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 bonds outstanding lowest in Southeast Asia: ADB data
Vietnam had just US$115 billion worth of outstanding government, corporate, and central bank bonds, in the first quarter of this year, according to the Asian Development Bank’s Asia Bond Monitor report for June. This is the lowest value of outstanding bonds among other key Southeast Asian economies. This could be a sign of economic prudence, however, it could also be a sign that Vietnam is under investing in its own development. That being the case, this could threaten Vietnam’s competitive edge in the region further down the track…
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…
Vietnam May corporate bond payments delayed, amid ongoing real estate capital challenges
Most of these companies were in the real estate sector which fits with a broader narrative around the struggles of managing capital in the sector in recent years. For example, foreign investment has declined and consumer prepayments for residential real estate properties have dried up. This is part of much bigger challenges facing real estate in Vietnam that have been ongoing for years. This latest tranche of delayed bond payments would suggest it may go on a while longer too…
German adhesives giant opens second application center in Vietnam
This new application center aligns with a trend of foreign businesses opening new factories in Vietnam. Over the past two years, several big names, such as Foxconn, LEGO, Amkor Technology, and PepsiCo, have all launched new factories in Vietnam, with a positive impact on Vietnam’s industrial land market, even amidst a slowdown in the real estate market more broadly…
Nuclear Power in Vietnam: Unpacked 2024
During a state visit by the president of Russia to Vietnam last week, Vietnam’s Prime Minister told the Russians that Vietnam would consider nuclear energy as a means of meeting the net-zero 2050 commitment it made at COP26. Indeed, Vietnam needs more low-emissions electricity, but is nuclear power really a plausible solution?
Vietnam Stock Exchange reports first fall in profit since inception
Last year was not a great year for the Vietnam Stock Exchange. Interest in the market as a means of raising capital was lacklustre with just three IPOs completed by the end of November worth just US$7 million. Furthermore, foreign investors exited the market to the tune of over US$1 billion as greater global uncertainty weighted heavily on the local bourse.
Vietnam’s Pacific Airlines returns to the sky, sheds budget carrier image
Of note, aside from keeping Pacific Airlines’ aviation licence, which requires the airline to have aircraft, it’s not clear why Vietnam Airlines is keeping Pacific Airlines alive. As a budget carrier it made some sense as competition to Vietnam’s biggest budget carrier Vietjet. These recently announced upgrades to Pacific Airlines, however, look to put the carrier in the mid-range segment which would make it direct competition with its parent company…
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…
Spain renewables giant looking at central provinces for Vietnam expansion
Of note, a combination of favorable climate conditions, supportive government policies, and rising demand has made Vietnam a promising market for renewable energy development in recent years. In particular, southern Vietnam has high solar irradiance and strong, consistent winds. The average annual sunshine duration in Khanh Hoa province is 2,600 hours per year, while Ninh Thuan province has the most hours of sunshine in a year, in Vietnam, reaching up to 2,800 hours…
Vietnam construction firm bucks industry downturn with new foreign invested projects
Coteccons has performed relatively well over the last year or so, despite industry challenges due to a border slowdown in the real estate market. Notably, it has won several key industrial construction contracts for foreign businesses like LEGO, Foxconn, and Pandora. Furthermore, Coteccons is reportedly heading up construction of factory projects in India and Indonesia for electric car maker VinFast…
Heineken to halt making beer at central Vietnam factory on declining sales
This is on the back of declining sales that the firm is attributing to broader economic challenges but also Decree 100 which reduced the allowed blood alcohol content when driving in Vietnam to zero. Decree 100 has repeatedly fallen into the cross-hairs of local alcohol producers, distributors, and retailers in Vietnam over the last year or so…
Vietnam’s Masan Group refutes claims SK Group has exercised put option
In 2018, SK group bought 109.9 million shares in Masan Group for VND 100,000 or US$4.29 per share for a total of just over US$470 million. Masan, which trades under the ticker MSN, closed at VND 76,200 or US$2.99 Friday valuing the company’s holding at about US$328.6 million. A sizable loss if sold at current prices. SK Group, however, reportedly has a put option whereby it can sell its shares back to the firm at the price in paid back in 2018. It seems unusual that SK Group would not exercise this option under the current circumstances…
Vietnam’s sees bank deposits for individuals increase, enterprises decline
This fits with a broader narrative around Vietnamese moving to save and invest rather than spend–the stock market and local gold price have both been at historic highs this year, too–in light of broader economic challenges facing the country. This is also reflected in retail sales which recorded a month-on-month decline in May over April of .07 percent and have averaged a decline of .19 percent a month since January…
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…
Vietnam construction firm announces further divestments on back-to-back losses
This is part of a restructuring of Hoa Binh’s portfolio to address accumulated losses incurred over the past two years. As of March 31, the firm had racked up VND 3,182 billion or US$125 million in losses. This was at least in part due to a slowdown in construction work on the back of challenges in the real estate sector more broadly…
Black market US dollars sell for 550 dong higher than Vietnam official exchange rate
The SBV struggled to keep the dong from devaluing beyond 25,450 last week. Over the course of the week it issued US$1.2 billion in treasury bills to suck up liquidity and sold about US$520 million from its US dollar reserves, but still finished the week where it started. This latest development suggests that there might be more of the same this week…
Japan’s Toyota to focus on hybrids over electric vehicles in Vietnam market
Of note, Vietnam’s EV charging network is mostly owned by VinFast, a subsidiary of Vietnamese conglomerate Vingroup. The company claims to have more than 150,000 EV charging ports nationwide, however, these facilities are currently exclusively for Vinfast’s EV users. Vinfast has said that, after 10 years, the network will be opened up to other brands, however, this is years away and it’s not clear what electric car buyers of other brands will do until then…
Orders up but prices down for garments and textiles in Vietnam
Of note, last year was not a good year for garment manufacturers and clothing suppliers in Vietnam. This was mostly on the back of lower demand in key export markets as a result of higher inflation from higher fuel costs. The response to this has been mostly supply side stimulus. Tax and interest rate cuts have been common but the impact of these measures has been limited without the demand to support them. By the end of November 2023 exports of garments and textiles from Vietnam were hovering at US$30.4 billion, a drop of 12.3 percent over the same period in 2022…
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.
South Korean firm to exit Vietnam Vingroup, Masan holdings worth US$666 million
Both investments have lost considerable value since SK Group bought into these firms in 2018. Of note, SK Group bought 205.7 million shares in Vingroup–which trades under the ticker VIC–in 2019 for VND 113,000 or US$4.85 at the time for just shy of US$1 billion dollars. Vingroup shares last traded at VND 41,650 or US$1.64 valuing the firm’s current holding at US$337.4 million…
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