Vietnam News Today (Oct. 1): ADB Raises Vietnam’s Economic Growth Forecast to 6.7% in 2025

Vietnam News Today (Oct. 1): Vietnam, Japan parliaments strengthen cooperation; ADB raises Vietnam’s economic growth forecast to 6.7% in 2025; Tay Ninh, Mekong Delta emerging as Vietnam’s strategic Halal hub; Opportunities and challenges for Vietnamese industry amid surging foreign investment.
October 01, 2025 | 07:00
Vietnam News Today (Sep. 29): Vietnam, Russia Agree to Boost Parliamentary and Economic Cooperation
Vietnam News Today (Sep. 30): Engineering Unit Rotation 3 Accomplishes Task in UN Peacekeeping Mission in Abyei

Vietnam News Today (Oct. 1) notable headlines

Vietnam, Japan parliaments strengthen cooperation

ADB raises Vietnam’s economic growth forecast to 6.7% in 2025

Tay Ninh, Mekong Delta emerging as Vietnam’s strategic Halal hub

Opportunities and challenges for Vietnamese industry amid surging foreign investment

Wartime film Red Rain selected as Vietnamese entry for 2025 Oscars

Vietnam-Cambodia Business Association convenes first congress

Bualoi impact: Torrential rain hits Vietnam, expert warns of severe flooding

Marvell Technology expands R&D footprint in Vietnam with three new offices

First Vietnam-Russia People’s Forum launched in Hanoi

At the meeting between Vietnamese NA Vice Chairman Tran Quang Phuong and President of the House of Councillors of Japan Sekiguchi Masakazu. (Photo: VnA)
At the meeting between Vietnamese NA Vice Chairman Tran Quang Phuong and President of the House of Councillors of Japan Sekiguchi Masakazu. (Photo: VnA)

Vietnam, Japan parliaments strengthen cooperation

Vice Chairman of the National Assembly (NA) Tran Quang Phuong met with Japan’s parliamentary leaders in Tokyo and visited several localities as part of his working trip to the country from September 25-30.

Phuong had meetings with President of the House of Councillors Sekiguchi Masakazu and Speaker of the House of Representatives Nukaga Fukushiro, and held talks with Vice President of the House of Councillors Fukuyama Tetsuro, and Vice Speaker of the House of Representatives Genba Koichiro. He also engaged with leaders of the Japan–Vietnam Parliamentary Friendship Alliance, including its Chairman Obuchi Yuko, Vice Chairman Yoichiro Aoyagi, and Honourary Adviser Nikai Toshihiro. At the events, Phuong expressed his delight at the strong development of the Vietnam – Japan Comprehensive Strategic Partnership as well as progress in cooperation between the two parliaments, built upon the cooperation agreement signed during NA Chairman Man's official visit to Japan in December 2024.

He commended and thanked Japan for its contributions to Vietnam's socio-economic development through official development assistance (ODA) projects and foreign direct investment over the past three decades. He called on Japan to facilitate and simplify procedures as well as work toward visa exemptions for Vietnamese citizens to boost people-to-people exchanges. He also urged enhanced substantive and effective cooperation between localities of both countries through investment, labor, tourism, trade, and cultural exchanges.

He congratulated Japan on its successful host of the EXPO 2025 Osaka, Kansai and thanked the Japanese Government for facilitating Vietnam’s participation in the event.

Sekiguchi extended his condolences over the losses Vietnam suffered during Typhoon Bualoi and affirmed his efforts to bolster the Vietnam – Japan collaboration cross all areas, cited VNA.

Nukaga lauded Phuong’s visit to Hiroshima to lay a wreath at the Hiroshima Peace Memorial on September 27.

On the occasion, Phuong conveyed National Assembly Chairman Tran Thanh Man's invitation to both Sekiguchi and Nukaga to visit Vietnam.

Talks with Fukuyama and Genba focused on concrete steps to implement agreements and commitments reached between high-level leaders of both sides. They agreed that local cooperation remains a key driver of bilateral relations.

Meeting with the Japan–Vietnam Parliamentary Friendship Alliance, Phuong and the alliance’s leaders expressed their belief that bilateral ties boast huge potential for further development in the future.

During visits to Fukuoka and Oita prefectures, Phuong urged stronger links in workforce development, tourism, digital governance, and environmental management. Japanese governors praised contributions of the Vietnamese communities, 3,700 in Oita and over 23,000 in Fukuoka, to the local socio-economic development and pledged continued support for the Vietnamese people in the prefectures.

He also met Vietnamese diplomatic staff and community representatives, who expected for more favorable policies and expansion of Vietnamese language teaching in Japan.

ADB raises Vietnam’s economic growth forecast to 6.7% in 2025

The Asian Development Bank (ADB) has revised Vietnam’s GDP growth forecast for 2025 upward to 6.7%, an increase of 0.4 percentage points compared to the July projection.

The bank has also maintained its 6% growth outlook for 2026 in its Asian Development Outlook - September 2025 released on September 30.

At the press briefing on Vietnam’s economic prospects for 2025 held in Hanoi the same day, ADB representatives said that the Government of Vietnam is rolling out fiscal and monetary stimulus packages, aiming for an ambitious growth target of 8.3–8.5% in 2025. However, the economy still faces risks from reciprocal tariffs, rising trade protectionism, and global as well as regional geopolitical tensions.

According to ADB, the surge in exports during the first half of 2025, prior to the US tariffs taking effect, together with government support measures, has been key to sustaining growth momentum. Yet, growth is expected to slow in the second half of the year once the new tariffs come into force. This could directly affect exports, investment inflows, and service industries such as logistics, finance, and business services.

Shantanu Chakraborty, ADB Country Director for Vietnam, stressed that better coordination between fiscal and monetary policy is critical to avoid excessive pressure on lending rates and credit while ensuring macroeconomic stability. In the longer term, Vietnam should pursue comprehensive institutional and legal reforms focusing on structural issues, including enhancing private sector competitiveness; improving the efficiency of state-owned enterprises; modernising the tax system; and accelerating digital transformation and strengthening climate resilience.

ADB warned that US tariffs, about 20% on imports and 40% on transshipped goods, pose a significant short-term challenge to Vietnam’s trade and investment. Should these tariffs persist, they could dampen growth in 2026, particularly in higher-value service sectors, according to VOV.

The Asian Development Bank has raised Vietnam’s economic growth forecast to 6.7% in 2025. (Illustrative image)
The Asian Development Bank has raised Vietnam’s economic growth forecast to 6.7% in 2025. (Illustrative image)

Nguyen Ba Hung, ADB’s Chief Economist in Vietnam, noted that effective public investment is “key” to both stimulating growth and addressing infrastructure bottlenecks. With public debt currently at under 34% of GDP, far below the statutory ceiling of 60%, Vietnam still has ample fiscal space for additional growth-support measures.

He suggested that the Government could consider policies such as targeted tax cuts; lowering compliance costs for businesses; and expanding social spending for low-income households.

According to ADB, inflation is projected at 3.9% in 2025, easing slightly to 3.8% in 2026. The decline in global energy prices has helped lower transportation costs - a component that accounts for a significant share in the consumer price basket.

However, continuous upward adjustments in healthcare, education, and electricity prices by the Government are expected to keep inflationary pressures in place. Accelerated public investment disbursement and strong credit growth could also drive up the prices of materials and services.

ADB said that while Vietnam’s economic outlook for 2025–2026 remains broadly positive thanks to expansionary fiscal and monetary policies, deeper structural reforms are needed to build a more balanced growth model, reduce reliance on exports, and strengthen domestic demand to better withstand external shocks.

Tay Ninh, Mekong Delta emerging as Vietnam’s strategic Halal hub

Amid rising global demand for Halal products, Tay Ninh province, a gateway in Vietnam’s southwestern border, together with the Mekong Delta, is being shaped into a strategic centre for the development of the nation’s Halal industry.

Developing raw material areas, improving processing quality, and perfecting the Halal certification system are seen as crucial steps to boost international integration and establish the delta as a key national production and supply hub for Halal goods.

Agricultural potential and strategic location

In Tay Ninh, several enterprises have invested in closed-loop agricultural production, ensuring traceability and food safety – essential criteria for Halal certification.

Hung Nhon Group, in partnership with Dutch firm De Heus, has launched a high-tech livestock farming project in the province to serve the Halal market for 2025–2030.

Vu Manh Hung, Vice Chairman of the Vietnam Digital Agriculture Association (VIDA) and Chairman of Hung Nhon Group, said the entire production process, from breeding and feed to farming, complies strictly with Halal requirements. The group has also worked with international certification bodies to complete Halal-compliant dossiers and management systems, aiming not only to access the Halal market but also to enhance the global reputation of Vietnamese agricultural products, reported VNA.

Advanced technology is widely applied at concentrated livestock farms in Tay Ninh. (Photo: VNA)
Advanced technology is widely applied at concentrated livestock farms in Tay Ninh. (Photo: VNA)

In addition to pursuing exports, businesses are helping local farmers access modern technology, increase production capacity, and build sustainable linkages, creating a model for integration into the regional Halal economy.

Tan Nhien Co. Ltd, a Tay Ninh-based enterprise, has upgraded its traditional rice paper into a national brand with strong international reach. Its products are now exported steadily to markets such as the Republic of Korea, the US, Australia, Japan, Taiwan (China), and Thailand. With plant-based ingredients, a clean production process, and no preservatives, the rice paper has received the JAKIM Halal certificate and initial orders from Malaysia, one of the world’s largest Halal markets.

Halal market: a gateway for global integration

Tran Van Tan Cuong, Director of the National Halal Vietnam Company, noted that while the Halal market represents a global trend, each Islamic country has different national standards that require enterprises to adapt flexibly. Despite Vietnam’s limited pool of Halal experts, he stressed that with adequate investment and effective trade negotiations, the country’s agriculture and other sectors could strengthen their presence in this lucrative market.

Associate Professor Dr. Dinh Cong Hoang from the Institute for South Asian, West Asian and African Studies recommended that Tay Ninh and the Mekong Delta adopt a comprehensive standardisation strategy and identify requirements of each import market. In particular, they should establish a two-tier Halal standard system (basic and advanced ones) to give enterprises flexibility in selecting export pathways.

Standardizing products and services to Halal requirements, leveraging local advantages, and strengthening ties with key markets are critical to unlocking Vietnam’s opportunities in the Muslim world, he opined.

Nguyen Hong Thanh, Vice Chairman of the Tay Ninh provincial People’s Committee, highlighted that opening the Halal market is a strategic opportunity not only for Tay Ninh but also for the Mekong Delta, enabling more exports to the UAE, the Middle East, and Africa.

Tay Ninh is now home to more than 37,000 businesses and nearly 1,900 FDI projects worth over 24 billion USD, including 57 enterprises already granted Halal certificates and 48 engaged in trade with the UAE. The province has pledged favorable conditions in infrastructure, land, and investment climate, while inviting businesses and industry associations to step up trade promotion and global distribution linkages, paving the way for Vietnamese products to establish a strong foothold in the international Halal market.

Opportunities and challenges for Vietnamese industry amid surging foreign investment

In the first half of 2025, Vietnam recorded a 32% increase in foreign direct investment (FDI) in the manufacturing sector, equivalent to nearly 12 billion USD, accounting for more than 56% of total registered capital. This is the highest level since 2009, marking progress not only in scale but also in the quality of flows of investment capital.

Analysing this situation, John Campbell, Director of Industrial Services at Savills Ho Chi Minh City, said that Vietnam has seen a sharp rise in the number of new manufacturing projects, as well as important shifts in the industrial real estate market.

Accordingly, Savills noted that the 32% year-on-year increase in FDI in the manufacturing sector in the first half of 2025 represents significant progress, not only for the sector itself but also for Vietnam’s economic trajectory. The manufacturing and processing sectors attracted nearly 12 billion USD, accounting for over 56% of registered FDI, reaffirming their leading rold. This dramatic increase — the highest since 2009 — reflects global confidence in Vietnam’s investment environment and role in supply chains.

Apart from this impressive growth, value-added output rose more than 10% year-on-year, contributing nearly 2.6 percentage points to GDP. This is not a short-term boom but a structural shift in investor confidence and market maturity. This is a breakthrough in both scale and structure, that reinforces Vietnam’s roadmap towards high-value sustainable industrial growth.

According to John Campbell, global factors are simultaneously driving FDI flows into Vietnam, including supply chain diversification, trade tensions and tariff pressures prompting firms to seek manufacturing destinations, with political stability and tariff incentives. Preferential trade agreements such as RCEP, CPTPP and EVFTA give Vietnam access to about 65% of global markets, further boosting its appeal for export-oriented manufacturing.

With its strategic location near China, Vietnam offers both competitive labour costs and seamless connectivity to regional supply chains. Rising green and high-tech FDI is evident in sustainable and advanced production projects such as Lego’s green factory and chip packaging investments, showing a shift towards modern, environmentally friendly industry.

“These combined factors are opening a new era of high-value, sustainable FDI flow into Vietnam, positioning the country as a global manufacturing hub that goes beyond cost advantages,” Campbell said.

Statistics from Savills Vietnam show that the number of new manufacturing projects rose by nearly 40%, underlining the country’s increasing strategic appeal in global supply chains. This reflects rising investment demand and market development.

The surge also demonstrates strengthened investor confidence, not only in capital inflows but also in operational expansion, with business establishing strategic facilities, NDO reported.

Long Thanh Industrial Park, Dong Nai. (Photo: NDO)
Long Thanh Industrial Park, Dong Nai. (Photo: NDO)

The demand for building flexible supply chains is prompting investors to seek production destinations which are geographically diverse and politically stable. Vietnam’s rising reputation as a manufacturing hub is supported by infrastructure development, supportive policies and favourable trade positioning. This proves that Vietnam is not just a “passive recipient” of supply chain shifts, but has become a priority link in global production networks.

Notably, the surge in ready-built factories (RBF) outpacing land purchases may mark a turning point in Vietnam’s industrial property market. RBFs provide advantages such as faster start-up times and lower initial costs, with demand rising sharply.

In the first half of 2025, RBFs and logistics facilities recorded the highest absorption rates in three years, with occupancy reaching 88–89% across regions. Rising demand for RBFs has pushed up rental yields and occupancy, driving industrial expansion. While industrial land supply continues to grow, developing new facilities requires more time and capital, making RBFs a strategic option for investors seeking flexibility.

The shift towards RBFs reflects the maturity of Vietnam’s industrial real estate market, as investors prioritiese flexibility, speed and modern infrastructure — factors especially critical for high-tech and green manufacturing sectors meeting ESG (Environmental, Social, and Governance) standards.

From this reality, Savills Vietnam recommends measures to help the industrial real estate market grow sustainably and maintain FDI attractiveness. Priorities include ensure a stable and greener power supply; expand the DPPA mechanism and renewable energy; provide available land fund with streamlined approvals and transparent pricing; expand connectivity infrastructure by completing 3,000 km of expressways and upgrading seaports and ICDs; encourage development of high-standard RBF/RBW (ready-built warehouses) and BTS (build-to-suit) projects; adjust incentive policies suitable with the global minimum tax while retaining appeal; and develop specialized human resources for semiconductors and high-tech manufacturing.

Wartime film Red Rain selected as Vietnamese entry for 2025 Oscars

The Ministry of Culture, Sports and Tourism announced on September 30 that the film "Mưa đỏ" (Red Rain) has been chosen as Vietnam’s official submission for the Best International Feature Film category at the 98th Academy Awards (Oscars).

A national selection council, comprising leading managers, artists, directors, producers, and screenwriters, was convened to discuss and vote on the nominee. After careful consideration, Red Rain received strong recommendations and was selected to represent Vietnam at the world’s most prestigious film awards.

According to the Cinema Department, Vietnam’s participation in the Oscars not only aims to introduce the nation’s cinema to international audiences but also affirms its growing position in the global film industry, fostering cultural exchange and opportunities for collaboration, cited VOV.

Red Rain has grossed VND710 billion as of September 29, making it the most-watched Vietnamese film of all time.
Red Rain has grossed VND710 billion as of September 29, making it the most-watched Vietnamese film of all time.

Directed by Meritorious Artist Dang Thai Huyen and produced by the People’s Army Cinema, Red Rain is a fictional wartime drama inspired by the 81-day battle at the Quang Tri Ancient Citadel, central Vietnam. Since its release, the film has shattered domestic box office records, drawing 8.1 million viewers and grossing VND710 billion as of September 29, making it the most-watched Vietnamese film of all time.

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