Vietnam Industry and Trade News Bulletin for November 04, 2025

A. POSITIVE NEWS

1. Autumn Fair 2025: A Successful Economic-Cultural Festival The success of the first Autumn Fair 2025 affirms that the Vietnamese market is not only attractive in scale and growth speed but is also a safe and friendly destination.

• Results: The fair achieved comprehensive results, far exceeding targets, attracting over 1 million visitors and generating nearly 5,000 billion VND in transactions .
• Impact: It positioned itself as a national-level event for trade, investment, and cultural promotion. Prime Minister Pham Minh Chinh emphasized that the fair became a “festival of creative technology and cultural art,” asserting that economic development must go hand in hand with cultural and human development .
• Direction: The Prime Minister requested the Ministry of Industry and Trade (MoIT) to build a model for holding the Autumn Fair annually and to urgently propose plans for the second Spring Fair in 2026.

B. GENERAL ECONOMIC HIGHLIGHTS

1. Switzerland Eager to Accelerate FTA with Vietnam Swiss President Karin Keller-Sutter expressed hope to speed up negotiations for the Free Trade Agreement (FTA) between the European Free Trade Association (EFTA) and Vietnam. She believes the agreement will benefit all parties involved .

2. CPTPP Attracts New Members The CPTPP is becoming a “safe harbor” amidst global trade tensions. Japan, the Philippines, and the UAE have applied to join, while South Korea is considering a similar move. The bloc represents a market of nearly 600 million people and 15% of global GDP .

3. EVFTA After 5 Years: 0% Tax but Market Share Stagnant Five years into the EVFTA, bilateral trade has increased by 30%, putting Vietnam in the EU’s top 10 exporters. However, Vietnam’s market share in the EU has barely moved.

• Paradox: Despite the 0% tariff advantage, the export value has hovered around $1-1.3 billion without significant breakthroughs .
• Barriers: The biggest hurdle is no longer tariffs but the EU’s strict sustainable development standards. Experts warn that the tariff advantage is shrinking as the EU expands FTAs with other regional competitors like Indonesia and Thailand .

4. Developing Standardized Export Handicraft Villages To tap into the international market, Ms. Ha Thi Vinh, Chairwoman of the Hanoi Handicraft and Craft Village Association, proposed building model craft villages that meet export standards. The state should act as a “midwife,” supporting space, equipment, and consulting to help businesses standardize production .

5. Exporters in the Exchange Rate “Gamble” With the black market USD rate nearing 28,000 VND, exporters face a test of endurance. While a high rate might seem beneficial for exports, most Vietnamese firms depend on imported materials, negating the benefit. Experts advise businesses to diversify payment currencies and use hedging tools .

6. Developing Environmental Industry as an Independent Sector The Prime Minister issued Decision 1894/QD-TTg approving the Program to develop the environmental industry (2025-2030). The goal is to turn this into an independent economic sector, contributing significantly to the national economy and ensuring technological autonomy .

7. MoIT Telegram on Safe Reservoir Operation Minister of Industry and Trade issued Telegram No. 8568/CD-BCT requiring hydropower units to strengthen inspection and operation of reservoirs to ensure downstream safety amidst heavy rains and floods in the Central region .

C. ENERGY

1. Proposal to Raise LNG Power Offtake to 75% A VIS Rating report suggests that the proposal to increase the minimum committed output (Qc) to 75% for imported LNG power projects is a crucial policy to attract investment.

• Challenges: However, progress depends on resolving infrastructure bottlenecks like LNG terminals and transmission grids. Many projects (Hai Lang 1, Quang Ninh, Ca Na) are delayed due to planning and site clearance issues .

2. Fast Energy Transition to Accelerate Green Industry The Ministry of Finance proposed integrating green transition goals into the National Industrial Development Strategy. This includes completing the legal framework for green credit and the carbon market (expected to operate in 2028) to help businesses participate deeply in global green supply chains .

3. Solar Power Partnership in Industrial Zones SolarBK, Banpu NEXT, and Amata VN are partnering to develop 227 MW of solar power at Amata City Ha Long and Amata City Long Thanh. The project is expected to start in early 2026, supporting Vietnam’s Net Zero 2050 goal .

4. Policy for Self-Produced, Self-Consumed Clean Energy The government tasked MoIT with building policies to support businesses in self-producing and using clean energy by 2030. This is part of the action program implementing Resolution 70-NQ/TW on energy security .

5. Renewable Projects Stuck Between Two Plans Many renewable energy projects in Lam Dong and Quang Ngai are stalled because provincial planning is not yet synchronized with Power Plan VIII. Lam Dong Department of Industry and Trade proposed adjusting mineral planning to allow key energy projects to proceed .

6. Support for Rooftop Solar: Max 2 Million VND per Household MoIT is finalizing a draft decision to support households installing self-consumption rooftop solar. The proposed support is 500,000 – 1 million VND per household, plus an additional 1 million VND if a storage battery (min 2kWh) is installed .

7. Energy Support Industry Faces Barriers Currently, the localization rate for wind power is only 25-30% and solar power is 35-40%. Experts point out three main challenges: small market size, limited capability of domestic firms, and barriers from EPC contractors. A mandatory localization rate policy is suggested to create market demand .

8. Removing Bottlenecks for Grid Infrastructure The transmission grid has not kept pace with renewable energy growth, leading to local overloads. Experts propose innovation in transmission pricing mechanisms and allowing private investment in the grid (open access) to solve capital shortages .

9. Energy Must Be a Step Ahead for Double-Digit Growth To support the target of double-digit GDP growth in 2026-2030, the power sector needs to grow by 12-16% annually. MoIT has submitted a draft Resolution to the National Assembly to remove difficulties in national energy development .

D. EXPORT – IMPORT

1. Philippines Extends Rice Import Ban: Seeking New Markets The Philippines has extended its rice import ban until the end of 2025. In response, Can Tho City has asked MoIT to support local businesses in participating in a contract to export 100,000 tons of rice to Senegal under a bilateral MOU .

2. Lang Son Border Trade Smooth On November 3, export-import activities via Lang Son border gates were stable with no congestion. The volume of goods passing through Viettel Logistics Park accounted for a large proportion, demonstrating the efficiency of modern logistics models .

3. Tightening Regulations on Rice Exporters MoIT is drafting a decree to replace Decree 107, adding sanctions for violations and shortening the time to revoke business certificates from 18 to 12 months. Experts support stricter discipline but emphasize fairness and the need for digital reporting to prevent fraud .

4. Resolving Origin Issues for Exporters Many textile businesses struggle to prove origin to enjoy FTA preferences (like EVFTA, CPTPP) due to reliance on imported materials (60%). The Agency of Foreign Trade is decentralizing C/O issuance and guiding businesses to improve compliance .

E. INDUSTRY

1. Support Industry for Textile & Footwear: Avoiding Import Dependence Despite being top exporters, Vietnam’s textile and footwear industries heavily rely on imported materials (footwear localization is only ~50%). The strategy to 2030 emphasizes investment in domestic material production (fabric, leather) to meet origin rules of new FTAs .

F. E-COMMERCE

1. Boosting Exports via E-commerce Alibaba.com Vietnam is deploying strategies to support Vietnamese exporters, including AI tools (Smart Assistant), upgrading global logistics, and promoting key export sectors. E-commerce is seen as a key driver for businesses to join global supply chains .

2. Vietnamese Firms Struggle with Online Exports Many businesses fail to sustain online exports due to a lack of resources and long-term strategy. Experts note that shifting to cross-border e-commerce requires a mindset change and investment for 2-3 years, not just a few months .

3. E-commerce Law Draft: Adding State Management Functions National Assembly delegates suggested adding state management functions for e-commerce to local authorities (People’s Committees) and clarifying responsibilities for livestream selling to protect consumers from fake goods and false advertising .

G. TRADE PROMOTION

1. Businesses “Sold Out” at Autumn Fair The first Autumn Fair 2025 proved its appeal as many businesses reported surging sales and crowded booths. The professional organization and media support were highly appreciated by the business community .

H. COMPETITION & CONSUMER PROTECTION

1. Synchronous Solutions to Protect Consumers Fake goods and unclear origins remain complex issues, especially on social media and livestreams. MoIT is finalizing the amended E-commerce Law to legalize and regulate livestream selling. The National Competition Commission is also deploying “Consumer-Centric Business” criteria for e-commerce .

2. Lamborghini Recall in Vietnam The National Competition Commission announced a recall of 24 Lamborghini Urus S and Urus Performante cars to check and replace the hood latch striker, ensuring safety .

I. DOMESTIC MARKET MANAGEMENT

1. Hanoi Tightens Anti-Smuggling Measures for Year-End Hanoi’s Steering Committee 389 aims to strictly control smuggling and commercial fraud during the pre-Tet period. The city is deploying a “community shield” model to encourage citizens to report violations .

2. Fake Goods Rampant in Southern Provinces Fake goods are not only in traditional markets but also on online platforms and delivery apps in the South. Authorities warn this poses risks to consumers and legitimate businesses, calling for zero tolerance .

3. Shaping Policies to Boost Domestic Trade The retail market is expected to grow strongly in 2025-2030. However, domestic firms face fierce competition. Management agencies need to perfect policies, improve the business environment, and support infrastructure development in remote areas to help local retailers compete .