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
Vingroup new international loan
RFA is reporting that Vingroup has approved using some of its assets as collateral to support a new international loan for VinFast Vietnam.
The loan will be provided by foreign banks and guaranteed by Italian export credit agency SACE, although Vingroup has not disclosed its size, the article says. View source→
Hanoi Ice cream store to close
Zing News is reporting that Trang Tien Ice Cream will close its flagship store at 35 Trang Tien Street in Hanoi on September 15 after nearly 70 years.
The company did not give a reason for the closure but described it as a transition while continuing to operate elsewhere around Hoan Kiem Lake. View source→
*Before it was renovated during COVID, this shop had some serious subsidy era vibes — it was very much how you would expect a communist run ice-cream shop to look. With this in mind, though the article doesn’t say why it’s closing down, it’s not a stretch to imagine it’s a business decision and then maybe a neat metaphor for Vietnam’s broader economic development.
Fire safety approvals reform floated
ZingNews is reporting that the government has proposed eliminating pre-approval inspections for fire safety acceptance and replacing them with post-completion inspections.
Deputy Public Security Minister Le Van Tuyen said the change would reduce administrative procedures, compliance costs and delays for businesses and individuals. View source→
*I feel like regulations around fire safety are one thing you don’t want to cut in the pursuit of cost-cutting and efficiency.
Vinhomes looking for investment from Malaysia
Dagang News is carrying a paid press release from Vinhomes, presumably designed to attract investors by arguing that remittances from overseas Vietnamese are fuelling a boom in Vietnam’s real estate sector. View source→
*Noted because it sheds some light on how Vinhomes is framing itself, and the Vietnam real estate market more broadly, to foreign investors.
China’s Oh!Some scaling back in VN
Inside Retail is reporting that Chinese lifestyle retailer Oh!Some is scaling back its Vietnam operations little more than a year after entering the market.
People familiar with the matter cited mounting losses, high rents and rising operating, logistics and labour costs, while some expect a complete market exit, according to the article. View source→
*That was short-lived.
Government bonds
VnExpress is reporting that Vietnamese government bonds have largely avoided the global sell-off, with yields remaining relatively stable despite sharp increases in developed markets.
The 10-year Vietnamese government bond yield stood around 4.43 percent, compared with decade-high yields in Japan, the UK and Germany.
It also notes that less than 0.2 percent of Vietnam government bonds are held by foreign investors
*An interesting footnote when you think about all of the big infrastructure projects, and their capital needs, announced in the last few years.
Former Bamboo Airways exec barred from leaving country
VnExpress is reporting that Former Bamboo Airways Chairman Le Thai Sam has been temporarily barred from leaving Vietnam over the airline’s unpaid tax liabilities.
Bamboo Airways owed more than VND 44.06 billion (US$1.7 million) in taxes when the restriction took effect on September 3. View source→
*This is interesting because Trinh Van Quyet founded the airline as a subsidiary of FLC Group before being arrested for stock market manipulation in 2022. He spent less than four years (by my calculations) behind bars of what was ultimately a seven-year sentence following an appeal. It’s not clear what happened to the remaining three years.
Le Thai Sam took control of the airline while Quyet was incarcerated and attempted to save it, but last year gave up and handed control back to FLC Group, which Quyet again appears to be very heavily involved with, though it’s not totally clear what his role is. While Sam is now barred from leaving Vietnam, Quyet was photographed in London in July and in South Korea earlier this year.
Why Singapore as homebase for VN companies
Tuoi Tre is reporting that Vietnamese technology startups are increasingly establishing parent companies in Singapore to raise international capital, register intellectual property and reduce regulatory uncertainty at home. View source→
*While the points in this article might be true, I’d argue that establishing a company in Singapore is more about avoiding currency risks and capital controls.
Heineken expansion plans
VnExpress is reporting that Heineken plans to invest an additional US$500 million in Vietnam over the next five to 10 years as it expands production capacity. View source→
Proposed increase to health insurance contributions
Tuoi Tre is reporting that Vietnam’s Health Ministry has proposed raising mandatory health insurance contributions from 4.5 percent to 5.1 percent of the contribution base from July 2027.
Employers would continue paying two-thirds of workers’ contributions, with employees paying one-third, while household insurance contributions would increase from January 2028. View source→
Stock market Friday
The VN-Index closed at 1,853.08, up 25.36 points or 1.39 percent, with a total trading value of VND 16,700.15 billion or US$633.78 million, and foreign traders net-buying US$3.64 million worth of equities, Friday, according to the latest data from the Ho Chi Minh City Stock Exchange.
Exchange rates
As of this morning 7am HCMC time today, the black market US dollar buy rate was VND 25,770, and the sell rate was VND 25,810, with the State Bank of Vietnam’s central exchange rate set at VND 25,605, and the Google Finance mid-market rate standing at VND 26,060.
Friday’s news roundup
In Friday’s news roundup: IMF raises growth forecast, MoF suggests increase State funds at commercial banks, Inflation up, FDI YTD, Vietnam Today to launch on India’s Jio TV, Government bond auction results, Taiwan semiconductor investment, Trade deficit narrows, PMI rises, GSM taxi company launch plans, Stock market Thursday, Exchange rates Thursday, Yesterday’s news, and more. View source→