Last week, Vietnam’s relatively new General Secretary, To Lam, announced that he wanted to see Vietnam’s private sector expand to 70 percent of GDP by 2030. This is not a new concept but it has historically been somewhat of a struggle to realise. With this in mind, this article looks at Vietnam’s private sector development, why it has failed to break out, and what might be different this time around… Read More »

Accounting news

Profit swings to loss for Vietnam power firm after labelling error found

Nearly a year after publishing its 2023 financial report, Thang Long Thermal Power Joint Stock Company — a member of Geleximco Group — changed is reported 2023 profit of VND 122 billion (US$4.8 million) to a loss of more than VND 528 billion (US$20.6 million). Notably, the correction came after the company issued nearly VND 1,800 billion in bonds, VietnamNet has reported.

This correction raises questions about transparency, internal controls, and investor protection. It also speaks to broader reporting problems for Vietnamese firms.

In a similar incident last year, real estate giant Novaland, recorded its worst half-year on record after audited financial reports found huge discrepancies. Specifically, the company’s own financial statements reported a profit of VND 3.5 trillion or US$142.2 million, however, an audit found the company had actually made a loss of VND 7.3 trillion or US$296.6 million.

Agriculture news

Vietnam agriculture calls for land limit reform to grow

Agriculture sector business leaders told Thanh Nien that current land limit regulations are forcing them to engage in complex land transfers involving multiple individuals and state approvals, increasing costs and risks. This is resulting in a fragmented, small-scale agricultural landscape that deters private sector investment, particularly in high-tech and export-oriented production.

Thanh Nien also notes that:

In 2024, agriculture contributed nearly US$18 billion to Vietnam’s US$25 billion trade surplus — 72 percent — but land size limits are seen as a major barrier to scaling up.
Under Decree 43/2014, land limits for farming and aquaculture are capped at 30 hectares, while perennial crop and forest land is limited to 100–300 hectares, depending on the region.
In the Mekong Delta, private investment accounts for 61 percent of the region’s total social investment, but its national share has declined from 14.9 percent in 2014 to 12.4 percent in 2023.
About 43 percent of private investment in the region is still household-based, suggesting a lack of engagement from formal businesses.

This speaks to the challenges facing private enterprise in Vietnam’s agricultural sector and looks to have become a point of discussion on the back of well-publicised plans to see Vietnam’s private sector make a greater contribution to the country’s GDP.

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$3.6 billion worth of reverse repos outstanding as of the close of business March 27. There were, however, no outstanding treasury bills.

Of note, the dong has continued to depreciate this week. Whereas this time last week it was down by 1.91 percent over the start of the year, as of close of business March 27 it was down by 2.07 percent.

This is, of course, not necessarily a bad thing with a weaker dong supporting smaller enterprises to sell more goods both locally and to overseas buyers.

Vietnam to raise foreign ownership cap to 49% at banks receiving mandatory transfers

Foreign investors will be allowed to own up to 49 percent of the charter capital in Vietnamese commercial banks that take over other distressed banks, starting from May 19, under Decree 69/2025/ND-CP. The change applies to banks like MB, HDBank, and VPBank, which are participating in state-mandated acquisition and restructuring of weaker banks, VietnamBiz has reported.

Key points

The current cap on foreign ownership in Vietnamese commercial banks is generally 30 percent (See also: Vietnam’s Foreign Ownership Limits: Banking and Finance).
The new ceiling applies only during the implementation of the approved compulsory transfer (CGBB) plan and does not apply to state-owned banks with more than 50 percent state capital.
In special cases, the Prime Minister may still approve higher foreign ownership beyond existing limits to ensure systemic stability.

This move is part of Vietnam’s broader effort to restructure its banking sector which has seen a number of banks fall under ‘special administration’ by the State Bank of Vietnam. Basically, rather than allowing a bank to go bankrupt, the SBV takes the struggling bank under its wing and then tries to find another bigger, more well-run bank to take over. This has not been a smooth process–the SBV sometimes has to hold on to these banks for years. It can also be costly.

Environment news

Vietnam to roll back some environment protection obligations for small business

Vietnam is refining its Extended Producer Responsibility (EPR) policy to ease compliance for small businesses. This includes removing EPR obligations from manufacturers and importers of packaging for export, temporary import and re-export, or for research and testing purposes and companies with annual packaging sales revenue under VND 30 billion (US$78 million), VN Economy is reporting.

This fits with a more pegged-back approach to environmental protections in recent years. The Just Energy Transition Partnership agreement, for example, is languishing with little financing released to date. Moreover, cuts to the environmental protection tax have been extended to the end of 2025 and power shortages in 2023 have seen Vietnam ramp up coal use.

Food and beverage news

Bad debts to see well-known Vietnam ship-restaurant to go under the hammer

The HCM City Property Auction Service Center is set to auction the debt of Hao Huy Trading Company Limited to recover nearly VND 134 billion (US$5.24 million) owed to Vietnam’s Agribank. The debt is secured by the well-known Elisa ship restaurant anchored at the foot of Nguyen Hue Boulevard in the heart of Ho Chi Minh City, Tuoi Tre is reporting.

This is in line with continued efforts to clean up bad debt across Vietnam’s banking system, a long-standing issue that regulators and state-owned banks have been under pressure to resolve. By moving to liquidate high-profile collateral like the Elisa floating restaurant, banks may be signalling a firmer stance on debt recovery.

It may also be indicative of broader challenges in Vietnam’s post-pandemic service sector. Tourism, hospitality, and entertainment were among the hardest hit during the pandemic, and while travel demand has rebounded, many businesses remain burdened by legacy debts, weakened cash flow, and slower-than-expected consumer recovery.

Media news

Vietnam local broadcasters in crisis as staff go unpaid for months

Staff at An Giang and Can Tho Radio and Television Stations have publicly petitioned provincial authorities after going months without pay or allowances, Dan Tri is reporting. This is a rare move that underscores the financial distress facing Vietnam’s local state-run media.

Both stations say revenue shortages stem from a push for financial “self-sufficiency” in public media, implemented without sufficient support or adaptation. At the same time, digital competitors are increasingly absorbing market share.

This is not an isolated incident either. Staff at Soc Trang’s broadcaster have reportedly gone 15 months without payment, with the outlet accumulating VND 15 billion in debt.

This is indicative of the deep institutional strain in Vietnam’s local media, where financial autonomy policies have clashed with shrinking revenues. That journalists have publicly petitioned for help—a rare move in Vietnam—signals severe erosion of morale and trust. Without urgent structural reform or new funding models, more outlets may face insolvency, undermining the state’s ability to maintain public media services.

Seafood news

Vietnam’s seafood exports at risk as US tightens marine mammal rules

Vietnam’s seafood industry is under mounting pressure as the United States enforces stricter regulations under the Marine Mammal Protection Act (MMPA), which could lead to an import ban on key fishing products by 2026 if Vietnam does not meet US standards, Zing News is reporting.

Zing News goes on to note that:

The US National Oceanic and Atmospheric Administration (NOAA) issued a preliminary ruling that Vietnam’s marine mammal protection measures are not comparable to US standards for 12 fishing methods, including gillnets, trawls, and purse seines.
Seafood species at risk of being banned from US import include tuna, swordfish, squid, grouper, mackerel, snapper, and crab.
NOAA has asked Vietnam to provide evidence of improved management and conservation efforts by April 1, with a final decision due by November 30.
If standards are not met, a ban on affected seafood imports to the US will take effect from January 1, 2026.
The US is also expanding the Seafood Import Monitoring Program (SIMP), increasing documentation requirements and compliance costs for exporters.

The US is one of Vietnam’s largest seafood export markets, and failure to meet MMPA standards could jeopardise a significant share of export revenue. It’s also worth noting that Vietnam still has a ‘yellow card’ from the EU with respect to the bloc’s Illegal, unreported and unregulated (IUU) fishing regulations. That is to say, that the need to create a more sustainable fishing industry is becoming an economic imperative.

Stock market news

Foreign traders net-sell US$104 million of HoSE stocks

Over the last five trading sessions to the close of business on March 27, foreign investors net-sold US$103.54 million worth of HCMC Stock Exchange stocks. This brings the total net-sold since the start of the year to US$948.3 million or US$4.84 billion since January 1, 2024.

Foreign trader activity, last five trading days

	Buy		Sell		Change
Date	VND	US$	VND	US$	VND	US$
21/3	2,716	$106.20	3,666	$143.34	-950	-$37.15
24/3	1,618	$63.26	2,338	$91.42	-720	-$28.15
25/3	1,753	$68.54	2,153	$84.18	-400	-$15.64
26/3	1,291	$50.48	1,805	$70.58	-514	-$20.10
27/3	1,381	$54.00	1,445	$56.50	-64	-$2.50
Total	8,759	$342.48	11,407	$446.02	-2,648	-$103.54

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

Technology news

Vietnam to allow SpaceX Starlink on trial basis through 2030

Vietnam has approved a trial run of SpaceX’s Starlink satellite internet service, allowing the U.S. company to offer both fixed and mobile connectivity across the country until the end of 2030, including on flights, Reuters has reported.

Key points:

The trial will allow up to 600,000 subscribers during the period.
The government has placed no limit on foreign ownership of the service
Starlink will be permitted to provide both fixed and mobile internet plans, including in-flight connectivity.
It is not yet clear whether SpaceX has formally applied for a licence.

The move could expand Vietnam’s rural and remote internet coverage and is being viewed by some analysts as a diplomatic gesture to strengthen U.S. ties and potentially mitigate the risk of U.S. trade penalties. It also signals a rare opening in Vietnam’s tightly regulated telecoms sector, possibly setting a precedent for greater foreign participation in critical digital infrastructure.

Trade news

Vietnam looking at reducing import tariffs on range of ag. goods, resources

The Ministry of Finance is preparing a draft decree for the government that, if approved, will adjust Vietnam’s Most Favoured Nation (MFN) import tax rates down. This is at the request of the Prime Minister in response to “complex and unpredictable developments of the world’s geopolitical and economic situation” (READ: US tariff policy), Zing News is reporting.

Items set to have their import tariff cut include:

MFN import tax on certain types of passenger cars (HS code 8703) will be reduced from 64 percent and 45 percent to a unified rate of 32 percent.
Ethanol will be reduced from 10 percent to 5 percent.
Selected food items will see reductions:
Frozen chicken thighs: from 20 percent to 15 percent
Pistachios: from 15 percent to 5 percent
Almonds: from 10 percent to 5 percent
Fresh apples: from 8 percent to 5 percent
Cherries: from 10 percent to 5 percent
Raisins: from 12 percent to 5 percent
Wood and wood product tariffs will drop from 20–25 percent to 5 percent.
LNG will be cut from 5 percent to 2 percent, and ethane will be added to the list of products subject to 0 percent tax.

The week ahead

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

Of note: If you’re interested in a more in depth assessment of this or anything to do with the business environment in Vietnam, I do take commissions and I am always open to collaborate. You can reach me on LinkedIn – Mark

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