Vietnam news in English for foreign firms doing business in Vietnam

The S&P Global Vietnam Purchasing Managers’ Index has recorded a 5.1 point fall in September, from 52.4 in August to 47.3 a month later, according to a press release from the firm. This moved the index below the 50-point break even mark which means that Vietnam’s manufacturing industry, according to the index, contracted in September.

Should Vietnam Be Worried About Indonesia Joining the CPTPP?

the-shiv October 1, 2024

Last week, Indonesia officially applied to join the Comprehensive and Progressive Trans-Pacific Partnership free trade agreement. Whereas the benefits to Indonesia are clear, for Vietnam, a founding member of the agreement, it could be problematic. This article looks at the risks and opportunities for Vietnam if Indonesia’s accession is approved…

Military Commercial Bank: Vietnam Stock Overview

the-shiv October 1, 2024

MBB’s total operating income increased by 11.3 percent year over year in the first half of 2024 with the banking industry benefiting from a more stable macroeconomic environment than in 2023 and a rebound in credit demand. Net interest income, however, increased by only 1 percent…

Buy Now Pay Later service debuts on petrol station app in Vietnam

the-shiv October 1, 2024

Of note, the Buy Now, Pay Later–BNPLY–market is projected to grow at a compound annual growth rate of 29.2 percent from 2024 to 2029, according to a report from Markets and Research. The gross merchandise value of buy now pay later in Vietnam is expected to rise from US$1.32 billion in 2023 to US$6.89 billion by 2029…

Vietnam securities firms hit deadline with thousands of trader IDs unverified

the-shiv October 1, 2024

There were around 8 million active trading accounts last count but these are clearly not all being used. In October last year, MB Securities closed over half a million accounts that had been opened with the firm but had never recorded a transaction. This is just one of around 20 to 30 brokerages in Vietnam too, and in this context, this ID requirement may see many more accounts closed…

Vietnam real estate giant’s profit swings to loss after financial statement audit

the-shiv September 30, 2024

Vietnam real estate giant Novaland has banked its worst half year on record after audited financial reports found huge discrepancies from what was earlier reported, The Investor has reported. Specifically, the company’s own financial statements reported a profit of VND 3.5 trillion or US$142.2 million, however, an audit found the company had actually made a loss of VND 7.3 trillion or US$296.6 million…

Vietnam-made tyres subject of South African anti–dumping investigation

the-shiv September 30, 2024

This announcement is in line with a growing narrative around Chinese producers using third-countries, particularly in Southeast Asia to circumvent trade remedies. Of note, genuine Vietnamese producers and exporters often get caught up in these investigations. Whereas they can apply for separate antidumping rates, this still consumes time and resources that many local firms, on the back of broader economic challenges, may not have.

IMF-Vietnam consultation report forecasts GDP growth of 6.1 percent 2024

the-shiv September 30, 2024

The International Monetary Fund has released its Vietnam: 2024 Article IV Consultation report which breaks down the performance of Vietnam’s economy over the last 12 months. Notably, it forecasts GDP growth for this year and 2025 of 6.1 percent. The 97 page report also includes a number of recommendations…

S&P Global raises GDP growth outlook for Vietnam 0.4 points

the-shiv September 29, 2024

The report notes that Vietnam and Malaysia in particular are experiencing strong growth in electronics exports and attracting substantial foreign direct investment in the electronics sector. However, it also notes that the electronics industry is known for its cyclical nature, and any decline in global demand could impact this momentum, leading to potential fluctuations in production and investment.

Vietnam skin care market to reach US$2.35 billion by 2032: Report

the-shiv September 29, 2024

This is inline with a self-care market on the rise. The health and supplements market in Vietnam, for example, has experienced significant growth in recent years, driven by increasing health awareness, rising disposable incomes, and a rapidly growing middle class.

HDBank: Vietnam Stock Overview

Huong Nguyen September 29, 2024

In the first half of 2024, HDB saw a significant uptick in its performance, with total operating income and pre-tax profit increasing by 32.9 percent and 48.9 percent year-over-year, respectively. This growth was primarily attributed to a more stable macroeconomic environment and a rebound in credit demand compared to 2023 during which banks in general faced a challenging financial environment with rising interest costs on deposits outpacing lending income…

US furniture firm bails on Vietnam, leaves local workers unpaid

the-shiv September 28, 2024

Notably, there are channels of recourse for workers in Vietnam, however, these can be difficult to access in the event a foreign business owner has left the country. That said, foreign firms should keep in mind that internet penetration is very high in Vietnam and reputational damage is therefore not restricted to the Vietnam market.

Vietnam seafood exports up 7.3 percent in value August over July

the-shiv September 28, 2024

Vietnam’s seafood exports climbed by 7.3 percent in August over July from US$916 million to US$983.2 million. Vietnam’s seafood exports for the year now stand at US$6.3 billion which represents an increase of 9 percent over the same period last year.

Australia’s Timezone video game arcade chain opens 13th Vietnam location

the-shiv September 28, 2024

Video games are played widely around Vietnam. There are cyber cafes in the big cities on just about every corner. These are generally long rooms chock full of computers and almost always filled with young Vietnamese playing a broad range of video games. With this in mind, Vietnam’s consumers are well primed for more classic video game experiences like video game arcades.

Buy Now Pay Later market in Vietnam could grow by US$5 billion by 2029: Report

the-shiv September 28, 2024

BNPL services are an attractive option for young and budget-conscious shoppers. Major players like Fundiin, Kredivo, and Atome are expanding their presence in Vietnam, partnering with retailers to offer flexible payment options. This trend is expected to continue as digital adoption and consumer demand for flexible credit solutions increase…

Vietnam’s Wind Power Industry: Overview 2024

the-shiv September 27, 2024

To fully realise its wind power potential, Vietnam will need to address several challenges, including regulatory uncertainties, grid infrastructure limitations, and financing hurdles. The transition from feed-in tariffs to a competitive bidding mechanism for new projects is expected to create a more stable and transparent investment environment, attracting both domestic and foreign investors.

Vietnam’s Coal Power Industry: Overview 2024

the-shiv September 27, 2024

While coal remains a significant part of the current energy mix, providing over half of the nation’s electricity, the government is under increasing pressure to transition towards cleaner energy sources. This has led to a more cautious approach in approving new coal projects and a greater focus on improving the efficiency and environmental performance of existing plants.

Vietnam’s Gas Power Industry: Overview 2024

the-shiv September 27, 2024

Vietnam’s gas power industry is poised for significant growth as the country seeks to diversify its energy mix and reduce its reliance on coal. With increasing energy demand driven by rapid economic development and industrialisation, natural gas is seen as a cleaner and more flexible alternative to traditional fossil fuels.

Vietnam’s Solar Power Industry: Overview 2024

the-shiv September 27, 2024

Vietnam’s solar power industry has experienced rapid growth in recent years, driven by favourable government policies and increasing demand for renewable energy. With abundant solar potential due to its geographical location, the country has become a significant player in the Southeast Asian renewable energy market. However, regulatory uncertainty has become a key bug-bear for foreign firms and this has slowed the industries development.

Social Security Insurance in Vietnam for Business 2024

the-shiv September 27, 2024

Social security in Vietnam is a comprehensive system designed to provide financial support and protection to individuals and families against life’s uncertainties, such as illness, unemployment, and old age.