This week’s Vietnam news roundup explores a US$1.5 billion aviation finance deal, fresh concerns over currency manipulation, APAX’s social insurance debts, possible energy shortages, VinFast’s widening losses, AEON’s finance fallout, carbon market reforms, and more….

In case you missed it…

Vietnam’s Economy in May: Unpacked

Last Friday, the National Statistics Office (NSO) released its May economic update. For the most part, the data was on trend; however, it comes amidst broad trade uncertainty and a generally hazy global economic picture. Against this backdrop, this article breaks down the key data points and policy factors that shaped Vietnam’s economic landscape in May. Read More »

The End of Vietnam’s Two-Child Policy: When Ideology Meets Economics

Vietnam may have scrapped its long-standing two-child policy last week, but the ideology behind it may be harder to shift. Coming just days after General Secretary To Lam urged the nation to “practice thrift and fight wastefulness,” the move signals less of a break from the past than a concession to present economic realities: a shrinking workforce, a strained social security system, and a manufacturing model under pressure. Read More »

💡Do you have insight others don’t?→Let us know 👉

Aquaculture news

Cargill exits Vietnam aquaculture feed market, closes two plants

Cargill has confirmed it is exiting Vietnam’s aquafeed business, including the closure of its facilities in Dong Thap and Long An, and its aquaculture technical application centre (TAC) in Tien Giang, Chan Nuoi Vietnam has reported→view source.

The company says the move is part of a strategic shift to prioritise markets and animal species with stronger long-term growth potential.

Automotive news

VinFast sees Q1 loss widen despite more deliveries, revenue growth

Vietnamese EV maker VinFast reported a Q1 net loss of US$712.4 million, widening 20 percent year-on-year as sales costs soared, despite a nearly 300 percent increase in vehicle deliveries and 150 percent revenue growth, Reuters has reported→view source.

VinFast’s scale-up has delivered strong volume growth, but its unit economics remain deeply negative. The firm continues to rely heavily on parent-company support as it faces intense global EV competition, limited brand trust, and elevated production costs.

Aviation news

Aviation: Vietnam Airlines signs US$1.5 billion financing MOU with ING

Vietnam Airlines has signed a Memorandum of Understanding with ING Bank to arrange up to US$1.5 billion in funding, according to a company announcement on June 11.

Of note, the deal remains at the MOU stage, meaning it is non-binding and does not yet represent a firm financial commitment.

Without details on interest rates, repayment schedules, or any government backing, it is still unclear whether Vietnam Airlines can secure the full US$1.5 billion on favourable terms.

As such, while the MoU is a positive signal, it remains a preliminary step in what will likely be a far more complex capital-raising process.

Banking and finance news

Japan’s AEON wants to void Vietnam finance acquisition over false accounting

AEON Financial Service (AFS) has declared its acquisition of Vietnamese lender Post and Telecommunication Finance Company (PTF) invalid, citing serious accounting irregularities prior to the deal, the firm has said in a statement.

AFS called the accounting falsehoods “absolutely unacceptable” and “totally against international business practice.”

This should serve as a reminder about the importance of due diligence in Vietnam’s financial sector.

Vietnam avoids ‘manipulator’ tag, still under scrutiny per Treasury FX report

The US Treasury has stopped short of naming Vietnam a currency manipulator, but has continued to flag several key concerns over how the dong is managed, according to its June 2025 Report to Congress on Macroeconomic and Foreign Exchange Policies.

Key details:

While the State Bank of Vietnam (SBV) has reversed its historic pattern of one-sided FX purchases, the dong still depreciated by 4.5 percent in 2024 and a further 2.4 percent in early 2025.
Treasury estimates Vietnam’s net FX sales reached 1.9 percent of GDP (around US$9 billion), aimed at stabilising the dong amid external pressures.
The Treasury also notes Vietnam’s large current account surplus (6.1 percent of GDP), and a US$123 billion goods trade surplus with the US—third largest globally.

The Treasury has urged more exchange rate flexibility and a shift to inflation targeting.

Vietnam mulls stricter cap on private bond issuers’ debt levels

Vietnam’s Finance Minister Nguyen Van Thang has called for stricter rules on private placement bond issuances, proposing a cap that would bar companies with liabilities more than five times their equity from raising capital through corporate bonds.

He did, however, suggest this should exclude key sectors like real estate, banking, and insurance, The Investor has reported→source.

Of note, the real estate sector, in the past, has routinely relied on high leverage and opaque fundraising structures, often issuing bonds with inadequate disclosures or investor protections.

As a result, the sector has been responsible for the majority of defaults and repayment issues in Vietnam’s bond market in recent years.

With this in mind, excluding real estate will likely significantly limit the effectiveness of these changes.

Vietnam dong continues to fall against greenback

The State Bank of Vietnam (SBV) has continued to carry out open market operations. Notably, there were US$1.38 billion worth of reverse repos outstanding as of the close of business June 12. There were, however, no outstanding treasury bills.

Of note, the value of the dong was relatively steady this week against the greenback. Whereas this time last week it was down by 2.68 percent over the start of the year, as of close of business June 12, it was only down by 2.66 percent (based on the central exchange rate set by the SBV).

🎯 Want to reach business leaders active across ASEAN? Partner with the-shiv 👉

Education news

Education: Vietnam English centre chain owes US$2.38 million in delayed social insurance payments

Apax Leaders, the once-prominent English centre chain linked to embattled businessman Nguyen Ngoc Thuy, has accrued nearly VND 62 billion or US$2.38 million in unpaid social insurance obligations, in Hanoi alone, VN Express has reported→view source.

The fact that Apax Leaders has been able to delay mandatory insurance payments for over five years—amounting to US$2.38 million—speaks to systemic enforcement gaps.

This is not an isolated case either; several large firms, including state-linked entities like Vinaxuki and Song Da 6, also appear on Hanoi’s delinquent list with debts spanning dozens of months.

This pattern speaks to a regulatory culture where labour obligations are deprioritised, oversight mechanisms are weak, and enforcement is often reactive rather than preventative.

Energy news

Vietnam finalises legal framework for carbon market, effective date August 1

Vietnam’s government has officially issued Decree 119/2025/NĐ-CP, amending a 2022 decree on greenhouse gas emissions and ozone layer protection.

The new regulations take effect on 1 August 2025, establishing the legal foundation for emissions quotas, carbon credit trading, and both domestic and international offset mechanisms.

Key details:

Covered sectors: Power, steel, cement, and other large GHG emitters
Carbon trading: Defines exchange rules for carbon credits and GHG quotas; introduces domestic exchange and registry.
International alignment: Incorporates Paris Agreement mechanisms (Articles 6.2 and 6.4) for bilateral and multilateral credit transfer.
Registry system: Mandates national digital tracking of quotas, offsets, and emissions reports.
Compliance timeline: Quota allocation begins 2025–2026; mandatory reporting expands in 2027–2028; full carbon market launch by 2029.

Vietnam major hydropower dam just 5 metres from dead water level

Vietnam’s largest hydropower reservoir was running at a critically low level of 85.05 metres as of June 10, 2024, Tuoi Tre has reported→view source.

While officials insist generation remains unaffected, comparisons with 2023 data suggest the plant has just 3 days of full-capacity generation remaining before hitting its operational floor.

Key details:

Current level (2024): 85m, just 5m above dead level (80m), and 32m below normal high (117m).
Historical context (2023): At 102m in June 2023, the plant had 13 days of generation left at full capacity before reaching 80m.
Back-of-envelope estimate (2024): 5m of usable head equates to ~3 days of continuous maximum output (1,920 MW).

Though technically still above the dead level, the margin for error is now slim. Without incoming floods or reduced drawdown, the plant could soon need to throttle output, just as summer electricity demand surges.

Of note, in 2023, it was estimated that power cuts cost the economy US$1.4 billion.

Vietnam signs EPC contract for long-delayed O Mon IV gas power plant

Vietnam has signed an engineering, procurement and construction (EPC) contract for the O Mon IV thermal power plant in Can Tho, awarding it to a consortium of Doosan Enerbility (South Korea) and PECC2 (Vietnam), English language news site, The Investor has reported.

Of note, the broader project has been postponed by nearly 20 years, with other EPC components having started two years earlier.

Causes of the delays include lengthy commercial negotiations over gas sales agreements, complex coordination across upstream (Block B gas), midstream (pipeline), and downstream (power plant) segments, and regulatory hurdles in permitting and investment approvals.

advertise with the-shiv

Real estate news

Vietnam’s Novaland seeks second deferral on US$50 million bond repayment

Vietnamese property developer Novaland (NVL) has requested another delay on a VND 1.3 trillion (US$50 million) bond lot—just one month before it’s due—despite already securing a two-year extension in 2023, VN Express has reported→view source.

Of note, Novaland’s repeated bond deferrals underscore the ongoing liquidity crisis facing Vietnam’s property sector.

With over US$1.2 billion in short-term obligations and limited cash flow, NVL’s survival has for a long time now been largely dependent on creditor leniency.

The case is emblematic of broader market fragility and a reminder for investors that Vietnam’s real estate sector is still some ways away from a full recovery.

Stock market news

Foreign traders net-sell US$76.47 million of HoSE stocks

Over the last five trading sessions to the close of business on June 12, foreign investors net-sold US$76.47 million worth of HCMC Stock Exchange stocks. This brings the total net-sold since the start of the year to US$1.54 billion.

Foreign trader activity, last five trading days

	Buy		Sell		Change
Date	VND	US$	VND	US$	VND	US$
6/6	1,618	$62.14	3,875	$148.82	-2,257	-$86.68
9/6	1,628	$62.53	1,972	$75.74	-344	-$13.21
10/6	2,484	$95.40	2,173	$83.46	311	$11.94
11/6	1,876	$72.05	2,031	$78.00	-155	-$5.95
12/6	2,491	$95.67	2,037	$78.23	454	$17.44
Total	10,097	$387.79	12,088	$464.25	-1,991	-$76.47

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

Technology news

US think tank says Vietnam’s cloud service framework unfair on US providers

Vietnam’s Ministry of Information and Communications (MIC) has issued a technical framework for e-government cloud services that, while voluntary on paper, effectively restricts market access for foreign providers, US think tank, the Information Technology & Innovation Foundation (ITIF), has said in a statement.

The statement claims compliance diverts resources from product innovation to localised engineering, that data localisation undermines best practices like “sharding,” weakening cybersecurity, and that US cloud leaders are effectively excluded from Vietnam’s public sector market.

This is one more in a string of statements from the ITIF which looks to be trying to capitalise on the current trade tensions between Vietnam and the US to lobby for reform and greater market access.

advertise with the-shiv

Trade news

Vietnam’s pivot to US grain imports on tariff threat raises concerns for current suppliers

Vietnam’s deepening trade engagement with the United States could reduce Argentina’s long-standing dominance as a grain supplier, according to a report by the Rosario Grain Exchange.

Argentina supplies over 50 percent of Vietnam’s corn and 65 percent of its soybean meal imports by value; however, Vietnamese buyers have signed initial contracts worth US$800 million for U.S. corn, soybean meal, wheat, and distillers’ grains, with planned imports up to US$2 billion.

This may have broader implications.

Specifically, Vietnam may enhance its reputation as a rational and strategic economic actor by demonstrating an ability to respond swiftly to evolving global trade dynamics.

However, the optics of this shift also carry risks.

By visibly pivoting its procurement to the US in the context of tariff threats and trade deficit complaints, Vietnam could be seen as acquiescing to pressure rather than asserting an independent, multilateral trade strategy.

This could lead to perceptions that Vietnam’s economic policy is overly susceptible to the demands of powerful export markets, which may unsettle its other trading partners.

Vietnam named in U.S. steel rebar trade petition alongside Algeria, Egypt, and Bulgaria

The Rebar Trade Action Coalition and its member companies filed a petition on June 4 with the U.S. Department of Commerce (DOC) and the US International Trade Commission (ITC).

The petitioners are seeking Antidumping duties (AD) on imports of steel concrete reinforcing bar (rebar) from Vietnam, Algeria, Egypt, and Bulgaria, and Countervailing duties (CVD) on imports from Vietnam, Algeria, and Egypt.

The petition alleges that Vietnamese rebar is being dumped in the U.S. at a margin of 115.44%, and that Vietnamese producers benefit from government subsidies that distort trade.

The week ahead

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

Your support keeps this site independent and objective.
If you find value in this work, please consider making a contribution.

$2/mo $5/mo $10/mo One-time

Need more convincing?

Our content is free because we believe a rising tide lifts all boats.

By making accurate, independent information accessible to everyone, we help create a more informed, resilient, and empowered business community.

When businesses, investors, policymakers, and everyday readers all have access to clear, unbiased analysis, it leads to better decisions, fairer opportunities, and stronger economic outcomes for all.

That said, while our content is free to read, it costs money to create.

Behind every article is careful research, fact-checking, and expert analysis — all of which require time, skill, and resources.

If you can spare a couple of dollars, your support helps ensure that reliable, unbiased information remains accessible to all.