| Vietnam News Today (Jan. 6) notable headlines Vietnam–Indonesia ties: Seven decades of partnership and strategic vision for prosperous Southeast Asia Vietnam, EU ink €50 mln deal to develop green and digital workforce Vietnam’s GDP expands 8.02% in 2025, second highest rate in 15 years FDI inflows into Vietnam exceed 38 billion USD in 2025 Agoda names three top Vietnamese destinations for Korean travelers Major events shape Vietnam's tourism industry on recovery track Vietnamese exports face 21 new trade defence cases across 11 markets AFK Sistema encouraged to expand high-tech investment in Vietnam Hanoi attracts more than US$4.3 billion in FDI in 2025, sees year-end surge |
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| Party General Secretary To Lam (L) and Indonesian President and Chairman of the Great Indonesia Movement Party (Gerindra) Prabowo Subianto announce the elevation of Vietnam – Indonesia relations to a Comprehensive Strategic Partnership in Jakarta, on March 10, 2025. (Photo: VNA) |
Vietnam–Indonesia ties: Seven decades of partnership and strategic vision for prosperous Southeast Asia
Professor Vijay Sakhuja, a renowned scholar of geopolitics and international relations and former Director of the National Maritime Foundation of India, has characterised Vietnam–Indonesia ties as among the most exemplary and strategically profound bilateral relationships in Southeast Asia.
In his article entitled “Vietnam–Indonesia: Cherishing Seven Decades of Bilateral Relations,” published in the Policy Brief Special Edition, Professor Sakhuja offered an in-depth assessment of more than 70 years of Vietnam–Indonesia relations, noting that over seven decades of formation and development, the relationship has transcended the confines of conventional bilateral cooperation to emerge as a key pillar of the regional architecture.
Established in the 1950s, at a time when both nations were emerging from prolonged struggles for national independence, the relationship has been forged by deep political trust, converging strategic interests, and a shared vision of peace, stability, and sustainable development in the region.
The two countries share rare commonalities in modern history, as both secured independence through arduous and protracted struggles, nurturing a strong sense of national self-reliance and an enduring determination to safeguard sovereignty. According to the scholar, these shared historical experiences and aspirations have fostered a profound mutual understanding, laying a solid foundation for the official establishment of diplomatic relations on December 30, 1955.
From a traditional friendship, the two countries have progressively elevated their relationship, reaching the Strategic Partnership level in 2013 and, notably, the Comprehensive Strategic Partnership in March 2025 during Party General Secretary To Lam’s visit to Indonesia. Professor Sakhuja described this upgrade as a “historic turning point,” reflecting the highest degree of political trust between the two nations, cited VNA.
Geopolitically, both Vietnam and Indonesia hold key positions in the Indo-Pacific. Vietnam lies along vital maritime routes and supply chains linking Northeast Asia with mainland Southeast Asia, while Indonesia – the world’s largest archipelagic state – commands strategic sea lanes such as the Malacca, Sunda, and Lombok Straits. This strategic complementarity positions the two countries as natural partners in advancing regional economic connectivity.
Economics, the author observed, has emerged as the most dynamic pillar of bilateral relations. Indonesia is currently Vietnam’s second-largest trading partner within ASEAN, while the latter ranks as the former’s fourth-largest. Both sides aim to raise bilateral trade to 18 billion USD by 2028. Strategic investment cooperation also features prominently, exemplified by VinFast’s planned 1.2 billion USD investment in an electric vehicle manufacturing plant in Indonesia. Beyond its economic value, the project symbolises Vietnam’s growing capabilities in green technology and innovation, aligning closely with Indonesia’s energy transition and sustainable development goals.
As a maritime security expert, Professor Sakhuja underscores the importance of defence and security cooperation, assessing that Vietnam and Indonesia share a common vision of a free, open, and rules-based Indo-Pacific, with the 1982 United Nations Convention on the Law of the Sea (UNCLOS) as a fundamental legal cornerstone. The successful conclusion of negotiations on the delimitation of the exclusive economic zone (EEZ) stands as a compelling testament to both countries’ commitment to resolving sensitive issues peacefully, contributing to stability and order in the East Sea.
At a broader level, they are core members of ASEAN, jointly bearing responsibility for maintaining intra-bloc unity and ASEAN centrality amid intensifying major power competition. According to Professor Sakhuja, close coordination between Hanoi and Jakarta is crucial in shaping a coherent Southeast Asian voice at regional and global forums.
After seven decades of partnership, the author concluded, Vietnam and Indonesia are entering a new phase of bilateral relations. Beyond serving their national interests, this relationship reflects the increasingly prominent role of both countries as responsible middle powers, actively contributing to the shaping of the region’s security and economic architecture.
Vietnam, EU ink €50 mln deal to develop green and digital workforce
Vietnam’s Ministry of Education and Training and the European Union (EU) signed a financing agreement for the Vietnam-EU Vocational Education and Training (VETVET) program, with a total budget exceeding €50 million.
The funding comprises €40 million from the EU, €10 million from the German Government, and €0.5 million from the French Government.
The program aims to enhance the quality, relevance, and accessibility of Vietnam's vocational education system, according to VGP.
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| The signing ceremony of the financing agreement for the Vietnam-EU Vocational Education and Training (VETVET) program. |
It also seeks to promote sustainable employment and entrepreneurship while building a skilled workforce capable of meeting the demands of the country's green and digital transitions.
The program will be implemented across six key pillars:
(i) Enhancing the capacity of the Technical and Vocational Education and Training (TVET) system;
(II) Fostering cooperation with the business sector;
(III) Strengthening TVET management and quality assurance systems;
(IV) Developing modern vocational training curricula;
(V) Building a communication ecosystem for the TVET sector;
(VI) Mobilizing businesses to participate in on-site corporate training.
Speaking at the signing ceremony, Mr. Rafael de Bustamante, Chargé d'Affaires of the EU Delegation to Vietnam, emphasized that this is a significant milestone as the agreement would help Vietnamese workforce equip with the essential skills required to achieve the nation's sustainable development goals.
The project specifically integrates green technology, renewable energy, innovation in the digital era, and sustainable industrial practices into the educational curriculum to ensure workers are prepared for the future economy.
Vietnam’s GDP expands 8.02% in 2025, second highest rate in 15 years
Vietnam’s economy grew 8.02% in 2025, marking the second-highest annual growth rate since 2011, driven primarily by strong performance in the services sector and industrial production, according to official data released on January 5.
The National Statistics Office under the Ministry of Finance said the country’s gross domestic product grew 8.46% year on year in the fourth quarter of 2025, accelerating from earlier quarters and underpinning robust full-year growth.
The 2025 expansion was surpassed only by 2022’s growth of 8.12%, reflecting Vietnam’s continued economic resilience despite global headwinds, including prolonged trade tensions and uncertainty surrounding US reciprocal tariff policies.
At over 8%, Vietnam’s growth rate was among the highest globally and the strongest in ASEAN, the statistics office said.
The country’s average GDP growth for the 2021–2025 period stood at approximately 6.3% per year, higher than the 6.2% average recorded in the previous five-year term.
GDP at current prices in 2025 was estimated at US$514 billion, up US$38 billion from the previous year. GDP per capita rose to US$5,026, an increase of US$326 from 2024, placing Vietnam within the upper-middle-income country group, according to national classifications, reported VOV.
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| Overview of the press conference to unveil major socio-economic indicators for the fourth quarter and the entire year of 2025, |
The services sector remains the largest contributor to economic value, accounting for more than 51.08% of total added value and growing by 8.62% year on year. Industry and construction expanded by 8.95%, contributing 43.62% of added value, while agriculture, forestry, and fisheries accounted for 5.3% of growth.
With regard to industry, industrial production recorded its strongest growth since 2019. Value added in the industrial sector rose 8.80%, contributing 35.15% to overall economic growth.
Manufacturing and processing remained the main growth engine, expanding 9.97%, the highest rate in the 2019–2025 period, and contributing 31.49% to total growth. Other industrial segments also posted gains, with construction rising 9.62%; water supply, waste management and wastewater treatment 7.82%; electricity production and distribution 6.39%; and mining 0.42%.
In 2025, nearly 297,500 businesses were newly established or resumed operations, representing a 27.4% increase year on year. On average, about 24,800 businesses entered or re-entered the market each month, while approximately 18,900 businesses exited monthly.
Business sentiment also showed signs of improvement. In the fourth quarter of 2025, the proportion of businesses reporting more favorable market conditions compared to the previous quarter rose by 1.1%, while the shares citing stable or more difficult conditions declined by 0.2% and 0.9%, respectively.
FDI inflows into Vietnam exceed 38 billion USD in 2025
Foreign direct investment (FDI) inflows into Vietnam continued to show resilience in 2025, with total newly registered capital reaching 38.42 billion USD, up 0.5% year-on-year, according to the National Statistics Office (NSO) under the Ministry of Finance.
The figures were released at a press conference on January 5, announcing Vietnam’s socio-economic statistics for the fourth quarter and the whole of 2025. Notably, disbursed FDI reached an estimated 27.62 billion USD, a year-on-year increase of 9% and the highest level recorded over the past five years.
The NSO reported that 4,054 new FDI projects were licensed in the year, with total registered capital of 17.32 billion USD. While the number of newly licensed projects rose by 20.1% compared to 2024, registered capital fell by 12.2%. Among sectors, the manufacturing and processing industry attracted the largest share of new FDI, with 9.8 billion USD, accounting for 56.5% of total newly registered capital. Real estate activities followed with 3.67 billion USD, or 21.2%, while the remaining sectors together accounted for 3.85 billion USD, or 22.2%.
In addition, 1,404 ongoing projects were granted permission to adjust their capital, with additional investment amounting to 14.07 billion USD, up 0.8% year-on-year. When combining newly registered and adjusted capital, the manufacturing and processing sector continued to dominate, drawing 18.59 billion USD, or 59.2% of the total. Real estate ranked second with 6.26 billion USD, equivalent to 19.9%, while other sectors received 6.54 billion USD, or 20.9%.
Foreign investors also remained active through capital contributions and share purchases. In 2025, there were 3,587 such transactions, with a total value of 7.03 billion USD, up 54.8% compared to the previous year. Of these, 1,305 transactions increased the charter capital of domestic enterprises, contributing 2.55 billion USD, while 2,282 transactions involved share purchases without increasing charter capital, valued at 4.48 billion USD, VNA reported.
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| Workers check products before packaging at Toyo Solar Co., Ltd., a 100% Japanese-owned solar panel manufacturer in Cam Khe Industrial Park, Phu Tho province. (Photo: VNA) |
By sector, manufacturing and processing again led capital contributions and share purchases with 2.43 billion USD, accounting for 34.6% of the total. Professional, scientific and technological activities attracted 1.29 billion USD, or 18.3%, while other sectors accounted for 3.31 billion USD, or 47.1%.
Among the 90 countries and territories with newly licensed projects in Vietnam in 2025, Singapore emerged as the largest investor, with 4.84 billion USD, representing 27.9% of newly registered capital. China ranked second with 3.64 billion USD (21%), followed by Hong Kong (China) with 1.73 billion USD (10%), Japan with 1.62 billion USD (9.4%), Sweden with 1 billion USD (5.8%), Taiwan (China) with 965.8 million USD (5.6%), and the Republic of Korea with 895.9 million USD (5.2%).
Agoda names three top Vietnamese destinations for Korean travelers
Digital travel platform Agoda has released its list of the top 10 overseas destinations for Korean travelers in 2025 based on accommodation search data, with three Vietnamese destinations making the list.
The three Vietnamese destinations are the coastal city of Nha Trang in Khanh Hoa province, the central city of Da Nang, and Phu Quoc Island in An Giang province.
Notably, Phu Quoc recorded a 63% year-on-year increase in arrivals from the Republic of Korea, climbing six places to enter the top 10 for the first time.
It is also Vietnam’s only destination that allowed all foreign visitors to enter visa-free for up to 30 days. The island’s rich eco-tourism assets, including pristine beaches and a resort-style natural environment, have helped attract growing interest from Korean travelers.
In 2025, Vietnam welcomed more than 4 million Korean visitors, ranking second among its international source markets, behind Chinese tourists, VOV reported.
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| Korean couple poses for a photo at Golden Bridge in Da Nang (Photo: nhandan.vn) |
According to the Korea Tourism Organisation and Incheon International Airport Corporation, from January to October last year, Koreans logged more than 24 million trips abroad, with around 350,000 international flights operated, both up 3.2% from a year earlier.
Digital travel platform Agoda also reported that interest in overseas travel among Koreans increased 15% year on year based on its own data.
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