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Building An International Financial Centre in Vietnam: Unpacked
At the end of December, the Government of Vietnam passed a Resolution approving a plan to create regional and international financial centres in Danang and Ho Chi Minh City. Whereas the plan puts the emphasis on location this article looks at the regulatory issues holding this project back… Read More »
Aviation news
UK court grants anti-suit injunction against Vietnam’s Vietjet
The UK’s Commercial Court has granted anti-suit injunctions to banks BNP Paribas and Natixis against Vietjet with respect to court proceedings Vietjet had intended to pursue in Vietnam. The banks had previously held lease agreements with the airline on which Vietjet had defaulted. The banks had pursued, and been awarded the injunctions, on the grounds that the agreements with Vietjet specifically assigned the UK courts jurisdiction over any dispute between the parties.
This is another blow to the airline after the same court last year found in favour of the plaintiff in a case based on the same series of events. Specifically, after termination notices had been served on the aforementioned lease agreements, Vietjet had refused to return the aircraft and had continued to use the aircraft for some time afterward without making repayments. Restitution in that case is still yet to be determined with an appeal making its way through the UK courts.
See also: The VietJet UK Court Ruling for Foreign Firms in Vietnam: Unpacked
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$2.63 billion worth of reverse repos outstanding as of close of business January 16 and US$3.19 billion in treasury bills outstanding.
See also: The Vietnamese Dong’s Wild Ride: Unpacked
Car news
Vietnam car sales slump by over 30 percent in December over November
Car sales in Vietnam witnessed a significant downturn in December, with total sales declining by 30.81 percent month-on-month to 27,403 units. Passenger cars, the largest segment, fell sharply by 33.04 percent compared to November, with 20,457 units sold, according to data from the Vietnam Automobile Manufacturers’ Association.
Sales for the year at the end of December stood at 295,979 units, reflecting a 7 percent increase year-on-year. Buses demonstrated the most substantial annual growth at 31 percent, with 7,748 units sold in 2024. Trucks also showed resilience with a year-on-year increase of 4 percent.
See also: Vietnam Car Sales Tracker: December Update [data]
Energy news
PM sets 5-year time frame on nuclear power plant in Vietnam
Prime Minister Pham Minh Chinh, Head of the Steering Committee for Nuclear Power Plant Construction has set a target of getting a nuclear power plant in Vietnam online by 2030. This comes after it was announced last year that Vietnam would be resuming its nuclear energy program.
Of note, according to the International Atomic Energy Agency it can take as little as five years, but also as many as 12, to build a nuclear power plant from when the first cement is poured. That said, there can also be a few years of planning that goes into the process before that.
Whereas Vietnam had done a lot of the early stage leg work a decade or so ago and put together plans for a nuclear power plant in Ninh Thuan province, these were abandoned in 2016. It’s not clear, nine years on, that these are still necessarily relevant. Moreover, to reach a 2030 deadline work would really need to start right now but this looks very unlikely.
See also: Nuclear Power in Vietnam: Unpacked
Stock market news
Changes set for key stock market index criteria from March
The Ho Chi Minh City Stock Exchange has announced in a Facebook post that it will revamp the criteria of several of its key market indexes. The changes are detailed in Decision 747/QD-SGDHCM and will take effect from March.
Changes to the index include:
- The VNAllshare index will see trading volume and value limits increased. Specifically, the minimum trading volume of shares will increase from 100,000 to 300,000 and the minimum value of trades will be raised from VND 10 billion to VND 30 billion;
- The VN30 index will have a cap applied of 40 percent for any single industry; and
- Indexes will be reviewed and updated quarterly as opposed to half-yearly as they are currently.
See also: Vietnam Stock Market Indexes
Foreign traders return to stock market, net-sell US$174.9 million
Over the last five trading sessions to the close of business on January 16, foreign investors net-sold US$174.9 million worth of HCMC Stock Exchange stocks. This brings the total net-sold since the start of the year to US$241.7 million. Of note, the sell off on Thursday was mostly attributed to shares of VinGroup which looks to be (though this is not confirmed) inline with a previously announced exit from the stock for South Korea’s SK Group.
See also: Vietnam’s Foreign Investor Stock Sell-Off: Unpacked
Foreign trader activity, last five trading days
VND = billions; US$ = million
Buy | Sell | Change | ||||
Date | VND | US$ | VND | US$ | VND | US$ |
10/1 | 919 | $36.21 | 1,142 | $45.00 | -223 | -$8.79 |
13/1 | 1,372 | $54.06 | 1,444 | $56.90 | -72 | -$2.84 |
14/1 | 698 | $27.50 | 1,328 | $52.33 | -630 | -$24.83 |
15/1 | 930 | $36.65 | 1,336 | $52.65 | -406 | -$16.00 |
16/1 | 996 | $39.25 | 4,103 | $161.68 | -3,107 | -$122.43 |
Total | 4,915 | $193.68 | 9,353 | $368.55 | -4,438 | -$174.88 |
Source: Vietnam Stock Market Tracker
Tourism news
Poland, Czech Republic, Switzerland added to Vietnam 45 day visa exemption
From the first of March this year, travellers from Poland, the Czech Republic, and Switzerland will be able to enter Vietnam for 45 days visa free. This adds to a slowly growing list of foreign firms allowed visa free entry to the country. Of note, visitors from Poland and Switzerland in 2024 totalled 51,157 and 33,584, respectively. There is no data on tourist arrivals from the Czech Republic.
See also: Vietnam Tourist Arrivals Tracker
Trade news
Vietnam imports top US$380.8 billion in 2024
Vietnam’s imports jumped to US$35 billion in December bringing the country’s total imports for the year to US$380.8 billion, an increase over 2023 of 16.7 percent. This growth has been buoyed in large part by increases in imports of: computers, electrical products, spare-parts and components thereof; machine, equipment, tools and instruments; and fabrics.
See also: Vietnam Imports Tracker: December Update [data set]
Vietnam exports reach US$405.5 billion for 2024
Vietnam’s exports jumped to US$35.6 billion in December bringing the country’s total exports for the year to US$405.5 billion. This growth has been buoyed by double-digit increases in exports of computers, electrical products, spare parts and components thereof; as well as in telephones, mobile phones and parts thereof; and machine, equipment, tools and instruments.
See also: Vietnam Exports Tracker: December Update [data set]
The week ahead
There are a handful of events coming up. For more information see the: Doing Business in Vietnam: Events Directory 2024.
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