Vietnam Economic News: 1.3 – 8.3.2025
Summary of Vietnam Economic News: 1.3 - 8.3.2025
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Summary of Vietnam Economic News: 1.3 - 8.3.2025 ---
Vietnam is willing to adjust tariffs with major trade partners
Reuters News – 8 March 2025
Vietnam is willing to adjust its tariffs with its major trading partners if needed, Prime Minister Pham Minh Chinh said during a cabinet meeting on Saturday. Chinh is also calling for plans to pursue more balanced trade with its major markets, according to his remarks posted on the government website. Vietnam is worried about being hit with reciprocal tariffs by the U.S. government. The U.S. is Vietnam's largest export market.
Vietnamese Government tells trade ministry to boost rice exports to counter oversupply
Reuters News – 7 March 2025
The Vietnamese government has told the trade ministry to seek to boost rice exports to the U.S., China, the EU and Japan as the country looks to manage an oversupply of the grain, according to a government document. The government has also told the central bank to extend loans to firms so they can stockpile rice, according to the document which was signed this week by Prime Minister Pham Minh Chinh. Rice export revenue fell 1.9% from a year earlier to $358 million, the General Statistics Office said in a report. Also, according to Reuters News, Vietnam posted a rare monthly trade deficit in February as imports surged during the month. The nation, a regional manufacturing hub, is heavily dependent on export-driven economic growth and faces risks from global trade disputes, including the potential imposition of tariffs by the United States. Vietnam posted a trade deficit of $1.55 billion in February, after a $3.02 billion surplus in January, the General Statistics Office said. It was only the third monthly deficit since the start of 2023, as per GSO and London Stock Exchange Group data. February's exports rose by 25.7% from a year earlier while imports surged by 40%, primarily due to increased imports of dairy products, automobiles and metal products, the GSO said.
Da Nang Investment Forum 2025 Showcases Vietnam's Rise as a Financial Hub
Dow Jones Newswires – 26 February 2025
The Da Nang Investment Forum 2025, held on 3 March 2025 at The Ritz-Carlton, Millenia Singapore, underscored Vietnam's strategic ambition to position itself as a key financial hub in Southeast Asia and commitment to regulatory innovation and international collaboration. Organised by the People's Committee of Da Nang City in collaboration with Terne Holdings, the forum brought together close to 200 government leaders, global investors, and financial experts to explore the city's transformation into a dynamic financial center and the opportunities it presents for Singapore international investors. The forum featured an interactive dialogue with Da Nang's leadership, offering firsthand insights into the city's dynamic investment climate and ambitious future. Positioning Da Nang as Vietnam's Next Economic Powerhouse, Da Nang is emerging as a key regional growth hub, driven by world-class infrastructure, innovation-driven industries, and progressive economic policies. The city has identified two key drivers for future development: the Da Nang International Financial Centre and the Da Nang Free Trade Zone. "Da Nang is rapidly developing and actively embracing scientific advancements to drive its growth. As Vietnam pursues its ambition of becoming an international financial center in Southeast Asia, Da Nang plays a crucial role in realizing this vision by creating value-driven opportunities in the financial sector”, according to Tran Phuoc Anh, Ambassador of Vietnam to Singapore.
Australia's CBA exits Vietnam's VIB after 4.4% stake sale
Reuters News – 5 March 2025
Australian lender Commonwealth Bank of Australia said on Wednesday it has sold its remaining 4.4% stake in Vietnam International Commercial Joint Stock Bank, marking its full exit from the Vietnamese lender. CBA, Australia's largest lender, became VIB's strategic investor in 2010 by holding 19.8% of the Vietnamese bank shares. The transaction was executed on Wednesday, according to a statement released by CBA, with settlement expected on Friday. It is expected to receive A$170 million ($106.7 million) in total gross proceeds. The Australian lender had sold a total of 15% of its stake in VIB in September and October last year "as part of its strategy to focus on its businesses in Australia and New Zealand". VIB is a midsize bank in Vietnam with a market capitalisation of $2.5 billion. Its shares fell 0.47% to 21,000 dong each as of Wednesday's close. ($1 = 1.5931 Australian dollars)
Vingroup signs deal for potential Qatar fund investment of $1 billion in VinFast
Reuters News – 4 March 2025
Vingroup has signed a memorandum of understanding with private equity fund JTA Investment Qatar to explore a potential investment of at least $1 billion in electric vehicle maker VinFast, the Vietnamese conglomerate said on Tuesday. Nasdaq-listed VinFast is pursuing an aggressive but costly expansion strategy in Vietnam, where it can rely on a growing market of nearly 100 million people. The automaker also wants to expand abroad but has so far struggled to attract foreign buyers. Its parent company Vingroup said the possible partnership with the Qatari investor could also extend to Vingroup's hospitality business Vinpearl, which owns hotels and resorts in Vietnam."Under the MOU, the companies will engage in discussions to define their future collaboration in pursuing mutually beneficial objectives," Vingroup said in a statement. Amir Ali Salemi, founder and CEO of JTA Investment Qatar, also said in the statement that the collaboration would generate "mutually beneficial business opportunities".