Economy

On the afternoon of May 15, in Jeju, Republic of Korea (RoK), Minister of Industry and Trade (MoIT) Nguyen Hong Dien, Head of the Vietnamese delegation, attended and delivered speeches at both sessions of the APEC Ministers Responsible for Trade Meeting (MRT).

Prime Minister Pham Minh Chinh on May 14 called on China Huadian Engineering Co., Ltd to expand its contribution to Vietnam’s energy security, encouraging flexible and innovative application of the group’s technological capabilities within the local context.

Vietnam was re-elected as Chair of the World Customs Organization (WCO) Permanent Technical Committee (PTC) for the 2025–2026 term at its recent 247th/248th sessions in Brussels, Belgium.

Ho Chi Minh City - Vietnam’s largest economic engine is witnessing a powerful resurgence in its private sector, which is increasingly seen as a key pillar driving the city’s economic growth.

As the impacts of climate change and environmental pollution worsen, the Vietnamese Government is ramping up support for green transport, particularly electric vehicles (EVs). However, the rapid growth in EV adoption is outpacing the development of charging infrastructure.

Vietnam is preparing to develop three FTZs in Hai Phong, Da Nang, and Ba Ria – Vung Tau, with plans to expand to other localities with strong air and rail connectivity, beyond just those with seaports

The PM highlighted the important role played by SOEs in the national economy, noting that although the number of groups and corporations represents only a small percentage of the nearly 1 million businesses operating in Vietnam, they hold a key position as a significant material force of the economy, and production and business activities in main economic and technical sectors.

The Government negotiating team on trade issues with the US is headed by Minister of Industry and Trade Nguyen Hong Dien.

The labour force aged 15 and above reached 52.9 million people in Quarter 1, showing a decrease of 230,700 people compared to the previous quarter but an increase of 532,000 people year-over-year.

Vietnam’s forestry industry is setting its sights on reaching an ambitious export target of USD 18 billion in 2025.

In recent years, the number of Vietnamese enterprises engaging in online exports has climbed sharply, mirroring the country’s fast-paced digital transformation.

As part of its ongoing efforts to maintain economic stability, Ho Chi Minh City is ramping up public investment, stimulating private sector activity, and working to unblock delayed projects—all while keeping a close eye on international markets.

Vietnam’s fisheries sector has achieved several positive outcomes in the early months of the year. Despite facing unpredictable market fluctuations, the industry remains optimistic about new export opportunities thanks to ongoing efforts to innovate production methods towards greener practices, focus on product value, and ensure quality and food safety.

Deputy PM Ho Duc Phoc lauded the sides’ agreement to kick off negotiations on a reciprocal trade deal. He confirmed Vietnam’s readiness to engage in talks and urged both parties to accelerate discussions to reach an agreement at the earliest opportunity, contributing to stable and sustainable bilateral economic and trade ties that benefit their businesses and people.

The National Steering Committee 389 Office urged competent agencies to strengthen patrol and inspection activities to detect, prevent, and severely penalise attempts to transport falsely-labelled Vietnamese products across borders, seaports, and international airports.

Vietnam is the world's third-largest textile and garment exporter, with an export value reaching 44 billion USD in 2024, while India is a leading supplier of raw materials, particularly cotton and cotton yarn.

In order to draw more FDI, experts underlined the need for Vietnam to take comprehensive measures, including stronger reforms in all fields.

In times of limited monetary policy, public investment will be a crucial driver of Vietnam’s economic growth in 2025, according to a representative from the Asian Development Bank (ADB).

A leader of the Vietnam Leather, Footwear and Handbag Association (Lefaso) highlighted that a 46% tariff would severely affect an industry employing over 1.2 million workers, 90% of whom are women.

In 2024, Vietnam’s seafood exports exceeded 10 billion USD, with key buyers including China, the US, Japan, the EU, and the Republic Korea. The momentum continued in the first quarter of 2025, with a value of 2.29 billion USD, rising 18.1% year-on-year

If the US implements the announced 46% reciprocal tariff, Vietnamese textile and garment products would face average duties between 61-62% when entering the market, given the current 15-16%.

Vietnam aims to improve the quality and value of export rice by reducing the proportion of low and medium-grade white rice while increasing the share of aromatic, Japonica, and specialty rice varieties.

According to experts, to minimise exchange rate risks, the SBV should manage the rate flexibly, but not fix or anchor it because Vietnam's economy is deeply integrating towards it becoming a market economy, which requires flexibility.

Hoai said the US's proposed reciprocal tariff of 46% on imports from Vietnam can have significant and multifaceted impacts on the Southeast Asian country’s exports and economic growth in the near future.

Prime Minister Pham Minh Chinh emphasised that Vietnam will not change its target of achieving economic growth of 8% or higher this year, while simultaneously maintaining macroeconomic stability, ensuring social welfare, and improving people's livelihoods.

Currently, the agreement covers a market of approximately 2.3 billion people, representing around 30% of the global population and GDP. Notably, five of its 15 members are members of the G20.

The 2024 PAR Index achieved its highest average value to date – at 88.37%, up 1.39% from 2023, with all the 63 provinces and centrally-run cities scoring above 80%.

Vietnam is emerging as an attractive destination for investors in science and technology, especially semiconductors, largely due to high-quality human resources at competitive cost, upgraded infrastructure, increasingly open and transparent policies, and high political determination of Party and State leaders.

The railway will be newly constructed with the goal of connecting to the Hai Phong international seaport and facilitating multimodal transport with China, says Nguyen Khanh Tung, Deputy Director of the Railway Project Management Board under the Ministry of Construction.

While AmCham acknowledges the need to address the growing trade deficit between the two nations, it strongly urges the US administration to consider implementing a grace period.