This week’s Vietnam news roundup covers Trump’s Vietnam tariff deal, crypto regulation changes, Skoda’s local assembly, strong credit growth, dong weakness, The Venti’s debut, proposed wage hikes, new insurance rules, PMI decline, and major moves in real estate and stocks.

In case you missed it…

Trump’s Vietnam Trade Deal Announcement: Sectors to Watch

Yesterday, in a post on Truth Social, US President Donald Trump announced a trade deal with Vietnam that would impose a 40 percent tariff on goods transhipped through Vietnam and a 20 percent tariff on all other Vietnamese imports. This article looks at which sectors are most at risk of that higher 40 percent rate. Read More »

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Automotive news

Skoda Kushaq sales begin in Vietnam as local assembly ramps up

Sales of the locally assembled Skoda Kushaq have officially started in Vietnam, marking a key milestone for the brand’s expansion in the country, Just Auto has reported–view source.

Vietnam’s car market is among the fastest-growing in Southeast Asia, supported by rising incomes, a young consumer base, and urbanisation.

Skoda’s move to assemble CKD units locally should keep it competitive on price by helping to avoid Vietnam’s high import taxes on fully built units.

Banking and finance news

Credit growth exceeds 7 percent in first half of 2025

Vietnam’s total outstanding credit reached VND 16,730 trillion (about US$656 billion) as of June 18, up 7.14 percent from the end of 2024, according to the State Bank of Vietnam (SBV).

This is significantly higher than the 3.87 percent growth recorded in the same period last year, The Investor has reported→view source.

The strong credit expansion reflects Vietnam’s determination to maintain robust economic growth, despite broader global economic uncertainty, through pumping credit into the local economy.

However, the country’s growing reliance on bank lending as the main engine of economic activity could be problematic.

This heavy dependence raises concerns about potential systemic risks, including rising bad debts, overheating in certain sectors, and increased vulnerability to external shocks.

Vietnam dong continues to fall against greenback

The dong weakened further against the greenback, this week, with the central exchange rate reaching a new low of VND 25,091 to the dollar.

This puts the currency down 3.08 percent since the start of the year (based on the central exchange rate set by the SBV).

The State Bank of Vietnam (SBV), however, continued to pump money into the economy.

There were US$4.19 billion worth of reverse repos outstanding as of close of business July 3. This was up from US$1.46 billion at the same time last week.

The SBV has also returned to issuing treasury bills, with US$351.1 million worth distributed.

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Food and beverage news

Korean coffee chain The Venti launches first Vietnam store

South Korean coffee chain The Venti has officially entered Vietnam, opening its first store in Ho Chi Minh City as part of a broader push to expand across Southeast Asia, ChosunBiz has reported→view source.

The Venti’s move into Vietnam reflects a strategic bet on the country’s rapidly growing cafe culture and youthful, trend-driven consumer base.

As Vietnamese consumers increasingly embrace global cafe experiences beyond traditional condensed milk coffee, international chains see opportunities to position themselves as aspirational yet accessible brands.

By introducing unique, locally tailored drinks and maintaining a focus on quality through direct control, The Venti is attempting to differentiate itself in a crowded market dominated by both local icons and global giants.

If it is successful in Vietnam, this could serve as a critical benchmark for other coffee brands looking to expand into Vietnam.

Human resources news

Labour union proposes 9.2 percent minimum wage hike from January 2026

The Vietnam General Confederation of Labour has proposed a minimum wage increase of 8.3 to 9.2 percent from January 1, 2026, citing inflation, productivity gains, and rising living costs.

Employers, however, are calling for a more modest adjustment of 3 to 5 percent, Dan Tri has reported→view source.

Key details:

Proposed increase: VND 290,000–450,000 (8.3–9.2 percent)
Effective date: January 1, 2026.
Supporting data: 2024 CPI (~4.5%), 5.88% productivity growth.
Employer proposal: 3–5 percent increase to preserve flexibility.
Council’s technical suggestion: 6.5–7 percent as a compromise range.
Next meeting: Early August 2025 to finalise the proposal.

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Insurance news

Fire and explosion insurance compulsory for 44 high-risk sectors from July 1

From July 1, 2025, Decree 105/2025/ND-CP will require 44 types of establishments at high risk of fire and explosion to purchase compulsory insurance.

This includes apartment buildings, factories, and collective housing, VietnamNet has reported→view source.

This comes after several high-profile fires in Vietnam, including the tragic 2023 mini apartment blaze in Hanoi that killed 56 people and the large textile factory fire in Binh Duong in 2024, both highlighting serious gaps in fire safety standards.

Manufacturing news

Vietnam’s PMI falls to 48.9 in June on weaker export demand

Vietnam’s manufacturing sector faced renewed headwinds in June, with the S&P Global Manufacturing PMI slipping to 48.9 from 49.8 in May→view source.

This marked the third consecutive month below the 50.0 no-change threshold, indicating a modest deterioration in business conditions as the first half of 2025 came to an end.

Real estate news

Trump golf course developer raises over US$157 million in private share issuance

Kinh Bac City Corporation (KBC), the firm developing the well-publicised Trump-branded resort in northern Vietnam, has raised more than VND 4,100 billion (about US$157.7 million) through the sale of 174.1 million shares, VN Express has reported→view source.

Key details:

Total shares issued: 174.1 million (66 percent of the planned amount)
Unsold shares: Nearly 76 million shares cancelled
Raised capital: VND 4,100 billion or US$157.7 million
Notable non-participants: Dragon Capital, Prudential Vietnam
Use of funds: To support ongoing projects, including the Trump International Hung Yen complex

Malaysian developer Gamuda sees Vietnam sales surge 165 percent

Malaysian construction group Gamuda Bhd reported a sharp rise in Vietnam project sales, Bloomberg has reported→view source.

Sales were up 165 percent year-on-year over nine months.

Of note, whereas local firms are still in recovery mode, well-capitalised foreign players like Gamuda are expanding aggressively, gaining market share, and capitalising on pent-up demand — especially in industrialising provinces and expanding urban zones.

This speaks to the two-tier economy, whereby domestic firms and foreign firms at times seem to operate in very different realities.

Stock market news

Foreign traders net-buy US$128.6 million of HoSE stocks

Over the last five trading sessions to the close of business on July 3, foreign investors net-bought US$128.6 million worth of HCMC Stock Exchange stocks.

This brings the current foreign-trader balance for the year to negative US$1.4 billion.

Foreign trader activity, last five trading days

	Buy		Sell		Change
Date	VND	US$	VND	US$	VND	US$
27/6	2,057	$78.51	2,069	$78.97	-12	-$0.46
30/6	2,174	$82.98	1,584	$60.46	590	$22.52
1/7	2,093	$79.89	2,457	$93.78	-364	-$13.89
2/7	2,516	$96.03	1,632	$62.29	884	$33.74
3/7	4,201	$160.34	1,923	$73.40	2,278	$86.95
Total	13,041	$497.75	9,665	$368.89	3,376	$128.86

VND = billions; US$ = millions; source: HSX

Trade news

Donald Trump announces trade deal with Vietnam.

US President Donald Trump has announced a new trade deal with Vietnam’s Communist Party General Secretary To Lam, outlining dramatic tariff changes and full US market access, per a post from the US President on Truth Social→view source.

Key details

Trump stated that Vietnam would pay a 20 percent tariff on all goods sent to the US, and a 40 percent tariff on transshipped goods.
In return, he said Vietnam would grant the US total market access, allowing American products to enter Vietnam at zero tariff.
Trump described the deal as a “Great Deal of Cooperation” and praised To Lam, calling him “highly respected” and his negotiations “an absolute pleasure”.
He highlighted SUVs and large engine vehicles as key US exports that could benefit from this alleged agreement.

It’s not clear what will constitute a “transhipped good”, nor the process that will be used to single out these products for separate tariffs, and therefore it’s difficult to determine just how impactful these changes might be.

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The week ahead

There are a handful of events coming up this week. For more information, see: Doing Business in Vietnam: Events Directory 2025.

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