vietnam
The Vietnam category covers economic developments, investment trends, and policy updates specific to the country. It explores market opportunities, trade relations, industry growth, and government initiatives, providing insights into Vietnam’s role in global supply chains, emerging sectors, and foreign business expansion.
Vietnam News Roundup: July 12 to July 18
This week’s Vietnam news roundup covers foreign trader stock market activity, electricity news, new manufacturing projects, State Bank currency management, the latest GDP growth estimates, the European Chamber of Commerce’s Business Confidence Index and more…
Vietnam’s beer market to nearly double by 2032: Astute Analytica
These estimates come just weeks after the closure of the Heineken plant in Quang Nam, in central Vietnam which was big news with the provincial government set to lose out on VND 500 billion–or about US$19.8 million–in tax revenue each year. That is not to mention that a number of jobs will also likely be lost…
Concerns raised Vietnam car registration fee cut could breach trade agreements
Car imports from Europe to Vietnam mostly came from France and Germany in the first half of this year and were worth a little shy of US$10 million collectively. Of note, import taxes on cars and motorcycles before the EVFTA came into force were between 32 percent and 70 percent. These will be progressively reduced to zero over the first seven to ten years of the agreement…
ADB holds steady on Vietnam GDP growth at 6 percent in 2024
The Asian Development Bank has left its forecast for Vietnam’s GDP growth unchanged at 6 percent in its latest, Asian Development Outlook July 2024. The bank has also forecast that inflation in Vietnam should be around 4 percent for the year…
Chinese battery to add US$300 million to northern Vietnam operations
Notably, back in June, a Singaporean battery maker also announced plans to increase its investment by US$5.5 million in southern Vietnam. The expansion of these battery firms aligns with increasing local demand for batteries. According to Mordor Intelligence, the Vietnam battery market size is estimated to reach US$326.32 million in 2024 and US$454.11 million by 2029. This is off the back of a compound annual growth rate of 6.83 percent from 2024 to 2029…
Vietnam’s New Direct Power Purchases Decree: Unpacked
Last week, Vietnam issued Decree 80 creating a mechanism by which private enterprises and power generators can enter into direct power purchase agreements or DPPAs. Exactly how impactful this decree might be, however, is difficult to determine at this early stage with a lot of moving parts and a number of obstacles to be overcome. This article breaks down and puts into context the key components of this new piece of legislation.
Vietnamese seafood-solar firm to invest in Mekong Delta wind energy
Notably, the renewable energy segment is a relatively new growth driver for Sao Mai–Sao Mai only started investing in renewable energy in 2017 when it established Sao Mai Solar. Currently, the firm operates the An Hao Solar Power Plant with a 210-megawatt peak capacity and Europlast Long An Solar Power Plant with a 50-megawatt peak capacity. These projects contribute about 5 percent of Sao Mai’s revenue, however, they account for 20 percent of the firm’s gross profit…
Singaporean CapitaLand planning US$110 million investment in Vietnam industrial land
Of note, foreign businesses have been a key driver for the Vietnamese real estate market this year. From January to June, more than US$2.4 billion worth of foreign direct investment was registered in the sector, a significant jump from US$1.53 billion in the first six months of 2023…
World Bank maintains 5.5 percent GDP growth forecast for Vietnam
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…
Gold ring prices surpass gold bar prices in Vietnam
Of note, State Bank gold bars were previously being sold through four majority state-owned banks, at well below market price, with huge queues of customers looking to buy up the cheap State Bank gold. This has since moved online and now that demand is much less visible. That said, the rising price of gold rings could suggest there may be a supply side issue with respect to gold bars…
Vietnam considering 2.6 cent feed-in-tariff for excess rooftop solar
Notably, in 2017, to encourage renewable energy, the government implemented a mechanism to buy excess rooftop solar power at a preferential feed-in tariff price of 9.35 cents per kilowatt hour. This policy led to a significant increase in investments in rooftop solar power systems and subsequently ended in late 2020 due to concerns about uncontrolled growth of rooftop solar power sources. This rapid expansion caused challenges in managing the national power grid and since the beginning of 2021, the signing of rooftop solar power purchase and sale contracts has been paused…
Business confidence in Vietnam falls in second quarter: EuroCham
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…
Mixed messages on future of FDI in Vietnam
Vietnam has used tax incentives as a financial lever to influence investment trends. Preferential tax rates for foreign projects are available at rates of between 10 to 17 percent, depending on the field and location, with some enjoying special tax rates as low as 5 percent. However, these tax incentives have been significantly diminished by the Global Minimum Tax–about 122 foreign companies have been impacted by the new tax in Vietnam, according to a review by tax authorities…
Vietnam’s Vinfast delays North Carolina factory, status of tax incentives unknown
Of note, Vinfast was given a number of tax breaks and incentives by the North Carolina government to encourage its investment in the state. These amounted to a combined US$1.25 billion understanding that the firm would create 7,500 jobs and invest US$4 billion in its factory. This included US$325 million in funds provided up front for site preparation and the upgrade of infrastructure to service the plant, as well as training programs, with the rest tied to key milestones in construction and hiring. It’s not clear what will happen to these incentives in the context of the three year delay that has just been announced…
Finland’s PYN Elite fund names embattled Vietnam Airlines stock pick of the month
The fund doesn’t really give any clear reasons for making this call but does note that the government gave the airline an extension on a US$160 million loan. It should be noted, however, that this was to avoid insolvency with the airline currently operating on negative equity. It also should have been delisted from the HoSE years ago, however, the government intervened to stop that from becoming a reality. In light of this, naming Vietnam Airlines as the stock of the month is an interesting decision to say the least…
Vietnam’s biggest insurance firms to reduce state ownership
Notably, state-owned insurers held a dominant position in Vietnam’s insurance market share in 2023, with Bao Viet leading at 15.13 percent. That said, the Vietnamese insurance market is opening its doors to foreign investment. In 2022, a new Law on Insurance Businesses was passed that allows for foreign firms to wholly own Vietnamese insurance companies…
China textile firm kicks off construction of US$71 million factory in northern Vietnam
Notably, Vietnam’s textile and garment industry experienced strong growth in the first six months of 2024. In the first half of 2024, Vietnam’s textile and garment exports reached approximately US$16.5 billion, an increase of 4.6 percent over the same period in 2023. However, the improvement in Vietnam’s textile and garment exports does not seem to necessarily stem from improved global demand but from a shift of orders from other countries to Vietnam…
Japan noodle firm to invest US$87 million in northern Vietnam in 2027
Notably, Vietnam was among the top three markets for instant noodles globally over the three years ending in 2022, according to the World Instant Noodle Association. Vietnamese consumed approximately 8.48 billion packs of instant noodles in 2022 collectively or 85 packs per person…
Vietnam News Roundup: July 5 to July 11
This week’s Vietnam news roundup covers Vietnam’s latest import and export numbers, bond issuances, new manufacturing projects, IPO data, foreign trader stock market activity, electricity news, and more…
Vietnam state power provider records 2023 loss of more than US$1 billion
Of note, retail electricity prices in Vietnam are regulated and, though permitted, price rises are not all that common. This has led to EVN selling electricity below cost price. As of January, it was losing about VND 142.5 per kilowatt-hour sold. This has been ongoing for some time and has led to EVN accumulating the huge aforementioned losses. The issue here seems to be a reluctance to raise electricity prices rather than an inability to do so…
In today’s Vietnam news: Crypto transfers to VN not necessary, Novaland bond changes, Perspectives on garment industry, Working hours cut proposed, Adding political component
In today’s Vietnam news: Fuel prices cut, Double-digit growth target reinforced, New airport services delay approval requested, TikTok VN investment, Bybit in Vietnam, LG
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
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