economy
The Economy category covers macroeconomic trends, fiscal policies, trade performance, and financial markets. It explores GDP growth, inflation, employment, investment flows, and regulatory changes, providing insights into economic stability, global trade relations, and policy impacts. This section serves as a resource for businesses, investors, and analysts monitoring economic developments.
Vietnam statistics office finds second quarter GDP growth at 6.93 percent
The GSO estimates that the agriculture, forestry and fishery sector grew by 3.34 percent, the industrial and construction sector grew by 8.29 percent, and the service sector grew by 7.06 percent. This is broadly reflected in Vietnam’s top ten individual-item exports in the first five months of this year which registered an average growth rate of 14.9 percent compared to 2023…
Vietnam Value Added Tax cut extended to end of the year
The VAT is normally 10 percent, however, it was reduced during COVID as an economic stimulus measure to 8 percent. But Vietnam’s economic recovery was in large part thwarted, much like in many other countries, by the Ukraine War and the rising fuel prices that came with it. This has led to extensions of the aforementioned VAT cut for the better part of the last four years…
IMF wraps up Vietnam mission, key takeaways from team lead statement
The International Monetary Fund has wrapped up a four day consultation in Vietnam led by the intergovernmental body’s Paulo Medas. The consultation included meeting with the State Bank, Prime Minister, Ministry of Finance and a handful of other government agencies. A statement from Medas at the conclusion of the consultation has several noteworthy points, including…
Perks of CPTPP one step closer for UK with Vietnam ratification
Notably, Vietnam and the UK already have the UK Vietnam Free Trade Agreement which is almost identical to the European Vietnam Free Trade Agreement. In this light, the CPTPP will not make a huge difference to bilateral trade between the two countries. That said, there will be a few additional advantages including…
Isotopic testing for cotton products entering US possible problem for Vietnam
Of note, between October of last year and May of this year, US Customs stopped 950 shipments entering the US from Vietnam under the UFLPA valued at US$520 million. Of those 528 were released, 207 are still pending an outcome, and 215 were denied entry. Those denied shipments were worth a collective US$20.9 million with 46 shipments of apparel, footwear, and textiles among them valued at US$496,485…
S&P global maintains Vietnam BB+ long term, B short term ratings
S&P Global has maintained its ratings for Vietnam but notes there are some risks. Vietnam’s banking sector on its Banking Industry Country Risk Assessment matrix is rated 9. This is on a scale of one to 10 on which 1 represents the lowest risk and 10 represents the highest. This assessment “incorporates regulatory weaknesses, in addition to weak transparency and disclosure standards,” according to the report.
Vietnam think-tank finds 5.85 percent GDP growth more likely that 6.5 percent target
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
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 credit growth on the rise but still well below target
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
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…
The Impact of the Ukraine War on Vietnam’s Economy: Unpacked
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.
Vietnam suspends priority customs treatment for Panasonic
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…
Marine spatial plan to be presented to Vietnam National Assembly this week
The marine spatial plan is set to be the cornerstone for the development of Vietnam’s coastline. It has, however, been a long time coming. Work began on the marine spatial plan in 2018 but is still ongoing with a broad range of stakeholders from a diverse range of industries–defence, oil and gas, fisheries, and tourism to name but a few. Not to mention the geopolitical implications related to carving out a swathe of the South China Sea or East Sea as it is known in Vietnam. With this in mind, it may be a while longer too…
Vietnam PM suggests foreign workers for executive roles at state-owned enterprises
In the past the leaders of SOEs have always been members of the Communist Party of Vietnam which has significantly reduced the talent pool from which to draw–there are currently only a little over 5 million members of the party or around 5 percent of the population. This also leaves these positions open to being filled through political jostling and networking often connected to seniority and an individual’s position within the party more broadly, rather than merit and qualifications…
Vietnam officially considering anti dumping tariffs on Chinese steel
If anti dumping duties are introduced Hoa Phat Steel, which trades on the Ho Chi Minh City Stock Exchange under the ticker HPG, would likely be one of the key beneficiaries. Stocks in the firm are some of the most heavily traded on a near daily basis among foreign investors. Foreign ownership in the firm is currently capped at 49 percent with 24.92 percent of the company’s shares currently held by foreign traders.
Vietnam looking at introducing sugar tax on soft drinks
Dubbed the ‘sugar tax’ this has been raised several times in the past. The American Chamber of Commerce in Vietnam came out against the idea back in 2018 arguing there was no evidence legislating a sugar tax would reduce consumption of sugary drinks. That said, a study on a similar tax in Mexico found that the consumption of sugary beverages fell 6 percent in its first year of implementation…
Vietnam port pushes back on allegations of pilfering from goods for export
The allegations now include 1.68 tons of coffee missing from a shipment to Egypt in January; four shipments of pepper to the Philippines, Korea, Thailand, and Japan from March that were each missing between 1.5 and 4.6 tons; and three pepper shipments to Malaysia and Norway between September last year and March this year that were each missing between 200 kilograms and 3.3 tons of product…
Vietnam-US Trade Tracker [data set]
The United States is the biggest buyer of Vietnam’s exports and together the two countries engage in over US$100 billion worth of trade each year. This tracker looks at what is imported from the US and exported to the US from Vietnam using the most recent data available.
Russian president could be in Vietnam next week: Reuters
Vietnam has remained cordially with Russia throughout the Ukraine War. The Southeast Asian nation is heavily dependent on Russia for its arms supplies but also has a strong bond with the country on account of their similar political pasts. This has seen Russian tourist arrivals grow by 80 percent in the first five months of this year over the first five months of 2023 and…
Vietnam ministry looks to end VAT, import tax exemption on e-commerce imports
Low-value Chinese-made goods are all over Vietnam’s major e-commerce sites and can be exported from China and arrive in Vietnam very quickly and easily given the two countries are so close. This proximity also means that shipping is relatively cheap too, and in this respect it does seem that the only real difference is that goods from China, with this VAT exemption in mind, are cheaper…
In today’s Vietnam news: VN renews antidumping tariffs on Thai sugar, Power supply challenges continue, USTR tariffs forced labour, AMRO growth forecast downgrade, Foreign
In today’s Vietnam news: Fund outflows May, New HCMC airport trial operations to begin September, M&A HCMC 2026, Compensation for gas-to-electric bike switch Hanoi,
In today’s Vietnam news: Vietnam gene company planned Hong Kong IPO, Samsung signs DPPA, Oil delivery from Iraq, Bio-fuel mandate roll-out reaction, Stock market
This is an interview with Chris Walker, a Vietnam Sourcing Expert with Vietnam Factory Tours how rising oil prices and the Middle East crisis are
This is an interview with John Gardner, CEO and Founding Partner, at Optimum Hospitality in Ho Chi Minh City. It covers fuel price impacts on:
This is an interview with Dr Nuno F. Ribeiro, Associate Professor, International Tourism & Hospitality Management at Copenhagen Business College, formerly of RMIT Vietnam. It