This is a brief rundown of what is being reported today in Vietnam and about Vietnam in the international press.
It endeavours to highlight the narratives currently shaping the country’s economic, financial, and business news landscape.
Ed’s note: I’m always looking for new sources with unique insights. If you have anything to share, reach out: mark.barnes@the-shiv.com
Trade deficit widens
Thanh Nien is reporting that by September 15, Vietnam’s goods trade had exceeded US$825 billion, up 29.4 percent year on year, according to customs data.
The trade deficit widened by US$2.82 billion in the first half of September, taking the year-to-date deficit to about US$23.5 billion. View source→
Project loses on surging materials prices Quang Ngai
Znews is reporting that 20 construction companies in Quang Ngai are seeking government intervention after surging material costs have pushed some projects into losses.
The companies blamed shortages of sand, stone and fill material partly on delays in mine planning and licensing, while official prices lagged market rates. View source→
*This speaks to the ongoing you-can’t-have-your-cake-and-eat-it-too challenge the government faces as it tries to meet its self-imposed 10 percent GDP growth target. That is, public sector spending on infrastructure is pushing up costs for the private construction sector.
MoIT wants EVN
Lao Dong is reporting that the Ministry of Industry and Trade proposed taking ownership of state utility Vietnam Electricity to improve implementation of national power development plans.
Energy expert Nguyen Xuan Quang, cited in the article, notes this is unlikely to resolve obstacles involving land clearance, financing, and electricity pricing.
He also suggests the ministry’s roles as electricity-market regulator and owner of Vietnam Electricity could prove unfair to private investors. View source→
Electricity pricing proposed changes
Tuoi Tre is reporting that the government has proposed allowing different electricity retail rates based on the time of day (peak and off-peak). View source→
Indian motorcycle maker to divest VN manufacturing
The Investor is reporting that Polaris plans to divest its Vietnam motorcycle factory as the US powersports manufacturer withdraws from motorcycle manufacturing.
The Phu Tho facility, commissioned in 2023, was designed to produce 10,000 motorcycles and 30,000 large-displacement motorcycle engines annually. View source→
FTSE Russel inclusion kicks off
Reuters is reporting that a number of Vietnamese stocks joined FTSE Russell’s emerging-market indexes on September 21, beginning a four-stage inclusion process running through September 2027.
FTSE Russell estimates the upgrade could redirect up to US$6 billion into Vietnam, which had been on its upgrade watchlist since 2018. View source→
Fast loan market value
Business Insider is carrying a press release from Vaynhanh Research regarding a report that has found Vietnam’s fast-loan market to be valued at VND 800 trillion (US$30.8 billion) to VND 1.3 quadrillion (US$50 billion).
Its central estimate was VND 1.1 quadrillion (US$42.3 billion), equivalent to about 5 percent of Vietnam’s outstanding banking-system credit. View source→
Japan supermarket chain VN entry
Retail-Insight-Network is reporting that Japanese supermarket operator Saeki Selva Holdings plans to enter Vietnam, planning its first stores in Ho Chi Minh City within three years.
The retailer, which operates 56 stores in Japan, ultimately aims to build a network of 100 outlets in Vietnam, the article says. View source→
Exchange rates
As of 7.30am this morning, the black market US dollar buy rate was VND 25,900, and the sell rate was VND 26,000, a change of 10 and 80, respectively, for a mid-market rate of VND 25,950 (up 0.17 percent), according to prices quoted by Ty Gia USD.
Meanwhile, the State Bank of Vietnam’s central exchange rate was set at VND 25,637, while the Google Finance mid-market rate stood at VND 26,023.
Stock market Monday
The VN-Index closed at 1,799.67, down 15.99 points or 0.88 percent, with a total trading value of VND 17,317.39 billion or US$657.21 million, and foreign traders net-selling US$25.24 million worth of equities on Tuesday, according to the latest data from the Ho Chi Minh City Stock Exchange.
Yesterday’s news roundup
In yesterday’s news: MoF says no current bond issuance, VinFast hybrid speculation, Gov’t grants AI, Vanguard HSX investment expectations, 10 percent growth capital needs: Techcombank, Gov’t directs banks less credit big corporates, Consumer interest rates pushing 18 percent, Tourism industry labour shortages, Pre-feasibility study rail-industrial complex Hanoi, Foreign funds cautious FTSE upgrade, Shinhan FG Vingroup partnership, Resort property market supply-demand mismatch, Informal workers statistics, Exchange rates, Stock market Friday, Friday’s news roundup, and more. View source→