A different perspective on Vietnam’s economy and doing business in Vietnam. Make sure to  subscribe.

cheat sheets

snapshots

Proposal to increase foreign ownership limits in airlines in Vietnam rejected

A proposal from Bamboo Airways to increase the foreign ownership limit in airlines in Vietnam to 49 percent from 34 percent has been rejected by the Ministry of Planning and Investment. The ministry has argued that there is “no legal basis to consider Bamboo Airways’ proposal”, though it’s not clear exactly what that means.

The Vietnam airline industry has been struggling broadly as a result of government regulated ticket prices, increasing fuel costs, and a debt hangover from the COVID-19 pandemic when the industry more-or-less ground to a halt.

Bamboo Airways, in particular, only took to the skies in 2019 the year before the pandemic broke out. It also started life as a subsidiary of FLC Group which has been heavily mired in controversy after its leader was arrested back in 2022. This saw the airline spun off but the new independent entity has never had much success and has repeatedly downsized its fleet and the number of routes it offers.

Foreign investment, ergo may be needed to save the airline, however, Bamboo Airways has noted that the current 34 percent limit does not provide foreign investors with enough voting rights and this makes investing in airlines in Vietnam too risky.

See also: Vietnam’s Airline Industry Turbulence: Unpacked

latest news

Vietnam bad debt hits 6.9 percent

Of note, pursuant to amendments to Circular 39 made in June, loan applications for less than VND 100 million or about US$4,000 no longer need to detail a plan for the borrowed funds. Also back in November and December of last year, to meet annual credit growth targets, Vietnam’s banks embarked on some pretty aggressive lending campaigns that saw credit growth jump considerably but in what looked like mostly consumer loans. It could be that some of these loans are now turning bad…

Read More »

Vietnam market-economy review outcome postponed to August

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…

Read More »

Vietnam targeting GDP CAGR of 10.18 percent to 2030

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…

Read More »

What Does a Devalued Yen Mean for Vietnam?

Earlier this year the Japanese yen hit a 38-year low against the greenback and it’s currently sitting about 15 percent lower now than it was at the start of the year. Similarly, the Vietnamese dong took a big fall but has been propped up by the State Bank which has by extension kept the local currency higher against the Yen too. This article looks at what that might mean for Vietnam…

Read More »

Vietnam PM pushes car registration reduction, despite legal risks

Of note, concerns were raised by the Ministry of Finance last week, that a car registration fee reduction policy that applies only to locally made vehicles could contravene the European Vietnam Free Trade Agreement and Vietnam could be at risk of being sued. This was reportedly raised by the EU as a potential problem earlier this year…

Read More »
your listing
your details

advertising enquiry

submit a press release

Note that it will be marked as a press release/sponsored post.

guest post

We publish guest posts of 800 to 1000 words from experts who have something unique to say on topics relevant to our audience. 

get connected with an expert

letters to the editor

We review letters for quality and authority and generally only publish views that add to the discussion from experts in their field.