AGP Executive Report

Hanoi’s macro pulse: Vietnam’s Q2 GDP rose 8.39% YoY and H1 hit 8.18%, with industry and construction leading and exports still expanding fast. Banking liquidity push: The Ministry of Finance and the State Bank of Vietnam are studying ways to boost banking liquidity, including raising the share of time deposits from the State Treasury at commercial banks, to support the 2026 double-digit growth target. Trade & legal integration: Vietnam and EFTA have wrapped up negotiations for a comprehensive free trade agreement, covering goods/services, rules of origin, investment, IP, procurement and sustainable development. Tourism momentum: Vietnam welcomed 12.3 million international visitors in H1 (+14.9%); authorities also keep expanding connectivity, including a new Ho Chi Minh City–Phuket direct route. Public service & remembrance: Prime Minister Le Minh Hung reaffirmed the drive to recover all fallen soldiers’ remains as a new search-and-recovery operation begins in Ho Chi Minh City. Governance in practice: Authorities are studying measures to increase liquidity in the banking system as Vietnam’s growth outlook stays strong. Regional security signals: Vietnam, Laos strengthen defence cooperation. Supply-chain risk: A report warns illegal timber from Cambodia and Laos is still finding ways into Vietnam’s supply chains.

Vietnam–Laos Defence Ties: Vietnam and Laos are set to deepen defence cooperation at the 3rd Vietnam–Laos Border Defence Friendship Exchange (July 9–10), underscoring political and strategic trust along the border. Hanoi Urban Governance: Hanoi is pushing a multi-centred, multi-layered urban structure and a sci-tech hub agenda, with local planning aimed at reshaping how the capital grows. Digital & Legal Oversight: Vietnam’s new e-commerce law and implementation decree take effect, alongside moves to strengthen digital governance and identity systems—signals of tighter rules for online markets. Economy & Investment Momentum: Vietnam’s realised FDI is reported at a five-year high in the first half, while tourism and new business formation continue to rise, pointing to sustained demand for capital and services. International Humanitarian Response: Vietnamese search-and-rescue teams continue operations in Venezuela after the earthquakes, including further body recoveries and support for international rescuers. Regional Anti-Corruption Measurement: Bhutan hosts talks on measuring anti-corruption effectiveness, focusing on how integrity agencies should be assessed beyond enforcement counts. Media & Public Trust: A debate on media independence highlights the need to separate news from opinion—an issue resonating across governance systems.

US 250th Independence Day: President Donald Trump marked America’s 250th with a National Mall speech after storms forced a two-hour evacuation, blending veteran tributes (including Vietnam-era Special Forces leadership) with campaign-style messaging—pushing the SAVE America Act, spotlighting the Second Amendment, and reviving “communism” attacks ahead of November. Hanoi-Linked Tech Policy: Vietnam’s Government is accelerating “strategic technology products,” with Deputy Minister Bui Hoang Phuong saying early commercial results could start in 2026, as the Prime Minister urges faster sci-tech breakthroughs and digital transformation. Hanoi-Regional Governance & Industry: Vietnam Airlines plans to launch its first dedicated cargo aircraft in Q3 2026 and build logistics capacity around Long Thanh and Gia Binh, aiming to expand an integrated air cargo ecosystem. Disaster Response Diplomacy: Vietnam’s 124-member rescue contingent in Venezuela was publicly thanked by Venezuelan leaders, with its search-and-rescue dog unit receiving a Medal of Merit for earthquake operations. International Legal Cooperation: Vietnam’s charge d’affaires to Timor-Leste discussed strengthening legal affairs, judicial reform, digital transformation, and support for Vietnamese investment via bilateral and ASEAN channels.

Venezuela Earthquake Response: Acting President Delcy Rodríguez honored international rescue brigades and K9 teams from 18 countries, including Vietnam, with “Heroes of Venezuela” medals for June 24 quake relief, praising their rapid deployment and technical support. Vietnam Economy Watch: Vietnam’s Q2 GDP growth accelerated to 8.39% year-on-year, beating forecasts as manufacturing and construction held up despite import disruptions and higher fuel costs. Currency & Markets: The U.S. dollar slid for the week after softer U.S. jobs data cooled expectations for a near-term Fed rate hike, easing pressure on regional FX sentiment. Hanoi Governance & Policy Signals: Vietnam’s new e-commerce law and implementation decree are moving into effect, while officials review rollout details—another step in tightening rules for the digital marketplace. Public Safety & Compliance: A New Zealand tenancy advisory urged better landlord vetting after police seized cannabis grow operations tied to organized crime, highlighting legal and financial risks for property owners. Regional Mobility: Vietnam welcomed 12.3 million international arrivals in H1, up nearly 15%, reinforcing tourism’s role in growth.

Hanoi–Vietnam Governance & Business Climate: Vietnam’s new business ethics and corporate culture framework (Decision 1157/QĐ-TTg) sets rules for integrity, corporate governance, and social responsibility for enterprises and relevant state agencies, aiming to align local practice with international standards. FDI Strategy Reset: Resolution 10 shifts Vietnam from chasing more foreign investment to prioritizing higher-quality FDI that brings advanced technology, innovation, and stronger links with domestic firms. Local Competitiveness Reform: The PCI 2025 update moves away from province-by-province rankings toward grouping by governance performance, reflecting post-administrative restructuring realities. Industrial Policy Focus: A forum in HCM City highlights strengthening supporting industries as the backbone for localisation and deeper supply-chain integration. Digital & Automation Push: Vietnam’s automation conference (VAA, July 16–18) spotlights AI, robotics, and industrial automation, while separate coverage flags Vietnam’s ongoing digital governance upgrades. International Ties & Solidarity: Vietnam’s rescue teams continue operations in Venezuela after earthquakes, with officials praising technical capacity and canine support.

Vietnam Economy Watch: Vietnam’s Q2 GDP grew 8.39% year-on-year, with industry and construction leading (10.51%) and services also rising (7.87%), while agriculture expanded 4.06%, according to the General Statistics Office. Trade & Legal Pressure: The U.S. USTR is set to hold July 7–9 public hearings under Section 301 on forced-labour import restrictions, with India scheduled to testify on July 8 and submissions including Vietnam. Hanoi Governance & Security: Vietnam’s public security push continues as reports highlight expanded use of Article 331 and broader enforcement actions tied to dissent and online activity. Regional Diplomacy: Vietnam’s external ties remain active, including moves to deepen cooperation with partners such as Ghana and broader ASEAN-linked digital payment links. Veterans & Public Memory: Vietnam-linked veteran recognition and memorial activities continue to surface alongside international coverage of how societies honor wartime service.

Vietnam Growth Watch: Vietnam’s Q2 GDP accelerated to 8.39% y/y as manufacturing and construction stayed strong, while the trade deficit widened on higher imported fuel costs tied to the Iran war. Inflation & Prices: June CPI fell 0.39% m/m as cheaper fuel eased pressure, but inflation remains above last year, keeping policymakers focused on price stability. Governance & Digital Delivery: A French newswire review says Vietnam’s digital transformation is moving from planning to results, citing wider 5G coverage, fiber connections to communes/wards, and rollout of digital identity and online public services. Hanoi Development Finance: MUFG is partnering with the Hanoi Department of Finance on the capital’s 100-year master plan, signaling continued push to turn long-term visions into investable projects. Trade & Logistics Infrastructure: PSA Vietnam and Lach Huyen International Logistics & Industrial Park will jointly develop four deep-sea container berths at Lach Huyen Port, targeting 4.5m TEU capacity and strengthening northern gateway logistics. EV Policy Reality Check: Vietnam’s EV market is expanding fast, but officials face the next bottleneck: scaling the charging and support ecosystem.

Vietnam E-commerce Reshuffle: Sendo will shut down its online grocery platform Sendo Farm on July 10 as it restructures and refunds unused memberships and wallet balances, after earlier retreat from Vietnam’s broader e-commerce push. Digital Payments Push: Visa says it is expanding tools that let small merchants use smartphones to accept payments and send payouts, aiming to cut friction for microsellers in emerging markets. Regional Security Messaging: China’s foreign ministry criticized Japan’s “free and open Indo-Pacific” pitch as divisive, urging stability and UN Charter-based order in the Asia-Pacific. Hanoi-Linked Governance Angle: Vietnam’s push to tighten digital governance and identity systems continues alongside new rules affecting foreign media and e-commerce compliance. Catholic Vietnam Milestone: A papal envoy led the first beatification mass for Vietnamese priest Francis Xavier Truong Buu Diep in Ca Mau, drawing tens of thousands and underscoring warming Vatican ties. Hanoi Political Journal Watch: Vietnam’s ongoing governance reforms and legal tightening sit alongside major social and economic policy shifts, from digital rules to market restructuring.

Population & Family Policy: Vietnam is rolling out a “baby bonus” package one year after scrapping the two-child limit, extending second-child maternity leave to seven months and adding prenatal/newborn support plus one-off cash aid of up to about $228 for eligible mothers. Regulatory & Governance Reform: A major July 1, 2026 legal package took effect, with new rules spanning e-commerce, cybersecurity, tax administration, customs enforcement, and broader compliance obligations for investors and firms. Hanoi Urban Transformation: Hanoi’s major infrastructure and land clearance push is accelerating along key corridors near Red River areas, signaling a shift toward new transport links and redevelopment to ease congestion in the capital. Capital Markets & Banking: UOB Vietnam broke ground on a roughly $450m headquarters in Ho Chi Minh City’s VIFC, while Dien May Xanh completed an IPO raising over $500m—both underscoring continued capital-market momentum. Regional Economic Positioning: The World Bank upgraded Vietnam (and the Philippines) to upper-middle-income status, citing export-led growth and economy-wide gains. International Church Diplomacy: A Vatican papal envoy presided over Vietnam’s first beatification rite on Vietnamese soil, highlighting warming ties between Hanoi and the Holy See.

Hanoi–Korea Cooperation: The 7th Korea–Vietnam Future Forum in Hanoi adopted the “Hanoi Message 2026,” shifting cooperation toward co-creation in semiconductors, AI and critical minerals amid intensifying U.S.–China rivalry. Regional Security: Cambodia, Laos and Vietnam agreed to push a trilateral border-security and anti–online-scam liaison mechanism to speed information sharing and coordinate legal steps. Vietnam’s Law & Governance: Twenty-nine laws took effect July 1, including the 2026 Capital Law and updates spanning e-commerce, cybersecurity, digital transformation, press rules and citizen complaint handling. Population Policy: Vietnam rolled out incentives after scrapping the two-child limit, extending maternity leave for second births and adding prenatal and newborn support plus one-off cash bonuses as the country accelerates ageing. Hanoi Development & Investment: Hanoi moved to implement a century-long development vision with new investment priorities and more opportunities to attract high-quality Japanese capital. International Aid & Diplomacy: Vietnam’s military and police continued earthquake search-and-rescue in Venezuela’s La Guaira and delivered humanitarian aid, reinforcing friendship ties.

Vietnam’s PM specialized research unit: Hanoi approved a new specialized research unit under the Prime Minister, set to start operations July 1, tasked with advising on policies, mechanisms and government plans. Hanoi’s AI surveillance push: Hanoi plans to roll out 2,460 more AI surveillance cameras, extending the city’s digital governance footprint. Social media crackdown: Vietnam will fine people 20–30 million VND for sharing fake or defamatory content online, with higher penalties for content that distorts history, undermines unity, or incites discrimination. Public security cooperation: Vietnam’s Minister of Public Security met Cambodia’s acting head of state in Phnom Penh, reinforcing trilateral efforts with Laos and Cambodia to curb online scams and cross-border crime. Digital government tech: Viettel AI received a US patent for facial recognition that can match masked faces, aimed at access control and workforce tracking. International solidarity: Vietnam delivered nearly 4 tons of humanitarian aid to earthquake-hit Venezuela, including food bars, medicines, tents and generators. Hanoi investment pipeline: Hanoi announced 276 priority investment projects under its 100-year development vision, signaling a push to convert planning into tangible delivery.

Social Media Crackdown: Vietnam will fine people 20–30 million VND for sharing fake or defamatory posts and graphic violent content, with 30–50 million VND penalties for content that distorts history, undermines unity, insults religions, or spreads panic—starting under new rules. Hanoi Investment Push: Hanoi held a major conference under its century-long development vision, approving in-principle projects, issuing investment licences, and signing dozens of MoUs, with a shift toward higher-quality FDI in semiconductors, AI, biotech, logistics, green finance, fintech, and specialised healthcare. Foreign-Invested Sector Guidance: A Politburo conference in Hanoi on Resolution No. 10-NQ/TW focused on implementing the Party’s plan for developing the foreign-invested economy, drawing massive participation across levels. Venezuela Earthquake Response: Vietnam’s 124-member rescue team joined quake relief efforts in Venezuela as authorities plan temporary camps and housing for thousands of affected families. Energy Security Debate: Coverage highlights how the Iran war is pushing Asian states to diversify energy supplies, including renewed coal use, even as climate goals face pressure. Tech & Business Links: FPT announced SAP Silver Partner status, signaling continued expansion of enterprise digital services.

Vietnam–Cambodia Humanitarian Work: Cambodia repatriated the remains of 19 Vietnamese volunteer soldiers to Vietnam, underscoring continued joint excavation under a bilateral humanitarian agreement. Rights & Law Enforcement: Vietnam’s expanded use of Article 331 is being flagged as a broader crackdown on dissent, with peaceful complaints increasingly treated as state-interest violations. Strategic Tech Policy: Vietnam is moving to build quantum and cybersecurity capacity by adding them to its 10 strategic technology groups, aiming for stronger research and self-reliance. Regional Environment: Mekong countries are stepping up cross-border action against transboundary haze as hotter weather and El Niño raise risks of forest and peatland fires. Hanoi Investment & Finance: Hanoi announced 276 priority investment projects and partnered with five banks to raise up to nearly $8 billion via bond issuance, signaling a push to turn planning into funding. International Legal Standing: Vietnam’s presence at ITLOS is highlighted as a message for rule-of-law and international legal engagement. Food Security Debate: A policy discussion argues long-term food security needs a whole-of-society approach, not just government control, especially when markets fail.

Hanoi–UOB FDI Push: Hanoi and UOB Vietnam signed an MoU to steer higher-quality foreign investment into priority sectors like high-tech, digitalisation, green growth, semiconductors, finance, and infrastructure, while also backing Vietnamese firms to plug into global supply chains and expand regionally. Venezuela Earthquake Response: Vietnam Airlines operated a special flight carrying 124 defence and public security personnel, rescue dogs, and about 25 tonnes of relief gear to support earthquake-hit areas, underscoring Hanoi’s growing disaster-response footprint. Hanoi Cultural Diplomacy: A China–ASEAN travelling art exhibition opened in Hanoi, featuring more than 90 works and highlighting shared cultural ties—another soft-power channel for regional engagement. Governance & Rule of Law: A rights group warns Vietnam is ramping up arrests under broad laws to crush dissent, raising fresh concerns about legal safeguards. International Legal Milestone: Vietnam’s first-ever judge at ITLOS is noted as a milestone for the country’s international standing and legal expertise. Hanoi Tourism Showcase: The Hanoi Lotus Festival 2026 drew around 300,000 visitors, with organisers linking heritage preservation to tourism development. Digital Economy Angle: A new VPS 2.0 model was launched by Vietnamese professionals and students in the US, aiming to deepen Vietnam–US cooperation in science, high-tech, and the digital economy.

Housing & Market Transparency: Vietnam’s Ministry of Construction says a national housing and real estate market information system will go live on July 1, giving every property a permanent unique identification code to track legal status and transaction history, aiming to curb speculation and improve State management. Regional Security Diplomacy: South Korea and Japan reaffirmed their commitment to denuclearize the Korean Peninsula and deepen defense cooperation, despite North Korea’s vow to expand its nuclear arsenal. Tourism Cooperation: Malaysia and Vietnam agreed to boost tourism ties, focusing on medical and halal tourism and stronger joint promotion and industry links. Maritime Law Enforcement Coordination: ReCAAP ISC and the Philippine Coast Guard held a senior officers’ meeting in Manila with Vietnam among focal points to strengthen cooperation against piracy, sea robbery, and improve incident reporting and prosecution. Vietnam-Linked International Mobility: Chinese dissident Dong Guangping, detained after fleeing China to South Korea by dinghy, has arrived in Canada, renewing attention on cross-border asylum and human rights cases. Hanoi-Relevant Civic Memory: Ho Chi Minh City held a community walk marking the 50th anniversary of Saigon–Gia Dinh being named after President Ho Chi Minh on July 2, 1976.

Hanoi-Vietnam Spotlight: Vietnam’s President and Communist Party chief To Lam delivered a keynote at Singapore’s Shangri-La Dialogue, underscoring Hanoi’s security diplomacy as regional powers compete. International Law & Cooperation: Seoul launched an International Capital Police Council (ICPC) with capital-city police agencies including Vietnam, aiming to speed up action against transnational crimes and share lists of overseas fugitives. Regional Trade Architecture: CPTPP members agreed to move ahead with Costa Rica accession and accelerate Uruguay, while starting preparatory talks with the Philippines, Indonesia and the UAE—with Vietnam already inside the bloc. Digital Economy & Governance: Vietnam and Singapore pushed tech cooperation through the Vietnam–Singapore Tech Connect Forum 2026, focusing on innovation ecosystems and policy support for digital growth. Public Services & Social Policy: Vietnam is preparing a rental housing policy package for submission to the National Assembly in October, as Hanoi and HCMC expand urban development and welfare-linked housing measures. Culture & Heritage: Hai Phong is preserving and promoting Tram Gian Pagoda’s nearly 900 woodblocks through heritage education and community outreach. Tourism & Mobility: Da Nang’s DIFF 2026 continued with a “Vision”-themed night featuring fireworks teams from Australia and Portugal, as Vietnam’s tourism demand and digital promotion efforts keep rising.