Man City sent a strong squad of talented young players to the tournament, including those in England's U16 team - Dante Headley, Leke Drake and Oliver Tevenan.
Headley was once called the best English young player born in 2007, while Drake was once valued at nearly $600,000 when he was just 13 years old. Regan Heskey, the son of former England striker Emile Heskey, was also in the team.
PVF also sent the strongest squad to the tournament, with strikers Nguyen Le Phat, Phung Quang Tu and Le Minh Nhat.
In the Tuesday match, Vietnam's Doan Huy Long scored at the beginning of each half while Man City got one back thanks to Jose Roca.
The Shanghai Rising Star Champions Cup is a tournament for players born in 2007 and later, taking place in China from Aug. 28 to Sept. 3, with eight participating teams divided into two groups. Group A includes Man City, Ulsan Hyundai (South Korea), PVF and Aspire (Qatar). Group B has Shanghai, Cerezo Osaka (Japan), Tottenham Hotspur and FC Porto.
Man City's youth teams are highly rated, as they have held the U18 and U23 championships for three consecutive seasons. Many Premier League stars like Phil Foden, Kieran Trippier and Jadon Sancho once played for the Man City U16 team.
In addition to Man City, Tottenham are also highly rated and have just won the U17 England championship.
In the opening match, PVF lost 1-2 to Ulsan Hyundai on Monday and Man City drew with Aspire 1-1.
PVF will play the final match of the group stage against Aspire on Thursday.