As the global economic landscape becomes increasingly volatile, businesses face rising pressures to recalibrate their strategic focus. Optimism must be backed by resilience that is rooted in nimble operations, adaptable corporate structures, and regional connectivity.

At the closed-door dialogue ‘Vietnam Business Outlook 2025: Strategic Readiness in a Fragmented World’, co-hosted by UOB Vietnam and EuroCham on July 4, Lim Dyi Chang, country head of commercial banking at UOB Vietnam, underscored the structural tensions underlying Vietnam’s business sentiment and strategic preparedness.

Referencing the UOB Business Outlook Study 2025 (Vietnam), Lim noted a significant divergence that while 80 per cent of Vietnamese firms expressed optimism at the start of 2025, sentiment dropped sharply to 48 per cent following the announcement of US tariffs. This indicates a persistent gap between perceived opportunity and actual strategic preparedness.

“Optimism may serve as a starting point,” said Lim. “But it is readiness that determines whether a business can thrive amid volatility.”

At the event, Lim also shared key insights from the UOB Business Outlook Study 2025, highlighting five critical pillars that businesses must focus on to strengthen operational readiness amid growing uncertainties.

From optimism to adaptability: Confidence must translate into response capability.

From broad-based digitalisation to outcome-driven execution: Further digital investments should be more specific outcome-driven, not checklist-based.

From ESG compliance to sustainable advantage: Environmental, social, and governance (ESG) efforts must serve as a driver of long-term value, beyond regulatory obligations.

From domestic supply chains to regional trade connectivity: Supply chains must evolve from domestic optimisation to regional integration, tapping into intra-ASEAN trade flows to enhance resilience and responsiveness.

From market expansion to strategic endurance: Expansion strategies must capture clear intentions to withstand market volatility.

“These are not merely observations,” Lim emphasised. “They are pivot points for business strategy. Whether domestically focused or FDI-backed, firms must reassess their priorities at these inflection points.”

During the in-depth dialogue, business leaders shared practical experiences aligned with the five strategic pillars highlighted in the UOB Business Outlook Study.

In addition to internal efforts and government support, the discussion underscored the growing need for financial partners with strategic advisory capabilities, those able to help enterprises effectively implement their growth ambitions.

According to the fresh study, 89 per cent of Vietnamese businesses plan to expand overseas, the highest rate in ASEAN.

Yet, most still lack fully integrated operating models to support sustainable international expansion. This highlights the critical need for partners that can enable businesses to translate intent into action.

“At UOB, we are committed to supporting Vietnamese enterprises on their long-term growth journey through practical, purpose-driven solutions,” said Lim.

Along with this, UOB focuses on helping businesses drive sustainable transformation through green financing and ESG-aligned solutions; optimise operations and investments via an integrated digital ecosystem; and strengthen working capital and liquidity through financial supply chain management solutions.

The bank also plays a part in unlocking regional opportunities through UOB’s ASEAN network and dedicated FDI advisory capabilities.

“The survey results are just the beginning,” Lim concluded, citing that “What matters more is the ability to translate insights into concrete actions. In a volatile landscape, businesses that are agile and prepared will be best positioned to gain a long-term strategic advantage.”

The main research for the UOB Business Outlook Study was conducted in January, surveying around 4,200 businesses across ASEAN and Greater China, including 532 from Vietnam. Following the announcement of US tariffs, a follow-up dipstick survey was conducted from April 9-12 with approximately 800 businesses. To access the full UOB Business Outlook Study 2025 – Vietnam Market Report, please visit: https://www.uobgroup.com/asean-insights/articles/uob-business-outlook-study-2025-vietnam.page

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On June 27, Mobifone, Techcombank, and One Mount Group jointly contributed to establish a payment company with a capital of VND300 billion ($12 million), using the Mobifone brand name.

Its main business lines include payment intermediary services such as financial switching services; international financial switching; electronic clearing; electronic payment gateway; and collection and payment support.

The joint venture was established just a few days before Decree No.94/2025/ND-CP on the controlled pilot mechanism in the banking sector took effect from July 1. The decree allows three controlled pilots of fintech models: peer-to-peer (P2P) lending, credit scoring, and data sharing via open APIs.

Pham Tien Dung, Deputy Governor of State Bank of Vietnam, said, “During the implementation, we will continue to review and update new products, services and business models in the banking sector to evaluate and propose expanding solutions eligible to participate in the testing mechanism.”

Shopee and Lazada are also expected to apply for a licence for the P2P lending pilot over a two-year period.

Technology expert Tien Hoang said that Decree 94 is considered as one of the key tasks in the implementation of the recently issued strategic resolutions on sci-tech, international integration, legal reform, and private economic development. With this enforcement, the banking sector will attract more players.

“More foreign-invested enterprises are making investment in new business models in Vietnam. Besides the banking sector, they are interested in areas such as low-orbit satellite technology, AI, and others,” he added.

In the latest development, American space tech company SpaceX, the owner of the Starlink system, is completing procedures to establish a foreign-invested business in Vietnam.

“After completing the business registration, SpaceX can apply for a licence to provide low-orbit satellite services,” Nguyen Anh Cuong, deputy general director of the Vietnam Telecommunications Authority said. “SpaceX will be allowed to test satellite technology in Vietnam within a five-year pilot phase, ending no later than January 2031.”

He added that SpaceX could also establish a fully foreign-owned enterprise in Vietnam thanks to newly introduced legislation on the matter. It allows for a controlled pilot of telecommunications services using low-orbit satellite tech, while not limiting the ownership ratio of foreign investors, deemed an important step in attracting global technology corporations.

In late 2024, SpaceX announced its plan to offer Starlink satellite Internet telecommunications services with a planned investment of $1.5 billion in Vietnam. In April 2025, during his visit to the United States, Deputy Prime Minister Ho Duc Phoc presented the pilot decision to this group.

Following this trend, on June 10, Qualcomm opened a new AI research and development centre in Vietnam. It is set to play a key role in developing cutting-edge generative AI and agentic AI solutions, with applications spanning smartphones, personal computers, extended reality, automotive technology, and more.

Thieu Phuong Nam, country director of Qualcomm Vietnam, Cambodia and Laos, said, “Qualcomm’s activities in Vietnam align with the country’s national strategies on AI, semiconductors, and digital transformation, with a focus on technology transfer, ecosystem development, and capacity building.”

Vietnam aims to rank among the top three countries in Southeast Asia for AI research and development by 2030. Towards such ambition.

Following rules set in February, donations from enterprises for scientific research, tech development, and innovative activities, and expenses allocated for such areas within enterprises are deductible when determining the income subject to corporate income tax. Incomes from salaries and remuneration from carrying out state budget-funded sci-tech tasks are exempt from personal income tax.

Meanwhile, the Ministry of Science and Technology launched a science and technology exchange on June 30, with the aim to boost technology transactions, and improve productivity and efficiency.

Moreover, several new laws on science and technology are paving the way for the market to grow. In late June, the National Assembly passed the Law on Digital Technology Industry, becoming the first country in the world to promulgate a separate law on the industry; the Law on Science, Technology and Innovation; and the amended Law on Technical Standards and Regulations.

The Law on Digital Technology Industry, which took effect from July 1, marks the first time the concepts of digital assets and crypto are legally recognised in Vietnam, complete with detailed provisions on the rights and obligations of related parties and business conditions.

Also for the first time, the semiconductor industry is now positioned and legalised in the legal system. This is the basis for promoting the development of the semiconductor industry, an important industry that plays a role and impacts many sectors in today’s digital age.

Technology expert Le Net noted, “The regulations will enable Tether, a blockchain-enabled platform that facilitates the use of fiat currencies digitally, and Exness Investment Bank, as well as Intel, Samsung, and others, to make new steps in the country. They have been waiting for this moment for a long time.”

Fintech sandbox era underway in Vietnam, illustration photo/ Source: freepik.com

Nguyen Khac Lich, director Department of IT Industry Ministry of Science and Technology

The Law on Digital Technology Industry marks a strategic step forward, gradually turning Vietnam into a global digital tech centre. To make it a key economic driver, the law provides outstanding incentives for key projects in digital tech, semiconductors, AI, and data centres.

For example, projects with capital of $240 million or more enjoy a tax rate of 5 per cent for 37 years, tax exemption for six years, 50 per cent tax reduction for the next 13 years, and land rent exemption for up to 22 years and 75 per cent reduction for the remaining years.

Enterprises also receive financial support from the budget and the Development Investment Fund. Concentrated digital technology zones and innovative startup projects enjoy similar incentives to those in extremely disadvantaged areas, creating a strong driving force for digital tech enterprises.

Foreign-invested enterprises are encouraged to transfer technology, cooperate with such enterprises here to improve production capacity and global competitiveness.

The law focuses on developing personnel with policies to support training, provide scholarships, preferential credit for learners, and build online teaching platforms. High-quality human resources in the industry are exempted from personal income tax for five years, granted five-year visas for foreign experts, along with a competitive salary and bonus mechanism.

The law also aims to build a strong business ecosystem, with the goal of having 150,000 such businesses by 2035. The ecosystem is built with cooperation among large, small, and supporting enterprises. Digital infrastructure such as AI data centres and 5G networks are prioritised for investment, with the participation of both the state and private enterprises.

Notably, under the law, the semiconductor industry is legalised with a strategy to develop specialised chips, linking the global supply chain; while creating the first legal framework for AI, and shaping the legal status of digital assets and related management.

According to the June 2025 Ericsson Mobility Report, 5G momentum is growing. It is forecast that nearly one-third of all mobile users, or about 2.9 billion people, are expected to be on 5G by the end of the year.

In Southeast Asia and Oceania, 5G subscriptions are forecast to reach around 630 million in 2030, contributing around 49 per cent of total mobile subscriptions in the region by then. 5G networks handled 35 per cent of global mobile traffic by the end of 2024, with forecasters expecting the figure to top 80 per cent by the end of the decade.

Vietnam is steadily advancing, having launched services in October 2024, with three service providers now providing 5G.

Rita Mokbel

“From 5G to the digital economy, technology is driving the next wave of growth in Vietnam. Communication service providers are rallying to provide nationwide 4G/5G coverage in Vietnam,” said head of Ericsson Vietnam Rita Mokbel.

“There are numerous existing and futuristic 5G use-cases that can potentially bring a paradigm shift across enterprises, helping them become more efficient, future-ready as well as sustainable. The possibilities that 5G can create for enterprises will not only put them on a fast track to meet the demands of the new world but, more importantly, contribute to the socioeconomic development of Vietnam,” she added.

Recent advancements in 5G standalone networks, coupled with the progress in 5G enabled devices, have led to an ecosystem which is poised to unlock transformative opportunities for connected creativity.

“To fully realise the potential of 5G, it is essential to continue deploying standalone 5G and to further build out mid-band sites. Such capabilities serve as a catalyst for driving new business growth opportunities” noted Mokbel.

Enhanced deployment of will provide an even stronger foundation for adoption and drive new use cases for both enterprises and consumers.

Now, the impact of AI and generative AI is on the increase. As GenAI devices proliferate and AI apps become increasingly complex, both application service providers and communication service providers will need to focus more on uplink capabilities and latency.

The Ericsson Mobility Report talks about ongoing 5G device innovation with GenAI in smartphones expanding beyond high-end models, AI-powered smart glasses gaining utility through audio interaction, and increased adoption of differentiated connectivity for new consumer and enterprise applications.

The global mobile AI app market is growing robustly, with 115 million app downloads in December 2024 alone, marking an impressive 81 per cent on-year increase. The App Store and Google Play now offer over 29,000 mobile AI apps, of which, 14,000 were released in 2024

GenAI content today is predominantly produced by AI-apps based on interactive voice and text chats. This is expected to evolve with the advent of increasingly capable GenAI smartphones, new XR devices, and the proliferation of bandwidth-intensive new media formats in the forthcoming years.

This could significantly impact future mobile network traffic volumes and characteristics, particularly through increased video consumption and changing uplink requirements.

The report added that as GenAI continues its rapid integration into everyday applications, not all GenAI-powered experiences will have a meaningful impact on network traffic.

“While nearly all future apps, from productivity tools to creative platforms, will incorporate GenAI in some form either on the device or in the cloud, only a subset will drive mobile traffic growth: namely, those that enjoy a wide-scale adoption and require access to the cloud or content at high data rates,” it said.

Significant network impact will stem from applications that are both data-intensive and widely adopted, including video-based AI assistants that use real-time video feeds for interaction; and immersive gaming or gamified environments powered by sophisticated GenAI-driven characters and environments.

These categories stand out as potential drivers of net-new traffic, particularly when experienced through AR devices with always-on assistants, the report noted. Their data intensity comes from content rendering as well as from continuous AI inference and environment interaction, creating persistent uplink and downlink demands.

These new high-rate, high-adoption applications are likely to define the next wave of traffic drivers and subsequently impact spectrum requirements, network planning, investment, and ecosystem alignment, according to Ericsson.

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Vietnam’s exciting journey towards a connected future The past year was a landmark one for Vietnam as the country launched 5G in keeping with its digital transformation agenda. The recent launch serves to fulfil the government’s vision of leveraging science, technology, and innovation to drive the digital transformation of the country, and it will create the next wave of inclusive and sustainable socioeconomic development for the country.

How would you assess the country’s recent economic performance in the context of current global challenges?

According to data released by the National Statistics Department under the Ministry of Finance, second-quarter (Q2) GDP expanded by 7.96 per cent, bringing the first-half growth to 7.52 per cent. Both figures are closely aligned with the growth scenario outlined in Resolution No.154/NQ-CP on key tasks and solutions to implement the country’s socioeconomic development plan and the state budget estimate with the growth target of 8 per cent and beyond in 2025.

In my view, this is a very positive performance. The GDP growth rates for both Q2 and the first six months are relatively high compared to recent years. In fact, the first-half growth in 2025 is among the highest recorded in nearly two decades. In a regional context, this pace of growth is likely the highest in ASEAN and ranks among the top globally.

Moreover, we must consider these growth results against the backdrop of the global economic landscape. When we began drafting the 2025 socioeconomic development plan at the end of last year, we already anticipated significant challenges and external uncertainties. However, the difficulties we’re now facing have proven to be even more substantial, arriving rapidly and unpredictably.

Since the beginning of Q2, new developments have continued to emerge – the armed conflict in Ukraine, tensions between Israel and Iran, frictions between Thailand and Cambodia, and the United States’ shifting tariff policies.

All of these have created a volatile global investment and business environment, and have weakened the growth outlook of many economies.

Amid such turbulence, Vietnam has persisted with coordinated and effective policy measures, showing strong determination to drive the economy towards the 8 per cent growth target this year. The result so far is a relatively strong and encouraging.

Beyond GDP, several other macroeconomic indicators are also trending positively. For example, credit growth has improved; state budget revenue in the first six months reached 67.7 per cent of full-year target, up 28.3 per cent on-year. Industrial production, import-export activity, domestic consumption, and public investment disbursement have all shown solid progress. Together, these factors are creating momentum for achieving the 8 per cent growth target and broader socioeconomic goals for 2025.

What are the key challenges and opportunities you see for sustaining strong economic growth in the second half of the year?

Although the economy has recorded inspiring results in the first half of the year, we must acknowledge that achieving the 2025 growth target remains a significant challenge. To reach an annual growth rate of over 8 per cent, the economy must expand by approximately 8.4 to 8.5 per cent in the second half – a steep requirement, especially given the continued global headwinds that could affect Vietnam’s economy and society.

Geopolitical conflicts remain complex and unresolved. The US tariff issue is still in flux. Although the US has postponed the tariff implementation date to August 1, and Vietnam has reached some positive agreements with Washington, we must wait for the final outcome before accurately assessing the impact on our economy.

Vietnamese exports are still facing considerable risks. Meanwhile, although domestic consumption is improving, it has yet to show a breakthrough. Private investment is gradually recovering but remains unstable. New growth drivers such as science and technology, digital transformation, financial centres, and free trade zones are still in the early stages and require time to yield tangible results.

Despite these challenges, I believe Vietnam’s economy holds strong potential to accelerate growth through key levers: boosting public investment, stimulating consumption and tourism, increasing contributions from high-tech and digital sectors, advancing the green transition, and capitalising on the ongoing shift of global capital flows into emerging markets.

Since the new two-tier local government model took effect on July 1, how will the policy of assigning growth targets to localities be implemented moving forward?

Indeed, a new approach was introduced this year, with the government assigning regional GDP targets to each locality. In response, local authorities have shown strong commitment and determination, implementing tasks and measures to drive growth.

The results are promising: in Q2, 41 pre-merger localities saw higher growth than in Q1. Over the first six months, 30 localities achieved GDP growth rates above 8 per cent, with several exceeding 10 per cent. Most key economic zones met or surpassed the 8 per cent threshold.

To ensure the effectiveness of this policy following the administrative restructuring, the Ministry of Finance had proposed, and was subsequently assigned by the Prime Minister, to lead efforts in coordination with localities to revise Resolution No.25/NQ-CP, setting the regional GDP growth targets for the 34 newly merged localities in 2025. We are actively working to fulfill this important task.

As of July 1, the consolidation of administrative units from 63 to 34 provinces and centrally run cities, coupled with the implementation of a two-tier local government model, represents a historic and strategic shift.

It opens vast opportunities for more robust national and regional economic development. This reform is not only expected to help Vietnam meet or exceed the 8 per cent growth target this year, but also lay the groundwork for double-digit growth in the years ahead.

What are the most critical policy priorities right now to both sustain growth this year and lay the groundwork for long-term development?

We have repeatedly emphasised a broad set of priorities – from revitalising traditional growth drivers and fostering new engines of growth, to institutional reforms, easing barriers for production and business activities, improving the investment climate, and maintaining macroeconomic stability. The key now lies in resolute, coordinated, and effective implementation of these measures, including medium- and long-term strategies.

In the immediate term, we must remain focused on tariff negotiations with the United States, which will have a significant impact. Equally important is the need to closely monitor international and regional developments to ensure timely and appropriate policy responses.

Domestically, we must keep a close watch on the functioning of the newly established two-tier local government model, as well as the implementation of decentralisation and delegation of authority. It is critical to promptly address any administrative bottlenecks, ensuring there are no disruptions to investment procedures or business operations.

In my view, these are the key solutions we need to act on – not just to drive economic growth this year, but also to build a strong foundation for Vietnam’s development in the years ahead.

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