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Vietnam’s 8 Percent GDP Growth Target: Unpacked
There has been a lot of buzz around an 8 percent GDP growth target recently approved by Vietnam’s National Assembly. It is, however, just a target and ultimately doesn’t really mean much on a practical level. This article looks at what GDP growth targets in Vietnam do, the problems they present, and the outcomes or lack thereof. Read More »
Agriculture news
African Swine Fever continues to wreak havoc on Vietnam’s pork market
Outbreaks of African Swine Fever–or ASF–have been reported in multiple provinces and have been ravaging pork supplies pushing up pork prices.
Of note, VietnamNet has reported that the local pig herd is currently around 31 million animals, referencing data from the Department of Animal Husbandry. (This is actually up from around 28.1 million pigs in 2018 pre-ASF). The publication goes on to quote a representative of the Management Board of Ha Nam Livestock and Poultry Wholesale Market as saying that the pigs in the province making it to market are only a fifth of what is normal on the back of an ASF outbreak.
Lao Dong is also reporting multiple outbreaks of ASF in Ha Tinh province some 300 kilometers south of Ha Nam. It goes on to say that this has resulted in the culling of about 318 pigs in the province.
This is significant in that previous outbreaks have seen import tariffs relaxed to shore up the local supply.
See also: How African Swine Fever is Reshaping Vietnam’s Pork Market
Banking and finance News
State Bank continues open market operations
The State Bank of Vietnam has continued to carry out open market operations. Specifically, there were US$3.5 billion worth of reverse repos outstanding as of the close of business February 20 and US$1.12 billion in treasury bills outstanding.
Of note, this has been accompanied by a big drop in the value of the dong–since the start of the year the local currency has lost 1.24 percent against the greenback. This comes amid reports the bank has decided to allow the dong to depreciate rather than continue to sell its US dollars.
See also: The Vietnamese Dong’s Wild Ride: Unpacked
Manufacturing news
Samsung Vietnam records slight revenue increase but drop in exports 2024
The General Director of Samsung Vietnam has told the Prime Minister of Vietnam that Samsung Vietnam recorded revenue of US$62.5 billion after exporting US$54.4 billion worth of goods from Vietnam in 2024, Zing News is reporting. This is a slight increase in revenue but a drop in exports compared to 2023.
Interestingly, VN Express has framed the aforementioned meeting around Samsung’s intentions to increase its investment in Vietnam, however, provides no specific details.
This is made all the more interesting in that from a peak of US$74.2 billion in revenue on exports of US$65.5 billion in 2021, Samsung Vietnam’s revenue and exports have both been on the decline.
That said, revenue at its four key factories has remained mostly steady averaging US$56.5 billion since 2019 and coming in at US$56.8 billion in 2024.
See also: Manufacturing in Vietnam
Mining news
Mining sector in Vietnam records just US$10K in January FDI
In January, Vietnam’s mining sector registered a total of US$10,000 in new foreign direct investment, according to data from Vietnam’s Ministry of Planning and Investment. The sector accounted for less than 1 percent of total FDI in January which was about the same as in December.
Of note, Vietnam’s mining industry contributed VND 211,057 billion or US$8.3 billion to Vietnam’s GDP in 2015. That number has fallen every year since, with the exception of post-COVID 2022, to just VND 143,166 or US$5.6 in 2023. This is despite vast off-shore gas and oil reservoirs and some of the world’s biggest rare earth reserves.
See also: Mining in Vietnam: Industry Overview
Stock market news
Foreign investors hold just US$12.6 billion worth of Vietnam stocks
At the end of 2024 foreign investors held just VND 323.53 trillion or US$12.65 billion worth of Vietnamese securities, the General Director of Vietnam Securities Depository and Clearing Corporation said Monday.
This is just 7.35 percent of the securities registered with the corporation which includes everything from bonds to stocks to government debt. For some perspective, foreign investors held about 31 percent of Thai stocks as of October last year and 48.5 percent of Indonesian stocks as of September 2024.
Of note, said US$12.65 billion is actually US$403.4 million more than said stocks were worth at the end of 2023. This is despite foreign traders net-selling US$3.53 billion worth of stocks in 2024, which, based on these numbers, would have been about a quarter of their holdings.
Suffice it to say, this would suggest Vietnam realising its own ambitions of an international financial centre may still be some ways away.
See also: Building An International Financial Centre in Vietnam: Unpacked
Foreign traders net-sell US$37.85 million of HoSE stocks
Over the last five trading sessions to the close of business on February 20, foreign investors net-sold US$37.85 million worth of HCMC Stock Exchange stocks. This brings the total net-sold since the start of the year to US$523.4 million or US$4.06 billion since January 1, 2024.
See also: Vietnam’s Foreign Investor Stock Sell-Off: Unpacked
Foreign trader activity, last five trading days
| Buy | Sell | Change | ||||
| Date | VND | US$ | VND | US$ | VND | US$ |
| 7/2 | 1,531 | $59.99 | 1,710 | $67.01 | -179 | -$7.01 |
| 10/2 | 1,196 | $46.87 | 1,798 | $70.45 | -602 | -$23.59 |
| 11/2 | 1,366 | $53.53 | 1,510 | $59.17 | -144 | -$5.64 |
| 12/2 | 1,980 | $77.59 | 1,626 | $63.71 | 354 | $13.87 |
| 13/2 | 1,368 | $53.61 | 1,763 | $69.08 | -395 | -$15.48 |
| Total | 7,441 | $291.58 | 8,407 | $329.43 | -966 | -$37.85 |
VND = billions; US$ = millions; source: Vietnam Stock Market Tracker
Tourism news
Vietnam island hot-spot to relocate homeless on major holidays
Authorities in Vietnam’s Phu Quoc, an island holiday hot spot off the country’s south coast, have announced they intend to “…relocate homeless individuals, beggars, the elderly, mentally ill and disabled people, and others living on the streets…” on major holidays, Tuoi Tre is reporting. This is “…to preserve the tourism image for both domestic and international visitors.”
Of note, in another article on the matter published by Tuoi Tre a local reporter appears to have spoken with several impacted persons that discusses what has led them to need to look for financial support from tourists. One reading of said article is that it is not by choice and that relocating impacted persons may be far more complicated than the local government seems to think.
That said, whereas Phu Quoc may have once been a pristine island holiday destination, over development has wrought havoc on the island’s natural beauty. That the prevalence of individuals experiencing homelessness has been raised as a core issue may serve to reflect key differences in expectations between Vietnamese and foreign tourists.
See also: Tourism Industry in Vietnam
The week ahead
There are a handful of events coming up this week. For more information, see the: Doing Business in Vietnam: Events Directory 2025
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