Vietnam business news this week was about execution: The Prime Minister pressed for growth, regulators pulled power and pricing levers, and new procurement and public-private partnership (PPP) decrees set out when foreign companies can bid. This edition covers the review window of Monday 12 to Sunday 18 October 2026, plus a few earlier decisions.
Ho Chi Minh City had disbursed 95% of its 2026 public investment plan and approved 49 new projects in nine months.
Here is what the week means for anyone doing business in Vietnam.
- Power Projects and Power Development Plan VIII (PDP VIII) Revisions for the 2030 Grid
- United Overseas Bank (UOB) Raises Vietnam’s 2026 GDP Forecast to 9.2%
- Government Procurement and PPP Access for Foreign Bidders
- Vietnam Signs Free Trade Deal with Four European Countries
TL;DR – The Prime Minister ordered a review of delayed power projects. United Overseas Bank (UOB) raised Vietnam’s GDP growth forecast to 9.2% but flagged inflation and rate-hike risk. The Deputy Prime Minister pushed banks to cut lending rates. New procurement and PPP decrees set out when foreign companies can bid: Government tenders from 14 November 2026, PPP proposals from 1 January 2027 and online investor selection from 1 September 2027. Vietnam and the European Free Trade Association (EFTA) signed a free trade agreement covering tariffs, services, investment and government procurement.
Whether you are already doing business in Vietnam or working out which business lines are open to you, staying ahead of these changes helps you plan for compliance costs and move early on growth. Our guide to the Law on Investment maps the regulatory picture, and the pattern behind why Singapore invests so much in Vietnam shows where the foreign direct investment (FDI) momentum sits.
PM Lê Minh Hưng Orders a Review of Delayed Power Projects and PDP VIII Revisions to Secure Supply Through 2030
On 12 October 2026, Prime Minister Lê Minh Hưng chaired a meeting with ministries and agencies on electricity supply and ordered a review of delayed and underperforming power projects alongside revisions to Power Development Plan VIII, with supply security prioritised for the government’s 10% GDP growth target, as VietnamPlus reported.
The scale of the problem is now public: Only 1 of 18 key liquefied natural gas (LNG) power projects is on schedule.
Will there be reliable, affordable power to run your factory?
The directive is concrete: The Ministry of Industry and Trade (MOIT) leads a project-by-project review with the Ministry of Finance, flagging projects that are behind schedule or unfeasible and compiling a list with specific timelines and named responsibilities for investors and funding.
A Power Development Plan VIII revision is underway. The Government has also submitted a revised Law on Electricity to the National Assembly, with Resolution 253/2025/QH15 setting mechanisms for national energy development in 2026 to 2030. Securing power is “an urgent priority and a prerequisite” for the 2026 targets, the Prime Minister said, as VnEconomy reported.
The economy grew 9.95% in the third quarter of 2026 and 9.01% over the first nine months. That is the load the grid carries: High-tech industry, data centres and FDI projects.
Power can now delay site selection and push up industrial rents. The grid is being built in public, which leaves room to shape the outcome through rooftop self-supply, industrial park choice and long-term price planning.
UOB Lifts Vietnam’s 2026 GDP Forecast to 9.2% but Flags Inflation and a Possible Rate Hike
United Overseas Bank (UOB) raised Vietnam’s GDP growth forecast for 2026 to 9.2% on 13 October 2026, and put 2027 growth at 8.8% (from 8.4%), according to VietnamPlus. UOB Global Economics & Markets Research cited FDI-driven supply-chain relocation, resilient manufacturing FDI and a diversified export mix.
Where will 9.2% growth show up for your business?
The first nine months explain the forecast. Registered FDI reached US$50.36 billion, up 76.4% year on year, and disbursed capital rose 12.1% to US$21.07 billion, according to the UOB report covered by VietnamPlus. Growth shows up where those flows land: Industrial land, supplier parks and the wages around them.
What does the 10% growth target mean for your 2027 plan?
It is beginning to show up in prices. The upgrade came with warnings: UOB lifted its 2026 inflation call to 4.7% (from 4.1%). Consumer inflation ran 5.08% in September, and the first-nine-month average of 4.52% sits above the National Assembly’s 4.5% setting. The State Bank of Vietnam’s refinancing rate is expected to stay at 4.5% through 2027, though UOB now sees the risk skewed towards a hike as inflation and foreign exchange (FX) pressure return.
That call is contested at home. At a 16 October monetary policy meeting, Deputy Prime Minister Nguyễn Văn Thắng asked banks to cut lending rates by 1.5 to 2 points for production and priority sectors. The average lending rate reached 10.7% in August.
Banks are already responding: BIDV launched preferential lending from 6% annually on 15 October, and Vietcombank has pledged cuts of at least 2 percentage points through the end of 2026.
The market backdrop agrees: The VN-Index is back above 1,700 points, and FTSE Russell’s phased inclusion of Vietnamese stocks runs through September 2027.
On UOB’s watchlist: Energy prices, tighter US tariffs after the US midterm elections, power and infrastructure constraints, and slow public-investment disbursement.
Inflation above target argues for harder cost modelling on 2027: Minimum wages, warehouse rents in Binh Duong and Dong Nai, electricity and logistics.
Government Procurement and PPP Access: What the New Decrees Open for Foreign Bidders
Two decrees issued at the turn of the month set out when Vietnam’s public procurement opens to international bidders and when PPP investor selection moves online.
Can foreign firms actually bid for government contracts now?
Yes, from 14 November 2026 on covered tenders, and the implementing documents will decide how far that reaches. The instruments are specific:
- Decree No. 374/2026/ND-CP, issued 30 September 2026 and effective 14 November 2026, implements government procurement under the CPTPP, EVFTA and UKVFTA.
- Decree No. 377/2026/ND-CP, issued 1 October 2026 and in force the same day, amends the rules on PPP investor selection, with online investor selection from 1 September 2027.
The decrees open the door; The documents behind them decide how wide. Decree 374 sets out the tender procedures and bidding steps for the contracts the three agreements cover. Where the instruments are silent, assume nothing.
What local-content and partner requirements still stand between you and a bid?
Those requirements have not disappeared. Local-content expectations and land-bank requirements still shape which projects are winnable, especially in PPP fields, and some procurement still favours domestic suppliers.
National E-Procurement takes PPP proposals from 1 January 2027, and online PPP investor bidding follows from 1 September 2027.
The legal right to bid exists on covered tenders from 14 November 2026, and procurement-ready companies will spend 2027 growing instead of catching up. The decrees are the opening move; The implementing documents decide the reach.
Vietnam Signs Free Trade Deal with Four European Countries
Vietnam and the European Free Trade Association (EFTA) signed a free trade agreement in Hanoi on 18 October, closing 14 years of negotiations. Minister of Industry and Trade Lê Mạnh Hùng signed for Vietnam, with Switzerland, Liechtenstein, Iceland and Norway. The deal covers goods, services, investment and government procurement.
For buyers and investors, the procurement and investment chapters matter as much as the tariff schedule.
Does the new deal change what your imports cost?
EFTA members keep zero tariffs on Vietnamese industrial and seafood goods from entry into force, and for Norway about half its exports go duty-free immediately, with more than 98% within seven years. Vietnam, in turn, cuts its own import duties.
Vietnam’s imports from the EFTA states run to industrial machinery and equipment, chemicals, pharmaceuticals and production raw materials, the categories foreign manufacturers buy. Check your sourcing against the tariff schedules and rules of origin as the agreement takes effect.
Vietnam Business News: Key Takeaways for Foreign Investors
- Power is now a growth constraint. The 12 October directive points the same way, factor power supply and pricing into site selection.
- Plan around 9.2% growth with a tighter cost base. Rate signals point both ways: The Government wants cheaper credit, UOB flags hike risk. Model 2027 for both.
- Procurement opens on 14 November 2026 and PPP proposals on 1 January 2027. Build a documented bid record now and read the implementing documents closely.
- The EFTA deal is an input-cost question. Map machinery, chemicals and pharmaceutical sourcing against the tariff schedules.
Conclusion
The Vietnam business news takeaway: The sequence matters more than any single item. This week shows two things moving at once: Growth hot enough for UOB to mark its forecast up to 9.2%, and the power, pricing and policy constraints behind it handled in public.
Mostly, it was about wiring, not rules. If the 12 October edition (the Investment Law overhaul and Resolution 10) set the frame, this week showed how it gets built: Power, prices, tenders and index plumbing decide the pace.
For foreign investors, the opening is real; Paperwork, timelines and implementation risk decide who gets in early. Treat those three as strategic assets and 2027 gets a lot less hectic.
Thinking about entering or expanding in Vietnam? Contact United Consulting to discuss your market entry, tax and compliance strategy.
