Vietnam

Intelligence for Better Decision Making

Vietnam Mobilizes Emergency Measures Amid Severe Floods and Typhoon Kalmaegi Threat
Nov. 6, 2025 | Environment

Authorities across Vietnam are intensifying water management and flood mitigation efforts in response to recent extreme weather and the impending arrival of Typhoon Kalmaegi.

**Vietnamese Deputy Minister Nguyễn Hoàng Hiệp of the Ministry of Agriculture and Environment has directed operators of major hydropower reservoirs in the Vu Gia–Thu Bồn river basin to release water immediately in anticipation of Typhoon Kalmaegi, which is forecast to bring heavy rainfall beginning November 7, 2025.**
This action aims to increase flood-storage capacity and safeguard reservoir infrastructure. The Ministry is working with the Ministry of Industry and Trade and local authorities to inspect operations across interlinked reservoirs and prevent structural failures during the storm.

**Alongside this directive, Hiệp emphasized that flood regulation for hydropower reservoirs must rely on flexible, forecast-driven protocols rather than rigid inter-reservoir operating rules, which have hindered effective flood control in past events.**
The Ministry, in coordination with Da Nang city, will submit to the Government a package of proposed revisions and strategies. These include updating operating procedures to account for shifting weather patterns and climate impacts; studying coastal erosion remedies in Cửa Đại and Hoi An; investing in water regulation structures along the Quảng Huế River; constructing a new An Trạch weir; and upgrading a key irrigation reservoir to bolster downstream flood control.

**At the same time, the Department of Dyke Management and Natural Disaster Prevention, led by Director General Phạm Đức Luận, urged vessel operators to steer clear of high-risk zones and limit movements during severe weather.**
The Department has called for unified efforts to distribute relief supplies in disaster-hit areas and for the installation of an X-band weather radar in Quảng Nam province to sharpen real-time forecasting and early warnings for Da Nang.

**On the municipal level, Da Nang Vice Chairman Trần Nam Hưng recognized that although reservoir releases helped curb October floods, inadequate regulation still caused extensive downstream inundation and landslides.**
He is seeking support to implement sustainable disaster risk reduction in landslide-prone mountainous zones, construct secure resettlement sites, and launch livelihood initiatives that promote resilient housing, protective equipment, and alternative agricultural approaches.

**To ease financial burdens, the State Bank of Vietnam (SBV) issued Directive 9651/NHNN-TD on November 4, 2025, requiring credit institutions and SBV branches in storm- and flood-affected regions to roll out relief measures for customers.**
Under the directive, banks must assess borrowers’ repayment capabilities and may restructure loans, waive or reduce interest and fees, offer new low-rate credit packages, and cut existing loan interest rates by 0.5–2% annually for three to six months, all in line with current regulations. Local SBV branches must oversee implementation, collaborate with provincial and municipal authorities to aid residents, and report promptly on any challenges. The directive covers provinces in the northern, north-central, and central regions, including Sơn La, Phú Thọ, Lai Châu, Thái Nguyên, Quảng Ninh, Hà Nội, Thanh Hóa, Nghệ An, Quảng Trị, Thừa Thiên Huế, Quảng Ngãi, and Đà Nẵng.

**Meanwhile, from October 15 to November 3, 2025, Thừa Thiên Huế province endured five successive heavy rain events that triggered three major riverine floods.**
The Bo River peaked at 5.31 meters on November 3—the highest level since 2020—while Bach Ma station logged 1,739 mm of rain in 24 hours, nearly equaling Vietnam’s average annual precipitation and ranking second worldwide. These floods submerged more than 28,000 homes under 0.5–1 meter of water, inflicting severe damage on urban areas.

**Floodwaters also swept over historical landmarks in Huế, including the Imperial City and several royal mausoleums.**
Experts attribute this extreme rainfall to the convergence of strong southwest monsoons, tropical storms, cold air masses, and intertropical convergence zones. They note that Huế’s flood vulnerability dates back to the early 19th century, long before modern development and urbanization.

**Looking ahead, the National Center for Hydro-Meteorological Forecasting predicts that tropical storm Kalmaegi will enter the East Sea on November 5, then deliver strong winds and heavy rain along coastal zones from Quảng Ngãi to Đắk Lắk by November 7, with impacts potentially stretching from Da Nang to Khánh Hòa.**
It also warns that as cold air intensifies over northern and north-central regions, additional storms may form through November, sustaining flood threats to central provinces. Authorities continue to monitor these forecasts and brace for further hazardous weather.
Emergence of Financial Conglomerates and Intensifying Deposit Competition in Vietnam’s Banking Sector
Nov. 6, 2025 | Financial System

Vietnam’s banking sector is undergoing rapid expansion, driven by digital transformation and green finance initiatives.

**Banks are evolving beyond traditional deposit and lending services, branching into fund management, securities, insurance, and digital assets.**
This shift toward financial conglomerate models reflects growing demand for comprehensive wealth management solutions among individuals and enterprises.

**Despite this broadening of services, experts from the University of Economics Ho Chi Minh City and the Asian Development Bank point out that Vietnam’s financial system remains shallow in product variety compared to international peers.**
The real economy—dominated by small enterprises and informal workers—engages only minimally with capital markets. This gap creates an imbalance between the banking sector’s brisk growth and the limited economic base it is designed to support.

**As financial conglomerates emerge, regulators and industry observers question whether these larger entities can drive economic transformation and extend services to underserved clients amid slow-moving reforms.**
Policymakers face a choice between super-conglomerate models—often state-backed and prevalent in the US, China, and parts of Asia—and a Nordic-style framework favoring specialized institutions under strict yet adaptable oversight. The selected approach will shape sector stability and systemic risk.

**A critical regulatory deficiency lies in the absence of a clear legal framework distinguishing commercial banking from investment banking.**
Experts at VinUni University warn that without precise definitions and oversight, investment banking–type activities within broader conglomerates could expose the financial system and the wider economy to vulnerabilities.

**Competition for deposits has intensified as banks race to bolster year-end capital.**
Several institutions now offer over 7% on 12–13-month term deposits: PVcomBank reaches up to 9% for large sums, HDBank up to 8.1%, and other private banks between 7.5% and 8% for high-value clients. State-owned banks keep rates lower—typically 1.6% to 4.8%—while joint-stock banks pay 4.7% to 5.3% on standard retail deposits and exceed 6% for longer tenors or larger amounts. Interbank liquidity pressures have pushed overnight rates to 5.6% per annum, driving banks to lift both deposit and expected lending rates. The Big Four banks now set personal loan rates at 5.5%–6.5% for the first year before moving to floating rates, underscoring fierce competition for capital and growing demand for medium- and long-term financing in real estate and public investment projects.

**Analysts attribute the surge in deposit rates to banks’ need to attract funds amid alternative investment channels such as securities and gold.**
Household savings deposits hit a record VND 7.75 quadrillion by mid-2025, and continued inflows may cause temporary market disturbances. Observers also note that prospective rate cuts by the US Federal Reserve could ease pressure on Vietnam’s monetary authorities, helping to moderate domestic interest rate increases.

Monitored Intelligence for Vietnam - Nov. 7, 2025


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Vietnam lawmakers divided over raising retirement age to 65

Vietnam Net - E | English | News | Nov. 7, 2025 | Regulation

During the October 30 parliamentary discussion on Vietnam’s socio-economic situation, Deputy Nguyen Thien Nhan proposed raising the retirement age to 65, arguing it could add over 5 million workers to support double-digit economic growth. He also called for efforts to increase the country’s fertility rate from 1.91 to 2.1 by 2035. This proposal sparked debate due to its potential impact on labor structure, social welfare, employment quality, and public health amid Vietnam’s rapidly aging population.

Currently, by the 2019 Labor Code, retirement age is being gradually increased to 62 for men by 2028 and 60 for women by 2035. Deputy Truong Xuan Cu cautioned against a swift increase to 65, noting that Vietnam has yet to fully implement the current retirement age changes and that only a few countries set retirement ages that high. He stressed the importance of careful policy assessment to avoid negative effects on job opportunities for younger workers and suggested extensions might be appropriate only for certain sectors such as education, medicine, and research based on strong evidence.

Deputy Hoang Van Cuong highlighted the rise in life expectancy and improved health as reasons some older adults remain capable of working longer, aligning with trends in other aging societies embracing a "silver economy" where older individuals contribute actively to the workforce. However, he warned the policy must be flexible to account for the unsuitability of senior workers in labor-intensive roles and cautioned against rigid, universal retirement age increases. He also pointed out that Vietnam still has a relatively large young workforce that should be optimized before considering raising the retirement age beyond current plans.

72 Case Law Precedents in Vietnam as of October 2025: What Should Businesses and Individuals Know? (Part 2)

BLawyers Vietnam | English | AcademicThink | Nov. 7, 2025 | UndeterminedLegal Exposure

As of October 2025, BLawyers Vietnam has published the second part of 72 official case law precedents critical for businesses and individuals. These precedents cover a wide range of legal issues including land use rights, termination of de facto marriages, consumer rights regarding arbitration clauses, validity of mortgage contracts on incompletely paid properties, statute of limitations on counterclaims, and criminal liabilities in cases such as attempted murder, obscenity against minors, and aggravated offenses involving weapons or endangered species.

Additional significant rulings address administrative decisions exceeding authority, property reclamation under enforceable judgments, ownership disputes of parking areas in apartment buildings, validity of unregistered land use donations, and annulment of unlawful marriages. Child custody, termination of adoption, commencement of child support obligations, judicial review of administrative decisions, and criminal aspects of human trafficking and kidnapping for ransom are also detailed within the precedents.

The case law includes clarifications on contract validity despite formal violations, disputes over grave relocation, lottery prize claim periods, and arbitration jurisdiction for commercial disputes involving confidentiality and non-compete agreements. Recent precedents clarify employment contract terminations involving non-specialized trade union officers, dismissal of lawsuits outside court jurisdiction, and determination of inherited land use rights when wills lack specific land area.

BLawyers Vietnam highlights its expertise in legal consultation, dispute resolution, legal risk assessment, and personal legal services based on these precedents, offering support to both corporate and individual clients in Vietnam and through international arbitration venues. The information provided is not official legal advice and BLawyers invites inquiries for further clarification.

‘Salary isn’t everything’: What scientists really need to stay in Vietnam

Vietnam Net - E | English | News | Nov. 7, 2025 | UndeterminedWages and Compensation

Nguyen Quan, former Minister of Science and Technology, emphasized that salary alone is insufficient to retain scientists in Vietnam. Many provinces invite professors to return but fail to provide meaningful work, causing them to leave again. Despite longstanding policies like Resolutions 27, 20, and 29 aimed at talent development and retention, these have largely been ineffective. He highlighted Resolution 98, which permits high salaries for leaders of public research institutes, but noted no leader has accepted due to disparities with colleagues' pay and concerns about workplace dynamics.

Nguyen Quan outlined three key areas to improve talent attraction and retention in science and education. First, compensation must be practical and institutions should have operational autonomy to offer competitive salaries while government support covers investment costs. Second, strong leadership is essential; leaders must be visionary and genuinely care about staff, providing returning overseas scientists with responsibility and meaningful tasks. Third, talented scientists should receive autonomy over budgets and collaborations to ensure productive research environments. Without synchronized policies, engaged leadership, and supportive ecosystems, retaining talent remains challenging.

Associate Professor Huynh Quyet Thang, Director of Hanoi University of Science and Technology, noted the university’s recent efforts to recruit young lecturers and leading scientists in a major plan for 2025–2030, marking its largest talent recruitment initiative. While staff incomes have improved, the university remains bound by public sector pay constraints, limiting flexibility compared to private institutions. Thang agreed that aside from salary, factors such as working environment, recognition, and creative freedom are crucial to retaining young researchers.

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