Vietnam

Intelligence for Better Decision Making

Vietnam's Digital Transformation and Economic Evolution

Feb. 21, 2025 | Indirect Indicator

In 2025, Vietnam stands at a crossroads as it evaluates the outcomes of its 10-year socio-economic development strategy initiated during the 14th Party Congress.

This strategy envisions rapid and sustainable growth through the utilization of science, technology, and innovation, with the ultimate aim of building a self-reliant economy that is seamlessly integrated into global value chains. The plan emphasizes market diversification, strengthened economic resilience, and the addressing of cultural, environmental, and social challenges.

To realize its ambition of becoming a developed, high-income country by 2045, Vietnam must pursue consistent economic growth, with innovation playing a vital role. The private sector is expected to spearhead this effort, necessitating structural reforms and a shift from traditional low-cost labor and capital-intensive practices to more profound economic development methods.

Digital transformation and modernization of business models are outlined as essential steps forward. As part of this transformation, Vietnam aims to enhance national production capabilities and draft a strategic roadmap for science and technology to boost market resilience.

Reforms of state-owned enterprises, alongside a stronger focus on the private sector, are anticipated to enhance transparency and promote fair competition.

Vietnam is committed to advancing emerging economic models, including digital, green, and circular economies. To this end, effective governance through decentralization and clearly defined roles between central and local governments are essential.

Encouraging innovation requires the removal of restrictive business practices, while modernization of laws and policies related to science and technology is critical, positioning these fields as key growth drivers.

Nguyen Manh Hung, Vice Chair of the National Committee on Digital Transformation and Minister of Science and Technology, underscores the significance of strategic technologies for local enterprises. He advocates for investments in priority sectors and institutional reforms through Resolution 57, which seeks to create a supportive framework for innovation by integrating global technological resources into Vietnam.

The resolution also emphasizes comprehensive infrastructure development, both traditional and digital, urging large corporations to align with national objectives and enhance strategic infrastructure capabilities.

Talent development takes center stage, with an emphasis on attracting skilled professionals, including overseas Vietnamese. This effort supports growth, with proposals for "technology special zones" where experimentation can occur while managing risks.

Recognizing data as a critical resource, there is a push for establishing markets and effective frameworks for data management. The mastery of strategic technologies by Vietnamese tech firms is deemed essential for driving digital transformation and participating in the global tech landscape.

Vietnam is rapidly emerging as a leader in digital transformation, buoyed by a dynamic economy, a young, tech-savvy population, and robust government support.

Businesses are leveraging technology to optimize operations, enhance customer experiences, and spur economic growth, with the digital economy projected to contribute 20% to GDP by 2025 and 30% by 2030.

Key areas for digital transformation include fintech, digital payments, AI and IoT integration, universal broadband, and the rollout of 5G by 2030.

Workforce training initiatives aim to upgrade digital skills, as industries like e-commerce, telecommunications, and IT evolve rapidly through AI, blockchain, and automation innovations.

The Vietnamese software industry stands out as a competitive outsourcing hub, providing cost-effective solutions for global tech firms.

Future transformation efforts will focus on public-private partnerships, smart manufacturing, cybersecurity, and data protection. Strategic investments and digital inclusivity are key to cementing Vietnam's status as a leading digital economy in Southeast Asia.

Vietnam has surpassed its target of 48,000 technology businesses, now boasting over 50,000 active companies in the digital technology sector. This growth positions the country as a burgeoning economy and innovation center in Southeast Asia, with the technology sector contributing nearly 10% to the national GDP.

In 2022, the sector saw a 16.8% increase in value-added production, with research suggesting that every additional dollar in technology output significantly boosts the nation's overall economic output.

Nguyen Minh Tho of the Central Institute for Economic Management (CIEM) identifies the technology sector as a catalyst for job creation and enhanced competitiveness through innovative business models.

Rapid technological advancement encourages traditional businesses to adapt, thereby enhancing capacities and aligning with emerging trends to create a competitive business landscape. Recently, the top 10 technology companies for 2024 were acknowledged by VINASA.

Leadership Restructuring Signals Strategic Shift in Phu Tho and Ha Nam Provinces

Feb. 21, 2025 | Indirect Indicator

Recent changes in the leadership of Phu Tho province's Party Committee signal a strategic shift aimed at improving operational efficiency.

The newly restructured Executive Committee now comprises 17 members, with a Standing Committee of 5 members. Mr. Phung Khanh Tai has taken on the role of Secretary of the Party Committee for Provincial Party agencies, while Ms. Nguyen Thi To Uyen serves as Deputy Secretary.

Meanwhile, Mr. Bui Minh Chau retains his position as Secretary of the Phu Tho Provincial Party Committee, and Mr. Bui Van Quang continues to hold dual roles as Chairman of the Provincial People's Committee and Secretary of its Party Committee.

Additionally, Ms. Do Thi Ngoc Anh and Mr. Nguyen Thuy Trong have been appointed full-time Deputy Secretaries. The Propaganda and Education Department has merged with the Mass Mobilization Department, now led by Mr. Vi Manh Hung, to further streamline operations.

During a conference held on February 19, Secretary Bui Minh Chau emphasized the importance of reorganizing the provincial government structure to enhance its effectiveness. He called for a rapid assessment of the current framework and the establishment of guidelines for the new departmental structure to minimize potential disruptions.

Part of this reorganization involves the dissolution of 10 Party delegations and provincial-level Party executive committees, including unions and associations. As part of this overhaul, an election was conducted, and the Executive Committee appointed new members for the Inspection Commission for the 2020-2025 term.

Notably, Mr. Nguyen Hai, a Central Committee member of the Vietnam Fatherland Front and Secretary of its Party Delegation in Phu Tho, was unanimously elected as the Inspection Commission Chairman, leveraging his extensive background in Education Management.

Additional changes include the dissolution of the Provincial Agencies and Enterprises Party Committees. Grassroots organizations are being integrated into the structures of the Provincial Party Committee and the People's Committee.

Certain party cells have been reallocated to appropriate committees, such as the Department of Education and Training Party Committee. On February 18, Mr. Dinh Cong Thuc, previously Chairman of the Provincial Party Committee's Inspection Committee, was elected as Chairman of the Provincial Fatherland Front Committee for the 2024-2029 term.

In Ha Nam province, leadership changes are also underway. Ms. Le Thi Thuy has stepped down as Secretary of the Ha Nam Provincial Party Committee.

This transition was officially recognized at a handover conference where Ms. Dinh Thi Lua assumed responsibilities. The Office of the Central Party Committee documented these changes on February 14, 2025, with the Politburo's announcement of Ms. Thuy's departure from several key roles, including her position as Chairwoman of the Ha Nam Provincial People's Council.

During the handover, Ms. Thuy expressed her gratitude for the support of her colleagues and highlighted the importance of unity among Ha Nam's Party committees and authorities to achieve the sustainable development goals set by the 20th Provincial Party Congress.

Monitored Intelligence for Vietnam - Feb. 21, 2025

News
Media
190

Government
Releases
38

City/State
Releases
5

Embassy
Releases
3

Foreign
Service
Advisories
0

Academic/
Think
Tank
3

Podcasts
0

Videos
0

Social
Media
0

Business
Releases
9

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Thailand initiates end-of-term review of anti-dumping duties on Vietnamese iron or steel pipes and tubes

ASL Law Firm | English | AcademicThink | Feb. 21, 2025 | UndeterminedTrade Issues and Numbers

Thailand's Department of Foreign Trade (DFT) has initiated a review of anti-dumping duties on specific iron and steel pipes and tubes imported from Vietnam, covering 171 HS codes. This review, requested by the Metal Tube and Sheet Processing Manufacturers Association, will evaluate whether to maintain or revoke the existing duties based on the potential for continued dumping and its effects on the domestic industry.

The current duties, ranging from 6.97% to 51.61%, have been in place since February 2020 and will remain as a deposit requirement for one year starting February 13, 2025, or until the review results are published. The DFT will send investigation questionnaires to Vietnamese producers and exporters starting February 24, 2025. Those not receiving a questionnaire but wishing to participate must request inclusion by February 25, 2025.

Interested parties can submit information, feedback, and hearing requests to the DFT within 30 days of the official announcement, with a deadline of March 12, 2025, which may be extended. Manufacturers and exporters should familiarize themselves with the review process and consult Vietnamese law firms specializing in anti-dumping for guidance, with ASL Law highlighted as a key independent firm providing support.

Việc mua, bán điện với nước ngoài phải được phê duyệt chủ trương trước khi thực hiện

The purchase and sale of electricity with foreign countries must be approved in principle before implementation.

VTV News | Local Language | News | Feb. 21, 2025 | Regulation

The Circular on electricity transactions with foreign entities, effective February 1, 2025, sets forth procedures under Clause 8, Article 46 of the Electricity Law No. 61/2024/QH15. It applies to Vietnam Electricity Group and all Vietnamese organizations or individuals involved in these transactions. Each electricity import and export project must secure prior approval, ensuring alignment with the Vietnam Electricity Development Strategy.

If a project aligns with existing strategies but faces grid connection issues, the Minister of Industry and Trade can approve it and update relevant planning documents. For inconsistent plans, necessary adjustments must be made before approval. Transactions using a third-party grid require written agreements with the grid's managing unit.

Approval procedures entail the Vietnam Electricity Group or stakeholders preparing and submitting a dossier to the Ministry of Industry and Trade by direct, online, or postal means. The Ministry will respond within five working days, initiating an appraisal with relevant authorities. Final approval from the Minister is expected within 15 working days after consultations. Following approval, parties must negotiate electricity purchase agreements and submit required documentation at least seven days before transactions begin.

Birləşmiş Millətlər Təşkilatının İqlim Dəyişikliyi üzrə Çərçivə Konvensiyası Tərəflər Konfransının 29-cu sessiyası (COP29) çərçivəsində Dini Liderlərin Qlobal Sammitinin BAKI BƏYANNAMƏSİ

BAKU DECLARATION of the Global Summit of Religious Leaders within the framework of the 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29)

Embassy of Azerbaijan in Vietnam | Local Language | Embassy | Feb. 21, 2025 | Climate Change

The Global Summit of Religious Leaders took place in Baku on November 5-6, 2024, during the 29th session of COP29, under the slogan "World Religions for a Green Planet." Approximately 300 prominent religious leaders, UN officials, and scientists attended, focusing on urgent global challenges, including climate change and biodiversity loss. The summit reinforced the need for collaboration to enhance ecosystems and acknowledged prior interfaith commitments, such as the COP28 Interfaith Declaration and the Document on Human Fraternity.

Leaders expressed gratitude toward Azerbaijan's President Ilham Aliyev for his support and emphasized the importance of inter-civilizational dialogue and education on climate issues. The event recognized Azerbaijan's leadership in the climate crisis and declared 2024 as the Year of Solidarity for a Green World, highlighting the role of international forums in promoting religious dialogue and cooperation.

Concerns were raised about armed conflicts and environmental destruction, with participants urging states and organizations to engage meaningfully in climate discussions and uphold ecological justice. The summit called for responsible use of artificial intelligence for environmental solutions, global cooperation on the Paris Climate Agreement, and a rejection of terrorism that exploits religion.

The declaration advocated for education on citizenship and environmental stewardship, protection of natural resources, and a unified stance against the misuse of religious symbols. Participants acknowledged the critical role of religions in addressing climate change and advancing sustainability and peace efforts.

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