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Deputy Prime Minister and Minister of National Defense General Phan Van Giang hosts a reception in Hanoi on June 22 for Acting US Secretary of the Navy Hung Cao. (Photo: qdnd.vn)

Vietnam, US seek stronger defense cooperation

Deputy Prime Minister and Minister of National Defense General Phan Van Giang hosted a reception in Hanoi on June 22 for Acting US Secretary of the Navy Hung Cao, who is on a working visit to Vietnam.

Giang congratulated Cao on his appointment and expressed confidence that he would continue to serve as an important bridge in promoting relations between Vietnam and the US and between the two defense ministries.

He noted that Vietnam-US defense cooperation has been implemented effectively and practically in recent years, in line with the overall relationship between the two nations. Cooperation has focused on delegation exchanges, particularly at the high level, training, United Nations peacekeeping operations, cooperation among military services, cybersecurity, maritime security, military medicine, humanitarian assistance and disaster relief.

Based on signed agreements and cooperation frameworks, Giang proposed both sides continue to effectively implement existing cooperation programs, with priority given to delegation exchanges, training, maritime security, defense industry cooperation and collaboration among military branches and services.

Highlighting the spirit of “putting aside the past and looking towards the future,” attaching importance to cooperation in addressing war consequences and basing on the Memorandum of Understanding on advancing collaboration in war aftermath settlement signed in October 2025, he called on the US side to fulfil its commitments, including an additional 130 million USD for the dioxin remediation project at Bien Hoa Airport. He expressed his hope that the project would be completed before 2030, contributing to a safer living environment for local residents, cited VNA.

The minister reaffirmed that Vietnam’s Ministry of National Defense would continue to coordinate closely and facilitate efforts to search for US personnel missing in action (MIA) during the war. He also called on the US to share more information, documents and belongings related to Vietnamese soldiers and support Vietnam in enhancing DNA analysis capabilities to identify war martyrs’ remains.

Giang welcomed the participation of US officials and defense companies at the third Vietnam International Defense Expo, scheduled to take place in Hanoi in December 2026.

For his part, Hung Cao highly valued the progress in Vietnam-US defense cooperation, particularly in maritime affairs. He expressed his hope that both sides would continue strengthening cooperation in this field, contributing to deeper defense ties and broader relations between the two countries.

Vietnam promotes overseas workers as ambassadors of skills and national image

Vietnam’s overseas employment programs are increasingly being viewed not only as a solution for job creation and income generation, but also as a strategic channel for developing high-quality human resources and promoting the image of Vietnamese workers worldwide.

The message was highlighted at a training conference on overseas employment programs implemented under international agreements, held in Hanoi on June 22 by the Center for Overseas Labor (COLAB) under the Ministry of Home Affairs.

The event brought together representatives from Departments of Home Affairs and Employment Service Centers from 20 northern and north-central provinces and cities.

Overseas employment contributes to workforce development

Speaking at the conference, Dang Huy Hong, director of the Center for Overseas Labor, noted overseas employment programs have played an important role in job creation, income improvement, vocational skills development and sustainable poverty reduction over the years.

According to him, as Vietnam deepens its international integration, overseas employment has evolved beyond a labor market solution to become an important tool for implementing major national policies on human resource development, international integration, economic diplomacy and social security.

“Each Vietnamese worker who goes abroad through low-cost, non-profit programs and receives proper recruitment and training not only gains income, skills and professional experience but also becomes a ‘human resource ambassador’, helping promote the image of Vietnam and its people as hardworking, disciplined, responsible and ambitious,” he said.

Building a competitive workforce for global labor markets

To develop a skilled and internationally competitive workforce, the Center for Overseas Labor is working to strengthen support mechanisms throughout the entire process, from information dissemination, career counseling and recruitment to language training, vocational preparation, deployment, rights protection during overseas employment and reintegration support upon return.

Hong emphasized that local authorities, employment service centers and specialised agencies play a crucial role in this process as they are often the first point of contact for workers seeking information about official, safe and affordable overseas employment opportunities, according to VOV.

Vietnam is enhancing overseas employment programs under international agreements, viewing workers abroad as “human resource ambassadors” who contribute to workforce development, economic diplomacy and the country's global image.

Currently, the Center for Overseas Labor manages eight overseas employment programs covering five major destinations, namely the Republic of Korea, Japan, Germany, Australia and Taiwan (China).

All programs operate on a non-profit basis and follow principles of transparency and equal access. Several programs provide full support for training expenses and international airfare.

Workers participating in these programs receive wages, working conditions, insurance coverage and welfare benefits comparable to those enjoyed by local workers in host countries, making them among the most attractive overseas employment opportunities available to Vietnamese citizens.

Digital transformation and policy support remain priorities

Delegates at the conference stressed the need to further improve communication efforts so workers can easily identify and access legitimate overseas employment programs while avoiding fraudulent recruitment schemes.

They also highlighted the importance of expanding access to credit and financial support to ensure workers can benefit from government-backed labor mobility programs.

Digital transformation was identified as a key priority in the coming years. The development of integrated databases and online platforms for recruitment and labor management is expected to improve information accessibility for workers while enhancing the efficiency of program implementation and oversight.

Experts at the conference agreed that when implemented in a coordinated and professional manner, non-profit overseas employment programs can deliver benefits far beyond job creation. They can help cultivate a generation of highly skilled Vietnamese workers with international experience, supporting the country's long-term economic development and global competitiveness.

Vietnam is key priority for US investment fund: DFC Chief Policy Officer

Vietnam is a key priority market for the US International Development Finance Corporation (DFC) as it looks to expand its investment footprint in the Southeast Asian country. Caroline Vik, Chief Policy Officer at the DFC told the Vietnam News Agency (VNA) during her visit to Vietnam from June 19 to 21.

“We see strong potential for growth and view Vietnam as a great market,” Vik said, adding that DFC sees significant opportunities in strategic sectors such as energy, AI, data centers and financial technology.

She noted that the corporation is also interested in subsea fibre connectivity and data centers, and hopes to identify investment opportunities in these areas.

According to Vik, one of DFC’s key priorities is to help build more diversified and resilient supply chains for critical materials and technologies. Areas of focus include critical minerals, pharmaceuticals and key industrial supply chains such as telecommunications equipment, semiconductors, batteries and magnets, sectors in which Vietnam has considerable strengths.

The corporation is also looking to support the development of critical infrastructure. Vik said DFC is closely following a number of major infrastructure projects being advanced by the Vietnamese Government and is particularly interested in opportunities related to ports, airports, strategic transport corridors, including rail projects, as well as digital infrastructure.

Describing Vietnam as an important part of the broader Vietnam-US Comprehensive Strategic Partnership, Vik said DFC is keen to deepen its engagement in the Southeast Asian country and enhance the amount of investment in Vietnam.

Regarding DFC’s approach to selecting partners in Vietnam, Vik said the corporation focuses on areas where Vietnam’s development priorities align with its own investment objectives.

At the same time, DFC is seeking strong local partners with commercially viable projects capable of delivering sustainable returns while supporting Vietnam’s economic development goals, reported VNA.

Caroline Vik, Chief Policy Officer at the DFC (Photo: VNA)

“The goal is to create investments that generate value for both the American taxpayers we serve and the Vietnamese people and government,” she said.

Vik also spoke positively about Vietnam’s recent reforms, saying the government’s commitment to growth has further strengthened the country’s attractiveness to foreign investors.

“All of those reforms really help Vietnam be a great place for foreign investment,” she said, adding that DFC looks forward to working closely with both the Vietnamese government and the private sector to support the country’s development goals and unlock new investment opportunities.

Established in 2019, DFC serves as the international investment arm of the US government. It promotes private-sector investment in developing countries, focusing on projects that generate positive development impacts, uphold environmental and social standards, and support human and labor rights.

Vietnam business confidence rebounds amid global uncertainty: UOB

Business confidence in Vietnam has rebounded sharply despite a challenging operating environment marked by rising costs, geopolitical tensions and trade-related uncertainties.

According to the United Overseas Bank (UOB) Business Outlook Study 2026, 85% of Vietnamese businesses reported positive sentiment, a significant increase from 48% in 2025, when confidence was dampened by disruptions linked to US tariff developments.

The outlook remains upbeat. More than nine in 10 businesses expect improved performance in 2026, with stronger revenue growth anticipated over the following two years.

However, companies continue to face macroeconomic headwinds. Nearly half of respondents reported higher operating costs driven by tariffs and geopolitical risks, underscoring the need for greater efficiency, cost management and long-term business transformation.

Energy management emerges as a strategic priority

Beyond concerns over trade and geopolitics, energy management has emerged as a strategic priority for Vietnamese businesses.

The survey found that 96% of businesses in Vietnam consider energy management and efficiency important, compared with a regional average of 87%.

Against a backdrop of global energy market volatility and supply risks, companies are taking a more proactive approach to energy use. More than half of respondents (55%) prioritise securing a stable and resilient energy supply, while 53% focus on optimising energy consumption and 47% aim to reduce overall energy use and improve efficiency.

To support these goals, businesses are increasingly investing in energy-efficient machinery (43%) and solar power solutions (42%), seeking to balance cost control with operational resilience.

At the same time, companies are accelerating their digital transformation efforts, with artificial intelligence (AI) emerging as a key growth driver. While AI adoption is in its infancy, eight in 10 businesses have begun implementing AI solutions, although only 25% have deployed advanced AI capabilities.

Businesses already using AI reported benefits including improved productivity (49%), cost savings (47%) and revenue growth (46%). Reflecting growing confidence in the technology, around two-thirds plan to increase AI investment budgets by more than 25% in 2026, cited VOV.

Business confidence in Vietnam is recovering amid global economic uncertainty.

Despite the momentum, adoption challenges remain. Key barriers to adoption include cost and financial constraints (49%), limitations in AI solutions and partner ecosystems (48%), and gaps in data and system readiness (47%).

Supply chain diversification and ASEAN expansion take center stage

Supply chain management continues to be a top priority, with 97% of Vietnamese businesses identifying it as critical to their operations. Although supply chain disruptions have eased compared with previous years, businesses continue to face challenges stemming from geopolitical risks (40%), procurement complexity (34%) and regulatory ambiguity (88%).

To strengthen resilience, four in five businesses plan to expand their supplier networks in 2026. More than half intend to add suppliers within ASEAN, while 23% are looking to increase domestic sourcing.

Nearshoring strategies are also gaining traction. Around one-third of businesses plan to establish or expand manufacturing operations in Vietnam, while 43% are considering broader expansion across ASEAN, reinforcing the region’s role as a key manufacturing and supply chain hub.

The trend is also driving overseas investment. Seven in 10 Vietnamese businesses expanded internationally in 2025, and nine in 10 expect to pursue further expansion over the next three years. Meanwhile, 80% plan to invest abroad within the next two years, with average planned investments exceeding US$28 million.

ASEAN is the preferred destination, chosen by 65% of respondents, with Thailand, Singapore and Indonesia emerging as the most attractive markets.

However, businesses continue to face obstacles when expanding overseas, particularly in navigating legal, regulatory, compliance and tax requirements, identifying suitable local partners and accessing collaboration opportunities in foreign markets.

Indian warships begin three-day friendship visit to Vietnam

Indian warships INS Udaygiri and INS Taragiri arrived at Nha Rong-Khanh Hoi International Port, starting a three-day friendship visit to Ho Chi Minh City.

During their stay in Vietnam, 610 sailors and crew members, led by Rear Admiral Alok Ananda, Flag Officer Commanding Eastern Fleet of the Indian Navy will pay a courtesy call on leaders of Ho Chi Minh City and Naval Region 2, lay flowers at the Ho Chi Minh Statute on Nguyen Hue pedestrian street, and visit a number of cultural and historical sites in the Southern city.

INS Udaygiri, a Nilgiri-class stealth guided-missile frigate, is the second ship of the Project 17A stealth frigates built by Mazagon Dock Shipbuilders Limited (MDL) in Mumbai, according to the Indian Express, VGP reported.

The welcome ceremony for Indian Navy flotilla at the Nha Rong -Khanh Hoi International Port in Ho Chi Minh City, June 22, 2026. Photo: Vietnam Navy

Meanwhile, INS Taragiri, with a displacement of approximately 6,670 tons, has been designed by the Warship Design Bureau and built by Mazagon Dock Shipbuilders Limited, with the support of MSMEs, for multi-role operations.

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