Key Events
- Vietnamese Lawmakers Debate Constitutional Amendments and Government Restructuring
- Vingroup’s Bold Rail Proposal: 5-Year Build, 0% Loan, and Exclusive Real Estate Access
- Top Food Safety Officials Arrested as Vietnam Faces Mounting Fake Goods Crisis
- Vietnam Caught in Crossfire as EU Targets Suppliers Linked to Russia’s War Effort
Vietnamese Lawmakers Warn of Weakened Local Accountability in Draft Charter
During the ongoing 15th National Assembly session, Vietnamese lawmakers voiced significant concerns about the first draft of amendments to the 2013 Constitution and the Law on Local Government Organization, both part of the government’s broader plan to streamline the state apparatus, Luật Khoa Magazine reported.
At a plenary session in Hà Nội, 37 delegates took the floor, with 12 offering feedback on both legislative proposals. A key point of contention was the draft amendment’s removal of the right of People’s Council deputies to question local chief justices and prosecutors.
Nguyễn Thị Kim Thúy, a National Assembly member from Đà Nẵng, strongly opposed the proposal, asking: “If wrongful convictions happen, who will the people turn to for accountability?” She warned that eliminating this right would severely weaken the direct oversight of judicial bodies by elected local representatives.
According to the proposal, the right to question these officials is removed because district-level government will be eliminated, and the court and prosecutor offices would be reorganized by region. Although local People’s Councils would retain general supervisory powers, critics argue this lacks the immediacy and accountability that formal questioning ensures.
Thúy stressed that even under a regional structure, these judicial bodies still prosecute and try residents in the very communities represented by People’s Councils. Without the questioning mechanism, judicial agencies risk operating beyond public scrutiny.
Echoing her concerns, other delegates also questioned whether the reforms would erode democratic checks at the grassroots level.
Debates also flared over the revised Law on Local Government Organization. Delegates warned that abolishing district-level administrations could overwhelm commune-level authorities. Đỗ Thị Việt Hà (Bắc Giang) called for clearer rules defining the supervisory roles of provincial authorities over communes. Trần Thị Thanh Hương, of An Giang Province, urged timely provincial support for communes struggling with increased workloads. Phạm Văn Hòa, Đồng Tháp Province, suggested appointing more provincial deputy chairs based on population and land area, while opposing costly commune-level public service centers.
Meanwhile, some provinces are already moving ahead with merger plans despite no formal adoption of the provincial consolidation proposal. On May 14, leaders from Hồ Chí Minh City, Bình Dương, and Bà Rịa–Vũng Tàu met to discuss new administrative names and borders.
Also on May 14, the Ministry of Public Security’s National Data Center reported that over 4.3 million public comments on the constitutional amendments had been submitted via the VNeID, a state-sponsored application.
VinSpeed, a subsidiary of Vingroup, has proposed an ambitious plan to build a North-South high-speed railway in Vietnam within five years, aiming to begin construction by December 2025 and launch operations by December 2030.
The proposed investment exceeds 1.56 million billion dong ($61 billion), excluding costs for land clearance and resettlement. VinSpeed plans to contribute just 20% of the funding and requests that the Vietnamese government provide the remaining 80% as a 0% interest loan over 35 years.
In its proposal to Prime Minister Phạm Minh Chính, the company also seeks to be directly awarded real estate development projects along the rail corridor. Additionally, VinSpeed is asking for full exemption from import taxes on construction and operational equipment—even for items that can be produced domestically—exclusive rights to operate the railway for 99 years, and the authority to set ticket prices at just 60–75% of current airfare rates.
The proposal sparked public debate, especially after several Vietnamese state media outlets published and then swiftly removed reports about the plan on May 11.
On May 15, the government acknowledged the proposal, expressing general support but noting that changes in investment format and any special policy mechanisms must be approved by the National Assembly. Deputy Prime Minister Trần Hồng Hà assigned relevant ministries to review VinSpeed’s plan.
This move aligns with Vingroup’s broader expansion strategy. In April, the conglomerate broke ground on the Vinhomes Green Paradise megaproject in Cần Giờ, Hồ Chí Minh City—a 2,870-hectare coastal urban complex with a $9 billion budget. The project features a 443-hectare artificial lagoon, a 5,000-seat amphitheater, world class golf courses, a year-round recreational park with fake snow, and offshore wind farms to provide renewable energy.
However, the coastal reclamation plan has faced significant pushback from environmental experts and conservation groups, who warn that it may disrupt tidal flows, threaten biodiversity, and damage the UNESCO-designated mangrove biosphere reserve.
Notably, in January, Prime Minister Chính urged Vingroup Chairman Phạm Nhật Vượng to consider a metro line linking downtown Hồ Chí Minh City to Cần Giờ. By March, Vingroup had formally proposed a $4 billion, 48-kilometer metro line expected to begin construction in 2026 and open in 2028.
The Ministry of Public Security’s Investigation Police Agency has arrested Nguyễn Thanh Phong, former director of the Food Safety Authority under the Ministry of Health, along with four of his subordinates, on charges of accepting bribes.
According to the Investigation Police Agency, the officials allegedly took over 1 billion dong ( $39,000) in bribes to overlook regulatory violations and issue favorable assessments. Their actions enabled the issuance of four GMP (Good Manufacturing Practices) certificates to MediPhar and MEDIUSA factories, and 20 product registration licenses for nine companies linked to Nguyễn Năng Mạnh, director of MegaPhaco.
Mạnh was previously arrested on April 26 for allegedly producing and distributing counterfeit dietary supplements, involving falsified ingredients, packaging, and sales. His network is now at the center of a growing investigation into Việt Nam’s shadowy health supplement market.
On the same day, the Pharmacity chain urgently recalled four products manufactured by Herbitech Technology Co., which is also under police scrutiny for producing fake goods.
These developments come amid a surge of public outrage over counterfeit goods and lax food safety enforcement in Việt Nam. Scandals involving fake or unsafe food have increasingly surfaced nationwide.
On May 8, inspectors in Hà Nội’s Cầu Giấy District raided the popular eatery Lòng Chát Quán following a viral video on social media platforms featuring a 40-meter-long pork intestine dish dubbed “lòng lợn se điếu,” triggering concerns over food safety practices.
In Hồ Chí Minh City and Đà Nẵng voters have expressed strong dissatisfaction with the rampant spread of counterfeit products and regulatory failures.
Hồ Chí Minh City remains the only locality in Vietnam with a dedicated Food Safety Department, led by National Assembly Deputy Phạm Khánh Phong Lan. Speaking at a voter meeting on April 18, Lan admitted that the majority of food and consumer products on the market are self-declared by the brands without effective post-market inspection by the government.
Despite legal requirements for post-market audits, Lan revealed that enforcement agencies suffer from shrinking personnel and authority. As a result, inspections are based on limited sampling rather than comprehensive market oversight.
The recent arrests have spotlighted deep systemic vulnerabilities in Việt Nam’s food safety regime, amid rising public concern about health risks and regulatory corruption.
EU Sanctions Vietnamese Firms Over Alleged Role in Aiding Russian Military
RFA Vietnamese reported on May 14, 2025, that the European Union (EU) announced a new sanctions package targeting Russia’s ongoing invasion of Ukraine. A notable aspect of this package includes sanctions against unnamed Vietnamese companies accused of supplying goods to the Russian military. While specific details regarding the companies and the nature of the goods remain undisclosed, this marks a significant development in the EU’s efforts to curb support for Russia’s military operations.
The sanctions aim to tighten restrictions on Russia’s energy sector, particularly focusing on the so-called “shadow fleet”—a term used to describe hundreds of oil tankers allegedly employed by Russia to clandestinely export oil products. These vessels often obscure ownership information, operate under foreign flags, disable tracking systems, and conduct ship-to-ship transfers in international waters to evade detection. The EU’s latest measures include blacklisting 200 such vessels to disrupt these covert operations.
The timing of the sanctions against Vietnamese entities is particularly noteworthy, occurring just five days after Vietnamese General Secretary Tô Lâm attended Russia’s Victory Day Parade in Moscow, commemorating the 80th anniversary of Nazi Germany’s surrender. Vietnam also sent a military delegation to participate in the event.
This development underscores the EU’s commitment to enforcing sanctions and preventing third-party countries from facilitating Russia’s military endeavors. It also places Việt Nam in a delicate position, balancing its historical ties with Russia against its growing economic and diplomatic relations with the EU.
As the situation unfolds, further details regarding the sanctioned Vietnamese companies and the EU’s enforcement actions are anticipated.
Quick Takes:
On May 4, 2025, Rep. Chris Smith (R-NJ) introduced the Vietnam Human Rights Act (H.R. 3122), marking the 50th anniversary of the Fall of Sài Gòn. The bill aims to condition the U.S.-Việt Nam relations on improvements in human rights, including free speech, religious freedom, and fair trade. It authorizes sanctions against Vietnamese officials involved in human rights abuses and addresses issues like internet censorship and forced labor. The House has passed similar legislation five times since 2001, but the Senate has not voted on it.
Rights Group Urges Việt Nam to Release Imprisoned Activist Amid Intensifying Crackdown
Human Rights Watch has called for the immediate release of Vietnamese human rights activist Trịnh Bá Phương, who is serving a 10-year sentence for criticizing the state. In April 2025, authorities charged him again under Article 117 after prison officials accused him of creating protest signs, one reportedly reading, “Down with the Communist [Party of] Vietnam for violating human rights.” Phương is currently held incommunicado. The case highlights Việt Nam’s escalating suppression of dissent, with over 124 individuals convicted under Article 117 since 2018.
Wisconsin Senate Approves Bill Recognizing Hmong and Laotian Việt Nam-Era Veterans
On May 15, 2025, the Wisconsin State Senate passed legislation to formally recognize Hmong and Laotian individuals who served alongside U.S. forces during the Vietnam War as veterans under state law. The bill, authored by Sen. André Jacque, aims to honor the contributions of these allies who participated in the “Secret War” in Laos, providing intelligence and combat support. If enacted, approximately 1,000 Hmong and Laotian veterans residing in Wisconsin would become eligible for state veterans’ benefits. The bill now awaits consideration in the State Assembly.
Việt Nam Approves $1.5 Billion Trump Golf Resort Amid U.S. Tariff Tensions
Vietnam’s government has approved a $1.5 billion investment by the Trump Organization and Vietnamese developer Kinh Bac City to build a sprawling golf and real estate complex in northern Hưng Yên Province. The 990-hectare (2,446-acre) project will feature multiple golf courses, luxury hotels, residential areas, commercial spaces, and parks. Construction is set to begin this year, with completion expected by 2029.
The approval comes as Việt Nam seeks to avoid a proposed 46% U.S. import tariff amid trade negotiations with the Trump administration. The timing of the deal has raised questions about potential conflicts of interest, given former President Donald Trump’s dual roles in business and politics. The Trump Organization has not commented on the project.
Việt Nam Intensifies Negotiations with U.S. to Avert 46% Tariff
Việt Nam has escalated diplomatic efforts to prevent a proposed 46% U.S. tariff on its exports, which could significantly impact its economy. Following the APEC Ministerial Meeting in Jeju, South Korea, Vietnamese Trade Minister Nguyễn Hồng Diên engaged in direct talks with U.S. Trade Representative Jamieson Greer. The discussions aim to address the U.S.’s concerns over Việt Nam’s $123.5 billion trade surplus and alleged transshipment of Chinese goods. In response, Việt Nam has reduced tariffs on U.S. goods and intensified crackdowns on trade fraud. The U.S. has postponed the tariff’s implementation until July, allowing time for continued negotiations.
To Lam – The Pragmatic Leader Putting Vietnam on The Geostrategic Map
ABC News/Bill Birtles and Mitch Woolnough/May 12
“In a garment factory on the outskirts of Ho Chi Minh City, there’s a mixture of anxiety and quiet confidence among staff about US President Donald Trump’s threat of a huge tariff. Here, workers measure, cut, sew and pack clothing for some of the world’s biggest brands, with monthly salaries starting at about $US320
Dony’s boss, Henry Pham Quang Anh, isn’t thrilled about the tariff threat, but he’s not as worried as many of his staff. Having started the garment factory in 2009 with just $US450 in his pocket, he’s seen tremendous growth as well as setbacks over the past 16 years, including a diagnosis of tuberculosis that forced him to take time off from developing his company.”