The Wave of FDI in Việt Nam and Cheap Labor – Part 2: Courting Capital from FDI Companies
Hiếu Mạnh, Huỳnh Kha, and Lam Hồng wrote this Vietnamese article, published in Luật Khoa Magazine on May 12, 2025.
On May 20, 2025, during the 15th National Assembly session in Hà Nội, the Vietnamese government proposed abolishing the death penalty for eight offenses as part of a sweeping draft amendment to the Penal Code. The move has sparked heated debate over deterrence, justice, and humanitarian concerns within the legislative body.
The draft amendment—developed by the Ministry of Public Security—spans three parts, 26 chapters, and 433 articles. It retains 181 provisions, amends 245, introduces 6 new ones, and eliminates 18.
Notably, the government seeks to remove capital punishment for 8 of the 18 current crimes punishable by the death penalty.. These will be replaced by life imprisonment without parole. The crimes include: subversion (Article 109), espionage (Article 110), sabotage of national infrastructure (Article 114), counterfeit pharmaceuticals (Article 194), drug trafficking (Article 250), embezzlement (Article 353), bribery (Article 354), and acts of aggression or war (Article 421).
Minister of Public Security Lương Tam Quang defended the proposal, stating that the revised penalties would remain strict by isolating offenders from society while aligning with international legal standards and humanitarian trends.
However, the plan has met resistance. Representative Nguyễn Thanh Sang (Ho Chi Minh City) expressed concern that abolishing the death penalty for corruption-related crimes could undermine Vietnam’s anti-corruption campaign. He cited the high-profile case of Trương Mỹ Lan, questioning whether asset recovery would still be effective without the threat of execution.
Others warned that easing penalties for drug offenses—which accounted for over 80% of death sentences in 2023—might turn Vietnam into a drug trafficking hub. Yet, Lieutenant General Nguyễn Minh Đức argued that many drug couriers are poor, uneducated, or unaware of the substances they carry. Some, he noted, have been sentenced to death for transporting as little as 100 grams of narcotics.
Đức also highlighted that no individual has ever been sentenced to death for producing counterfeit medicine, as the consequences are hard to quantify under the law’s strict criteria.
According to Deputy Sùng A Lềnh (Lào Cai), although 83% of death sentences in 2023 were drug-related, only about 1% were actually carried out. He stressed that commuting these sentences could reduce the burden on the prison system, which currently houses over 1,000 inmates on death row, many in overcrowded conditions.
Vietnam continues to face international pressure to end the death penalty, especially for non-violent crimes. Rights groups such as Amnesty International and the World Organisation Against Torture have repeatedly urged abolition of capital punishment. UN member states have echoed this stance during Vietnam’s Universal Periodic Reviews, yet the government has maintained that the death penalty is a necessary deterrent, particularly in drug cases.
While the proposal is seen by some legal experts as a progressive step, it remains contentious at home. Critics fear it may weaken deterrence, while supporters argue it aligns with global human rights standards and alleviates systemic pressure on Vietnam’s justice infrastructure.
Reuters has reported Việt Nam's Ministry of Science and Technology has directed telecommunications providers to block the messaging app Telegram, citing its failure to cooperate in addressing alleged criminal activities conducted via the platform. The directive, issued on May 21, mandates that service providers implement measures to prevent Telegram's operations and report back by June 2.
Authorities allege that approximately 70% of the 9,600 Telegram channels in Việt Nam disseminate poisonous and bad information, including anti-state content and materials linked to reactionary activities. Additional concerns involve the sale of user data, drug trafficking, and associations with terrorist groups.
Telegram expressed surprise at the government's decision, stating that it had responded to legal requests from Việt Nam in a timely manner and was processing a formal notice received from the authorities on the morning of May 24. As of that date, Telegram remained accessible in Việt Nam.
This move aligns with Việt Nam's broader efforts to tighten control over digital platforms. New regulations enacted last year require social media companies to verify user identities and provide data to authorities, a policy that has drawn criticism from free speech advocates.
Telegram, which boasts nearly one billion users globally, has faced scrutiny in various countries over its content moderation practices. The platform's founder, Pavel Durov, was reportedly detained in France in 2024 over allegations related to extremist content on the app.
The ban coincides with an upcoming visit by French President Emmanuel Macron to Việt Nam, highlighting the country's ongoing challenges in balancing digital freedom with national security concerns
Luật Khoa Magazine reported on May 21, 2025 that Việt Nam's Prime Minister Phạm Minh Chính and Eric Trump, executive vice president of the Trump Organization, broke ground on a $1.5 billion luxury golf resort in Hưng Yên Province, near Hanoi. Hưng Yên is also the home province of Việt Nam’s Communist Party General Secretary Tô Lâm.
The development, a collaboration between the Trump Organization and Vietnamese developer Kinh Bắc City, will feature three 18-hole golf courses, five-star hotels, and upscale residential areas, spanning over 2,400 acres along the Red River.
The groundbreaking ceremony coincided with ongoing trade negotiations between Vietnam and the United States. Vietnam is seeking to avoid a proposed 46% U.S. import tariff by offering concessions, including increased purchases of American goods and enhanced enforcement against trade fraud.
Eric Trump expressed optimism about the project, stating, "These developments will be the envy of Asia and the world," and affirmed his commitment to frequent visits to Vietnam.
Additionally, Eric Trump is scheduled to meet with officials in Hồ Chí Minh City to discuss a potential Trump Tower project, signaling the organization's interest in expanding its presence in Vietnam.
The Trump Organization's expansion into Vietnam reflects the country's growing appeal as a destination for luxury tourism and foreign investment, even as it navigates complex trade relations with the U.S.
From the New York Times, Việt Nam fast-tracked a $1.5 billion Trump golf resort by bypassing legal procedures, prompting fears of land loss among locals and raising concerns over political favoritism. Officials cited “special attention” from President Trump as justification, blurring lines between U.S. diplomacy and private business interests.
On May 21, Việt Nam’s National Assembly voted unanimously—449 out of 449 deputies in attendance—to pass Resolution 199, officially shortening the term of the current 15th National Assembly and local People's Councils (2021–2026) by three months. Their terms are now expected to conclude in early April 2026.
The 16th National Assembly election, covering the 2026–2031 term, is scheduled for March 15, 2026. This marks a notable shift from Vietnam’s usual electoral timeline, which typically sees elections in May and the new term beginning in July.
Alongside the election resolution, the National Assembly also approved a state budget package of over 80 trillion dong (US$ 3.1 billion). The funds will support the restructuring of state institutions, implementation of tuition-free education policies, and acceleration of digital transformation efforts.
During the same session, lawmakers debated key aspects of the proposed constitutional amendments. One of the most discussed issues involved the legal designation of political–social organizations—such as trade unions and youth unions—and their relationship with the Vietnamese Fatherland Front, (Mặt trận Tổ quốc Việt Nam) a powerful Communist Party organization.
Many delegates argued against labeling these organizations as “subordinate” to the Front, citing their independent charters and relatively autonomous operations. They warned that such wording implies a top-down relationship that could undermine the voluntary, federated nature of these associations.
Some also questioned whether it is appropriate to list specific organizations—particularly the Việt Nam General Confederation of Labour, which currently has a dedicated clause—in the Constitution.
The constitutional review committee has requested further clarification on the legal and organizational status of Fatherland Front affiliates.
In a bid to avert a looming 46% U.S. tariff on its exports, Vietnam has pledged to address trade fraud and reduce its significant trade surplus with the United States. During a recent visit to Washington, Trade Minister Nguyen Hong Dien met with U.S. Commerce Secretary Howard Lutnick and several senators, expressing Vietnam's commitment to combating illegal transshipment and promoting fair trade practices.
Vietnam is also advocating for its recognition as a market economy, arguing that it has implemented sufficient economic reforms to warrant the status change. Currently classified as a non-market economy by the U.S., Vietnam faces stricter trade regulations. The Southeast Asian nation emphasizes that resolving these issues would benefit both countries by fostering more balanced and sustainable bilateral trade.
Under Decree 104/2025, effective July 1, the Vietnamese government has mandated that all state-run notary offices be converted into private notary offices or dissolved by December 31, 2028. This move aligns with the country’s push to privatize public services and streamline state units, as outlined in Resolution 19-NQ/TW (2017) and the amended Notarization Law (2024). Public notary offices, currently under provincial Departments of Justice, will be phased out nationwide. According to the Ministry of Justice, 10 provinces have already completed the transition or dissolution process.
On May 20, Vietnam’s Ministry of Public Security proposed amending the Criminal Procedure Code to allow commune-level police chiefs or deputies to initiate and investigate criminal cases involving 42 offenses with maximum penalties of up to seven years in prison. This authority would apply only to mid-level or higher investigators from provincial police departments,chosen by their superiors. The proposal aligns with government efforts to streamline administrative structures by removing the district level and redistributing functions to provinces and communes, aiming to improve the efficiency in handling local cases.
On May 16, police in Thái Bình Province recommended prosecuting 42 individuals in an extortion case linked to the Vietnam Urban and Environment Magazine. Former editor-in-chief Đồng Xuân Thụ is accused of directing reporters to publish exposés on violations by businesses, and then pressuring them into sponsorship contracts or payments to remove the articles. Between 2017 and 2023, Thụ and his team allegedly extorted over 5 billion
At a National Assembly session on May 16, Deputy Director of Đắk Lắk Police, Nguyễn Thị Xuân proposed increasing the maximum fine for traffic violations from 75 million dong to 200 million dong. She argued that current penalties lack a deterrent effect, especially for deliberate offenses such as driving against traffic. The proposal aims to strengthen enforcement and reduce repeat violations.
On May 19, police arrested and indicted Nguyễn Thúc Thùy Tiên, 27, Miss Grand International 2021, for “deceiving customers” under Article 198 of Việt Nam’s Penal Code. Tiên holds a 30% stake in the company distributing Kera vegetable candy, which sold over 135,000 units from December 2024 to March 2025, generating nearly 18 billion dong in revenue. Authorities allege the product’s ingredients were falsely advertised, and Tiên personally profited around 7 billion dong. She reportedly tried to conceal her shareholder status by signing a brand ambassador contract prior to her indictment.
The Economist/May 22
“Fifty years ago the last Americans were evacuated from Saigon, leaving behind a war-ravaged and impoverished country. Today Saigon, renamed Ho Chi Minh City, is a metropolis of over 9m people full of skyscrapers and flashy brands. You might think this is the moment to celebrate Vietnam’s triumph: its elimination of severe poverty; its ranking as one of the ten top exporters to America; its role as a manufacturing hub for firms like Apple and Samsung. In fact, Vietnam has trouble in store. To avoid it—and show whether emerging economies can still join the developed world—Vietnam will need to pull off a second miracle. It must find new ways to get rich despite the trade war, and the hard man in charge must turn himself into a reformer.”
Fulcrum/Phan Xuan Dung/May 22
“China, the most upstream country, has the largest installed hydropower capacity in the Mekong basin, operating 12 mainstream and 95 tributary dams. Its dam development has been largely unilateral, undertaken without consultation with the Lower Mekong countries. China’s hydropower expansion has also accelerated downstream dam construction in three key ways. First, its dam cascade has altered the Mekong’s natural flow by releasing more water during the dry season and holding back water during the wet season, effectively providing more consistent water availability. This has made downstream run-of-river dams more economically viable by allowing for reliable year-round power generation. Second, China’s successful hydropower projects have provided a model for downstream countries, particularly Laos, to justify their own dam construction as a means of rapid economic growth. Third, Chinese state-owned power corporations have become major investors in downstream Mekong dam projects, particularly in Laos and Cambodia.”
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