Vietnam News Roundup: May 9 to May 15

In case you missed it…

The “Existential” Tariff Threat to US Footwear Brands & What That Means for Vietnam

The Footwear Distributors and Retailers of America has warned that the “reciprocal” tariffs announced last month pose an “existential threat” to American footwear businesses. This article explores how that threat could play out in Vietnam… Read More »

Banking and finance news

Vietnam corporate bond market rebounds in April

In April, Vietnam’s corporate bond market recorded a significant rebound in issuance activity, with a total of VND 34.07 trillion in corporate bonds issued—VND 30.07 trillion via private placements and VND 4 trillion via public offerings. 

This marked a 98 percent increase month-on-month and a 77 percent increase year-on-year, largely driven by a resurgence in private issuances, which jumped more than 14-fold from the previous month.

Of note, two late interest payment announcements were reported in April, totalling VND 10.3 billion with real estate bond maturities remaining a structural risk, accounting for 53 percent of total maturing debt in 2025.

Vietnam dong slides again

The State Bank of Vietnam (SBV) has continued to carry out open market operations. Notably, there were US$2.08 billion worth of reverse repos outstanding as of the close of business May 15. 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 2.40 percent over the start of the year, as of close of business May 15, it was down by 2.58 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.

Energy news

Vietnam raises average power price by 4.8 percent

The average retail electricity price in Vietnam rose from VND 2,103.11 to VND 2,204.07 per kWh, a 4.8 percent increase from May 10, according to a press release from state power provider Electricity Vietnam (EVN).

The move has been driven by rising input costs—notably coal, gas, and oil, and the exchange rate—with low-cost hydropower only expected to supply 25 percent of total demand in 2025, the release said.

This price hike reflects pressure on Vietnam’s power system, which now relies heavily on costly imported energy sources amid high demand and exchange rate volatility. 

While the rise is modest, it is one more in a series of power increases over the last year or so. These have been largely necessary because power prices did not change at all for about four years, which resulted in EVN running at a loss for some time. 

That is to say, power prices are now playing catch-up and may still have some ways up to go.

See also:  Electricity in Vietnam: Industry Overview

Gambling news

Casino operator dubs Vietnam gaming regulations “unsophisticated and immature”

Vietnam’s gaming regulatory system is underdeveloped and struggling to balance commercial needs with state control, Luís Mesquita de Melo, General Counsel at Hoiana Integrated Resort, has told a panel discussion, as reported by Asia Gaming Brief. 

“The current regulatory system in Vietnam is still very unsophisticated and immature,” he said.

Mesquita de Melo highlighted the lack of follow-up legislation to the 2017 gaming decree, leaving areas like junket operations and credit issuance unregulated. This creates compliance risks, especially for foreigners-only casinos that rely on bringing in international players, he said.

All of that is to say, Mesquita de Melo believes that without clearer rules and a central regulator, Vietnam’s gaming industry remains structurally uncertain, exposing investors to avoidable risks.

See also: Gambling in Vietnam: Industry Overview

Healthcare news

Healthcare: Japan’s IHW looking to build high-end hospital in Hanoi

Japan’s International Healthcare and Welfare Group (IHW) is looking at 2.5 ha of land in the North Hanoi Smart City for a 200-bed high-end hospital, English language news site, The Investor has reported. The project is inspired by top-tier Japanese institutions like Sanno Hospital and Mita Hospital, the publication said.

IHW’s push, despite the absence of zoning for healthcare in the smart city, suggests they see this moment as pivotal—perhaps anticipating rising demand from the area when it is fully built out. It may also reflect a belief that Vietnam’s domestic healthcare market is maturing, with room for more higher-end, internationally linked services.

See also: How to Set Up a Company in Vietnam

Manufacturing news

Crocs CEO warns US tariffs on Vietnam could be big problem

Tariffs on Vietnam would be more disruptive than those on China for Crocs due to its deep reliance on Vietnam for manufacturing, Crocs CEO Andrew Rees has told an investor call.

“If a reciprocal tariff remains in place relative to Vietnam, that’s a huge amount of production for us and everybody else. That would be incredibly hard to mitigate,” he said.

While tariffs on China could be avoided by shifting production, Vietnam exposure is far more embedded (about 47 percent of US Croc’s imports this year is expected to come from Vietnam) and would be hard to relocate quickly.

This speaks to the concerns on the other side of the Pacific but also suggests that relocation is a front and centre consideration for footwear firms, be that China to Vietnam or Vietnam to somewhere else.

Stock market news

Foreign traders net-buy US$154.27 million of HoSE stocks

Over the last five trading sessions to the close of business on May 15, foreign investors net-bought US$154.27 million worth of HCMC Stock Exchange stocks. This brings the total net-sold since the start of the year to US$1.3 billion.

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

Foreign trader activity, last five trading days

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

Tax news

Vietnam government submits proposal to extend VAT cut until end-2026

Vietnam’s Ministry of Finance has officially submitted a draft resolution to the National Assembly, seeking to extend a 2 percent Value-added Tax (VAT) reduction until December 31, 2026, Tuoi Tre has reported. The proposed extension applies to goods and services normally taxed at 10 percent, except for sectors such as telecoms, finance, insurance, real estate, mining (except coal), and luxury goods.

Other key points in the article include:

• The policy is expected to reduce state budget revenue by around VND 121.74 trillion or US$4.68 billion from July 2025 to end-2026, including VND 39.54 trillion or US$1.52 billion in the second half of 2025, and VND 82.2 trillion or US$3.16 billion in 2026.
• While most members of the National Assembly’s Economic and Financial Committee support the extension, some warn it could weaken fiscal space and set a precedent for ad hoc tax measures with limited impact on consumption.

This fits with Vietnam betting on consumption-led stimulus to meet its 8 percent growth target despite narrowing fiscal room and global headwinds and also that its not clear everybody is entirely onboard.

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

Vietnam golf industry pushes back against sport’s ‘luxury’ tax

Vietnam Golf Association Chairman Le Kien Thanh has questioned the logic of taxing golf like alcohol and tobacco under the country’s Special Consumption Tax (SCT), arguing golf is a recognised sport, not a luxury, VietnamNet has reported.

Thanh essentially goes on to argue that Vietnam’s current tax policy may be hindering the growth of a high-spending tourism segment and that treating golf as a taxable luxury, rather than a sport and economic driver, risks undermining both domestic development and international competitiveness.

See also: Vietnam Golf Industry: Growth, Key Players & Destinations

Tourism & hospitality news

Hilton to open 14 hotels across Vietnam by end-2025

Hilton will debut its Tru by Hilton brand in Asia Pacific with 14 hotels in Vietnam by late 2025, in partnership with ROX Group (formerly TNG Holdings Vietnam), the company has said in a press release. 

The first four hotels will open in Hanoi, Ha Long, Lang Son, and Nam Dinh, with future sites planned in Da Nang, Can Tho, Thai Binh, Bac Giang, Hoa Binh, Lao Cai, Dak Lak, Hau Giang, Tam Ky, and Viet Tri.

This large-scale rollout of hotels in Vietnam suggests that the company sees an opportunity in the country for mid-scale accommodation options. Moreover, by entering both major and secondary cities, Hilton seems to be positioning itself in Vietnam for the long-term.

See also: Tourism Industry in Vietnam

Trade news

Vietnam pushes domestic firms to pressure US policy makers on tariffs

Vietnam’s Ministry of Industry and Trade, in a conference last week, urged businesses to send letters of protest to US agencies, with respect to the “reciprocal tariffs” announced last month, to help put pressure on the Trump administration. This is part of a series of broader moves to see those tariffs reduced to a more manageable level.

The Ministry also suggested firms mobilise support in the US by engaging with US-based business partners and investors to raise awareness and lobby US consumers and policymakers in favour of maintaining normal trade flows.

This speaks to the multifaceted approach Vietnam is taking to see those tariffs cuts. Whether or not it can be successful, however, remains to be seen. 

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

Dry cargo shortage insurance claims surge in Vietnam ports

Dry cargo shortage insurance claims in Cai Mep and Phu My ports have nearly tripled between 2020 and 2024, according to Gard P&I Club and reported by Safety4Sea. Affected cargoes include soybean meal, corn, and fertilisers, with claims generally low value but high frequency.

Key issues identified

• Multiple bills of lading issued for bulk cargoes often lead to more individual claims, as receivers assess shortages against their own portions rather than total cargo.
• Barge discharge and warehouse transfer procedures create gaps in accountability, with limited ability to conduct accurate draft surveys and track distribution by the receiver.

Of note, pilfering at Vietnamese ports comes up every now and again.

Last year, one case saw allegations that as much as 1.68 tons of coffee was missing from a shipment to Egypt in January; four shipments of pepper to the Philippines, Korea, Thailand, and Japan from March were each missing between 1.5 and 4.6 tons; and three pepper shipments to Malaysia and Norway between September 2023 and March 2024 were each missing between 200 kilograms and 3.3 tons of product.

See also: Vietnam Seaports

The week ahead

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