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.
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.
Billions of foreign aid lost in delays caused by politcal uncertainty in Vietnam
Of note, these delays in project approvals seem to be mostly in infrastructure projects and aid programs. New projects in the manufacturing and processing industry have continued to move forward without any more delays than is typical–critical to Vietnam’s economic development, investigating corruption in the industry could discourage further foreign direct investment.
Airlines are making just US$1 per passenger: Vietnam Airlines exec.
The rising price of airfares in Vietnam has been in the news a lot lately. A review of airline ticket prices by the Vietnam Aviation Administration, however, after conducting a brief investigation, earlier this year, found that airfares prices have been within the current guidelines–in Vietnam airfares are regulated by the government.
Transcript of DOC hearing into Vietnam’s non-market economy status now available
This hearing should just about cap off contributions from the parties involved with the Department of Commerce now set to deliberate with a report due July 26.
Vietnam securities firm suggests September 2 launch of new stock trading system
Of note the exchange said that the KRX trading system, imported from South Korea, would go live on May 2, however, this was promptly shut down by the State Securities Commission on the grounds that the exchange had failed to provide evidence trading firms were ready for the new system and because it hasn’t consulted all relevant stakeholders.
Another politburo member resigns in Vietnam
Truong Thi Mai who was, until yesterday, the Standing Secretary of the Secretariat, has resigned her position. This was after it was revealed there were ‘violations and shortcomings’ in her work. Resignations among Vietnam’s leadership have become common of late with the president resigning in March and the Chariman of
In today’s Vietnam news: Facebook account theft ring shut down, Minimum wage to rise from Jan 1, Nuclear power project reorganisation proposed, No jail
In today’s Vietnam news: Research prosecution exemption, Fuel retailer losses, Semiconductor degree requirements, Eurocham BCI, Government bond auction Wednesday, Australia tourist visa problems, Coffee
In today’s Vietnam news: Accor-Sun Group agreement, US largest ethanol supplier, Demographic dividend to end 3 years early, Maritime economy development, ACV looking to
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