This week’s Vietnam news roundup covers the Trump Tower in Ho Chi Minh City, the dong’s continued slide, the Saigon Square raid on counterfeit goods, trade tensions with the US, moves to speed up foreign work permits, and more…

In case you missed it…

Could A Trump Tower Really Break Ground in Vietnam Next Year?

Last week, it was widely reported that work could start on a Trump Tower in Ho Chi Minh City as soon as next year. However, Vietnam’s real estate sector is not flush with cash, and this could make it challenging to get this project off the ground. Read More »

What The Economist Episode Says About Public Debate in Vietnam

The edition of The Economist featuring General Secretary To Lam — literally pictured with stars in his eyes — offered more than just sharp analysis of Vietnam’s economic trajectory. It also, indirectly, proffered valuable insights into how Vietnam’s public space for debate operates. Read More »

Automotive news

Vietnam introduces separate electricity tariff for EV charging stations

Vietnam has introduced a separate electricity pricing mechanism for electric vehicle (EV) charging stations under Decision 14/2025, effective May 29, Nguoi Quan Sat has reported. This is as opposed to being charged at either the retail or business price.

Prices will range from 71 to 195 percent of the current average retail rate of VND 2,204/kWh, depending on voltage level and time of day.

The article notes that local EV maker VinFast, however, has raised concerns that low-voltage peak-hour charges will be as high as VND 4,298/kWh and that this undermines both consumer uptake and infrastructure investment.

Aviation news

Vietnam aviation authority defends Vietjet’s use of Comac aircraft

Vietnam’s Civil Aviation Authority has formally defended Vietjet’s decision to operate Chinese-made Comac ARJ21 aircraft, responding to concerns raised by a member of the Vietnam Fatherland Front about potential safety risks, Lao Dong has reported.

The concerns cited Comac’s lack of FAA and EASA certification, minimal global flight hours, and limited operational history compared to legacy aircraft such as the Airbus A320.

VietJet Air calls on government to target critics

Vietnam budget airline, VietJet Air, has asked Hanoi’s mayor to clamp down on social media users spreading what it calls “false information”, Radio Free Asia has reported.

VietJet CEO Nguyen Thi Phuong Thao was directly named in the government’s Facebook post, but later quietly edited out.

Of note, in a similar incident earlier this year, two social media users were interrogated by police and forced to sign commitments not to repeat posts mocking Thao and VietJet.

This is worth being mindful of in that it speaks to the reality that what is in the public arena is not always a true representation of public sentiment toward a firm or its reputation.

Banking and finance news

South Korea’s IBK clears key hurdle for Vietnam entry after eight-year wait

The State Bank of Vietnam has issued a confirmation letter to the Industrial Bank of Korea (IBK), signalling the official start of the review process for the Korean policy lender’s long-pending subsidiary application, The Korean Herald has reported.

IBK first submitted its application nearly eight years ago, but no approvals have been given since UOB was approved in 2017, showing how rare and drawn-out the process of establishing a foreign banking subsidiary in Vietnam can be.

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$1.56 billion worth of reverse repos outstanding as of the close of business June 5. There were, however, no outstanding treasury bills.

Of note, the value of the dong fell again this week against the greenback. Whereas this time last week it was down by 2.55 percent over the start of the year, as of close of business June 5, it was down by 2.68 percent (based on the central exchange rate set by the SBV).

Economy news

Vietnam’s growth to moderate amid rising inflation and global uncertainty: OECD

Vietnam’s GDP growth is expected to ease to 6.2 percent in 2025 and 6.0 percent in 2026, as global trade tensions and policy uncertainty weigh on exports and foreign investment, according to the latest OECD Economic Outlook.

The report says that Vietnam’s GDP is projected to slow due to weaker exports and softer foreign direct investment inflows. It also notes that the US accounts for 30 percent of Vietnam’s exports and that a potential rise in US tariffs from 10 percent to 46 percent poses a major downside risk.

Insurance news

Cathay Life in Vietnam under fire for marketing life insurance as ‘savings books’

Cathay Life (Vietnam) is facing scrutiny for marketing its life insurance products as “super savings” schemes or “savings books”, misleading consumers about the true nature of the product, local news outlet, Tuoi Tre has alleged.

Of note, similar allegations in the past against major banks and insurers led to an investigation that revealed systemic mis-selling of insurance products, prompting government scrutiny, a wave of customer complaints, a lot of bad press, and subsequently a downturn for the industry.

Human resources news

Vietnam Ministry proposes cutting foreign work permit processing time to 10 days

The Ministry of Home Affairs (MoHA) is proposing to reduce the processing time for issuing work permits to foreign workers in Vietnam from 36 days to 10 days, English language news site, Vietnam News has reported.

The proposal includes online application and processing, a unified national database of foreign workers, and expanded recognition of foreign health certificates (valid for 12 months).

Manufacturing news

Vietnam manufacturing activity contracts again in May despite rebound in output

Vietnam’s Manufacturing PMI rose to 49.8 in May from 45.6 in April, an improvement but still below 50, indicating the industry is still in contraction, according to the latest data from S&P Global.

New export orders fell sharply for the second straight month, linked to the impact of US tariffs on demand. However, output returned to growth as tariff policy appeared more stable than in April.

Policy news

Vietnam GS calls for thrift to drive sustainable development

General Secretary To Lam has called for greater thrift and efforts at fighting waste in Vietnam, in a wide-ranging article published Sunday.

The call was framed in traditional Party ideology, drawing heavily on the teachings and legacy of President Ho Chi Minh.

This, however, comes amid a push to grow Vietnam’s economy through domestic consumption.

That is to say, the emphasis on frugality and restraint runs counter to current policy goals that encourage spending, private sector investment, and entrepreneurial risk-taking.

It’s not clear how significant this is, but it bears monitoring in the event that it signals a bigger policy shift, in particular a preference for austerity over stimulus.

Retail news

Vietnam cracks down on counterfeit goods at Saigon Square

Thousands of items suspected of violating intellectual property laws were seized during a surprise inspection at Saigon Square on May 29, VN Express has reported.

Brands targeted included Rolex, Louis Vuitton, Gucci, Chanel, Hermès, Dior, and more, with counterfeit goods ranging from watches and handbags to eyewear and suitcases.

The Saigon Square raid is in line with renewed efforts to enforce intellectual property rights in Vietnam’s retail sector. This is part of a push to placate US trade stakeholders who have raised counterfeit goods as a key non-trade barrier to doing business in Vietnam.

Stock market news

Foreign traders net-buy US$35.36 million of HoSE stocks

Over the last five trading sessions to the close of business on June 5, foreign investors net-sold US$35.36 million worth of HCMC Stock Exchange stocks. This brings the total net-sold since the start of the year to US$1.46 billion.

Foreign trader activity, last five trading days

	Buy		Sell		Change
Date	VND	US$	VND	US$	VND	US$
30/5	2,208	$84.68	3,293	$126.29	-1,085	-$41.61
2/6	1,980	$75.93	2,186	$83.84	-206	-$7.90
3/6	2,868	$109.99	2,014	$77.24	854	$32.75
4/6	2,336	$89.59	2,346	$89.97	-10	-$0.38
5/6	1,462	$56.07	1,937	$74.29	-475	-$18.22
Total	10,854	$416.26	11,776	$451.62	-922	-$35.36

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

Technology news

US think tank says Vietnam’s content rules undermine US tech firms’ competitiveness

Vietnam’s sweeping content moderation law, Decree 147/2024, is reshaping the digital playing field in ways that heavily disadvantage US tech giants, the Information Technology and Innovation Foundation (ITIF) has said in a statement.

The Decree, which came into effect at the end of last year, mandates local data storage and user verification, and provides authorities with access to proprietary search algorithms, the statement says. This forces platforms to divert resources from innovation to compliance.

Vietnam’s regulatory regime around online content has been a point of contention in trade talks between Vietnam and the US, listed as one of many non-tariff barriers in the USTR’s most recent National Trade Estimates report.

Trade news

US pushes Vietnam to cut reliance on China amid tariff talks

The US has submitted a detailed annex of “tough” trade requests to Vietnam with key demands that include reducing imports from China and tightening control over supply chain origins, Reuters has reported.

The list was delivered to Hanoi in late May, following the second round of bilateral trade talks, and urged Vietnam-based manufacturers to cut their use of Chinese components and materials.

Vietnam hires US$15K a month PR firm to tackle tariff threats

As trade tensions escalate with Washington, Vietnam has enlisted the help of two politically connected US firms—Crowell Global Advisors and Tactic Global—to manage its response to the Trump administration’s proposed 46 percent tariff on Vietnamese imports, O’Dwyer PR has reported.

Crowell Global Advisors was reportedly hired at US$15,000 a month, with Tactic Global hired for US$5,000 a month.

Crowell Global will advise Vietnam on international trade and investment policy, led by Joseph Damond, whereas Tactic Global, run by Barry Bennett, a former Trump advisor, is tasked with facilitating meetings between Vietnamese officials and Trump-aligned political figures.

US Commerce Secretary rules out zero-tariff deal with Vietnam

Commerce Secretary Howard Lutnick told a hearing Wednesday the Trump administration would not accept a reciprocal zero-tariff agreement with Vietnam, citing fears that Chinese goods could enter the US through Vietnam to bypass tariffs, according to a report from Politico.

Lutnick’s comments suggest that Vietnam will remain under strict tariff scrutiny with the Trump administration prioritising blocking indirect Chinese imports over any sort of tariff or trade barrier reduction.