AGP Executive Report

Maritime Strategy: Vietnam issued an action programme to become a strong maritime nation by 2030, with a vision to 2045, prioritising modernising the marine economy, upgrading infrastructure, and pushing green and smart marine industries. Manufacturing Supply Chains: More Dutch firms are seeking Vietnamese suppliers in precision engineering, semiconductors and advanced manufacturing as global companies diversify sourcing; the Việt Nam–Netherlands workshop highlighted the need to connect local capabilities to international supplier networks. Halal Economy Push: Khánh Hòa is positioning itself as Việt Nam’s emerging halal hub, building a halal ecosystem around tourism, seafood and agriculture, and aiming to attract partners and projects across logistics, manufacturing and processing. Trade Promotion: Vietnam will return as Partner Country at UPITS 2026 in India (Sept. 25–29), targeting deals in agriculture, processed food, seafood, apparel, furniture, logistics, renewable energy and manufacturing. ASEAN Focus: Vietnam reaffirmed its role in shaping ASEAN’s future as the bloc marks its 59th anniversary and moves into ASEAN Community Vision 2045 implementation. HCMC Logistics Drive: Ho Chi Minh City is leaning into seaport strengths and regional connectivity to grow logistics and the marine economy.

Vietnam Trade & Industry Policy: Vietnam’s Ministry of Industry and Trade will launch the FTA Index 2025 in Hanoi on Aug. 18, using nationwide province-by-province data to track how 17 signed FTAs are being implemented and what it means for businesses and investors. Agri-Input & Crop Protection: Syngenta Vietnam is rolling out Vaniva 450SC, a dual-action root-protection solution targeting both nematodes and Fusarium for high-value crops like durian, banana, coffee and citrus. Manufacturing & Supply Chains: India’s metal intermediates exports are rising on electrification demand, with aluminium alloy and insulated copper winding wire shipments growing fast, including to Vietnam. Aviation & Logistics Demand: OAG data shows Vietnam gaining flight capacity momentum in Southeast Asia, overtaking Thailand for the second straight month as regional airlines cut seats amid disruption. Food & Consumer Safety: Rohto-Mentholatum (Vietnam) faces a nationwide eye-drop recall in the US after it said sterility “cannot be assured,” pulling about 12 million bottles.

Vietnam Policy & Trade: Vietnam’s new E-Commerce Law (effective July 1, 2026) sets a clearer framework for foreign platforms and cross-border sellers, using market participation and targeting criteria to define when a foreign platform is “operating in Vietnam.” Land & Construction: A draft Land Law revision would strengthen resettlement safeguards (housing and livelihoods “equal to or better”), while pushing more land-recovery powers to local authorities and adding a mechanism to speed site clearance for key projects. Energy & Industry Projects: Ha Tinh approved four wind power projects totaling 225MW and 7.81 trillion VND, aiming to feed a provincial energy hub; Damen also began building offshore wind support vessels in Ha Long, with delivery planned for early 2027. FDI & Digital Growth: Vietnam is drawing hyperscalers and AI players as it advances digital transformation and governance reforms, while a separate push targets higher-quality FDI under Resolution 10. Business Moves: MISUMI is investing $31m to expand manufacturing capacity in Vietnam, and HeartCore agreed to transfer 51% of its Vietnam software JV to its partner.

High-Speed Rail Strategy: Vietnam’s proposed north–south high-speed railway is framed as a long-term national development bet, but the key test is disciplined funding and delivery foundations, not just ambition. Green Finance for Industry: Nam A Bank signed green capital funding at the Vietnam Green Finance Summit 2026, aiming to standardize ESG criteria and unlock more bankable green projects for Vietnam’s businesses. APEC 2027 Delivery Push: Vietnam’s National Assembly will debate special mechanisms to remove bottlenecks for projects in Phu Quoc Special Zone tied to APEC Economic Leaders’ Week 2027. Cybersecurity Coordination: The Prime Minister ordered stronger unified nationwide leadership for cybersecurity response, boosting coordination across ministries, localities, and businesses. Pharma Leadership Change: Sandoz appointed Vo Thi Thuy Ha as Vietnam country head from Sept 3, focusing on sustainable growth and wider access to affordable medicines. Battery Supply Chain Signal: POSCO Future M moved deeper into LFP cathode materials with a 190,000-ton supply deal spanning 2026–2032, reflecting growing energy storage demand. US Tariff Shock to Solar Inputs: A US 15% tariff on imported polysilicon derivatives and minimum import prices are set to raise costs across the solar and battery value chain, with knock-on effects for regional suppliers. Vietnam Creative Services: Moonfolks launched operations in Vietnam (HCMC), led by Livio Grossi, signaling continued growth in local marketing and creative capacity. Food Packaging Manufacturing: Go-Pak highlighted its Vietnam-based manufacturing scale and automation push for food packaging, with major UK and US demand.

Bioethanol & Feed Sourcing: Vietnam’s ethanol blending push is reshaping corn and wheat flows, with corn output pressured by farmers shifting to higher-value crops and feed millers substituting cheaper imported wheat as corn imports rise. Renewables Buildout: Envision Energy and REE Energy secured Vietnam’s largest nearshore wind project at 200 MW, with turbine deliveries starting Q2 2027 and grid connection targeted for Oct 2027. Battery Supply Chain: POSCO Future M won a long-term deal to supply over 190,000 tons of LFP cathode materials to a major Korean battery maker from 2027-2032, aiming to ride surging North American ESS demand. Industrial Real Estate: LYSAGHT and KIZUNA formed a strategic serviced-factory partnership, highlighting LEED Gold-ready industrial space in Tay Ninh designed to attract international manufacturers. Payments & Fintech Rails: NAPAS, BIDV and Weixin Pay expanded cross-border QR payments between Vietnam and China, while Qubic partnered with AEON Pay to enable token settlement across Vietnam-linked QR rails. Food & Safety: Vietnam-linked food safety training research points to fewer inspection violations and outbreaks when managers are certified and staff follow proper procedures. Trade Remedies Watch: Malaysia initiated an expiry review of anti-dumping duties on coated steel coils from China and Vietnam, with submissions due Aug 17.

Smart Cities & Urban Infrastructure: Vinhomes Green Paradise – Can Gio received the World Council on City Data’s interim ISO 37122 smart city certification, signaling progress toward full certification for Vietnam’s greenfield mega-urban development. Construction & Transport Modernisation: Vietnam’s Ministry of Construction and the ADB signed an MoU on sustainable urban development, housing, infrastructure and transport, aligned with net-zero by 2050. Healthcare Industry Expansion: Canon Medical Systems Asia opened a Hanoi customer support and business operations hub to strengthen diagnostic imaging support across northern Vietnam. Digital Governance: Vietnam outlined July priorities for digital transformation and administrative reform, with targets for the digital technology industry through 2030. AI for Enterprises: FPT was named an OpenAI Select Partner, aiming to help organizations deploy and scale AI solutions. Aviation & Logistics Capacity: Da Nang approved expansion of Da Nang International Airport Terminal 1 to handle overloaded passenger demand and position the airport as a smart logistics hub. Demographics & Services: Vietnam’s ageing trend is pushing policymakers to plan earlier for a “silver economy,” not just traditional elderly care.

Vietnam–Singapore/ASEAN Diplomacy: Party official Tran Cam Tu met Singapore’s ambassador in Hanoi, reaffirming Vietnam’s push to deepen the Comprehensive Strategic Partnership via party-to-party dialogue and cooperation in science and tech. Vietnam–Malaysia Defence & Trade: Malaysia’s defence minister met PM Le Minh Hung on expanding maritime security, capability development, cyber and AI cooperation; Vietnam–Malaysia ties were also highlighted as trade hit $10.8bn in H1 2026 (+40% y/y). Vietnam Industry & Trade Policy: EU consults on steel regulation scope, raising compliance questions for Vietnamese exporters; Vietnam also moves to facilitate corporate bond fundraising and draft customs law requiring e-ID for cross-border e-commerce. Energy & Infrastructure: Vietnam reviews biofuel capacity to support E10 rollout; construction begins on a 450MW solar plant in Tay Ninh. Agriculture & Exports: Vietnam’s aquatic exports topped $6.78bn in first 7 months of 2026; fishery exports keep momentum despite headwinds. Regional Business Costs: A Singapore SCCCI survey found 80% of firms cite rising costs as the top worry amid global uncertainty.

EV Policy Push: The Philippines approved its long-awaited Electric Vehicle Incentive Strategy (Evis) with a P60 billion package to lure EV makers into local production, aiming to build supply chains and support energy security. FDI Competition: Vietnam’s Ministry of Finance outlined a four-pillar reform plan to attract higher-quality FDI, shifting from tax breaks toward infrastructure, workforce, R&D and faster approvals for hi-tech, semiconductors, energy and data centres. Steel Trade Pressure: The EU launched a targeted consultation under its new Steel Regulation, tightening quotas, tariffs and adding “melt and pour” traceability—raising fresh compliance risk for Vietnamese steel exporters. Medical Device Cost Squeeze: India’s anti-dumping probe into dialyser imports highlights worries that low-priced medical device inflows via Asean routes are undercutting local manufacturers. Industrial Momentum: Vietnam’s manufacturing PMI rose to 52.9 in July, with output and new orders expanding and hiring picking up. Energy Security Finance: Petrovietnam proposed restoring an exploration risk fund to fund surveys and drilling as mature fields decline. Trade Promotion: Zhejiang Export Fair returns to Vietnam for its 14th edition in HCMC, running Aug 13-15. Disaster Watch: Northern Vietnam floods and severe weather (July 31–Aug 2) killed three children and injured one, with landslides disrupting roads and damaging rice fields.

Disaster Response: Northern Vietnam’s July 31–Aug 2 floods and severe weather left three children dead and one injured, with landslides blocking roads, rice fields damaged, and authorities running round-the-clock monitoring to restore production and daily life. Manufacturing Pulse: Vietnam’s manufacturing PMI rose to 52.9 in July, signaling a solid monthly improvement as output, new orders, exports and purchasing strengthened, inflation pressures eased, and supply-chain delays became less pronounced. Energy Policy: Lawmakers discussed a draft revised Petroleum Law, aiming to shift Vietnam’s oil and gas policy from investment incentives toward global competitiveness, with changes to taxes, cost recovery and clearer roles for Petrovietnam. Trade & Investment Signals: Vietnam’s push to attract capital is being framed around institutional quality and faster problem-solving capacity, while lawmakers also discussed broader development model reforms. Industrial Logistics: DSV highlighted how sustainability is reshaping supply chains—decarbonised transport, circular economy services, and transparent carbon reporting—pressuring logistics providers operating in Vietnam. Defense Procurement: Vietnam is set to buy 18 Yak-130M light attack aircraft from Russia, expanding its Yakovlev fleet and adding radar, targeting and missile upgrades.

Vietnam Growth Momentum: Vietnam’s economy stayed on track in the first seven months, with CPI easing and FDI registering a sharp 58% jump in registered inflows, while officials still warn the double-digit GDP target will be tough without stronger second-half drivers. Policy Push for New Drivers: The Politburo’s Resolution 57-NQ/TW puts science, technology, innovation and digital transformation at the center of growth, aiming to break bottlenecks as traditional engines near their limits. SME Credit Boost: The State Bank is finalising an ~8.4bn USD preferential loan package (220 trillion VND) for SMEs in priority sectors, with state banks set to lead low-interest lending. Trade & Industry Signals: Vietnam’s registered FDI surged 58% to about 38bn USD in seven months, while manufacturing recovery and construction demand remain key themes. Rice Import Pressure: Farmers’ groups are pushing for an extra 30% safeguard duty on imported rice, arguing imports are squeezing local producers’ incomes. Energy & Infrastructure: Envision Energy secured a 200MW nearshore wind project in Vietnam, adding to the country’s broader push to scale cleaner power and industrial capacity. FDI & Industrial Ecosystem: Ho Chi Minh City is gearing up for next-wave FDI inflows and industrial expansion, including efforts to strengthen its industrial ecosystem. Export Promotion: KOTRA is rolling out an online Southeast Asia export support program for Korean firms, using webinars, B2B consultations and AI trade support. Regional Tech Education: China-ASEAN education cooperation is leaning into AI training, with participants describing AI skills as a new driver of cross-border learning. Hanoi Culture as Industry Fuel: A long read highlights how Hanoi’s 100-year master plan treats culture as a core development engine, not just heritage preservation.

Business Formation & Closures: Vietnam saw record capital inflows alongside a sharp rise in business closures, with new enterprises up 16.9% in Jan–Jul and registered capital up 63.6%—while dissolutions surged 118.7%, pointing to a tougher market shakeout. Manufacturing Momentum: July PMI for Vietnam manufacturing rose to 52.9, with faster output, new orders and export orders, and easing cost pressure as supply chains improved. Trade Boost: Vietnam’s Jan–Jul import-export turnover hit $659bn (+28%), with exports up 21.9% and imports up 34.5%, supported by machinery and production inputs. Construction Demand: Cement producers reported stronger H1 results as infrastructure and construction demand held firm. Energy & Industry Decarbonisation: LOF International Dairy started a 2.5MWp rooftop solar phase in Binh Duong, targeting major annual clean power and CO2 cuts. Nuclear Workforce Planning: EVN estimates Ninh Thuan 1 will need over 2,000 personnel, with commissioning planned between 2030–2035. Aviation Disruption: Bamboo Airways has suspended ticket sales as its fleet shrank to three planes, with operations shifting to limited charters. Public Health Rollout Gap: Vietnam screened 32.28m people under its free annual checkup, but a huge doctor shortage gap leaves provinces far behind. Climate & Disasters: Northern Vietnam floods and severe weather (July 31–Aug 2) killed three children, injured one, and damaged rice fields. Regional Factory Pulse: ASEAN manufacturing PMI improved to 52.8 in July, with faster new orders and output—useful for Vietnam’s sourcing outlook.

Trade & Industry Pulse: Vietnam’s July trade deficit widened to $3.59 billion as exports rose to $53b but imports jumped to $56.67b, with fuel costs a key driver; for Jan–Jul, the deficit hit $20.5b and the import bill surged amid rising inflation and ongoing U.S. scrutiny. Supply Chains & Logistics: UPS is pushing to shift some Hong Kong cargo frequencies to Clark to launch year-round services, signaling how carriers are reshuffling routes to secure capacity. EV & Energy Transition: The IEA says global EV sales are set to reach 23m in 2026 and account for 29% of new car sales, with oil-price volatility and fuel security boosting demand—Vietnam is cited as a fast-moving market in the region. Digital Government: Vietnam is accelerating digital government and tech growth with targets through 2030, linking digital transformation to faster, more transparent public services. Smart Cities: Bac Ninh aims for a top-50 smart city ranking by 2030, building data-driven governance and an integrated operations center. Consumer & Compliance: Multilingual videos were launched to explain liquor licensing rules, including Vietnamese. Local Market Shock: A major diamond smuggling ring has disrupted Vietnam’s jewelry trade, with authorities alleging thousands of stones were re-certified after removing original markings. Governance & Culture: A renewed crackdown on writers over historical narratives is raising fresh concerns about censorship and professional punishment.

HCM City Energy Push: Ho Chi Minh City is drafting a plan for a multi-pole national energy and industrial hub, aiming to secure power for major high-tech investors and accelerate its green transition, with peak capacity pressure rising as large projects seek up to 2,000MW. Airport Construction: Long Thanh International Airport is speeding up passenger terminal works toward trial operations from September, with major civil works nearing completion and key baggage handling and screening systems progressing. Trade Momentum: Vietnam’s economy keeps leaning on trade, with import-export turnover estimated at $659bn in the first seven months (+28% YoY), exports up 21.9% and industrial production supporting growth. Local Disruption From Redevelopment: Hanoi’s rapid land clearance for nearly 1,500 projects is reshaping neighborhoods and livelihoods, raising concerns over compensation and social impact as the city modernizes. Energy Finance for Renewables: A $50m senior secured financing deal backs Ukko Renewable’s pipeline across Vietnam and Southeast Asia, targeting early-stage development gaps for wind, solar and hydro. Distributed Renewables Debate (Bangladesh): Bangladesh is urged to prioritize rooftop solar and battery storage to cut fuel imports and improve energy security.

Private Finance & Compliance: A leaked Worldclear podcast episode describes a money-transfer firm’s global clientele, including a customer wanted by the FBI who fled to Vietnam, while the firm denies knowingly facilitating crimes. SME Policy Push: Vietnam targets 2 million active enterprises by 2030, but analysts warn growth must speed up and improve resilience as most firms are tiny, low-profit, and constrained by finance, markets, and weak innovation. Retail Expansion in the North: Lotte Mart opened its 17th Vietnam store in Bac Giang, signaling a push beyond Hanoi into fast-growing industrial cities with daily-life grocery formats. Consumer Safety Recall: Vietnam-based Rohto-Mentholatum recalls nearly 12 million cartons of Rohto Cooling Eye Drops in the US over sterility assurance concerns. FX Outlook: HSBC says Vietnam’s FX pressures should persist but stay manageable in H2 as imports of machinery and inputs rise faster than exports, thinning the FX buffer. Industrial Reform Debate: Manufacturers argue Nigeria’s textile sector needs structural reforms (power, cotton quality, smuggling, financing, machinery) rather than repeated bailouts. Regional Trade & Logistics: Vietnam and partners are urged to clear bottlenecks to boost agro-forestry-fishery exports, while Vietnam’s logistics fair and digital trade promotion efforts continue to support supply chains.

Advanced Materials Push: Việt Nam is drafting a national strategy to build an advanced materials industry through 2030, with a longer-term vision to 2045, aiming to shift from raw-resource advantage to technology-led, high-value manufacturing that can feed semiconductors, batteries, AI, renewables and defense. Precision Manufacturing Tech: Blum-Novotest unveiled the LC54-DIGILOG compact laser measuring system for micro-machining, targeting tool measurement and monitoring from 5 µm to 16 mm with fast multi-value output and high repeat accuracy. Vietnam–Global Finance Integration: Dutch partners say they’re ready to support Vietnam’s integration into international financial markets, boosting market management capacity and modernising infrastructure, as Deputy PM Nguyen Van Thang met Euronext Amsterdam and the Dutch financial regulator. Diplomacy & Trade: Vietnam’s 33rd Diplomatic Conference opened in Hanoi, with industry and trade diplomacy highlighted alongside the push for breakthrough solutions across sectors. E-commerce & Logistics Talent: A Vietnam-focused AI warehouse drone concept is set for regional finals in Singapore, reflecting growing interest in automation for Vietnam’s e-commerce and logistics growth. Food Safety Recall: Rohto Cooling Eye Drops are recalled in the US over sterility assurance concerns, affecting nearly 12 million cartons.

Agro-exports push: Vietnam urged to clear logistics bottlenecks to lift agro-forestry-fishery exports beyond $74bn, with July output at about $42.6bn and 57.6% of the annual target. E-commerce compliance: A new e-commerce law is tightening rules for platforms, merchants and livestream/KOL sellers, shifting focus toward transparency and verified product information. Air travel demand: Vietnam Airlines reported 28% H1 revenue growth to VNĐ75.3tn, driven by international routes. Digital consumer finance: Kredivo and Dien May Xanh expanded BNPL and cash-loan financing across more retail channels, aiming for triple-digit GMV growth in 2026. Banking momentum: SHB posted VNĐ9.09tn pre-tax profit (51% of target) and HDBank hit VNĐ13.2tn pre-tax profit (+31%), both leaning on digital and fee income. Health recall risk: Rohto “Cooling” eye drops (about 12m bottles) were recalled nationwide over sterility concerns. Semiconductor ecosystem: A France-based Huawei expert says Vietnam should move from chip strategy to execution, with stronger links across industry, academia and research.