Vietnam Industry and Trade News Bulletin for October 31, 2025

A. POSITIVE NEWS

1. Vietnam Calls for Green Investment and Digital Technology Transfer in APEC

At the 36th APEC Ministerial Meeting in Gyeongju (South Korea) on October 30, Minister Nguyen Hong Dien delivered an important speech emphasizing regional cooperation for sustainable trade.

• Digital Transformation & AI: Vietnam welcomed South Korea’s AI Initiative, stressing human-centric development. The Minister proposed APEC members support AI capacity building, human resource training, and provide affordable AI tools for the public.
• Supply Chains: Emphasized diversifying supply chains and developing modern logistics infrastructure resilient to climate change. Vietnam called for investment, green finance, and technology transfer to ensure seamless regional trade flows.
• Multilateral Trade: Affirmed the WTO’s central role and announced Vietnam’s ratification of the Agreement on Fisheries Subsidies Phase I and participation in the MPIA.

2. Vietnam and Mexico Strengthen Trade Cooperation

On the sidelines of the APEC meeting, Minister Nguyen Hong Dien met with Mexican Minister of Economy Marcelo Ebrard Casaubon to promote bilateral ties.

• Agreements: Both sides agreed to maintain economic achievements and find new solutions to facilitate business cooperation.
• Action: Continue implementing business matching activities and helping enterprises utilize CPTPP incentives.
• Steel Issue: Minister Dien requested Mexico to resolve difficulties for Vietnam’s steel exporters, to which Minister Casaubon agreed to create favorable conditions for information provision and rights protection.

3. MoIT Signs MOUs with UK Partners

During the official visit of General Secretary To Lam to the UK, Deputy Minister Nguyen Hoang Long signed two Memoranda of Understanding (MoUs).

• Partners: Signed with the UK Foreign, Commonwealth and Development Office and the Department for Business and Trade.
• Scope: The agreements cover clean energy cooperation and product safety, building on effective existing relations.

4. Autumn Fair 2025: Over 100 Agreements Signed

The First Autumn Fair 2025 concluded successfully after 5 days, proving its role in stimulating domestic consumption and international integration.

• Results: Over 100 cooperation agreements and MoUs were signed in investment, trade, and technology transfer.
• Impact: Attracted hundreds of thousands of visitors daily, with stable traffic in thematic booths and cultural spaces.
• International: Featured sessions with partners from Japan, Korea, China, Singapore, New Zealand, and the EU.
• Adjustment: The MoIT proposed scaling down the Closing Ceremony (no fireworks or live broadcast) to share with compatriots suffering from floods in the Central region.

B. GENERAL ECONOMIC HIGHLIGHTS

1. US-China Summit: Exceeding Fears but Below Expectations

The recent summit between President Donald Trump and President Xi Jinping resulted in a trade truce but lacked a comprehensive deal.

• Trade Truce: Agreed to a truce for at least one year on tariffs and export controls.
• Tariffs: US to reduce fentanyl tax to 10% and extend suspension of 24% reciprocal tax; effective tariff on Chinese goods drops from 42% to 32%.
• Technology: US freezes “Affiliates Rule” on entities; China suspends new export controls on rare earths.
• Agriculture: China commits to buying at least 12 million tons of US soybeans this crop year.
• Market Reaction: Markets reacted negatively due to the absence of a “grand bargain” or Joint Statement.

2. Consumer Spending: Deciding Factor for Growth

With exports uncertain and public investment slow, domestic consumption (64% of GDP) is the key driver for double-digit growth but is currently weakening.

• Decline: Household consumption dropped from 68.1% of GDP (2016-2019) to 54.9% (2020-2024).
• Confidence: Consumer confidence hit a post-COVID low in Q2/2025; household deposits rose 12% as people hoard cash.
• Recommendations: Experts suggest increasing real income (tax deductions), reducing basic living costs (public service transparency), and implementing smart stimulus packages.

3. “Smart Integration”: New Direction for Economy

Experts call for a shift from assembly-based growth to “smart integration” to increase domestic value added.

• Reality: Vietnam is a top exporter of phones and electronics, but domestic value added is only about 8%.
• Risk: The “assembly for the world” model risks a middle-income trap where laborers receive a tiny fraction of product value.
• Strategy: Shift from “sincere” integration to proactive, flexible integration that handles sophisticated global trade measures effectively.

C. ENERGY

1. France’s New Electricity Pricing Policy

From November 1, France reforms its peak/off-peak pricing to align with solar energy abundance.

• Change: Abolishes morning and evening off-peak hours.
• New Schedule: Off-peak hours will be at night (for EVs) and midday (11h-17h) to utilize solar power.
• Goal: Reduce strain on the grid during high-emission peak hours and stabilize retail prices.

2. China Builds Two Super Dams Simultaneously

On October 28, China blocked the Yalong River at two points to start the Mengdigou and Yagen I hydropower projects (2.7 million kW total).

• Significance: First simultaneous blocking of two sites on this river.
• Model: Part of a pilot to integrate hydro, solar, and wind power, targeting 78 million kW on the Yalong River by 2035.

3. Ban Kieng Hydropower Project Inspection Proposed

The prolonged construction of the Ban Kieng project in Tuyen Quang has caused environmental damage.

• Status: Construction suspended; dam concrete at 54%.
• Damage: Waste dumping caused landslides burying farmland; water supply pipes for locals were broken.
• Order: The developer must dredge streams, repair water systems, and finding a safe waste disposal site. Authorities proposed a comprehensive safety and environmental inspection.

4. Green Energy Precondition for Green Transition

To achieve green growth in other sectors, the energy input must first be green.

• Challenge: Rising demand vs. limited supply; dependence on fossil fuels; weak grid infrastructure.
• Viewpoint: Energy transition impacts emission reduction, provides green input for the economy, and requires stable, affordable quality.
• Proposal: A unified Resolution on energy is needed to address land, infrastructure, and finance issues concretely.

D. IMPORT – EXPORT

1. EU IUU Regulations Impact Exports

Vietnam’s seafood market share in the EU dropped by 2/3 since the “yellow card” in 2017.

• Obstacle: Violations by fishing vessels in foreign waters remain the main barrier (e.g., arrest in Thailand in Feb 2025).
• Consequence: 100% inspection of shipments, increasing costs by 15-20% and delaying clearance.
• Urgency: Compliance is now critical not just for the EU but as a “passport” to other high-end markets like the US and Japan.

2. Durian Exports Stuck Due to Lab Maintenance

Nearly 2,000 containers of Dak Lak durian were delayed as labs paused for maintenance, causing losses.

• Cause: Reactive management and lack of a closed value chain system led to bottlenecks.
• Solution: Shift to value chain management led by key enterprises, applying digital traceability to ensure transparency and prevent recurring “jams”.

3. Green Logistics Challenge

Vietnamese exporters face pressure to adopt green logistics to meet global standards like ESG and carbon taxes.

• Hurdles: Poor infrastructure synchronization (reliance on road transport) and high costs of green logistics.
• Response: Companies are setting supplier standards but struggle to find green transport partners for remote sourcing areas.

E. DOMESTIC MARKET

1. Rampant Cheap Imported Fruit

Imported fruit with unclear origins is flooding the market, often mislabeled to deceive consumers.

• Data: Chinese fruit accounts for 87% of imports at Thu Duc market.
• Fraud: Traders often label cheap imports as high-end goods (US, Korea) to hike prices.
• Advice: Consumers should buy from reputable sources with traceability; authorities must tighten origin controls.

2. “Green Tick” for E-commerce Responsibility

HCMC launched the “Green Tick” program for e-commerce to protect consumer trust.

• Aim: Combat fake goods, false ads, and misuse of influencers (KOLs).
• Expansion: Builds on the success of the traditional retail “Green Tick” which attracted over 3,000 certified products.

F. E-COMMERCE

1. Cross-Border E-commerce: A “Passport” to the World

Cross-border e-commerce is becoming a strategic export channel for Vietnamese firms.

• Scale: Vietnam’s e-commerce market hit $25 billion in 2024, growing 20%.
• Strategy: A key pillar for 2026-2030 to build a sustainable digital export ecosystem.

2. Data Leakage Erosions Digital Trust

Despite regulations, data leaks remain a severe issue, fueling cyber fraud.

• Damage: Cyber fraud caused estimated losses of 18.9 trillion VND in 2024.
• Failure: Many firms fail to implement strict encryption or “Zero Trust” models, leaking transaction history and personal data.
• Need: Security must be treated as a competitive value, not just a compliance cost.

G. TRADE DEFENSE

1. Investigation into Chinese HRC Steel Evasion

MoIT initiated an investigation into anti-dumping duty evasion regarding Chinese Hot Rolled Coil (HRC) steel.

• Tactic: Suspicions that importers use HRC with widths of 1,880mm-2,300mm to evade taxes applied to narrower coils.
• Impact: Cheap imports pressure domestic production; current taxes on regulated HRC are 23.58%-27.83%.
• Support: Experts back the move as necessary to ensure fair competition and protect the validity of trade defense measures.