VnEconomy - Vietnam Economic Times

For a more balanced and sustainable rental housing market

Sun, 28 Jun 2026 08:00:00 GMT

Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam National Real Estate Association, Chairman of the Vietnam Association of Realtors (VARS), and Director of the Vietnam Institute for Real Estate Research (VARS IRE), tells Huyen Ngan about the need to build a more balanced and sustainable rental housing market.

Many observers argue that Vietnam’s real estate market has grown rapidly but lacks stability. How do you view this assessment?

The rapid growth of Vietnam’s real estate market over the past several years has contributed significantly to economic expansion, infrastructure investment, urban development, and the growth of related industries. However, behind this strong performance lies a major structural imbalance: supply is heavily concentrated in the high-end segment, while housing that is affordable for the majority of the population remains scarce.

Vietnam has developed a robust market for homes for sale but has yet to establish a professional, long-term rental housing system with clear State guidance. Today’s rental market remains largely fragmented, small-scale, and unplanned, often failing to provide stable and quality living conditions.

Traditionally, Vietnamese people have preferred homeownership over renting. Do you believe rental demand is strong enough to support a professional rental housing market?

According to the Vietnam General Confederation of Labor, around 4.5-5 million workers are employed at industrial parks, most of whom rent accommodation, often with inadequate living conditions. In Hanoi and Ho Chi Minh City, the number of renting households continues to rise, particularly among young people, migrant workers, and those at the beginning of their careers. Yet quality rental housing remains in short supply.

Hanoi is a clear example. As northern Vietnam’s largest education and employment hub, the capital attracts hundreds of thousands of students and young workers each year. Demand for rental housing rises sharply between June and September as students prepare for the new academic year.

At the same time, urban renewal and infrastructure projects are creating new waves of population displacement. According to the Hanoi People’s Committee, local authorities are currently carrying out land clearance for about 1,428 projects, including major developments such as the Hoang Cau - Voi Phuc section of Ring Road 1, Tu Lien Bridge, and Tran Hung Dao Bridge, directly affecting thousands of households.

Between 2026 and 2030, Hanoi plans to recover nearly 24,824 ha of land for more than 3,100 socio-economic development projects. This will continue to drive demand for temporary and rental housing during the resettlement process.

Current resettlement housing supply cannot immediately meet demand. Many affected households choose to rent homes near their former residences to maintain jobs, schooling, and social ties, placing additional pressure on the rental market.

Rental demand extends beyond students and displaced households. For many young professionals, workers, and young families, homeownership requires years of savings. Long-term renting therefore becomes the most practical option before they are financially ready to buy a home. This demand creates a strong foundation for developing a professional rental housing sector that supports social welfare, labor mobility, and sustainable urban growth.

Some argue that privately-built boarding houses can meet housing demand without large-scale participation from developers. What is your view?

Most workers still live in informal rental housing developed by individuals around industrial parks and suburban areas. These properties are often small, overcrowded, poorly equipped, and vulnerable to fire safety risks. Following several serious boarding-house fires in Hanoi and Ho Chi Minh City in recent years, concerns over rental housing quality have become increasingly urgent.

In this context, rental housing with clear legal status, reliable quality, convenient connectivity, and reasonable pricing will become increasingly important. Such developments are not only an alternative for those unable to buy homes but also a way to create a healthier balance between housing demand and investment demand.

The recent surge in boarding house demand reflects a deeper issue: the growing shortage of entry-level housing. In the past, young people had access to affordable options such as small apartments, renovated collective housing, and reasonably-priced suburban developments. These products served as the first step toward homeownership.

Today, rising land prices and construction costs have made affordable housing increasingly difficult to develop. As a result, the market has become more polarized, with demand continuing to outpace supply.

The challenge is not simply a lack of social housing or affordable housing. Vietnam needs a broader “starter housing ecosystem” that allows young people to access suitable housing early in their careers before gradually progressing toward homeownership. Within that ecosystem, professional rental housing should be regarded as a key component alongside social housing and affordable commercial housing.

Ultimately, the goal is to ensure access to quality housing at reasonable costs. This is why many developed countries view rental housing as a pillar of social welfare and urban stability.

How have other countries successfully developed rental housing, and what lessons can Vietnam learn?

Germany has a homeownership rate of only about 46 per cent - the lowest in Europe - yet it consistently ranks among the world’s best places to live. Its success stems from strong tenant protections, including the Mietspiegel system, a reference rent index published by local authorities to regulate rent increases. This allows residents to view rental housing as a stable long-term option.

Singapore has taken a different approach, with the State playing a central role in housing development. More than 80 per cent of the population lives in housing developed by the Housing and Development Board (HDB). Alongside its ownership model, Singapore maintains a heavily subsidized public rental housing system for low-income households. These developments are integrated with schools, healthcare, transportation and public amenities, creating high-quality communities.

South Korea has expanded long-term rental housing through the Korea Land and Housing Corporation (LH). The government directly develops or acquires apartments and leases them for 20-30 years to students, newly-married couples, and low-income households. Long-term financing from the National Housing and Urban Fund helps support the model.

International experience shows that the State’s role is decisive. Unlike homes for sale, rental housing projects often require 15-25 years to recover investment costs while generating relatively modest returns. Under normal market conditions, private developers have limited incentives to participate at scale.

If rental housing projects require such long payback periods, how can more developers be encouraged to participate?

The State must play a leading role in creating supportive policies and coordinating resources, particularly in planning, land allocation, financing, rent management and ensuring benefits reach the intended groups.

Authorities could allow developers to defer land-use fee payments, reduce financial obligations during the early years of operation, or link payments to project performance. This would ease initial capital pressure while preserving government revenues.

Vietnam could also explore flexible mechanisms allowing projects to shift between rental and for-sale models. Units converted for sale would fulfill all land-related obligations, while long-term rental units could continue benefiting from phased payment arrangements.

In addition, long-term financing tools such as housing savings funds, low-interest credit programs and tax incentives should be developed. Without a specially-designed institutional framework, it will be difficult to attract large-scale private investment.

International experience shows that success depends less on capping profits and more on providing access to long-term, low-cost capital. Returns should be determined through market-based mechanisms that reflect financing costs and project risks. This approach balances the interests of government, developers, and tenants while supporting a sustainable rental housing market.

Mr. Nguyen Van Dinh Vice Chairman of the Vietnam National Real Estate Association, Chairman of the Vietnam Association of Realtors (VARS), and Director of the Vietnam Institute for Real Estate Research (VARS IRE)

Vietnam also needs a dedicated legal framework for rental housing to better protect tenants’ rights.

If the rental market expands significantly, could it reduce people’s desire to own property?

For many years, real estate has been viewed as a safe and important store of wealth in Vietnam. While this has supported market growth, investment demand has at times overshadowed genuine housing needs.

Global experience suggests that a sustainable housing market is one that offers a wide range of options suited to different income levels and needs. Those with sufficient resources can pursue homeownership, while lower-income groups should have access to quality rental housing at affordable costs.

This is the foundation for a more efficient, inclusive, and sustainable real estate market in Vietnam. It is also consistent with the housing policy direction outlined by Party General Secretary and State President To Lam.

Expanding rental housing does not mean limiting legitimate ownership or investment aspirations. Rather, it helps create a more balanced market structure that better accommodates housing, ownership, investment and rental needs.

VET-Huyen Ngan

In need of a well-designed rental housing ecosystem

Sat, 27 Jun 2026 03:30:00 GMT

A well-designed rental housing ecosystem in Vietnam would ease pressure on home prices, unlock long-term capital, and support broader economic restructuring.

The recent directive from Party General Secretary and State President To Lam to prioritize the development of rental housing is opening a new pathway for Vietnam’s real estate market. At a time when housing prices are rising far faster than incomes, the issue extends beyond social welfare and touches directly upon urban competitiveness, the structure of the financial system, and the long-term sustainability of the property market.

Breaking away from the old model

For many years, Vietnam’s real estate market has largely operated under a build-to-sell model. Developers have focused on maximizing sales and accelerating capital recovery, while the rental segment has remained fragmented, undersupplied, and largely unsupported by dedicated financing mechanisms.

As housing prices move increasingly beyond the reach of young people and middle-income households, the limitations of this model are becoming more apparent. Home prices in many areas exceed 20-times annual household income, while affordable housing supply has nearly disappeared due to rising development costs, lengthy approval procedures, and the heavy reliance on short-term bank loans and corporate bonds to finance long-term property projects. This maturity mismatch creates risks not only for developers but also for lenders and, ultimately, the broader financial system.

Against this backdrop, expanding rental housing offers a practical solution already proven in many countries. A stronger rental sector can reduce pressure on homeownership, support labor mobility, and create a more resilient urban and financial structure.

International experience suggests that large-scale rental housing markets rarely emerge through market forces alone. In Singapore, the State plays a central role in land planning and housing provision through the Housing and Development Board (HDB). In countries such as Germany and Austria, meanwhile, governments support rental housing through public land allocations, tax incentives, and access to long-term capital.

For Vietnam, a “State-led, market-driven” model deserves consideration. Under this approach, the government would focus on planning, long-term financing mechanisms, and legal frameworks, while private enterprises would undertake construction, operations, and property management under transparent market principles.

At the center of this model would be a national housing corporation operating as a State-controlled institution with modern corporate governance. Rather than directly developing projects, it would function as a coordinating platform for the rental housing ecosystem. Its responsibilities could include managing public land reserves and recovered land from delayed projects, organizing competitive bidding for construction, and serving as a bridge between rental housing projects and long-term sources of capital.

Unlocking long-term capital

Rental housing projects typically require 15-25 years to recover investment costs. Yet most Vietnamese developers rely on short and medium-term financing from banks, corporate bonds, and homebuyer prepayments. This financing structure is poorly suited to rental housing.

In countries such as Japan, Singapore, and Australia, Real Estate Investment Trusts (REITs) play a critical role. Once rental projects generate stable cash flow, developers can transfer these assets into REITs, recover capital, and reinvest in new projects. The REITs then attract long-term institutional investors through capital markets, transforming rental housing into a stable income-generating asset class.

Vietnam’s rental housing ecosystem should likewise be connected to long-term institutional capital sources with significantly lower funding costs than commercial bank loans. One proposal is to establish a national housing corporation as a State-owned enterprise or a joint stock company with majority State ownership. Initial capital could come from proceeds of State divestments and public land resources. Operating under market principles, the corporation would serve as a platform for infrastructure and financing while outsourcing construction and operations to private sector specialists.

A second pillar would be the issuance of long-term national housing bonds with maturities of 20-30 years and government-backed payment guarantees. Debt repayment would be supported by rental income and other project-related revenues. To reduce financial pressure during construction, interest payments could be deferred and capitalized during the first three years, while liquidity reserves could be established using proceeds from State asset divestments.

Over time, rental income from hundreds of thousands of households, combined with revenues from commercial services integrated into rental communities, could provide sufficient cash flow to service debt and support operations.

Third, regulatory reforms could allow institutions such as Vietnam Social Security, life insurers, and pension funds to allocate part of their portfolios to national housing bonds. Given their long-term liabilities, these institutions are natural investors in long-duration, government-backed instruments.

In the medium term, Vietnam could also explore pilot programs for tokenized long-term rental rights under a regulatory sandbox framework. Such instruments could broaden retail investor participation, encourage younger generations to accumulate housing access rights and create a new transparent, liquid financial product.

Creating the conditions for scale

A dedicated policy framework should therefore include streamlined administrative procedures and preferential land policies. Projects committed to long-term rental operations and regulated rental rates could receive exemptions or significant reductions in land-use fees for a fixed period, while a fast-track approval process would help reduce financing costs associated with delays.

Reducing project development costs is essential for rental housing to remain affordable. If developers continue to face commercial land-use fees and lengthy approval processes, rental prices will inevitably rise.

Technology should also play a role. Wider adoption of Building Information Modeling (BIM) throughout design, construction, and operations could reduce material waste, shorten construction timelines, and lower long-term maintenance costs.

For the rental housing ecosystem to scale successfully, policies must encourage voluntary participation by major domestic developers. Rather than relying on administrative mandates, authorities could create incentive-based arrangements. For example, developers could be allowed to substitute their obligations to allocate 20 per cent of project land for social housing by contributing resources to large-scale rental housing developments coordinated by the national housing corporation.

The government could also adopt a “State creates, private sector builds” model, under which qualified developers construct projects that are later acquired by the national housing corporation using long-term capital, ensuring reasonable and predictable returns.

To improve commercial appeal, the corporation could auction rights to manage properties and operate commercial services within rental communities. Revenues from these activities would help private operators offset the relatively modest returns typically associated with affordable rental housing.

Ultimately, developing a professional rental housing ecosystem is not merely a short-term measure to stabilize the property market. It is a strategic component of broader economic restructuring.

A stable rental housing sector can help moderate housing prices, reduce the financial system’s dependence on mortgage lending, and improve labor mobility by enabling workers to move more easily to industrial and high-tech production centers.

If supported by coherent institutional reforms, long-term capital mechanisms, and modern infrastructure planning, rental housing can become a key driver in creating a more transparent, resilient and demand-driven real estate market for Vietnam’s next stage of development.

VET-Hong Ha

Rental housing as a strategic pillar of Vietnam’s housing policy

Fri, 26 Jun 2026 10:00:00 GMT

The government is positioning rental housing as a strategic pillar of Vietnam’s housing policy, aiming to boost supply, improve affordability, and support sustainable real estate market development.

At a recent real estate forum organized by the Vietnam National Real Estate Association, Deputy Minister of Construction Nguyen Van Sinh said the development of rental housing has been identified by the government and the Prime Minister as a key priority to address the housing needs of citizens and workers. Under this approach, the State will play a leading role in shaping the market and mobilizing social resources to expand the rental housing segment.

He also emphasized the real estate market’s strategic role in the economy, noting its contribution to infrastructure development, housing provision, social welfare, urbanization, tourism, and economic growth. According to the Deputy Minister, Vietnam’s legal framework already provides for a range of rental housing models, including social housing, worker accommodation, official residences, commercial rental housing, and privately-developed rental properties, creating an important foundation for expanding rental housing supply in the years to come.

Market recovery gains momentum

As Vietnam pursues ambitious economic growth targets while maintaining macro-economic stability, the Party, National Assembly, government, and Prime Minister have introduced a series of policies aimed at fostering a stable, transparent, and sustainable real estate market.

Authorities have revised key laws governing investment, land use, planning, construction, housing, and real estate business activities, while also accelerating project approvals to increase housing supply. These reforms have improved consistency across the legal framework, streamlined administrative procedures, and helped remove longstanding obstacles facing investors and developers.

The government has continued to advance its program to build at least 1 million social housing units by 2030. To date, 781 projects totaling 720,055 units are under development, equivalent to 72 per cent of the target. Of these, 231 projects comprising 180,850 units have been completed, while 234 projects with 233,962 units are under construction and 316 projects with 305,243 units have received investment approval.

In 2025 alone, 102,633 social housing units were completed, exceeding the annual target of 100,275 units. During the first five months of 2026, construction began on an additional 34 projects comprising nearly 30,000 units.

The government has also stepped up efforts to resolve bottlenecks affecting real estate projects, particularly legal and administrative issues. According to the Ministry of Construction (MoC), obstacles have been removed at 3,289 land-related projects covering more than 70,000 ha, allowing them to resume development and move toward completion.

“With the decisive and coordinated implementation of these measures, the real estate market has shown encouraging signs,” Mr. Sinh said. “Major projects have broken ground, stalled developments have resumed, and both supply and liquidity have improved.” However, he also stressed that several structural challenges continue to constrain the market.

One of the most significant is the mismatch between supply and demand. While the high-end segment continues to attract investment, affordable housing remains in short supply, particularly in major urban centers.

The market also remains heavily focused on homes for sale, while the long-term rental housing segment has yet to develop at a scale capable of meeting actual housing needs.

Housing prices have risen much faster than incomes in recent years, making homeownership increasingly difficult for low and middle-income households. At the same time, existing policies have not been sufficiently attractive to encourage large-scale private sector investment in rental housing.

Another challenge is the incomplete integration of housing information systems and databases between central and local authorities, limiting transparency and complicating market oversight. “These are issues that have accumulated over time and cannot be resolved overnight, but they require immediate and coordinated action,” Mr. Sinh said.

Strategic focus

Against this backdrop, Party General Secretary and State President To Lam and Prime Minister Le Minh Hung have outlined a new direction for housing and real estate development. At the heart of the strategy is a shift from a model focused primarily on commercial housing toward a more balanced approach that promotes commercial housing, social housing, and rental housing simultaneously.

Under this vision, rental housing is no longer viewed as a supplementary segment but as a strategic, long-term component of the national housing system. It is expected to serve workers, laborers, students, civil servants, public employees, and members of the armed forces.

The government also aims to develop housing through a market-oriented approach supported by effective State management. The State will act as a facilitator through planning, policy, and financial tools designed to ensure market transparency and sustainability while maintaining affordability for residents.

Housing development will also be more closely integrated with urban planning, land-use planning, industrial development, public transportation systems, labor market strategies, and population management policies. Priority will be given to Transit-Oriented Development (TOD) projects, urban renewal programs, industrial parks, economic zones, and major economic corridors.

Another key objective is to diversify funding sources. Rather than relying heavily on State budgets, authorities plan to mobilize greater private sector participation and attract long-term investment from financial institutions and investment funds. Public resources will be used strategically to guide market development and catalyze private investment.

The government also plans to address underutilized public housing assets, strengthen anti-waste measures, improve accountability among local authorities, and enhance transparency in housing support programs to prevent abuse and speculation.

Expanding rental housing supply

Based on these policy directions, the MoC has outlined a number of priorities for the time ahead. These include reviewing the implementation of Directive No. 34-CT/TW, issued by the Secretariat in May 2024, and drafting a new directive aimed at strengthening Party leadership over housing and real estate development. The Ministry is also preparing amendments to the Law on Housing, the Law on Real Estate Business, the Land Law, and related legislation for submission to the National Assembly this October.

At the same time, authorities will seek to better balance housing supply by prioritizing social housing, reasonably-priced commercial housing, worker housing, housing for low-income groups, and rental housing projects that meet genuine market demand.

The State will take the lead in guiding the market, while local authorities must proactively accelerate rental housing projects to meet the rapidly-growing housing needs of citizens and worker.

Mr. Nguyen Van Sinh, Deputy Minister of Construction

Speaking specifically about rental housing, Mr. Sinh said the MoC is working with ministries, agencies, and local governments to amend the Law on Housing and the Law on Real Estate Business to create more favorable conditions for rental housing development.

The Ministry has urged local authorities to conduct detailed assessments of rental housing demand among different groups, including workers, students, public servants, and armed forces personnel, which will serve as the basis for investment planning and capital allocation.

City and provincial governments have also been asked to review local planning frameworks, allocate suitable land resources, and ensure adequate infrastructure for rental housing developments, particularly at industrial parks and in densely-populated urban areas.

In addition, local governments are being encouraged to invest directly in rental housing through local budget resources and to strengthen the role of local housing funds. Authorities have been instructed to reserve land for social rental housing projects and expand rental housing stock through the conversion of public assets and the acquisition of suitable housing from developers.

“The State will take the lead in guiding the market, while local authorities must proactively accelerate rental housing projects to meet the rapidly-growing housing needs of citizens and workers,” Mr. Sinh said.

He also called on city and provincial governments to accelerate social housing development, fast-track administrative procedures, remove obstacles facing delayed projects, improve market transparency, and speed up the development of housing and real estate databases.

The Deputy Minister expressed confidence that, with strong leadership from the Party and the State, close coordination between ministries and local governments, and active participation from businesses and industry stakeholders, Vietnam’s real estate market will continue to develop in a transparent, healthy, and sustainable manner.

He believes the sector will remain an important driver of economic growth, urban modernization, national competitiveness, and improved living standards while supporting the country’s broader long-term development goals.

VET- PHAN NAM

A fundamental shift in housing strategy

Fri, 26 Jun 2026 06:00:00 GMT

Vietnam is accelerating the development of a rental-led housing model, with new policies and projects aimed at expanding access to affordable housing.

At a working session with the government Party Committee and relevant ministries and agencies on the implementation of Directive No. 34-CT/TW, issued by the Party Central Committee’s Secretariat on strengthening the Party’s leadership in social housing development under the new circumstances, Party General Secretary and State President To Lam stressed that housing policies in the new era must be designed with a new mindset and vision to ensure that everyone has access to housing. Housing, he added, should serve as a place to live rather than a vehicle for business or wealth accumulation.

“Vietnam’s housing development model in the new period is neither a subsidized housing model nor one that leaves everything to the market,” he continued. “The State will create land banks, develop planning frameworks, provide financial support, establish standards and regulations, and simplify administrative procedures. The market will participate in construction and operation while earning reasonable returns. Citizens will have access to stable, safe, and affordable housing suited to their needs. From now until 2030, housing for sale will remain necessary, but rental housing must be established as a strategic pillar, particularly in major cities, industrial parks, labor migration hubs, and areas where housing prices far exceed household incomes.”

Strategic pillar

Notice No. 64-TB/VPTW, issued by the Party Central Committee’s Office summarizing the conclusions of the Party General Secretary and State President, reaffirmed that future housing development, particularly social housing, should focus on several key priorities.

First, authorities must recognize that access to lawful housing is a fundamental right of citizens. Access to safe and affordable housing should be viewed as a measure of social progress, providing a foundation for stable and sustainable development while strengthening public confidence. Housing development should be integrated into urban and rural development strategies, contributing to social welfare, security, higher labor productivity, and the healthy development of the real estate market. The State should pursue housing policies aimed at ensuring that everyone has a place to live.

Second, housing development should follow a market-oriented model under effective State guidance and management. The State will not subsidize housing, but neither will it leave the market entirely to regulate itself. Instead, it will play a facilitating role through institutions, policies, and planning to promote a transparent and healthy market, allowing businesses to participate with reasonable profit expectations while ensuring citizens can access stable, safe, and affordable housing.

Third, alongside housing for sale, priority should be given to rental housing development, particularly apartment rental projects in major urban centers, industrial parks, economic zones, growth regions, and key economic corridors. Housing development should be aligned with urban planning, land-use planning, industrial park development, public transportation systems, labor markets, and population management.

The Notice also calls for a review of the current housing classification system and the development of a new framework consisting of four categories: commercial housing, rental housing, official residences, and policy-supported housing. This would allow the government to develop tailored policies for each segment, including State-supported pricing schemes and free housing provision for certain eligible groups.

Fourth, the government Party Committee has been tasked with developing appropriate land and credit policies to accelerate the affordable rental housing market and encourage greater private sector participation. Authorities are also required to establish standards for each housing category and streamline development procedures through a one-stop administrative mechanism.

Procedures related to investment, planning, land allocation, construction permits, and access to preferential financing should be shortened and made more transparent, with clearly-defined timelines and accountability.

Local authorities are instructed to review land resources and update planning frameworks. Housing development across all segments must be integrated with technical infrastructure, essential social services, cultural facilities, healthcare, and education, particularly in urban areas, economic zones, industrial parks, high-tech parks, and rapidly-urbanizing regions. They are also expected to proactively clear land and prepare serviced sites for rental housing projects while strengthening oversight to prevent abuse of housing support policies and speculative activity in the housing market. At the same time, greater use of digital technologies and data-driven management tools is encouraged in housing development and real estate operations.

Party General Secretary and State President To Lam chairs the working session with the government Party Committee and relevant ministries and agencies on the implementation of Directive No. 34-CT/TW.

Fifth, the government Party Committee has been assigned to develop a new housing policy framework aligned with the Constitution, Party policies, and public demand. It will also review the implementation of Directive No. 34 and propose a new directive from either the Secretariat or the Politburo, providing the basis for amendments to the Law on Housing and the Law on Real Estate Business, which are expected to be submitted to the National Assembly (NA) this year.

Turning plans into action

To accelerate the implementation of the Party General Secretary and State President’s directives, Prime Minister Le Minh Hung emphasized during meetings with local authorities that the development of affordable commercial housing and rental housing is a major policy priority of the Party and the State, reaffirmed through Directive No. 34 and Notice No. 64. “These are not issues that can be resolved overnight, but they require immediate and decisive action and cannot be delayed,” he said.

For Hanoi, the Prime Minister called for a pioneering approach, including assessments of housing demand, target groups, and investment mechanisms to develop large-scale rental housing projects for people living and working in the capital, including officials and civil servants from central government agencies.

Hanoi is expected to begin construction on several rental housing projects during June and make flexible use of social housing financial contributions, with the State investing and professional operators managing the projects.

The capital has also been tasked with preparing an investment, construction, and operational plan for rental housing projects and reporting the results to the Prime Minister in July. In addition, Hanoi should propose mechanisms to mobilize social resources and support investment in and the operation of rental housing projects through appropriate land allocation and land lease policies.

The Prime Minister issued similar instructions to the northern port city of Hai Phong and nearby Quang Ninh, Bac Ninh, Ninh Binh, and Hung Yen provinces, requiring that each begin construction of at least one rental housing project this month and accelerate larger developments in the third and fourth quarters.

“The policy direction is already clear,” he continued. “Local authorities must take the initiative and not wait passively for central guidance. Any obstacles should be clearly identified so that institutions, mechanisms, and policies can be updated and improved accordingly.”

He stressed that the issue is urgent and requires the State to take the lead, using public resources as leverage to attract private investment. National and local housing funds should be used effectively to stimulate the market, while diverse funding sources, particularly private capital and long-term investment, should be mobilized rather than relying solely on the State budget.

Regarding planning, the Prime Minister instructed local authorities to review and adjust planning frameworks based on approved master plans and provincial plans, identifying specific locations and scales for rental housing development linked to key industrial parks and strategic growth areas. This work must be completed by the end of June.

Local governments are also required to assess rental housing demand and prepare rental housing development plans through 2030, including annual targets, priority project lists, anticipated funding sources, and implementation roadmaps. These plans must also be submitted to the Ministry of Construction (MoC) by the end of June.

The Prime Minister also assigned specific responsibilities to ministries and agencies. The Ministry of Finance (MoF) and the State Bank of Vietnam have been tasked with proposing financial, tax, and credit incentives for long-term rental housing projects, to attract private investors and long-term investment funds.

Meanwhile, the MoC has been instructed to continue implementing tasks outlined in Notice No. 262/TB-VPCP, review the implementation of Directive No. 34, and propose a new directive to replace the current one. The Ministry is also responsible for finalizing draft legal amendments for submission to the NA, issuing national technical standards for small and medium-scale rental housing projects, including mini apartment buildings and family-operated rental housing, and ensuring compliance with safety and fire prevention requirements.

In addition, the Ministry will consolidate policy proposals from local authorities and coordinate with the MoF to review mechanisms allowing businesses and cooperatives to acquire commercial and social housing solely for rental purposes.

Moving into action

To implement the new housing development strategy, the MoC is now reviewing and amending relevant policies, with rental housing identified as a strategic segment of the housing market. The approach aims to develop housing under a market-based framework with effective State oversight, while mobilizing diverse investment sources, reducing reliance on the State budget, and unlocking private capital for housing development.

At its May review meeting and June task deployment conference, the Ministry said the new housing development orientations have been incorporated into policy dossiers for amendments to the Law on Housing and the Law on Real Estate Business. Draft legislation is expected to be submitted to the NA for approval this October.

Under the proposed framework, housing policies will be organized into four categories: commercial housing, rental housing, official residences, and policy-supported housing. Long-term rental housing with affordable rates will be prioritized through incentives related to land, finance, taxation, and credit.

The Ministry is also developing separate standards and regulations for different housing types, particularly rental housing, worker accommodation, student housing, and housing for the elderly. The standards aim to ensure quality of life and building safety while promoting the professional management and operation of long-term rental housing projects.

To ensure rental housing development aligns with actual demand, the MoC has conducted nationwide assessments covering different population groups, localities, and development stages. It is also reviewing land availability in urban areas, industrial parks, economic zones, high-tech parks, and rapidly-urbanizing regions to create a pipeline of serviced land for future rental housing projects.

In addition, the Ministry has requested local authorities to assess rental housing demand and propose targets for rental housing stock funded by local housing funds in 2026 and the 2027-2030 period.

“Alongside accelerating social housing development, local authorities are actively implementing rental housing programs and projects, while many businesses have registered to participate as investors,” Minister of Construction Tran Hong Minh told the 14th Congress of the Vietnam General Confederation of Labor for the 2026-2031 term. “Through State support policies, particularly in credit and interest rates, social housing and rental housing are expected to better meet the accommodation needs of low-income workers.”

Following directives from the Party and the government, local authorities have also moved quickly to implement the policy. Chairing a meeting on rental housing projects in Hanoi on May 27, Chairman of the Hanoi People’s Committee Vu Dai Thang said the capital would promptly study and implement new models in line with guidance from the central government. Hanoi aims to establish several pilot rental housing projects that can be rapidly developed and later replicated on a wider scale.

Authorities in the capital have instructed departments and agencies to develop attractive policies to encourage private sector participation and to urgently review urban planning, housing development plans, and land resources to allocate land for rental housing projects. Hanoi has also pledged to streamline administrative procedures and prioritize fast-track approvals.

In Ho Chi Minh City, meanwhile, the Department of Construction and the southern city’s Construction Science and Technology Association held a conference on June 9 to promote investment in rental housing development.

Officials said the city, with a population of around 14 million, faces significant housing demand from professionals, workers, students, and other residents. However, the rental housing market still lacks long-term mechanisms and incentives strong enough to attract investors.

The city aims to develop more than 181,000 social housing units between 2026 and 2030, including approximately 50,000 rental social housing units. It is also considering converting part of its unused resettlement housing stock and surplus State-owned housing into rental housing to improve the use of public assets.

At the conference, 13 companies - four State-owned enterprises and nine private companies - signed commitments to develop approximately 97,900 rental housing units.

“Ho Chi Minh City will provide maximum support and establish a green lane for social housing and rental housing projects,” Chairman of the Ho Chi Minh City People’s Committee Nguyen Van Duoc said. “We are reviewing rental housing demand and allocating land accordingly within the city’s housing master plan. With more than 97,000 rental housing units committed at this conference alone, I believe we have a solid foundation to successfully implement the city’s rental housing development strategy.”

In Quang Ninh, provincial leaders have also moved to accelerate implementation. At a meeting on June 11, Chairman of the Quang Ninh Provincial People’s Committee Bui Van Khang described rental housing development as an important political task that would contribute to social welfare, improve living standards, attract and retain talent, and support the province’s sustainable growth objectives.

He called on authorities at all levels to fully implement the conclusions of Party General Secretary and State President To Lam and Prime Minister Hung, treating rental housing development as a key priority requiring decisive action and measurable outcomes.

The province plans to establish a steering committee for rental housing development, led by the provincial Chairman, along with an implementation task force headed by the director of the Department of Construction. Local authorities will be required to submit weekly or bi-weekly progress reports and will be held accountable for delays or failure to deliver results.

Provincial agencies have also been tasked with studying the creation of a major projects management board to oversee housing projects and reviewing planning documents to incorporate rental housing developments into provincial and urban plans for 2026-2030.

Quang Ninh has been instructed to ensure rental housing projects are located in convenient areas with adequate infrastructure and aligned with the needs of target groups. At least one State-funded housing project is expected to break ground in June, while privately-funded developments are scheduled to accelerate in the third and fourth quarters.

According to Prime Minister Hung, the government has directed ministries, agencies, and local authorities to develop and refine policies supporting the housing market. By the end of the year, the legal framework for rental housing development must be completed.

“If we can meet this demand, it will improve living standards, strengthen social welfare and public order, and provide a solid foundation for maintaining the workforce, attracting investment, and supporting rapid and sustainable economic growth,” he said. “If local authorities actively engage, they can not only meet housing demand but also reduce pressure on home ownership and help address many broader economic challenges.”

VET-Nam Huyen

Foreign female Consuls General in HCMC share career insights with students

Thu, 25 Jun 2026 23:00:00 GMT

Eight foreign female Consuls General serving in Ho Chi Minh City shared personal experiences with students, highlighting both the progress made and the challenges that remain for women pursuing careers in diplomacy.

To mark the International Day of Women in Diplomacy on June 24, eight foreign female Consuls General serving in Ho Chi Minh City met with around 40 female students from the Faculty of History and International Relations at the University of Social Sciences and Humanities (Vietnam National University Ho Chi Minh City), to discuss opportunities, challenges, and the growing role of women in diplomacy.

The event brought together Consuls General from Australia, Canada, Germany, Indonesia, Italy, the Netherlands, Thailand, and the United Kingdom. Instead of traditional speeches, the program was organized as a series of roundtable discussions, allowing students to engage directly with each Consul General in 10-minute conversations.

Topics ranged from leadership, gender equality, and career development to work-life balance, personal identity, and the future of women in diplomacy.

Building confidence, networks and leadership skills

H.E. Ms. Kate Wallace, Australian Consul-General in Ho Chi Minh City, emphasised the importance of professional networks and mentorship in helping women advance their careers. “All around us are people who will go on to achieve remarkable things in different fields. It is important to value and nurture those relationships from today,” she said.

According to Ms. Wallace, although women are increasingly represented in leadership and diplomatic positions, gender stereotypes and structural barriers continue to exist. She encouraged young women to have confidence in their abilities, actively seek opportunities, and build supportive networks that can help sustain long-term career growth.

H.E. Ms. Alexandra Smith, British Consul General in Ho Chi Minh City, noted that gender balance has largely been achieved at the entry level of the UK diplomatic service, with women and men joining the profession in nearly equal numbers.

However, she noted that gender gaps tend to emerge later in careers, particularly at senior leadership levels. According to Ms. Smith, many women face additional responsibilities related to family care, which can affect career progression, while less visible barriers, such as informal professional networks, may also limit opportunities.

According to Ms. Smith, rather than introducing special recruitment policies for women, the UK focuses on promoting diversity and inclusion across the public sector. This includes internship programmes for people from diverse backgrounds, regular workforce surveys, and data-driven human resources policies aimed at ensuring public institutions reflect the diversity of British society.

She also highlighted the UK's "blind recruitment" approach, under which information such as an applicant's name, gender, and educational background is removed during the initial screening process to reduce unconscious bias and ensure candidates are assessed primarily on their skills and capabilities.

Ms. Smith encouraged students to seek mentors throughout their careers, noting that trusted advisers can provide valuable guidance, fresh perspectives, and support during key professional milestones.

Progress made but barriers remain

Sharing her perspective on women in diplomacy, H.E. Ms. Wiraka Moodhitaporn, Consul General of Thailand in Ho Chi Minh City, noted that while opportunities for women have improved significantly, a number of barriers remain. In many Asian societies, traditional perceptions of leadership are still often associated with men, while the demands of diplomatic careers, including frequent relocation and extensive travel can create additional challenges for women balancing professional and family responsibilities.

However, she observed that female representation in diplomacy is steadily increasing. In Thailand, women now account for a growing share of diplomats, ambassadors, and senior officials within the Ministry of Foreign Affairs. According to Ms. Wiraka, today’s generation of women is more confident in speaking up, pursuing leadership roles, and balancing career aspirations with personal life.

She also emphasized that many of the challenges faced by women in diplomacy are universal rather than regional. Regardless of whether they work in Asia or Europe, women often encounter similar decisions regarding career progression, family commitments, and leadership opportunities. "There are more opportunities today, and we are seeing more women in leadership positions. The key is to continue creating an environment where women can contribute and advance on equal footing," she said.

Speaking with Vietnam Economic Times/VnEconomy, H.E. Ms. Raïssa Marteaux, Consul General of the Kingdom of the Netherlands in Ho Chi Minh City, noted that the Netherlands pursues a feminist foreign policy that promotes equal representation of women in leadership positions, peace processes, and diplomatic affairs. However, she acknowledged that gender parity has not yet been fully achieved, even within the Dutch diplomatic service. Ms. Marteaux herself is the first woman appointed by the Netherlands as Consul General in Ho Chi Minh City.

According to the Dutch diplomat, women are playing increasingly important leadership roles not only in the public sector but also in business. Nevertheless, many barriers remain, and continued dialogue is needed to identify and address them.

Reflecting on the event, Ms. Marteaux said she was particularly impressed by the students’ curiosity, initiative, and willingness to learn. Diplomacy, she noted, is fundamentally about communication, listening, and continuous learning, all qualities that the participants demonstrated throughout the discussions.

Sharing her advice with the students, the Consul General emphasized two key messages: find your voice and be yourself. Every individual has a unique perspective that deserves to be heard, regardless of age, experience, or gender. Greater diversity of perspectives, she said, ultimately leads to better decision-making in both diplomacy and society. “As long as we have not achieved genuine equality, we cannot say that our efforts to advance women in diplomacy are enough,” Ms. Marteaux stressed.

Vneconomy -Nhu Quynh

A strategic shift in Vietnam’s foreign investment policy

Thu, 25 Jun 2026 10:00:00 GMT

Politburo Resolution No. 10 marks a strategic shift in Vietnam’s foreign investment policy, moving beyond mere FDI attraction toward the development of a national investment platform.

Almost seven years ago, on August 20, 2019, the Politburo issued Resolution No. 50-NQ/TW on improving institutions and policies to enhance the quality and effectiveness of FDI cooperation through 2030. The Resolution called for the proactive and selective attraction of FDI, with quality, efficiency, technology, and environmental protection as the primary evaluation criteria. It marked a new direction in the attraction, utilization, and management of high-quality FDI in Vietnam.

Politburo Resolution No. 10-NQ/TW, on developing the foreign-invested economic sector, issued on June 8, 2026, builds on that foundation while reflecting Vietnam’s changing development realities. It marks a decisive shift from an FDI attraction mindset to one focused on building a national strategic investment platform. The emphasis has moved from competing for investment based on administrative boundaries to attracting investment through industrial clusters, value chains, and innovation ecosystems. Quality, efficiency, technology transfer, supply chain participation, and value creation have become the key criteria, while policy support is gradually shifting from input-based incentives, such as tax breaks and land rental preferences, to performance-based incentives tied to investment commitments.

New national context

Vietnam’s large-scale administrative restructuring last year, reducing the number of provinces and centrally-governed cities from 63 to 34 and establishing a two-tier government system, represents a transformative reform effort. These changes play a critical role in reshaping the investment environment and creating new momentum for economic growth.

The FDI landscape is expected to benefit significantly from the elimination of fragmented local interests. Larger provincial units with stronger economic capacity can support integrated transportation and logistics networks instead of the fragmented development model of the past. Compliance costs associated with investment, construction, and environmental procedures are being streamlined. Licensing processes for industrial park projects are expected to become considerably faster, reducing both opportunity cost and waiting times for foreign investors. Expanded planning space also enables the formation of seamless supply chains, making it easier for multinational corporations to secure land and establish integrated industrial ecosystems.

The administrative restructuring has also streamlined government operations and optimized resource allocation. The reduction in provincial-level administrative units and the elimination of district-level authorities are expected to save trillions of VND in budget expenditures. These resources can then be redirected toward critical infrastructure development, including airports, seaports, expressways, healthcare facilities, and education systems that improve workforce skills to support FDI activities.

The new two-tier governance model, consisting of provincial and commune-level authorities, eliminates intermediate administrative layers. At the same time, stronger decentralization empowers local governments to address bottlenecks related to land acquisition, site clearance, electricity and water supply, internet services, wastewater treatment, and waste management more efficiently, particularly in industrial parks and standalone investment projects. This helps unlock local resources and improve project implementation.

Raising RD spending

Politburo Resolution No. 10 positions the FDI sector as a critical link in Vietnam’s ambition to become a regional innovation and operations hub.

Global experience demonstrates that countries with higher RD expenditure as a share of GDP tend to achieve faster and more sustainable advances in economic development as well as science, technology, and innovation. According to the United Nations Conference on Trade and Development (UNCTAD), Israel and South Korea lead the world in this regard, with RD spending accounting for 6.3 per cent and 5.0 per cent of GDP, respectively.

Most of this investment comes from private enterprises, including foreign-invested enterprises (FIEs) and high-tech companies. Other economies with high RD intensity include Taiwan (China), with 3.8 per cent of GDP, the US with 3.5 per cent, Japan with 3.4 per cent, Switzerland with 3.35 per cent, China with around 2.68 per cent, Singapore with approximately 2.0 per cent, and Thailand with 1.2 per cent. Vietnam’s ratio remains comparatively low, at roughly 0.4-0.53 per cent of GDP, ranking it 66th globally.

To achieve a breakthrough and avoid the middle-income trap, Vietnam should aim to raise RD spending to at least 2 per cent of GDP, comparable to Singapore’s current level, in the years ahead. Politburo Resolution No. 10 introduces several breakthrough mechanisms to directly and indirectly do so.

First, it prioritizes investment in core technologies. Vietnam will focus on attracting investors that possess foundational and source technologies, particularly in semiconductors, AI, and big data. These investors may include both large corporations and specialized small and medium-sized enterprises (SMEs) that possess unique technological capabilities and strong RD capacity, enabling them to maintain competitiveness and integrate deeply into global value chains.

Second, the Resolution promotes the development of a global talent ecosystem. Administrative procedures should be simplified and accelerated, visa and residency requirements eased, and work permit regulations reviewed and reduced for high-tech experts, scientists, foreign entrepreneurs, and overseas Vietnamese with relevant qualifications, regardless of whether they retain Vietnamese citizenship.

Third, the Resolution seeks to strengthen technology transfer and domestic-foreign business links. A national supplier development program should be introduced to encourage Vietnamese enterprises to establish partnerships, joint ventures, and collaborations that enhance their ability to absorb technology from FIEs. This, in turn, would improve the RD capabilities of the domestic private sector.

Reforming investment promotion

Politburo Resolution No. 10 marks a major shift from a passive approach that waits for investors to arrive to a proactive strategy focused on cultivating, partnering with, and attracting strategic investors, often referred to as “eagles.”

This transformation is reflected in several key directions.

From broad promotion to targeted engagement: Mass investment promotion campaigns are being replaced by focused outreach, negotiation, and relationship-building with leading multinational corporations, major financial institutions, and large investment funds.

Data-driven investment promotion: The Resolution calls for the development of a comprehensive digital database of strategic investors and customized engagement strategies tailored to specific markets, countries, territories, and industry segments.

Strengthening on-site investment promotion: Greater emphasis is placed on supporting existing investors, resolving operational challenges, and encouraging high-quality expansion projects. Rather than repatriating profits after meeting tax obligations, investors are encouraged to reinvest earnings in Vietnam. This is regarded as one of the most effective ways to build confidence among global investors.

Establishing a dedicated Investment Promotion Agency (IPA): Following the enactment of the Law on Foreign Investment in 1987, the government established the State Committee for Cooperation and Investment (SCCI) in 1989 to manage and attract FDI.

However, after nearly four decades of attracting, managing, and utilizing foreign investment, Vietnam still lacks a true national investment promotion agency that meets international standards. Investment promotion activities have largely been carried out through Investment Promotion Centers (IPCs) under the former Ministry of Planning and Investment, now the Ministry of Finance, and various local agencies that often combine investment promotion with trade and tourism activities.

Under the government’s recent institutional restructuring, the Foreign Investment Agency (FIA) and related investment management functions were transferred from the Ministry of Planning and Investment to the Ministry of Finance. As of 2026, the Ministry of Finance is responsible for developing, approving, and coordinating the National Investment Promotion Program.

The experience of Malaysia and Thailand, widely regarded as ASEAN’s most successful investment promotion models, demonstrates the value of a single national agency with strong authority and a business-oriented philosophy.

Malaysia’s investment promotion system is centered on the Malaysian Investment Development Authority (MIDA), established in 1987 under the Ministry of Investment, Trade and Industry. MIDA serves as the primary point of contact for investors and has authority over investment applications, approvals, and tax incentives.

Thailand’s Board of Investment (BOI), meanwhile, operates under the Office of the Prime Minister, with the Prime Minister serving as its Chair. This gives the BOI substantial authority to overcome bureaucratic obstacles and coordinate effectively across ministries and local governments.

Against this backdrop, establishing a dedicated national IPA that operates independently and according to international standards is increasingly necessary for Vietnam. Such an agency would eliminate fragmentation between the Ministry of Finance and local authorities, serving as a single focal point for national investment attraction strategies during Vietnam’s next phase of development.

It would also professionalize investment marketing efforts, build teams of highly-skilled negotiators and market specialists, and target investors and projects that align with Vietnam’s development priorities. It could also coordinate solutions to issues in land clearance, tax incentives, investor disputes, industrial parks, free trade zones, and local authorities.

Defining roles

Politburo Resolution No. 10 redefines the relationship between different levels of government by assigning the central government responsibility for institutional design and digital governance while local governments focus on implementation. This framework applies across all FDI activities, including research, manufacturing, and services.

At the national level, authorities must strengthen efforts to combat transfer pricing, trade fraud, and environmental violations while withdrawing incentives from projects that fail to meet commitments on technology transfer, product standards, or environmental protection.

Local governments, meanwhile, should transition from a purely administrative role to that of a strategic partner for investors. Their responsibilities include licensing support, site clearance, infrastructure preparation, utility provision, environmental services, and workforce development to ensure investor needs are met efficiently.

Proactive local governance may take the form of “green lane” mechanisms, similar to expedited customs clearance channels, enabling major investment projects to obtain approvals within as little as 48 hours. Local authorities should also promote regional connectivity and facilitate the integration of domestic enterprises into the production and service networks of FIEs operating in their jurisdictions.

With the implementation of Politburo Resolution No. 10, attracting $200-$300 billion in registered foreign investment and disbursing $150-$200 billion in capital, equivalent to roughly $30-40 billion annually, appears both realistic and achievable during Vietnam’s next development phase from 2026 to 2030.

(*) Mr. Le Huu Quang Huy is Vice President of the Vietnam Industrial Park Finance Association, former Director of the Investment Promotion Center for Central Vietnam, and former Economic Counselor at the Embassy of Vietnam in Japan.

VET-Le Huu Quang Huy(*)

Societal shift and economic development

Thu, 25 Jun 2026 03:30:00 GMT

Vietnam’s social structure is becoming increasingly differentiated as its economy expands and modernizes, presenting both opportunities and challenges for inclusive development.

Vietnam’s economy continues to post strong growth despite a volatile global environment. GDP expanded by an estimated 8.02 per cent in 2025, taking the economy to approximately $514 billion and lifting GDP per capita to around $5,026. Momentum carried into 2026, with first-quarter GDP rising 7.83 per cent year-on-year.

This rapid economic expansion, coupled with urbanization and digital transformation, is reshaping Vietnam’s social landscape. While poverty has declined and the middle class has grown, inequalities in income, assets, skills, geography, and social protection are becoming more visible, creating new policy and governance challenges.

Stratified social structure

According to the Vietnam Household Living Standards Survey 2024, conducted by the National Statistics Office at the Ministry of Finance, average monthly income per capita reached VND5.4 million ($208), up 9.1 per cent from 2023. Significant geographic disparities remain. Urban residents earned an average of VND6.9 million ($265) a month, or more than 1.5-times the VND4.5 million ($173) recorded in rural areas. Regionally, the Southeast ranked highest, at nearly VND7.1 million ($273) per person per month, while the Northern Midlands and Mountainous Region recorded the lowest average income at around VND3.8 million ($146).

The poverty rate continued to decline, falling to 2.3 per cent nationwide in 2024, down 1.1 percentage points from a year earlier. While this marks a significant achievement in poverty reduction, poverty is no longer the only concern. Within the multidimensional poverty framework, employment deprivation accounted for 40.3 per cent of total deprivation, followed by deficiencies in adult education attainment at 30.7 per cent and nutrition at 21.4 per cent.

Vietnam’s labor market has also improved, though structural challenges persist. In 2025, the workforce aged 15 and above reached approximately 53.5 million people, with 52.4 million employed. The average monthly income rose 8.9 per cent year-on-year to VND8.4 million ($323), before increasing further to VND9 million ($346) in the first quarter of 2026. The proportion of workers holding formal qualifications or certifications reached 29.6 per cent during the same period.

However, youth unemployment remains a concern. The unemployment rate among those aged 15 to 24 stood at 8.86 per cent; significantly higher than the overall working-age unemployment rate of 2.21 per cent. More fundamentally, decent work remains a major challenge. According to the International Labour Organization’s 2026 framework, informal employment accounted for 62.2 per cent of total employment in the first quarter of 2026, including 71.1 per cent in rural areas and 48.4 per cent in urban areas. A large share of Vietnamese workers therefore continue to lack stable contracts, social insurance coverage, and protection against economic shocks.

Against this backdrop, social stratification in Vietnam is not evolving into a broad-based divide between the very rich and the very poor. Rather, it is increasingly defined by five interrelated dimensions.

The first is income inequality. Though Vietnam’s income Gini coefficient stood at 0.372 in 2024, indicating a moderate level of inequality, the wealthiest 20 per cent of the population earned an average of VND11.8 million ($454) per person per month, or 7.4-times higher than the VND1.6 million ($62) earned by the poorest 20 per cent. Such disparities directly influence access to education, healthcare, housing, and skills development, increasing the risk of inequality being passed from one generation to the next.

The second dimension is asset inequality. The growing importance of real estate, land ownership, equity holdings, and business assets is widening social divides. Those with substantial assets enjoy advantages that differ markedly from younger generations who rely primarily on wage income. If property prices continue to rise faster than earnings, opportunities for upward mobility among young people and migrant workers could become increasingly constrained.

The third dimension is geographic inequality. Differences between urban and rural areas, as well as between regions, reflect unequal access to infrastructure, employment opportunities, and public services. Without stronger regional development policies, these disparities risk persisting across generations.

The fourth dimension is inequality in skills and job quality. While the share of trained workers has risen to 29.6 per cent, most employment remains informal. As Vietnam moves toward a higher-value-added economy, highly-skilled workers are likely to benefit from expanding opportunities, while lower-skilled workers face growing pressure from automation and technological change.

The fifth dimension concerns access to social protection. Though health insurance coverage reached 95.16 per cent in 2025 and social insurance coverage expanded to 45.1 per cent of the workforce, equivalent to 21.53 million people, significant gaps remain. As Vietnam continues its transition toward an aging society and could become an aged society by 2035, according to the World Bank, disparities between those with pensions and those without adequate social protection are expected to become increasingly pronounced.

Five social groups

Based on these patterns of differentiation, Vietnam’s social structure can be broadly grouped into five major strata.

The first comprises the wealthy and ultra-wealthy, whose status is largely derived from asset ownership. This group includes major business owners, investors, and individuals with substantial holdings in real estate, land, equities, financial assets, and businesses. They have been among the biggest beneficiaries of economic growth, urbanization, infrastructure development, financial market expansion, and the rise of the private sector. Their wealth is generated primarily through assets and investment rather than labor income.

The second group is the upper middle class, including professionals, managers, senior officials, entrepreneurs, and highly-skilled workers in sectors such as finance, technology, logistics, healthcare, education, professional services, and foreign-invested enterprises. While they generally enjoy comfortable incomes and the ability to invest in education, healthcare, and housing, they also face growing pressure from rising living costs, intense professional competition, and the need for continuous reskilling.

The third group consists of the mainstream middle class and lower middle class. It includes civil servants, office workers, skilled workers, small business owners, and households with stable incomes but relatively limited accumulated wealth. As one of the country’s largest social groups, it plays a vital role in domestic consumption and social stability. However, it remains vulnerable to employment disruptions, illness, education costs, mortgage obligations, and income shocks.

The fourth group comprises industrial, service-sector, and informal workers. This includes factory workers, construction workers, transport workers, delivery drivers, retail and hospitality employees, seasonal workers, freelancers, and those employed in household businesses. Though they contribute significantly to economic growth and urban economic activity, they typically face lower incomes, less stable employment, and limited social protection. As a result, they are particularly exposed to fluctuations in demand, automation, inflation, and economic downturns.

The fifth group includes the poor, near-poor, and other vulnerable populations. It encompasses ethnic minority communities, residents of remote areas, small-scale farmers, elderly people without pensions, people with disabilities, and households affected by natural disasters, climate change, or unstable livelihoods. Despite substantial progress in poverty reduction, many continue to experience multidimensional deprivation in employment, education, nutrition, healthcare, and market access.

Five transformative trends

Driven by sustained growth, urbanization, digital transformation, and international integration, Vietnam’s social structure is expected to undergo five transformative shifts.

First, the middle class will continue to expand as the service sector, digital economy, and private sector grow. However, rising healthcare, education, and housing costs may place increasing pressure on this group, potentially creating a segment of the “vulnerable middle class.”

Second, wealth inequality may emerge as the most significant axis of social stratification. Those who own property and equity assets are likely to strengthen their position, while younger generations and migrant workers dependent on wage income could find upward social mobility increasingly difficult if housing prices continue to rise rapidly.

Third, skills-based differentiation will accelerate under the influence of AI, automation, and the green economy. Society will become divided not only by wealth, but also by the ability to reskill, adapt to technological change, and remain competitive in evolving labor markets.

Fourth, population aging is creating a new form of social division between older people with pensions and accumulated assets and those who spent their working lives in informal employment and face the risk of relative poverty in retirement.

Fifth, climate change threatens to deepen regional disparities. According to World Bank estimates, climate-related losses could reach between 12 and 14.5 per cent of GDP annually by 2050 and push as many as 1 million people into extreme poverty by 2030. Farmers, fishermen, and informal workers are expected to bear the greatest risks.

Challenges for social stability

Changes in social structure are a natural consequence of economic development and can generate positive outcomes, including stronger consumption, greater innovation, and improved accountability in governance. However, if not managed effectively, these changes risk transforming natural differences into unequal opportunities, entrenching social stratification, and creating major challenges for governance and social stability.

Among the most significant challenges are growing pressure on social equity and public trust; increasing demands for interest representation and conflict management; the risk of vested interests distorting resource allocation in the absence of transparency and effective oversight; mounting pressure on urban management, migration, and public services; greater risks of localized social tensions arising from insecure employment and incomplete social protection coverage; widening digital divides; increasing fiscal pressure on the State; and the potential erosion of social cohesion if unequal opportunities persist across generations.

To manage social differentiation while ensuring inclusive development, policymakers must move beyond traditional poverty alleviation toward a broader framework focused on expanding opportunities. The objective should not simply be to reduce poverty, but to ensure that all citizens have access to quality education, employment, housing, social protection, and public services.

First, reducing inequality of opportunity must become the central focus of social policy. Second, wealth disparities should be addressed through transparent housing and land management policies.

Third, improving skills and job quality remains the most fundamental long-term solution to social stratification. Fourth, social insurance and social protection coverage should be expanded for informal workers.

Fifth, social governance should become more transparent, responsive, and data-driven.

And sixth, regional development and climate adaptation strategies should be pursued through a framework of climate justice and equitable transition.

(*) Associate Professor Phung The Dong is from the Ministry of Finance.

VET-Associate Professor Phung The Dong(*)

Attractive offerings from Vietnam's International Financial Center

Wed, 24 Jun 2026 10:30:00 GMT

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

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

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

Ho Chi Minh City IFC

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Da Nang IFC

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

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

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

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

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

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

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

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

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

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

VET-Hong Ha

Vietnam Economic Times June, 22 2026

Wed, 24 Jun 2026 09:00:00 GMT

Vietnam Economic Times Issue 462 | Monday, June 22 2026

Dear readers,

On the occasion of the 101st anniversary of Vietnam Revolutionary Press Day (June 21, 1925 - 2026), Party General Secretary and State President To Lam penned an article entitled “Vietnamese Revolutionary Journalism in the Digital Era,” affirming the key role and responsibility of Vietnamese revolutionary journalism in the current era, with its mission of being “a place where the public turns for reliable verification” and “a trusted source” for society “to understand the truth accurately.” Vietnam’s leader also provides guidance on revolutionary journalism continuing to develop and maintain its dominant role in the flow of information in the digital space, thus becoming the main force to “protect national information sovereignty.”

Vietnam Economic Times respectfully introduces a translation of this important article.

Meanwhile, our Cover Story in this edition focuses on analyzing the national housing development strategy, with a focus on finding solutions for the “rental housing problem.”

Developing rental housing is a major policy of the Party and State, as reflected in Directive No. 34-CT/TW, dated May 24, 2024, from the Party Central Committee’s Secretariat and the conclusion of Party General Secretary and State President To Lam at a working session on May 19 with several agencies on the implementation of the Directive. Accordingly, alongside housing for sale, priority will be given to developing rental housing, especially rental apartment models in major urban areas, industrial parks, economic zones, dynamic regions, and important economic corridors.

Chairing a working session with leaders from the northern port city of Hai Phong and the nearby provinces of Quang Ninh, Bac Ninh, Ninh Binh, and Hung Yen on developing rental housing, as directed by the Party General Secretary and State President, in Hai Phong on June 1, Prime Minister Le Minh Hung stated that there is a need to strongly shift the mindset on housing, from primarily developing housing for sale to simultaneously developing both commercial housing and rental housing. The Prime Minister also identified the “first bottleneck” in implementing a rental housing development policy: high demand while supply is severely lacking, especially for long-term rentals at affordable prices.

To resolve this “first bottleneck,” it is clear that all resources need to be focused, with concerted and synchronized efforts from the central government to localities, to quickly develop rental housing and gradually bridge the “mismatch” between supply and demand in the segment, which is now considered the top priority in the real estate market.

Developing rental housing in a fast, transparent, well-planned, and sustainable manner is the right direction to take to turn a major policy from the Party and State into reality, so that people, especially poor and near-poor households, and workers in industrial parks can soon benefit from a socially-humane policy, helping to narrow inequality and ensuring the right to safe housing for all social classes. This will also help alleviate many other bottlenecks in Vietnam’s real estate market, ease the pressure from rising real estate prices, limit real estate speculation, and ensure that the market develops healthily, thus attracting investment capital from the private sector and foreign investors for building, developing, and operating the real estate market in a transparent, professional, and modern manner.

Solutions for developing rental housing, with the leading and enabling role of the State affirmed, as introduced in our Cover Story, include forming a rental housing ecosystem to mobilize long-term and sustainable capital, identifying a harmonious real estate market structure, and boosting the supply of rental housing, among others.

Warmest regards

Dr. CHU VAN LAM
CHAIRMAN OF THE EDITORIAL BOARD

VET-Vietnam Economic Times - VnEconomy

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

Evolution of visual journalism

Tue, 23 Jun 2026 09:30:00 GMT

The use of data journalism makes information more engaging and understandable for readers via charts, graphs, and other visualization tools.

Data journalism is emerging as an inexorable trend amid the rapid advancement of digital technologies, reshaping how information is produced and consumed. In Vietnam, this transformation is not only a challenge but also an opportunity for the media industry. By enabling journalists to analyze and visualize complex information, data journalism is gradually becoming essential to enhancing the quality and reliability of news coverage.

The term data journalism refers to a form of reporting that uses data to tell stories. Rather than relying solely on text and images, it combines charts, graphs, maps, and other visual tools to present information in a more engaging and understandable manner. This approach helps readers better grasp complex issues while also strengthening transparency and trust in the information being presented.

Growing influence

Major news organizations in Vietnam have begun paying greater attention to and investing in data journalism. Publications such as VnEconomy, Tuoi Tre, Thanh Nien, and VnExpress have increasingly incorporated data-driven reporting into their coverage, particularly in areas such as economics, politics, and social affairs. The use of data not only makes stories more compelling but also provides readers with deeper and more comprehensive insights into current events.

One of the greatest advantages of data journalism is its ability to transform complex information into clear visual narratives. Instead of presenting readers with raw figures and statistics, journalists can use charts, graphs, and other visualization tools to make information more engaging and easier to understand. This not only improves accessibility but also enhances transparency and public confidence in the reporting.

However, achieving this requires journalists to possess strong data analysis skills and proficiency in data visualization tools. This remains a significant challenge for many traditional journalists who may not yet be familiar with technology-driven reporting methods. To address this gap, many newsrooms have introduced training programs focused on data journalism, equipping reporters with the skills and knowledge needed to work effectively with data.

Legal and data access challenges

Data journalism, however, also presents a range of ethical and legal challenges. The use of data requires journalists to comply with privacy and data protection regulations while ensuring the accuracy and integrity of the information they publish. As a result, news organizations must establish rigorous processes for data verification and validation to ensure that published information is both accurate and trustworthy.

One of the most significant obstacles facing data journalism in Vietnam is access to reliable data sources. The collection and retrieval of data remain difficult due to the limited availability of open and transparent public datasets. This requires journalists to develop strong skills in sourcing information from multiple channels, as well as the ability to assess the reliability and accuracy of the data they obtain.

Despite these challenges, data journalism continues to gain momentum in Vietnam. Many news organizations are investing in both technology and human resources to strengthen their data journalism capabilities, with the goal of improving the quality and credibility of their reporting. These investments not only help attract larger audiences but also contribute to enhancing the reputation and standing of Vietnamese journalism on the international stage.

Looking ahead, data journalism is expected to continue expanding and become an integral part of the news industry. As technology advances and the volume of available data increases, data-driven reporting will become more widespread and play an increasingly important role in delivering accurate and reliable information to the public.

According to experts, data journalism is not merely a trend but a major opportunity for Vietnam’s media sector. By harnessing the power of data and technology, news organizations can improve the quality and credibility of their reporting while reaching a broader audience. To realize this potential, however, journalists must continually enhance their skills and remain committed to ethical and legal standards in the use of data. Only then can data journalism fully demonstrate its value and contribute meaningfully to the development of Vietnam’s news industry.

Mr. Le Quoc Minh, Member of the Party Central Committee, Editor-in-Chief of Nhan Dan newspaper, and Deputy Head of the Central Commission for Communication and Mass Mobilization.

The adoption of AI in Vietnam is accelerating rapidly. AI is now being applied across a wide range of sectors, including education, healthcare, climate change, and journalism, significantly reducing the amount of human labor required. In reality, journalism today is already operating in fundamentally different ways.

However, the rapid adoption of AI and the extensive use of data also bring significant challenges. Around the world, AI-powered websites have emerged that can produce far more content than major news organizations such as the New York Times or the Washington Post. At the same time, AI has heightened the risks of misinformation, propaganda, and information manipulation. As a result, the ability to verify information increasingly depends on the knowledge and critical thinking skills of audiences.

Copyright is another growing concern. In the past, copyright infringement largely involved copying or repurposing journalistic content. Today, AI systems routinely scrape news content to train their models without providing any compensation to the organizations that produce the original material.

Beyond these issues, AI also poses broader social risks. Training data often contains inherent biases and lacks consistent ethical standards. Without proper safeguards, AI systems can reinforce “echo chambers” that amplify existing prejudices, including gender bias, discrimination, and other forms of social bias. If left unchecked, these effects could become increasingly difficult to control.

Mr. Bui Binh Minh, Head of the Multimedia Division, VietNamNet

Data journalism is not a new concept, and many news organizations in Vietnam have already embraced it. However, implementing it effectively remains a challenge.

One of the biggest hurdles facing news organizations today is the initial investment required, along with identifying data-driven content that aligns with audience interests. At its core, data journalism is about transforming data into valuable information. Broadly speaking, there are two approaches: broad scanning, which involves collecting data from a wide range of sources, and deep analysis, which focuses on mining, aggregating, and interpreting data to uncover meaningful insights.

Currently, many Vietnamese news organizations favor the broad-scanning approach, gathering and organizing information around a particular topic before presenting it to readers. While this method is relatively easy to implement, it can also overwhelm audiences with excessive amounts of content. Readers may not have the patience to work through large-scale formats such as mega stories or e-magazines packed with datasets, charts, and visualizations.

News organizations therefore need to place greater emphasis on deep analysis. Interactive maps could, for example, provide concise yet detailed statistics on cities and provinces following the transition to a two-tier local government model. Another practical application would be analyzing high school and university entrance examination score distributions, helping students assess their admission prospects and make better-informed choices about where to apply.

Technology experts often describe data as the world’s new oil. It has indeed become a critical resource, with perhaps the most visible example being its role in training increasingly sophisticated AI models. Journalism is no exception. By analyzing and uncovering insights from data, news organizations can generate information of significant value, helping readers make faster, more informed, and more effective decisions.

VET-HONG VINH

Accurate, timely, insightful information

Tue, 23 Jun 2026 04:00:00 GMT

Leading executives from various industries share their thoughts on Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy’s contribution to Vietnam’s business community and the future of economic journalism in the age of AI.

Mr. Phung Viet Thang, Country Manager of Intel Vietnam

For more than three decades, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy has established itself as one of Vietnam’s leading sources of authoritative, in-depth, and influential economic journalism.

What I value most is that the organization not only reports on economic developments, market trends, and policy changes, but also fosters a high-quality platform for dialogue between policymakers, the business community, experts, and readers. Especially in today’s digital economy, its ability to harness and deliver reliable, data-driven, and insightful information has created exceptional value in a world saturated with information.

We greatly appreciate the organization’s continued engagement with and understanding of the technology community, its efforts to highlight digital transformation stories, and its analysis of technology’s impact across sectors of the economy. In doing so, it has made a direct contribution to Vietnam’s ongoing national digital transformation.

The greatest opportunity and challenge for economic journalism in this era lies in data and AI. As technology advances, the volume of available and newly-generated data continues to grow exponentially. This places significantly greater demands on publications and journalists to identify trustworthy sources, apply effective methods of aggregation and analysis, and, most importantly, combine multiple datasets to generate meaningful insights.

From this perspective, I believe investing in AI is essential for journalism to strengthen its capabilities and meet evolving demands. AI should be deployed comprehensively - from centralized data infrastructure to individual devices, from large-scale data applications at the publication level to intelligent reporting tools for journalists - built on a unified, open, and secure platform. In that context, AI should serve as a capability-enhancing tool, not a replacement for journalists, enabling news organizations to better fulfill journalism’s core responsibilities of editing, verification, analysis, and critical thinking, guided by human judgment and professional ethics.

I see three strategic priorities specifically for the organization. First, invest heavily in high-quality, multi-format data capabilities to enhance the user experience. Second, leverage AI to support data aggregation, in-depth analysis, and more efficient content production. Third, establish clear governance mechanisms for AI-assisted content to ensure transparency, credibility, and information security.

What I find most remarkable about the organization’s 35-year journey is the enduring value that a trusted economic news organization can create for the community. In an environment where business conditions and technology are changing rapidly, what companies and society need are information channels that are credible, analytically rigorous, and capable of connecting major global trends with Vietnam’s development realities.

In my view, that is precisely the newsroom’s meaningful contribution over the years: not only documenting economic developments, but also fostering dialogue, promoting innovation, and strengthening confidence within the business community on its growth journey.

Looking ahead, I hope Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy will continue to build on its strengths as a trusted and specialized economic organization, constantly innovating in both operations and technology adoption, remaining a true companion to businesses, and contributing actively to Vietnam’s digital transformation, innovation, and sustainable growth.

Mr. Tran Dinh Tai, Deputy General Director of Hoa Sen Group

For the past 35 years, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy has established itself as one of Vietnam’s most respected economic media organizations, accompanying the country through its economic transformation. Its value lies not only in providing information but also in its ability to analyze, offer constructive critique, and connect stakeholders across the economy.

For the business community, the organization acts as an important bridge between enterprises and policymakers, while also providing a trusted platform for sharing perspectives, initiatives, and sustainable development values.

I believe that, building upon its 35-year foundation, it will continue to be a trusted partner of the business community as Vietnam advances its integration and development journey.

In the digital era, the greatest competitive advantage for economic journalism is no longer the speed of reporting but the quality of analysis, the ability to verify information, and the value that information delivers to readers.

In my view, economic media organizations should continue strengthening their expertise in in-depth reporting while embracing technology, data, and AI to enhance analytical capabilities, forecasting, and personalized user experiences. At the same time, they should continue serving as platforms that connect businesses, experts, and policymakers, helping foster dialogue, improve policy frameworks, and strengthen the business environment.

In a world saturated with information, what creates value and earns readers’ trust is not publishing more news but helping readers understand issues more clearly. This represents both a strength and an opportunity for Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy to further reinforce its position as a leading and influential economic publication.

Over the past 35 years, as Vietnam and its economy have undergone significant transformations, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy has done more than report on market developments; it has consistently examined economic and social issues through a lens of depth, objectivity, and responsibility. Through insightful analysis, high-quality forums, and trusted information, the publication has helped provide accurate and multidimensional perspectives for businesses, investors, and readers alike.

Mr. Dang Tung Son, CEO of CMC Corporation

Like many business leaders and executives, I have always regarded Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy as one of Vietnam’s most trusted publications covering economics, finance, investment, and corporate governance. Over the years, it has not only delivered accurate, timely, and insightful reporting on the economy but has also served as an important platform connecting government, experts, businesses, and the market.

What I particularly value is the organization’s ability to accompany businesses not only by highlighting achievements and success stories but also by closely following the major forces reshaping the economy, especially information technology, telecommunications, digital transformation, and, more recently, AI transformation. These are also the areas that CMC has consistently pursued as a pioneering Vietnamese technology company.

As Vietnam enters a new phase of development, marked by ambitions in innovation, technological self-reliance, digital transformation, green growth, and global integration, economic journalism has an increasingly important mission. Journalism does more than reflect reality; it helps build confidence, promote a positive business culture, and inspire the aspirations needed to drive growth and development.

I believe that, with its 35-year legacy and strong spirit of innovation, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy will continue to be a responsible, insightful, and trusted voice of Vietnam’s economy while supporting the country’s technology and digital enterprises as they expand into regional and global markets.

In recent years, we have witnessed the rapid rise of AI, particularly generative AI, across nearly every aspect of society, from business and manufacturing to healthcare, education, culture, media, and journalism. This is no longer a future trend; it is a reality transforming organizations at remarkable speed.

For CMC, a technology and telecommunications company with 33 years of development, AI represents not a challenge to fear but an opportunity to accelerate. Businesses, organizations, and media institutions all need to embrace AI transformation to meet Vietnam’s development ambitions, especially as the country pursues high-growth objectives and seeks to strengthen its global competitiveness.

Journalism is no exception. For economic media, AI transformation is not simply about applying technology to publishing workflows. It is a comprehensive shift in operating models, content production, data analysis, audience engagement, and the creation of new value for readers and the business community.

I highly appreciate Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy’s early leadership in developing the Marcom AI Platform ecosystem, including its editorial CMS platform and Askonomy Platform, which supports research, summarization, and translation through AI. This reflects both innovation and adaptability. CMC is currently working with the organization to support the commercialization of these solutions.

However, AI should not be viewed merely as a content-production tool. It should become an integral part of a newsroom’s long-term strategy. Economic journalism needs to evolve from a “digital newsroom” into an “AI-native newsroom” - one designed and operated around data, AI, and intelligent automation.

AI can help journalists aggregate information, identify trends, analyze policies, monitor market developments, personalize content, and expand multilingual and multi-platform capabilities. Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy can become more than a publication reporting on economic developments; it can evolve into a digital knowledge platform that provides information, analysis, forecasts, and policy insights for businesses, investors, policymakers, and society.

At the same time, technology should be seen as an enabler rather than a replacement. The core values of journalism remain unchanged: truth, social responsibility, professional integrity, and readers’ trust. AI transformation must therefore extend beyond technology to encompass people, processes, governance, and organizational culture.

With its 35-year reputation and its commitment to innovation, I believe Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy is well positioned to become one of Vietnam’s leading economic media organizations in AI transformation. It can play a significant role not only in documenting the country’s digital economy but also in accelerating AI adoption across Vietnam’s media sector. CMC stands ready to support the organization and the broader journalism community on that journey.

If I were to choose descriptions for Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy after 35 years, they would be hardworking, disciplined, innovative, and constantly creating value for the community. To me, this reflects both its achievements over the past three and a half decades and its future potential as a trusted “hive of knowledge” where information, expertise, and inspiration come together to support Vietnam’s business community.

Mr. Thieu Phuong Nam, General Director of Qualcomm for Vietnam, Cambodia, and Laos

Over more than two decades of operating in Vietnam, we have witnessed the country’s remarkable transformation in both economic development and technological advancement. As technology plays an increasingly critical role in economic competitiveness, credible media organizations specializing in business and technology have a particularly important role in helping businesses, policymakers, and the public better understand both the opportunities and implications brought about by emerging technologies.

Innovation can only realize its full potential when stakeholders understand not only what technology can do but also how it can be applied responsibly to create meaningful value for the economy and society.

Looking ahead, Vietnam has the opportunity not only to adopt and apply technology but also to become a contributor to the global innovation ecosystem through RD and a highly-skilled workforce. Achieving this goal will require stronger public-private collaboration and a greater role for trusted institutions in fostering dialogue, raising awareness, and supporting informed decision-making. We believe that media organizations such as Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy will continue to play an important role in facilitating these conversations as Vietnam moves closer to becoming an innovation-driven economy.

For its part, Qualcomm remains committed to supporting this journey through long-term investments in innovation, talent development, and collaboration with partners across Vietnam’s technology ecosystem.

I do not believe that the rise of AI diminishes the role of mainstream journalism. As information becomes increasingly abundant and easier to generate, qualities such as credibility, context, and authenticity become even more valuable. For media organizations, the opportunity lies not only in adopting AI but also in leveraging it to enhance both operational efficiency and content quality.

AI can significantly support activities such as research, content discovery, translation, and audience engagement. However, technology is a tool, not a substitute for editorial judgment. While AI can generate content at scale, it cannot replace domain expertise, critical thinking, or the ability to analyze complex issues. The organizations that succeed will be those that effectively combine the speed and efficiency of AI with the standards and professionalism of journalism.

Beyond applying AI in their own operations, media organizations also have an important role to play in helping society adapt to technological change. As AI becomes increasingly embedded across industries, society needs clear, balanced, and practical perspectives on how these technologies can improve productivity, strengthen competitiveness, and drive long-term economic growth.

Media organizations capable of translating complex technological developments into accessible, meaningful analysis for businesses and society will continue to stand out. At the same time, the media can serve as a bridge that promotes dialogue and collaboration between policymakers, businesses, academia, startups, and investors.

At Qualcomm, we view AI as one of the most transformative technologies of our time, with the potential to boost productivity, enable new business models, and drive economic growth across sectors. This belief underpins Qualcomm’s long-term commitment to Vietnam, including the establishment of the Qualcomm RD Center in Hanoi and the implementation of initiatives aimed at strengthening domestic AI capabilities and innovation, such as Qualcomm Academy and the Qualcomm Vietnam Innovation Challenge.

We believe these long-term investments will help support Vietnam’s ambition to become a leading innovation-driven economy in the AI era.

Mr. Kulachet Dharachandra, Country Director of SCG in Vietnam and General Director of Long Son Petrochemicals

I would like to congratulate Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy on its 35th anniversary. What impresses me most about the organization is its ability to continuously reinvent itself, from a traditional newspaper into a trusted multi-platform media ecosystem. In many ways, this mirrors SCG’s own transformation in Vietnam over the past three decades, from an importer to a manufacturer and strategic industrial partner.

Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy’s contribution extends well beyond journalism. It has effectively connected policy with business realities and fostered meaningful dialogue between government, businesses, and society. Through flagship initiatives, the publication has created valuable platforms where ideas can be transformed into action. In an age of information overload, its ability to shape serious, constructive conversations about Vietnam’s development is what has earned the trust of readers for 35 years.

Today, economic developments can no longer be viewed in isolation. They are increasingly shaped by geopolitics, technology, and sustainability. Amid an abundance of information, what readers need most from credible media organizations is context, insight, and trust.

Journalism must stay one step ahead, helping businesses understand the forces driving change. Topics such as AI, environmental, social, and governance (ESG) practices, the circular economy, and net-zero commitments are no longer emerging trends; they have become long-term drivers of competitiveness. By sharing practical lessons and real-world success stories, the media can help accelerate the green transition across both the public and private sectors.

No matter how rapidly technology evolves, credibility remains timeless. The most valuable media organization is not the one that delivers news the fastest, but the one that earns a unique and enduring level of trust from its audience.

If I were to choose a metaphor to describe the organization after 35 years of innovation and development, it would be a “fiber-optic cable of trust.” A bridge connects people physically; a fiber-optic cable connects them instantly, across unlimited distances and on a global scale.

For 35 years, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy has served as that connection, linking policy with practice, businesses with opportunities, and sustainability ambitions with concrete action. As Vietnam enters a new stage of development, trusted organizations such as Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy will become even more important. SCG is proud to have accompanied this journey and wishes it continued success as one of Vietnam’s leading economic media organizations.

Mr. Le Quoc Vinh, Chairman of the Le Group of Companies, and Chairman of the Vietnam Chief Sales Marketing Officers Club (CSMO)

Looking back, what moves me most is not that Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy has endured for 35 years. What moves me is that it has accompanied almost the entire journey of Vietnam’s market economy, from its emergence to its maturation.

From an A4-sized economic bulletin first published in 1991 to the influential economic media ecosystem it is today, the publication has done more than witness Vietnam’s economic history. In some ways, it has helped shape that history.

I have always believed that journalism’s greatest role is not to record events, but to help society understand their meaning. For decades, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy has fulfilled that role in relation to the country’s economic life.

From the early years of opening up to foreign investment, through the rise of the private sector, waves of equitization, WTO accession, the development of the stock market, and global economic crises, the publication has helped explain complex developments to businesses and the broader public.

Thirty-five years ago, businesses needed information. Today, they are no longer short of information; they are surrounded by it. What has become scarce is not data, but the ability to interpret it correctly. Not news, but knowledge. Not speed, but trust.

AI can give us access to unlimited amounts of information. But AI cannot create social trust on its own. Trust must still be built by credible institutions.

That is why I believe the greatest mission of economic journalism in the years ahead is not to become the fastest source of news, but to become part of the economy’s trust infrastructure. A modern economy requires more than roads, ports, and data centers. It also needs institutions capable of verifying information, promoting transparency, connecting market participants, and facilitating meaningful policy dialogue.

Thirty-five years ago, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy was founded as Vietnam began opening up to the world. Today, the country is entering a new stage of development, one defined by greater ambitions, greater opportunities, and greater challenges.

While the first chapter was about accompanying the formation of Vietnam’s market economy, the next may well be about accompanying the maturation of Vietnamese businesses in a knowledge-based and trust-based economy. It is a more difficult journey, but is one worth beginning.

Mr. Nguyen Vu Anh, CEO of Coc Coc

In developed markets, many leading economic media organizations have evolved far beyond the role of news providers. They have become platforms that integrate data, analysis, research, and expert insights to help businesses make better decisions. Today, the most influential economic publications do not simply tell readers what is happening; they help them understand why it matters and what actions they should consider. I see Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy playing a similar role in Vietnam.

For businesses, internal data alone is rarely enough. Leaders also need to understand broader developments in the economy, public policy, technology, consumer behavior, capital flows, and market competition. High-quality economic journalism helps provide that wider perspective, enabling businesses to validate assumptions, identify opportunities, and make more informed decisions.

At Coc Coc, we have experienced this value firsthand. As a Vietnamese technology company developing digital products and platforms for local users, we appreciate not only Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy’s journalistic credibility but also its ability to place business stories within the larger context of digital transformation, innovation, and economic development. When technology is viewed through the lens of policy, market trends, and national development priorities, the discussion becomes far more meaningful.

Looking ahead, I believe economic journalism must continue evolving beyond its traditional role as a news outlet. The challenge today is no longer a lack of information; it is information overload. Business leaders need trusted sources that can filter information, provide context, and explain what developments mean for their organizations.

That is why I believe economic journalism should increasingly serve as an information and analytical infrastructure for businesses. Leading international media organizations have already moved in this direction, building specialized databases, market intelligence products, expert communities, and policy forums alongside their core journalism.

This is also a natural direction for Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy. The publication already possesses deep economic expertise, a strong network of experts, close relationships with the business community, and extensive experience organizing respected economic forums. Combined with data, AI, and digital innovation, these strengths could help transform Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy into a comprehensive economic knowledge platform.

I particularly appreciate the publication’s early investment in initiatives such as Askonomy and other AI-powered products. These efforts demonstrate that Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy is not merely reporting on digital transformation, it is actively embracing it.

Ultimately, economic journalism must preserve its most valuable asset: public trust. Technology can help journalism move faster and create new forms of value, but trust remains the foundation. Technology may help journalism go faster, but trust is what enables it to go further.

Mr. Pham Ha, Founder and CEO of LuxGroup

For the past 35 years, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy has established itself as one of Vietnam’s most respected and influential economic media organizations. For the business community, it has been more than a source of information; it has been a trusted companion throughout the country’s journey of reform, integration, and economic development.

I particularly value the newsroom’s role in connecting businesses with experts, policymakers, and investors. Its economic forums, policy dialogues, and conferences have become important platforms where ideas are shared, debated, and refined.

In tourism, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy was among the first media organizations to recognize the industry as a major economic driver rather than simply a service sector. Its in-depth reporting, policy analysis, tourism forums, and the legacy of The Guide Awards have helped improve service quality, promote professionalism, and strengthen Vietnam’s tourism brand internationally.

From my perspective, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy’s greatest contribution has been not only reporting on economic developments but also helping shape development thinking among businesses and society. That is a remarkable achievement over the past 35 years.

In the digital era, speed is no longer journalism’s only competitive advantage. What readers and businesses increasingly value is credibility, analytical depth, and the ability to anticipate future trends.

Economic journalism must evolve from simply delivering news to creating knowledge. Today’s business leaders want more than information about what is happening; they want to understand why it is happening and what it means for their strategies. I hope the organization continues to build on its strengths in policy analysis, economic data, trend research, digital transformation, AI, green growth, environmental, social, and governance (ESG) practices, and innovation.

It should also continue acting as an effective bridge between businesses, experts, investors, and regulators, ensuring that practical business perspectives are better reflected in policymaking. In tourism in particular, I would like to see the organization develop a deeper content ecosystem around the economics of tourism; one of Vietnam’s most influential industries. As the country aims to become a leading destination in Asia, it needs high-quality policy forums, market research, conferences, and industry discussions that can help strengthen national competitiveness.

I believe that by combining technological innovation with the core values of professional journalism, the organization will continue to play a leading role within Vietnam’s economic media landscape.

If I were to choose a symbol for Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy after 35 years of innovation and development, it would be a lighthouse guiding Vietnam’s economic journey. A lighthouse does not steer the ship, but it helps sailors navigate through changing conditions and uncertain waters.

I believe the organization will continue to serve as a lighthouse of knowledge for Vietnam’s business community, accompanying the nation as it builds a greener, more digital, more innovative, and more globally-integrated economy.

Mr. Nguyen Tu Quang, Chairman and CEO of the BKAV Group

Having had the opportunity to work with many media organizations since the early 2000s, I have always held a special regard for Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy. In my view, it is a publication that truly lives up to its name, consistently maintaining professionalism, integrity, and high standards worthy of one of Vietnam’s leading economic media brands.

That professionalism is reflected not only in the stature of the publication itself but also in the working style of its journalists. I have worked with its reporters on numerous occasions and have always been impressed by the way they approach their subjects. They possess deep knowledge, ask insightful questions that go straight to the heart of the issues that matter most to business leaders, and demonstrate a genuine understanding of the challenges faced by enterprises.

The rise of social media has brought unparalleled speed in the dissemination of information, but it has also exposed weaknesses in depth, accuracy, and credibility. In that context, I believe this presents a golden opportunity for mainstream media organizations such as Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy to reinforce their position. No matter how quickly information travels, modern society will always require trusted, verified sources that provide direction and in-depth analysis. Professional journalism remains the foundation, the authoritative source of information from which social media draws and amplifies content.

As Vietnam enters a new era of national development and aspiration, economic issues will undoubtedly remain at the forefront of attention for the government, businesses, and society as a whole. I therefore hope that Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy will continue to stay committed to its strength in in-depth reporting and analysis, focusing on the major economic challenges facing the country. Thought-provoking and well-researched reporting from the newsroom can help society develop a more accurate and comprehensive understanding of economic realities, making a meaningful contribution to the nation’s development.

If I were to describe Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy after 35 years in a single phrase, it would be: “Authentic integrity and professionalism.” Throughout its development, amid an increasingly turbulent media landscape, it has remained one of the rare publications that has preserved the core values and identity of journalism. Rather than seeking attention through sensationalism or controversy, it has built its reputation through the quality of its content and the value of the knowledge it delivers.

Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy is truly a symbol of ethical, principled, and professional economic journalism in Vietnam.

Mr. Ngo Minh Quan, Chief of Digital Transformation at the Rikkeisoft Corporation

Looking back on Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy’s 35-year journey of innovation and growth, we see a publication that has evolved alongside Vietnam’s economy. For the business community, particularly the technology sector, it is far more than a media organization. It has established itself as both a trusted chronicler of economic development and a strategic communications platform.

The relationship between Rikkeisoft and Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy is a testament to that role. We have been honored to contribute to editorials, in-depth discussions, and industry dialogues alongside leading technology groups such as FPT, Viettel, and VNPT. The fact that Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy has consistently provided a platform for newer-generation enterprises like Rikkeisoft reflects the newsroom’s openness, objectivity, and commitment to promoting Vietnam’s digital capabilities.

More importantly, the publication has not merely reported on corporate milestones; it has accompanied and documented them. In many ways, the organization has served as a source of knowledge and inspiration, helping Vietnamese enterprises gain the confidence to integrate internationally and compete on the global stage.

As a technology company, our current strategy focuses on applying AI to enhance productivity and increase value creation while pursuing our ambition of becoming a global enterprise and strengthening the presence of Vietnamese brands in international markets. From that perspective, I believe Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy can further amplify its impact in two important ways.

First, it can become a strategic compass for Vietnamese businesses navigating international markets. As companies expand into destinations such as the US, Japan, and the wider Asia-Pacific region, they increasingly need deeper insights into capital flows, international economic policies, regulatory developments, and emerging opportunities in areas such as AI and semiconductors. Stronger forward-looking analysis would help businesses not only seize opportunities but also manage risks more effectively.

Second, it can play an even greater role in advancing what I would call the “human capital economy.” In the digital era, high-quality talent is one of a nation’s most valuable assets. The publication is uniquely positioned to connect government, businesses, and educational institutions while promoting technology talent development and sharing best practices in productivity and workforce management. A practical knowledge ecosystem of this kind would provide a powerful foundation for the global ambitions of Vietnamese enterprises.

If I had to describe Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy at 35 years in a single image, I would call it “the fiber-optic cable of knowledge connecting Vietnam’s economy to the world.”

In the digital age, fiber-optic infrastructure forms the backbone of connectivity, transmitting information at high speed with reliability and precision. For 35 years, the publication has fulfilled a similar role, delivering economic information quickly and accurately while providing the depth of analysis and strategic perspective needed to guide decision-making.

More importantly, it has connected generations of Vietnamese businesses, linked enterprises with policymakers, and bridged domestic capabilities with global technology trends and international capital flows. That seamless flow of knowledge has provided companies like Rikkeisoft with valuable support as we pursue growth and global expansion.

VET-

Nokia’s strategic paradigm shift in Vietnam’s AI super-cycle

Mon, 22 Jun 2026 07:30:00 GMT

Mr. Hiro Miura, General Director of Nokia Vietnam, tells VET’s Truc Quynh about localizing 5G manufacturing, quantum-safe network backbones, and the road toward 6G.

"We believe significant, uninterrupted infrastructure investment is required to support the heavy-load networks that AI brings to society. Our technologies are engineered to support Vietnam’s national endeavor from now to 2030," said Mr. Hiro Miura, General Director of Nokia Vietnam.

Nokia has recently signaled a significant evolution in its global strategy. How is this new vision redefining operations here in Vietnam?

Nokia has shifted from being known for ‘connecting people’ through mobile devices to ‘connecting intelligence.’ We have entered the AI era, and our technology investment now centers on it. In Vietnam, this shift shapes not only mobile networks and 5G deployment, but also our core infrastructure portfolio — optical networks, IP networks, and fixed networks, which are now Nokia’s main pillars.

Nokia’s recent 5G rollout with Viettel across 22 provinces uses locally manufactured equipment. How does this ‘Made-in-Vietnam’ blueprint affect your supply chain resilience, and are there plans for export?

Vietnam’s 5G launch came at the right time for us, aligning with our decision to establish high-tech manufacturing in Bac Giang Province. The network products we manufacture there include baseband units, remote radio heads, and fiber network equipment. Today, all 5G equipment we deliver to Vietnamese operators is made locally — a choice we made for supply chain diversity and resilience. Going forward, our roadmap is for 5G equipment serving the wider Asian market to be exported from our Vietnamese manufacturing base.

Under Nokia’s Edge Cloud vision and your collaboration with Viettel, NVIDIA, and Ericsson, how will edge computing widen access to AI processing for SMEs in fragmented industrial zones?

This ecosystem is driven by the AI-RAN Alliance [AI RAN: Artificial Intelligence Radio Access Network — a technology that integrates AI into cellular networks to automatically optimize data speeds, frequencies, and energy efficiency directly at the base stations]. Viettel is actively collaborating within this ecosystem, and Nokia — as a leading member of the alliance — supports these initiatives. We have also formed a deep-tech partnership with NVIDIA on AI RAN innovation, investing to make our radio software stack run natively on NVIDIA’s accelerated computing platform.

What are the core components of AI RAN, and what is the current timeline for deployment?

AI RAN architecture has three components: AI for RAN, AI on RAN, and AI and RAN. AI for RAN is a mature technology available today — our Self-Optimized Network (SON) solution already uses AI to maximize spectral efficiency and automate network design for operators such as Viettel, VNPT, and Mobifone. AI on RAN and AI and RAN form our deeper integration with NVIDIA; we are advancing through this phase and are on schedule to bring these capabilities to market in the near future.

Capital markets are tightening globally. Why does Nokia stay optimistic about high-cap infrastructure investment in Vietnam during a period of selective spending?

The AI cycle has begun, but we are still in its early phase, and infrastructure spending will grow substantially. This extends beyond the radio network to heavy infrastructure such as subsea cables and cross-border connectivity, which operators like Viettel, VNPT, and Mobifone are already building. The Vietnamese government has also taken decisive steps to drive national digital transformation toward 2030. That creates real demand for robust infrastructure, and Nokia is positioned to support these investments.

Skeptics note that 5G has yet to deliver clear ROI for operators. How does Nokia help partners like Viettel and VNPT monetize 5G Advanced for the B2B enterprise segment?

5G is still in its early stages in Vietnam, and 5G Standalone (5G SA) has not yet gone commercial here. But mature markets show where the value lies: in Singapore, operators have advanced 5G SA slicing features that now contribute to both their consumer and enterprise businesses. Realizing this domestically depends on migrating to 5G SA, which unlocks capabilities such as network slicing. As Vietnamese operators move in that direction, we are working with them on proven monetization frameworks for the B2B segment.

Your recent MOU with VNPT underscores a ‘Security by Design’ framework. How does Nokia secure Vietnam’s 5G backbone against sophisticated cyber threats?

Nokia deploys a specialized telecom security portfolio. We implement our Cybersecurity Dome, which delivers tailored protection for telecom networks. Our hardware is also built as a quantum-safe network: quantum computing will sharply accelerate processing power, so code-breaking that would take a hacker a century today could take minutes in the future. Nokia preemptively addresses this by embedding post-quantum encryption into our network equipment, safeguarding Communication Service Providers (CSPs) against both current and future cryptographic vulnerabilities.

While 5G is still being optimized, Nokia is already discussing 6G with Vietnamese leadership. What foundational milestones must Vietnam clear to secure 6G readiness?

Vietnam is at the start of its 5G and 5G Advanced journey, but it is worth preparing now. 6G standardization has already begun: the 6G study in 3GPP Release 20 is due to conclude in March 2027, followed by implementation specifications in Release 21, expected around the end of 2028, with productization to follow.

A key requirement will be new mid-band spectrum, particularly the 6–8 GHz range, which balances coverage and capacity. Nokia works globally with operators, regulators, and the ITU-R on allocating this spectrum. Vietnam has made strong progress here, reserving 700 MHz in the upper 6 GHz range for IMT communications at the end of 2025.

On research, Nokia is shaping a shared 6G vision with industry peers, academia, and research institutions across the US, Europe, and Asia-Pacific. In the Asia-Pacific region, we contribute to national programs such as XGMF in Japan, the 6G Bharat Alliance in India, and the 6G Forum in Korea, alongside bilateral collaborations with operators and universities. For Vietnam, continuing a proactive spectrum and frequency strategy with the Ministry of Information and Communications and the Ministry of Science and Technology will help map out the most effective bands for 6G.

vneconomy-Mai Truc Quynh

Data as a foundation of economic journalism

Mon, 22 Jun 2026 03:30:00 GMT

Tap chi Kinh te Viet Nam / Vietnam Economic Times/ VnEconomy was one of the pioneers in accessing information from the National Statistics Office for analysis, forecasting, and policy evaluation.

When Vietnam’s economic reforms were still in their early stages, in 1991, and the concept of a market economy remained unfamiliar to much of the public and the business community, Thoi bao Kinh te Viet Nam, now known as Tap chi Kinh te Viet Nam (with publications including Tap chi Kinh te Viet Nam, Vietnam Economic Times, and VnEconomy), was established with a mission to disseminate economic knowledge, promote new ways of thinking, and accompany the country’s development journey.

From its earliest editions, the publication quickly developed a distinctive identity. Unlike the one-way reporting style common at the time, its articles did more than deliver information. They introduced readers to the principles of a market economy, explained economic developments unfolding in practice, and shared lessons from international development experiences.

Distinctive voice

As Vietnam transitioned from a centrally-planned economy to a socialist-oriented market economy, such knowledge was particularly valuable. Many readers turned to Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy not only to learn what was happening but also to understand the forces driving economic change.

That approach became the foundation of the publication’s reputation and influence. Its credibility was not built through marketing campaigns but through public demand. Society needed a high-quality economic forum, and readers eagerly embraced Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy as a trusted companion throughout the reform process.

More than simply an economic newspaper, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy was among the pioneering media organizations that helped popularize market-economy thinking during the early years of reform. At a time when Vietnam’s private sector was still in its infancy and businesses were navigating unfamiliar terrain in both commerce and international integration, the publication introduced concepts such as markets, competition, investment, corporate governance, and globalization to a broader audience. In that sense, it not only reported on reform but also helped spread the spirit of reform throughout Vietnam’s economic life.

Over the past 35 years, despite changes in name, format, and technology, the publications of Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy have remained committed to a core mission: serving the nation, accompanying the government, ministries, local authorities, and business community while providing readers in Vietnam and abroad with reliable, in-depth, analytical, and practical economic information.

Responsible source

From the early years of reform, through Vietnam’s international economic integration and accession to the World Trade Organization, through global economic crises, post-pandemic recovery, and the digital transformation era, Tap chi Kinh te Vietnam / Vietnam Economic Times / VnEconomy has consistently served as a responsible economic information platform, accurately reflecting economic realities, amplifying the voice of the business community, and contributing to policy dialogue.

One of the defining features of the organization has been the strategic vision of its editorial leadership in anticipating the evolution of modern journalism.

Years before data journalism became a mainstream trend, the leadership of Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy had already recognized the growing importance of data in economic reporting. In 2018, for example, it approached the General Statistics Office (now the National Statistics Office) to discuss cooperation on building economic databases to support journalistic activities. It was a forward-looking vision. In economics, data is not merely an illustrative tool; it forms the foundation for stronger analysis, forecasting, and policy evaluation.

As a result, many articles in Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy incorporated charts, graphs, and modern data visualizations, transforming dry statistics into compelling and accessible narratives. The integration of journalism and data became one of the publication’s defining characteristics within Vietnam’s economic media landscape.

Working alongside the Central Commission for Policy and Strategy, research institutions, and domestic and international organizations, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy has organized numerous high-profile economic forums and conferences, creating opportunities for dialogue between policymakers, local authorities, businesses, foreign investors, and experts.

Many valuable recommendations and policy proposals emerged from these forums, contributing to the development and refinement of Vietnam’s socio-economic policies. They also illustrate the growing role of modern journalism, not merely reflecting reality but connecting stakeholders and creating value for society.

The significance of these forums lies not in the number of events held but in their ability to connect participants from across the economy. Policymakers, businesses, researchers, domestic investors, and international investors have used these platforms to exchange ideas, recommendations, and reform initiatives. Through these efforts, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy gradually established itself not only as a media organization but also as a trusted and responsible forum for policy dialogue.

Another pillar of its reputation is its dedicated team of journalists and its network of highly-qualified contributors. Over the past 35 years, the publication has brought together leading economists, researchers, analysts, and experienced reporters and editors with strong professional expertise and a deep sense of responsibility.

This intellectual capital has produced in-depth reporting, insightful perspectives, and valuable analysis that have informed both policymaking and business decision-making.

Beyond journalism

As the organization enters its 35th year, it faces both significant opportunities and unprecedented challenges. The rapid rise of AI, the expansion of digital platforms, increasingly fragmented information consumption habits, and new business pressures are fundamentally reshaping the media landscape. In this environment, innovation is no longer simply a growth strategy, it is a prerequisite for maintaining relevance and leadership.

Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy’s future extends beyond its role as an economic publication. It must evolve into a modern media, data, and economic knowledge ecosystem - a hub connecting policymakers, regulators, businesses, experts, and investors and a trusted economic information gateway for both domestic and international business communities.

To achieve this vision, the organization must continue leading in the adoption of AI, data journalism, analytics, forecasting, and specialized information platforms, creating high-value knowledge products that technology alone cannot replicate.

In the digital era, when data has become a strategic resource and AI is transforming the production, distribution, and consumption of information, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy’s opportunity is not merely to become faster or more technologically advanced. At a higher level, it can aspire to become a center for economic data, analysis, and knowledge, bringing together information, forecasting trends, facilitating policy dialogue, and providing practical solutions for businesses and policymakers alike.

That is how the publication can continue fulfilling its pioneering role as Vietnam advances toward its 2045 development goals. Its 35-year journey is a source of pride, but it also marks the beginning of a new chapter.

Vietnam’s ambition to become a high-income developed nation by 2045 will require modern and inclusive institutions, stronger enterprises, and media organizations capable of shaping thinking, disseminating knowledge, and fostering solutions for development.

With its pioneering tradition, innovative spirit, and commitment to public service, Tap chi Kinh te Viet Nam /Vietnam Economic Times / VnEconomy possesses all the foundations necessary to continue accompanying the nation on this journey, remaining true to the principle that has defined its identity for decades: “Authentic Perspectives - Positive Thinking - Practical Solutions.”

More than a journalistic philosophy, it is Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy’s commitment to supporting the development of Vietnam’s economy today and contributing to the country’s aspiration for prosperity and strength by 2045.

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

VET- Dr. Nguyen Bich Lam (*)

26-year journey of an online economic news platform

Sun, 21 Jun 2026 08:00:00 GMT

VnEconomy’s 26-year journey has been largely in parallel with the ever-changing technological evolution of online news publishing in Vietnam.

Vietnam officially connected to the internet in November 1997, at a time when online applications were mostly limited to email and a handful of websites operated by major technology companies. In journalism, only a small number of news organizations began experimenting with online publishing between 1999 and 2000. Founded in 1998, Thoi bao Kinh te Viet Nam’s online version VnEconomy was one of only a few digital publications to operate as a genuine online newspaper, with content updated on a daily basis.

Over the 26 years since, digital publishing technology has evolved in ways that would have been difficult to imagine back then. The advantages from being an early pioneer enabled VnEconomy to accumulate valuable experience and develop the determination to adopt the most advanced technologies available in journalism.

Initial experiments

The technological foundations of online journalism at the time were vastly different from today’s. This was not merely a reflection of Vietnam’s technological limitations, as digital publishing technology was still in its infancy from a global standpoint.

Comprehensive content management systems (CMS) and database-driven publishing platforms did not yet exist. There was no Google Analytics to measure readership, nor were there cache servers or content delivery networks (CDNs). Theories on online page design and digital graphics were largely adaptations of print newspaper layouts. Serious research into eye-tracking behavior and reader interaction patterns on digital screens would not emerge until several years later.

In the beginning, VnEconomy relied on the technologies available at the time to publish and update news. The work of online reporters and editors was highly manual. Most daily tasks involved receiving content from the print edition, converting fonts, using static HTML editing software such as FrontPage or Dreamweaver, manually inserting hyperlinks, updating homepage links, and uploading HTML files to a server.

Reusing content from other publications, primarily print newspapers, was even more labor-intensive. Articles often had to be retyped manually or, in a more “advanced” process, scanned from printed pages, converted into text using optical character recognition software, proofread, and then incorporated into the HTML publishing workflow. Original reporting followed similarly manual processes from writing through editing and publication.

HTML page design itself was a complex undertaking. One challenge stemmed from the fragmented Vietnamese font ecosystem. Northern publications typically used the TCVN3 (ABC) standard, while VNI was more common in southern Vietnam. Unicode did not become widely adopted across Vietnamese websites and online newspapers until after 2005.

Browser compatibility presented another obstacle. Internet Explorer and Netscape often rendered websites differently, particularly in their support for JavaScript, which enabled animated headlines, moving text, and image effects.

Internet connectivity in Vietnam during the early years depended largely on dial-up connections with extremely slow speeds and a limited user base. As a result, page-loading speed became the primary concern for online newsrooms, often requiring image quality to be reduced to the bare minimum. It was not until the widespread adoption of ADSL broadband technology in 2004-2005 that online newspapers gained the conditions necessary for rapid growth. During the same period, CMS technology became increasingly common, while Google Analytics emerged as a valuable tool for monitoring audience behavior and optimizing site design.

From hyperlinking to AI

As one of the earliest news organizations to develop an online edition, Tap chi Kinh te Viet Nam, formerly Thoi bao Kinh te Viet Nam, has undergone multiple waves of technological transformation. The emergence and rapid adoption of AI since late 2022 triggered a giant leap forward in digital publishing technology at VnEconomy, arguably representing an even more profound shift than the earlier transition from manually-linked static HTML pages to dynamic, database-driven publishing systems.

Beginning in early 2023, the magazine invested in and partnered with technology company Actable AI to develop its own proprietary small language model. A strategic question quickly emerged: why build a proprietary model when large language models such as ChatGPT and Gemini were already delivering impressive results?

The decision to pursue the more challenging path of developing an in-house model reflected a distinct newsroom philosophy. First, the most important values in journalism are authority and accuracy, requirements that can only be fully guaranteed when a newsroom maintains control over the data used to train its AI systems. Second, a proprietary model can continuously incorporate new knowledge drawn from the publication’s extensive content archives, while becoming increasingly cost-efficient over time. Third, ownership of the model enables deep integration of AI capabilities across every stage of newsroom operations, from identifying story ideas and recommending topics to supporting research and data analysis.

From the outset, the magazine’s AI strategy was never about following trends. The goal was comprehensive integration into the content production and distribution process rather than isolated experimentation or individual use cases.

Today, AI is embedded throughout VnEconomy’s CMS, significantly transforming newsroom workflows. Reporters can confidently instruct AI to assist with article production because the data sources used by the system are fully verified, eliminating the risk of fabricated information. Journalists can instantly access relevant data and information within the CMS while working on stories. Conferences, seminars, and interviews can be automatically transcribed, and AI can even generate preliminary article drafts to support reporters.

Comprehensive AI integration has also helped reduce labor-intensive tasks while significantly improving productivity. VnEconomy’s English-language edition operates with a relatively small team yet delivers a greater volume of content with faster publication times and reliable translation quality tailored to economic and business reporting.

The daily podcast production process likewise requires only minimal staffing, as AI automates multiple stages, from selecting articles for summarization to generating audio content using proprietary voice technology.

As AI becomes more powerful and widely accessible, its use in journalism has become increasingly routine. Asking AI to summarize documents, create illustrations, or generate infographics is now as commonplace as using a camera, a pen, or a notebook once was.

Yet AI’s true value can only be measured and validated when it is tightly integrated into a newsroom’s standardized workflows. The distinction lies in moving beyond individual preference or convenience and embedding AI into formal editorial processes. Only then can news organizations effectively monitor, manage, and quantify its impact and productivity gains.

(*) Mr. Nguyen Hoang is a Deputy General Managing Editor of VnEconomy.

VET-NGUYEN HOANG (*)

Distinctive analytical identity of an economic magazine

Sun, 21 Jun 2026 01:00:00 GMT

A look back over the 30-plus years of Vietnam Economic Times’ growth and development reveals a story of continual reimagining and modernization to meet the requirements of a broad, global readership.

Vietnam Economic Times (VET), the flagship English-language publication of Tap chi Kinh te Viet Nam (formerly known as Thoi bao Kinh te Viet Nam), had humble beginnings in 1994. Today, it has grown into a trusted bridge between Vietnam’s economy and the international community, adapting through technological revolutions while preserving its core commitment to depth and quality.

Early years planting the seeds

VET launched its first issue on March 15, 1994, just a few years after Vietnam began accelerating its “Doi Moi” (Economic Renewal) reforms. Accompanied shortly afterward by The Guide - a monthly travel magazine aimed at international tourists - it filled a critical gap: providing in-depth, English-language coverage of Vietnam’s economic policies, investment climate, business activities, and socio-economic development to foreign readers, diplomats, investors, international organizations, and business communities.

In its formative years, VET benefited from a strategic partnership with Ringier AG, a leading Swiss media group. This collaboration infused the newsroom with international journalistic standards while maintaining a distinctly Vietnamese perspective. One senior editor recalled the intense “dissection sessions” during Cover Story meetings, where teams debated concepts, headlines, photography, and structure with passion. Disagreements between Vietnamese and foreign colleagues were common but always constructive, focused on elevating quality rather than personal ego.

These rigorous processes forged a distinctive “VET quality” - articles that went far beyond news summaries. A truly “VET quality” article is one that combines depth with accessibility. It must deliver high-value information based on official data and up-to-date statistics, offer forward-looking perspectives, and provide maximum reference value for readers. VET articles go beyond merely describing events; they must analyze root causes, examine multi-dimensional impacts, place issues in an international comparative context, and offer practical recommendations.

To achieve this standard, VET’s Editorial Board has established implicit criteria that every reporter’s article must meet before publication.

First is a high level of intellectual content: reporters must thoroughly research the topic to provide exclusive insights. Articles must rely on official data and interviews with leading reputable experts. Next is balance and objectivity, achieved by interviewing three to five relevant stakeholders to combine perspectives from multiple angles. The article must also deliver clear added-value, helping readers find specific solutions for their businesses. Finally, VET’s language must be standard academic English with clear, sharp economic terminology.

Thanks to these standards, before official publication an article must go through at least three rigorous rounds of editing, covering content, language, and layouts. We embrace this meticulousness as a supreme principle to protect our brand.

A cornerstone of VET’s influence has been the Golden Dragon Awards, launched in 2001. To honor the contributions of foreign-invested enterprises (FIEs) in Vietnam, while also motivating the sector’s further development, VET cooperated with the Foreign Investment Agency under the Ministry of Planning and Investment (now the Ministry of Finance) to initiate the Awards program.

Over the past 25 years (2001-2026), with strong support from the FIE business community, VET has consistently maintained the annual program, delivering practical value through a wide range of meaningful activities for FIEs as well as policymakers and regulators. The program has recognized thousands of companies, strengthening VET’s reputation as a credible partner of the business community and creating lasting bridges between policymakers and investors.

Transformation in the digital age

As the digital era brought significant changes, an online publication of VET - VnEconomy - was launched in November 2014, marking the organization’s entry into online publishing.

By late 2020, the parent company Thoi bao Kinh te Viet Nam had transitioned into Tap chi Kinh te Viet Nam. The Guide ceased publication, but VET and VnEconomy continued as key platforms.

Under the leadership of the Chairman of the Editorial Board Dr. Chu Van Lam and General Director Mr. Dao Quang Binh, the organization restructured while maintaining its mission. VET’s role expanded beyond traditional publishing to include high-profile forums, seminars, and dialogues on topics like economic scenarios, growth strategies, and sustainable development. These events, often livestreamed, became vital spaces for interaction among policymakers, experts, diplomats, and businesses.

The most dramatic recent transformation occurred in May 2024, when VET shifted from monthly to weekly publication - without additional staff. This change responded to demands for faster, more frequent analysis amid Vietnam’s deepening global integration.

This transition from a monthly to a weekly magazine was a major milestone, allowing VET to keep pace with readers’ demand for faster information updates in the new era. However, it also posed a difficult challenge for the Editorial Board: maintaining a high-level of intellectual content with analytical articles while meeting the rapid publication rhythm of a weekly newspaper.

The core solution implemented was a comprehensive, scientific, and optimized reorganization of the entire content production process. We created a clear editorial calendar that prioritizes time for in-depth analyses in the Cover Story section, while also allocating time for regular columns and data visualization features. In terms of personnel, the newsroom flexibly combines in-depth reporting from specialized desks with VET’s dedicated English-language writing team.

To suit the weekly format, we maintain intellectual depth through long-form articles while enhancing practicality and visual appeal by incorporating sidebars with expert opinions, charts, and illustrative graphs.

To balance VET’s quality - with in-depth, data-driven, balanced, and forward-looking analysis - while accelerating production weekly, articles now undergo multiple rigorous editing rounds, combining deep reporting with visual elements like charts and expert quotes. The focus remains on high-value content covering environmental, social, and governance (ESG) practices, free trade agreements, FDI flows, supply chains, and green transformation, to name just a few topics.

Thanks to this arrangement, we preserved VET’s distinctive in-depth analytical identity while publishing and distributing every Monday to best meet readers’ needs.

Central to this evolution is Askonomy, VET’s proprietary AI platform. Rather than replacing human expertise, it acts as an intelligent collaborator. It excels at context-aware translation of specialized economic content, fact-checking, data summarization, and structural suggestions. This has dramatically improved efficiency, especially for the increased weekly output.

Looking forward

The journey of more than 30 years of creativity and development at VET has merged with the joy of celebrating the 35th anniversary of Tap chi Kinh te Viet Nam. Looking forward, VET’s spirit will be maintained under three words: Specialized, Flexible, and Pioneering.

Specialized is the anchor of VET’s positioning. We have consistently maintained the identity of articles and research with high intellectual content, using official and reliable data as reference value for readers. Flexible is the ability to adapt quickly to all changes in the times, enabling us to transform powerfully from a monthly to a weekly publication, from print to digital, and from traditional to multi-platform. And Pioneering is the core spirit that allows VET to proudly lead the digital transformation of economic and external affairs journalism in Vietnam through PDF editions, the AI Askonomy application, and the creation of multi-layered interactive journalism products.

These three words reflect VET’s continuous journey of self-renewal. We never cease breaking through or creating, yet we have never strayed from our core values. We always uphold the mission and operating principles of Tap chi Kinh te Viet Nam: Authentic Perspectives - Positive Thinking - Practical Solutions.

Entering a new chapter, VET will continue to keep the flame of passion alive, carrying the mission of ceaseless innovation. VET is committed to maintaining the quality of VET’s content to serve our readers, accompany the business community, and make positive contributions to the sustainable development of the country in the new era.

Mr. John Harding, English Language Editor at VET since 2004, shared his thoughts on the magazine’s journey

You have edited thousands of articles over the course of 22 years. How has the “language of Vietnamese economics” evolved from the early days of “Doi Moi” to the current focus on digital transformation and green growth?

As Vietnam has secured greater stature on the international stage over the years, I think there has been a greater focus internally on the country’s external relations and “place in the world.” In the early days I think discussions largely centered around what was happening within Vietnam’s borders, though regional and international elements were certainly taken into account. Economics is a broad discipline that is constantly evolving, and with that comes new concepts and ideas that will naturally be reflected in the “language of Vietnamese economics” as the country keeps pace with local and global events.

I think VET also became able, on behalf of the business community, to more readily identify areas where policies and programs have perhaps not delivered what was intended. The government clearly wants to know what companies think about Vietnam’s business environment, and VET’s role in this exchange has grown over time.

You have witnessed the transition from paper printing to the era of AI and Askonomy. How do you view this technological shift?

From my very first days in Vietnam, I would hear colleagues and friends talk about the development of translation software. I would nod and comment about what a game-changer that would be, but my real opinion was “It will never happen.” No software could catch the nuance involved in translation.

But it did happen. The Asko Platform’s suite of features was unimaginable even a decade ago. Of course, I ask myself where that leaves me - an imperfect human being competing with the latest in technology. But I think that for most tasks that become automated or rely heavily on technology, there will always remain a place for the “human touch”. I can’t imagine, for example, a time when we could simply put a Vietnamese-language article through the translation software and then just accept what comes out. It will always need a person to read through it and confirm its accuracy.

I think the question of whether AI is a positive or negative will take years to answer. And “positive” or “negative” for who? But it has arrived, and now the task is to monitor its development and influence and make changes as appropriate. AI itself is also imperfect, and no doubt always will be to some extent. I don’t believe the robots will take over the world!

VET’s transition from a monthly to a weekly publication has increased the pressure of deadlines four-fold. How has the Asko Platform been your “secret weapon” in maintaining high-speed production without compromising the sophisticated English standards VET is known for?

It would not be possible to publish VET weekly without the Asko Platform. The Platform’s English translation makes it much easier for me to edit and finish an article. With 20 or more articles being published each week, and hence 80 or more a month, better English makes a huge difference in my job given the time limitations. The Platform really is the “secret weapon” that allows us to publish weekly.

THE EVOLUTION OF VET MEDIA:

Crafting a visual identity along VET’s journey

Thirty-five years ago, when the first issue of Thoi bao Kinh te Viet Nam - the parent organization of VET - was published, newspaper design was a painstaking craft reliant almost entirely upon human hands and limited tools. Today, the publication - now known as Tap chi Kinh te Viet Nam - has transformed into a sophisticated multi-platform media ecosystem encompassing print magazines, digital publications, video content, and major national economic forums.

At the heart of this evolution stands the VET Media team, who work behind the scenes shaping every page, publication, event, and digital experience. Their role has grown from simple layout to strategic brand-building. Those designers create the distinctive visual language that defines one of Vietnam’s leading economic magazines.

Mr. Vu Ngoc Minh and Mr. Vu Van Tuan joined the newsroom in 1995, when technology was rudimentary. “We printed content on tracing paper, manually pasted layouts, then exposed them to create printing plates,” they recalled. Even simple economic charts required hours in CorelDraw. Publications featured limited color, making design both an aesthetic and technical challenge to meet tight printing deadlines.

Over three decades, they witnessed profound changes: from a weekly to a daily newspaper, and in 2021 a shift to a specialized weekly magazine. Software evolved from basic tools to Photoshop, InDesign, Illustrator, and now AI. Yet they emphasized that the biggest shift is in mindset. “Previously, designers focused on clarity,” they agreed. “Today, we must make content more engaging, accessible, and immersive.” Technology saves time and expands creativity, but the human element remains irreplaceable.

Mr. Nguyen Thai Dung, who joined in 2008, represents the new generation. He took over designing VET in 2009. Designing for a global audience demanded higher standards of professionalism and the masterful use of white space, imagery, and information hierarchy, while preserving a Vietnamese identity. “International readers evaluate professionalism through visual details,” he said. “Design must feel modern yet authentically reflect Vietnam’s economic spirit.”

His most significant impact lies in the visual identity of major national economic forums on green growth, innovation, foreign investment, and macro-economic policy organized by VET. These events require comprehensive branding systems: invitations, websites, stage backdrops, videos, and social media assets.

The 35-year journey of Tap chi Kinh te Viet Nam and more than 30 years of VET reflects continuous innovation. While content is the soul of journalism, design serves as the vital bridge connecting that content to readers. VET Media now acts as the creative nucleus for the entire ecosystem - print, digital, multimedia, and events - establishing a unified yet distinctive visual standard.

-VET editorial board

A transformation for everyone’s benefit

Sat, 20 Jun 2026 10:00:00 GMT

Mr. Dao Quang Binh, General Director of Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy, reflects on the ideas, values, and innovations that shaped the publications’ journey from economic newspaper to AI-powered knowledge platform.

Over the past 35 years, what do you believe has given Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy its distinctive identity?

From the very beginning, long before anyone in the media industry was talking about data journalism, analytical journalism, or solutions journalism, we had already built our publication on those very foundations.

The founding team consisted of just three people: Editor-in-Chief Professor Dao Nguyen Cat, Dr. Chu Van Lam, who is now Chairman of the Editorial Board, and myself. Tap chi Kinh te Viet Nam, as it exists today, originated from “Thong tin Kinh te” (Economic Information Bulletin), and we were very clear from the outset that it had to be a publication grounded in economic data.

The publication was born out of the Vietnam Economic Association, with founders such as Professor Tran Phuong and Professor Cat, who were all respected economic researchers. The mission was simple yet ambitious: to provide reliable economic data for businesses and bring economic knowledge to readers. At that time, data was scarce and information difficult to obtain. Professor Cat would personally buy newspapers, cut out individual pieces of information, and build relationships with organizations that held economic data in order to gather information for publication.

What made us valuable, however, was not merely the data itself. Behind every figure and every piece of information lay economic knowledge, practical experience, and insights that were not stated explicitly but could be discerned by attentive readers. A business executive could find information useful for shaping corporate strategy. A policymaker could identify ideas relevant to public policy.

That has been our defining identity throughout our 35-year history: information must be accurate, data must be reliable, and analysis should be embedded within the data rather than imposed upon the reader.

I still remember Dr. Lam once jokingly saying: “My newspaper doesn’t teach anyone.” Of course, it was said humorously. What he meant was that the publication never tells people what to do, despite having been founded by economists and researchers.

After studying and training in France, I brought back a journalistic philosophy that I have shared with reporters throughout my career: when writing, do not lecture, do not judge, and do not rush to conclusions. Write in a way that takes readers as close as possible to the destination, then let go. They will find their own way to the conclusion. That, to me, is the mark of truly skillful journalism.

If the information and data are authentic and sufficiently rich, readers will never feel that they are being directed, yet they will arrive at their own understanding.

I pursued this approach because before joining Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy I spent more than a decade working in foreign affairs journalism. That experience exposed me to international audiences, made me accustomed to working with data, and, most importantly, shaped a clear belief: the essence of journalism lies in information, not commentary.

At the time, many journalists still approached reporting as a form of literary writing rather than journalism in the modern sense. As an editor, I often had to personally review and revise articles. Any subjective phrases such as “I think,” “I believe,” or “in my opinion” were removed. Passages driven by emotion or personal judgment were crossed out. Let the facts and data speak for themselves, and let readers draw their own conclusions.

That is why our identity, our journalistic DNA, has always been rooted in rich information, verified data, and the objectivity of its journalists.

If I had to choose a single phrase that best captures that identity, it would still be Dr. Lam’s joke: “My newspaper doesn’t teach anyone.” We do not tell people what to think. We do not pass judgment.

Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy’s guiding principle is “Authentic Perspectives - Positive Thinking - Practical Solutions”. Amid shrinking media revenues, social media competition, and the rise of click-driven content, how has the organization remained true to that mission?

The challenges are certainly real, but we have always believed in and remained committed to those principles. To explain why, I often recall an incident that resulted in our publication being fined; an experience I have never forgotten.

The publication was penalized for reporting information related to foreign exchange management. The information itself was not confidential; another financial magazine had published it about two weeks earlier. However, when we republished the story, the market reaction was immediate and severe. Many people rushed to withdraw their money, and the newsroom was forced to publish a correction in the following issue.

The incident taught us an important lesson: a publication can have a very real impact on economic activity and on businesses. Information that is completely accurate can still destroy a company or trigger highly negative economic consequences. Accuracy alone is not enough.

From that moment on, we have always asked ourselves before publishing anything: how will this information affect businesses and society? There may be media models built around attracting clicks or attacking companies, but that is not how we choose to operate.

For many years, we have adhered to a simple principle: information must be useful for businesses, useful for policymakers, and useful for readers. We do not pursue sensationalism, nor do we use information as a tool for pressure or crowd manipulation.

Whenever information is provided by a company, the first step is verification. The next is determining how it should be presented, how much information should be disclosed, and what context should accompany it. The ultimate goal is not to generate the greatest possible impact but to reflect reality as accurately as possible.

That, in my view, is what distinguishes economic journalism. A piece of information may be highly compelling, but before publishing it, journalists must ask themselves a simple question: what effect will this have on the people, businesses, and economic decisions on the other side of the page?

While many news organizations struggle with shrinking advertising income, your organization believes trust comes first and revenue follows. What underpins that approach?

I would say that our philosophy goes beyond the conventional concept of a “win-win” relationship. Our approach is “all win” - meaning that everyone benefits.

In the traditional sense, a win-win outcome involves only the two parties directly engaged in a transaction or relationship. But that is not enough. A truly sustainable model must create value for the entire ecosystem: businesses, customers, partners, regulators, and even those who are not directly involved, as well as society at large.

I believe this is also how an economic media organization should operate and grow. When a publication genuinely accompanies businesses - when companies trust that the information it provides can help them identify new opportunities, expand markets, and increase revenue, or when sensitive information is handled responsibly to avoid unnecessary negative consequences - that trust begins to take shape. And once trust is established, people choose to stay with you for the long term.

That is why the most important question for us has never been how many page views an article receives. What matters far more is who those readers are. Are they decision-makers? Do they have the ability to influence businesses, markets, or the broader economy?

If a media organization can solve the challenge of influence quality rather than simply chasing audience volume, it can create genuine value for the business community. Once that value is recognized, businesses will proactively seek partnerships and long-term collaboration.

This is also why many enterprises, government ministries, agencies, and local authorities choose to work with us when organizing forums, conferences, and policy dialogues. What they are looking for is not merely a media channel but a trusted partner with credibility, connectivity, and the ability to amplify positive impact.

At the same time, we remain firmly committed to our journalistic role. A publication can only become a useful partner for businesses if it maintains its objectivity, accuracy, and social responsibility. That is the most important boundary.

I have always believed that journalism should be a trusted companion to businesses. That partnership must be built on truth, a constructive spirit, and a commitment to creating positive value for society. Only when all stakeholders benefit can development truly be sustainable.

Let’s turn to an issue attracting enormous attention not only within journalism but across virtually every sector today: AI. In your view, how will AI affect journalism and the way reporters work?

First, it is important to acknowledge that AI is having a profound impact on journalism and the media industry. That should come as no surprise; it is no different from what is happening across other sectors and professions. However, I have always held a very clear view: AI is a journalist’s arm, not a journalist’s brain.

What gives a reporter value is not the ability to type quickly, translate efficiently, or process large amounts of data. AI is already performing those tasks faster and, in many cases, better than humans. The question, then, is why we should continue spending time on tasks that machines can perform more effectively.

Mr. Dao Quang Binh (2nd from right), General Director of Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy, introduces Asko Meet to former Minister of Science and Technology Nguyen Quan (3rd from right) and other delegates attending the Vietnam - Asia DX Summit 2026. - (Photo: Vietnam Economic Times)

What AI cannot replace is human thinking. Journalists must never allow AI to become their brain. AI is a tool. Understanding an event, analyzing its underlying causes, determining what is right or wrong, identifying where responsibility lies, and exploring possible solutions - those remain fundamentally human tasks.

I believe the role of journalists is changing dramatically in the AI era. Journalists are no longer simply gatherers and transmitters of information. In economic journalism especially, reporters increasingly need to think like researchers, specialists, or even social scientists.

When a company claims its product is the best, a journalist must ask: best in what way? Compared to whom? What evidence supports that claim?

When a policy is described as groundbreaking, a journalist must continue asking questions: What will its actual impact be? Who benefits? Who may be adversely affected?

When a company asserts that it is creating value for society, journalists must have the expertise to verify whether that value genuinely exists or whether it is simply a communications message. That is critical thinking, the fundamental distinction between human beings and AI.

Many people assume that AI will make journalism easier. I believe the opposite is true. The work may become less labor-intensive, but it will become significantly more demanding.

When AI can process data, synthesize information, and support content production in a matter of seconds, the value of journalists will no longer lie in possessing information. It will lie in their ability to understand data, interpret it, and generate new insights from it.

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

That requires journalists to study more, read more, and continuously expand their knowledge. The goal is not to feed data into AI, but to feed knowledge into their own minds. Ultimately, there is one principle that journalists should always remember: AI must serve people, not the other way around.

Technology may become increasingly intelligent, but the qualities that define journalism will continue to be human judgment, professional integrity, and critical thinking. Those remain the final frontier that AI cannot replace.

Based on that philosophy, how did your organization approach AI? Could you share the story behind its adoption of AI and the creation of the Askonomy ecosystem, which seeks to transform data, information, and knowledge into value for the business community?

The journey of adopting AI, and indeed the origins of the Askonomy ecosystem, grew out of what has always been our greatest concern. As I mentioned earlier, we have quietly defined itself from the very beginning as a publication built on economic data. But the question that has occupied my mind for many years has been how to make the value accumulated by our publications over decades serve the business community more effectively.

That question existed long before AI became the global topic it is today.

We possesses a vast repository of economic data, information, and knowledge accumulated over 35 years. Yet I constantly asked myself whether we were truly extracting the full value of those assets. We have millions of articles, millions of data points, thousands of policy dialogues, and decades of observations of Vietnam’s economy. But if all of that simply remains stored in archives, it is nothing more than dormant data.

My concern was how to transform that repository into living data, how to ensure that an entrepreneur, anywhere and at any time, could access the information, insights, or economic data they need in the fastest, most convenient, and most reliable way possible.

Looking back, that journey unfolded through several stages.

The first step was building the technology infrastructure. We explored numerous CMS solutions, from those offered by major technology corporations to specialized platforms designed for media organizations. Eventually, we found the right partner in Hemera, which helped us build a platform capable of managing and unlocking the value of our enormous data assets.

The next step was the transition to digital journalism, enabling information to reach readers in real time rather than according to the publishing cycle of a print newspaper.

Then AI arrived. What was particularly exciting was that it seemed to offer the solution to a challenge we had been pursuing for years: how to allow data to interact directly with users. That realization led to the creation of Askonomy.

Many people see Askonomy as an AI product. To me, it is first and foremost a knowledge platform built upon the data, content, and experience that we have accumulated over the past 35 years. AI is simply the technology that activates and unlocks that knowledge.

I still remember how quickly the decision to invest in the project was made. The moment the opportunity emerged, I immediately recognized it as the missing piece of a puzzle I had been contemplating for years. When you have wrestled with a problem long enough, you often recognize the solution the moment it appears. Askonomy was created to help people access knowledge more quickly, make better decisions, and extract greater value from everything we have built over decades.

Throughout that journey, the same philosophy has guided us: everyone should benefit.

Technology partners have the opportunity to apply and expand their capabilities. We create new value from its data and knowledge assets. Businesses gain access to a trusted tool for economic information and insights. And society benefits from an open, useful, and increasingly intelligent knowledge ecosystem. That is how we view AI - not as an end in itself but as a tool for transforming data, information, and knowledge into meaningful value for businesses and society.

It seems that behind every major turning point in the organization’s history lies a long period of reflection and preparation. If you had to identify the source of the publication’s success over the past 35 years, what would you call it?

If I had to summarize our 35-year journey in just a few words, I would say: innovation for development. Development is not a destination. It is a continuous process of innovation and creativity. The day you stop creating is the day you begin to fall behind.

I have always believed that success does not begin with opportunity. Success begins with a sense of purpose and persistent determination. It begins with being deeply concerned about a problem. It begins with pursuing questions that have yet to be answered. It begins with a desire to do something better for businesses, for society, and for the people who need the value you can create.

Many people describe opportunity as a matter of luck. I see it differently. Opportunity appears only to those who have been preparing for it for a very long time. When you think deeply enough about a challenge and remain committed to finding a solution, there comes a moment when the opportunity reveals itself, and you recognize it instantly.

Looking back, many of our most important decisions originated from exactly that kind of determination. Not because we were smarter than anyone else, but because we never stopped asking questions and never stopped searching for answers.

And after everything we have experienced, I have become even more convinced of one thing: success built solely on self-interest is rarely sustainable. If your only objective is profit, particularly at the expense of others, you will eventually reach a limit.

But when you create value for others - when businesses benefit, customers benefit, partners benefit, and society benefits - that becomes the foundation for lasting development.

I call it the philosophy of “all win”. It is also the philosophy that we have pursued throughout its 35-year journey.

At this moment, what message would you like to share with the next generation who will continue writing the publication’s story in the AI era?

If there is one message I would like to leave behind from the past 35 years and for the years ahead, it is this:

To our reporters, editors, and leadership team, always hold on to a question that matters deeply to you. The challenges that concern you most today may become the source of your greatest achievement tomorrow.

When I look back on the past 35 years, I do not think the most valuable thing is how far we have come. What matters most is that even today, we still have questions that need answers, challenges that demand solutions, and aspirations to create new value for the community.

Because as long as there is curiosity and determination, there will be innovation. And as long as there is innovation, there will be progress.

VET-

35-year journey of an economic magazine

Sat, 20 Jun 2026 04:00:00 GMT

Dr. Chu Van Lam, Chairman of the Editorial Board at Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy , talks about its 35-year journey as a trusted bridge between policymakers, businesses, and society.

Looking back over the 35-year journey of Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy, what do you consider to be the key milestones that have shaped its identity and position today?

Over its 35 years of development, Tap chi Kinh te Viet Nam (with publications including Tap chi Kinh te Viet Nam, Vietnam Economic Times, and VnEconomy), formerly Thoi bao Kinh te Viet Nam, has achieved a number of significant milestones that have helped shape the strong identity and standing it enjoys today.

Among its most notable achievements has been the launch and sustained development of influential forums and programs. One example is the Vietnam Connect Forum, an annual event initiated by Tap chi Kinh te Viet Nam in 2021 in cooperation with the Ministry of Foreign Affairs. The Forum acts as a bridge between the government, local authorities, and the business community, both foreign-invested enterprises (FIEs) and domestic enterprises, to discuss economic issues, promote green growth, and advance sustainable development.

Another landmark initiative is the Vietnam Excellent Brands program, organized annually by Tap chi Kinh te Viet Nam since 2003. The program has recognized hundreds of Vietnamese enterprises for outstanding achievements in business performance, innovation, digital transformation, green transition, and contributions to society, thereby supporting the country’s broader economic development.

Similarly, the Golden Dragon Awards, which have been held for the past 25 years, have not only honored FIEs but also created opportunities for dialogue and networking between domestic and international business communities and policymakers.

Another key milestone is the Vietnam Economic Scenario Forum (VESF), launched by the organization in 2008. Over the past 16 years, it has evolved into an official, independent, credible, and practical platform that has consistently accompanied Vietnam’s economic development. The Cool Product Awards program, initiated in 2006, has likewise represented a long-term effort to foster stronger connections between manufacturers and consumers.

In the digital era, our pioneering spirit is reflected in its bold digital transformation strategy and adoption of AI. The publication introduced a new digital interface and an AI-powered newsroom management platform, AI CMS, integrating solutions such as automated translation, article summarization, automated podcasts, and, notably, the Askonomy AI chatbot.

We are proud to be among the first Vietnamese media organizations to develop a comprehensive, customized AI ecosystem designed to better serve readers. The launch of the Marcom-AI Platform and the Data and Artificial Intelligence Alliance (D.A Alliance) further underscores our commitment to enhancing content quality and expanding our influence.

These efforts, combined with our editorial philosophy of “Authentic Perspectives - Positive Thinking - Practical Solutions” and close collaboration with research institutions such as the University of Economics and Business under the Vietnam National University, Hanoi, have enabled us to continually innovate while preserving its core values and reinforcing its position as one of Vietnam’s leading economic publications.

From its beginnings as an economic publication launched during Vietnam’s early reform period, how has the organization contributed to and accompanied the country’s economic development, particularly in its role as a bridge between the Party, the State, businesses, entrepreneurs, and the public over the past three decades?

For more than three decades, we have remained committed to its mission of reflecting and accompanying the nation’s economic development, particularly through its role as an important bridge connecting the Party, the State, businesses, entrepreneurs, and the public.

It has always recognized the vital role of journalism and communications in promoting growth and sustainable development, from the enterprise level to the broader national economy.

This bridging role has been demonstrated through a variety of initiatives. First, we have created effective dialogue platforms between the business community, both domestic enterprises and FIEs, and policymakers and regulators at both the central and local levels. The VESF stands as a vivid example. Through years of persistence and dedication, the Forum has accompanied Vietnam’s economy through periods of both challenge and achievement, becoming an official, independent, credible, and valuable source of information and policy consultation. It has contributed practical recommendations and high-quality solutions based on official, multidimensional information and innovative perspectives.

Second, the magazine has focused on producing high-quality, in-depth journalism closely aligned with the realities facing businesses. It listens to concerns and policy barriers affecting enterprise development and uses its reporting to propose recommendations and solutions aimed at addressing shortcomings in both macro-economic policymaking and day-to-day business operations. Many reports and recommendations generated through our thematic forums and discussions have been submitted to the Prime Minister and relevant ministries, helping address urgent issues across various sectors of the economy.

Finally, guided by the principle of “standing alongside businesses,” we haveffectively conveyed the concerns and aspirations of enterprises to senior leaders within the Party, State, and government. At the same time, it has provided businesses and the public with timely, accurate, and comprehensive information on Party and State policies and directions, thereby contributing to the broader mission of national economic development.

In your view, what is the greatest challenge facing economic journalism today?

In an era increasingly dominated by digital technology, social media, and AI, economic journalism faces unprecedented challenges. The greatest challenge lies in maintaining accuracy, depth, and professional integrity within a fast-moving and increasingly complex information environment.

First, the pressure to process and publish information quickly continues to intensify. Readers expect immediate updates, yet they also demand in-depth reporting that explains the meaning behind economic data and its real-world implications for markets and society. This creates a dangerous trap: if journalists become less rigorous in verifying information, even a single unsupported assessment or one-sided perspective can generate unrealistic expectations or unnecessary concerns, potentially affecting markets and public sentiment.

Second, sourcing information and pursuing the truth have become more difficult than ever. In the economics sphere, data and information available to journalists may be carefully framed to serve particular interests. Obtaining positive information from business leaders is often straightforward; uncovering and verifying negative developments is far more challenging. This reality requires journalists to possess strong professional expertise, a deep understanding of economic and market dynamics, and a healthy degree of skepticism, to avoid being drawn into subjective judgments or one-sided narratives.

Third, profound changes in audience behavior, including growing demand for diverse, personalized, and interactive content, have made digital transformation an existential challenge for media organizations. Newsrooms must continually innovate to meet these evolving expectations while ensuring that technology does not overshadow the profession’s fundamental values.

Ultimately, the greatest challenge is ensuring that economic journalism remains agile and technologically advanced in the digital age while preserving the rigor, fairness, accuracy, and analytical depth that define credible journalism. Economic reporters must navigate an increasingly chaotic flow of information without becoming trapped by the distortions and pitfalls hidden within a complex maze of data.

Dr. Chu Van Lam (front row, middle), Chairman of the Editorial Board at Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy, at an event hosted by his magazine. (Photo: Vietnam Economic Times)

Based on your own experience, what enables an economic news organization to preserve its core values, credibility, and professional integrity in an increasingly competitive information environment?

I believe the most important factor is professional integrity and an unwavering commitment to the publication’s mission and principles.

Today’s information environment is characterized by the rapid spread of news and unprecedented competition from social media and digital platforms. Yet it is precisely in such circumstances that mainstream journalism must remain firmly anchored to its core principles: accuracy, objectivity, responsibility, and a commitment to serving the broader interests of the economy and society.

Economic journalism is not simply about reporting on businesses or markets. Behind every economic policy, market fluctuation, or technological trend are direct implications for society, the investment climate, and the confidence of businesses and citizens. As a result, economic journalists must possess not only professional expertise and critical thinking skills but also a high degree of care and discipline in handling information.

Another essential factor is the ability to maintain editorial independence. In today’s competitive environment, media organizations face pressure from every direction, including the race for speed, audience traffic, and financial sustainability. However, if a publication sacrifices objectivity for convenience or pursues sensationalism at the expense of credibility, trust can be lost very quickly, and is often extremely difficult to regain.

How do you view the role, social responsibility, and influence of economic journalism on the business community and the broader economy?

I strongly believe that the role, social responsibility, and influence of economic journalism on the business community and the broader economy are both significant and far-reaching. We are proud to serve not only as a media organization but also as a platform for dialogue and a trusted bridge connecting the government, businesses, and experts, helping to foster and advance national development.

First, economic journalism plays a vital role in promoting growth and sustainable development. Through the analysis and evaluation of policies, market trends, and business activities, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy provides comprehensive insights that help economic stakeholders make informed decisions. This reflects the fundamental value of journalism and communications in supporting sustainable growth at the enterprise, sectoral, and national levels.

Second, the magazine carries an important social responsibility as an official, independent, credible, and practical source of information. Forums such as the VESF have become venues for policymakers, regulators, domestic and international economists, and business leaders to exchange ideas and discuss pressing issues. We listen closely to the challenges and policy barriers faced by businesses and convey those concerns to senior leaders within the Party, the State, and the government.

Third, the influence of economic journalism is reflected in its ability to create and spread value. By developing high-quality, in-depth journalism closely connected to real-world challenges, we do more than report events, we help shape public understanding and build consensus around important economic issues. When recommendations and solutions generated through our thematic forums are received by the government and lead to action by ministries and agencies, that represents the clearest evidence of journalism’s practical impact. It demonstrates that the magazine is not merely a provider of information but also a trusted partner working alongside institutions and businesses to drive development and create new value for society.

On the occasion of the 101st Vietnam Revolutionary Press Day and the 35th anniversary of Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy, what do you believe are the key factors that ensure the stable and sustainable development of a media organization?

In my view, three fundamental factors are essential to ensuring the stable and sustainable development of a media organization in the new era: people, content, and technology.

First, people - the journalists themselves. They are the organization’s most valuable asset. A team that is politically grounded, professionally capable, and ethically sound provides the foundation for overcoming any challenge. Meticulousness, emotional discipline, and the ability to build arguments based on independent data are enduring professional values that must never be lost. These principles should be continuously nurtured and strengthened in every generation of reporters and editors.

At the same time, media organizations must adapt to changing circumstances and emerging demands, particularly the need to provide information that contributes to national economic development in a new era. In my opinion, leadership plays a critical role in fostering consensus, unity, and cohesion within the organization. Only by creating an environment that inspires creativity, commitment, and collective purpose among reporters, editors, and staff can a media organization secure sustainable long-term growth.

Second, content quality and innovation. In an age of information overload, only high-quality, in-depth, and genuinely useful content can retain audiences and build lasting credibility. We strive every day to improve our products so they are more insightful, constructive, effective, and modern. Content must remain closely connected to business realities, listening to the challenges and policy obstacles faced by enterprises while offering practical recommendations and solutions. At the same time, journalism must continue to fulfill its role as a bridge, conveying the concerns and aspirations of businesses to the government while providing citizens with timely and accurate information about the Party’s and State’s policies and directions.

Third, the ability to adapt to and master technology. Digital transformation is no longer an option - it is an inexorable path forward. Media organizations must build professional digital platforms, diversify content formats, and embrace the most advanced technologies available, particularly AI. Developing a robust digital ecosystem, operating a modern digital newsroom, and distributing content across digital platforms are essential to making information more accessible to audiences. Technology serves as a powerful enabler, helping improve content quality, optimize operations, expand influence, and create new value for society.

The balanced and coordinated development of these three pillars - people, content, and technology - will be the key to ensuring that media organizations remain stable, sustainable, and capable of contributing to the country’s socio-economic development in the new era.

In the next stage of development, what goals do you envision for Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy as it seeks to maintain its position as one of Vietnam’s leading economic media organizations?

We will continue serving as an effective platform connecting the government, businesses, and experts, while sharing our technological achievements with the wider journalism and business communities to help them optimize their operations in this new era of the nation’s rise.”

Dr. Chu Van Lam, Chairman of the Editorial Board at Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy

In this new phase of development, Tap chi Kinh te Viet Nam / Vietnam Economic Times / VnEconomy will pursue ambitious goals and aspirations aimed at strengthening its position as one of Vietnam’s foremost economic media organizations.

Our primary objective is to become Vietnam’s leading economic newsroom, not only in scale but also in quality, depth, and influence. To achieve this, we will continue accelerating comprehensive digital transformation while building and expanding a strong digital ecosystem supported by a modern digital newsroom. We aspire to be a pioneering Vietnamese media organization with a rich and highly-customized AI ecosystem that serves readers in the most effective way possible, delivering fast, reliable information on Vietnam’s economy to audiences around the world.

We also seek to contribute to the country’s broader development and the advancement of the business community. This means continuously innovating and evolving to better meet audience needs while supporting the rapid, strong, and sustainable growth of Vietnam’s economy. We will continue serving as an effective platform connecting the government, businesses, and experts, while sharing our technological achievements with the wider journalism and business communities to help them optimize their operations in this new era of the nation’s rise.

Our guiding principle - “Authentic Perspectives - Positive Thinking - Practical Solutions” - will remain the foundation of everything we do.

What message would you like to share with economic journalists?

To economic journalists, especially younger reporters and editors, I would like to share several thoughts.

First, embrace innovation while preserving traditional values. The digital era and AI offer powerful new tools, but they should never replace the core principles of journalism: meticulous reporting, emotional restraint, and evidence-based analysis grounded in independently verified data. Adopt the most modern reporting methods available, but always maintain integrity and professional rigor.

Second, continuously strengthen your expertise and personal resilience. Economics and finance are highly-complex fields that require deep knowledge and understanding. The journey from recording facts to becoming a journalist capable of delivering insightful analysis and critical thinking is demanding, but it is through that journey that true professional growth occurs. Learn to maintain a healthy balance between work and personal life, because a calm mind and clear judgment are essential conditions for producing high-quality journalism.

Finally, never lose your sense of purpose and commitment to creating value. Economic journalism is not merely a profession - it is a mission. Every article and every analysis have the potential to influence policy, shape markets, and contribute to society. Take pride in that responsibility and continue striving to become outstanding journalists who help advance the prosperity and development of the nation.

VET-

Continued resilience of Vietnam's economy

Fri, 19 Jun 2026 09:30:00 GMT

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

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

Industrial production

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

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

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

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

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

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

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

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

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

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

Business formation rises sharply

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

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

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

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

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

Trade deficit widens

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

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

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

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

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

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

FDI inflows

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

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

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

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

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

Domestic consumption

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

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

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

Rising inflation

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

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

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

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

Emerging constraints

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

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

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

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

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

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

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

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

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

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

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

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

VET-Dr. Nguyen Bich Lam(*)

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

Asko Meet in action

Thu, 18 Jun 2026 10:30:00 GMT

During the Vietnam - Asia DX Summit 2026, Asko Meet, an AI-powered smart meeting and conference platform within Vietnam Economic Times’ Askonomy ecosystem, provided real-time speech-to-text transcription and multilingual live interpretation for participants. The solution is powered by a core AI engine developed through a collaborative endeavor between Vietnam Economic Times and technology partner Actable AI.

The platform attracted significant interest from both domestic and international delegates thanks to its ability to display content and translations in real time, making multilingual discussions easier to follow. Instead of relying entirely on traditional interpretation booths, attendees could access continuously updated bilingual translations on large event screens or personal devices.

Mr. Alexey Burov, Business Development Manager at Haulmont Technology, a UK-based technology group, said he greatly valued the Asko Meet experience, particularly as a non-Vietnamese speaker. The system enabled international delegates to follow discussions and capture speakers’ exchanges almost in real time. By scanning a QR code to access Asko Meet on his smartphone, Mr. Burov followed the full program through live translations, allowing him to participate and interact seamlessly with speakers and attendees.

Having previously used numerous AI translation tools worldwide, including products from major technology companies, Mr. Burov said the Vietnamese-developed solution offered a more natural and convenient experience. “Asko Meet delivers content quickly, maintains context well, and provides a comfortable user experience,” he added.

Meanwhile, Ms. Vo Thi Trung Trinh, Director of the Ho Chi Minh City Digital Transformation Center, said Asko Meet benefits from being a Vietnamese AI solution developed by teams with a strong understanding of the local language, culture, and user needs. “I observed Vietnamese content being translated into English in real time directly on screen,” she explained. “Both the speed and quality were quite good, with natural language relatively well preserved. In my view, this is a necessary application that can improve the quality of conferences and meetings today.” She added that rising demand for AI applications in meetings, operations, and corporate governance presents strong growth potential for Vietnamese technology companies.

Mr. S. Chinpau Ngaihte, Counsellor (Eco, Com Development Partnership) at the Embassy of India in Vietnam, also praised the platform’s role in multilingual conference sessions, saying it made it easier for participants to follow discussions and quickly understand speakers’ key messages.

At the Summit’s technology exhibition area, the Askonomy ecosystem and Asko Meet platform attracted strong interest from technology companies and international organizations.

Beyond translation and meeting documentation, data security and sovereignty emerged as major concerns among experts discussing enterprise AI deployment. Ms. Trinh said AI adoption in operations has become an inexorable trend, supporting document summarization, translation, meeting transcription, and data storage. However, she stressed that maintaining control over and protection of data remains the most important consideration.

Mr. Phung Viet Thang, Country Manager of Intel Vietnam, was of a similar view, noting that the value of AI meeting platforms lies not only in automated translation but also in how conversational data is collected, managed, and used. Ensuring secure internal operations and data protection, he said, will remain a critical challenge for AI developers.

For this reason, Asko Meet was developed with a “security in mind” approach, giving enterprises full control over their data. The platform supports flexible deployment options, including on-premises infrastructure, private cloud, and public cloud environments.

Organizations can choose their own data retention policies, ranging from no post-meeting storage to controlled retention based on timelines and data types. All data is encrypted during transmission and storage, while enterprises may also manage their own encryption keys.

Customer data is not used to retrain AI models without permission. The platform complies with international standards such as ISO 27001 and GDPR, meeting the security requirements of enterprises and institutions, particularly those handling sensitive data.

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For tangible outcomes from science and technology

Thu, 18 Jun 2026 04:20:24 GMT

A recent tech summit looked at the increasing role of science and technology, innovation, and digital transformation within Vietnam’s new development model.

The Vietnam Software and IT Services Association (VINASA) hosted the Vietnam - Asia DX Summit 2026 in Hanoi on May 27-28, with the theme “Powering New Sources for Double-Digit Growth”, bringing together thousands of delegates, including government leaders, ministries, local authorities, CEOs, CIOs, and CTOs of major enterprises, AI and technology experts, and leading Vietnamese and international technology corporations.

Opening the Summit, Mr. Ngo Dien Hy, Vice Chairman of VINASA and Deputy CEO of the Vietnam Posts and Telecommunications Group (VNPT), said Vietnam is entering a new phase of development, targeting double-digit economic growth in the 2026-2030 period. This, he noted, is not only about growth rates but also about transforming the country’s development model. In that context, science and technology, innovation, and digital transformation are becoming the most important new growth drivers.

Proud strides forward

Mr. Hy stressed that Vietnam’s digital technology community must be capable of shaping and leading strategic frontiers of the future, including AI, the low-altitude economy, robotics, and quantum technologies - emerging fields expected to generate major “technology surpluses” and shape Vietnam’s standing in global supply chains.

He further noted that Vietnamese digital technology firms have already taken notable steps forward. “We have demonstrated the ability to fully master our application, digital transaction, and digital infrastructure layers,” he believes. “We have moved beyond passive technology adoption toward mastering core technologies under the ‘Made in Vietnam’ strategy, from AI and cloud infrastructure to localized large language models, automated agent systems, full-process digital public services, and land resource data integration in key localities.”

However, he also warned that as businesses enter a new acceleration phase, they must confront mounting challenges, including the limits of traditional labor-driven growth, growing pressure on physical infrastructure and clean energy, and legal gaps for deep tech and emerging technologies.

Mr. Dao Quang Binh (L), General Director, and Managing Editor of Vietnam Economic Times /VnEconomy, is sharing with Mr. Le Hong Quang, General Director of the MISA Group, about the made-in-Vietnam AI-powered solution Askonomy.- (Photo: Viet Dung)

Deputy Minister of Science and Technology Bui Hoang Phuong said 2025 marked a major breakthrough in institutional reform under the guiding principle that “institutions must lead the way.” Vietnam, he noted, has reviewed, amended, and supplemented nearly its entire legal framework for science and technology, innovation, and digital transformation.

“For the first time, we now have the Law on Digital Transformation, the Law on Digital Technology Industry, the Law on AI, and the Law on Data, together with implementation guidelines that are gradually creating a synchronized legal framework for a new development space,” he continued. “Vietnam is now among the few countries globally to establish a relatively comprehensive legal framework for these sectors.”

He added that the priority for 2026 is to translate these institutional foundations into tangible outcomes. Policies on digital transformation, he said, must deliver practical benefits for citizens and businesses.

To achieve this, the Ministry of Science and Technology is calling on ministries, sectors, and especially digital technology enterprises to proactively identify the daily challenges faced by citizens, businesses, and public agencies at both the central and local levels, rather than waiting for problems to be formally proposed.

Businesses, he added, should actively propose breakthrough solutions, models, and approaches for applying digital technologies to practical challenges while also recommending adjustments to procedures and regulations to enable wider technology adoption. He emphasized that implementation should focus on solving concrete and practical problems first. Once proven effective, however, successful models should be scaled up quickly to accelerate digital transformation across society.

Toward interoperable data

Local leaders reaffirmed that science, technology, innovation, and digital transformation are emerging as key growth drivers in Vietnam’s new development phase. However, many localities continue to face difficulties, with the digital economy’s contribution to gross regional domestic product (GRDP) still below expectations, especially in localities lacking strong technology ecosystems, such as Hue in the central region and south-central Khanh Hoa province. In response, local governments are developing dedicated policies to support domestic technology firms while investing in shared digital infrastructure and platforms to improve the efficiency of the broader digital ecosystem.

We have demonstrated the ability to fully master our application, digital transaction, and digital infrastructure layers.

Mr. Ngo Dien Hy, Vice Chairman of VINASA and Deputy CEO of the Vietnam Posts and Telecommunications Group (VNPT)

Mr. Nguyen Thanh Ha, Vice Chairman of the Khanh Hoa Provincial People’s Committee, said the Provincial People’s Council is expected to issue a resolution in the second quarter of this year to implement provisions of the new Law on Science, Technology and Innovation. Support measures will include assistance for establishing technology firms and improving access to financing through specialized funds.

The province is also working to establish a Science and Technology Fund and a venture capital fund to support the growth of local technology businesses. At the same time, Khanh Hoa is partnering with major institutions, including the Vietnam National University Ho Chi Minh City and the Ho Chi Minh City University of Economics, to help local businesses adopt digital transformation, improve productivity, and strengthen resilience.

Meanwhile, Mr. Nguyen Duong Anh, Deputy Director of the Hue Department of Science and Technology, said many technology infrastructure systems built years ago are becoming outdated and overloaded amid the demands of digital transformation and AI. The rapid rise of AI, he noted, is driving significantly greater demand for data, processing capacity, and governance, making infrastructure upgrades increasingly urgent despite limited investment resources.

Acknowledging the infrastructure and data challenges facing both businesses and localities, Mr. Hoang Huu Hanh, Deputy Director General of the National Authority of Digital Transformation at the Ministry of Science and Technology, said the Ministry has been tasked with reviewing and upgrading the national shared digital platform system.

The goal, he said, is a system that requires one-time investment but can be used consistently from the central to local levels. Functions already developed centrally should not need to be duplicated by local governments, while all platforms must meet unified technical standards and ensure interoperability with national databases.

After two days of discussions spanning institutions, infrastructure, data, energy, and AI, one message consistently emerged from the Summit: science and technology, innovation, and digital transformation are no longer supporting tools but core growth drivers for the economy. In the next development phase, digital transformation must move beyond isolated digitization efforts toward data-driven operations, interoperable data systems, and nationally-shared digital platforms. Cooperation between government, technology firms, and local authorities, delegates said, will determine how quickly Vietnam can achieve new breakthroughs in the decades ahead.

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

Vietnam-UK bilateral trade on the rise

Wed, 17 Jun 2026 04:00:00 GMT

Bilateral trade between Vietnam and the UK has been rising handily in recent years on the back of new agreements and a stronger partnership.

Trade between Vietnam and the UK continued to grow strongly in 2025, supported by tariff preferences under the UK-Vietnam Free Trade Agreement (UKVFTA), rising demand for Vietnamese goods, and broader supply chain shifts. The latest trade and investment factsheet released by the UK Department for Business and Trade on May 14 puts total two-way trade in goods and services at £10.5 billion ($13.5 billion), up 26.5 per cent against 2024. UK exports to Vietnam amounted to £1.8 billion ($2.3 billion), while Vietnam’s exports to the UK climbed to £8.7 billion ($11.2 billion).

The factsheet also showed notable shifts in trade composition. Goods continued to dominate bilateral trade, accounting for 65.6 per cent of UK exports to Vietnam and 94.8 per cent of Vietnam’s exports to the UK, with the latter rising particularly strongly in electronics and manufacturing-related products, including telecoms and sound equipment, office machinery, footwear, and clothing.

Yet officials and trade experts believe Vietnam maintaining its momentum in the UK market will increasingly depend not on low-cost exports but on whether Vietnamese businesses can meet stricter standards, strengthen traceability, and build their long-term competitiveness.

Changing dynamics

The release of the UK figures comes as Vietnamese authorities seek to deepen commercial engagement with the market. At the “Opportunities and Challenges for Market Development in the UK” seminar, held recently in Hanoi, officials emphasized that while bilateral trade still has substantial room for growth, the way Vietnamese firms approach the UK market will need to evolve.

Speaking at the seminar, Mr. Le Hoang Tai, Deputy Director of the Trade Promotion Agency under the Ministry of Industry and Trade, said Vietnam-UK economic and trade relations continue to develop positively on the foundation of the two countries’ Comprehensive Strategic Partnership.

According to Vietnam Customs data cited at the seminar, bilateral trade stood at approximately $9.38 billion in 2025, up 11.3 per cent compared to 2024. Of this , Vietnam’s exports to the UK stood at around $8.39 billion, while imports from the UK reached $991 million. In the first quarter of 2026, two-way trade reached approximately $2.36 billion, suggesting continued stability.

“The trade structure between the two countries remains highly complementary,” Mr. Tai said, pointing to Vietnam’s key export items such as garments, footwear, electronic components, and agricultural and seafood products, while imports from the UK are mainly pharmaceuticals and materials serving domestic production.

He stressed that the UKVFTA continues to serve as an important platform helping Vietnamese goods improve competitiveness in the UK through tariff preferences and trade facilitation. However, businesses can no longer rely on conventional export approaches.

According to Mr. Vu Viet Thanh, Senior Specialist in charge of the UK market at the Department of Foreign Market Development under the Ministry of Industry and Trade, the UK has been reshaping its role in international trade, supply chains, the digital economy, financial services, and green development in the years following Brexit and the Covid-19 pandemic.

He described the UK as a large market with strong purchasing power and deep integration into the global economy. “The UK is not a high-growth market, but it is a market with large scale, strong purchasing power, and strong financial capacity,” Mr. Thanh said. “It is not only an import market for consumer goods, but also a center for services, finance, standards, technology, and distribution.”

This, he said, means Vietnamese businesses should view entry into the UK market as “not only a matter of selling products, but also of meeting standards, building stable supply capabilities, and increasing product value.”

Mr. Thanh noted that the UK market effectively contains two parallel layers of demand. On one side, the country remains a highly industrialized economy with substantial demand for machinery, pharmaceuticals, equipment, technology, and industrial products. On the other, it is also a developed consumer market with stable demand for garments, footwear, furniture, seafood, coffee, agricultural products, processed food, and other daily consumer goods.

Vietnam’s export profile to the UK increasingly reflects this diversification. According to information shared at the seminar, Vietnam’s exports to the UK in 2025 included approximately $1.35 billion in phones and components, $1.3 billion in computers, electronics products and components, more than $1.05 billion in footwear, and nearly $895 million in garments.

The UK factsheet similarly shows that telecoms and sound equipment accounted for the largest share of UK imports from Vietnam, at £2.9 billion ($3.9 billion), or 34.9 per cent of total goods imports from Vietnam in 2025.

The shift suggests Vietnam’s exports to the UK are no longer concentrated solely in traditional labor-intensive sectors, but are increasingly tied to higher-value industrial production and global supply chains.

Despite favorable tariff preferences under the UKVFTA and the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), experts warned that market access alone does not ensure competitiveness.

Mr. Le Dinh Ba, Trade Counselor and Head of the Vietnam Trade Office in the UK, said the UK remains a highly-competitive market where Vietnamese products compete directly with exporters from China, India, and ASEAN countries. He highlighted rules of origin as one of the most important bottlenecks for exporters.

Mr. Ba also warned exporters not to focus only on freight-on-board (FOB) prices when planning market entry. Businesses should instead calculate the full cost of reaching consumers, including transportation, insurance, warehousing, certification, testing, packaging, returns, marketing, distributor discounts, and exchange-rate risks. For food, agricultural, and animal-origin products, companies must pay particular attention to sanitary and phytosanitary (SPS) requirements and the UK’s evolving border control regime.

He outlined several strategic recommendations for Vietnamese firms, including standardizing products and documentation before securing orders, moving beyond contract manufacturing toward stronger branding and product design, properly utilizing rules of origin under free trade agreements, managing compliance and logistics costs, selecting appropriate distribution channels, and investing in long-term market presence.

Broader cooperation

Officials said bilateral cooperation is also broadening beyond merchandise trade into areas with higher added value. According to Mr. Thanh, the UK maintains strengths in finance, energy, pharmaceuticals, aviation, advanced technology, education, professional services, and green growth, sectors where Vietnam’s demand is increasing as the country seeks to modernize its economy.

Frameworks such as the UKVFTA, the CPTPP, the Vietnam-UK Joint Economic and Trade Committee (JETCO), and the recently-upgraded Comprehensive Strategic Partnership are expected to create more opportunities for collaboration in services, investment, clean energy, green finance, innovation, and technology.

The Trade Promotion Agency has also announced plans to organize a trade delegation to the UK from July 5-14, covering Manchester, London, and Edinburgh, alongside major exhibitions, including the Manchester Furniture Show and Source Fashion.

Still, speakers agreed that the UK market is unlikely to reward short-term approaches based primarily on low prices. Rather, success will increasingly depend on whether Vietnamese businesses can adapt to stricter standards, ensure stable supply capabilities, strengthen trust with importers, and position products for long-term value creation in one of Europe’s most demanding markets.

VET-Linh Tong

Accelerated transportation transition

Tue, 16 Jun 2026 04:00:00 GMT

Vietnam Economic Times / VnEconomy gathered insights from policymakers, experts, and businesses on how AI is transforming transportation and mobility around Vietnam.

Ms. Citra H. Nasruddin, Program Director, Tech for Good Institute (TFGI)

I believe there is growing consensus that AI not only generates significant economic value but also improves quality of life in many ways, particularly in mobility and transportation. Among the clearest benefits we can already see are greater operational efficiency, time savings, and lower costs.

In Vietnam, multiple pathways are emerging to build a more sustainable transportation future, ranging from the transition to electric vehicles and expanded public transportation to AI-driven logistics optimization, smart transportation systems, and shared mobility platforms. Each pathway plays a distinct role, but in my view, AI is the “common thread” connecting every part of this ecosystem, enabling it to operate more efficiently and cohesively.

However, ambition alone is not enough. The pace and sequencing of implementation matter just as much. Developing smart transportation systems will take decades and cannot outpace the practical limits of infrastructure or workforce capacity. Investments in infrastructure, training, and workforce upskilling therefore require time and must be realistically reflected in long-term implementation plans.

Another major challenge is data fragmentation. To fully unlock AI’s potential in mobility, Vietnam will need to establish a centralized data system capable of effective integration and sharing among stakeholders. Equally important is developing a clear roadmap for AI adoption, something I believe should be prioritized at this stage.

I believe public-private partnerships and trust-based data-sharing mechanisms will play a pivotal role in driving innovation. At the same time, regulatory coordination, along with policy stability and predictability, will form an important foundation for attracting long-term investment. Institutional capacity and a transparent, clearly defined legal framework are also essential to this transition.

In particular, I believe Vietnam should adopt more flexible policy frameworks, including AI-supported policy sandbox mechanisms. Such an approach would allow new models to be tested, refined, and gradually scaled in a safe and controlled manner. More importantly, AI deployment must remain inclusive and people-centered, ensuring that all groups have access to opportunities and that no one is left behind in the course of technological transformation.

Mr. Ted Kim, CEO of GCOO Vietnam

Drawing from experience in developing smart city platforms and currently operating electric transportation infrastructure in Vietnam, I believe the country’s transportation challenge extends beyond congestion. At a deeper level, the problem lies in the fragmentation of the overall system.

Vietnam currently has multiple transportation modes operating in parallel, including motorcycles, private cars, buses, taxis, ride-hailing services, electric vehicles (EVs), and more recently, urban rail systems in Hanoi and Ho Chi Minh City. However, these systems remain fragmented, lacking connectivity in data, planning, and operational coordination.

By contrast, in countries such as Singapore and South Korea, residents can simply open a mobile application to know exactly when a bus will arrive, which metro line is departing next, or even which platform location is most convenient to minimize travel time. This allows users to choose the most efficient mode of transport.

Based on this reality, I believe AI can help Vietnam address four key transportation challenges.

First is improving visibility into and forecasting transportation demand. Cities need to understand where people are traveling, when they are traveling, and for what purposes. AI can help predict mobility demand while identifying underserved areas.

Second is addressing pressure on urban space. In cities such as Hanoi, congestion is not limited to roads but also extends to parking facilities, sidewalks, pick-up and drop-off points, and public spaces. AI can help analyze and identify emerging “pressure hotspots.”

Third, AI can support the planning, forecasting, and deployment of environmentally-friendly transportation, particularly EVs. However, introducing EVs to the market is only the first step. More important are the operational systems behind them, including charging and battery-swapping management, vehicle maintenance, traffic coordination, safety, and maintaining a stable and convenient user experience.

Fourth is measuring sustainability. If Vietnam wants more investment in green and sustainable transportation, cities and investors will need reliable data on usage rates, emission reductions, safety, and accessibility. AI can help analyze such data, but only if eliable data infrastructure exists.

In my view, Vietnam needs a clear operational framework in which the private sector has room to invest, while the public sector plays a supporting and coordinating role, thereby fostering public-private partnerships and resource sharing. Vietnam must also establish data standards, as AI is only effective when input data is sufficiently high quality. The country needs to prioritize practical pilot programs rather than stopping at conceptual ideas, and transportation systems should be designed with people at the center.

Ms. Nguyen Thi Le Quyen, Head of the Enterprise Support Department, National Innovation Center (NIC)

In the context of AI development and innovation today, I believe public-private partnerships (PPPs) need to be broadened beyond resource sharing to encompass a shared vision between the government and the private sector to jointly build mechanisms and policies that foster the growth of the technology ecosystem.

This direction has become increasingly evident in recent years as the government has introduced a list of strategic technology sectors and strategic technology products, including AI and products such as traffic cameras. This demonstrates that the government is not only acting as a regulator but also proactively shaping the market and signaling confidence for businesses to invest more boldly in AI research, development, and application.

At the same time, the government has gradually strengthened the legal framework surrounding AI, from risk management mechanisms to policies encouraging responsible AI development and deployment. Most recently, Decree No. 182/2025 on PPP mechanisms in science, technology, and innovation was introduced.

In my view, this is a highly-open mechanism that enables organizations such as the National Innovation Center to work with businesses in developing, commercializing, and operating science- and AI-based applications. More importantly, it creates more flexible collaboration space between the public and private sectors in advancing technology.

Another particularly important area is public-private cooperation in infrastructure development and resource sharing, especially data infrastructure. In AI, data is a decisive factor. The government is currently accelerating the establishment of national data centers and the integration of databases across ministries and agencies.

I believe that once databases are integrated and shared at an appropriate level, the private sector will be better positioned to develop AI models and build more effective applications for logistics, transportation, and mobility. This will also provide an important foundation for AI to move into practical operation.

Beyond data infrastructure, today’s PPPs should also focus on building an open ecosystem. All stakeholders exist within the same ecosystem and are both affected by and beneficiaries of it. Therefore, it is essential to connect all participants, from government agencies, investors, and startups to research institutes and universities.

In recent years, the National Innovation Center has launched multiple incubation programs for AI startups, including solutions for logistics, seaports, transportation, and automation. At the same time, Vietnam is selectively attracting major technology corporations to participate in the domestic innovation ecosystem in order to foster more comprehensive AI development.

Beyond traditional PPP models, I also believe Vietnam should place greater emphasis on a “triple helix” cooperation model involving government, universities, and businesses. This is a major policy direction aimed at linking education, research, and markets to address broader economic and sectoral challenges. In this context, the role of connecting stakeholders across the ecosystem will become increasingly important to the development of AI and innovation in Vietnam.

Mr. Dinh Tuan Hung, Director of the Institute for Space and Underwater Technology, Hanoi University of Science and Technology

AI is already having a major impact on transportation monitoring. It is increasingly clear that public behavior changes significantly when it is introduced into traffic surveillance systems. Road users become more conscious of complying with traffic rules, as virtually all vehicles and participants are now within the monitoring system.

From this perspective, if Vietnam wants to accelerate the transition from gasoline-powered vehicles to electric vehicles, technology- and data-driven regulatory tools can be deployed. For example, cities could introduce congestion charges based on transportation zones, with fees increasing progressively toward central urban areas. Such measures would not need to be implemented immediately but could instead follow a gradual roadmap, allowing citizens time to adapt.

In my view, the key is to create mechanisms that encourage people to voluntarily choose more suitable transportation options. If revenues generated from such policies are reinvested into small-scale public electric vehicles systems, this could gradually help shift travel habits away from private vehicles and toward public transportation. The transition should be transparent, phased, and provide adequate adaptation time for citizens rather than being imposed abruptly.

More broadly, transportation and logistics are becoming increasingly diversified. Many cities around the world have begun deploying drone delivery systems, developing the low-altitude economy, and expanding water-based transportation models. This suggests that future mobility will no longer revolve solely around land-based transport, but rather evolve into a multilayered, multimodal ecosystem.

As a result, the concept of transportation safety will also change. Citizens will no longer focus only on road safety but will also be concerned about risks emerging from airspace and autonomous vehicles. To manage such a complex system in an integrated way, the first requirement will be unified governance infrastructure.

Future transportation will involve not only vehicles, but also data, software, cybersecurity, safety, and the management of moving objects across multiple physical environments.

For this reason, all stakeholders, from individuals to businesses, should contribute data to a national data system through appropriate mechanisms. Only with sufficiently large datasets can AI generate solutions that are both intelligent and accurate. On that basis, the government can play a regulatory role, establish differentiated governance layers, and develop tailored applications for different user groups.

For example, ordinary citizens could access applications that recommend optimal transportation options, while logistics companies could benefit from deeper layers of data and more specialized solutions for operations and freight coordination. With a shared platform of this kind, the transportation ecosystem could function more efficiently and provide fairer access across user groups.

However, centralized digital systems and data concentration also introduce new risks. One of the most significant is energy security. Power outages or natural disasters affecting infrastructure could disrupt the entire platform. As a result, contingency plans, backup systems, and risk mitigation mechanisms will be essential to ensure operational continuity.

Mr. Nguyen Anh Duong, Head of the Department for General Economic Issues and Integration Studies, Institute for Policy and Strategic Studies (IPSS)

In my view, public-private partnership (PPP) mechanisms play a critical role in developing AI applications for transportation and mobility in Vietnam. This is neither solely the responsibility of government agencies nor of businesses. Rather, it requires the participation of multiple stakeholders. For PPPs to function effectively, the first step is to clearly define the principles of coordination between participating parties.

The first priority is determining which types of risks can be managed most effectively by which stakeholders. In traditional PPP models, governments typically focus on systemic risks such as legal frameworks, policymaking, and macro-level issues, while businesses address market-related challenges. However, AI introduces a new category of risks that both sides must jointly manage, namely, process- and data-related risks.

This is also the most important part of today’s challenge. Data remains a relatively new field, where everything from collection methods and usage processes to the scope of deployment requires both business-led innovation and government oversight. Without clear mechanisms for allocating responsibility and sharing data, it will be difficult to establish an effective AI foundation for transportation.

More specifically, businesses can focus on areas aligned with their strengths, such as data collection, information processing, and digital infrastructure development. For example, AI-powered traffic sensors and data platforms are areas where companies can contribute effectively. Businesses can also provide data services to government agencies, including travel demand forecasting and projections for future transportation corridor development.

In some cases, government agencies may be well suited to initial implementation, but when systems move into continuous, uninterrupted operation, businesses are often better positioned to manage them efficiently. This also creates opportunities for companies to generate revenue through data services and technology platforms supplied to the public sector.

Meanwhile, the government’s role is to establish policy mechanisms that incentivize private-sector participation while ensuring vulnerable groups, including workers, older adults, and small and medium-sized enterprises, can still access AI-enabled transportation services. Ultimately, businesses must prioritize profitability, while many disadvantaged groups may not be able to access services entirely through market mechanisms.

Another equally-important issue is establishing standards for AI in transportation. These standards should not only cover data interoperability and infrastructure specifications, but also AI ethics, data governance processes, and secure data-sharing mechanisms. Questions such as who can access data, under what procedures, and according to which sharing standards while maintaining safety and security all need to be clearly defined.

Even in developing these standards, however, PPPs remain essential. In practice, regulators may understand broad principles, but businesses often possess deeper expertise in technical standards through direct engagement with technology and markets. At the same time, without proper safeguards, proposed standards could end up serving the interests of certain businesses rather than the broader public good.

For this reason, standards development requires open dialogue between government and businesses, while also ensuring a balanced alignment of interests.

Finally, current PPP mechanisms still tend to focus primarily on relationships between the State and businesses, while the voices of citizens remain relatively muted. In the context of AI in transportation, citizens and workers are the ultimate beneficiaries. While the benefits to any one individual may appear small, collectively across society they become highly significant.

As such, stronger mechanisms are needed to directly incorporate public feedback so that AI development in transportation genuinely serves the broader public interest.

Associate Professor Dam Hoang Phuc, Director of the Automotive Engineering Program, Hanoi University of Science and Technology

When discussing AI in transportation, the most important question is where it can make an impact and which areas it is best positioned to support. In my view, AI can contribute to three key pillars of transportation: governance, infrastructure and vehicles, and end-users.

In terms of governance, I believe transportation management in Vietnam remains largely reactive. By contrast, AI’s greatest strength lies in its ability to shift the system from reactive responses to prediction and prevention. This represents one of AI’s most valuable contributions to transportation. Rather than responding only after congestion or incidents have occurred, AI can help forecast potential risks in advance, enabling authorities to proactively regulate traffic and implement appropriate solutions.

However, achieving this requires one essential condition: synchronized data and a shared data system. In my view, if every organization continues developing separate datasets in isolation, AI will struggle to reach its full potential. Therefore, AI development in transportation must go hand-in-hand with stronger data interoperability and information sharing across agencies and levels of government.

The second issue concerns infrastructure and vehicles. Smart transportation systems and AI deployment require infrastructure that is adequately prepared. We need to clearly define what additional investments are necessary, from traffic signals and cameras to operation centers and data infrastructure. At the same time, vehicles participating in the transport system must be equipped with technologies that enable connectivity and AI integration.

We are already seeing the emergence of connected transportation models, including vehicle-to-infrastructure, vehicle-to-vehicle, and vehicle-to-center communication systems. In my view, Vietnam needs to establish an appropriate roadmap for these models. This will be a critical foundation if AI is to play a meaningful role in transportation operations.

The third issue concerns users. Transportation needs differ across population groups. Residents in Hanoi, for example, have different mobility patterns and demands from those in Ho Chi Minh City or other localities.

VET-

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

AI-Powered transportation transformation

Mon, 15 Jun 2026 04:00:00 GMT

Transportation is already being transformed by AI to differing degrees in Vietnam and elsewhere in Southeast Asia.

The emergence of ride-hailing platforms a decade ago transformed Vietnam’s mobility landscape. The new business model not only changed how people traveled and forced traditional taxi operators to adapt in order to remain competitive, but also created new employment opportunities and prompted regulators to revise policies in response.

“Today, a new technological wave, particularly AI, could trigger an even greater turning point for Vietnam’s transportation system,” Mr. Nguyen Anh Duong, Head of the Department for General Economic Issues and Integration Studies at the Institute for Policy and Strategic Studies (IPSS), told the “Mobility, Artificial Intelligence (AI) and Society: Strengthening the Future of Transportation in Vietnam” workshop.

Impacts on mobility

In practice, AI has already begun to feature prominently in Vietnam’s transportation and urban development policies. Intelligent traffic operation centers, AI-enabled cameras, and data analytics platforms are gradually becoming the new “digital infrastructure” of modern cities. In Hanoi alone, according to recently-published figures, the city had installed more than 1,800 AI cameras for traffic management by 2025 and plans to deploy more than 2,100 additional units this year.

AI’s role extends beyond surveillance. The technology is improving the detection and enforcement of traffic violations while reducing dependence on manual monitoring methods. Official reports show that within the first month of deploying Hanoi’s AI camera system, authorities recorded more than 6,300 traffic violations subject to administrative penalties. In Ho Chi Minh City, a similar system identified more than 3,400 violations within a single month.

Countries across Southeast Asia are increasingly leveraging AI to build cities that are more resilient to infrastructure pressures and environmental challenges. Mr. Erlanggasakti Putra, Program Analyst at the Tech for Good Institute (TFGI), said Singapore uses AI to predict congestion risks in public transportation before disruptions spread across the wider network.

In the Indonesian capital Jakarta, AI supports traffic navigation during extreme weather events or sudden flooding. The system can quickly reroute vehicles to safer roads, helping reduce public risk while ensuring smoother mobility.

At the same time, the shift toward electric mobility is elevating AI’s importance within Southeast Asia’s green transportation strategies. According to TFGI, Singapore aims for all newly-registered vehicles to run on clean energy by 2030 and plans to phase out internal combustion engine vehicles entirely by 2040. Malaysia is targeting significant electric vehicle (EV) infrastructure expansion by 2030, with EVs expected to account for 80 per cent of transport by 2050.

Indonesia is seeking to put 13 million electric motorcycles and 2.2 million electric cars on the road before 2030 as part of its pathway toward net-zero emissions by 2060. Vietnam, meanwhile, committed to net-zero emissions by 2050 at COP26 and has introduced a transition roadmap under Decision No. 876/QD-TTg, the Action Program on Green Energy Transition and Carbon and Methane Emissions Reduction in the transportation sector.

According to experts, digital technologies and AI will play a particularly critical role in this process. “We often say AI is driving transportation development, but in reality, the growth of the transportation ecosystem is also feeding back and creating additional momentum for the AI sector,” Mr. Duong said.

Mr. Putra also argued that AI can support policymaking during the transition to electric mobility. Governments are simultaneously grappling with multiple complex challenges, including electricity grid capacity, energy supply, and the still-high upfront cost of EVs. He further emphasized that AI is not only linked to transportation technology but also directly affects labor markets. AI-based training and coordination tools could help workers in traditional transport sectors reskill and adapt to emerging jobs in the green economy.

Within the logistics sector, adopting technology at the appropriate scale can improve operational efficiency and competitiveness. According to the Vietnam Logistics Report 2025, compiled by the Agency of Foreign Trade at the Ministry of Industry and Trade, several leading companies, including the Sai Gon Newport Corporation, Viettel Post, and Vietnam Airlines, have incorporated innovation and AI into logistics operations.

Unlocking AI’s potential

The benefits of AI deployment in transportation and logistics have become increasingly evident. According to reports from Hanoi authorities, AI-driven traffic management has significantly improved traffic flow and reduced congestion. On some roads where AI systems have been introduced, travel time on one-way routes has fallen by as much as 31 per cent, while traffic volume increased by around 13 per cent.

However, experts argue that realizing AI’s full potential in mobility and transportation will require overcoming several key barriers.

According to the IPSS, the first major obstacle is fragmented data. Transportation-related information remains scattered across multiple agencies and organizations. While Vietnam has already enacted laws and government resolutions on data sharing and interoperability, connecting these systems remains a major challenge.

“This is especially important for AI,” Mr. Duong explained. “AI development depends not only on algorithms or processing power but also heavily on access to data for training and operations. Fragmented and disconnected datasets have become one of the biggest barriers to AI deployment.”

A second challenge is uneven AI capacity and infrastructure across localities. To date, most visible progress has been concentrated in Hanoi and Ho Chi Minh City, while many smaller cities and medium-sized logistics and transport firms still face limited investment in AI and digital infrastructure. This raises the risk of widening digital divides between regions and business groups.

The third challenge is cost. Building AI infrastructure for transportation requires substantial investment, from AI camera systems and smart traffic signals to operation centers, data storage, processing infrastructure, and the energy needed to power AI systems. Beyond public investment costs, transportation and logistics businesses also face mounting expenses associated with digital transition.

Experts caution that if technologies are too expensive, overly complex, or poorly suited to business scale, widespread adoption will remain difficult, particularly for small and medium-sized enterprises. For individual users, AI tools may appear relatively affordable and accessible. But for businesses, especially in transportation and logistics, deployment costs represent a much more significant challenge.

On the policy front, Vietnam has developed a relatively comprehensive and rapidly-evolving AI framework. As early as 2021, the government introduced Decision No. 127/QD-TTg on AI research, development, and application. More recently, authorities have issued decisions on strategic technologies and technology products, underscoring AI’s growing role in national development priorities.

In smart transportation, Vietnam has introduced policies promoting the Internet of Things (IoT). However, experts note that an emerging concept - the Artificial Intelligence of Things (AIoT) - remains largely absent from current regulations.

The distinction lies in how data is processed. Traditional IoT systems typically collect information from devices and send it to centralized hubs for analysis. AIoT, by contrast, enables part of the data to be processed directly at the source through embedded AI, with only essential information transmitted to central control systems. This approach accelerates processing, reduces latency, and improves operational efficiency for smart transportation networks.

Based on current realities, Mr. Duong proposed several priorities for the next phase of development. Vietnam, he argued, should first build an integrated and synchronized mobility data platform to support AI deployment in transportation. The country should also help cities beyond Hanoi and Ho Chi Minh City gain access to AI technologies to avoid widening digital divides.

In parallel, Vietnam should accelerate the development of AI-based logistics corridors and expand regulatory sandbox mechanisms for new AI-powered services, such as autonomous delivery and automated operating systems. Without appropriate sandbox mechanisms for both technology and policy, many new transportation models will struggle to move beyond pilot stages and scale effectively.

VET-BACH DUONG

Coherent strategy required for AI application

Sun, 14 Jun 2026 08:30:00 GMT

The deployment of AI must be considered from a long-term perspective for it to fully benefit transportation.

Transportation is not simply about infrastructure or vehicles, as it shapes the daily lives of millions of people. Representatives from government agencies, logistics businesses, and the social research community attending the “Mobility, Artificial Intelligence (AI) and Society: Strengthening the Future of Transportation in Vietnam” workshop reflected on a landscape that is both encouraging and demanding of greater effort to ensure no one is left behind in the development of smart transportation.

AI’s role

Mr. Luong Duc Thang, Deputy Head of the Transport Infrastructure Management Division at the Hanoi Department of Construction, said AI’s role in urban transportation management has already been clearly identified in several near-term areas, including traffic enforcement, the operation of green transportation ecosystems, and traffic flow improvement. However, broader long-term direction for AI deployment, as well as how to effectively harness large datasets for governance and operations, remains an area requiring further study and clarification.

In practice, Hanoi had installed more than 1,800 AI-enabled cameras for transportation and public security purposes by 2025 and plans to add more than 2,100 additional cameras this year. The figures reflect an impressive pace of implementation. Yet according to Mr. Thang, what regulators truly need is not simply more equipment, but a coherent big data strategy, from collection to practical use in urban governance. “Every policy must answer one question: what benefits will citizens receive from its implementation?,” he said. “This remains a new area, and we need stronger engagement from AI experts to help shape clearer direction.”

As Hanoi adjusts its master plan and expands urban development, Mr. Thang argued that building a unified transportation data platform, from data collection to operational deployment, has become an urgent requirement, demanding coordination between regulators, technology companies, and experts.

Mr. Nguyen Duy Hong, Operations Head, North Central Vietnam, at the YCH Group, shared his first-hand experience applying AI from the perspective of a logistics company facing growing trade volumes and mounting pressure to optimize transportation costs. In the past, shipment planning relied heavily on experience and assumptions: a truck would be booked for 8am, and operators simply waited. If it failed to arrive on time, only then would any follow-up begin. Today, through AI and GPS integration, logistics teams can determine well in advance where vehicles are and when they are expected to arrive.

That real-time visibility not only reduces uncertainty but fundamentally changes how resources are allocated and operational plans are designed. “AI has helped us reduce planning time by 80-85 per cent, while cutting costs by around 30-40 per cent through the automation of repetitive tasks,” Mr. Hong said.

At the same time, he highlighted a paradox: while AI is integrated into corporate management systems, many employees continue using personal AI tools to handle day-to-day work. This raises concerns over customer data security, but more fundamentally reflects the absence of shared data infrastructure accessible across supply chains. “A supply chain is only as strong as its weakest link, and no one wants to be that weakest link,” he added.

He therefore called on the government to establish a centralized data hub where businesses could securely upload and access information, rather than forcing each company to independently invest in fragmented cloud infrastructure; an approach that is both costly and risks deepening data silos across the industry.

At the same time, the green transition is creating new practical pressures. Many logistics firms have only recently invested in truck fleets that have yet to fully depreciate, but are already being pushed to consider electric vehicle (EV) alternatives. However, electric trucks currently available in Vietnam still fall short in terms of payload capacity and operational range required by the logistics sector. This, he argued, requires appropriate policy support to help businesses navigate the transition.

AI’s role in urban transportation management has already been clearly identified in several near-term areas, including traffic enforcement, the operation of green transportation ecosystems, and traffic flow improvement. However, broader long-term direction for AI deployment, as well as how to effectively harness large datasets for governance and operations, remains an area requiring further study and clarification.

Choices available

Dr. Nguyen Duc Vinh, former Director of the Institute of Sociology at the Vietnam Academy of Social Sciences, emphasized issues of accessibility and social equity as transportation systems evolve rapidly. As policies shift and technologies advance, different population groups will inevitably have different capacities to adapt and varying transportation choices available to them.

He pointed to motorcycles as an example. The widespread reliance on motorbikes in Vietnam reflects a practical reality: for many people they remain the best option given current conditions - affordable, flexible, and independent of fixed schedules.

In his view, travel behavior will naturally evolve only when transportation systems provide genuinely more convenient and suitable alternatives. “Some groups adapt to technology very quickly, while others are almost excluded from it,” he explained. “Whenever policies or technologies change, we need to ask: what transportation options will these groups realistically have?”

He also stressed that AI cannot replace human decision-making in transportation participation. Transitioning to EVs, expanding public transit, and deploying AI all hold significant value, but should also be evaluated against social indicators, including affordability, accessibility, and impacts on quality of life across different population groups.

As Vietnam’s transportation sector undergoes an intelligent digital transition amid rapid AI development, it faces multiple challenges. A unified and interoperable transportation data platform is increasingly viewed as essential for AI applications to operate effectively at the system level, rather than remaining confined to individual agencies or businesses.

At the same time, policymakers must account for differences in public accessibility, including among groups less equipped to adapt to technological or policy shifts, to ensure the benefits of smart transportation are shared broadly across society.

VET-AN MINH

AI-powered transportation improvement

Sun, 14 Jun 2026 03:00:00 GMT

AI is certain to improve transportation and associated fields greatly if all prerequisites are met.

Vietnam’s GDP growth came in at 7.83 per cent year-on-year in the first quarter of 2026, building on the strong 8.02 per cent result in 2025 as a whole and placing the country among the region’s most dynamic economies. Alongside rapid urbanization and rising incomes, demand for transportation that is convenient, safe, and efficient has increased sharply. AI is raising expectations of a fundamental transformation in Vietnam’s transportation, logistics, and urban systems.

At the “Mobility, Artificial Intelligence (AI) and Society: Strengthening the Future of Transportation in Vietnam” workshop, co-hosted by the Vietnam Economic Association (VEA), Vietnam Economic Times / VnEconomy, and the Tech for Good Institute (TFGI), in coordination with the Institute for Policy and Strategic Studies (IPSS), experts argued that the greatest challenge is no longer technology itself but rather the ability to integrate data, expand energy infrastructure, and prepare a workforce capable of adapting to an entirely new transportation landscape.

Data comes first

In every smart transportation system, from traffic signal optimization and freight management to urban planning and emissions control, data forms the operational foundation.

Mr. Truong Manh Tuan, Deputy Head of the Environmental Quality Management Division at the Department of Environment under the Ministry of Agriculture and Environment, said transportation remains one of the largest sources of emissions in major cities such as Hanoi and Ho Chi Minh City, alongside construction and industrial activities. Air pollution in large urban centers has persisted for years and exceeded regulatory thresholds over extended periods.

As a result, resolving urban environmental problems requires comprehensive rather than piecemeal approaches, with transportation emissions control playing a central role.

Under the current roadmap, Vietnam has begun tightening emissions standards for motor vehicles. Notably, mandatory motorcycle emissions inspections are scheduled to take effect on July 1, 2027. However, according to Mr. Tuan, the objective is not to eliminate vehicles but rather to foster regular maintenance habits and emissions monitoring. Studies suggest that many motorcycles can reduce emissions by 70-90 per cent after proper servicing.

Experts also agreed that AI ambitions will remain limited unless the country first addresses its data challenge. Without sufficiently large environmental and transportation datasets, emissions inventories, real-time monitoring, and accurate policy design become difficult to implement.

Dr. Tran Tien Dung from the Urban Development Agency at the Ministry of Construction said AI and the Internet of Things (IoT) are fundamentally reshaping how cities organize transportation systems. While transportation planning once relied largely on periodic surveys and static snapshots in time, AI now makes it possible to build real-time “mobility maps” using continuous data collected year-round.

This enables cities to better identify travel demand, congestion hotspots, and residents’ access to services. More importantly, AI is helping shift planning philosophy from “organizing transportation for mobility” to “designing cities to reduce the need for travel.” The concept of the “15-minute city,” where essential services are accessible within short distances, is increasingly viewed as a promising model for data-driven urban planning.

Beyond planning, AI is also expected to support traffic flow management, signal optimization, enforcement, and real-time urban operations. However, despite these technological ambitions, Vietnam still lacks an interoperable data platform connecting sectors and levels of government, widely seen as the biggest “soft bottleneck” to smart transportation development.

Infrastructure gaps

Alongside AI, the transition to new-energy vehicles is becoming another major force reshaping urban transportation in Vietnam. But as electric vehicle (EV) adoption expands beyond early adopters to mainstream consumers, shortcomings in infrastructure and technical standards are becoming increasingly visible.

Ms. Nguyen Thi Nhat Ha from Voltality Pte Ltd said early adopters may tolerate inconveniences such as limited charging stations or the need to use multiple apps to operate EVs, but mainstream users expect a level of convenience comparable to gasoline-powered vehicles. “Vehicles must fit consumers’ existing lifestyles, rather than forcing them to completely change their lifestyles for EVs,” she said.

According to experts, Vietnam’s EV market remains largely confined within relatively closed ecosystems. What is missing is an open ecosystem in which users can access shared charging infrastructure across different vehicle brands.

The issue extends beyond technology and is closely tied to regulatory frameworks and technical standards. Vietnam currently lacks unified standards for charging stations, connectors, electrical safety, and fire prevention systems for EV infrastructure. This uncertainty has made many international investors cautious despite strong market potential.

Dr. Dung suggested Vietnam could draw lessons from the mobile phone industry’s transition toward standardized Type-C charging ports in designing a common EV charging framework. Only with harmonized standards, he argued, can the market develop openly and foster genuine competition.

At the same time, EV growth is creating new pressure on energy infrastructure. AI is expected to help optimize electricity demand, allocate charging networks, and coordinate energy loads across regions. But operating a large-scale EV ecosystem efficiently will require far closer coordination between urban planning, energy systems, and transportation policy.

Inclusive transition

While AI and smart transportation are reshaping cities, they are also transforming labor markets. Ms. Trinh Thu Nga of the Institute of State Organizational and Labor Sciences at the Ministry of Home Affairs said the transition toward green and intelligent transportation is creating new employment opportunities in areas such as EV charging infrastructure operations, AI-powered logistics coordination, and digital transport platform management.

Yet those opportunities come alongside significant adaptation pressures for traditional workers, from motorcycle drivers and gig delivery workers to informal logistics laborers. While technology evolves monthly, retraining workers can take years.

Vietnam’s current paradox is that the country not only lacks AI specialists but also faces shortages of mid-level technical workers, broad-based digital skills, and flexible retraining mechanisms for adult workers. Without adequate preparation, digital transformation risks widening skills gaps and increasing the likelihood that parts of the workforce will fall behind.

As a result, many experts believe smart transportation development must be accompanied by comprehensive workforce and skills strategies. Investment in technology must go hand-in-hand with investment in people.

At the same time, smart transportation should be viewed as an integral component of a modern labor market. Beyond mobility, transportation determines workers’ access to jobs, labor mobility, and ultimately economic productivity.

As green and digital transitions accelerate simultaneously, calls are growing for stronger “transition safety nets” for workers, including retraining programs, social insurance protections, and career transition support.

Ultimately, the success of smart transportation will not be measured by the number of technologies deployed, but by whether people can travel more conveniently, workers have access to better opportunities, and society becomes more inclusive.

VET-Tuan Khang

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-

A mutualistic relationship

Sat, 13 Jun 2026 00:55:00 GMT

H.E. Francisco Noel R. Fernandez III, Ambassador of the Philippines to Vietnam, shared his views with Phuong Hoa on Vietnam - Philippines relations as well as prospects for strengthening economic, trade, and investment cooperation.

2026 marks the 50th anniversary of the establishment of diplomatic relations between Vietnam and the Philippines (1976-2026). In your view, what have been the most significant and meaningful milestones in the relationship over the past five decades?

Leaders of both countries have attached great importance to bilateral relations, as manifested by regular visits and meetings at the highest level over the years.

Specifically, in 2015, Vietnam and the Philippines signed a Strategic Partnership Agreement, indicating their mutual desire to further strengthen bilateral relations. It is anticipated that the two countries will elevate this relationship to an Enhanced Strategic Partnership during the state visit to Manila by Party General Secretary and State President To Lam.

In order to ensure the proper framework to advance bilateral relations, the two countries have signed bilateral agreements on trade and investment, air services, agriculture, tourism, double taxation avoidance, sports, defense, education, technical and scientific cooperation, maritime and fisheries cooperation, naval and coast guard cooperation, disaster response, and political cooperation, among others. These agreements ensure that engagements between the two governments are purposeful and structured toward further growing cooperation.

In the area of bilateral trade, it grew from $4.91 billion in 2019 to $8.33 billion in 2025. The two sides are exerting mutual effort to reach $10 billion soon.

Vietnam and the Philippines are both among the most dynamic and fastest-growing economies in the ASEAN region. How can they complement each other to further enhance regional competitiveness and contribute more effectively to ASEAN’s overall development?

The Philippines prides itself on its robust business process outsourcing industry. Many of the leading global corporations have availed themselves of the voice call services offered by competent and English-proficient Filipino personnel operating from major cities in the Philippines.

As Vietnam seeks to grow its business globally, it can tap into the mature business process outsourcing industry of the Philippines to support its customer service requirements as more Vietnamese products are introduced globally. This complementarity in trade promotion will help promote the mutual economic development of both countries as companies from both sides expand their reach globally.

In the global supply chain ecosystem, electrical machinery and parts produced in the Philippines find their way to manufacturing plants in Vietnam, where they are incorporated into products that Vietnam sells to other countries. This mutually-beneficial arrangement allows both sides to create jobs for their respective workers.

In 2024, Philippine exports to Vietnam of electrical machinery and parts accounted for more than $500 million in bilateral trade. Vietnam, for its part, has been the principal supplier of rice and cereals to the Philippines, thereby ensuring food security for the Philippines while ensuring sustainable incomes for Vietnamese farmers. Again, this trade shows complementarity between the two sides.

It can be anticipated that companies from both sides will explore cooperation in the areas of renewable energy, AI, and the vastly untapped blue economy, among others. These new areas provide a rich source of incentives to encourage companies from both sides to work together as a means to sustain the economic growth of both countries.

Vietnam and the Philippines are working toward the goal of increasing bilateral trade turnover to $10 billion. What should they do to create new breakthroughs in trade cooperation and better unlock the full potential of their bilateral economic ties?

It is important that enterprises from both sides participate in events where they are introduced to each other in order to explore new areas of cooperation. The state visit to the Philippines by Party General Secretary and State President To Lam, from May 31 - June 1, will see the participation of enterprises from both sides in a business forum organized in Manila. It is hoped that this event will be replicated regularly, both in Manila and in Hanoi, as it is through regular interaction that enterprises become aware of each other’s expertise and potential.

Both sides need to explore non-traditional areas of trade cooperation. Among the untapped areas of economic activity is the blue economy, with both now starting to realize its vast potential for contributing to bilateral trade growth. The blue economy covers wide areas of cooperation, including tourism, marine resource management, and renewable energy production. With ASEAN already adopting a basic framework to promote the blue economy, the Philippines and Vietnam are ideally situated to agree on pioneering activities from which both economies may grow.

Likewise, as I said earlier, the Philippine business process outsourcing sector is best positioned to support the expansion of Vietnamese enterprises onto the global stage. With its mature and talented pool of English-speaking workers, the Philippine business process outsourcing industry would be able to provide administrative and remote technical support to Vietnamese companies venturing into markets in other regions of the world. In this field of cooperation, both sides would be able to create more job opportunities for their people.

In the retail industry, Philippine food giants are expected to expand their presence in the Vietnamese market. We anticipate that this sector will contribute toward reaching the $10 billion target. For Vietnam, the entry into the Philippine market of electric vehicles from a known Vietnamese automobile brand will certainly expand the volume of bilateral trade.

Which sectors do you believe still hold the greatest potential and room for deeper cooperation between Vietnam and the Philippines in the years ahead?

The blue economy boasts great potential for collaboration and cooperation between the two countries. The sector will promote greater people-to-people exchange through growth in tourism and ensure food security for our people, as enterprises from both sides would be able to better understand proper management of marine resources and tap their potential for trade.

In addition, the scientific management of the blue economy will allow both sides to address challenges posed by climate change and protect residential and agricultural areas from natural disasters. Good management of mangrove forests in coastal areas of both countries, for example, will lessen the impact of high waves on coastal communities. By learning from each other’s experiences in the protection of marine and coastal resources, the blue economy will protect our peoples from natural disasters.

The blue economy likewise provides a natural point for cooperation between the two countries, as our people have long engaged in economic activities on the ocean. There is, however, a need now to expand these economic activities while ensuring that marine and coastal resources are better protected and managed.

Multilateral diplomacy likewise presents many opportunities for collaboration and cooperation between the two countries. Mutual support for each other’s candidatures to international organizations, adoption of mechanisms to strengthen multilateral institutions and promote the active participation of developing countries in discussions, strengthening the importance of ASEAN centrality in the evolving political-security and socio-economic infrastructure of the Indo-Pacific region, and sustaining cooperation in United Nations peacekeeping operations are among the areas where Vietnam and the Philippines can further deepen their cooperation.

The two countries can furthermore enhance their cooperation in disaster risk reduction and management as they regularly confront the impact of natural disasters on their people and resources. While initial exchanges take place within the framework of ASEAN, the two countries can pursue bilateral initiatives to learn best practices from each other and share resources to mitigate the consequences of natural disasters affecting them.

In your opinion, what advantages does Vietnam offer to attract Philippine investors? At the same time, what more should the two countries do to further strengthen investment cooperation and enhance connectivity between their business communities?

Vietnam is at a stage of expanding its infrastructure and modernizing services for its people. There are areas where the Philippines has developed expertise that may be tapped by Vietnam in its development programs. With the correct incentives, Philippine companies may continue to invest in Vietnam’s road infrastructure, water distribution systems, renewable energy, and international port operations, among others. In the area of human resources, Filipinos continue to show interest in accepting placements in Vietnam’s educational system, which in turn helps Vietnamese develop better skills in their interaction with other countries, particularly in improving proficiency in the English language.

While there are several Philippine business conglomerates that have invested in Vietnam, there is much opportunity for Vietnamese businesses to favorably consider investing in the Philippines, including in the areas of telecommunications and electric vehicle manufacturing.

With only a little over $8 billion in bilateral trade between them, the two countries have much room to further promote the exchange of goods and services between their respective enterprises and peoples. Each side should therefore initiate opportunities to participate in each other’s trade fairs and exhibitions to provide more opportunities to showcase what they offer each other.

Much of the effort exerted by both Vietnam and the Philippines to promote external trade has been directed toward other countries. It is about time that Manila and Hanoi look at each other as ideal trade partners, especially since both countries have shown their resilience in promoting development and achieving remarkable economic growth in recent years.

VET-Phuong Hoa

Pivotal moment for Vietnam's development

Fri, 12 Jun 2026 10:00:00 GMT

From AI and semiconductors to digital transformation and RD, Vietnam is betting on strategic technologies and innovation to shape its next phase of economic growth.

Politburo Resolution No. 57-NQ/TW on breakthroughs in science, technology, innovation, and digital transformation is not merely a policy document. It represents Vietnam’s strong commitment to placing science, technology, innovation, and digital transformation at the center of the country’s new growth model.

Vietnam has already identified eleven groups of strategic technologies it aims to master. These include areas widely expected to shape the future of the global economy, such as AI, the Internet of Things (IoT), 5G and 6G technologies, semiconductors, quantum computing, and biotechnology. Developing and mastering these critical technologies will be essential for Vietnam to strengthen its competitiveness, sustain long-term growth, and build future prosperity.

Just five years ago, few people could have imagined the profound impact AI would have on daily life and the global economy today. Yet the history of technological development has often unfolded in this way: major breakthroughs emerge from what was once unknown. For that reason, choosing the right strategic technologies is not simply a technical decision, it is a matter of long-term policymaking with direct implications for national competitiveness and development trajectories.

Bridging the productivity gap

Vietnam has become one of the region’s most dynamic technology manufacturing hubs. Foreign-invested enterprises (FIEs), including major multinational corporations, have played an important role, accounting for roughly 70 per cent of the country’s total export turnover. Samsung alone generates revenue in Vietnam equivalent to around 13 per cent of the country’s GDP.

Yet measured in labor value-added, the productivity gap remains significant. Labor productivity in Vietnam currently stands at around $7 per hour, compared with roughly $14 in China and approximately $28 in Malaysia.

At the same time, fewer than 20 per cent of Vietnamese companies are capable of becoming suppliers to global corporations operating in Vietnam. In sectors such as electronics, foreign-invested manufacturers still import nearly 90 per cent of production components and accessories. This highlights the extent to which domestic enterprises have yet to fully capitalize on the opportunities generated by international integration and foreign investment flows. The key challenge is how to strengthen the role and participation of local firms so they can benefit more substantially from global economic integration.

Against this backdrop, several policy recommendations can help Vietnam achieve meaningful progress as it pursues a new growth model.

First, public resources must be allocated in a strong, stable, and efficient manner to science, technology, and innovation. This is a prerequisite for laying the foundation for business transformation.

Second, public investment should be optimized through a more focused and targeted approach rather than being spread too thinly. When investment reaches the right recipients - particularly businesses with strong technology absorption capacity - the effectiveness of public capital can increase significantly and generate stronger spillover effects across the economy.

International experience shows that fragmented investment tends to produce limited impact and rarely drives systemic change. By contrast, concentrating support on companies capable of absorbing technology and expanding into new markets can create greater value-added and higher-quality employment from the same level of investment.

Vietnam currently has two groups of enterprises particularly well positioned to absorb such investment. The first group includes companies already participating in global value chains, such as exporters or suppliers to international manufacturing corporations. These businesses are already accustomed to competitive pressures, operate according to international standards, and maintain stable customer networks. As a result, technological and innovation support can help them rapidly upgrade production capabilities.

The country has already demonstrated the effectiveness of this approach. Since 2015, the supplier development partnership program between the Ministry of Industry and Trade and Samsung has helped Vietnamese businesses improve management capacity, production standards, and compliance with international requirements through technical support from engineers and specialists. While Samsung had only around 25 suppliers in Vietnam in 2014, the number has now surpassed 300.

The second group consists of small and medium-sized enterprises (SMEs), which account for a large share of Vietnam’s economy and form the backbone of the country’s production and business ecosystem. However, research by the World Bank suggests that only a small proportion of Vietnamese SMEs are effectively utilizing digital tools such as AI and advanced digital technologies. The gap lies not only in awareness, but also in technology absorption capacity, implementation capability, and organizational readiness. This sector should therefore receive substantial investment over the next five years through digital transformation and innovation support programs.

Third, Vietnam needs to build a synchronized system of infrastructure and development platforms, including physical infrastructure, digital infrastructure, institutions, data systems, and innovation platforms. These foundations will provide the necessary support to ensure that technology adoption takes place on a broad and sustainable scale.

At the same time, Vietnam should continue strengthening incentives for businesses to invest in RD, not only through direct research spending but also through technology procurement, technology transfer, licensing, and stronger collaboration between businesses, research institutes, and universities.

The country has already introduced a policy allowing companies to deduct up to 200 per cent of RD expenses. This is a highly-progressive measure that provides strong incentives for the private sector. Yet uptake remains limited in practice, especially among SMEs, due to administrative barriers and limited access to information. Simplifying procedures, improving transparency, and reducing compliance costs will therefore be essential to encourage stronger and more effective private investment in RD.

Among Vietnam’s more than 640 public science and technology research institutions, only around two-thirds operate under autonomous mechanisms. International experience suggests that research institutions are more effective when granted greater autonomy, allowing them to improve resource allocation, increase flexibility, and strengthen real-world applications. Expanding autonomy for research institutes and science and technology institutions should therefore become an important pillar in strengthening Vietnam’s national innovation system.

Innovation capacity

Beyond infrastructure and institutions, people remain the core pillar of technological transformation. High-quality human capital is the foundation of innovation.

Vietnam possesses considerable human potential, reflected in international assessments such as PISA, where Vietnamese students consistently rank among the region’s strongest performers in mathematics.

The challenge now is how to convert that potential into practical innovation and technology application. Educational institutions, particularly universities, therefore play a critical role in developing a workforce capable of integrating into the global economy. At the same time, Vietnam should strengthen links between universities, research institutes, and businesses, moving beyond conferences and discussion forums toward deeper collaboration through joint research programs, academic funding, co-development initiatives, and technology transfer.

Vietnam is approaching a pivotal moment in shaping its future growth model. As the country works to realize the strategic ambitions of Politburo Resolution No. 57, the World Bank remains committed to supporting and accompanying Vietnam throughout this journey.

VET-Dr. Sacha Samuel Jacques Dray, Country Economist, World Bank

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 (*)

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

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-

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

Wed, 10 Jun 2026 04:26:00 GMT

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

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

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

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

Expanding access to finance

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

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

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

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

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

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

Building a stronger financial system for long-term growth

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

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

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

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

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

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

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

Vneconomy - Alexandra Smith (*)

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-

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-

Strengthening banking cybersecurity

Tue, 09 Jun 2026 03:30:00 GMT

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

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

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

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

Downside of AI in banking

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

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

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

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

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

Anti-fraud race

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

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

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

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

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

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

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

Human factors remain decisive

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

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

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

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

VET-Ky Phong

Nearly 30 years of Olam Food Ingredients in Vietnam

Mon, 08 Jun 2026 09:00:00 GMT

Mr. Gaurav Patil, Country Head of Olam Food Ingredients (ofi) in Vietnam, discussed its nearly 30 years in the country and its future strategies with Vietnam Economic Times / VnEconomy.

After doing business in Vietnam for nearly three decades, where did you position the market in ofi’s investment strategy?

Mr. Gaurav Patil, Country Head of Olam Food Ingredients (ofi) in Vietnam

Vietnam is not a short-term sourcing option for ofi. It plays a strategic role in our global supply network. Our network of seven large-scale processing facilities and other sourcing and raw material processing facilities across key sourcing regions such as Dong Nai, Gia Lai, Dak Lak, and Tay Ninh, reflects sustained engagement with the market and enables us to serve customers reliably, at scale, and to international standards.

We see three key factors in Vietnam. First, a stable development environment that enables long-term investments. Second, a clear national direction on green growth, especially as climate change continues to impact agriculture. And third, and perhaps most importantly, the evolving mindset and capabilities of the workforce and farming communities.

Today, ofi’s Vietnam network brings together more than 4,500 employees and over 9,000 farmers. It’s a long-term partnership where people share know-how, solve problems, and keep improving together.

Vietnam is transitioning from a raw commodity exporter to creating higher value in the supply chain. What role does ofi play in this transition?

ofi supports this shift by expanding value-added processing and offering customers a range of sustainability and quality options that meet evolving market and regulatory expectations.

Historically, agricultural exports were often measured by volume. Today, value increasingly comes from quality, consistency, food safety, and compliance with international standards. In Vietnam, ofi’s facilities process raw materials into compliant ingredients and finished products, including cashews, pepper, soluble coffee, and ready-to-eat offerings, serving global customers in demanding markets.

Through our sustainability strategy, Choices for Change, we also give our customers the options they need to meet their sustainability goals without compromising product performance.

In recent years, ofi’s Vietnam operations have produced millions of ready-to-eat product units that meet international standards, supplying customers and retail partners in global markets. This reflects the country’s growing role in value-added food manufacturing, not only primary agriculture.

However, the application of technology is only part of where value add is derived. Transparency and quality control across the supply chain are equally critical. For instance, through ofi’s sustainable sourcing solution, AtSource, our customers can trace product origins, monitor environmental impact, and measure carbon emissions in real time. This is particularly important as regulations such as the EU Deforestation Regulation (EUDR) are increasingly becoming mandatory requirements in many markets.

We are not only exporting products - we are working with Vietnam to build and deliver standards that global markets can trust.

How has ofi turned sustainable development from a goal into concrete change for farmers and the entire value chain?

For us, sustainability is at the heart of our Purpose to be the change for good food and a healthy future.

Vietnam’s ambition to achieve net-zero emissions by 2050 provides an important foundation, enabling companies like ours to implement action in a consistent way while aligning global goals with local execution. It also helps us focus our efforts to meet our own SBTi-validated climate goals, including reaching net-zero greenhouse gas emissions across the value chain by 2050.

One way we are working towards our goal to work directly with thousands of farmers to adopt regenerative agricultural practices. In 2025 alone, more than 16,000 ha of farmland were transitioned to these models, helping to improve soil quality, enhance climate resilience, and optimize long-term productivity.

We also recognize that this transition is not always easy. It requires time, patience, and close partnership with farmers. But it is through this process that meaningful change takes place.

A farmer I met in Gia Lai shared his experience with me. He explained how farming relied heavily on traditional experience, with led to inconsistent yields. After adopting sustainable practices, his product quality improved and his profits increased as a result. It means that he and his family now feel more financially secure about the future.

These results reflect not only scale but also a long-term approach in which business growth can go hand-in-hand with community development.

How do you see Vietnam’s role in the global food system evolving?

Vietnam has strong fundamentals to move further up the global value chain, from production capabilities and agricultural ecosystems to its ability to adapt to international standards. In the next phase, the focus will not only be on expanding scale but on enhancing value and sustainability across the entire supply chain.

At ofi, we will continue to invest in the capabilities and people we have developed in Vietnam, from processing and technology to supply chain management. At the same time, we are progressively applying digital and AI-driven solutions to aim to improve operational efficiency and forecasting capabilities.

However, this journey cannot be achieved in isolation.

We will continue to work closely with our teams, the government, partners, customers and farming communities to help build a food and beverage sector that delivers both value and better outcomes for people and the planet over the long term.

As the global food sector faces increasing challenges, from climate change to rising expectations on transparency and sustainability, the role of companies like ofi is to be a part of how value chains evolve in the future. In that journey, Vietnam is no longer just a sourcing origin but is increasingly becoming a strategic partner in shaping the future of the global food value chain.

VET-

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

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

Vietnam's textile and garment industry in need of reformed development model

Sat, 06 Jun 2026 09:30:00 GMT

With trade growth tipped to slow over the next few years, labor-intensive industries like textiles and garments are in need of an updated development model.

Vietnam’s three largest labor-intensive export industries are projected to have generated more than $86 billion in export turnover in 2025, accounting for 18 per cent of the country’s total exports, with textiles, garments, and footwear ranking second globally by export scale. These industries employ approximately 5.4 million workers, representing 30 per cent of Vietnam’s industrial and construction workforce, with average income per capita roughly equivalent to national GDP per capita.

Notably, the domestic value-added ratio in textiles, garments, and footwear is estimated at 45-50 per cent, or approximately $35 billion; significantly higher than in the electronics sector. The textile and garment industry alone is expected to have reached $46 billion in exports in 2025, holding the top market share in the US and maintaining an important position in other major markets.

However, from 2026 onward, these industries are expected to face significant challenges. Global trade growth is projected to remain below 2 per cent, while uncertainties such as conflict in the Middle East and US tariff policies could further dampen global economic growth. Maintaining annual export growth of over 10 per cent is increasingly unrealistic due to weak market demand and intensifying competition.

Textiles garments

The textile and garment industry currently operates within global supply chains, encompassing seven core functions across the value chain: market planning, design, development, sourcing, manufacturing, delivery, and sales. Over the past 30 years, Vietnam’s textile and garment industry has focused mainly on garment manufacturing, while upstream materials production has remained limited.

Vietnam’s domestic value-added ratio in textile and garment products is currently estimated at 45-50 per cent, yet domestic fabric production accounts for only around 30 per cent of total demand. As a traditional industry with limited technology transfer or intellectual property barriers, textile manufacturing competes primarily on price. Vietnam has struggled to develop a competitive domestic materials industry due to weaker cost competitiveness and product diversity compared with China, which accounts for 53 per cent of global fabric production.

In practical terms, manufacturing industries have three ways to contribute to the country’s double-digit growth ambitions: achieving double-digit export growth, generating double-digit trade surplus growth, or delivering double-digit income growth for workers. However, with global demand for textiles expected to rise by only around 2 per cent annually and Vietnam now classified as an upper-middle-income economy, maintaining annual export growth above 10 per cent is no longer realistic. As a result, the textile industry effectively has only two viable paths forward: increasing the trade surplus and raising workers’ incomes at a double-digit pace.

Solution 1 is to increase domestic fabric production. To achieve double-digit growth in the trade surplus while export growth remains below 5 per cent, imports would need to continuously decline by more than 5 per cent each year. Of Vietnam’s roughly $23 billion in annual imports serving the textile and garment industry, around $17 billion consists of fabric. Therefore, reducing imports requires a substantial increase in domestic fabric production, supported by large-scale enterprises capable of competing effectively.

Solution 2 is to increase the value of logistics and sourcing services. Currently, 90 per cent of Vietnam’s textile and garment industry revenue is concentrated in manufacturing, leaving significant space for expansion across the remaining six functions of the global value chain. Increasing revenue from these additional stages would enhance the industry’s value-added without necessarily expanding production.

Logistics services, in particular, represent a new growth opportunity, leveraging Vietnam’s container port infrastructure alongside the rapid development of domestic digital platforms and solutions. Vietnam could provide digital logistics not only for its own textile exports but also for textile industries in Cambodia, Laos, and western China. This opportunity could be strengthened by the standard-gauge Lao Cai - Hai Phong - Quang Ninh railway currently under construction, which would shorten the transport distance from western China to seaports by nearly 1,000 km.

Solution 3 is to increase automation and reduce labor-intensity per product. Raising workers’ incomes is not only a way to contribute to substantive national growth but also a means of ensuring labor retention for enterprises. A sustainable target would be to maintain textile workers’ income at 1.3-1.5 times the gross regional domestic product (GRDP) per capita of the locality where factories are located. According to research by the World Bank, this level would support the cost of maintaining one dependent at local living standards.

Solution 4 is to establish targets and solutions for achieving Total Factor Productivity (TFP) growth above 5 per cent. In reality, export turnover per textile worker in Vietnam is currently only around 50 per cent of that in China. Domestic labor supply is expected to become increasingly constrained in the years ahead and may even decline by an average of 5 per cent annually.

Empirical studies suggest that in the textile and garment industry, labor contributes around 0.65 to productivity growth, while capital contributes approximately 0.35. Therefore, even if capital investment increases by 10 per cent annually while labor declines by 5 per cent, achieving TFP growth above 5 per cent would still require value-added or revenue growth of more than 5 per cent.

Given the difficulty of achieving such growth through conventional textile manufacturing, the industry faces mounting pressure to identify new growth pathways. These could include RD of multifunctional advanced materials, circular materials, and strategic entry into niche sectors where large-scale global production has yet to emerge.

Policy recommendations

In line with these four solutions, the government should introduce strategic policies to incentivize businesses to act.

First, Vietnam should establish planning frameworks and incentives for large-scale raw materials production, supported by shared infrastructure and State-invested environmental treatment systems operated on a competitive fee basis. Policies should prioritize Vietnamese enterprises through long-term, low-interest financing, with investment in raw materials treated similarly to national infrastructure such as electricity, roads, airports, and ports. Preferential financing should be tied to commitments to supply the domestic market and reduce import dependence.

Second, authorities should allow existing production facilities in major cities to be converted into smart logistics hubs serving the fashion and textile industry. As part of urban restructuring, centrally-located factories could be repurposed into logistics centers, while businesses should receive incentives to invest in this transition. Support could include allowing firms to reinvest pre-corporate income tax profits and leveraging digital transformation programs from major State-owned enterprises (SOEs) such as Viettel and VNPT to provide logistics management platforms.

Third, the State should commission enterprises to research and develop new materials aligned with green transition trends and proprietary technologies. This would create new intangible value for the textile industry and reduce its reliance on pure price competition. Intellectual property rights for such technologies could remain with the State, while businesses would pay licensing fees for commercial application.

Fourth, the government should continue divesting State capital from SOEs and make the most of the next five years of growth potential driven by the flexibility of private enterprises. To 2031, opportunities will still exist to expand conventional manufacturing, making it important to unlock private sector dynamism through faster State divestment. Beyond 2035, as Vietnam develops foundational industries such as semiconductors, metallurgy, and mechanical engineering, policymakers could consider establishing new SOEs or assigning strategic mandates to technology leaders to drive innovation, equipment production, and RD for labor-intensive sectors.

Across East Asia, industrialization and the transition to high-income status in the 20th century generally began with labor-intensive, export-oriented industries that generated foreign exchange and provided higher-paying industrial jobs than agriculture. However, after around 30 years of development, most countries saw these sectors gradually decline in scale. China remains an exception, having leveraged economies of scale and timely technology adoption to transform industries such as textiles into more advanced production sectors rather than conventionally labor-intensive industries.

By improving productivity, reducing labor requirements per unit of output, and expanding participation across the textile value chain, China’s textile industry has remained competitive and continues contributing to growth despite the country’s high-income status. This offers an important lesson for Vietnam’s long-term strategy: rather than abandoning traditional labor-intensive sectors, the country should upgrade them into competitive industries suited to a higher-income economy through digital technologies, automation, and early adaptation to green transition trends.

VET-DR. LE TIEN TRUONG(*)

Expectations from a proposed housing development strategy

Sat, 06 Jun 2026 03:00:00 GMT

The inadequacies and failings of Vietnam’s housing market would be addressed by the proposed National Housing Development Strategy.

Vietnam’s housing market continues to be burdened by a range of chronic ailments - soaring prices, supply-demand imbalances, rampant speculation, and a shortage of long-term financing; all of which require an effective treatment plan. The proposed National Housing Development Strategy aims to address the root causes of the current housing system’s shortcomings through a new approach grounded in the “developmental State” model.

This is a long-term, large-scale program with far-reaching impact, requiring the highest level of political commitment and coordinated action across all levels of government and sectors. Its core objective is to restructure the housing market so that the vast majority of people can afford to own or rent homes aligned with their income levels, while also transforming housing into a driver of Vietnam’s sustainable socio-economic development.

Current problems

In reality, Vietnam’s housing market continues to suffer from deep-rooted structural problems, most notably severe imbalances reflected in the following.

Housing prices far outpacing incomes: In major cities around Vietnam, the house price-to-income ratio has climbed to 20-30 times annual income, far exceeding internationally-accepted affordability thresholds, where a ratio of roughly 5-7 times is considered healthy. As a result, home ownership is increasingly slipping out of reach for ordinary citizens, particularly younger generations in large urban centers, who face unprecedented financial pressure. This has raised concerns over the emergence of a “three-no generation” (not able to a buy a home, not wanting to marry, and not wanting to have children) with potentially negative implications for economic growth and social stability.

Land increasingly financialized, with speculation prioritized over real demand: Vietnam’s real estate market has long been shaped by speculative behavior, treating land as a financial asset for short-term gain rather than a place to live. Even unverified planning rumors can trigger land fever, as brokers and speculators inflate prices far beyond intrinsic value. As a result, capital is increasingly diverted into real estate instead of productive sectors and innovation, reinforcing a short-term, less sustainable economic model. This growing financialization of land has significantly distorted the market and heightened the risk of asset bubbles.

Housing supply heavily skewed toward the high-end segment: Developers have largely prioritized mid to high-end housing projects in recent years with higher profit margins, resulting in a severe shortage of affordable housing for the broader population. Since 2021, virtually no new commercial housing projects have introduced apartments considered “affordable” - priced below VND30 million ($1,155) per sq m. This imbalance is undermining the long-term stability and sustainability of the housing market.

Infrastructure lagging behind urban expansion needs: Urban transport infrastructure has not expanded quickly enough to open up new urban areas and create reasonably-priced land supply in suburban districts. Infrastructure bottlenecks continue to constrain housing supply growth, intensifying price pressures in central urban areas.

A lack of a large-scale, long-term rental housing market: Vietnam’s rental housing market remains underdeveloped and has yet to become a sustainable housing solution for the population. Rental rates remain relatively low - only around 10 per cent in urban areas, compared with more than 50 per cent in some developed countries - and are dominated by short-term, privately-arranged rentals. Professional, long-term rental products remain scarce, partly because Vietnam lacks a national policy framework and housing stock dedicated to long-term rental markets.

These structural shortcomings cannot be resolved through short-term administrative interventions or piecemeal support packages. Rather, they require a comprehensive, long-term strategy grounded in a new approach to fundamentally restructure the housing market. Addressing these systemic root causes will require adopting a “developmental State” model in housing policy.

Five principles

The “developmental State” model in housing policy is one in which the State plays a proactive role in guiding and shaping the market, rather than merely acting as a passive regulator or leaving the market to self-correct. This philosophy is reflected in five guiding principles for housing policy.

First, the State acts as the chief architect of the market, but does not replace it: The State serves as a supporter that fosters a healthy market environment, rather than subsidizing or replacing businesses. Under this model, the private sector remains the primary engine of growth, while the State provides direction and support through long-term planning, market-based tools, and macro-level oversight. In housing, this principle requires the State to proactively redesign the playing field, correcting existing distortions while allowing the market to operate according to competitive principles within a new framework.

Second, strategic land control for long-term development: In Vietnam, land is collectively owned and managed by the State. As such, the government must play an even more proactive role in ensuring land is allocated and used fairly and effectively. The planning and allocation of land for housing, particularly social housing, rental housing, and new urban areas, should be led by the State.

Strategic land areas, including public land and sites linked to future infrastructure plans, must remain under State oversight to prevent them from falling into the hands of speculators. This principle helps ensure land prices are not inflated far beyond real value by speculative booms, while safeguarding sufficient land reserves for long-term housing development programs.

Third, “Infrastructure first, housing follows”: A developmental State should proactively plan and build infrastructure, including roads, utilities, and public transport, in suburban and satellite areas with development potential. Once infrastructure is in place, businesses and residents will be more willing to relocate and settle there, helping create affordable new urban zones that ease pressure on inner cities.

Fourth, clearly separating the three housing markets: Commercial housing should operate at market prices, serving higher-income groups and developed by private enterprises under appropriate regulation. Social housing should provide low-cost options for lower-income households, supported by the State through land, financing, or incentives. A long-term rental housing market should meet the stable housing needs of young workers, migrants, and other groups. Such a segmented approach ensures that each housing category develops in a healthy manner, fulfills its intended role, and avoids overlap.

Fifth, mobilizing long-term capital to replace short-term credit: Large-scale and stable housing development requires long-term, low-cost capital rather than reliance on volatile short-term bank lending. The developmental State philosophy encourages the creation of long-term housing finance channels, including the issuance of 20-30-year bonds and mobilizing capital from insurance funds, pension funds, and long-term institutional investors. These funding sources are better aligned with housing’s long investment cycles (10-20 years) and can lower borrowing costs for homebuyers.

To translate this philosophy into practice, the Strategy proposes a series of new institutions and breakthrough policy tools aimed at restructuring the housing market in line with the developmental State approach.

Key institutional components include:

Establishing the National Housing Corporation (NHC): This body would concentrate resources to develop strategic housing projects, particularly 5-8 satellite cities surrounding major economic hubs. Specifically, the NHC would be tasked with managing and utilizing public land as well as land recovered through restructuring processes, such as stalled projects or urban redevelopment sites. Based on this land bank, the NHC would plan affordable large-scale urban developments, build essential infrastructure first, and then collaborate with private developers to construct housing. Through the NHC, the government expects to proactively deliver tens of thousands of reasonably priced housing units each year, helping guide housing prices toward more sustainable levels.

Tax reform and anti-speculation measures in real estate: This group of solutions seeks to “reset” market behavior, shifting incentives from speculation toward genuine housing demand. The Strategy proposes a progressive property tax on multiple-home ownership, with higher tax rates applied from the second home onward. At the same time, taxes would be imposed on vacant or underutilized land to penalize land hoarding and speculation, forcing owners either to put land into productive use or transfer it to others.

Conversely, first-time homebuyers purchasing for genuine residential use would receive tax reductions or exemptions, directly reducing the cost burden of home ownership. These tax policies would both generate budget revenue for reinvestment into social housing and help rebalance the market toward greater fairness.

Beyond taxation, a transparent and synchronized nationwide land database is also needed. Together, these measures could cool speculative activity, bring housing prices closer to their real-use value, and redirect social capital toward productive investment and genuine housing demand instead of speculative real estate cycles.

Segmentation and development of each housing market segment: As outlined in the philosophy, the Strategy will establish separate legal frameworks and dedicated programs for each housing segment. For commercial housing, the State will focus on refining legislation, including the Law on Housing, the Law on Real Estate Business, and the amended Land Law, to simplify investment procedures and improve planning transparency. This is intended to boost project supply, lower development costs, and help bring commercial housing prices to more reasonable levels. At the same time, market regulations (such as credit rules and risk-weighting ratios) will be strengthened to prevent the recurrence of speculative bubbles.

To support these institutions and housing development programs, the Strategy proposes a foundational medium to long-term financing model. This model is designed to address the capital challenge for affordable housing development through low and stable interest rates, while avoiding excessive reliance on the State budget or short-term credit.

The key components of the financing model include:

Issuance of National Housing Bonds: These bonds would carry maturities of 20-30 years, with target interest rates of 5-6 per cent annually; lower than conventional commercial lending rates. All funds raised would be channeled into the National Housing Development Fund to finance social housing projects and satellite urban developments, or provide preferential mortgage loans to homebuyers.

Preferential installment credit for homebuyers: Eligible groups (for example, buyers of social housing) would be able to borrow from the Fund at fixed interest rates of around 5-6 per cent over extended repayment periods of 20-25 years. The guiding principle is that monthly repayments should not exceed 30-35 per cent of household income, ensuring affordability. With low fixed rates, middle-income households would be able to purchase homes without facing the burden of high floating commercial interest rates.

Diversified funding sources and capital recycling: Beyond bonds, the Strategy encourages mobilizing an additional approximately 30 per cent of capital through voluntary savings schemes and other sources. These savings would not only encourage better financial habits among citizens but also contribute to the Fund’s resources. The model would operate through a closed-loop financing mechanism: revenues from housing sales or rentals, along with mortgage repayments from homebuyers, would flow back into the Fund to cover annual bond principal and interest payments, before being reinvested into new housing projects.

Implementation roadmap

To turn the strategic vision into reality, the Strategy sets out a phased implementation roadmap over ten years, accompanied by assessments of the feasibility of each step to ensure both rapid execution and sufficient flexibility for adjustment to changing circumstances.

Phase 1 (2026-2027) - Preparing the Legal and Institutional Framework: During the first two years, the priority will be to complete the legal framework and establish new institutions. Specifically, by 2026, laws and decrees on property taxation (including taxes on second homes and idle land) should be submitted and passed, while amendments to the Law on Housing and the Land Law (if not approved during 2024-2025) should be introduced to create a legal foundation for new policies. At the same time, the NHC should be established in 2026, with capable leadership selected and a specialized operating charter developed for the corporation.

In parallel, investment and construction procedures should be reformed by introducing streamlined approval mechanisms for social housing projects, allowing certain sub-procedures to be bypassed if projects are already included in government-approved plans. During this phase, the national land system should also be synchronized, integrating housing and property information with tax authorities.

Phase 2 (2027-2030) - Piloting and Launching Major Projects: Over the following three to four years, the Strategy will shift to implementing flagship projects in practice. By 2030, the goal is to launch 3-5 large satellite urban developments on the outskirts of Hanoi, Ho Chi Minh City, and several other major urban centers. The NHC, together with local authorities, will identify locations, prepare detailed master plans, and begin infrastructure construction for these developments.

At the same time, large-scale social housing and worker housing projects, particularly in industrial parks and export processing zones, will also be implemented with support from the National Housing Development Fund. This phase will be decisive in demonstrating the model’s effectiveness in practice. A key benchmark would be the completion, by 2028, of the first affordable apartment complexes developed by the NHC, with citizens able to purchase homes at preferential interest rates. If bottlenecks arise, the government should prioritize timely intervention and resolution.

Regarding financing, the first issuances of housing bonds will take place during this phase, beginning with smaller pilot offerings, approximately VND10-20 trillion ($385-770 million), to test market demand. If the bonds are well received, issuance could then be expanded.

Phase 3 (2030-2035) - Expanding and Completing the System: From 2030 onward, once pilot models have demonstrated results, the Strategy will be expanded nationwide. By 2035, the target is for 60 per cent of new housing supply to fall within the “affordable” segment (including social housing, NHC-developed housing, and mid-priced commercial housing).

Satellite urban areas launched in earlier phases will gradually be completed and begin welcoming residents, while additional urban developments may be planned in other key economic regions. The rental housing market will also begin to take shape: after 2035, Vietnam could develop a large-scale long-term rental market, supported by professional rental companies and REITs (real estate investment trusts) focused on rental housing, collectively providing hundreds of thousands of rental apartments.

Overall, the ten-year roadmap is designed to be practical and gradual. Quantitative targets, such as 1 million social housing units and 60 per cent affordable housing supply, are ambitious but realistic. For example, achieving 60 per cent affordable supply is entirely possible if policies successfully attract a large number of businesses to the segment alongside TNHC-developed products.

Most importantly, feasibility depends on sustained government commitment across administrations. This is a long-term strategy that requires consistency and perseverance in implementation. If policy priorities and resources are maintained, Vietnam could see a fundamentally-transformed housing market within a decade.

Combined coordination

To realize the Strategy, coordination across all levels and sectors will be required, particularly strong support from the government through the following measures.

Approving the strategic proposal and directing the issuance of a new legal framework: Immediately after the proposal is approved, relevant agencies should be tasked with drafting and submitting a law or resolution on property taxation (housing and land) in 2026 in line with the Strategy. At the same time, amendments to the Law on Housing, the Land Law, and the Law on Real Estate Business should be prioritized during the closest National Assembly session to establish the legal basis for implementation.

Piloting key flagship projects as demonstration models: The government should immediately select one or two locations near Hanoi (for example, Dong Anh or Hoa Lac) and one or two others near Ho Chi Minh City to launch National Housing Urban Area projects led by TNHC. By 2027, at least one pilot project, consisting of several thousand housing units with complete infrastructure and amenities, should break ground. These projects should receive maximum priority in financing and administrative procedures to complete the first phase within 2-3 years, creating public confidence and spillover momentum.

Issuing the first National Housing Bonds in 2027: The Ministry of Finance and the State Bank of Vietnam should coordinate preparations for the first issuance of housing bonds, proposed at around VND20 trillion ($769 million) with a maturity of 20 years. National leaders should approve a 100 per cent government guarantee for these bonds to reassure investors. At the same time, domestic insurance and pension funds should be directed to prioritize purchasing these bonds as part of their mandatory investment portfolios. Smooth mobilization of long-term capital will determine the Strategy’s financial success or failure.

Issuing a directive on rental housing market development: The Prime Minister could issue a dedicated directive instructing the Ministry of Construction to draft a Rental Housing Development Program for 2026-2035, including specific incentives for businesses investing in rental housing, frameworks for rental REITs, and legal reforms to strengthen tenant protections. This would be an important preparatory step toward developing a large-scale rental market after 2030.

Strengthening communications and building consensus: Public consensus will be essential for smooth implementation, particularly regarding the introduction of new taxes and the mobilization of resources.

Regular monitoring, evaluation, and flexible adjustments: The Ministry of Construction should lead the development of a KPI framework to assess the Strategy’s results, including indicators such as reductions in house price-to-income ratios, the number of affordable housing units built, and buyer satisfaction with social housing. Annual reports should be submitted to the government and National Assembly, allowing policies to be adjusted in a timely manner.

Housing should not only be viewed as a social welfare issue but also as essential infrastructure for national development, comparable to roads and electricity grids. Restructuring the housing market through a developmental State model would lay the foundation for sustainable economic growth, social stability, and higher long-term productivity in Vietnam.

With the decisive actions outlined above, Vietnam can confidently embark on comprehensive housing market reform. The next decade will be pivotal in enabling millions of Vietnamese families to secure stable housing, contributing to a more prosperous and equitable society. The National Housing Strategy 2026-2035 represents the Party’s and the State’s commitment to ensuring that no one is left behind in the country’s development journey, and that every citizen has the opportunity to secure suitable housing and a better quality of life.

This is not merely an economic and social policy, but also a humanitarian mission for the country’s future. We respectfully urge the government to consider approving the proposal and directing the coordinated implementation of the measures outlined above to bring the Strategy into reality.

VET- Dao Quang 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

Solutions for advancing science and technology

Thu, 04 Jun 2026 10:00:00 GMT

A host of solutions are available for Vietnam to advance science, technology, and innovation in support of industrialization and modernization.

Politburo Resolution No. 57-NQ/TW, dated December 22, 2024, marked a major turning point for science, technology, and innovation in Vietnam. Beyond setting ambitious goals, the Resolution identified science and technology as key drivers of the country’s breakthrough development in the new era. As Vietnam’s economic structure continues to evolve, applying science and technology to industrialization and modernization has become essential to achieving sustainable growth.

Vietnam’s economy is steadily shifting away from agriculture, forestry, and fisheries toward greater contributions from industry, construction, and services. According to the National Statistics Office at the Ministry of Finance, GDP growth reached 8.02 per cent in 2025, with GDP per capita rising to $5,026 and the economy expanding to approximately $514 billion. The sustained contribution of Total Factor Productivity (TFP) to growth in recent years provides a strong foundation for a transition toward a science, technology, and innovation-led growth model.

A combination of institutional reform, strategic technologies, multipolar international cooperation, large-scale transport and energy infrastructure, a modern industrial workforce, highly-skilled talent, and a strong science and technology business ecosystem will provide the foundation for Vietnam to meet its industrialization and modernization targets by 2030 and achieve developed, high-income status by 2045, in line with Politburo Resolution No. 57 and Resolution No. 29-NQ/TW, issued on November 17, 2022.

To strengthen science, technology, and innovation in support of industrialization and modernization, six groups of actions should be implemented simultaneously during the 2025-2030 period.

Finalizing and implementing the new legal framework

Vietnam must move quickly to finalize and implement its new legal framework for science, technology, and innovation, centered on Law No. 93/2025/QH15, National Assembly Resolution No. 193/2025/QH15, and Law No. 71/2025/QH15. Priority should be given to special mechanisms covering financing, procurement, ownership of research outcomes, and greater tolerance for research-related risks.

Politburo Resolution No. 57 targets TFP contributing more than 55 per cent of economic growth, the digital economy at least 30 per cent of GDP, RD spending reaching 2 per cent of GDP, and at least 3 per cent of annual State budget expenditure allocated to science, technology, innovation, and national digital transformation.

These goals are aligned with the long-term direction of Resolution No. 29, which sets out Vietnam’s industrialization and modernization roadmap through 2030, with a vision to 2045.

To translate Politburo Resolution No. 57 into practice, the 15th National Assembly introduced a series of key legal instruments in 2025. These include Resolution No. 193/2025/QH15, dated February 19, 2025, piloting special mechanisms to accelerate science, technology, innovation, and digital transformation; the Law on Science, Technology and Innovation (Law No. 93/2025/QH15), passed on June 27, 2025; and the Law on Digital Technology Industry (Law No. 71/2025/QH15), approved on June 14, 2025. Together, they form the core legal foundation for institutional breakthroughs during the 2025-2030 period.

The framework was further strengthened by Decision No. 21/2026/QD-TTg, issued by the Prime Minister on April 30, 2026, and effective from July 1, 2026, replacing Decision No. 1131/QD-TTg. The Decision established Vietnam’s list of strategic technologies and strategic technology products, covering ten technology groups and 30 priority products to focus national resources on key breakthroughs.

Together with Decision No. 569/QD-TTg on the Strategy for Science, Technology and Innovation Development through 2030, semiconductor industry policies, and Resolution No. 172/2024/QH15 approving the North-South high-speed railway investment policy, Vietnam has put in place a broadly comprehensive legal foundation for its next stage of development.

Prioritizing resources for strategic technologies

Vietnam should move quickly to channel resources toward strategic technologies that can drive industrial upgrading, productivity, and long-term competitiveness.

Decision No. 21/2026/QD-TTg, issued by the Prime Minister on April 30, 2026, and effective from July 1, 2026, replaced Decision No. 1131/QD-TTg and formally introduced Vietnam’s updated List of Strategic Technologies and Strategic Technology Products. Covering ten technology groups and 30 priority products, the framework provides the country’s most detailed and legally-binding roadmap for directing budget allocation, tax incentives, credit, land access, and international cooperation during the 2026-2030 period.

The ten strategic technology groups include digital technologies, such as AI, big data, digital twins, cloud and edge computing, the Internet of Things (IoT), and blockchain, alongside next-generation mobile networks, robotics and automation, advanced biotechnology and biomedicine, energy and advanced materials, semiconductors, cybersecurity and quantum technologies, marine and sub-surface technologies, aerospace, and high-speed and urban rail systems. A key addition compared with the previous framework is the inclusion of high-speed and urban railway technologies, reflecting Resolution No. 172/2024/QH15 on the North-South high-speed railway project.

The accompanying product list divides 30 priority technologies into two tiers. The first consists of 22 market-ready products with immediate economic impact, including Vietnamese large language models, cloud platforms, 5G/5G-Advanced systems, batteries and battery energy storage systems (BESS), green hydrogen, industrial robotics, and unmanned aerial vehicles (UAVs). The second tier includes eight technologies aimed at creating new growth engines and strengthening strategic autonomy, such as specialized semiconductor chips, quantum technologies, rare earth and advanced mineral processing, Small Modular Reactors (SMRs), low-Earth orbit satellites, and high-speed railway systems.

This two-tier structure creates a clearer policy focus. Technologies with established markets should be deployed rapidly to support productivity and industrial growth, while strategic technologies with longer development cycles require sustained state backing to build national self-reliance.

The framework also helps clarify resource allocation. Market-ready technologies should rely more heavily on private investment and public procurement under Law No. 71/2025/QH15, while strategic autonomy technologies should receive stronger support from the State budget and targeted commissioning under Resolution No. 193/2025/QH15.

Public procurement will be critical to turning this strategy into reality. Government agencies, State-owned enterprises (SOEs), and large infrastructure projects in transport, energy, healthcare, and defense should allocate part of their technology budgets, proposed at a minimum of 10-15 per cent, to domestically-developed strategic technologies, in line with Law No. 93/2025/QH15 and Law No. 71/2025/QH15. Stable demand from public buyers can help stimulate RD and domestic production, following models used effectively in countries such as the US, China, South Korea, and Russia through major defense and infrastructure programs.

International cooperation strategy

Cooperation strategies have been established under the CHIPS Act and with university-industry networks in the US; with Zhongguancun, Shenzhen, and China’s supply chains; with Rosatom, MEPhI, Skoltech, and the Ninh Thuan project with Russia; with the Yongin cluster and South Korea’s “developmental State” model; with Taiwan (China’s)’s Industrial Technology Research Institute (ITRI); with Israel’s startup ecosystem and Yozma 2.0 Fund; with Singapore’s RIE2025 strategy; and via partnerships with the EU, Japan, and Australia in education, basic research, and energy.

Cooperation between Vietnam and Russia in nuclear energy has been relaunched at the government level. According to the Ministry of Industry and Trade, Vietnam and the Russian Federation signed an intergovernmental agreement on March 23 to develop the Ninh Thuan 1 Nuclear Power Plant in Vietnam. The project will deploy two third-generation-plus VVER-1200 pressurized water reactor units with a combined capacity of approximately 2,400 MW.

World Nuclear News reported that the project will be modeled on the new reactor units at the Leningrad Nuclear Power Plant, with Rosatom serving as the principal technology contractor. Beyond power generation, the agreement presents a strategic opportunity for Vietnam to access advanced nuclear technology while deepening cooperation in training, research, and technology transfer in areas such as nuclear physics, materials science, control engineering, and radiation safety.

Russia also maintains longstanding strengths in fields relevant to Vietnam, including nuclear physics, plasma and laser science, vaccine technology, agriculture in harsh environments, theoretical mathematics and physics, and engineering education.

Decades of educational and scientific cooperation between Vietnam and the former Soviet Union, and later the Russian Federation, have created a large network of Vietnamese experts trained at Russian universities, research institutes, and corporations. Many now work in Vietnam or are part of the overseas Vietnamese community, representing a valuable talent pool that could be mobilized through bilateral science and technology partnerships and talent-attraction mechanisms under Law No. 93/2025/QH15.

Parallel energy and science-technology programs

A central reality of the digital age is that science, technology, and energy can no longer be developed separately. As the digital economy, AI, and advanced manufacturing become major growth drivers, energy security and technological security are increasingly intertwined. Data centers, semiconductor fabs, 5G/6G networks, and AI systems all depend on stable, large-scale, and low-emission electricity supplies. This link should be reflected in all science, technology, and energy planning from 2025 onward.

On April 15, 2025, the Deputy Prime Minister approved Decision No. 768/QD-TTg revising the National Power Development Plan for 2021-2030, with a vision to 2050 (National Power Development Plan VIII, or PDP8). The plan aims to strengthen national energy security while supporting economic growth. Commercial electricity demand is projected to reach 500.4-557.8 billion kWh by 2030 and 1.238-1.375 trillion kWh by 2050. Installed power capacity for domestic demand is expected to rise to 183,291-236,363 MW by 2030 and 774,503-838,681 MW by 2050.

PDP8 outlines a more diversified and lower-emissions energy mix by 2050. Solar power is expected to account for 35.3-37.8 per cent of total capacity, offshore wind 14.7-16.6 per cent, onshore and nearshore wind around 10.9 per cent, nuclear power 1.4-1.7 per cent, hydropower 4.8-5.2 per cent, and battery energy storage systems (BESS) 11.5-12.4 per cent. The remainder will come from gas-fired power, biomass, converted coal facilities, imports, and other sources. Renewable energy, excluding hydropower, is projected to account for 28-36 per cent of capacity by 2030 and as much as 74-75 per cent by 2050. Investment in the power sector during 2026-2030 is estimated at approximately $136.3 billion.

Within this structure, nuclear power and liquefied natural gas (LNG) will remain essential to ensuring stable baseload and backup supply. Ninh Thuan 1 and Ninh Thuan 2 are expected to deliver a combined capacity of 4,000-6,400 MW between 2030 and 2035, including two initial VVER-1200 reactors with total capacity of 2,400 MW. LNG power, projected to account for roughly 3.5 per cent of total capacity by 2050, will provide flexible backup for intermittent renewable energy.

To better align energy and science-technology development, Vietnam should focus on four priorities. First, AI data centers, semiconductor fabs (fabrication plants), and high-tech zones should be planned alongside baseload power projects, including nuclear, LNG, and 500 kV transmission networks, to ensure electricity is available when technology facilities come online. Second, the strategic technology list under Decision No. 21/2026/QD-TTg should give greater priority to enabling energy technologies, including advanced materials, battery storage, smart grids, and high-voltage direct current (HVDC) systems. Third, Vietnam should develop a joint workforce pipeline combining energy engineering and information technology skills to address severe global shortages in talent for data centers and semiconductor manufacturing. Fourth, financing mechanisms under Resolution No. 193/2025/QH15 should be extended to integrated energy-technology projects, rather than limited to standalone science and technology initiatives.

In a world where AI models, large language models, and semiconductor fabs function as electricity-intensive systems, Vietnam cannot realistically aim to become a regional technology hub without matching power capacity. Developing science, technology, and energy in parallel is therefore not simply a policy ambition, but a prerequisite for long-term growth.

Triangular innovation ecosystem

Vietnam should accelerate the development of an integrated innovation ecosystem linking universities, research institutes, businesses, and the State. This includes building 5-10 internationally-competitive research universities, restructuring major institutes into institute-industry partnerships, identifying lead technology firms in strategic sectors, and developing 2-3 integrated high-tech zones with clear regional specialization.

A common lesson from the US, South Korea, Taiwan (China), Israel, and China is that innovation ecosystems succeed only when research universities, institutes, technology companies, and governments work closely together. In Vietnam, however, these actors have largely operated in silos over the past three decades, constrained by legal and financial barriers between public research and private industry. Politburo Resolution No. 57-NQ/TW and Law No. 93/2025/QH15 have created a founzdation to address these gaps, but the priority for 2026-2030 is to turn policy into workable institutional models.

Vietnam should focus resources on developing 5-10 leading research universities to international standards. Potential candidates include the Hanoi University of Science and Technology, Vietnam National University Hanoi, Vietnam National University Ho Chi Minh City, the Ho Chi Minh City University of Technology, the University of Danang, the Vietnamese-German University, VinUniversity, and other institutions with comparable research capacity.

At the same time, major public research institutes, particularly the Vietnam Academy of Science and Technology (VAST) and the Vietnam Academy of Social Sciences (VASS), should be restructured toward institute-industry partnership models inspired by Taiwan (China)’s ITRI and Russia’s Skoltech, with stronger commercialization and business collaboration.

On the industry side, Vietnam should identify 5-10 lead enterprises in each strategic technology category under Decision No. 21/2026/QD-TTg to serve as national technology champions. These firms should commit at least 3 per cent of annual revenue to RD and support the growth of domestic supply chains. In return, they should receive access to research commissioning, risk-sharing mechanisms, venture financing incentives, and public procurement support under Resolution No. 193/2025/QH15.

To coordinate this ecosystem, Vietnam should establish a National Science and Technology Council with cross-sector authority, bringing together representatives from the Ministry of Science and Technology, leading universities, major institutes, flagship enterprises, and independent experts. The council would advise the government on strategic technology priorities, RD funding, and the implementation of national technology missions.

Highly-skilled workforce

Building a highly-skilled workforce will be critical to achieving Vietnam’s science, technology, and innovation ambitions. A flagship priority should be training 50,000 semiconductor engineers by 2030, centered on six leading universities, while strengthening efforts to attract overseas Vietnamese talent and foreign experts. At the same time, industrial practices such as 5S, Kaizen, Just-in-Time (JIT), Genchi Genbutsu, Hansei, and Shokunin should be integrated into vocational training and business management.

In the semiconductor sector, Decision No. 1017/QD-TTg, approved on September 21, 2024, established a national workforce program targeting at least 50,000 engineers by 2030, with a vision to 2050. Complementing this, Decision No. 1018/QD-TTg approved Vietnam’s Semiconductor Industry Development Strategy, focused on three pillars: chip design, packaging and testing, and semiconductor manufacturing.

To improve effectiveness, the 50,000-engineer target should be divided into three skill groups. Around 15,000 engineers should be trained in integrated circuit (IC) design through leading domestic universities and internships at international design centers. Another 25,000 engineers should focus on assembly, testing, outsourced semiconductor assembly and test (OSAT), and production-line operations, linked to major investors such as Amkor, Hana Micron, and Samsung.

Vietnam should also launch workforce programs for other strategic technologies, linked to domestic research universities, leading international institutions, technology firms, and global organizations. Three talent channels should be developed in parallel: international-standard training in Vietnam supported by scholarships, overseas education tied to return commitments, and stronger recruitment of overseas Vietnamese professionals and foreign experts through reforms under Law No. 93/2025/QH15 and related regulations.

Together, institutional reform, strategic technologies, diversified international cooperation, modern infrastructure, industrial discipline, skilled talent, and a strong science and technology business ecosystem can provide the foundation for Vietnam to achieve its industrialization and modernization goals by 2030 and become a developed, high-income country by 2045, in line with Politburo Resolution No. 57-NQ/TW and Resolution No. 29-NQ/TW.

(*)Professor Nguyen Quoc Sy is from the National Research University, Moscow Power Engineering Institute, in the Russian Federation, and Director of the VinIT Institute of Technology.

VET-Professor Nguyen Quoc Sy(*)

[Interactive]: Economic overview - May 2026

Thu, 04 Jun 2026 07:30:00 GMT

An overview of Vietnam's economy in May and the first five months of 2026.

-Vietnam Economic Times/ VnEconomy

Impact of digital economy on Vietnam’s overall growth

Thu, 04 Jun 2026 03:30:00 GMT

Vietnam’s overall growth in the years ahead is certain to be largely driven by the performance of its digital economy.

The development of Vietnam’s digital economy in recent years has been guided by a relatively comprehensive and consistent policy framework, serving as a roadmap for the country’s transition toward a new growth model. The key political foundation was established through Politburo Resolution No. 52-NQ/TW in 2019, which identified digital transformation as an inexorable trend and set targets for the digital economy to account for approximately 20 per cent of GDP by 2025 and more than 30 per cent by 2030, with a long-term vision of positioning Vietnam as a regional innovation hub by 2045.

To implement these goals, the government introduced a range of major programs and strategies, including the National Digital Transformation Program under Decision No. 749/QD-TTg in 2020, the Strategy for Digital Economy and Digital Society Development under Decision No. 411/QD-TTg in 2022, and new policy directions under Politburo Resolution No. 57-NQ/TW in 2024.

Current situation

Vietnam’s digital economy expanded significantly between 2020 and 2025, with its share of GDP increasing from 12.66 per cent to approximately 14.02 per cent, equivalent to a market size of more than $70 billion. Value-added growth in the digital economy remained strong, averaging around 9.8 per cent annually in constant prices.

By 2025, core digital economy industries contributed 8.42 per cent of GDP, equivalent to $43.3 billion, accounting for more than 60 per cent of total digital economy value, while digitally-enabled sectors contributed 5.6 per cent of GDP (equivalent to $28.8 billion), representing nearly 40 per cent.

Geographically, Vietnam’s digital economy remains highly concentrated. Industrial provinces such as Bac Giang, Bac Ninh, and Thai Nguyen in the northern region lead in the digital economy’s share of gross regional domestic product (GRDP), largely driven by electronics manufacturing and high-tech industries linked to FDI. Meanwhile, major urban centers such as Hanoi, Ho Chi Minh City, and Da Nang contribute more in absolute scale and play a central role in driving digital transformation, particularly in services, e-commerce, platform-based businesses, and smart urban management. This reflects an emerging two-pillar structure: one centered on high-tech manufacturing and the other on services and innovation.

At the sectoral level, core digital economy industries, particularly high-tech manufacturing and information and communications, continue to dominate with high levels of digital value creation. Service sectors such as wholesale and retail trade, finance, banking, and insurance have also seen rapid digitalization, fueled by the growth of e-commerce, fintech, and big data. In contrast, agriculture and construction continue to lag behind, reflecting barriers related to production models, scale, and technological capacity.

Overall, Vietnam’s digital economy is progressing positively but unevenly, with clear disparities across sectors and regions. While early achievements are notable, the digital economy has yet to drive a breakthrough in the quality of economic growth, particularly in productivity and domestic spillover effects. This highlights the need to further strengthen institutions, build domestic technological capabilities, and accelerate digital transformation across the broader economy.

Vietnam’s core digital economy, comprising ICT manufacturing and ICT services, has consistently remained the backbone of the country’s digital sector, accounting for more than 60 per cent of total digital economy value throughout the study period. This reflects a growth model driven primarily by industries that directly produce digital goods and services, while digitalization across traditional sectors has progressed more slowly and unevenly.

Impact on the broader economy

Between 2012 and 2025, the core digital economy expanded rapidly in scale, with its share of GDP rising steadily. However, improvements in growth quality were far more modest. Expansion was driven mainly by higher output rather than stronger value creation, while gains in domestic income and productivity remained limited. In other words, the core digital economy has grown larger but has yet to become a structural engine of growth. Despite its dominant share of digital economy value, its spillover effects have remained moderate and insufficient to fundamentally reshape Vietnam’s growth model.

This is reflected in the sector’s relatively low value-added performance. During 2012-2025, the ratio of value-added to gross output in the core digital economy consistently remained below the national average. Though modest improvements emerged after 2019, they were not strong enough to alter the sector’s underlying dependence on scale-driven growth rather than efficiency or domestic value creation.

The challenge is most visible in information and communications technology (ICT) manufacturing, which remains highly-dependent on imported intermediate inputs. Vietnam’s role in global value chains is still concentrated in lower-value activities such as assembly and contract manufacturing, while higher-value functions, including RD, core technology design, and intellectual property ownership, largely remain outside the domestic economy.

By contrast, ICT services show stronger growth quality, with higher value-added and greater domestic income generation. However, because the sector remains relatively small compared with ICT manufacturing, its positive impact has not been sufficient to offset broader structural weaknesses in the core digital economy.

Input-output analysis for 2012-2025 shows that the core digital economy can stimulate upstream industries, with output multipliers exceeding 1 in most years. This suggests that rising demand for digital goods and services generates some spillover effects across supplier sectors. However, these backward links have shown little improvement over time and remain weaker than those in major sectors such as manufacturing and construction, limiting the digital economy’s role as a leading growth engine.

Forward links are even weaker. Throughout 2012-2025, indicators remained below 1 and declined in relative terms, suggesting that digital products and services have not yet become widely used as foundational inputs across the broader economy. This highlights the still-limited pace of digitalization in production and services and underscores the fact that the core digital economy has yet to function as shared technological infrastructure.

A more fundamental structural issue is that spillovers to imports consistently exceed spillovers to domestic value-added and income, reflecting Vietnam’s relatively low position in global value chains. In practice, the current model resembles a form of “high-end outsourcing”: rising demand for ICT products and services tends to boost imports more than domestic production.

This pattern is particularly evident in ICT manufacturing, while ICT services display more positive spillover dynamics. Yet because of their smaller scale, these benefits remain insufficient to shift the overall trajectory of the digital economy.

The research also highlights important implications for household welfare. First, although the digital economy creates jobs, income gains have not translated proportionally into domestic consumption. High intermediate costs and low value-added reduce the share of income ultimately reaching households. Second, consumption is increasingly sustained by non-productive income sources, such as remittances and transfers, rather than productivity gains within the digital economy itself, raising concerns about long-term sustainability. Third, weak domestic feedback loops reduce the effectiveness of government stimulus, as spending quickly leaks into imports and remains heavily dependent on FDI instead of circulating back into domestic production.

Overall, Vietnam’s core digital economy made an important contribution to growth during 2012-2025 but has yet to become a structural driver of sustainable and inclusive development. Weaknesses in growth quality, intersectoral links, and domestic spillover effects have persisted for more than a decade. The central challenge for Vietnam is therefore not the pace of digital economy growth but its ability to convert that growth into stronger domestic value-added, higher incomes, and productivity gains.

Policy recommendations

Vietnam’s digital economy strategy through 2030 should be viewed not merely as the digitalization of existing activities, but as a structural transformation in which digital technology becomes a core production factor, shaping productivity, growth quality, and national competitiveness. To achieve the target of a digital economy contributing around 30 per cent of GDP by 2030, development efforts should focus on three interconnected pillars.

First, the core digital economy must move from outsourcing to technological ownership. Rather than focusing solely on scale, policy should prioritize higher value-added through the “Make in Vietnam” strategy, with an emphasis on semiconductors, 5G/6G technologies, and national digital platforms. Shared digital infrastructure, including cloud computing, AI, and digital identity systems, will be essential to strengthening domestic competitiveness and reducing external dependence.

Second, digitalization must deepen across industries. Key sectors such as finance, retail, logistics, and agriculture should shift from basic technology adoption to data- and AI-driven operating models. Digital finance and fintech can improve capital allocation, while smarter retail and logistics systems can strengthen supply chains. High-tech agriculture, meanwhile, can raise productivity and export value.

Third, digital governance must become the institutional foundation of the digital economy. Transitioning from e-government to data-driven digital government can reduce compliance costs, improve transparency, and strengthen public resource allocation. Data should be treated as a strategic asset, supported by interoperable systems connecting ministries, agencies, and local governments.

These pillars will only succeed if supported by wider technological and spatial development. Investment in digital infrastructure, data centers, and digital growth hubs in major cities should be paired with stronger spillover effects to surrounding regions. In this way, the digital economy can serve not only as a growth engine but also as a means of narrowing regional disparities.

Regarding institutional and regulatory reform, a smarter, leaner, and more effective public administration system is essential. This includes streamlining procedures, improving governance efficiency, and expanding online dispute resolution mechanisms. Vietnam should also introduce a dedicated Digital Economy Development Program through 2030 to translate broad goals into concrete targets for infrastructure, talent development, and innovation policy.

At the same time, legal frameworks must become more adaptive. Stronger implementation of laws on electronic transactions, consumer protection, and personal data protection will help address emerging digital risks. Support policies for “Make in Vietnam” products, including RD tax incentives and preferential public procurement, should also be expanded to strengthen domestic firms.

In regard to supporting strategic technology industries, priority technology sectors require more targeted support. Software and digital content industries, for example, should benefit from tax incentives and technical safeguards to compete more effectively in cross-border markets. Policy support should shift from broad-based incentives to performance-based mechanisms that reward RD and the development of Vietnamese technology brands. Stronger intellectual property protection will also be essential to encourage long-term investment. Meanwhile, public procurement policies should prioritize domestic digital solutions through transparent technical standards and clear evaluation criteria.

In restructuring the core digital economy, Vietnam should adopt differentiated strategies for ICT manufacturing and ICT services. ICT manufacturing should focus on raising localization rates and moving into higher-value activities such as design and product development, supported by stronger industrial links and technology transfer requirements in FDI policy. High-tech FDI should be selectively attracted and tied to commitments that strengthen domestic suppliers and factory digitalization. ICT services, by contrast, should become a key source of domestic income growth, with AI, big data, and cybersecurity positioned as strategic priorities for modernizing the wider economy.

Regarding accelerating digitalization across sectors and regions, technology diffusion should be strengthened to spread innovation from major urban hubs to less-developed localities. Greater digitalization in manufacturing and logistics, supported by real-time data systems and preferential financing for shared infrastructure, can improve productivity and supply chain resilience. Sector-specific priorities should include open banking in finance, digital heritage databases in tourism, and precision agriculture to raise efficiency and competitiveness. Expanding nationwide e-commerce, supported by digital payments and export facilitation, will also be important. At the same time, policies should ensure balanced regional development and inclusive growth, creating higher-value jobs and stronger domestic spillovers.

In regard to supporting business digital transformation, a stronger startup ecosystem is needed to increase the number of firms capable of developing and owning advanced technologies. Support policies should be tailored by business size, with smaller firms receiving easier access to financing and training, while larger firms lead investment in digital infrastructure. Commercial banks should also improve access to capital by recognizing intangible assets and trademarks as collateral. At the local level, wider 5G coverage and stronger digital infrastructure should be accompanied by more transparent online public services to reduce costs and administrative burdens for businesses.

Regarding human capital and changes in mindset, digital transformation will require a fundamental shift in leadership and workforce capabilities. Policymakers and business leaders should receive stronger support through training, exhibitions, and international engagement programs to modernize management approaches. Leading cities such as Hanoi, Ho Chi Minh City, and Da Nang can play a pioneering role in regional coordination and cross-sector collaboration. Education reform is equally important. Digital skills should be introduced early in schools, university curricula updated to reflect AI and advanced technologies, and open labor market databases developed to better connect workforce supply with demand.

In cybersecurity and managing risks, stronger cybersecurity measures will be critical to sustainable digital development. Information security should be treated as a national priority, with cybersecurity embedded into products and systems from the design stage. Vietnam should also expand international cooperation to share experience and best practices in the context of Industry 4.0. Finally, stronger legal safeguards are needed to address privacy violations and cyber risks. Social protection policies should support workers displaced by technological change, while better e-waste management will be essential to ensuring long-term sustainability.

(*)Professor To Trung Thanh, National Economics University, and Dr. Bui Trinh Dr. Nguyen Viet Phong, National Statistics Office, Ministry of Finance.

VET-Professor To Trung Thanh colleagues (*)

Science and technology in need of more financial sources

Wed, 03 Jun 2026 10:00:00 GMT

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

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

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

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

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

Current state of financial resource mobilization

RD investment

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

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

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

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

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

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

Financial support uptake

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

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

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

Assessment and policy implications

Progress made and remaining constraints

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

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

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

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

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

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

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

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

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

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

Policy recommendations

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

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

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

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

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

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

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

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

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

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

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

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

VET-Associate Professor Vu Sy Cuong(*)

Vietnam Economic Times June, 01 2026

Wed, 03 Jun 2026 06:30:00 GMT

Vietnam Economic Times Issue 459 | Monday, June 01 2026

Dear readers,

As mentioned in last week’s edition of Vietnam Economic Times, in order to achieve the goal of making Vietnam a developed, high-income country by 2045, a pressing requirement is to strongly reform the country’s development model as it enters the new era.

To meet this requirement, the Central Commission for Policy and Strategy is preparing a project entitled “Reforming Vietnam’s Development Model Based on Science, Technology, Innovation, and Digital Transformation.” The associated national scientific conference on the topic, hosted by the Commission in Hai Phong on May 26, achieved unexpected results and represented an important step forward for the endeavor.

In his opening speech, Mr. Nguyen Thanh Nghi, Politburo Member, Secretary of the Party Central Committee, and Chairman of the Central Commission for Policy and Strategy, emphasized that the documents from the 14th Party Congress confirmed the need to reform the national development model toward modernization, sustainability, digitization, and knowledge-based approaches, with science, technology, innovation, and digital transformation serving as the main driving forces for the country’s rapid and sustainable development.

As a result, the conference clarified the theoretical foundations for and domestic and international experience in a national development model, while focusing on reforming Vietnam’s model, with science, technology, innovation, and digital transformation serving as a foundation.

The conference also assessed the current state of Vietnam’s development model after 40 years of implementing the “Doi Moi” (Economic Renewal) policy, emphasizing that the guideline for reforming the model based on science, technology, innovation, and digital transformation approved by the 14th National Party Congress will act as a foundation for reshaping a new model for the country.

Based on this, the conference established the main contents of the national development model for the 2026-2045 period, while proposing objectives, roadmaps, tasks, and solutions for reforming the model based on science, technology, innovation, and digital transformation.

Mr. Doan Minh Huan, Politburo Member and Director of the Ho Chi Minh National Academy of Politics, affirmed that the results of the gathering have initially helped “shape a relatively systematic framework of understanding about the national development model in the new era, in which science, technology, innovation, and digital transformation play a foundational role, serving as the central driving force for modern national governance and reforming development methods.”

To provide readers with updated information on Vietnam’s policy for reforming its national development model in the new era, our Cover Story in this edition reflects on and analyzes matters discussed at the conference, with a view to clarifying the concept of a new development model and its structural framework and specific components, to distinguish it from the growth model, while highlighting the theoretical and practical significance of the research results for the new development model in the process of planning and organizing the implementation of development strategies, with the ultimate goal of securing consensus, both theoretically and perceptually, on shaping the new development model for the country based on science, technology, innovation, and digital transformation, along with breakthrough solutions in many aspects, primarily institutional reforms to enable development.

Warmest regards

Dr. CHU VAN LAM
CHAIRMAN OF THE EDITORIAL BOARD

VET-Vietnam Economic Times - VnEconomy

Critical connections between FDI and domestic enterprises

Wed, 03 Jun 2026 04:00:00 GMT

Renewed efforts in harnessing potential synergies between FDI and domestic enterprises are now crucial for Vietnam’s new phase of development.

Despite posting strong economic growth in 2025 and record-high exports, Vietnam’s economy still faces several notable structural imbalances that are slowing economic restructuring and improvements in growth quality.

A striking paradox persists: the economy is capital-starved, yet available capital is not effectively utilized. While the government continues to call on the international community to recognize Vietnam as a market economy, many policy decisions still lean toward administrative intervention and direct control over prices, credit, and resource allocation rather than allowing supply-demand mechanisms and market instruments to operate.

Meanwhile, domestic enterprises remain predominantly small and micro-sized. Owing to the absence of a fair competitive environment, many businesses are reluctant to scale up, leaving the domestic business sector unable to strengthen its capacity in line with the economy’s pace of development. These structural imbalances stem from ideological constraints and fundamental shortcomings in economic institutions, posing considerable challenges ahead and slowing economic restructuring and improvements in growth quality.

The structure of the economy and the business sector is evolving in ways that diverge from the common trajectory of market economies. The service sector has expanded rapidly, while industry, particularly manufacturing and processing, has not become strong enough to play a leading role. A subcontracting-based economy remains prevalent, characterized by low technological content, dependence on imported raw materials, weak domestic branding and supply chains, and limited competitiveness.

Foundation out of balance

The number of businesses has not increased as expected over the past decade, while the structure of enterprises has failed to align with the development needs of the economy and integration into global value chains. As of December 31, 2025, Vietnam had 1.017 million active enterprises, of which service-sector companies accounted for 69.15 per cent. Within the service sector, wholesale and retail trade, and the repair of automobiles, motorcycles, motorbikes, and other motor vehicles represented 51.7 per cent.

FDI enterprises continue to expand, but links with domestic firms remain limited, meaning growth may be high while the economy’s internal foundation remains weak.

Breaking the vicious cycle between domestic enterprises, FDI enterprises, and the economy’s internal capabilities is therefore not only an immediate requirement but also a strategic challenge that will determine Vietnam’s ability to upgrade its growth model and position itself higher in global value chains.

In 2025, Vietnam’s economy recorded growth of 8.02 per cent, among the highest in the region, while total export turnover reached $475.04 billion, up 17 per cent from the previous year. These figures reflect the economy’s resilience and recovery capacity despite the lingering effects of the Covid-19 pandemic and prolonged geopolitical instability.

However, beneath this growth story lies a concerning reality. Export turnover by the domestic economic sector totaled only $107.95 billion, accounting for 22.7 per cent and declining 6.1 per cent year-on-year. By contrast, the FDI sector reached $367.09 billion, up 26.1 per cent and accounting for 77.3 per cent of total exports. Vietnam recorded a merchandise trade surplus of $20.03 billion, of which the FDI sector generated a surplus of $49.46 billion, while the domestic sector posted a trade deficit of $29.43 billion. Though total exports increased, the relative contribution of domestic firms continued to shrink.

The question is no longer whether the economy is growing, but rather: how strong is growth in each sector, which sector is driving it, and how are the capacities of different economic sectors changing as the country develops? It is precisely this divergence between the domestic sector and the FDI sector that raises questions about the underlying logic of Vietnam’s growth structure.

Two development trajectories

In reality, Vietnam’s economy is increasingly forming a distinctly dual-track structure. The FDI sector continues to drive exports, integrate deeply into global value chains, and capture higher value-added stages of production. In contrast, domestic enterprises remain concentrated in service industries geared toward final consumption - sectors with rapid capital turnover but limited technological and production capacity.

The difference lies not only in scale, but in the nature of productive capacity. Though both sectors operate within the same economy, they are following two nearly separate development trajectories. When they fail to connect with and reinforce each other, the next question becomes: why have domestic enterprises chosen their current path?

From a micro-economic perspective, the behavior of domestic firms is understandable. In an environment where credit still depends heavily on collateral, compliance costs remain high, legal risks are not fully mitigated, and investment in manufacturing requires substantial capital and long payback periods, it is rational for domestic businesses to choose service sectors with faster returns and lower risks.

By contrast, investing in industrial production, especially manufacturing and processing, requires not only substantial resources but also a supporting ecosystem that many domestic firms still lack.

Domestic enterprises are not choosing the “wrong” sectors; rather, they are optimizing investment and production decisions within an institutional framework that does not sufficiently encourage or support long-term investment. Yet what is rational at the micro level creates worrying macro-economic consequences: the economy begins to fall into a hard-to-break vicious cycle.

Growth without stronger internal capacity

When domestic enterprises do not invest in manufacturing, support industries fail to develop. When support industries remain weak, FDI enterprises are forced to maintain separate global supply chains and continue importing production inputs. Without participation in supply chains, domestic businesses are unable to absorb technology or strengthen their production capabilities, leaving them unable to enter, or remain competitive in, the manufacturing sector. Over time, this cycle repeats, reinforces itself, and becomes increasingly entrenched.

Notably, while overall exports have surged, exports by domestic firms have declined - clear evidence that internal capacity is not keeping pace with economic growth. This is no longer merely a paradox but a structural condition in which the economy continues to grow while the domestic sector fails to build sufficient capacity to independently drive growth. Once established, this vicious cycle does not exist in isolation; it is reinforced by multiple systemic constraints.

The current capital allocation structure still favors sectors with collateralized assets and short-term profits, while manufacturing, processing, and support industries struggle to access commensurate resources. Public investment efficiency remains low, with spillover effects showing signs of weakening.

When resources fail to flow into productivity-enhancing sectors, growth becomes merely an expansion in scale rather than an improvement in quality.

In recent years, the Party and the State have recognized the underlying causes of these structural imbalances and have introduced policy directions and solutions to support the development of the domestic economic sector, particularly domestic enterprises. However, a considerable gap remains between policy direction and implementation.

Politburo Resolution No. 68-NQ/TW, dated May 4, 2025, on private sector development, emphasized the role of the private sector as one of the most important drivers of the national economy, serving as a pioneering force in promoting growth, creating jobs, improving labor productivity, strengthening national competitiveness, advancing industrialization and modernization, and restructuring the economy.

In implementing Politburo Resolution No. 68, the National Assembly and the government are accelerating efforts to unlock resources and remove institutional bottlenecks, thereby creating greater space for domestic enterprises to contribute more meaningfully to economic growth.

The Party’s policy direction and the State’s implementation efforts indicate that policy thinking is moving in the right direction. The challenge now is how to transform the economy’s operating structure, especially as a new wave of high-tech FDI opens up fresh opportunities while also creating new challenges and requirements.

New-generation FDI

The wave of FDI that Vietnam is proactively attracting has entered a new phase, one no longer based primarily on low-cost labor, processing, and assembly, but increasingly focused on high technology, innovation, the digital economy, and green growth. This is a positive shift, aligned with the need to upgrade the growth model as global competition becomes increasingly driven by knowledge and technology.

Yet the very high-tech nature of this new FDI trend exposes a paradox within the economy: the more advanced the investment, the wider the gap between the FDI sector and the domestic sector becomes. Multinational corporations operate according to global standards, with supply chains effectively “locked in” by requirements for quality, scale, and reliability. Under such conditions, the ability of domestic firms to independently join these supply chains remains very limited without deliberate policy intervention and targeted support.

The experience of many countries shows that FDI does not automatically generate spillover effects. In the early stages, economic benefits typically come from job creation and export expansion. At a more advanced stage, however, benefits become sustainable only when FDI serves as a channel for transferring technology, management skills, and production standards - that is, when FDI enterprises become organically linked with domestic firms.

Amid the restructuring of global supply chains, Vietnam has an opportunity to attract high-tech capital flows. But if these FDI projects continue to operate as “production islands,” with limited domestic links, the economy may achieve greater scale while internal capabilities fail to improve proportionately.

New-generation FDI does not automatically create internal capacity; it merely opens up opportunities. These opportunities become meaningful only when they are translated into substantive links with the domestic economy. From this perspective, the government’s task extends beyond attracting high-quality capital to designing mechanisms that allow such capital to “take root” in the economy. This points to an important shift in policy thinking, from attracting FDI at all costs to building durable links between FDI enterprises and domestic firms.

From attracting FDI to designing links

For many years, Vietnam’s FDI policy was built around a competitive investment-attraction model, relying on tax incentives, land access, infrastructure, and administrative reforms. This approach suited a period when the economy urgently needed capital, technology, and jobs. However, as development goals shift toward improving growth quality and strengthening internal capacity, this approach requires a fundamental adjustment.

The benchmark for FDI policy is no longer how much capital can be attracted, but whether that capital creates new links and capabilities for the economy. To realize this transition, a structural policy framework is needed, one that directly supports links between the FDI sector and domestic enterprises.

Redesigning FDI policy: From investment incentives to spillover conditions

First, the incentive system should be redesigned to become more conditional. Incentives should not be tied solely to investment size or sectors, but linked to concrete performance indicators such as localization targets based on clear roadmaps, the number of domestic suppliers participating in supply chains, the value of local procurement contracts, or the establishment of RD centers in Vietnam. This is not about creating barriers, but rather shaping investor behavior toward long-term development goals.

Developing support industries and industrial clusters

Alongside redesigning FDI attraction policies, Vietnam needs a sufficiently strong industrial ecosystem to absorb links. Domestic firms will struggle to join supply chains if they remain fragmented, lack information, and fail to meet standards. The formation of industrial clusters - where FDI firms, domestic enterprises, and research institutions coexist - would facilitate interaction, learning, and collaboration. A national supplier database would also serve as an important tool to reduce search costs and improve connectivity between domestic firms and the FDI sector.

Strengthening domestic firms’ technology absorption capacity

Sustainable links can only emerge if domestic enterprises have sufficient capacity to absorb new technologies. This requires a new approach to business support, shifting from broad-based assistance to targeted support, and from generic support to value-chain-based support. Identifying and “nurturing” promising firms to become Tier 1 and Tier 2 suppliers for multinational corporations would generate much stronger spillover effects than broad, unfocused support programs.

Developing human capital linked to FDI

Human capital must be placed at the center of the strategy. Ultimately, technology transfer is a process carried out through people. Encouraging FDI firms to participate in workforce training, strengthening links between businesses and educational institutions, and designing training programs aligned with supply-chain demands would help narrow skills and technology gaps.

Restructuring capital markets to support links

A key pillar is the capital market. Domestic enterprises will struggle to upgrade capabilities without access to long-term financing. Developing the corporate bond market, promoting industrial investment funds, and designing preferential credit packages for firms participating in FDI supply chains are necessary conditions for supporting this process.

Enabling role

In the early stages of economic reform and integration, the State’s most important role was to open the economy, maintain stability, and attract external resources for growth. This approach helped Vietnam build a dynamic FDI sector, boost exports, and integrate more deeply into global value chains.

As the economy enters a new stage of development, where the challenge is no longer only rapid growth but also stronger internal capacity, the role of the State must evolve accordingly. To build a developmental State, the Party and the State must renew their thinking and remove ideological barriers. To build an independent, self-reliant, and sustainable economy, Vietnam must establish inclusive institutions.

For many years, FDI success has typically been measured through indicators such as registered capital, disbursed capital, export turnover, and jobs created. Yet these metrics capture only the quantitative dimension of growth, not the qualitative dimension of development.

A multi-billion-dollar investment project may generate substantial growth, but if localization rates remain low, domestic firms fail to join supply chains, technology does not broaden, and high-quality human capital is not developed, the long-term impact on internal capabilities will remain limited.

An economy cannot become stronger if domestic enterprises remain outside the value-creation process. Therefore, the role of the State today goes beyond merely “rolling out the red carpet” for investors. It must design a structure of links in which the FDI sector and domestic enterprises develop together within a unified ecosystem.

In this context, the State must play the role of a “conductor” - not by directly replacing market actors but by shaping how those actors coordinate to create a system with synergistic strength.

This role as a “conductor” begins with strategic direction. Instead of attracting FDI based on the logic that “any investment is good investment,” Vietnam should adopt a more selective approach: prioritizing sectors that generate technology spillovers, projects capable of building domestic supply chains, and investors committed to developing ecosystems in Vietnam. The key question is no longer how much capital is attracted, but how much that capital helps strengthen the economy’s capabilities.

Accordingly, the FDI incentive system must also become more conditional. Incentives should not depend solely on investment size or sector, but be tied to measurable outcomes such as localization roadmaps, the number of Vietnamese firms integrated into supply chains, RD activities in Vietnam, and training and technology transfer programs.

However, links cannot emerge if one sector is too strong and the other too weak. Therefore, the State’s enabling role must also include strengthening domestic enterprises so they are capable of participating in value chains. This is particularly important given that business support policies have often been fragmented, while global supply chains are becoming increasingly demanding in terms of quality, technical standards, governance capacity, traceability, environmental, social, and governance (ESG) standards, and green development. Without a deep and targeted support strategy, most domestic firms will remain outside supply chains, even as FDI inflows continue to rise.

The State therefore needs to shift decisively toward supporting firms through value chains, industrial clusters, and targeted programs for enterprises with the potential to become Tier 1 and Tier 2 suppliers. This is not merely business policy; it is national capability-building policy.

At the same time, the State must play a proactive coordinating role. In practice, one of the biggest barriers today is the lack of information and coordination mechanisms between the FDI sector and domestic firms. Many Vietnamese enterprises do not know which standards they must meet or how to access procurement systems, while FDI firms often lack reliable supplier databases.

This demonstrates that links between the FDI and domestic sectors cannot be left entirely to market forces. The State must actively develop a national supplier database, support centers for support industries, business-matching programs between FDI firms and domestic enterprises, and highly-specialized industrial clusters.

International experience shows that no country has successfully industrialized without a strong enabling role by the State during the formation of industrial ecosystems.

Another critical role for the State is redirecting capital flows within the economy. At present, capital continues to favor sectors with collateralized assets and short-term returns, while industrial production, particularly support industries, requires substantial, long-term, and higher-risk financing.

Without changes to the capital allocation structure, domestic firms will struggle to upgrade capabilities and participate in value chains. Therefore, the State should develop long-term capital markets, promote industrial investment funds, design preferential credit programs for firms participating in supply chains, and encourage investment in technological innovation and green production. An economy cannot build industrial capabilities if capital continues to prioritize speculation over production.

Perhaps most importantly, the State’s role as a “conductor” lies in its ability to create institutional trust. Businesses invest for the long term only when policies are stable, property rights are protected, legal risks are predictable, and compliance costs are reasonable.

In other words, the prerequisite for domestic enterprises to expand and strengthen long-term capabilities is not only access to capital or technology but confidence in a stable long-term development environment. This is also the essence of a developmental State; not replacing the market but creating conditions for the market to operate toward the nation’s long-term development objectives. As Vietnam enters a period of competition based more on quality than on growth speed alone, institutional trust becomes a decisive factor.

Without a capable “conductor” to build links, the economy will continue to exist as a collection of fragmented growth sectors. But if Vietnam succeeds, it will have an opportunity to move beyond being merely a manufacturing base and become an economy capable of mastering its own production capabilities and value creation.

Strengthening internal capacity

Vietnam’s economy stands before a major development opportunity as a new wave of FDI continues to shift into the country and global supply chains undergo restructuring. But that opportunity will not automatically translate into stronger internal capacity if domestic enterprises remain outside the process of creating technology, supply chains, and value-added production.

The key question is no longer how much foreign investment Vietnam can attract, but what the economy accumulates from it. No economy can develop sustainably if growth depends primarily on external sectors while domestic firms remain concentrated in low-value-added industries with limited competitiveness.

This is also the vicious cycle that has persisted for years: weak domestic enterprises limit links with the FDI sector; limited links prevent the diffusion of technology and management capabilities; and the failure to strengthen capabilities makes it even harder for domestic firms to grow. Unless this cycle is broken, the economy may continue to grow rapidly, but upgrading the quality of growth will become increasingly difficult.

In this process, the State’s enabling role is especially important. It must not only attract investment but also act as a “conductor” that builds links between the FDI sector and domestic enterprises, creating the right incentives for resources to flow into productivity-enhancing sectors, technological innovation, and long-term production capacity.

For a developmental State to be truly effective, it is equally important to build trust among the domestic business community. Enterprises invest for the long term only when they believe policies are stable, property rights are protected, the business environment is transparent, and legal risks are predictable. In other words, institutional trust is the foundation that gives businesses the confidence to invest in technology, production, and long-term competitiveness.

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

VET-Dr. Nguyen Bich Lam (*)

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

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

Hanoi’s retail property market goes far and wide

Sun, 31 May 2026 08:15:00 GMT

Hanoi’s retail property market has witnessed a clear shift in recent times from central areas to relatively new urban hubs.

Hanoi’s retail market has revolved largely around established commercial districts in the inner city for many years, particularly Hoan Kiem, where strong foot traffic, tourism activity, and limited supply helped sustain premium rents. But as the capital expands and consumer behavior evolves, retailers are increasingly reassessing where future growth lies.

That shift is becoming increasingly visible in Tay Ho Tay New Town. Japanese department store operator Takashimaya, best known in Vietnam for its flagship store at the Saigon Centre in Ho Chi Minh City, is expected to expand its Hanoi presence at Westlake Square Hanoi. The move reflects growing retailer interest in integrated urban districts that combine premium housing, office supply, hospitality, and long-term demographic growth.

According to the Hanoi Statistics Office, the total retail sales of goods and consumer services reached VND171.5 trillion ($6.6 billion) in the first two months of 2026, up 13.2 per cent year-on-year. Retail sales alone climbed 15.8 per cent to VND112.9 trillion ($4.3 billion), accounting for nearly two-thirds of total turnover and highlighting recovering domestic consumption and improving purchasing power.

But beneath the positive headline numbers, Hanoi’s retail property market is entering a more competitive and structurally-different phase, one increasingly defined by decentralization, experience-led retail formats, and intensifying competition among landlords as supply expands beyond the Central Business District (CBD).

Beyond the city center

Hanoi’s retail geography is gradually being redrawn. According to the Hanoi MarketBeat Q1 2026 report from Cushman Wakefield, Vietnam’s capital added 51,497 sq m of new retail space during the first quarter of 2026, bringing total retail stock to approximately 1.43 million sq m. The increase was driven primarily by the opening of the Hanoi Centre, a 50,000 sq m shopping center developed by Keppel in a secondary area, together with retail podium developments in western Hanoi. Shopping centers continue to dominate the market, accounting for around 85 per cent of total supply, underscoring the growing preference for larger, destination-style retail formats.

Crucially, most new supply is no longer concentrated in the traditional urban core. Cushman Wakefield noted that developers are increasingly focusing on non-CBD districts, particularly western and suburban areas, where larger land plots and integrated township developments allow for more experiential retail concepts and stronger long-term catchment potential.

Between the remainder of 2026 and 2028, approximately 313,909 sq m of additional retail supply is expected to enter the market. Of that, suburban areas are projected to account for 153,500 sq m, while western Hanoi is expected to contribute 144,253 sq m, far outweighing future additions in central districts.

The broader direction of the market is echoed in the Savills Hanoi Q1/2026 Market Brief, which showed Hanoi’s modern retail stock reaching approximately 1.7 million sq m, with shopping centers remaining the dominant format and overall occupancy standing at 89 per cent. Savills observed that secondary districts and city-fringe areas are increasingly emerging as major retail destinations as Hanoi transitions toward a more decentralized, multi-center urban structure.

The consultants also linked this trend to Hanoi’s long-term urban planning strategy, which emphasizes suburban growth poles and satellite districts to relieve pressure on the city center. As land constraints continue to limit large-scale retail expansion in the CBD, growth is increasingly following new residential clusters and mixed-use urban developments.

Savills expects the supply wave to accelerate over the next several years. According to its report, nine projects are expected to add approximately 266,824 sq m of new retail space by the end of 2026. Between 2027 and 2028, much of the upcoming supply is projected to be concentrated in the Starlake area, where multiple projects are scheduled for completion within a relatively short timeframe.

This helps explain the growing appeal of areas such as Tay Ho Tay and Starlake. Once viewed primarily as residential expansion zones, these areas are evolving into mixed-use ecosystems combining office towers, embassies, hotels, research facilities, and premium housing - the type of concentrated environment increasingly favored by retailers seeking long-term footfall and higher-spending consumers.

The expected arrival of Takashimaya at Westlake Square Hanoi therefore appears less like an isolated investment and more like a reflection of a broader repositioning underway across Hanoi’s retail market.

Experience-led retail

According to the Hanoi MarketBeat Q1 2026 report, leasing activity during the first quarter continued to be driven primarily by food and beverage (FB) and entertainment operators, helping absorb newly-completed retail space. Hanoi also saw the expansion of flagship retail concepts, including brands such as Phuc Long Dragon and Skechers, reinforcing retailer confidence despite intensifying competition.

Developers, in turn, are increasingly adjusting their strategies to reflect changing consumption habits. Cushman Wakefield noted that landlords are placing greater emphasis on tenant mix optimization, experiential retail concepts, and community-oriented spaces to sustain visitor traffic and improve long-term occupancy stability. Rather than functioning solely as shopping destinations, malls are increasingly being positioned as places where consumers can dine, socialize, and spend leisure time.

A broader regional perspective reinforces the trend. In its “Retail in Motion: Turning Global Signals into Strategic Considerations” report, Cushman Wakefield identified “experience-led demand” as one of the defining characteristics shaping retail markets across Asia. Rather than operating purely as retail venues, shopping centers are increasingly functioning as “third places” - environments for gatherings, recreation, and lifestyle experiences. Across regional markets, categories such as FB, wellness, entertainment, and hybrid lifestyle concepts are increasingly outperforming traditional fashion-led retail models.

Savills similarly observed that future large-scale developments in Hanoi are likely to place greater emphasis on differentiation and consumer experience as competition intensifies, particularly in emerging suburban districts where retail destinations are still being established.

This transition is also reshaping how retailers evaluate locations. Increasingly, brands are prioritizing districts with stronger residential density, integrated infrastructure, and long-term demographic growth over purely historic centrality.

Stronger competition

Even as Hanoi’s retail market expands, developers are entering a more demanding environment. According to Cushman Wakefield, average occupancy stood at 86.5 per cent during the first quarter, increasing 1.1 percentage points year-on-year but down slightly quarter-on-quarter as newly-completed projects entered lease-up phases and some tenants remained in fit-out periods. At the same time, average ground-floor asking rents climbed to $51.4 per sq m per month, rising 9.1 per cent quarter-on-quarter and 10.1 per cent year-on-year.

The increase in rents was driven partly by newly-launched projects in secondary districts entering the market at higher asking levels than older stock. Leasing demand in prime locations also remained resilient, particularly for professionally-managed schemes with strong branding and visibility, according to Cushman Wakefield.

Savills likewise reported continued rental resilience, with market rents increasing 4 per cent year-on-year, despite the growing supply pipeline. The consultants noted that shopping centers continue to outperform other retail formats due to stronger operational quality and their ability to adapt to evolving consumer preferences.

At the same time, future supply growth is likely to intensify competition among landlords, particularly in non-CBD districts where the majority of new projects are concentrated. Cushman Wakefield expects longer lease-up periods and greater leasing flexibility to become increasingly necessary as projects compete for tenants and footfall. Developers with stronger residential catchments, clearer positioning, curated tenant ecosystems, and destination-oriented retail concepts are expected to outperform in the next stage of market growth.

For Hanoi, the rise of developments such as Westlake Square Hanoi may ultimately represent something larger than a single commercial project. It signals the emergence of a retail landscape no longer centered solely around the traditional CBD, but increasingly shaped by a network of new urban hubs where retail, lifestyle, and residential demand converge.

VET-Diep Linh