Over 146,000 businesses issue e-invoices from cash registers in H1

The implementation of electronic invoices from cash registers is a step in the process of modernizing tax administration.

The number of businesses registering to issue e-invoice generated from cash registers reached 146,032 in the first six months of 2025, a five-fold increase compared to the same period last year, according to the  Department of Taxation of the Ministry of Finance.

As of July 15, the figure rose to 252,635, a 2.4-fold growth in comparison with the end of 2024.

The Department targets to have 100% of businesses that involve in direct sale activities such as food and beverage, restaurants, hotels, supermarkets, and retail, to register to issue such e-invoices.  

The implementation of electronic invoices from cash registers is a step in the process of modernizing tax administration, replacing the lump-sum tax method, and increasing transparency in business activities.

 

Pharma sector faces up to AI hurdles

According to FPT Digital, AI and generative AI are creating positive impacts across the global pharmaceutical industry. GenAI is expected to contribute between $60 billion and $110 billion annually from 2024 to 2029. All stages of the pharmaceutical value chain are benefiting from the application of GenAI.

Hoang Viet Anh, chairman of FPT Digital, explained that AI supports the development of new drugs by significantly reducing both time and costs. A notable example is Insilico Medicine, which, with AI support, discovered a new drug in under 18 months, at just 10 per cent of the usual cost.

“In clinical trials, AI can shorten the trial period by up to 12 months and cut costs by 50 per cent compared to conventional methods,” Anh said.

To realise these substantial benefits, the global pharmaceutical industry is expected to invest heavily in AI towards 2030, with projected annual growth of 42.68 per cent. By 2029, total investment in AI by pharmaceutical companies is forecast to reach $18 billion, with the Asia–Pacific region emerging as the fastest-growing market.

“The application of AI in the pharmaceutical industry has been, and will continue to be, a strong development trend,” said Anh. “Vietnam cannot remain outside that trend. This is a golden opportunity for Vietnam’s pharmaceutical sector to embrace digital transformation and apply AI to boost operational efficiency.”

Anh noted that Vietnam currently has a highly open legal framework, including heavily promoted new rules on providing strong impetus for digital transformation and the application of new technology and innovation across all sectors, including pharmaceuticals.

In parallel, the role of the private economy is being enhanced, enabling pharmaceutical firms, hospitals, doctors, and pharmacists to collaborate based on shared data systems.

However, experts have pointed out that Vietnam’s healthcare sector still faces considerable challenges in applying AI and innovation to improve healthcare accessibility. The pharmaceutical data infrastructure remains fragmented, lacking a centralised, standardised, and digitalised system – a major roadblock to development.

“The industry continues to face difficulties in tracing drug origins and preventing the circulation of counterfeit or substandard medicines,” admitted Anh from FPT Digital. “Clinical trials for new drugs also remain lengthy.”

Experts suggested that Vietnam could learn from international models to enhance innovation and digital transformation in the sector. Hwee Ching Ang, deputy CEO of the Experimental Drug Development Centre in Singapore, said rising healthcare demand in the Asia–Pacific region is driving greater interest and investment in innovation. With rapid growth and escalating demand, the region is becoming a new frontier for the life sciences sector.

“In response, the Singaporean government has long prioritised biomedical innovation to boost research output and attract talent,” he said. “Singapore has steadily invested in research and development for more than two decades, enhancing the financial environment through both domestic and international capital inflows into the biotech ecosystem.”

He added that Singapore is strengthening translational and clinical research capabilities and attracting multinational companies to establish regional headquarters and research centres.

As a result, more than 41 per cent of the world’s leading biopharmaceutical companies now have their regional headquarters in Singapore, making it the most innovative nation in Asia–Pacific. The country’s ecosystem comprises a diverse mix of multinational corporations, startups, government agencies, venture capital investors, and incubators.

Dr. Chang Liu, CEO and founder of ASK Health Asia, said that building a multi-layered health financing system can help improve access.

“There is a growing trend in Asia–Pacific towards multi-source healthcare financing to ensure better access to high-value treatments,” Liu said. “Evidence shows that traditional public funding mechanisms may be limited in scope and availability, creating delays or gaps in patient access.”

For example, Singapore has evolved from a savings-based model to a multi-source system, developing government-backed commercial health insurance schemes that now cover more than 70 per cent of the population.

Mainland China is working to build a multi-layered insurance framework with basic medical insurance at its core, supplemented by commercial insurance. It has also promoted public–private partnership models, now covering more than 12 per cent of the population.

In Taiwan, authorised agencies are exploring diversified financing mechanisms for high-value treatments not covered by national health insurance, including a dedicated cancer drug fund to ease patients’ financial burdens.

Japan, meanwhile, is advancing initiatives to strengthen its drug discovery capabilities through the Council of the Concept for Early Prevalence of Novel Drugs to Patients. These efforts aim to eliminate both drug lag and drug loss.

Specifically, Japan is establishing frameworks for first-in-human clinical trials, enhancing the role of core clinical research hospitals in drug development, promoting multi-regional clinical trials, supporting the development and career progression of clinical trial professionals, and encouraging overseas companies to conduct trials in Japan.

Takaaki Enoki, deputy director of the National Healthcare Policy Secretariat under the Japanese government, said, “To maintain Japan’s global leadership in drug discovery, we are building an ecosystem that supports academia and startups from early research to clinical application, with consistent policy and financial backing. This is also vital for ensuring national security.”

By reforming the structure of the pharmaceutical industry and improving the investment environment, Japan aims to create a sustainable system that enables continual, cyclical development of innovation and capital.

“At the same time, we will promote balanced policies over the medium and long term, considering the integration of general treatment and self-care models,” Enoki added.

Vietnam currently has nearly 95 per cent of its population covered by health insurance. However, despite achievements in healthcare financing, the country still faces a high level of out-of-pocket spending, which now exceeds 40 per cent of total healthcare expenditure – indicating that many individuals are still paying significantly for medical services beyond insurance coverage.

Pharma sector faces up to AI hurdles

Le Thanh Long, deputy Prime Minister

Vietnam’s healthcare system is currently deeply affected by digital transformation and innovation. Science and technology are changing approaches to medical examination and treatment, disease prevention, scientific research, training, medical management, and people’s health management.

In recent times, digital transformation in healthcare has made significant progress. All medical facilities have deployed hospital information systems. Many have deployed e-health records, remote exam and treatment, electronic prescriptions, AI treatment support, and the use of robots.

However, digital transformation in healthcare still faces many issues which raise urgent requirements for innovation in leadership, direction, and strong implementation in public healthcare in the new era as directed by the general secretary.

With that spirit, the Politburo has recently issued important pillars in the form of various resolutions for national development. These resolutions, together with the Politburo’s resolutions in the health sector that are about to be issued, will create strong momentum and breakthroughs in healthcare.

David Duong, global primary healthcare director Harvard Medical School

Vietnam has made strides in policy. The country expands health insurance coverage to 93 per cent of the population, including a wide range of primary healthcare services, expanding primary healthcare services through a pilot family medicine model, and upgrading commune health stations to manage non-communicable diseases and provide patient-centred care. It also carried out training and retraining of health workers and investment in digital health, as well as issuing clinical guidelines for chronic diseases that emphasise hierarchy.

The country needs continued investment in policy implementation. Policy implementation needs support because of outdated healthcare staffing model. Many doctors at commune health stations are unqualified or inexperienced in chronic disease care. In particular, task sharing, competency-based training, and incentives are needed to retain healthcare workers in rural areas.

Supervision, support, and experience are insufficient to improve quality and implement clinical standards.

Local policies have not kept up with the times. National policies call for decentralisation, but this must be accompanied by changes and updates to local-level processes and procedures (for example diagnostic systems and sample transport systems). It should also overcome the loss of trust in the primary healthcare system. Patients often bypass primary healthcare to go directly to higher-level hospitals due to lack of trust in the services of commune health stations.

Primary selling price for apartments in Hanoi keeps upward trend

The selling price of some projects hitting VND91 million ($3,460) per square meter.

The primary selling price for apartments in Hanoi reached VND91 million ($3,460) per square meter, excluding VAT and maintenance costs.

Savills Hanoi even recorded some new high-end projects in the capital city with the primary selling price exceeding VND100 million ($3,892) per square meter in the third quarter of the year.

Ms. Do Thu Hang, Senior Director, Advisory Services of Savills Hanoi, said the apartment market in Hanoi has witnessed an upward trend in selling price, focusing on primary apartments offered directly by investors.

However, from 2026, the price is forecast to decline due to strong increase of supply.

Ms. Trang Bui, Director General of Cushman & Wakefield, said the price hike for  apartments in Hanoi in the second quarter of 2025 was mainly driven by the increase of high-end and premium properties, which accounted for nearly 46% of the new supply in the quarter.

 

Dong Nai to start construction of many key projects on National Day

Total investment capital of these projects estimated at over VND50 trillion ($1.9 billion).

Construction of some key projects is scheduled to kick off in southern Dong Nai province on the occasion of the upcoming National Day (September 2), according to the provincial People’s Committee.

They include the Sub-project No.1 of the North-South Expressway (the Gia Nghia – Chon Thanh section), the expanded Tri An Hydropower plant, the expanded Ho Chi Minh City – Long Thanh expressway, and Dau Giay – Tan Phu expressway.

Other projects include construction of an apartment to be built as part of the Thang Long Home – Hiep Phuoc residential area, a social housing project, and Ma Da bridge.

Meanwhile, an inauguration ceremony will be held for the Tan Van – Nhon Trach section of the Ring Road No.3 of Ho Chi Minh City, which runs across Dong Nai province.

Total investment capital of all these projects is estimated at over VND50 trillion ($1.9 billion).

 

 

 Van Don and Cat Bi int’l airports resumed operations from noon, July 22

The two airports had been required to suspend all flight operations from 11:00 pm on July 21 to 12:00 pm on July 22, 2025, due to Typhoon Wipha.

Van Don and Cat Bi international airports in Quang Ninh province and Hai Phong city, respectively, reopened for flights starting from 12 pm on July 22, the Vietnam News Agency quoted Mr. Uong Viet Dung, Director of the Civil Aviation Authority of Vietnam (CAAV), as reporting.

The airports have now met the conditions required to resume aircraft operations, Mr. Dung said,  however noting that the CAAV continues to ask the airports to strictly comply with regulations on aircraft operations under adverse weather conditions to ensure absolute safety.

The two airports had been required to suspend all flight operations from 11:00 pm on July 21 to 12:00 pm on July 22, 2025.

Meanwhile, Noi Bai International Airport in Hanoi and Tho Xuan airport in Thanh Hoa province have been instructed to continue monitoring weather forecasts and propose appropriate adjustments to their flight operation plans.

Due to the impact of Typhoon Wipha, the third storm hitting Vietnam this year, Van Don airport canceled three flights, while Cat Bi airport canceled 33 flights, on July 21.

PM proposes Sumitomo Group to expand investment in Vietnam

The group has invested in many industrial parks across the country.

Prime Minister Pham Minh Chinh expected Sumitomo Corporation to become a strategic investor of Vietnam with greater contributions to the Vietnamese economy while receiving Mr. Yukihito Honda, Group CEO of the Japanese firm’s Urban Infrastructure Development Group in Hanoi on July 22, according to a report from the Vietnam News Agency.
PM Chinh highly valued Sumitomo’s investment projects in Vietnam and called on the group to further expand its presence in the country.
He encouraged the group to accelerate and enhance the effectiveness of its investments, particularly in areas of its strength such as infrastructure, finance, real estate, transport, railways, electronics, chemicals, high-tech agriculture, industrial parks, smart cities, logistics, digital transformation and green transition.

Having operated in Vietnam for 70 years, the Sumitomo Corporation is now taking part in the North Hanoi Smart City project. It has invested in industrial parks in Hanoi, Hung Yen, Phu Tho, Thanh Hoa and Quang Tri; participated in the EPC contract for Ho Chi Minh City’s Urban Railway Line No. 1; and developed the Van Phong 1 BOT thermal power plant, with a capacity of 1,320 MW, which has already been put into operation, the PM noted.
Agreeing with the PM’s call to expand investment, Mr. Honda expressed Sumitomo’s commitment to contributing to Vietnam’s development. He also asked for continued support from the Vietnamese Government in implementing current projects and backing for the proposed Van Phong 2 gas-fired power plant project.

Digital assets now on a legitimate footing

For the first time, digital assets have been referenced in recent legislative drafts, laying the groundwork for their legal recognition as a legitimate form of property and paving the way for transparent, sustainable market development.

The regulatory landscape for innovation, especially within the digital asset space, was a central topic at an investment conference held in Hanoi two weeks ago, highlighting the government’s intent to shape an enabling legal environment for the digital economy.

According to Nguyen Khac Lich, director of the IT department under the Ministry of Science and Technology, around 10 laws related to innovation and digital technology are either in development or have already been passed, forming a comprehensive legal framework for the digital economy.

“In the short term, the Law on the Digital Technology Industry, with detailed provisions on digital assets, will lift an estimated 21 million Vietnamese holders of these assets out of the legal grey zone. It formally classifies digital assets as a form of property under civil law, protected on par with physical assets,” Lich said.

Among the laws that have already been adopted are the Law on the Digital Technology Industry, the Law on Data, and the Law on Science, Technology, and Innovation. In addition, four others are currently under review or in the early stages of implementation.

The Law on the Digital Technology Industry, passed in June, is set to take effect in January 2026. Under the law, digital assets are recognised as civil property defined in digital form, created, issued, stored, transferred, and authenticated using digital technology in an electronic environment. The move is expected to establish a critical foundation for a more transparent and robust digital asset market in Vietnam.

According to blockchain analytics firm Chainalysis, Vietnam ranks among the world’s top countries for cryptocurrency adoption, with 17 per cent of the population engaging in digital asset transactions, 3-4 times the global average. Annual inflows into the market have surpassed $100 billion, reflecting the sector’s considerable untapped potential.

Mai Huy Tuan, CEO of SSI Digital, said the legislative recognition of digital assets is something Vietnam’s blockchain startup community has long awaited. In the past, startups were often forced to register legal entities in jurisdictions such as Singapore or Dubai to develop their products.

“Now, they can operate transparently within Vietnam, reduce compliance costs, and receive legal support domestically. This recognition also opens the door to international fundraising, global distribution of Vietnamese-developed digital assets, and new contributions to national tax revenue,” he said.

Phan Duc Trung, chairman of tech firm 1Matrix, noted that Vietnam’s digital asset market was previously dominated by offshore service providers and informal fundraising activities that lacked transparency.

“Today, the landscape has expanded well beyond small tech startups, attracting major players such as Techcombank, Techcom Securities, Vingroup, Masan, and HDBank,” Trung said. “With the legal framework in place, capital mobilisation will become public, legally protected, and more accessible, reducing investor risk and creating opportunities for credible domestic ventures.”

From a global perspective, Richard Teng, CEO of Binance, emphasised blockchain’s role in combating money laundering due to its traceability, with illicit flows accounting for just 0.02 per cent of global transactions.

Binance remains the world’s largest digital asset exchange, processing more than $90 billion in daily transactions and serving over 280 million registered users, with a global market share exceeding 41 per cent.

“Vietnam is emerging as a critical node in the global digital asset economy, and will play a pivotal role in the next wave of financial innovation, including Web3, AI, stablecoins, and tokenised assets,” Teng said.

According to a joint report by Boston Consulting Group and ADDX Singapore, the global digital asset market surpassed $2 trillion by mid-2025 and is projected to reach $16.1 trillion by 2030.

Amid this growth, governments from around the world are competing to regulate and harness the sector. Singapore, China, and members of the European Union are piloting central bank digital currencies as part of a broader push to manage digital value flows.

In parallel, jurisdictions such as Singapore and Switzerland have launched sandboxes to enable small businesses to raise capital legally through tokenised securities.

Real estate is also undergoing tokenisation. In markets like the US, UAE, and Germany, investors can now buy fractional ownership in property for just a few hundred US dollars, enabled by digital asset infrastructure.

In the carbon credit space – essential for achieving net-zero goals – regions including Europe, China, and South Korea are piloting blockchain-based platforms to ensure transparency, traceability, and global interoperability.

The Vietnam Blockchain Association reports that more than 1,000 blockchain firms have been established over the past five years, many of which have used token-based models to raise capital from global communities. Vietnam’s digital asset market is projected to reach $2.9 billion by 2026, with a compound annual growth rate of around 21.5 per cent, according to Statista.

Vietnam legalises digital and crypto assets Vietnam legalises digital and crypto assets

Vietnam legalised digital and cryptoassets in the Law on Digital Technology Industry passed by the National Assembly on June 14.
Digital assets finally go legal for Vietnam Digital assets finally go legal for Vietnam

The official legal recognition of cryptoassets presents both an opportunity to accelerate the growth of the digital tech market and a challenge in mitigating potential related disputes.
Vietnam’s legislative breakthrough on digital assets Vietnam’s legislative breakthrough on digital assets

With legal clarity on digital assets now in place, Vietnam is poised to draw in global capital. Tran Huyen Dinh, chairman of the Fintech Application Committee under the Vietnam Blockchain Association (VBA) discussed with VIR’s Hoang Oanh how the new law could reshape fintech, blockchain, and investor confidence.

Some $5 billion remitted home annually by guest workers

Over 700,000 Vietnamese workers are now working abroad.

Approximately $5billion have been remitted home annually by over 700,000 Vietnamese guest workers, the Government News quoted figures from the Ministry of Home Affairs as reporting on July 18.

In the first half of 2025, over 74,000 guest workers traveled to work abroad, accounting for 57.5 percent of this year’s target.

Over the past three years,  around 150,000 Vietnamese laborers were sent to Japan, South Korea, Taiwan (China) and European countries.

Remittances play a vital role in supporting families and contributing to national economic stability, particularly in rural and remote areas.

Currently, more than 500 enterprises are authorized to provide overseas employment services for Vietnamese workers.

All workers must undergo orientation sessions covering customs, traditions and legal regulations of their host countries before their departure.

Six-lane Vung Ang – Bung expressway section to be complete

The 54-km section connecting central Ha Tinh and Quang Tri provinces.

The Ministry of Construction has approved the adjustment of the Vung Ang –Bung expressway, which is one of 12 sub-projects of the Eastern North-South Expressway during the 2021-2025 periods.

The Vung Ang – Bung expressway section will get full investment to have six lanes, allowing a maximum speed of 100 kph.

The second tube of But Pass Tunnel, part of the expressway section, will also be built. The 1-km tunnel consists of two tubes, with each being 15 m wide and 8 m high, featuring with three traffic lanes.

Under the initial plan, in the first phase of the project, the four-lane expressway section and the first tube of the But Pass Tunnel have been under construction since January 2023.

Under adjusment plan, the section will be expanded to six lanes and the second tube of the tunnel will be built.

The 54-km expressway section will run across central Ha Tinh province and former Quang Binh province, which has been merged into Quang Tri province since July 1, 2025.

The adjustment does not change the total investment capital of the project which is estimated at VND12.548 trillion ($494 million).

 

 

Citi raises forecast for Vietnam’s 2025 GDP growth

According to Citi analysts, the prospects for continued deepening of onshore supply chains remain high, with uncertainties on global trade policy and possible export payback in the first three quarters of 2025 (3Q).

Citi raises forecast for Vietnam’s 2025 GDP growth

Stricter enforcement of rules of origin certification could accentuate the export payback in the near term, and details on how transshipment will be redefined remains unclear.

In April, the Vietnamese government issued a directive to strengthen the inspection and supervision of the origin of goods.

Citi assumes that a scenario where tighter inspection post-deal leads to export delays cannot be totally ruled out, and this in turn could accentuate an expected reversal or payback of export growth in 3Q, following the frontloading of shipments to the US in the first half of this year.

More broadly, Citi economists keep in mind that effective tariffs have just been raised thus could finally translate to higher selling prices and dampened demand from US consumers.

For example, Citi analysts indicated back in April that some textile suppliers producing in ASEAN would cover only a third of the reciprocal tariff, while the rest would be split between the brand owner and consumer.

In June, export growth fell slightly to 16 per cent on-year, from 17 per cent in May.

Longer term, Citi assumes Vietnam’s tariff advantage remains, retaining the incentive to deepen local supply chains.

The steady-state for the global tariff landscape is still unclear, pending outcomes of US negotiations with various other economies.

As such, Citi has raised its forecast for Vietnam’s 2025 GDP growth to 7 per cent from the previous 6.6 per cent.

Raising GDP forecasts now seems counterintuitive to the backdrop of US tariffs on Vietnam having been just raised by 10pps.

Vietnam’s GDP growth in the first half of 2025 reaching 7.52 per cent, however, exceeding Citi Vietnam’s expectations and is higher versus the 7 growth seen in the first quarter of this year.

Although the acceleration, propelled largely by manufacturing with a 0.5pps addition, incorporated the effect of US frontloading, Citi highlights that the growth acceleration was also supported by domestically oriented sectors.

Citi raises forecast for Vietnam’s 2025 GDP growth
Minh Ngo, Vietnam Markets head and country treasurer

According to Minh Ngo, Vietnam Markets head and country treasurer, Citi’s priority is to connect global clients to local markets and local clients with global opportunities to support the growth of Vietnam.

Citi Vietnam is at the forefront of delivering world-class solutions in FX hedging, rates and commodities derivatives, liquidity management, and structured funding solutions for the bank’s corporate, commercial, public sector, and investor clients.

“Our extensive global network and international presence provide clients with a significant competitive advantage, empowering them to navigate an evolving market landscape and optimise their operations and supply chains in response to dynamic external market conditions,” she said.

Forecast upbeat for banking industry in 2025 Forecast upbeat for banking industry in 2025

Commercial banks’ pre-tax profits in 2025 are forecast to grow by 14.9 per cent year-on-year, while bad debt has peaked and is expected to decrease next year.
Citi Foundation announces 2025 Global Innovation Challenge to accelerate youth employability Citi Foundation announces 2025 Global Innovation Challenge to accelerate youth employability

Fifty community organisations will receive a collective $25 million in catalytic funding, building on over a decade of Citi Foundation investment in youth, with requests for proposals underway until March 4.
Vietnam Economic Report 2025: OECD insights on sustainable growth strategy Vietnam Economic Report 2025: OECD insights on sustainable growth strategy

The Ministry of Foreign Affairs, in coordination with the Ministry of Finance and the Organisation for Economic Cooperation and Development (OECD), hosted a seminar to launch the Vietnam Economic Report 2025 on June 20 in Hanoi.