The term Asian Tiger has been bandied around a lot lately with respect to Vietnam’s economic development but it feels a lot like there isn’t a clear understanding of what this means. Yes, consistent economic growth over a prolonged period is part of it, but so is the Asian Financial Crisis, a chaotic period of the tigers’ own making that saw three of them heading to the IMF hat in hand for a bailout. It’s with this in mind, that this article explores whether or not Vietnam is the next Asian Tiger and if so what that might mean… Read More »

Automotive news

Vietnam electric vehicle registration exemption to end March 1

A freeze on registration fees for electric vehicles in Vietnam is set to come to an end at the end of the month. It will, however, be replaced with a 50 percent reduction in registration fees for electric vehicles for the next two years.

Dan Tri is pointing out that registration fees after March 1 will be between 5-6 percent. It notes that mini electric SUVs from VinFast, among the cheapest electric vehicles on the market selling for about VND 300 million, based on these numbers, will attract a registration fee of about VND 15 million.

VN Economy is quoting ‘experts’ as suggesting this could lead to a spike in electric car sales in February as consumers try to get in before the registration fee exemption ends.

Voice of America has also taken the VinFast angle. It says that news of the pending end to the registration fee exemption has seen VinFast stock on the Nasdaq fall (though correlation does not always necessarily mean causation).

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$6.8 billion worth of reverse repos outstanding as of the close of business February 6 and US$1.17 billion in treasury bills outstanding.

Of note, this has been accompanied by a big drop in the value of the dong–on the Friday before the Lunar New Year break the central exchange rate was set at 24,325 dong-per-dollar, however, on Thursday it was up to 24,425, a VND 100 point fall for the dong. The local currency is now down .34 percent since the start of the year.

Construction news

Oversupply of cement causing headaches for Vietnam cement makers

Vietnam cement makers have a capacity of 122.34 million tons of cement a year, however, the local market is expected to absorb just 65 million tons in 2025. Moreover, cement exports are expected to reach a maximum of 35 million tons leaving an excess supply of roughly 25 million tons, according to the Ministry of Construction.

The Investor is reporting that this supply-demand mismatch is seeing cement makers slash prices, however, it notes that production costs are not coming down. It is also covering calls from cement producers for a 5 percent tax on clinker exports to be removed.

The publication points out that Vietnamese cement is also currently being investigated amid dumping allegations in the Philippines. The outcome of this investigation could be significant with the Philippines among the biggest buyers of Vietnam’s cement exports.

Energy news

US steps back from lead role in Indonesia’s JETP, Vietnam too?

The United States has announced that it will take a step back from its role as a lead partner in Indonesia’s Just Energy Partnership Agreement (JETP), the Jakarta Post has reported. Germany is set to take over the role with JETP Secretariat head Paul Butarbutar telling the publication this would not affect JETP funding.

This is relevant in that Vietnam also has a JETP agreement. It’s not clear, however, if there will be a similar announcement with respect to Vietnam with nothing reported in the local press as of writing.

That said, Vietnam’s JETP agreement seems to have mostly stalled anyway with a number of bureaucratic challenges blocking its implementation.

Investment news

Vietnam registers US$4.3 billion in new FDI in January

Vietnam added another 282 new foreign direct invested projects in January, along with just over US$4.3 billion in additional capital commitments, according to data from Vietnam’s Ministry of Planning and Investment. The biggest gains were in manufacturing and processing which added 119 new projects and US$3.1 billion in Newly Registered capital.

China tops Vietnam January FDI for new projects, SK for new capital

China was the leading foreign direct investor in Vietnam in terms of the number of projects initiated in December with 85 new projects. South Korea, however, was the biggest investor in terms of registered capital adding US$1.25 billion, according to data from the Ministry of Planning and Investment.

Notably, there was a significant drop across the board in terms of new projects and capital, however, the last week of January was the Lunar New Year break with government offices closed for five days.

Vietnam’s outbound FDI in January breaks US$83 million

In January, Vietnamese investors invested in 10 new projects abroad worth more than US$83 million. This represents a 5.1-fold increase compared to the same period last year, according to a press release from Vietnam’s Ministry of Planning and Investment.

Vietnam’s investments were distributed across eight countries and territories. The Philippines and Indonesia were the top destinations, receiving 39.4 percent and 37.4 percent of the investment capital, respectively, though there were no projects in these two countries in the same period last year. Laos followed with 22.3 percent of the total investment, a 4.4-fold increase from the last year.

Manufacturing news

Vietnam Purchasing Managers’ Index down January over December

The S&P Global Vietnam Manufacturing Purchasing Managers’ Index recorded a fall in January over December, from 49.8 points to 48.9 points, according to a press release from the firm. Notably the last week of January was the Lunar New Year break which typically sees production fall.

Key points of note:

New orders in January decreased for the first time in four months.
New export orders also declined for the third consecutive month.
Production fell slightly, marking the first decrease in four months.
Firms had spare capacity and reduced backlogs for the first time in eight months.
Employment levels continued to decrease for the fourth consecutive month, with job shedding at its highest since May.
Supplier delivery times lengthened for the fifth month due to slow transportation and higher shipping costs.
Input cost inflation slowed, providing room for firms to lower selling prices.
Output prices decreased for the first time in nine months, albeit marginally.
Manufacturers maintained an optimistic outlook for the year, with over 36 percent expecting production growth.

Media news

Apple App Store now requires games to be registered in Vietnam

Apple has told game developers they must now be registered with Vietnam’s Ministry of Information and Communication for their games to be accessible in Vietnam through its App Store, according to a press release from the US firm. The press release links to an MIC website that details the requirements for registering to provide gaming services including establishing a local entity, creating a local website, and using at least one local server.

Needless to say, there is a lot of work that will now need to go into providing video games in Vietnam and for a lot of smaller studios this won’t be a viable option.

Of note, back in June of last year, the Steam video game platform was blocked because it had failed to register with the MIC. It was speculated at the time that this may have been a move to protect local game developers, VNG, for example. That said, a few months later, VNG’s offices were raided by the authorities, though why specifically is still not clear.

That is to say, that the gaming industry seems to be facing increasing scrutiny more broadly. This, however, could be problematic as Vietnam attempts to present itself as tech-friendly to attract high-tech manufacturing investments, given that video games are a huge component of the global tech sector. Moreover, the kind of people that work in tech are generally inclined to enjoy playing video games and notice and take an interest in these kinds of developments.

Stock market news

Foreign traders continue market-exit, net-sell US$98.69 million

Over the last five trading sessions to the close of business on February 6, foreign investors net-sold US$98.69 million worth of HCMC Stock Exchange stocks. This brings the total net-sold since the start of the year to US$380.6 million or US$3.95 billion since this time last year.

Foreign trader activity, last five trading days

	Buy		Sell		Change
Date	VND	US$	VND	US$	VND	US$
24/1	2,268	$89.75	1,635	$64.70	633	$25.05
3/2	1,720	$68.06	3,182	$125.92	-1,462	-$57.86
4/2	1,423	$56.31	2,378	$94.10	-955	-$37.79
5/2	1,767	$69.92	2,132	$84.37	-365	-$14.44
6/2	1,226	$48.52	1,571	$62.17	-345	-$13.65
Total	8,404	$332.57	10,898	$431.26	-2,494	-$98.69

VND = billions; US$ = millions; source: Vietnam Stock Market Tracker

Tourism news

Vietnam’s tourist arrivals rise by 18.5 percent in January, driven by spike from Asia

Vietnam welcomed 2,070,466 international tourists in January, marking an 18.5 percent increase from December 2024, according to Vietnam’s General Department of Tourism. Compared to January 2024, arrivals surged by 36.9 percent, reflecting continued post-pandemic recovery and increased travel demand.

Asian tourists accounted for 77.6 percent of total arrivals, with 1,606,888 visitors. This represents a 16.2 percent month-on-month increase from December 2024 and a significant 42.8 percent rise compared to January 2024. Key markets like China, South Korea, and Japan continue to drive growth, supported by improved flight connectivity, visa exemptions, and Vietnam’s appeal as a close, affordable destination.

Trade news

Complaint lodged with EU trade department over human rights violations in Vietnam

The International Federation for Human Rights (FIDH) has lodged a complaint with the European Commission’s trade department arguing that an “…ongoing crackdown on human rights defenders working on sustainable development violates the EU-Vietnam Free Trade Agreement”.

Of note, the organisation has had some past successes with shaping EU engagement with Vietnam in terms of trade. In 2014, it lodged a complaint with the EU Ombudsman with respect to a lack of a human rights assessment in the initial EVFTA negotiations. The Ombudsman ruled in 2016 that “…the Commission’s failure to carry out a specific human rights impact assessment, in relation to Vietnam, constituted maladministration…”

Environmental sustainability, workers’ rights, and governance provisions are commonplace in next-generation FTAs like the EVFTA and CPTPP, as is oversight of these provisions from independent observers and civil society groups. Vietnam, however, has struggled to meet these requirements. For example, it missed a CPTPP deadline to ratify the International Labour Organisation’s Convention 87 on workers’ rights and a deadline for the establishment of a domestic advisory group as part of the EVFTA. It’s also received sharp rebukes from around the world with respect to imprisoning environmental activists whose contributions to public policy external actors have been seen as pivotal to the country’s clean energy transition.

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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