Of note, Central Retail’s new mall aligns with the expansion plans of other major players in Vietnam’s retail industry, such as Japan’s Aeon, and South Korea’s Lotte Retail, as well as homegrown Masan, and Vincom Retail, which owns and leases-out a range of commercial spaces around Vietnam. It intends to open six new shopping malls in 2024. This is partly due to a positive outlook for Vietnam’s retail space rentals and the significant development potential of the retail market…

Vietnam statistics office finds second quarter GDP growth at 6.93 percent

the-shiv June 30, 2024

The GSO estimates that the agriculture, forestry and fishery sector grew by 3.34 percent, the industrial and construction sector grew by 8.29 percent, and the service sector grew by 7.06 percent. This is broadly reflected in Vietnam’s top ten individual-item exports in the first five months of this year which registered an average growth rate of 14.9 percent compared to 2023…

Vietnam Value Added Tax cut extended to end of the year

the-shiv June 30, 2024

The VAT is normally 10 percent, however, it was reduced during COVID as an economic stimulus measure to 8 percent. But Vietnam’s economic recovery was in large part thwarted, much like in many other countries, by the Ukraine War and the rising fuel prices that came with it. This has led to extensions of the aforementioned VAT cut for the better part of the last four years…

Singapore firm adds 196 MW to Vietnam renewable energy to portfolio

the-shiv June 30, 2024

Of note, Vietnam ranked second in attracting FDI in renewable energy among developing economies from 2015 to 2022, according to the UN Trade and Development World Investment Report 2023. Key foreign investors in renewables in Vietnam are GE Renewable Energy, Copenhagen Infrastructure Partners, and Enterprize Energy…

Vietnam property market reform laws’ start date moved up to August 1

the-shiv June 30, 2024

Whereas some elements of these laws were already in force, the bulk of the reforms contained therein were not due to kick-in until January 2025. These laws, however, have been slated as a cornerstone of the recovery of Vietnam’s real estate industry which, although showing some signs of improvement, is still floundering. Among the reforms are changes that should open up the local real estate market for Vietnamese living abroad as well as a simplified dispute resolution process…

Vietnam’s adds US$4.1 billion FDI, June [data set]

the-shiv June 29, 2024

Vietnam added another 311 foreign direct invested projects to its 2024 tally in June, along with almost US$4.1 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 100 new projects and US$3.3 billion…

Vietnam Airlines pursuing loan payment deferral from National Assembly

the-shiv June 29, 2024

Whereas there may be an argument to be made for supporting the national carrier in events outside of its control, in the current circumstances there should be some pause for thought. That said, the airline is a huge operation with lots of moving parts, lots of ancillary businesses that rely on its continued operation, and lots of employees that rely on the airline for their paycheck–it’s unlikely the National Assembly will deny the airlines’ request…

Vietnam consumers hold off on buying new cars waiting for cut in registration fees

the-shiv June 29, 2024

For some context, registration fees can vary between provinces, however, the highest it can be, per Circular 229, is VND 20 million or about US$786. With a 50 percent discount that’s VND 10 million or about US$393. With a new car running at around VND 300 million to VND 500 million this reduction in registration fees is a drop in the bucket. In this context, one reading of this might be that correlation does not necessarily mean causation. It could also be, however, that the love for a good discount in Vietnam is not always entirely rational…

Taiwanese Apple supplier Wistron set to increase investment in Vietnam

the-shiv June 29, 2024

Driven by the US-China trade war and political tensions, Taiwanese tech companies like Wistron have been diversifying out of China and increasing their investments in Southeast Asia, particularly Vietnam. Other major Taiwanese Apple suppliers like Foxconn and Pegatron, for example. There are a number of reasons for this…

Porsche + Singapore EV charging solution provider to build charging network in Vietnam

the-shiv June 28, 2024

Notably, Vietnam’s EV charging network is mostly owned by VinFast, a subsidiary of Vietnamese conglomerate Vingroup. The firm has already developed more than 150,000 EV charging ports nationwide but currently restricts access exclusively to its own EV users. The participation of Charge+ in expanding the charging network for other electric vehicle brands in Vietnam could help reduce difficulties for Chinese EV producers entering the Vietnamese market…

Vietnam News Roundup: June 21 to June 27

the-shiv June 28, 2024

This week’s Vietnam news roundup covers the latest in US dollar Forex spending, Vietnam’s position on the US currency manipulator watchlist, garment and textile manufacturing performance, isotopic testing challenges for Vietnam’s garment industry, Vietnam’s ratification of the UK’s ascension to the CPTPP, the latest foreign trader stock market investment numbers, and more…

Vietnam stock Index could increase 35 percent before end 2024: Finnish investment fund

the-shiv June 28, 2024

It’s worth noting that a lot of Vietnamese firms are carrying a lot of debt and there is increasing pressure on the local currency that is only being kept at bay through issuing treasury bills and spending US dollar reserves which are being run down pretty quickly. The point being, that It wouldn’t take much for the State Bank to raise interest rates and if that were to happen it would likely do some pretty hefty damage to the VN-Index…

Minimum Wage in Vietnam 2024: Your Questions Answered

the-shiv June 28, 2024

Vietnam’s minimum wage is an attractive drawcard for businesses in a broad range of industries. Among the lowest in Southeast Asia, foreign firms may be able to realise real value by making the most of this low-cost labour. That said, the minimum wage should not be conflated with the average

Vietnam bonds outstanding lowest in Southeast Asia: ADB data

the-shiv June 27, 2024

Vietnam had just US$115 billion worth of outstanding government, corporate, and central bank bonds, in the first quarter of this year, according to the Asian Development Bank’s Asia Bond Monitor report for June. This is the lowest value of outstanding bonds among other key Southeast Asian economies. This could be a sign of economic prudence, however, it could also be a sign that Vietnam is under investing in its own development. That being the case, this could threaten Vietnam’s competitive edge in the region further down the track…

IMF wraps up Vietnam mission, key takeaways from team lead statement

the-shiv June 27, 2024

The International Monetary Fund has wrapped up a four day consultation in Vietnam led by the intergovernmental body’s Paulo Medas. The consultation included meeting with the State Bank, Prime Minister, Ministry of Finance and a handful of other government agencies. A statement from Medas at the conclusion of the consultation has several noteworthy points, including…

Vietnam May corporate bond payments delayed, amid ongoing real estate capital challenges

the-shiv June 27, 2024

Most of these companies were in the real estate sector which fits with a broader narrative around the struggles of managing capital in the sector in recent years. For example, foreign investment has declined and consumer prepayments for residential real estate properties have dried up. This is part of much bigger challenges facing real estate in Vietnam that have been ongoing for years. This latest tranche of delayed bond payments would suggest it may go on a while longer too…

German adhesives giant opens second application center in Vietnam

the-shiv June 27, 2024

This new application center aligns with a trend of foreign businesses opening new factories in Vietnam. Over the past two years, several big names, such as Foxconn, LEGO, Amkor Technology, and PepsiCo, have all launched new factories in Vietnam, with a positive impact on Vietnam’s industrial land market, even amidst a slowdown in the real estate market more broadly…

Nuclear Power in Vietnam: Unpacked 2024

the-shiv June 26, 2024

During a state visit by the president of Russia to Vietnam last week, Vietnam’s Prime Minister told the Russians that Vietnam would consider nuclear energy as a means of meeting the net-zero 2050 commitment it made at COP26. Indeed, Vietnam needs more low-emissions electricity, but is nuclear power really a plausible solution?

Vietnam Stock Exchange reports first fall in profit since inception

the-shiv June 26, 2024

Last year was not a great year for the Vietnam Stock Exchange. Interest in the market as a means of raising capital was lacklustre with just three IPOs completed by the end of November worth just US$7 million. Furthermore, foreign investors exited the market to the tune of over US$1 billion as greater global uncertainty weighted heavily on the local bourse.

Vietnam’s Pacific Airlines returns to the sky, sheds budget carrier image

the-shiv June 26, 2024

Of note, aside from keeping Pacific Airlines’ aviation licence, which requires the airline to have aircraft, it’s not clear why Vietnam Airlines is keeping Pacific Airlines alive. As a budget carrier it made some sense as competition to Vietnam’s biggest budget carrier Vietjet. These recently announced upgrades to Pacific Airlines, however, look to put the carrier in the mid-range segment which would make it direct competition with its parent company…