Vietnam Weekly: Vietnam accelerates chip strategy, inks high-speed rail deal, adapts to EU CBAM

December 12, 2025 to December 18, 2025

This week's top 10 stories from Vietnam, selected from our daily intelligence briefs.

1. Semiconductor Push Advances with Legal Incentives, Regional Ecosystem, and 100,000-Engineer Goal

At a national workshop in Ho Chi Minh City officials outlined a package of legal and infrastructure measures to accelerate Vietnam’s semiconductor sector, including new incentives under the Digital Technology Industry Law and plans for national multi-project wafer (MPW) test centers to shorten prototyping time and lower costs. Projects from 6,000 billion VND will qualify for top-tier benefits—corporate income tax breaks, land rent exemptions, import duty relief and five-year personal income tax exemptions for high‑skilled workers—targeting fabless design and advanced packaging. Ho Chi Minh City, Bình Dương and Bà Rịa–Vũng Tàu are being positioned as a unified R&D–manufacturing–logistics hub with commitments on stable power, ultrapure water and digital infrastructure.

Officials identified human capital as the principal bottleneck and are reviewing a proposal to double the engineer target from 50,000 to 100,000 by 2030 (Deputy Minister Bùi Hoàng Phương). Ho Chi Minh City projects 25,000–30,000 new and replacement hires for late‑2025 to early‑2026 amid seasonal demand, while the broader economy may need 800,000–1,000,000 new workers by 2030, ~70% in services and high‑tech. The strategy emphasizes “order‑based” training, reskilling and MPW centers to bridge design‑to‑fab gaps; implications include accelerated domestic capacity for AI, hyperscale data centers and IoT, but persistent short‑term skills shortages that will require sustained workforce development.

Local Coverage: thanhnien.vn, baotintuc.vn, tuoitre.vn, vietnamplus.vn, vnexpress.net, vneconomy.vn

From daily briefs: 2025-12-13, 2025-12-18

2. Siemens Mobility to Supply Velaro Novo High‑Speed Trains to VinSpeed under Technology Transfer Deal

Siemens Mobility and Vietnamese operator VinSpeed signed a strategic technology‑transfer and turnkey supply agreement in Hanoi to design, deliver and integrate Velaro Novo high‑speed trainsets and core rail systems for proposed Hanoi–Quang Ninh and Ben Thanh–Can Gio lines. The deal covers rolling stock, signaling, communications, power systems, maintenance cooperation and transfer of know‑how; Siemens will provide its Velaro Novo EMU platform (certified up to 350 km/h), which Siemens says offers at least 10% greater passenger capacity and roughly 30% lower energy consumption versus prior generations, and will include ETCS Level 2 with ATO to boost safety and throughput.

For international stakeholders, the agreement — framed by VinSpeed CEO Pham Thieu Hoa and Siemens Mobility CEO Michael Peter — signals Vietnam’s push to build international‑standard high‑speed corridors and localize capabilities, with potential to reshape intercity mobility, stimulate tourism and industrial growth, and create long‑term maintenance and skills ecosystems. Specific timelines and contract value were not disclosed.

Local Coverage: vnexpress.net

From daily brief: 2025-12-18

3. EU Carbon Border Mechanism Sets New Compliance Bar for Vietnamese Suppliers

From 1 January 2026 the EU’s Carbon Border Adjustment Mechanism (CBAM) shifts from a reporting-only regime to a chargeable system for embedded emissions, making product carbon footprints as important as price and quality for exporters. Initial sectors covered are steel, cement, aluminium, fertilisers, electricity and hydrogen, with expansion expected to other carbon-leakage risks; the change forces disclosure obligations across full supply chains and has already led European buyers to demand product carbon footprints, lifecycle assessments and deforestation‑free sourcing proof.

For Vietnamese suppliers—particularly SMEs—this exposes a major readiness gap: emissions data is fragmented and measurement standards are limited. Independent third‑party verification is emerging as a gatekeeper and service providers such as Vinacontrol Group report rising demand to build auditable datasets and CBAM‑ready methodologies, citing work with Huy Minh Corporation to standardise accounting and meet EU documentation needs. Stakeholders warn suppliers face exclusion from EU supply chains unless they can demonstrate compliant emissions data.

Local Coverage: vneconomy.vn

From daily brief: 2025-12-16

4. Tariff-Driven Supply Chain Shift Elevates Role in Southeast Asia Manufacturing

U.S. tariff hikes on Chinese and other Asian imports are accelerating a decade-long reconfiguration of global supply chains toward Southeast Asia, notably Vietnam. Over the past ten years suppliers from China, Hong Kong and South Korea in U.S. chains fell from 90% to 50%, while logistics firm Project44 reports China–Asia Pacific trade flows rising with a 23% increase toward Vietnam. Investors are adopting multi‑hub models that retain China for components but shift assembly and finishing to Vietnam to exploit lower costs and extensive free‑trade agreements, even as Vietnamese exports face a roughly 20% U.S. tariff.

The shift is drawing FDI from Japan, South Korea, Singapore and Taiwan into electronics, consumer goods, energy and supporting industries, and prompting Chinese brands to pivot to Vietnamese markets and official entry routes—heightening competition for local firms. The region’s ability to capture sustained investment now depends on upgrades in logistics, workforce skills and local supplier ecosystems to move beyond low‑cost assembly into higher‑value manufacturing.

Local Coverage: baotintuc.vn

From daily brief: 2025-12-15

5. Specialized Financial Court Approved with Foreign Judges and Common-Law Procedures

Vietnam’s National Assembly approved the Law on the Specialized Court at the International Financial Center, effective 1 January 2026, creating a two-tier commercial and investment court in Ho Chi Minh City to adjudicate disputes tied to the financial hub. The law allows appointment of foreign judges—experienced lawyers or jurists with at least 10 years’ experience in investment and business disputes, English proficiency, and up to age 75—alongside qualified Vietnamese judges; English will be a working language and proceedings will incorporate common‑law features. The Supreme People’s Court is tasked with issuing detailed procedural rules.

The court will recognize and enforce foreign judgments and arbitral awards and empowers judges with strong enforcement tools such as asset freezes and travel bans. Chief Justice Nguyen Van Quang stressed the need for foreign judges to supply language skills, common‑law expertise and international credibility, reflecting Vietnam’s intent to boost investor confidence and align dispute resolution practices at the new International Financial Center.

Local Coverage: vnexpress.net, tuoitre.vn, vietnamplus.vn, baotintuc.vn, vneconomy.vn

From daily brief: 2025-12-12

6. Business Group Seeks Fixes to Land Law That Forces Firms to ‘Lease Their Own Land’

The Ho Chi Minh City Business Association’s Saigon Chamber of Business Associations (SCBA) has petitioned Vietnam’s National Assembly Standing Committee and relevant ministries to amend the 2024 Land Law and Decree 103/2024, arguing current rules unfairly penalize private landholders who were historically required to lease back their own privately sourced plots. SCBA Vice Chairman Tran Van Phat says firms converting such land to residential use now face 100% land-use fees computed from the state price table with no credit for original purchase costs, effectively treating privately originated land as state-leased land.

The association also flags the absence of a clear mechanism to terminate these legacy lease arrangements and reissue ownership certificates, which it says hinders financing, property transactions and urban planning. SCBA is requesting that privately originated, annually leased land users be allowed to end leases and have ownership certificates reissued according to original provenance and current use — changes that could materially affect corporate balance sheets, sector investment and real-estate market liquidity.

Local Coverage: thanhnien.vn

From daily brief: 2025-12-12

7. Digital Transformation Law Sets Unified Framework as Justice Ministry Launches Nationwide Enforcement Platform

Vietnam’s National Assembly has approved a Digital Transformation Law, effective July 1, 2026, creating a unified legal framework to consolidate sectoral statutes and replace much of the 2006 IT law. The law mandates default full-process online public services via the National Public Service Portal and National Digital ID app, reuse of national and sectoral database records, and accountability measures (including sanctions) for officials who request already-digitized documents. It also institutionalises a national architecture, data governance framework, capability framework, and an annual national digital transformation index with funding incentives, prioritising inclusive access, cloud-first and open standards, and support for SMEs and underserved regions.

Concurrently the Ministry of Justice launched a nationwide Digital Platform for Civil Judgment Enforcement and an intelligent monitoring centre enabling end-to-end digital case handling, AI-assisted data extraction and cross-agency links with courts, public security, population databases, banks and postal services. The rollout covers the General Department, 34 provincial departments and 355 regional offices, serving more than 6,800 officials. Local implementation is accelerating — Đắk Lắk reports universal village broadband, 99.9% 4G coverage and over 35% online submissions alongside a “Digital Literacy for All” drive — signalling both operationalisation of policy and tangible connectivity gains that aim to reduce fragmentation and speed administrative digitalisation.

Local Coverage: vietnamplus.vn, vnexpress.net, baotintuc.vn, vneconomy.vn

From daily briefs: 2025-12-12, 2025-12-16

8. Parliament Closes Marathon Session with Record 51 Laws, New Special Mechanisms for HCMC, Hanoi and Da Nang

Vietnam’s 15th National Assembly concluded its 10th and final session on December 11 after a 40‑day sitting that approved a record 51 laws and eight regulatory resolutions (reported elsewhere as 39 resolutions), representing nearly 30% of the term’s legislative output and setting a legal framework for 2026–2030. Key enactments include a Digital Transformation Law, Vietnam’s first dedicated Artificial Intelligence law, amended Investment and Bankruptcy Laws (with 38 conditional business lines removed, effective 1 July 2026), VAT changes, and sectoral updates in education, health, land implementation and energy. Parliament also endorsed major infrastructure investments (Gia Bình International Airport; Vinh–Thanh Thuy expressway; Long Thanh Airport phase 2) and extended budget and disbursement flexibilities, adding VND 17.64 trillion to 2025 central reserves.

The Assembly advanced special mechanisms to accelerate urban growth hubs—new free‑trade zone and strategic investor incentives for Ho Chi Minh City, expedited land and resettlement rules for Hanoi projects, and expanded flexibilities for Da Nang—and adopted three integrated national target programs through 2035 (rural development/poverty reduction/ethnic minority regions; health and population; education modernization). For international professionals, the package signals a shift from pre‑licensing to standards‑based, post‑audit oversight, greater regulatory certainty for digital and AI sectors, and refreshed fiscal and land tools to fast‑track infrastructure and urban development from 2026 onward.

Local Coverage: vietnamplus.vn, thanhnien.vn, baotintuc.vn, tuoitre.vn, vneconomy.vn, com.vn

From daily briefs: 2025-12-12, 2025-12-13

9. Investment Law Overhaul Cuts 38 Licensed Sectors, Tightens Bans on E-cigarettes and Streamlines Approvals

Vietnam’s National Assembly approved a major revision of the Investment Law, effective March 1, 2026, that removes licensing requirements for 38 conditional business lines and implements the revised list from July 1, 2026. The change shifts many sectors—chiefly services such as customs brokerage, insurance auxiliary services, commercial inspection, data centers, architecture, and multi-modal transport—from pre-licensing to standards-based post-audit, and narrows projects requiring investment policy approval to sensitive areas (ports, airports, telecoms, and projects impacting national defense and security). Finance Minister Nguyen Van Thang framed the move as a decisive shift “from pre-clearance to post-audit,” also noting adjustments to 20 other sectors.

The overhaul further streamlines outbound investment by replacing multiple prior approvals with foreign-exchange registration and introduces a facilitation allowing foreign investors to establish enterprises before obtaining an investment registration certificate. Regulators also tightened controls by adding e-cigarettes and heated tobacco products to the prohibited business list. For international investors and advisors, the law signals faster market entry and reduced upfront approvals in many service sectors from mid‑2026, while maintaining strict oversight for strategically sensitive projects and new public‑health-related bans.

Local Coverage: vnexpress.net, tuoitre.vn, thanhnien.vn, vietnamplus.vn, baotintuc.vn, tuoitre.vn, vneconomy.vn

From daily brief: 2025-12-12

10. Ho Chi Minh City Gains Expanded Powers on Urban Rail, TOD, and FTZ under Revised Resolution 98

Vietnam’s National Assembly approved revisions to Resolution 98 on December 11 (effective December 12, 2025), granting Ho Chi Minh City sweeping new powers to accelerate urban rail, transit‑oriented development (TOD) and pilot a Cái Mép Hạ Free Trade Zone (FTZ). The city can now acquire land, manage redevelopment and resettlement, set planning indicators that may diverge from national technical standards in strategic zones, and implement a single legally binding citywide master plan. Crucially, HCMC may retain 100% of land‑value capture from TOD to reinvest in metro and transport projects, fast‑track investor selection and site clearance, and adopt special fiscal and administrative mechanisms that take precedence over conflicting laws—moves described by local leaders as a “diamond opportunity.”

The FTZ—nearly 3,800 hectares tied to the Cái Mép–Thị Vải port system and structured into a 1,735 ha transport hub, 1,178 ha logistics/industrial zone and 850 ha high‑tech/urban area—will offer customs and tax incentives (e.g., 10% corporate tax for 20 years with initial tax holidays) and streamlined procedures to attract anchor investors, R&D and high‑skilled labour. Officials aim to operationalize frameworks and regulatory instruments by end‑2025 and begin projects in early 2026, but success will hinge on implementation capacity, inter‑agency coordination, risk governance and delivery of regional links (rail, highways, port logistics).

Local Coverage: tuoitre.vn, vnexpress.net, baotintuc.vn, vietnamplus.vn, com.vn

From daily briefs: 2025-12-12, 2025-12-16, 2025-12-18

About This Weekly Digest

The stories above represent the most significant developments from Vietnam this week, selected through our AI-powered analysis of hundreds of local news articles.

Stories are drawn from our daily intelligence briefs, which synthesize reporting from Vietnam's leading news sources to provide comprehensive situational awareness for international decision-makers.