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CREDIT-TO- VIETNAM’S GOLD MARKET EXPAT LIFE: MORE

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WORRYING HIGH BOTTLENECK FOR BUSINESS? STOPOVER

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THE NEXT
ECONOMIC TEST
FOR VIETNAM
Gross domestic product (GDP) grew by a sharp 7.52%
in the first half of this year against the same period last
year, the highest first-half growth rate in the 2011-2025
period, according to a General Statistics Office report on
Vietnam’s socio-economic performance.
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BOTTLENECKS IN PUBLIC
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305
copies of Kinh te Sai Gon and The
Saigon Times Weekly this week were
given as gifts to students by local
At a National Assembly session on June 19, Governor of the State
businesses and organizations. The
Bank of Vietnam Nguyen Thi Hong warned that outstanding credit Saigon Times Group and the students
had increased to 134% of GDP by the end of 2024. She cautioned that would like to extend our sincere
ongoing reliance on bank financing could pose risks to the economy. gratitude to the entities that have
This underscores that monetary policy has little room left to pro- kindly provided these publications.
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PetroVietnam Technical
cially public investment. However, despite the Government’s ongo-
ing efforts, the economy’s ability to absorb public investment capital Services Corporation 100
remains sluggish. (PTSC)
As of June 30, 2025, only VND264.8 trillion in public investment
Tan Son Nhat Petrol
had been disbursed, which is less than one-third of the full-year
Commercial Joint Stock 70
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Company
lights an urgent need to remove persistent bottlenecks and acceler-
ate the flow of public investment capital. Without meaningful prog-
ress, the country’s economic growth target will be out of reach. Tan Quang Aluminum
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examine the situation.
Land clearance is often the leading cause of delays in land-related [Link] 15
investment projects. Separating the clearance process into a stand-
alone project is a necessary move, but it is not enough. There must
also be a clear rule that no bidding or groundbreaking can take place Dat Phuong Nam Real
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vestment capital, which has created a paradox: funds are tied up 10
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4 • July 10, 2025

 FOCUS ECONOMIC OUTLOOK

HIGH GROWTH, BUT WITH CAUTION

EDITOR-IN-CHIEF Tran Minh Hung
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July 10, 2025 • 5

T H E W E E K I N R E V I E W
NATIONWIDE

Vietnam’s H1 GDP growth

hits 15-year high
Vietnam’s gross domestic product
(GDP) expanded by 7.52% in the first
half of this year, its highest first-half
growth rate in 15 years, according to
data released on July 5 by the General
Statistics Office (GSO).
This robust growth comes amid
heightened global economic uncer-
tainties, including geopolitical ten-
sions, military conflicts, climate-re-
lated disasters, and persistent
inflation, said Nguyen Thi Huong,
head of the GSO.
She added that the global econom-
ic landscape remains unpredictable,
with U.S. policies, escalating tariff
tensions, and global supply chain

VNA
disruptions weighing on global
growth prospects. PHOTO OF THE WEEK
Major international institutions
have downgraded their growth fore- VIETNAM, U.S. LEADERS DISCUSS TRADE AND
casts for several Asian economies.
The World Bank has lowered its 2025 STRATEGIC PARTNERSHIP IN PHONE CALL
projections for the Philippines (5.3%, At 20:00 Hanoi time, Party General Secretary To Lam held a significant phone call with U.S.
down 0.4 percentage point), Indonesia President Donald Trump to discuss the strengthening of Vietnam-U.S. relations and ongoing trade
(4.7%, down 0.3 point), and Thailand negotiations, according to the Government news website.
The two leaders celebrated the recent agreement by their respective delegations on the Vietnam-
(1.8%, down 0.7 point). Vietnam’s U.S. Joint Statement, establishing a framework for a fair, reciprocal, and balanced trade agreement.
GDP growth was forecast at 5.8%, a President Trump commended Vietnam’s commitment to granting preferential market access
1.3-point decrease from 2024. for American goods, particularly large-engine automobiles. He affirmed that the U.S. would
Despite the downward global significantly reduce tariffs on various Vietnamese exports and pledged continued cooperation to
trend, Vietnam performed well in resolve trade-related challenges, especially in priority sectors for both nations.
H1. The second quarter alone saw Party General Secretary To Lam proposed the U.S. officially recognize Vietnam as a market
economy and lift restrictions on the U.S. exportation of certain high-tech products to Vietnam.
GDP rise by 7.96% year-on-year, just Both leaders outlined key measures to advance the Vietnam-U.S. Comprehensive Strategic
behind the record 8.56% growth re- Partnership in the coming years. They agreed to enhance high-level exchanges, promote
corded in Q2 2022. This performance cooperation in trade, investment, and critical sectors such as science and high technology, and
significantly outpaces the same peri- foster breakthroughs in areas of mutual interest.
od in recent years, including 4.34% in The General Secretary of the Communist Party of Vietnam extended an invitation to President
2023 and 7.25% in 2024. Trump and the First Lady to visit Vietnam. Trump expressed thanks for the invitation, saying he
would like to meet Lam again soon.
The 7.52% growth rate in the first
half surpassed pre-pandemic highs,
including 7.43% in 2018 and 7.12% in
2019. Growth was driven by broad- VITAL STATS
based expansion across all sectors.
The services sector continued to
lead with an 8.14% increase, con-
VIETNAM’S KEY AGRO-FORESTRY-FISHERY
tributing 52.21% to overall GDP EXPORT ITEMS IN H1/2025 (Unit: US$ billion)
growth. Industry and construction
Source: Ministry of Agriculture and Environment/

followed closely, expanding 8.33%

and accounting for 42.2% of growth. US$18.3 US$8.7 US$5 US$0.26
Agriculture, forestry, and fisheries
grew 3.84%, contributing 5.59%.
On the demand side, final consump-
tion climbed 7.95% year-on-year, mak-
ing up 84.2% of the overall growth.
Vietnam News Agency

Gross capital formation increased

7.98%, contributing 40.18%, reflecting
positive investor sentiment. Foreign Agricultural Forestry Seafood Livestock
trade also posted robust figures, with products products
exports of goods and services up products
14.17% and imports up 16.01%.

6 • July 10, 2025

W E I V E R N I K E E W E H T

First-half investments PHOTO NEWS

up 9.8%
Total fresh investments in Vietnam’s economy in the first
half of 2025 rose 9.8% versus the year-ago period, driven
by higher disbursements of foreign direct investment (FDI)
and stronger public spending.
Capital disbursements reached nearly VND1.6 quadril-
lion in the January-June period, according to the General
Statistics Office (GSO). The second quarter alone saw a
10.5% year-on-year rise to VND921.5 trillion.
Public investment rose 14.1% to VND445.8 trillion, ac-
counting for 28% of total investment. The increase reflects
the Government’s push to accelerate disbursement for in-
frastructure projects.
Private domestic investment climbed 7.5% to VND858.9 FPT, AUDAX FORM STRATEGIC PARTNERSHIP TO EXPAND
trillion, representing 54% of total capital. Disbursed FDI DIGITAL BANKING IN ASIA, MIDDLE EAST
rose 10.6% to VND287.2 trillion, or 18% of the total. FPT Corporation has entered a strategic partnership with Singapore-based
In U.S. dollar terms, FDI disbursements were estimated audax Financial Technology to expand digital banking services across Asia
at US$11.72 billion, up 8.1% year-on-year. This is the highest Pacific and the Middle East. The partnership targets US$100 million in combined
level for the first half of any year since 2021. revenue over the next three years. FPT will become audax’s largest regional
Total registered FDI, including new pledges, capital ad- partner in Asia Pacific, providing development, testing, deployment, and long-
justments, and stake acquisitions, reached US$21.52 billion term operational support. The firms will offer digital banking platforms aimed
as of June 30, surging 32.6% over the same period last year. at helping financial institutions modernize systems and adopt new models such
The number of newly licensed projects rose 21.7% to as Banking-as-a-Service. The Asia Pacific digital banking market is projected to
1,988, though their combined value fell 9.6% to US$9.29 bil- reach US$360 billion by 2030, up 110% from current levels, while the Middle
lion. Adjusted capital for existing projects more than dou- East market is expected to grow 58% to US$2.6 billion, the companies said.
bled to US$8.95 billion. (Photo: Courtesy of FPT)
There were 1,708 M&A transactions worth US$3.28 bil-
lion, up 73.6%, with US$1.3 billion used to increase charter
capital.

Vietnam posts US$7.63

billion trade surplus in H1
Vietnam recorded a trade surplus of US$7.63 billion in
the first half of this year, according to the General Statistics
Office (GSO).
Total trade in the January-June period amounted to
US$432.03 billion, up 16.1% from a year earlier. MOBIFONE, VPBANK INK STRATEGIC DEAL TO DEVELOP
Exports in June rose 16.3% year-on-year to US$39.49 bil-
lion. Second-quarter exports hit US$116.93 billion, up 18% TELECOM-FINANCE SERVICE MODEL
from the same period last year and 13.6% from Q1. First-half VPBank and MobiFone Telecommunications Corporation on July 2 signed a
exports totaled US$219.83 billion, up 14.4% year-on-year. comprehensive strategic cooperation agreement, aiming to build an integrated
Processed and manufactured goods accounted for telecom and banking ecosystem and expand digital services to millions of
US$194.28 billion, or 88.4% of total exports. customers nationwide. The partnership’s first key initiative is the rollout of the
Imports in June were US$36.66 billion. Q2 imports mobiPOS digital payment solution tailored for the public sector. The system
reached US$112.52 billion, bringing total imports for the integrates MobiFone’s mobiPOS platform with VPBank’s cashless payment
first half to US$212.2 billion. technologies – including SmartPOS, SoftPOS, QR Payment, and Ecompay – to
The U.S. was Vietnam’s largest export market, with ship- help government agencies, public service centers, and administrative offices
ments valued at US$70.91 billion. China was the largest modernize their payment processes. The two parties are also collaborating to
source of imports, with US$84.7 billion. implement an agent banking model across MobiFone’s nationwide network of
Service exports during the period were estimated at sales points and retail stores. Once launched, this model will enable residents in
US$14.79 billion, up 21.2% year-on-year. Travel services rural and remote areas to access basic financial services, such as eKYC account
accounted for US$7.62 billion, or 51.5% of the total, while opening, interbank deposits and withdrawals, bill payments, telecom top-ups,
transport services contributed US$4.35 billion, or 29.4%. credit card registration, and consumer loans. (Photo: Courtesy of MobiFone)

July 10, 2025 • 7

T H E W E E K I N R E V I E W
PHOTO NEWS Singapore’s Makara Capital eyes biotech,
energy and financial sectors in Vietnam
Makara Capital, a Singapore-based firm specializing in
fund management, asset investment, advisory services,
and financial structuring solutions, has expressed interest
in expanding its portfolio in Vietnam, focusing on biotech-
nology, energy, infrastructure, and financial restructuring.
Speaking at a meeting with Vietnamese Prime Minister
Pham Minh Chinh in Hanoi on July 2, Ali Ijaz Ahmad,
founder and CEO of Makara Capital Partners, said the firm
is confident in the country’s strategic vision and develop-
ment ambitions, reported the Government news website.
The company is actively working on a 300-hectare phar-
maceutical and biotechnology industrial park project in
Hung Yen Province, and engaging with Vietnamese author-
ities to explore investment opportunities in energy and in-
FAST RETAILING AWARDS SCHOLARSHIPS FOR frastructure development, the restructuring of Vietnam’s
banking sector and the establishment of an international
STUDENTS financial center.
Fast Retailing, which owns the UNIQLO brand, has officially announced 12 Ahmad noted that Makara Capital could mobilize be-
Vietnamese students as recipients of full scholarships from the Fast Retailing tween US$5 billion and US$7 billion for these initiatives.
Foundation for this year. Now in its third year in Vietnam, the program has PM Pham Minh Chinh said the Government of Vietnam
awarded scholarships to a total of 27 students between 2023 and 2025. The would support Makara Capital’s investment operations.
Fast Retailing Foundation Scholarship offers full financial support for English-
language undergraduate programs at 12 universities in Japan. It covers tuition,
living expenses, and housing for the entire duration of the program, with an
average of 10 students selected annually. Speaking at the scholarship award
ceremony, Noriaki Koyama, senior chief executive officer of Fast Retailing,
More than 40 fees cut by half
shared: “Through the Fast Retailing Foundation Scholarship Program, we aim
to support Vietnam’s young generation not only on their academic journey but
through 2026
also in realizing their dreams and contributing to the development of society as More than 40 types of fees and charges have been re-
a whole. I hope that through this learning opportunity, outstanding Vietnamese duced by half since July 1 through the end of 2026, under a
students will gain a deeper understanding of Japan and become a bridge new circular issued by the Ministry of Finance.
between the two countries in the future.” (Photo: Fast Retailing) According to Circular No. 64/2025/TT-BTC, issued on
June 30, the reductions aim to ease financial pressure on
businesses and individuals amid economic challenges.

B R I E F
The halved fees include licensing fees for the establish-
ment and operation of banks and non-bank credit institu-
tions, as well as appraisal fees for business activities involv-
„ Employees’ average income. The average monthly ing goods and services subject to restricted trading in the
income of workers was VND8.2 million per person in the commercial sector.
second quarter of the year, down by VND58,000 against Other charges subject to the 50% reduction are fees for es-
the previous quarter yet up by VND800,000 year-on-year. tablishing commodity exchanges, issuing aviation-related li-
In the first half of the year, average monthly income rose censes and certificates, and registering secured transactions
to VND8.3 million, up 10.1%, or VND760,000. involving aircraft. Entry and exit fees at Vietnamese airports
„ CPI. Vietnam’s consumer prices rose 3.27% in the first half for international flights are also covered by the reduction.
of 2025 from a year earlier, driven by higher construction Additional reductions apply to customs fees for inter-
material, fuel, and healthcare costs. In June alone, the national flights arriving at Vietnamese airports, fees for
consumer price index (CPI) rose 0.48% from May, bringing accessing and using meteorological and hydrological data,
the year-on-year increase to 3.57%. and charges for granting intellectual property protection
„ Administrative downsizing. As of June 30, Vietnam titles and registering technology transfer contracts in the
had spent nearly VND30 trillion, including VND7.6 trillion agriculture and forestry sectors.
from the central budget and VND22.2 trillion from local Fees related to the publishing industry will also see a 50%
budgets, on compensating public employees laid off cut. These include licensing fees for non-commercial pub-
during the administrative system restructuring, according lication materials, fees for the import of such publications,
to the Ministry of Finance. and fees for registering commercial importation of foreign
„ HCMC’s GRDP. Gross regional domestic product (GRDP) publications. The fee for registering the use of foreign bar-
of the new HCMC in the first half of this year is estimated codes, as well as fees related to airport operation rights, are
to have grown by 6.56% with crude oil included, and also included.
7.49% when crude oil is excluded. GRDP of the former The circular took effect on July 1 and will remain valid
HCMC grew by 7.82% year-on-year. through December 31, 2026.

8 • July 10, 2025

W E I V E R N I K E E W E H T

Vietnam attracts nearly 10.7 PHOTO NEWS

million foreign visitors in H1

Vietnam’s tourism sector posted strong growth in the
first half of the year, with nearly 10.7 million international
arrivals, up 20.7% year-on-year.
Data from the Vietnam National Authority of Tourism
showed that international arrivals in June reached nearly
1.5 million, up 17% versus the year-ago period.
In the first half of 2025, China remained Vietnam’s larg-
est source of international visitors, with 2.7 million arriv-
als, accounting for 25.6% of the total.
South Korea ranked second with 2.2 million visitors, or
20.7%. Together, these two markets made up 46.3% of all
international arrivals.
Taiwan followed with 630,000 arrivals, trailed by the ACECOOK VIETNAM EXPANDS SOCIAL IMPACT THROUGH
United States with 449,000, Japan with 393,000, and CHILDREN’S WELFARE PROGRAM
Cambodia with 360,000. India, Australia, Malaysia, and
Acecook Vietnam, in collaboration with the National Fund For Vietnamese
Russia also ranked among Vietnam’s top 10 international
Children, organized a “Happy Journey” trip for 40 disadvantaged students on
tourism markets.
July 4 as part of its long-running corporate social responsibility (CSR) initiative
During the first half of the year, air travel accounted for
aimed at supporting vulnerable children across the country. The students,
the majority of international arrivals, with 9.1 million vis-
selected from eight provinces including Lao Cai, Phu Tho, Ha Tinh, Quang Ngai,
itors entering Vietnam by air – representing 85.2% of the
Gia Lai, Dak Lak, An Giang, and Can Tho, toured the company’s instant noodle
total and up 22.7% year-on-year.
production facility and met workers on site. The event is part of the “Happy
Around 1.4 million visitors entered by land, making up
Noodle Package” project, launched in 2019 to support the development of
13.1% and rising 10.9%, while sea arrivals reached 181,400,
children from special and difficult backgrounds. The program aligns with
or 1.7% of the total, up 10% compared to the same period
Vietnam’s national action plans for children in the 2012-2020 and 2021-2030
last year.
periods. Since its inception, the project has provided assistance to tens of
thousands of children across Vietnam, with total funding surpassing VND18.5
billion. (Photo: The Ky)

HCMC’s Metro Line 2 project

stops using German ODA
Prime Minister Pham Minh Chinh has approved a propos-
al by HCMC authorities to stop using official development
assistance (ODA) from Germany’s KfW Development Bank
for the city’s Metro Line 2 project.
The total value of the canceled loan is 155 million euros.
Additionally, a grant of over 66.2 million euros under the
second agreement will no longer be used.
The HCMC People’s Committee has been tasked with man-
aging the remaining portion of the non-refundable ODA un-
der the second agreement, in line with existing regulations.
The city will cover all fees and obligations resulting from VIETNAMESE AI STARTUP RAISES US$10 MILLION IN
the loan termination until final settlement with KfW.
Metro Line 2, which runs more than 11 kilometers and SERIES A FUNDING
connects Ben Thanh Market and Tham Luong, requires a Vietnamese artificial intelligence startup AI Hay has raised US$10 million in a
total investment of VND47.89 trillion. The majority of the Series A funding round led by Argor Capital, bringing its total funding to more
funding was to come from international lenders, including than US$18 million. With the new funding, AI Hay plans to further invest in
the Asian Development Bank (ADB), Germany’s KfW, and expanding its web platform, developing new features, integrating AI more
the European Investment Bank (EIB). However, the project deeply into education and entertainment, and building more intelligent,
has faced repeated delays and complications during imple- practical AI assistants to help Vietnamese users easily access and apply artificial
mentation. intelligence in their daily lives. AI Hay, founded by digital platform builders
Following the withdrawal of German funding, HCMC and experienced Vietnamese engineers, aims to redefine how Vietnamese
plans to switch the project’s financing model to public in- users search and share knowledge. Leveraging generative AI and social media
vestment from the municipal budget. The project will also interactivity, the platform delivers accurate, culturally relevant answers with
be expanded to include integrated infrastructure connect- transparent citations. It also fosters a collaborative community for sharing
ing Metro Lines 1 and 2 at Ben Thanh Central Station. insights and learning together. (Photo: AI Hay)

July 10, 2025 • 9

NGUYEN TRUNG AU

Early July 2025 marks a major shift in Vietnam’s administrative history, as 52 of the country’s 63 provinces and
centrally-governed cities were merged, cutting nearly half of all provincial-level administrative units

Provincial Reform As A Catalyst The challenge of regional

development after the merger

For Regional Synergy

Vietnam’s provincial merger move
is a bold administrative reform and
strategic initiative that will lay the
groundwork for sustainable develop-
Vietnam has undergone one of its most sweeping ment, improve governance, and create
administrative reforms in decades, marked by a week of new drivers for local and national eco-
unprecedented change. The merger of 52 provinces and nomic growth. This process is more
than just combining land areas, pop-
centrally governed cities into 23 is not only a move to ulations, or administrative structures
streamline government operations, but also a strategic — it is a comprehensive restructuring
development initiative designed to fully leverage of development space, an optimiza-
tion of resources, and an attempt to
regional strengths. maximize synergistic effects between
regions and sectors. Below are three
By Le Hoai An This move aims not only to stream- core rationales behind the provincial
line the bureaucratic apparatus and mergers, all based on leveraging the

T
reduce spending, but also to im- existing advantages of the newly com-
his policy raises hopes for the prove governance efficiency, foster bined areas.
emergence of “super provinc- socio-economic development, and First, the mergers create value
es” — large-scale economic enhance the competitiveness of re- chain effects and sector synergy,
zones with high competitiveness gional economies across the national boosting economic growth beyond
and renewed momentum for key map. the sum of their parts. When a prov-
economic sectors. At the same time, In the context of deep internation- ince strong in industrial production
it highlights the urgent need to har- al integration, small and fragmented and high technology is merged with
ness the unique resources of each lo- provinces are increasingly revealing one rich in raw materials, agricul-
cality within a unified development limitations in terms of scale, resourc- ture, or natural resources, a closed-
framework. es, and investment appeal. Provincial loop value chain emerges — from
Early July 2025 marks a major shift mergers are thus expected to create raw material supply, to production,
in Vietnam’s administrative history, large-scale economic regions capable processing, and export. Such inte-
as 52 of the country’s 63 provinces of developing key industries, estab- gration optimizes logistics costs, in-
and centrally-governed cities were lishing modern industrial, service, creases the added value of products,
merged, cutting nearly half of all and agricultural hubs, and serving promotes the growth of supporting
provincial-level administrative units. as regional connectivity drivers. and deep-processing industries, and

10 • July 10, 2025

 CURRENT ISSUES INSIDE VIETNAM

enhances product competitiveness expenditures — resources that can Airport. Thanks to integrated logis-
in both domestic and international instead be redirected toward devel- tics infrastructure, transportation
markets. oping key economic sectors, modern and storage costs could be reduced by
For example, merging Dong Nai infrastructure, education, health- 10–15%, saving businesses an estimat-
— a major industrial center — with care, and social welfare. ed VND500–700 billion per year.
Binh Phuoc — a leading supplier of In terms of border trade, Binh
cashew, rubber, and pepper — would Post-merger economic Phuoc has the Hoa Lu International
allow businesses to source raw mate- scenarios Border Gate, with total import-ex-
rials locally, cut transportation costs, With the provincial mergers done, port turnover of US$1.2 billion in
boost export processing, and form a key challenge is how to maximize 2024. After the merger, with a larger
tightly integrated industrial clusters. the potential of land, raw materials, economic scale, the new province of
This is a “multiplication” of GDP, not production capacity, and logistics Dong Nai could invest significantly
just an arithmetic addition of land infrastructure, while overcoming in logistics infrastructure, warehous-
and population. limitations related to scale, frag- ing, and distribution centers at the
Second, the mergers expand de- mented resources, and inefficient border area.
velopment space and enable unified investment. To better understand the At the same time, economic diver-
planning, facilitating the growth of growth drivers, we can look at a mod- sification and the development of
key economic zones, urbanization, el scenario of the potential economic new industries would be accelerated.
and infrastructure modernization. impact following the combination of Leveraging Binh Phuoc’s abundant
With enlarged administrative bound- Dong Nai and Binh Phuoc into a sin- raw materials, processing plants in
aries and increased population and gle administrative unit. former Dong Nai could scale up op-
area, the merged localities will have After the merger of Binh Phuoc erations, increasing the deep-pro-
the opportunity to formulate com- into Dong Nai, the expanded Dong cessing rate of cashew products from
prehensive development strategies Nai will be able to fully leverage in- 40% to 70%, thereby boosting export
and coordinate planning across dustrial land resources. Currently, value by an additional US$300–400
economic sectors, transportation, Dong Nai has over 30 industrial million per year.
logistics, urban systems, industrial zones with more than 10,000 hec- Finally, the merger would opti-
zones, and high-tech agricultural ar- tares of planned space, with an oc- mize the management of public in-
eas. This approach addresses issues cupancy rate of 85–90%. In contrast, vestments. A leaner administrative
of fragmented development and un- former Binh Phuoc has over 10 indus- system would save VND800–1,000
healthy competition among smaller trial zones totaling 6,000 hectares, billion annually, which could be re-
provinces, reduces scattered and in- but only around 60% of that land is directed toward infrastructure and
efficient public investment, and en- in use. Together, the new Dong Nai priority economic sectors.
hances capital use efficiency. would have about 16,000 hectares of The provincial mergers are a major
Third, the provincial mergers industrial land, of which Binh Phuoc policy shift that will certainly bring
optimize resource allocation, en- alone has around 4,000 hectares still both opportunities and challenges
hance governance efficiency, and im- available. With synchronized plan- for individual localities and the na-
prove the quality of public services. ning, infrastructure investment, tion as a whole. If implemented sci-
Merging provinces enables a more and improved connectivity, this land entifically, transparently, and with a
balanced and effective distribution could be quickly utilized. Assuming long-term vision, the process can be-
of financial, human, and infrastruc- an average investment rate of US$7 come a powerful driver for develop-
tural resources across regions with million per hectare, filling just 3,000 ment, helping the merged provinces
different levels of development. At hectares of vacant industrial land and cities fully capitalize on region-
the same time, it streamlines the ad- in Binh Phuoc could attract around al advantages, improve investment
ministrative apparatus, reduces op- US$21 billion in new FDI over a peri- efficiency, enhance governance and
erating costs, increases the efficien- od of five years. public services, and create strong
cy of governance, and elevates public The merger would also facilitate the economic-administrative centers ca-
service delivery. formation of a closed supply chain pable of deep global integration and
Currently, each province operates and a modern logistics system. Binh meaningful contributions to a pros-
as a separate administrative entity, Phuoc is rich in raw materials like perous national future. What mat-
leading to redundant procedures, cashew, rubber, and pepper, while ters most is that each newly formed
higher burdens for businesses and Dong Nai has strengths in process- province or city builds its develop-
citizens, and unhealthy competi- ing and export industries. Regional ment strategy based on synergized
tion for investment. Once merged, integration would allow raw materi- strengths, aligned interests, and
the administrative system becomes als from Binh Phuoc to be processed broad social consensus, ensuring
more compact, reducing the number at modern factories in Dong Nai, then that the mergers will become the
of agencies and saving trillions of exported via major ports like Cai Mep launchpad for sustainable growth
Vietnamese dong in annual routine – Thi Vai or Long Thanh International and national modernization.

July 10, 2025 • 11

INSIDE VIETNAM CAPITAL MARKET

Credit-To-GDP Ratio Hits

ic conditions and the monetary poli-
cies of major central banks.
An economy where outstanding

Worrying High
credit far outpaces the value of an-
nual economic output also means
households and businesses are
shouldering a heavier debt burden.
Under such conditions, the rising
An economy in which total outstanding credit increasingly pressure of debt service forces eco-
exceeds the total value of goods and services annually nomic actors to curtail spending and
produced implies that the debt burden on households and investment, which dampens growth
momentum and tightens credit ac-
businesses is growing. As pressure from interest payments and cessibility.
loan obligations mounts, these economic entities are forced From the banking sector’s perspec-
to cut back on consumption and investment. Their capacity to tive, with ample room to grow credit
and under pressure to improve their
access credit becomes more limited, inevitably affecting key balance sheets and growth perfor-
drivers of economic growth. mance—yet facing limited demand
for capital from the production sec-
tor—banks may be inclined to chan-
nel loans into higher-risk segments
offering more attractive profit mar-
gins. However, bad debt risks tend
to rise following each economic and
asset market boom cycle, a phenom-
enon that has already played out in
recent times.
Furthermore, easy credit access of-
ten prioritizes industries with readi-
ly appraisable collateral, such as real
estate, over innovative sectors. This
reduces the economy’s long-term pro-
ductivity. The persistently low share
of credit directed toward high-tech
enterprises, despite numerous sup-
portive policies, and the continued
dominance of real estate as collateral
in bank lending clearly demonstrate
LE VU

which sectors are being prioritized

As of the end of 2024, Vietnam’s credit-to-GDP ratio stood at 134%, by capital flows.
with total outstanding credit amounting to VND15,600 trillion From a regulatory standpoint, an
economy overly reliant on credit lev-
erage places constraints on monetary
By Trieu Minh If credit inflows continue to surge policy. Specifically, if inflation ris-
without being effectively absorbed by es again, the State Bank of Vietnam
the production sector, they are like- (SBV) would find it difficult to raise
What are the risks? ly to flow into investment channels interest rates to contain it, as doing
As of the end of 2024, Vietnam’s such as stocks or real estate. This so would increase debt servicing bur-
credit-to-GDP ratio stood at 134%, could inflate asset prices well beyond dens for businesses and households,
with total outstanding credit their real value, raising the risk of raising the risk of systemic defaults.
amounting to VND15,600 trillion. asset bubbles. Should interest rates In such a scenario, the Government
This ratio has been on a steady up- reverse course and begin to rise, may be forced to step in with refi-
ward trend in recent years, as credit these investment channels would be nancing or bank restructuring sup-
growth has typically outpaced GDP the first to suffer and could collapse, port, effectively shifting private debt
growth by a factor of two. The World triggering widespread defaults and to public debt, which causes fiscal
Bank has warned that this level is plunging the broader economy into risks in the process.
high, while analysts have noted that distress. Moreover, given Vietnam’s
further increases could pose risks to deep integration with global markets, Policy solutions
the banking system and have broader domestic interest rate trends are in- The paper “Too Much Finance” by
economic repercussions. creasingly shaped by global econom- Jean-Louis Arcand, Enrico Berkes,

12 • July 10, 2025

and Ugo Panizza (1) indicates that loan volumes at any cost. It is also assets must hold an additional US$1
when credit to the private sector worth noting that even with annual billion in capital.
exceeds GDP, its impact on eco- credit growth targets in place, credit Central banks can also supervise
nomic growth becomes negative. growth in recent years has still out- the Loan-to-Value (LTV) ratio to pro-
Specifically, rapid credit growth can paced GDP growth twofold, which tect loan portfolios from declines
increase macroeconomic volatility, suggests the credit-to-GDP ratio must in collateral value and to minimize
trigger financial and banking crises, have continued to rise. potential bank losses. Although
and lead to inefficient resource allo- In other countries, to mitigate the Vietnam does not have an official
cation. credit cycle and stabilize the finan- LTV limit, banks typically apply a
History has also offered many cau- cial system, central banks often apply range of 70–80%. However, during as-
tionary lessons when credit growth the Counter-Cyclical Capital Buffer set market booms, stricter control of
outpaces an economy’s productive (CCyB). This tool requires banks to the LTV ratio is necessary.
capacity. For example, in China, the accumulate additional capital during Lastly, the Debt-to-Income (DTI)
credit-to-GDP ratio of the world’s credit booms so they can absorb loss- ratio can be used to assess the re-
second-largest economy surged es when the cycle reverses. The buff- payment capacity of households and
from 106% in 2008 to 195% in 2020, er also discourages excessive lending businesses, helping to avoid “income
prompting regulators to tighten cred- during boom periods, helping pre- traps” where income is insufficient
it control over the real estate sector. vent asset bubbles and encouraging to cover interest and principal repay-
This led to defaults by major prop- more prudent credit practices. For ex- ments.
erty developers such as Evergrande ample, if the CCyB is set at 1%, a bank [Link]
(1)

WP/Issues/2016/12/31/Too-Much-Fi-
and Country Garden. As of the end of with US$100 billion in risk-weighted nance-26011
2024, China’s credit-to-GDP ratio still
stood as high as 198%.
Similarly, in the United States, the VITAL STATS
credit-to-GDP ratio reached 206% in
2007 after years of ultra-low inter-
est rates and a boom in subprime VIETNAM SEES SHARP DROP IN TRAFFIC
mortgage lending. The result was a ACCIDENTS IN FIVE MONTHS
housing market crash that spiraled
A total of 7,853 traffic accidents were recorded nationwide
into the most severe global financial
crisis since the Great Depression of
between December 15, 2024, and May 14, 2025, leaving
the 1930s. 4,328 people dead and 5,307 injured, marking a decline
To ensure safety and sustainable across all key indicators.
development, it is essential to control TRAFFIC ACCIDENTS IN FIVE MONTHS OF 2025
overall credit growth in the economy.
In recent years, the SBV has adopted
new safety standards aligned with
international norms such as Basel II
and Basel III, requiring banks to con-
tinuously increase capital buffers to
strengthen financial resilience.
Regarding the capital adequacy
ratio (CAR), the SBV has consistently
raised requirements in line with in-
ternational standards. Banks seek-
ing higher credit growth must meet
these CAR thresholds.
Additionally, SBV regulations on
safety ratios, such as the loan-to-de- From
posit ratio and the cap on the use of December
15, 2024 to
short-term capital for medium- and
Source: Vietnam News Agency

May 14, 2025

long-term loans, are intended to pre-
vent credit expansion from outpac-
ing the banks’ funding base.
Furthermore, the SBV’s continued
application of an annual cap on over-
all credit growth, as well as individ-
ual credit growth quotas for banks,
is understandable. This prevents a
“credit race” among banks to expand

July 10, 2025 • 13

INSIDE VIETNAM GOLD MARKET

Vietnam’s Gold Market

Shake-Up: Boon Or
Bottleneck For Business?
In its draft amendments to Decree 24/2012/ND-CP on gold
trading management, the State Bank of Vietnam (SBV) has
proposed ending the State’s monopoly on gold bar production
and transitioning to a conditional licensing system overseen
by the SBV. However, businesses have voiced concerns that the
proposed licensing requirements and continued controls on
gold imports could lead to the reemergence of sub-licenses
that are overly restrictive or selectively issued. This would
hinder gold trading activity and limit market access.

By Cam Ha manner, while upholding the princi- lowing criteria must be met: possess
ples of property rights and business a valid license for buying and selling
freedoms for individuals and enter- gold bars; maintain charter capital of
Scrapping monopoly, prises. a minimum VND1 trillion; have no
conditional licensing Under this direction, in its draft track record of administrative viola-
Since 2023, the SBV has been re- amendments to Decree 24/2012/ND- tions in gold trading—or, if violations
viewing the implementation of CP (hereafter referred to as the draft), occurred, have fully rectified them
Decree 24/2012/ND-CP over the past the SBV proposes abolishing the state and complied with all inspection
decade in preparation for amend- monopoly on gold bar production, conclusions; establish an internal
ment. However, the draft of the re- raw gold export and raw gold import process for gold bar production.
vised decree had not been released for gold bar production; instead, gold Credit institutions must meet sim-
until early June 2025, just one month bar production is classified as a con- ilar requirements, but with a signifi-
after Party General Secretary To ditional business field and must be cantly higher charter capital thresh-
Lam, during a working session with licensed by the SBV. old of VND50 trillion.
the Central Commission for Policy The draft amendments outline According to the SBV, the proposed
and Strategy, called for aligning two categories eligible for gold bar licensing conditions are designed to
gold market operations with market production licenses: businesses and ensure that only financially capable
principles. He emphasized the need credit institutions, each subject to and law-abiding entities are author-
to dismantle the state monopoly on specific conditions. ized to produce gold bars, while also
gold bar production in a controlled For businesses, all four of the fol- enabling the State to maintain ef-
fective oversight of the sector. The
draft further stipulates that, based
on monetary policy objectives and
Economic expert Ngo Tri Long backs the abolishment of monopoly in gold bar the prevailing gold supply-demand
production and the expansion of production rights for eligible businesses. Currently, balance, the SBV will annually allo-
only Saigon Jewelry Company (SJC) produces gold bars, resulting in a lack of cate gold import quotas and issue a
competition, high processing costs, and limited supply. According to Long, businesses
license for each instance of gold bar
meeting technical and financial criteria should be allowed to produce gold bars
under the strict supervision of the State. This will help diversify supplies and alleviate
export, import, and raw gold impor-
pressure on the market to increase prices. tation to accredited businesses and
Regarding gold imports, Long agreed with the view of controlling them through credit institutions. To promote great-
transparent quotas. He stressed that quotas should be issued based on actual er transparency in gold trading, the
capacity, business efficiency, legal compliance, and transparent audit results. “This draft also mandates that all trans-
method not only ensures fairness and transparency but also encourages healthy actions valued at VND20 million or
competition, preventing group monopoly and gold bar speculation,” he said. more must be conducted through
customer and business accounts at

14 • July 10, 2025

 During a working session with the
Central Commission for Policy and
Strategy, Party General Secretary To
Lam called for aligning gold market
operations with market principles

cern that the multilayered control

over gold bar imports—compris-
ing import-export permits, annual
quotas, and individual transaction
approvals—could lead to the prolif-
eration of sub-licenses. This com-
plex regulatory framework, the VCCI
warns, may significantly increase
administrative burdens and compli-
ance costs, thereby hampering the
production and trading activities of
businesses in the gold sector.
According to the VCCI, gold import
permits are currently issued exclu-
sively to gold production businesses
that are already licensed and closely

LE VU
supervised by the SBV. As such, the
VCCI argues that requiring a sepa-
rate import-export permit is redun-
dant, leading to procedural overlap
commercial banks or foreign bank costs and lengthening administra- and increased costs for businesses.
branches. tive procedures. Moreover, the draft’s stipulation that
The requirement of a minimum enterprises must apply for a permit
Concern over “permit within a VND1 trillion in charter capital for for each individual gold import or
permit” businesses seeking a gold bar pro- export transaction—despite the ex-
In its feedback on the licensing duction license is widely viewed as istence of an annual quota—is seen
conditions for gold bar production, overly stringent. The VCCI has urged as both unreasonable and inflexible.
the Vietnam Chamber of Commerce the drafting agency to reconsider Given the gold market’s high vola-
and Industry (VCCI) contended that this threshold, arguing that it does tility and sensitivity to global and
requiring businesses to hold a li- not reflect the operational realities or domestic developments, delays in se-
cense for both gold bar buying and financial capacity of most business- curing transaction-specific permits
selling is unreasonable. According es in the sector. According to feed- could cause businesses to miss crit-
to VCCI, production and trading are back gathered by VCCI, such a high ical market opportunities, ultimately
distinct stages in the supply chain: capital requirement could become a undermining their operational effi-
production is an industrial activity significant barrier to market entry, ciency.
in the initial phase, while buying and effectively excluding the majority of In response, representatives of the
selling are commercial functions in potential participants. This, in turn, business community have proposed
the distribution phase. Imposing a would stifle competition, reduce di- abolishing the requirement for gold
dual-licensing requirement, VCCI versity in gold supply, and ultimately import-export permits—both the
argued, creates a “permit within a limit consumer choice. general license and the permit re-
permit” scenario, raising compliance The VCCI has also expressed con- quired for each individual transac-
tion. Instead, they recommend adopt-
ing more effective and streamlined
oversight mechanisms, such as es-
tablishing data connectivity between
In its opinion on the draft amendments to Decree 24/2012/ND-CP, the Vietnam Gold customs authorities and the SBV or
Trading Association proposed not adding credit institutions, especially commercial requiring businesses to submit pe-
banks, to the list of entities allowed to produce and trade gold bars. It argued that,
riodic reports on gold import activ-
under the Law on Credit Institutions, commercial banks do not have the function or
responsibility of gold production. Suppose the banks are allowed to engage in this
ities. These alternatives, they argue,
business. In that case, they will have to make significant investments in factories, would still fulfill regulatory super-
workshops, and manpower, which is outside their main responsibility of supplying vision objectives while significantly
credit and capital to the economy. In reality, prior to 2012, several commercial banks reducing procedural burdens—better
experienced ineffective performance in gold bar production and trading, resulting in aligning with the Government’s goals
lasting unintended consequences. of administrative reform and busi-
ness facilitation.

July 10, 2025 • 15

IMPROVING BUSINESS EFFICIENCY
Vietnamese businesses are increasingly focusing on boosting labor productivity as a
means to enhance overall company performance, leveraging modern management
practices and advanced software solutions
By Song Hao cialized function focused on people to technology as a solution for per-
management, KPI setting and track- formance management. They invest

D
ing, talent development at both indi- in software tools—ranging from
iscussions about enhancing vidual and team levels, and driving KPI tracking systems to CRM plat-
company performance often overall organizational performance. forms and HRM applications, such
center around the adoption It also plays a key role in building a as 1Office or Tanca—hoping these
of modern management methods positive workplace culture that fos- will streamline their operations. Yet
and advanced software tools. Yet, ters employee satisfaction, engage- instead of simplifying things, these
when it comes to selecting the right ment, and long-term commitment.” tools often create a new kind of
solutions and implementing them In its early years, around 80% of complexity. The more systems they
effectively, many businesses remain BCC’s clients were primarily for- adopt, the more tangled their pro-
entangled, struggling to navigate eign-invested enterprises, according cesses become.
what feels like a complex and con- to Chinh. However, the trend has Nguyen Ngoc Tram, CEO of the
fusing matrix. An online talk show reversed over the past decade, with U.S.-based IPGEEKLAB and senior
held by the Saigon Times Group on approximately 70% of the company’s advisor to the intellectual property
July 1, titled “Matrix of Enterprise current clients now being domestic expert committee at the American
Performance Management Software: businesses. He noted that the HR pro- Intellectual Property Law Association
From Expectations to Reality,” dis- fession in Vietnam has made signifi- (AIPLA), believes that improving per-
cussed various aspects of this issue. cant strides, as more local companies formance is one of the biggest chal-
have begun offering HR consulting lenges facing businesses today, and
A human resources firm’s services. that Western companies are far ahead
story According to data from the of their Vietnamese counterparts.
In 2000, HR training expert Bui Ministry of Home Affairs, there are At the heart of the issue, she said,
Duc Chinh teamed up with business currently more than 500 domestic is the ability to connect individu-
strategist Tran Hoang Bao and two and international companies provid- als, departments, and divisions in a
other colleagues to establish BCC ing various types of HR services in way that uses fewer resources while
Human Resources Corporation. Back Vietnam, ranging from recruitment, delivering greater results. “Many
then, BCC stood out as one of the few consulting, and training to labor sup- businesses assume that purchasing
Vietnamese-owned HR firms in the ply. This number is expected to con- performance software automatical-
market. Around 2002-2003, the com- tinue growing as the labor market ly means they have boosted perfor-
pany launched its first survey to map expands and the demand for profes- mance. That is not true,” she empha-
the professional profile of HR direc- sionalized human resource manage- sized. “All they have done is acquire
tors in Vietnam. ment and improved company perfor- a tool that may help create or amplify
“At that time, HR directors main- mance persists. performance.”
ly handled administrative duties for “This is the bitter truth, as the
the entire company, which account- Software is not a “cure-all” journey is only just beginning,” said
ed for about 60% of their workload,” In an effort to enhance produc- Chinh of BCC. In his view, software is
said Bui Duc Chinh, director of BCC. tivity and workforce quality, many far from a “cure-all” that can instant-
“But today, HR has grown into a spe- Vietnamese businesses are turning ly streamline operations or boost ef-
ficiency. The real challenge, he noted,
is that many companies have yet to
select the right solution, nor do they
have the necessary processes, stand-
In 2020, each Vietnamese worker produced an average of US$6.40 in value per hour, ards, data infrastructure, or person-
according to the Asian Productivity Organization (APO). Meanwhile, hourly labor nel in place to maximize its benefits.
productivity reached US$9.70 in the Philippines, US$12 in Indonesia, US$14.80 in
Thailand, US$26 in Malaysia, US$40 in South Korea, and US$68.50 in Singapore.
A unified platform for
In its 2022 report, the World Bank highlighted Vietnam as a global economic star over
the past three decades, noting it had one of the fastest GDP growth rates in the world.
performance management
Between 1990 and 2021, Vietnam’s GDP per capita grew at an average annual rate of KAFI Securities Corporation,
5.3%, outpacing every Asian economy except China. This performance was driven by a three-year-old brokerage firm,
three key factors: rapid capital accumulation, an abundant labor supply, and strong brands itself as a technology-driven
productivity growth. company. At the core of its strategy
is a performance monitoring system

16 • July 10, 2025

 MANAGEMENT INSIDE VIETNAM

designed to drive efficiency. By lev- Tram added that the success of any maintaining productivity.” Still, the
eraging automation, ensuring trans- new software ultimately depends on use of modern tools and advanced
parency and fairness, and applying how well users adapt and tailor it to management practices, such as per-
advanced data analytics, KAFI aims fit their day-to-day responsibilities. formance management software, re-
to optimize operations and enhance “People are the most valuable asset mains uneven across many firms.
overall performance. of any business. Hiring the right tal- Vietnam’s labor productivity rose
“Real-time dashboards provide ent, placing them in the right roles, by over 64% between 2010 and 2020.
instant, data-driven insights into assigning the right tasks, and offering Despite this growth, overall produc-
progress, performance, and key op- fair compensation are key to unlock- tivity levels remain low compared to
erational metrics in the securities ing employee potential and improving regional peers and fall well short of
industry,” said Tran Thi Cam Tien, overall company performance,” said those in both developed and other
senior investment advisory director Nguyen Tien Hoang Ngoc, head of developing economies.
at KAFI. “In this high-stakes, fast- Human Resources at KAFI. Since October 1999, Vietnam has
paced sector, where competition is Speakers also emphasized that officially adopted a five-day work-
fierce and turnover is high, timely managing a company’s most valuable week, replacing the previous six-day
information is critical.” asset – its people – is not solely the schedule. Today, China is piloting a
KAFI’s business team used to man- responsibility of the HR department, four-and-a-half-day workweek, aim-
age their work through Excel, Google but a shared effort across the organ- ing to boost productivity while giv-
Sheets, and emails – a fragmented ization. In a competitive landscape, ing employees more time to rest and
system that left employees unclear performance is a matter of survival. spend. In Western countries with
about how transaction fees, sales high labor productivity, four-day
revenue, and bonuses were calculat- Improving business efficiency workweeks are being tested or imple-
ed. Managers also struggled to keep Vietnam has seen an increase in mented, often combining three days
track of delays, identify issues, or the proportion of formally trained in the office with one remote work-
provide timely support. Since imple- workers, rising from 20.4% in 2015 day from home.
menting the real-time dashboard, to 26.44% in 2022. Despite this pro- However, this shift is unlikely to
operations have become more trans- gress, the rate remains well below happen in Vietnam in the near fu-
parent. Trust among team members that of many Asian countries – mir- ture. “The U.S. and Europe have far
has grown, and collaboration has roring the country’s relatively low la- surpassed Vietnam in both individu-
improved. Both employees and man- bor productivity. al and corporate productivity, which
agers can now track performance in- A Vietnamese mid-level manag- allows them to adopt flexible four-
stantly, with breakdowns available by er supervises an average of just 3.5 day workweeks. China is getting clos-
day, week, or month. employees, according to the director er to that benchmark, and Vietnam
Integrating real-time dashboards of BCC, while their foreign counter- will eventually follow,” said Bao of
with gamification – applying game parts in Vietnam typically oversee BCC Human Resources Corporation.
design elements, techniques, and seven or more. Chinh observed that “Productivity is the core issue. We
thinking to investment and trading more local companies are beginning need to maximize efficiency before
activities – is a key priority for KAFI to invest in HR consulting, noting, “It we can seriously consider reducing
in the near future. helps reduce payroll expenses while working hours.”

Unlocking most valuable asset

Few businesses begin with a clear
digitalization strategy that focuses VITAL STATS
on building a unified and cohesive
HANOI’S GRDP GROWS BY 7.63% IN H1/2025
Source: Hanoi’s Statistics Office/Vietnam News Agency

platform from the ground up, as

KAFI has done. Many Vietnamese Hanoi’s gross
companies instead find themselves regional domestic Services 8.42
in a maze of software – adding new product (GRDP)
tools whenever a problem arises to expanded by 7.63% Industry and
in the first half of 2025, construction 6.83
address specific issues or workflow
bottlenecks. This patchwork ap- exceeding the 6.13%
Agriculture, forestry,
proach often leaves little room to op- growth seen in the and fisheries 3.21
timize performance, resolve system same period last year
and slightly above Product taxes
errors, or adapt the software to their minus subsidies 4.84
the 7.59% target set
actual needs. earlier this year.
Chinh believes that true efficien- Industrial
5.9
cy comes from company-wide align- YEAR-ON-YEAR production index

ment and a strong team culture, GROWTH Average consumer

3.2
which is key to tackling challenges RATES (%) price index (CPI)
head-on and avoiding the tendency to
sidestep difficult or important tasks.

July 10, 2025 • 17

FOCUS ECONOMIC OUTLOOK

THE NEXT ECONOMIC

TEST FOR VIETNAM
Gross domestic product (GDP) grew by a sharp 7.52%
in the first half of this year against the same period last
year, the highest first-half growth rate in the 2011-2025
period, according to a General Statistics Office report on
Vietnam’s socio-economic performance.

By Bui Trinh (*) – Khuc Van Quy (**) The 7.52% GDP growth reported
by the General Statistics Office for

O
the first half of 2025 is based on the
n the supply side, based on supply-side, or production-based, ap-
gross value added (GVA) proach. Since Vietnam has not yet im-
growth, the agriculture, plemented the Supply and Use Table
forestry and fisheries sector ex- (SUT) or Input-Output (IO) framework
panded by 3.84%, contributing 5.59% to harmonize production and ex-
to overall GVA. The industrial and penditure data, a statistical discrep-
construction sector grew by 8.33%, ancy remains in the GDP calculation.
accounting for 42.20% of GVA, while In the first half of 2025, this dis-
the services sector rose by 8.14%, crepancy was around VND33 trillion
contributing the largest share at at current prices and VND42 trillion
52.21%. at constant prices. As a result, GDP
The GDP deflator for the first half growth measured by the expenditure
of this year increased by 3.2% year- approach—reflecting the demand
over-year, slightly below the average side—is estimated at only around
consumer price index (CPI), which 6.3%. It is worth noting that some
rose by 3.6% during the same period. countries use expenditure-based
This gap of 0.4 percentage point sug- GDP figures as their official measure
gests that sentiment-driven factors of economic growth.
may have exerted upward pressure Another notable development in
on consumer prices. the first half of 2025 was the con-
On the demand side, final con- tinued dominance of production
sumption in the first half of the year materials in Vietnam’s import struc-
increased by 7.95% year-over-year, ture. Imports of production inputs
while gross capital formation rose reached US$198.92 billion, account-
by 7.98%. However, the net export of ing for 93.7% of the total value of
goods and services recorded a sharp goods imports. In contrast, imports
decline compared to the same period for final consumption represented
in 2024. The trade surplus dropped just 6.4% of total goods imports.
from approximately VND58 trillion In terms of trade partners, the
in the first half of 2024 to just VND12 United States remained Vietnam’s
trillion in 2025. This significant re- largest export market, with export
duction suggests that the export price revenue reaching US$70.91 billion.
index for goods and services lagged China continued to be Vietnam’s
behind the import price index, with a leading source of imports, with
particularly notable disparity in the goods valued at US$84.7 billion. A
pricing of traded services. substantial share of Vietnam’s ex-

18 • July 10, 2025

 port-oriented production still relies tum in the near term, the country
The 7.52% GDP growth
reported by the General heavily on imports of input materials still holds significant potential to
Statistics Office for the first from China. meet its economic targets, provid-
half of 2025 is based on the The anticipated imposition of tar- ed certain key conditions are met.
supply-side, or production- iffs by the United States on goods Maintaining domestic political and
based, approach
transshipped through Vietnam may social stability, sustaining balanced
signal a potential wave of foreign diplomatic and trade relations with
direct investment (FDI) from China, major partners, and continuing to
particularly into supporting indus- promote core growth drivers will be
tries and raw material zones. Such a critical. If these factors remain in
shift would allow Chinese firms to place, Vietnam could not only stay on
partially bypass trade restrictions course with its current objectives but
while enhancing profit margins by also lay the groundwork for achiev-
leveraging Vietnam’s trade agree- ing double-digit economic growth in
ments and manufacturing capacity. the coming years.
While this trend could boost short- Second, it is crucial to approach
term economic indicators, potentially upcoming fiscal and monetary poli-
pushing GDP growth into double-dig- cies with caution and vigilance. While
it territory, it also raises structural GDP provides a snapshot of short-
concerns. If domestic businesses term economic performance, its
continue to rely primarily on low-val- significance diminishes if the econ-
ue-added processing, Vietnam may omy remains dependent on low-val-
struggle to capture a larger share in ue-added assembly and processing.
the value chain. In this context, the Therefore, in the immediate term,
ratio of gross national income (GNI) Vietnam should prioritize the fol-
to GDP could continue to decline. lowing actions: rapidly stabilize the
In such a scenario, capital outflows newly restructured two-level local
could grow faster than GDP itself. government system to ensure effec-
In addition, Vietnam recorded tive and efficient operation; swiftly
a merchandise trade surplus of address the development of support-
US$7.63 billion in the first half of ing industries; accelerate the estab-
2025, a significant decrease from the lishment of raw material zones; and
US$12.15 billion surplus recorded in expedite the modernization of the
the same period last year. The domes- tax system.
tic sector registered a trade deficit of In the long term, achieving com-
US$14.54 billion, while the foreign di- prehensive and sustainable develop-
rect investment (FDI) sector (includ- ment in Vietnam will depend on the
ing crude oil) reported a substantial successful implementation of the
trade surplus of US$22.17 billion. “four-fold transformation”: green
In summary, Vietnam’s economic transformation, digital transforma-
performance in the first half of 2025 tion, clean transformation, and crea-
points to two key conclusions. tive transformation.
First, the growth rate is approach- This strategic shift must be firm-
ing 8%, coming close to the revised ly anchored in the “four foundation-
target set by the National Assembly al pillars”—Resolutions 57, 59, 66,
in March 2025. This suggests that and 68—and guided by three sets
recent macroeconomic policies are of core principles (which are all in
largely aligned with intended ob- Vietnamese): “4Ks” (determination,
jectives, signaling effective policy persistence, patience, steadfastness),
direction. The second is that strong “4Qs” in Vietnamese (resoluteness,
growth has a positive spillover effect, vigor, ambition, victory), and “4Ts”
potentially enhancing Vietnam’s abil- (confidence, self-reliance, resilience,
NGUYEN TRUNG AU

ity to attract further foreign invest- and pride).

ment.
Therefore, while potential recipro- (*)
FPT University
cal tariffs from the United States may (**)
University of Economics and Business
weigh on Vietnam’s growth momen- - Vietnam National University, Hanoi

July 10, 2025 • 19

The SBV’s Policy Playbook Put To The
The 90-day suspension of reciprocal tariffs by the Trump administration expires on July 9,
2025. This is a focal point for the markets in the coming days and might be one of the key
reasons the exchange rate between the Vietnam dong and the U.S. dollar has come under
considerable pressure recently.

By Trieu Minh collectively manage about US$5 tril- the dollar as of June 30, 2025.
lion in reserves — said they plan to The exchange rate at commercial
increase gold holdings in the next banks also rose by about VND100 in
Diverging trends one to two years, while investors June, and by VND700–750 since the
The U.S. Dollar Index (DXY) de- outside the U.S. are leading a trend beginning of the year — up 2.9%.
clined a further 2.6% in June 2025 to of divesting from dollar-denominat- Meanwhile, the informal market
its lowest point in three years at 96.8. ed assets. In contrast, the euro and rate increased VND150 in June and
This marked the sixth consecutive Chinese yuan have emerged as top VND680 in the year to date, or 2.6%.
month of dollar decline. Compared to alternatives. As a result, the Vietnamese curren-
its 2025 peak of 110, the greenback Yet despite the weakening of the cy has depreciated sharply against
has lost 12% of its value. dollar on international markets, major currencies. According to cross-
According to a recent survey by the dollar/dong exchange rate has currency reference rates published
the Official Monetary and Financial steadily crept upward. Having edged by the State Bank of Vietnam (SBV),
Institutions Forum (OMFIF), the U.S. up by VND141 in May, the central ex- the dong has lost 15–16% against
dollar has fallen from the most fa- change rate climbed another VND74 the euro, Swiss franc, Brazilian real,
vored reserve currency last year to in June, bringing the total increase in Norwegian krone, and Danish krone;
seventh place today. One-third of the the first half of 2025 to VND717 — a 12% against the Japanese yen and
75 surveyed central banks — which 2.95% rise — reaching VND25,052 to British pound; 9–10% against the

20 • July 10, 2025

 EXCHANGE RATE BUSINESS

Treasury of Vietnam has purchased The U.S. Federal Reserve’s upcom-

nearly US$1.9 billion so far this year. ing meeting at the end of July is also
According to VDSC Securities, con- expected to result in another cut to
tinuous dollar purchases by the State the federal funds rate, after more
Treasury had significantly reduced than six months of holding off due to
the system’s foreign currency position inflation fears. A Fed rate cut would
Corporate demand for
to around US$750 million by mid-June help further narrow the interest rate
foreign currency remains
strong, as many domestic 2025 compared to early this year. gap between the dollar and the dong,
businesses are rushing Meanwhile, the corporate demand potentially reversing capital flows
to import goods and raw for foreign currency remains strong, and easing exchange rate pressure,
materials amid fears that as many domestic businesses are while supporting macroeconomic
geopolitical and military
conflicts could once again rushing to import goods and raw balance.
disrupt global supply chains materials amid fears that geopoliti- However, most forecasts sug-
cal and military conflicts could once gest that the upward trend in the
again disrupt global supply chains. dollar/dong exchange rate, mean-
The interest rate differential be- ing the dollar appreciation against
tween the dollar and the dong in the the Vietnamese dong, will persist
interbank market has contributed to through the second half of 2025 due
increased demand for holding dol- to ongoing tensions in foreign cur-
lars to profit from arbitrage oppor- rency supply and demand. VDSC
tunities. On June 23, 2025, the over- Securities notes that Vietnam’s trade
night dong interest rate plunged to surplus has been shrinking in recent
1.62% per year, the lowest level since months, while foreign investment
March 2024. As a result, the interest flows may shift depending on the
rate gap between overnight dollar clarity of tariff policies. Additionally,
and dong rates narrowed to levels growth pressures are likely to prompt
seen in September 2024. In response, increased credit expansion and pub-
ARCHIVES

the SBV resumed issuing treasury lic investment, raising concerns that
bills on June 24, 2025 after more than inflation expectations could fuel
three months of suspension. greater demand for holding on to the
Since then, interbank rates have dollar.

Test
steadily climbed, with the overnight VPBankS Securities adds that
rate spiking to 7.6% per year on June even if the Fed cuts interest rates,
30, a 6% increase in just one week. the dollar/dong exchange rate will
This surge came amid a typical continue to face pressure from
New Zealand dollar, Singapore dol- end-of-quarter liquidity squeeze as global economic and geopolitical
lar, Malaysian ringgit, Thai baht, and banks prepare financial statements. uncertainties, as well as unpredict-
South Korean won; and 5% against Consequently, the SBV injected a net able international trade policies.
the Chinese yuan. amount of over VND52.9 trillion into Although the SBV has adopted a
the banking system on June 30, hav- flexible approach and made time-
Key drivers ing already injected VND39.9 trillion ly interventions, such as selling
First, the fact that Vietnam is named during the previous week, mainly foreign currency via forward con-
among the countries most heavily tar- on June 26 and 27. The sharp rise in tracts, high-season import demand,
geted by U.S. reciprocal tariffs has dong interest rates has helped nar- fragile FDI inflows, and potential
led to sustained pressure on the dol- row the interest rate gap between weakening of the trade balance will
lar/dong exchange rate. Although the dollar and the dong, easing the likely keep the dong under depre-
Vietnam has been in active negotia- exchange rate pressure. ciation pressure.
tions for a better trade deal with the In a related development, Paulo
U.S., it is unlikely that the U.S. tariff Outlook Medas, head of the IMF Article IV
on imports from Vietnam would re- The 90-day suspension of recipro- Consultation Mission to Vietnam, re-
turn to previous levels. This would cal tariffs by the Trump administra- cently remarked that Vietnam should
not only negatively affect Vietnam's tion expires on July 9, 2025. This is remain focused on maintaining in-
export sector but also dampen foreign the focus of financial markets and flation expectations. Allowing ex-
investment activity. One silver lining may be the main reason for the re- change rate flexibility will be crucial
is that the depreciation of the dong cent pressure on the dollar/dong as the economy adjusts to external
could help offset some of the adverse exchange rate. A trade agreement shocks. He also suggested that some
effects of those tariffs. between Vietnam and the U.S. with degree of monetary easing should be
While the foreign currency supply a reasonable tariff, the most antici- considered if global interest rates fall
risk eases, domestic demand remains pated scenario, could help ease forex as expected and domestic inflation
high. Data showed that the State market concerns. subsides.

July 10, 2025 • 21

 Among the top ten performing
stocks, four belonged to the
banking sector, reflecting
investor optimism that the
industry would continue to
benefit from expansionary
monetary policies

LE VU
TARIFFS MAKE THINGS
a gain of more than 4% over the same
period.
Notably, MSCI’s decision on June 24

UNPREDICTABLE
not to include Vietnam in its watchlist
for a status upgrade had no impact
on the market, as this outcome was
widely anticipated. Currently, MSCI
In the near term, the stock market is expected to remain is not the entity reviewing Vietnam’s
volatile, as investors await official announcements on stock market for an upgrade. Instead,
attention is focused on FTSE, which
potential trade agreements between the United States and is expected to make a decision in
its partners. The uncertainty stems from the upcoming September. Encouragingly, Vietnam
is meeting nearly all of the criteria
expiration of President Donald Trump’s 90-day pause on required for an upgrade under FTSE’s
reciprocal tariffs, set to end on July 9. classification system. In fact, over the
past 12 months, MSCI has offered a
positive assessment of Vietnam, ac-
knowledging the country’s substan-
By Trieu Duong with a 3.3% gain—its highest level tial progress and ongoing reforms
in more than three years, at 1,376 aimed at enhancing the domestic
points. stock market.
Unexpected June Global financial markets, shaken Large-cap stocks once again played
Despite the unsettling news sur- by the turmoil following Israel’s sur- a major part in the growth momen-
rounding the military conflict be- prise attack on Iran, also rebounded tum of the VN-Index. Specifically,
tween Israel and Iran in early June, swiftly after the two nations reached the 10 biggest contributors to the
Vietnam's stock market demonstrat- a ceasefire agreement. For exam- 44-point increase in the VN-Index
ed remarkable resilience, remaining ple, U.S. markets responded with last month are TCB (6.4 points), MSN
largely unaffected. Although there strength: the S&P 500 and Nasdaq (5.4 points), CTG (4.6 points), STB
was a brief correction during the ini- Composite surged by nearly 5% and (2.7 points), VPL (2.5 points), HPG
tial trading days of the month, the over 6% respectively, both setting (2.3 points), MBB (2.1 points), GAS (2
VN-Index gradually recovered in the new record highs. Meanwhile, the points), GVR (1.7 points) and VNM
latter half, ultimately closing June Dow Jones Industrial Average posted (1.6 points). On the contrary, VIC and

22 • July 10, 2025

 STOCK MARKET BUSINESS

VRE caused the index to lose 1.5 and ling catalysts for continued market Value-Added Tax officially took ef-
1.4 points, respectively. growth in the second half of the year, fect on July 1, introducing a 10% VAT
Among the top ten stocks, four including a potential stock market up- on certain securities industry activi-
belonged to the banking sector, re- grade, institutional reforms, and ac- ties that were previously exempt. As
flecting investor optimism that the celerated infrastructure development. a result, many securities firms have
industry would continue to benefit Regarding the anticipated market raised various service fees, including
from expansionary monetary policy. upgrade, VNDirect projects that FTSE those related to securities depository,
Preliminary estimates suggest that will announce Vietnam’s elevation to transfers, withdrawals, derivatives
in the second quarter of 2025, the secondary emerging market status clearing, and collateral asset man-
banking group posted average year- during its review in September. This agement.
over-year pre-tax profit growth of move is expected to benefit the secu- In addition, the Ministry of Finance
12–15%. This robust performance rities sector and large-cap stocks in- recently released a draft decree to
was fueled by several key drivers: cluded in the FTSE Vietnam Index— amend and supplement several ar-
strong credit expansion in the first such as HPG, VIC, VCB, VNM, MSN, ticles of Decree No. 126/2020/ND-
half of the year, a notable increase and SSI. VNDirect further identifies CP, providing further clarification
in non-interest income—particularly several key sectors poised to play a on the Law on Tax Administration.
from bancassurance—and enhanced pivotal role in 2025, including bank- Specifically, the proposal addresses
operational efficiency, as evidenced ing, real estate, consumer and retail, personal income tax on individuals
by a lower cost-to-income ratio (CIR), technology, fertilizers, and aviation. receiving stock dividends or bonus
thanks to accelerated digital trans- In the near term, heightened vola- shares as existing shareholders. The
formation efforts. tility is expected in the stock market ministry suggests revising the tim-
With respect to foreign trading ac- as investors await clarity on poten- ing of tax deduction, declaration,
tivity, despite the upward trend in tial trade agreements between the and payment to the point when such
the exchange rate between the U.S. U.S. and its trading partners. The shares are granted. This change may
dollar and the Vietnam dong, net 90-day suspension of reciprocal tar- prompt more investors to sell shares
selling by foreign investors was rela- iffs imposed by President Donald prior to the record date in order to
tively moderate compared to previ- Trump is set to expire on July 9. As avoid the new tax implications.
ous months. During the final week U.S. Treasury Secretary Scott Bessent Looking ahead, upcoming mac-
of June, foreign investors recorded a remarked earlier this month, “We roeconomic data for the first half
net sell of VND370 billion across all have countries that are negotiating in of 2025—set to be released in the
three exchanges, with the majority good faith,” but he also warned, “If coming days—is expected to influ-
concentrated on the HNX (VND268 we can’t get across the line because ence market sentiment, alongside
billion). Interestingly, in the last trad- they’re being recalcitrant, then we the semi-annual earnings season of
ing session of the month (June 30), could spring back to the April 2 lev- listed companies, which could help
foreign investors made a surprise els.” sustain the current growth momen-
shift to net buying, totaling VND541 Maintaining a more optimis- tum. According to VNDirect, listed
billion. Noteworthy transactions in- tic stance, VNDirect forecasts that firms are projected to achieve profit
cluded net purchases of VND150 bil- Vietnam is likely to achieve a favor- growth in the range of 14–15% this
lion in MSN shares and VND129 bil- able outcome in the ongoing trade year, reinforcing the VN-Index’s valu-
lion in NLG shares. negotiations, with reciprocal tariffs ation with a forecasted year-end P/E
potentially being reduced to an av- ratio of 13.5.
Unpredictable July erage of 16–22% under its base case Technically, the VN-Index is eye-
From a technical standpoint, the scenario. Additionally, the firm an- ing its next psychological milestone
VN-Index is showing signs of up- ticipates that the U.S. Federal Reserve at 1,400 points, contingent upon a
ward momentum, having success- will implement two interest rate breakout above the resistance level
fully breached the key resistance cuts in the second half of 2025, with near 1,380 points during the first
level of 1,350 points. In light of this the first likely occurring as early as week of July. While the VN30 has
development, VNDirect Securities July—an action expected to help keep already hit a new high for the year,
Corporation recently revised its year- the U.S. Dollar Index (DXY) below the the VNMidcap and VNSmallcap indi-
end forecast for the VN-Index from 100 mark. ces have yet to return to their March
1,400 to 1,450 points—representing a That said, the stock market is highs. This indicates a potential re-
14% increase compared to the end of facing some less favorable develop- allocation of capital into mid- and
2024. The firm cited several compel- ments. Law No. 48/2024/QH15 on small-cap stocks in the near term.

July 10, 2025 • 23

BUSINESS TRADE & INVESTMENT PROMOTION

INVESTMENT
What: Japan tops foreign investment in
Danang Hi-Tech Park
How: Japan is currently the leading
foreign investor in Danang’s Hi-Tech Park
and industrial zones, with 49 projects
totaling US$695.9 million. Overall,
Japanese investors have been involved
in 261 projects across the city, with a
combined registered capital of US$1.14
billion. Of this, nearly 61% has been

MINH HOANG
channeled into high-tech and industrial
developments, according to the Danang
People’s Committee. Nguyen Thi Anh
Thi, vice chairwoman of the committee,
INFRASTRUCTURE said Danang is focusing on high technol-
What: Work on HCMC-Long Thanh expy expansion set to start on August 19 ogy, innovation, and tourism. The city is
How: The Vietnam Expressway Corporation (VEC) is urgently finalizing all necessary working to attract more foreign invest-
procedures so that it can begin work on a project on August 19 to widen the HCMC-Long ment by capitalizing on its strategic loca-
Thanh Expressway. VEC has so far appointed three consulting firms to carry out surveys, tion and well-developed infrastructure.
prepare the feasibility study, and stake out the land for site clearance. The feasibility study Danang has established cooperation
has been finalized and submitted for evaluation, with approval anticipated between July agreements with over 22 localities in Ja-
15 and 20. At the same time, the consultation and appraisal procedures for the environ- pan, including formal partnerships with
mental impact assessment are underway at the Ministry of Agriculture and Environment. six cities such as Yokohama, Kawasaki,
Regarding land acquisition, under the investment policy, site clearance will be carried out and Nagasaki.
as separate sub-projects managed by the People’s Committees of HCMC and Dong Nai
Province. Once the feasibility study is approved, VEC will hand over site markers to local ENVIRONMENT
authorities to proceed with the next steps. What: Vietnam to join global aviation
carbon offset scheme in 2026
How: Vietnam will join the carbon
What: Vietnam completes first conductor What: Nearly VND100 billion allocated offsetting and reduction scheme for
installation for 500kV transmission line for National Highway 217 maintenance international aviation (CORSIA) from
How: Vietnam has completed the first How: The Ministry of Construction has January 1, 2026, marking a key step to-
conductor installation for the 500kV authorized the Department for Roads of ward greener aviation but also posing
Lao Cai-Vinh Yen power transmission Vietnam to carry out routine maintenance financial challenges for local airlines.
line. The section from tower VT9 to and periodic repairs of National Highway The Civil Aviation Authority of Vietnam
VT16 is part of Package HH1 and was 217, with nearly VND100 billion allocated (CAAV) announced on June 30 that the
carried out by a consortium of Song for the effort. The road section slated for International Civil Aviation Organiza-
Da Installation and Services JSC, PC1 maintenance stretches five kilometers, tion (ICAO) has confirmed Vietnam’s
Group JSC, and Dong Anh Steel Tower running through the former communes of participation in the voluntary phase
Manufacturing Company. Package HH1 Ha Dong and Ha Linh and connecting to of CORSIA, a global initiative aimed at
includes 51 towers, all located in Lao Cai the North-South Expressway interchange. carbon-neutral growth in international
Province. It was also the first package to Although this segment was previously aviation. To prepare for this transi-
complete foundation construction. Do earmarked for expansion, the Department tion, the CAAV has implemented a
Quang Khai, deputy director of Electric- for Roads of Vietnam noted that due to monitoring, reporting, and verification
ity Power Projects Management Board budget constraints, investment could not (MRV) system for emissions, submit-
No.1, said the completion of the first be arranged during the 2021-2025 period. ted annual emission data to ICAO
conductor installation represents an im- Under the national road network master for 2019-2024, and issued regulatory
portant achievement. The Lao Cai-Vinh plan for 2021–2030 with a vision to 2050, guidelines on aviation fuel consump-
Yen 500kV power line is part of Viet- the 210-kilometer National Highway 217 tion and carbon dioxide emissions. The
nam’s broader effort to enhance power passes through Thanh Hoa Province. It is CCAV has also held consultations with
transmission capacity in the northern classified as a class III-IV road, with two to stakeholders and reviewed relevant
region. The project is considered critical four traffic lanes, but the section through policies from ICAO and the European
for ensuring grid reliability and meeting the former Ha Dong and Ha Linh com- Union to align with global sustainabil-
growing electricity demand. munes remains a class V road. ity standards.

24 • July 10, 2025

 TRADE & INVESTMENT PROMOTION BUSINESS

HCMC STOCK EXCHANGE HANOI STOCK EXCHANGE

1,415.46 HNX-INDEX 237.68
VN-INDEX 1,402.06 235.90
1,386.97 231.62 232.51
1,384.59 1,381.96 230.93

02-07 03-07 04-07 07-07 08-07 02-07 03-07 04-07 07-07 08-07

TRADING VOLUME (MILLION) TRADING VOLUME (MILLION)

1,407.953 137.987
1,299.239 130.036
1,220.152 105.887
105.522
934.750 92.236
875.891

02-07 03-07 04-07 07-07 08-07 02-07 03-07 04-07 07-07 08-07

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BUSINESS TRADE & INVESTMENT PROMOTION

SOME IMPORTS TO VIETNAM IN JUNE 2025

Description Unit Qty/Value Description Unit Qty/Value Description Unit Qty/Value
Seafood ......................................................................US$ .................. 273,549,124 Chemical products.....................................................US$ .................. 651,186,874 Iron and steel scraps..................................................US$ ..................167,299,425
Milk and dairy products ............................................US$ ..................149,690,557 Pharmaceutical materials .........................................US$ ....................43,676,526 Iron and steel .............................................................US$ ..................833,779,502
Vegetables and fruits ................................................US$ ..................214,043,921 Pharmaceutical products ..........................................US$ ................. 468,885,759 Iron and steel products .............................................US$ ..................695,701,760
Cashew nuts ..............................................................US$ ..................419,206,980 Fertilizers ...................................................................US$ ..................301,965,258 Other metals ..............................................................US$ ..................907,315,089
Wheat ........................................................................US$ ....................88,299,181 Perfumes, cosmetics and sanitation products.........US$ ..................122,535,026 Products from other metals ......................................US$ ..................423,744,701

Source: General Department of Vietnam Customs

Corn ............................................................................US$ ..................122,253,274 Pesticides and materials ...........................................US$ ....................85,215,682 Computer, electronics and components ..................US$ ............. 11,729,210,710
Soy bean.....................................................................US$ ..................128,271,664 Plastic materials ........................................................US$ ...............1,059,019,080 Household electric appliances and components .....US$ ..................189,422,986
Vegetable oil and fat .................................................US$ ..................134,422,340 Plastic products .........................................................US$ ................. 904,864,074 Phones and components...........................................US$ ...................790,131,168
Confectioneries and cereal products ........................US$ ....................48,331,379 Rubber .......................................................................US$ ..................240,032,751 Cameras, camcorders and components ...................US$ ..................198,543,486
Other processed food ................................................US$ .................. 116,918,591 Rubber products ........................................................US$ .................. 107,233,313 Machinery, equipment and accessories ...................US$ ...............5,095,409,614
Animal feed and material .........................................US$ ..................334,498,216 Wood and woodwork ................................................US$ ..................296,229,247 Electrical wire and cable ...........................................US$ ..................361,809,631
Tobacco materials......................................................US$ ....................80,777,997 Various kinds of paper ...............................................US$ ...................197,731,747 Automobiles .............................................................US$ ..................406,926,434
Ores and minerals .....................................................US$ ..................242,865,146 Paper products ..........................................................US$ ..................112,328,344 Automotive accessories .....................................................................460,982,766
Coal ............................................................................US$ ..................645,463,992 Cotton ........................................................................US$ ..................267,212,045 Motorbikes and components ....................................US$ .....................63,817,198
Crude oil .....................................................................US$ .................. 557,103,406 Fibers and yarns.........................................................US$ .................. 241,505,937 Other vehicles and parts ...........................................US$ .................. 112,970,915
Various fuels ..............................................................US$ .................. 694,141,370 Fabrics ........................................................................US$ ...............1,219,794,937 Others ........................................................................US$ ...............1,876,839,508
Liquefied gas .............................................................US$ ..................189,610,900 Materials for textile, garment, leather and footwearUS$ ................588,506,418 Total imports .............................................................US$ .............36,662,641,126
Other fuel products ...................................................US$ ..................140,977,800 Glass and products ....................................................US$ ..................121,978,863
Chemicals...................................................................US$ ..................667,008,155 Precious stone and metals and products .................US$ ....................71,400,359 Foreign-invested enterprises ...................................US$ .............25,874,210,545

PRICES OF SOME ESSENTIAL COMMODITIES (IN VIETNAMESE DONG)

Commodities Unit Selling prices as of July 08 1 week before 1 month before 6 months before
HCMC HCMC HCMC HCMC
SJC Gold 1/10 tael 12,100,000 12,070,000 11,850,000 8,530,000
U.S. dollar US$1 26,305 26,310 26,200 25,548
Euro €1 31,494 31,621 30,159 27,071
Ron 95 petrol Liter 19,900 21,570 19,690 20,740
Mid-grade rice Kg 11,000 (***) 11,000 (vi) 11,000 (vi) 11,000 (vi)
Pork Kg 72,000 (Hoc Mon Wholesale Market) (**) 90,000 90,000 90,000
Orange Kg 10,000 (Thu Duc Wholesale Market) (*) 10,000 18,000 18,000
Potato Kg 35,000 (Thu Duc Wholesale Market) (*) 40,000 21,000 21,000

Source: [Link]
Papaya Kg 13,000 (Thu Duc Wholesale Market) (*) 17,000 17,000 17,000
Mackerel Kg 185,000 (Binh Dien Wholesale Market) (**) 150,000 150,000 150,000
RE Sugar Kg 17,000-19,000 (iv) 17,000-19,000 (v) 17,000-19,000 (v) 17,000-19,000 (v)
(*): September 25, 2023 ; (**): August 21, 2023; (***): Dong Thap Province, July 2, 2021 (iv): northern provinces, July 3, 2021; (v) northern province; (vi) Dong Thap Province.

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 AGRICULTURE BUSINESS

COFFEE FARMERS ON EDGE

The sharp fall in coffee prices has caught many stockholders of high-priced beans off guard.
Concern is mounting among farmers about the outlook for the next harvest.

By Nguyen Quang Binh tic market thus was far from the peak prices at many times, many coffee
of VND135 million per ton and hov- producing countries have expanded

F
ered around VND90 million per ton farming areas to increase produc-
rom the start of the 2024–2025 in the final week of June. Those who tion. Many countries which have not
coffee season through early thought that the price of VND110-120 grown coffee previously have now
2025, futures prices on the million per ton was low to buy in an- jumped into the bandwagon to vie for
London Robusta Coffee Exchange— ticipation for a price rise now suffer a share of the lucrative market.
commonly used as a benchmark by losses of VND20-30 million per ton.
Vietnamese coffee traders—peaked Prudent with the demand-
several times at US$5,800 per ton. Would coffee prices recover? supply factor
Meanwhile, on February 10, 2025, the A quick answer to this question is According to the latest forecast by
New York Arabica Coffee Exchange, “very difficult”. Why? the U.S. Department of Agriculture
where prices guide raw coffee trading The surge in Robusta coffee prices (USDA), global coffee production for
and roughly 60% of the world’s coffee began at the start of the 2023–2024 the 2024–2025 crop year is projected
volume is transacted, recorded a high crop year, when futures hovered at approximately 174.4 million bags,
of US$9,480 per ton. around US$2,300–2,500 per ton. marking a 2.98% increase over the
Prices steadily climbed as reports 2023–2024 season. Looking ahead,
The drastic price fall emerged of severe droughts in major output for the 2025–2026 crop is es-
The sharp decline in prices on the coffee-producing regions of Brazil timated to reach 178.68 million bags,
two coffee exchanges through the and Vietnam. The rally intensified up 2.45% from 2023–2024. Brazil,
end of June 2025 has left traders following news of hoarfrost damag- the world’s largest coffee producer,
grappling with heightened market ing parts of Brazil’s coffee belt, fur- is expected to contribute 65 million
volatility. In retrospect, the three ther tightening supply. As a result, bags, comprising 41 million bags
months following U.S. President many exporters in both countries of Arabica and 24 million bags of
Donald Trump’s announcement of struggled to meet delivery commit- Robusta. Indonesia’s output is fore-
the new tariff policy now appear to ments, prompting some importers to cast at 11.25 million bags, reflect-
mark a pivotal turning point in glob- turn to the futures market—buying ing a modest gain of over 2%, while
al coffee pricing. “paper coffee” at elevated prices to Vietnam’s 2025–2026 crop, beginning
Market analysts can make this hedge against losses in the physical in October, is projected at 31 million
observation without stirring con- coffee trade. bags, a 6.9% increase from the previ-
troversy: Robusta coffee futures Coffee traders found themselves ous year. The USDA projects global
plunged from a peak of US$5,850 per in a precarious position—like riding coffee consumption at just 169.36
ton to a low of US$3,459, briefly re- a tiger—the more aggressively they million bags, leaving a surplus of
bounding to US$3,600 before settling bought, the more prices surged. The over nine million bags.
at US$3,661 per ton on June 27—a situation was further inflamed by From a supply-demand perspective,
staggering drop of nearly US$2,200. short buying on futures exchanges this imbalance offers little indication
Arabica prices fell even more sharp- by financial investment funds, trig- that prices will rebound in the near
ly, tumbling from a high of 429.95 gered by news of the EU Deforestation term. Whether coffee prices will re-
cents per pound to a low of 293.15 Regulation (EUDR), which bans the bound in the near-term hinges largely
cents, and closing at 303.75 cents circulation of agricultural and forest on external forces. Key among them is
per pound—equivalent to a loss of products linked to deforestation. whether the U.S. Federal Reserve will
US$2,782 per ton. Speculation mounted that, if the implement significant interest rate
Thus, all price accumulations on EUDR were implemented without fur- cuts before year’s end. Weather risks
the Robusta coffee exchange over the ther delay, prices on the London cof- also loom. Geopolitical tensions and
past one year plus have vaporized. fee exchange could soar to US$6,000– trade disruptions continue to cast un-
The return on the Robusta coffee ex- 7,000 per ton—or even higher. This certainty over the global coffee sup-
change over 52 weeks ending June 27 bullish outlook has only deepened ply chain. These external variables
was over 21% negative. Price drops of the supply crunch, as many farmers are likely to be the primary drivers
a few hundred U.S. dollars in a day are now withholding their stocks, of price movements on the futures
was commonplace in June, so the and available coffee increasingly exchanges in the coming months. As
return on the exchange that month ends up in the hands of speculators such, any forecast for a price recovery
also lost nearly 22%. betting on further price increases. should be approached with caution
The raw coffee price in the domes- After nearly three years with peak and a broader lens.

July 10, 2025 • 27

LIVING EXPAT LIFE

MORE THAN
JUST A STOPOVER
After more than a decade abroad, Joanna Mierzwa has discovered
her true home in the dynamic and ever-evolving city of Ho Chi Minh.
The Polish expatriate, entrepreneur, and mother to a Vietnamese-
speaking daughter shares how Vietnam’s warmth, safety, and
entrepreneurial energy have shaped her journey—enabling her
to build a community-driven fitness business from the ground up.
In a conversation with The Saigon Times, she reflects on cultural
contrasts, the experience of raising a child in a deeply family-oriented
society, and why, for her, Vietnam is far more than just a stopover—it Joanna Mierzwa, co-founder of
CrossFit Thao Dien
is a place to flourish.

The Saigon Times: You have been That energy inspires you to work hard the excitement even bigger — espe-
living in Vietnam for eight years. and go after your goals. Interestingly, cially when they find out she speaks
Looking back, what do you think some Vietnamese friends told me Vietnamese. It is like winning the lot-
has made you feel so connected to that Vietnamese are not known for tery!
this country and choose to build a being nice — but they do not realize People love chatting with her —
life here? how rare it is in the world for people and sometimes with me, too! We
Joanna Mierzwa: I left Poland over to stop and help you if you fall off are now approaching a more chal-
10 years ago (October 2014). Honestly, your bike. That happens here. lenging phase: choosing a school.
I feel like Vietnam chose me. I love We are in the privileged position of
living in HCMC — the warm weath- As a mother and a business owner, having many options — interna-
er, amazing food, and the interna- how do you feel about raising a tional schools, bilingual schools. It
tional community make it special. young child in Vietnam, especially can actually be overwhelming. But
Vietnamese people are incredibly since your daughter speaks that privilege comes with a cost. If
welcoming. It is a safe country where Vietnamese so well? you are not sponsored by a company,
you are not afraid to go out at night, In Vietnam, children are seen as like in my case, you have to factor in
where you feel secure with your treasures — as happiness. Regardless the high cost of tuition as a business
child, and where kids — whether lo- of age or gender, everyone adores owner.
cal or foreign — are treated like na- kids. I love how excited people get Before school age, raising a child in
tional treasures. when children walk into restaurants; Vietnam is so easy thanks to amaz-
Vietnamese people are hardwork- the whole staff starts smiling. Having ing Vietnamese nannies who help
ing and incredibly entrepreneurial. a blonde girl with blue eyes makes raise our kids with love in a safe
environment. They not only care for
the kids but also make sure they are
well-fed, dressed, and even help man-
age the household. Thank you, Hanh!

You once mentioned that Poland

and Vietnam share some
similarities. If you could pick three
PHOTOS: COURTESY OF JOANNA MIERZWA

things that feel most alike, what

would they be?
Oh dear — Asia and Europe can
feel like different planets sometimes!
But I do see similarities. Vietnamese
hospitality reminds me of Polish hos-
pitality. Also, many Vietnamese men
Joanna Mierzwa pictured like to drink, even though some of
with her business partner at them are allergic to alcohol — that
their gym in Thao Dien feels quite familiar, too! And both
Polish and Vietnamese people are

28 • July 10, 2025

 Community members take part in a half-day workout event celebrating the anniversary of CrossFit Thao Dien

extremely hardworking. It is a strong it! I strongly believe in mid-day naps ginning, we implemented a European-
shared value. to boost productivity — and I still do style work culture — based on respect
it. Now that I have a baby, I honestly and care. I try to show my staff that
When you first arrived in Vietnam, cannot imagine going through the you can be a leader and still treat peo-
did you ever imagine the country day without it. ple with empathy and dignity.
would change so rapidly? What part Traditional workplace hierarchies
of that transformation makes you Opening a business in Vietnam in Asia often place the boss above ev-
feel most proud? must have been an exciting yet eryone else, and it can lead to a lack
When I arrived over 10 years ago, I challenging journey. Can you share of care for employees. But that is not
knew almost nothing about Vietnam. the story of the first time you had to the case in our gym. I am proud to
It was both a cultural and climate sign so many papers when setting say our Vietnamese staff appreciate
shock. But over time, I fell in love up CrossFit Thao Dien? this approach — and I think they en-
with the country and its people. CrossFit Thao Dien is my dream joy working with us because of it.
So much has changed, but what come true. It has been challeng-
is closest to my heart is the prog- ing — and still is. I am a first-time If you could send a message to
ress around disabilities and mental business owner, in a foreign country, other foreigners considering
health. What makes me most proud managing a foreign staff and many moving to Vietnam to live and work,
is seeing young people openly talk international members. That makes what would you tell them based on
about mental health — they have everything very dynamic. your own experience?
jumped two generations forward in One thing I learned quickly: the If you are ready to move and look-
just a decade in terms of awareness importance of the red stamp and the ing for a place, Vietnam is truly an
and acceptance. That gives me hope. proper signature! I never realized be- amazing option — for living, raising
I am also glad to see more people fore how important it is to use a blue kids, and starting a business.
embracing resistance training — pen — not black! There were many • The expat community is incred-
something I am passionate about moments where I had to ask, “What ible — you will not want to leave.
and advocate for. I believe a strong, exactly are the requirements for this Many people say they have never
healthy young generation can bring document?” found community like they did in
about real change, especially in sup- The amount of paperwork and how HCMC.
porting those who need help. Even if often I had to sign things was hon- • The warmth and welcome of
systems take time to evolve, the most estly ridiculous — but now I laugh Vietnamese people is something spe-
important thing is that society itself about it. cial.
is changing. • It is a safe environment.
You noticed a strong sense of And even though Vietnam is still
You talked about “noon naps” — respect between superiors and considered a developing country,
something very common in Vietnam subordinates in Vietnamese many aspects of life here are more
but rare in Poland. Have you ever workplaces. How has this advanced and progressive than peo-
tried adapting to this local habit? influenced the work culture you are ple realize — even compared to some
How did you feel about it? building at CrossFit Thao Dien? Western countries.
I have actually always had this hab- At CrossFit Thao Dien, from the be- Reported by The Ky

July 10, 2025 • 29

LIVING PHOTO ESSAY

Phu Yen Through 3

The Lens
Text and photos by Narin

P
hu Yen, a tranquil destination on Vietnam’s south-central
coast, lives up to its name which translates to “prosperity”
(phú quý) and “peacefulness” (yên bình). It is a place where
nature’s quiet splendor meets cultural heritage, offering a
deeply calming escape from the chaos of modern life. More than
just a destination, Phu Yen is a sanctuary for the soul.
Each corner of this coastal land tells a story — from ancient
architecture to peaceful village life, from golden-hour seascapes
to spiritual landmarks that hold Vietnam’s earliest written
legacy. Through this visual journey, we invite you to explore the 4
timeless charm of Phu Yen.

30 • July 10, 2025

 7

1. A traditional ancestral
house with a signature
yellow hue, preserved
across generations
9
2. A lotus flower blooms in the
courtyard of an old Phu Yen
home
3. Locals sell fresh produce along a village road
4. Da Rang Bridge carries the North–South railway over the Da
Rang River in Tuy Hoa
5. Rear view of the 130-year-old Mang Lang Church, a historical
landmark in Phu Yen
6. Golden light casts a soft glow over the ancient stonework of
Mang Lang Church
7. Stained-glass windows in Gothic style mark the church’s unique
architectural identity
8. The church houses “The Eight-Day Sermon,” Vietnam’s first
6 romanized-script book
9. A rare close-up of the historic text written by missionary
Alexandre de Rhodes

July 10, 2025 • 31

10

11 13

12 14

32 • July 10, 2025

 PHOTO ESSAY LIVING

10. Coastal aquaculture lines the sea, supporting the

livelihoods of local fishermen
11. A sandy trail leads to the beach, framed by wild grass
and golden sunlight
12. Late afternoon light bathes the national highway in
warmth and stillness
13. A coastal plant pushes through the sand, thriving in a
harsh environment
14. Driftwood and gentle waves meet at sunset in a quiet
fishing village
15. Sunset over an empty beach captures Phu Yen’s
untouched coastal beauty
16. A warm-toned sunset settles over Tuy Hoa, painting the
city in peace
17 17. Phu Yen’s famous chicken rice — simple, satisfying, and
full of local flavor

16

15

July 10, 2025 • 33

 Living SPOTLIGHT

Free swimming lessons for children

in Can Tho
Whales spotted off Vietnam’s Do Thi Ngoc Quy, a physical education teacher at
central coast Tra Noc 2 Primary School in Can Tho City, has provided
Whales have been sighted near the shores of Gia free swimming lessons to children from disadvantaged
Lai and Dak Lak provinces in central Vietnam in recent families for over a decade. Her lessons help equip them
days, drawing attention from locals and tourists. with essential survival skills in a region crisscrossed by
A mother whale and her calf were observed off the rivers and waterways.
coast of Vung Boi in Gia Lai’s An Luong Commune Since launching the program nearly ten years ago,
on June 30. The adult whale was estimated to be 10 Quy has taught hundreds of children how to swim.
meters long, with the calf measuring about 6-7 meters, Some have even gone on to compete in local and
local resident Dang Van Hai told the Tuoi Tre news site. national swimming tournaments.
A few days earlier, Hai had also spotted a lone whale, Each year, an estimated 200 children learn to swim
about 10 meters long, surfacing in the waters off Nhon through the free classes. Swimming is not just a sport,
Hai. but also a survival skill, especially for children living in
On the morning of July 1, a large whale was seen the Mekong Delta, Quy told Tuoi Tre news site. “We will
feeding near Mui Dien in Hoa Xuan Commune, Dak Lak keep this class going to help more kids stay safe.”
Province. Nguyen Kim Phung, a 32-year-old fisherman,
said he saw the animal around 6 a.m. while out at sea. Zero-dong shop opened by
It surfaced for about five minutes before diving back healthcare workers
underwater. A free shop was opened by doctors and nurses
The frequent appearance of whales near the shore in the Son Tay Health Center (Quang Ngai Province)
is a positive sign indicating that the local marine to lend a helping hand to needy patients. With the
environment is steadily improving. slogan “Anyone in need can come to take (what
they need), everyone can join hands to contribute,”
Bat Trang Pottery Museum among the shop has become a lifebuoy for poor patients at
world’s most beautiful buildings the health center over the past six years.
The Bat Trang Pottery Museum has been ranked 15th The zero-dong shop offers diapers, milk,
on a list of the 24 most beautiful buildings in the world confectioneries, cooking oil, rice, monosodium
by the UK-based Time Out magazine. glutamate, and used and new clothing for
Located in the historic Bat Trang pottery village in children and adults, all free of charge. Dr. Pham
Hanoi, the museum is recognized for its striking design Huu Nghia, one of the founders and operators of
inspired by the potter’s wheel — a symbol of the the free shop, told [Link] that doctors and
village’s thousand-year-old ceramic tradition. nurses at the Son Tay Health Center opened the
The museum’s distinctive spiral form consists of shop in 2019 to help ease part of the burden for
seven large, interlinked blocks. Its structure combines poor patients.
slender reinforced concrete with traditional materials Over the past six years, doctors and nurses at
such as terracotta tiles and ceramic bricks, allowing it the hematology department at the Quang Ngai
to integrate seamlessly into the cultural landscape. General Hospital have contributed used clothes
In 2023, the museum was also voted one of Vietnam’s and necessities twice per year to the free shop in
“Top 7 Impressions” by readers of Saigon Tiep Thi. the mountainous health center. So far, the zero-

34 • July 10, 2025

dong shop has handed over to needy patients some members who are parents wanted their children to
18,000 boxes of milk, 1,000 bottles of fish sauce and take part in running to stay away from electronic
cooking oil, one ton of rice, 65,000 garments, 1,000 devices, the running course for the kids was thus
pairs of slippers, and 500 briefcases. opened in summer this year. The kids attend a
running class every Sunday afternoon. Tran Ngoc
Live stream sale of lychees Thach, a trainer at the condominium’s gym and a
for farmers member of the Gia Hoa Runners Club, takes charge
After six hours of live selling, Pham Van Thinh, vice of training the kids.
chairman of Bac Ninh Province, and his aids sold up Every Sunday afternoon, the children and
to 54 tons of Luc Ngan lychees for local farmers. their parents gather in the shade yard of the
The special live sale took place on an condominium to start running lessons. Within an
e-commerce platform during the Luc Ngan hour, the kids are guided to do warmup, take part
Lychee Week held as part of the province’s digital in 400-meter relay or in 1km or 2km running, and
transformation plan. Thinh told [Link] that relax after running. According to the organizers,
he joined the live commerce as he believed that the running course for kids will last for at least 10
this could benefit lychee growers, adding that he months.
would like to encourage young farmers to enter
the global market. A man travels on foot across the
The provincial vice chairman said despite lacking country with a goose
online sales skills, he was confident in the quality of Nguyen Viet Vinh, a.k.a. Ty, 41, from Dong Nai
Luc Ngan lychees and he would like to share such Province has traveled on foot across the country
confidence to consumers. The outcome of the live with his goose over the past one and a half years.
sale exceeded the initial expectation: 54 tons of Departing from Vietnam’s northwestern region,
lychees were sold after six hours. The event received Ty and his white goose named Dona arrived at the
thousands of positive comments on social media. Ca Mau Cape National Park in Dat Mui Commune,
Orders continued to come from Hanoi City, HCMC, Ca Mau Province, on July 1. Walking his electric bike
the U.S., Australia and Japan. as a means to carry his belongings, Ty walked in the
As an official in charge of e-commerce and farm front while Dona followed him a few steps behind.
produce consumption of the province, Thinh had Whenever he took a rest in a hammock, the goose
invited IT experts to train live stream skills and lay under the hammock. Dona would swim when it
package design for local farmers free of charge. saw a pond or a canal in sight.
Ty made a “pair of shoes” of soft fabric for Dona
Free running course for children to protect its feet from injuries because of long-
With love for running, some residents at Gia Hoa distance travel. He also wore a shirt for the goose.
Condo in Phuoc Long Ward, HCMC, opened a free Along the way, he collected discarded bottles and
running course for the condominium’s children to cans for sale and bought food for him and Dona.
stay away from cellphones or TVs and bolster their Some people also gave food to him and his goose.
health during the summer. Others asked to buy Dona, offering him even up
Phung Ngoc Hien, head of Gia Hoa Runners Club to US$1,000 in cash, but he refused, saying that
with about 100 members who are residents at the the bird is his friend, not for sale, [Link]
condominium, told [Link] that because reported.

July 10, 2025 • 35

LIVING STAYING FIT

Complete abolition of carbohydrates

from your daily diet may be harm-
ful to your health, as it makes you
hungry continuously. Without strict
diets, you are at risk of having more
food and gaining weight.

CREATED BY AI
Smart may be harmful to your health, as it makes you hungry
continuously. Without strict diets, you are at risk of having

Carbohydrate
more food and gaining weight.
No-carb diets also give rise to a deficiency of essential

Consumption
nutrients for the brain, which may cause fatigue, amnesia
(memory loss), headache, dizziness and even stress. It also
causes a lack of some vitamins, especially vitamin B com-
plex, which may cause nutrition imbalance, asthenia and
metabolism disorders.
Tips on how to consume Long-lasting no-carb diets may cause blood sugar disor-
carbohydrates smartly to lose weight ders, resulting in trembling, dizziness and hunger. It may
also cause a shortage of essential minerals for the body.
safely recommended by Suc khoe &
Smart carb consumption
Doi song news site Instead of complete abolition of carbohydrates, restrict-
ing the use of carbs logically can help benefit health and the

C
weight-losing process.
arbohydrates are the main source of energy for the . Choosing complex carbohydrates: Giving first priority
body. If you consume more carbohydrates than the to complex carbs such as brown rice, oats, sweet potatoes
body’s need, the redundant carbs will be turned and whole grains instead of refined carbs (white rice, white
into glucose, which will be stored in the liver and muscles bread and sweets). Complex carbohydrates supply stable en-
under the form of glycogen. The redundant glycogen will be ergy, dietary fiber and vitamins.
turned into fat that causes weight gain. . Controlling the amount of carbohydrates: Reducing the
Intake of refined carbohydrates like white rice, white amount of carbs in every meal instead of total abolition. A
bread, sugar and sweets may increase the blood sugar healthy meal should be balanced among vegetables, fruits,
abruptly and then drop quickly. This makes you hungry proteins and carbohydrates.
for snacks or more food in the next meal, which increases . Combining proteins and dietary fiber: It is better to have
calorie intake. The reduction of carbohydrate consumption green vegetables, fruits and protein-rich foods such as lean
can help you lose weight, but a complete abolition of carbo- meat, fish, eggs, beans and peas to supply sufficient nutri-
hydrates is not recommended by nutritionists as it is risky ents for the body.
to your health. In short, the weight-losing process requires persistence
and scientific methods. To lose weight safely and sustain-
Risks of no-carb diets ably, you should consult your doctor or a nutritionist about
Complete abolition of carbohydrates from your daily diet the most suitable diet for your health.

36 • July 10, 2025

 TRAVEL EVENTS

ANAM GROUP PIONEERS AI-POWERED MULTILINGUAL CHATBOT

The Anam Group has launched a new artificial intelligence-
powered chatbot that responds in real time to user inquiries in
approximately 150 languages.
The luxury hotel brand, which operates The Anam Cam Ranh
and The Anam Mui Ne resorts along with the Axi Plaza conven-
tion center, partnered with a U.S.-based technology firm to
develop the tool. The chatbot integrates AI models from OpenAI
and Google and is designed to assist users around the clock on
the company’s website, [Link].
Displayed on every page of the site, the chat function con-
nects directly with The Anam’s property management system,
offering detailed information about accommodation options,
dining experiences, amenities, and availability. Responses are
generated instantly and designed to be accurate, comprehen-
sive, and personable.
“This AI technology is a game-changer for how people de-
termine whether they will book a holiday with us,” said Martin flects the group’s commitment to traditional hospitality
Koerner, The Anam Group’s commercial director. “Rather than through modern means. He emphasized that human
searching manually, users receive immediate answers tailored staff are still required to maintain and update the system,
to their needs.” ensuring its accuracy and relevance. The multilingual
Koerner added that the chatbot, which concludes replies capability helps eliminate communication barriers for
with friendly Vietnamese greetings and translations, re- international travelers.

Sheraton Nha Trang announces new

executive chef
Sheraton Nha Trang Hotel & Spa
has named Marco Pistillo as its new
executive chef. The appointment
brings a wealth of international culinary
experience and leadership to one of
the region’s most prominent hospitality
establishments.
Chef Pistillo most recently served as
executive chef at the Grand Hyatt Jakar-
ta, where he managed a team of over
100 culinary professionals. During his
Sofitel Metropole Hanoi honors tenure, he implemented strategies that
improved guest satisfaction, enhanced
Charlie Chaplin with new exhibition food quality, optimized operational
costs, and contributed to revenue growth.
Sofitel Legend Metropole Hanoi has launched a new exhibition
Originally from Italy’s northern Lombardia region, Pistillo began
celebrating film icon Charlie Chaplin, who famously honeymooned
his culinary career in London in 2006. He has since held key roles in
at the hotel in 1936 with his wife, actress Paulette Goddard.
Michelin-starred restaurants and across Hyatt properties in Vietnam,
Titled “Charlie Chaplin: Echoes of a Legend,” the showcase features
China, the United Arab Emirates, and Indonesia. His experience
rare memorabilia from the private collection of Australian collector
includes assignments at Hyatt Regency Danang and positions in
Paddy Macdonald. The month-long exhibition, which opened June
Shenzhen, Abu Dhabi, and Jakarta.
24 and runs through July 22, includes vintage film posters, century-
Pistillo plans to introduce new culinary concepts across the hotel’s
old sheet music, and a 1925 edition of Time magazine—the first to
five restaurants and bars, emphasizing fresh local seafood, sustain-
feature an actor on its cover.
ability, and high-quality ingredients.
Items on display were sourced from nearly 50 countries, includ-
The 280-room Sheraton Nha Trang, overlooking one of the world’s
ing the U.S., France, Ireland, Cuba and Australia, offering a global
most beautiful bays, has been a fixture of the city’s hospitality sector
perspective on Chaplin’s life and legacy.
for 14 years. The hotel’s dining venues include Altitude, the highest
The exhibition is displayed in the hotel’s Heritage Wing and Opera
rooftop bar along Tran Phu Street.
Wing lobbies.
The Metropole, a 124-year-old hotel in Hanoi’s French Quarter, has
long celebrated its historic ties to Chaplin. One of its premier suites in Please contact Mr. Huy Han for more
the newly renovated Heritage Wing is named after the actor. The Char- information about the Five-star Events page
lie Chaplin Suite features natural wood flooring, hand-tufted carpets, Email: huyhan@[Link]
bespoke furnishings, and a balcony overlooking Con Coc Park. Mobile: 090 269 6617

July 10, 2025 • 37

 Tu Nac possesses a
pristine and peaceful
atmosphere
Visitors to Tu Nac can enjoy camping
and chasing clouds at dawn

Tu Nac
Village
Invites
Adventure
Seekers
Perched atop a mountain
in Nam Tra My—now part
of Danang City—Tu Nac
Village remains a quiet
haven, untouched by tourism
and modern development.
It offers intrepid travelers
a rare window into the
PHOTOS: TRAN TRUNG HIEU

rhythms of Vietnam’s remote

highland life, where tradition
and nature remain deeply
intertwined.

38 • July 10, 2025

 DESTINATIONS TRAVEL

By Dang Huy

T
ucked away some 150
kilometers southwest of Hoi
An, Tu Nac Village is home
to around 50 households of
the Xe Dang ethnic group. Perched
gracefully on a mountain slope,

ARCHIVES
it is cradled by dense forests and
expansive grasslands, offering
panoramic vistas in every direction. A beautifully arranged Hue salt rice
Its remote setting and challenging
access have kept the landscape
pristine and the traditional way of
life beautifully intact. Hue Salt Rice: A Delicate
Flavor Of Imperial Cuisine
Visitor Tran Trung Hieu de-
scribed the journey to Tu Nac
Village as a blend of challenge
and reward. From Hoi An, travel-
ers need a four- to five-hour drive, Once reserved solely for Vietnamese royalty, Hue salt rice—known
followed by a rugged two-kilometer as cơm muối—is a refined culinary tradition that showcases the
uphill trek from the main road. artistry and ingenuity of women in the ancient imperial capital
With its steep inclines and unpre-
dictable weather, the trail demands By Dang Huy

H
physical effort and preparation—
rain gear, sturdy hiking shoes and
sticks are strongly recommended istorically known as cơm tiến vua—“rice offered to the king”—
for a safe ascent. Hue salt rice was crafted not from lavish ingredients, but from
Despite its remote location, Tu Nac the skillful hands of imperial chefs using humble, locally
Village has quietly captured the in- sourced components. A traditional serving features up to nine
terest of outdoor enthusiasts drawn distinct types of salt, each paired with delicate white rice cooked in small
to its opportunities for camping, clay pots. These salts symbolize longevity and eternity in royal tradition,
exploration, and the ethereal experi- and the rice itself must undergo meticulous milling to ensure whole
ence of “cloud hunting” as morning grains that preserve their fine husk layer.
mists drift through the mountain At the heart of Hue salt rice lies its delicately crafted salts, each
peaks. prepared to reflect the five fundamental tastes: sour, spicy, salty, bitter,
Travelers can also immerse and sweet. This harmonious balance is achieved through a selection of
themselves in the culture and daily salt varieties—among the most common are crushed peanut salt, chili
rhythms of the Xe Dang commu- salt, shrimp salt, salmon salt, tuna salt, lemongrass pork salt, and black
nity, gaining insight into a way of sesame salt. Of these, lemongrass pork salt stands out as a signature of
life shaped by nature and tradi- imperial cuisine. Blending finely ground pork (or shredded chicken) with
tion. Thanks to its high elevation lemongrass, chili, coarse salt, and Hue’s distinctive fermented shrimp
and temperate climate, the area is paste (ruốc), it is gently sautéed until the ingredients fuse into a fragrant,
perfect for nature-based activities; savory masterpiece. By contrast, chili salt is refreshingly simple: fresh
however, limited infrastructure calls green chilies are crushed with coarse salt to create a bold, fiery accompa-
for careful preparation. niment to the meal.
As more Vietnamese and interna- Hue residents thoughtfully tailor their salt selections to the changing
tional travelers seek destinations off seasons. During the rainy months, bold and spicy varieties take center
the beaten path, places like Tu Nac stage, while the summer heat calls for bitter or sour salts to help cool
offer rich opportunities for eco-tour- and balance the body’s internal energy. Each salt is presented in deli-
ism and cultural discovery. For now, cate porcelain or jade bowls adorned with elegant motifs, arranged in a
it remains a hidden gem—awaiting flower-like circle around the central clay pot of rice. This exquisite layout
those who venture with curiosity reflects not only the careful consideration of flavor, but also the refined
and care. visual artistry inherent in royal Vietnamese dining.

July 10, 2025 • 39

Foreign visitors pose for a group photo with
local people at Tra Que vegetable village

Representatives of the Danang City government and Saigontourist Group perform the groundbreaking button-pressing ceremony

Saigontourist Breaks Ground services, including luxury accom-

modations, fine dining, modern

On Five-star Hotel In Danang

conference and event facilities, a
gaming area, swimming pool, and a
variety of other amenities designed
to appeal to both domestic and inter-
Saigontourist Group held a groundbreaking ceremony on national travelers.
July 4 for its new five-star hotel in the central city of Danang, The hotel’s design incorporates
marking a significant investment aimed at enhancing the modern architecture with smart
building features and environ-
city’s tourism infrastructure and reinforcing the group’s mentally friendly solutions.
position in the competitive hospitality sector Saigontourist said the hotel aims to

L
become a model of sustainable de-
velopment in the city center, contrib-
ocated on Dong Da Street in ecutives from Saigontourist Group, uting to both the urban landscape
Hai Chau Ward, the Saigon– including Chairman Pham Huy Binh and local economy.
Danang Hotel project has and General Director Truong Duc Speaking at the ceremony,
a total investment of over Hung. Saigontourist Chairman Pham Huy
VND779 billion (approximately The upcoming hotel is positioned Binh emphasized the strategic im-
US$30.5 million). The 23-story hotel as a flagship development for portance of the project. “Danang has
is expected to open in the third Saigontourist Group in the region. long been one of Vietnam’s top tour-
quarter of 2028, bringing premium Spanning a land area of 3,481 square ist destinations, with tremendous
accommodations and integrated meters, the project will offer a gross potential and growing appeal among
services to one of Vietnam’s most floor area of over 31,500 square domestic and international visitors.
popular coastal destinations. meters. The structure will include The launch of the Saigon–Danang
City leaders, including Nguyen two basement levels, 22 floors above five-star hotel is not only a signifi-
Dinh Vinh, standing deputy secre- ground, and a rooftop, reaching a cant addition to the city’s upscale
tary of the Danang Party Committee, total height of nearly 83 meters. lodging market but also a strong
and senior officials from various According to the investor, the testament to our commitment to
municipal departments, attended property will provide a full range supporting the sustainable develop-
the ceremony alongside top ex- of international-standard five-star ment of local tourism,” he said.

40 • July 10, 2025

 TALES TRAVEL

Binh added that in the face of

increasing competition in Vietnam’s
hospitality sector, high-quality
and innovative projects such as
this are essential to maintaining
Saigontourist’s market leadership.
“The Saigon–Danang Hotel is more
than just a building—it reflects our
continuous efforts to innovate and
upgrade our products and services
to meet the rising demands of the
tourism market,” he noted.
The new property is part of the
group’s broader strategy to expand
its network of international-standard
hotels and resorts nationwide.
Saigontourist currently manages
over 50 four- and five-star proper-
ties across Vietnam, including its
long-standing presence in Danang
through the Saigontourane Hotel,
which has served visitors since 2000. An artist’s impression of the five-star Saigon–Danang Hotel
The group views the new Danang
development as a key milestone in long-term value for our customers, the region. The project also reflects
its transformation and growth. The partners, and the community,” Binh the government’s push to modernize
hotel is expected to create hundreds said. “With our proven capabilities, the country’s tourism infrastructure
of jobs and drive socioeconomic the support of local authorities, and and attract more high-spending
development in the region. In ad- strong partnerships, we are confi- travelers.
dition to commercial benefits, the dent the hotel will be completed on As construction begins on the
project aligns with Saigontourist’s schedule and become a new architec- Saigon–Danang Hotel, Saigontourist
environmental and social responsi- tural landmark in Danang.” Group said it remains committed
bility goals. It will incorporate green With tourism in Vietnam rebound- to its vision of offering world-class
building technologies and smart ing strongly after the pandemic hospitality and supporting the long-
energy-saving systems to minimize and Danang continuing to attract term growth of Vietnam’s tourism
environmental impact while enhanc- growing numbers of international economy. The group said the project
ing guest experience. tourists, Saigontourist’s investment is a step toward reinforcing its
“This project is not just a ho- is expected to reinforce the city’s reputation as the country’s premier
tel—it is a commitment to creating position as a leading destination in state-owned tourism company.
Founded in 1975, Saigontourist
Group operates more than 100 affili-
Groundbreaking ceremony of the five-star Saigon–Danang Hotel ated units across a diverse range of
tourism and hospitality services, in-
cluding hotels, resorts, restaurants,
travel companies, entertainment
parks, training institutions, exhibi-
tion centers, golf courses, and media
outlets. The group has played a key
role in developing Vietnam’s tourism
industry over the past five decades.
PHOTOS: COURTESY OF SAIGONTOURIST

IN ASSOCIATION WITH

July 10, 2025 • 41

 TOURISM DICTIONARY

L
Lại Giang
(Lai Giang River)

An aerial view of a section

Where the river winds toward the sea of Lai Giang River
PHOTO: THU TRA
As the Lai Giang River winds its way toward the East Sea, its blue water blends with
sweeping stretches of alluvial sand, painting a tranquil and unspoiled natural tableau.
This serene destination beckons travelers who seek out pristine landscapes, still largely
untouched by the footprints of tourism.
Nestled in Hoai Nhon Town in the old province of Binh Dinh, now Gia Lai Province,
the estuary of the Lai Giang River serves as a vital gateway to nearby fishing grounds. It
offers a safe haven for the boats of fishermen from Thach Xuan, Ca Cong, and Hoai Huong
villages as they pursue their daily livelihoods. Gazing seaward, long sand dunes rise
gently, as if “embracing” the river’s currents before they dissolve into the boundless ocean.
Upon arrival, visitors are greeted with sweeping vistas of sky, sea, and sand dunes from
the crest of casuarina hill—a serene vantage point that invites quiet reflection. For those
eager to capture the full grandeur of the landscape, using a drone offers a breathtaking
aerial perspective.
The journey from downtown Quy Nhon to the Lai Giang estuary spans roughly 100
kilometers and takes about two hours by car, making for a scenic drive through the heart
of the central province.

42 • July 10, 2025