New Year, New Rules: What Foreigners Should Know About Vietnam’s 2025 Regulations

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As Vietnam steps into the Year of the Snake, the country continues its rapid evolution, with the government introducing new regulations that impact daily life for both locals and expats.

The snake, a symbol of grace, intelligence, and transformation in Vietnamese culture, is a fitting metaphor for the nation’s approach to governance—strategic, adaptive, and forward-thinking.

For expatriates, staying informed about these legal changes is essential. Vietnam’s regulatory landscape shifts frequently, and understanding these updates is the minimum responsibility of those calling this country home, whether temporarily or permanently.

So, what are the key new regulations for 2025, and how will they affect the expat community?

1. Traffic Laws: Stricter Fines and Fewer Negotiations

Vietnam’s infamous roads are now subject to tougher traffic penalties, with significantly higher fines for violations. Authorities aim to improve road safety and discipline among drivers, making it essential for expats to:

  • Obtain a valid driver’s license
  • Stay updated on traffic laws and fines
  • Follow the rules or risk hefty penalties

The days of informal roadside negotiations are disappearing, and ignorance of the law is no longer an excuse.

2. Vape Ban: No More E-Cigarettes in Vietnam

A sweeping ban on e-cigarettes and heated tobacco products has been introduced. The new law prohibits:

  • Production, sale, and importation of vaping products
  • Storage, transportation, and use of e-cigarettes and heated tobacco devices

While this move will be welcomed by non-smokers, it’s likely to frustrate vaping enthusiasts. Fines for violations can reach millions of đồng, though enforcement on the ground remains to be seen.

For those unwilling to quit, alternative destinations like Thailand or Mexico might be on their radar.

3. Visa and Work Permit Adjustments

Vietnam has also fine-tuned its work permit regulations, reinforcing policies that prioritize job opportunities for Vietnamese nationals. Under the new rules:

  • Employers must advertise job openings locally before hiring foreign workers
  • Work permit renewals may become more difficult in certain industries

While teaching jobs remain relatively unaffected, professionals in other sectors may face additional hurdles when extending their visa and employment status.

4. Property Ownership and Government Land Repossession

The government has been making adjustments to property ownership laws, particularly regarding land repossession in the Tây Hồ district. Expats should be aware that:

  • Certain land areas may be reclaimed for public development projects
  • Property laws continue to evolve, impacting long-term investment decisions

For those looking to invest in Vietnamese real estate, staying informed about ownership regulations is crucial.

5. Digital Regulations and Website Restrictions

Another area of regulatory change involves online content and access to certain websites. The government continues to monitor and regulate online platforms to align with national interests and public security concerns.

While such changes may surprise some expats, they reflect Vietnam’s broader governance approach—prioritizing economic stability, public welfare, and national security.

A Year of Transformation

Vietnam’s fast-paced growth demands strategic governance, and 2025’s new regulations are designed to enhance public safety, economic sustainability, and national development. While some rules may pose challenges—particularly for expats—it’s important to recognize that we are guests in a rapidly evolving nation.

Ultimately, the Year of the Snake brings with it a period of adaptation and progress. By staying informed and respecting the changes, expatriates can continue to enjoy and thrive in this dynamic country of Vietnam.

Vietnam’s Stock Market Poised for Sustainable Growth with Regulatory Enhancements

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The Vietnamese stock market has undergone remarkable transformation, with a significant rise in the number of listed companies, market capitalisation, and trading value. As the market continues to expand, there is an urgent need to improve investment quality and trading standards to ensure long-term sustainability.

Aiming for a New Era of Development

To drive sustainable economic growth in 2025 and beyond, Vietnam must accelerate market reforms, leverage available resources, and implement breakthrough strategies. The securities sector plays a crucial role in this transformation by improving infrastructure, enhancing service quality, attracting international investors, and mobilising medium- and long-term capital for businesses and the state budget.

A transparent, secure, and appealing investment environment is essential to positioning Vietnam’s stock market as a trusted destination for both domestic and foreign investors.

Encouraging Institutional Investment for Stability

Currently, Vietnam’s stock market has over 9.2 million trading accounts, with retail investors dominating daily transactions. Data from securities companies show that retail investors contribute approximately 75% of market liquidity, a stark contrast to markets like Hong Kong and South Korea, where institutional investors play a more dominant role.

To achieve high-quality and sustainable growth, Vietnam must increase the presence of institutional investors. In mature financial markets, retail investors often invest through fund certificates or entrust capital to professional fund managers, ensuring a more stable and structured investment ecosystem.

Regulatory Reforms to Attract Foreign Capital

To make Vietnam’s stock market more accessible to foreign institutional investors, the Ministry of Finance and the State Securities Commission (SSC) have been refining the legal framework. One of the key milestones is Circular No. 68/2024/TT-BTC, which took effect on November 2, 2024. The regulation removes the prefunding requirement, allowing foreign investors to purchase shares without needing to pre-deposit funds in their accounts.

Additionally, the amended Securities Law, recently approved by the National Assembly, further facilitates the participation of professional institutional investors, making the market more attractive to global capital.

According to Duong Ngoc Dung, a professional investor, these regulatory changes are critical for attracting foreign funds and improving market stability. He pointed out that the high participation of retail investors often leads to excessive volatility, driven by speculation and the FOMO (Fear of Missing Out) effect. The introduction of a central counterparty clearing (CCP) model and increased institutional participation will help mitigate these fluctuations and create a more resilient investment landscape.

Enhancing Market Quality and Investor Confidence

Despite efforts to upgrade Vietnam’s stock market, foreign investors continue to sell off shares, highlighting the need for further improvements. To regain investor confidence, the market must focus on expanding high-quality investment opportunities and addressing key limitations.

One major challenge is the shortage of high-quality stocks, partly due to delayed IPOs and the slow pace of state-owned enterprise (SOE) equitisation. The recent approval of the State Asset Management Law is expected to accelerate SOE listings and privatisations, introducing new supply sources to stabilise and expand the market in 2025 and beyond.

Additionally, the government is prioritising reducing state ownership in sectors where it is no longer necessary, encouraging businesses to list publicly and improve corporate governance and transparency. Loosening regulatory restrictions on foreign ownership will also attract more institutional investors, contributing to a more balanced and stable market structure.

Facilitating Foreign Investment and Market Upgrades

Vietnam’s efforts to attract foreign institutional investors should align with broader national credit rating goals and the participation of large international asset management firms. This includes:

  • Diversifying financial products tailored to foreign investors
  • Enhancing oversight through professional fund management companies
  • Strengthening corporate governance standards

To lay the foundation for long-term market development, the government will continue revising and updating regulations on foreign ownership limits, investment restrictions, and short selling mechanisms. These changes aim to increase foreign participation, boost market liquidity, and make Vietnam’s stock market more integrated with global financial systems.

Vietnam is committed to modernising its stock market, ensuring sustainable growth, and attracting high-quality investment. By refining regulations, expanding investment opportunities, and encouraging institutional participation, the country is taking significant steps toward establishing a stable, transparent, and globally competitive financial market.

Working and Living in Vietnam as an Expat: Best Cities and Neighborhoods

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Vietnam has become one of the most popular destinations for expats looking for a vibrant lifestyle, career opportunities, and an affordable cost of living.

Whether you are moving for work, business, or a new adventure, understanding where to live is crucial to settling in smoothly. Vietnam offers diverse living options, from bustling urban centers to peaceful coastal cities, catering to different preferences and lifestyles.

Best Cities for Expats in Vietnam

1. Hanoi – The Cultural and Political Hub

As the capital of Vietnam, Hanoi is a top choice for expats who appreciate a mix of traditional charm and modern convenience. The city is known for its rich history, cultural sites, and dynamic economy. Hanoi offers plenty of job opportunities, particularly in banking, finance, education, and technology.

Popular Expat Neighborhoods in Hanoi:

  • Tay Ho (West Lake): The most popular area for expats, Tay Ho offers a Western-friendly environment with international restaurants, cafes, and supermarkets. It provides a peaceful atmosphere near the scenic West Lake while still being close to the city center.
  • Ba Dinh: Home to embassies and government offices, Ba Dinh attracts professionals looking for a quieter yet well-connected area.
  • Hoan Kiem: If you enjoy being in the heart of the action, Hoan Kiem is the best place, with its historic Old Quarter, vibrant nightlife, and commercial centers.
Hanoi Old Quarter

2. Ho Chi Minh City – The Business and Financial Capital

Ho Chi Minh City (Saigon) is the economic powerhouse of Vietnam, offering numerous opportunities for business professionals, entrepreneurs, and digital nomads. It is fast-paced, energetic, and packed with modern skyscrapers, entertainment venues, and a thriving food scene.

Popular Expat Neighborhoods in Ho Chi Minh City:

  • Binh Thanh District: Close to the city center, Binh Thanh is a favorite among expats looking for modern apartments at reasonable prices.
  • District 2 (Thao Dien and An Phu): Known for its expat-friendly atmosphere, Thao Dien and An Phu offer international schools, high-end villas, and plenty of Western restaurants.
  • District 7 (Phu My Hung): This planned urban area is home to many Korean and Japanese expats, with a well-developed infrastructure and green spaces.
Photo: Olivier Ochanine

3. Da Nang – The Coastal Tech Hub

For those looking for a balance between work and beach life, Da Nang is the perfect choice. It has emerged as a tech and startup hub while maintaining a relaxed coastal vibe. With modern amenities, clean streets, and stunning beaches, Da Nang is a great option for digital nomads and remote workers.

Why Expats Choose Da Nang:

  • A growing expat community with co-working spaces and networking events.
  • Beautiful beaches and a relaxed pace of life.
  • A lower cost of living compared to Hanoi and Ho Chi Minh City.

4. Nha Trang – A Seaside Retreat

If you prefer a laid-back lifestyle by the sea, Nha Trang is an excellent choice. This coastal city is known for its clear blue waters, affordable living, and expat-friendly cafes and bars. Many retirees and hospitality professionals choose Nha Trang for its relaxing atmosphere and beachside living.

Adjusting to Life in Vietnam as an Expat

Moving to Vietnam is an exciting experience, but adjusting to the local culture and lifestyle may take some time. Vietnam is a lively country, with fast-paced urban life, bustling markets, and a unique way of doing business. Here are a few tips to help you settle in smoothly:

  • Learn basic Vietnamese: While many locals in major cities speak English, knowing a few Vietnamese phrases can help you connect better with the community.
  • Embrace the local culture: Vietnamese hospitality is warm and welcoming. Take the time to explore local customs and traditions.
  • Get used to the traffic: Motorbikes dominate Vietnam’s streets, and navigating through the chaos may take some practice.
  • Enjoy the food: Vietnamese cuisine is diverse and affordable, offering delicious options from street food to fine dining.

Vietnam is an attractive destination for expats due to its affordable cost of living, thriving job market, and diverse lifestyle options. Whether you prefer the vibrancy of Hanoi and Ho Chi Minh City, the tech-friendly atmosphere of Da Nang, or the beachside relaxation of Nha Trang, there is a perfect place for everyone. With an open mind and a sense of adventure, expats can enjoy a fulfilling life in Vietnam, blending work, travel, and cultural exploration.

Vietnam Expresses Gratitude Amid USAID Staff Reductions

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HANOI – Vietnam acknowledges and expresses gratitude for the contributions of the United States Agency for International Development (USAID) as the agency prepares for administrative leave affecting most of its direct-hire personnel.

In a statement posted on its website—following a temporary outage over the weekend—USAID announced that staff leave will commence shortly before midnight on February 7. The decision affects all USAID direct-hire personnel, except those responsible for mission-critical functions, core leadership, and specially designated programs. The agency expressed appreciation for its employees, stating, “Thank you for your service.”

The move aligns with U.S. President Donald Trump and billionaire Elon Musk’s broader efforts to reduce the size of the federal government, a policy shift that has sparked debate in Washington and protests from Democrats and human rights organizations.

As a key arm of U.S. foreign policy, USAID has long played a critical role in funding health and emergency programs in approximately 120 countries, including some of the world’s most vulnerable regions. The agency has been a major player in international development and a significant instrument of U.S. soft power, particularly in geopolitical competition with countries like China.

Musk, a close Trump ally and major government contractor, has publicly criticized USAID, calling it a “viper’s nest of radical-left Marxists”, and has pledged to dismantle the agency. He has also alleged—without substantiation—that USAID has engaged in covert CIA operations and even funded bioweapon research related to Covid-19, claims that have drawn widespread scrutiny.

The restructuring of USAID comes amid long-standing conservative concerns about U.S. foreign aid spending, with critics arguing that taxpayer dollars should prioritize domestic needs rather than assistance to foreign nations.

According to the Congressional Research Service, the top three recipients of USAID funding in 2023 were Ukraine, Ethiopia, and Jordan, followed by the Democratic Republic of Congo, Afghanistan, South Sudan, and Syria. The U.S. government reported that Ukraine alone received more than $16 billion in macroeconomic support amid the ongoing conflict.

With a budget exceeding $40 billion, USAID represents a small fraction of the $7 trillion in total U.S. government spending. However, the United States remains the world’s largest provider of official development assistance, according to the Organization for Economic Cooperation and Development (OECD).

As USAID undergoes significant changes, Vietnam extends its appreciation for the agency’s longstanding support in various development initiatives and humanitarian programs.

Vietnam Government to Propose Higher GDP Growth Target of 8% for 2025

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HANOI – The Vietnamese government plans to submit a revised GDP growth target of at least 8% for 2025 to the National Assembly, following Resolution 01/NQ-CP 2025, which was issued early last month. This marks an upward revision from the previously approved target of 6.5%–7%, set by the National Assembly in November 2024.

Key Measures to Support 8% GDP Growth

To achieve this ambitious goal, the government has outlined several critical measures:

  •  Legal and Political Reforms: Continuing to refine the legal framework and streamline the political system to enhance economic efficiency.
  • Accelerated Public Investment: Increasing public investment disbursement, with an adjusted 2025 public investment plan set at VND 875 trillion.
  • Private Sector and Industrial Growth: Encouraging private investment, particularly in the processing and manufacturing sectors to boost industrial output.
  • Consumption and Tourism: Enhancing domestic consumption and attracting more international tourists to drive economic activity.
  • Export Diversification: Expanding export markets, supporting businesses in meeting new international standards, and providing assistance in anti-dumping lawsuits.
  • New Growth Drivers: Fostering the development of artificial intelligence (AI), big data, cloud computing, and the Internet of Things (IoT) as new economic engines.
SBV Targets 16% Credit Growth to Support Economic Expansion

In alignment with the new GDP target, the State Bank of Vietnam (SBV) has issued Directive No. 01/CT-NHNN for 2025, setting a credit growth target of 16%. The Deputy Governor emphasized that if GDP growth reaches 10%, credit expansion could rise to 18–20% to ensure sufficient capital for businesses and consumers.

To achieve this, SBV will implement key measures:

  • Liquidity Management: Ensuring a stable money supply through appropriate market operations.
  • Interest Rate Reduction: Directing commercial banks to lower lending rates by cutting operational costs and leveraging financial technology.
  • Flexible Credit Growth Management: Adjusting credit limits beyond 16% if inflation and exchange rates remain stable.
Economic Outlook and Policy Implications

Vietnam’s push for an 8% GDP growth rate reflects its commitment to accelerating economic recovery and long-term development. The revised target signals stronger policy coordination between fiscal and monetary authorities, with a focus on investment, consumption, exports, and technological innovation.

The National Assembly is expected to review and decide on the proposal in its upcoming session. If approved, this adjustment could position Vietnam among the fastest-growing economies in the region in 2025.

Mass Shooting at Swedish School Leaves 10 Dead, Including Suspect

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Swedish police have confirmed that around 10 people were killed in a mass shooting at a school in central Sweden on Wednesday, with the suspect believed to be among the deceased.

The attack took place at a school campus in the city of Örebro, where several others were injured when the suspect opened fire, regional police chief Roberto Eid Forest told Reuters. Authorities are currently investigating the gunman’s motive.

Earlier in the day, police had warned of a “serious violent crime” and launched an operation in the city center. Officers received the first emergency call at approximately 12:30 p.m. local time, Forest said.

According to Jonas Claesson, director of the regional health authority, six people were taken to the local university hospital, including five with gunshot wounds. Four have undergone surgery, with two in stable condition.

Police confirmed that there was an exchange of gunfire between officers and the suspect. The exact number of injured individuals remains unclear, but no law enforcement officers were reported among the casualties. Authorities have urged the public to stay indoors and avoid the area.

The incident comes amid Sweden’s ongoing struggle with rising gun violence. In 2024, at least 40 people were shot dead in the country, with police claiming to have prevented more than 100 serious crimes that year. Sweden recorded the highest rate of gun violence per capita in Europe in 2023.

Swedish Prime Minister Ulf Kristersson has called for a thorough investigation into the tragedy.

“I am deeply saddened by the terrible violence in Örebro. My deepest condolences to those affected and their families. This is a very sad day for all of Sweden,” he stated.

Taiwan Sees Surge in Flu Vaccinations Following Barbie Hsu’s Passing

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Taiwan has witnessed a sharp rise in flu vaccinations after the tragic passing of actress Barbie Hsu, with demand surging to the point of overwhelming medical facilities and online resources.

According to CDC spokesperson Tseng Shu-hui, Taiwan had secured 6.78 million flu vaccine doses this year, but only 200,000 remain. Given that the flu vaccine is publicly funded, authorities are urging high-risk groups to get vaccinated as soon as possible, Taiwan News reported.

The impact of this surge was particularly evident in Tainan City, where over 7,400 free flu vaccine doses were fully booked in under three hours on Monday afternoon. Similarly, Taichung Hospital’s Department of Family Medicine, under the Ministry of Health and Welfare, reported a significant spike in patient numbers, while the CDC website struggled to handle the influx of inquiries, United Daily News noted.

Many people were prompted to get vaccinated after learning about Hsu’s death. The 49-year-old actress, best known for her role in Meteor Garden, fell ill during a family trip to Japan on January 29 and passed away on February 2. Her family later confirmed that she succumbed to influenza-related pneumonia, revealing that she had displayed severe health warning signs before her passing.

Health officials continue to stress the importance of vaccination, particularly for vulnerable groups, as the flu season intensifies.

Is the Cost of Living in Vietnam Suitable for Expats?

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Vietnam has become an increasingly attractive destination for expats, thanks to its dynamic economy, rich culture, and affordable cost of living.

Whether you’re considering moving to Vietnam for work, retirement, or adventure, understanding the cost of living is essential. Fortunately, Vietnam offers a high standard of living at a fraction of the cost compared to many Western nations.

Affordability Compared to the US and UK

According to the latest 2022 data, the cost of living in Vietnam is 63.5% lower than in the US and 42.8% lower than in the UK. This includes everyday expenses such as rent, food, transportation, and entertainment. Cities like Hanoi and Ho Chi Minh City, despite being the most expensive in Vietnam, are still considerably cheaper than major Western cities like New York or London.

For example,  renting a modern one-bedroom apartment in Ho Chi Minh City or Hanoi costs between $400 to $1,000 per month, depending on the location and amenities. A meal at a local restaurant can cost as little as $2 to $5, while dining in upscale restaurants is still affordable at around $10 to $30 per person. Transportation, whether by motorbike, taxi, or public transport, is significantly cheaper than in Western countries.

These factors make Vietnam a cost-effective choice for expats looking for an affordable yet comfortable lifestyle.

Expats’ Earning Potential in Vietnam

Besides being affordable, Vietnam also provides competitive salaries for expats, especially in thriving industries such as technology, finance, marketing, and education. The average expat salary in Vietnam is estimated at $78,000 per year (£55,000), making it an attractive destination for professionals seeking both career growth and financial stability.

With a high salary relative to the cost of living, expats in Vietnam can enjoy a comfortable lifestyle, including:

  • Luxury housing: Many expats choose to live in serviced apartments or gated communities with modern amenities.
  • Travel and leisure: Vietnam offers beautiful beaches, mountains, and vibrant cities to explore at an affordable cost.
  • Quality healthcare: Private hospitals and international clinics provide world-class medical services at reasonable prices.

A Fulfilling and Comfortable Lifestyle

The combination of low living costs and high earning potential makes Vietnam an ideal destination for expats who want to maximize their income while enjoying a high quality of life. Whether it’s affordable housing, inexpensive yet delicious food, or a thriving social scene, Vietnam allows expats to experience a rich and fulfilling life without breaking the bank.

For those looking for a balance between cost, career opportunities, and lifestyle, Vietnam remains one of the best places in Asia to consider for long-term living.

Should We Prepare for Potential Global Trade War?

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At the Government’s regular January meeting on the morning of February 5, Vietnam’s Prime Minister Pham Minh Chinh emphasized the need to prepare for the possibility of a global trade war, warning that if it occurs, it could disrupt supply chains and restrict export markets.

Economic Growth Target: At Least 8% in 2025

The Prime Minister reaffirmed the Central Government’s ambitious GDP growth target of at least 8% in 2025, laying the groundwork for double-digit growth in the following years. To achieve this, he called for ministries, sectors, and localities to set specific growth targets and submit them for approval.

The Government will formally assign growth targets to each locality, ensuring that economic momentum is maintained across the country.

Unpredictable Global Trends and Strategic Response

Prime Minister Chinh highlighted the increasingly volatile global and regional landscape, which poses challenges to Vietnam’s exports, production, business environment, and macroeconomic stability.

He urged delegates to conduct in-depth forecasts and analyses, particularly regarding emerging risks such as a potential global trade war, and to propose proactive, timely solutions to avoid passivity, capitalize on opportunities, and sustain economic growth.

Key Solutions Proposed

To drive economic expansion, the Prime Minister outlined several strategic initiatives: Revitalizing traditional growth drivers while fostering new ones. Expanding and diversifying export markets, products, and supply chains, with a special focus on the Middle East, South America, and other emerging regions. Institutional reforms to remove legal bottlenecks and ensure efficient governance. Fast-tracking major infrastructure projects, including expressways and airport expansions.

Urgent Actions for Critical Projects

The Prime Minister also directed immediate action on several key national projects, such as Ninh Thuan Nuclear Power Plant: The Minister of Industry and Trade must urgently report to the Government and propose relevant policies to the National Assembly. Electricity Market Reforms: Regulations for electricity trading should be refined based on business and public feedback. Transport Infrastructure: The Minister of Transport must propose solutions to accelerate railway connectivity with China and address obstacles in road BOT projects. Legal Reforms: Ministers must submit monthly reports on regulatory challenges in their respective sectors, clearly identifying bottlenecks and proposing solutions.

Major Infrastructure Commitments for 2025

The Government remains committed to completing at least 3,000 km of expressways by 2025, ensuring that Tan Son Nhat Airport’s Terminal 3 is operational by April 30, 2025, and substantially completing Phase 1 of Long Thanh International Airport within the same year.

Positive Economic Trends Despite Challenges

Despite the nine-day Lunar New Year holiday, Vietnam’s socio-economic performance in January showed strong recovery, with:

  • Macroeconomic stability
  • Controlled inflation
  • Sustained growth momentum
  • Balanced economic fundamentals

As Vietnam navigates global uncertainties, strong policy direction and decisive actions will be key to achieving its ambitious economic targets and ensuring long-term resilience in a shifting global landscape.

Rising Expat Population Drives Hanoi’s High-End Housing Market

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Hanoi’s real estate market is witnessing significant growth, fueled by an increasing number of foreign professionals seeking luxury housing. The city issues approximately 10,000 new work permits annually to expatriates, most of whom are highly skilled professionals with a strong preference for premium properties.

This demand has been further strengthened by the 2023 Housing Law, which took effect on August 1, 2024, introducing regulations that make property ownership more accessible for foreigners. The Vietnam Association of Real Estate Brokers notes that Hanoi has not only solidified its position as Vietnam’s leading economic, political, and cultural center but has also become an attractive destination for expatriates.

The growing influx of foreign professionals, coupled with economic expansion and rising foreign direct investment (FDI), has significantly increased demand for housing, particularly in Hanoi and the northern region. The labor force is predominantly composed of highly skilled individuals, including managers, CEOs, experts, and technical specialists, many of whom seek to own high-end properties.

According to data from the Hanoi Department of Labor, Invalids, and Social Affairs, in 2023, nearly 11,200 organizations and businesses employed foreign workers, including 4,200+ management positions, 190 CEO roles, 8,000+ expert positions, 1,561 technical worker roles

Additionally, Hanoi issued 8,747 new work permits, reissued 1,234, and extended 2,749 work permits for expatriates, further reinforcing the capital’s appeal as a prime location for foreign professionals seeking long-term residence.

With a booming economy, increasing FDI, and favorable housing policies, Hanoi’s luxury real estate market is set for continued expansion, catering to the rising demand from the growing expatriate community.

Vietnam’s E-commerce Revenue Surpasses $12.6 Billion in 2024, Reflecting Strong Market Growth

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Vietnam’s e-commerce sector continued its upward trajectory in 2024, with total revenue from the top five online retail platforms—Shopee, Lazada, TikTok Shop, Tiki, and Sendo—reaching VND 318.9 trillion (nearly $12.67 billion). This marks a robust 37.36% year-on-year growth, according to the newly released “Vietnam Online Retail Market Landscape 2024 & Forecast 2025” report by Metric.

The market also witnessed a significant increase in purchasing activity, with total consumption volume surpassing 3.4 million products, representing an impressive 50.76% growth compared to 2023. This surge underscores the continued strength of Vietnam’s digital retail sector as a vital sales channel.

However, the revenue performance fluctuated throughout the year. While e-commerce platforms experienced a peak in sales during the final months of 2024, driven by the Tet (Lunar New Year) shopping season and year-end festivals, a notable decline was observed from April to June.

Intensified Competition Reshaping the Market

Despite the revenue surge, the number of online stores generating orders dropped by 20.25%, highlighting increased competition. Many small or underperforming sellers exited the market, making way for businesses with well-defined strategies, consumer-centric product offerings, and adaptable operations.

Adding to the competitive landscape, 31,500 foreign sellers are now actively participating in Vietnam’s e-commerce market, creating direct pressure on domestic businesses. As a result, only retailers with strong branding, competitive pricing, and efficient supply chains are expected to thrive in this rapidly evolving sector.

Vietnam’s e-commerce industry is set for further expansion in 2025, with digital retail cementing its role as a dominant force in the country’s overall consumer market.

GBS Shortlisted for Prestigious 2025 Global Law Experts Annual Award

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Global Business Services LLC (GBS), a leading business and legal services firm in Vietnam, is proud to announce that it has been shortlisted for the “Financial Services Law Firm of the Year in Vietnam – 2025” at the Global Law Experts (GLE) Annual Awards.

This prestigious recognition highlights GBS’s outstanding expertise in investment consulting, merger & acquisition advisory, and company formation services for foreign investors seeking to enter and expand in Vietnam.

The Global Law Experts Awards celebrate top-performing legal and consulting firms worldwide that demonstrate excellence in industry knowledge, client service, and innovative solutions. Being shortlisted is a testament to GBS’s dedication to supporting international businesses in navigating Vietnam’s dynamic business environment, ensuring a smooth market entry and sustainable growth.

“With a highly skilled team and a diverse global client base, we take great pride in being recognized among the best in the industry,” said Sophie Dao, Senior Partner of GBS. “This shortlisting reflects our unwavering commitment to delivering top-tier financial and legal advisory services that drive success for our clients.”

GBS extends its heartfelt gratitude to its clients, partners, and team members for their continuous trust and support.

For more information about GBS and its services, please visit https://gbs.com.vn.

Contact:
Sophie Dao
Senior Partner, GBS
Email: sophie@gbs.com.vn
Phone: +84903189033
Website: https://gbs.com.vn

Vietnam’s Economy in 2025: Rising Exports, Business Reforms, and Investment Opportunities

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Vietnam’s economy continues to grow at an impressive pace in 2025, with strong export performance, institutional reforms, and a favorable investment climate attracting foreign businesses. Despite global economic uncertainties, the country remains a key destination for trade and foreign direct investment (FDI).

Vietnam’s Export Boom: Strengthening Trade with the EU

Vietnam’s exports to the European Union (EU) surged to $51.7 billion in 2024, an $8 billion increase compared to 2023. This growth is largely driven by the EU-Vietnam Free Trade Agreement (EVFTA), which has reduced tariffs and boosted Vietnam’s competitiveness in European markets.

Key export sectors driving growth:

  • Electronics & machinery: Vietnam has become a key manufacturing hub for Samsung, Apple, and other tech giants.
  • Textiles & garments: Despite global challenges, Vietnam remains one of the world’s top textile exporters.
  • Agriculture & seafood: Vietnamese coffee, cashews, shrimp, and pangasius fish are in high demand across Europe.

Why it matters for foreign investors:

  • Companies looking to source low-cost, high-quality goods can benefit from Vietnam’s expanding export market.
  • The EVFTA ensures better trade conditions for businesses operating in Vietnam and selling to Europe.
Institutional Reforms: A Business-Friendly Environment

Vietnam is undergoing major institutional reforms to enhance its business climate and attract more foreign direct investment (FDI).

Key reform areas:

  • Easier business registration: The government is simplifying regulations for foreign businesses.
  • Tax incentives for investors: New policies offer tax reductions for companies in high-tech, renewable energy, and manufacturing sectors.
  • Digital transformation in governance: Vietnam is expanding e-governance to improve efficiency and reduce bureaucracy.

What this means for foreign businesses:

  • Lower entry barriers: Setting up a business in Vietnam is becoming faster and easier.
  • Better investment protection: Government policies ensure more transparent legal frameworks for foreign investors.
  • Tax advantages: Companies investing in strategic sectors can enjoy tax breaks and incentives.

Vietnam’s FDI Surge: Key Investment Trends

Vietnam continues to be a top investment destination in Southeast Asia, attracting billions in FDI from multinational companies.

Top FDI sectors in 2025:

  • High-tech manufacturing: Companies like Samsung, Foxconn, and Intel are expanding production in Vietnam.
  • Renewable energy: Solar and wind power projects are growing rapidly with foreign backing.
  • E-commerce & fintech: Vietnam’s booming digital economy is attracting investments from companies like Alibaba and Grab.

Major recent foreign investments:

  • Apple’s suppliers are increasing their presence in Vietnam, shifting production away from China.
  • South Korean investors are pouring billions into Vietnam’s industrial zones.
  • European companies are investing in Vietnam’s sustainable development projects.

Why Vietnam is an attractive investment hub:

  • Strategic location: Vietnam is a key link in global supply chains.
  • Young, skilled workforce: A large, educated labor pool supports industrial growth.
  • Government support: Pro-business policies continue to attract foreign investment.
Challenges & Future Outlook

Despite its impressive growth, Vietnam still faces challenges:

  • Labor shortages: Post-Tết (Lunar New Year) worker shortages impact production.
  • Infrastructure bottlenecks: Ports, highways, and logistics need upgrades to support growing trade.
  • Global economic risks: Vietnam’s economy is closely tied to global trade trends.

However, with continued reforms, trade agreements, and foreign investment, Vietnam is expected to remain one of the fastest-growing economies in Asia in the coming years.

Vietnam is a rising star in global trade and investment, with a rapidly expanding export market, business-friendly reforms, and increasing foreign investment. For international businesses, investors, and entrepreneurs, the country presents exciting opportunities across multiple sectors.

As Vietnam continues to strengthen its economic position, now is the time for foreign businesses to explore partnerships, investments, and market entry strategies.

Traffic Accidents Drop Significantly During 2025 Lunar New Year Compared to 2024

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The number of traffic accidents during the 2025 Lunar New Year holiday saw a significant decrease of 258 cases compared to the previous year, reflecting a remarkable improvement in road safety. According to the Traffic Police Department, the 9-day holiday period was well-managed, with no major or prolonged traffic congestion reported.

On the afternoon of February 2, 2025, the Traffic Police Department under the Ministry of Public Security announced that from January 25 to February 2, a total of 445 traffic accidents occurred nationwide. These incidents resulted in 209 fatalities and 373 injuries.

Compared to the 2024 Lunar New Year holiday, traffic accidents dropped by 36.69% (258 fewer cases), fatalities decreased by 37.61% (126 fewer deaths), and injuries were reduced by 38.34% (232 fewer cases).

  • Road accidents: 442 cases, leading to 207 deaths and 372 injuries.
  • Railway accidents: 2 cases, causing 1 death and 1 injury.
  • Waterway accident: 1 case, resulting in 1 fatality.

Despite an increase in traffic volume before and after the holiday, particularly at major gateways to Hanoi, Ho Chi Minh City, and key routes such as expressways and Rach Mieu Bridge (connecting Tien Giang and Ben Tre provinces), traffic police effectively managed congestion through proactive traffic flow regulation, preventing severe blockages.

Enhanced Traffic Safety Enforcement During the Holiday

To ensure traffic safety and maintain order, the Traffic Police force deployed 25,556 working groups, conducted 32,783 patrols, and mobilized 137,511 officers and soldiers. As a result:

  • 55,842 violations were detected and penalized.
  • 17,149 cases involved alcohol-related violations.
  • 13,296 cases involved speeding violations.
  • 88 cases involved drug-related violations.
  • 174 cases involved overloaded vehicles.
  • Authorities revoked 2,985 driving licenses or professional certificates and deducted points from 7,035 licenses.
  • 428 cars and 20,782 motorbikes were temporarily seized.

Notable Improvement in Traffic Safety

Compared to Tet 2024, traffic safety measures significantly improved, contributing to a substantial reduction in accidents, fatalities, and injuries. The proactive approach of law enforcement, along with stricter enforcement of traffic regulations, played a key role in enhancing road safety during this festive period.

DeepSeek’s AI Development Costs Estimated at $1.6 Billion, Far Exceeding Official Figures

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DeepSeek’s actual expenditure on developing its AI models is estimated to be around $1.6 billion, a stark contrast to the $5.6 million figure the company has publicly claimed.

The True Cost of DeepSeek’s AI Infrastructure

According to an analysis by SemiAnalysis, a leading semiconductor and AI market research firm, DeepSeek’s hardware investment alone exceeds $500 million. Beyond that, the computational costs of generating synthetic training data are substantial, making the company’s stated training budget of $5.6 million misleading. That figure only accounts for the formal training phase, excluding key expenses such as research, development, data preparation, hardware maintenance, and operational costs.

“Our analysis suggests that the total server capital expenditure could be around $1.6 billion, with a significant $944 million allocated to operational costs for these AI clusters,” SemiAnalysis stated. “In addition to training, DeepSeek needs to test new architectures, collect and clean vast amounts of data, and pay its employees—all of which require significant funding.”

DeepSeek’s GPU Power and High-Flyer’s Involvement

SemiAnalysis further revealed that DeepSeek has likely used around 10,000 Nvidia H800 GPUs—restricted under U.S. export regulations to China—as well as an additional 10,000 H100 GPUs. The company is also believed to have incorporated H20 GPUs into its training process.

“These GPUs are shared between High-Flyer, the investment fund that owns DeepSeek, and the AI company itself. They are geographically distributed and utilized for multiple purposes, including high-frequency trading, inference, training, and AI research,” the report noted.

DeepSeek has been aggressively recruiting AI talent, offering salaries exceeding $1.3 million per year for top candidates—far surpassing compensation offered by major Chinese tech firms and global AI labs like Moonshot. The company has also held recruitment events at top universities across China, emphasizing ‘unlimited access to 10,000 GPUs’ in its hiring pitches.

DeepSeek’s Cost-Optimization Strategy and Industry Reactions

Despite the high estimated costs, SemiAnalysis emphasized that DeepSeek is highly efficient in cost optimization. “DeepSeek R1 is an exceptional model that has reached the cutting edge of AI reasoning at an astonishing speed,” the firm noted.

However, the discrepancy in cost figures has sparked debates. DeepSeek has not publicly addressed these claims, nor has it provided an official estimate beyond the $5.576 million figure, which was attributed to renting AI servers and the formal training process. This number excludes expenses related to model architecture experimentation, algorithm research, and large-scale data processing.

Yann LeCun, Chief AI Scientist at Meta, weighed in on the controversy, stating that many misunderstand AI infrastructure costs. He clarified that while AI development requires significant investments, much of the billions spent by U.S. firms goes toward AI inference rather than training.

“There is a big misunderstanding about AI infrastructure investment,” LeCun wrote on Threads last week. “The majority of the billions spent are for running AI assistants at scale, not just for training. As AI systems expand their capabilities—handling video understanding, reasoning, and massive storage—the cost of inference rises significantly. The market reaction to DeepSeek’s cost claims is therefore misplaced.”

Thomas Sohmers, CEO of AI hardware startup Positron, echoed LeCun’s view. “Inference spending will soon outpace training costs as demand for AI services grows exponentially,” he told Business Insider.

Scale AI CEO’s Bold Claims on DeepSeek’s GPU Stockpile

Meanwhile, Alexandr Wang, CEO of Scale AI, told CNBC that he has inside information suggesting DeepSeek owns 50,000 Nvidia H100 GPUs. Due to U.S. export restrictions, DeepSeek cannot publicly disclose this, he claimed.

Elon Musk, founder of xAI and a close ally of former U.S. President Donald Trump, added: “It’s obvious.”

DeepSeek’s AI Training Strategy: The Role of ‘Distillation’

To reduce training costs, DeepSeek is reportedly using an optimization technique called ‘distillation’. This method involves using a larger AI model’s outputs to train a smaller model, which helps maintain performance while significantly lowering computational costs.

OpenAI recently told the Financial Times (FT) on January 29 that it suspected DeepSeek had leveraged distillation techniques to cut costs.

DeepSeek’s Ownership and Future Direction

Founded in May 2023 by Liang Wenfeng, DeepSeek is based in Hangzhou, Zhejiang and is fully owned by High-Flyer, a major investment fund. Unlike many AI startups that seek external funding, DeepSeek has no plans to raise capital, instead focusing on building its core AI technology and proprietary infrastructure.

While DeepSeek has achieved remarkable cost efficiency in AI model training, its claim of spending just $5.6 million is widely disputed. The actual cost—estimated at $1.6 billion—suggests the company has a far more extensive AI infrastructure than it publicly acknowledges. As the AI race intensifies, DeepSeek’s financial transparency and strategic choices will likely remain under scrutiny.

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