policy
The Policy category covers government regulations, economic policies, trade agreements, and legislative updates. It explores public sector initiatives, business regulations, and global economic strategies, providing insights into how policies shape industries, trade, and investment opportunities.
Transport & infrastructure: Vietnam’s US$67 billion high-speed railway faces 140-year capital recovery, minister warns
If the Government of Vietnam were to spend US$67 billion on the proposed North-South high-speed railway, as opposed to funding the project through private investment, it could take up to 140 years to recover the initial capital, Minister of Construction, Tran Hong Minh, has said and Thanh Nien has reported.
Vietnam’s BRICS Partnership: Risks & Benefits
Vietnam’s new BRICS partnership offers potential access to new financing and export markets but also carries risks. That said, it is only a small step forward and looks more like a pragmatic hedge than a major strategic shift.
Tax: Vietnam extends 8 percent VAT cut through end-2026
Vietnam’s National Assembly has approved a reduction in the value-added tax (VAT) rate from 10 percent to 8 percent for most goods and services, effective from July 1, 2025 to December 31, 2026, in a move aimed at stimulating economic activity, The Investor has reported.
Tax: Vietnam to impose excise tax on soft drinks from 2027
Vietnam’s National Assembly has passed an amendment to the Law on Special Consumption Tax, introducing new excise taxes on soft drinks and revising tax schedules for alcohol, tobacco, air conditioners, and fuel, VN Express has reported.
Policy: Vietnam finalises legal framework for carbon market, effective date August 1
Vietnam’s government has officially issued Decree 119/2025/NĐ-CP, amending a 2022 decree on greenhouse gas emissions and ozone layer protection. The new regulations take effect on 1 August 2025, establishing the legal foundation for emissions quotas, carbon credit trading, and both domestic and international offset mechanisms.
The End of Vietnam’s Two-Child Policy: When Ideology Meets Economics
Vietnam may have scrapped its long-standing two-child policy last week, but the ideology behind it may be harder to shift. Coming just days after General Secretary To Lam urged the nation to “practice thrift and fight wastefulness,” the move signals less of a break from the past than a concession to present economic realities: a shrinking workforce, a strained social security system, and a manufacturing model under pressure.
Policy: Vietnam GS calls for national culture of thrift to drive sustainable development
General Secretary To Lam has called for greater thrift and efforts at fighting waste in Vietnam, in a wide-ranging article published Sunday. This, however, comes amid a push to grow Vietnam’s economy through domestic consumption.
Private sector development: Vietnam National Assembly approves support package for private sector
Vietnam’s National Assembly has passed a resolution with nearly 90 percent support to strengthen mechanisms for private economic development. Policies include land rent subsidies, interest rate support, tax exemptions, inspection limits, and legal protections for private enterprises, SMEs, and startups, Vietnam Biz has reported.
Education: Vietnam university over-enrollment concerns in spotlight at education conference
The current scale of university admissions in Vietnam—over 550,000 students across 200 universities in 2024—is “very unreasonable,” Dang Viet Xo, Principal of the Vietnam College of Industry and Trade has told an education conference, VN Express has reported.
Tax: Vietnam government submits proposal to extend VAT cut until end-2026
Vietnam’s Ministry of Finance has officially submitted a draft resolution to the National Assembly, seeking to extend the 2 percent Value-added Tax (VAT) reduction until December 31, 2026, Tuoi Tre has reported. The proposed extension applies to goods and services normally taxed at 10 percent, except for sectors such as telecoms, finance, insurance, real estate, mining (except coal), and luxury goods.
Economy: Vietnam announces US$20 billion credit package to drive growth
A total of 21 commercial banks have registered to participate in a VND 500 trillion (US$20 billion) credit package to support businesses in infrastructure and digital technology, Deputy Governor Dao Minh Tu has told a press conference. The package will offer interest rates at least 1 percent lower than current commercial lending rates for a minimum of two years.
Vietnam’s Revised Power Development Plan 8: A Missed Opportunity
Last week, the Government of Vietnam issued a Decision significantly revising the Power Development Plan 8 (PDP8). However, whereas this could have been an opportunity to redesign the PDP8 to align more closely with on-the-ground realities, this opportunity looks to have been missed.
Equitization of state-owned enterprises stalls as Vietnam looks set to miss 2025 targets
Despite a plan to equitize 30 state-owned enterprises (SOEs) during the 2023–2025 period, none have been equitized as of Q1 2025, raising concerns about the feasibility of Vietnam’s SOE reform targets, VN Economy is reporting. The plan had expected to raise VND 36.82 trillion (approx. US$1.47 billion) from equitizations.
Vietnam to roll back some environment protection obligations for small business
Vietnam is refining its Extended Producer Responsibility (EPR) policy to ease compliance for small businesses. This includes removing EPR obligations from manufacturers and importers of packaging for export, temporary import and re-export, or for research and testing purposes and companies with annual packaging sales revenue under VND 30 billion (US$78 million), VN Economy is reporting.
Vietnam considers cuts to import tariffs on range of ag. goods, resources
The Ministry of Finance is preparing a draft decree for the government that, if approved, will adjust Vietnam’s Most Favoured Nation (MFN) import tax rates down. This is at the request of the Prime Minister in response to “complex and unpredictable developments of the world’s geopolitical and economic situation” (READ: US tariff policy), Zing News is reporting.
Vietnam’s Private Sector Development Push: Unpacked
Last week, Vietnam’s relatively new General Secretary, To Lam, announced that he wanted to see Vietnam’s private sector expand to 70 percent of GDP by 2030. This is not a new concept but it has historically been somewhat of a struggle to realise. With this in mind, this article looks at Vietnam’s private sector development, why it has failed to break out, and what might be different this time around.
Marine spatial plan to be presented to Vietnam National Assembly this week
The marine spatial plan is set to be the cornerstone for the development of Vietnam’s coastline. It has, however, been a long time coming. Work began on the marine spatial plan in 2018 but is still ongoing with a broad range of stakeholders from a diverse range of industries–defence, oil and gas, fisheries, and tourism to name but a few. Not to mention the geopolitical implications related to carving out a swathe of the South China Sea or East Sea as it is known in Vietnam. With this in mind, it may be a while longer too…
Vietnam PM suggests foreign workers for executive roles at state-owned enterprises
In the past the leaders of SOEs have always been members of the Communist Party of Vietnam which has significantly reduced the talent pool from which to draw–there are currently only a little over 5 million members of the party or around 5 percent of the population. This also leaves these positions open to being filled through political jostling and networking often connected to seniority and an individual’s position within the party more broadly, rather than merit and qualifications…
How the State Bank of Vietnam’s federal reserves are sold into the market
The State Bank of Vietnam–the SBV–has started selling its US dollar reserves in order to stop the local currency from devaluing further. According to this article from Tuoi Tre it is doing this by selling its dollars to banks that hold negative foreign currency positions. They are allowed to buy
Vietnam has started dipping into its US dollar reserves to prop up dong
The State Bank of Vietnam–the SBV–has begun spending US dollars in its foreign reserves to prevent the dong from sliding further against the US dollar Bloomberg is reporting. This follows on from a series of treasury bill issuances over the last month or so that have done very little to
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