Vietnam, RoK Step Up Financial Cooperation, Expand Capital Flows into VIFC-HCMC

Vietnam and South Korea are strengthening financial cooperation and expanding capital flows into the Vietnam Investment Forum Center (VIFC)-Ho Chi Minh City. Song Chi Young, President of the Korea Federation of Micro Enterprises (KFME), stated that Vietnam's young population, dynamic market, and significant growth potential perfectly align with the strengths that Korean micro-businesses bring in K-brands, technology, and service expertise. Demand for Korean food in Vietnam continues to grow rapidly, fueled by the popularity of the "Korean Wave" or Hallyu, making the country a strategic market in South Korea's plan to expand agricultural and food exports to ASEAN, according to the Ministry of Agriculture, Food and Rural Affairs of South Korea. Resolution 10-NQ/TW marks a significant reset of Vietnam’s foreign investment strategy, introducing broad reforms to create a more unified and effective framework for attracting foreign capital. The resolution calls for a shift in development mindset, positioning FDI as a key driver of growth model transformation, with a focus on quality, value addition, and continuous improvement of the economy's intrinsic capacity and self-reliance. Many experts and businesses believe the policy provides a timely strategic boost, helping Vietnam to capitalize on the ongoing global supply chain realignment. Ho Chi Minh City is currently home to 20,259 FDI projects with a total registered capital of nearly $142 billion from 152 countries and territories. In the first half of 2026, the city attracted over $6.8 billion, fulfilling 62% of its annual target. Enterprises will receive State support covering 50% of interest payments on commercial loans used for technology application, transfer, and innovation projects, capped at 6% per year for up to five years. The campaign is expected to stimulate domestic consumption, boost retail sales, support economic growth, promote Vietnamese brands, and encourage consumers to prioritize locally made products while attracting international visitors via shopping events. The figures recorded in the first half of 2026 just reflected positive short-term results. Long-term success would depend not only on the growth pace but also on the quality and resilience of the economy and the sustainability of growth engines. With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 26,481 VND/USD, and the floor rate 23,959 VND/USD. According to a recent report by BIDV Securities (BSC), these projects span residential and urban developments, airports, expressways, high-speed rail, industrial facilities, and other strategic infrastructure. The advisory board will support research, provide policy advice, and recommend strategic directions for the center’s development, the VIFC-HCMC Executive Board said. Under the plan, Hanoi aims to maintain annual gross regional domestic product (GRDP) growth of 11% during 2026–2035 and 2036–2045, before easing to 5% during 2046–2065 and 4.5% during 2066–2085. The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – HoSE: HDB) has successfully raised $721 million in an international syndicated loan from international financial institutions in the form of a Social Loan. Around the world, investors are increasingly choosing locations based not only on costs and logistics, but also on renewable energy, carbon performance, circular economy solutions, and ESG standards, experts said. Vietnamese Ambassador to Brazil Bui Van Nghi informed that two-way trade reached $4.22 billion in the first six months of 2026, up 16.8% year-on-year. Brazil's exports to Vietnam exceeded $2 billion, rising 16.6%, while its imports from Vietnam totalled about $2.11 billion, an increase of 17%. The restored Kunming–Nha Trang route is expected to cater to growing travel demand and facilitate tourism, trade, and cultural exchanges between Vietnam and China. Among the 218 economies assessed this year, Vietnam was one of only six to be upgraded to a higher income category by the WB Group. The move marks a notable milestone after 17 years in the lower-middle-income group, where Vietnam had remained since 2009. For Vietnam, the challenge is not simply adopting new technologies but ensuring that supply chains are sustainable and capable of generating long-term value. The company sold 172,299 motorcycles in June, up 4.7% from the same month last year, highlighting steady consumer demand even as the market gradually shifts towards greener transport options. For the first six months of 2026, motorcycle sales reached 515,743 units, up 0.6% year-on-year. Developed under a strategic cooperation agreement between the Vietnamese and Japanese governments, the nearly 1,000-hectare industrial park is expected to become the city's first eco-industrial park under the country's new regulatory framework. A key target is that by 2030, all concentrated agricultural, forestry, and fisheries production areas will have access to essential services, including product traceability, quarantine, testing, quality certification, processing, and market development. The move reflects growing international demand for stricter food safety, quality, and traceability standards, which have become increasingly important for agricultural exports. Copyright, VietnamPlus, Vietnam News Agency (VNA) Editor-in-chief, Mr. Tran Tien Duan.