tien Phuoc pepper has long been renowned for its intense aroma, characteristic pungency, and premium quality. According to the GI description, the product is classified into three main types: green, black, and white. Specifically, Tien Phuoc black pepper contains a piperine content of 6.82% – 7.17% and volatile essential oil content of 2.47% – 2.67%. Meanwhile, its white pepper variety boasts a piperine content of 7.32% – 7.44%, creating a distinct sharp heat that is easily distinguishable from pepper grown in other regions.

Scientists have determined that the unique quality of Tien Phuoc pepper is the result of a special combination of endemic natural conditions and traditional farming practices passed down by local residents.

Beyond its physical quality, Tien Phuoc pepper carries deep historical and cultural significance. Since the early 17th century, pepper was one of the vital trade commodities in the Southern Realm of Vietnam through the Hoi An commercial port. Numerous historical documents by domestic and international scholars recognize Tien Phuoc pepper as a precious specialty with a long-standing reputation. In local folklore, the pepper plant is closely intertwined with the lives of the people, appearing in traditional folk songs that reflect the daily activities and collective memory of the community across generations.

The protection of the “Tien Phuoc” Geographical Indication is a crucial step in establishing a legal framework to safeguard the product's reputation, quality, and origin. It creates favorable conditions for organized management, quality control, traceability, and market development. This serves as a foundation for building a sustainable value chain, increasing added value, and enhancing competitiveness. Furthermore, it acts as a catalyst for farmers to boost production, improve quality, and expand commercial scale.

To date, Vietnam has 154 protected Geographical Indications associated with famous brands such as Buon Ma Thuot coffee, Phu Quoc fish sauce, Tan Cuong tea, Luc Ngan lychee, and Binh Thuan dragon fruit. Currently, Da Nang City holds five GIs for local specialties: Ngoc Linh ginseng, Tra My cinnamon, Cu Lao Cham – Hoi An bird’s nest, Nam O fish sauce, and Tien Phuoc pepper.

Vneconomy-Ngô Anh Văn

Vietnam accelerates digital traceability system for agricultural exports

Tue, 26 May 2026 08:50:55 GMT

The move aiming improve supply chain transparency, and meet increasingly stringent international market requirements.

Vietnam’s agriculture sector is stepping up efforts to build a nationwide digital traceability system for farm products, aiming to improve supply chain transparency, reduce trade fraud, and meet increasingly stringent international market requirements.

At a meeting held on May 25, the Ministry of Agriculture and Environment of Vietnam reviewed progress in deploying an agricultural traceability platform designed to support production management and exports.

According to Mr. Nguyen Van Long, Director of the Department of Science and Technology under the ministry, the system has been piloted initially for durian exports and is being expanded to cover other agricultural products. Early results indicate that data-driven supply chain management has significantly improved production and distribution efficiency.

As of May 25, the platform had recorded 1,396 data entries covering 112 products, connecting 17,987 production facilities across 14 provinces and cities. Participants include 149 enterprises, 547 farming households, 255 growing areas, and 919 export consignments, supported by four technology providers. Around 23,000 traceability labels have been affixed to products, with real-time data updates from exporters, farmers, tech firms, and regulators.

Deputy Minister of Agriculture and Environment Vo Van Hung called for the development of a synchronized national database covering growing regions, export codes, and traceability records.

He also urged broader adoption of digital technologies such as GIS, QR codes, electronic logs, blockchain, and IoT to strengthen transparency, enhance state oversight, and support sustainable agricultural development.

VnEconomy-Chu Khôi

Climate Finance Accelerator Vietnam selects 13 low-carbon projects seeking total financing of $352mln

Tue, 26 May 2026 07:46:00 GMT

Funded by the United Kingdom government, the Climate Finance Accelerator (CFA) program operates in 10 countries to build pipelines of investment-ready low-carbon projects and connect them with potential financiers..

The Climate Finance Accelerator (CFA) Vietnam has announced a shortlist of 13 innovative enterprises for its 2026 program, representing projects that will seek total financing of $352 million to support Vietnam’s transition to a low-carbon economy.

The selected companies, unveiled on May 25, are developing scalable low-carbon solutions across sectors including clean energy, electric mobility, circular economy, sustainable agriculture, and green building materials.

Funded by the United Kingdom government, the CFA program operates in 10 countries to build pipelines of investment-ready low-carbon projects and connect them with potential financiers.

According to the organizers, the 13 companies were chosen from 81 applicants through a rigorous selection process, based on their potential to generate positive climate impact, scale their business models, and contribute to economic growth, job creation, and social inclusion.

In Vietnam, the program is implemented by PwC Vietnam. Between 2022 and 2024, CFA Vietnam supported 21 climate-focused businesses and projects in accessing investment capital.

Participating enterprises will receive technical assistance to strengthen their investment readiness, including specialized workshops and one-on-one advisory support in finance, technology, and gender equality and social inclusion.

Following the training phase, the companies will engage directly with investors and financial institutions at an investment matchmaking event scheduled for October 2026.

VnEconomy-Chu Khôi

National Scientific Conference on Reforming Vietnam’s development model

Tue, 26 May 2026 03:00:00 GMT

The event took place on May 26 in the northern port city of Hai Phong, theming “Reforming the country's development model based on science, technology, innovation, and digital transformation."

A national scientific conference on reforming Vietnam’s development model took place on May 26 in the northern port city of Hai Phong.

The event was co-hosted by the Central Commission for Policy and Strategy, and the Ho Chi Minh National Academy of Politics, the Central Theoretical Council, and the Hai Phong City Party Committee, with the Communist Review; the National Political Publishing House Truth; the Vietnam Economic Association, and Vietnam Economic Times / VnEconomy acting as coordinators.

With the theme "Reforming the country's development model based on science, technology, innovation, and digital transformation," the conference aims to provide arguments for a project titled "Reforming the country's development model based on science, technology, innovation, and digital transformation," which will be submitted to the upcoming third plenum of the 14th Party Central Committee.

At the same time, it clarifies the Party's guidelines and policies on the country's development model over 40 years of Doi Moi (Economic Renewal) policy that was initiated in December 1986 by the 6th National Congress of the Communist Party of Vietnam, and the documents of the 14th Party Congress on reforming the country's development model based on science, technology, innovation, and digital transformation, as well as the experiences of exemplary localities across the country in reforming development models; establishing new models, and good practices in the fields of economic, cultural, social, environmental development, ensuring national defense, security, foreign affairs, and international integration...

In his opening speech, Dr. Nguyen Thanh Nghi, Member of the Politburo, Secretary of the Central Party Committee, and Chairman of the Central Commission for Policy and Strategy, emphasized that this conference holds special significance in the context of the entire Party, people, and army implementing the Resolution of the 14th Party Congress, aiming for Vietnam to become a developed, high-income country by 2045.

Dr. Nguyen Thanh Nghi, Politburo member, Secretary of the Party Central Committee and Chairman of the Central Commission for Policy and Strategy is addressing the conference. - (Photo: Viet Dung)

According to Dr. Nguyen Thanh Nghi, the Central Commission for Policy and Strategy is currently leading the development of a project titled "Reforming the national development model based on science, technology, innovation, and digital transformation" that will be submitted to the 14th Party Central Committee. Therefore, the conference is organized to create a forum for leaders, managers, experts, scientists, and the business community to exchange and contribute theoretical and practical arguments to serve strategic advisory work and refine the project.

The conference consists of two main sessions: 1. Presentation session including reports on the following topics: - Major orientations for reforming the country's development model based on science, technology, innovation, and digital transformation by 2045. - Theoretical foundations and international experiences on reforming the country's development model based on science, technology, innovation, and digital transformation and policy implications for Vietnam. - Reforming a development model to build Hai Phong into a "Civilized - Happy" city - a typical model of socialism in the new era. - Developing human resources to reform the development model based on science, technology, innovation, and digital transformation: International experiences and recommendations for Vietnam. - Recommendations for Vietnam in the process of reforming the growth model based on science, technology, innovation, and digital transformation. 2. Discussion session: Addressing, analyzing, evaluating, and suggesting strategic solutions for reforming the country's development model based on science, technology, innovation, and digital transformation. The discussion session features the participation of experts and scientists in the fields of economics, society, environment, science, technology, culture, national defense - security, foreign affairs, and international integration, national governance, representatives of international organizations (World Bank in Vietnam (WB), United Nations Development Program (UNDP), International Labor Organization (ILO)...), and representatives of ministries, sectors, localities, and the Vietnam Economic Association.

vneconomy -Minh Kiet

Dual transformation - a key for business sustainability

Mon, 25 May 2026 03:00:00 GMT

The “dual transformation” of green transition and digitalization is set to shape the long-term strategies of local and foreign companies as they seek sustainability.

FDI inflows into Vietnam this year are projected to continue expanding, with a clear shift toward high-tech industries, electronics, semiconductors, clean energy, and environmentally-friendly production models. At the same time, digital transformation is emerging as a powerful catalyst, enabling businesses to improve operational efficiency, optimize supply chains, and generate higher value across global networks.

Within this evolving landscape, both foreign-invested enterprises (FIEs) and leading domestic corporations are accelerating the integration of environmental, social, and governance (ESG) standards, circular economy principles, and digital technologies into their long-term strategies. This “dual transformation” - green transition and digitalization - is positioning Vietnam as a strategic destination in the restructuring of sustainable global value chains.

Digitalization as the backbone

According to Mr. Tao Duc Thang, Chairman and General Director of the Viettel Group, the giant is “step-by-step affirming a pioneering approach by linking technological development with sustainability goals.” This approach is reflected in a series of strategic investments in data infrastructure, energy efficiency, and digital platforms serving both economic and social development.

As a key digital infrastructure enterprise, Viettel is steadily affirming its pioneering approach by aligning technological development with sustainability goals.

Mr. Tao Duc Thang, Chairman and CEO of the Viettel Group

A notable example is the Viettel IDC Hoa Lac Data Center, which has a capacity of 30 MW and houses 60,000 servers, making it the largest such center in Vietnam. The facility is designed to meet rapidly-increasing demand for data processing, particularly in the context of AI and advanced analytics. It operates with a Power Usage Effectiveness (PUE) of approximately 1.4-1.45, which is lower than the domestic average, and utilizes high-efficiency cooling systems. The center complies with multiple international standards on energy management, environmental impact, and occupational safety, while committing to renewable energy for 30 per cent of its electricity consumption.

Looking ahead, Viettel plans to deploy five large-scale data centers under an “AI Factory” model between 2026 and 2030 in key localities such as Ho Chi Minh City, Hanoi, Khanh Hoa province, and Dong Thap province. With a total projected capacity of around 350 MW, these facilities are expected to play a foundational role in developing Vietnam’s digital economy and emerging AI ecosystem. Beyond infrastructure, Viettel is also working with domestic partners to create a broader digital platform that supports innovation, productivity, and long-term growth.

Digital transformation is also reshaping FIEs in the logistics sector. Mr. Bernardo Bautista, General Director and Country Manager of DHL Express Vietnam, noted that “sustainable development is no longer merely a compliance requirement but is becoming a competitive advantage,” especially as global markets impose stricter environmental standards. In response, DHL is accelerating the adoption of automation, digital platforms, and advanced analytics to optimize operations and improve customer service.

The company’s GoGreen Plus solution exemplifies this shift, offering tools to measure and manage carbon emissions across supply chains. Through carbon reporting systems and online dashboards, businesses can assess environmental impact, identify inefficiencies, and optimize costs through data-driven decision-making. At the same time, DHL continues to invest in smart logistics infrastructure and workforce development, ensuring that digital transformation is accompanied by improvements in service quality, safety, and operational resilience.

Together, these initiatives highlight how digitalization is not only enhancing productivity but also enabling more transparent, efficient, and sustainable supply chain management; an increasingly important factor in attracting high-quality FDI.

Green transition as competitiveness

As sustainability standards tighten globally, integrating environmental considerations into business operations is no longer optional but essential for maintaining competitiveness and long-term growth.

DHL Express Vietnam has set a target of achieving net-zero emissions by 2050. Its roadmap includes transitioning to alternative fuels, deploying electric vehicles, and optimizing transport networks to reduce emissions. Notably, all warehouse operations in Vietnam have already reached carbon neutrality, reflecting early progress in reducing the environmental footprint of logistics activities. The next major challenge lies in cutting emissions from transportation, which accounts for the largest share of the sector’s total emissions.

As markets increasingly prioritize environmental factors, sustainable development is no longer merely a compliance requirement but is becoming a competitive advantage. With tightening green standards, integrating sustainable practices into business operations is now essential in maintaining market position.

Mr. Bernardo Bautista, General Director and Country Manager of DHL Express Vietnam

At the same time, DHL is developing a broader ecosystem of sustainable logistics services, enabling businesses to access global delivery networks while choosing low-emission shipping options. Environmentally-friendly packaging solutions and carbon tracking and offsetting tools are also integrated, allowing companies to align operational efficiency with sustainability objectives.

In the brewery sphere, AB InBev Southeast Asia provides a clear example of how sustainability is being embedded into production processes. Mr. Craig MacLean, Regional Managing Director of AB InBev for Southeast Asia, emphasized that the company is aligning “production efficiency with environmental protection,” particularly in a market like Vietnam, where competition is intensifying and environmental standards are steadily rising. He noted that sustainability initiatives, especially those related to water resource management, are central to the company’s long-term strategy in the country.

AB InBev has implemented a range of advanced solutions to optimize water usage, including recirculation systems, water source segregation, and highly-automated Clean-in-Place (CIP) processes. Wastewater is treated using advanced biological and filtration technologies to ensure compliance with environmental standards before reuse or discharge.

With a long-term vision, AB InBev aims to build a sustainable production and consumption ecosystem where water resources are used efficiently and environmental factors are carefully considered throughout operations. This approach supports a balance between production activities and resource protection, contributing to sustainable value for communities and society.

Mr. Craig MacLean, Regional Managing Director of AB InBev for Southeast Asia

In addition, the company applies real-time digital monitoring tools to track water consumption and detect inefficiencies early, enhancing overall resource management. These efforts have delivered measurable results. Between 2017 and 2025, AB InBev Vietnam improved water recirculation by 59 per cent, demonstrating a significant step toward more sustainable production.

As Mr. MacLean highlighted, this approach contributes to “a balance between production activities and resource protection,” supporting not only operational efficiency but also long-term value for communities and society.

Vietnam’s evolving FDI landscape underscores the convergence of green transition and digitalization as two mutually-reinforcing drivers. These trends are redefining competitiveness in the FDI sector, positioning Vietnam as a key hub for sustainable, technology-driven value chains and reinforcing its role in the global shift toward greener and more digitalized economic models.

VET-Tu Uyen Hai Van

Hanoi to unveil 100-year master plan by late June 2026

Sun, 24 May 2026 01:10:00 GMT

The announcement will be carried out through all statutory methods, including a major exhibition at the Hanoi Museum featuring 4D planning models, thematic imagery, and documentary screenings.

Hanoi is expected to unveil its Capital Master Plan with a 100-year vision in late June 2026, coinciding with the 2026 Hanoi Investment Promotion Conference.

The announcement will be carried out through all statutory methods, including a major exhibition at the Hanoi Museum featuring 4D planning models, thematic imagery, and documentary screenings.

According to the Hanoi People’s Committee, the city previously developed two parallel planning systems governed by different frameworks: the Capital Plan under the 2017 Law on Planning and the General Capital Plan under the 2024 Law on Urban and Rural Planning.

This duality led to overlaps and a lack of synchronization between socio-economic development strategies and spatial organization. It also hindered the effective resolution of chronic bottlenecks such as traffic congestion, flooding, and environmental pollution, while failing to establish clear development models and causing a waste of resources.

In response to the shift toward a two-tier local government model and the global trends of smart cities and international connectivity, the city identified the creation of a sustainable 100-year Master Plan as an urgent necessity. This unified plan is intended to establish a consistent legal foundation and generate breakthrough momentum for the capital during the "era of the nation's rise."

On December 11, 2025, the National Assembly passed Resolution No. 258/2025/QH15, which introduced pilot specific mechanisms and policies for major projects in the capital city. Article 6 of this resolution authorized the city to consolidate national and regional planning with the integrated contents of both the Capital Plan and the General Capital Plan into a single, unified Capital Master Plan.

Following a comprehensive process of drafting, public consultation, and official review, the Chairman of the Hanoi People’s Committee issued Decision No. 2512/QD-UBND on May 13, 2026, officially approving the Hanoi Capital Master Plan with a 100-year vision.

Vneconomy-Thanh Xuân