Vietnam News Roundup: August 1 to August 7

In case you missed it…

Vietnam’s Economy in July 2025: Unpacked

Vietnam’s economy outperformed expectations in July, with trade and manufacturing holding firm despite looming US tariffs. This article breaks down the key data points and policy factors that shaped Vietnam’s economic landscape in July 2025. Read More »

Aviation news

Why no US airlines currently fly direct to Vietnam

Operational challenges, low yields, and weak business travel demand are holding US airlines back from running non-stop flights to Vietnam, according to Simply Flying→view source.

Key points in the article include:

• High operating costs: Flights between the US and Vietnam are ultra-long-haul (15–16 hours), tying up aircraft and crew for over 30 hours per round trip. That makes them less profitable than multiple short-haul segments using the same aircraft.
• Lower yields: The dominant travel segment is VFR (visiting friends and relatives), which tends to be price-sensitive. US carriers struggle to compete with cheaper one-stop alternatives via Asia.
• Weak business travel demand: While trade and investment ties between the US and Vietnam are increasing, they have not yet reached a level that could support regular premium traffic essential to profitability.

Though not mentioned in the article, Vietnam Airlines operates direct flights to San Francisco.

See also: Vietnam’s Aviation Industry 2025: Growth, Key Players, Foreign Ownership, & More

Banking and finance news

Dong’s decline slows

The dong was relatively stable against the greenback this week, with the central exchange rate ending Thursday at VND 25,239, just 1 dong lower than Thursday last week.

This puts the currency down 3.68 percent since the start of the year.

The State Bank of Vietnam (SBV), however, continued to pump money into the economy. 

There were US$7.9 billion worth of reverse repos outstanding as of close of business August 7. This was up from US$7.1 billion at the same time last week.

There were no new treasury bills issued; however, there were still US$66.1 million worth outstanding as of last night.

See also: How Low Can the Vietnamese Dong Go? Why It’s Sliding & What Might Happen Next

Economy news

Vietnam’s CPI up 3.26 percent year-on-year in first seven months of 2025

Consumer prices in Vietnam rose moderately in July, with the Consumer Price Index (CPI) increasing 0.11 percent from June, according to the latest data from Vietnam’s National Statistics Office→view source.

The increase was driven by higher prices for food, housing materials, electricity, and dining out. 

On a year-on-year basis, CPI rose 3.19 percent, bringing the year-to-date average increase to 3.26 percent.

See also: Vietnam’s H1:2025 GDP Growth: Key Drivers, Rising Risks

Electricity news

Record heat in Vietnam triggers widespread power outages across Hanoi

Hanoi experienced scattered power outages across more than 20 wards and communes on August 5 as record-breaking heat pushed the electricity grid to its limits, Thanh Nien has reported→view source.

Most outages lasted from 8:00 to 16:00, with some shorter disruptions ranging from 45 minutes to 6 hours.

This comes after national capacity hit a record 54,500MW on August 4, up 10 percent year-on-year.

See also: Electricity in Vietnam 2025: Pricing, Supply & Sources

Gambling news

Vietnam proposes VND 50 million monthly ticket for locals entering casinos

The Ministry of Finance has proposed doubling the entrance ticket price for Vietnamese citizens to access casinos, Zing News has reported→view source.

This is part of a revised draft decree on casino businesses aimed at simplifying financial eligibility checks.

It also includes players being issued with electronic ID cards to control access and track activity.

See also: Gambling in Vietnam 2025: Laws, Casinos & Betting Landscape

Manufacturing news

Vietnam PMI rebounds in July, but tariffs weigh on exports

Vietnam’s manufacturing sector returned to growth in July. 

The S&P Global Manufacturing PMI rose to 52.4—its highest level in nearly a year—up from 48.9 in June, according to a press release from the firm→view source.

The survey found that the sector expanded for the first time in four months, but also that exports continued to decline due to US tariffs, with overseas orders declining for the last nine straight months.

See also: Manufacturing in Vietnam 2025: Growth, Options & Other Key Considerations

Real estate

Novaland floats debt-for-equity swap amid VND 2.36 trillion debt 

Vietnamese property giant Novaland has unveiled plans to issue nearly 152 million new shares to swap over VND 6 trillion (US$228.8 million) in bond principal, as part of a broader restructuring effort to address unresolved debt, The Investor has reported→view source.

The company is offering bondholders the opportunity to convert what they’re owed into shares at VND 40,000 each, more than double their current market price.

See also: Real Estate in Vietnam 2025: Trends, Challenges & Outlook

Stock market news

South Korea’s SK Group exits Vingroup stake worth nearly US$377 million

SK Group has divested a significant portion of its holdings in VinGroup, offloading 90 million shares in a negotiated transaction worth nearly US$377 million on August 4, Nguoi Quan Sat has reported→view source.

The shares went to domestic buyers, though it has not been made clear to whom specifically. 

Vingroup’s response:

• The company said this was not a broad foreign investor sell-off but part of SK Group’s global portfolio restructuring.
• The negotiated deal was described as having no impact on retail shareholders.
• Vingroup stated that the buyer is committed to a long-term holding strategy.
• SK will maintain its strategic partnership with Vingroup and continue exploring opportunities in Vietnam, particularly in renewable energy.

See also: How to Open a Trading Account in Vietnam 2025: Key Processes & Procedures

Foreign traders net-sell US$545.53 million of HoSE stocks

Over the last five trading sessions to the close of business on August 7, foreign investors net-sold US$545.53 million worth of HCMC Stock Exchange (HoSE) stocks. 

This brings the total net sold by foreign traders for the year-to-date to US$1.73 billion.

Notably, the bulk of the exit was attributed to the aforementioned divestment by SK Group from its VinGroup holdings.

Foreign trader activity, last five trading days

VND = billions; US$ = millions; source: HSX

See also: Explainer: What’s Driving Vietnam’s Stock Market Rally?

Trade news

MoIT gives update on US trade talks, specific details still missing

Vietnam’s Ministry of Industry and Trade (MoIT) said progress is being made in “reciprocal” trade negotiations with the United States, in a statement posted on its website→view source.

The statement went on to confirm Vietnam’s “reciprocal” tax rate has been reduced from 46 percent to 20 percent.

This is noteworthy in that the government has been decidedly mum on the tariff arrangement since it was announced by Trump on July 2.

That said, the statement is vague, lacks specific commitments, timelines, or details on which sectors or concessions have been agreed, leaving the scope and impact of the ongoing negotiations open to interpretation.

See also: How Will Trump’s Tariffs Impact Vietnam’s FDI Flows?

Import export turnover continues to climb despite tariff risks

Vietnam’s total trade in goods reached US$82.27 billion in July, up 8.0 percent month-on-month and 16.8 percent year-on-year, according to the latest data from Vietnam’s National Statistics Office→view source.

In the first seven months of 2025, total import export turnover reached US$514.7 billion, up 16.3 percent year-on-year, with a trade surplus of US$10.18 billion.

See also: Vietnam Trade: Exports, Imports & FTAs

The week ahead

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