AGP Executive Report

Supply-Chain Shift: Google plans to fully move Pixel smartphone, smartwatch and wireless earbud manufacturing out of China by 2027, with Vietnam and India set to absorb production as US-China trade tensions keep pressuring tech supply chains. Energy Policy: Vietnam has rolled out mandatory E10 blending across all urban areas for its main gasoline grade, aiming for long-term ethanol demand of about 240 million gallons and boosting prospects for ethanol imports. Logistics & Trade: Maersk raised peak season surcharges for container imports into Maldives and Sri Lanka, with Vietnam-origin exports affected from 1 September, underlining cost pressure in regional shipping. Aviation & Mobility: Vietnam Airlines’ Munich incident is under investigation after a preliminary report described take-off acceleration issues and tyre damage; separately, UPS got DOT approval to transfer Hong Kong cargo rights to serve Clark Airport in the Philippines. Industrial Capacity: Lakeland Fire + Safety qualified its Vietnam cleanroom to manufacture Critical Environment garments, expanding production flexibility beyond China. Digital Operations: NX Group launched NX-VISTA to centralise order, shipping and inventory visibility across supply chains. Food & Industry Links: Moscow firms expanded food and tech outreach in Vietnam via Viet Food & Beverage, holding 120+ meetings and discussing pilot projects.

VAT Refund Acceleration: Vietnam’s tax authority will cut VAT refund processing time, targeting 90% of refunds before inspection in the last four months of 2026 and 95% in Q1 2027, with expedited refunds in September and automated refunds in December—aimed at improving cash flow for production and trade. Agri-Export Push: Vietnam’s ST25 rice has entered Germany’s Selgros Cash & Carry shelves via Mova Plus, supported by the Vietnam Trade Office in Germany, as Vietnam shifts from volume to quality and branding in EU markets. Industrial Policy Dialogue: Vietnam’s Geneva mission and FTU hosted a hybrid seminar on industrial policy, stressing evidence-based measures to move up value chains and manage risks from major-economy subsidies, tech rules and green incentives. Infrastructure for Competitiveness: Vietnam’s Party leadership reiterated building modern, multimodal transport and logistics corridors; meanwhile, northern central provinces are backing wind power and investment to drive double-digit growth. Energy & Circular Economy: FatHopes Energy and PetroVietnam Oil Corporation will build Vietnam’s nationwide used cooking oil collection ecosystem for traceable renewable feedstock for advanced biofuels, starting in HCMC. Digital Trade Trust: PILA and TOTM Technologies will pilot Verifiable Credentials for letters of credit between Vietnam and Singapore banks under IMDA’s TradeTrust framework to reduce verification costs and speed cross-border trade. Manufacturing & Shipping: HD Hyundai Eco Vina broke ground on a $116m eco-friendly independent tank plant in Quang Ngai to expand tank production from 2027 for maritime clients. Aviation Demand: Vietnam overtook Thailand to become Southeast Asia’s second-largest aviation market by available seats in August, supported by rising travel demand and airline-tour operator cooperation. Tech Ecosystem: Samsung opened a Hanoi Business Experience Studio to let corporate customers test integrated Samsung solutions across sectors like manufacturing, finance, education and healthcare.

Vietnam-EU Compliance: Vietnam’s SPS office says the EU is drafting much tighter pesticide residue limits for eight active ingredients, with proposed levels far below current Vietnamese rules; exporters face higher border checks for durian, dragon fruit, okra and chili unless farm-level application and residue certificates improve. Vietnam Connectivity & Space: Starlink has gone commercially live in Vietnam, offering residential and business plans plus dish kits, while SpaceX also signed a Vietnam launch deal with VinSpace—another step for local satellite ambitions. Vietnam Industry & Growth: Vietnam’s economy grew 8.3% in Apr-Jun, with manufacturing supported by strong demand for AI-related products and semiconductors, even as regional peers slowed amid Iran-linked energy and supply disruptions. Logistics & Trade Risks: A White House report on “transshipment” flags multiple hubs, but one analysis argues it cites no proof of rule-of-origin violations for India and points to industrial capacity and value addition in places including Vietnam. Global Energy Watch: Japan faces growing scrutiny over “green” biomass power after repeated fires and accidents at plants, raising safety and pollution concerns. Data Centers Pressure: Hyperscale data centers are drawing bipartisan backlash over local water and environmental impacts. Capital Markets (Global): First Solar securities class actions in the US set an Aug 24 lead-plaintiff deadline.

EV Dealership Expansion: VinFast signed an MOU with Indonesia’s Gowa Motor Group to set up a joint venture and build an EV dealership network, targeting at least 30 showrooms and service centers across the archipelago. Tax & HR Compliance: Vietnam’s 2026 Personal Income Tax amendments raise family deductions and expand tax-exempt items, pushing firms to re-check workforce data and payroll systems. Industrial Park Smart Solutions: SB Telecom Vietnam, SHINEC, Litehouse and VietABank agreed to co-develop “technology + finance + implementation/operation” solution packages for manufacturers inside industrial parks. Defense Industry Push: Vietnam has started construction of its first domestically designed multipurpose frigate, aiming for self-reliant, dual-use defense capabilities within 36 months. Cyber & Mobile Security: Kaspersky warned that mobile-first habits in Asia Pacific are driving a surge in mobile attacks, urging embedded protection for banks, retailers and app developers. Business Sustainability: ESG is shifting from reporting to day-to-day production decisions, with firms using it to cut energy use, waste and operational risk. Market Watch: VN-Index ended the week lower, with analysts pointing to credit-deposit gaps and foreign selling pressure.

EV Retail Expansion: VinFast and Indonesia’s Gowa Motor Group signed an MoU to form a joint venture to build VinFast’s EV dealership network in Indonesia, targeting at least 30 showrooms and service centres, as VinFast pushes further across Southeast Asia. Aviation Disruption: Vietnam Airlines’ Boeing 787 returned to Munich after a technical issue following takeoff, with the north runway closed and passengers reported safe. Trade Pressure on Seafood: The US raised final anti-dumping duties on Vietnamese pangasius exporters in an Aug 12 administrative review, lifting rates sharply for several firms and adding cost pressure for US-bound shipments. Agriculture Branding Push: Dak Lak launched its first provincial durian festival, highlighting 41,000ha of durian and a shift from selling output to building value through quality, standards and export-ready packing. Workforce Linkages: 55 Vietnamese trainees are set to begin vocational training in Germany’s Thuringia across 21 companies, with language and civics preparation built in. Logistics & Rules of Origin: Singapore’s MTI said firms transshipping through the city must accurately declare origin after a US report flagged potential tariff-evasion risks. EVFTA Trade Snapshot: Vietnam-EU trade data show EVFTA years generated 42.6% of cumulative bilateral trade, with Vietnam running a large surplus in the first half of 2026. EVFTA Trade Snapshot: Vietnam-EU trade data show EVFTA years generated 42.6% of cumulative bilateral trade, with Vietnam running a large surplus in the first half of 2026.

Export Pressure: Vietnam must generate about $227–231B in exports in the final five months to hit its 2026 target, with July exports up 21.7% but a $20.3B trade deficit and a need for an average monthly surplus of ~$3B. Food Safety Compliance: Vietnam’s agricultural exporters face tighter EU rules as the bloc drafts lower pesticide residue limits for eight active ingredients, with changes expected in 2027—raising the bar for farm practices and monitoring. Heavy Industry Expansion: HD Hyundai Eco Vina broke ground on a $116M “green” independent tank manufacturing project in Quang Ngai, targeting start of production in April 2027 and adding capacity for heavy industrial supply chains. Semiconductor Supply Chain: Samsung is reportedly considering shifting some DRAM/NAND backend packaging and testing from South Korea to Vietnam to free space for HBM stacking, as it ramps HBM output. EV Market Signal: VinFast’s July deliveries rose 21% month-on-month to 21,781 units, pointing to momentum as EV demand enters a “tipping point.” Mobility Retail Push: YADEA opened three new flagship stores in Cebu, expanding electric scooter and tricycle retail via partner M Lhuillier.

Shipbuilding & Heavy Industry: HD Hyundai Eco Vina broke ground on a $116m green independent tank manufacturing project in Quang Ngai’s Dung Quat EZ, targeting start-up in Apr 2027 and adding a second pillar alongside port cranes and industrial modules. Smart Manufacturing & Defense Industry: Vietnam is pushing ahead with homegrown anti-submarine warship work, including an indigenous anti-submarine frigate build, as regional security concerns keep pressure on maritime capability. Aerospace & Space Tech: VinSpace (Vingroup) signed with SpaceX for a 2027 Transporter rideshare mission, aiming to test Vietnam-made spacecraft tech and build local cleanroom and ground infrastructure. Mobility & Consumer Tech: A report highlights how Chinese “smart cockpits” are winning Vietnam showrooms with localized voice control, pushing foreign brands to catch up beyond basic infotainment. Trade & Logistics Compliance: Singapore’s MTI says firms transshipping through the hub must accurately declare origin after a US “Great Transshipment Scam” report flagged tariff-evasion risks. Regional Industry Signals: Cambodia’s garment sector is urged to adopt AI, robotics and greener production to stay competitive as global buyers demand faster, cleaner supply chains.

Vietnam Defense & Shipbuilding: Vietnam has started building its largest domestically designed anti-submarine frigate, with steel-cutting at Song Thu in Da Nang and a 36-month build, aiming to boost sovereign maritime capability amid South China Sea tensions. Cargo & Logistics Connectivity: Raya Airways launched scheduled cargo flights to Velana International Airport (VIA) in the Maldives, twice weekly from Penang, with most shipments expected to be transshipment cargo—another step for Southeast Asia–Indian Ocean air freight links. Trade Flows in the Region: China-ASEAN trade hit $643.2bn in H1 (+18.2%); Guangxi’s trade with ASEAN rose to a record, and freight trains between Guangxi and Vietnam now run daily, moving electronics south and tropical fruit north. Digital Government Cooperation: Singapore and Vietnam discussed deeper ties in digital government, smart cities, national data centres, and potential links between VNeID and Singpass to expand trusted digital services. Infrastructure Earnings: Vietnam’s public spending push is lifting profits for materials and infrastructure firms, with double-digit growth reported in the sector. Art & Tech in Hanoi: Van Gogh Timeless opened in Hanoi, bringing 165 licensed works to life via projection, VR/AR and multisensory tech. US Tariff Evasion Watch: A new US report alleges a “Great Transshipment Scam” involving Chinese exporters routing goods through 40+ countries; Malaysia’s Port Klang Free Zone rejected claims that Chinese-linked activity there proves evasion.

US–China Trade Crackdown: The White House escalated its tariff-evasion fight with “The Great Transshipment Scam,” alleging Chinese exporters reroute goods through 40+ countries (including India and Vietnam) via relabeling, repackaging and minor processing, costing the US up to $19–$26 billion a year in lost tariff revenue. Vietnam Industry & Trade: The same report flags Vietnam as part of a “shadow transshipment network,” putting extra scrutiny on importers and logistics flows tied to China-linked supply chains. Philippines–Pax Silica Watch: In Southeast Asia’s industrial push, Philippine lawmakers began reviewing the Pax Silica hub, with support tied to strict environmental, water/energy and community safeguards—an issue Vietnam manufacturers will watch as regional competition for high-value industry heats up. Vietnam Manufacturing Exports: Hyundai Thanh Cong started exports to Mexico and Australia from Ninh Binh, lifting 2026 shipments to 15,280 units (including component sets). Industrial Parks & Green Transition: Quang Ngai’s Dung Quat EZ and industrial parks reported 441 projects worth about $19.4bn and urged alignment with green growth models. Logistics & Air Cargo: Raya Airways launched scheduled cargo flights linking Malaysia and the Maldives, highlighting the region’s push to expand air-freight connectivity.

Vietnam–New Zealand Trade Push: Vietnam and New Zealand agreed to speed up efforts to reach US$3 billion in two-way trade, with the first-half figure at US$845 million, and a focus on smoother flows for agricultural and food supply chains. Vietnam–UK Growth Drivers: A Vietnam-UK high-level conference in Hanoi highlighted new cooperation paths in AI, fintech, crypto-related markets and logistics, as bilateral trade hit record levels in 2025 and kept rising in 2026. AI Partnership: FPT and Canada’s Mila-Quebec AI Institute deepened their partnership to build Vietnam’s AI ecosystem and strengthen participation in the global AI value chain. Banking Oversight: The Prime Minister told banks to grow credit with tighter risk control, stronger data security for digital transformation, and governance aligned with international standards. Corporate Bond Supervision: A new Decree 200 framework assigns provincial authorities a formal monitoring role for corporate bond issuers, tightening leverage limits and transparency. Industry & Exports: Vietnam promoted coffee and farm produce at Hong Kong’s food expo, while HCM City hosted three industrial expos covering sports, two-wheel mobility and manufacturing-linked trade. Logistics Watch: Maersk reported strong Q2 results and raised full-year guidance, pointing to demand strength and congestion pressures. Carbon Markets: Vietnam’s rubber sector explored how to tap carbon credit opportunities, weighing legal and financial hurdles before credits become a real revenue stream.

Vietnam Lawmaking: Vietnam’s National Assembly Standing Committee will review 25 draft laws and resolutions in three phases, including revisions to the Penal Code, criminal investigation agencies law, and updates tied to conditional business sectors, plus drafts on wind and solar project obstacles and energy-related special mechanisms. Trade & Logistics: Maersk raised its 2026 outlook after Q2 earnings surged on stronger Far East export demand, higher spot rates, and congestion—while the US flags transshipment risks tied to China-linked goods and pushes an AI “detective border” to catch tariff evasion. Circular Economy & Energy: FatHopes Energy and PetroVietnam Oil (PVOIL) plan Vietnam’s first nationwide used cooking oil collection ecosystem, starting in HCMC and scaling via about 1,000 petrol stations for traceable feedstock for SAF and advanced biofuels. Industry & Manufacturing: Vietnam’s ITE HCMC 2026 travel expo gears up for a record 20th edition with 520+ exhibitors and 260 international buyers, highlighting Vietnam’s push to connect tourism supply chains globally. Medtech Compliance: HPO.TECH says it completed its early transition of hyperbaric chambers to EU MDR 2017/745, ahead of many peers still working through legacy MDD deadlines.

Industrial Real Estate: KCN Vietnam broke ground on KCN Song Than 3, adding 21.9 hectares of ready-built factories and hybrid facilities with LEED green standards, aiming to expand premium industrial space by 130,000 sqm in the HCMC manufacturing/logistics cluster. Defense & Shipbuilding: Vietnam started construction of its largest domestically built frigate/warship, with local design and a push to build more weapons and equipment in-country. Energy & Renewables: OCI’s Vietnam unit Neo Silicon Technologies plans wafer thinning to lift solar wafer output capacity about 40% (to ~3.75 GW) and eye space-grade solar cells. Digital Infrastructure: A new policy push highlights modern digital infrastructure, high-quality internet access, and large-scale data centres as the base for Vietnam’s national data platform and innovation ecosystem. Trade & Sourcing: Target’s first participation in Vietnam International Sourcing Expo (VIS) 2026 signals new supplier opportunities for household goods, textiles, children’s products, personal care and packaging. AI & Enterprise Tech: FPT was named a Sitecore Diamond Partner, while Sobot upgraded its AI Agents toward more adaptive “reasoning to results” operations. Biotech Collaboration: Tam Anh Research Institute and UNSW’s RNA Institute signed an MoU to develop next-gen RNA biomedical tech for influenza and cancers. Food Export Rules: Korean exporters got a briefing on Vietnam and Indonesia non-tariff barriers, including halal certification and food safety law updates.

EV Market Pulse: VinFast delivered 21,781 electric vehicles in Vietnam in July, up 21% month-on-month, lifting 2026 domestic YTD deliveries to 137,697 units. Energy & LNG: Petrovietnam Gas is sounding out suppliers for Vietnam’s potential second five-year LNG term after Shell, with a possible 250,000–450,000 tonnes for the Thi Vai terminal starting January 2027. Digital Infrastructure: Vietnam’s Politburo Resolution 57-NQ/TW pushes modern digital infrastructure, wider high-quality internet access and large-scale data centres to underpin a national data platform and the broader innovation ecosystem. Banking & Treasury Tech: VTB launched a developer-based service for large firms to integrate accounting and treasury systems with banking services, targeting high-payment sectors like oil & gas, metallurgy and mining. Vietnam–Australia Industrial Ties: Talks in Canberra put science, technology, innovation and digital transformation at the center of the next phase of cooperation, including AI, semiconductors and quantum. Defense Industry: Vietnam has started building its largest domestically produced anti-submarine frigate at Song Thu Shipyard, aiming to develop and assemble more weapons and systems locally. Logistics & Trade: China–ASEAN freight links are expanding, with daily trains between Guangxi and Vietnam carrying electronics and machinery south and tropical fruit north. Maritime Expo: SMM 2026 signals growing international shipbuilding participation, with Vietnam among the first-time official representations.

Digital Infrastructure Push: Vietnam’s Politburo Resolution 57-NQ/TW calls for modern digital infrastructure, wider high-quality Internet access, and large data centres to underpin a national data platform and the broader innovation ecosystem. Cybersecurity Pressure: An IBM study says Southeast Asia’s average data-breach cost hit a record $4.12m in 2026, with AI making attacks cheaper and faster—Vietnam is among the surveyed markets. SOE Restructuring: Vietnam sets new State ownership thresholds under PM Decision 40/2026/QĐ-TTg, keeping 100% in essential public services, natural monopolies, and key tech/digital sectors, while enabling lower State stakes elsewhere. Strategic Minerals & Trade: Party leader To Lam highlights growing demand for strategic minerals and urges institutional improvements in mining to attract long-term investment, including with Australian firms. Energy Earnings: ACEN’s H1 net income jumps 411% to P3.9bn on stronger generation and electricity sales. Insurance Data Sharing: Non-life insurers push for wider data connectivity across the market to improve underwriting and claims, including linking motor insurance databases with traffic data. Vietnam–Australia Education Upgrade: A new TechConnect forum shifts cooperation toward joint research, tech development, and practical solutions. Industrial & Logistics Signals: Quang Ninh and Bac Ninh are poised to become cities, with proposals now moving through the legislature.

Digital Infrastructure Push: Vietnam’s Politburo Resolution 57-NQ/TW calls for modern digital infrastructure, wider high-quality internet access, and large data centres to power a national data platform and the broader innovation ecosystem. Space Industry Leap: VinSpace (Vingroup) signed with SpaceX for a 2027 Transporter rideshare launch, aiming to develop and operate Vietnam’s first privately funded commercial satellites and validate in-orbit tech for future services. Rail Sector Restructure: Vietnam Railways Corporation has been transformed into Vietnam National Railway Group, expanding roles from rail construction and maintenance to multimodal transport and broader support services. Aviation Training: Sun PhuQuoc Airways begins A320 type-rating training for its first cadet intake with BAA Training Vietnam in Ho Chi Minh City. Payments Partnership: AsiaPay and McDonald’s Việt Nam plan an integrated in-app “Mobile Order & Pay” rollout supporting cards, major e-wallets, and QR payments. Vietnam–Australia Economic & Tech Links: Hanoi and Canberra announced steps on economic resilience plus deeper science, technology and innovation connectivity, alongside finance cooperation ahead of APEC 2027. Energy Transition Funding Gap: Malaysia’s MIDA warns ASEAN faces a US$200bn annual investment gap for energy transition, citing slow bankability and fragmented rules. Defense Build-Up: Vietnam starts construction of its largest domestically built anti-submarine warship/frigate to strengthen maritime security.

Vietnam–Australia Partnership: Prime Minister Anthony Albanese and President To Lam agreed to deepen the comprehensive strategic partnership in Canberra, with new cooperation on the digital economy, agriculture, sustainable development, defence and critical minerals, plus supply-chain resilience. Space Industry: VinSpace signed a launch contract with SpaceX for 2027, aiming to build full-stack satellite capabilities from design and manufacturing to operations and data services. Digital Infrastructure: Vietnam’s Politburo Resolution 57-NQ/TW pushes modern digital infrastructure, wider high-quality internet access and large-scale data centres as the base for a national data platform. Maritime Defence Manufacturing: Vietnam has started building what it calls its largest domestically made anti-submarine frigate, with weapons and equipment developed or assembled locally. Textiles & Exports: Vietnam’s textile and garment exports hit about $27.02bn in seven months, with July apparel sales rising and upstream inputs (yarn, accessories, fabric) growing. Banking Customer Experience: Vietcombank returned to the top of Vietnam’s 2026 bank satisfaction rankings, edging ahead of Techcombank and MB. Agriculture Trade: Vietnam’s pepper exports rose strongly in Jan–Jul, while the country’s fruit imports from Australia and New Zealand also climbed. Aviation & Tourism Links: Vietjet plans new routes from Ho Chi Minh City to Western Sydney from 2027, supported by growing Vietnamese demand in Australia. Consumer Tech Regulation: Vietnam fined Grab for data and disclosure failures, ordering fixes to consumer-facing policies. Sports Sponsorship: XTEP signed a five-year strategic partnership with the Techcombank Ho Chi Minh City International Marathon as Vietnam’s running scene keeps expanding.