Investments

Investment money is flooding into Southeast Asia, but harnessing the value of this influx is proving more challenging than expected. Many foreign investment projects in the region are primarily tax-avoidance ventures, contributing little in terms of tangible value.

Vice Prime Minister Ho Duc Phoc emphasized the importance of effective state capital management, underscoring the principle that "with capital comes management."

"Upon acquisition and the subsequent handover of the power plant, the Vietnam Electricity Group will take over its operations and management. With a projected annual contribution of approximately 4.6 billion kWh of electricity to the National Power System, the plant is set to play a significant role in meeting the country's energy demands."

The newly merged Ministry, which includes the Vietnam Social Security, will see a reduction of approximately 3,600 administrative units, a significant 37.7% decrease from its current size.

A consensus has emerged among representatives from various ministries and sectors on the need for a specialized mechanism and policy framework to advance the development of urban rail networks in Hanoi and Ho Chi Minh City.

The investigation by the Police Agency has revealed a significant breach by a company that illegally exploited and smuggled rare earth minerals, reaping illicit profits of over 736 billion VND. Furthermore, there has been a lax attitude towards managing exploration, mining, and deep processing licenses for rare earth elements.

As of January 31, 2025, foreign investment in Vietnam soared to a remarkable $4.33 billion. This figure encompasses newly registered capital, adjusted capital, and the value of capital contributions and share purchases by foreign investors. Compared to the same period in the previous year, this represents an impressive surge of 48.6%.

Emphasizing the importance of "displaying prices and selling at those displayed prices," Deputy Prime Minister Ho Duc Phoc cited the story of a bowl of pho costing up to VND 1 million and cases of business licenses being revoked due to violations in selling goods.

Some localities adjusted healthcare service prices according to Circular No. 21/2024/TT-BYT, and there were increases in transportation and food prices due to higher travel and shopping demands during the Tet holiday. These were the main drivers of the 0.98% month-over-month rise in the consumer price index (CPI) for January 2025. Compared to January 2024, the CPI rose by 3.63%, while the core inflation rate for January 2025 increased by 3.07%.

Public investment is seen as the spearhead to boost growth this year, supporting a scenario of declining international trade and affected domestic consumption.