Clarification on multiple issues in invoice and documentation regulations

,

On March 20, 2025, the Government issued Decree No. 70/2025/ND-CP (“Decree 70”), amending and supplementing several provisions of Decree No. 123/2020/ND-CP on invoices and documents (“Decree 123”), with the aim of updating regulations concerning the time of issuance of invoices for certain types of business activities. The key updates in Decree 70 include the following:

Time of invoice issuance for export of goods and services 

Decree 70 supplements the regulations regarding the time of issuance of invoices for the export of goods and provision of services to foreign organizations and individuals. Specifically as follows:

  1. For export of goods (including export processing), the seller is responsible for determining the time of issuing invoices, but the invoice must be issued no later than the next working day after the goods are cleared through customs in accordance with customs regulations.
  2. For export of services, the time of issuing invoices is when the service is completed, irrespective of whether payment has been received. If payment is made prior to or during the provision of the service, the invoice must be issued when payment is received, except for cases involving advance payments or deposits to secure services such as accounting, auditing, financial and tax consulting, valuation, technical surveys, design, supervision consulting, and investment project formulation.

Amending and supplementing regulations on time of invoice issuance in specific cases

Sale of goods and provision of services in large quantities or frequently recurring

In addition to the large-volume and frequently occurring goods and services already regulated under Decree 123, Decree 70 has introduced several new categories of goods and services, including railway transport support services, e-commerce services, banking services, securities services, online lottery services, and toll collection services between investors and toll service providers, as well as other cases as guided by the Minister of Finance.

Accordingly, the time of issuing invoices for these cases is the completion of data reconciliation between the parties, but no later than the 7th day of the month following the month in which the service was provided, or no later than 7 days after the end of the agreed period. The agreed period for determining the amount of goods and services provided is based on the agreement between the seller and the buyer.

Lending activities and foreign exchange agency activities, foreign exchange receipt and payment services

Decree 70 supplements regulations on the time of issuing invoices for lending activities. Specifically, the time of issuing invoices is determined based on the interest payment schedule in the loan agreement between the financial institution and the borrower.

In cases where interest is not collected by the due date and the financial institution tracks off-balance sheet under laws on credit, the invoice is issued when the interest payment is received. In cases of early interest payment under the loan agreement, the invoice is issued when the early interest payment is collected.

For foreign exchange agency activities, including the receipt and payment of foreign exchange services by credit institutions, the invoice must be issued at the time of the foreign exchange transaction or when the foreign exchange receipt and payment service is completed.

Supplementing applicable entities and content of electronic invoices generated from cash registers

Decree No. 123 did not provide regulations on the applicable entities for electronic invoices generated from cash registers, which caused difficulties for enterprises in using invoices. To address these challenges, Decree No. 70 specifically stipulates that entities eligible to use electronic invoices generated from cash registers include households businesses and individual businesses with an annual revenue of VND 1 billion or higher, as well as enterprises engaged in the sale of goods and provision of services, including sales of goods and services directed to consumers (shopping centers, supermarkets, retailing (excluding automobiles, motorcycles, motorbikes, and other motor vehicles), food and beverage services, restaurants, hotels, passenger transportation services, direct support services for road transport, artistic performances, entertainment, cinema operations, and other personal services in accordance with the Vietnamese Economic Industry Classification System) using electronic invoices generated from cash registers with data connectivity to the tax authority.

Additionally, Decree No. 70 also provides specific regulations on the content of such invoices to facilitate enterprises in issuing invoices. The required contents of electronic invoices generated from cash registers include: Name, address, and tax identification number of the seller; Name, address, tax identification number/personal identification number/phone number of the buyer, as required by regulations (if the buyer requests); Name of goods, services, unit price, quantity, and payment price. In cases where organizations or enterprises pay tax through deducting method, the invoice must clearly indicate the selling price excluding Value Added Tax, Value Added Tax rate, Value Added Tax price, and total payment including Value Added Tax; Time of invoicing; The tax authority’s code or electronic data enabling the buyer to retrieve and declare information from the electronic invoice generated from the cash register. The seller send the electronic invoice to the buyer electronically (via SMS, email, or other forms) or provide a link or QR code for the buyer to search and download the electronic invoice.

Overall, Decree 70/2025/ND-CP is a significant reform that contributes to improving the regulatory framework on invoices and documentation, facilitating businesses and tax authorities in fulfilling tax obligations and managing invoices.

DISCLAIMER

Legal News from Aliat Legal is provided for general informational and reference purposes only and should not be considered a legal opinion nor relied upon in lieu of specific advice. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication. Please contact us for further details on which you have concern.

Main office: 27-31 D7 Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City

Telephone: 19005555338 | Fax: [+84 28] 3519 4668

Email: contact@aliat.group

Website: www.aliat.group

Guidance on determining investment incentive areas following administrative unit reorganization

,

On April 9, 2025, the Ministry of Finance issued Official Letter No. 4525/BTC-PC to officially guide state management agencies and investors on how to determine areas eligible for investment incentives in the event of administrative boundary changes due to the reorganization and consolidation of administrative units. The Official Letter clarifies several important points as follows:

Continuation of current incentives for projects already granted investment registration certificates (“IRC”):

The Ministry of Finance affirms the principle that, regardless of administrative boundary changes, investors who have already been granted IRC will continue to enjoy the investment incentives related to the area as recorded in the IRC and the Investment Policy Approval Decision issued prior to the boundary change.

Determination of investment incentive areas for new projects:

For cases where investors register new investment projects after administrative boundaries have been reorganized compared to the list of incentive areas under Decree 31/2021/ND-CP but before the Government issues a new list of investment incentive areas, the Ministry of Finance provides the following guidance for determining investment incentive areas:

The investment incentive status of the newly established administrative unit will be determined based on classification of the majority of the former commune-level administrative units.

For example, if a new commune-level administrative unit is formed by merging several former communes, and the majority of those former communes were classified as areas with difficult socio-economic conditions, then the new commune-level unit will be classified as an area with difficult socio-economic conditions.

In cases where there is an equal number of former communes classified under different levels of investment incentive areas, the newly established administrative unit will be classified according to the area with more difficult socio-economic conditions in order to maximize investor benefits.

For instance, if a new commune-level administrative unit is formed from the merger of former communes, and the number of communes previously classified as areas with difficult socio-economic conditions is equal to the number classified as areas with especially difficult socio-economic conditions, then the newly established unit will be classified as an area with especially difficult socio-economic conditions.

Adjustment of the investment project after the change of administrative boundaries are non-mandatory

The Ministry of Finance emphasizes that investors are not obligated to carry out procedures to amend the IRC or the Investment Policy Approval Decision following administrative boundary changes. Any such amendments to update the new administrative boundaries are entirely at the investor’s discretion.

In short, Official Letter No. 4525/BTC-PC clarifies several important principles regarding the determination of investment incentive areas in the context of Vietnam’s ongoing nationwide administrative unit reorganization. Overall, the Ministry of Finance’s approach is to safeguard investors’ rights, ensuring that investors continue to enjoy the investment incentives previously granted prior to administrative boundary changes, and not requiring investors to amend investment project documents unless they wish to do so.

DISCLAIMER

Legal News from Aliat Legal is provided for general informational and reference purposes only and should not be considered a legal opinion nor relied upon in lieu of specific advice. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication. Please contact us for further details on which you have concern.

Main office: 27-31 D7 Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City

Telephone: 19005555338 | Fax: [+84 28] 3519 4668

Email: contact@aliat.group

Website: www.aliat.group

Enterprises are not required to update address upon reorganization of administrative boundaries

,

In the area of business registration, the Ministry of Finance issued Official Letter No. 4370/BTC-DNTN on April 9, 2025, providing guidance on business registration procedures following administrative boundary changes.

According to the official letter, the Ministry of Finance clarified that business registration authorities are not allowed to require enterprises to change their address information when administrative boundaries are adjusted. Instead, the update of address information based on the new administrative boundaries will be carried out simultaneously with other information changes when the business requests such adjustments.

Therefore, after administrative boundaries change, businesses are still allowed to continue using their previously granted Business Registration Certificates, Branch/Representative Office/Business Location Registration Certificates, without needing to go through the procedure to update the address on those certificates.

DISCLAIMER

Legal News from Aliat Legal is provided for general informational and reference purposes only and should not be considered a legal opinion nor relied upon in lieu of specific advice. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication. Please contact us for further details on which you have concern.

Main office: 27-31 D7 Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City

Telephone: 19005555338 | Fax: [+84 28] 3519 4668

Email: contact@aliat.group

Website: www.aliat.group

Extended deadlines for VAT, corporate income tax, personal income tax, and land rent payments from April 2025

,

On April 2, 2025, the Government officially issued Decree No. 82/2025/NĐ-CP regarding the extension of deadlines for the payment of value-added tax (“VAT”), corporate income tax (“CIT”), personal income tax (“PIT”), and land rent in 2025 (“Decree 82/2025”). Some of the key points of Decree 82/2025 are as follows:

Eligible enitites for tax payment extension

According to the new regulations, the extension of deadlines for the above-mentioned taxes applies only to enterprises, organizations, households, household businesses, and individuals engaged in production and business activities in specific sectors such as agriculture, forestry, fisheries, food processing, garment manufacturing, construction, publishing, transportation, accommodation services, education, healthcare, arts, entertainment, sports, the production of prioritized supporting industry products, key mechanical products, and several other sectors. In addition, the new decree also applies to small and micro-sized enterprises for taxes arising during the applicable period, in accordance with regulations.

Extented deadline for VAT payment

According to Decree 82/2025, the deadline for payment of VAT incurred by enterprises and organizations for the tax periods of February and March 2025, as well as Quarter I of 2025, will be extended by 6 months. Meanwhile, a 5-month extension will apply to VAT amounts due for April, May, and June 2025, and Quarter II of 2025. However, it is important for businesses to note that this extension does not apply to VAT on imports.

Extented deadline for CIT payment

For provisional CIT payments for Quarter I and Quarter II of the 2025 tax period, eligible enterprises are granted an extension of 5 months from the original CIT payment deadline under regulations of tax laws.

Extented deadline for land rent payment

According to the new Decree, the extension for land rent payment in 2025 applies only to 50% of the land rent amount payable in 2025 for eligible subjects that are directly leased land by the State under a Decision or Contract issued by a competent state authority, in the form of annual land rent payments. Specifically, the extension period is 6 months from May 31, 2025.

Regarding the extension procedure

To obtain a tax payment extension, enterprises are only required to submit the necessary documents to their directly managing tax authority once for all taxes and land rent arising in the eligible tax periods, together with the tax declaration submission. If the extension request dossiers are not submitted at the same time as the tax declaration, they must be submitted no later than May 30, 2025. 

In the context of the current economic challenges facing Vietnam, the issuance of Decree 82/2025 is expected to alleviate some of the difficulties and support business and production activities for individuals and enterprises of all sizes, thereby contributing to economic growth.

DISCLAIMER

Legal News from Aliat Legal is provided for general informational and reference purposes only and should not be considered a legal opinion nor relied upon in lieu of specific advice. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication. Please contact us for further details on which you have concern.

Main office: 27-31 D7 Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City

Telephone: 19005555338 | Fax: [+84 28] 3519 4668

Email: contact@aliat.group

Website: www.aliat.group

The Government proposes 30% reduction in the land lease fee for 2025

,

In order to implement the Government’s directive under Resolution No. 233/NQ-CP dated December 10, 2024, on supporting individuals and businesses in developing production and business activities, the Government is currently drafting the Draft Decree regulating the reduction of land rental fees for 2025 (“Draft”).

Land rental reduction rate

The Draft proposes a 30% reduction in land rental fees, calculated based on the payable land rental amount for 2025. This reduction will not apply to any outstanding land rental fees from years prior to 2025 or to any late payment interest (if any).

If a land user is concurrently entitled to other land rental reductions and/or is entitled to deduct compensation and site clearance expenses from the payable land rental amount, the 30% reduction will be applied to the land rental amount payable after such other reductions and/or deductions in accordance with legal regulations.

Eligible entities to rent reductions

The Draft proposes that the land rental reduction will apply to lawful land users who are currently leasing land from the State based on a Land Lease Decision, a Land Lease Contract, or a Certificate of Land Use Rights and Ownership of Assets Attached to Land issued by a competent state authority, effective during 2025, under the form of annual land rental payment.

It is notable that the Draft proposes that the reduction will apply even to cases where the land user is not eligible for, or has exhausted the period of, other land rental exemptions or reductions, as well as to cases where the land user is already enjoying other forms of land rental reductions.

Application Dossier, Procedures, and Process

To be entitled to the 30% reduction in the payable land rental amount for 2025, the land user must submit the following documents: 

  1. A written request for the 2025 land rental reduction (using the template attached to the Draft); and
  2. A certified copy of the Decision of land lease or Agreement of land lease or Certificate of land use rights, ownership of assets attached to the land.

Within 30 days from the receipt of a complete and valid application, the competent authority will determine the reduced land rental amount and issue a Decision on land rental reduction in accordance with the laws on land use fees, land rental fees, and tax administration.

With the goal of achieving an 8% economic growth rate in 2025 as set out in Resolution No. 233/NQ-CP, this Draft is expected to ease the financial burden and create more favorable conditions for individuals and businesses to improve their production and business activities, thereby fostering the intended economic growth momentum.

DISCLAIMER

Legal News from Aliat Legal is provided for general informational and reference purposes only and should not be considered a legal opinion nor relied upon in lieu of specific advice. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication. Please contact us for further details on which you have concern.

Main office: 27-31 D7 Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City

Telephone: 19005555338 |  Fax: [+84 28] 3519 4668

Email: contact@aliat.group

Website: www.aliat.group

Golden opportunities for SMEs in stock market

,

Experts warn investors to assess valuation levels against the growth potential of these companies for informed decisions.

The domestic stock market has seen an impressive performance of mid- and small-cap stocks, outperforming the market average.

However, experts warn investors to assess valuation levels against the growth potential of these companies for informed decisions.

Post-Lunar New Year, there has been a notable improvement in market liquidity, with funds spreading across various sectors, leading to an overall increase in stock prices.

The VN-Index has risen for five consecutive weeks, surpassing the significant 1,300-point threshold, a level it struggled to breach throughout 2024.

Average trading value since early February has reached approximately 17.5 trillion VND (684.5 million USD) per session, marking a 36% increase compared to January. In the most recent week, liquidity exceeded 20 trillion VND per session.

However, when compared to the same period last year, February’s liquidity was down by 25%, and year-to-date figures show a 28% decrease.

During this period, mid- and small-cap stocks, particularly in sectors like mining, building materials, construction, rubber and chemicals, have experienced significant price increases.

The market surpassing the 1,300-point threshold, driven by mid- and small-cap stocks, is seen as a positive signal, especially amid global market volatility.

In February, the top ten best-performing stocks were dominated by the mining sector (Yen Bai Industry Mineral JSC, Fecon Mining, Becamex) and financial services sector (Icapital Investment JSC, APG Securities, Ocean Group JSC).

The recent surge in mineral stocks can largely be attributed to escalating trade tensions among major economies, said Lam Gia Khang, Head of Market Strategy at VietinBank Securities.

With China tightening export controls on key raw materials, particularly strategic metals and minerals, supply chain disruptions have driven investors toward these stocks.

However, after a strong rally, investors should be cautious. Despite the price surge, profits after tax in this sector have remained low in recent years, making valuations less attractive and raising the risk of short-term corrections.

Meanwhile, some non-life insurance stocks have been gaining momentum, partly due to a recovery in insurance demand after the crisis of confidence at the end of 2022.

Vietnam’s insurance market still has substantial growth potential. By the end of 2024, the insurance penetration rate (measured by premiums as a percentage of GDP) is expected to range from 2.3% to 2.8%, which is still lower than the ASEAN average of 3.35%, Asia’s 5.37% and the global average of 6.3%.

However, with many insurance stocks rising sharply and even reaching new highs, there is a risk of a market correction, especially as companies face pressure to cover claims from Typhoon Yagi, which struck in early September 2024.

Cautious approach

The stock market is expected to see strong divergence in 2025, creating opportunities for portfolio restructuring and new investments.

According to Khang, investors should focus on mid- and small-cap stocks in sectors benefiting from Government and Central bank policies aimed at achieving at least 8% GDP growth, such as civil construction, infrastructure and public investment.

Stocks like Tradico, which maintained over 110 billion VND in annual net profit (2022–2024) despite industry-wide losses, and PV Coating, which is set to gain from the Block B – O Mon project, are worth considering, he added.

The project could generate over 3.14 billion VND in revenue and 471 billion VND in profit after tax, a significant jump from previous years.

However, Le Duc Khanh, Head of Research at VPS Securities, notes that the recent rally in mid- and small-cap stocks is largely a recovery after prior declines.

For sustained market growth, blue-chip stocks must regain momentum. He expects capital to shift back to these larger stocks.

Bui Van Huy, Head of Investment Research at FIDT, agrees, arguing that large-cap stocks with stable price consolidation offer a more reasonable investment strategy than overheated smaller stocks.

The 2025 market will revolve around economic growth, public investment and market upgrades. Sectors with strong potential include banking, construction, building materials, retail and consumer goods.

Huy expects clearer opportunities in late 2025, as neither global nor Vietnamese markets have undergone significant corrections despite macroeconomic uncertainties. Recommended long-term picks include banking, steel and construction, attractive options if prices adjust, he said./.VNA

Vietnam’s trade surplus hits 1.47 billion USD in first two months

,

The country’s export earnings grew by 8.4%, while its import turnover rose by 15.9%, resulting in a trade surplus of 1.47 billion USD.

Vietnam’s total import-export turnover reached 127.07 billion USD in the first two months of 2025, marking a 12% increase compared to the same period last year, the National Statistics Office (NSO) reported on March 6.

The country’s export earnings grew by 8.4%, while its import turnover rose by 15.9%, resulting in a trade surplus of 1.47 billion USD.

In February alone, the export turnover stood at 31.11 billion USD, down 6.2% from the previous month but up 25.7% year-on-year. The domestic economic sector posted an impressive growth rate of 32.8%, while the foreign-invested sector, including crude oil, increased by 23.2%.

For the first two months of the year, Vietnam’s export turnover reached 64.27 billion USD, an 8.4% year-on-year rise. The domestic sector contributed 17.92 billion USD (up 12.8%), accounting for 27.9% of total exports, while the foreign-invested sector, including crude oil, accounted for 46.35 billion USD (up 6.7%), making up 72.1% of total exports.

During this period, 12 export items surpassed the 1 billion USD mark, making up 77.7% of total export value. Four of these items exceeded 5 billion USD, accounting for 54.6%.

By sector, processed industrial goods remained the dominant export category, generating 57.01 billion USD (88.7% of the total). Agricultural and forestry products contributed 5.35 billion USD (8.3%), seafood reached 1.43 billion USD (2.2%), and fuel and mineral products totaled 0.48 billion USD (0.8%).

On the import side, Vietnam recorded 62.8 billion USD in total import value, an increase of 15.9% year-on-year. The domestic sector accounted for 22.8 billion USD (up 18.7%), while the foreign-invested sector imported 40 billion USD (up 14.4%) worth of goods. Sixteen imported items exceeded 1 billion USD in value, comprising 76.2% of total imports, while two items surpassed the 5 billion USD mark, accounting for 44.5%.

Illustrative image (Photo: VNA)

In terms of import structure, production materials dominated with 58.83 billion USD, accounting for 93.7% of the total value. This included machinery, equipment, tools, and spare parts, which made up 50.8%, while raw materials, fuel, and supplies accounted for 42.9%. Consumer goods imports stood at 3.97 billion USD, representing 6.3%.

The US remained Vietnam’s largest export market, with turnover reaching 19.6 billion USD. Meanwhile, China continued to be the country’s biggest import source, with imports valued at 23.3 billion USD.

Vietnam achieved a trade surplus of 17 billion USD with the US, a 16.3% increase from the previous year, while its surplus with the EU expanded by 19.2% to 6.4 billion USD. Notably, the country’s trade surplus with Japan surged to 0.5 billion USD, nearly 10 times higher than the same period in 2024.

However, Vietnam continued to run trade deficits with several major partners, including China (15.4 billion USD, up 36.9%), the Republic of Korea (4.6 billion USD, up 20.6%), and ASEAN (2.1 billion USD, up 116.8%)./.VNA

 

Vietnam moves to tighten personal data protection, restricting ID photo requests

,

Vietnam’s draft Personal Data Protection Law aims to prohibit social media platforms from requiring ID card photos for account verification, enhancing user privacy and data security.

Social media providers may be prohibited from requiring users to upload ID card photos for account verification. (Illustrative photo)

The Ministry of Public Security has introduced a draft Personal Data Protection Law, which includes significant measures to enhance user privacy.

Notably, Article 31 of the draft law specifies that social media platforms and online communication services (OTT) must safeguard the personal data of Vietnamese citizens when operating in Vietnam or offering their services through mobile app stores targeting the Vietnamese market.

New restrictions on ID verification and data collection

According to the proposal, social media providers will be required to clearly inform users about the personal data they collect when users install and use their services.

These platforms must not collect unauthorized data beyond what is explicitly agreed upon with customers.

A key provision in the draft law states that organizations and individuals providing social media and online communication services will not be allowed to request users to upload photos of their national ID card or passport as a method of account verification.

Additionally, social media platforms must provide users with the option to decline cookie tracking and data sharing. They will be required to offer a “Do Not Track” feature, ensuring that user activity on social media and OTT services is only monitored with explicit consent.

Providers must also issue clear, written notifications regarding the sharing of personal data and implement security measures when using customer data for advertising and marketing purposes.

Protecting user privacy and preventing unauthorized surveillance

The draft law explicitly states that “eavesdropping, unauthorized recording of calls, or reading text messages without the data owner’s consent constitutes a legal violation.”

It further clarifies that personal data used to register social media and OTT service accounts is not considered public information and cannot be processed without user consent.

According to the Ministry of Public Security, personal data protection involves multiple layers, including public awareness, regulatory enforcement, and preventive measures to detect and address violations of data privacy laws.

The introduction of the Personal Data Protection Law aims to enhance Vietnam’s legal framework for safeguarding personal information. It seeks to establish clear regulations, align local data protection standards with international best practices, and promote lawful use of personal data for economic and social development.

The draft law is scheduled to be presented for discussion at the National Assembly’s ninth session and is expected to be passed by the end of the year.

Dinh Hieu

Vietnamese and Kyrgyz Prime Ministers visit Ho Chi Minh’s Stilt House

,

Prime Ministers Pham Minh Chinh and Adylbek Kasymaliev toured the Ho Chi Minh Presidential Site, visiting the Stilt House, fish pond, and sharing Vietnamese coffee in a gesture of friendship and cultural exchange.

On the morning of March 7, as part of the official visit of Prime Minister Adylbek Kasymaliev of Kyrgyzstan, Vietnamese Prime Minister Pham Minh Chinh hosted him for a tour of the Ho Chi Minh Presidential Site in Hanoi.

The two leaders explored the historic Stilt House, where President Ho Chi Minh lived and worked in the final years of his life. Prime Minister Pham Minh Chinh introduced his Kyrgyz counterpart to the historical and cultural significance of the site, emphasizing its role in Vietnam’s revolutionary history.

The Vietnamese Prime Minister provided insights into the modest yet profound lifestyle of President Ho Chi Minh, the revered leader who founded the Communist Party of Vietnam and led the country’s struggle for independence.

Prime Minister Adylbek Kasymaliev expressed his admiration for President Ho Chi Minh’s simple yet influential way of life, noting that his ideas continue to inspire freedom movements and socialist ideals worldwide.

During their visit, the two leaders stopped at the famous fish pond, where they fed the fish – a traditional gesture symbolizing harmony and prosperity.

As a gesture of friendship, Prime Minister Pham Minh Chinh presented Prime Minister Kasymaliev with a model of Ho Chi Minh’s Stilt House, commemorating the visit and strengthening diplomatic ties between the two nations.

After the tour, the two leaders sat before the bronze statue of President Ho Chi Minh in the garden of the Presidential Palace, where they shared a moment over Vietnamese coffee.

Prime Minister Pham Minh Chinh used the occasion to introduce his Kyrgyz counterpart to Vietnam’s vibrant coffee culture, discussing its economic significance and deep cultural roots. He also spoke about Vietnam’s foreign policy principles and its commitment to regional and global peace and cooperation.

The Kyrgyz Prime Minister expressed his appreciation for Vietnam’s hospitality and admiration for its rich history, traditions, and economic development. He also praised the unique taste of Vietnamese coffee, recognizing it as an essential part of the country’s cultural heritage.

The visit concluded with the two leaders reviewing an album of photos documenting Prime Minister Kasymaliev’s activities in Vietnam, symbolizing the continued friendship between Vietnam and Kyrgyzstan.

The Ho Chi Minh Presidential Site is a national historical landmark, preserving the legacy of President Ho Chi Minh, who lived and worked there from 1954 to 1969. The site has been carefully maintained, with its original layout, furniture, and historical artifacts preserved for visitors from around the world.

Among its most iconic landmarks, the Stilt House stands as a symbol of President Ho Chi Minh’s simple lifestyle and deep connection with nature and the people.

 

Prime Ministers Pham Minh Chinh and Adylbek Kasymaliev visit the Ho Chi Minh Presidential Site, exploring the historical landmarks where the revered leader lived and worked.

 

Prime Minister Pham Minh Chinh introduces Prime Minister Adylbek Kasymaliev to the scenic and historically significant surroundings of the Ho Chi Minh Presidential Site.The two leaders tour Ho Chi Minh’s Stilt House, a symbolic site reflecting the simple yet profound lifestyle of Vietnam’s founding leader.

The two leaders tour Ho Chi Minh’s Stilt House, a symbolic site reflecting the simple yet profound lifestyle of Vietnam’s founding leader.

Prime Ministers Pham Minh Chinh and Adylbek Kasymaliev visit Ho Chi Minh’s fish pond, engaging in the traditional act of feeding the fish – a gesture symbolizing peace and prosperity.

As a token of friendship, Prime Minister Pham Minh Chinh presents his Kyrgyz counterpart with a model of Ho Chi Minh’s Stilt House, commemorating the visit.

Why is Japan so interested in Vietnam’s semiconductor workforce?

,

In the context of Japan’s ambition to revive its semiconductor industry, Vietnam’s workforce is seen as a solution to the island country’s thirst for human resources.

At a factory in Japan (photo: YKC)

Japan’s semiconductor industry once thrived from the 1970s to the 1990s.

The production value of semiconductors on Kyushu Island alone, dubbed Japan’s “Silicon Island”, once reached a record high of 1,392.4 billion Yen in 2000.

However, the rise of South Korean manufacturers and cyclical market fluctuations caused the Japanese industry to decline steeply.

Against this backdrop, the Japanese government has launched a strategy to revive the semiconductor industry, aiming to boost total domestic semiconductor revenue from 5,000 billion Yen in 2020 to 15,000 billion Yen by 2030.

This strategy is divided into three phases. In the first phase, Japan will secure an advanced semiconductor manufacturing base to serve AI (artificial intelligence) and IoT (Internet of Things) domestically.

In the second phase, Japan will strengthen ties with the US to research next-generation semiconductor technologies. In the third phase, the country will realize and apply future technologies through global cooperation.

In reality, during the first three years of the strategy, starting in 2021, Japan allocated a budget of up to 4,000 billion Yen to support the development of its semiconductor industry.

These investments have begun showing early positive signs as Japan’s semiconductor industry regains its growth.

The production value of semiconductors on Kyushu Island alone reached 1,153.4 billion Yen in 2023, surpassing the 1,000 billion Yen mark for the first time after 16 years.

It is projected that from 2024 to 2030, the Japanese government’s budget for semiconductor industry development will continue to rise, reaching 10,000 billion Yen.

The thirst for workers 

According to Ataguchi, a representative of the Kyushu Bureau of Economy, Trade, and Industry (under Japan’s Ministry of Economy, Trade, and Industry), with government support, there is currently a wave of investment in the semiconductor industry in Kyushu.

Surveys indicate that in the next 10 years, Japan’s semiconductor hub will attract equipment-related investments worth up to 6,200 billion Yen.

However, the semiconductor industry’s appeal to Japanese students remains low, compounded by the lack of industry information and practical training facilities.

As a result, Japan’s “Silicon Island” is forecast to face a severe shortage of semiconductor talents in the future.

Japan’s Ministry of Economy, Trade, and Industry predicts that from now until 2032, the semiconductor industry in Kyushu alone will lack approximately 1,000 workers annually in both short and medium terms.

The roles facing increasing shortages include machine operators and production engineers, as well as research and development (R&D) staff.

Amid the demand to grow the semiconductor sector, many Japanese companies, organizations, and educational institutions are working to diversify the industry’s workforce.

This is why many Japanese business delegations have visited Vietnam to explore and assess its semiconductor workforce, seeking collaboration opportunities.

Ataguchi stated that Japanese semiconductor companies need workers with a strong knowledge foundation in the fields of electricity, electronics, information technology, machinery, chemistry, materials, finance, and business.

For those in R&D positions, they need to have programming skills, knowledge of material engineering, and other practical skills and experience.

According to Ishikawa Isamu, Japan’s Deputy Ambassador to Vietnam, the semiconductor industry in the Kyushu region is entering a phase of robust growth. This area accounts for over half of Japan’s total integrated circuit production value.

He believes that collaboration in training human resources between Vietnam and Japan would benefit both sides, as Vietnam boasts a high-quality technical workforce, while Japan has a strongly developed semiconductor industry.

In recent years, Vietnam has collaborated with Japan to develop the semiconductor industry ecosystem and enhance enterprise capabilities through partnerships with Japan’s METI, the Japanese Embassy in Vietnam, and the Japan External Trade Organization (JETRO).

Regarding human resources, the National Innovation Center (NIC) has worked with Hiroshima University to identify and send Vietnamese talents to Japan for training in international bachelor’s programs in semiconductors. Collaborations with Japan have been implemented effectively, with substance, and have delivered significant value. In reality, quite a few Vietnamese engineers are currently participating in semiconductor production lines at factories in Japan.

Vu Quoc Huy, Director of the National Innovation Center, Vietnam is currently one of the countries with the fastest-growing digital economy in Southeast Asia.

Vietnam holds a strategic geopolitical position, possesses a youthful and abundant well educated workforce in technology, and has increasingly modern infrastructure investments, attracting more and more major global technology corporations, particularly in the fields of the semiconductor industry and artificial intelligence.

 

Binh Minh