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’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…
Electricity Vietnam reps meet Samsung leaders amid power supply concerns
The government has gone to great lengths to assure foreign investors that the supply will be adequate this year, however, moves to eek out support from foreign investors in reducing their power consumption seems to suggest otherwise–Just weeks ago, it was reported that Apple supplier Foxconn had been asked to curtail its power usages by 30 percent in anticipation of power shortages…
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 maintains position on US currency manipulator Monitoring List
Of note, the foreign currency criteria only addresses purchasing activity but not selling activity. Vietnam, however, has been dipping into its foreign currency reserves in order to stop the dong from devaluing since April… This speaks to Vietnam’s motives in the way it manages its currency, in that it does not necessarily appear to be trying to gain an unfair advantage in international trade even if its place on the Monitoring List might suggest otherwise…
Vietnam to consider nuclear power to meet net-zero commitments
Nuclear power in Vietnam has been floated before. In 2006, the government announce plans to have a nuclear power plant online by 2020 and this was followed a few years later by official plans for nuclear power plants in southern Vietnam in Ninh Thuan and Khanh Hoa provinces. These were, however, shelved in 2016 in favour of gas and coal on the back of lower demand projections…
Vincom Retail to add 6 new malls in Vietnam in 2024
Vincom Retail’s new malls align with a positive outlook for Vietnam retail space rentals. According to a CBRE market report released in May, in the first quarter of 2024, rental prices showed a steady increase per square meter, for ground/first floor spaces in non-CBD areas in Hanoi and Ho Chi Minh City, from US$30 and US$51 to US$30.6 and US$53.3, respectively…
Vietnam News Roundup: June 14 to June 20
This week’s Vietnam news roundup covers the latest news including Putin’s most recent trip to Hanoi, the latest in State Bank efforts to keep the dong from devaluing, the two Vietnam gambling websites that are set to sponsor two English Premier League teams next season, the latest on Vietnam’s attempts to get the local gold price down, changes to the Special Consumption Tax including adding sugary drinks and increasing the tax on alcohol to 100 percent, and more…
China’s Chery to assemble electric vehicles in Vietnam
Vietnam’s electric vehicle market holds promise for foreign car manufacturers. Of note, electric car buyers are eligible for incentives such as exemption from registration fees for the first three years and a 50 percent fee reduction for the subsequent two years, per Decree 10/2022/NĐ-CP. Nevertheless, foreign car manufacturing firms may encounter challenges related to EV charging infrastructure and electricity supply shortages in Vietnam. These hurdles could potentially hamper manufacturers in expanding their market presence and sales…
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…
Real estate crowdfunding program halted not long after beginning in Vietnam
In the current economic climate, with deposit interest rates at historic lows, the local gold price much higher than the world gold price, and US dollars prices cresting all-time highs against the local currency, the need for a diversification of investment vehicles for Vietnamese consumers is becoming increasingly clear. Furthermore, Vietnam’s real estate market has been struggling to access capital on the back of a myriad of challenges the industry has faced in the past two years or so. In this context, this real estate crowdfunding program had a lot of potential…
Taiwanese ETF in Vietnam net-withdraws US$95 million from HoSE so far this year
This net selling momentum hasn’t been limited to Fubon. Foreign investors in general have been net sellers in the Vietnamese market, of late. From the beginning of 2024 until June 17, foreign investors hadhave net sold US$1.7 billion worth of Vietnamese securities listed on HoSE…
In today’s Vietnam news: MB Bank expanding lending to Novaland, MB Bank Sungroup lending, Bond reform proposed, Net-zero financing needs, Fuel price changes, Black
In today’s Vietnam news: Foxconn expansion, No GMT for BOT projects proposed, Land prices falling, Cassava chip export restrictions proposed, Diamond trade as conditional
In today’s Vietnam news: VAT cut extension proposal, FDI recorded Jan – July, Bamboo Airways adds flights, Carbon market stalls, HCMC data centre capacity,
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