Vietnam Weekly: Vietnam overhauls laws, deepens South China Sea posture, sets trade record

December 26, 2025 to January 1, 2026

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

1. New 2026 Laws Recast Planning, Resources, Energy and Advertising Rules

Effective 1 January 2026, a coordinated package of new and amended Chinese laws will reshape planning, resource governance, energy policy and digital advertising, affecting developers, extractive industries, utilities and online marketers. The revised Urban and Rural Planning Law aligns local plans with national, regional and provincial frameworks and separates land-related provisions to harmonize with the Land Law—intended to reduce overlapping plans and accelerate stalled real‑estate projects. An updated Geology and Minerals Law designates rare earths as “strategic,” tightens environmental and lifecycle controls, and devolves oversight to local governments to reduce fragmentation and resource losses. A new Atomic Energy Law establishes safety‑first rules for research reactors, nuclear power and civilian applications, while amendments to the Law on Economical and Efficient Energy Use impose mandatory efficiency standards and audits for high‑consumption buildings, pressuring developers in the near term but promoting greener assets over time.

Regulatory changes also target chemicals and digital advertising: revised Chemical and Advertising laws expand lifecycle risk management and clamp down on opaque online ads and livestream promotions, with clearer liability for influencers and platforms. An omnibus amendment spanning 15 agriculture and environment laws further streamlines procedures and decentralizes approvals affecting land use and project licensing. Taken together, the measures (effective 1 Jan 2026) signal stronger central policy direction on strategic resources and safety, plus accelerated local implementation—creating compliance demands for multinational investors and operational shifts for domestic firms.

Local Coverage: tuoitre.vn

From daily brief: 2025-12-31

2. China Expands Civil and Military Footprint in South China Sea After Series of High-Risk Incidents

China has moved to consolidate both civilian and military control in the South China Sea, opening a 6,000 sq m commercial center on Phu Lam (Woody Island) in the Paracels—territory claimed by Vietnam but occupied by Beijing—and deploying new ISR and electronic‑warfare systems on Mischief, Subi and Fiery Cross Reefs, according to CSIS AMTI satellite analysis. Throughout 2025 Beijing’s forces were involved in multiple high‑risk encounters: a PLA Z‑9 helicopter twice closed to within 3–10 meters of a Philippine BFAR patrol aircraft; Australia reported a J‑16 discharged flares near an RAAF P‑8; Chinese and Philippine personnel separately approached First Thomas Shoal; and a Chinese coast guard vessel collided with a navy‑converted cutter near Scarborough Shoal. Manila also reported Chinese units fired three flares near a Philippine patrol plane on December 6, and Taiwan shadowed China Coast Guard 3102 near the Pratas.

Collectively, these developments expand China’s surveillance and targeting reach across the South China Sea and underscore Beijing’s blend of hard and “gray‑zone” tactics—military aviation, coast guard and militia operations, and civilian infrastructure—to normalize control, complicate rival states’ responses, and raise the risk of miscalculation among regional and extra‑regional actors.

Local Coverage: thanhnien.vn

From daily brief: 2025-12-29

3. Trade Flows Hit Record US$900 Billion with FDI Electronics Driving Surge, U.S. Exports at New Peak

Vietnamese customs reported goods trade surpassed US$900 billion in late December, with full‑year 2025 turnover estimated at US$920 billion, up 16.9% year‑on‑year. Exports are projected at US$470.59 billion and imports at US$449.41 billion, producing a US$21.2 billion surplus. Foreign‑direct‑investment (FDI) enterprises dominate activity—accounting for 72% of trade and roughly US$663 billion in two‑way commerce—with high‑tech manufactured goods (computers, electronics, phones, machinery) driving nearly half of export value and most of the year’s incremental growth.

Key markets remain the U.S. (record exports of US$151.85 billion) and China (largest supplier at US$183 billion); together they represent 46% of Vietnam’s trade. Customs director Nguyen Van Tho attributed the results to administrative reforms and accelerated digitalization aimed at reducing clearance checks and costs, measures that helped sustain performance despite global headwinds and domestic natural disasters. The data underscore Vietnam’s increasing concentration in FDI‑led, high‑tech trade and the strategic importance of market diversification and continued border‑process reform for resilience.

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

From daily brief: 2025-12-26

4. Industrial Property Moves Upmarket with FDI Shift to Large, High-Tech Sites

Vietnam’s industrial real estate is shifting upmarket toward large-scale, higher-value manufacturing and R&D projects, with Savills Vietnam identifying 2026 as the likely inflection point for a new growth cycle. Registered FDI reached USD 33.69 billion in the first 11 months of 2025 (up 7.4% y/y); while many new electronics projects (62%) still target ready-built factories, 68% of FDI capital is going to land leases, signaling long-term, capital‑intensive facilities. Key target sectors are semiconductors, electronics, data centers and green industrial parks aligned with ESG, and industrial rents and occupancy remain tight—southern zones report 90% land occupancy and rents around USD 191/m² per lease cycle, while ready-built factories average 92% occupancy at USD 4.4/m²/month.

Implications for investors and occupiers include a stronger premium on legal transparency, sustainability credentials and infrastructure access as drivers of site selection. Vietnam’s cost competitiveness persists (average factory wages ~USD 350/month and industrial power ~USD 0.076/kWh in 2025), and planned infrastructure upgrades—Long Thanh Airport Phase 1 and Ho Chi Minh City’s Ring Road 3 from 2026—plus established northern hubs (Bac Ninh, Hai Phong) should enhance connectivity and support the transition to higher‑value, long‑term industrial assets.

Local Coverage: vietnamplus.vn, tuoitre.vn

From daily briefs: 2025-12-30, 2025-12-31

5. Sweeping 2026 Legal Overhaul Elevates Teacher Pay, Tightens Data Rules, and Launches Digital Industry Framework

On January 1, 2026, a broad package of laws takes effect that will materially reshape education, labor, taxation, data protection and industrial strategy. The 2025 Teachers Law elevates public-sector educator pay to the highest salary tier, increases preferential allowances up to 100% in hardship areas, permits cross-school and cross-level teaching, enables preschool teachers to take up to five years’ early retirement without pension reduction (with 15 years’ social insurance) and allows extended service for PhD-holders; it also mandates a single national textbook set from 2026–27 and phased free textbooks by 2030, abolishes lower‑secondary diplomas in favor of transcript certification, and makes the Defense and Security Education course tuition-free. Parallel labor reforms expand unemployment insurance coverage and allow flexible contributions up to 1% of wages, while the Juvenile Justice Law (2024) reduces maximum prison terms for 14–15 year‑olds (12→9 years) and 16–17 year‑olds (18→15 years), preserving penalties for five serious crimes.

The overhaul also tightens data and industrial rules: a new Personal Data Protection Law enumerates individual rights (consent, access, deletion, objection); the 2025 Digital Technology Industry Law creates incentives—five‑year temporary residence, personal income tax benefits, competitive pay and housing support—for high‑skilled talent (including foreigners) to build a regional semiconductor and AI hub; and the 2025 Chemicals Law imposes lifecycle controls and end‑use disclosure. Tax changes include expansion of excise to sugary drinks above 5 g/100 ml and higher taxed bands for air conditioners under the 2025 Special Consumption Tax Law. Revised budgetary and railway statutes increase decentralization and accountability. Collectively, these measures signal a coordinated push to modernize workforce incentives, protect data, and attract strategic tech investment.

Local Coverage: com.vn, vietnamplus.vn, baotintuc.vn

From daily briefs: 2025-12-31, 2026-01-01

6. President Promulgates 14 Laws and One Ordinance Reshaping Security, Justice, and Public Service Rules

The Office of the President promulgated 14 laws and one ordinance passed by the 15th National Assembly and its Standing Committee that substantially reshape Vietnam’s frameworks for cybersecurity, criminal justice cooperation, state secrets, public sector staffing, and emergency powers. Key measures include a new Cybersecurity Law that standardizes definitions, lists prohibited acts, and expands obligations for service providers to remove unlawful content; a Law on Extradition and a separate Law on Mutual Legal Assistance in Criminal Matters clarifying competent authorities and streamlining cross‑border procedures; and amendments to the Law on Judicial Records that curb routine background-certificate requests by directing data access to state databases. The Law on Public Employees reorients recruitment and evaluation toward job‑position criteria and permits lateral entry from the private sector.

Timing and immediate implications are clear: most laws take effect on July 1, 2026, while the State Secrets and Legislative Oversight laws begin on March 1, 2026, and the Environmental Police ordinance becomes effective December 15, 2025. Collectively, these measures tighten state control over information and legal cooperation, alter compliance obligations for digital and private‑sector actors, and recalibrate public‑sector talent flows — developments international businesses, legal practitioners, and human‑rights observers should monitor closely.

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

From daily brief: 2026-01-01

7. Party Chief Sets 2026 as ‘Breakthrough Year’ for Science, Technology and Digital Transformation, with Twin Strategic Resolutions and Performance Metrics

Vietnam’s Central Steering Committee on science, technology, innovation and digital transformation designated 2026 as an acceleration year tied to the first year of the 14th Party Congress mandate, aiming for a “breakthrough” from foundations to measurable results. Two strategic resolutions will be issued early in the term: one to recast the national development model around science and technology, and a second to mobilize resources to achieve double‑digit growth. The committee prioritized building national digital and data architectures, critical infrastructure, consolidated databases and investment in 11 strategic technologies, while shifting agencies from plan‑driven to output‑driven management and linking outcomes to performance evaluations.

Operational measures include further digitization of public services, using the state as a “first customer” to commercialize innovation, and enforcing cybersecurity and waste‑prevention safeguards. Progress will be tracked in real time and publicly ranked under Resolution 57, signaling stronger performance accountability; the move signals that Vietnam intends to convert policy into commercially viable products and measurable economic gains in 2026, per General Secretary To Lam’s directive.

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

From daily brief: 2025-12-26

8. Ho Chi Minh City Forms Task Force to Fast-Track $2 Billion AI Data Center at Tan Phu Trung

Ho Chi Minh City has formed a 15‑member interagency task force, led by the Department of Science and Technology, to fast‑track approvals for the SGI‑HCM Campus, a near‑$2 billion AI data‑center complex planned in Tan Phu Trung Industrial Park, Cu Chi. Backed by Kinh Bac City Development Holding, Accelerated Infrastructure Capital (AIC) and Saigon Northwest Urban Development, the group will coordinate across agencies, mediate investor issues and escalate unresolved matters to the city government to accelerate permitting. The SGI‑HCM Campus targets about 200 MW IT load and up to 100,000 GPUs on a 10‑hectare, hyperscale‑ready site with mixed equity and commercial loan financing.

The initiative is part of a broader surge in Vietnam’s hyperscale and AI‑focused buildout—alongside proposed projects from G42 (a reported $2 billion “super data center”), Viettel’s 140 MW Cu Chi facility and CMC’s plans—and complements a separate phased $1 billion network announced by Create Capital Vietnam, Haimaker.ai and Vietnam Data Gen (initial 10–20 MW in Da Nang scaling to 100 MW nationally). Stakeholders emphasize domestic data storage and processing for sovereignty and to meet rising compute demand; policymakers frame these investments as critical to boosting national compute capacity and positioning Vietnam as an “AI‑sovereign” nation.

Local Coverage: tuoitre.vn, vnexpress.net

From daily briefs: 2025-12-26, 2025-12-31

9. Party Leadership Orders Two-Tier Local Government Overhaul, Expands Military Role at Commune Level

Vietnam’s Politburo and Party Secretariat issued Conclusion 228 ordering a rapid overhaul of the country’s two-tier local government to eliminate overlaps from decentralization and tighten administrative performance. The directive requires the Government Party Committee to finalize amendments to decrees governing provincial and commune-level specialized agencies, update allowance regimes for commune leaders, standardize complex procedures, and clarify inter-agency coordination; the Central Organization Commission will propose pay-policy revisions for Party, Fatherland Front, and mass-organization staff. Provinces must fully staff commune Military Command Boards, align commander qualifications, and adopt a unified approach to appointing deputies and assistants.

A significant security implication is the approved deployment of army officers to commune Military Command Boards: the Central Military Commission and Ministry of National Defense must deliver a roadmap and policy package by Q1 2026. The leadership has set a target to clear key bottlenecks by January 2026 to support national economic priorities and social welfare, signaling a tighter central control over local administration and closer integration of military personnel into grassroots governance.

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

From daily brief: 2026-01-01

10. Special Policy Framework for Van Don, Van Phong, Phu Quoc to Move to Politburo Review; Quang Ninh Urged to Lead on Governance and Rail Planning

Deputy Prime Minister Standing Nguyen Hoa Binh has instructed Quang Ninh province to fast-track administrative reform, digital infrastructure and grassroots governance, using citizen and business satisfaction as performance metrics, and to strengthen accountability for land and housing assets. He also directed the Ministry of Construction to accelerate planning for the Hai Phong–Ha Long–Mong Cai railway — a strategic corridor intended to unlock cross‑provincial land management and investment procedures — and asked Quang Ninh to prioritize marine tourism infrastructure, including island‑linking bridges.

Separately, the Ministry of Finance was tasked to lead development of a comprehensive proposal on tailored policy mechanisms for the Van Don, Van Phong and Phu Quoc special zones, coordinating with relevant ministries and localities for submission first to the Government Party Committee and, after the 14th National Party Congress, to the Politburo. The directives signal a push to balance traditional sectors with new growth drivers, streamline inter‑jurisdictional project implementation, and position special zones as engines of regional economic development.

Local Coverage: tuoitre.vn

From daily brief: 2025-12-31

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.