A different perspective on Vietnam’s economy and doing business in Vietnam. Make sure to  subscribe.

Vietnam News Roundup: August 9 to August 15

In case you missed it…

The VietJet UK Court Ruling for Foreign Firms in Vietnam: Unpacked

For almost two years VietJet has been in a protracted legal battle with Fitzwalter Aviation. In July, however, it came to an end–pending an appeal–when a UK court handed down a ruling in favour of Fitzwalter. This article looks at what happened and how it played out in court, as well as what might happen next. Read More »

Banking and Finance News

Elevated Vietnam banking bond issuances continue in July 

Vietnam’s corporate bond market saw 34 bond issuances–33 private and 1 public–worth a collective VND 31,782 billion, US$1.27 billion, in July, according to data from the Vietnam Bond Market Association. This was slightly down on June which recorded 42,147 billion or US$1.51 billion in bonds issued, but well up on May which recorded just VND 16,695 billion or US$656.5 million in bonds issued.

Of note, back in 2022, the construction sector accounted for about 52.30 percent of bonds issued by the end of July that year and banking just 2.17 percent. This has now flipped with, banking accounting for 67.2 percent of the bonds issued and construction accounting for just 2.8 percent as of the end of July this year.

State Bank continues T-bill issuances, US$2.5 billion outstanding

The State Bank of Vietnam has continued to issue treasury bills to suck up excess liquidity in the economy. There are currently US$2.53 billion worth of T-bills outstanding as of the close of business on August 15. Note that this is a considerable decline over last week’s US$4.27 billion. Also of note is that the State Bank has outstanding reverse repos to local banks worth US$ 1.6 billion. This is also down compared to the same time last week when there were US$2.6 billion worth of reverse repos outstanding. 

See also: Vietnam Dong Tracker: Daily Updates

Outstanding loans to Vietnam banks

IssuedLengthMaturingVND*US$% p.a.
9-Aug716-Aug3,000$119,783,9014.25
12-Aug719-Aug7,000$279,496,3014.25
13-Aug719-Aug7,163.69$286,032,5314.25
14-Aug719-Aug5,794$231,327,4404.25
15-Aug719-Aug17,044$680,528,1484.25
Total40,0011,597,168,320

*billions

Outstanding T-bills

IssuedDaysMaturingVNDUS$% p.a.
2-Aug1416-Aug6,850$273,507,4854.50
5-Aug1419-Aug3,250$129,766,3254.25
6-Aug1420-Aug9,250$369,334,9254.25
7-Aug1421-Aug10,000$399,269,0224.25
8-Aug1422-Aug10,000$399,273,0144.25
9-Aug1423-Aug3,250$129,766,3254.25
12-Aug1426-Aug8,100$323,417,6104.25
13-Aug1426-Aug6,500$259,532,6504.25
14-Aug1426-Aug2,150$85,845,4154.25
15-Aug1426-Aug3,900$155,719,5904.25
Total63,2502,525,432,361

*billions

Car news

Vietnam car sales jump 13 percent in July

The Vietnam Automobile Manufacturers’ Association’s July sales report has found that vehicle sales of the group’s members increased significantly in July over June–about 13 percent. That growth was confined to passenger vehicles with commercial vehicles–trucks and buses–both recording falls.

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

Energy news

Binh Dinh officials push to include German firm in Vietnam offshore wind pilot

Officials in Binh Dinh are pushing for the Ministry of Industry and Trade to include at least part of an offshore wind farm proposed by Germany’s PNE Group in a pilot offshore wind power project being developed. The full plan is for a US$4.6 billion investment that will generate 2,000 megawatts of power, however, said officials have suggested permitting 750 megawatts in the pilot phase in Binh Dinh, according to Tuoi Tre.

State power firm looks to Vietnam Dev. Bank after commercial bank loan limit reached

Vietnam’s state power provider Electricity Vietnam or EVN has reached an agreement with the Vietnam Development Bank for US$2 billion to build more power generation and electricity lines. The agreement was arranged on the back of borrowing limits with commercial banks being reached and challenges accessing foreign capital, The Investor has reported.

Human resources news

Vietnam ‘unlikely’ to see minimum wage hike in 2025

The Ministry of Labor, War Invalids and Social Affairs has announced it is about to embark on a wage survey in order to inform the next minimum wage increase in Vietnam. The wage survey will be used by the National Wage Council to determine the next minimum wage increase which will then need to be approved by the government. With this in mind, it is ‘unlikely’ to increase next year, according to Tuoi Tre.

First half manufacturing jobs jump 10 percent over 2023: Adecco

Jobs in the manufacturing sector in Vietnam jumped 10 percent in the first half of this year compared to the first half of last year, recruitment firm Adecco has said. The firm noted there was an emerging trend toward hiring senior quality and sourcing experts.

Intellectual property news

Counterfeit OMO laundry detergent operation raided in northern Vietnam

Thanh Hoa police have busted up a counterfeit OMO laundry detergent operation with an estimated turnover of around 4,000 products a month, Dan Tri has reported. This is just one of multiple raids around Vietnam on counterfeiters as Vietnam tries to bring the practice under control.

Manufacturing news

Indian pharma giants planning US$200 million investment in Vietnam

Indian pharmaceutical giants SMS Pharmaceuticals and Sri Avantika Contractors are considering establishing a US$200 million plant in a manufacturing park in Thanh Hoa province. The project has already attracted around 50 potential secondary investors, according to Vietnam Investment Review.

Vietnam steel production climbing alongside dumping duties risks

Vietnam’s steel production is expected to increase by 7 percent this year according to the Ministry of Industry and Trade and reported by Vietnam News. This growth, however, will run parallel with an antidumping investigation in the EU into Vietnamese steel. Specifically, the review will look at non-alloy or alloy hot-rolled steel coil or HRC.

Stock market news

Two Vietnam stocks in, two out in MSCI’s August Index Review

MSCI has removed Vietnam’s EVN Finance and Petrovietnam Nhon Trach shares from its Frontier Markets Index as part of its August Index Review. On the flip side, it has added Vietnam’s Binh Duong Water and Nam A Bank to the index.

Foreign traders net-buy US$48 million in HoSE shares

Foreign traders have net-bought over the last five trading sessions for the first time in months. In total, foreign investors had bought just over US$48 million worth of stocks by close of business on August 15. This brings the total net withdrawn from the market by foreign traders down slightly to just over US$2.5 billion year to date.

See also: Vietnam’s Foreign Investor Stock Sell-Off: Unpacked 2024

Foreign trader activity, last five trading days

BuySellChange
DateVND*US$VND*US$VND*US$
9/81,847$73,747,2011,790$71,471,29957$2,275,902
12/81,593$63,605,4631,567$62,567,33326$1,038,131
13/81,901$75,903,3181,586$63,325,967315$12,577,352
14/82,223$88,760,1661,537$61,369,490686$27,390,677
15/81,635$65,282,4441,515$60,491,072120$4,791,372
Total9,199$367,298,5927,995$319,225,1601,204$48,073,432

*billions

Source: www.hsx.vn 

Trade news

Samsung almost 15 percent of Vietnam’s exports so far this year

Samsung exported US$33.5 billion worth of products from Vietnam in the first seven months of the year, Tuoi Tre has reported. This is the equivalent of around 14.73 percent of Vietnam’s total exports and about 46.42 percent of Vietnam’s exports of mobile phones and computers.

Imports reach US$33.9 billion in July

Vietnam’s imports hit US$33.9 billion in July bringing the country’s total imports for the year to US$213 billion, an increase over 2023 of 18.5 percent. This growth has been buoyed in part by double-digit increases in imports of computers, electrical products, spare parts and components thereof; machine, equipment, tools and instruments; and plastics.

See also: Vietnam Imports Tracker: July 2024 Update [data set] 

Exports reach US$36.2 billion in July

Vietnam’s exports hit US$36.2 billion in July bringing the country’s total exports for the year to US$227.5 billion, an increase over 2023 of 16 percent. This growth was buoyed by double-digit increases in exports of telephones, mobile phones and parts thereof; machine, equipment, tools and instruments; and textiles and garments.

See also: Vietnam Exports Tracker: July Update [data set]

The week ahead

There are a handful of events coming up this week. For more information see the: Doing Business in Vietnam: Events Directory 2024 

Also, Vietnam is a dynamic market that is changing rapidly. To keep updated to date with the business environment and how it is evolving make sure to subscribe to the-shiv.

Latest news...

Get Vietnam news sent straight to your inbox

advertising enquiry