Vietnam Highlights AI Regulation, Economic Growth, and China Payment Linkage

Vietnam has been recognized as one of the few economies outside the European Union (EU) to have adopted a comprehensive Artificial Intelligence (AI) regulatory framework as early as 2025, according to a World Bank report. The country aims to ensure safe and transparent AI governance by implementing a risk-tiered approach similar to the EU AI Act, imposing different obligations based on whether an AI system poses "unacceptable," "high," "low," or "minimal" risks. Economically, Ho Chi Minh City maintains its competitive edge in office fit-out costs within the region, with an average cost of $1,150 USD per square metre for medium-quality corporate offices, significantly lower by 26% compared to the regional average of $1,550 USD per sq.m. This indicates Vietnam remains an attractive investment destination. In the financial sector, Vietnam's top 10 banks are focusing on building market infrastructure. Notably, NAPAS, Weixin Pay, and BIDV are studying the rollout of a reverse payment service, enabling users of Vietnamese banking applications and e-wallets to make QR code payments in China. This initiative aims to establish a comprehensive cross-border payment ecosystem between the two countries. In terms of trade, Vietnam's total import-export turnover reached $659.58 billion USD in the first seven months of 2026, a year-on-year increase of 28.1%. Exports were valued at $319.53 billion USD, up 21.7%, while imports rose 34.8% to $340.05 billion USD. Agro-forestry-aquatic product exports reached nearly $42.8 billion USD during the same period, achieving almost 60% of the annual target. Foreign direct investment (FDI) attracted over $38 billion USD in the first seven months of 2026, a nearly 58% increase year-on-year. This growth was driven by large-scale, high-tech projects rather than a surge in new investments, signaling an improvement in the quality of capital inflows. Notably, the northern province of Quang Ninh attracted over $1.095 billion USD in FDI during January-July, significantly exceeding its full-year target. The manufacturing and engineering sectors posted the strongest recruitment growth, with hiring demand surging 70% year-on-year, driven by production expansion, supply chain restructuring, and sustained investment inflows in high-tech manufacturing. LG Group has expanded its advanced materials production in Vietnam by launching a new production line in the northern port city of Hai Phong. On the infrastructure front, Terminal 1 of the Da Nang International Airport has been overloaded since its inauguration in 2011, but a new planned area is expected to meet demand in the coming years. The renovation of approximately 2,500 old apartment blocks and collective housing complexes built before 1994, mainly in Hanoi and Ho Chi Minh City, remains a challenge. In the energy sector, Petrovietnam Refining and Petrochemical Corporation (BSR), under Petrovietnam, has begun construction of an additional crude oil storage tank to increase the refinery's crude oil storage capacity by 12.5%. Through its AI regulations, economic growth, and strengthened economic ties with neighboring countries, Vietnam is enhancing its presence on the international stage. Source: VietnamPlus English