Vietnam Opens New Doors for Foreign Investors with Official Launch of P2P Lending Sandbox

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Hanoi, May 2025 – Vietnam has taken a major step forward in modernizing its financial system with the introduction of Decree 94/2025/ND-CP, which officially launches a two-year pilot program for peer-to-peer (P2P) lending platforms. This new policy not only supports financial inclusion and innovation but also opens promising investment opportunities for foreign fintech players seeking entry into one of Southeast Asia’s most dynamic emerging markets.

Starting July 1, 2025, licensed fintech companies in Vietnam will be permitted to operate legally within a regulatory “sandbox” environment—an official space where new models can be tested under the supervision of the State Bank of Vietnam. This move brings P2P lending out of legal ambiguity and into a structured ecosystem that balances innovation with consumer protection.

A Landmark Opportunity for Fintech Investors

The P2P lending model, which allows individuals to lend and borrow directly through digital platforms without the involvement of traditional banks, has already taken root informally in Vietnam. However, with no prior legal framework, many platforms operated in a gray area—raising concerns over transparency, interest rates, and user protection.

Now, with clear rules and oversight, the sector is being brought into the mainstream. For international investors, particularly those with fintech experience, this marks a unique window of opportunity.

“Vietnam’s sandbox model is a smart, forward-looking strategy,” said Sophie Dao, Senior Partner at GBS – Global Business Services LLC, a leading consultancy supporting foreign investors in Vietnam. “It shows that the government is committed to nurturing innovation while still ensuring trust and transparency. We are already seeing significant interest from overseas clients eager to enter this space.”

Sophie Dao, Senior Partner at GBS

Sophie Dao added that GBS is well-positioned to guide foreign fintech firms through the regulatory, licensing, and business setup processes, including company registration, legal compliance, and partnership facilitation.

Aligning With Global Trends, But With Vietnamese Values

As countries around the world grapple with how to regulate the fast-moving world of fintech, Vietnam’s model stands out for its balance between openness and control. Only a limited number of vetted companies will be allowed into the sandbox, and they must adhere to strict standards regarding data reporting, user protection, and risk management.

“Vietnam isn’t rushing into deregulation,” Dao noted. “It’s learning from global best practices and tailoring a model that fits local conditions. That’s what makes it so attractive for long-term investors.”

The new decree also ensures that P2P platforms address one of Vietnam’s long-standing challenges: access to credit. Millions of small business owners, informal workers, and rural entrepreneurs are currently underserved by traditional banking channels. With P2P lending, individuals can now access loans quickly and digitally, while lenders have new avenues to invest directly in the country’s grassroots economy.

Building a Transparent, Inclusive Financial Future

Decree 94/2025 signals a larger shift in Vietnam’s financial strategy—toward a more inclusive, tech-driven system that embraces change while mitigating risk. It introduces formal oversight for platforms that were once unregulated, creating a safer environment for both lenders and borrowers.

The policy has also been well received by regional analysts and domestic fintech leaders, who see it as an essential step to level the playing field and eliminate predatory or deceptive practices.

For investors, it’s more than a regulatory update—it’s an invitation to be part of a new financial chapter in Vietnam’s development.

GBS: Your Trusted Partner in Vietnam’s Fintech Revolution

With over two decades of experience in legal and business consulting for foreign investors, GBS stands ready to support international players looking to explore Vietnam’s newly opened P2P lending space. From initial market entry to regulatory compliance and ongoing operations, GBS offers comprehensive end-to-end support.

“Foreign investors shouldn’t see this as a short-term play,” Sophie Dao emphasized. “Vietnam is laying the groundwork for a digital economy that will thrive in the next decade—and fintech will be at its core. Those who come early, with the right local guidance, will be in a strong position to lead.”

As Vietnam takes careful, deliberate steps into the future of finance, the world is watching. And for those ready to act, the door is now open.

For consultation on entering Vietnam’s fintech sector, contact GBS at www.gbs.com.vn or reach out to Sophie Dao and her team directly.

Why Thailand Is Falling Behind in the Regional Tourism Race?

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(Vietnam Insider) – Bangkok, Thailand – May 2025 – Thailand, once the undisputed tourism powerhouse of Southeast Asia, is now facing a steep decline in international visitor numbers, forcing the government and industry stakeholders to reassess and revise their expectations for 2025.

According to data released by the Tourism Authority of Thailand (TAT), international arrivals dropped by 0.2% in the first four months of the year compared to the same period in 2024. In response, TAT has scaled back its initial goal of attracting 40 million foreign tourists this year, despite maintaining ambitions for revenue growth.

China No Longer a Stronghold

China, historically Thailand’s largest source of international visitors—accounting for 25% pre-pandemic—has seen a drastic decline. Visitor numbers from China fell by 30% in the past four months. Air travel between the two countries dropped by 25%, while flights from China to Japan and South Korea surged by 43% and 28% respectively, highlighting a shift in Chinese travelers’ preferences.

Chai Iamsiri, CEO of Thai Airways, attributed the sluggish recovery to the Chinese government’s continued emphasis on domestic tourism. The airline now operates just 35 weekly flights to China, compared to 80 before COVID-19.

TAT offices in China have also noted a worsening perception of Thailand among Chinese tourists due to high-profile incidents including kidnappings, natural disasters, and negative media coverage. These concerns have been echoed by Indian travel agents, raising alarms about broader regional reputational risks.

Losing Ground in the Region

Thailand’s regional competitors are capitalizing on the situation. In 2024, Japan surpassed Thailand in attracting Chinese tourists, hosting 6.9 million compared to Thailand’s 6.7 million. In Q1 2025, Vietnam welcomed 1.5 million Chinese visitors—outpacing Thailand and strengthening its position as a rising tourism contender.

The Federation of Thai Industries (FTI) warns that a continued downturn in tourism could trigger broader economic impacts. The U.S. government’s threat of a 36% tariff on Thai exports adds further pressure.

Tourism Industry Sounds the Alarm

Industry leaders are urging the government to move beyond marketing campaigns and address core issues like safety, pricing, and service quality. “Tourism generates trillions of baht, but the sector’s budget allocation doesn’t reflect its importance,” said Tassapon Bijleveld, Executive Chairman of Asia Aviation.

Panit Kannasut, owner of a popular Bangkok restaurant, revealed that revenues have dropped 20% since mid-March. Domestic patrons now account for 70% of her customers, with fewer foreign tourists dining out—despite it being peak season.

“Thai tourists are also cutting back on spending,” she noted. “We should stop relying solely on Chinese tourists and explore opportunities in the Southeast Asian market. The key is attracting high-quality travelers willing to spend, rather than just aiming for high numbers.”

The Road Ahead: Challenges and Opportunities

While the government has introduced initiatives like digital immigration cards to combat cross-border crime and unlicensed accommodations, experts argue these are piecemeal solutions. Thanet Supornsahasrungsi, Chairman of the Chonburi Tourism Association, stressed the need for comprehensive safety measures and diversified marketing strategies, particularly targeting travelers from Malaysia and Southeast Asia.

Analysts from KGI Securities, Maybank, and BofA have all downgraded their forecasts for Thailand’s international tourist arrivals in 2025, estimating 35–37 million visitors—well below the 40 million target.

As the peak travel season approaches, Thailand’s tourism industry finds itself at a crossroads. Bold policy interventions, improved safety, and a focus on traveler experience—not just marketing—may be essential for Thailand to regain its footing in the increasingly competitive tourism landscape of Asia.

Reported by Vietnam Insider, based on information from VnExpress and Bangkok Post

Prudential launches new Universal Life Insurance Product PRU-Bảo Vệ Tối Đa

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A whole life financial planning solution offering long-term protection and wealth accumulation with flexible and diverse benefits

Hanoi, 12 May 2025 – Prudential Vietnam Assurance Private Ltd. (“Prudential”) has launched a new universal life insurance product, PRU-Bảo Vệ Tối Đa (PRU-Max Protect) – Max protection value for each premium, designed to meet customer needs for long-term protection and flexible wealth accumulation options. The first product introduced by Prudential after the new Insurance Business Law took effect, PRU-Bảo Vệ Tối Đa has a maximum protection cover of 80 times the annualised target premium. In addition, the account value is maintained early in life of policy with competitive breakeven year (policy account value equals total premiums paid), guaranteed interest rates, and attractive bonuses.

Mr. Conor M. O’Neill, Chief Financial Officer of Prudential Vietnam, shared: “We are committed to being the most trusted partner and protector for our customers by flexibly meeting their needs at every significant milestone in their lives. We endeavour to be an insurer which demonstrates best practice in designing products and supports the building of confidence of Vietnamese customers in long term savings, protection, and investments.”

Amid broader inflationary pressures across the Asia-Pacific region, medical costs in Vietnam are projected to increase by 11.2 per cent in 2025, exceeding the global average of 10.4 per cent, highlighting the urgent need for sustainable protection. In response, PRU-Bảo Vệ Tối Đa is innovatively designed for customers to enjoy optimal protection benefits and sustainable financial accumulation. By participating in PRU-Bảo Vệ Tối Đa, customers can flexibly switch between the Basic Plan, which balances protection and saving, and the Advance Plan, which maximises financial protection, as their needs change, while the main product premium remains the same.

Addressing the customers’ expectations for wealth accumulation, the Policy Account Value is boosted with attractive bonuses: Loyalty bonus, awarded on the 10th and 15th Anniversary Date and every five years thereafter; Retention bonus, awarded on the 20th Anniversary Date and every five years thereafter. Moreover, the PRU-Bảo Vệ Tối Đa offers customers a sustainable financial accumulation with a guaranteed crediting rate throughout the policy period. In all cases, the actual investment rate will not be lower than the minimum guaranteed interest rate published by Prudential, ensuring a competitive market rate. The Universal Life Fund is managed by Eastspring Investments Vietnam, fund management company with the largest assets under management in the Vietnamese market, supported by a team of professional and experienced investment experts.

In addition to the above outstanding features of the product, PRU-Bảo Vệ Tối Đa also offers customers proactiveness through various flexible policy entitlements, including the ability to:

  • Actively increase the Policy Account Value up to five times the Annual Target Premium for the outstanding accumulation goals
  • Proactively increase the sum assured without medical underwriting at important milestones of life, such as marriage, childbirth/adoption, or when their child starts primary school, secondary school, high school, or university
  • Proactively change the sum assured and add/terminate rider(s) according to customer protection needs at each stage of life
  • Proactively withdraw money from the Policy Account Value according to financial needs

Customers can also add riders with reasonable costs, broad coverage and high protection benefits to enhance protection and healthcare benefits for themselves and their families.

For more details on the benefits of the PRU-Bảo Vệ Tối Đa universal life insurance product, please refer to the respective Insurance Product Terms and Conditions and receive product consultation here.

Global Ivory Trade Crackdown: Vietnam Among Top Countries for Seizures from 1990 to 2024

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May 14 – (Vietnam Insider) – A recent report has revealed staggering data on global efforts to combat the illegal ivory trade, with Vietnam ranking among the top countries for ivory seizures between 1990 and 2024, alongside Kenya, China, and Hong Kong.

Over the 34-year period, Kenya led the world in ivory seizures, with more than 130,000 kilograms confiscated—an amount valued at up to $390 million on the black market. China followed with 106,068 kg, while Hong Kong and Vietnam recorded 75,706 kg and 71,255 kg, respectively.

These figures highlight not only the sheer scale of the illicit ivory trade but also the ongoing challenges in enforcing bans and protecting endangered elephant populations.

A Lucrative Black Market

Despite the global ban on international ivory trade under the Convention on International Trade in Endangered Species (CITES), demand persists—fueled by a thriving black market where prices range from $1,000 to $3,000 per kilogram, depending on quality and region.

The immense profit potential makes smuggling a high-reward, high-risk activity, particularly in regions with weak law enforcement, porous borders, and rampant corruption.

Vietnam’s Role: Transit Point and Market Pressure

Vietnam’s position as both a transit hub and consumer market has placed it in the spotlight. While the country has strengthened its wildlife protection laws in recent years, large-scale ivory trafficking continues to pass through its ports, often en route to China or domestic black markets.

The volume of seizures in Vietnam reflects both increased enforcement efforts and the country’s central role in regional trafficking networks, despite national and international bans.

As Vietnam continues to integrate with the global economy and enhance its environmental credentials, it faces growing international pressure to strengthen wildlife protection and play a leading role in ending the ivory trade once and for all.
Trafficking Hotspots and Systemic Challenges

Hong Kong and Singapore continue to serve as major transshipment hubs due to their strategic locations and high shipping volumes, while countries like Mozambique and Nigeria—both major sources of poached ivory—struggle with systemic enforcement barriers and limited resources.

Even with domestic ivory bans now in place in key markets like China and Hong Kong, well-funded trafficking networks remain active and agile, often adapting quickly to enforcement changes and exploiting legal loopholes.

The Call for Coordinated Global Action

This alarming data serves as a stark reminder of the urgent need for coordinated international action. Conservation experts are calling for:

  • Stronger enforcement mechanisms and cross-border cooperation
  • Tougher penalties for traffickers
  • Greater investment in anti-poaching technology
  • Demand reduction campaigns to change consumer behavior

Efforts to combat the illegal ivory trade must also address the root causes, including poverty, corruption, and weak governance in source countries.

A Shared Responsibility

The fight against wildlife crime is not one that any country can tackle alone. The illegal ivory trade remains a multi-billion-dollar global enterprise, threatening not just elephants but also regional security and rule of law.

As Vietnam continues to integrate with the global economy and enhance its environmental credentials, it faces growing international pressure to strengthen wildlife protection and play a leading role in ending the ivory trade once and for all.

Vietnam Insider will continue to follow developments on wildlife trafficking and environmental enforcement in Vietnam and across Southeast Asia.

Vietnam Weather Outlook: Rain and Thunderstorms Return to Hanoi and the North, Summer Heat Builds Elsewhere

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Hanoi, May 14 – After several days of intense sunshine, northern Vietnam—including Hanoi—is set to experience a wave of rain and thunderstorms, with conditions expected to be most active during late afternoons and evenings over the next 10 days. Meanwhile, central and southern parts of the country continue to see a mix of scattered showers and rising temperatures, with localized weather risks in mountainous regions.

Northern Vietnam: Rain Returns with Storm Warnings

Starting today, May 14, scattered showers and thunderstorms will return to the Northwest and Northeast, with rainfall amounts ranging between 10–20mm, and some areas receiving more than 50mm. The showers will intensify between May 15–18, particularly in low-lying and mountainous areas, increasing the risk of localized flooding, landslides, and hail.

In Hanoi, daytime highs today are expected to reach 31–33°C, followed by scattered evening storms. The next three days (May 15–17) will see frequent rain and thunderstorms, bringing daytime highs down to 30°C. However, from May 18–19, the capital will heat up again with temperatures climbing back to 33°C, before turning dry and increasingly hot between May 20–23, with highs reaching 34°C.

Central Vietnam: A Mixed Pattern of Heat and Rain

From Thanh Hoa to Hue, daytime weather will remain mostly sunny, while evening thunderstorms are expected to be scattered, with temperatures peaking at 29–32°C.

In Da Nang and provinces down to Binh Thuan, scattered showers are forecast for the late afternoon and evening, particularly in northern coastal areas on May 16. Temperatures will hover between 31–34°C, with a heightened risk of thunderstorms bringing lightning, hail, and gusty winds.

Central Highlands and Southern Vietnam: Wet Afternoons Continue

The Central Highlands and Southern Vietnam will continue to experience their typical afternoon and evening thunderstorms over the next 10 days. In provinces such as Gia Lai and Dak Nong, rainfall totals have already topped 60mm in isolated areas this week. Heavy rain is forecast to persist, particularly from May 16–18, bringing risks of flooding, landslides, and subsidence, especially in the districts of Chư Păh, Chư Prông, Mang Yang, and Pleiku.

In the South, including Ho Chi Minh City, daily highs will range from 32–35°C, with scattered thunderstorms likely in the evenings. Notably, Hóc Môn recorded 68.4mm of rain overnight.

National Outlook: Stay Alert for Storms and Heat

  • May 15–18: Widespread thunderstorms expected in North and North Central Vietnam, especially at night.
  • May 19–20: Onset of heatwave conditions in North Central and Central Vietnam.
  • May 20–23: Hanoi and the North transition into a dry, sunny pattern with rising heat.

Throughout the South and Highlands: Continued pattern of humid mornings, scattered showers, and evening thunderstorms.

Safety Advisory

The National Center for Hydro-Meteorological Forecasting advises residents in storm-prone areas to:

  • Avoid outdoor activities during thunderstorms
  • Secure power lines and electrical devices
  • Avoid sheltering under tall trees during lightning
  • Watch for road flooding, fallen debris, and landslides in mountainous areas

Vietnam Insider will continue to monitor and provide updates on severe weather alerts throughout the country. Stay safe, stay informed, and plan your travels accordingly.

“Sell in May”? Why Global Investors Should Think Twice in Today’s Market

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May 13 – Vietnam Insider – As May unfolds, so does one of the most persistent maxims in financial circles: “Sell in May and go away.” A phrase steeped in tradition and whispered across trading floors for decades, it warns investors to exit the market during summer’s lull and return in September. But in a world of 24/7 trading and cross-border capital flows, is this old adage still relevant for modern investors?

The Origin: A Gentleman’s Summer Tradition

The phrase originates from 19th-century London, in its full form: “Sell in May and go away; come back on St. Leger’s Day.” This reflected the seasonal rhythm of Britain’s upper-class investors who would retreat from London to the countryside during the summer, returning only in September for the St. Leger Stakes horse race.

When the mantra crossed the Atlantic to Wall Street, it was simplified—but the sentiment remained. Summer trading volumes would dwindle as fund managers decamped to the Hamptons, leading to what traders dubbed the “summer doldrums.” Historically, this period saw weaker returns, with July and August often underperforming relative to other months.

The New Market Reality

But times have changed. As ROX Capital points out in its latest report, the seasonal effect has lost its power in today’s globalized and digitized markets. Despite the saying’s popularity, data shows that 74% of “May to September” periods over the past decades have actually posted positive returns, averaging a 4.2% gain.

So what’s driving the shift?

  • Electronic trading and automated fund flows ensure constant liquidity.
  • Global investors don’t take the summer off anymore.
  • Macroeconomic events now have far more influence than seasonal patterns.

From the 2008 financial crisis to COVID-19 and the era of stimulus-fueled recoveries, markets have shown time and again that opportunity can arise in any season. Summer 2020, for example, marked one of the strongest rallies in recent memory, as stimulus packages revived global equity markets.

Beware of Nostalgia Investing

Duong Ngoc Dung, Deputy CEO of ROX Capital, cautions investors against relying on seasonal clichés. “Some of the strongest gains happen right after major declines. If you’re out of the market waiting for September, you might miss the recovery,” he says.
Indeed, modern investing requires more than just following calendar-based folklore. It demands close attention to macroeconomic indicators; policy shifts, earnings cycles, valuation and momentum signals

Blindly following “Sell in May” today may lead investors to miss golden opportunities, particularly in volatile and fast-moving environments.

Adaptation Over Tradition

In a market driven by AI trading algorithms, real-time news, and global geopolitics, static investment strategies are being replaced by agile, data-driven decision making.

“Sell in May” may still hold nostalgic value, but as an investment strategy, it belongs more in the archives of financial folklore than in the modern investor’s playbook. As Vietnam continues to attract international capital and integrate deeper into global markets, understanding the pulse of the economy matters more than ever.

Bottom line for investors? The market doesn’t pause for summer anymore. Instead of walking away, stay informed, stay flexible, and stay invested—because the best opportunities may come when others are looking the other way.

Da Nang Invests Over $4 Million to Upgrade An Thuong Walking Street for Foreign Visitors

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(Vietnam Insider) Da Nang, May 13 – In a major push to enhance its appeal to international tourists, the city of Da Nang has announced a VND 104 billion (approx. USD 4.1 million) investment into the second phase of its An Thuong Tourism Street Project, often referred to as the city’s own “Western Walking Street.”

Located in My An Ward, Ngu Hanh Son District, the project aims to transform the An Thuong area into a vibrant hub of day-and-night entertainment, culture, and shopping—catering especially to the growing number of foreign visitors and expats in Da Nang.

Water Music Stage and Urban Upgrades

According to the city’s People’s Committee, the Phase 2 investment—expected to be completed by 2027—will include a wide array of enhancements:

  • A central plaza with integrated sports and fitness facilities
  • An open-air stage, seating areas, and a synchronized water music floor
  • Upgraded green spaces, outdoor gym equipment, and decorative lighting
  • Improved sidewalks, telecom infrastructure, and street furniture

Expansion of three key roads in the An Thuong area from 3.5 meters to 5.5 meters wide, with stone paving and comprehensive lighting systems

One of the most anticipated features is the interactive water music platform, designed to be a focal point for performances and public gatherings—similar to the attraction currently located in the city’s 29/3 Square.

A Strategic Move to Boost Cultural Tourism

Da Nang authorities emphasized that the upgraded walking street will provide new public space for cultural events, live music, and recreational activities—creating a dynamic atmosphere for both tourists and locals.

Originally launched in 2018, the An Thuong Tourism Street—also known as “Pho Tay An Thuong” (Western Street)—quickly became a favorite hangout spot for expats, backpackers, and beachgoers thanks to its international restaurants, cafes, and nightlife venues.
In April 2022, the first phase of the project introduced pedestrian zones, a night market, and connections to My An Night Beach, positioning the area as a must-visit evening destination.

A Fresh Step Forward for Da Nang Tourism

This new phase marks another bold step in Da Nang’s broader tourism strategy, which seeks to solidify the city’s position as a premier coastal destination in Southeast Asia. As international arrivals surge post-pandemic, the city is capitalizing on its urban charm, stunning beaches, and laid-back lifestyle to attract long-term visitors and digital nomads.

With the An Thuong Walking Street upgrade, Da Nang is not only elevating its tourism infrastructure but also reaffirming its commitment to creating a welcoming, world-class destination for foreign travelers.

Former Head of Vietnam’s Food Safety Authority Arrested in Major Fake Supplement Scandal

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(Vietnam Insider) Hanoi, May 13 – In a dramatic escalation of a high-profile investigation, Nguyen Thanh Phong, former Director General of Vietnam’s Food Safety Authority under the Ministry of Health, has been arrested and charged with bribery, alongside four other officials. The arrests are part of an ongoing probe into a massive case involving the production and distribution of hundreds of tons of counterfeit dietary supplements.

According to the Ministry of Public Security’s Economic and Corruption Crime Investigation Police Department (C03), the former food safety chief and his colleagues are accused of accepting bribes to facilitate approvals and certifications for factories involved in the illegal operation.

The other four officials facing charges include Dinh Quang Minh, Director of the Food Safety Training and Application Center; Nguyen Thi Minh Hai, Deputy Director of the same center; Le Thi Hien, Senior Specialist and Cao Van Trung, Deputy Head of the Food Poisoning Surveillance Division.

While Ms. Hai has been placed under house arrest, the remaining four individuals have been detained pending investigation.

A Systemic Breakdown in Food Safety Oversight

Investigators revealed that the officials intentionally reduced violations found during inspections, advised companies on how to manipulate compliance, and delayed enforcement actions in exchange for illicit payments.

These actions enabled Nguyen Nang Manh, Chairman of MEDIUSA and Director of MegaPhaco, to obtain over 20 product registration certificates and four food safety certifications for factories producing fake supplements. The companies targeted vulnerable consumers, including elderly people and children, using low-quality, unapproved ingredients—some sourced from China and falsely labeled as being from the U.S. or Europe.

Authorities say many of these counterfeit products contained less than 30% of the claimed active ingredients, posing serious public health risks.

100 Tons of Fake Products Seized

The scandal came to light after an extensive investigation into multiple companies operated by Manh and his associates, including MediPhar and Viet Duc. When police raided the production facilities, they seized nearly 100 tons of fake dietary supplements.

The criminal network also ran dual accounting systems to evade taxes and hide profits. At least six companies were involved in the financial fraud, leading to major losses in state tax revenues, officials said.

As the investigation intensified, the suspects attempted to destroy evidence and shut down operations, but law enforcement successfully intercepted large volumes of counterfeit goods.

A Major Blow to Public Trust

Nguyen Thanh Phong served as Director General of the Food Safety Authority for two consecutive terms from 2015 to late 2024, during which he oversaw the enforcement of food safety regulations nationwide. His arrest sends shockwaves through Vietnam’s public health sector and raises serious questions about regulatory integrity and oversight failures.

The Ministry of Public Security emphasized that the investigation is ongoing and may expand to other individuals or entities involved in the scheme. The case marks one of the largest food safety corruption scandals in Vietnam’s recent history.

Vietnam Insider will continue to provide updates as more details emerge in this unfolding investigation.

Over 800 Bankruptcies in One Month as World’s 4th Largest Economy Struggles

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(Vietnam Insider) Tokyo, May 12 – Japan, the world’s fourth-largest economy, is facing a deepening economic crisis, as a surge in corporate bankruptcies, labor shortages, and inflationary pressure shake the foundations of its once-stable business environment.

According to Tokyo Shoko Research, more than 800 Japanese companies declared bankruptcy in April 2025, each with liabilities exceeding 10 million yen (approximately $68,100). The figure marks a 5.7% increase year-on-year, driven largely by small and medium-sized enterprises (SMEs) that have been unable to withstand rising costs and a chronic shortage of workers.

Services, Construction, and Retail Hit Hardest

The services sector experienced the worst impact, with 292 bankruptcies—the highest ever recorded in April. The construction industry saw 152 cases, a 4.1% rise, while retail recorded a staggering 32.5% jump with 106 companies going under.

Labor shortages are playing an increasingly damaging role. In April, 36 businesses failed due to a lack of workers, up from 25 a year earlier. Meanwhile, 56 bankruptcies were directly linked to inflation, underscoring the dual threat of rising wages and operational costs.

Experts say the burden is especially severe for SMEs still saddled with pandemic-era debts, now facing renewed pressure from inflation and reduced consumer spending.

Business Confidence Falters as Tariffs and China Slowdown Bite

Japan’s manufacturing sector is also losing momentum. According to the Bank of Japan’s Tankan survey of 9,000 companies, business sentiment among large manufacturers declined for the first time, citing U.S. tariffs and a slowing Chinese economy.

The Diffusion Index (DI) for sentiment dropped from +14 in December 2024 to +12 in March 2025, with steel producers hit hardest, falling to –18, after the U.S. imposed a 25% tariff on steel and aluminum imports in March.

Labor shortage figures are equally concerning. The Tankan survey reported a –37 score, reflecting a severe workforce imbalance. The problem is especially acute for small businesses, where low margins make it harder to raise wages and retain talent.

Here is a comparative infographic showing Japan’s economic performance in Q1 2025 alongside other G7 countries. The data highlights Japan’s relatively low GDP growth, moderate inflation, very low unemployment, and the highest currency depreciation against the USD—offering a visual context for Japan’s current economic vulnerabilities.
Over 10,000 Firms Collapsed in FY2024

The full picture is even bleaker. Tokyo Shoko Research revealed that over 10,000 businesses went bankrupt in fiscal year 2024, the highest figure in 11 years. A total of 10,144 bankruptcies involved debts of at least 10 million yen—a 12.1% increase from the previous year.

Alongside inflation and labor shortages, the weak yen has worsened the talent crisis. Many foreign workers are now hesitant to remain in Japan, citing stagnant wages and declining purchasing power. According to a 2024 Mynavi Global survey, 91% of foreign students and workers said they planned to stay in Japan—a 5.8-point drop from 2022.

Workers Feel the Squeeze

Take Spandan Sunar, a 27-year-old Nepali working in Chiba. He once sent home 50,000 yen per month to his family, but rising costs now require him to send 80,000 yen—a burden he’s struggling to afford. “Foreigners working in Japan are battling with low incomes,” Sunar said, comparing his situation to friends earning better in the U.S. or Australia.

The salary stagnation issue has broader implications. Companies like Bears, a household services provider that depends on skilled workers from the Philippines, raised service fees by 20% in 2024—the first hike in 18 years—just to cover increased wage demands. But many SMEs cannot afford such adjustments, pushing them closer to collapse.

Future at Stake: Can Japan Retain Global Talent?

Yamazaki, deputy director at Career-tatsu, warns that if wages remain stagnant while the yen weakens, Japan may lose its appeal to international workers, particularly in fields like IT and technology, where demand is high.

Kevin Naylor, executive at Future Manager World USA, notes that foreign professionals are often overlooked in favor of locals or foreign residents already living in Japan. Meanwhile, Luke Furnival of Robert Walters Japan says the expectation gap between foreign candidates and Japanese employers has widened, requiring constant mediation.

As Japan grapples with inflation, labor shortages, trade friction, and a weakening currency, its economic foundation is being tested like never before. For the world’s fourth-largest economy, the coming months will be critical in determining whether it can adapt or continue to decline in the face of mounting domestic and global challenges.

Vietnam’s Export Surge in 2025: A Bright Outlook for Global Markets

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Vietnam’s export sector is thriving, showcasing remarkable resilience and adaptability in the first four months of 2025.

According to the Ministry of Industry and Trade, the country’s total export turnover reached an impressive $140.34 billion by the end of April, marking a robust 13% increase compared to the same period in 2024. This growth underscores Vietnam’s strategic efforts to diversify markets, leverage free trade agreements (FTAs), and strengthen domestic capabilities, positioning the nation as a dynamic player in global trade.

A Diversified Export Landscape

Vietnam’s export success in 2025 stems from its ability to maintain strong ties with traditional partners while boldly expanding into new markets. Despite a slight slowdown in exports to the United States, growth in other key markets has more than compensated. Exports to China reached $18.1 billion, up 2.1%, driven by surging demand for aquatic products like shrimp and tra fish, as well as tropical fruits. The EU market saw a 12.8% increase to $18.5 billion, while Japan and South Korea recorded gains of 12% ($8.5 billion) and 9.1% ($8.9 billion), respectively.

Emerging markets are also gaining traction. The ASEAN bloc, India, the Middle East, Africa, Brazil, and Latin America are becoming promising destinations for Vietnamese goods. Sectors such as textiles, footwear, machinery, and aquatic products are leading the charge, with businesses actively exploring these regions through international trade fairs and online business matchmaking.

Free Trade Agreements: A Catalyst for Growth

Vietnam’s strategic use of FTAs has been a game-changer. Agreements like the ASEAN–China FTA, the Regional Comprehensive Economic Partnership (RCEP), the EU-Vietnam Free Trade Agreement (EVFTA), the UK–Vietnam FTA (UKVFTA), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have opened doors to global markets. For instance, the UKVFTA has fueled strong growth in machinery, textiles, and footwear exports to the British market, while the CPTPP has driven a 13.5% export surge to Canada, a trend that continues into 2025.

Nong Duc Lai, Vietnam’s Trade Counsellor in China, highlights how FTAs have enabled Vietnamese businesses to capitalize on China’s billion-strong consumer base, particularly for food and aquatic products. Similarly, Truong Van Cam, Vice Chairman of the Vietnam Textile and Apparel Association, emphasizes the importance of diversifying beyond traditional markets like the US and EU to enhance the industry’s resilience.

Building Resilience Through Innovation

Vietnam’s export success is not just about market access—it’s also about strengthening internal capabilities. Businesses are investing in deep processing, improving product traceability, and adhering to international environmental standards to meet global demands. Sectors like textiles, wood, and food are focusing on value-added production to boost competitiveness.
Nguyen Ngoc Hoa, Chairman of the Ho Chi Minh City Business Association (HUBA), stresses the need for enterprises to embrace transformation. “Investing in technology, branding, and professional after-sales services is critical for Vietnam to assert its position in the global supply chain,” he says. By increasing localization rates and developing distinctive brands, Vietnamese businesses are enhancing their products’ value and appeal.

Navigating Challenges, Seizing Opportunities

While Vietnam’s export growth is impressive, challenges remain. Economic experts urge businesses to professionalize trade promotion, leverage cross-border e-commerce, and integrate deeper into global value chains. Small- and medium-sized enterprises, in particular, need better access to preferential capital and streamlined procedures for tax refunds and international certifications.
Professor Tran Ngoc Anh from Indiana University emphasizes the importance of developing the domestic market and improving logistics infrastructure to create a stable foundation for growth. By stimulating domestic demand and upgrading ports like Cat Lai in Ho Chi Minh City, Vietnam can build a robust “buffer zone” to support its export ambitions.

A Promising Future

Vietnam’s export achievements in 2025 reflect a nation on the rise, driven by strategic diversification, innovative business practices, and a forward-thinking approach to global trade. With continued investment in technology, branding, and market expansion, Vietnam is well-positioned to sustain its growth momentum and solidify its role as a key player in the global economy. For foreign investors and partners, Vietnam’s dynamic export sector offers a wealth of opportunities to engage with a rapidly evolving market.

Apple Reportedly Set to Raise iPhone 17 Prices Amid Tariffs and New Features

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Cupertino, California – May 12 – Apple is reportedly planning a price hike for its upcoming iPhone 17 lineup, set to launch this September, in response to rising production costs and supply chain disruptions fueled by ongoing U.S.–China trade tensions, according to a report from the Wall Street Journal.

The price increase is expected to be accompanied by new design elements and upgraded features, including a rumored ultra-thin iPhone 17 Air and a redesigned rear camera cluster, as Apple looks to refresh its flagship smartphone amid fierce competition and economic headwinds.

Tariff Pressure Mounts

While Apple has not officially confirmed any pricing changes, the company is under increasing pressure as a result of U.S. tariffs on imports from China, where most iPhones are still assembled. Although recent trade talks between Washington and Beijing resulted in a 90-day delay on some reciprocal tariffs, Apple’s core products remain subject to a 30% import tax, driving up costs.

In a statement earlier this month, Apple warned that tariffs are expected to add $900 million in costs during Q2 2025 alone. The company said it is ramping up iPhone production in India to mitigate the impact, with the majority of iPhones sold in the U.S. during this quarter expected to be made outside of China.

Pricing Could Exceed $1,100 for Entry-Level Model

According to Rosenblatt Securities, the starting price of the iPhone 17 could climb significantly, with the base model potentially priced at $1,142 in the U.S., compared to $799 for the iPhone 16. While Apple is cautious not to attribute the increase directly to tariffs, analysts suggest the hike is a strategic move to maintain profit margins amid higher production costs.

Innovation or Inflation?

To soften the impact of the price increase, Apple plans to roll out notable hardware upgrades and sleek design changes, including the launch of the iPhone 17 Air, an ultra-thin model that could mark a new era in minimalist design. Other enhancements may include adjustments to the rear camera system, refined materials, and expanded AI-driven features.

However, some industry watchers warn that Apple’s slow rollout of generative AI tools may put it at a disadvantage against rivals like Samsung, which is aggressively marketing AI-powered capabilities in its latest devices.

Looking Ahead to iPhone’s 20th Anniversary

Looking further ahead, Bloomberg’s Mark Gurman revealed that Apple is already planning a major innovation leap for the 2027 iPhone, which will mark the product’s 20th anniversary. The future model could feature a fully curved, mostly glass body with no cutouts, offering a futuristic take on Apple’s design legacy. The last major design overhaul occurred in 2017 with the iPhone X, which introduced edge-to-edge displays and eliminated the iconic home button.

Market Response

While some Apple loyalists are likely to embrace the upcoming iPhone 17 regardless of price, analysts caution that rising prices may erode Apple’s market share, particularly in developing markets and among cost-conscious consumers.

With the official unveiling just months away, consumers and investors alike will be watching closely to see how Apple balances innovation, pricing, and geopolitical risk in a shifting global tech landscape.

Severe Thunderstorms Expected This Afternoon in Ho Chi Minh City — Residents Urged to Beware of Flooding

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Ho Chi Minh City, May 12 – Residents of Ho Chi Minh City (HCMC) are being urged to take precautions as heavy rainfall and thunderstorms are forecast to hit multiple districts this afternoon and evening, potentially causing widespread flooding and dangerous road conditions.

According to the Southern and Central Highlands Hydrometeorological Center, after a hot and humid morning, a large thunderstorm system has formed and is moving toward the northwestern parts of HCMC. As of 3:00 PM, intense rainfall had already been reported in areas including Bình Chánh, Hóc Môn, Củ Chi, Bình Tân, District 8, District 11, and District 12.

Rainfall levels are expected to reach 10–50mm, with some locations potentially exceeding 65mm. The thunderstorms are predicted to last for at least another 40 to 70 minutes, with rainfall gradually expanding to neighboring areas such as Bình Dương, Long An, and Tiền Giang.

Risk of Flash Flooding and Strong Winds

The approaching storm system is likely to bring strong gusts of wind (levels 5–7, or 8–17 m/s), lightning, and possibly hail, posing significant risks to commuters and local residents. Localized flooding is anticipated in low-lying urban areas, especially those with poor drainage.

Weather expert Le Dinh Quyet warned that today’s unstable atmospheric conditions—combined with high humidity and heat—could make thunderstorms particularly dangerous, especially due to lightning strikes.

Safety Recommendations for Residents

Authorities urge people to:

  • Stay indoors during heavy rain and storms, especially in areas experiencing lightning.
  • Avoid traveling through flooded streets or fast-moving water, which could pose serious safety risks, including being swept away or falling into open manholes.
  • Do not shelter under tall trees, and move vehicles away from trees or weak structures.
  • Turn off unnecessary electrical appliances and avoid contact with metal objects during thunderstorms.
  • Follow real-time weather updates and alerts from official meteorological sources.

Commuters are especially advised to plan ahead and avoid going out during peak rainfall hours, as flash floods may cause significant traffic disruptions across the city.

Vietnam Insider will continue to provide updates as the situation develops. Stay safe and remain alert.

Ha Giang and Hoi An Named Among the World’s Most Beautiful Places

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Hanoi, Vietnam – May 11 – Vietnam has once again captured the imagination of global travelers, with Hà Giang and Hội An being named among the Top 44 Most Beautiful Places in the World by renowned UK-based travel magazine Time Out. The list celebrates destinations that offer breathtaking landscapes, immersive culture, and unforgettable experiences—and these two Vietnamese gems deliver just that.

Hà Giang: Majestic Peaks and Timeless Heritage

Ranked 10th on Time Out’s list, Hà Giang, Vietnam’s northernmost province, is a place where nature, culture, and tradition intertwine. Described by Time Out as having an “otherworldly air,” Hà Giang is known for its winding mountain passes, dramatic limestone peaks, and breathtaking rice terraces that have been cultivated over thousands of years.

A standout attraction is the Thẩm Mã Pass, famous for its sharp, hairpin bends and dizzying views. Equally awe-inspiring is the Mã Pì Lèng Pass, which hugs a cliffside more than 3,000 feet above the emerald Nho Quế River—a scene that leaves travelers both humbled and spellbound.

In places like La Si, visitors are treated to sweeping vistas of terraced rice paddies that stretch endlessly across the mountains. Home to 43 diverse ethnic groups, Hà Giang is not just a destination, but a cultural journey through Vietnam’s rich indigenous tapestry.

Hội An: A Slow, Sweet Slice of Vietnamese Charm

Hội An, located in Quảng Nam Province along Vietnam’s central coast, offers a completely different, yet equally captivating experience. Time Out poetically describes the ancient town as a place where “life moves like molasses – slow and sweet.”

Famed for its UNESCO-listed Old Town, lantern-lit streets, and riverside charm, Hội An draws travelers seeking tranquility and authenticity. Days are best spent sipping coconut coffee in quiet cafés, biking through lush rice paddies, or watching lantern boats drift lazily along the Thu Bồn River at sunset.

With a harmonious blend of Vietnamese, Chinese, and Japanese influences, Hội An is a living museum of history, architecture, and local tradition. And just beyond the town lie some of Vietnam’s most pristine beaches, perfect for sunbathing, seafood, and seaside serenity.

Vietnam’s Tourism on the Rise

The international recognition comes amid a surge in global interest in Vietnam as a must-visit destination. According to the National Statistics Office, nearly 7.7 million foreign visitors arrived in Vietnam during the first four months of 2025—a 23% increase year-on-year.

With initiatives in place to boost tourism and enrich the visitor experience, Vietnam is well on its way to achieving its goal of welcoming 22–23 million international travelers by 2025.

Why Visit Now?

Whether it’s the soul-stirring mountains of Hà Giang or the timeless charm of Hội An, Vietnam offers a diverse, immersive, and unforgettable journey for every traveler. As Time Out’s recognition affirms, these destinations are not just beautiful—they’re some of the best the world has to offer.

Plan your visit. Let Vietnam’s natural wonders and cultural richness change the way you travel.

Hà Tâm Như Crowned Miss Transgender Vietnam 2025, Inspires with Powerful Message of Pride and Resilience

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Phan Thiết, Vietnam – May 11 – Amid thunderous applause and emotional cheers, Hà Tâm Như was crowned Miss Transgender Vietnam 2025, becoming the country’s newest representative for Miss International Queen 2025, the world’s most prestigious transgender beauty pageant.

Standing tall at 1.8 meters, Hà Tâm Như captivated the judges and audience alike with her graceful presence, feminine charm, and radiant smile. A professional fitness trainer, she was praised not only for her striking physique but also for her strength, resilience, and authenticity.

As the competition progressed, Hà Tâm Như emerged as a clear standout. In the semifinals, she wowed with her confident stage presence and elegance in evening wear. During the bikini and gown segments of the grand finale, her fluid runway walk and voluminous hair drew admiration from both the judges and spectators.

A Message That Moved the Nation

In the final Q&A segment, the Top 3 contestants were asked: “In a diverse society, is being different a weakness or a strength?” Responding last, Hà Tâm Như delivered a heartfelt answer that brought the crowd to its feet:

“In today’s world, being different is a strength. As a transgender woman, I don’t see my identity as something that sets me apart—I see it as something that makes me stand out. Inside, I have determination; outside, I strive for perfection. When people look at me, I want them to see someone who grows every day—not just through work, but through the pursuit of knowledge.”

Her answer resonated deeply, highlighting her journey of self-acceptance and personal transformation.

From Adversity to Empowerment

Hà Tâm Như revealed that her early steps toward living authentically were met with family rejection, social alienation, and public discrimination. She worked for years as a fitness trainer to save money in secret for her gender confirmation surgery in Thailand, overcoming personal and societal obstacles along the way.

Dubbed the “shining gem” of the competition, she demonstrated exceptional growth throughout the contest, especially as a member of Team Le Hoang Phuong, earning praise from reigning beauty queens.

Strong Contenders, Star-Studded Finale

The first and second runner-up titles went to Nguyễn Cao Minh Anh and Nguyễn Thủy Tiên, respectively—both lauded for their beauty and poise. The Top 3 were celebrated for their equally dazzling looks and powerful stories.

Held in Phan Thiết, the grand finale featured performances from top artists Mỹ Linh, Đông Nhi, and Hương Giang. Supermodels Hà Anh and Minh Tú served as judges, while the charismatic duo Thanh Thanh Huyền and Phan Trung Hậu hosted the event.

As Vietnam’s official delegate to Miss International Queen 2025, Hà Tâm Như now carries the hopes of the nation’s LGBTQ+ community on the global stage.

Vietnam Pushes Back Against Trump’s Tariffs as High-Stakes Trade Talks Begin

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Hanoi, May 10 – Vietnam’s Ministry of Industry and Trade has called the Trump administration’s recent reciprocal tariff measures “unreasonable,” as trade negotiations between Washington and Hanoi officially get underway.

Speaking at a conference on Thursday, ministry officials urged domestic companies and industry associations to send letters of complaint directly to U.S. officials, voicing opposition to the steep tariffs imposed by President Donald Trump’s administration. According to a post on the ministry’s official website, Vietnamese businesses were also encouraged to coordinate with American partners and rally public and political support in the U.S. to preserve the smooth flow of Vietnamese exports.

Vietnam is among several nations caught in the latest wave of U.S. protectionist trade policies, with Trump aiming to resurrect American manufacturing by targeting countries he accuses of unfair trade practices. On April 2, the U.S. imposed a 46% tariff on Vietnamese imports, a move that prompted widespread concern among Vietnamese exporters. The tariff was later reduced to 10% for a 90-day period to allow time for bilateral negotiations.

In a bid to ease tensions, the Vietnamese government on Wednesday directed local firms to significantly increase imports of high-value American goods, hoping to demonstrate goodwill and prevent further tariff escalation in what remains Vietnam’s most critical export market.

During Thursday’s meeting, the ministry also called on businesses to submit documentation proving that their goods are genuinely manufactured in Vietnam, in an effort to rebut any claims of transshipment or origin fraud—issues that have raised red flags in U.S. trade enforcement circles.

At the same time, officials advised Vietnamese firms to diversify their export strategies by seeking alternative markets, reminding stakeholders that Vietnam is part of multiple trade agreements with major economies around the world.

As trade tensions rise, the outcome of the ongoing talks will be pivotal—not only for Vietnamese manufacturers, but also for broader regional supply chains and U.S. companies reliant on Vietnamese imports. The 90-day tariff reprieve may provide a narrow window for both sides to forge a compromise and avoid long-term economic disruption.

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