Your weekly business update on Vietnam.
Sharp, crisp, well-crafted - like your favorite bánh mì sandwich.
Happy Sunday!
Welcome to the last episode of Bánh Mì Brief in 2025. We hope you had a wonderful Christmas and relaxing holidays.
While some of us were unpacking presents, Vietnam unpacked something far bigger: a financial centre that could reshape global capital flows, a billionaire's admission that even Vietnam's biggest bets have limits, and proof that 2026 won't be business-as-usual.
Enjoy the read!
MARKETS
Vietnam launches its International Financial Centre(s)
Prime Minister Phạm Minh Chính unveiled Vietnam's International Financial Centre (IFC) on December 21, calling it a "turning point" in the nation's development trajectory. The IFC will operate in two locations (Ho Chi Minh City and Đà Nẵng) with the Steering Council chaired by Permanent Deputy Prime Minister Nguyễn Hòa Bình, signaling unwavering top-level political commitment.
In a sweeping historical narrative, PM Chính framed the IFC as the third pillar of Vietnam's transformation: after agricultural reform (1986) lifted the country out of poverty and foreign industrial investment achieved upper-middle-income status, today's financial centre aims to unlock "financial technology integration and green economy transformation to become a developed, high-income nation."
The government has issued eight comprehensive decrees covering financial policy, trade procedures, residency rules, land use, labour regulations, arbitration, banking, foreign exchange, and anti-money laundering compliance. Rather than competing directly with Singapore or Hong Kong, PM Chính emphasized a "complementary model" designed to position Vietnam as a crucial node in the global financial network.
BUSINESS
Vingroup’s retreat
Vietnam Investment Review / Vingroup
Here's what happened: Vietnam's wealthiest billionaire, Pham Nhat Vuong, and his Vingroup conglomerate just walked away from a North-South high-speed railway project after already holding significant stakes.
Vingroup had envisioned eight transformative projects totaling over VND1.75 quadrillion (USD 66.5 billion) - nine times its best annual revenue and roughly 15% of Vietnam's entire 2024 GDP. These included a colossal Olympic-standard sports complex spanning 9,000 hectares with a 135,000-seat stadium (the world's second-largest), the Can Gio metro line connecting HCMC's coastal development, and the Hanoi-Quang Ninh high-speed rail running 120km to Ha Long Bay.
But reality hit: these projects demand not just capital but sustained operational focus, regulatory coordination, and market validation on unprecedented scales. Vingroup's track record tells you something else too: the company has exited profitable businesses before (Vinmart+ generated $1 billion in annual revenues, yet was sold off in 2019).
This suggests Vuong is ruthlessly prioritizing, recognizing that attempting everything means finishing nothing. The VN-Index dipped on the news, reflecting broader investor anxiety about Vietnam's ability to execute these transformational infrastructure bets. This is the crux: can Vietnam's government and private sector actually deliver mega-projects at scale, or is the ambition outrunning execution capability?
QUICK BITES
Have you heard…
Red River Chaos: MIK Group withdrew from the massive USD 32.49 billion Red River Scenic Boulevard project just days after the groundbreaking ceremony; its stake transferred to lead investor Dai Quang Minh, signaling confidence issues among consortium members.
Long Thanh Lands: Vietnam Airlines successfully completed its first passenger flight to Long Thanh International Airport on December 19, carrying Deputy PM Nguyen Hoa Binh and 100 passengers, marking the final countdown to commercial operations.
Durian Goes Digital: Vietnam piloted an agriculture traceability system on December 26, starting with durian and expanding to other crops by mid-2026, enabling consumers to scan QR codes and verify product authenticity.
Vinpearl's New Helm: Ngo Thi Huong, a finance and accounting veteran with roots in Vingroup since 2017, took over as Vinpearl's CEO on December 27, replacing Dang Thanh Thuy.
Digital Twin Power: MobiFone and CMC Technology signed a comprehensive MOU on December 22, combining telecom infrastructure with cloud and AI capabilities to accelerate digital government and enterprise transformation.
OUTLOOK
Keep accelerating in 2026
General Secretary To Lam has made 2026 crystal clear: no more "warm-up," only "acceleration." The Party Central Committee will release two strategic resolutions - one on transforming Vietnam's development model through science and innovation, another on mobilizing resources for double-digit growth.
What does this mean for you watching Vietnam? The government is fundamentally shifting from reporting plans to reporting outcomes, from "doing" to "doing thoroughly." Every ministry, sector, and locality must pivot from bureaucratic proceduralism to measurable execution. Cybersecurity and digital sovereignty are now prerequisites for sustainable development.
And here's the kicker: Vietnam will establish real-time monitoring systems with public scorecards ranking agencies and localities by performance. This is governance transparency on steroids, designed to create accountability where it's historically been thin. But this also raises the stakes enormously. Vingroup's retreat from the rail project, MIK Group's abrupt exit from the Red River project, and the need for a massive IFC launch all point to the same thing: Vietnam's ambitions are racing ahead of its institutional capacity to execute them. 2026 will test whether rhetoric translates into results, or whether Vietnam's transformation remains perpetually "next year's breakthrough."
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See you in 2026! 🥖