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Vietnam Developer Proposes 15-Year Plan to Rescue Bank at Center of Historic Fraud

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Saigon Joint Stock Commercial Bank (SCB), the institution at the heart of Vietnam’s largest financial fraud case, has received a bailout from the State Bank of Vietnam (SBV) amounting to 5% of the country’s 2024 GDP.

Sun Group, a leading Vietnamese developer, has proposed a 15-year restructuring plan to repay the bailout, according to documents reviewed by Reuters.

Massive Bailout Exposes Banking Sector Challenges

Since 2022, nearly $26 billion has been injected into SCB to prevent its collapse following the arrest of real estate mogul Truong My Lan, who was found to have used SCB as a private funding vehicle for her business empire. The crisis has underscored weaknesses in Vietnam’s banking oversight and raised concerns about systemic financial risks.

SCB remains heavily reliant on emergency loans from the SBV to cover deposit withdrawals. According to Sun Group’s proposed roadmap—prepared in November 2023 after it was appointed to lead SCB’s restructuring—the bank would require 657 trillion VND ($25.8 billion) in special loans in the first year of the rescue plan.

Under the base scenario outlined in the 222-page plan, SCB would begin repaying the SBV in the 14th year of restructuring, contingent on market conditions. Full repayment is expected within 15 years from the approval of the restructuring, which Sun Group hopes to secure as early as next month.

Uncertainty Over Government Backing

It remains unclear whether Sun Group’s proposal has the support of Vietnam’s government and Communist Party or whether it will be approved within the developer’s proposed timeline. Neither Sun Group, SCB, the central bank, nor the finance ministry responded to requests for comment.

SCB’s Decline: Plunging Deposits and Mounting Losses

SCB’s downfall began in October 2022, when authorities arrested Truong My Lan, who had covertly controlled the bank using proxies. Prosecutors revealed that she had secured $44 billion in loans from SCB over a decade to finance her real estate empire.

The arrest triggered a bank run, forcing the SBV to inject $4 billion within the first three weeks alone, with additional funds following to stabilize SCB.

By the end of 2024, SCB’s deposits had plummeted to just 19.2 trillion VND ($770 million), a sharp decline from 669 trillion VND ($26.8 billion) at the time of the bank run in October 2022.

Vietnam’s banking regulations require financial institutions with subsidiaries—like SCB—to maintain a capital adequacy ratio (CAR) of at least 9% to safeguard against losses. However, SCB’s CAR had already fallen to negative 100% before the crisis and deteriorated further to negative 176% by the end of 2024, according to Sun Group’s report.

Can SCB Return to Profitability?

Documents from Vietnam’s police presented at Lan’s trial revealed that as early as 2017, SCB’s actual CAR was negative 4.2%, despite the bank publicly reporting a positive ratio of around 10%. Auditing firm Deloitte, which signed off on SCB’s financial statements at the time, has not commented on these findings.

As of February 18, 2025, the central bank had injected 652.7 trillion VND ($25.6 billion) into SCB, according to an internal document obtained by Reuters.

Sun Group, which has held a stake in National Citizen Commercial Joint Stock Bank (NCB) since 2021, cites its banking experience as a key factor in its ability to turn SCB around. The developer has pledged to invest at least 3 trillion VND ($120 million) into SCB’s charter capital as part of the restructuring.

The proposed rescue plan outlines a multi-pronged revenue strategy, including:

Investments in government bonds and infrastructure projects using recovered assets.
Selling collateral and land rights from loans issued by SCB.
Profits from new investments in the financial sector.

However, the report warns that only a small portion of SCB’s assets are recoverable. The majority of its loan portfolio consisted of loans to shell companies linked to Truong My Lan, secured against inflated collateral values.

Looking Ahead

Vietnam is navigating domestic economic challenges while facing external risks, including potential disruptions to its export-driven economy due to global trade tensions. The SCB crisis has raised fresh concerns about financial stability, regulatory oversight, and the long-term impact of state intervention in the banking sector.

The fate of Sun Group’s proposed rescue plan—and whether SCB can truly recover—will depend on regulatory approvals, market conditions, and the ability to reclaim lost assets.

For now, SCB remains Vietnam’s largest-ever banking bailout case, a stark reminder of the risks in the country’s fast-growing financial sector.

Vietnam Airlines to Resume Hanoi-Moscow Direct Flights Very Soon

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Vietnam Airlines will restart its direct flights between Hanoi and Moscow on May 8, marking the end of a three-year suspension. The move aims to enhance air connectivity and support the recovery of tourism and trade between Vietnam and Russia.

In the initial phase, the national flag carrier will operate two weekly flights on Tuesdays and Thursdays using Boeing 787 wide-body aircraft. From July 2026, flight frequency will increase to three times per week to meet growing demand.

To celebrate the relaunch, Vietnam Airlines is offering special promotional fares, with round-trip tickets starting at 16,419,000 VND (approximately 643 USD). Passengers can also enjoy a 50% discount on their first prepaid baggage item and 30% off seat selection fees. These promotions apply to flights departing between May 8 and May 31, 2025, and are available through the airline’s website, mobile app, ticket offices, and official agents.

Russia remains a significant market for Vietnam’s tourism and trade. In 2024, passenger traffic between the two countries exceeded 220,000 travelers, more than double the 2023 figure but still just 26% of pre-pandemic levels in 2019.

The resumption of direct flights between Hanoi and Moscow offers travelers a seamless, high-quality travel experience while strengthening bilateral trade, investment, and cultural exchanges.

As part of its broader expansion strategy, Vietnam Airlines plans to launch and restore 15 international routes in 2025, connecting Vietnam to key destinations including Italy, Russia, Denmark, China, India, Japan, South Korea, and the UAE.

VanEck Eyes Bitcoin Fund in Vietnam, Signaling New Investment Opportunities

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Vietnam is emerging as a key player in the global cryptocurrency market, attracting interest from major international asset managers. VanEck, a global investment management firm overseeing approximately $113.8 billion in assets, is exploring the establishment of a Bitcoin-focused fund in Vietnam. This development underscores the country’s growing appeal as a destination for digital asset investment.

VanEck’s Vision for Vietnam’s Crypto Market

During a recent meeting with the State Securities Commission of Vietnam, Jan van Eck, CEO of VanEck Asset Management, expressed the company’s interest in forming a Bitcoin investment fund in collaboration with SSI Securities Corporation, one of Vietnam’s largest brokerage firms. Van Eck emphasized that a “proactive yet cautious, step-by-step approach” would be a prudent strategy for Vietnam in developing its cryptocurrency market.

In a separate discussion with Deputy Minister of Foreign Affairs Nguyen Minh Vu, van Eck highlighted VanEck’s pioneering role in launching exchange-traded funds (ETFs) for Bitcoin and Ethereum investments globally. He stressed that VanEck is keen to share its expertise in governance, risk management, and modern financial technology to support Vietnam’s evolving digital asset landscape.

Opportunities for Vietnam in Blockchain and Digital Assets

Vietnam is at a critical juncture in adopting blockchain and digital asset technologies. Recent changes in U.S. policies regarding cryptocurrency markets are opening new doors for international collaboration, particularly in legal framework development. VanEck anticipates high-level engagements between Vietnamese and U.S. regulators in the coming months to facilitate structured progress in this sector.

To accelerate this transformation, Vietnam is working on formalizing its legal framework for digital assets, including cryptocurrencies. A directive from Prime Minister Pham Minh Chinh has tasked the Ministry of Finance with finalizing a resolution to regulate digital assets. This resolution is expected to establish a pilot cryptocurrency exchange, providing investors with a legal and regulated platform for trading digital assets.

VanEck’s Global Leadership in Digital Asset Investments

Founded over 70 years ago, VanEck is recognized for its innovative investment solutions in global growth stocks, commodities, and digital assets. By the end of 2024, the firm managed over $113.8 billion in assets, primarily through ETFs, mutual funds, and institutional accounts.

VanEck has been at the forefront of cryptocurrency investments. In early 2024, the U.S. Securities and Exchange Commission (SEC) approved the VanEck Bitcoin Trust ETF, a move that significantly legitimized Bitcoin ETFs in mainstream finance. The fund currently holds approximately 14,020.9 BTC, valued at around $1.19 billion, showcasing the firm’s strong commitment to digital asset investments.

Vietnam’s Path to Becoming a Regional Crypto Hub

As Vietnam accelerates efforts to create a comprehensive regulatory framework for digital assets, global firms like VanEck see significant opportunities to participate in the country’s financial evolution. The Ministry of Finance has clarified that the planned cryptocurrency exchange will be managed by state-authorized entities, with clear guidelines on how Vietnamese firms can issue digital assets for fundraising.

Jan van Eck’s visit signals growing confidence in Vietnam’s potential as a regional hub for cryptocurrency and blockchain investment. By leveraging global expertise and collaborating with leading local financial institutions, Vietnam is positioning itself at the forefront of digital asset innovation in Southeast Asia.

For foreign investors, VanEck’s potential entry into Vietnam represents a major step toward legitimizing the country’s cryptocurrency sector, unlocking new opportunities for institutional investment, and fostering long-term growth in digital finance.

Record-Breaking US Business Delegation Visits Vietnam, Signaling Strong Investment Interest

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Vietnam is welcoming its largest-ever delegation of American businesses, with 64 companies from various industries visiting the country as part of a three-day trade mission. This milestone underscores the growing interest of US corporations in Vietnam’s dynamic market and its expanding economic opportunities.

Historic Visit by Leading US Corporations

On March 18 in Hanoi, the US-ASEAN Business Council (USABC) held a press conference announcing the unprecedented visit. The first delegation, comprising 58 top American firms, is visiting from March 18 to 20, followed by another focused on healthcare and life sciences from March 20 to 21. This combined group represents the largest business delegation ever brought to Vietnam under USABC’s initiatives.

Leading the delegation are USABC Chairman and former US Ambassador to Vietnam Ted Osius, former US Ambassador to Malaysia Brian McFeeters, and Boeing Vietnam Country Director Michael Nguyen.

This visit is particularly significant as it coincides with the 30th anniversary of the normalization of Vietnam-US relations in 2025. It also highlights Vietnam’s increasing appeal as a key investment destination for US firms, especially in sectors such as technology, finance, manufacturing, energy, aerospace, and consumer goods.

Global Giants Exploring Vietnam’s Investment Landscape

Several globally recognized companies are part of this mission, including Boeing, Apple, Intel, Coca-Cola, Nike, Amazon, Bell Textron, and Excelerate Energy. During their stay, the delegation is scheduled to meet with Vietnamese government leaders and participate in activities celebrating three decades of strong diplomatic and economic ties between the two nations.

US Businesses Express Confidence in Vietnam’s Future

“As Vietnam enters a new chapter with a fundamentally reformed and streamlined political system, the American business community looks forward to the positive impact of these changes and the opportunities ahead,” said USABC President Ted Osius.

He emphasized that the record number of American businesses participating in this visit reflects their strong belief in Vietnam’s economic future and the vast opportunities available.

Despite global trade uncertainties and potential tariff risks, Osius reaffirmed the US business community’s commitment to fostering stable, mutually beneficial trade relations with Vietnam.

“We recognize the challenges ahead, but we also acknowledge the enormous potential for deeper cooperation between our two countries,” he added.

US Support for Vietnam’s International Financial Center Ambitions

Osius also expressed support for Vietnam’s goal of developing an international financial center, stating that the US is eager to contribute to these efforts. On a personal note, he shared his plans to relocate to Ho Chi Minh City in July, describing it as a “dynamic city with abundant opportunities.”

Industry Leaders Eye Investment and Expansion in Vietnam

The delegation includes executives from a range of industries, all keen to explore investment and expansion opportunities in Vietnam:

Renewable Energy: A representative from Pacifico Energy Group shared the company’s plans to invest in Vietnam’s growing offshore wind power sector. Recognizing Vietnam’s vast potential in this area, Pacifico aims to collaborate on energy security projects and pave the way for other international investors.

Technology & AI: Meta (Facebook’s parent company) confirmed its long-term commitment to Vietnam and outlined plans to expand its presence in virtual space services. The company estimates that its upcoming initiatives will create 1,000 high-tech jobs in the country. Additionally, Meta is partnering with local firms to develop Vietnam’s largest AI-driven database, including AI tools designed specifically for Vietnamese users.

Strengthening Vietnam-US Economic Ties

The record-breaking US business delegation marks a new milestone in Vietnam-US economic relations. With growing confidence in Vietnam’s business climate, American investors are increasingly positioning the country as a strategic hub for innovation, trade, and economic collaboration. This visit is expected to generate new partnerships and investment deals, further solidifying Vietnam’s role as a leading destination for global enterprises.

Vietnam’s SMEs to Gain from $35 Billion Supply Chain Finance Initiative Backed by IFC, Switzerland, and Local Partners

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Vietnam is cementing its status as one of the world’s most open economies, with exports playing a pivotal role in driving economic growth.

Recognizing the critical need to enhance the competitiveness of the country’s small and medium enterprises (SMEs), the International Finance Corporation (IFC), the Embassy of Switzerland, local authorities, and business stakeholders have launched the second phase of an ambitious supply chain finance (SCF) program. Backed by a five million Swiss Francs grant from the State Secretariat for Economic Affairs (SECO) through 2029, the initiative aims to unlock up to $35 billion in working capital, benefiting over 500,000 Vietnamese SMEs.

Addressing Vietnam’s SME Financial Challenges

Vietnam’s economy is highly dependent on trade, with nearly 50% of the country’s gross domestic product (GDP) and every second job tied to the export sector. However, Vietnamese suppliers and exporters often face significant working capital constraints, as they typically receive payments 30 to 60 days after delivering goods. This delay hampers their ability to accept larger orders, expand production, and establish new business partnerships.

Despite SMEs’ crucial role in Vietnam’s economic landscape, fewer than 20% of local firms were linked to global value chains in 2023, according to a recent World Bank survey. This limited integration underscores the pressing need for enhanced financial solutions that can ease capital burdens and enable SMEs to compete more effectively in international markets.

How Supply Chain Finance Supports SMEs

Supply chain finance offers businesses quicker access to liquidity by converting sales receivables and inventories into cash. This financial tool helps firms reduce funding costs, streamline trade cycles, and strengthen their connections with global supply networks. By unlocking working capital, SMEs can invest in essential areas such as research and development, technology, workforce training, and business expansion.

H.E. Thomas Gass, Swiss Ambassador to Vietnam, highlighted the program’s transformative impact:

“We estimate that the first phase of the program has unlocked over $30 billion in capital for around half a million Vietnamese SMEs. By providing financial support to these businesses, the program not only helped SMEs to thrive but also contributed to the growth of the broader economy, fostering a more inclusive and sustainable marketplace.”

Achievements from the First Phase (2018-2023)

Launched in 2018 with SECO’s support, the IFC’s Vietnam SCF Program sought to address longstanding barriers to supply chain finance adoption. The first phase focused on three core areas:

Establishing an enabling regulatory framework for SCF development.
Enhancing the capacity of financial institutions to provide SCF solutions.
Increasing market awareness and demand for SCF among SMEs.

Over the past five years, the program has achieved significant milestones, including:

Facilitating regulatory improvements in movable asset financing.
Providing tailored SCF strategy consultations to four leading banks in Vietnam.
Enabling up to $33 billion in receivables and inventory financing for 500,000 SMEs.

Next Steps: Strengthening Vietnam’s SCF Market

Building on the successes of the first phase, the second phase of the SCF program, running through 2029, will focus on further strengthening Vietnam’s SCF ecosystem. Key priorities include:

Enhancing Legal and Regulatory Frameworks

The State Bank of Vietnam (SBV), IFC, and SECO will refine policies governing SCF.

Efforts will target digital finance regulations, e-financing platforms, and incentives for financial institutions to expand SCF offerings.

Strengthening Institutional Capacity Among Lenders

Banks and financial institutions will receive expert guidance on developing comprehensive SCF solutions.

Training programs will be implemented to enhance financial institutions’ ability to serve SME clients.

Promoting Awareness and Adoption of SCF Among SMEs

Educational initiatives will equip SMEs with the necessary knowledge to leverage SCF effectively.

Special emphasis will be placed on integrating local suppliers into global value chains.

Deputy Governor of the State Bank of Vietnam, Nguyen Ngoc Canh, reaffirmed the government’s commitment to fostering a robust SCF ecosystem:

“The State Bank of Vietnam, in collaboration with IFC and SECO, will continue to review and adjust regulations to foster a more favorable environment for SCF. This includes refining rules for e-financing platform lending and incentivizing financial institutions to diversify their offerings, ultimately improving credit access for SMEs.”

Vietnam’s SME sector is a critical driver of the country’s economic growth and global trade participation. With continued support from international partners like IFC and SECO, the enhanced SCF program aims to remove financial bottlenecks, boost SME competitiveness, and further integrate Vietnam’s businesses into global value chains. This initiative represents a significant step toward a more inclusive and resilient economy, reinforcing Vietnam’s position as a key player in international trade.

Two Men Arrested in Alleged Assault at Full Moon Party

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Authorities in Thailand have arrested two men in connection with an alleged assault that took place during the Full Moon Party on Haad Rin Beach, Ko Pha-ngan.

The incident reportedly occurred around 4:50 a.m. last Friday, during the island’s monthly all-night celebration. According to the Bangkok Post, the victim told police that due to intoxication at the time of the attack, she was unable to clearly identify the perpetrators.

Suspects Arrested and Charged

On Saturday, police arrested Vijay Dadasaheb, 47, and Rahul Balasaheb, 40. Both men have been charged with colluding in rape, a crime that carries a maximum sentence of 20 years in prison under Thai law.

According to Police Chief Apichart Chansamret, Dadasaheb confessed to the crime, while Balasaheb denied the rape allegations, claiming he only hugged and kissed the woman.

Investigation and Evidence

Authorities have collected key evidence, including witness testimonies, DNA samples, and CCTV footage, which reportedly shows no other suspects at the scene, Khaosod reported.

Full Moon Party’s Global Fame

The Full Moon Party, which originated in 1985, has grown into a world-famous event, drawing thousands of tourists each month for music, dancing, and beach festivities. However, incidents like this have raised ongoing concerns about safety at the popular gathering.

The case remains under investigation as authorities continue to review evidence and statements from all involved parties.

Vietnam Targets $454 Billion in Exports Despite Global Challenges

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Vietnam has set an ambitious export target of $454 billion for 2025, aiming for a 12% year-on-year growth, even as global economic headwinds threaten to slow down trade.

Rising Exports, But Challenges Remain

According to the Ministries of Finance and Industry and Trade, Vietnam’s export revenue reached $65.2 billion in the first two months of 2025, marking a 9.9% increase compared to the same period last year. Imports totaled $62.9 billion, rising 16%, resulting in a trade surplus of $235 million.

However, experts caution that achieving the ambitious export target will require decisive regulatory action and extraordinary business efforts to navigate persistent challenges.

Key Obstacles to Vietnam’s Export Growth

Nguyen Anh Son, Director General of the Ministry of Industry and Trade’s (MoIT) Agency of Foreign Trade, outlined several hurdles facing Vietnam’s exports:

Dependence on Key Markets: Vietnam remains heavily reliant on the US, EU, and China, exposing businesses to risks linked to global economic and political shifts.
Quality and Sustainability Gaps: Many Vietnamese products still fail to meet international standards, making them less competitive as global consumers increasingly prioritize quality and sustainability.
Infrastructure Limitations: Poorly coordinated investments in seaports and transport networks lead to high shipping costs and extended delivery times, reducing Vietnam’s competitiveness.
Lack of Market Intelligence: Many businesses struggle with production planning due to limited access to real-time market data and policy changes in key export destinations.

Infrastructure is the big challenge for Vietnam, especially at its ports.

Trade Tensions: Opportunities and Risks

Trade tensions among major economies could both help and hinder Vietnam’s exports.

US-Vietnam Trade Dynamics: Do Ngoc Hung, head of the Vietnam Trade Office in the US, suggested that Vietnam could benefit if it strategically captures market share amid US-China trade disputes. However, he warned that businesses must: Fully comply with US trade investigations. Avoid sourcing raw materials from countries subject to US tariffs to prevent origin fraud allegations.

China-Vietnam Trade Outlook: Nong Duc Lai, Vietnam’s trade counselor in China, noted that US-China tensions could drive increased foreign investment into Vietnam, providing opportunities for greater integration into global supply chains.

Government Strategies to Boost Exports

To mitigate risks and sustain export growth, the Ministry of Industry and Trade (MoIT) has outlined several strategic measures:

Market Monitoring & Diversification:

Businesses are urged to track policy changes in key markets and adjust production plans accordingly.
Trade offices abroad will provide regular updates to industry associations to help firms secure new orders.
Efforts will focus on expanding into new markets such as the Middle East and Halal markets.

Leveraging Free Trade Agreements (FTAs):

Vietnam aims to maximize benefits from existing FTAs and accelerate negotiations for new and upgraded trade agreements.
Enterprises will receive training on rules of origin to prevent fraud allegations and ensure compliance with trade regulations.
Improving Logistics & Digitalization:
Authorities plan to enhance logistics services to reduce export costs.
Greater digitalization of trade processes will streamline operations and improve efficiency.

The Road Ahead

With strong government backing and strategic market positioning, Vietnam’s ambitious $454 billion export goal remains within reach. However, business adaptability, policy reforms, and global trade dynamics will ultimately determine the country’s success in navigating the challenges ahead.

Vietnam Considers Visa Reforms to Attract Ultra-Wealthy Travelers

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Vietnam is emerging as a premier luxury travel destination, but long visa processing times remain a major hurdle for affluent visitors.

Government Push for Visa Reforms

Prime Minister Pham Minh Chinh has directed key ministries to review and potentially expand visa exemptions, particularly for traditional partner countries and ultra-high-net-worth individuals, including billionaires. The move aims to attract global experts, top-tier entrepreneurs, and luxury travelers, enhancing Vietnam’s reputation as a prime destination for both tourism and investment.

Rising Interest from Wealthy Travelers

Recent visits by global figures such as Bill Gates in Danang (March 2024) and Tim Cook in Hanoi (April 2024) have sparked increased interest in Vietnam. According to Agoda, Danang became the most-searched destination among American travelers in early 2025, witnessing a staggering 1,538% surge in searches.

Industry Experts Call for Swift Action

Nguyen Duc Hanh, CEO of All Asia Vacation (AAV), stressed the need for streamlined visa policies to remain competitive with regional neighbors like Thailand and Singapore. Vietnam’s current Visa-on-Arrival system requires prior approval, making the process cumbersome compared to other countries with more flexible entry rules.

“If we simplify visa policies for billionaires and high-net-worth individuals, Vietnam can become a top choice for ultra-luxury tourism,” Hanh noted. “Otherwise, we risk losing elite travelers to more visa-friendly destinations.”

With increasing global interest and high-profile visits, Vietnam’s visa policy reforms could be a game-changer in positioning the country as a premier luxury tourism hub.

Two Foreign Banks Commit Billions to Vietnam’s Renewable Energy Transition

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Vietnam’s renewable energy sector is set to receive a major financial boost as the European Investment Bank (EIB) and HSBC have pledged significant funding to support the country’s energy transition.

During a recent meeting with Deputy Minister of Industry and Trade Nguyen Hoang Long, representatives from HSBC and EIB reaffirmed their long-term commitment to financing Vietnam’s clean energy projects, including wind power, hydrogen, and smart grid infrastructure.

HSBC Pledges $12 Billion for Energy Transition

HSBC has committed up to $12 billion in financial support for Vietnam’s renewable energy initiatives. According to the bank’s representative, HSBC has already executed 22% of the committed funds through ongoing transactions, demonstrating strong financial backing for Vietnam’s green energy transition.

EIB Expands Investment in Key Renewable Projects

Nicola Beer, Vice President of the European Investment Bank (EIB), confirmed that EIB is actively funding key energy projects in Vietnam, including the Bac Ai pumped-storage hydropower project, which is being developed by Vietnam Electricity Group (EVN).

The EIB has also committed to continued support for Vietnam’s Just Energy Transition Partnership (JETP) as well as non-JETP energy projects. These investments will cover onshore and offshore wind power, hydrogen production, and smart grid development to enhance Vietnam’s renewable energy infrastructure.

As the world’s largest multilateral financial institution and a major climate finance provider, EIB plays a critical role in funding clean energy and sustainable development projects. With its expertise in lending, guarantees, equity investments, and advisory services, the bank has invested billions of euros into global climate adaptation initiatives.

The solar power farm in Ninh Thuan province.

Vietnam’s Renewable Energy Ambitions

During the meeting, Deputy Minister Nguyen Hoang Long assured investors that Vietnam’s revised Power Plan VIII is in its final stages and will soon be submitted to the Prime Minister for approval. Under this plan, Vietnam’s onshore and nearshore wind power capacity is expected to reach 26,066 – 38,029 MW by 2030.

The Deputy Minister also highlighted Vietnam’s vast potential for offshore wind power, positioning the country as a regional leader in renewable energy. He emphasized that foreign direct investment (FDI) in clean energy is rapidly increasing, as international investors prioritize low-carbon production and emissions reduction commitments.

A Strategic Investment Opportunity for Global Investors

With strong government backing, increasing FDI inflows, and major financial commitments from leading institutions, Vietnam’s renewable energy sector presents significant opportunities for global investors. The country’s commitment to clean energy expansion aligns with global sustainability goals, making it a prime destination for green investment and energy infrastructure development.

Vietnam Sees Strong FDI Growth in 2025, Driven by Manufacturing and Real Estate

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Vietnam’s foreign direct investment (FDI) inflows continue to rise, reflecting the country’s resilience and attractiveness as a regional investment hub.

In February 2025, FDI inflows reached $2.95 billion, marking a 5.4% increase year-on-year, while FDI pledges—a key indicator of future disbursements—jumped 35.5% to $6.90 billion, according to the Ministry of Planning and Investment.

South Korea and Singapore Lead Investment Surge

Among Vietnam’s key investors, South Korea topped the list, contributing $1.5 billion (21.7% of total FDI) in the first two months of the year, followed closely by Singapore with $1.48 billion (21.4%). China led in new projects (31%) and capital adjustments (18.8%), while South Korea dominated share purchases and capital contributions (27.1%).

Manufacturing and Real Estate Remain Key Investment Sectors

Vietnam’s manufacturing and processing industries remained the largest recipients of FDI, attracting $4.72 billion, accounting for 68.3% of total inflows, a significant 50.6% increase from the previous year.

Meanwhile, real estate remained the second-largest sector, receiving $1.5 billion (21.4%), though slightly down 3.4% year-on-year. Other high-growth sectors included professional services, science & technology, and retail, securing $354.6 million and $149 million, respectively.

Vietnam’s Long-Term FDI Growth Remains Strong

For the full year of 2024, FDI inflows into Vietnam rose 9.4% to $25.35 billion, while FDI pledges increased by 3% to $38.23 billion, reinforcing the country’s position as a top investment destination in Southeast Asia.

Commenting on Vietnam’s FDI momentum, Sophie Dao, Senior Partner at Global Business Services LLC (GBS), emphasized the country’s strategic advantages and investor-friendly policies.

“Vietnam’s sustained FDI growth reflects its strong manufacturing capabilities, skilled workforce, and commitment to economic reforms. Investors are increasingly drawn to the country’s competitive labor costs, extensive free trade agreements, and improving infrastructure,” Dao stated.

She also highlighted the government’s proactive efforts to attract foreign capital, including investment incentives, streamlined regulations, and infrastructure upgrades.

“With the Vietnamese government’s continued focus on economic liberalization and industrial development, we expect to see further diversification in investment, particularly in high-tech industries, renewable energy, and digital transformation,” she added.

Vietnam’s Outlook for Foreign Investors

As FDI pledges continue to rise, Vietnam is well-positioned to capitalize on shifting global supply chains, particularly as companies look for alternatives to China. The strong manufacturing, real estate, and technology sectors provide foreign investors with exciting opportunities for growth in one of Asia’s fastest-growing economies.

With robust investor confidence, favorable trade agreements, and strategic market positioning, Vietnam remains a top destination for international investment in 2025 and beyond.

Vietnam Reviews Import Duties to Boost U.S. LNG, Agriculture, and High-Tech Trade

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Vietnam is actively reviewing import duties on U.S. goods, including liquefied natural gas (LNG), agricultural products, and high-tech equipment, as part of efforts to strengthen trade ties with the United States, Prime Minister Pham Minh Chinh told U.S. Ambassador Marc Knapper during a meeting on Thursday.

Balancing Trade Relations with the U.S.

As a major export-driven economy, Vietnam has a trade surplus with the U.S. exceeding $123 billion in 2024. In response to concerns about global trade imbalances and the potential for reciprocal tariffs under a Trump administration, Vietnam is taking proactive steps to facilitate U.S. exports.

According to a statement on the Vietnamese government’s website, Prime Minister Chinh emphasized that relevant ministries and agencies are working to adjust import tariffs, particularly on key U.S. products such as LNG, agricultural goods, and advanced technology.

Vietnamese Delegation in Washington for Trade Talks

To advance trade discussions, a Vietnamese delegation led by Trade Minister Nguyen Hong Dien is currently in the United States for high-level meetings with top U.S. trade and energy officials. The goal is to negotiate agreements that enhance bilateral trade and investment.

Vietnamese officials have repeatedly signaled their commitment to addressing U.S. trade concerns, including expediting business approvals for U.S. firms. Notably, Vietnam has pledged to fast-track licensing for Elon Musk’s Starlink satellite services, underscoring its openness to U.S. high-tech investments.

LNG Imports as a Key Focus

Increasing imports of U.S. LNG has been a recurring topic in trade discussions, with both Vietnamese and U.S. officials highlighting its potential to help balance bilateral trade flows. However, no long-term agreements have been finalized.

Vietnam’s LNG sector is still in its early stages, currently relying on short-term purchases of small shipments rather than the multi-year contracts preferred by U.S. suppliers. Establishing more structured LNG deals could enhance Vietnam’s energy security while contributing to trade balance adjustments.

Expanding Agricultural and High-Tech Imports

Vietnam has also expressed readiness to import more U.S. agricultural products, reinforcing commitments made by the Vietnamese Trade Minister in February. In 2023, agricultural goods accounted for over 25% of U.S. exports to Vietnam, totaling $3.4 billion, with key imports including cotton, soybeans, and tree nuts.

Additionally, Vietnam is eager to expand its imports of U.S. high-tech products, including AI-grade chips and semiconductors. However, restrictions imposed by the Biden administration limit Vietnam’s access to the most advanced semiconductor technologies, creating challenges for Vietnam’s ambitions to develop its tech sector.

Strengthening Vietnam-U.S. Economic Cooperation

With growing economic ties, Vietnam is positioning itself as a key trade and investment partner for the U.S.. By adjusting import policies, Vietnam aims to reduce trade imbalances and mitigate potential tariff risks, diversify energy imports to enhance energy security, attract more U.S. high-tech investments, strengthen agricultural trade partnerships

The ongoing trade discussions between Hanoi and Washington will play a crucial role in shaping future economic cooperation, ensuring a mutually beneficial and sustainable trade relationship between the two nations.

Vietnam Sentences Eight Over Deadly Hanoi Apartment Fire That Killed 56

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A Vietnamese court on Friday sentenced eight individuals to prison in connection with a devastating fire that engulfed a Hanoi apartment block in September 2023, claiming 56 lives in the country’s deadliest fire in two decades.

Severe Violations of Fire Safety Regulations

The nine-story building, which had only one exit and lacked an external emergency ladder, became a death trap as flames spread rapidly. Residents and neighbors reported hearing desperate screams as people struggled to escape through barred windows.

The court found the building’s owner, Nghiem Quang Minh, guilty of violating fire prevention regulations and sentenced him to 12 years in prison, stating that he deserved the most severe punishment for his role in the tragedy.

Negligence Among Local Authorities

In addition to the owner, seven local officials received prison sentences ranging from 30 months to seven years for negligence in failing to properly report and address the building’s safety violations.

According to the court’s findings, one side of the apartment block had no windows at all, while another had only small ventilation slots, severely limiting escape routes.

“Extremely Dangerous Actions” with Devastating Consequences

The court condemned Minh’s actions as extremely dangerous, emphasizing that his failure to comply with fire safety regulations led to catastrophic loss of life and property damage.

“Among the dead and injured were several children and multiple members of the same families, causing immense suffering,” the verdict stated.

The Hanoi apartment fire stands as a stark reminder of the importance of fire safety compliance, prompting calls for stricter enforcement of building regulations in Vietnam.

Vietnam Considers Recognizing China’s Aircraft Certifications to Facilitate COMAC Jet Entry

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Vietnam’s aviation regulator has proposed recognizing China’s aircraft design certifications as equivalent to U.S. Federal Aviation Administration (FAA) standards, potentially clearing the way for Chinese state-owned aircraft manufacturer COMAC to enter the Vietnamese market, according to documents reviewed by Reuters.

Expanding Vietnam’s Aircraft Options

The proposal by the Civil Aviation Authority of Vietnam (CAAV) seeks to amend regulations by April 30, allowing the import and operation of Chinese-certified aircraft without requiring FAA or European Union Aviation Safety Agency (EASA) approval. However, this policy change still requires final approval from Vietnam’s top leadership.

If implemented, the amendment would provide Vietnamese airlines with more aircraft choices, reducing their reliance on Boeing and Airbus. The move comes as COMAC intensifies efforts to gain a foothold in Vietnam, holding meetings with top government officials and offering competitive incentives to local carriers.

Balancing Trade Relations with the U.S.

Vietnam’s aviation sector is also navigating complex trade dynamics, particularly with the United States. The country has been working to reduce its trade surplus with the U.S. following former President Donald Trump’s reciprocal tariff measures. As part of this effort, Vietnam has confirmed its intent to purchase Boeing 737 MAX jets, signaling continued investment in American aircraft.

The CAAV acknowledged the regulatory hurdles facing new entrants like COMAC, stating:
“Aircraft models that have not yet received FAA or EASA certification face challenges under Vietnam’s current legal framework.”

VietJet’s Interest in COMAC Jets

Vietnam’s leading budget airline, VietJet, has been exploring a short-term lease of two COMAC C919 regional jets for domestic routes. Initially scheduled for delivery in mid-January, the planes’ arrival was delayed due to pending regulatory approvals.

Two C919 aircraft previously operated by Chengdu Airlines have already been registered under VietJet’s fleet since late January, featuring VietJet branding and the number “75,” symbolizing 75 years of Vietnam-China relations. One of these jets conducted a demonstration flight across Vietnam on January 23, making stops in Hanoi, Ho Chi Minh City, and Con Dao before returning to Chengdu.

Deepening Vietnam-China Cooperation

The potential acceptance of COMAC aircraft aligns with broader Vietnam-China economic cooperation, which has expanded into defense, infrastructure, and transportation projects.

While Vietnamese aviation authorities and VietJet have not officially commented on the matter, the move to diversify aircraft suppliers could mark a strategic shift in Vietnam’s aviation sector—one that balances economic partnerships, trade relations, and market competitiveness.

Vietnam Moves Toward Legalizing Digital Asset Trading with Pilot Exchange Initiative

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Vietnam is taking a significant step toward regulating digital assets, with the Ministry of Finance tasked with drafting a resolution for a pilot virtual asset exchange.

The move, directed by Prime Minister Pham Minh Chinh, aims to create a legal and secure trading environment for both institutional and individual investors while ensuring state oversight and investor protection.

A Legal Framework for the Future of Digital Assets

In Official Dispatch 22, the Prime Minister outlined key priorities for improving Vietnam’s business environment, which include reducing administrative procedures and fostering digital economic growth. As part of these efforts, the Ministry of Finance will present its proposal in March, setting the foundation for a regulated virtual asset trading platform.

Under this pilot framework, the exchange will be operated by licensed enterprises, ensuring compliance with government regulations. The initiative marks Vietnam’s first step toward integrating digital assets into the national financial system, bringing the country in line with global trends in cryptocurrency regulation.

Industry Experts Welcome the Move

Speaking with Vietnam Insider, Ms. Lynn Hoang, Country Director of Binance Vietnam, described this development as a positive signal, demonstrating that Vietnamese authorities recognize the potential of digital assets and are committed to fostering innovation while mitigating risks.

“Digital assets are still a new and evolving sector worldwide. Establishing a clear legal framework will give Vietnam a competitive edge in the digital asset market while ensuring proper risk management. A well-defined regulatory environment will boost investor confidence and attract traditional financial players into the space, accelerating market maturity,” she stated.

Similarly, Mr. Duong Ngoc Dung, a veteran investor, emphasized that Vietnam’s approach aligns with global regulatory trends, particularly in developed markets where legal frameworks for crypto assets are already taking shape.

“The primary goal of regulation is to protect investors. Vietnam has witnessed numerous cryptocurrency scams due to the lack of legal recognition. Establishing a legal framework will provide much-needed protection and help authorities manage risks effectively,” he explained.

Beyond investor protection, Mr. Dung highlighted the growing influence of blockchain technology in Vietnam, stating that finding a balance between centralization and decentralization will be a key challenge for regulators.

A Shift Toward Transparent and Secure Digital Asset Management

At a recent government press conference, Deputy Minister of Finance Nguyen Duc Chi acknowledged that digital assets and cryptocurrencies present complex regulatory challenges, not just for Vietnam but for governments worldwide.

The upcoming resolution is expected to establish a transparent legal foundation, allowing Vietnam to regulate and harness the benefits of digital assets while ensuring their contribution to economic and social development.

With growing global interest in blockchain and digital finance, Vietnam’s pilot exchange could position the country as a leader in Southeast Asia’s digital asset ecosystem, fostering both investor confidence and innovation.

Vietnam’s Stock Market Enters a Strong Uptrend, Driven by Liquidity and Investor Confidence

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Vietnam’s stock market is showing strong bullish momentum, with the VN-Index holding firmly above the 1,300-point level, improved liquidity, and growing investor confidence.

Since surpassing 1,300 points on February 24, the index has maintained this key psychological threshold for 13 consecutive sessions, accumulating nearly 38 points (+2.9%). Market liquidity has also improved significantly, with eight consecutive trading sessions exceeding VND 20 trillion ($800 million) in transaction value.

While the VN-Index briefly wavered due to global market volatility, particularly sharp declines in U.S. stocks, key sectors such as banking, real estate, and securities provided support, preventing a significant pullback.

Vietnam’s Stock Market Outperforms Regional Peers

Since the start of 2024, the VN-Index has climbed nearly 68 points (+5%), outperforming major regional markets, including Malaysia, Shanghai (China), Singapore, and South Korea, according to Dragon Viet Securities (VDSC).

In an exclusive interview with Vietnam Insider, Mr. Duong Ngoc Dung, a seasoned investor with nearly 20 years of experience in both Vietnam and international stock markets, highlighted that the current uptrend began in late 2024.

“The market initially showed signs of an uptrend at the end of last year, and in 2025, we are witnessing an accumulation phase, with fluctuations mainly around 1,200-1,300 points. Now that the index has firmly surpassed 1,300, we can confirm that a new growth cycle is unfolding, offering substantial upside potential,” he stated.

Retail Investors Drive Market Growth

A key driver of the uptrend has been the strong buying power from domestic individual investors, who recorded a net buying volume of over VND 9 trillion ($360 million) on HoSE in February.

The surge in market participation is evident, with newly opened accounts nearly doubling in February compared to January, bringing the total number of domestic retail investor accounts to 9.48 million—equivalent to 9.4% of Vietnam’s population.
This surge reflects growing investor confidence, supported by the government’s flexible and proactive market policies, creating a solid foundation for long-term growth.

Market Upgrades and Economic Stimulus to Fuel Further Gains

Several upcoming developments are expected to further strengthen Vietnam’s stock market:

FTSE Russell market upgrade prospects – A potential reclassification of Vietnam’s stock market could attract large foreign institutional investments.
KRX Trading System – The launch of the Korea Exchange (KRX)-powered system will enhance market transparency, efficiency, and order processing speed.
Government stimulus and public investment – Policies to support private enterprises and boost infrastructure spending will provide a strong foundation for corporate earnings growth.
Strategic Investment Outlook

Looking ahead, Mr. Dung advises investors to take advantage of market consolidations to accumulate quality stocks with clear growth potential rather than chasing speculative stocks that have surged too high.

“Mid-cap stocks are presenting great opportunities during periods of market consolidation. Investors should focus on companies with strong fundamentals and clear growth trajectories instead of speculative stocks, which may face sharp corrections,” he noted.

With liquidity improving, investor participation rising, and strong economic tailwinds, Vietnam’s stock market appears well-positioned for a sustained uptrend in 2025 and beyond.