1. China Vows Stronger Ties with Vietnam Ahead of Top Leader’s State Visit

On April 14th, 2025, Chinese President Xi Jinping embarked on a state visit to Vietnam, marking 75 years of strategic cooperation between the two countries. This visit aimed to strengthen bilateral ties amidst escalating trade tensions between China and the United States. The meeting resulted in the signing of approximately 45 cooperation agreements spanning various sectors such as supply chains, artificial intelligence, agriculture, railway development and more.

China’s State Visit to Vietnam

Source: Dan Tri Newspaper

2. Central Committee Reviews Proposal to Merge Provinces and Eliminate District-Level Administration in April

After three days (April 10–12), the 11th Plenary Session of the 13th Central Committee of the Communist Party concluded, during which a major proposal was initiated to restructure Vietnam’s administrative framework. This ambitious plan centers on merging provinces, eliminating district-level governance, and transitioning to a more streamlined two-tier local government system. Key components of the proposal include:

– Reducing the number of provinces from 63 to 34.

– Removing all district-level administrative units.

– Organizing local governance into approximately 5,000 commune and ward-level units, representing a projected reduction of 60–70% compared to the current number of commune and ward level divisions.

The proposal is expected to take effect starting July 1, 2025, following the enactment of the revised 2013 Constitution and the amended 2025 Law on Organization of Local Government. If implemented, the reform could significantly simplify the country’s administrative system, reduce public sector overhead, improve governance efficiency, and enhance Vietnam’s overall investment climate.

Proposal to Merge Provinces and Eliminate District-Level Governance Submitted to the Central Committee

Source: Dan Tri Newspaper

3. World Bank Expresses Interest in Infrastructure Development in Vietnam

On April 18, 2025, Minister of Construction Tran Hong Minh met with Ms. Mariam Sherman, Country Director of the World Bank for Vietnam, Laos, and Cambodia. During the meeting, Ms. Sherman emphasized the World Bank’s strong interest in supporting Vietnam’s infrastructure development, particularly in the transportation sector. Notably, the World Bank has deployed a team of experienced experts to Vietnam to accelerate cooperation on key projects. These include the Mekong Regional Connectivity and Climate Resilience Project, which involves upgrading three major national highways: Route 53, Route 62, and Route 91B. In addition, Ms. Sherman expressed a desire to further discuss the roadmap for establishing a National Railway Operations Center and to advance the progress of ongoing transportation-related collaboration between the World Bank and the Vietnamese government. To this point, the World Bank has committed approximately 25 billion USD in loans to Vietnam, supporting more than 170 projects across a wide range of sectors, including transportation, agriculture, irrigation and rural development, education and training, energy, and many more.

Minister of Construction Welcomes World Bank Country Director

Source: Ministry of Construction of Vietnam

4. Swedish Firm SYRE Plans to Invest 1 billion USD in Textile Recycling Complex in Binh Dinh

On April 23, 2025, Prime Minister Pham Minh Chinh met with Susanna Campbell, Chairwoman of SYRE Group (a subsidiary of H&M Group and Vargas), and Johan Ndisi, the Swedish Ambassador in Vietnam. During the meeting, SYRE announced its plan to invest approximately 1 billion USD in a polyester textile recycling complex in Binh Dinh province. The proposed facility will have a designed capacity of up to 250,000 tons per year and is expected to begin operations by the end of 2028. The project aims to position Vietnam as the world’s first global hub for high-tech, circular textile production, meeting the US and EU sustainability standards. This investment aligns with Vietnam’s long-term development strategy and its commitment to establishing a circular economy by 2030.

Vietnamese Prime Minister Meets with Chairwoman of SYRE Group

Source: VnEconomy

5. Vietnam Ambitious as One of Southeast Asia’s Largest High-Tech Data Centers

On April 23rd, 2024, the Military Industry and Telecoms Group (Viettel) held a groundbreaking ceremony for its High-Tech Data Center and R&D Complex at Tan Phu Trung Industrial Park, Cu Chi District, Ho Chi Minh City. The complex will cover nearly 4 hectares, with a planned total power capacity of up to 140 MW and the ability to house approximately 10,000 server racks. Phase 1 of the project is expected to be operational by Q1 2026, with full completion targeted before 2030. This data center is set to become one of the largest in Southeast Asia and the first large-scale data center in Vietnam.

Vietnam’s First Large-Scale Data Center

Source: Daibieunhandan

6. Qualcomm Plans to Establish Major AI R&D Facility in Vietnam

During a high-level meeting on April 16, 2025, between Deputy Prime Minister Nguyen Chi Dung and the Senior Vice President of Qualcomm — one of the world’s leading telecommunications and mobile technology corporations, with a market capitalization of approximately 154 billion USD — the company expressed strong interest in building a large AI research and development center in Vietnam. If finished, this would become Qualcomm’s third-largest R&D center globally, following its existing facilities in India and Ireland. In addition, Qualcomm is planning to acquire MovianAI, a subsidiary of Vingroup, further underlining its commitment to AI development and talent incubation in Vietnam.

Deputy Prime Minister Meets with Qualcomm Senior Vice President – April 16

Source: VnEconomy

7. Vietnam’s Textile Exports to Japan Hit 1 billion USD in Q1 2025 — Leading All Export Categories

According to the General Department of Customs, as of Q1 2025, Vietnam’s export value to Japan reached 6.4 billion USD, marking a 13% year-over-year increase. Imports also showed positive momentum, totaling USD 5.8 billion—up 4% from 2023. Overall, the total bilateral trade turnover between Vietnam and Japan hit USD 12.2 billion in Q1 2025, reflecting an 8% increase compared to the same period last year and a 23% rise compared to five years ago.

On the export front, Vietnam shipped 39 major product categories to Japan. Textiles and garments remained the top export item, with a value of USD 1.1 billion and a 12% YoY increase making it the only product category to surpass the USD 1 billion threshold during the period.

Vietnam’s Export Value to Japan by Product Types in Q1 2025

Unit: Billion USD

Source: Department of Vietnam Customs

In terms of imports, Vietnam also sourced 39 major product groups from Japan. Notably, two categories exceeded USD 1 billion in value: computers, electronic products, and components (USD 2 billion), and machinery, equipment, tools, and spare parts (USD 1.2 billion).

8. Japan Eagers to Implement 20 billion USD Worth of Energy Transition Projects Across Vietnam

Following the official welcome ceremony on the morning of April 28 at the Government Headquarters, Politburo Member and Prime Minister Pham Minh Chinh held talks with Japanese Prime Minister Ishiba Shigeru to enhance cooperation across several key sectors, including digital economy development, semiconductors, quantum technology, nuclear energy, information technology, artificial intelligence, green transition, and energy transition.

Official Cooperation Exchange Between Vietnam and Japan’s Government Ministries

Source: Lao Dong Newspaper

Notably, Vietnam expressed a strong desire for Japan to continue supporting the community of 70 Vietnamese enterprises and over 5,000 IT engineers in actively participating in Japan’s digital transformation and IT supply chain. On the other hand, Japan expressed eagerness to swiftly implement 15 energy transition projects worth over USD 20 billion under the framework of the Asia Energy Transition Initiative (AETI) and the Asia Zero Emission Community (AZEC).

9. Japan Plans 2.5-Hectare, World-Class Hospital in Hanoi — Boosting Vietnam’s Medical Infrastructure

During a meeting with the Hanoi People’s Committee on April 28, 2025, Mr. Takagi Kuninori, Chairman of Japan’s International Healthcare and Welfare Group (IHW), expressed a strong interest in constructing a 200-bed hospital inspired by IHW’s renowned medical institutions such as Sanno Hospital and Mita Hospital. The proposed facility aims not only to deliver high-quality medical care and diagnostic services but also to serve as a clinical training center where doctors from across Vietnam can enhance their professional expertise.

Meeting Between Takagi Kuninori and Hanoi People’s Committee Authorities

Source: Kinhtedothi