The Vietnam Cycle Expo 2025, one of the country’s largest international exhibitions for bicycles, electric bikes, electric motorcycles, motorbikes, and related accessories, is set to take place in Ho Chi Minh City from August 14 to 16, according to the Vietnam News Agency.
The expo will host more than 400 booths showcasing innovative products from leading Vietnamese and international manufacturers. Attendees can expect to see cutting-edge designs, enhanced product quality, and the latest in sustainable and “green” transportation technologies.
Beyond the product displays, the event will also serve as a forum for industry professionals to discuss emerging trends in eco-friendly mobility and offer a platform for new brands to make their debut.
Vietnam Cycle Expo 2025 will be held in conjunction with the Vietnam Sport Show 2025, an international exhibition focused on sports, fitness, and outdoor entertainment. Together, the two events will feature over 500 booths and are expected to attract more than 20,000 visitors over the three-day program.
This combined event offers a unique opportunity for business networking, market exploration, and consumer engagement across the cycling and sports industries.
The Vietnamese Embassy in Israel has urged Vietnamese nationals to “proactively prepare and seek ways to leave Israel via land routes,” and has launched an online registration form to support those wishing to evacuate.
In a statement issued on June 17, the embassy said: “In light of the current situation and to ensure the safety of Vietnamese citizens in Israel, the Embassy of Vietnam advises citizens to actively prepare and explore ways to exit Israel via land border crossings—particularly toward Jordan or Egypt—when security conditions allow.”
To facilitate assistance, the embassy has opened an online registration form for those intending to return to Vietnam or travel to a third country. The deadline to register is 3:00 p.m. local time (7:00 p.m. Hanoi time).
The embassy will compile a list of registrants and coordinate with relevant authorities to develop appropriate support plans based on the needs of different groups and depending on the evolving security situation.
The embassy also advised Vietnamese citizens in Israel to strictly comply with local security regulations, stay fully prepared with essential supplies in case of emergency evacuation or temporary shelter, especially if their homes are damaged and uninhabitable. Citizens are encouraged to maintain regular contact with the embassy.
The notice warned that the risk of casualties and property damage in Israel may increase due to recent missile attacks from Iran, with central and northern regions remaining high-risk areas.
As of March 2025, there are approximately 700 Vietnamese nationals residing in Israel.
Meanwhile, in Iran, Ambassador Nguyen Luong Ngoc confirmed that the Vietnamese community remains safe, mentally stable, and in frequent contact with the embassy. There are currently 38 Vietnamese citizens in Iran, including embassy staff, local residents, and short-term visitors. The embassy in Iran is also working closely with Vietnamese authorities, local agencies, and relevant countries to implement necessary citizen protection measures, including evacuation plans if required.
Emergency Contacts:
In Israel:
Mr. Tran Van Giooc, First Secretary
Phone: +972-555-025-616 | Email: giooctv.mofa@gmail.com
Experts say any potential market downturn would likely be short-lived, while oil and gas stocks may benefit in the near term.
As geopolitical tensions between Israel and Iran escalate, concerns are mounting over the potential impact on global financial markets, including Vietnam’s stock exchange. Yet, experts suggest the effects may be limited and short-term—particularly if the conflict remains contained within the region.
Geopolitical Tensions Aren’t the Only Market Driver
On June 17, Israel launched a large-scale airstrike on Iran, prompting an emergency national security meeting called by U.S. President Donald Trump. While dramatic, such developments may not have a lasting impact on stock markets, according to Nguyen Viet Duc, Head of Digital Sales at VPBank Securities (VPBankS).
Drawing from historical data, Duc noted that most geopolitical conflicts over the past 50 years have caused market volatility lasting only one or two sessions—unless they escalated significantly or involved direct U.S. military action.
“If the conflict remains regional, the primary impact would likely be seen in oil prices, not in global equity markets,” Duc said. In contrast, when the U.S. becomes directly involved, such as after the 9/11 attacks or the Gulf War in 1992, markets tend to see a deeper correction of 10–11%, with recoveries taking up to 70 days.
Currently, global markets seem to be pricing in a scenario where the conflict is contained within the Middle East and the U.S. stays on the sidelines. Oil prices remain around $70 per barrel—lower than the 2024 average. Duc added that as long as prices stay within the $70–$80 range, the overall impact should be manageable.
More notably, he emphasized that major downturns in stock markets tend to stem from macroeconomic factors, such as the 2008 global financial crisis or Vietnam’s 2022 bond market turmoil, rather than from armed conflicts.
Capital Flows and Market Sentiment
Analysts at Agriseco Securities echoed this view, pointing out that short-term risk aversion could lead to capital outflows—both direct and indirect—from financial markets located in or near the conflict zone.
Heightened geopolitical risks may also lead global investors to be more cautious with high-risk assets. If the conflict disrupts global supply chains and drives up energy prices, inflation could rise, potentially delaying interest rate cuts from major central banks like the U.S. Federal Reserve or the European Central Bank. Such developments could trigger negative reactions in global markets, indirectly affecting Vietnam’s bourse.
Still, historical data shows that both the Dow Jones and Vietnam’s VN-Index have typically rebounded within 10–20 sessions following geopolitical shocks.
Oil and Gas Stocks Surge Amid Conflict
From late last week into early this week, oil and gas stocks on the HoSE and HNX exchanges have seen a flurry of activity. Some tickers even hit the daily ceiling two sessions in a row.
According to Duc, the rally in energy stocks was anticipated. “Even before the conflict began, we had identified oil and gas as an attractive sector based on solid earnings, low valuations, and strong cash flow. This momentum only accelerated once geopolitical risks surfaced.”
Agriseco forecasts that the stock market may experience short-term declines due to rising concerns over the conflict’s escalation. However, markets are expected to stabilize and resume their upward trend shortly thereafter. The initial drop, they suggest, could present a buying opportunity for long-term investors targeting fundamentally strong companies with growth potential.
Why Vietnam’s Market May Remain Resilient
Vietnam’s stock market is relatively insulated from the Israel-Iran conflict. Trade and investment ties with the Middle East remain minimal, and there is virtually no direct exposure to either Israel or Iran.
Moreover, in a world increasingly wary of geopolitical instability, Vietnam’s reputation for political stability may position it as a safe haven for investors and global manufacturers looking to diversify supply chains away from high-risk regions.
While patrolling along National Highway 1A, traffic police in Ha Tinh Province discovered two young foreign men walking in a disoriented and exhausted state. The individuals later confessed they had been deceived into entering Vietnam illegally with false promises of lucrative and easy jobs in a third country.
On June 16, the Traffic Police Division of Ha Tinh Provincial Police reported that two Chinese nationals had been found walking barefoot along National Highway 1A. According to their statements, they had been misled into illegally crossing into Vietnam through the Lang Son border gate, en route to another country, under the guise of employment opportunities offering “light work and high salaries.”
The incident occurred on June 13, during a routine patrol in Ky Tho Commune, Ky Anh District. Officers noticed two young men walking against traffic on the highway. They were dressed only in shorts, without shoes, and appeared visibly fatigued and lost.
Police identified the two individuals as Zhang Zhenglong (born in 2005) and Li Miao (born in 2006), both Chinese nationals. The pair claimed they had been lured by a group of fellow Chinese into crossing the border illegally, hoping to reach another country for better job prospects.
After entering Vietnam, the two managed to escape from their handlers while passing through Ha Tinh and began walking in search of help.
The patrol team provided them with food and water before handing them over to local authorities in Ky Tho Commune and the Ha Tinh Provincial Immigration Department. The case is now under further investigation and will be handled in accordance with Vietnamese law.
Vietnam’s Ministry of Industry and Trade has proposed the imposition of import taxes on low-value goods—under VND 1 million (approx. USD 40)—sold through cross-border e-commerce platforms. The move aims to curb the influx of cheap, low-quality foreign products and safeguard domestic production.
The proposal was submitted as feedback to a draft decree by the Ministry of Finance, which currently recommends exempting import tax on e-commerce orders valued at VND 1 million or less. Under this draft, individuals and organizations would also be subject to an annual tax-exempt cap of VND 48 million (approx. USD 1,900).
However, the Ministry of Industry and Trade opposed this exemption, arguing that allowing duty-free entry for such goods undermines local producers and risks market saturation with substandard imports. The Ministry noted that several countries in the region—such as Thailand, Indonesia, Singapore, and Malaysia—have tightened tax regulations and technical inspections on low-value cross-border e-commerce imports for similar reasons.
“This approach helps prevent the widespread presence of cheap, poor-quality foreign products and ensures a level playing field for domestic manufacturers,” the Ministry stated. It also highlighted that major economies, including the United States, are adopting reciprocal tax measures to revive local industries.
Foreign Sellers Gaining Ground on Vietnamese E-commerce Platforms
According to e-commerce analytics platform Metric, foreign sellers now account for nearly 11% of total storefronts on Shopee Vietnam, offering products at an average price of VND 43,682 (less than USD 2) with a wide variety of models and styles.
Despite these concerns, the Ministry of Finance maintained in its explanatory notes that e-commerce transactions typically involve low-volume, personal-use items, making licensing and regulatory compliance impractical. The ministry emphasized that the proposed VND 48 million annual threshold would already discourage mass tax-free imports while allowing Vietnam’s cross-border e-commerce to grow in alignment with global trends.
However, the Vietnam Chamber of Commerce and Industry (VCCI) has also voiced opposition, stating that the VND 1 million threshold for tax exemption could perpetuate tax policy imbalances and put local manufacturers at a disadvantage.
VCCI cited data showing that most cross-border e-commerce orders fall below the VND 1 million mark. In 2024 alone, more than 324 million imported products were sold on Shopee, generating VND 14.2 trillion in revenue. This translates to an average product value of just VND 43,682, meaning the majority of these imports would remain untaxed under the current draft.
Moreover, VCCI pointed out that while domestic manufacturers must pay import duties on raw materials, tax-free treatment of competing finished goods from abroad creates a significant disparity, giving foreign sellers a competitive edge.
As Vietnam’s e-commerce sector continues to boom, the policy debate over tax fairness and the protection of local industries is gaining urgency.
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
Hand over the property and its equipment/facilities on the agreed start date.
Ensure the tenant’s full and exclusive right to use the leased premises (if the landlord co-resides, applies only to the rented area).
Promptly repair any damages.
Compensate for any material or health damages to the tenant in case of house collapse due to delayed repair.
Guide the tenant in complying with Vietnam’s regulations on temporary residence and absence.
Article 5: Responsibilities of the Tenant
Use the property strictly in line with the agreed purpose. Any renovation must be approved by the landlord and comply with construction regulations.
Pay rent fully and on time.
Be responsible for any damage to the property, loss of furnishings, personal belongings, or harm caused to third parties during the tenancy.
Comply with environmental hygiene and security regulations.
Not transfer the lease or sublet the property. Early termination requires at least 30 days’ notice to the landlord.
Article 6: Mutual Commitments
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.
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 ………………
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.
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.
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.
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.”
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 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.
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.
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.
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 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.
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.
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.
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.
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.
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.
