Kenno Vietnam Pulse | May 2025

As Vietnam continues to thrive among Asia’s top destinations for foreign investment, we remain committed to keeping our global audience informed about key developments through the Kenno Vietnam Pulse series.
In May, Vietnam marked a major policy shift to boost private sector growth. Public investment maintained its momentum, supported by revised legislation and more effective State budget allocation since the start of the year. We also observed positive signals from Vietnam–U.S. trade talks, new regulations improving foreign investor access to the equity market, and notable new energy deals worth USD 6 billion.

Macroeconomic Highlights

On May 4, Vietnam's Politburo released Resolution 68, officially recognizing the private sector as a central driver of the economy. The policy sets ambitious targets while also highlighting the need to improve access to capital, enhance regulatory transparency, and accelerate digital transformation. From our perspective, this marks a significant step in shifting Vietnam’s economic model toward innovation and entrepreneurship, reinforcing our conviction in the country’s domestic consumption growth.

Specifically, by 2030, Vietnam aims to:

• Register at least 2 million private businesses (this target rises to 3 million by 2045), driving approximately 60% of the national economy and creating 85% of jobs.
• Establish a stronger foothold in the global supply chain with international participation from more than 20 Vietnamese large enterprises.
• Increase labor productivity by approximately 9% per year and secure its position among the top 5 Asian countries in the high-tech sector. 

Meanwhile, public investment has gained momentum since April, following a stagnant first quarter. Disbursements in the first four months of 2025 rose by 9% year-on-year (YoY), reversing the 11% decline recorded in Q1 and reaching 14% of the annual target. The revised Public Investment Law and Public-Private Partnership Law, both effective since January 2025, have provided a stronger regulatory foundation for projects funded by the State budget. With a 30% YoY increase in this year’s disbursement target, we expect this upward trend to continue in the coming months.

Data: Vietnam Ministry of Finance

Vietnam and the U.S. Advance Trade Talks

During May 19–22, Vietnam and the U.S. conducted their second round of trade negotiations in Washington. Delegates from both sides — Vietnam’s Minister of Industry and Trade Nguyen Hong Dien and U.S. Trade Representative Jamieson Greer — expressed a shared commitment to resolving trade frictions and building a more balanced economic partnership. 

Vietnamese and U.S. trade delegates met in person on May 21.
Photo: Vietnam Government Portal

Ahead of the upcoming official discussions, we’ve also observed notable developments on Vietnam’s side — including the launch of Trump Organization's mega-project in Hung Yen Province, meetings with major U.S. companies such as SpaceX and Google, a nuclear power development deal with Westinghouse Electric, and a recent memorandum of understanding to purchase over USD 2 billion worth of U.S. agricultural products.

Ho Chi Minh City to House New $6B Energy Projects

On May 19, a cross-border consortium led by Vietnam’s KOGI Group, Japan’s Mazda Oil Corporation, and several Middle Eastern investors signed preliminary agreements to deploy USD 6 billion in clean energy infrastructure in Ho Chi Minh City — including plans to develop Southeast Asia’s largest oil refinery and storage facility.

Signing ceremony between Vietnam’s KOGI Group and international partners.
Photo: VnEconomy

The two key projects, including the refinery and a hydrogen-based green manufacturing plant, are expected to handle 25–30 million tons of gasoline and diesel annually. We believe these developments will strengthen Vietnam’s domestic energy capacity, support industrial growth, and elevate the country’s role in Asia’s emerging green economy.

Improved Market Accessibility for Foreign Investors

The State Bank of Vietnam (SBV) has issued a new circular simplifying procedures for foreign investors. Most notably, it removes the requirement for consular legalization of investment documents, allowing notarized or verified copies instead — a change expected to ease administrative burdens and accelerate the process for opening Indirect Investment Accounts (IIACs) and obtaining Securities Trading Codes (STCs).

The SBV’s new circular removes obstacles for a stock market upgrade.
Photo: State Bank of Vietnam

Earlier in May, Vietnam’s new trading platform, KRX, was officially launched. This latest policy follows that milestone, aiming to further eliminate bottlenecks and align the country’s financial infrastructure with international standards. In our view, these targeted reforms are essential steps toward attracting more institutional capital and enhancing overall market quality, and supporting Vietnam’s anticipated upgrade from frontier to emerging market status.

Stay in the know!

And that’s a wrap for this month’s edition of Kenno Vietnam Pulse. We hope you enjoyed reading and found valuable insights into Vietnam’s market landscape. Feel free to subscribe to our monthly newsletter more timely, factual, and actionable updates. If you would like closer look at investment opportunities in Vietnam, we invite you connect with us for more information and tailored advice.

Laura Ranin

Disclaimer:

This document is prepared by Kenno Asset Management Pte. Ltd. ("Kenno"), the investment manager for the Asia Top Picks Fund which is open only to professional investors. This marketing communication does not constitute investment advice. Please refer to Kenno’s official fund documents before making any final investment decision. The information provided in this document is accurate as of the time of writing. Kenno does not guarantee the ongoing accuracy or completeness of this information and is not responsible for updates or changes after publication.