AGP Executive Report

Vietnam Private Sector Momentum: Vietnam’s private economic sector is showing “stable beginnings, powerful breakthroughs,” underscoring a push to keep growth momentum. Strategic Tech Push: Vietnam is accelerating “strategic technologies” with stronger policy rollout and wider participation from VAST, business and researchers, aiming to build internationally recognised capacity. Energy & Industry Deals: Foxconn and Brookfield struck a renewable and battery storage partnership in Vietnam targeting up to 1GW under a long-term PPA, while MiCo’s Hyundai Heavy Industries Power Systems agreed to buy NEM Energy (100% stake) to strengthen HRSG and power equipment capabilities. Trade & Customs: Vietnam’s customs revenue from foreign trade hit VND 215.14 trillion in Jan–May (47.7% of target), with exports up 19.5% and imports up 30.8% year-on-year. Finance & Policy: Vietnam is moving on a cashless push (targeting cashless value at 30x GDP by 2030) and is also working on longer-term capital for development via pension fund expansion and infrastructure/green transition financing. M&A Watch: SEA M&A remains concentrated, with Singapore dominating disclosed value while Vietnam’s disclosed transaction value is far smaller. ASEAN Connectivity: ASEAN diplomats visited Bangladesh’s BSEZ with Vietnam among participants, reflecting continued regional interest in investment and industrial cooperation.

ASEAN & Diplomacy: Cambodia’s PM and Thailand’s PM visits, plus Vietnam’s push at the 3rd ASEAN Future Forum in Hanoi, kept the spotlight on “people-centered” growth and ASEAN’s role in shaping regional rules, not just reacting to shocks. Energy & Fuel Costs: Vietnam cut retail fuel prices for a third straight week from 3pm June 11, using the petrol and oil stabilisation fund; E10RON95 remains distributor-linked to ethanol and base petrol costs. Cybersecurity: ESET says Vietnam-aligned OceanLotus shifted toward more domestic espionage, including a supply-chain attack tied to SPECTRALVIPER and FireAnt MetaKit. Infrastructure & Trade Logistics: Vietnam is courting investment to upgrade seaports into logistics hubs, with projects expanding berths and transshipment capacity. Property & Capital Flows: Keppel plans to ramp up Hanoi residential projects as demand lifts prices, while Vietnam also seeks to unlock capital for infrastructure and the green transition. Tech & Industry Policy: Vietnam’s leaders urged faster development of strategic technologies, with JICA ODA orientations focused on industrialisation, innovation, labour productivity and competitiveness. Regional Business Signals: Singapore’s oil product inventories fell to near 13-year lows amid US-Iran war-linked supply disruptions, a reminder of how geopolitics can hit regional costs.

Vietnam’s strategic tech push: Vietnam’s Academy of Science and Technology says “strategic technologies” with spillover effects are now a whole-of-system priority, aiming to boost national competitiveness, defense readiness and sustainable development. Rare earth stakes: A new USGS-based comparison highlights China’s dominant rare-earth reserves, underscoring how critical minerals could shape future industrial and tech power. Aviation trade leverage: Vietnam has told major airlines to review Boeing and Pratt & Whitney contract progress and propose ways to expand imports of U.S. materials, as Washington steps up trade probes. EV and industrial momentum: Vietnam’s EV sector continues to expand, with updates on VinFast’s performance and broader green mobility rollouts. ASEAN Future Forum 2026: Lao officials praised Vietnam for hosting and driving the ASEAN Future Forum, pointing to Vietnam’s central role and maritime connectivity. Weather risk for farmers: PAGASA declared the rainy season, but farmers report patchy rainfall and soil-moisture shortfalls amid Super El Niño concerns. Regional business deal: Taiwan-listed BizLink agreed to buy Blackstone’s Interplex Datacom unit for about $850m, a notable Southeast Asia M&A liquidity signal. Local governance and costs: Vietnam’s wider policy environment also faces scrutiny as governments manage spending and compliance pressures.

Vietnam Tech Strategy: Vietnam’s science and technology leadership is pushing “strategic technologies” with spillover benefits, aiming to boost programming/robotics talent and turn policy into implementation through VAST-led projects. Renewables Deal: OWC and Pioneer International Consulting (PIC) signed a Vietnam pact to advise wind and other renewables across the full project lifecycle, from market entry to bankability. EV & Auto Market: Vietnam’s vehicle market rose in May, with VAMA reporting growth in light passenger and commercial segments (VinFast and some brands not included in the wholesale data). FX & Gold Watch: The dong faced pressure as the dollar firmed, while Vietnam’s gold prices slid to an 8-month low amid rising US-Iran tensions. Trade & Compliance: A US CBP alert highlighted prohibited pork and produce smuggling risks tied to summer travel, with Vietnam flagged in a recent Dulles case. AI & Semiconductors: VinRobotics and Infineon agreed to explore next-gen robotics core technologies via a planned competency center, while Apple unveiled a revamped Siri AI at WWDC. Regional Logistics: Hainan’s Yangpu Port launched a new container route to India, routing via Vietnam and Singapore—another sign of Vietnam’s role in South China–South Asia trade lanes. Private Sector Voice: The Vietnam Private Sector Forum in Hai Phong urged stronger public-private cooperation and policy reforms grounded in business realities.

Strategic Tech Push: Vietnam is urging faster, more decisive development of “strategic technologies” with stronger policy follow-through, wider participation from science and business, and clearer breakthrough steps to build internationally recognized capacity. Tourism & Hospitality: Sofitel Legend Metropole Hanoi has won Condé Nast Traveler’s “Triple Crown,” a rare global hotel accolade spanning Hot List, Gold List and Readers’ Choice. Regional Security: The US deployed the USS Boxer amphibious group in the South China Sea, underscoring continued multi-region military presence. Vietnam-ASEAN Economic Agenda: At the ASEAN Future Forum in Hanoi, Cambodia’s and Vietnam’s leaders pushed for deeper integration, resisting fragmentation, and keeping people at the center as global instability threatens trade-led growth. Trade & Investment Links: Thailand and Vietnam set a target to lift bilateral trade to $25bn this year, while Can Tho invited Singapore firms to invest in innovation, logistics and green growth. Vietnam Business Signals: Vietnam’s pangasius sector sees strong prices and export momentum, but faces pressure to improve breed quality and disease control to meet tougher market standards.

ASEAN Fintech: Deputy PM Nguyen Van Thang urged ASEAN to build an open, secure, transparent fintech ecosystem, saying fintech is now “strategic infrastructure” for the region’s digital future and cross-border connectivity. Green Mobility Expansion: Vietnam’s Green SM launched its all-electric ride-hailing service in New Delhi (VinFast Limo Green), aiming to expand across key markets, while Singapore’s Hello Ello rolled out an AI care camera service in Malaysia. AI in Industry Parks: FPT and Amata Group signed an MOU to drive AI transformation across Amata’s industrial parks in Thailand, Vietnam and the wider region. Aviation Safety: Vietnam’s civil aviation authority warned of rising drone and kite risks near airports after disruptions at Noi Bai and Cat Bi, calling for tighter coordination and public awareness. Labour Market: ManpowerGroup said Vietnam’s Q3 hiring outlook stays positive but employers are more cautious, prioritising critical roles and tech-linked skills. Tech & Policy Push: Party chief To Lam called for more proactive theoretical work for 2026–2031 to tackle bottlenecks and support policymaking. UAV Ecosystem: Tay Ninh unveiled plans to build a UAV ecosystem through 2035, including a testing corridor and regulatory sandbox to attract investment. Renewables Investment: Vietnam’s push for green transition drew renewed attention as GWEC met NA vice chair Nguyen Hong Dien to discuss policy and investment support for renewables.

Tech & AI: Apple unveiled “Siri AI,” a new Siri built on Apple Intelligence with deeper personal context, web Q&A, and systemwide tools, available for developer testing now and a beta later this year. Vietnam–Thailand Business Push: Thai PM Anutin Charnvirakul arrived in Hanoi to meet Vietnamese and Thai firms, backing expanded trade, investment and supply-chain cooperation ahead of the ASEAN Future Forum. EV & Capital Markets: VinFast reported a near-42% jump in Q1 revenue on stronger demand in Southeast Asia, but losses widened as it ramps up factories; the company also outlined EV supply plans for GSM. Trade Policy Watch: The U.S. is moving toward broad Section 301 forced-labor tariffs, proposing 10%–12.5% rates across 60 economies, with comment deadlines in early July—an issue that could affect Vietnam-linked supply chains. Corporate Finance: Masan Group secured a record $750m unsecured syndicated loan, signaling continued funding momentum for its consumer and retail ecosystem. Local Economy & Infrastructure: Vietnam targets faster growth in cashless payments and new business formation, while Hanoi and regional partners push connectivity and logistics upgrades to unlock trade.

Vietnam–Laos Finance Pact: Vietnam and Laos signed a 2026–2030 cooperation agreement to boost financial management capacity, covering customs, taxation, treasury, state budget and debt management, plus training and facility upgrades. Digital Payments Push: Deputy PM Nguyen Van Thang said Vietnam targets cashless payment value reaching 30 times GDP by 2030, with 95% of adults holding bank transaction accounts, as part of a push for a modern, secure digital finance ecosystem. Banking Speed Upgrade: Vietnam Maritime Bank cut loan approval turnaround from 30 minutes to 15 after deploying FICO AI credit decisioning, aiming to scale lending across 260 branches while keeping risk parameters consistent. Corporate Funding: Masan Group secured a $750m unsecured syndicated loan from 15 international banks, with pricing at 1.8%—a record-tight rate for a Vietnamese privately owned enterprise of that tenor. Trade & Investment Cooperation: Vietnam and Canada agreed to move the Joint Economic Committee into a more action-oriented phase, prioritising trade diversification (including CPTPP use and ASEAN–Canada FTA talks), plus energy, infrastructure and green growth. ASEAN Diplomacy: Cambodia’s PM Hun Manet is set to visit Vietnam and attend the ASEAN Future Forum in Hanoi, with talks expected to deepen bilateral ties and regional economic cooperation. Cross-border Business Links: Thailand’s PM Anutin is in Hanoi to advance Thai–Vietnam trade and investment and strengthen ASEAN cooperation, with a focus on private-sector dealmaking. Supply Chain for Fashion: Sung Il Tex Vietnam completed a fully Vietnam-made lining supply chain for FTA partner countries to help global brands secure Vietnam-origin certified materials faster amid demand for alternatives to China.

Industrial Pulse: Vietnam’s industrial production stayed on a strong track in Jan–May 2026, with the Index of Industrial Production rising 9.1% year-on-year—the fastest pace in four years—driven by manufacturing and processing, plus electricity and distribution. Digital Finance Push: Vietnam targets cashless payments worth about 30 times GDP by 2030, with the State Bank and Tuoi Tre highlighting cashless as a core driver for digital finance and a modern, secure financial ecosystem. Crypto Regulation: Vietnam’s State Securities Commission says the new Law on Digital Technology Industry (effective Jan 1, 2026) legally recognises crypto assets as property and is building a regulated market via a five-year pilot for licensed trading platforms, aiming for a launch in Q3 2026. Retail Expansion: DMX (Dien May Xanh) is looking to replicate its Vietnam playbook abroad, with its EraBlue joint venture in Indonesia positioned as a key growth engine over the next five years. ASEAN Business Diplomacy: Thailand’s PM Anutin is set to visit Vietnam on June 8–9 for the ASEAN Future Forum and talks to turn political ties into concrete economic cooperation projects. Energy & Mobility: Vietnam’s electric mobility transition gets a boost as charging infrastructure becomes a key focus for scaling EV use.

ASEAN Diplomacy: Cambodia’s PM Hun Manet will visit Vietnam on June 8–10 and attend the 3rd ASEAN Future Forum in Hanoi, with talks expected to focus on deepening bilateral ties ahead of the 60th anniversary of diplomatic relations in 2027. Regional Mobility & EV Policy: Vietnam is pushing for faster EV charging infrastructure as adoption grows, with the Ministry of Industry and Trade having issued 18 related standards and more legal work expected this year. Trade & Energy Cooperation: Vietnam and Canada agreed an action plan for 2026–2028 under the Vietnam-Canada Joint Economic Committee, targeting trade diversification and cooperation in critical minerals, digital transformation, clean energy, LNG and logistics. Corporate Performance: VNG, Vietnam’s first unicorn, set its first full-year profit targets after listing on UPCoM, banking on growth across gaming, messaging, payments and AI. Sustainable Tourism: UNESCO has designated Phong Nha-Ke Bang as a World Biosphere Reserve, boosting its green tourism and conservation-based development prospects. Digital IP Enforcement: A new decree effective July 1 introduces heavy penalties for social media misuse, including fines up to VND 30 million for sharing press works without permission. Macroeconomic Watch: Pakistan’s savings rate reportedly slid to a 30-year low at 6.4%, raising concerns about investment capacity and reliance on external borrowing—an implicit contrast with Vietnam’s stronger savings level.

Night-time Economy Push (HCMC): Ho Chi Minh City is looking to unlock growth from its nightlife, but economists say it still lacks a single coordinating “conductor” to link tourism, transport, culture, security and urban planning into one integrated ecosystem. Aviation as Growth Engine (Hanoi): Hanoi unveiled a century-long master plan built around a second international airport (Ung Hoa), aiming to handle 30–50 million passengers a year and reshape development corridors via highways, rail and logistics. Digital Transformation Law (Vietnam): Vietnam’s 2025 Digital Transformation Law takes effect July 1, creating a unified legal framework for digital government, the digital economy and a safer digital society. Robotics Diplomacy (Austria): Vietnam hosted “Vietnam Robotics Technology Day” in Austria, showcasing VinRobotics humanoid platforms and pitching robotics/automation as strategic tech for global value chains. Trade & Tariff Risk (US): New US tariff moves tied to forced-labour probes, including a Vietnam investigation, are raising uncertainty for exporters and supply chains. FDI & Capital Markets: Reports highlight HCMC’s tech FDI momentum and Vietnam’s push to speed capital market reforms to improve foreign investor access. Industry Compliance Bottleneck (Leather): Bangladesh’s leather sector warns export stagnation from delays in a fully functioning CETP, underscoring how environmental infrastructure can make or break global market access.

E-commerce Export Push: Vietnam is positioning itself to become a regional e-commerce export leader, with Amazon Global Selling highlighting stronger logistics and a growing base of MSMEs already using online channels to boost global competitiveness. Higher Education Upgrade: The government approved a plan to develop several major higher education institutions in the Southeast to meet regional standards, aiming to raise research, innovation and technology transfer capacity by 2035. FDI Quality Concern: Coverage warns Vietnam’s Southeast still attracts large volumes of FDI but lacks the “new-generation” wave, with limited regional connectivity and projects focused more on assembly than high-tech and spillover. Banking Cost Pressure: Lending rates have edged down slightly since April, but banks face constraints on further cuts as deposit rates remain elevated and the State Bank tightens compliance. Insurance Growth: The non-life insurance market is set for a new growth cycle, supported by public infrastructure and industrial projects, including renewed all-risks property coverage for VinFast’s manufacturing complex. Agri Exports Up: Vietnam’s agro-forestry-aquatic exports rose to $30.69bn in the first five months, with China the biggest market and aquatic exports growing fastest. Digital Assets Regulation: Bybit reiterated support for Vietnam’s responsible crypto development after talks with Deputy Prime Minister Nguyen Van Thang under the pilot framework.

Semiconductor Investment: Samsung plans to invest up to $4 billion in a Vietnam chip-testing plant near Hanoi, with partial operations from Nov 2027 and a second phase starting in 2031, targeting legacy DRAM and NAND amid AI-driven memory demand. EV Mobility Expansion: VinGroup-backed Green SM launched its all-electric ride-hailing service Green SM Limo in Delhi-NCR with 1,000 company-owned vehicles, aiming to expand to other Indian cities in phases. Trade Compliance Pressure: The U.S. proposed forced-labor-related tariffs covering 60 countries, including Vietnam’s ASEAN neighbor Cambodia, as Washington moves under Section 301 to push stronger enforcement. Regional Connectivity & Growth: A report highlights China-Vietnam cooperation behind Hanoi’s Cat Linh–Ha Dong metro line, cutting travel to about 23 minutes and reflecting broader infrastructure, trade, people-to-people, AI and green energy ties. Higher Education Upgrade: Vietnam approved a scheme to develop major southeastern universities to be comparable with top Asian institutions by 2035, including UEH, UMP, VGU and VNUHCM. Disinformation Watch: Australia’s fact-checkers say fake footy fan pages, reportedly run from Vietnam, are spreading clickbait LGBTQI misinformation.

Vietnam Economy Watch: Vietnam’s growth stayed resilient in Jan–May 2026, with industrial production up (IIP +9.1% over the period), registered FDI rising 34.9% to $24.81bn, and business formation/restart activity lifting the enterprise count to 142,600+; Trade & FX: trade hit a record $445.12bn in the first five months (+25% YoY) but the trade deficit widened as imports outpaced exports, while the dong faced renewed pressure amid global oil and Gulf tensions; Power Market Reform: MOIT issued Circular 29/2026/TT-BCT detailing how Vietnam’s competitive wholesale electricity market will operate, aiming for more transparent pricing and a path toward full competition; Banking & Markets: ACB will pay a 20% dividend for 2025 (7% cash, 13% shares) and plans to lift charter capital above VND58tn, as VN-Index remains choppy with many stocks trading at crisis-like valuations; FDI & Industry: LG Innotek signed to expand semiconductor substrate capacity in Haiphong (construction July 2026–May 2027), while LG Innotek also pushes broader Vietnam semiconductor base growth; Digital & AI: FPT and NVIDIA released the Nemotron-Personas-Vietnam dataset for open, commercial sovereign AI development; Mobility & EVs: Green SM launched its company-owned electric cab service in Delhi-NCR using VinFast Limo Green vehicles, and VinFast showcased a full EV ecosystem at the Philippine International Motor Show; Climate & Insurance: Vietnam targets 25% micro-insurance coverage by 2030 as climate risks and affordability remain key hurdles.

Vietnam Business & Economy: Vietnam’s new 2026-30 sustainable business support programme will back about 25,000 enterprises, business households and cooperatives, aiming to develop at least 20 sustainable business models by 2030, with eligibility tied to green/ESG credentials and ongoing circular or environmental projects. Renewables & Power Deals: Samsung’s Vietnamese unit (SEVT) signed Vietnam’s first direct PPA, taking 70GWh of solar power from a Tay Ninh project—another signal of Vietnam’s growing renewable-energy market as the company expands semiconductor and clean-energy investments. Capital Markets & Policy: Vietnam is pushing faster capital market reforms to improve foreign investor access, while the government also moves to allow SMEs to use digital assets as collateral for bank loans—part of a broader push to modernise finance. Trade & Macro Watch: Vietnam’s trade picture remains under pressure as inflation and a widening trade deficit are flagged in recent reporting, even as FDI inflows rise in the first five months. Aviation & Travel Costs: IndiGo temporarily suspends flights to seven international destinations due to weak demand and higher operating costs, while India approved a jet-fuel price stabilisation support package for airlines—both highlight how fuel volatility is reshaping route planning across the region. Energy Transition (Regional): Malaysia’s utility TNB says it delivered 4.3GW of installed renewable capacity, underscoring the wider ASEAN focus on grid upgrades and clean power to meet data-centre demand.

Vietnam-US Trade Friction: Vietnam’s foreign ministry pushed back on the U.S. USTR’s forced-labour findings, saying the conclusion doesn’t reflect Vietnam’s mitigation efforts as Washington moves toward up to 12.5% tariffs on imports from 60 countries, including Vietnam. FDI & Trade Momentum: Vietnam reported stronger foreign investment and trade activity, with FDI inflows rising in the first five months and trade turnover topping $445bn, even as a record trade deficit and tariff risks loom. E10 Biofuel Rollout: Vietnam is moving ahead with nationwide E10 biofuel implementation from June 1, with authorities stressing strict quality oversight and consumer protection. Semiconductor Supply Chain: LG Innotek plans to expand semiconductor substrate production in Hai Phong, aiming to scale package solutions and diversify manufacturing. Green Finance Blocker: Vietnam flagged unassigned forestland under commune management as a key hurdle for green investment and carbon credit participation. Food Security Watch: Hot, dry weather and an expected severe El Niño are disrupting crop planting across Asia, pushing up wheat and rice prices and raising supply concerns. Digital Payments Push: VPBank and Taptap Send launched zero-fee inbound remittances to Vietnam, adding pressure for faster, cheaper cross-border money flows.