This week’s Vietnam news roundup covers foreign trader stock market activity, bad debts, GDP targets, offshore wind developments, a new waste-to-energy plant in HCMC, soft drink market forecasts, and the latest developments in Vietnam’s quest to have its designation as a ‘non-market’ economy revoked by the US Department of Commerce, and more…

Taiwan electronics giant to manufacture Nintendo Switch gaming consoles in northern Vietnam

the-shiv July 27, 2024

This investment aligns with a broader trend of Taiwanese manufacturers diversifying their supply chains by expanding operations in ASEAN, especially into Vietnam. In addition to Foxconn, other Taiwanese electronics giants such as Pegatron, Compal, and Wistron have also established manufacturing facilities in the country…

Vietnam’s adds US$2.8 billion in registered FDI, July [data set]

the-shiv July 27, 2024

Vietnam added another 278 foreign direct invested projects to its 2024 tally in July, along with just over US$2.8 billion in additional capital commitments, according to data from Vietnam’s Ministry of Planning and Investment. The biggest gains were in manufacturing and processing which added 96 new projects and US$1.97 billion.

Foreign traders net-buy US$15.3 million of Vietnam stocks, Friday

the-shiv July 26, 2024

The Vietnam Stock Market Tracker provides a daily update of the latest developments in the stock market in Vietnam. This includes all of Vietnam’s most important indexes as well as the buying and selling activity of foreign traders, and the biggest gainers and losers for the day.

Vietnam C.bank supports dong with US$217.3 million in T-bills, Friday

the-shiv July 26, 2024

This Vietnamese Dong Tracker records the latest news and developments with respect to the local currency. It includes the current prices as well as State Bank of Vietnam monetary policy and open market operations including treasury bill issuances and interbank lending.

Vietnam credit growth reaches 6 percent to June

the-shiv July 26, 2024

Of note, last year, credit growth limits languished for the better part of the year. In October, however, when it became clear that the same 14 percent credit growth target would not be hit, Vietnam’s banks embarked on some very aggressive marketing campaigns. Rising bad debts in the first six months of this year, however, could suggest there were some quality issues with these loans.

Vietnam’s HCMC feels affordable housing crunch on high land, construction costs

the-shiv July 26, 2024

Notably, from 2018 to the third quarter of 2023, the land price for sale in the South and the North increased by 71 percent and 54 percent, respectively. On average, in urban areas, land costs account for about 10 percent of the cost of apartments and 20 to 30 percent of the cost of townhouses…

US logistics, supply chain management firm opens Vietnam office

the-shiv July 26, 2024

Of note, in 2023 Vietnam’s transportation and storage sector surpassed VND 502.56 trillion or US$19.807 billion, constituting 4.92 percent of the country’s total GDP. This could represent broad opportunities for foreign firms, however, foreign ownership limits in logistics services can be very restrictive. For example, foreign firms are prohibited from owning more than 34 percent of an airline…

Vietnam bad debt hits 6.9 percent

the-shiv July 25, 2024

Of note, pursuant to amendments to Circular 39 made in June, loan applications for less than VND 100 million or about US$4,000 no longer need to detail a plan for the borrowed funds. Also back in November and December of last year, to meet annual credit growth targets, Vietnam’s banks embarked on some pretty aggressive lending campaigns that saw credit growth jump considerably but in what looked like mostly consumer loans. It could be that some of these loans are now turning bad…

Vietnam market-economy review outcome postponed to August

the-shiv July 25, 2024

Of note, Vietnam’s efforts to be redesignated a market economy for trade remedies purposes has been met with quite a bit of resistance in the United States. Its case for redesignation is also pretty shaky in a few areas, currency convertibility and government, for example. As such it’s not really clear which way the DOC might fall…

Vietnam targeting GDP CAGR of 10.18 percent to 2030

the-shiv July 25, 2024

Vietnam’s GDP is currently US$4,620 according to IMF data which would mean Vietnam’s GDP would need to grow at a compounded annual growth rate–a CAGR–of 10.18 percent. For comparison, in the last five years Vietnam’s GDP has grown on a CAGR of just 6.08 percent…

Vietnamese conglomerate kicks off construction of waste-to-energy plant in HCMC

the-shiv July 24, 2024

Of note, Vietnam currently has 15 waste-to-energy plants under construction. However, only three facilities are operational, processing approximately 10 percent of the country’s total waste. The country discharges roughly 60,000 tons of household waste daily, with an average annual increase of 6 percent projected between 2021 and 2030…

What Does a Devalued Yen Mean for Vietnam?

the-shiv July 24, 2024

Earlier this year the Japanese yen hit a 38-year low against the greenback and it’s currently sitting about 15 percent lower now than it was at the start of the year. Similarly, the Vietnamese dong took a big fall but has been propped up by the State Bank which has by extension kept the local currency higher against the Yen too. This article looks at what that might mean for Vietnam…

Vietnam PM pushes car registration reduction, despite legal risks

the-shiv July 23, 2024

Of note, concerns were raised by the Ministry of Finance last week, that a car registration fee reduction policy that applies only to locally made vehicles could contravene the European Vietnam Free Trade Agreement and Vietnam could be at risk of being sued. This was reportedly raised by the EU as a potential problem earlier this year…

Offshore wind in Vietnam should to be developed by state first: MoIT

the-shiv July 23, 2024

Of note, the Power Development Plan 8–known in short as the PDP8–that was approved last year, was embedded with a target of six gigawatts of offshore wind power by 2030. The implementation plan for the PDP8 released earlier this year, however, did not list a single offshore wind power project…

Vietnam construction firm posts record quarterly profit, but not from construction

the-shiv July 23, 2024

A closer look, however, reveals that most of this profit stemmed from financial activities, not core construction operations. Specifically, the firm booked nearly VND 503 billion or US$19.86 from the liquidation and sale of fixed assets. Additionally, financial revenue doubled year-over-year to US$1.82 million due to the sale of several of its subsidiaries and affiliated companies. Of note, back in June, Hoa Binh announced that it would divest entirely from loss-making affiliated companies…

Korean ratings firm enters Vietnam’s credit rating market

the-shiv July 23, 2024

This is part of a wider push to improve the quality of Vietnam’s corporate bond market after a number of high profile cases of fraud were revealed. For example, in 2022, Hanoi-based developer of luxury apartment projects, Tan Hoang Minh, was alleged to have defrauded investors of up to VND 10 trillion though corporate bond issuances…

US firms Qorvo, Cadence launch chip design course in Vietnam

the-shiv July 22, 2024

This cooperation in training semiconductor chip human resources between the U.S. and Vietnam follows on from a commitment made by The US president during his visit to Hanoi in September last year. It also fits with Vietnam’s ambitions to become a hub for semiconductor chip manufacturing companies, although a lack of skilled labour has proved problematic…

Vietnam’s footwear exports recovering on back of lower tariffs

the-shiv July 20, 2024

The surge in exports has been largely driven by the elimination of import duties through various free trade agreements. When the EVFTA came into effect in 2020, for example, tariff lines on Vietnamese footwear exported to the EU reduced by 37 percent, with any remaining tariffs to be eliminated progressively by 2027…

Serviced apartment supply in Vietnam capital up on higher FDI inflows

the-shiv July 20, 2024

This is, in part, because FDI inflows boost into the capital city, according to Savills. Of note, in the first half of 2024, Hanoi had the fourth highest inflow of FDI in Vietnam recording US$1.18 billion, accounting for 7.78 percent of the country’s total registered FDI…