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 ‘unlikely’ to see minimum wage hike in 2025

the-shiv August 12, 2024

Of note, the National Wage Council meets at least once a year to discuss the minimum wage in Vietnam. That said, the minimum wage does not necessarily rise every year. For example, during COVID minimum wage rises were put on hold. Similarly, as Vietnam’s economy struggled in 2023 minimum wage hikes were delayed until 2024…

Commerce’s Findings from Vietnam’s Non-Market Economy Review: Unpacked

Mark Barnes August 8, 2024

Last week, the United States Department of Commerce–the DOC–rejected Vietnam’s application to have its status as a non-market economy overturned. This came after a months-long review including thousands of pages of evidence and arguments, from both Vietnam and the United States, culminating in not just the aforementioned adverse findings but also a 284-page memorandum explaining the decision. This article breaks down the key points in said document.

Costa Rica recognises Vietnam as a market economy even if US doesn’t

the-shiv August 7, 2024

Of note, trade between Vietnam and Costa Rica is relatively small. So far this year, the Central American nation has not featured in Vietnam’s customs data. That said, state media has been pushing the number of countries that consider Vietnam a market economy as a key reason why it should be upgraded by the US. With this in mind, it’s likely there will be many more announcements like this from smaller countries…

How to Export Coffee from Vietnam: Ultimate Guide 2024

the-shiv August 6, 2024

Vietnam is among the world’s biggest coffee exporters. In 2022, Vietnam exported coffee to the tune of 1.78 million tons second in volume only to Brazil. This brought the burgeoning Southeast Asian nation either US$3.2 billion or US$4 billion, depending on who you ask. Either way, it’s a huge amount

How African Swine Fever is Reshaping Vietnam’s Pork Market

Mark Barnes August 5, 2024

Vietnam has a bad case of African Swine Fever that it just can’t seem to shake. This is fundamentally reshaping Vietnam’s pork market, which has seen a huge increase in pork imports in recent years. This article looks at how this all started, what’s happening now, and what might happen next.

EU standards warnings on Vietnam produce exports jump

the-shiv August 4, 2024

This jump is in line with increased trade between the EU and Vietnam on the back of the European Union Vietnam Free Trade Agreement, commonly known as the EVFTA. Bu thought this agreement may have seen trade soar between the two partners it has also been somewhat challenging for Vietnam to implement. This is not just because of strict phytosanitary measures on produce entering the EU but a number of other stipulations in the agreement, particularly around workers rights.

Vietnam responds to Commerce finding on non-market economy review

the-shiv August 3, 2024

“If the US Department of Commerce had reviewed the records and practices in Vietnam objectively and fairly, it would have been able to acknowledge the fact that Vietnam is a market economy,” Vietnam’s Ministry of Industry and Trade has said in a statement.

Vietnam considers rolling back drink-driving penalties

the-shiv August 3, 2024

It is not clear what has driven the MPS to suggest these changes, however, it should be noted that the alcoholic beverage industry has repeatedly complained that enforcement of Vietnam’s strict drink driving laws has impacted sales significantly. In fact, Heineken cited the laws as one reason why it had to close a production facility in Vietnam’s Quang Nam province earlier this year.

Vietnam Purchasing Managers’ Index remains steady at 54.7: S&P Global

the-shiv August 1, 2024

S&P Global’s Vietnam Purchasing Managers’ Index recorded 54.7 points in July which was the same as in June. S&P Global says this was on the back of a ‘substantial rise’ in new orders. It does, however, note that to fulfil these orders firms relied largely on finished goods already on

India’s Adani considering Vietnam seaport, airports, thermal power investments

the-shiv August 1, 2024

Of note, Adani is currently invested in just two projects in Vietnam, a wind power plant and a solar power plant the latter of which has run into problems with poor infrastructure forcing the plant to curb power production back in 2022.

Is a Sugar Tax Right for Vietnam?

Mark Barnes July 31, 2024

A sugar tax has been on the cards for Vietnam for some time now and may be drawing closer to becoming a reality. It has, however, been met with broad push back from industry and industry groups. This article looks at the public debate around a possible sugar tax in Vietnam, the impact it might have, and what foreign-owned businesses should be mindful of in this context.

Dumping complaint received by European Commission RE: Vietnamese steel

the-shiv July 31, 2024

Trade remedies against Vietnam’s exports have increased significantly in recent years in large part due to Chinese firms using Vietnam as a thoroughfare to avoid tariffs on Chinese exports in other parts of the world. Electric bikes and solar panels, for example. It’s not clear that this is the case with HRC but if the EU finds as such it should not come as a surprise…

How is the EVFTA Working Out for Vietnam?

Mark Barnes July 29, 2024

On Thursday, Vietnam and the European Union will mark the fourth anniversary of the European Union Vietnam Free Trade Agreement or the EVFTA for short. This agreement has brought down tariff barriers and boosted trade but it hasn’t been without its challenges, some of which still persist. This article looks at how this landmark agreement has been implemented, the challenges it has faced, and the challenges it still faces…

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 to consume additional 2.56 million litres of soft drink by 2033

the-shiv July 20, 2024

Of note, Vietnam is currently debating adding soft drinks to the list of items subject to the Special Consumption Tax. In the most recent version of a revised SCT, the Ministry of Finance has included a ten percent tax on drinks with 5 grams or more of sugar per 100 millilitres. This legislation, however, is still in its draft stage…

World Bank maintains 5.5 percent GDP growth forecast for Vietnam

the-shiv July 17, 2024

This is broadly inline with projections from the IMF in which it forecast 5.8 percent growth back in April and a report from Vietnam’s Institute for Economic and Policy Research which found that Vietnam is unlikely to reach its GDP growth target of 6.5 percent by the end of the year. The institute’s Vietnam Annual Economic Report 2024 instead found that GDP growth is likely to come in around 5.85 percent…

Business confidence in Vietnam falls in second quarter: EuroCham

the-shiv July 15, 2024

The European Chamber of Commerce in Vietnam’s latest Business Confidence Index survey, has recorded a fall in business confidence of 1.5 points. The results reflect the responses of 212 survey respondents out of EuroCham’s 1,400 members…

Vietnam paper plates unfairly subsidised 237.65 percent: US Department of Commerce

the-shiv July 8, 2024

Five of the six firms investigated were found to be subsidised to the tune of 237.65 percent. Notably, four of these firms failed to respond to the DOC’s request for information at all, and one failed to provide all of the information requested. The sixth, Go-Pak Paper Products Vietnam, the only company to sufficiently engage with the DOC, was found to be subsidised by just 5.48 percent…

‘Limited investment support’ in Vietnam sees big name FDI go elsewhere: MPI

the-shiv July 4, 2024

This stems from the introduction of the Global Minimum Tax which has seen corporate tax incentives significantly diminished for firms operating in Vietnam. An alternative ‘investment support fund’ has been proposed, however, this is yet to be legislated. A December 2023 draft included financial support for training and reimbursements for research and development conducted in Vietnam…