In case you missed it…
Can Vietnam Ever Quit Coal?
At the Conference of Parties in Glasgow in 2021, Vietnam committed to reducing its carbon emissions to net-zero by 2050 a big part of which was reducing the burgeoning Southeast Asian nation’s dependence on coal. Three years on, however, and Vietnam’s de-coalification appears to have stalled with coal power and coal imports both on the rise. So what’s changed? Why has it changed? And what might happen next? Read More»
Banking and Finance News
Banks continue to take lion’s share of Vietnam’s corporate bond debt
Vietnam’s corporate bond market saw 45 bond issuances–43 private and 2 public–worth a collective VND 48,995 billion, US$1.99 billion, in August, according to data from the Vietnam Bond Market Association. This was a sizable jump over July in which just 34 bond issuances–33 private and 1 public–worth a collective VND 31,782 billion, US$1.27 billion, were issued.
The bulk of these corporate bonds were issued to Vietnam’s banks which is in line with observations in July that a shift is taking place where debt is held. Specifically, corporate bond debt looks to be moving from the real estate and construction sectors across to the banking sector which would fit with the broader narrative around real estate firms struggling to access capital.
State Bank halts open market operations
The State Bank of Vietnam has not issued any treasury bills this week, nor are there any treasury bills outstanding from past issuances. Furthermore, the SBV has not conducted any open market operations since Tuesday, however, there is still US$2.4 billion in reverse repos outstanding. These developments would suggest pressure has eased on the local currency likely due to an anticipated rate cut in the US next week.
See also: Vietnam Dong Tracker: Daily Updates.
Outstanding reverse repos to Vietnam banks
| Issued | Length | Maturing | VND* | US$ | % p.a. |
| 27-Aug | 14 | 10-Sep | 14,989.65 | $609,645,145 | 4.25 |
| 28-Aug | 14 | 11-Sep | 1,768.46 | $71,925,165 | 4.25 |
| 29-Aug | 14 | 12-Sep | 5,573 | $226,669,243 | 4.25 |
| 30-Aug | 14 | 13-Sep | 5,000 | $203,354,957 | 4.25 |
| 4-Sep | 14 | 18-Sep | 11,875 | $482,977,123 | 4.25 |
| 5-Sep | 14 | 19-Sep | 7,790 | $316,825,216 | 4.25 |
| 6-Sep | 7 | 13-Sep | 4,000 | $162,683,884 | 4.25 |
| 9-Sep | 7 | 16-Sep | 4,000 | $162,683,884 | 4.25 |
| 10-Sep | 7 | 17-Sep | 4,340 | $176,493,340 | 4.25 |
| Total | 59,336 | 2,413,257,956 |
*billions
Economy news
Vietnam’s August Consumer Price Index stable at 4.04 percent
Vietnam’s Consumer Price Index growth slowed in August over July recording an increase of 3.45 percent compared to July’s 4.27 percent. Overall CPI remained steady at 4.04 percent safely within the government’s target range for the year of between 4 and 4.5 percent. Core inflation, meanwhile, saw an increase of 2.71 percent.
See also: Vietnam CPI Tracker: August 2024 Update
Food and beverage news
Saigon Beer maker planning increased stake in local beer brand Sagota
Vietnam’s Saigon Beer Alcohol Beverage Corporation which goes by the moniker Sabeco is looking to take a majority stake in Saigon Binh Tay Beer Group Corporation more commonly known as the Sabibeco Group, which makes beer under the brand name Sagota, Tuoi Tre has reported. Sabeco and several related parties already hold 22.7 percent of Sabibeco and it intends to increase this stake to 65.9 percent.
Vietnam’s beer market has reported some challenges over the last couple of years from stricter enforcement of drink driving laws, to belt-tightening among consumers on the back of broader economic challenges, to greater competition and an increase in beer imports. As a result, a number of beer makers in Vietnam have recorded negative or slower than expected growth. In this context, this announcement could be the beginning of an era of consolidation within the industry.
See also: What’s Happened to Vietnam’s Beer Market? Unpacked 2024
Investment news
FDI registered capital for 2024 reaches US$20.5 billion
Vietnam added another 431 foreign direct invested projects to its 2024 tally in August, along with just over US$2.5 billion in additional capital commitments, according to data from Vietnam’s Ministry of Planning and Investment. This brings the total registered capital commitments from foreign investors to US$20.5 billion for the year.
The biggest gain was in manufacturing and processing which added 134 new projects and US$1.51 billion. The biggest investor countries were China, Japan, and Singapore, in that order, with US$626 million, US$605 million, and US$271 million registered respectively.
See also: Vietnam Foreign Direct Investment Tracker: Last Update August 2024
Manufacturing news
Vietnam’s Industrial Production Index up 9.5 percent year-on-year
Vietnam’s Industrial Production Index grew by 2 percent in August over July, according to data released by Vietnam’s General Office of Statistics. Vietnam’s IIP is now up 9.5 percent year-on-year.
The GSO notes that the processing and manufacturing industry increased by 9.7 percent, that the electricity production and distribution industry increased by 11.6 percent, and the water supply, waste and wastewater management and treatment industry increased by 7.8 percent. It does, however, also note that the mining industry decreased by 6 percent.
See also: Vietnam Industrial Productions Index Tracker
Singapore food conglomerate to build coffee processing plant in central Vietnam
Future Enterprises, a subsidiary of Singapore’s Food Empire Holdings Group, has received a licence to build a coffee processing plant in central Vietnam’s Binh Dinh Province, The Investor has reported. The factory, set to cost roughly US$80 million, will reportedly be able to produce 5,400 tons of instant coffee a year.
See also: Vietnam’s Coffee Industry in 2024: Overview
Media news
The New York Times receives licence to open Vietnam office
The New York Times has been granted a licence to open an office in Vietnam, VN Express has reported. It’s not known where the office will be located but it’s been speculated that the company could open an office as soon as next month.
Of note, it’s not easy to do business in Vietnam for foreign news media outlets. Vietnam’s media industry is small and heavily regulated, particularly in terms of censoring content though this does not seem to apply to international media outlets to the extent that it does to local news media producers.
See also: Vietnam News Media Industry Overview 2024
Stock market news
Foreign traders net-sell US$33.2 million in HoSE shares
Over the last five trading sessions, in total, foreign investors sold just under US$33.2 million worth of stocks by the close of business on September 12. This brings the total net withdrawn from the market by foreign traders to just over US$2.7 billion year to date.
See also: Vietnam’s Foreign Investor Stock Sell-Off: Unpacked 2024
Foreign trader activity, last five trading days
| Buy | Sell | Change | ||||
| Date | VND* | US$ | VND* | US$ | VND* | US$ |
| 6/9 | 2,906 | $118,190,217 | 2,672 | $108,673,179 | 234 | $9,517,037 |
| 9/9 | 1,203 | $48,927,333 | 1,685 | $68,530,804 | -482 | -$19,603,470 |
| 10/9 | 1,413 | $57,468,264 | 1,801 | $73,248,651 | -388 | -$15,780,387 |
| 11/9 | 1,563 | $63,568,929 | 1,555 | $63,243,561 | 8 | $325,369 |
| 12/9 | 1,453 | $59,095,108 | 1,641 | $66,741,275 | -188 | -$7,646,167 |
| Total | 8,538 | $347,249,852 | 9,354 | $380,437,469 | -816 | -$33,187,618 |
*billions
Source: www.hsx.vn
Technology news
Vietnam tech giant VNG raided for reasons unknown
The Ho Chi Minh City headquarters of VNG, a Vietnamese tech firm operating video games and digital media assets, was raided by police. The company has confirmed the raid in a statement but has provided no details as to why. Local media reported on the event at large before removing any reference to it. It’s also unclear as to why.
Starlink exec meets with Vietnam Prime Minister but no clear outcomes reached
Vietnam’s Prime Minister Pham Minh Chinh has met with Tim Hughes, the senior vice president for global business and government affairs at SpaceX, to discuss making Starlink services available in Vietnam, The Investor has reported. The vague nature of the commitments and talking points outlined in the linked article would suggest no clear outcomes were reached.
Of note, back in March, it was reported that SpaceX had put plans to launch its satellite service on hold in Vietnam due to Vietnam’s foreign ownership limits in the telecommunications industry–Foreign ownership in telecommunications services that include infrastructure are capped at 51 percent in Vietnam for most countries.
See also: Starlink Vietnam: Possibility or Pipedream?
Trade news
Vietnam exports reach US$37.8 billion in August, up 4.3 percent vs July
Vietnam’s exports hit US$37.8 billion in August bringing the country’s total exports for the year to US$265.4 billion, an increase over 2023 of 15.9 percent. This growth was buoyed by double-digit increases in exports of computers, electrical products, spare parts and components thereof; as well as high single-digit growth in textiles and garments and wood and wooden products.
This data, alongside an increase in Vietnam’s Industrial Production Index of 2 percent in August over July and a Purchasing Managers’ Index in a growth phase for the fifth month in a row, speaks to further improvement in Vietnam’s manufacturing and processing industry after a challenging 2023.
See also: Vietnam Exports Tracker: August Update [data set]
Vietnam steel pipes and tubes to face dumping duties in India
Welded stainless steel pipes and tubes imported into India from Vietnam and China are to attract antidumping duties of between 12 and 30 percent, The Economic Times has reported. This adds to a growing number of trade remedies cases facing steel exports from Vietnam.
Of note, India also initiated an anti dumping probe, at the request of the Indian Steel Association, back in August, into hot rolled coiled-steel from Vietnam. With this in mind, this latest piece of news may be an augur of things to come for Vietnam’s steel industry more broadly.
See also: Vietnam Trade Remedies News
Vietnam imports reach US$33.7 billion in August, down .4 percent vs July
Vietnam’s imports hit US$33.7 billion in August bringing the country’s total imports for the year to US$246.9 billion, an increase over 2023 of 18.1 percent, according to data from Vietnam’s General Department of Customs. Imports did, however, fall by .4 percent in August over July.
Of note, Vietnam’s role in manufacturing supply chains is mostly in the final stages of assembly and packaging which is often performed using imported parts and components. The slight fall in imports month-on-month could therefore be indicative of a future decline in exports. That said, it is only data from one month with July’s imports up 11.2 percent over June, and one data point does not a pattern make. That said, it may still be worth keeping an eye on.
See also: Vietnam Imports Tracker: August 2024 Update [data set]
The week ahead
There are a handful of events coming up this week. For more information see the: Doing Business in Vietnam: Events Directory 2024
Also, Vietnam is a dynamic market that is changing rapidly. To keep updated to date with the business environment and how it is evolving make sure to subscribe to the-shiv.