Vietnam Pursues Multifaceted Approach for Economic Growth and Enhanced International Cooperation

Vietnam is pursuing a multifaceted strategy to achieve sustained economic growth and strengthen its international cooperation. The promotion of Free Trade Agreements (FTAs) demonstrates the country's commitment to an open, transparent, and rules-based international trading system, sending a clear message that dialogue and economic connectivity are the most effective means of promoting growth, creating jobs, and generating prosperity. Key to this approach is the improvement of the investment climate. Efforts to enhance trade and investment promotion activities with countries like Israel aim to inform Israeli businesses about Vietnam's investment landscape and advantages, thereby expanding bilateral trade ties, attracting foreign investment into priority sectors, and promoting Vietnamese goods to Israeli consumers. The expanded public-private partnership model, where airlines, businesses, and domestic and international organizations contribute resources for transportation, accommodation, destination surveys, and professional activities, is also a significant feature. The development of clean energy is also being accelerated. The simultaneous development of four wind power projects in Ha Tinh province marks a new step in the region's clean energy strategy. Once operational, these projects are expected to handle approximately 274 million tonnes of cargo annually, generate about $12.57 billion in industrial output, and create some 267,400 jobs. In its export industries, wood and wooden products have long been a major foreign-currency earner, with exports nearing $17.3 billion in 2025. Vietnam's success in meeting the stringent standards of markets such as the US, the European Union, and Japan underscores its position as a vital processing hub in the global supply chain. The quality of foreign direct investment (FDI) is also improving. In the first seven months of 2026, Vietnam attracted over $38 billion in registered FDI, up nearly 58% year-on-year. This increase was driven by large-scale, high-tech projects, signaling an improvement in the quality of capital inflows. Funding is expanding for SMEs, women-led businesses, and projects in green transformation, energy transition, renewable energy, green transport, high-tech agriculture, and financial inclusion. In the agricultural sector, the acceleration of mechanization is expected to improve production efficiency, reduce reliance on manual labor, minimize post-harvest losses, and enhance product quality. This is an inevitable trend for rice-producing countries like Vietnam to strengthen the competitiveness of their agricultural sector. Regarding currency policy, the trading band for the Vietnamese Dong (VND) against the US Dollar is set at +/- 5%, with the ceiling rate for commercial banks at 26,736 VND/USD and the floor rate at 24,190 VND/USD. Connectivity in international payment systems is also advancing. 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, aiming to establish a comprehensive cross-border payment ecosystem between the two countries. Under its one-party system, Vietnam's economic policies are driven by strong government leadership. While maintaining economic ties with China, the country is also working to diversify its supply chains and strengthen relationships with other key markets to manage geopolitical risks.