Vietnam Economic News: 22.2 – 1.3.2025
Summary of Vietnam Economic News: 22.2 - 1.3.2025
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Summary of Vietnam Economic News: 22.2 - 1.3.2025 ---
Vietnam PM pledges quick licensing for Musk's Starlink, more imports
Reuters News – 1 March 2025
Vietnam's Prime Minister Pham Minh Chinh said on Saturday the government wanted to rapidly issue a licence for Elon Musk's Starlink to provide satellite internet in the country under a pilot scheme. Chinh, speaking with nearly 40 U.S. businesses in Hanoi, also said that Vietnam was taking measures to rebalance its trade surplus with the U.S., citing potential imports of aircraft, arms, liquefied natural gas, agriculture goods and pharmaceutical products. Hanoi is trying to avoid U.S. duties on its ballooning exports, which contributed to a record trade surplus last year, making the nation vulnerable to reciprocal tariffs threatened by President Donald Trump. "The PM has directed the Ministry of Science and Technology to quickly issue a license to Starlink internet (services) on a trial basis," the government said on its website, reporting on the discussions Chinh had with U.S. businesses. In February the Vietnamese parliament approved a temporary scheme to allow satellite internet companies to provide services in Vietnam while retaining full control on their local subsidiary - a precondition set by Musk. That represented a sudden shift in Vietnam's stance about ownership of satellite internet providers, as the country maintains strict limits on foreign control for multiple economic sectors it considers sensitive. A U.S. official who attended Saturday's meeting said the discussion "will hopefully solve some pending issues" for U.S. companies in Vietnam. Chinh is planning separate meetings with other foreign businesses in the coming days, multiple investors told Reuters, as he tries to quell concerns caused by global trade tensions and the impact they could have on the export-reliant country.
Maiyue Technology (2501.HK) Establishes Strategic Win-Win Partnership with a Vietnamese Enterprise
Reuters News – 27 February 2025
Maiyue Technology Limited has signed a strategic cooperation agreement with a Vietnamese innovative design and development company. Leveraging their respective professional strengths and resource advantages, they have achieved a "Win-Win situation," laying a solid foundation for expanding into the ASEAN market. During the Vietnam-China Enterprise Cooperation Signing and Exchange Ceremony, witnessed by Secretary Chen Gang and Nguyen Manh Hung, Minister of Information and Communications of Vietnam, Maiyue Technology signed a cooperation agreement with Vietnam Made Trading Technology Limited ("Vietnam Made" or "Strategic Partner"). Vietnam Made is an innovative design and development company in Vietnam, which focuses on the fields of smart hardware, industrial equipment, consumer electronics and the Internet of Things. This collaboration aims to establish a long-term strategic partnership with partners in the AI industry, jointly promoting the implementation of AI-related projects in Vietnam. Both parties are committed to deepening cooperation in the fields of e-sports and internet access services through a long-term strategic partnership in AI cloud computing.
Vietnam central bank tells lenders to hold deposit rates, lower loan rates
Reuters News – 26 February 2025
Vietnam's central bank said on Wednesday it had told local commercial banks to keep deposit rates stable and seek to lower their lending rates to support economic growth. The move is aimed at "implementing the government's instruction to boost lending, securing an economic growth of at least 8% this year," the State Bank of Vietnam said in a statement. It said banks needed to continue to cut costs, simplify procedures and be "willing to share part of their profit" to support business activities. Banks need to funnel their lending to growth drivers, including consumption, exports, digital transformation and technologies, the central bank said.
Vietnam's US exports account for 30% of GDP, making it highly vulnerable to tariffs
Reuters News – 25 February 2025
Vietnam's goods exports to the United States accounted for 30% of its gross domestic product last year, the highest share among U.S. top trade partners, making the country highly vulnerable to reciprocal tariffs. The country experienced a surge in foreign investment after the first Trump administration started a trade war with Beijing in 2018, as foreign multinationals moved factories from China to its southern neighbour to avoid U.S. tariffs. It hosts major operations of South Korea's Samsung Electronics and Taiwan's contract manufacturer Foxconn. Apple, chipmaker Intel and footwear and apparel giant Nike are among U.S. corporations which bet on Vietnam as a production hub for goods often exported to the United States. The massive inflow of manufacturing investment has turned the country into a major node in global supply chains and significantly boosted its economic ties with the United States. Last year, with goods exports worth $142.4 billion, Vietnam became the sixth largest exporter to the United States after Mexico, China, Canada, Germany and Japan, United Nations commodity trade statistics show. Shipments to the U.S. last year represented about 30% of Vietnam's GDP of $468 billion, based on IMF's estimates, the largest share for all U.S. trading partners. Only Mexico, which is facing explicit threats from Trump of 25% tariffs, has a comparable exposure. It ships more than three times more goods than Vietnam to the U.S., with the total value of its exports accounting for 27.6% of its larger GDP. By comparison, China's exports to the U.S. are worth 2.5% of its GDP, and Japan's 3.7%. Vietnam's vulnerability is compounded by large trade imbalances that could make it stand out as U.S. officials study global reciprocal tariffs, which U.S. President Donald Trump has mandated to prepare by April. The country also "satisfies (other) criteria for tariff applications set by the White House", said Sayaka Shiba, a senior analyst at research firm BMI, noting that compared to the U.S., it has higher tariff rates, levies VAT, has non-trade barriers and is on the U.S. watchlist for possible currency manipulation.