Minister of Finance Nguyen Van Thang

Speaking at the meeting, Minister Thang said Vietnam’s ambition to achieve double-digit growth over the current term faced mounting external headwinds, with global conditions evolving rapidly and largely in an unfavourable direction.

Despite this, he noted that the government remained firmly committed to its growth targets, calling for coordinated policy action and stronger contributions from across the system, particularly from state-owned enterprises (SOEs).

The minister instructed state corporations and groups to reassess their 2026 business targets within the first quarter and adjust plans where necessary to aim for double-digit growth.

A key priority, he noted, was the role of SOEs in advancing sci-tech. Echoing directives from senior leadership, Thang stressed that state firms must act as pioneers in developing and deploying strategic technologies and products.

“If Vietnam is to achieve sustainable, long-term double-digit growth, it cannot continue to rely on capital or land. Science, technology and innovation must be the core drivers,” he said, adding that firms should seize unprecedented policy incentives and investment support currently being rolled out.

At the same time, greater autonomy granted to SOEs under the new legal framework must go hand in hand with stricter accountability. Thang highlighted the need for a “commercial mindset,” urging business leaders to rigorously assess both financial and socioeconomic returns before approving investment projects.

“We must carefully evaluate project efficiency before making decisions,” he said.

According to a report presented by Vu Hong Phuong, director general of the Department for State-Owned Enterprise Development, SOEs maintained positive momentum in the first quarter despite global uncertainties.

In 2025, total consolidated revenue reached VND1.6 quadrillion ($64 billion), exceeding the annual plan by 7.4 per cent, while pre-tax profit rose to $4.6 billion, surpassing targets by 19 per cent.

This momentum continued into early 2026, with first-quarter revenue estimated at $16.3 billion, equivalent to 23 per cent of the full-year plan and up 9 per cent on-year. Pre-tax profit is projected at about $655 million, while budget contributions are estimated at $1.3 billion.

Notably, no enterprise in the portfolio reported losses, supporting the preservation and growth of state capital. Strong gains were seen in energy, aviation and telecommunications.

However, the report also highlighted mounting pressures from geopolitical tensions in the Middle East, which have driven up fuel prices and input costs.

Major firms such as Vietnam National Petroleum Group, Vinachem, and Vietnam Electricity are facing rising import costs and supply challenges.

Institutional delays remain another concern. Delays in issuing guidance for the new Law No.68/2025/QH15 have created uncertainty for businesses, while obstacles in accessing investment capital, land procedures and divestment processes continue to slow major projects.

To support the 2026 growth target, authorities are urging SOEs to update business scenarios and accelerate the development of five-year strategies aligned with national policy frameworks.

One key initiative expected in the second quarter is a proposal to establish and operate a national investment fund, based on restructuring State Capital Investment Corporation.

At the same time, agencies are calling for a comprehensive review of ongoing investment projects, particularly large-scale and strategic ones, to resolve obstructions and accelerate implementation.

For delayed or underperforming projects, clear accountability must be assigned and decisive measures taken to avoid inefficiencies and losses of state capital.

“All investment decisions must be based on thorough analysis, with clear assessments of both economic and social returns,” Phuong said.

PM urges SOEs to pioneer digital shift Prime Minister Pham Minh Chinh chaired a conference on April 15 in Hanoi with leaders of state-owned groups and corporations under the theme ‘State-owned Enterprises Leading Digital Transformation and Driving Growth’.

Draft law to boost SOE autonomy through decentralisation reforms The draft Law on Management and Investment of State Capital in Enterprises includes amendments to increase decentralisation and delegation, with a focus on enhancing the autonomy, accountability, and transparency of state-owned enterprises (SOEs).

PM promotes role of entrepreneurs in the era of transformation Prime Minister Pham Minh Chinh chaired a meeting on October 9 with top national business representatives on the occasion of Vietnamese Entrepreneurs’ Day (October 13).

According to Dragon Capital, February’s data suggests Vietnam’s growth momentum remains intact despite seasonal distortions around the Lunar New Year. Industrial activity and business sentiment continued to strengthen, while inflation remains contained, preserving policy flexibility. However, global markets, including Vietnam, have since experienced a sharp increase in volatility following the escalation of the Iran conflict in early March, shifting near-term investor sentiment even as Vietnam’s underlying macro trajectory remains on track.

Industrial activity remained a key pillar of growth. The Index of Industrial Production (IIP) rose 1 per cent on-year in February, bringing year-to-date (YTD) growth to 10.4 per cent on-year, led by manufacturing and processing at 11.5 per cent.

Business sentiment also strengthened, with the Purchasing Managers’ Index rising to 54.5 and business confidence reaching a 41-month-high, signalling that firms are seeing sustained demand and may be preparing for further expansion. Inflation remained well contained, with the consumer price index averaging 2.9 per cent on-year for the first two months, preserving policy flexibility and supporting stable financial conditions.

Domestic demand also remained firm. Retail sales and services revenue increased 7.9 per cent on-year in the first two months, with February alone rising 8.5 per cent on-year. Seasonal spending during the Lunar New Year holiday supported activity in apparel, accommodation, food services, and travel, underpinning the continued recovery of services and steady household consumption.

Investment and external activity continued to support growth. Total trade turnover reached $155.7 billion YTD, up 22.2 per cent on-year, with exports rising 18.3 per cent on-year to $76.36 billion. Import demand also remained firm, reflecting continued purchases of intermediate goods and production inputs as industrial activity expanded, which suggests manufacturers remain confident in near-term order flow.

Realised foreign direct investment disbursement reached $3.21 billion YTD, up 8.8 per cent on-year, with manufacturing continuing to attract the majority of foreign capital. Fiscal dynamics remained supportive, with state budget revenue reaching approximately $22.9 billion in the first two months of 2026, up 13.1 per cent on-year, helping preserve room for continued growth supportive spending.

Equity markets were relatively stable during the shorter trading month. With only 15 trading sessions due to the holidays, the VN-Index recorded a gain of 2.4 per cent on-month in USD terms. Liquidity eased slightly to $1.2 billion around the holiday period but remained healthy relative to historical averages, supported primarily by domestic participation.

Foreign investor activity was mixed, although intermittent net-buying sessions continued to appear. Investor attention remained focused on companies linked to industrial expansion and structural policy themes, while state-owned enterprises continued to attract interest following the government’s reform agenda under Resolution 79. That pattern suggests investors are still rewarding areas of the market most closely tied to cyclical recovery and policy execution.

Dragon Capital noted that February’s data reinforces the resilience and breadth of Vietnam’s growth trajectory. Manufacturing remains the anchor of expansion, while services activity, consumption, and investment flows continue to strengthen.

If industrial momentum persists and inflation remains contained, policy conditions should remain supportive, allowing the equity market’s focus to shift increasingly towards earnings delivery and the gradual return of foreign investor participation. That said, the escalation of tensions in the Middle East introduces external risks and potential volatility, particularly through energy prices, global risk sentiment, and FX pressures.

Middle East tensions set to test VN-Index, boost energy stocks Escalating Middle East tensions are rattling global energy markets, but analysts say several stock groups could outperform even as broader indices face short-term volatility.

US-Iran conflict affecting asset prices In light of the US – Iran conflict, gold and the US dollar are emerging as short-term safe havens, while cryptocurrencies and stocks are seen as carrying higher risk, according to securities firm VnDirect.

Iran war to modestly impact Vietnam The US-Iran war is expected to have a modest impact on Vietnam, but a sharp rise in global oil prices could lift inflation and weigh on growth if tensions persist, according to VinaCapital.

Against this backdrop, many transport companies are reassessing their vehicle investment strategies, focusing on reducing operating costs and stabilising business performance. They will invariably choose the vehicle brand that offers the best quality, most affordable price, and most fuel efficiency.

Kim Long Motor’s bus production and assembly line

Among new options, electric buses, particularly interprovincial sleeper buses, are emerging as the best alternative.

Fuel costs: a major challenge for transport companies

Fuel accounts for a large share of operating costs for passenger transport companies. For long-distance North-South or inter-regional routes, a sleeper bus typically operates at high intensity, averaging about 800 km per day.

For diesel-powered vehicles, fuel consumption is commonly around 24 litres per 100 km. With diesel priced at roughly VND30,830 ($1.19) per litre, the fuel cost is about 28 US cents per km.

As a result, fuel expenses alone can reach nearly $231 per day for a bus travelling 800 km. In light of sustained high oil prices due to geopolitical tensions and the global energy market, fuel expenses can rise sharply, placing significant pressure on transportation companies’ business efficiency.

More companies have paid attention to new vehicle solutions with more stable and cost-efficient operating expenses.

Kim Long Motor is realising its dream of bringing Vietnamese-branded cars with a localisation rate of at least 70-80 per cent to international markets.

Electric buses and operating cost advantage

Electric sleeper bus models developed by Kim Long Motor are capturing attention. According to technical specifications, this company’s 34-seat electric sleeper bus is equipped with battery pack capacity reaching 357 kWh.

The bus can travel approximately 401 km with a 90 per cent charge. Its average power consumption is as low as 0.8 kWh per km. With electricity prices around 6.23 US cents per kWh, the energy cost is as low as 4.98 US cents per km.

Electric buses could save about 23.5 US cents per km compared with diesel vehicles, which cost around 28.5 US cents per km. If a bus runs 800 km per day, the energy cost savings could reach nearly $189 daily. Over six years of operation, the total savings from avoiding diesel fuel could surpass $408,000 per vehicle.

This figure is significantly higher than the difference in initial investment costs between electric vehicles (EVs) at $204,000) per vehicle and diesel vehicles at $142,000 per vehicle. Still, it demonstrates the long-term economic advantages of EVs in long-distance transport.

Apart from energy costs, EVs also have clear advantages in maintenance. Unlike internal combustion engines with complex mechanical structures, electric motors have fewer moving parts and do not require fuel systems or exhaust treatment systems. This significantly reduces maintenance costs over the vehicle’s lifetime. According to estimates from many transportation companies, the maintenance cost is only about 5 per cent of the EV’s value, while the figure for diesel-powered vehicles can be as high as 20 per cent. This difference also contributes to reducing operating costs for businesses in the long term.

Kim Long Motor is developing next-generation electric buses and passenger vehicles to serve rising demand. The company is investing in a large-scale car manufacturing and assembly industrial park in Hue with many component factories and supporting facilities. One of the notable initiatives is the motor engine manufacturing plant by Kim Long Motor in collaboration with Yuchai Group, one of the world’s largest engine manufacturers.

The Yuchai motor engine manufacturing plant in Hue has a total investment of around $260 million. With an automation rate of up to 90 per cent, the plant adopts many advanced manufacturing technologies.

In its initial phase, the plant has a capacity of more than 40,000 engines annually, serving commercial vehicles such as buses, trucks, and various industrial equipment. Mastering engine manufacturing technology marks an important step of Kim Long Motor’s journey, contributing to increasing localisation rates and strengthening the domestic car industry.

Yuchai engines: a fuel-saving solution

With the rollout of thousands of vehicles after one year, customers have widely recognized Kim Long Motor as the most fuel-efficient vehicle brand in Vietnam when compared with other vehicles in the same segment. Kim Long Motor is stepping up its production for domestic and export markets.

Kim Long Motor’s passenger buses are equipped with Yuchai S07 and Yuchai K11 engines, manufactured in Vietnam according to the technical standards of Yuchai Group.

In particular, the Yuchai K11 engine delivers up to 410 horsepower. It is designed for high-end sleeper buses, ensuring strong and stable performance on long-distance routes.

According to the company, these engines can help save approximately 4-7 litres of fuel per 100 km compared to many engines in the same segment from other manufacturers. With an operating intensity of about 800 km per day, the savings reach about 32-56 litres of fuel per day, equivalent to $37 – $65 per vehicle per day.

Over a year of operation, the total savings could reach $13,500 – $23,800, significantly improving transport companies’ business efficiency.

Kim Long Motor electric buses serving passengers in Ho Chi Minh City

The shift towards environmentally friendly vehicles is accelerating worldwide. In passenger transport, many countries are encouraging the replacement of fossil-fuel vehicles with EVs to reduce emissions and improve energy efficiency.

In Vietnam, this trend is also gradually taking shape, particularly in the bus and passenger transport sectors. Domestic companies such as Kim Long Motor are investing heavily in research and production of EVs while building a complete manufacturing ecosystem – from engines and components to batteries and powertrain systems – with the goal of achieving over 90 per cent localisation in the near future at highly competitive prices for the domestic market.

Looking ahead, as battery technology continues to improve and charging infrastructure expands, EVs are expected to become an increasingly common choice for the transport industry.

For many transport companies, the shift to EVs is not only a technological upgrade but also a long-term economic decision amid increasingly volatile energy costs.

Vietnam masters core technologies of automobile value chain Vietnam is moving beyond assembly to mastering core technologies following the inauguration of Kim Long Engine Manufacturing and Assembly Plant at Chan May-Lang Co Economic Zone in Hue on December 5. Nguyen Si Dung, former Vice Chairman of the National Assembly Office, provided insights into the potential impact of the facility to advance Vietnam’s industries.

Kim Long Motor and BYD Battery start electric vehicle battery plant in Hue On January 27, Kim Long Motor, in collaboration with BYD Battery, held the groundbreaking ceremony for the BYD battery manufacturing plant at Kim Long’s manufacturing and assembly industrial park, with a total investment of $130 million.

Kim Long Motor and AOJ Suzhou enter strategic partnership Kim Long Motor and AOJ Suzhou signed a strategic cooperation agreement in Ho Chi Minh City on February 14.

Speaking at the ceremony, Sayaka Arai, general director of Honda Vietnam, expressed her appreciation of government authorities, partners, customers, and employees who have supported the company’s journey over the past three decades.

“Today marks a meaningful milestone, and I would like to express our sincere gratitude to the government of Vietnam, local authorities, our valued dealers, suppliers, media agencies, customers, and associates who have accompanied us throughout three decades,” Arai said. “Your trust and support have been the driving force behind our growth.”

Established in 1996, Honda Vietnam has invested approximately $627 million in the Vietnamese market. Over the past three decades, the company has grown into a comprehensive mobility provider with more than 10,000 employees, while creating jobs across its supporting industries, nationwide dealer network, and supply chain.

According to Arai, Honda Vietnam has steadily strengthened its production capacity, expanded its nationwide distribution network, and increased exports to international markets, contributing to the development of Vietnam’s automotive and motorcycle industries as well as the broader economy.

Honda Vietnam has delivered more than 40 million motorcycles to customers across the country over the past 30 years, making it one of the most trusted mobility brands in Vietnam. The company currently operates three motorcycle manufacturing plants with a combined annual production capacity of 2.75 million units, with localisation rates exceeding 96 per cent.

Honda’s motorcycle portfolio in Vietnam has expanded to cover a wide range of segments, from cub and scooter models to manual transmission motorcycles and EVs. The company has also introduced advanced technologies such as anti-lock braking systems, smart keys, the fuel-efficient eSP+ four-valve engine, and Honda RoadSync connectivity to enhance safety and convenience.

As part of its green mobility strategy, Honda Vietnam has introduced several electric motorcycle models. From 2026, Honda motorcycles sold in Vietnam are expected to comply with Euro 4 emission standards, supporting the transition to environmentally friendly mobility.

To mark the company’s 30^th anniversary, Honda Vietnam also launched a special edition of the Air Blade 125 in collaboration with MARVEL. Inspired by the iconic characters Spider-Man and Venom, the limited edition—restricted to 4,000 units nationwide—combines distinctive design elements with the model’s well-known performance.

In addition to its motorcycle business, Honda Vietnam has steadily expanded its presence in the car market since entering the segment in 2006. The company’s car factory in Vietnam currently operates with a production capacity of 35,000 units per year.

Key models such as the CR-V and City are assembled locally, delivering Honda’s core values of sporty design, fuel-efficient performance, advanced technologies, and high safety standards.

In line with Honda Motor’s global electrification strategy, Honda Vietnam has expanded its hybrid vehicle lineup. Notably, the CR-V e:HEV became the first hybrid vehicle assembled in Vietnam in 2026, marking a significant milestone in the company’s sustainable mobility journey.

Advanced technologies such as the Honda Sensing driver-assistance system, the Honda Hybrid system, and Honda Connect digital services have also been integrated into Honda vehicles to enhance safety, connectivity, and convenience for drivers.

Looking ahead, Honda Vietnam aims to strengthen its core products by improving quality, efficiency, and environmental performance across its technologies, while advancing electrification through electric motorcycles and hybrid vehicles.

“Guided by this balanced and responsible approach and strengthened by our close partnership with the government and relevant stakeholders, we will contribute to Vietnam’s sustainable development goals while delivering reliable mobility solutions aligned with the country’s development pathway and market conditions,” Arai said

Beyond its business operations, Honda Vietnam continues to promote social initiatives, particularly in road safety education and environmental protection.

Each year, the company collaborates with government authorities and partners to provide traffic safety training to more than 27 million people across different age groups. Since 2018, Honda Vietnam has also worked with authorities to donate helmets and provide safety training for all first-grade students nationwide, with more than 12 million helmets distributed so far.

In 2025, the company cooperated with the Traffic Police Division to pilot moped training programmes for more than 8,700 high school students and nearly 2,000 traffic police officers. These instructors are expected to expand the programme to more than 3.1 million students nationwide.

As part of its 30th anniversary initiatives, Honda Vietnam also donated 408 ICON e: electric motorcycles to high schools across the country to support standardised training vehicles for traffic safety education.

Looking forward, Honda Vietnam said it would continue placing customers at the centre of its strategy while contributing to Vietnam’s sustainable development.

“We aspire to create lasting value for our customers and for Vietnam,” Arai said, adding that the company hopes to continue receiving support and cooperation from partners and stakeholders in the years ahead.

Authorities issued a cautionary notice to help export-import and logistics businesses stay prepared amid evolving global developments. Photo: Le Toan

Official Dispatch No. 229/XNK-TLH, dated March 1, 2026, states that on February 28 marked a serious escalation of tensions in the Middle East and created “serious instability” and posed high risks to transportation activities, international trade and global supply chains.

The agency warned that prices of consumer goods, fuel, and global oil are forecast to rise, generating “indirect and multi-dimensional negative impacts” on Vietnam’s production and export-import activities, as well as on trade with the Middle East.

For logistics services, rising fuel costs are expected to push up sea freight and air cargo rates, particularly on routes connecting Vietnam with countries in the region.

According to the dispatch, several Middle Eastern countries have restricted or closed their airspace due to security concerns, forcing passenger and cargo flights to reroute, prolonging flight times and increasing logistics costs.

Maritime transport has also been significantly affected, as shipping through the Strait of Hormuz has nearly stalled following airstrikes. Iran has warned that passage through the strait is currently unsafe, compelling shipping lines to avoid the area or alter routes, thereby extending transit times and raising fuel expenses.

“Before the above situation, the Agency of Foreign Trade requests export-import industry associations and logistics associations to closely monitor developments,” it said.

Associations are asked to regularly coordinate with relevant state management authorities to provide updates to member enterprises, enabling them to adjust production plans, export-import arrangements, and transport operations.

The agency emphasised the need to “avoid disruptions and minimise negative impacts” from the conflict, while improving flexibility and resilience against fluctuations in the international business environment.

In addition, associations and enterprises are urged to “regularly and proactively analyse and coordinate information” with ministries and relevant agencies regarding trade data, domestic policy changes affecting business operations, cargo flows, freight rates, and surcharges, to prepare appropriate response scenarios for similar situations in the future.

They are also advised to develop preventive and adaptive plans to mitigate risks, losses, and disruptions in international trade and transport activities, and to prepare timely response measures to limit impacts on supply chains.

The dispatch further encourages frequent engagement with relevant MoIT units, including trade promotion and overseas trade offices, to identify new orders and potential markets, thereby formulating alternative or prioritised exploitation plans to “maximise opportunities”.

The agency said that close coordination among associations, enterprises, and authorities would be essential to strengthening resilience and safeguarding Vietnam’s export-import activities amid growing geopolitical uncertainty.