In case you missed it…
Could Vietnam Benefit From a Bit of Polish ‘Shock Therapy’?
Vietnam wants to develop fast but this will require significant economic reforms and for those reforms to be implemented quickly. But whereas there is a tendency to look regionally for economic models to emulate, it might also be worth looking to the ex-Soviet Eastern European states, like Poland, which went from a low-income to high-income economy in only a few decades. With this in mind, this article looks at what Poland did that allowed for such a rapid change in its fortunes and whether or not Vietnam can do the same… Read More »
Automotive news
Industry pushes back on Vietnam EV charging station sharing proposal
A proposal to require businesses to share electric vehicle (EV) charging stations has drawn strong opposition from industry leaders and experts. The proposal, made by Dr Tran Huu Minh of the National Traffic Safety Committee, is aimed at optimising infrastructure use — but has been criticised as undermining fair competition and private investment, according to VietnamNet.
This debate underscores the growing tension between promoting rapid EV adoption and protecting early domestic investors like VinFast. Forcing private firms to share infrastructure without compensation risks discouraging further investment and handing advantages to foreign automakers unwilling to invest in Vietnam’s EV ecosystem.
See also: Automotive Industry in Vietnam
Ducati closes Hanoi showroom amid weak demand in northern Vietnam
Ducati Vietnam will shut down its only northern showroom in Hanoi on Tuesday, citing low performance and limited demand in the region. The decision leaves Ho Chi Minh City as the brand’s sole dealership location in the country, VN Express is reporting.
The closure speaks to the broader challenges facing luxury goods in Vietnam. Whereas pre-COVID wealth accumulation was rapid and spending on luxury goods popular by extension, a lot of businesses have struggled since the pandemic and there has been a general air of belt-tightening amidst broader economic uncertainty.
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$3.3 billion worth of reverse repos outstanding as of the close of business April 3. 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 2.07 percent over the start of the year, as of close of business April 3 it was down by 2.10 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.
See also: Right Now, a Weak Dong Could be Good for Vietnam. Here’s Why.
Electricity news
FDI investors warn of financial distress if Vietnam retroactively revises solar FIT
Vietnam is considering retroactively adjusting the Feed-in Tariff (FIT) rates for solar energy projects raising significant concerns among foreign direct invested (FDI) enterprises. The FIT rate, initially set at 9.35 cents per kilowatt-hour (kWh) could potentially be reduced to 7.09 cents or even 4.8 cents per kWh, VN Express has reported.
This has obvious implications for doing business in Vietnam, particularly in the renewables sector but more broadly too. If it goes ahead investor confidence could take a hit which would not be good news for Vietnam’s economy which is very dependent on foreign direct investment and foreign firms.
See also: Electricity in Vietnam: Industry Overview
Vietnam’s electricity output surges, but efficiency lags behind regional peers
Vietnam’s electricity efficiency — measured by how much electricity is consumed per US$1,000 of GDP — remains significantly lower than regional peers, according to an op-ed by Dr. Le Hai Hung, Director of the Institute of Research and Application of Technology (IRAT) and published by VietnamNet. Specifically, Vietnam consumes nearly 2.8 times more electricity than Indonesia and 2.4 times more than the Philippines to generate the same economic value.
The linked article suggests this is because Vietnam’s economy is still dominated by power-intensive industries; a lot of enterprises are still using old, inefficient equipment; and relatively low electricity prices are discouraging conservation and investment in energy-saving technologies.
Adding to that, this may also speak to overproduction in state-owned enterprises in energy-intensive industries, like steel and cement. Notably, cement output last year was 95 million tons, however, domestic consumption was only 65 million tons.
See also: Cement Industry in Vietnam
Delays, legal hurdles, weak policy incentives holding back Vietnam waste-to-energy projects
Vietnam’s waste-to-energy (WtE) projects, widely seen as critical for addressing urban pollution and generating renewable energy, are hampered by administrative complexity, legal overlaps, and an uncompetitive pricing framework. Despite their potential, most projects take 5 to 8 years to complete, with many facing long delays, VietnamNet is quoting an ‘investor’ as saying.
Vietnam generates vast volumes of urban waste, and WtE offers a path to reduce landfill dependency and produce power. Yet without legal streamlining, planning synchronisation, and pricing reform, WtE looks set to remain underdeveloped. Investors need clear service contracts, stable pricing, and regulatory certainty but it’s not clear that that will be forthcoming any time soon.
See also: Rethinking Financing Vietnam’s Clean Energy Transition
Insurance news
Vietnam’s life insurance market to contract in 2025, but recovery expected in 2026
Vietnam’s life insurance market is projected to shrink by 1.3 percent in 2025, with gross written premiums (GWP) falling to VND 146.1 trillion (US$6.0 billion), according to GlobalData. This follows successive contractions of 12 percent in 2023 and an estimated 5.7 percent in 2024, driven by a collapse in consumer trust linked to bancassurance sales misconduct.
That said, strengthened regulation, evolving demographics, and technology adoption are expected to restore consumer trust and expand coverage over the long term — especially as healthcare costs rise and the population ages.
See also: Vietnam’s Life Insurance Industry
Real estate news
Vietnam’s Novaland 2024 audit raises red flags over ability to continue operating
Novaland (NVL), one of Vietnam’s largest real estate developers, posted a VND 4,395 billion (approx. US$176 million) loss in 2024 and faces ongoing concerns about its ability to continue as a going concern, according to its latest audited financial statements and reported by CafeF.
Novaland’s financial position highlights the broader liquidity challenges facing Vietnam’s property sector. Its heavy reliance on debt restructuring, asset sales, and legal reinterpretations underscores continued risk. Though the company reports progress in negotiations and restructuring, auditor caution suggests ongoing uncertainty and the ability to meet obligations in 2025 will be a critical test of its recovery.
See also: Real Estate Industry in Vietnam
Steel news
Vietnam imposes temporary anti-dumping duties on China, South Korea coated steel
Vietnam’s Ministry of Industry and Trade (MoIT) will issue temporary anti-dumping duties on certain coated steel products originating from China and South Korea per Decision 914/QD-BCT. The move aims to protect domestic manufacturers from a surge in low-priced imports, according to a statement on its website.
Temporary duty rates will be set at up to 37.13 percent for China and 15.67 percent for South Korea. This is in line with attempts to curb surging imports of underpriced steel and protect Vietnamese producers. It also reflects Vietnam’s increasing use of trade defence tools to safeguard domestic industries.
See also: Can Vietnam Survive the Steel-Trade Wars?
Stock market news
Foreign traders net-sell US$252.7 million of HoSE stocks
Over the last five trading sessions to the close of business on April 3, foreign investors net-sold US$252.70 million worth of HCMC Stock Exchange stocks. This brings the total net-sold since the start of the year to US$1.2 billion or US$4.7 billion since January 1, 2024.
See also: Vietnam’s Foreign Investor Stock Sell-Off: Unpacked
Foreign trader activity, last five trading days
| Buy | Sell | Change | ||||
| Date | VND | US$ | VND | US$ | VND | US$ |
| 28/3 | 1,661 | $64.37 | 2,065 | $80.02 | -404 | -$15.66 |
| 31/3 | 1,698 | $65.80 | 2,977 | $115.37 | -1,279 | -$49.56 |
| 1/4 | 1,884 | $73.01 | 2,324 | $90.06 | -440 | -$17.05 |
| 2/4 | 1,969 | $76.30 | 2,678 | $103.78 | -709 | -$27.48 |
| 3/4 | 2,050 | $79.44 | 5,739 | $222.40 | -3,689 | -$142.96 |
| Total | 9,262 | $358.92 | 15,783 | $611.63 | -6,521 | -$252.70 |
VND = billions; US$ = millions; source: Vietnam Stock Market Tracker
Trade news
Trump’s 46% tariff on Vietnam imports shocks businesses, rattles markets
President Donald Trump has announced a sweeping 46 percent import tariff on goods from Vietnam, citing trade imbalances, currency manipulation, and restrictions on U.S. remanufactured goods. The move is part of a broader trade policy shift targeting countries with high tariff and non-tariff barriers against U.S. products.
Vietnam’s current average MFN tariff rate is 9.4 percent, significantly higher than the U.S. average of 3.3 percent, according to a White House press release. The U.S. also criticised Vietnam for restricting imports of remanufactured goods.
Of note, domestic media outlet Tuoi Tre in Vietnam has sourced responses from local businesses.
- Ngo Sy Hoai, Vice President of the Vietnam Wood and Forest Products Association, told the publication the tariff was “terrible,” particularly for wood exporters.
- Mac Quoc Anh, Vice President of the Hanoi SME Association, said the tariff is “almost blocking” Vietnam’s access to the U.S. market, especially for wood, textiles, seafood, and household goods.
- The publication also notes that businesses are rushing to ship goods before the tariff order takes effect and are scrambling to restructure operations to absorb the shock.
Conversely, Dan Tri has covered the announcement by looking at the market response. It notes that:
- The VN-Index dropped over 43 points shortly after markets opened on April 3, plunging below the 1,300-point mark. Sectors hit hardest included real estate, banking, steel, and tech.
- The panic in Vietnam is mirroring global sentiment, with U.S. markets also plunging following Trump’s broader tariff announcement.
This announcement threatens Vietnam’s competitive edge in global trade, especially compared to regional rivals like Mexico, India, and Thailand. Notably, these tariffs are among the highest announced. Despite moving to reduce some MFN tariff rates and agree to make major purchases from the US to try and preempt excessive tariffs, Vietnam still looks to have been one of the worst affected. It’s not clear what the country’s next move might be.
See also: Buy More, Sell Less: Tackling Vietnam’s Trade Surplus with the US
The week ahead
There are a handful of events coming up this week. For more information, see: Doing Business in Vietnam: Events Directory 2025.