Vietnam Economic News: 13.12 - 20.12.2025
Summary of Vietnam Economic News: 13.12 - 20.12.2025
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Summary of Vietnam Economic News: 13.12 - 20.12.2025 ---
VIETNAM STARTS WORK ON RAIL LINK TO CHINA AMID INFRASTRUCTURE SPENDING SPREE
Reuters News– 19 December 2025
Vietnam on Friday started construction on several large infrastructure projects, including five stations of a railway system linking it with China, the government said. The country manufacturing hub has been ramping up public investments as one of its key drivers of economic growth, which is targeted at above 8% for this year and above 10% in 2026. The 391 km (243 mile) railway, with a price tag of 203.2 trillion dong ($7.72 billion), will run from the border city of Lao Cai and pass through the capital Hanoi before reaching Haiphong, home to the largest seaport in northern Vietnam, the government said in a statement. Construction work on the railway tracks will begin late next year, the government said, adding that the entire project will be completed by 2030. Vietnam said early this year that it would receive loans from the Chinese government for the project. The railway project is part of a giant spending plan involving 234 infrastructure projects with a combined investment of 3,400 trillion dong ($129.23 billion), 18% of which will be funded by the state while the rest will come from other sources, including the private sector, it said. The total investment includes already completed projects such as two hospitals in Ninh Binh, the expansion of Noi Bai airport in Hanoi and a military air base in Phan Thiet.
VINGROUP SIMULTANEOUSLY LAUNCHES AND INAUGURATES 11 KEY PROJECTS IN VIETNAM
Dow Jones Newswires German – 19 December 2025
To celebrate the 14th National Congress of the Communist Party of Vietnam, Vingroup simultaneously launched and inaugurated 11 major projects across the country, spanning urban development, infrastructure, green energy, and heavy industry. The projects represent a record total investment of about VND 3.4 quadrillion, with the private sector contributing 82%, marking the largest coordinated investment initiative to date. The center piece is the Olympic Sports Urban Area in Hanoi, Vietnam’s largest-ever urban project (over 9,100 hectares, VND 925 trillion). Its core is the Trong Dong Stadium, a FIFA-standard, culturally inspired, green and smart stadium with a capacity of up to 135,000 seats, expected to be completed in 2028. Other key projects include: Ha Long Xanh and Cam Ranh Bay mega urban complexes, Song Tri Ward Urban Area in Ha Tinh, A social housing project in Hung Yen, Vincom Plaza Vinh shopping center in Nghe An, Tuan Chau Public Park, the country’s largest ecological and cultural park, The Ben Thanh – Can Gio high-speed railway, Vietnam’s first high-speed rail line, Two large wind power plants contributing over 2,375 GWh annually toward Vietnam’s Net Zero 2050 goal, and the VinMetal steel manufacturing plant in Vung Ang, set to become a major high-tech steel hub. Government leaders, including Prime Minister Pham Minh Chinh, highlighted these projects as critical foundations for modern infrastructure, sustainable growth, and national industrialization. Collectively, they aim to boost socio-economic development and support Vietnam’s goal of becoming a top 30 global economy by 2030.
SPO PROVIDED FOR VIETCOMBANK'S SUSTAINABILITY BOND FRAMEWORK
Dow Jones Newswires – 19 December 2025
Sustainable Fitch has issued a Second-Party Opinion (SPO) on Vietcombank’s sustainability bond framework, rating its alignment with international standards as “Good.” The framework is considered consistent with the ICMA Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines. Vietcombank, a majority state-owned bank headquartered in Hanoi, had total assets of about VND 2,380 trillion (USD 98 billion) as of end-September 2025, with lending mainly to corporates, individuals, and SMEs. Under the framework, bond proceeds can fund seven green categories—including renewable energy, sustainable transport, green buildings, water management, biodiversity, waste management, and sustainable manufacturing—and five social categories, such as healthcare, education, affordable housing, basic infrastructure, and food security. Sustainable Fitch found the project evaluation and selection process to follow best practice, with clear separation of responsibilities. Proceeds will be earmarked, with any unallocated funds held in cash or equivalents. Annual allocation and impact reporting, verified by an external party, is also planned. Overall, the assessment supports the credibility of Vietcombank’s sustainability bond framework and its use for financing environmentally and socially beneficial projects.
VIETNAM'S DOMESTIC COFFEE PRICES DROP TO MULTI-MONTH LOWS ON HIGHER SUPPLY
Reuters News – 18 December 2025
Vietnam's domestic coffee prices fell to their lowest level since March last year, tracking global trends, as supply increased and favourable weather supported cherry-picking and drying amid weak demand, traders said on Thursday. In the Central Highlands, farmers sold beans at 88,700 dong to 90,000 dong ($3.37 to $3.42) per kg, down from last week's 101,300 dong to 102,000 dong. Robusta coffee for March delivery lost $294 from the beginning of this week to $3,705 per kg by Wednesday's close, its lowest level since August 8, LSEG data showed. "Farmers are picking the remaining cherries and have released more beans in recent days, though not in large volumes as they are under little pressure to sell," a trader in the coffee belt said. "At the same time, exporters remain very cautious," the trader added. Another trader said output has been mixed in the Central Highlands this crop year. "Farmers in Dak Lak, the main coffee-producing province, reported higher yields, while the neighbouring provinces of Lam Dong and Gia Lai have seen less favourable results," the second trader said. Traders offered 5% black and broken-grade 2 robusta at a discount of $225 to $275 per ton to the March LIFFE contract. Another trader quoted a $300 premium to the March contract, compared with a $100 premium a week ago. Coffee farmers from West Lampung said that ongoing rainfall in the region may threaten the growth of coffee plants and could affect the August harvest. "Next year's coffee harvest will likely decrease by around 30% to 40%," one farmer said. ($1 = 26,300.0000 dong)
FOREIGN ARRIVALS TO VIETNAM HIT RECORD HIGH DESPITE POLLUTION, FLOODS
Reuters News – 16 December 2025
Vietnam is on track to receive a record high of 21 million foreign tourists this year, reflecting the country's strong recovery from the COVID-19 pandemic, its culture ministry said, despite chronic air pollution and deadly flooding. With a long coastline, natural landscapes and a rich history and culture, Vietnam has emerged as one of the most popular tourist destinations in Southeast Asia. The country on Monday marked the arrival of the 20 millionth foreign tourist of the year, with a ceremony held on Phu Quoc Island, the Ministry of Culture, Sports and Tourism said in a statement late on Monday. The number of foreign arrivals this year will beat the previous record of 18 million set before the pandemic in 2019, and is up 19.3% from last year, the ministry said. Vietnam's capital Hanoi has this year topped the list of the world's most-polluted cities on several occasions, while other top tourist sites like Hue, Hoi An and Nha Trang suffered heavy flooding. In 2021, Vietnam reported less than 160,000 foreign arrivals, the lowest in recent history, due to COVID-related travel restrictions. China was the largest source of foreign tourists to Vietnam during the first 11 months of this year, accounting for a quarter of the total, according to data from the National Statistics Office. Other major sources include South Korea, Taiwan, the United States and Japan.