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.
Apple deleted 5,000+ Vietnam apps mostly for fraud, one at gov’t request
Just one app was also removed in 2023 for beaching Vietnam’s Cybersecurity Law. This law requires cross border service providers like streaming sites and online video game distributors to open local offices and store data locally. That said, with just one takedown request for the whole of last year (for comparison in China it was 1,285) enforcing this law in Vietnam looks to be shaping up as…
Vietnam Electricity denies Apple supplier asked to reduce power use by 30 percent
EVN has said reports it had asked Apple supplier Foxconn to voluntarily reduce its power use by 30 percent, are incorrect. The original source of the report was a Reuters article based on information provided by ‘two people familiar with the matter’. In the interests of deciphering what’s true and what’s not, there are a few points to consider…
Vietnam’s Land law 2024 for Foreign Investors
Last year, a revised Law on Land passed Vietnam’s National Assembly. This revised law has the potential to have a huge impact on Vietnam’s land market and could speed up foreign-invested projects considerably. With this in mind, this cheat sheet runs through the key changes in the new Law on Land and how this might impact foreign firms doing business in Vietnam.
Total bad debt of 28 Vietnam banks up 14 percent at end March
Back in December banks went on a lending frenzy as they tried to make up for lacklustre credit growth throughout 2023 by cramming it all in at the end of the year. This saw very aggressive marketing campaigns take place and this led credit to…
Concerns raised in Vietnam over cheap steel imports from China
Needless to say, local producers have cried foul and argue that Chinese steel is being dumped on the Vietnam market. They have reportedly requested that the Ministry of Industry and Trade initiate an anti-dumping investigation…
Postponement of anti dumping duties on solar panels from Vietnam to come to an end in June
Of note, in a Department of Commerce hearing a couple of weeks ago, the core argument made by opponents of Vietnam’s redesignation as a market economy, was that Vietnam was being used as a conduit for Chinese goods looking to circumvent US trade restrictions. In this context, this latest development, especially in an election year, could speak to the thinking at the White House on the matter, in that it may not want to be seen as allowing this sort of thing to happen and, by extension, may also not want to be seen as supporting Vietnam’s efforts to be designated a market economy.
Vietnam’s VinFast runs into trouble in the US over unpaid rent
Of note, a lot of the challenges VinFast has faced entering the US market can largely be traced back to fundamental differences between doing business in Vietnam and doing business in the United States, and a failure to properly understand the differences…
Total forex reserves spent keeping the dong steady reach US$2 billion: ACB
This is a significant jump from last Wednesday when ACB estimated that the bank had spent just US$900 million. Of note, Vietnam is cagey about its foreign currency reserves and does not regularly publish forex data. It does, however, periodically communicate what it has on hand with the International Monetary Fund. The last report from the IMF, in September of 2023, recorded forex reserves of…
Apple supplier Foxconn has been asked to reduce its power use in Vietnam
Promoting power conservation is not a new concept. This happens just about everywhere in the world. That said, what should be concerning is the volume of power Foxconn is being asked to cut. Whereas a firm might be able to save a few kilowatts here or there, it would be very unusual for a firm to be operating with an inefficiency in their power use of 30 percent.
US agricultural exports scouting boost through trade mission to Vietnam
That said, imports of agricultural products into Vietnam have, of late, ruffled the feathers of local agricultural producers. In March, for example, the Vietnam Livestock Association and the Animal Feed, Large Livestock and Poultry Breeding Associations requested that the Government of Vietnam apply additional technical barriers on imported meats.
Vietnam bank-lending growth far from target at 1.6 percent
Whereas in the past credit growth for individual lenders has been set at the start of the year and increased as needed–but ensuring overall credit growth doesn’t go over a set limit–this year all stops have been pulled out. The State Bank has set the limit–although it’s more of a target at this point–at 15 percent overall but said banks are free to lend as they please with no institution-specific caps.
Vietnam real estate news outlet fined, licensed revoked for misquoting sources
In Vietnam, the Law on Press distinguishes between different kinds of media outlets with varying degrees of newsgathering permitted and subsequently government control. CafeLand looks to have been licenced as an ‘electronic magazine’ which is, more-or-less, a trade publication. It had, however, per the assessment of the Department of Information and Communications of Ho Chi Minh City, extended its operations beyond its remit, becoming more like a news outlet and engaging in more extensive newsgathering.
Drivers avoid Vietnam smart carpark on comparatively high prices
Vietnam’s cities have a carpark problem. Built around motorbikes most cities are cramped with narrow streets and very little room to park a car. Car numbers, however, have continued to grow and as a stop-gap vehicles are being parked just about anywhere space can be found.
Ground broken on second terminal at airport in Vietnam capital
For context, at the end of last year, the President of Vietnam Airlines noted that overcrowding at Vietnam’s airports was costing the national carrier US$20 million a year. Indeed, overcrowding has become a huge problem–Tan Son Nhat International Airport in Ho Chi Minh City was built for 28 million visitors a year but welcomed 34 million arrivals in 2022. Similarly, Hanoi’s Noi Bai International Airport was built for 25 million visitors a year but was expected to finish 2023 with 30 million arrivals.
Chinese EV makers looking to expand in Vietnam
One of the side effects of all of the attention Vietnam’s Vinfast has received is that it has exponentially raised awareness of electric vehicles among Vietnamese consumers. Furthermore, there is a lot of status that goes along with owning a car in Vietnam. That said, Vietnam’s GDP per capita is still only around US$4,000 which makes owning a car of any kind challenging for most Vietnamese. In this context, smaller, cheaper Chinese EVs could find a welcome home south of the border.
Alibaba to build a data centre in Vietnam
Vietnam’s data localisation laws have been a point of contention with cross-border service providers concerned about the security of their data stored in Vietnam. These regulations also contravene some trade agreements like the Comprehensive and Progressive Transpacific Partnership Agreement which prohibits member states from requiring firms to store data locally.
Ultra-luxury smart phone firm adds another Vietnam retail store
The number of ultra-high-net-worth individuals–persons with a net worth greater than US$30 million–has grown exponentially in recent years. According to Frank Knight estimates, Vietnam had 1,059 of these uber-rich at the end of 2022.
Implementation of Vietnam’s new Land Law slated for July with NA approval
Among the key regulations this change will see come into force early are adjustments to the Law on Land that will remove land pricing regulations that see a price set every five years based with which, using their own coefficients, local governments determine the price of land. With land values increasing faster than the centrally set price and, believing their land to be worth more, landowners had in the past refused to sell waiting for a better price and this has held up a number of projects.
Vietnam corporate bond issuances up 29.1 percent in April
This is another positive sign for corporate bond issuances after a slow start to the year–there were just VND 5.96 trillion or US$242 million of corporate bonds issued in the first two months of 2024.
Minimum wage hike of 6 percent submitted to Vietnam government for approval
This will be welcome news for Vietnam’s minimum wage workers with no minimum wage hike last year despite inflation floating around 4 percent. The Vietnam General Confederation of Labor had been pushing for between 6.48 percent and 7.3 percent with the Vietnam Chamber of Commerce and Industry, a peak business representative body, pushing for between 4.5 and 5 percent. Vietnam’s National Wage Council, which makes recommendations to the ministry, looks to have essentially split the difference.
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