ALIAT – News

Vietnamese women taking flight in aviation industry

CAAV director Uong Viet Dung

On October 17, the Civil Aviation Authority of Vietnam (CAAV) and Boeing organised a seminar on sustainability practices in human resources for Vietnam’s aviation industry. The event gathered representatives from aviation authorities, enterprises, and airlines nationwide to discuss strategies for fostering an inclusive and resilient workforce for the sector.

“Over the past three decades, Vietnam’s aviation industry has demonstrated the intelligence, resilience, and determination of the Vietnamese people, including Vietnamese women,” said CAAV director Uong Viet Dung. “This has supported Vietnam’s aviation industry to overcome challenges from the inception until today.”

“Vietnam’s aviation industry is increasingly integrating into international markets and affirming its position on the global map. Women have made significant contributions to the success, facilitating the aviation industry to remain steadfast and ready to fly even higher,” he added.

Key positions in the aviation industry once dominated by men are now seeing growing female participation across all roles. Women are increasingly serving as pilots, captains, air traffic controllers, flight attendants, and aircraft maintenance engineers, among other positions.

Dung also expressed gratitude to female leaders in the aviation industry, “In the aviation industry, it is impossible not to mention Vietjet chairwoman Nguyen Thi Phuong Thao – a small yet remarkably resilient woman with bold vision, strategic thinking, aspirations, and a burning passion for developing Vietnam’s civil aviation industry.”

The seminar underscores the role of Vietnamese women, which is an important factor for the development of Vietnam’s aviation industry in the new era.

Tran Kim Anh, head of Capital Resources, spoke about the best practices applied at Vietjet to stimulate growth and career advancement opportunities for women and foster an equitable workplace.

“Vietjet is among the few airlines worldwide where women hold many top positions, including chairwoman of the Board of Directors, vice chairwoman of the Board of Directors, board member, and deputy CFO, as well as many department leaders. Vietjet chairwoman Nguyen Thi Phuong Thao has promoted the gender equality initiatives that empower women to thrive both professionally and personally.”

Today, female employees make up nearly 40 per cent of Vietjet’s total workforce, with 30 per cent of leadership roles held by women. From pilots, flight attendants, engineers, flight operations staff to financial, commercial, and communications managers – Vietjet women are contributing to creating a new face for the modern, dynamic, and humane Vietnamese aviation industry.

Thao’s journey stands as a living testament to her aspiration to serve the nation with knowledge, responsibility, and compassion, while inspiring a new generation of entrepreneurs to build a prosperous and happy country. More importantly, it is a clear testament that gender barriers cannot hinder the development and success of women in the aviation industry or more broadly in the economy and society.

According to Anh, “Women’s success comes from intelligence, courage, perseverance, compassion, a spirit of sharing, and the ability to inspire through kindness. They naturally balance reason with emotion and responsibility with dedication – qualities that foster a humane, sustainable, and inspiring workplace.”

“At Vietjet, we firmly believe that empowering women means empowering businesses – it is how we nurture a progressive corporate culture where economic growth always goes hand in hand with human values,” Anh added.

More female pilots, engineers, and young leaders are stepping forward to prove their capabilities in Vietnam’s aviation industry. Experts agree that breaking down barriers requires fostering inspiration, sharing experiences, expanding learning opportunities, and encouraging the next generation to think boldly and act decisively. By doing so, women can become the strong leaders and managers who help drive the country’s aviation industry to new heights.

Vietjet takes delivery of first Boeing 737-8 in $32bn order

Vietjet has celebrated the delivery of its first Boeing 737-8 aircraft, marking a milestone in the airline’s landmark $32 billion order with the US manufacturer.

Vietjet chairwoman: every aircraft brings trust, employment, and prosperity

Vietjet has received its first Boeing 737-8 aircraft from the airline manufacturer.

Vietjet inspires and empowers women to soar in aviation

Vietjet demonstrated its unwavering commitment to sustainable development and gender equality at the 2025 Women in Aviation International-Singapore Chapter (WAI-SG) Gala Dinner held on October 16.

Vietjet lifts aviation training to new heights with Airways Aviation

News

The two sides signed a strategic cooperation agreement on October 21 to develop skilled personnel for the global aviation sector. The ceremony took place in the presence of Party General Secretary To Lam and senior government and business representatives during his official visit to Finland – the first by a Vietnamese Party leader in more than five decades of diplomatic relations between the two countries.

Vietjet lifts aviation training to new heights with Airways Aviation

Photo: Vietjet

Under the agreement, Airways Aviation will collaborate with the Vietjet Aviation Academy (VJAA) to implement international-standard pilot training programmes in Europe. These will comply with regulations from the International Civil Aviation Organisation, the European Union Aviation Safety Agency, and the Civil Aviation Authority of Vietnam.

The specialised multi-crew pilot licence and commercial pilot licence courses aim to develop a new generation of pilots to support Vietjet’s global expansion and sustainable growth strategy.

Vietjet signs training tie-up with Airways Aviation

Photo: Vietjet

Vietnam and Finland are committed to deepening cooperation in economic connectivity, science, technology, innovation, and human resource development. The collaboration between Vietjet and Airways Aviation will contribute to this new era of partnership, built on creativity, knowledge, and sustainable development.

Photo: Vietjet

Vietjet’s workforce currently exceeds 9,000 employees representing more than 60 countries and territories, supporting its extensive operations across both domestic and international markets.

As a global aviation group, Vietjet continues to expand its flight network, attract top-tier talent, and offer world-class services and products. The airline maintains a strong presence across the Asia-Pacific region and is preparing for further expansion into major markets in Europe and the Americas.

As an International Air Transport Association (IATA)-accredited training partner in Vietnam, VJAA has trained nearly 400,000 pilots, flight attendants, engineers, dispatchers, and aviation professionals, empowering the dream of conquering the skies and driving the industry’s sustainable growth.

Airways Aviation is a globally recognised flight training academy with a strong presence across Europe, the Middle East, Asia, and Australia, with over 45 years of experience.

The new-age carrier Vietjet has not only revolutionised the aviation industry in Vietnam, but also been a pioneering airline across the region and around the world. With a focus on cost management ability, effective operations, and performance, applying the latest technology to all activities and leading the trend, Vietjet offers flying opportunities with cost-saving and flexible fares as well as diversified services to meet customers’ demands.

Vietjet is a fully-fledged member of IATA with the IATA Operational Safety Audit certificate. As Vietnam’s largest private carrier, the airline has been awarded the highest ranking for safety with seven stars by the world’s only safety and product rating website airlineratings.com and listed as one of the world’s 50 best airlines for healthy financing and operations by Airfinance Journal in many consecutive years.

The airline has also been named as Best Low-Cost Carrier by renowned organisations such as Skytrax, CAPA, Airline Ratings, and many others.

Vietjet takes delivery of first Boeing 737-8 in $32bn order

Vietjet has celebrated the delivery of its first Boeing 737-8 aircraft, marking a milestone in the airline’s landmark $32 billion order with the US manufacturer.

Vietjet inspires and empowers women to soar in aviation

Vietjet demonstrated its unwavering commitment to sustainable development and gender equality at the 2025 Women in Aviation International-Singapore Chapter (WAI-SG) Gala Dinner held on October 16.

Vietnamese women taking flight in aviation industry

Ahead of Vietnamese Women’s Day, the Civil Aviation Authority of Vietnam and Boeing co-hosted a seminar on sustainable human resource development in aviation, focusing on gender diversity and long-term workforce growth.

Africa emerges as new market for Vietnamese rice

News

Rice exporters look to Africa for growth opportunities. Photo: Duc Thanh

Vietnam’s rice industry is facing one of its toughest challenges in years as two major markets, the Philippines and Indonesia, have sharply cut imports, forcing exporters to scramble for alternative buyers. Many firms are now pivoting to Africa, where demand for Vietnamese rice is unexpectedly rising.

For years, the Philippines and Indonesia accounted for nearly half of Vietnam’s rice exports, serving as vital pillars of the trade. That stability was upended in September when the Philippines, Vietnam’s largest buyer, suddenly suspended rice imports for 60 days and signalled the pause could extend through the year. Customs data shows Vietnamese rice shipments to the Philippines in September plummeted by 93.3 per cent in volume and 92.6 per cent in value compared with August.

Indonesia, the second-largest importer, simultaneously tightened its import quotas, causing widespread contract delays and cancellations. As a result, Vietnam’s overall rice exports in September dropped to just 466,800 tonnes, worth $232.38 million, down nearly 47 per cent on-month. Around 500,000 tonnes of rice remains stuck at ports, leaving exporters in limbo.

Nguyen Van Don, director of Viet Hung Co., described the fallout. “With the Philippines suspending imports, domestic prices have fallen sharply. Contracts were signed, but partners have postponed, freezing capital while storage and transport costs soar,” he said. The cash crunch has worsened as VAT refunds remain delayed, further squeezing liquidity.

The sharp decline has pushed Vietnam’s export prices downward, prompting the Vietnam Food Association (VFA) to urge firms to avoid panic selling. Instead, companies have been encouraged to diversify their markets and strengthen resilience.

One key direction is Africa. Despite higher shipping costs and more complex payment terms, countries such as Ghana, Ivory Coast, Nigeria, and Senegal are significantly increasing their Vietnamese rice imports. According to the VFA, Ghana imported 662,000 tonnes in the first eight months of 2025, worth $373 million, up 95 per cent in volume from the same period last year. Ivory Coast imported 754,000 tonnes, worth $349 million, up 156 per cent in volume.

“Unlike Southeast Asia, African markets present fewer policy risks, although they require government-to-government contracts, stronger capital, and logistics capabilities,” said Phan Van Co, marketing director of Vrice. “This is not for short-term players but for companies with long-term strategies.”

In parallel, exporters are repositioning toward high-value segments such as fragrant, speciality, and organic rice. Varieties are finding stable markets in Japan, the EU, and South Korea,” Co added. “Once premium products enter international supermarket chains, price pressures ease considerably.”

VFA chairman Do Ha Nam stressed that the crisis underscores the risks of overreliance on a few markets. While there is no official extension yet of the Philippines’ ban, he warned exporters to take the episode as a clear signal for change. He urged the government to accelerate VAT refunds, ease credit access, and strengthen trade promotions in Africa and the Middle East.

“This is a true stress test for Vietnam’s rice sector,” Nam said. “We cannot rely on luck or the policies of others. Now is the time to build strength from within, with quality, supply chains, and national branding.”

The future of railways is connected with AI and 5G technologies

News

A robotic dog, equipped with advanced cameras and sensors, autonomously inspects railcars – streaming live data over private 5G for instant AI-driven defect detection. Complementing this, wayside automated visual inspection systems scan trains at full speed, analysing wheels, axles, and structural integrity in real time.

In today’s rapidly evolving landscape, governments and critical industries face growing demands for secure, reliable, and intelligent communications. Sectors like public safety, defence, utilities, rail, and digital airspace today need infrastructure that supports real-time video feeds, AI-enhanced analytics, and mobile collaboration without sacrificing reliability.

Governments and critical industry organisations are expected to further incorporate advanced technologies like AI, machine learning, and data analytics to improve predictive policing, resource allocation, and response times. Emerging tools such as drones and autonomous vehicles are anticipated to play increasingly significant roles in surveillance and emergency response efforts.

The future of railways is connected with AI and 5G technologies

Rita Mokbel, president, Ericsson Vietnam

We envision a future where public sector organisations have access to standardised, broadband -based communications that are not only secure and interoperable, but also intelligent and responsive.

As governments and critical sectors accelerate their digital transformation, communications service providers (CSPs) are uniquely positioned to offer next-generation mission-critical communication services on top of 4G and 5G networks. Mission-critical networks are specifically designed to meet the stringent requirements of public safety, defence, utilities, rail, and digital airspace sectors where secure, reliable, and high-performance connectivity is essential.

These networks are built upon 3GPP standards and leverage leading 4G and 5G technologies to deliver broadband capabilities for mission-critical services such as push-to-talk, real-time video, and data for professional users whose work directly impact the safety, security, and operational efficiency of critical services and organisations. These can include first responders, defence personnel, railway staff, utility workers, and government officials. The networks provide reliability, availability, and security that standard commercial networks might not be able to offer.

Let me deep dive into the example of railways. We are entering the era of highly connected railways. From connected passengers to digitalised operations, the rail transport sector is exploring digitalisation to enhance user experience, increase efficiency in their day-to-day operations, and maintain network security.

The future of digital railway depends on reliable critical mobile broadband connectivity powered by innovative 5G network solutions for faster, safer, and greener travel.

3GPP is the modern standard for mission-critical mobile communications. 4G and 5G will enable a much broader ecosystem of communication devices and sensors to be utilised, and will therefore reduce total cost of ownership. The advantage of building an open framework is that it gives the urban metro and mainline rail operators the tools they need to keep trains competitive with other emerging forms of transportation, such as self-driving cars.

Upgrading to 5G mobile technology means that networks can handle large volumes of data with much faster response times. This change will bolster operations by allowing for network slicing on a single network, supporting various use cases, including the remote control of trains travelling at speeds of up to 500km/h.

As part of the service provider Swisscom’s initiative to unleash the next wave of 5G enterprise across Switzerland, Europe, and the world, Swisscom, Ericsson, and Swiss Federal Railways collaborated in multiple connectivity projects for railway track coverage, including to test and achieve world-first 5G throughput speeds of 1.2 Gbps and latency as low as eight milliseconds – on a moving train.

Stronger communications infrastructure means rail operators are equipped with a more capable set of eyes and ears, so passengers can travel safely and punctually, while operational efficiency is improved across the board.

Security video surveillance is vital for any rail operator’s security measures. With a suite of highly networked cameras located both in train stations and the trains themselves, rail operators can respond to potential threats and can gain greater insight into certain events with increased readiness and clarity.

As reliance on digital infrastructure grows, cybersecurity will become a paramount concern, necessitating robust measures to protect critical infrastructure like energy grids and communication networks, alongside ensuring the security of personal and sensitive data.

Ericsson’s mission-critical networks portfolio empowers CSPs to meet this demand by offering 3GPP-compliant 4G and 5G solutions that are scalable, interoperable, and tailored for the unique needs of such operations. CSPs can deliver resilient connectivity that enhances situational awareness, operational efficiency, and cross-agency collaboration, either through dedicated private networks or hybrid models leveraging existing infrastructure.

Whether it is enabling autonomous drones in emergency response, safeguarding national infrastructure with advanced cybersecurity, or supporting high-speed rail and smart power grids, Ericsson is helping governments and critical industries bring their digital ambitions to life.

SABECO brings 150-year heritage journey to Buon Ma Thuot

News

On October 10 in Dak Lak, locals participated in double-decker city tours as part of SABECO’s nationwide campaign marking 150 years of brewing tradition. At the fifth stop of the ‘Heritage Journey,’ the brewery combined its historic legacy with experiences promoting community connection and sustainable development across Vietnam.

Launched in Ho Chi Minh City on 12 September, the journey has already travelled through Can Tho, Vinh Long, and Vung Tau, each stop symbolising the values of connection and sharing. By reaching communities across Vietnam, SABECO is bringing its heritage story closer to people from the south to the north.

In Buon Ma Thuot, the bus, featuring a miniature exhibition, stopped at Co.op Mart and the Victory Monument, attracting hundreds of visitors. Inside, three curated spaces highlighted SABECO’s past, present, and future, showcasing its 150-year history, the contributions of Vietnam’s largest team of brewmasters, world-class ingredients, and the company’s commitment to sustainable development, community engagement, and social responsibility.

Automatic bottle and can recycling machines encouraged visitors to take simple, practical steps for the environment. After the exhibition, the bus toured key spots in Buon Ma Thuot, including Nguyen Tat Thanh Park, the local market, and Dak Lak Museum, combining sightseeing, photo opportunities, and live music on board to create an engaging experience.

Beyond its business presence through the Ho Chi Minh City – Dak Lak Brewery and retail network, SABECO has fostered strong ties with the province. Projects in Krong Nang district have improved rural infrastructure, enhanced lighting, and contributed to the development of Dak Lak’s new countryside.

The heritage journey in Dak Lak continued on October 11 in Buon Ma Thuot as part of SABECO’s third instalment of its large-scale cultural and entertainment series, blending music with interactive exhibition spaces. Residents enjoyed live performances, explored SABECO’s brewing history, and learned about its future vision, with artists such as Tieu Minh Phung and Hoang Yen Chibi adding to the vibrant atmosphere in the heart of the Central Highlands.

Following Dak Lak, the heritage journey will move north to Binh Dinh, Nghe An, and Hanoi. Through the series, SABECO aims to create community spaces, celebrate its 150-year brewing tradition, and reaffirm its commitment to sustainable development and shared prosperity across Vietnam.

Mercedes-Benz distributor reports 25 per cent decrease in revenue

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Mercedes-Benz distributor report a 25 per cent decrease on-year in revenue

According to its third-quarter financial report, Hang Xanh Automobile Service JSC (Haxaco, stock code: HAX) recorded revenue of approximately VND1.15 trillion ($46 million), a 25 per cent decrease compared to the same period last year. After expenses, the company reported a loss of nearly VND26 billion ($1 million), whereas in the third quarter last year it posted a profit of over VND90 billion ($3.6 million).

This is the company’s first reported loss in four years, a period previously described by leadership as unprecedented during the COVID-19 outbreak, which forced multiple branches to close for months.

Explaining the poor performance in the third quarter, Haxaco’s financial report cited continued weakness in the luxury car segment due to tightened consumer spending. Meanwhile, competitive pressure from other premium brands has increased, with rivals constantly launching new models accompanied by incentives and financial support. Discounts are no longer limited to luxury vehicles but have spread to mass-market segments as well. In addition, operating costs rose as the company is in the process of expanding its operations.

For the first nine months of 2025, Haxaco posted revenue of approximately VND3.14 trillion ($125 million), a 15 per cent drop on-year. Almost 90 per cent of its revenue came from car sales, with the rest from spare parts and repair services. During this period, the company made a profit of just VND1 billion ($40,000), a fraction of the VND 144 billion ($5.7 million) posted in the same period last year. This is far below the company’s pre-tax profit target of VND260 billion ($10 million) set at the beginning of the year.

As of the end of September, Haxaco’s total assets stood at over VND 2.36 trillion ($94 million), with liabilities exceeding VND1 trillion ($40 million).

According to Mirae Asset Vietnam Securities, Haxaco was the first official Mercedes-Benz distributor in Vietnam and held about 40 per cent of the brand’s market share as of mid-2025. In addition to Mercedes-Benz, the company also distributes MG vehicles (originally a British car brand, now owned by a Chinese company).

The securities company forecast that Haxaco’s revenue and post-tax profit this year will reach VND6.38 trillion ($255 million) and VND271 billion ($10.8 million), respectively, increases of 16 and 33 per cent on-year. However, Mercedes-Benz sales volume are likely to decline by 12 per cent, while MG sales will grow by 66 per cent.

Discount paradise for auto buyers

As part of a new package to help the automobile market stay afloat after this year’s global woes, locally-manufactured vehicles will benefit from a massive cut in registration fees, but imported vehicles will not miss out in the price war as makers throw potential customers huge savings.

Mercedes-Benz Vietnam set to open a new showroom in OfficeHaus

German luxury automotive brand Mercedes-Benz is set to open a new showroom in OfficeHaus in Ho Chi Minh City by the end of 2022.

Liberty Insurance Vietnam and Mercedes-Benz Vietnam sign insurance deal

Liberty Insurance Vietnam and Mercedes-Benz Vietnam on March 11 signed an agreement regarding the Mercedes-Benz Car Insurance program to help customers access a comprehensive auto insurance solution.

German court rules against Mercedes in emissions case

A German court ruled Thursday that auto giant Mercedes-Benz knowingly installed emissions-cheating devices in some diesel vehicles, opened the door for owners to seek compensation.

ETC Technology Systems JSC awarded for Corporate Excellence

News

Celebrating two decades of establishment and growth, ETC has pioneered comprehensive digital transformation solutions for organisations and businesses across Vietnam.

ETC Technology Systems JSC awarded for corporate excellence

This award acknowledges ETC’s continuous efforts in delivering high-quality, innovative technology solutions, and spearheading the development of Vietnam’s IT industry.

ETC’s core offerings involve providing customised, comprehensive technology solutions, specialising in system integration, data centre construction, cloud computing, network infrastructure and cybersecurity. The company also provides industry-specific solutions, maintenance services, and information security assessments.

ETC has successfully deployed numerous complex, comprehensive, highly reliable and exceptionally effective technology solutions for a strategic client base with unique technical and security requirements.

This portfolio includes key government agencies such as the Ministry of Public Security and Ministry of Finance, leading banks including VietinBank, Vietcombank, and BIDV, and major corporations like Airports Corporation of Vietnam and Vietnam Electricity.

Serving as a strategic partner to over 50 global technology firms, ETC holds the highest-tier partner status in Vietnam from major industry players, including Dell Technologies, Cisco, and Palo Alto Networks.

This standing allows ETC to continuously elevate its personnel’s expertise, optimise solutions, and enhance its ability to handle complex projects with stringent technical and security requirements.

As Vietnam’s leading provider of digital technology ecosystems, the company has earned numerous prestigious titles from its global vendors, alongside a multitude of respected national and international awards over the past two decades.

ETC and Cisco’s strategic partnership signing ceremony

Pursuing technological self-reliance, ETC has developed numerous intelligent, Vietnam-based solutions, consequently driving a powerful transformation across many critical national sectors, especially aviation.

ETC’s Biostation end-to-end biometric identification system, directly linked to the national population database, has been successfully deployed at 18 airports nationwide and is slated for implementation at the new Long Thanh International Airport.

The Biostation system, alongside ETC’s AI Camera solution for airport infrastructure monitoring, has been highly praised by operators for enhancing aviation security. Moreover, it has been warmly received by passengers for significantly reducing processing times.

The proven practical effectiveness and high scalability of ETC’s solutions underscore its pioneering role in Vietnam’s digital transformation process and the development of national competitiveness.

Looking ahead, ETC will further intensify research and development investment, integrating AI, big data, and cybersecurity into its core products. Beyond solidifying its strong regional position, the company is focused on international market expansion, bringing Vietnamese innovation and technological capabilities to the global stage.

ETC’s Biostation system is operational in 18 airports nationwide

The Corporate Excellence title serves as a powerful testament to ETC’s sustainable growth.

This achievement is underscored by impressive financial growth, effective business strategies, and positive community contributions. This validates ETC’s outstanding accomplishments and solidifies the company’s position as a symbol of innovation and sustainable development in the region.

APEA, established in 2007 by Enterprise Asia, is a highly esteemed annual award programme designed to honour exceptional enterprises and entrepreneurs across the Asia-Pacific region. Enterprise Asia is a non-governmental organisation in pursuit of creating an Asia that is rich in entrepreneurship as an engine towards sustainable and progressive economic and social development.

SBVN honoured at Asia Pacific Enterprise Awards

Schoeller Bleckmann Oilfield Equipment Vietnam Co., Ltd. (SBVN) has secured the prestigious Corporate Excellence Award at the 2024 Asia-Pacific Enterprise Awards (APEA).

Concentrix Vietnam awarded for Corporate Excellence at APEA 2024

In an achievement showcasing its dedication to innovation and superior customer service, Concentrix Vietnam has been honoured with the prestigious Corporate Excellence award at the Asia-Pacific Enterprise Awards (APEA) 2024.

CDC earns APEA 2025 award for setting new ethical innovation standard

Winning recognition at the Asia Pacific Enterprise Awards, CDC reaffirms its leadership in responsible business practices.

Timber sector seeks solutions to VAT refunds

News

Timber sector seeks solutions to refund VAT bottlenecks

Vietnam’s timber industry is targeting $16.9 billion in export value in 2025. Photo: Le Toan

The Vietnam Timber and Forest Products Association (VIFOREST) has petitioned the Ministry of Finance and relevant agencies to eliminate VAT on primary wood products and recognise them as agricultural outputs exempt from VAT. It has also called for consistent application of Decree 209/2013/ND-CP, which clearly stipulates that ordinarily processed plantation timber should not be subject to VAT.

According to the association, this proposal would allow processing and exporting firms to avoid burdensome deductions and refund procedures, reducing compliance costs and freeing up working capital. “Our goal is to ease administrative bottlenecks, mitigate legal risks, and prevent losses to the state budget from invoice fraud,” VIFOREST stated in its report. The move, it argued, would also protect the incomes of millions of rural household engaged in afforestation.

The sector’s achievements underscore what is at stake. Vietnam today maintains more than 4.6 million hectares of planted forests, producing an annual harvest of 35-40 million cubic meters of timber, sufficient to meet 75–80 per cent of processing demand. Export turnover of wood and wooden products is forecast to reach $16.9 billion in 2025, ranking sixth among Vietnam’s export categories. The industry provides direct jobs for over 500,000 workers and sustains millions of smallholder tree growers.

These numbers point to an acute liquidity challenge. Preliminary figures from VIFOREST indicate that timber enterprises are still waiting for VAT refunds worth around VND6.1 trillion ($250 million). The delay is linked to current procedures that require refunds to be processed only after thorough review.

On paper, the system is meant to secure the state budget. In practice, it has stalled refund approvals for compliant businesses. “Many companies have complete and legitimate dossiers, yet they are still asked to provide additional clarifications over and over again,” noted Cao Xuan Thanh, chief of office at VIFOREST. He stressed that refund processing often exceeded the statutory deadline, causing serious cash flow disruption.

Thanh pointed out that the requirement to trace raw material origins back to individual households is especially unrealistic. “A single export shipment may be sourced from dozens of growers across multiple provinces,” he explained. “The verification process becomes unworkable, and that is where enterprises get stuck.”

The consequences are immediate. Exporters are forced to advance 10 per cent VAT on input materials while awaiting refunds, eroding their capacity to rotate capital. This hits small- and medium-sized firms the hardest. With industry-wide profit margins averaging only 5-7 per cent, the sector loses an estimated VND500-600 billion ($20-25 million) annually due to refund delays, equivalent to 2-3 per cent of total profit.

Delayed refunds also damage Vietnam’s standing abroad. Foreign clients experience late deliveries and deferred payments, eroding confidence. More dangerously, exporters risk sanctions under the EU’s regulation on deforestation-free products (EUDR). “If traceability obligations are not properly met, the EU could issue yellow or red cards, which would severely hurt our market access,” VIFOREST warned.

Nguyen Liem, vice chairman of VIFOREST, added that product classification is another barrier. He observed that plantation timber after harvest, such aslogs, sawn timber, peeled veneer, or woodchips, has not been clearly recognised as “primary processed” goods. “Because of this ambiguity, exporters accumulate large VAT credits that cannot be refunded in time,” he said.

Liem further noted that both enterprises and small traders are still obliged to declare and pay VAT even on minimally processed timber, increasing costs and paperwork. In his words, “These procedures consume enormous time and resources, but the refunds remain out of reach. This has paralysed business cash flows and put many companies at risk.”

The risks extend beyond liquidity. Several exporters waiting on refund larges have been accused of enjoying state subsidies in trade defence investigations overseas. Domestically, extended refund disputes can push legitimate businesses into legal jeopardy. Meanwhile, the “request-and-grant” nature of the current system leaves room for arbitrary delays and even corruption.

These obstacles are driving a troubling shift: some companies now prefer to import timber rather than purchase from domestic plantations, simply to avoid VAT refund complications. This undermines demand for local wood, stripping millions of farmers of stable buyers and disincentivising reforestation. Thanh cautioned that the government might ultimately face the paradox of bailing out commercial plantation forests, a scenario entirely at odds with Vietnam’s sustainable forestry goals.

VIFOREST’s message is clear: resolving VAT refund issues is not merely about tax administration. It is about preserving national reputation, protecting farmers’ livelihoods, and securing the industry’s competitiveness in a global market increasingly focused on sustainability. “If these obstructions are not lifted, we risk losing both domestic and international trust,” Thanh emphasized.

In its petition, the association stresses that timely VAT reform will immediately free up liquidity, reduce exposure to legal risks, and enhance compliance with international traceability standards. More broadly, it would help solidify Vietnam’s position as a reliable, responsible supplier of timber products. “Unlocking these refunds is not a privilege, it is a necessity,” Liem underlined. “Without it, the industry cannot play its intended role as a pillar of the green, circular economy.”

Vietnam’s visionary leaders redefine success at the Asia-Pacific Enterprise Awards 2025

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Organised by leading regional non-governmental organisation Enterprise Asia, the prestigious awards honoured businesses and business leaders who are reshaping industries, embracing innovation, and driving sustainable growth.

Vietnam’s visionary leaders redefine success at the Asia-Pacific Enterprise Awards 2025

With the theme ‘Showcasing Future-Ready Enterprises’, this year’s APEA celebrated organisations and leaders who are future-proofing their businesses amid sweeping technological disruption and shifting economic landscapes.

A highly selective judging process evaluated 342 nominees across four award categories: Master Entrepreneur, Inspirational Brand, Fast Enterprise, and Corporate Excellence. Each recipient stood out for their resilience, innovation, and commitment to creating lasting impact.

Since its inception in 2007, the APEA has grown into Asia’s most prestigious awards platform, with past Master Entrepreneur honourees comprising Kwek Leng Beng of Hong Leong Group Singapore, China’s Xu RongMao of Shimao Group, and Vietnam’s Dang Van Thanh of TTC Group, as well as notable corporate recipients including Pfizer Limited (Taiwan), Baker Hughes, GE Company (India), Pepsi-Cola Products Philippines Inc., Novo Nordisk Pharma (Thailand), Schneider Electric Vietnam, and Shell Vietnam.

“Enterprises that thrive in today’s world are those that challenge convention, embrace sustainability, and create value beyond profits. The honourees tonight embody the vision and resilience that will define the future of Vietnam’s economy.” stated Tan Sri Dr. Fong Chan Onn, chairman of Enterprise Asia, in his welcome address.

Among the Master Entrepreneur honourees are Ly Anh Duy Quang, board member of Greenfeed Vietnam Corporation, and Pham Dinh Doan, chairman of Phu Thai Holdings Group, who have demonstrated exceptional leadership and strategic foresight in steering their organisations to greater heights.

In the corporate categories, among the esteemed recipients were BaoViet Life Corporation and Vincom Retail Joint Stock Company in the Inspirational Brand category. The Fast Enterprise Award went to Phu Nhuan Jewelry Joint Stock Company (PNJ) and Eximbank, while the Corporate Excellence Award was presented to Gemadept Corporation and MB Bank.

The APEA 2025 Vietnam Chapter was supported by the Indian Business Chamber in Vietnam, Dutch Business Association Vietnam, The iMPACT Magazine, Asia Society for Social Improvement and Sustainable Transformation (ASSIST), Italian Chamber of Commerce in Vietnam, Startup Vietnam Foundation, and Vietsuccess. Snowball Consulting served as the official implementation partner, with PR Newswire as the official news release distribution partner, and Dailywire.asia and SME Magazine as the media partners.

Launched in 2007, the Asia-Pacific Enterprise Awards are the region’s most prestigious awards for outstanding entrepreneurship, continuous innovation, and sustainable leadership.

The awards provide a platform for companies and governments to recognise entrepreneurial excellence, hence spurring greater innovation, fair business practices, and growth in entrepreneurship.

As a regional award, it groups together leading entrepreneurs as a powerful voice for entrepreneurship and serves as a by-invitation-only networking powerhouse. The programme has grown to encompass 16 countries/regions and markets all over Asia.

Asia Pacific Enterprise Awards 2024 honour industry leaders and leading corporations in Vietnam

The Asia Pacific Enterprise Awards (APEA) 2024 honoured Vietnam’s inspiring business moguls and visionaries of inclusive entrepreneurship on October 3 at the GEM Centre in Ho Chi Minh City.

Kafi Securities named “Fast Enterprise” at Asia Pacific Enterprise Awards

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Halcom Vietnam honoured with Asia Corporate Excellence award

Halcom Vietnam was bestowed with an Asia Corporate Excellence award at the Asia-Pacific Enterprise Awards in Ho Chi Minh City.

Vietnam motorcycle market slows amid transition

News

On October 10, the Vietnam Association of Motorcycle Manufacturers (VAMM) reported that combined sales from its five members – Honda, Yamaha, Piaggio, Suzuki, and SYM – totalled just under 622,000 units between July and September 2025, down almost 9.4 per cent on-year. Despite Vietnam remaining one of Southeast Asia’s largest motorcycle markets, the decline signals a pause after two decades of strong growth.

With around 80 per cent of market share, Honda continues to dominate, but has not been spared from the downturn. In September alone, Honda sold almost 164,000 motorcycles, down 11.4 per cent on-year. From April to September, its total sales amounted to just over 1 million units, a slight fall compared with the previous year.

Dealers report sharper drops in recent months, particularly in mid-range scooters, as consumers adopt a wait-and-see approach. “People are wondering whether buying a petrol bike now could restrict them later, or if it’s better to wait until EVs become more affordable. This hesitation is putting the entire market on pause,” a major distributor explained.

In contrast, non-VAMM players such as VinFast, Yadea, and Dat Bike are gaining traction in the two-wheeler EV segment, forcing traditional giants like Honda and Yamaha to accelerate their electrification strategies.

The policy landscape is also reshaping expectations. Under a directive issued by the Prime Minister in July, Hanoi authorities must implement measures to restrict fossil-fuelled motorbikes from operating within Ring Road 1 by July 2026. The following stages will limit petrol-powered private cars inside Ring Roads 1 and 2 by 2028, extending to Ring Road 3 by 2030.

In response, VAMM has petitioned the government, warning that the 2026 restrictions in Hanoi could impose significant burdens on both consumers and industry. The association argues that low-income households and families reliant on multiple petrol bikes would face steep costs in switching vehicles. For businesses, the abrupt shift risks disrupting the entire motorcycle ecosystem – from production and distribution to after-sales services.

“Manufacturers will be forced to make substantial investments in restructuring production lines, upgrading technology, and developing new products, without sufficient time or financial support. This could result in heavy losses, production disruptions, and even bankruptcies,” VAMM noted. Nearly 2,000 dealerships and 200 component suppliers tied to internal combustion engines are expected to bear the brunt of declining revenues, with supply chain fractures a likely consequence.

VAMM also pointed out that companies have already invested hundreds of thousands of dollars in new technology and equipment to meet forthcoming regulations effective from 2027, such as EURO4 emission standards and fuel consumption limits. A sudden pivot to EVs could render these efforts wasteful and undermine the effectiveness of recently enacted environmental policies.

To avoid a disorderly transition, VAMM has proposed a more phased approach with a minimum preparation window of two to three years, giving households, businesses, and regulators time to adapt and mitigate risks.

The association further explained that infrastructure remains a critical barrier. Public charging stations are still insufficient, while concerns over fire safety – particularly in ageing apartment buildings with degraded electrical systems – are rising. “Addressing these issues is essential for consumer confidence, business investment, and the safe, effective rollout of electric mobility,” the association stressed.

In addition, VAMM urged policymakers to introduce supportive incentives, such as tax breaks and preferential credit, to encourage consumer adoption of electric two-wheelers.

The motorcycle market is shifting from sheer volume growth to structural transformation. While 2025 has been a challenging year, analysts predict stabilisation from the second half of 2026 as economic growth resumes, incomes rise, and the green consumption trend strengthens.

The interplay of electrification, technological renewal, and consumer appetite for sustainable mobility is expected to shape the next growth cycle. In the long term, Vietnam will remain a pivotal two-wheeler market in ASEAN, not only for domestic consumption but also for its export potential.