Vietnam Economic News: 15.2 – 22.2.2025
Summary of Vietnam Economic News: 15.2 - 22.2.2025
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Summary of Vietnam Economic News: 15.2 - 22.2.2025 ---
Vietnam to impose temporary anti-dumping tariff on China steel products
Reuters News – 21 February 2025
- Vietnam will impose a temporary anti-dumping levy of up to 27.83% on some steel products from China, according to a trade ministry document. The tariff on hot-rolled steel products is expected to take effect from March 7 and will be in place for 120 days. Among companies hit by the 27.83% duties are Baoshan Iron & Steel and Maanshan Iron & Steel. Guangxi Liuzhou Iron and Steel Group will face duties of 19.38%, according to the document. It also said hot-rolled steel products from India would not face anti-dumping tariffs. Vietnam launched an anti-dumping investigation in July following complaints from Vietnamese producers. The government had said that in the January-September period last year Vietnam imported nearly 8.8 million tons of hot-rolled steel, 72% of which originated from China. The total value of steel and iron ore and steel and iron products imported from China last year was nearly $12 billion, Vietnam's customs data shows. China's ministries of commerce and foreign affairs did not immediately reply to faxed requests for comment after business hours. Hanoi's move comes after the U.S. administration announced 25% tariffs on all its steel imports earlier this month, which would take effect on March 4. The U.S. has already imposed anti-dumping duties on multiple Vietnamese steel exports and producers, in some cases even higher than 25%. It is not clear whether the latest U.S. duties would be applied to Vietnam's steel on top of existing anti-dumping measures.
Most US manufacturers forecast layoffs at Vietnam operations with Trump tariffs, survey shows
Reuters News – 20 February 2025
Most U.S. manufacturers surveyed by the American Chamber of Commerce (AmCham) in Vietnam said they would be likely forced to lay off workers if the Trump administration-imposed tariffs on the export-reliant country. The survey was conducted from February 4-11 over the period when U.S. President Donald Trump had already approved 25% tariffs on steel and aluminium and had pre-announced broader reciprocal tariffs on countries with trade imbalances, and sector-specific duties on semiconductors, cars and pharmaceuticals. "Among manufacturers, nearly two-thirds foresee potential layoffs," AmCham said, noting the percentage fell to less than half for all businesses. The survey is based on input from more than 100 of AmCham Vietnam's members, which include big multinational companies such as Intel and Nike. Vietnam has profited in recent years from big investments by manufacturers that transferred operations from China after Trump imposed tariffs on Beijing in 2018 during his first term. More than 60% of the country's $500 billion stock of foreign investment is in manufacturing, according to data from Vietnam's government updated to the end of January. Foreign investors with manufacturing operations in Vietnam had largely remained upbeat after Trump's announcements of tariffs on China, Mexico and Canada at the start of his second presidential term, according to industry specialists. But the mood has partly changed with the new tariff threats. "Everybody was expecting problems but frankly we've been surprised by the so-called reciprocal tariffs as it is a very odd measure," said an investment adviser with a long experience in the country. Multiple analysts have said Vietnam may become a target of new duties due to its huge trade surplus with the U.S., the fourth biggest among U.S. partners, and may be hit hard by tariffs on semiconductors as it is one of the top chip exporters to the U.S. Investors in Vietnamese shares accelerated sales in recent weeks.
Vietnam parliament approves 2025 growth target, paves way for Starlink entry
Reuters News – 19 February 2025
Vietnam's National Assembly on Wednesday approved raising the economic growth target for this year and backed major infrastructure projects, including a rail link to China and the construction of the country's first nuclear power plants. In an extraordinary session, parliament also adopted rules that would allow Elon Musk's Starlink to provide satellite internet services in Vietnam, while also maintaining full ownership of any local subsidiary. "The trial provision of broadband internet services using low Earth orbit in Vietnam is based on the principle of ensuring national defence and security," a parliamentary report said. Lawmakers approved the government's proposed target of at least 8% growth in 2025, up from the previous goal of 6.5% to 7.0%. "With faster economic growth, macro stability must still be ensured while inflation must be kept under control," the government said in a report to parliament. It said its inflation target was between 4.5% and 5.0% this year. Parliament also approved a resolution for the construction of a new railway linking a major seaport in northern Vietnam with China. The project is expected to cost $8.3 billion, part of which will be funded by loans from the Chinese government. Vietnam, a regional manufacturing hub which relies heavily on exports to drive its economy, has been seeking to increase infrastructure investments to boost growth. "This rail line provides a strategic connection to China as it will also cross land rich in minerals and rare earths," said Nguyen Hung, a specialist in supply chains at RMIT University Vietnam. Lawmakers also adopted policies to develop nuclear power plants in Vietnam, the first of which is expected to be completed in 2031. A plan to offer financial support to local firms that enter the semiconductor industry was also agreed. On Tuesday, parliament approved a bold bureaucratic reform plan that will cut up to a fifth of government bodies, as the ruling party seeks to cut costs and improve administrative efficiency.