AGP Executive Report

Vietnam Growth Watch: Vietnam’s economy accelerated to 9.95% in Q3, the fastest in four years, with exports up 39.1% in September and a trade surplus returning (US$1.27bn), helped by stronger industry and construction and a jump in pledged FDI. Government Execution: PM Le Minh Hung urged ministries and localities to set clear roadmaps and push determination to hit 2026 targets amid a complex global outlook. Textiles & Garments: The sector is targeting $47–47.5bn in 2026 exports, leaning on market diversification plus green and digital transformation, automation and AI, and tighter value-chain links. EU Coffee Trade: EU coffee imports hit 2.9m tonnes in 2025, with Vietnam the bloc’s second-largest supplier by volume (587,500 tonnes), underscoring Vietnam’s role in high-value agricultural exports. Hanoi Flood Safety & Planning: Experts urged Hanoi to better balance Red River development with flood safety, shifting the city’s mindset from “turning away” to “facing the river.” Transport Infrastructure: Vietnam Railways outlined key challenges for Phu Quoc’s 17.59km light-rail line for APEC 2027, while traffic police plan an overtaking-lane trial on major expressways from Q4 2026. Nuclear Workforce: Vietnam highlighted a growing shortage of specialized nuclear power personnel and set training targets for Ninh Thuan 1 and 2. Mekong Delta Agriculture: Can Tho launched the GoRice project (2026–2029) to build low-carbon, gender-just rice value chains with circular-economy practices.

Clean Energy & Industry Investment: Vestas says it has secured investment licenses for two early wind projects under Vietnam’s PDP8, using 4MW turbines with 163m rotors and 155m hub-height solutions, backed by 20-year service deals—another sign of momentum in Vietnam’s wind buildout. Energy Transition & Automation: ABB reaffirmed its commitment to Vietnam’s electrification and automation push, highlighting support for energy infrastructure, data centres and industrial innovation as Vietnam accelerates under PDP8. Manufacturing Capacity Expansion: Pandora opened a Vietnam fine-jewellery crafting facility, boosting capacity by 50% to up to 60 million pieces per year and positioning Vietnam as a key production hub for future materials and designs. Policy & Business Environment: Vietnam cut fire safety administrative procedures, shifting from pre-approval to post-inspection to reduce red tape and increase investor responsibility. Capital Markets: Vietnam plans to expand and deepen its capital market to mobilise medium- and long-term funding for infrastructure, energy transition and new industries, with an eye on international investor access. Urban Infrastructure: Ho Chi Minh City is preparing three metro lines totaling nearly 90km and over $9.6bn, targeting approvals in Dec 2026 and construction by year-end. Trade & Legal Cooperation: Vietnam urged JBIC and Japanese firms to boost high-quality investment in strategic sectors, while Hanoi and Japan exchanged practical experience on handling IP disputes.

M&A & Manufacturing: Japan’s Kokuyo approved $177m (28 billion yen) for its Singapore acquisition vehicle to buy into Vietnam’s Thien Long Group, aiming to make TLG a subsidiary, with timing tied to Vietnamese approvals. Textiles & Exports: Vietnam’s textile and garment sector is pushing for $47–47.5bn export revenue in 2026, citing market diversification to 137 territories and faster green/digital transformation plus automation and AI. Agri-Food Trade: Vietnam’s agro-forestry-fishery exports hit $56.3bn in Jan–Sep 2026 (+7.8%); September alone reached $6.51bn (+5.7%), with China, the US and Japan as top markets. Industrial Parks & FDI: An Phat 5 Industrial Park in Haiphong (150ha) is accelerating infrastructure completion for 2026 handover and 2027 operations, targeting northern investment demand. Energy Infrastructure: EVN and partners completed key power projects for Phu Quoc ahead of APEC 2027, including a 220kV substation and new 110kV transmission lines. Regional Finance Resilience: ERIA and Vietnam’s ISPAE convened an ASEAN workshop in HCMC on innovative disaster finance for climate-resilient growth.

Jewelry Manufacturing Push: Danish brand Pandora opened a $150m fine-jewelry factory in Ho Chi Minh City, aiming to add 50% capacity to reach up to 60m pieces a year and create about 7,000 jobs, with production powered by renewable electricity and using 100% recycled gold and silver. Urban Resilience & Climate: Ho Chi Minh City faced flooding risk as high tides and heavy rain hit Sept. 30, with experts linking worsening flood exposure to climate change, rapid urbanization and land subsidence. Local Growth Snapshot: HCMC’s Q3 2026 economy grew 9.86% y/y, led by services (+9.95%) and industry & construction (+10.17%), while agriculture rose 3.4%. Digital & Media: A new report highlights how censorship can be “routed around” online, using a Minecraft library concept that catalogs blocked journalism, including Vietnam-related titles. Food Supply Watch: Vietnam’s 5% broken rice was quoted at $420–$430/ton, with low domestic supplies but weak external demand.

Jewellery Manufacturing Push: Danish brand Pandora opened a $150m jewellery factory in Ho Chi Minh City, its biggest plant and first outside Thailand, aiming to lift capacity ~50% and create about 7,000 jobs. Power & Energy Investment: Doosan Enerbility won an 840 billion-won ($618m) EPC deal for the O Mon 3 gas combined-cycle plant in Vietnam (1,155MW), with construction to start soon and completion targeted for 2030. Fuel Tax Relief Extended: Vietnam extended zero preferential import tariffs and VAT/environmental tax relief for key petroleum products and aviation fuel through Dec 31, 2026 to stabilize supply and curb inflation. Market Watch: VN-Index fell 3.5% in September as selling pressure persisted, with PNJ among the hardest-hit large caps. Corporate Restructuring: PNJ filed for a private placement of up to 550m shares to raise capital as it pursues restructuring after recent setbacks. Innovation & Industry: Vietnam improved in the WIPO Global Innovation Index to 43rd, with gains in high-tech output and production/export complexity. Industrial FDI Momentum: Hung Yen reported strong industrial growth and rising Northeast Asian FDI, with manufacturing and processing leading the expansion. Policy & Compliance: Vietnam investigated 28 officials over alleged monitoring data fraud, with cases tied to multiple ministries and agencies. Aviation Infrastructure: Long Thanh airport will start charging passenger service fees from Oct 1 ahead of its planned Dec 1 commercial opening.

Maritime Security Contract: U.S. boatbuilder Metal Shark won a U.S. government deal to build 13 patrol boats for the Vietnam Coast Guard, building on earlier 45-boat deliveries and aiming to boost training, maintenance and interoperability. Trade & Logistics: China’s newly opened Pinglu Canal launched a Nanning–Can Tho container service to Vietnam’s Mekong Delta, initially twice monthly, with refrigerated capacity expected to be about a quarter. Retail & Licensing Rules: Vietnam’s Decree 342/2026/ND-CP (effective 18 Oct) updates trading and retail licences for foreign investors, shifting decisions to provinces and adding reporting and security consultation requirements. Energy Market Oversight: Vietnam’s Ministry of Industry and Trade is seeking feedback on a draft decree to reform the petroleum trading framework, targeting more transparency, fewer intermediary layers and stronger supply security. Industrial Policy for Retail: Vietnam approved an outlet development plan through 2030 (vision to 2045), including premium outlet villages and targets for Vietnamese goods to make up 30–40% of merchandise at pilots. Consumer Tech Demand: iPhone 18 Pro Max shortages hit Vietnam, with 256GB Burgundy Red and Ice Crystal deliveries expected mid-to-late October. Public Health & Workplace Safety: A U.S. report highlights the artificial-stone silicosis crisis, stressing worker exposure risks and the need for stronger prevention.

Industrial Parks & Logistics: At the Vietnam Industrial Property Forum 2026 in HCMC, developers and logistics leaders argued that next-generation industrial parks must be planned for decades, not just today—built for circular economy, decarbonisation (like EV charging), and adaptable infrastructure that can serve new tenant industries as supply chains shift. Rare Earths for Defense Supply Chains: LS Eco Energy plans to build a samarium metal plant in HCMC (240 tons/year) to support SmCo magnet production, aiming to reduce reliance on China as US rules tighten from Jan 2027. EV & SME Finance: Finnfund approved a $15m loan to Vietnam’s EVF General Finance to back women-led and green-focused SMEs, boosting access to capital. Innovation Policy: Vietnam moved up to 43rd in WIPO’s 2026 Global Innovation Index, with gains tied to higher R&D and digital transformation investment. Trade & Partnerships: Vietnam-Canada relations were upgraded to a Strategic Partnership, with cooperation framed around Indo-Pacific engagement and expanded economic ties. Industrial Real Estate Demand: Forum speakers said global investment is restructuring, pushing demand for ready-built facilities and faster time-to-operation, especially in electronics and advanced manufacturing.

Construction & Data Centers: Malaysia’s Gamuda reported FY2026 net profit up 5% to RM1.052bn and revenue up 14% to RM18.6bn, with construction order book hitting RM61bn; data centers are cited as a key driver, while property sales conversion in Malaysia townships weighed on the division. AI in Retail & Finance: Vinasoy cut out-of-stock rates by 20% in two months using generative AI on AWS for automated retail monitoring, while TCBS rolled out Amazon’s Kiro agentic coding environment across its engineering and broader teams to speed product delivery. Energy Tech Launch: Solaryaan launched its AIO Series (hybrid inverter + lithium battery storage) in Da Nang, onboarding 100+ channel partners to push integrated solar-plus-storage demand. Vietnam–Europe Connectivity: Hanoi and Frankfurt discussed deeper cooperation in digital transformation, sustainable tech, trade and finance, highlighting Frankfurt as a logistics and financial gateway for Vietnamese firms. Trade & Industry Links: UPITS-2026 in India wrapped with 4,400 MoUs worth ~₹6,500 crore and estimated business enquiries of ~₹15,500 crore, with Vietnam among partner countries. Maritime/Defense Watch: Russia’s Almaz-Antey plans to present the export version of the Garpiya-A1 E loitering drone at Vietnam Defense Show and Airshow China.

Hanoi Investment Push: Hanoi is shifting from broad promotion to targeted investment, aiming to attract 10 multinational firms to set up executive offices, R&D and innovation centres in 2026-2030, with MoUs already signed and an implementation plan issued. Property Meets Manufacturing Demand: Vietnam’s rising FDI is still pulling real-estate capital, but processing and manufacturing are driving the biggest demand for industrial parks, factories, logistics and worker housing. Maritime Economy Blueprint: UNDP says Vietnam should turn its sea into a blue, green and low-carbon growth engine—leveraging offshore wind (1,000GW potential), green hydrogen, blue shipping and climate-resilient infrastructure while protecting coastal livelihoods. Satellite + Quality Testing: Amazon Kuiper Vietnam received a licence to set up a private satellite telecom network to test customer terminals and support high-tech manufacturing and supply-chain cooperation. AI in Aviation Sandbox: EHang expands its Global Fast Track Program to Hanoi for low-altitude eVTOL sandbox testing with a local partner and Hanoi DOST. Manufacturing Momentum: Vietnam’s August PMI points to improving output and new orders, with easing input costs and continued optimism for 2026. Agro Exports Target: Agriculture aims for $18bn in Q4 agro-forestry-fishery exports, tightening standards, traceability and vessel management to address EU IUU concerns. Semiconductor Supply Chain: Samsung Electro-Mechanics plans a major $5bn+ expansion of AI chip substrate production across South Korea and Vietnam, backed by global customer volume commitments. Digital Banking Upgrade: MSB launched unified retail and enterprise apps on one platform and expanded cross-border transfers to 20 currencies via Wise. Craft Villages for Tourism: Vietnam’s craft villages are being positioned for tourism beyond shopping—focused on hands-on experiences that keep artisans and residents benefiting.

Mekong Delta Industrial Upgrade: Can Tho approved a 200-hectare high-tech park in O Mon ward (over VND5 trillion) to build research, incubation and advanced manufacturing capacity for the region’s farm-and-aquaculture base. Power Sector Reform: Vietnam’s National Assembly discussed draft Electricity Law amendments, pushing for more transparent power pricing, tighter cost control, fairer risk sharing and stronger consumer protection. Tech & Innovation Push: PM Le Minh Hung urged ministries to keep advancing science, technology and digital transformation, including a pilot mechanism for “first orders” of strategic tech products and faster commercialization of research. Tourism & Hospitality Demand: Asia-Pacific hotel investment accelerated in 1H2026; CBRE highlights Vietnam’s strong pricing and occupancy gains, alongside South Korea. Trade & Supply Chains: Vietnam–Canada relations were elevated to a Strategic Partnership, with Canadian media framing it as a chance to diversify cooperation and supply chains. Agri-Exports: Vietnam’s agro-forestry-fishery exports rose 7.8% in the first nine months, while durian traceability efforts aim to secure future export growth. Circular Economy Links: Vietnam’s NA vice chairman met Norway’s DNV and TOMRA, seeking cooperation on shipping, offshore wind, energy infrastructure and waste sorting/recycling.

Data Centres & Power Constraints: Vietnam’s data-centre boom is hitting a reality check as electricity-tariff disputes and site economics stall projects, including a cancelled 60MW plan in HCMC and tariff hikes that pushed power costs up 50%+ for major operators. ASEAN–China Trade Links: China’s Pinglu Canal is set to cut transport costs and speed routes for Vietnamese exporters, but analysts warn it could also worsen China–ASEAN import imbalances. AI & Work Pressure: A Vietnam workplace survey finds over 40% of employees frequently stressed and many struggling to switch off after hours, with AI speeding tasks but potentially raising pressure if productivity expectations keep climbing. SME AI Adoption: Separate research says Vietnamese SMEs are already widely using AI (about 96%), with demand for better staff training and more relevant, personalised messaging via AI agents. Halal Market Push: Vietnam is aiming to scale Halal exports beyond raw farm goods, but faces gaps in certification, deep processing and supply-chain readiness. Consumer & Retail Shock: PNJ forecasts a 2026 loss after a diamond-smuggling scandal, cutting revenue targets and setting aside large buyback provisions. Industry Leadership & Policy: Vietnam and Canada move forward on a Strategic Partnership with finance cooperation, while Vietnam’s local administration reform highlights bottlenecks in personnel, data and coordination.

Textile & Garment Tech: HanoiTex–HanoiFabric 2026 (Oct 21–23) will spotlight automation, digital transformation and green production for Vietnam’s textile and garment value chain, from machinery and fabrics to quality control and fashion products. Real Estate Finance: Vinhomes plans to raise up to VNĐ8 trillion (US$308m) via a private secured bond issuance to fund investment projects. Rural Industry Upgrade: Ha Tinh is pushing rural industrial development through digital transformation and sustainable production, aiming to lift productivity and move farm/forestry-linked processing up the value ladder. Transport & Connectivity: Deputy PM Pham Gia Tuc urged faster completion of two northern expressway projects to connect before Tet 2027, with a push for smart border-gate pilots on dedicated freight routes. APEC Infrastructure Push: An Giang is accelerating 21 Phu Quoc island projects ahead of APEC 2027, including airport expansion and conference complex works. Vietnam–Tanzania Trade: The Vietnam–Tanzania Joint Commission meeting in Tanzania agreed priority areas to turn cooperation into concrete projects, especially in agriculture, processing, transport and digital transformation. Food Safety Watch: Singapore Food Agency is investigating alleged illegal Vietnamese dog meat sales, warning that unapproved imports pose food safety risks.

Investment Law Overhaul: Vietnam’s Ministry of Finance has released draft amendments to the 2025 Investment Law to speed up foreign investment by easing market access conditions, expanding special investment procedures, and removing legal hurdles for projects using state-assigned sea areas. Offshore Wind Bottlenecks: Industry insiders say Vietnam needs a clearer, consistent offshore wind policy framework—spanning electricity pricing and power purchase rules—to unlock long-term capital for projects despite large offshore potential. Logistics Cost Push: Vietnam is moving to cut logistics costs and tackle bottlenecks to strengthen export competitiveness, with Hanoi also setting up mechanisms to improve carbon market operations. Vietnam–Canada Upgrade: Party General Secretary and President To Lam’s UN, US and Canada trip culminated in Vietnam–Canada ties being upgraded to a Strategic Partnership, with new focus on trade, finance, supply chains, digital/AI, energy, food security and people-to-people links. Aviation Connectivity: Russia and Vietnam agreed to expand flight quotas to 105 weekly flights, expected to boost competition and widen routes beyond Hanoi and HCMC. Trade Promotion: Vietnam is pitching manufacturing and investment opportunities at India’s UPITS trade show as a partner nation, aiming to deepen sourcing and partnerships. Crypto Fraud Case: US prosecutors charged a Vietnamese national over alleged “pig butchering” crypto fraud, citing about $53.3m moved through linked wallets.

Vietnam-Canada Business Push: General Secretary and President To Lam attended a Vietnam–Canada business roundtable, with both sides stressing deeper value-chain linkages and more concrete investment outcomes across finance, energy, infrastructure, transport and high tech. SME Credit Drive: The State Bank of Vietnam said credit packages for SMEs are expanding, with 19 commercial banks registering about VND407,000 billion and preferential rates 1–2% below average, as SMEs still struggle with access to capital. Da Nang Sustainable Finance: Da Nang’s Vietnam International Financial Centre joined the UNDP-coordinated FC4S network, aiming to attract long-term sustainable capital for green transition, circular economy and climate-resilient urban development. Logistics Cost Focus: Vietnam is pushing to lower logistics costs to boost competitiveness, while regional connectivity improves. Trade Route Upgrade: A first direct river-sea container route linked China’s Nanning to Vietnam’s Can Tho via the Pinglu Canal, cutting inland travel by 560+ km and lowering freight costs. AI at Work: A survey presented at an AI productivity event found Vietnamese workers adopting AI faster than employers can manage it.

Vietnam-Canada Strategic Partnership: Vietnam and Canada adopted an Action Plan in Ottawa to turn their Strategic Partnership into concrete programmes across trade, investment, science-tech, digital transformation, healthcare, education, energy security, transport and supply chains, with regular updates agreed. ASEAN Auto Demand: PwC data shows ASEAN-6 vehicle sales up 11.1% in H1 2026; Vietnam unexpectedly led growth, rising 31.1% to about 291,000 units and overtaking Singapore. Trade & Investment Diplomacy: Vietnam’s top leader To Lam joined a Vietnam-Canada business dialogue in Ottawa, urging deeper corporate cooperation; separately, he urged Vietnamese experts in Canada to contribute to Vietnam’s AI, semiconductors, cybersecurity and other strategic tech. Logistics & Shipping Links: A direct container shipping route launched between Nanning and Can Tho, adding another supply-chain link for Vietnam’s trade. Carbon Market Setup: Hanoi set up an inter-agency mechanism to operate the carbon market. Coastal Livelihood Tourism: In central Vietnam, community-led tourism is turning fish markets and local food into visitor attractions, giving fishermen and homestays a direct new revenue outlet.

Vietnam-Canada Strategic Partnership: Vietnam and Canada upgraded ties to a strategic partnership during President Tô Lâm’s Ottawa visit, with cooperation flagged across energy, clean energy, agriculture, defense and people-to-people links. Maritime & Ports: Damen’s Vietnamese partner yard 189 Shipyard launched a TSHD 1000 trailing suction hopper dredge for New Zealand’s Port Otago and Napier Port, supporting long-term harbor maintenance. Offshore Wind Pipeline: Pacifico Energy secured a sea survey licence for the up to 1.3GW Nam Trung Bo 3 offshore wind project in Lam Dong, targeting commercial operations in 2031–2035. Industrial Trade & Compliance: Reuters reports three Vietnamese garment makers tied to sanctioned Chinese cotton group Esquel exported at least $5m to the US since the 2024 blacklist, raising scrutiny under forced-labor rules. Logistics & Exports: Hacis (HKIA) completed a trial road-air corridor moving Hanoi coffee via China’s Wuzhou bonded zone, aiming to capture more Vietnamese export traffic. Energy Transition Policy: Asean governments accelerated renewable and electrification measures after the Iran-war energy shock, with Vietnam among the six countries rolling out long-term solar-focused policies. EV & Manufacturing Demand: Vietnam’s EV market continues to surge, while VSIP Lang Son advanced industrial expansion with an office opening and a new glove factory groundbreaking.