Here’s the house rental contract template for foreigners living in Vietnam 2025

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This contract template outlines the legal agreement between a landlord (individual or licensed real estate company) and a foreign tenant for residential and/or office use in Vietnam.

For legal support or personalized assistance with rental agreements, property registration, or residence permits in Vietnam, foreign individuals or companies may contact:
Sophie Dao, Lawyer & Senior Partner at GBS – Global Business Services LLC.
Email: sophie@gbs.com.vn | Mobile: +84903189033 | Website: www.gbs.com.vn

GBS provides full legal and administrative support for foreign investors, professionals, and residents in Vietnam.

 

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness

………….., date……month……year……

HOUSE RENTAL CONTRACT FOR FOREIGNERS

Today, on …/…/… at ………………………………………, we, the undersigned parties, hereby agree to enter into this house rental contract as follows:

A – THE LANDLORD (LESSOR)

Real Estate Business Company: ……………………………………………

Business License No.: ……………………………………

Issued by: ………………………… on date …/…/…

Legal representative of the landlord: Mr./Ms. …………………………………………..

Permit for leasing the property to foreigners No. …………… issued on …/…/… by ………………………

B – THE TENANT (LESSEE)

Full name: ……………………………………… Age: ……… Nationality: ………………………

Occupation: ……………………………………………………………………

Passport No.: ……………………… issued on ……………………

Temporary residence permit No.: ……………………… issued on ……………………

Representative office license at: ……………………… issued on …………………… (if applicable).

Article 1: Rental Property

a/ Address of the property:
No.: …………………………, including … floors, total built-up area: ……… m², garden area: ……… m²

b/ Purpose of use:

  • Living area: ……… m²

  • Representative office area: ……… m²

c/ Furnishings and facilities included for the tenant’s use:
………………………………………………………………………………………………………

Article 2: Rental Term

The lease term is …… months, commencing from ……………………

Article 3: Rental Payment

  • Monthly rent: ……… USD/month (exclusive of utility costs such as electricity, water, and other infrastructure charges, which are paid separately based on usage).

  • Payment method: Cash or bank transfer/check

  • Advance payment for ……… months

  • Regular payments to be made on the … day of each month

Article 4: Responsibilities of the Landlord

  1. Hand over the property and its equipment/facilities on the agreed start date.

  2. Ensure the tenant’s full and exclusive right to use the leased premises (if the landlord co-resides, applies only to the rented area).

  3. Promptly repair any damages.

  4. Compensate for any material or health damages to the tenant in case of house collapse due to delayed repair.

  5. Guide the tenant in complying with Vietnam’s regulations on temporary residence and absence.

Article 5: Responsibilities of the Tenant

  1. Use the property strictly in line with the agreed purpose. Any renovation must be approved by the landlord and comply with construction regulations.

  2. Pay rent fully and on time.

  3. Be responsible for any damage to the property, loss of furnishings, personal belongings, or harm caused to third parties during the tenancy.

  4. Comply with environmental hygiene and security regulations.

  5. Not transfer the lease or sublet the property. Early termination requires at least 30 days’ notice to the landlord.

Article 6: Mutual Commitments

  1. Both parties agree to fulfill all contractual obligations. In case of dispute or breach, both shall present the matter to the People’s Committee of ……… for resolution.
    If unsatisfied with the decision, either party may escalate the case to the provincial court.

  2. The contract shall terminate under the following conditions:
    a) Lease term has expired
    b) The property is destroyed or subject to demolition under state authority
    c) The tenant sublets, is detained, or deported by the Vietnamese Government

Article 7: Validity of the Contract

This contract is effective from the date of approval by the competent state authority until the end of the lease term.

The contract is made in three (03) copies in both Vietnamese and English, all having equal legal validity. Each party retains one copy, and one is submitted to the local housing authority of ………………

LANDLORD
(Signature & Seal)

TENANT
(Signature & Full Name)

Vietnam Extends 2% VAT Cut Through 2026

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On June 17, Vietnam’s National Assembly officially approved a resolution to extend the current 2% reduction in value-added tax (VAT) until the end of 2026. The decision, backed by 452 out of 453 lawmakers present, aims to support economic recovery and growth by easing the financial burden on consumers and businesses.

Under the newly passed resolution, the standard VAT rate will remain reduced from 10% to 8% for a wide range of goods and services as outlined in Clause 3, Article 9 of the VAT Law No. 48. The tax cut will take effect from July 1, 2025, and last through December 31, 2026.

Which Sectors Are Excluded?

The VAT reduction will not apply to several industries, including: Telecommunications, Financial services, banking, securities, and insurance, Real estate business, Metal and mining products (excluding coal), Goods and services subject to special consumption tax (except for gasoline). Additionally, educational and medical services, which are already exempt from VAT, are also excluded from the policy.

Related: Tax Accounting Services in Vietnam
Expanded Support, But With Limits

Before the vote, Finance Minister Nguyễn Văn Thắng presented the finalized proposal, noting that while some lawmakers called for a broader application of the VAT cut to all taxable goods, others suggested a larger reduction (4–5%) for select essential sectors.

In response, Minister Thắng emphasized that the current version already expands the range of eligible sectors compared to previous resolutions. Notably, the VAT cut will now apply to transportation, logistics, goods trading, and information technology services—sectors seen as vital to Vietnam’s digital and economic growth.

Fiscal Trade-offs

The government estimates that the VAT reduction will result in state budget revenue losses of approximately VND 121.74 trillion (USD 4.8 billion) over the next 18 months. That includes around VND 39.54 trillion in the second half of 2025 and VND 82.2 trillion in 2026.

If the VAT cut were to be extended to all goods and services currently taxed at 10%, the potential revenue loss could balloon to VND 167 trillion (USD 6.6 billion) over the same period—posing a risk to fiscal stability and public debt management.

“We must ensure the sustainability of national finances,” Minister Thắng said. “Expanding the VAT cut to all goods could encourage consumption of products we should actually limit—like those subject to special consumption taxes. This could conflict with broader development and environmental goals.”

Policy Duration and Economic Strategy

While some lawmakers called for either a shorter or longer timeframe, the government opted for a 1.5-year duration, arguing it strikes the right balance between stability and flexibility. The longer policy window is expected to give businesses more predictability and stimulate growth in line with Vietnam’s 10-year socio-economic development strategy (2021–2030).

Minister Thắng added that the VAT cut is designed to help the country reach GDP growth of 8% in 2025 and lay the foundation for double-digit growth from 2026 onward.

However, he also stressed that this reduced VAT rate is temporary and does not reflect a shift in long-term tax policy. Vietnam still aims to consolidate its tax system by gradually moving toward a unified VAT rate and possibly increasing it in the future, in line with broader fiscal reforms.

U.S. Aircraft Carrier Cancels Vietnam Visit Amid Escalating Middle East Tensions

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Vietnam Insider – The U.S. Navy aircraft carrier USS Nimitz has abruptly departed the South China Sea and redirected its course toward the Middle East, canceling a planned port call in Vietnam, multiple sources confirmed on June 16.

The vessel was scheduled to arrive in Da Nang later this week, but the visit was canceled due to what officials described as an “urgent operational requirement.” The information was first shared on June 13 by Florian Feyerabend, Country Representative of the German Konrad-Adenauer-Stiftung (KAS) in Vietnam, who cited a U.S. Embassy communication via a post on social platform X.

According to maritime tracking data reviewed by Reuters, the USS Nimitz was observed moving westward on Monday morning, in the direction of the Middle East—where tensions between Israel and Iran have rapidly escalated following days of reciprocal missile strikes.

While the U.S. Embassy in Hanoi has yet to issue an official comment, the redirection underscores the shifting priorities of U.S. military deployments amid mounting global security challenges.

Last week, the USS Nimitz Carrier Strike Group conducted maritime security operations in the South China Sea, described by the U.S. Pacific Fleet as part of its routine presence in the Indo-Pacific. The deployment was widely seen as a reaffirmation of U.S. commitment to regional stability and freedom of navigation.

The canceled Vietnam visit comes at a sensitive time, as Hanoi continues to deepen diplomatic and security ties with both Washington and Beijing. The move may also signal the increasing volatility of global U.S. naval operations as multiple crises unfold across regions.

Vietnam Insider will continue to follow developments as they unfold.

Israel Underestimated Iran’s Ability to Regroup After Leadership Strikes, Analyst Says

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Despite the decapitation of its top military leadership in Israel’s initial air campaign, Iran has demonstrated a surprising ability to regroup and mount sustained counterattacks, according to Trita Parsi, vice president of the Quincy Institute for Responsible Statecraft.

Speaking to Vietnam Insider, Parsi noted that Israel had likely assumed its targeted killings would cripple Iran’s military command and control capabilities. “They [the Israelis] underestimated the Iranian ability to regroup after very successfully targeting the top leadership of the Iranian military,” he said. “But that idea was quickly restructured.”

Related: What We Know So Far: Israel–Iran Conflict Escalates After Surprise Strikes

Since the launch of Israel’s Operation Rising Lion last week, which killed several senior Iranian commanders—including the chief of staff of the armed forces, the head of the Islamic Revolutionary Guard Corps (IRGC), and key figures from Iran’s air force and national security apparatus—Iran has continued to launch waves of ballistic missile attacks.

Parsi pointed out that Iranian missiles have been able to penetrate multiple layers of Israel’s advanced air defense systems, suggesting Tehran’s operational capabilities remain intact despite its leadership losses.

The renewed strikes early Monday morning hit multiple sites across Israel, intensifying a conflict that has now claimed hundreds of lives. Explosions lit up the night skies over Tel Aviv and Haifa, where fires were reported at energy infrastructure sites. Meanwhile, in Tehran, the fear of further Israeli retaliation has triggered an exodus of residents seeking safety.

The ability of Iranian forces to reorganize rapidly has taken many observers by surprise, signaling that Iran had contingency plans in place for precisely such a scenario. The ongoing exchanges mark a dangerous new phase in the conflict, with both sides showing little sign of restraint.

As the region teeters on the edge of broader war, analysts warn that miscalculation or continued escalation could draw in additional powers and destabilize the Middle East further.

Vietnam Insider will continue to monitor this developing story.

Vietnam Airlines Flight from Da Nang to Hanoi Makes Emergency Landing in Hue

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Vietnam Insider — A Vietnam Airlines flight traveling from Da Nang to Hanoi was forced to make an emergency landing at Phu Bai International Airport in Hue this morning after a young female passenger experienced a sudden health issue.

According to a Vietnam Airlines representative speaking to Vietnam Insider, flight VN158 had been airborne for just five minutes when 25-year-old passenger T.T.P.D., seated in 11B, showed signs of serious medical distress. The cabin crew immediately broadcast a request for medical professionals on board and began administering first aid, including providing the passenger with an oxygen supply.

Despite their efforts, the passenger’s condition did not improve. The captain quickly coordinated with the airline’s operations center and alerted ground personnel at Phu Bai Airport to prepare emergency medical support. The flight was rerouted and safely landed in Hue, where the passenger was promptly transported to a local hospital for treatment, accompanied by a family member and a Vietnam Airlines representative.

After completing necessary formalities, flight VN158 resumed its journey to Hanoi at 9:10 a.m., approximately one hour behind schedule.

This is not the first time Vietnam Airlines has diverted a flight to prioritize a passenger’s well-being. On May 6, flight VN37 from Hanoi to Frankfurt made an unscheduled landing in Erzurum, Turkey to assist a traveler in medical distress. Earlier this year, flight VN1602 from Buon Ma Thuot to Hanoi was diverted to Da Nang for a similar medical emergency.

“While such diversions may result in additional costs related to fuel, ground services, and flight scheduling, passenger safety and health remain our top priority in every situation,” the airline representative emphasized.

What We Know So Far: Israel–Iran Conflict Escalates After Surprise Strikes

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A dramatic escalation in the longstanding tensions between Israel and Iran has unfolded over the past several days, following a surprise Israeli strike on Iranian territory on Friday.

The conflict has since intensified into the most serious direct confrontation between the two regional powers in decades, raising fears of a broader Middle East war.

Key Developments in the Conflict

1. Israeli Surprise Attack on Iran

In the early hours of June 13, Israel launched a massive pre-emptive assault across Iran, striking over 100 high-value targets. These included military installations, missile sites, and nuclear facilities. While the Natanz nuclear enrichment site sustained visible damage, its core fuel enrichment plant reportedly remains intact. A nuclear research facility in Isfahan was also among the key targets.

2. High-Level Iranian Casualties

Among the most significant losses for Iran were top-ranking military figures. The attack reportedly killed Maj. Gen. Mohammad Bagheri, Iran’s armed forces chief of staff, and IRGC commander Gen. Hossein Salami. At least six nuclear scientists were also confirmed dead, a move that analysts suggest is aimed at crippling Iran’s nuclear capabilities.

3. Ongoing Israeli Strikes

Following the initial bombardment, the Israel Defense Forces (IDF) continued airstrikes throughout the weekend, targeting Tehran’s air defenses and strategic command centers. Israel claims it has achieved air dominance over the Iranian capital and has since hit more than 80 additional targets, including the Iranian defense ministry and key missile launch sites.

The Iranian health ministry reported 224 civilian deaths since Friday, accusing Israel of striking residential neighborhoods. The Iranian oil ministry also confirmed attacks on two fuel depots near Tehran.

4. Iran’s Retaliation

In response, Iran launched multiple waves of missile attacks against Israel. As of Monday, at least 14 people had been killed and nearly 400 injured across Israeli cities, including Tel Aviv, Haifa, and Bat Yam. A strike in Tamra leveled a three-story building, killing four women. Fires were seen at a power plant in Haifa following overnight bombardments.

5. Warnings to the West

Tehran issued strong warnings to the United States, United Kingdom, and France, threatening to target military bases and naval assets if they interfered with Iran’s retaliation. U.S. officials acknowledged using missile defense systems—including a Navy destroyer—to intercept Iranian projectiles. The UK has repositioned military assets to the region, though Prime Minister Keir Starmer has not committed to direct military involvement.

6. Israel’s Justification

Israeli Prime Minister Benjamin Netanyahu defended the operation as a necessary step to prevent Iran from building nuclear weapons. Citing intelligence reports, he claimed Tehran has enriched enough uranium to build up to nine nuclear bombs. This coincided with a ruling by the International Atomic Energy Agency (IAEA) last week, which found Iran in violation of nuclear transparency obligations.

7. Breakdown of Diplomacy

Iran’s Supreme Leader Ayatollah Ali Khamenei accused Israel of targeting civilians and promised “severe punishment.” Prospective ceasefire efforts—mediated by Qatar and Oman—have stalled, as Tehran refuses to negotiate while under attack. Scheduled U.S.–Iran nuclear talks were abruptly canceled.

8. The U.S. Position

While U.S. Secretary of State Marco Rubio initially stated that the U.S. was not involved in Israel’s decision to strike, President Donald Trump later acknowledged American awareness of the plan. At the G7 summit in Canada, Trump said he is working discreetly on a diplomatic resolution. However, Reuters reported that Trump had recently vetoed an Israeli plan to target Ayatollah Khamenei directly.

Outlook

With no signs of de-escalation, the Israel–Iran conflict threatens to reshape the geopolitical landscape of the Middle East. The stakes are high—not only for the two nations involved but also for global powers with strategic interests in the region. The coming days will be critical in determining whether the conflict spirals into a broader war or is contained through diplomatic channels.

Vietnam Insider will continue to provide updates as the situation develops.

U.S. Pressures Vietnam to Reduce Reliance on Chinese Technology in Exported Electronics

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Vietnam Insider – The United States is urging Vietnam to scale back its use of Chinese technology in electronic goods assembled domestically and exported to the U.S., according to sources familiar with ongoing trade discussions.

The push comes as part of broader tariff negotiations, with Washington emphasizing the need for Vietnam to reduce dependence on Chinese components in high-tech manufacturing. Vietnam has become a key production hub for global tech giants including Apple, Samsung, Meta, and Google—many of which source critical parts from China.

Related: Vietnam, U.S. Make Progress in Trade Talks but Key Issues Remain

Sources say the U.S. sees this shift as a strategic move to accelerate its own decoupling from Chinese supply chains, while simultaneously boosting Vietnam’s industrial capacity. Products such as virtual reality headsets and smartphones assembled in Vietnam but reliant on Chinese inputs are seen as a particular concern.

Vietnamese authorities have begun engaging local manufacturers to encourage the use of domestically produced components. While companies have expressed willingness to adapt, many warn that rapid changes would disrupt current operations without significant technological and logistical support.

Trade tensions have risen amid a looming July 8 deadline for new U.S. tariffs, with rates reportedly as high as 46% if no agreement is reached. Vietnam’s Ministry of Trade confirmed that a third round of negotiations in Washington recently concluded with some progress, though key issues remain unresolved.

In parallel, the U.S. has also asked Vietnam to take stronger action against the mislabeling of Chinese-made goods as “Made in Vietnam” to avoid higher U.S. duties—a practice Hanoi is reportedly addressing.

China remains Vietnam’s largest source of technology imports, accounting for roughly $44 billion last year. At the same time, the U.S. is Vietnam’s top export destination for tech products, totaling $33 billion in 2024. Both figures are continuing to rise.

Vietnamese negotiators are said to view Washington’s demands as “tough,” balancing pressures from both geopolitical allies and regional partners. The situation adds complexity to Vietnam’s delicate relationship with China—both an important investor and a source of strategic friction.

Vietnam’s Communist Party chief, To Lam, is expected to meet U.S. President Donald Trump in Washington later this month, though no official date has been confirmed.

Iran Refuses Ceasefire Talks While Under Israeli Attack, Says Official

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Iran has informed regional mediators Qatar and Oman that it will not enter ceasefire negotiations while it remains under active Israeli assault, according to a senior official familiar with the discussions.

The official, who spoke to Reuters on condition of anonymity due to the sensitivity of the matter, said Tehran made it clear it would only engage in serious negotiations once it has fully responded to Israel’s pre-emptive strikes.

“Iran has conveyed that it will not negotiate under fire,” the source said.

Relate: Israel–Iran Violence Escalates as Trump Suggests Peace Deal Still Possible

The escalation follows a surprise Israeli attack launched on Friday, which reportedly targeted senior Iranian military leadership and key nuclear facilities. Israeli authorities have indicated the campaign will intensify in the coming days.

Iran, in turn, has vowed fierce retaliation, warning of severe consequences and describing the situation as the most intense confrontation between the two rivals to date.

Contrary to media speculation, the source rejected claims that Iran had asked Qatar and Oman to approach the United States for ceasefire mediation or to reopen stalled nuclear negotiations.

Neither Iran’s foreign ministry nor the governments of Qatar and Oman have issued public comments on the matter. Both Gulf nations have maintained diplomatic ties with Tehran and Washington, and have historically played roles as intermediaries—including in nuclear talks and a 2023 prisoner exchange.

Oman’s latest effort to revive U.S.–Iran nuclear negotiations was reportedly cancelled shortly after Israel launched its military operation last week.

Hanoi Urges Caution After Foreign Tourist’s Close Call at Train Street

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Vietnam Insider — Vietnamese authorities are reinforcing safety measures for foreign visitors after a foreign tourist narrowly escaped injury at the popular yet controversial “Train Street” in Hanoi.

On June 14, the Traffic Police Department under the Ministry of Public Security confirmed that it is working with local units to verify a video clip circulating online, which captured a dangerous incident at the iconic railway café area in Hoan Kiem District.

The footage shows a group of tourists seated mere centimeters from the tracks, waiting to experience the thrill of a passing train. As the Reunification Express approached, the train driver sounded three warning horns. Shockingly, a foreign tourist engrossed in filming lost his balance and fell toward the moving train. Nearby visitors managed to pull him back just in time, narrowly avoiding a tragic accident. The table and drinks around him were knocked over during the chaos.

The incident has sparked public outrage over ongoing safety hazards in the area, where visitors frequently gather for social media photos despite warnings.

Previously, the Hanoi Department of Tourism issued an official directive urging local travel agencies not to promote or organize tours to the Train Street cafés — especially those located in the wards of Cua Nam, Hang Bong, and Cua Dong. The document emphasized the need to protect both tourists and rail operations.

The Vietnam Railway Authority also called on the Hanoi People’s Committee to take action, recommending the dispersal of large crowds and a crackdown on cafés operating within the railway safety corridor.

Despite multiple warnings and enforcement efforts, the Train Street area remains a magnet for thrill-seekers and Instagrammers. Authorities remind tourists that while Hanoi is proud to welcome international visitors, safety must come first. Travelers are advised to avoid areas where they may be exposed to serious risks.

Visitors are encouraged to enjoy the cultural charm of Hanoi responsibly — and from a safe distance.

Vietnam’s Electronics Rise in EMS and SMT: Could It Be the Next Best Option For China Plus One?

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As global electronics brands increasingly seek to diversify their manufacturing bases, Vietnam has emerged as a compelling destination for Electronics Manufacturing Services (EMS). While China remains dominant, recent geopolitical shifts, rising labor costs, and supply chain vulnerabilities have accelerated the “China Plus One” strategy. Among the primary sectors experiencing this shift are Surface-Mount Technology (SMT) and full EMS, including Box-Build and Battery Management System (BMS) integration.

The Rise of Vietnam in Global EMS

Vietnam’s electronics manufacturing exports have grown rapidly over the past decade, driven by increasing foreign direct investment (FDI) from both Asian and Western companies. In particular, central regions like Da Nang and Quang Nam are becoming hubs for high-precision electronics manufacturing. This rise is not accidental; the Vietnamese government has strategically promoted high-tech sectors, invested in industrial park infrastructure, and partnered with universities to develop a skilled labor pool.

Notable global brands like Samsung, Foxconn, and Intel have expanded operations in Vietnam, setting a precedent for Tier-2 and Tier-3 EMS providers to follow. Local firms have also matured rapidly, offering comprehensive services ranging from PCB assembly (PCBA) to final product box-builds.

In this video, we offer a behind-the-scenes look at the production line of a leading EMS factory in Vietnam, showcasing SMT processes, box-build assembly, and BMS integration in action.

SMT Infrastructure and Capability

Surface-Mount Technology (SMT) is the backbone of modern electronic assembly, allowing for high-density circuit design and efficient automated production. Vietnamese EMS factories have made significant investments in automated SMT lines equipped with advanced pick-and-place machines. These systems ensure high throughput and precision during component placement on printed circuit boards.

To ensure optimal solder joint quality, factories utilize reflow ovens that control temperature profiles with high accuracy. Quality assurance is further reinforced through the use of flying probe testers and In-Circuit Testers (ICT), which validate the electrical functionality of assembled boards. Defect detection is handled by Automated Optical Inspection (AOI) systems, which scan for component misplacements, soldering errors, and other anomalies.

Many Vietnamese facilities maintain international standards, being certified under ISO 9001 and ISO 14001. An increasing number are also achieving ISO/TS 16949 certification, particularly to support automotive electronics production. While Vietnam still trails China in terms of SMT line density and the depth of its local component ecosystem, the quality of execution for small to mid-volume batches is steadily improving. Factories are also beginning to adopt Manufacturing Execution Systems (MES) and Supervisory Control and Data Acquisition (SCADA) technologies to enhance traceability and process control.

>> Related article: Inside a Vietnam Mattress Factory: Enhanced Quality Through Technology

Comparing Labor and Cost Structures

One of Vietnam’s strongest comparative advantages is labor cost. The average monthly salary for an SMT line operator in Vietnam ranges between $250 to $800, which is significantly lower than the $700 to $ 2220 range found in China. This cost efficiency makes Vietnam particularly attractive for EMS providers producing medium- to low-margin electronics, including IoT devices and consumer accessories.

In addition to favorable wages, Vietnam has developed a capable workforce through vocational training programs and higher education institutions. These programs emphasize electronics design, robotics, and quality management, equipping workers with the skills needed in high-tech manufacturing.

Nonetheless, China retains an edge in labor productivity per unit, benefiting from its more mature ecosystem, extensive experience, and tighter integration among component suppliers, contract manufacturers, and logistics providers.

Box Build and BMS Integration: Vietnam’s Added Value

Vietnamese EMS factories are moving beyond basic PCB assembly to offer comprehensive solutions, including Box Build and Battery Management Systems (BMS) manufacturing. These capabilities encompass the system-level integration of enclosures, connectors, and wire harnesses, offering a more complete product build under one roof.

Furthermore, EMS providers in Vietnam have expanded to include services such as firmware flashing and functional testing, ensuring that final assemblies are both software-ready and functionally validated. Many facilities are now producing power and battery modules tailored for electric vehicle (EV) and e-bike applications, signaling their readiness to serve advanced sectors.

This vertical integration reduces complexity in the supply chain for global brands. By housing PCBA, box build, and BMS production within the same facility, companies benefit from shorter lead times, streamlined operations, and centralized quality control.

>> Related article: Vietnam’s FDI Landscape: Its Transformation from Labor-Intensive to High-Tech Growth

Strategic and Operational Considerations

Manufacturing in Vietnam presents several strategic advantages. First, labor costs remain competitive, making it cost-effective for many categories of electronic goods. Second, Vietnam’s participation in trade agreements such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) enhances its attractiveness to exporters. The country’s political stability and openness to foreign direct investment further contribute to its favorable business environment. Lastly, Vietnam’s geographical position offers strategic access to key ASEAN markets.

However, there are important challenges to consider. The local availability of raw materials and electronic components is limited, often necessitating imports from countries like China or South Korea. This reliance can extend lead times and increase supply chain complexity. Additionally, Vietnam faces infrastructure bottlenecks, particularly in logistics and transportation outside of major urban centers. Finally, its EMS ecosystem is smaller and less developed than that of China’s Pearl River Delta or Yangtze River Delta regions.

Final Thought: The Future Outlook

Vietnam’s rise as an EMS and SMT manufacturing hub signals a broader shift in global electronics production strategy. No longer seen as just a low-cost alternative, Vietnam is evolving into a strategic base for export-focused, mid- to high-value electronic products. Its growing capabilities in SMT automation, box-build assembly, and BMS integration—combined with competitive labor costs and government support—make it increasingly attractive for OEMs adopting the China Plus One strategy.

However, challenges remain. Vietnam’s EMS ecosystem is still developing in terms of local component availability, supply chain depth, and logistics infrastructure. Yet, the rapid investments in industrial parks, the strengthening of vocational training programs, and the adoption of digital manufacturing technologies (such as MES and SCADA) suggest that Vietnam is preparing to close the gap.

For global sourcing managers, engineering leads, and strategy consultants, Vietnam offers not only a cost-effective production base but also a long-term opportunity to build resilience and flexibility into the electronics supply chain. As the demand for diversified and regionally balanced manufacturing grows, Vietnam is set to become a key player in the global EMS landscape.

Vietnam Airlines to Launch First Direct Flight Route to Northern Europe

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Vietnam Insider — Vietnam Airlines announced it will launch the first-ever direct flight route between Vietnam and Northern Europe, connecting Ho Chi Minh City and Copenhagen, Denmark, starting December 15.

According to the national flag carrier’s statement released on Sunday, the new route will operate three times per week using Boeing 787-9 Dreamliner aircraft. Departures from Ho Chi Minh City are scheduled for Mondays, Wednesdays, and Fridays, while return flights from Copenhagen will operate on Tuesdays, Thursdays, and Saturdays.

This marks the first nonstop service between Vietnam and Denmark and establishes a new air bridge between Southeast Asia and Northern Europe.

Vietnam Airlines aims to meet growing demand for travel, tourism, family visits, and business exchanges, especially within the Vietnamese diaspora of more than 70,000 people living across the Nordic region. Deputy CEO Dang Anh Tuan emphasized that the new route is part of the airline’s broader strategy to expand its European network, targeting Northern Europe as a high-potential market.

Copenhagen, the largest air transit hub in Northern Europe, serves as the primary base for Scandinavian Airlines, a fellow member of the SkyTeam Alliance. This strategic alignment will enable Vietnam Airlines passengers to easily connect to neighboring countries such as Sweden, Norway, and Finland through integrated transit services.

Looking ahead, Vietnam Airlines plans to launch and restore up to 15 international routes in 2025, targeting key markets including Italy, Russia, China, the UAE, Japan, South Korea, and India. Currently, the carrier operates direct flights to the United Kingdom, France, Germany, and Russia. Beginning in early July, it will also commence service between Hanoi and Milan, Italy.

Vietnam, U.S. Make Progress in Trade Talks but Key Issues Remain

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Vietnam Insider — Vietnam and the United States made notable progress during their third round of trade negotiations last week, though several critical issues remain unresolved and will require further analysis and continued dialogue, Vietnam’s Ministry of Industry and Trade said on Sunday.

The high-level talks took place in Washington, D.C. from June 9–12, as both countries face mounting pressure to reach a compromise ahead of the early-July expiration of a suspension on 46% “reciprocal” tariffs affecting a broad range of Vietnamese exports.

Vietnam’s trade surplus with the U.S. reached $12.2 billion in May, marking a 42% year-on-year increase and a 17% jump compared to April, according to government data. Total exports to the U.S. rose to $13.8 billion, setting a new high since the COVID-19 pandemic.

During the negotiations, U.S. officials presented a list of trade demands that Vietnamese representatives described as “tough,” including calls for Vietnam to reduce its reliance on industrial materials and components imported from China. However, the trade ministry noted that both sides had made progress in narrowing differences based on Vietnam’s official response and were working toward mutually acceptable solutions.

The two delegations agreed to convene a follow-up online meeting in the coming days between Vietnam’s Minister of Industry and Trade Nguyen Hong Dien and U.S. Secretary of Commerce Howard Lutnick to address outstanding concerns.

The latest round of talks also included U.S. Trade Representative Jamieson Greer, reflecting a trilateral format proposed by Washington.

In response to U.S. pressure, Vietnamese authorities have recently intensified efforts to combat illegal transshipment practices, particularly involving goods originating from China. Additionally, Vietnam has signaled its openness to easing non-tariff barriers and increasing imports of American goods such as aircraft, agricultural products, and energy—though no formal purchase agreements have been announced to date.

The ongoing negotiations are viewed as critical to maintaining stable economic ties between the two countries, especially as bilateral trade continues to expand rapidly.

U.S. Considers New Visa Bans for Citizens of 36 Countries Under Trump Administration’s Tougher Immigration Policy

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Washington D.C., June 16 – The U.S. government under President Donald Trump is once again tightening immigration controls, signaling a significant expansion of entry restrictions targeting citizens from 36 countries. This move aligns with Trump’s broader immigration crackdown, echoing his first-term policies.

According to an internal memorandum signed by U.S. Secretary of State Marco Rubio and obtained by The Washington Post, the Trump administration is considering imposing new travel and visa restrictions on 36 nations. The list includes major U.S. partners such as Egypt and Djibouti, as well as a large number of African nations, several Asian states, Caribbean island nations, and Pacific countries.

60 Days to Comply

The memo, circulated to U.S. diplomatic missions worldwide on June 14, gives the countries 60 days to comply with stricter identity verification and border control standards set by the U.S. Department of State. Countries that fail to meet these new requirements could face partial or full suspension of visa services.

The countries reportedly on the list are accused of lacking effective governance, failing to cooperate on identity documentation, or having a high number of citizens who have overstayed or violated visa conditions in the U.S.

However, there’s a potential path to leniency. The memo notes that if a country agrees to accept third-country nationals being deported by the U.S., it may influence Washington’s decision to ease other concerns.

Who’s on the List?

The 36 countries facing potential restrictions include:

  • 25 African countries: Angola, Benin, Burkina Faso, Cabo Verde, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Djibouti, Egypt, Gabon, Gambia, Ghana, Liberia, Malawi, Mauritania, Niger, Nigeria, São Tomé and Príncipe, Senegal, South Sudan, Tanzania, Uganda, Zambia, and Zimbabwe.
  • 4 Asian countries: Bhutan, Cambodia, Kyrgyzstan, and Syria.
  • 4 Caribbean nations: Antigua and Barbuda, Dominica, Saint Kitts and Nevis, and Saint Lucia.
  • 3 Pacific island countries: Tonga, Tuvalu, and Vanuatu.

These countries have until 8 a.m. on June 18 to submit initial action plans demonstrating efforts to comply with the new U.S. requirements.

Policy Context

The State Department has not confirmed whether the restrictions will be enacted immediately after the June 18 deadline. A spokesperson declined to comment on internal policy discussions but reiterated that the department “continually reviews policies to ensure the safety of the American people and compliance with U.S. immigration law.”

The leaked memo surfaces just a week after President Trump reinstated a version of the controversial travel ban first implemented during his initial term and signed an executive order blocking entry from 12 countries, with limited restrictions applied to 7 others.

In January, Trump had directed the State Department to identify countries with “inadequate verification systems” that may warrant full or partial entry suspensions. The current proposal is seen as part of a sweeping anti-immigration agenda, which also includes plans for the largest mass deportation operation in U.S. history, the cancellation of humanitarian protections, and the revocation of thousands of visas.

What It Means for Foreign Nationals

If implemented, this policy could dramatically restrict travel and visa opportunities for citizens from the affected countries, disrupting families, business relations, and diplomatic ties. For foreign nationals already in the U.S. or those planning to travel for work, study, or tourism, the looming policy shift adds new layers of uncertainty.

Vietnam, notably, is not on the current list of 36 countries, but the precedent may concern other nations in Southeast Asia, especially if visa overstays or documentation gaps become diplomatic sticking points.

Vietnam Insider will continue to monitor this developing story and provide updates as more information becomes available.

Vietnam Legalizes Digital Assets Under Landmark Digital Technology Law

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HANOI, June 15, 2025 – In a historic move, Vietnam has officially legalized digital assets following the National Assembly’s approval of the Law on Digital Technology Industry on Saturday.

The new law provides the first comprehensive legal framework for digital assets in the country, setting the stage for greater innovation, investment, and global integration.

Under the legislation, digital assets are divided into two categories: virtual assets and crypto assets. Virtual assets are digital instruments used for exchange or investment, while crypto assets rely on encryption technologies to validate transactions and ownership. Both are clearly defined as separate from securities, digital versions of fiat currency, and other financial instruments governed by existing laws.

The law assigns the Vietnamese government the responsibility to detail business conditions, classifications, and management mechanisms for digital assets. It also requires regulatory agencies to enforce cybersecurity protocols and introduce safeguards to combat money laundering, terrorist financing, and the spread of weapons of mass destruction—measures aligned with global standards.

Currently on the Financial Action Task Force (FATF) “gray list” for anti-money laundering, Vietnam is expected to benefit significantly from this legal breakthrough. The FATF had urged the country to clarify its virtual asset regulations since 2023, and this law could pave the way for its removal from the list.

Effective January 1, 2026, the law—drafted by the Ministry of Science and Technology—signals Vietnam’s ambition to become a digital powerhouse. It introduces a wide range of incentives to nurture the digital technology ecosystem, from tax breaks and land-use incentives to support for innovation hubs and high-tech talent.

Key highlights include:

Special incentives for companies developing core digital technologies, including AI, software, semiconductors, and data centers.

Talent development policies, such as subsidies for hiring, training, and upskilling employees, especially in strategic areas like AI and chip manufacturing.

Support for R&D across the entire semiconductor value chain—from research and design to testing and packaging.

Integration of digital technology education into national training systems, promoting skill certifications that meet international and regional standards.

AI governance frameworks, especially for high-risk AI systems, to ensure responsible innovation and risk mitigation.

Le Quang Huy, Chairman of the National Assembly’s Committee on Science, Technology and Environment, emphasized the law’s role in establishing Vietnam as a critical player in the global semiconductor supply chain. “This is a strategic blueprint to accelerate Vietnam’s position in the world of digital technology,” he stated.

As Vietnam embarks on this digital journey, the new law lays a strong foundation not only for legal clarity and regulatory stability but also for transforming the nation into a regional innovation hub.

Israel–Iran Violence Escalates as Trump Suggests Peace Deal Still Possible

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Vietnam Insider – Fresh airstrikes between Israel and Iran intensified over the weekend, deepening a rapidly worsening conflict that has already claimed scores of lives on both sides. Despite the violence, U.S. President Donald Trump stated the conflict “can be easily ended,” while warning Iran against targeting American interests.

In Israel, seven people were killed overnight, including children, as missiles struck residential buildings in cities like Bat Yam, Jerusalem, and Haifa. Over 140 others were injured. Search and rescue teams worked through the night to locate missing residents, with at least 35 people unaccounted for following a strike on an apartment block.

The Israeli military reported multiple waves of Iranian missile attacks throughout Saturday night into early Sunday, prompting millions to take shelter. Explosions rocked Tel Aviv and Jerusalem as Israel’s air defenses intercepted incoming projectiles. Iran’s regional ally, the Houthis in Yemen, also claimed to have launched ballistic missiles toward central Israel for the first time.

In Tehran, Iranian officials reported over 130 deaths in two days, including 29 children killed when a missile hit a high-rise apartment building. Iran said Israel had targeted critical infrastructure, including the Shahran oil depot and an oil refinery near the capital.

The escalation has derailed nuclear diplomacy. Iran canceled scheduled talks with the U.S. in Oman, accusing Washington of complicity in what it called Israel’s “barbaric” attacks. Tehran had previously stated negotiations were the only path to ending the strikes.

Prime Minister Benjamin Netanyahu vowed Israel’s campaign was far from over, warning that Iran would face much more severe retaliation.

President Trump, while issuing a strong military warning to Iran, also hinted at the possibility of brokering a peace agreement—but did not provide details. “We can easily get a deal done between Iran and Israel, and end this bloody conflict,” he said via Truth Social.

As international concern grows, observers fear that the worsening Israel-Iran conflict could spiral into a broader regional war, drawing in allied groups and disrupting stability across the Middle East.

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