Vietnam 20250206
Mekong Memo Vietnam Weekly: Business, politics, finance, trade & legal news.
Business stories from Southeast Asia directly to your inbox.
The Mekong Memo is proudly presented by:
Horton International is your premier partner for executive search in Southeast Asia. Whether you're a small startup or a global corporation, our reliable and effective recruiting solutions are tailored to meet your unique needs. With extensive experience and offices across the region, we excel at overcoming recruitment challenges and securing top talent for your organization.
Click here to learn how Horton can make your life easier.
Headlines:
Trade Performance Shows Strong Momentum
Farmers Reap Rewards from Rising Yields
Housing Market in Affordability Challenge
Reforms Support Steady Investment Flow
Stock Market Rules Get Updated
Circular Models Redirect Resource Use
Japanese Firms Eye Profits, Cautious of Hurdles
Tech Push Supports Digital Shift
Manufacturing Sees Growth Slump
Transport Projects Accelerate Ahead
Online Retail Sees Rapid Growth
Gaming Industry Eyes Billion-Dollar Turn
First Nuclear Plant Seeks Global Partners
Policy Directives Chart Path for Growth
Trade Performance Shows Strong Momentum
In good news to get the year started, border gate activity at Lao Bao and La Lay has reportedly seen steady vehicle flows and exports so far. Increased cross‐border transactions and higher export values thanks to CPTPP markets have pushed up state revenue and been supportive of trade balances. Data from these entry points indicates that higher shipment volumes are driving momentum in export performance. The flow of goods is rising along the trade channels that consistently connect to broader regional markets.
Read more: Cong Thuong (Border Trade), VNEconomy (Export Volume)
Farmers Reap Rewards from Rising Yields
Durian and coffee growers have seen their pockets filling as earnings rise in the wake of improved crop yields and higher market prices. Modern farming techniques combined with better crop management have supported improved production levels and income streams for many. The ability to capture higher prices and manage supply is pushing farmers to consider other technologies, processes and cooperative efforts.
Read more: VNExpress
Housing Market in Affordability Challenge
Rising resale apartment prices in Hanoi have crossed the $200K mark, while more and more residents are facing the reality of a growing affordability gap. An increasing expat presence and changes in property laws are supporting a surge in upscale housing demand, but local buyers are struggling with long ownership waits as incomes lag behind prices. Structural factors in real estate financing and restricted land supply add to the pressure, causing some potential buyers to squawk for clearer reforms to help market entry and expand housing access.
Read more: VNExpress (Housing Prices), VietnamInsiders (Expat Demand)
Reforms Support Steady Investment Flow
Business leaders and policy groups continue to talk up the need for clearer regulations, adjustments in land rent, and more efficient administrative and regulatory procedures. Ongoing discussions are working towards easing operational burdens on enterprises while maintaining current investment-friendly policies. Efforts from Chambers of Commerce and government bodies are hoped to support local companies as they try and figure out market pressures and reassess trade practices. The policy moves are set to help secure a balanced environment that promotes domestic reforms and sustains continued capital inflows.
Read more: VNNews (Land Rent), VNNews (Reforms)
Stock Market Rules Get Updated
A draft decree is set to ease restrictions on foreign ownership in public companies by eliminating prior limits and mandating disclosure of maximum foreign holding positions. The move should offer greater clarity to market players and help bring more international investment. Revised rules are expected to increase transparency and improve liquidity in the stock market, bringing domestic practices in line with global standards.
Read more: LuatVietnam
Circular Models Redirect Resource Use
Authorities have shown off a plan that sets clear targets for waste collection, biomass power generation, and renewable energy shares in primary consumption. The plan sets benchmarks for urban and rural waste management and calls for the development of new sustainable value chains. It directs efforts toward reducing non-renewable resource extraction and emphasizes the use of green financing to support economic and environmental goals. The initiative is designed to make resource use more efficient and lay the groundwork for shifting toward a circular economy model.
Read more: Nhandan
Japanese Firms Eye Profits, Cautious of Hurdles
Reports from Japanese companies operating in Vietnam indicate returns are nearing pre-pandemic profit levels while some caution still remains over local administrative procedures and urban congestion. Business representatives say that Vietnam offers cost advantages and a skilled workforce, but navigating bureaucratic processes requires careful planning (and no small measure of patience). The companies say that they continue to review operational risks and explore adjustments to keep growth and productivity on track.
Read more: The Investor
Tech Push Supports Digital Shift
A leading software exporter reports growth following expanded IT campus developments and new agreements that lift export revenue. The digital banking sector has recorded an increase in transaction volumes as more services become available online. Partnerships between payment providers, banks, and fintech firms have been supportive of a movement toward a cashless society and new projects in e-governance and IT infrastructure are driving the effort in both the public and private sectors.
Read more: TheInvestor (Software Growth), VNExpress (Cashless)
Manufacturing Sees Growth Slump
Survey data shows that manufacturing conditions has slipped slightly into contraction as production and new order volumes fell in January. Firms have cut back on employment and reduced inventories, with rising input costs forcing price adjustments to support demand. Purchasing managers say that the downturn has been biting for a few consecutive months now, which has led enterprises to adopt more cautious operational strategies. Revised forecasts show a modest recovery as the sector responds to changing global order flows and other competitive pressures.
Read more: CongThuong (Manufacturing), VNNews (PMI Trends)
Transport Projects Accelerate Ahead
Major transportation projects are advancing with plans that include a new railway linking border regions to South China and expanded expressways and airport terminals. Authorities have overseen progress on bridges, roads, and metro developments. Investments in these projects promise improved connectivity, reduced congestion, and and improved flow of goods. Officials say they have ordered teams to make sure they work towards timely completion of projects that facilitate smoother movement of goods and people.
Read more: Nhandan (Railway), Tuoitrenews (Infrastructure)
Online Retail Sees Rapid Growth
E-commerce platforms have reached record gross merchandise values on the back of strong digital retail growth. More consumers are moving to online shopping as platforms improve logistics. Higher transaction volumes and product sales across categories like fashion, electronics, and appliances are a sign of a broadened market reach even while the number of active online shops has reportedly dropped a little. The adoption of digital retail channels by consumers is pushing businesses to better their online presence and optimize operations to capture expanding market shares.
Read more: VNExpress
Gaming Industry Eyes Billion-Dollar Turn
The gaming and e-sports sector is set to push revenue toward the one-billion-dollar mark as live events and digital platforms drive audience engagement. Operators are introducing training programs and startup support initiatives that will train local talent for game development. Collaborations between industry players are broadly supportive of infrastructure improvements and creative output. As regulators update frameworks, investment in gaming technology and competitive tournaments is rising.
Read more: VietnamInsiders
First Nuclear Plant Seeks Global Partners
State enterprises have been designated to lead the development of Vietnam’s first nuclear power plant, another step toward diversifying energy sources in a country that seems to be perpetually short of power. The government is setting timelines for legal adjustments and infrastructure build-outs while engaging in talks with potential partners from Russia, Japan, South Korea, France, and the United States. The planned project is necessary to address growing energy demand and secure long-term energy supplies for the nation.
Read more: Tuoitrenews
Policy Directives Chart Path for Growth
Top government officials have issued directives that connect administrative reform with economic development and growth. Resolutions focus on supporting macroeconomic stability with controlled inflation, faster public investment, and improved state apparatus operations. Leaders are calling on ministries to make sure that reforms that align policy execution with market dynamics are made in a timely fashion.
Read more: VNNews (Policy), VNExpress (Directives)
That’s it for this week!
Your voice matters to us. Feel we're missing something? Have additional sources to suggest? Don't hold back— hit reply and help us get better!
Thank you!