Vietnam News Today (Jan. 5): Vietnam, China Push to Deepen Trade, Finance Ties
	Vietnam News Today (Jan. 6): FDI Inflows into Vietnam Exceed 38 Billion USD in 2025

Prime Minister Pham Minh Chinh (R) receives Canadian Secretary of State for International Development Randeep Sarai (Photo: VNA)

Prime Minister suggests Vietnam, Canada advance new growth drivers

Prime Minister Pham Minh Chinh on January 6 proposed Vietnam and Canada promote new growth drivers, including cooperation in science and technology and innovation, climate change response, energy transition, infrastructure and logistics development, as well as cultural and people-to-people exchanges.

Welcoming Canadian Secretary of State for International Development Randeep Sarai on a working visit to Vietnam, PM Chinh stated that the Vietnam – Canada Comprehensive Partnership has been developing positively across all fields, underpinned by a solid political foundation and shared interests and values. In recent years, leaders of the two countries have maintained frequent meetings and exchanges at multilateral forums, notably the two meetings in 2025 of the two PMs on the sidelines of the 47th ASEAN Summit in Malaysia and the G20 Summit in South Africa.

Bilateral trade turnover had reached 6.35 billion USD as of September 2025, with Vietnam ranking among Canada’s leading trade partners within the Association of Southeast Asian Nations (ASEAN) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Cooperation in defence and security, education, people-to-people exchanges, and connectivity between localities has also been actively promoted.

The Vietnamese Government highly values Canada’s official development assistance (ODA) projects implemented in Vietnam in recent years, which, PM Chinh affirmed, have delivered tangible and practical results, making an important contribution to the implementation of Vietnam’s Socio-Economic Development Plan for the 2021–2025 period and its National Development Strategy for 2021–2030, cited VNA.

Stressing Vietnam’s wish to further strengthen and deepen its Comprehensive Partnership with Canada, the PM called on both sides to step up the exchange of delegations at all levels, work toward elevating the bilateral ties to a new level as soon as possible, and continue to promote and expand economic, trade and investment cooperation, with a view to making it the main pillar of the bilateral relations.

In addition, PM Chinh urged Canada to support Vietnam in human resources training by increasing scholarships for Vietnamese students, especially in advanced technology fields where Canada has strengths and Vietnam has demand. He also suggested Canada continue to give due consideration to recognising the Vietnamese community in Canada as a minority group and adopt more open visa policies for Vietnamese citizens.

Calling for continued mutual support and closer coordination at multilateral forums, the Government leader said Vietnam stands ready to serve as a bridge for Canada to strengthen its presence in the region and promote collaboration with ASEAN and ASEAN-led mechanisms.

He also expressed his hope that Canada will act as a bridge to facilitate Vietnam’s participation in cooperation initiatives in which Canada plays an active role; and continue supporting ASEAN’s stance on promoting trade liberalisation and resolving disputes by peaceful means, in accordance with international law, both in the region and the world.

Agreeing with PM Chinh's assessment of bilateral relations, Sarai said that Canada is implementing its Indo-Pacific Strategy for the mutual benefit of the two sides, under which it attaches importance to ASEAN’s central role and multilateral mechanisms in the region in which both sides participate.

Congratulating Vietnam on the 80th anniversary of the first General Election to elect the National Assembly and expressing sympathy over the losses caused by natural disasters in the country, the official affirmed that Canada is willing to support and cooperate with Vietnam in climate change response, infrastructure development, energy transition, the exploration and processing of critical minerals, and investment in products manufactured in Vietnam for export to other markets.

Noting that the Vietnamese community in Canada is large and present across the country, he expressed strong agreement and confidence that the two sides will further promote cooperation in the coming period through concrete programmes and projects, as proposed by the PM.

Lao scholar highlights Laos-Vietnam ties with “strategic cohesion”

Professor and Academician Boviengkham Vongdara, President of the Lao–Vietnam Friendship Association, highlighted the growing importance of deepening the special relationship between Laos and Vietnam in the new context in an interview recently granted to the Vietnam News Agency (VNA)'s resident correspondents in Vientiane.

Boviengkham noted that during Party General Secretary To Lam’s state visit to Laos on the occasion of its 50th National Day, the two sides convened a meeting of their Politburos, where the Vietnamese leader introduced new content to the longstanding Laos-Vietnam relationship, which is “strategic cohesion.”

The bilateral ties have long been defined as “great friendship, special solidarity and comprehensive cooperation”. Introducing “strategic cohesion,” he said, represents a timely and natural evolution, reflecting new requirements placed on the bilateral ties amid rapid, complex and unpredictable changes in the global and regional landscapes.

The great friendship, special solidarity and comprehensive cooperation are a priceless legacy built by generations of both countries’ leaders and people, while the “strategic cohesion” element both inherits and advances that legacy under new historical conditions, Boviengkham stressed.

He explained that the Vietnamese Party chief described “strategic cohesion” as the first and foremost alignment in strategic vision and development goals, followed by enhanced policy and strategy coordination. Of particular importance is connectivity in infrastructure and linkages, including economic infrastructure, logistics, transport, postal and telecom services, and digital transformation. These key sectors hold long-term strategic significance for the sustainable development of each country and the wider region.

Beyond infrastructure, the two countries should also reinforce strategic connectivity in workforce development, especially in Party building and personnel training. Collectively, these elements reflect profound and comprehensive strategic alignment between the two Parties, States and people, standing united and moving forward together toward shared goals of prosperity and sustainable development.

During the enforcement of resolutions of the Lao People’s Revolutionary Party’s 11th National Congress, Boviengkham said close bilateral cooperation has made substantial contributions. In recent years, Laos has grappled with challenges, including economic and financial strains, global economic volatility, rising fuel prices affecting exchange rates, the heavy toll of the COVID-19 pandemic, and devastation from natural disasters and floods. Against such a backdrop, timely and heartfelt assistance from the Vietnamese Party, State and people proved instrumental in enabling Laos to surmount these obstacles, he said.

The scholar pointed out that Laos’s two national-level strategic programmes tackling economic and financial challenges and drug-related issues have benefited from Vietnamese support. Notably, Vietnam has granted Laos sea access through the use of Wharf No. 3 at Vung Ang Port, considerably expanding the landlocked nation’s global connectivity. Vietnam has also aided Laos in the security sector and in establishing a population database tied to digital transformation, marking a key advance toward modern state governance, according to VNA.

Professor and Academician Boviengkham Vongdara, President of the Lao–Vietnam Friendship Association, in an interview with the Vietnam News Agency (VNA)'s resident correspondents in Vientiane. (Photo: VNA)

Vietnam ranks among the top foreign investors in Laos, with over 260 projects valued at more than 6 billion USD. Two-way trade has continued to grow, reaching about 3 billion USD in 2025 and projected to reach 5 billion USD annually in the coming years. These efforts have delivered concrete backing to Laos in navigating hardships and advancing socio-economic progress, Boviengkham said.

People-to-people diplomacy has further intensified, with twinning ties and cooperation between localities growing stronger and more impactful. In workforce development, Vietnam granted over 1,600 scholarships to Lao students in 2025 alone.

On the diplomatic front, Laos and Vietnam have maintained tight coordination under bilateral treaties and within the ASEAN framework. Boviengkham underscored Vietnam’s strong support for Laos during its successful 2024 ASEAN chairmanship, including the hosting of the 44th and 45th ASEAN Summits and Related Summits, which elevated Laos’s standing and reputation in both global and regional arenas.

Vietnam and ASEAN emerge as major export markets for RoK

Over the past five years (2021-2025), exports to the US rose 28.2%, while shipments to the Association of Southeast Asian Nations (ASEAN) and Vietnam increased by 12.5% and 10.8%, respectively, indicating a clear trend of export diversification by the RoK.

Due to the impact of US policies toward China, the Republic of Korea’s (RoK) exports to China have fallen sharply by nearly 20% over the same period.

An analysis of import–export trends for the 2021-2025 period released by the Ministry of Trade, Industry and Energy indicates that the RoK’s exports to China dropped by 19.7% over the five-year period.

Specifically, exports to China stood at US$162.9 billion in 2021, before dropping to US$155.8 billion in 2022 and falling further to US$124.8 billion in 2023. Although shipments recovered modestly to US$133 billion in 2024 and US$130.8 billion in 2025, they have yet to return to earlier levels.

According to Moon Jong Cheol, a research fellow at the Korea Institute for Industrial Economics and Trade (KIET), the decline in exports to China appears to reflect a shift by companies relocating production facilities from China to the US or Southeast Asia. When examined by product category, changes in the export structure become even more pronounced.

In 2025, the RoK’s exports to China declined year on year across traditional core products, including petrochemicals, which fell 6.6% to US$16.27 billion; wireless equipment, down 6.5% to US$7.33 billion; and machinery, which dropped sharply to US$6.28 billion, a decrease of 62.8%.

This trend reflects China’s rapid expansion of domestic production capacity, intensifying competition for the RoK’s key industries, VOV reported.

Machinery and equipment among Vietnam’s key exports to the Republic of Korea (Photo : VGP)

Despite the marked fall in exports to China, the downturn did not immediately translate into an overall contraction in the RoK’s exports. In 2025, total exports reached a record high of US$709.7 billion, as the semiconductor industry entered a super-cycle linked to advances in artificial intelligence (AI) technologies and the expansion of data centers.

Exports to the US, ASEAN and Vietnam offset a substantial portion of the decline from the Chinese market. ASEAN markets, particularly Vietnam and Thailand, were notable. The RoK’s exports to ASEAN rose 12.5% over the five-year period, reaching US$122.4 billion in 2025, up from US$108.8 billion in 2021. Over the same period, exports to Vietnam increased 10.8%, climbing from US$56.7 billion to US$62.8 billion.

According to Professor Heo Yoon of Sogang University, regulatory constraints have made it more difficult for Chinese companies to export directly to the US, prompting them to set up factories in Vietnam or other ASEAN member states as alternative routes to access the US and European Union markets.

Rising exports to Vietnam are also linked to manufacturing facilities operated by major RoK corporations, including Samsung Electronics and LG, which have boosted shipments of intermediate goods and key components.

Global economic growth is expected to slow in 2026 due to US tariff policies and excess supply from China. Even so, some analysts believe the RoK’s exports to Southeast Asia will remain competitive.

Moon Jong Cheol noted that despite multiple uncertainties, Southeast Asia’s relatively low labor and production costs continue to make it a promising market, with the region’s share of the RoK’s exports expected to rise further in 2026.

Vietnam’s foreign trade soars to all-time high in 2025

Vietnam’s foreign trade volume reached a record high of US$930.05 billion in 2025, representing a strong increase of 18.2 percent compared to the previous year.

In December alone, trade with the rest of the world soared by 25.7 percent year on year to US$88.72, reported the National Statistics Office under the Ministry of Finance.

The above figure includes US$44.03 billion in export value, up 12.6 percent compared with the previous month.

In the fourth quarter of 2025, export turnover reached US$126.3 billion, up 20 percent year on year but down 1.7 percent compared with the third quarter of 2025.

For the whole year, the Southeast Asian nation earned US$475.04 billion from exporting, up 17 percent. Of the figure, the domestic economic sector recorded US$107.95 billion, down 6.1 percent and accounting for 22.7 percent of total export turnover, while the foreign-invested sector (including crude oil) contributed US$367.09 billion, up 26.1 percent and accounting for 77.3 percent.

There were 36 export items with a turnover of over US$1 billion each, accounting for 94.0 percent of the total export value, cited VGP.

Meanwhile, the country spent US$455.01 billion on imports, up 19.4 percent. Of the figure, the domestic economic sector accounted for US$137.38 billion, down 2 percent, while the foreign-invested sector contributed US$317.63 billion, up 31.9 percent.

The U.S. was Vietnam's largest export market, with US$153.2 billion while China remained the biggest goods supplier, with US$186 billion.

Vietnam enjoyed trade surpluses of US$133.9 billion with the U.S., up 28.2 percent; US$38.6 billion with the EU, up 10.1 percent; and US$2.1 billion with Japan, down 30.1 percent.

Meanwhile, the nation recorded trade deficits of US$115.6 billion with China, up 39.6 percent; US$31.6 billion with South Korea, up 4.3 percent; and US$14.2 billion with ASEAN, up 42.4 percent.

The country posted a trade surplus of US$20.03 billion during the last year.

Severe cold grips northern Vietnam, with temperatures below 3°C in high mountains

A fresh spell of cold air is affecting northern Vietnam and the North Central region, pushing temperatures sharply lower. Much of the North is experiencing severe cold, with hazardous conditions in mountainous areas, while the North Central region remains cold, with severe cold in some areas.

According to the National Center for Hydro-Meteorological Forecasting, minimum temperatures across northern Vietnam range from 9 to 12 degrees Celsius, dropping to 6 to 9 degrees in midland and mountainous areas, with some high mountain locations falling below 3 degrees Celsius. In the North Central region, lows generally range between 11 and 14 degrees Celsius. Hanoi is dry, with severe cold and minimum temperatures of around 10 to 12 degrees Celsius.

The cold air mass has covered most of northern Vietnam and the North Central region and is forecast to extend further into the central region over the next 24 to 48 hours. Over land, northeasterly winds remain moderate, strengthening along coastal areas, cited VOV.

Hanoi experiences severe cold.

At sea, the Gulf of Tonkin is experiencing strong northeasterly winds of force 6 (39-49 km/h), occasionally force 7 (50-61 km/h), with gusts reaching force 8-9 (62-88 km/h), leading to rough seas.

Similar conditions are affecting the northern East Sea, including the Hoang Sa (Paracel) archipelago, as well as several offshore areas along central and southern Vietnam, posing risks to maritime activities.

Under the influence of the cold air, areas from Quang Tri to Da Nang and parts of the central region are expected to see rain and showers, with localized moderate to heavy rainfall and thunderstorms. Thunderstorms may bring lightning, hail and strong gusts. Mountainous areas in the North should watch for frost and rime ice.

The spell of severe and hazardous cold may affect public health and increase disease risks, while also causing damage to agriculture, particularly livestock and crops. Localized heavy rain could trigger flooding in low-lying areas, flash floods in small rivers and streams, and landslides on steep slopes. Strong winds and high waves are likely to disrupt fishing vessels and other marine activities.

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