Vietnam

Intelligence for Better Decision Making

Vietnam Launches Interagency Push for Smart City and Digital Economy Investments
July 18, 2025 | Infrastructure & Urbanization

Vietnam is advancing its smart city initiatives and digital economy through targeted investments and an interagency coordination framework.

**On July 16, Deputy Prime Minister Nguyen Chi Dung met with Fung Wai Ka Thomas, Director of CCC Infrastructure Company, and Lai Rong Huo, Chairman of Hero Shenzhen Group, who expressed interest in investing in smart urban development in Vietnam.**
They outlined plans to create smart urban areas in Bac Ninh and Tay Ninh provinces and to develop high-quality industrial zones across multiple provinces and cities. The companies requested government support to explore and implement these projects.

**Nguyen Chi Dung welcomed their proposals and described Vietnam’s policy framework for establishing networks of smart cities.**
Under this framework, centrally controlled cities will act as hubs while enterprises can invest directly in pilot projects at the commune and ward levels. He urged both firms to work closely with local authorities to ensure regulatory compliance and effective project guidance.

**He identified several cooperation avenues, including financial and technical support for pilot initiatives, technology transfer, management collaboration, and human resource training.**
He assured the investors that the government will facilitate their investments and operational effectiveness in Vietnam’s smart city programs.

**CCC Infrastructure Company, founded in Hong Kong in 2000, specializes in market research consultancy and financial services.**
Hero Shenzhen Group operates across multiple industries, focusing on smart and sustainable urban projects through its 20 affiliated companies in major Chinese cities. Both firms aim to leverage Vietnam’s favorable investment environment and apply their urban development expertise.

**To coordinate smart city development, Nguyen Chi Dung announced the creation of an interagency task force, which he will lead.**
The task force includes representatives from various ministries, local governments, and technology corporations, and it will oversee a synchronized approach to smart city construction, regulatory frameworks, and project execution.

**The task force’s agenda includes finalizing a draft regulation on its activities, crafting work plans for 2025, and reviewing the Vietnam Sustainable Smart City Development Project (2018–2025) summary report with projections toward 2030.**
These documents will guide regulatory consistency and define operational milestones.

**Nguyen Chi Dung emphasized that smart cities are essential for advancing Vietnam’s digital and urban economies amid the Fourth Industrial Revolution.**
He identified challenges in institutional frameworks, data platforms, coordination, and resource allocation, and he called on ministries, sectors, and local authorities to work together to address obstacles and complete the legal framework needed for effective smart city development.

**He directed the Ministry of Construction to draft a decree on smart city development and submit it to the government by August 15, 2025.**
This ministry will also organize the Project 950 summary conference in July 2025, finalize the task force’s regulations, and compile comprehensive work plans. Local governments must review current smart city initiatives and prepare aligned urban development strategies, while ministries and provincial authorities must present detailed action plans to the task force by July 25.

**Nguyen Chi Dung stressed that all efforts must be implemented seriously and responsibly to ensure the synchronized and robust development of smart cities.**
He confirmed that the task force will support ministries and localities in facilitating investment in smart city projects and promoting growth in related industries.






### IMPACT ANALYSIS
**From this Development, various impacts could cascade through the system, to a lesser or greater extent, depending on the severity and criticality of the shocks.**





























































Domain Causal Chain Possible Outcome
Infrastructure & Urbanization (Smart-city digital-infrastructure policy ↑ → Urban-planning & zoning flexibility ↑ → Urban building-permit issuance velocity ↑ → Infrastructure-quality index ↑) Faster permit approvals streamline smart-city deployments and improve the overall infrastructure-quality index.
Infrastructure & Urbanization (Smart-city data-platform integration score ↑ → Open-data policy maturity ↑ → Average urban broadband speed ↑ → Digital divide (urban-rural speed gap) ↓) Improved open-data policies and higher broadband speeds reduce the urban-rural digital divide.
Governance & Law (Creation of multi-ministerial task force ↑ → Regulatory-quality & red-tape index ↑ → Average business-permit approval time ↓ → Ease-of-doing-business percentile ↑) Streamlined regulations cut permit approval times and enhance Vietnam’s ease-of-doing-business ranking.
Governance & Law (Creation of interagency task force ↑ → E-procurement penetration rate ↑ → Government-procurement cost-overrun frequency ↓ → Local-government capital-budget execution rate ↑) Expanded e-procurement uptake lowers procurement overruns and boosts local capital-budget execution rates.
Competitiveness (Major foreign investment commitment ↑ → FDI net inflow (% GDP) ↑ → Export sophistication (EXPY) delta ↑ → High-value-added export share ↑) Higher FDI inflows elevate export sophistication and increase the share of high-value-added exports.
Competitiveness (Innovative investment model linking central hubs and local pilots ↑ → Municipal fiscal autonomy & revenue capacity ↑ → Municipal infrastructure PPP pipeline value ↑ → Private fixed-investment growth ↑) Greater municipal revenue autonomy expands PPP pipelines, driving private fixed-investment growth.
Technology & Innovation (Government procurement of innovation ↑ → Technology FDI inflow ↑ → Patent-to-product conversion rate ↑ → Total-factor productivity growth from tech ↑) Government procurement of new technologies attracts FDI and boosts tech-driven productivity growth.
Macroeconomics & Growth (Accelerated regulatory timeline for smart city development ↑ → Regulatory-approval lead time (days) ↓ → Business-confidence diffusion index ↑ → Real GDP growth ↑) Faster regulatory approvals elevate business confidence and support stronger real GDP growth.
Infrastructure & Urbanization (Accelerated regulatory timeline for smart city development ↑ → Building-code stringency & enforcement ↑ → Construction-permit issuance time ↓ → Average one-way commute time ↓) Stricter building codes and faster permits shorten construction timelines and reduce average commute times.
Social Cohesion (Creation of interagency task force ↑ → Governance effectiveness & corruption control ↑ → Public-trust index in national institutions ↑ → Civic-trust composite swing ↑) Enhanced governance and anti-corruption controls raise public trust and strengthen civic cohesion.




### BOTTOM LINE

- Vietnam’s agreement with CCC Infrastructure and Hero Shenzhen Group to channel substantial Hong Kong and Chinese capital into smart-urban development is likely to boost foreign direct investment relative to GDP, ushering in advanced sensor and analytics exports that raise the country’s export sophistication and share of high-value-added products.

- The establishment of a deputy prime minister–led interagency task force will streamline urban-planning and zoning regulations, speeding up building-permit approvals for IoT networks, data centers, and other digital infrastructure, which in turn enhances Vietnam’s infrastructure-quality benchmarks.

- A coordinated drive to integrate data platforms across ministries and local governments, backed by open-data policies, is expected to improve average urban broadband speeds and extend network upgrades into rural areas, thereby narrowing the urban-rural connectivity gap.

- Standardized procurement processes and e-tendering under the new task force framework will reduce cost overruns and accelerate local-government budget execution rates, ensuring that allocated resources for smart-city projects are fully deployed on schedule.

- By linking centrally designated city hubs with commune- and ward-level pilot projects, Vietnam’s new investment model empowers municipalities to generate service fees and land-lease revenue that fuel a richer PPP pipeline, drawing additional private fixed investment for urban modernization.

- The expedited timeline for drafting a smart-city decree and ministerial action plans will shorten regulatory-approval lead times, fostering stronger business confidence, higher domestic and foreign investment, and ultimately supporting an uptick in real GDP growth.

- Enhanced building-code stringency, embedded in the upcoming decree, combined with unified enforcement guidelines, will reduce construction-permit issuance times and enable the rapid rollout of transit-oriented and mixed-use developments, which should lower average one-way commute durations.

- Government procurement commitments to cutting-edge urban technologies will attract additional technology FDI, bolster collaboration between foreign firms and local R&D entities, raise patent-to-product conversion rates, and drive total-factor productivity gains across public utilities and manufacturing sectors.

- Centralized oversight of smart-city investments and transparent, data-driven project monitoring will strengthen governance effectiveness, curb opportunities for rent-seeking, and elevate public trust in national and local institutions, thereby reinforcing civic cohesion and community engagement in future initiatives.
Surge in Remittance Inflows Bolsters Ho Chi Minh City’s Economy in Early 2025
July 18, 2025 | Macroeconomics & Growth

Ho Chi Minh City has experienced robust growth in remittance inflows through credit institutions and economic organizations in 2025.

**In the second quarter, remittances reached nearly 2.82 billion USD, a 16.9% increase over the first quarter and a 22.1% rise compared to the same period in 2024.**
Total remittances in the first half of 2025 exceeded 5.23 billion USD, up 22% year-on-year. In 2024, annual remittances to the city amounted to approximately 9.6 billion USD, 140 million USD more than in 2023.

**By region, Africa led growth with a 130.8% year-on-year increase in the second quarter, followed by Europe at 16%, the Americas at 11.9%, and Oceania at 8.9%.**
Asia remained the largest contributor in absolute terms, accounting for 53.8% of total remittance flows in 2024 and posting a 24% year-on-year increase, driven largely by Vietnamese workers in Japan, South Korea, and Taiwan.

Deputy Director Trần Thị Ngọc Lin of the State Bank Branch for Area 2 said the steady rise in remittance inflows has supported Ho Chi Minh City’s economic recovery by bolstering foreign currency supply, stabilizing exchange rates, and underpinning consumption and investment.

**Provinces under the State Bank Area 2 jurisdiction—including Bình Dương, Đồng Nai, Bà Rịa–Vũng Tàu, and Bình Phước—received over 127.5 million USD in remittances through credit institutions by the end of the second quarter.**
Bình Dương led with 53.2 million USD, followed by Đồng Nai at 42.3 million USD, Bà Rịa–Vũng Tàu at 27.2 million USD, and Bình Phước at 4.6 million USD.

Monitored Intelligence for Vietnam - July 18, 2025


News
Media
131

Government
Releases
16

City/State
Releases
5

Embassy
Releases
2
Foreign
Service
Advisories
0
Academic/
Think
Tank
3


Podcasts
0


Videos
0

Social
Media
0

Business
Releases
9

Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.

Risk Categories Reported on Today

Risk Category
Items Reported On
Climate Change
2
Epidemics and Pandemics
2
Cyber Attacks and Data Loss
1
Pollution
3
Regulatory Enforcement Actions
2
Extreme Weather Events
4
Accidents
11
Regulation
12
Shifting Geopolitical Alliances
1
Corporate Corruption or Fraud
2
Supply Chain Issues
2
Crime
2
Critical Infrastructure Failure
1
Political Scandal or Corruption
2

Erudite Risk also includes operations categories so you can monitor the environment for better decision making. Everything is tied together--what happens in risk affects operations and what happens in the market impacts risk profiles.

We categorize key intelligence into one of 30 different operations intelligence categories.

Different roles and functions within the organization can monitor different key issue areas. HR may monitor employment, wages, regulations, labor and management relations, etc., while P&L leaders may monitor overall developing trends.

Operations Categories Reported on Today

Operations Category
Items Reported On
Real Estate
4
Economic Growth
6
Trade Issues and Numbers
5
Operating Results
5
Budgets-Budgeting
3
Tech Development/Adoption
1
Asset Price Change
3
Financial System Problems
1
Bizdev-Partnering
2
Political Policy Resistance
3
Initiative
2
Investor Sentiment
1
Legal Exposure
1
Politics and Elections
1

Bắc Bộ còn nhiều ngày mưa lớn, khả năng xuất hiện El Nino thấp

Northern Region Still Has Many Days of Heavy Rain, Low Probability of El Nino Occurrence

Bao Dien Tu | Local Language | News | July 18, 2025 | Extreme Weather Events

The Northern region of Vietnam is expected to experience many days of heavy rain until September 2025, with precipitation gradually shifting towards the Central region. Rainfall in some areas is forecasted to be 10-30% higher than the multi-year average (MYA). The ENSO phenomenon remains in a neutral state with a very low probability of El Nino or La Nina occurring through early 2026. Heatwaves are predicted to persist until the end of August in the Northern and Central regions before gradually decreasing.

From January to mid-2025, Vietnam's weather has been characterized by fewer intense heatwaves, shorter durations, and increased rainfall due to ENSO neutrality. The Northern region saw six heatwave episodes with temperatures mostly between 35-38°C, with brief spikes up to 40°C. The Central region also recorded six heatwaves, some exceeding 40°C, while the Central Highlands and Southern regions experienced widespread heat early in the year. Rainfall from May onward was significantly above average in many areas, with May rainfall 20-80% above MYA nationwide and localized areas exceeding 200%. In June, heavy rains were driven by Tropical Storm No. 1, especially impacting provinces from Ha Tinh to Quang Ngai with rainfall 300-600% higher than MYA.

Forecasts indicate the East Sea will see approximately 811 storms in the coming months, with around 45 potentially affecting mainland Vietnam, particularly during the latter half of the rainy and stormy season. Moderate to heavy rain episodes are expected nationwide, with concentrated heavy rains in the Northern region in August-September and the Central region in September-October. Rainfall in these periods may be 10-30% above MYA. From November to January 2026, heavy rains will focus more on Ha Tinh to Quang Ngai and the eastern Central Highlands, while the Northern region will experience declines in rainfall by 5-15%. Cold air masses are predicted to become active from October, with severe cold spells possible in the Northern region from mid-December, including risks of frost and ice in high mountainous areas.

Despite the forecasts for varying rainfall, the ENSO cycle remains neutral, indicating no significant El Nino or La Nina event for the foreseeable future. Rainfall from August to October 2025 is generally close to MYA, with localized increases in certain coastal and central provinces. From November 2025 to January 2026, rainfall will decrease in some regions but increase by 5-15% in areas such as Hue to Quang Ngai and parts of the South Central Coast. It is necessary to prepare for risks of floods and landslides due to heavy rain, particularly from November to December in central provinces including Ha Tinh to Quang Ngai and the eastern parts of Gia Lai to Lam Dong.

Fruit and vegetable exports expected to fall short of yearly target

Vietnam Net - E | English | News | July 18, 2025 | Supply Chain Issues

Fruit and vegetable exports saw a 50% increase in June 2025, reaching 750 million USD, contributing to a total of 3.05 billion USD in the first half of the year. Despite this rebound, challenges such as seasonal supply gluts, limited processing infrastructure, and inconsistent compliance with international quality standards continue to constrain growth. Supply chain bottlenecks during peak harvests lead to price pressures and post-harvest losses, while dependency on key markets like China and the US exposes the sector to trade risks.

Vietnamese lychee exports rose by 60% year-on-year, with China approving additional planting areas and packing facilities for durian and planning inspections for pomelo orchards to formalize export protocols. Exporters are encouraged to adopt clean production, improve residue testing, and enhance traceability to access high-end markets. However, post-harvest processing remains a bottleneck, exemplified by the lack of irradiation facilities in northern Vietnam, which increases costs for exports to the US.

Vietnamese fruit faces competition from well-branded international counterparts and lacks strong global recognition, despite securing advance orders for the US market. Japan is an emerging market, with growing demand for Vietnamese lychee, mango, dragon fruit, and longan. Value-added strategies such as dried fruit production, eco-friendly packaging, and transparent traceability are suggested to increase competitiveness and consumer appeal in Japan.

Efforts to improve export logistics to China include shifting transport modes to sea and rail and prioritizing perishable goods at customs. Long-term sector resilience depends on investing in high-quality cultivation zones, adopting certified production standards like VietGAP and GlobalGAP, enhancing pesticide and residue control, and scaling up deep-processing technologies. These measures aim to diversify exports, add value, prolong freshness, and reduce reliance on fresh fruit sales to strengthen Vietnam’s position in global markets.

Đốc thúc gỡ nút thắt về mặt bằng cụm dự án truyền tải quan trọng tại Đồng Nai

Urgently Resolving Land Issues for Key Transmission Project Cluster in Dong Nai

Bao Dien Tu | Local Language | News | July 18, 2025 | Critical Infrastructure Failure

The National Power Transmission Corporation (EVNNPT), along with the Southern Power Project Management Board (SPMB) and the Power Transmission Project Management Board (NPTPMB), is advancing several key transmission projects in Dong Nai province to support the power output of Nhon Trach 3 and Nhon Trach 4 Power Plants. These projects are crucial for transmitting power, improving grid connections, and supporting socio-economic development in southern Vietnam. Despite substantial local authority support and some land clearance progress, certain households continue to obstruct construction, particularly at position number 2, a critical site shared by multiple transmission circuits.

The 220kV transmission line from Nhon Trach 3 Power Plant to Long Thanh 500kV Substation aims to be energized in the third quarter of 2025, with partial foundation and tower construction completed. However, obstructions at position number 2 have delayed progress. The 220kV Nhon Trach 3 – My Xuan – Cat Lai branch has completed most groundwork but awaits clearance at the same critical site for completion. Additionally, the 220kV Long Thanh – High-tech transmission line is scheduled for energization in December 2025, but compensation plans remain unresolved. The 220kV substation at Nhon Trach Industrial Park is also delayed due to incomplete land handover and outstanding compensation approvals.

Mr. Hong Trng Hiu, Deputy Chief of the Office of the State Steering Committee for important national programs, stressed the national significance of these projects, as they will increase total source capacity by over 1,600MW. He highlighted that the incomplete projects may cause wasted capacity as Nhon Trach 3 Power Plant is set for commercial operation in August 2025. Mr. Hong urged EVNNPT and local authorities to intensify efforts to resolve land clearance obstacles, especially at position number 2, and recommended decisive intervention by Dong Nai province to ensure project timelines.

EVNNPT’s General Director Phm L Ph instructed project boards and contractors to focus resources on accelerating construction, coordinate closely with local authorities, and promptly report any unresolved issues for higher-level resolution. The goal is to complete land clearance and construction activities by July 2025 to meet energization schedules and ensure the projects contribute effectively to national energy security and local economic benefits.

Try the Daily Briefing for your country of choice for two weeks--free of charge and with no obligation.

Have a service or subscription question? We'd be happy to hear from you.

How can we help?
Full Name:
Email Address:
Type of Inquiry:
Country of Interest:

Contact us for a free trial of the Daily Briefing for your country of choice.


We currently cover:
South Korea
Japan
China
Taiwan
Vietnam
India

info@eruditerisk.com

The Daily Briefing is delivered Monday through Thursday via email.

Each day's reports include a combination of:

Takes
Takes are our deep dives into a topic of enduring interest or concern. Takes include copious references to all the media resources we gathered to build them.

Developments
Developments are key issues and incidents being heavily reported on in country. These are the centers of local thought gravity around which everything else revolves.

Risk Media
Summaries and analysis of the most important risk issues reported on in media, arranged by risk category. Learn about risk trends and issues while they are developing--before they blow up.

Ops Media
Summaries and analysis of the most important operational issues reported on in media, arranged by operations category. See what's changing in your market, and what's not.

Government Releases
Government press and data releases on key economic data, regulation, law, intiatives, incidents. Straight from the government's press to your eyes in less than a day.

Embassy and Business Association Releases
Statements and news releases from foreign embassies and business/industry associations, including chambers of commerce.

The Daily Briefing is comprehensive!

The Daily Briefing can run 50-100 pages each day!

Luckily, Erudite Risk tailors every report specifically to you.

Content Filtering
We try hard to ensure that every piece of information included in each day's reports will be of interest to our readers.

To fulfill our goal of comprehensively monitoring the intelligence landscape and also keeping reports readable, we build big reports--then deliver only the information that applies to you.

Each Daily Briefing is a bespoke report matched to your concerns. Tell us what you want in it, or we can match it to your professional needs. It's that easy.