AGP Executive Report

HCMC Development Blueprint: The Politburo’s Resolution No. 09-NQ/TW (May 19, 2026) lays out priorities for Ho Chi Minh City’s “new era,” building on earlier city resolutions and aiming to speed up growth across the economy, science-tech, education and national spillover effects. Strategic Tech Push: Vietnam is accelerating “strategic technologies” with stronger policy backing and implementation, with Hanoi proposing a 40-40-20 model for strategic tech, controlled testing for digital and autonomous transport, and faster commercialization. Energy & Renewables Deals: EVN met Thailand’s Gulf Energy to explore wind and LNG power projects in Vietnam, while Norwegian firms returned to Hanoi for the APAC Wind Energy Summit to support offshore wind deployment. Carbon Market Launch: Vietnam will roll out its domestic carbon exchange at end-June, positioning it to attract investment and help firms cut emissions toward net-zero. Customs Reform Input: Vietnam Chamber of Commerce and Industry gathered business views on draft amendments to the Customs Law, aiming to shift customs toward a service mindset and speed up digital transformation. Industrial Investment: Meiko broke ground on a $500m electronic circuit factory in Phu Tho, and Pacific Construction Group signed an MoU with HCMC on technical standards, training and tech transfer. Business Outlook: UOB flagged Vietnam’s resilience but warns higher energy costs and rising inflation are clouding the near-term manufacturing and trade picture.

HCMC Housing Push: Dong Nai broke ground on a 1,000-unit social housing rental project near major industrial parks, with ~VND1.4 trillion from the city budget and long-term affordable units for workers and low-income residents. Industrial Policy & Compliance: Vietnam’s Ministry of Industry and Trade starts mandatory traceability for high-risk goods via VeriGoods from July 1, requiring product ID codes and key batch/origin/expiry data before sale. ASEAN Strategy: PM Lê Minh Hưng used the ASEAN Future Forum to urge the bloc to shape global trends, become an innovation hub, and build a people-centred community by 2045. Infrastructure Momentum: Vietnam’s expressway network reached 3,345 km, with 2,182 km completed in 2021-2025, and ETC toll systems logging millions of trips. Trade & Agriculture Links: Vietnam and Algeria are pushing direct business ties to cut intermediary costs and expand farm-product trade, highlighting Robusta coffee demand. Digital & Health Tech: Kaopiz and QuantumTX signed an MOU to co-develop AI/IoT preventive healthcare solutions for Asia’s aging population. Construction Costs Watch: Cement, sand and stone prices remain under pressure, squeezing Vietnam’s construction sector even as steel shows early cuts. Energy Transition Signal: Vietnam’s EV registration fee exemption was extended to 2030, aiming to support green mobility and attract investment.

Energy & Manufacturing Investment: Foxconn signed a deal with Brookfield to develop up to 1GW of renewable power plus battery energy storage in Vietnam, backed by a long-term PPA—aimed at supporting Foxconn’s local expansion. Trade & Customs: Vietnam’s customs revenue from foreign trade hit VND 215.14 trillion in Jan–May, up 16.9% year-on-year, with exports rising 19.5% while imports jumped 30.8%. Cybersecurity for Finance: OceanLotus (APT32) targeted Vietnam investors via a supply-chain attack on FireAnt MetaKit, deploying a backdoor (SPECTRALVIPER) after compromising update servers. Power & Fuel Security: PV GAS received nearly 120,000 tons of LNG and LPG to stabilize gas-fired power and LPG supply, with more LNG arrivals scheduled mid-June and early July. Regional Connectivity & Policy: ASEAN diplomats visited Bangladesh’s BSEZ with Vietnam among participants, signaling interest in expanding industrial and investment cooperation. Private Sector Momentum: Vietnam’s private economic sector is seeing stronger confidence and market access as policy reforms push capital, technology and talent toward private firms.

Energy & Fuel Prices: Vietnam cut retail fuel prices for a third straight week from 3pm June 11, using the petrol and oil stabilisation fund; E5RON92, diesel and mazut were adjusted downward, while E10RON95 prices still track ethanol/base petrol costs and regulated margins. Port & Logistics Investment: Experts say seaports must pull in investment to become true logistics hubs; Hải Phòng is expanding berths, while Vingroup and a VIMC-led consortium are pushing major terminal/transshipment projects. ASEAN Cooperation: Deputy PM Le Tien Chau told the Future of Asia Forum in Tokyo that Vietnam wants deeper regional integration, focusing on resilience, cooperation and reform, including common supply-chain standards and data security. Cybersecurity: ESET reports Vietnam-aligned OceanLotus shifted toward more domestic espionage, using SPECTRALVIPER and FireAnt MetaKit in attacks tied to Vietnam’s infrastructure and investors. Industrial Policy & ODA: PM Le Minh Hung urged JICA to back Vietnam’s industrialisation, science-tech, innovation and labour productivity via future ODA, including green transition and AI. Trade & Manufacturing: Vietnam’s textile exporters are navigating tariff uncertainty, while Vietnam’s RMG export performance faces pressure in the US market. Rail Supply Chain: LS Eco Energy delivered railway telecom cables to Hyundai Rotem for hydrogen-powered tram projects, marking a supply-track milestone for Vietnam-made high-spec components. Retail & Consumer Demand: Retailers are leaning into shopping experiences and digitalisation, not just discounts, as consumption stays cautious.

Strategic Tech Push: Vietnam’s VAST says “strategic technologies” need faster policy-to-execution delivery, citing rising student interest in programming and robotics as the country builds tech capacity for defence, competitiveness and sustainable growth. Aviation & Trade Leverage: Vietnam has told major airlines to review Boeing and Pratt & Whitney contract progress and propose ways to raise imports of U.S. advanced goods, aiming to show compliance amid U.S. probes into overcapacity, IP and forced-labour risks. Energy Demand Pressure: Vietnam is pushing for higher coal output to meet surging power demand, underscoring the near-term balancing act between supply security and the green transition. Tourism Connectivity: Vietnam and Thailand signed new tourism agreements in Hanoi to boost visitor flows and connectivity, with joint promotion and transport links expected to support hotels, retail and food exports. Industry Health for Productivity: A garment-sector vision correction trial in Vietnam’s supply chain model shows glasses can lift productivity, with plans to scale to large worker numbers—an example of workforce investment tied to output resilience.

Vietnam Auto Market: Vietnam’s vehicle market grew 6.5% in May to 24,136 units, with light passenger up 18% and commercial vehicles up 22%—a sign demand is holding up even as some major brands are not included in the wholesale data. EV Push: VinFast is stepping up overseas ride-hailing ambitions, targeting one million EVs for Green SM by 2030 and adding four million electric motorcycles to its fleet. Semiconductor & Robotics: VinRobotics (Vingroup) signed an MoU with Infineon to build next-gen robotics core tech via a planned competency center, while Samsung is also reported to invest up to $4b in a Vietnam chip-testing plant. Industry Policy & Trade: Experts urged tighter rules for cross-border e-commerce, including consumer protection and better customs/logistics policy, and a Vietnam Private Sector Forum in Hai Phong called for stronger public-private cooperation to unblock local bottlenecks. Agri Exports: Vietnam’s pepper exports rose 21.7% in the first five months to 122,600 tonnes, with the US the top buyer. Sustainability in Hospitality: Mövenpick Hotel Hanoi Centre expanded its circular economy push, turning coffee waste into biofuel after earning Green Globe certification earlier this year.

ASEAN Economic Push: Vietnam’s leaders used the ASEAN Future Forum in Hanoi to stress that integration must be measured by real implementation, with Prime Minister Hun Manet warning that global instability is pushing sustainable development off the agenda. Vietnam–Thailand Trade Drive: Thailand and Vietnam set a target to lift bilateral trade to US$25 billion this year, with talks in Hanoi focused on faster execution under their comprehensive strategic partnership and the “Three Connects” approach. Mekong Delta Investment & Logistics: Can Tho invited Singaporean firms to invest in innovation, digital transformation, green economy, logistics and seaports, highlighting the Vietnam–Singapore Industrial Park (VSIP) Can Tho as a flagship. Vietnam Industry & Tech Strategy: VNA reported Vietnam is accelerating “strategic technologies” with stronger policy execution, aiming to build internationally recognized technological capacity. Vietnam Agrifood Momentum: Vietnam’s pangasius sector is seeing multi-year-high raw fish prices, boosting farmer profits and supporting seafood processing and exports, while still facing breed quality and disease-control challenges. EV Sector Update: VinFast reported a sharp Q1 revenue jump on rising deliveries across Vietnam and key Southeast Asian markets, even as losses remain large. Public Land Legal Risk (US): A lawsuit challenges the legality of hosting UFC Freedom 250 at the White House, raising plausible public-land concerns but with high legal hurdles.

Strategic Tech Push: Vietnam’s top science body says mastering “strategic technologies” needs faster policy-to-execution, with growing student interest in programming, robotics and high-tech competitions. Industrial Power Protection: Infineon and Siemens are teaming up to supply silicon carbide power modules for Siemens’ Sentron 3QD2 semiconductor circuit breakers, targeting safer, more reliable power distribution for electrified data centres and factories. ASEAN Fintech Blueprint: Vietnam’s Deputy PM Nguyen Van Thang urged ASEAN to build an open, secure fintech ecosystem and connect cross-border payment infrastructure as the region moves toward a digital future. Drone Safety at Airports: Vietnam’s aviation regulator warned of rising risks from drones and kites near airports after flight disruptions at Noi Bai and Cat Bi, calling for tighter coordination and public awareness. UAV Ecosystem in Tay Ninh: Tay Ninh plans a UAV research-and-application ecosystem through 2035, including flight-testing corridors and a regulatory sandbox to attract investment. Green Energy Cooperation: Vietnam’s lawmakers met GWEC to discuss renewable energy investment and practical legal frameworks for the green transition. Hiring Signals: ManpowerGroup reports Vietnam’s Q3 hiring outlook stays positive, though employers are more selective amid higher energy costs and global disruptions.

Vietnam–Thailand Business Push: Thai PM Anutin Charnvirakul pledged to “grow together” with Vietnam, meeting Thai firms across agriculture, retail, finance, energy, manufacturing and construction to expand trade, investment and supply-chain links. VinFast Update: VinFast reported Q1 revenue up nearly 42% on stronger SE Asia demand, but losses widened as it continues factory ramp-ups; the company also outlined EV supply plans for GSM taxi operations. Energy & Policy Watch: Vietnam’s gas use is flagged in a global shift study as gas loses market share, while separate Vietnam coverage notes the government instructing fuel suppliers to keep continuous biofuel petrol supply. Maritime Workforce: A new seafarer survey warns nearly half plan to quit within five years, raising staffing pressure for shipowners and managers. Trade & Compliance: USTR proposed new Section 301 forced-labor tariffs affecting imports from 60 economies, with Vietnam mentioned in the broader forced-labor enforcement context. Regional Connectivity: Vietnam and Cambodia leaders reaffirmed cooperation and pushed faster cross-border links, including expressway and cargo procedure improvements.

Vietnam Industry Pulse: Vietnam’s industrial production hit its strongest January–May growth in four years, with the industrial production index up 9.1% year-on-year; manufacturing rose 9.5% and added 7.4 points, while electricity output grew 7.6% and motorcycle output jumped 36% and auto production 26.7%. Textiles & Sourcing: Sung Il Tex Vietnam says it has completed a fully Vietnam-made lining supply chain for Vietnam and FTA partner countries, targeting faster certified origin materials for global fashion brands seeking alternatives to China. Finance for Industry: Masan Group secured a $750m senior unsecured syndicated loan, priced at a 1.8% margin, extending its USD maturity profile and signaling improved lender confidence in Vietnam’s private sector. Digital Payments: Vietnam targets cashless payment value reaching 30x GDP by 2030, with 95% of adults holding bank transaction accounts, as digital finance expands across commerce and public services. Trade & Supply Chains: Vietnam and Canada agreed to shift their joint economic cooperation into a more action-oriented phase (2026–2028), focusing on trade/investment diversification and energy, infrastructure and green growth. Regional Business Links: Thailand’s PM arrived in Hanoi for an official visit and the ASEAN Future Forum, with talks aimed at boosting Thai–Vietnam trade and investment ties.

Crypto Regulation: Vietnam’s State Securities Commission says the new Law on Digital Technology Industry (effective Jan 1, 2026) formally recognizes crypto assets as property and is building a regulated market framework, with a five-year pilot for licensed trading platforms aimed at a Q3 2026 launch. Digital Economy & Compliance: The SSC frames crypto and tokenised real-world assets as emerging pillars for Vietnam’s broader digital economy, with safeguards around AML, custody and investor protection. Cross-Border Connectivity: Vietnam and Laos agreed to refocus ties on results-driven economic cooperation, targeting US$10 billion in trade by 2030, with transport links like the Hanoi–Vientiane expressway and Vung Ang–Vientiane railway highlighted. Energy & Resilience: Singapore plans an IAEA nuclear infrastructure review mission in 2027, underscoring how energy security thinking is shifting across Asia amid fuel-market volatility. Aviation Costs: IATA warns airline profits could be cut in 2026 as jet fuel prices jump about 70% on Middle East tensions, pressuring Asia-Pacific carriers. Industry Expansion: Vietnam’s electronics retailer DMX says it will replicate its Indonesia push faster by leveraging its EraBlue joint venture, aiming to build a second “Dien May Xanh” style network quickly.

EV Infrastructure Push: Vietnam’s EV transition is accelerating, with VinFast reporting 78,458 deliveries in the first four months of 2026 (+75.56% y/y) and the Ministry of Industry and Trade issuing 18 standards for charging stations, equipment and batteries—though land, power supply and permitting remain bottlenecks. Trade & Clean Energy Cooperation: Vietnam and Canada agreed a 2026-2028 action plan under the Joint Economic Committee, targeting supply-chain resilience and cooperation in critical minerals, digital transformation, clean energy (including LNG) and logistics. ASEAN Economic Linkages: Cambodia’s PM Hun Manet is set to visit Vietnam (June 8-9) for leader talks and the ASEAN Future Forum, with a focus on trade and investment cooperation. Agri-Environment Warning: In Ca Mau’s U Minh Ha, melaleuca forest decline is linked to “red water” from peat soils and water-level stress, raising risks to biodiversity and ecosystem stability. Industry & Materials: Vietnam’s construction and manufacturing supply chains also face broader pressure as sand extraction worldwide nears 50 billion tonnes a year, intensifying ecosystem damage concerns. Regional Tech Growth: Niko Partners forecasts Asia and MENA video game spending to reach $103.6bn by 2030, with Vietnam among the covered markets.

Aviation & Infrastructure: Hanoi unveiled a century-long master plan built around a second international airport and a “sky economy,” aiming to shift growth south via new corridors and logistics links. Robotics & Industry Tech: Vietnam showcased homegrown humanoid robots at a Vietnam Robotics Technology Day in Austria, pushing sci-tech diplomacy and industrial automation. Manufacturing & Skills: A Vietnam–Canada Joint Economic Committee meeting highlighted rising two-way trade and cooperation on supply chains and critical minerals. Trade Policy Shock: The US moved to revive broad tariffs, including a new Vietnam trade investigation, raising fears of higher input costs and slower investment. Local Economy & Tourism: Ho Chi Minh City is drafting a strategy to better connect and scale its night-time economy. Agro-Industry & Research: Vietnam placed five scientists in Asia’s top 100 for 2026, signaling deeper regional research integration. Compliance & Exports: Bangladesh’s leather sector warned export stagnation tied to delays in a fully functional CETP and inconsistent policy. Energy & Transport: IATA’s AGM flagged Asia-Pacific aviation growth as a trillion-dollar infrastructure and sustainability test.

E-commerce Export Push: Amazon Global Selling 2026 in HCM City says Việt Nam is poised to become a regional e-commerce export leader, backed by manufacturing strength, logistics expansion and a fast-growing digital trade ecosystem. Insurance & Infrastructure Demand: Vietnam’s non-life insurance market is entering a new growth cycle as transport, energy and industrial projects drive demand for engineering, property, liability and cargo coverage, with VinFast’s Haiphong complex all-risks programme renewed for 2026-2027. FDI Quality Concern: A VNA report warns the Southeast is still attracting mostly assembly and processing, with limited R&D and spillover; weak regional connectivity is also holding back the “new-generation” FDI wave. Construction Materials Under Pressure: Building materials firms are being pushed beyond raw extraction as sand, asphalt, cement and stone prices rise and carbon pressure grows, threatening project schedules. Agri & Aquatic Trade: Agro-forestry-aquatic exports hit $30.69bn in Jan-May (+9.2%), with a $8.41bn surplus; China remains the biggest market. Digital Assets Regulation: SSC says Vietnam is building a legal framework for crypto markets, with regulators studying new products like margin lending and derivatives when conditions allow. Human Capital for Growth: UEB Hanoi urges Vietnam to turn science, tech, innovation and digital transformation into a direct growth engine to reach 10%+ growth.

Semiconductor Push: Samsung plans to invest up to $4 billion in a Vietnam chip-testing plant north of Hanoi, with partial operations from Nov 2027 and full operations from 2031, targeting legacy DRAM and NAND and creating about 3,750 jobs. EV Mobility Expansion: Green SM, backed by Vietnam’s Vingroup, launched an all-electric taxi service in India’s Delhi-NCR, aiming to expand to other major cities and target a premium ride-hailing gap. Battery Storage Finance: Philippines’ ACEN secured P2.93 billion financing for a 140MWh battery energy storage system in Zambales, underscoring regional momentum for grid-scale storage that can support renewables. Trade & Tariffs Watch: The U.S. USTR opened/advanced Section 301 tariff actions tied to forced-labor investigations, with Vietnam among the focus areas and a public comment window running into early July. Agribusiness Linkages: U.S. Wheat Associates and U.S. sorghum groups are pushing Southeast Asia demand, including Vietnam, through milling and livestock trade missions. Regional Connectivity Angle: Coverage highlights China–Vietnam infrastructure and trade cooperation as a driver of faster urban mobility and broader industrial ties.

Energy Storage & Grid Reform: HiTHIUM unveiled an 8-hour native long-duration BESS at SNEC 2026, pitching longer storage as key for higher renewable penetration and grid stability. Vietnam also moved to formalize market rules, with MOIT issuing Circular 29/2026/TT-BCT on operating the competitive wholesale electricity market. Semiconductors & Electronics Supply Chain: LG Innotek will expand in Vietnam with a new semiconductor substrate plant in Haiphong (construction from July 2026), while LG Innotek also expands its chip-substrate footprint. AI for Industry: FPT and NVIDIA released the Nemotron-Personas-Vietnam dataset for sovereign AI development, and Vietnam’s manufacturing/industrial AI demand matching flagged Vietnam needs in agricultural machinery and processing. Vietnam Economy & Trade: Vietnam’s economy sustained strong January–May growth, with industrial production rising and FDI up; trade hit a record $445.12bn in the first five months, with electronics and machinery leading exports. Mobility & EV Ecosystems: VinFast made its first Philippine International Motor Show appearance, showcasing an EV ecosystem and Rentapasada ownership program. Insurance Access: Vietnam targets 25% micro-insurance coverage by 2030 as firms push mass, low-premium protection for low-income groups. Market Sentiment: VinaCapital said many Vietnamese stocks trade at crisis-level valuations despite solid earnings, citing trade deficit and macro pressures.