The government has gone to great lengths to assure foreign investors that the supply will be adequate this year, however, moves to eek out support from foreign investors in reducing their power consumption seems to suggest otherwise–Just weeks ago, it was reported that Apple supplier Foxconn had been asked to curtail its power usages by 30 percent in anticipation of power shortages…

Vietnam think-tank finds 5.85 percent GDP growth more likely that 6.5 percent target

the-shiv June 22, 2024

This is in line with the growth outlooks of Maybank Securities and the International Monetary Fund which both forecast GDP growth of 5.8 percent back in April. The Asian Development Bank, however, has been slightly more optimistic forecasting 6 percent and Singapore’s United Overseas Bank has been even more so, forecasting 6.4 percent growth for Vietnam this year…

Vietnam floats corporate income tax cuts for small-micro businesses

the-shiv June 22, 2024

Of note, the draft amendments to the Law on Corporate Income Tax do not seem to make a distinction between local and foreign firms. That being the case, foreign-owned small businesses–cafes, bars, gyms, and what not–could also benefit from these changes if passed. That said, there does not seem to be a timeline for a decision as to whether these changes will be approved and go ahead…

Vietnam maintains position on US currency manipulator Monitoring List

the-shiv June 22, 2024

Of note, the foreign currency criteria only addresses purchasing activity but not selling activity. Vietnam, however, has been dipping into its foreign currency reserves in order to stop the dong from devaluing since April… This speaks to Vietnam’s motives in the way it manages its currency, in that it does not necessarily appear to be trying to gain an unfair advantage in international trade even if its place on the Monitoring List might suggest otherwise…

Vietnam to consider nuclear power to meet net-zero commitments

the-shiv June 21, 2024

Nuclear power in Vietnam has been floated before. In 2006, the government announce plans to have a nuclear power plant online by 2020 and this was followed a few years later by official plans for nuclear power plants in southern Vietnam in Ninh Thuan and Khanh Hoa provinces. These were, however, shelved in 2016 in favour of gas and coal on the back of lower demand projections…

Vincom Retail to add 6 new malls in Vietnam in 2024

the-shiv June 21, 2024

Vincom Retail’s new malls align with a positive outlook for Vietnam retail space rentals. According to a CBRE market report released in May, in the first quarter of 2024, rental prices showed a steady increase per square meter, for ground/first floor spaces in non-CBD areas in Hanoi and Ho Chi Minh City, from US$30 and US$51 to US$30.6 and US$53.3, respectively…

Vietnam News Roundup: June 14 to June 20

the-shiv June 21, 2024

This week’s Vietnam news roundup covers the latest news including Putin’s most recent trip to Hanoi, the latest in State Bank efforts to keep the dong from devaluing, the two Vietnam gambling websites that are set to sponsor two English Premier League teams next season, the latest on Vietnam’s attempts to get the local gold price down, changes to the Special Consumption Tax including adding sugary drinks and increasing the tax on alcohol to 100 percent, and more…

Gambling in Vietnam: Foreign Investor Quick Read 2024

the-shiv June 20, 2024

Gambling in Vietnam is illegal but that doesn’t stop a sizable amount of betting occurring. This tends to peak around major sporting events. Recognising that this might be a problem, or perhaps that Vietnam is missing out on millions of dollars worth of tax revenue, there have been recent moves to try to legalise the practice. In this light, this cheat sheet runs through how gambling works in Vietnam, who can gamble, and the key regulations governing gambling that is already permitted…

China’s Chery to assemble electric vehicles in Vietnam

the-shiv June 20, 2024

Vietnam’s electric vehicle market holds promise for foreign car manufacturers. Of note, electric car buyers are eligible for incentives such as exemption from registration fees for the first three years and a 50 percent fee reduction for the subsequent two years, per Decree 10/2022/NĐ-CP. Nevertheless, foreign car manufacturing firms may encounter challenges related to EV charging infrastructure and electricity supply shortages in Vietnam. These hurdles could potentially hamper manufacturers in expanding their market presence and sales…

Vietnam credit growth on the rise but still well below target

the-shiv June 20, 2024

Of note, at the end of June last year, credit growth was sitting at about 4.73 percent. It also failed to climb much higher for most of the rest of the year until November when banks started to push consumer credit through aggressive marketing campaigns–credit growth jumped, as a result, from 7.41 percent at the end of October to 13.5 percent by the end of the year…

Vietnam could see net outflow of 300 high-networth individuals this year: report

the-shiv June 20, 2024

Whereas the report says this is being driven by a search for greater opportunities, it should be noted that there are also push-factors driving migration abroad for wealthy Vietnamese. Prosecution of corrupt officials and business persons, whether legitimate or not, have become more common in the last couple of years. Wealthy Vietnamese that may be wealthy because they have acted in a not entirely above board way, could be looking for somewhere to flee should they find themselves in the crosshairs…

Real estate crowdfunding program halted not long after beginning in Vietnam

the-shiv June 20, 2024

In the current economic climate, with deposit interest rates at historic lows, the local gold price much higher than the world gold price, and US dollars prices cresting all-time highs against the local currency, the need for a diversification of investment vehicles for Vietnamese consumers is becoming increasingly clear. Furthermore, Vietnam’s real estate market has been struggling to access capital on the back of a myriad of challenges the industry has faced in the past two years or so. In this context, this real estate crowdfunding program had a lot of potential…

Taiwanese ETF in Vietnam net-withdraws US$95 million from HoSE so far this year

the-shiv June 20, 2024

This net selling momentum hasn’t been limited to Fubon. Foreign investors in general have been net sellers in the Vietnamese market, of late. From the beginning of 2024 until June 17, foreign investors hadhave net sold US$1.7 billion worth of Vietnamese securities listed on HoSE…

The Impact of the Ukraine War on Vietnam’s Economy: Unpacked

Mark Barnes June 19, 2024

The Ukraine War has not been kind to Vietnam’s economy. Tourism, trade, and foreign direct investment have all taken a direct hit, not to mention the indirect impacts of the greater global economic challenges the war has precipitated. With this in mind, and the President of Russia due to land in Hanoi later today, this article looks at how the Ukraine War has impacted Vietnam’s economy.

China’s Huawei considering Vietnam data centre but no commitment yet

the-shiv June 19, 2024

Data centres in Vietnam are becoming more and more common. This is a result of a broader move to digitise the economy as well as several key regulations that require businesses to store the data of Vietnamese users in Vietnam. That said, there are a number of challenges for the sector, not least of which is Vietnam’s somewhat inconsistent electricity supply…

Top 10 life insurance firms in Vietnam dominated by foreign firms

the-shiv June 19, 2024

Of note, Vietnam’s insurance sector has struggled over the last year or so with a number of high-profile instances of consumers claiming they were duped into purchasing insurance products.That said, it is slowly recovering with Vietnam Report’s survey results finding 45.5 percent of industry respondents expect the industry to grow by around 5 to 10 percent this year…

Key Apple supplier Foxconn to increase investment in Vietnam by US$52.6 million

the-shiv June 19, 2024

Manufacturing in Vietnam, particularly in electronics, has been growing rapidly. Though notably there was a slight downturn last year, things have picked up again in 2024. Exports of computers, electrical products and parts thereof had reached US$5.5 billion by the end of May representing an increase of 31.6 percent over the same period a year earlier…

New Vietnam–Manila direct flights highlight growing south-south integration

the-shiv June 19, 2024

This is welcome news for tourism in both countries. Of note, in the first five months of this year, Vietnam welcomed 85,936 tourists from the Philippines, an increase of 54.1 percent over the same period last year. This is in line with growing interregional travel which is visa free for members of ASEAN states. Filipino citizens, for example, can enter Vietnam visa free for up to three weeks. This latest announcement could signal a significant boost to these numbers…

Due date for made in Vietnam car excise tax payments pushed back to November

the-shiv June 18, 2024

Special Consumption Tax is paid by the consumer at the point of purchase of the vehicle to the dealership who then holds on to those funds to pass on to the Tax Department when they fall due. By delaying these payments, this policy acts like a short term loan to these operations. This has been a popular means of supporting local enterprises over the past few years as the car market has struggled through a broader economic downturn…

Vietnam suspends priority customs treatment for Panasonic

the-shiv June 18, 2024

Article 45 allows firms approved to receive priority customs treatment to submit incomplete documents when exporting or importing goods. These firms, however, must submit completed documentation within the following 30 days…