Vietnam News Roundup: May 2 to May 8

In case you missed it…

Can LNG really save Vietnam-US trade?

There has been a lot said about Vietnam buying more LNG in order to reduce its trade surplus with the United States. There has even been some suggestion that Vietnam could buy as much as US$35 billion worth a year and store it offshore. But is buying more LNG really a realistic option? Read More »

Banking and finance news

Vietnam’s insurance market grows 5.6 percent in Q1

Vietnam’s total insurance premium revenue in Q1 2025 reached VND 56.58 trillion or US$2.26 billion, up 5.62 percent year-on-year. Non-life insurance recorded VND 22.01 trillion or US$880.4 million, rising 10 percent, with life insurance reaching VND 34.56 trillion or US$1.38 billion, growing 3 percent, according to data from the Ministry of Finance.

Of note, the non-life segment outpaced life insurance in growth, driven by increased demand for health, property, and motor insurance. Conversely, life insurance saw more moderate gains amid ongoing restructuring and tighter regulation following past scandals in the sector.

See also: Insurance in Vietnam 2025: Growth, Key Players & Regulations

Vietnam dong climbs slightly

The State Bank of Vietnam (SBV) has continued to carry out open market operations. Notably, there were US$2.84 billion worth of reverse repos outstanding as of the close of business May 8. There were, however, no outstanding treasury bills.

Of note, the value of the dong climbed a little this week. Whereas this time last week it was down by 2.52 percent over the start of the year, as of close of business May 1, it was only down by 2.40 percent (based on the central exchange rate set by the SBV).

See also:  Right Now, a Weak Dong Could be Good for Vietnam. Here’s Why.

Vietnam credit growth boosts bank Q1 profits, but deposit costs and provisioning rise

Vietnam’s system-wide credit grew 3.93 percent by March 31, nearly triple the pace in Q1 2024, Kinh Te Saigon has reported. However, the publication also notes that rising bad debts led to increased credit risk provisioning, with rising deposit interest costs also putting pressure on banks’ margins.

These Q1 2025 results reaffirm the paradox in Vietnam’s banking sector. While credit expansion and extraordinary income lifted headline profits, behind the scenes funding costs to feed that credit expansion are rising, and so is provisioning for the rising bad debts resulting from all of that new credit.

See also: It’s Time to Talk About Vietnam’s Credit Growth Policy…

Economy news

Vietnam PM holds steady on 8 percent growth target despite US tariff threat 

In a report delivered to the National Assembly, Prime Minister Pham Minh Chinh has said the government intends to maintain its growth target of 8 percent for 2025, even as it faces rising trade tensions with the United States. 

Vietnam’s 8 percent target on its own was ambitious from the start. With US tariffs now in the mix this may be even more of a stretch. That’s not to say it can’t be done but that it will be challenging.

See also: Vietnam’s 8 Percent GDP Growth Target: Unpacked

Inflation: Vietnam’s CPI up 3.2 percent year-to-date in April 2025

Vietnam’s April CPI rose 0.07 percent month-on-month and 3.12 percent year-on-year and was up 1.37 percent since December 2024, according to the latest data from the National Statistics Office. Year-to-date CPI (Jan–Apr) also increased 3.2 percent with core inflation up 0.21 percent month-on-month and 3.05 percent year to date.

See also: Vietnam CPI Tracker: March Update [data set] 

Government of Vietnam issues major resolution to boost private sector

Vietnam’s Politburo has released Resolution No. 68-NQ/TW, a directive that repositions the domestic private sector as “the most important driving force” of its socialist-oriented market economy. It calls for sweeping reforms to remove systemic barriers and elevate the private economy’s share of GDP beyond 60 percent by 2045.

This resolution looks great on paper, however, resolutions often tend to be overly optimistic and targets are often well beyond what is realistically possible. 

Some food for thought: Notably absent from the resolution is a clear outline of how these private sector development objectives will work with the objectives of the state-owned sector. For example, how will it ensure equal access to resources? Will it allow state-owned enterprises to thrive or dive at the will of the free market? Or, conversely, will it move to protect private enterprise the way it has historically protected its SOEs?

That is to say, there are a lot of questions that still need to be answered, however it does suggest that the concept of allowing for the private sector to play a bigger role in Vietnam’s economy is inching forward.

See also: Vietnam’s Private Sector Development Push: Unpacked 

Vietnam announces US$20 billion credit package to drive growth

A total of 21 commercial banks have registered to participate in a VND 500 trillion (US$20 billion) credit package to support businesses in infrastructure and digital technology, Deputy Governor Dao Minh Tu has told a press conference. The package will offer interest rates at least 1 percent lower than current commercial lending rates for a minimum of two years.

This is fully funded by commercial banks with no state budget or foreign loans involved.

This is interesting for a couple of reasons. For one, it’s not clear what’s in it for the banks which speaks to the opaque nature of Vietnam’s banking sector in general.

Also, Vietnam announced a VND 350 trillion (US$15 billion) economic recovery package in early 2022 in response to pandemic impacts and the slowdown, particularly in the real estate and construction sectors. However, it was largely unused. By late 2023, only around 40 percent of the package had been disbursed, with interest rate subsidies barely touched.

See also: Banking in Vietnam: Industry Overview

Energy news

Vietnam cuts LNG import tariff to 2 percent to spur transition and investment

Vietnam has lowered its preferential LNG import tariff from 5 percent to 2 percent under Decree No. 73/2025/ND-CP. The reduction boosts cost competitiveness of LNG-fuelled power and incentivises investment across the LNG value chain, from importers to generators, the Vietnam News Agency has reported.

This is in line with broad discussions about increasing imports of LNG from the United States to help close the gap in the balance of trade between the two countries. Of note, however, this change was made before the April 2 “reciprocal” tariff announcement.

See also: Gas Power in Vietnam

Vietnam’s Boviet Solar opens US$294 million solar module plant in North Carolina

Vietnamese firm Boviet Solar has opened its first US manufacturing facility in Greenville, North Carolina, with an investment of US$294 million. The plant will produce photovoltaic modules for residential, commercial, and utility-scale markets, Energy Tech has reported.

Of note, Vietnam electric vehicle maker VinFast announced a few years ago that it would be opening a US factory also in North Carolina (a project now abandoned). This could be pure coincidence, however, outbound investment from Vietnam is really rare so it is interesting that both projects were based in the same US state. 

Gold news

Vietnam demand slips despite investor interest and regional resilience: WGC

Gold jewellery demand in Vietnam fell by 15 percent year-on-year to 3.5 tonnes in Q1 2025, though it rose 5 percent from the previous quarter, according to the World Gold Council (WGC) Gold Demand Trends: Q1 2025. Bar and coin investment demand also dropped by 15 percent year-on-year to 12 tonnes, despite a 46 percent quarter-on-quarter rise.

However, gold demand figures, especially for bar and coin investment, are primarily based on actual sales volumes from retail outlets, wholesalers, refineries, and import/export data. If people want to buy gold but cannot—because of supply constraints or regulations—that unmet demand is not counted. It only shows up if a transaction happens.

Just to add some additional context, there were reports last month that some gold stores were limiting gold purchases to just one-tenth of a tael.

See also: The Gold Price in Vietnam: Explained

Manufacturing news

Vietnam April PMI sees sector contract sharply as US tariffs hit

Vietnam’s manufacturing sector shrank in April as newly announced US tariffs triggered a sharp drop in orders, production, and sentiment, according to a press release from S&P Global Vietnam Manufacturing Purchasing Managers’ Index. Vietnam’s PMI fell to 45.6, down from 50.5 in March, signalling the steepest monthly contraction since May 2023, largely as a result of the US tariffs announced at the start of the month, the press release says.

The downturn highlights the immediate impact of US tariffs on Vietnam’s manufacturing sector. With weakening demand, falling exports, and reduced hiring, the sector faces mounting pressure in the months ahead.

See also: Manufacturing in Vietnam

Nike, Adidas warn Trump tariffs threaten Vietnam-made US shoe supplies

A coalition of 76 brands including Nike, Adidas, Skechers, and Under Armour has warned the White House that recently announced import tariffs are an “existential threat” to their businesses.

In a letter penned by the Footwear Distributors and Retailers of America, the brands have claimed that many firms cannot absorb or pass on the new costs, particularly those selling to low- and middle-income consumers, CNBC has reported.

Notably, most of these brands manufacture in Vietnam which has seen its footwear industry boom in recent years. Manufacturers for Nike alone employ around half a million Vietnamese with footwear exports in 2024 amounting to US$22.9 billion. That is to say, an “existential threat” to these footwear brands may also pose an existential threat to Vietnam’s footwear industry too.

See also: What’s Next for Vietnam if Trump’s 46 Percent Tariff is Here To Stay? 

Sanctions news

EU to target Vietnamese companies aiding Russian sanctions evasion

For the first time, the European Union plans to sanction a Vietnamese company for allegedly assisting Russia in bypassing trade restrictions, as part of its 17th sanctions package since the Ukraine invasion, the Financial Times is reporting.

The article notes that:

• A Vietnamese company is among about a dozen in third countries identified by the EU as helping Russia evade sanctions. Others include firms in Turkey, Serbia, the UAE, and Uzbekistan.
• If approved, this would mark the first instance of Vietnam being directly sanctioned by Brussels in relation to the Russia–Ukraine conflict.

This move puts Vietnam in the crosshairs of major geopolitical enforcement actions, highlighting the growing risks for Vietnamese companies working with Russian firms. Of note, Vietnam-Russia trade totalled just shy of US$4.6 billion in 2024 an increase of 26 percent compared to 2023. 

See also: How to Start a Business in Vietnam

Stock market news

Vietnam’s long delayed KRX trading system finally goes live 

Vietnam’s Ho Chi Minh City Stock Exchange (HoSE) has officially launched its new KRX trading system, ten years after it was first conceived. It’s hoped the new system will improve liquidity, trading efficiency, and pave the way for a market status upgrade

See also: The Vietnam Stock Exchange: Unpacked

Foreign traders net-buy US$7.55 million of HoSE stocks

Over the last five trading sessions to the close of business on May 1, foreign investors net-bought US$7.55 million worth of HCMC Stock Exchange stocks. This brings the total net-sold since the start of the year to US$1.5 billion or US$4.98 billion since January 1, 2024.

See also: Vietnam’s Foreign Investor Stock Sell-Off: Unpacked

Foreign trader activity, last five trading days

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

Tourism & hospitality

Vietnam receives 7.67 million international visitors in first four months of 2025

Vietnam’s April 2025 tourist arrivals hit 1.65 million, down 19.5 percent from March, but up 6.3 percent year-on-year, according to the latest data from the National Statistics Office (NSO). Year-to-date (Jan–Apr 2025) total arrivals reached 7.67 million, up 23.8 percent compared to the same period in 2024.

See also: Vietnam Tourist Arrivals Tracker

Transport & infrastructure news

Vietnam’s metro targets at risk without unified standards: Expert

Vietnam lacks a complete, harmonised framework for metro construction, making it harder to train engineers, approve designs, and maintain infrastructure over time, engineer Le Van Cuong, who consulted on Ho Chi Minh City’s Metro Line 1, has told VN Express. Moreover, he has warned that inconsistent standards lead to higher costs, longer build times, and difficulties in operations and maintenance.

Of note, Ho Chi Minh City has plans for 510 km of metro lines by 2045, up from just 20 km today. This is an ambitious target with that first 20 kilometers taking about 12 years to complete both late and over budget. That is to say, these comments from Cuong speak to the changes that may need to be made from a technical perspective (as opposed to bureaucratic) to avoid a repeat of these delays and budget overruns on future metro projects.

See also: Transport & Infrastructure: Roads, Rail, Air, Maritime & Urban Development 

Trade news

Vietnam’s import-export turnover up 15.7 percent year-to-date, surplus narrows

Vietnam’s April trade turnover reached US$74.32 billion, down 1.4 percent from March, up 21.3 percent year-on-year, according to the latest data from the National Office of Statistics. Year to date, total trade reached US$276.89, up 15.7 percent year-on-year.

Imports

Vietnam’s imports reached US$36.9 billion. This was the same as March which also recorded US$36.9 billion in imports. Top import categories were computers, electrical products, spare-parts and components thereof; machines, equipment, tools and instruments; and fabrics, according to the latest data from Vietnam Customs.

See also: Vietnam Imports Tracker: April Update [data set] 

Exports

Vietnam’s exports fell to US$37.4 billion in April down from US$38.5 billion in March. This represents a decrease of 23.8 percent, according to the latest data from Vietnam Customs.

See also: Vietnam Exports Tracker: April Update [data set] 

The week ahead

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