Vietnam News Today (July 16): Vietnam and Chile Mark 55 Years of Diplomatic Relations

	Vietnam News Today (July 13): Vietnam, France Seek to Deepen Comprehensive Strategic Partnership
	Vietnam News Today (July 14): Vietnam, Indonesia Chart New Strategic Cooperation Agenda

Vietnamese Ambassador to the RoK Vu Ho (first, left) and other participants in the conference in Seoul on July 14 (Photo: VNA)

Vietnam, RoK strengthen investment links at Seoul conference

A conference was held in Seoul to foster investment and trade cooperation and strengthen business connectivity between Vietnam and the Republic of Korea (RoK).

The event, taking place at the headquarters of the Korea Trade-Investment Promotion Agency (KOTRA), was part of a Vietnamese trade delegation’s working trip to the Northeast Asian nation.

Addressing the conference, Vietnamese Ambassador to the RoK Vu Ho said bilateral relations are currently enjoying the best conditions, underpinned by what he described as the three key factors of “favourable timing, geographical advantages, and strong public support”.

He noted that during recent exchanges, Party General Secretary and State President To Lam and President Lee Jae Myung reaffirmed the determination to elevate their countries' Comprehensive Strategic Partnership in a deeper, more substantive, and more effective manner, with economic cooperation, investment, science – technology, and innovation serving as new growth drivers.

According to the ambassador, Vietnamese ministries and sectors are working to remove institutional bottlenecks, improving the investment environment and supporting businesses. Meanwhile, local authorities are shifting from an administrative mindset to a service-oriented approach, competing by governance quality, infrastructure, and human resources.

He highlighted Hung Yen as a typical example of this transformation. Traditionally known as a land rich in history and culture, the northern province is now emerging as a dynamic industrial and service hub in the Hanoi Capital Region, with increasingly modern infrastructure, convenient transport connectivity, and a business-friendly administration that regards corporate success as a yardstick of its governance effectiveness.

The Vietnamese Embassy in the RoK, he said, will continue working closely with KOTRA, ministries, agencies and localities, including Hung Yen, to strengthen links with Korean corporations, business associations, and investment funds, helping translate today's opportunities into concrete investment projects.

Introducing Hung Yen's potential, Vice Chairman of the provincial People's Committee Le Quang Hoa said that following the recent administrative merger, Hung Yen remains among Vietnam's leading localities in terms of economic scale, growth, industrial output, budget revenue, investment attraction, and other socio-economic indicators.

The province's economy exceeded 12 billion USD in 2025 and is targeting growth of at least 10% this year, with economic output expected to surpass 14 billion USD. During the first six months of 2026, it posted growth of over 10%, ranking fifth among Vietnam's 34 provinces and cities, cited VNA.

Hoa said the RoK is the third-largest foreign investor in Hung Yen, with 210 projects worth 2.9 billion USD in registered capital. However, Korean investment has yet to fully reflect the strengths of Korean corporations or the province's strategic location, industrial infrastructure, and development potential.

He expressed his hope that the visit to the RoK will help expand cooperation in investment, trade and economic development while creating direct connections with Korean investors and multinationals.

Hung Yen is seeking suitable partners in a wide range of sectors, including manufacturing and processing, digital infrastructure, semiconductors, electronics, green energy, logistics centres, urban development, industrial infrastructure, seaport and tourism, the official added.

At the conference, participants also received updates on the Korean Government's outbound investment support programme, prospects for investment collaboration with Vietnam, and investment opportunities in Vietnamese industrial parks.

Following the discussion session, Vietnamese enterprises and industrial park developers held business-to-business (B2B) meetings with Korean companies to explore partnership and investment opportunities.

Vietnam, Cambodia strengthen cooperation to build friendly border

Vietnam's central Dak Lak province and Cambodia's Mondulkiri province have reaffirmed their commitment to building a border line of peace, friendship, cooperation and development, as they reviewed the implementation of their 2024–2026 cooperation memorandum and signed a new one for 2026–2028.

Addressing the conference held in Dak Lak on July 15, Secretary of the Dak Lak Party Committee Luong Nguyen Minh Triet stressed that fostering friendship and cooperation between the two localities was both a political responsibility and a practical requirement for development.

The signing ceremony of a memorandum of understanding between the Vietnam Fatherland Front Committee of Dak Lak and the Cambodian Front for National Development of Mondulkiri (Photo: VNA)

He said a border line of peace, stability, friendship and cooperation will facilitate people-to-people exchanges, economic development, cultural preservation, and contribute to ensuring national defence and security of each side, while expanding cooperation in social welfare, border development, cultural exchanges and youth connectivity.

Mondulkiri Governor Kong Kimny, who is also a member of the Central Committee of the Cambodian People's Party and President of the Cambodian Front for National Development in Mondulkiri, said the 2024–2026 memorandum has strengthened bilateral ties through information exchange and diplomatic activities while raising public awareness, thus thwarting the schemes of hostile forces to undermine the traditional friendship between the two countries.

Under the new memorandum, the two sides will step up public awareness campaigns, particularly among young people and border residents, on the strategic significance of Vietnam-Cambodia relations, while countering divisive narratives.

They also pledged closer coordination in border management, support for the search and repatriation of remains of Vietnamese volunteer soldiers and experts, humanitarian activities, health care, scholarships, workforce training, border trade, agricultural exchange and tourism connectivity, according to VNA.

Dak Lak shares nearly 72km of border with Mondulkiri. Since implementing the previous cooperation memorandum signed in December 2023, the two sides have strengthened border security cooperation and public awareness.

Authorities in Dak Lak have published more than 375 news reports and organised 125 communication sessions reaching over 7,530 officials and residents, while Mondulkiri has worked to prevent illegal border encroachment and forestry violations and maintained close coordination on border security issues. Border communities have also expanded mutual support in agricultural production and cultural exchanges.

Vietnam and Chile mark 55 years of diplomatic relations

Vietnam and Chile have reaffirmed their commitment to strengthening bilateral relations as the two countries marked 55 years of diplomatic ties, highlighting expanding cooperation and growing opportunities for trade and investment.

On the evening of July 14, the Da Nang Union of Friendship Organizations, in coordination with the Embassy of Chile in Vietnam, held a ceremony commemorating the 55th anniversary of diplomatic relations between Vietnam and Chile (1971–2026), underscoring the enduring friendship and expanding cooperation between the two nations.

As part of the event, delegates toured a photo exhibition showcasing milestones in the 55-year relationship. Through archival photographs and historical materials, the exhibition traced the evolution of bilateral ties, from high-level visits and economic cooperation projects to cultural, artistic and people-to-people exchanges.

Addressing the ceremony, Nasly Isabel Bernal Prado, Ambassador of Chile to Vietnam, noted that Chile was the first South American country to establish diplomatic relations with Vietnam.

According to the ambassador, the two countries have built a mature, trusted and increasingly strategic relationship over more than half a century, continually adapting to the challenges and opportunities of each stage of development.

In the economic sphere, Vietnam is now one of Chile's leading trading partners in Southeast Asia, while Chile serves as one of Vietnam's key partners in Latin America. Bilateral trade has maintained steady growth, supported by complementary trade structures and diversified product portfolios.

The ambassador said this momentum has been reinforced by key economic integration frameworks, including the Vietnam–Chile Free Trade Agreement, which entered into force in 2014, and both countries' participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), according to VNN.

Delegates visit a photo exhibition highlighting 55 years of diplomatic relations between Vietnam and Chile.

Bilateral relations have also continued to strengthen since Vietnam and Chile elevated their ties to a Comprehensive Partnership in 2007. High-level exchanges in recent years have helped advance political dialogue, open new areas of cooperation and reaffirm both countries' commitment to building a relationship based on trust, mutual respect and shared development.

The ambassador also highlighted significant opportunities for the two economies to further diversify bilateral trade and encourage new investment flows that would benefit both countries.

"Looking back on 55 years of our shared history, we can proudly say that the relationship between Chile and Vietnam has been built on a solid foundation of friendship, mutual understanding and cooperation," she said.

Nasly Isabel Bernal Prado also expressed hope that the friendship between the people of Vietnam and Chile would continue to deepen, providing a strong foundation for future generations to build an even closer, more dynamic and more effective bilateral partnership.

Ho Chi Minh City promotes people-to-people ties with US

The Ho Chi Minh City Union of Friendship Organizations (HUFO) on July 15 held a gathering to mark the 250th anniversary of the Independence of the US, demonstrating the friendship and solidarity between the people of Ho Chi Minh City and the US.

In his speech at the event, Nguyen Van Tho, Vice Chairman of the Ho Chi Minh City People's Council and Chairman of the city's Vietnam-US Friendship Association, said Vietnam and the US have shared a remarkable journey from a history of war to one of peace.

Nguyen Van Tho (R), Permanent Vice Chairman of the Ho Chi Minh City People's Council and Chairman of the municipal Vietnam-US Friendship Association (Photo: VNA)

The two countries have established a Comprehensive Strategic Partnership based on respect for each other's independence, sovereignty, territorial integrity and political systems, while looking to the future, leaving the past behind, building on common interests and properly managing differences for the benefit of the two nations.

Within that broader relationship, Ho Chi Minh City is always one of Vietnam's leading localities in promoting ties with the United States.

In April 1995, the southern city and San Francisco established a friendship and cooperation relationship, marking an important milestone in people-to-people diplomacy. Since then, cooperation has continued to expand, and following the city's recent administrative restructuring, Ho Chi Minh City is expected to create broader opportunities for more substantive and sustainable cooperation with US partners, according to VOV.

The Vietnam-US Friendship Association in Ho Chi Minh City has also contributed to that effort by intensifying people-to-people and cultural exchanges through a wide range of activities.

Together with the city's diverse external relations activities, these initiatives have helped people in both countries gain a better understanding of each other's cultures, traditions and daily lives, contributing to greater mutual understanding and stronger friendship between the two countries.

European firms remain upbeat about Vietnam’s market prospects

European business confidence in Vietnam climbed to 79.7 points in the second quarter of 2026, approaching a seven-year high as the country continued to demonstrate resilience and attract investors despite global supply chain disruptions and shifting trade dynamics, the European Chamber of Commerce in Vietnam says.

EuroCham Business Confidence Index Q2/2026 conducted by DXL Research & Consulting. (Source: EuroCham)

EuroCham's flagship Business Confidence Index (BCI), the Q2 2026 report released on July 15, reveals a renewed surge in European business confidence, underscoring Vietnam's resilience amid one of the most volatile global operating environments in recent years.

With a sharp 7-point climb from the 72.7 points recorded in Q1, this quarter’s index is just a fraction below the historic seven-year peak of 80.0 reached in late 2025. The momentum signals a renewed appetite among European investors for expansion in one of Southeast Asia's fastest-growing economies, reaffirming the long-term confidence that briefly receded amid heightened global uncertainty.

"This quarter's findings demonstrate the incredible, almost tenacious resilience of both Vietnam's economy and the European businesses operating here," noted EuroCham Chairman Bruno Jaspaert.

“The first half of 2026 has been a rollercoaster. We entered the year with complex geopolitical wild cards, yet, despite a heavy cloud of global uncertainty, our member companies outperformed their own expectations. This index proves that when the weather gets rough, our ecosystem knows how to recalibrate and capture growth", he added.

The survey shows that 63% of European businesses reported positive business conditions during Q2, while optimism continues to strengthen, with 69% expecting favourable conditions in the coming quarter. This wave of optimism represents an 11-percentage-point jump compared to the expectations expressed just three months ago, driven by surging commercial performance, a healthy influx of new orders, and resilient domestic demand, VOV reported.

Xavier Depouilly, general manager of DXL Research and Consulting commented, “Confidence has recovered across all sectors, confirming that the slowdown recorded in Q1 was broad-based but ultimately temporary. While the pace of recovery has varied by industry, the overall direction is consistent. Agrifood recorded a more modest 5.5-point improvement, whereas Tourism & Hospitality surged by 8.7 points to reach 90.4, well above the overall index. Across industries, businesses have outperformed their own expectations, supported by resilient domestic and international demand, expanded public and private investment, and a remarkable ability to adapt to an increasingly complex environment. By introducing sector and company size level analysis, the BCI report and dashboard now provide a more granular understanding of business sentiment, helping both investors and policymakers identify where confidence is strengthening, where challenges remain, and where targeted actions can have the greatest impact.”

"These BCI results mirror the broader macroeconomic landscape as Vietnam solidifies its position as one of Asia's growth champions," Jaspaert explained. "In the first half of 2026 alone, the national GDP expanded by an impressive 8.18%. When you pair that breakneck growth with Vietnam's rise to 27th in the IMD World Competitiveness Ranking and its upcoming FTSE Russell upgrade to a Secondary Emerging Market this September, the narrative is crystal clear. What makes Vietnam truly stand out in a fiercely competitive regional landscape is a government that does not just talk about growth, but formalises it into national resolutions and actively executes structural reforms to pursue it.”

Throughout 2026, the Government has accelerated institutional reforms, administrative restructuring and investment policies aimed at attracting higher-quality foreign direct investment. Chief among these is the recent rollout of Resolution 10, which shifts the country's FDI criteria away from cheap labor and raw volume toward high-tech innovation, technology and sustainable growth.

Overall, the Q2 2026 Business Confidence Index underscores Vietnam's position as one of Asia's most attractive investment destinations, with European businesses continuing to express strong confidence in the market.

More than half of the respondents (54%) now describe Vietnam as a core strategic market and operational base, while a further 18% consider it a major growth location. Together, these findings reflect a notable shift in how European companies position Vietnam within their regional and global business strategies. Rather than serving solely as a manufacturing base, Vietnam is increasingly seen as a platform for production, sourcing, regional services and future expansion across Southeast Asia.

As Vietnam pursues its bold double-digit growth, businesses see a significant opportunity to translate today's strong business sentiment into sustained, high-quality investment by accelerating administrative reform, improving regulatory predictability and ensuring consistent implementation across all levels of government. Continued progress in these areas would enable businesses to devote more resources to innovation, production and workforce development, further enhancing Vietnam's competitiveness as a destination for international investment.

"The confidence radiating from this quarter's index is encouraging, but confidence alone is not the destination," Jaspaert said. “Over the last fifteen years, the BCI has evolved from a simple quarterly sentiment poll into a comprehensive economic indicator, giving our Government partners the evidence needed to optimise the investment climate. By continuing this constructive loop, we accompany Vietnam’s rise to become Asia's premier destination for high-quality, sustainable, and future-proof investment.”

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