Vietnam Industry and Trade News Bulletin for November 13, 2025

A. POSITIVE NEWS

1. Dak Lak Lychees Ripen Early, Mass Exports Begin Farmers in Dak Lak are enjoying a successful early lychee harvest with high yields and good prices.

• Exports: Dak Lak lychees are now being exported to Japan, China, and Cambodia, expanding beyond the traditional domestic market in the South .
• Prices: Early season prices range from 55,000 – 62,000 VND/kg, significantly higher than last year’s 40,000-45,000 VND/kg.
• Scale: The province has 3,264 hectares of lychees, with an estimated output of nearly 21,180 tons.

B. GENERAL ECONOMIC HIGHLIGHTS

1. PM Directs Improvement of Business Environment Prime Minister Pham Minh Chinh signed Official Telegram No. 63/CD-TTg on May 12, 2025, demanding strict discipline and enhanced responsibility to improve the business environment.

• Task: The Ministry of Finance and VCCI are tasked with proposing specific solutions to boost national competitiveness by the June 2025 Government meeting .
• VCCI Role: VCCI is urged to act as a bridge for the business community, promptly identifying difficulties and conducting independent research on the investment climate .

2. Proposal for Hai Phong Free Trade Zone Pilot The Minister of Finance presented a draft resolution to the National Assembly proposing the establishment of a Free Trade Zone in Hai Phong.

• Goal: To pilot breakthrough mechanisms to attract investment, finance, trade, and high-quality human resources, boosting exports and industrial R&D.

3. Proposal: Inspections Limited to Once a Year A draft National Assembly resolution proposes limiting inspections of businesses to no more than once a year, unless there is clear evidence of violation.

• Principles: The proposal also emphasizes prioritizing remote, data-based inspections and exempting compliant businesses from physical checks to prevent harassment .

4. 2% VAT Reduction Extended to End of 2026 The government proposes extending the 2% VAT reduction (from 10% to 8%) until December 31, 2026.

• Scope: Applies to most goods and services, excluding telecommunications, finance, banking, real estate, and metal products. The policy aims to stimulate consumption and support businesses .

C. ENERGY

1. Expanding VAT Reduction to Petrol and Oil The draft resolution on VAT reduction proposes including petrol and oil in the list of goods eligible for the 2% tax cut.

• Rationale: Although subject to excise tax, fuel is a critical input for production and daily life. Reducing VAT would help stabilize macroeconomics and support consumers .
• Review: The National Assembly’s Finance and Budget Committee largely agrees but requests a careful assessment of the impact on state budget revenue .

2. Adapting to Rising Electricity Prices With electricity prices increasing, businesses and households are finding ways to adapt.

• Impact: Electricity costs account for 8-20% of operating expenses for industries like steel and cement. Higher prices are squeezing profit margins .
• Solutions: Experts recommend support policies such as green credit and tax incentives for energy-saving investments to help businesses survive and transition .

D. EXPORT – IMPORT

1. Lang Son Reduces Customs Clearance Time Lang Son province is implementing digital solutions to speed up customs clearance.

• Digital Border Gate: The “Digital Border Gate” platform and 24/7 tax payment systems allow businesses to complete procedures and pay taxes anytime, anywhere, significantly reducing time and costs .

2. Pepper Exports High, US Tax Risks Loom Vietnam exported over 26,000 tons of pepper in April 2025 (up 58% in value). However, challenges are ahead in Q3.

• US Tax: The US may raise tariffs on Vietnamese pepper from 10% to 25-30% in Q3 2025 as part of reciprocal tax policies. This would severely disadvantage Vietnamese pepper compared to competitors like Brazil and Indonesia .

3. Vietnamese Produce at Saudi Food Show HCMC businesses participated in The Saudi Food Show 2025 to promote agricultural products and expand into the Middle East market, aiming to boost exports and brand recognition .

E. DOMESTIC MARKET

1. Another Season of Loss for Avocado and Mango Farmers

• Avocado (Lam Dong): Despite a harvest season, avocado farmers face low prices and losses. The province has 6,600 ha of avocados, but farmers are reducing acreage due to poor returns .
• Mango (Khanh Hoa): Australian mango farmers in Cam Lam are leaving fruit to rot as prices are too low to cover harvesting costs. Exports are limited due to quality issues caused by weather, and domestic processing capacity is weak .

2. Strict Penalties for Undeclared Online Business Tax The Tax Authority warns that online businesses (e-commerce, digital platforms) failing to declare taxes will face strict penalties.

• Support: Authorities have rolled out tools like eTax Mobile and electronic portals to facilitate tax payment for individuals and household businesses .

F. INTERNATIONAL INTEGRATION

1. Government Directive on FTAs for 2025 The government directed the Ministry of Industry and Trade (MoIT) to build a plan for negotiating and signing new FTAs in 2025 with potential partners in the Middle East, Africa, and South Asia.

• Focus: Diversifying markets, stimulating domestic consumption, and concluding negotiations with the US are top priorities .

2. German Businesses Committed to Vietnam The German Business Association (GBA) reaffirmed its confidence in Vietnam as a resilient and potential-filled investment destination, despite global challenges .