In case you missed it…
Vietnam’s Revised Power Development Plan 8: A Missed Opportunity
Last week, the Government of Vietnam issued a Decision significantly revising the Power Development Plan 8 (PDP8). However, whereas this could have been an opportunity to redesign the PDP8 to align more closely with on-the-ground realities, this opportunity looks to have been missed… Read More »
Aviation news
VietJet found liable for US$181.8 million in UK court aircraft leasing dispute
The High Court of England and Wales has ruled in favour of FW Aviation, ordering VietJet Aviation to pay more than US$181.8 million in a dispute over four aircraft that VietJet failed to return after their leases were cancelled. The court upheld FW Aviation’s right to full termination payments and possession of the aircraft, rejecting VietJet’s penalty clause and title-based defences, according to the decision handed down by the court.
Key points:
- Termination sums upheld: VietJet must pay the full contractual termination amounts under Clause 19.3 of the sub-leases—US$108 million for two Airbus A321neo aircraft and US$57.1 million for two Airbus A321ceo aircraft.
- Outstanding rent: VietJet is also liable to pay post-termination ‘holdover rent’—totalling over US$16.7 million—for delayed redelivery of the aircraft.
See also: Vietnam’s Aviation Industry: State of Play 2025
VietJet Vietnam stock market disclosure skims over latest court ruling, puts focus on appeal
In a release to the Ho Chi Minh City Stock Exchange, Vietnamese budget airline, VietJet, acknowledged last weeks ruling in the UK courts, however, went on to suggest an appeal in the originating case will be won, negating said ruling which was that the airline is liable for just over US$180 million in missed lease and termination payments.
Notably information disclosures have been flagged by both key market classification agencies, FTSE Russel and MSCI, with respect to holding Vietnam back from an upgrade. This has tended to focus on the lack of English language disclosures but it’s not foreseeable that the lack of sufficient information in stock market disclosures could also be an issue.
To be clear, the VietJet release probably should have stated how the airline was provisioning funds for a payout which is looking increasingly likely. Moreover, much of the statement refers to actions the airline took to assist in tackling broad COVID challenges which does not really have anything to do with the legal action underway.
See also: The VietJet UK Court Ruling for Foreign Firms in Vietnam: Unpacked
Banking and finance news
Vietnam bad debt jumps 3.3 percent in first two month of 2025
Nguyen Quoc Hung, General Secretary of the Vietnam Banking Association, has raised concerns about the speed at which bad debt is rising in Vietnam, Tuoi Tre has reported. Total bad debt stood at VND 1,030 trillion (US$41.18 billion) at the end of 2024, rising by VND 34 trillion (US$1.36 billion), or about 3.3 percent, in the first two months of 2025 to VND 1,064 trillion or about US$42.54 billion.
The link article points out that banks are urging lawmakers to institutionalise Resolution 42 (42/2017/QH14) powers in a revised Law on Credit Institutions.
The resolution was enacted by Vietnam’s National Assembly in 2017 and introduced several key mechanisms to expedite the handling of bad debts, most notably the right to seize collateral. This resolution, however, expired at the end of 2024.
See also: Banking in Vietnam: Industry Overview
Vietnam dong reverses slide on weakening US dollar
The State Bank of Vietnam (SBV) has continued to carry out open market operations. Notably, there were US$4.43 billion worth of reverse repos outstanding as of the close of business April 24. There were, however, no outstanding treasury bills.
Of note, the value of the dong slid again this week. Whereas this time last week it was down by 2.26 percent over the start of the year, as of close of business April 24, it was down by 2.41 percent (based on the central exchange rate set by the SBV).
See also: Right Now, a Weak Dong Could be Good for Vietnam. Here’s Why.
Economy news
GDP: IMF forecasts Vietnam growth to reach just 4 percent in 2026
The International Monetary Fund (IMF, in its latest April 2025 World Economic Outlook, has lowered its GDP growth forecast for Vietnam for 2025 from 6.1 percent to 5.2 percent. It has also forecast GDP growth of just 4 percent next year.
Notably this presents a stark contrast to the 8 percent GDP growth target set by the government for 2025 and the 10 percent target set for 2026. Whereas there is optimism in Vietnam that US tariffs will not be as bad as they may have at first appeared, these IMF forecasts would suggest that outside of Vietnam there are some very real concerns.
Of note, the IMF generally has the best access to macroeconomic data among the big international financial institutions, the supply of which is required as a condition of membership. That is to say that IMF projections are generally among the most authoritative.
See also: Vietnam’s 8 Percent GDP Growth Target: Unpacked
Food and beverage news
Nestlé invests additional US$73 million in southern Vietnam coffee plant
Nestlé Vietnam has announced an additional investment of nearly VND1.9 trillion (US$73.4 million) into its Tri An coffee factory in Dong Nai province, boosting its total investment in the country to nearly VND20.2 trillion (US$780.83 million), Vietnam’s English language news site, The Investor is reporting.
This additional investment speaks to coffee being an area of Vietnam’s economy that may be only impacted to a limited extent by possible US tariffs. This is on the grounds that it is one of the biggest coffee growers in the world and relocating coffee production would be challenging for a number of reasons, climate and natural resources in particular.
See also: Coffee in Vietnam: Industry Overview
Gold news
Gold price hits new record in Vietnam
Vietnam’s domestic gold prices surged to a new record on April 22, with gold bars from Saigon Jewelry Company (SJC) reaching VND 122.5 million (US$4,767) per tael or approximately US$3,973–US$3,972 per troy ounce, driven by soaring global prices and rising demand for safe-haven assets, the Vietnam News Agency has reported.
Key points
- Global spot gold reached a new high of US$3,448 per troy ounce, up from US$3,423 the previous day. This is about 11 percent below the domestic gold price.
- Retail demand in Vietnam surged, with long queues reported and some stores limiting purchases to one mace (one-tenth of a tael or 0.12 troy ounces) per transaction.
Gold’s sharp rise in Vietnam reflects not only global market trends but also strong domestic retail demand amid economic uncertainty. With ongoing US-China trade tensions and expectations of prolonged volatility, Vietnamese investors have for some time been turning to gold as a safe store of value.
Notably, the State Bank has been at pains stabilise the gold market including selling gold from its reserves which it began to do last year. Assuming it has not imported any new gold, which seems unlikely given the pressure it would add to the local currency, said reserves must be significantly depleted by now. This may partially explain why limits of just a tenth of a tael are being applied.
See also: The Gold Price in Vietnam: Explained
Stock market news
Foreign traders net-buy US$45 million of HoSE stocks
Over the last five trading sessions to the close of business on April 24, foreign investors net-bought US$44.87 million worth of HCMC Stock Exchange stocks. This brings the total net-sold since the start of the year to US$1.48 billion or US$5.63 billion since January 1, 2024.
See also: Vietnam’s Foreign Investor Stock Sell-Off: Unpacked
Foreign trader activity, last five trading days
| Buy | Sell | Change | ||||
| Date | VND | US$ | VND | US$ | VND | US$ |
| 18/4 | 2,232 | $85.66 | 2,221 | $85.24 | 11 | $0.42 |
| 21/4 | 1,784 | $68.47 | 1,617 | $62.06 | 167 | $6.41 |
| 22/4 | 3,867 | $148.42 | 3,352 | $128.65 | 515 | $19.77 |
| 23/4 | 2,111 | $81.02 | 2,208 | $84.74 | -97 | -$3.72 |
| 24/4 | 2,430 | $93.26 | 1,857 | $71.27 | 573 | $21.99 |
| Total | 12,424 | $476.84 | 11,255 | $431.97 | 1,169 | $44.87 |
VND = billions; US$ = millions; source: Vietnam Stock Market Tracker
Trade news
India imposes 12% duty on flat steel imports from Vietnam and China
India has imposed a 12 percent duty on flat steel imports from Vietnam and China for 200 days, aiming to shield its domestic steel sector from surging low-cost shipments of steel, according to The Hindu’s Business Line.
Key points:
- The duty targets non-alloy and alloy flat steel products including hot-rolled coils, cold-rolled sheets, metallic-coated and colour-coated coils.
- Exemptions apply to 22 product categories, high-value goods (US$675–964/tonne) and imports from most developing nations (excluding Vietnam and China).
Vietnam, already under US tariff scrutiny, now faces another trade barrier in one of Asia’s major steel markets. Of note, Vietnam’s iron and steel exports to India fell in terms of value by 2.43 percent in 2024 versus 2023 from US$715.3 million to US$697.9 million and 20.54 percent in terms of volume, from 967,595 to 768,816 tons.
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.