Vietnam’s economy has been growing rapidly for the better part of three decades. This section broadly tracks news media coverage of Vietnam’s economic development including targets, forecasts, imports and exports, and foreign investment.

Vietnam coffee exports up 5.5 percent August over July

the-shiv September 15, 2024

Vietnam’s coffee exports climbed by 5.5 percent in August over July from US$381.2 million to US$402.2 million. Vietnam’s coffee exports for the year now stand at US$4 billion which is an increase 35.6 percent over the same period last year. That said, Vietnam has seen a decline in the volume of coffee exports of 12.1 percent year-on-year.

Cross-border service providers see jump in tax payments in Vietnam year-on-year

the-shiv September 14, 2024

Cross-border service providers that do not have an office in Vietnam have been required to pay tax under Vietnam’s Foreign Contractor Tax regime since 2021. Of note, most of these firms are actually required to open local offices per the Law on Cyber Security, however, few of them have with foreign firms in local offices set to “bear stricter supervision and satisfy more requirements,” according to the Ministry of Information and Communication…

Foreign Contractor Tax in Vietnam 2024

the-shiv September 13, 2024

Foreign Contractor Tax (FCT) is a tax regime in Vietnam that applies to foreign organizations and individuals (referred to as “foreign contractors”) who do not have a permanent establishment in Vietnam but earn income from providing services, supplying goods, or conducting business activities in Vietnam. The FCT combines both Value-Added Tax (VAT) and Corporate Income Tax (CIT) obligations for these foreign entities. The FCT is commonly applied to foreign contractors operating in sectors such as construction, telecommunications, digital services, and e-commerce.

Vietnam imports reach US$33.7 billion in August, down .4 percent vs July

the-shiv September 12, 2024

Of note, Vietnam’s role in manufacturing supply chains is mostly in the final stages of assembly and packaging which is often performed using imported parts and components. The slight fall in imports month-on-month could therefore be indicative of a future decline in exports. That said, it is only data from one month–July’s imports were up 11.2 percent over June and one data point does not a pattern make. That said, it may still be worth keeping an eye on…

Vietnam steel pipes and tubes to face dumping duties in India

the-shiv September 12, 2024

Of note, India also initiated an anti-dumping probe, at the request of the Indian Steel Association, back in August, into hot rolled coiled-steel from Vietnam. With this in mind, this latest piece of news may be an augur of things to come for Vietnam’s steel industry…

Vietnam exports reach US$37.8 billion in August, up 4.3 percent vs July

the-shiv September 12, 2024

This data sita along side an increase in Vietnam’s Industrial Production Index of 2 percent in August over July and a Purchasing Managers’ Index in a growth phase for the fifth month in a row, speaks to further improvement in Vietnam’s manufacturing and processing industry after a challenging 2023…

Vietnam Exports Tracker: August Update [data set]

the-shiv September 11, 2024

Vietnam’s exports hit US$37.8 billion in August bringing the country’s total exports for the year to US$265.4 billion, an increase over 2023 of 15.9 percent. This growth was buoyed by double-digit increases in exports of computers, electrical products, spare-parts and components thereof; as well as high single digit growth in textiles and garments and wood and wooden products.

Vietnam Imports Tracker: August Update [data set]

the-shiv September 11, 2024

Vietnam’s imports hit US$33.7 billion in August bringing the country’s total imports for the year to US$246.9 billion, an increase over 2023 of 18.1 percent. This growth has been buoyed in arge part by increases in imports of machine, equipment, tools and instruments; fabrics; and plastics.

Capital Gains Tax in Vietnam 2024

the-shiv September 10, 2024

Capital gains tax in Vietnam–more commonly referred to by its acronym CGT–is a tax on profits earned from the sale or transfer of assets, such as securities, real estate, or capital in a business. The tax applies to both individuals and corporations, but the rates and methods of calculation vary depending on the type of asset and the entity involved. Here are the key details.

Private sector CEOs in Vietnam on almost double SOE counterparts

the-shiv September 9, 2024

Notably, earlier this year the Prime Minister of Vietnam, Pham Minh Chinh, suggested SOEs should consider foreigners for executive positions. He went on to say that better remuneration packages and higher salaries would be key. This latest development adds some context to the Prime Minister’s remarks and suggests that improvement in remuneration would need to be sizable.

Vietnam’s August Consumer Price Index stable at 4.04 percent

the-shiv September 6, 2024

Vietnam’s Consumer Price Index slowed in August over July recording an increase of 3.45 percent compared to July’s 4.27 percent. Overall CPI remained steady at 4.04 percent safely within the government’s target range for the year of between 4 and 4.5 percent. Core inflation, meanwhile, saw an increase of 2.71

Vietnam CPI Tracker: August Update [data set]

the-shiv September 6, 2024

Inflation has been relatively low in Vietnam compared to other parts of the world but this is largely due to government price controls. These lower prices, however, have come at a cost. Input prices, particularly in input dependent industries have risen, however, businesses in many industries have been unable to raise their pricing to compensate. As a result, many have seen their profit margins squeezed while others have had to run at a loss…

Cheap meat imports continue to create discontent in Vietnam

the-shiv September 3, 2024

Cheap imported meats have become an increasing concern among local meat producers with similar articles appearing in state media every other week. This narrative is largely growing in prominence on the back of a number of free trade agreements Vietnam has signed on to that are bringing down import tariffs on meat products. This has further been exacerbated by challenges in the local meat industry, particularly repeated outbreaks of African Swine Fever…

Japan’s Toyo Solar limits Vietnam solar panel production on trade investigation

the-shiv August 30, 2024

Japan’s Toyo Solar is reducing its solar panel output at its Vietnam-base affiliate Vietnam Sunergy from 2.5 gigawatts this year to just 1.9 in response to a US trade investigation into solar panels from Vietnam, the company has said in a press release. The company goes on to say that it will wait for preliminary investigation results before making further moves…

US announces September Vietnam trade mission to boost agricultural exports

the-shiv August 29, 2024

Of note, the US was slated to benefit from a range of tariff reductions on agricultural goods in Vietnam as part of the Trans-Pacific Partnership agreement. It was, however, withdrawn by the Trump administration. This has put US agricultural producers on the back foot compared to other major agricultural producers like Australia and Canada in the Vietnam market…

Vietnam Court releases impact assessment of 2014 Bankruptcy Law

the-shiv August 29, 2024

For context, it is not unusual for Vietnamese firms in financial distress to try and hold out for as long as possible offloading assets and leaving bills unpaid for months at a time–note that a firm in Vietnam is not considered insolvent until its debts are more than 90 days past due. This can be off-putting for foreign firms doing business in Vietnam with respect to working with local firms–it increases risks and subsequently costs.

World Bank ups GDP growth forecast for Vietnam in 2024

the-shiv August 27, 2024

The World Bank has released its August 2024 Taking Stock Report in which it forecasts GDP growth in Vietnam of 6.1 percent. This was a significant bump from a forecast of just 5.5 percent in bank’s April Taking Stock Report…

Increase in Vietnam Value-Added Tax-exemption threshold under debate

the-shiv August 25, 2024

The outcome of this debate is unlikely to have any direct impact on foreign invested enterprises in Vietnam, it is, however, worth bearing in mind when considering in small business investments in Vietnam.

Slew of new US trade remedies cases announced against Vietnam exports

the-shiv August 22, 2024

This comes amid an increasing number of Chinese firms relocating at least part of their production south of the border in order to circumvent antidumping and countervailing duties in other parts of the world. That’s not to say, Vietnam is not-subsidising its own industries, with the US DOC finding earlier this year that government intervention in the market is beyond what is acceptable for it to be considered a market economy.

EuroCham exec says high attrition rates in Vietnam key challenge

the-shiv August 18, 2024

Of note, the average wage of factory workers in Vietnam is generally higher than most other industries. On top of those wages, factory workers are also entitled to a number of relatively standard entitlements…