Vietnam News Today (Sep. 8): Australian Governor-General Visits Vietnam to Strengthen Strategic Trust

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Australian Governor-General Samatha Mostyn receives Vietnamese Vice Chairwoman of the National Assembly Nguyen Thi Thanh during her visit to Australia.

Australian Governor-General visits Vietnam to strengthen strategic trust

Governor-General of Australia Sam Mostyn will pay a State visit to Vietnam from September 9–12 at the invitation of President Luong Cuong and his spouse, underscoring the two countries’ shared commitment to strengthening strategic trust and promoting their comprehensive strategic partnership.

Australian Governor-General Sam Mostyn will pay a State visit to Vietnam from September 9 to 12, at the invitation of President Luong Cuong and his spouse.

Vietnamese Ambassador to Australia Pham Hung Tam affirmed that the visit carries important significance, demonstrating both countries’ determination to continuously strengthen friendship and cooperation across all fields, especially political cooperation, more than one and a half years after the establishment of the Comprehensive Strategic Partnership, cited VOV.

For Australia, the visit reflects the country’s consistent policy of attaching importance to and giving high priority to developing relations with Southeast Asia, including Vietnam. For Vietnam, welcoming the Australian Governor-General helps implement the foreign policy of the Party and the State, which values relations with countries in the South Pacific region, especially Australia, a country that plays an important role in the region, was the first Western nation to establish diplomatic relations with Vietnam, and now maintains highly effective and active cooperation with Vietnam.

Ambassador Pham Hung Tam noted that during the State visit to Vietnam, Australian Governor-General Sam Mostyn is scheduled to lay a wreath at the Monument to Heroic Martyrs, pay tribute at President Ho Chi Minh’s Mausoleum, hold talks with President Luong Cuong, pay courtesy calls on senior Party and State leaders, meet with leaders of the Ho Chi Minh National Academy of Politics, attend the Vietnam-Australia Forum 2025, and inaugurate the Vietnam–Australia Policy Institute.

The Governor-General is also set to visit Ho Chi Minh City, pay courtesy calls on municipal leaders, meet with the Australian community in Vietnam, and tour several cultural and historical sites. Notably, during this stop, she is likely to meet with Vietnamese officers and soldiers serving in peacekeeping missions, showing her attention to a key area of defence cooperation that is being implemented effectively between the two countries.

Friendship festival spotlights 30 years of Vietnam–US relations

The US–Vietnam Friendship Festival opened in Ho Chi Minh City on September 6, introducing the diverse cultures of the two nations and highlighting the spirit of reconciliation, cooperation, and future-oriented partnership between the two peoples.

Held to mark the 30th anniversary of Vietnam–US diplomatic relations (1995–2025), the event reaffirmed that people-to-people friendship serves as a solid foundation for bilateral ties and provides fresh momentum to make the Vietnam–US comprehensive strategic partnership deeper and more substantive.

Speaking at the opening ceremony, Dong Huy Cuong, Vice President of the Viet Nam Union of Friendship Organizations (VUFO), reviewed the course of bilateral relationship, describing it as a typical model of reconciliation in contemporary international relations, in which former adversaries have reached the highest level of partnership as “Comprehensive Strategic Partners.” He stressed that Vietnam and the US are building an equal, mutually beneficial cooperation for peace, collaboration, and development in the region and the world.

He further underlined that cultural and educational exchanges, along with people-to-people diplomacy, have laid a sustainable foundation for nurturing mutual understanding, trust, and friendship between the peoples of both countries. These, he said, are among the key pillars of the Vietnam–US Comprehensive Strategic Partnership for peace, cooperation, and sustainable development, according to VNA.

The Vietnam–US Friendship Festival offers the public a vivid insight into the 30-year journey of bilateral relations between the two countries. (Photo: htv.com.vn)

For her part, Melissa A. Brown, US Consul General in Ho Chi Minh City, described the friendship festival as a vivid demonstration of the strength of the partnership and dynamic people-to-people diplomacy. She emphasized that such ties lie at the very heart of Vietnam–US relations, with the festival showcasing how the two nations can join hands to create opportunities for learning, cooperation, and shared joy, reflecting not only government-to-government cooperation but also the deep bonds between their people in building a brighter future together.

The event drew thousands of participants, many of them students and young people in HCM City, who joined in cultural and sports exchanges, traditional folk games from both countries, American cuisine tastings, and exhibitions showcasing achievements in the development of Vietnam–US diplomatic relations.

The US–Vietnam Friendship Festival is part of a series of events celebrating the 30th anniversary of diplomatic ties between the two countries, taking place in Da Nang, HCM City, Can Tho, and Hanoi.

Growing FDI solidifies Vietnam’s standing as global strategic destination

According to the Financial Times, Hanoi, the thousand-year-old capital, today blends its rich traditions with the dynamism of an emerging economic hub.

Ancient streets filled with cafés, modern high-rises by serene lakes, and lush green parks vividly illustrate the country’s transformation. Beyond its cultural and lifestyle appeal, Vietnam stands out internationally as one of the world’s fastest-growing economies.

Since 1990, Vietnam’s GDP has grown at an average rate of nearly 7% per year. Even during 2020, when the COVID-19 pandemic caused recessions across most economies, the country managed to maintain positive growth. This rare achievement demonstrates the national economy’s remarkable resilience. Both the World Bank (WB) and the Asian Development Bank (ADB) have issued optimistic forecasts for 2025, projecting growth rates of 6.5% and 6.6%, respectively, further reinforcing confidence in the nation’s development prospects.

Notably, Vietnam has moved beyond relying solely on low labor costs, gradually developing a dynamic and flexible business environment. Since the Doi Moi (Renewal) process of the late 1980s, the government has continuously taken measures ranging from trade liberalization and state-owned enterprise equitization to streamlining administrative procedures. According to the Economist Intelligence Unit, Vietnam ranks among the countries that have most significantly improved their business environment worldwide over the past two decades.

Recent reforms show consistency in policy direction. The government has prioritized the development of clean energy, logistics, and modern infrastructure, while also accelerating the application of digital technology to simplify procedures for businesses. As a result, the investment environment has become more transparent, operating costs have decreased, and multinational corporations are increasingly viewing Vietnam as a strategic destination, reported VOV.

Photo: VOV

Global trade tensions, particularly the trend of shifting supply chains away from China, have created further opportunities for Vietnam to surge ahead. Thanks to its strategic location, young workforce, and competitive costs, the country has become Asia’s “new manufacturing gateway.” The presence of major companies such as Apple, Boeing, Intel, Coca-Cola, and Samsung not only brings substantial investment capital but also spurs the development of supporting industrial ecosystems.

High-tech products, ranging from smartphones and microchips to electronic components, now account for nearly half of total manufacturing exports, cementing Vietnam’s position as a production hub rather than a mere “transshipment point.”

In addition to attracting considerable capital, Vietnam has demonstrated policy sustainability. Several new-generation free trade agreements (FTAs), such as the CPTPP and EVFTA, have helped expand the country’s integration opportunities. This positions Vietnam as a key “link” in the global trade network while enhancing its reputation for policy stability and predictability –factors highly valued by foreign investors.

FDI inflows and growth prospects

While a favorable business environment provides the foundation, foreign direct investment (FDI) serves as a powerful growth engine helping Vietnam sustain its development momentum. According to EuroCham, Vietnam is one of the few countries in the region to record rising FDI even amid global downturns. In 2024, total disbursed FDI exceeded US$25 billion, showing the strong confidence of international investors.

The European business confidence index in Vietnam reached 61.8 points, a 33% increase compared to the previous year. Notably, 75% of surveyed companies regard Vietnam as a priority destination for long-term investment plans. Corporations from the US, Japan, the Republic of Korea (RoK), and Singapore continue to expand operations in Vietnam, thereby transforming the country into a multi-sector production hub, spanning electronics, technology, garments and textiles, and renewable energy.

A key factor driving growth is Vietnam’s workforce. With a population of more than100 million, more than 50% under 35, the country possesses a plentiful labor pool capable of quickly adapting to new technologies. Vietnam ranks highly in the region on the World Bank’s Human Capital Index, demonstrating comprehensive development potential across education, healthcare, and vocational skills. The startup ecosystem is also booming, with six tech unicorns surpassing those in some long-established European economies, making Vietnam a fertile ground for both FDI and domestic enterprises to grow together.

The role of women in the workforce is another advantage. Vietnam ranks among the countries with the highest female labor participation globally. This not only expands productive capacity but also contributes to balance and diversity in the workplace – qualities increasingly valued by multinational corporations.

Nevertheless, challenges remain ahead. The nation needs to continue upgrading infrastructure, investing in green technologies and high-value services, and enhancing transparent governance to maintain investor confidence. Since FDI is sensitive to geopolitical fluctuations, skillful foreign policy and a stable business environment will be key to sustaining its attractiveness.

Looking at data and forecasts, the prospects for a breakthrough remain clear. The World Bank emphasizes that only countries that invest heavily in human capital, reform institutions, and curb vested interests can escape the “middle-income trap.” Vietnam currently meets all three criteria.

In particular, emerging sectors such as artificial intelligence (AI), green technology, healthcare, and logistics are attracting new waves of investment. With an expected annual growth rate of nearly 28% in AI, Vietnam has entered the group of countries capable of competing in advanced technologies.

This creates opportunities to maintain FDI inflows while also enhancing Vietnam’s position on the global technology map.

From a resilient economy, Vietnam has emerged as a rising production hub and is gradually shaping its image as a global investment bright spot. The combination of institutional reforms, a solid manufacturing base, a young and energetic population, and high-quality FDI has created a distinctive success story. Amid global uncertainties, the country stands out as a remarkably optimistic exception, a Southeast Asian nation poised to break through and join the rank of high-income economies.

Vietnam’s 2045 vision: Turning youth potential into national prosperity

Today in Vietnam, the Party’s vision aligns with the people's aspirations for national prosperity. The question is no longer “Can we do it?” but “How will we act to make it happen?”

The strength of a golden population

Vietnam is a young country. Over 24 million people are of school age - nearly a quarter of the population. More than 65% of the population is of working age, offering a "golden window" for development that will remain open for just over a decade.

Yet, a golden population alone does not automatically lead to growth. The key question is: what are we doing to convert this potential into true momentum? The answer lies in policy, education, and an open business environment where young Vietnamese can thrive at home and on the global stage - creating new value and productivity, not merely serving as a source of cheap labor.

Just four decades ago, Vietnam was among the poorest nations in the world. In 1986, GDP per capita was under $700, and poverty affected nearly 60% of the population. Today, that figure is nearly $5,000, and poverty has fallen below 1%.

A rapidly growing middle class now accounts for 13% of the population, expanding by 1.5 million people each year. This demographic not only fuels consumer demand but also pressures policies to evolve and serves as a foundation for a more modern society.

Vietnam has maintained an average economic growth rate of 6.4% for decades - an impressive achievement in historical context.

Education has long been a point of national pride. Vietnamese students consistently rank among the top in global PISA assessments. Primary school enrollment exceeds 98%, lower secondary 95%, and upper secondary 80%. The adjusted years of schooling based on quality stand at 10.2 years - second only to Singapore in ASEAN.

The Politburo’s Resolution 71 on education reform targets a modern, equitable, and high-quality national education system, aiming for Vietnam to be among the world’s top 20 by 2045.

By 2030, Vietnam aims to achieve universal preschool for children aged 3 to 5, and compulsory education through lower secondary school. At least 85% of youth are expected to complete upper secondary education or equivalent, with progress in technology, AI, and English proficiency, VNN reported.

Photo: VNN

In healthcare, life expectancy rose from 70.5 years (1993) to 74.5 years (2023), while infant mortality significantly declined. About 93% of the population now has health insurance. In 1993, only 14% had access to electricity - today, it’s nearly 100%. Rural access to clean water has risen from 17% to 51%.

These numbers convey a clear message: development is not just about GDP growth but also about improving quality of life and expanding opportunity for all citizens.

Vision 2045: Becoming a high-income country

Vietnam has set its sights on becoming a high-income nation by 2045. To reach that goal, GDP per capita must grow by double digits annually over the next two decades. The roadmap includes green growth, inclusive development, digital transformation, and carbon emissions reduction.

Vietnam’s global commitments show its determination: cutting methane emissions by 30%, ending deforestation by 2030, and achieving net zero by 2050. According to the UNDP, Vietnam’s Human Development Index (HDI) in 2023 was 0.766 - placing it in the “high development” category, with low inequality and significant gender equality progress.

However, challenges remain. The population is aging quickly. Global trade is volatile. Automation and climate change are increasing pressure. Over the past decade, Vietnam’s productivity growth has averaged just 0.9% - lower than most peer countries. Vietnamese workers are still largely stuck in the lowest rungs of global value chains.

Why have many global tech giants chosen Thailand, Malaysia, or Indonesia over Vietnam? Why do private Vietnamese companies founded 30 years ago still lag behind major Chinese and South Korean corporations?

The root cause is not just capital or technology, but institutional constraints - legal frameworks, administrative procedures, investment policies, and implementation capacity.

Professor Tran Van Tho of Waseda University in Tokyo notes that Vietnam has never sustained a decade of 10%+ growth - a hallmark of Japan, South Korea, and China’s development miracles. Thus, Vietnam remains stuck in the lower middle-income trap.

A recent World Bank report emphasizes that the 2045 goal is highly ambitious. To achieve it, Vietnam must sustain productivity growth of 1.8% per year and an investment rate of 36% of GDP by 2030. Relying solely on investment would require an unsustainable 49% of GDP. Relying solely on productivity means exceeding the current 2% rate.

Under current projections, potential growth could fall to just 5% per year, putting the 2045 goal out of reach.

For years, Vietnam embraced the motto “stability for development” - and succeeded. But as old growth engines fade, it’s time to pivot to “development for stability.” Stability is impossible without new growth drivers, rising productivity, and institutional reform.

This shift requires broad and bold thinking: reforming bureaucracy, improving public investment efficiency, promoting innovation, expanding the digital economy, building green infrastructure, and empowering the private sector as a key growth engine.

Over the past 80 years, Vietnam has proven the strength of national will: securing independence, reunifying the country, launching economic reforms, and rising from poverty to middle-income status.

Today, the Party’s vision and the people’s aspirations converge in the quest for prosperity. The question is not “Can we?” but “How will we act to make it real?”

The recent 80th National Day celebration should not only be a moment of pride, but also a launchpad for a new era - one in which Vietnam reforms its institutions, unleashes resources, seizes the demographic dividend, overcomes the aging challenge, and secures its place among Asia’s leading nations.

Vietnamese language nurtures love for national culture in Czech Republic

The grand finale of the Honoring the Vietnamese Language 2025 contest was held on September 6 at the Sapa Trade Centre, a hub of the Vietnamese community in Prague, the capital of the Czech Republic.

Organized by the Vietnamese Associations in the Czech Republic under the patronage of the Vietnamese Embassy, the event brought together nearly 100 contestants – mostly second- and third-generation Vietnamese children – alongside hundreds of parents and community members. The atmosphere was warm and filled with love for the homeland.

Most contestants are students from Vietnamese language centres across the European country. Despite only attending a few courses, many impressed with their skills in poetry recitation, storytelling, singing and painting. Some children even surprised their parents with their confidence and remarkable progress in speaking Vietnamese.

For young people in the Vietnamese community, summer is not just a holiday but a valuable time to attend Vietnamese classes, meet peers and communicate in their mother tongue. The contest thus became both a playground and an opportunity to showcase learning achievements before families and the wider community, VNA reported.

Speaking to the Vietnam News Agency, teacher Le Hong Nhung, a member of the organizing committee, said that the ultimate goal is to create a meaningful space for the younger generation, born and raised in the Czech Republic, to learn and practise Vietnamese – the language spoken daily by their parents.

An art performance celebrating the event (Photo: VNA)

Mastering Vietnamese narrows the generational gap and strengthens family bonds, while also helping them better understand Vietnamese culture and confidently share it with Czech friends, she added.

Parents in the audience were visibly moved when listening to their children recite poems, narrate folk tales or sing familiar melodies of their homeland. Their eyes sparkled with happiness, proud that Vietnamese is being preserved and passed down through generations.

Nguyen Quoc Thanh, head of community affairs at the Vietnamese Embassy in the Czech Republic, praised the community’s dedication to teaching and learning Vietnamese and commended the significance of the contest. He affirmed the embassy’s continued support for associations, language centres and individuals committed to preserving and promoting the Vietnamese language.

On this occasion, the embassy awarded certificates of merit to groups and individuals who made outstanding contributions to the movement, encouraging further growth of Vietnamese language education.

The Honoring the Vietnamese Language contest is not only a language event but also a manifestation of the Vietnamese community’s love for their homeland and cultural roots.

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