In this week’s Vietnam News Roundup: Bad debt climbs as banks push to meet credit targets, the SBV steps back into currency markets with the dong still under pressure, the State ends SJC’s gold bar monopoly, Petrovietnam strikes a new offshore wind deal, fake Crocs are seized in Nha Trang, foreign investors continue to exit the stock market even as the VN-Index edges higher, and more…
In case you missed it…
Vietnam’s Credit Growth Limits vs Targets: There’s a Difference. It Matters.
There has been some misreporting that Vietnam is looking to get rid of credit growth targets. In actual fact, it’s talking about getting rid of credit growth limits. These are different things and this is an important distinction to make. Here’s why. Read More »
Banking and finance news
Vietnam’s bad debt climbs to record VND 294 trillion in H1 2025
Bad debt across 28 Vietnamese banks rose to VND 294.2 trillion or US$11.32 billion by June 2025, up more than 12 percent since the start of the year, Tien Phong reported → view source.
Of note, private credit is at the centre of the government’s economic growth strategy, with banks pressured to reach a credit growth target of 16 percent this year.
Rising bad debts may be a sign that banks are embarking on risky lending practices in order to reach this quota.
See also: It’s Time to Talk About Vietnam’s Credit Growth Policy…
Vietnam C.Bank returns to ForEx interventions on weakened local currency
The State Bank of Vietnam (SBV) announced it would sell foreign currency through forward contracts on 25th and 26th of August to credit institutions with negative USD positions, Dau Tu Online reported → view source.
The selling rate was fixed at VND 26,550 per US$1.
The SBV’s return to forward-based ForEx interventions is a sign of growing pressure on the don.
This will, of course, put the local currency in even riskier territory than it is already — Vietnam’s ForEx reserves are currently sitting around US$80 billion which is enough to cover two months’ worth of imports but not the three the IMF recommends.
See also: Right Now, a Weak Dong Could be Good for Vietnam. Here’s Why.
Local currency loses 33 dong against the greenback
The State Bank of Vietnam (SBV) allowed the local currency to strengthen slightly against the greenback this week, with the central exchange rate ending Thursday at VND 25,268, 5 dong lower than the same time last week.
This puts the currency down 3.8 percent since the start of the year.
The SBV, however, continued to pump money into the economy.
There were just under US$7.25 billion worth of reverse repos outstanding as of close of business August 28. This was up from US$6.62 billion at the same time last week.
There were no new treasury bills issued; however, there were still US$65.6 million worth outstanding as of last night.
See also: How Low Can the Vietnamese Dong Go? Why It’s Sliding & What Might Happen Next
Gold news
Vietnam abolishes SJC monopoly on bar production
Vietnam has officially ended the 13-year State monopoly on gold bar production, allowing qualified businesses and commercial banks to mint their own bars, Tuoi Tre has reported → view source.
Before 2012, Vietnam had multiple gold bar brands such as PNJ’s Phuong Hoang, SBJ, ACB, and Agribank’s AAA.
However, market instability led the State Bank to consolidate all production under SJC and introduce import controls.
While this curbed volatility, it caused long-term distortions in supply and prices, culminating in shortages and extreme domestic–global gold price differences.
Decree 232 now reopens the market, signalling a shift toward liberalisation and supply diversification, however, it does not address import controls, which have stymied the supply of gold into the country, and look to be the much bigger issue.
That is to say, with access to gold to mint into gold bars, this change looks piecemeal at best.
See also: The Gold Price in Vietnam: Explained
Energy news
Vietnam’s Petrovietnam, Denmark’s CIP sign US$10.5 billion offshore wind agreement
Petrovietnam and Copenhagen Infrastructure Partners (CIP) have signed a Joint Development Agreement (JDA) to develop the 3.5 GW La Gan offshore wind project in Binh Thuan (now part of Lam Dong), with an estimated investment of US$10.5 billion, The Investor has reported → view source.
The JDA was concluded on 22 August 2025, following an MoU signed in March 2024.
Vietnam has set ambitious renewable energy goals under its Power Development Plan VIII, with offshore wind a cornerstone of its 2050 net-zero strategy.
It has, however, not got off to a strong start with a target of 6 GW by 2030 very unlikely to be reached.
See also: Vietnam’s Offshore Wind Power Holdup: Unpacked
Intellectual property news
Thousands of fake Crocs seized in Vietnam’s Nha Trang
Market inspectors in Khanh Hoa Province seized nearly 3,000 pairs of sandals suspected of being counterfeit Crocs in a raid on a store in Nha Trang, Thursday, Tuoi Tre has reported → view source.
Authorities retrieved suspected counterfeit goods worth more than VND 200 million or US$7,700.
Of note, authorities are under pressure from trade partners to strengthen IP enforcement as Vietnam integrates deeper into global trade agreements like the CPTPP and EVFTA.
While recent raids signal stronger action, counterfeit demand remains high due to lower prices and weak consumer awareness, making enforcement difficult and costly for both regulators and brand owners.
See also: Vietnam’s US Tariff Threat Prompted Counterfeit Crackdown: Unpacked
Real estate news
Vietnam developers report record-high inventories in Q2 2025
Inventories of listed Vietnamese developers, including Novaland, Vinhomes, Vingroup, Khang Dien and Kinh Bac, reached a record high of VND 531,000 billion or US$20.42 billion in the second quarter, up 11 percent year-to-date, according to VnExpress → view source.
Analysts in the linked article view the build-up as a sign of market recovery rather than distress, with most holdings tied to land banks and projects under construction.
They note that the risks seen in 2022–2024 were tied to legal hurdles that are easing with 571 stalled projects reviewed, 63 of which are ready to move forward.
See also: Vietnam Residential Real Estate 2025: Prices, Trends & Key Players
Stock market news
VN-Index gains 8 points, foreign traders continue to exit
Over the last five trading sessions to the close of business on August 28, foreign investors net-sold US$337.63 million worth of HCMC Stock Exchange (HoSE) stocks.
This brings the total net sold by foreign traders for the year-to-date to just shy of US$2.64 billion.
Conversely, the VN-Index closed Thursday at 1688 points, up 8.86 points since last Thursday.
Foreign trader activity, last five trading days
| Buy | Sell | Change | ||||
| Date | VND | US$ | VND | US$ | VND | US$ |
| 22/8 | 4,684 | $177.59 | 6,066 | $229.99 | -1,382 | -$52.40 |
| 25/8 | 4,058 | $153.86 | 5,820 | $220.66 | -1,762 | -$66.81 |
| 26/8 | 4,166 | $157.95 | 3,293 | $124.85 | 873 | $33.10 |
| 27/8 | 3,587 | $136.00 | 7,656 | $290.27 | -4,069 | -$154.27 |
| 28/8 | 2,770 | $105.02 | 5,335 | $202.27 | -2,565 | -$97.25 |
| Total | 19,265 | $730.43 | 28,170 | $1,068.06 | -8,905 | -$337.63 |
VND = billions; US$ = millions; source: HSX
See also: Explainer: What’s Driving Vietnam’s Stock Market Rally?
The week ahead
There are a handful of events coming up this week. For more information, see: Doing Business in Vietnam: Events Directory 2025.