Vietnam Economic News: 2.1 - 31.1.2026
Summary of Vietnam Economic News: 2.1 - 31.1.2026
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Summary of Vietnam Economic News: 2.1 - 31.1.2026 ---
VIETNAM'S LAM PLEDGES MORE REFORMS, INCLUDING TO COMMUNIST PARTY
Reuters News– 23 January 2026
Vietnam's Communist Party chief To Lam on Friday pledged to continue reforms, including those that help the ruling party maintain its leading role in the country, following his re-appointment to the top post for another five years. Speaking at a press conference at the end of the party's five-yearly congress, Lam pledged to maintain reform momentum and build a Vietnam that was independent, prosperous and happy. Lam was re-elected on Friday to Vietnam's most powerful job for the next five years after a unanimous vote by the party's central committee. President Xi of China went to Vietnam last April when both countries were hit by U.S. tariffs, calling for stronger ties on trade and supply chains. China is Vietnam's largest trading partner and a key source of materials and equipment for the Southeast Asian country's manufacturing industries.
FITCH UPGRADES VIETNAM'S LONG-TERM SENIOR SECURED DEBT INSTRUMENTS TO 'BBB-'; REMOVES UCO
Dow Jones Newswires – 22 January 2026
Fitch Ratings has upgraded Vietnam's long-term senior secured debt ratings to 'BBB-' from 'BB+', following the removal of the ratings from Under Criteria Observation (UCO). The rating actions reflect the application of Fitch's new Sovereign Rating Criteria (September 2025) and the inclusion of recovery assumptions into sovereign debt ratings for the first time. The long-term senior secured debt ratings are one notch above Vietnam's Long-Term Foreign Currency Issuer Default Ratings (LT FC IDR). These debt instruments comprise the 30-year Brady Bonds issued on 12 March 1998. Principal on the Discount Bond is fully collateralised at maturity by US Treasury zero-coupon bonds while principal on the Par Bond is 50% collateralised. Both bonds feature rolling interest collateral. The rating action reflects Fitch's expectation of average recovery prospects for Vietnam's senior unsecured debt and the additional recovery benefits derived from the secured portion of the debt instruments. This does not constitute a change to Vietnam's LT FC IDR. On 20 June 2025, Fitch affirmed Vietnam's LT FC IDR at 'BB+' with a Stable Outlook.
FDI MOMENTUM POSITIONS VIETNAM'S REAL ESTATE AS A RESILIENT HUB
Dow Jones Newswires – 21 January 2026
Vietnam's urban expansion is increasingly shaped by housing supply financed through foreign capital, exemplified by large-scale developments such as the development of Vinhomes Green Paradise, a 2,870-hectare coastal project in Can Gio. By integrating ESG++ principles and aligning with international benchmarks such as BREEAM, the developer is positioning its large-scale assets to meet the transparency and sustainability requirements of global institutional investors. By the end of October 2025, Vietnam's real estate sector accounted for the second-highest volume of new FDI registrations, totaling USD2.75 billion. With USD1.5 billion successfully disbursed, the sector's performance aligns with steady capital inflows into the manufacturing and technology fields, reflecting a stable investment environment. Driven by policy consistency and an open economic framework, Vietnam continues to attract significant international investment. This trend is further supported by the country's rapid urbanization and stable macroeconomic fundamentals. Additionally, ongoing improvements in infrastructure and public services are contributing to a shift in how international investors evaluate the market's long-term growth potential. Recent legislative updates, specifically amendments to the Housing Law, the Real Estate Business Law, and the Land Law, have standardized the regulatory framework and increased market transparency. Consequently, investors are increasingly prioritizing projects with verified legal compliance. This shift, coupled with a stable monetary environment and average lending rates of 7-9%, has lowered barriers to financing and led to a rise in sectorwide acquisitions. Vietnam's infrastructure landscape is being reshaped by a USD49 billion investment involving 250 projects. Notable projects include the development of Ring Roads 3 and 4, and Long Thanh International Airport. As transport links improve between northern and southern regions, new urban centers are emerging, leading to increased real estate activity in newly accessible corridors.
VIETNAM PLANS TAX POLICIES TO TACKLE SPECULATION IN REAL ESTATE MARKET AND TO IMPLEMENT CIGARETTE EXCISE TAX FROM 2027
Reuters News – 14 January 2026
Vietnam plans tax policies to discourage speculation in housing, particularly from foreigners, amid rapidly rising property prices, state media reported on Wednesday. Housing demand is high in Vietnam, where capital controls help to limit overseas purchases, and domestic demand has recently been boosted by rapid governmentbacked growth in bank lending. The amount of capital flushing into the sector has encouraged speculation, with houses changing hands within months and remaining vacant for long periods. Entire neighbourhoods in big cities have also stayed empty long after construction had been completed. In September Prime Minister Pham Minh Chinh called for the construction of more houses to cool soaring real estate prices. Also, Vietnam will introduce an absolute excise tax on cigarettes starting in 2027, with rates increasing incrementally to 10,000 dong ($0.38) per pack by 2031 as part of a campaign to curb smoking, state media reported late on Tuesday. The amended Special Consumption Tax law, passed last year, will adopt a mixed tax regime starting from 2027, combining the existing 75% base rate with an absolute levy starting at 2,000 dong per pack and rising over the following four years.
VIETNAM TO TWEAK RULES TO ENCOURAGE LNG POWER PLANT DEVELOPMENT
Reuters News – 21 January 2026
Vietnam plans to adjust its rules on the government's guaranteed purchase of power from liquefied natural gas-fired plants as it seeks to revive interest from developers. The country targets having a fleet of LNG-fired power plants with combined capacity of 22.5 gigawatts by 2030, but little progress has been seen recently. The Ministry of Industry and Trade is drafting a new decree that would raise the guaranteed offtake volume from LNG power plants to at least 75% from at least 65%, it said in a statement. The new decree would also extend the guaranteed period to 15 years from 10 years, it added. This will "establishing a legal framework to promote investment, construction and commissioning of plants using imported LNG," the ministry said. Vietnam currently has only two operational LNG-fired power plants with combined capacity of 1.62 GW.
VIETTEL BEGINS CONSTRUCTION OF VIETNAM'S FIRST CHIP PLANT, TRIAL RUN TARGETED BY END-2027
Reuters News – 16 January 2026
Vietnam's military-run telecom company Viettel on Friday began construction of the country's first semiconductor fabrication plant, with trial production expected to start by late 2027, part of Vietnam's plan to create its own semiconductor manufacturing ecosystem. After the 27-hectare facility, located in Hoa Lac Hi-Tech Park on the outskirts of Hanoi, completes construction and technology transfer by the end of next year, it will go into trial operation, fine-tune its processes and upgrade its equipment through to 2030, Viettel said in a statement. "The new fabrication facility will enable Vietnam to engage in all six stages of the semiconductor value chain, including the technologically complex wafer fabrication process, which is not yet performed domestically," the statement said. The plant will focus on chip research, design, manufacturing, and testing, catering to sectors such as aerospace, telecommunications, medical equipment, and automotive manufacturing. Vietnam has emerged as a hub for semiconductor testing and packaging services, attracting global players like Intel, Samsung Electronics, Amkor Technology, Qualcomm, and Marvell Technology. While China and Taiwan still dominate the back-end semiconductor manufacturing sector, including assembly, testing, and packaging (ATP), Vietnam has seen rapid growth. The country is projected to raise its share of global ATP capacity to 8%-9% by 2032, climbing from 1% in 2022, according to a 2024 report by the U.S. Semiconductor Industry Association and Boston Consulting Group. Plans for the facility also include future capacity for integrating emerging technologies, Viettel Chairman Tao Duc Thang said. As part of its broader strategy, Vietnam's government also plans to train 50,000 chip design engineers by 2030 and grow the semiconductor workforce to over 100,000 by 2040.