In the final days of August 2025, Vietnam’s economic landscape is undergoing a remarkable transformation, marked by surging foreign investment, bold regulatory reforms, and dramatic shifts in the country’s gold market. Ho Chi Minh City, the nation’s commercial heart, is at the center of these changes, attracting new waves of high-tech foreign direct investment (FDI) while also navigating the complexities of a volatile gold market and a fast-evolving regulatory environment.
On August 25, 2025, Ho Chi Minh City made headlines as SAP, the renowned German technology group, officially launched its SAP Labs Vietnam Research and Development Center. According to Tài chính & Ngân hàng, SAP has committed to investing over 150 million Euros (about 4,500 billion VND) into this center over the next five years, marking a significant milestone in the city’s push to become a magnet for high-tech investment. This move is more than symbolic: it signals a strategic shift in how Vietnam, and Ho Chi Minh City in particular, are positioning themselves to attract a new generation of foreign capital.
Vietnam’s FDI landscape is certainly evolving. As reported by Kinh tế Việt Nam, more than 3.6 billion USD in new and expanded FDI poured into the country’s export processing zones and industrial parks in recent months, with over 1 billion USD specifically targeting high-tech sectors. For years, FDI in Vietnam tended to focus on labor-intensive industries such as textiles, footwear, electronics assembly, and real estate—sectors prized for their low costs but offering limited value addition. With global minimum tax rules on the horizon and the old model of tax incentives and cheap labor losing its shine, the city is now rethinking its strategy to lure quality investment that brings higher technological value and sustainability.
Ho Chi Minh City’s ambitions don’t stop with technology. Urban renovation projects, especially those targeting the city’s canal areas, have been underway for nearly three decades. By August 30, 2025, these efforts had yielded tangible results: cleaner environments and improved living conditions for local residents. Kinh tế Việt Nam notes that the revitalization of canal-side neighborhoods is not just about infrastructure—it’s about crafting new values and lifestyles for the city’s people, restoring both pride and environmental health to once-neglected areas.
Vietnam’s broader economic foundation is also becoming more diverse and robust. As of August 30, 2025, the country boasts nearly one million enterprises, with 98% being private businesses. There are over 33,000 cooperatives operating under new models, and more than 5 million business households, according to the Ministry of Finance. This entrepreneurial dynamism is providing a solid platform for both domestic growth and international investment.
Yet, even as the country celebrates these successes, it faces significant challenges. The construction and issuance of standards, regulations, and procedures for high-speed rail, for example, remain sluggish despite four official directives from the Prime Minister. On August 30, 2025, the Prime Minister reiterated the need for ministries, agencies, and localities to step up their efforts, emphasizing the importance of timely, safe, and effective deployment of key projects. The message is clear: Vietnam cannot afford to rest on its laurels if it wants to maintain its momentum.
Meanwhile, the government is taking bold steps to reform its regulatory environment, particularly in the gold market. In late August, gold prices in Vietnam experienced wild fluctuations, with SJC gold bars soaring to over 129 million VND per tael and gold jewelry prices exceeding 123 million VND per tael as of August 29. According to Cafef, these price spikes were driven by a combination of global political and monetary tensions—including disagreements between U.S. President Donald Trump and the Federal Reserve over interest rate policies, which weakened the USD and made gold an attractive safe haven. Trade tensions escalated further when the U.S. imposed new tariffs of 10% to 50% on goods from dozens of countries, stoking fears of a global trade slowdown.
In Vietnam, these global forces were compounded by local consumer psychology. Many Vietnamese, fearing that international gold prices would continue to rise, held onto their gold or increased their purchases, causing domestic prices to surge even faster than those abroad. This behavior, while understandable, put additional pressure on the market and prompted the government to act.
Enter Decree 232/2025/ND-CP, which will come into effect on October 10, 2025. This sweeping reform ends the State’s monopoly on gold bars, replacing it with a licensing system for enterprises and commercial banks that meet certain conditions to participate in gold bar production. The decree also expands controlled import rights to diversify supply, reduce the price gap between domestic and global gold markets, and curb gold smuggling. Notably, all gold transactions of 20 million VND or more will now have to be settled through banks, a move designed to enhance transparency and support anti-money laundering efforts.
Experts are cautiously optimistic about these changes. Dr. Nguyễn Đức Độ, cited by Cafef, believes that requiring bank settlements for large gold transactions is necessary: "This helps make cash flows more transparent, contributes to anti-money laundering, and limits speculation." He also notes that while the timing of the decree may temporarily affect consumer behavior—some people may rush to buy gold before the rules take effect—the long-term impact will be positive: "This mentality is short-term and will not have a lasting effect on the market." Another expert adds, "No policy can immediately reduce the price gap from 20 million VND per tael to 9 or 10 million VND; it will take several months for this gap to narrow."
Decree 232 also addresses concerns about the rights of citizens holding gold bars produced before the new regulations. Deputy Governor of the State Bank of Vietnam Phạm Quang Dũng assures, "Decree 232 continues to recognize all types of gold bars legally produced before, and allows SJC Company to reprocess gold bars it made before the decree takes effect but are no longer fit for circulation." The decree mandates that gold-producing enterprises and banks must publish standards, weights, and gold content for their products, take legal responsibility for meeting those standards, provide warranties for customers, and maintain data connections with the State Bank for oversight.
With these reforms, the government aims to create a healthier, more transparent gold market. The hope is that as supply becomes more diverse and production more open, the gap between domestic and global gold prices will shrink, and illegal activities like smuggling will be curbed. Dr. Độ advises, "People should buy and sell at official, state-authorized locations to avoid risks," underscoring the importance of safe, legal transactions.
As Vietnam stands at this crossroads, the country’s leaders are making clear that adaptability and vigilance are essential. The construction of the International Financial Center (IFC) in Ho Chi Minh City is being positioned as a strategic move to draw global investors deeper into Vietnam’s economy. The Prime Minister has stressed the importance of proactive diplomacy in the new era, urging officials to seize opportunities and keep a firm grasp on both domestic and international developments.
From sweeping urban renewal to high-tech investment and bold market reforms, Vietnam’s journey in 2025 is one of transformation and ambition. The country’s ability to balance growth, regulation, and innovation will determine just how far it can go on the global stage.
