Vietnam News Roundup: April 11 to April 17

In case you missed it…

Key Challenges in Vietnam-US Trade Negotiations: Unpacked

The US-China tit-for-tat trade war has seen tariffs on China rise to 145 percent and tariffs on the US reach 125 percent. As a key link between these two economies, this puts Vietnam in a tricky situation entering trade negotiations with the United States. Add to that the often contradictory objectives of its foreign-invested and domestically owned sectors, and this should make for some interesting negotiations. Read More »

Agriculture news

Indian exporters see lost opportunity as US delays tariffs on Vietnam

Indian cashew exporters were looking at the 46 percent US tariff on Vietnamese goods as an opportunity to take market share. However, the decision to delay implementation for 90 days has dampened those expectations, according to an article in the Times of India.

This is interesting in that it highlights the knock-on effects from the Trump tariffs and how they impact trade between countries that do not include the United States. Moreover, it highlights the competition between developing nations more broadly for access to the US market.

See also: Cashew Nut Processing in Vietnam: Industry Overview

Automotive news

Month-on-month car sales in Vietnam jumped 51.79 percent in March

The March sales report of the Vietnam Automobile Manufacturers’ Association–the VAMA–has found that vehicle sales of the group’s members climbed 51.79 percent in March compared to February. The jump was in passenger vehicles, trucks, buses, and hybrid vehicles.

Year on year, this has sales from VAMA members up a total of 16 percent.

(Note that the VAMA sales numbers are of members of the organisation only, and even then some members do not provide data. With this in mind, this data is only a partial representation of Vietnam’s automotive industry.)

See also: Vietnam Car Sales Tracker: March Update [data] 

Aviation news

Vietnam relaxes aircraft certification rules opening market to China, Brazil, others

Vietnam has expanded the list of aviation authorities that can certify planes to fly in Vietnamese skies to include those of China, Russia, Brazil, Canada, and the UK, CafeF has reported. 

The publication also notes that Vietjet is planning to operate Chinese Comac aircraft on a new route to Con Dao and is in talks with Chinese plane maker on broader cooperation, including aircraft maintenance facilities; and that Vietnam Airlines is exploring Brazilian-made Embraer jets to modernise its regional fleet as part of a broader post-COVID restructuring.

This, however, comes amidst reports Vietjet is gearing up to accept the first of 200 Boeing aircraft, part of an order worth US$24 billion, and Vietnam Airlines is considering a US$3.7 billion purchase of 50 Boeing aircraft.

To tie this all together, this announcement comes in the wake of a trip to Vietnam by the Chinese president as China goes deeper into a trade war with the US. That is to say, there very much looks to be a political element to this. In this context, it’s difficult to say what this announcement might mean on a practical level.

See also: Vietnam’s Aviation Industry: State of Play 2025

Banking and finance news

Bonds: Vietnam sees March jump in corporate bond issuances

Vietnam recorded a jump in corporate bond issuance in March 2025, with VND 10.7 trillion (US$428 million) raised, according to data from the Vietnam Bond Market Association. This comes after there were no corporate bonds issued in February. 

The spike in issuances comes despite a heavy redemption calendar for the remainder of the year (VND 172.96 trillion or US$6.92 billion) and some continued default activity–There were 5 interest payments worth VND 305 billion (US$12.2 million) and 2 principal payments worth VND 355 billion (US$14.2 million) delayed in March.

The March issuance may be a sign of improvement for Vietnam’s corporate bond market. However, the significant pipeline of maturing bonds and sporadic defaults highlights ongoing credit risk, particularly in the property sector.

See also: Financial Sector in Vietnam

Vietnam dong reverses slide on weakening US dollar

The State Bank of Vietnam has continued to carry out open market operations. Specifically, there were US$3.9 billion worth of reverse repos outstanding as of the close of business April 17. There were, however, no outstanding treasury bills.

Of note, the value of the dong turned around this week. Whereas this time last week it was down by 2.56 percent over the start of the year, as of close of business April 17, it was only down by 2.26 percent.

See also:  Right Now, a Weak Dong Could be Good for Vietnam. Here’s Why.

Economy news

China warns against trade wars as Xi calls for deeper Vietnam economic ties

Chinese President Xi Jinping warned that “trade war and tariff war will produce no winner,” while calling for stronger China–Vietnam economic cooperation and a united stand against protectionism, in a statement posted on Vietnam’s Nhan Dan news site. This came amid a state visit to Hanoi by the Chinese leader. Whereas the bulk of the statement was stock standard for high-level talks between the two countries, there were a few timely points made on trade, including:

• “Trade war and tariff war will produce no winner, and protectionism will lead nowhere.”
• Vietnam and China should work to “resolutely safeguard the multilateral trading system”.
• That both countries should work through multilateral platforms such as the Lancang-Mekong Cooperation initiative to “inject more positive energy” into a turbulent global economy.

Xi’s comments are a clear response to the latest US tariffs and frame China as a partner in resisting what it suggests is economic coercion. Notably, Vietnam is now facing rising duties from the US, and it’s not totally far-fetched to think this may draw the country more into Beijing’s orbit — especially if it sees Chinese trade and investment as a buffer against U.S. trade risks.

See also: What’s Next for Vietnam if Trump’s 46 Percent Tariff is Here to Stay? 

Electricity news

Vietnam generates 72.2 billion kWh in Q1 2025, coal dominates energy mix

Vietnam’s total electricity generation and imports reached 72.2 billion kWh in the first quarter of 2025, with coal-fired power accounting for more than half of the country’s energy supply, according to data from state-owned power provider Electricity Vietnam. While renewables made up 16 percent of total output, hydropower and gas also made a significant contribution.

Energy mix breakdown:

• Coal-fired thermal: 40.8 billion kWh (56.5%)
• Hydropower: 13.8 billion kWh (19.1%)
• Renewables: 11.5 billion kWh (16.0%)
• Solar: 6.69 billion kWh
• Wind: 4.45 billion kWh
• Gas turbines: 4.6 billion kWh (6.4%)
• Imported electricity: 1.33 billion kWh (1.8%)

See also: Rethinking Financing Vietnam’s Clean Energy Transition

Manufacturing news

US tariffs prompt LG to pause Vietnam expansion plans

LG Electronics has suspended expansion plans for its microwave and refrigerator production lines in Hai Phong, northern Vietnam, citing the rising cost burden from new US tariffs. The move is expected to impact some 400 workers, The Investor has reported.

This speaks to the practical outcomes from Trump’s tariff announcement earlier this month. Specifically, that caution has become a common theme among decision-makers at major multinational firms and that the risks in terms of expanding manufacturing operations have increased to a point that, for some firms, they now outweigh the returns.

See also: Manufacturing in Vietnam

Vietnam tech exports get tariff reprieve on US tariff exemption announcement

The US Customs and Border Protection (CBP) released updated guidance clarifying that certain electronics and high-tech products would be excluded from the “reciprocal” tariffs announced earlier this month, according to a notice from the government body.

Of note, Vietnam’s exports to the US last year of computers, electrical products, spare parts and components thereof; machine, equipment, tools and instruments; telephones, mobile phones and parts thereof, were worth about US$55.1 billion, which was about 46 percent of Vietnam’s total US-bound exports.

See also: Electronics Manufacturing in Vietnam

Stock market news

Foreign traders net-sell US$340.13 million of HoSE stocks

Over the last five trading sessions to the close of business on April 10, foreign investors net-sold US$148.27 million worth of HCMC Stock Exchange stocks. This brings the total net-sold since the start of the year to US$1.53 billion or US$5.03 billion since January 1, 2024.

See also: Vietnam’s Foreign Investor Stock Sell-Off: Unpacked

Foreign trader activity, last five trading days

VND = billions; US$ = millions; source: Vietnam Stock Market Tracker

Trade news

Vietnam steel exports targeted in EU anti-dumping ruling

The European Commission imposed a provisional anti-dumping duty of 12.1 percent on hot-rolled flat steel products exported from Vietnam, citing material injury to EU producers. The measures follow a formal complaint from EUROFER and are part of a broader action also covering Egypt and Japan, according to a report from the EU.

Of note, Hoa Phat Dung Quat Steel Joint Company was found to have a 0 percent dumping margin and is exempt.

See also: Can Vietnam Survive the Steel-Trade Wars?

The week ahead

There are a handful of events coming up this week. For more information, see: Doing Business in Vietnam: Events Directory 2025.