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.
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’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 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.
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’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.”
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 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 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.
Vietnamese cybersecurity firm Verichains played a crucial role in investigating the $1.5 billion cryptocurrency hack that hit Bybit, marking one of the largest cyberattacks in crypto history.
Verichains’ Swift Response to the Attack
On February 21, hackers exploited Bybit’s cold wallet, stealing 400,000 ETH. Upon learning of the breach, Thanh Nguyen, founder of Verichains, immediately mobilized his team. Within hours, they coordinated with Bybit and flew to Dubai to analyze the incident.
Just three days later, Verichains released a detailed 28-page report, the first comprehensive analysis of the breach. Their findings confirmed that the attack originated from Safe, a third-party multisignature wallet service used by Bybit. Hackers—later linked to Lazarus Group—manipulated JavaScript code to create a fraudulent transaction, tricking Bybit’s signers into unknowingly approving the transfer.
Bybit CEO Ben Zhou praised the Verichains team, stating: “They are probably the most knowledgeable cybersecurity experts in the world. I was truly surprised and impressed when I learned they were from Vietnam.”
Who Is Verichains?
Founded in 2017, Verichains has emerged as one of the world’s leading blockchain security firms, providing security solutions for over 200 global clients, including Binance, Galaxy Digital, Polygon, BNB, Aptos, and Kakao. The company has previously assisted in handling some of the biggest crypto hacks, such as: The $600 million Binance Smart Chain bridge attack; The $650 million Ronin bridge hack affecting Sky Mavis in 2022
In March 2023, Verichains launched Revela, a tool designed to enhance blockchain transparency and security, earning high praise from industry leaders like Aptos co-founder Mo Shaikh.
Bybit’s Security Overhaul
Following the breach, Bybit has committed to major security upgrades, with CEO Ben Zhou personally overseeing cybersecurity measures.
The company is adopting “bank-level” security protocols to enhance asset protection. Weekly security reports will be reviewed at the highest level.
Bybit plans to strengthen its partnership with Verichains for ongoing security improvements.
Despite the hack, Bybit’s trading volume surged past $48 billion by February 26, with liquidity levels exceeding pre-attack figures.
“This incident is a wake-up call for the entire crypto industry. We see it as an opportunity to strengthen security and build a more resilient ecosystem,” a Bybit representative stated.
Google has unveiled Gemma 3, a new artificial intelligence (AI) model designed for exceptional efficiency and low resource consumption, capable of running on a single graphics processing unit (GPU).
The launch comes as part of Google’s effort to compete with DeepSeek’s R1, the Chinese AI model known for its ability to operate effectively on older-generation hardware.
Gemma 3: Google’s Most Efficient AI Model Yet
More than a year after releasing the first two versions of its Gemma AI model, Google has introduced Gemma 3, an upgraded version designed for maximum efficiency. According to an official blog post, Gemma 3 is an open-source AI model that enables developers to create AI-powered applications that run on a wide range of devices—from smartphones to workstations.
What sets Gemma 3 apart is its minimal hardware requirements. Unlike traditional AI models that demand massive server systems, Gemma 3 can run smoothly on a single Nvidia GPU or specialized AI hardware. Google claims that Gemma 3’s performance surpasses that of competitors such as Meta’s Llama, OpenAI’s GPT, and DeepSeek’s R1, particularly in terms of cost-effectiveness and efficiency.
According to Chatbot Arena, a platform that benchmarks AI models, Gemma 3 achieves 98% of DeepSeek R1’s performance score. However, while DeepSeek R1 requires 32 Nvidia H100 GPUs to operate at full capacity, Gemma 3 delivers nearly identical performance using just one. This marks a significant breakthrough in AI optimization, allowing for lower costs and broader accessibility.
Advanced AI Capabilities and Ethical Safeguards
Google has equipped Gemma 3 with a wide range of AI capabilities, enabling it to process text, images, and videos, and even generate multimedia content based on user descriptions. To ensure ethical AI usage, Google has integrated ShieldGemma 2, an advanced content moderation system that filters inappropriate or harmful visual content, preventing the generation of explicit, violent, or misleading material.
The New AI Race: Balancing Efficiency and Cost
The launch of Gemma 3 underscores a shifting trend in AI development—one that prioritizes efficiency and cost-effectiveness over sheer processing power.
When DeepSeek R1 made headlines earlier this year, the AI world took notice. DeepSeek claimed to have built and deployed R1 for just $5.6 million, a fraction of the billions spent by U.S. tech giants on their AI models. Moreover, DeepSeek developed R1 using older AI chips, a necessity due to U.S. trade restrictions limiting China’s access to high-end semiconductors. Despite this, R1 demonstrated remarkable processing power and speed, challenging the dominance of Western AI models.
DeepSeek’s disruptive entry into the market sparked a new AI competition—one where efficiency and affordability became as crucial as intelligence and computational strength. With Gemma 3, Google is proving that U.S. tech companies can also produce highly efficient, cost-effective AI models, intensifying the U.S.-China AI rivalry.
What’s Next?
As AI continues to evolve, the battle for dominance is no longer just about performance—it’s about making AI accessible, scalable, and cost-efficient. With Gemma 3, Google is setting a new standard for lightweight, high-performing AI models, posing a direct challenge to DeepSeek and reinforcing its position in the AI arms race.
As competition heats up, the AI industry is moving toward a future where powerful AI can be deployed on minimal hardware, opening the door for broader adoption across industries worldwide. The next phase of AI innovation will likely focus on balancing intelligence with economic feasibility, reshaping the landscape of artificial intelligence as we know it.
Vietnam’s domestic air transport sector is grappling with a shortage of short-haul flights, a situation that limits the efficiency of its aviation network and economic potential.
According to ATR, the world’s leading short-haul aircraft manufacturer, only a small fraction of Vietnam’s fleet is dedicated to short-haul routes, which are crucial for improving connectivity across the country.
A Narrow Focus on Long-Haul Flights
Currently, a significant portion of domestic flights in Vietnam relies on larger aircraft, with 25% of flights on routes under 550 kilometers using planes that are not cost-effective or frequency-optimized for these distances. This practice leads to inefficiencies, particularly given that smaller, more efficient aircraft could significantly improve the cost-effectiveness of these short routes. As Jean-Daniel Kosowski, ATR’s Business Director, pointed out, “Vietnam operates just 2% of its total fleet as short-haul aircraft, whereas Japan’s ratio is 17%, and the global average stands at 25%.”
The problem lies in the underutilization of smaller regional airports. With 90% of domestic flight traffic concentrated at just 10 out of 22 airports in Vietnam, many local airports remain underused, hindering the country’s potential to develop a more balanced air transport network.
The Potential of Short-Haul Aviation
A recent in-depth report published by ATR and TEDI highlights the significant opportunities for short-haul air transport in Vietnam. The study identifies 149 domestic routes within a range of 555 kilometers, a distance ideal for small aircraft. Of these, 87 routes exhibit high traffic potential, yet remain underdeveloped. To serve these routes efficiently, Vietnam would need approximately 25 ATR 72-600 aircraft, a highly fuel-efficient and cost-effective solution for these distances.
Short-haul aviation offers tremendous economic and social benefits. Studies show that increasing the frequency of short-haul flights by just 10% could boost local tourism by 5%, local GDP by 6%, and foreign direct investment by 8%—a powerful argument for investing in this part of the aviation market.
Screens inside a Vietnam Airlines’ Airbus A350 aircraft, April 2019. Photo by VTC.
Vietnam’s Growing Aviation Market
Vietnam’s aviation industry is expanding rapidly. Domestic air transport growth is forecast to exceed 20% annually from 2023 to 2027, driven by a rising demand for air travel across the country. The government’s revised plan to increase the number of approved airports from 22 to 30 by 2030 further emphasizes the importance of short-haul flights in connecting communities and unlocking economic potential across Vietnam.
In this context, short-haul air transport is not just a complementary service to road transport, but a critical component in improving mobility, linking small cities, and ensuring that the benefits of economic growth are more evenly distributed across the country.
To optimize the domestic aviation network and meet the growing demand for air travel, Vietnam must prioritize the development of short-haul aviation. This will require expanding the fleet of smaller aircraft, better utilizing regional airports, and improving connectivity across the country. By doing so, Vietnam can unlock the full potential of its aviation sector, driving economic growth, boosting tourism, and fostering stronger connections within the region.
Seafood processing businesses in Bà Rịa-Vũng Tàu Province are facing a severe shortage of raw materials, even as demand surges in international markets.
To sustain production, companies are resorting to stockpiling supplies and importing seafood from overseas.
Industry in Crisis: Supply Shortages Disrupt Operations
The supply crunch has significantly impacted Bà Rịa-Vũng Tàu Seafood Processing, Import and Export JSC, forcing the company to source materials from across Vietnam—but even that is not enough.
“Despite procuring raw materials locally and nationwide, we still cannot meet customer demand,” said Nguyễn Công Huyên, Deputy General Director. Currently, domestic supply meets only 40–50% of the company’s requirements.
To bridge the gap, the firm is importing raw seafood from Southeast Asia and Europe and investing in cold storage facilities to stockpile materials. These efforts are crucial in helping the company reach its ambitious export target of $60 million in 2025.
Meanwhile, Thuận Huệ Production Service and Trading Corp has been forced to cut export targets and temporarily lay off workers for two months each year due to supply constraints.
To mitigate these challenges, the company is:
✔ Freezing raw materials to build reserves of up to 500 tonnes
✔ Expanding processing lines to diversify product offerings
✔ Shifting focus to processed squid products to maintain export volume and job stability
“If we continue relying on traditional product lines, we will struggle with increasingly scarce raw materials,” said Đồng Thị Huệ, Director of Thuận Huệ Corp.
Impact on Bà Rịa-Vũng Tàu’s Seafood Sector
Home to 175 seafood processing and trading businesses, Bà Rịa-Vũng Tàu is a key hub for processed seafood exports, including surimi, fish, squid, octopus, and crab. The beginning of the year is typically a high-demand period for exports, but the raw material shortage has crippled production capacity.
According to the Bà Rịa-Vũng Tàu Department of Industry and Trade, the province’s seafood exports totaled over $31 million in the first two months of 2025, reflecting a 4.61% decline year-on-year.
While the province’s annual seafood catch stands at 350,000 tonnes, this falls short of the needs of local processors. Businesses are increasingly relying on imports to sustain operations, but this short-term fix fails to address the root cause of supply shortages.
The Road Ahead: Securing a Sustainable Supply
To ensure long-term stability, Vietnam’s seafood industry must adopt sustainable sourcing strategies, including:
Developing sustainable aquaculture projects to boost domestic supply
Strengthening supply chain partnerships to reduce dependence on imports
Expanding cold storage infrastructure to stockpile materials during peak seasons
With global demand for Vietnamese seafood on the rise, addressing these challenges will be critical for maintaining export competitiveness and securing the future of the industry.
Kazakhstan’s national flag carrier Air Astana and SCAT Airlines are set to launch direct flights from Almaty and Astana to Đà Nẵng starting this June, further strengthening air connectivity between the two countries.
This expansion follows successful discussions between the airlines and Airports Corporation of Vietnam (ACV).
Expanding Air Links Between Vietnam and Kazakhstan
According to ACV-Đà Nẵng, Air Astana will begin its Almaty-Đà Nẵng route on June 4, increasing its weekly flights to Vietnam to nine, including
four flights between Almaty and Nha Trang; three flights between Astana and Nha Trang; flights to Phú Quốc and Đà Nẵng.
Meanwhile, SCAT Airlines is finalizing its schedule to launch direct flights from Astana to Đà Nẵng, following its successful operations in 2023 from Almaty to Cam Ranh (Khánh Hoà) and Phú Quốc.
This move highlights the growing cooperation between Kazakhstan and Đà Nẵng, following the signing of a Memorandum of Understanding on Friendship and Cooperation with Aktau earlier this year.
Boosting Tourism and Investment in Đà Nẵng
Đà Nẵng, a top coastal destination in Vietnam, has been actively promoting tourism partnerships across Asia. The city previously hosted a FAM trip for leading travel agencies from Kazakhstan, Uzbekistan, and the Philippines, aiming to foster new tourism links and encourage direct air routes.
Beyond Kazakhstan, Đà Nẵng is strengthening its position as an international aviation hub, with several new flight routes launching in 2024:
Cebu Pacific Air operates seven flights per week between Manila and Đà Nẵng
Royal Air offers four weekly chartered flights from the Philippines
Vietnam Airlines will launch Đà Nẵng-Bangkok (March 30) and Đà Nẵng-Osaka (July) routes
Myanmar Airways will introduce two weekly flights from Yangon to Đà Nẵng, starting April 2
Đà Nẵng’s Growing Aviation Infrastructure
In 2024, Đà Nẵng International Airport handled 13.4 million passengers, including 6.2 million international arrivals, while cargo volume reached 32,400 tonnes. The airport now serves 24 direct routes, with 16 international connections, and operates 90 to 140 flights daily.
With the new Kazakhstan routes, Đà Nẵng continues to strengthen its position as a key gateway for international tourists and investors, further boosting economic and tourism growth in Vietnam.
The manufacturing sector in Southeast Asia has attracted substantial international business due to competitive labor costs and a strategic location. However, finding reliable suppliers remains a challenge, especially for SMEs. While Artificial Intelligence (AI) offers exciting possibilities for streamlining sourcing, it’s crucial to recognize its current role as a powerful assistant that enhances, rather than replaces, human expertise and traditional methods.
The Rise of AI in Sourcing
AI technologies are emerging as valuable tools for enhancing traditional sourcing methods by processing large datasets to identify potential suppliers more efficiently. According to the “Growing Up: Navigating Gen AI’s Early Years” survey, in 2024, among 800 senior business leaders who were surveyed, 72% of them use AI weekly, a significant rise from 37% in 2023.
As businesses are becoming more and more accepting of using AI, so does the sourcing service. In recent years, AI is transforming sourcing by making it easier to find and evaluate suppliers. It can scan online directories, industry reports, and news sources to create a list of suppliers based on factors like product type, certifications, and production capacity. AI also helps assess risks by analyzing financial records, customer reviews, and news articles to check a supplier’s reliability and compliance with regulations. Additionally, AI-powered translation tools improve communication by breaking language barriers, making it easier for international buyers to work with Vietnamese suppliers.
In the video below, we look at how five AI tools, including ChatGPT, Gemini AI, Bing AI, Deep Seek, and Claude AI, perform when asked to generate a list of manufacturers in Vietnam.
The Power of a Hybrid Approach: Combining AI and Human Expertise
AI has transformed sourcing by automating research, identifying potential suppliers, and analyzing key data points such as certifications and production capacity. However, while AI offers efficiency, it cannot fully replace traditional sourcing methods. The most effective approach combines AI-driven insights with human expertise to ensure reliability and quality.
One major limitation of AI is the limited online presence of many SMEs. In Vietnam, many small and mid-sized factories do not have websites or digital profiles, meaning AI tools may overlook valuable suppliers simply because they are not easily found online. On-site verification and human evaluation remain essential, as AI cannot conduct factory audits, assess production conditions, or detect quality issues that might not be captured in digital records.
Trust and relationship-building also play a critical role in sourcing. Finding the right supplier is not just about price—it requires cultural understanding, negotiation skills, and long-term collaboration. Strong personal connections lead to better partnerships and more reliable supply chains, something AI alone cannot facilitate.
That said, AI still plays a valuable role in streamlining the initial research process. It can quickly filter suppliers based on key criteria like product category, certifications, and capacity, providing a strong starting point for deeper evaluation. However, manual verification remains crucial—through on-site visits, audits, and face-to-face meetings—to validate production capabilities, ethical practices, and overall supplier credibility.
By combining AI’s efficiency with human expertise, businesses can optimize their sourcing strategy—leveraging technology for speed and scale while ensuring quality and trust through hands-on assessment. This hybrid approach strikes the right balance between automation and the personal touch needed for long-term sourcing success.
The Future of AI in Sourcing: Augmenting Human Capability
As AI technology advances, its role in sourcing will continue to grow. We can expect AI to become even more useful in several key areas.
One major development is predictive analytics, where AI can analyze historical data to forecast potential supply chain disruptions, quality issues, or cost fluctuations. This allows businesses to take proactive steps to minimize risks before problems arise.
Another area is real-time monitoring. AI-powered sensors and monitoring systems can track production processes, measure quality metrics, and ensure compliance with safety and environmental standards in real time. This enhances transparency and helps maintain consistent quality.
Additionally, AI can improve communication between buyers and suppliers. AI-powered chatbots and virtual assistants can provide instant support, answer supplier questions, and resolve issues more efficiently, reducing delays and misunderstandings.
However, while AI will continue to enhance sourcing, it will not replace human expertise. Human judgment, relationship-building skills, and industry knowledge will remain essential for successful sourcing in Vietnam. AI should be seen as a tool to support and improve decision-making, not as a substitute for human involvement.
Final thought
AI is undoubtedly transforming the sourcing landscape in Vietnam, offering new opportunities for efficiency, cost reduction, and risk management. However, businesses must adopt a balanced approach that integrates AI with human expertise to navigate Vietnam’s complex supplier ecosystem successfully.
The most effective sourcing strategies will leverage AI-driven insights for speed and scalability while maintaining a strong focus on personal relationships, quality assurance, and ethical sourcing practices. By combining technology with industry know-how, businesses can optimize their supply chains and build long-term, sustainable partnerships in Vietnam’s dynamic manufacturing market.
Vietnam and Singapore have agreed to deepen cooperation in subsea cable infrastructure, finance, and energy, further elevating their bilateral ties. The agreement was reached during the visit of Vietnam’s Communist Party Chief, Tô Lâm, to Singapore on Wednesday, marking an upgrade to Vietnam’s highest level of diplomatic relations with the city-state.
Singapore is now the third Southeast Asian country—after Malaysia and Indonesia—to establish a comprehensive strategic partnership with Vietnam, reflecting their strengthened economic and technological collaboration.
According to a joint statement, Tô Lâm and Singaporean Prime Minister Lawrence Wong oversaw the exchange of six agreements, with a key focus on undersea cable development, digital connectivity, and cross-border data flow.
Southeast Asia is a crucial hub for submarine cable networks linking Asia and Europe. As demand for AI-driven services and data centers surges, regional countries are expanding their infrastructure to support digital growth. Vietnam, in particular, has ambitious plans to roll out 10 new submarine cables by 2030.
The Vietnam Singapore Industrial Park, which is one of the largest integrated townships and industrial parks co-initiated by the Singapore and Vietnam governments, and jointly developed by Sembcorp Development and Becamex.PHOTO: SEMBCORP DEVELOPMENT
In December, Reuters reported that Singapore-based asset manager Keppel and Vietnam’s Sovico Group were in discussions to develop new undersea fiber-optic cables, aiming to bolster the region’s data center industry. Meanwhile, Vietnam’s state-owned telecom firm Viettel and Singapore’s Singtel signed a preliminary agreement in April last year to build a direct undersea cable link between the two nations, though no construction contract has been finalized yet.
Broader Economic and Investment Cooperation
Beyond digital infrastructure, the two leaders also discussed green development, industrial park expansion, and regional stability. Singapore reaffirmed its commitment to supporting Vietnam in developing international financial centers, a key initiative for Vietnam’s economic growth.
Singapore remains one of Vietnam’s largest foreign investors, pouring in $10.21 billion in 2023, which accounted for 27% of Vietnam’s total foreign investment, according to official data.
With these new agreements, Vietnam and Singapore continue to strengthen their strategic partnership, paving the way for deeper economic, technological, and financial collaboration in the years ahead.
