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Tag: Vietnam

  • Vietnam’s Fuel Prices Rebound Amid Global Market Shifts And Geopolitical Strains

    Vietnam’s Fuel Prices Rebound Amid Global Market Shifts And Geopolitical Strains

    After a three-week decline, Vietnam’s petrol prices began to rebound on Thursday afternoon. The nation’s widely used fuel, RON95, experienced a 0.91% increase, bringing it to VND19,900 (US$0.76) per litre.

    Shifts in Fuel Prices

    Alongside the price increase of RON95, Biofuel E5 RON92 also experienced a slight uptick of 0.47%, settling at VND19,220 per litre. Conversely, the price for diesel dropped by 0.97% to VND18,420 per litre.

    Factors Influencing Fuel Prices

    Several factors have influenced the global petroleum market over the past week. One key element was the announcement by OPEC+ of their plan to increase oil production for the month of November. While the increase was lower than initially expected, it still made significant waves in the market.

    In addition to OPEC+’s decision, weakening worldwide demand for oil and ongoing issues in Ukraine both had an impact on fuel prices. Specifically, the continued escalation of attacks on Russia’s energy infrastructure by Ukraine has added instability to the market.

    Global Price Changes

    On a global scale, RON95 saw an increase of 0.9%, bring its price to $79. Diesel prices, however, went in the opposite direction, falling by 1.4% to a price of $86.5.

    Questions & Answers

    What caused the increase in Vietnam’s fuel prices?
    The rise in prices was influenced by several factors including OPEC+’s announcement of increased oil production for November and ongoing geopolitical issues in Ukraine.

    Did all fuel prices in Vietnam increase?
    No, while the prices for RON95 and Biofuel E5 RON92 increased, the price for diesel actually dropped by 0.97% to VND18,420 per litre.

    How did global oil prices change?
    Globally, the price for RON95 increased by 0.9% to $79, whereas diesel prices fell by 1.4% to $86.5.

  • Vietnamese Jewelry Store Fined For Selling Counterfeit Chanel Items Amidst Gold Price Surge

    Vietnamese Jewelry Store Fined For Selling Counterfeit Chanel Items Amidst Gold Price Surge

    In central Vietnam, a gold and jewelry store has been hit with a substantial fine of VND55 million (US$2,088.08) and has been instructed to obliterate its existing stock for engaging in the sale of falsified Chanel brand jewelry.

    Counterfeit Jewelry Seized

    The Market Management Department of Gia Lai Province reported that they recently discovered bracelets with the logo of Chanel, a renowned French fashion brand that has registered for protection in Vietnam, in the store. The provincial authority refrained from revealing the name of the establishment.

    The estimated total value of the seized goods is around VND35.7 million. The authority highlighted that all the seized jewelry items were counterfeit and lacked the requisite documentation to verify the origin.

    Surprise Raid and Future Plans

    These surprising findings resulted from an unexpected raid. In the aftermath of this event, the department has announced plans to maintain strict vigilance and continue inspecting other gold enterprises to prevent any further violations of intellectual property rights.

    Gold Prices Reach Record High

    In a related development, the prices of Vietnamese gold have witnessed a significant surge of 76% this year, reaching an all-time high of VND148 million per tael (equivalent to 37.5 grams or 1.2 ounces).

    Questions & Answers

    What was the penalty imposed on the jewelry store for selling counterfeit Chanel brand jewelry?
    The jewelry store in central Vietnam was fined VND55 million (US$2,088.08) and was ordered to destroy its existing stock.

    What did the Market Management Department of Gia Lai Province discover during their raid?
    During their surprise raid, the Market Management Department of Gia Lai Province discovered counterfeit Chanel brand bracelets being sold in the store.

    What are the future plans of the Market Management Department of Gia Lai Province?
    Following the discovery of counterfeit jewelry, the department plans to continue monitoring gold businesses to prevent any violations of intellectual property rights.

  • Vietnam Leads In Projected Salary Growth In Southeast Asia, Says Global Study

    Vietnam Leads In Projected Salary Growth In Southeast Asia, Says Global Study

    Vietnam is projected to have the most significant salary increase among Southeast Asian countries in 2025, with an estimated growth rate of 7.7%, according to a recent study by a leading global professional services firm.

    Salary Increase and Turnover Study for Southeast Asia

    The study, which ran from July to September 2025, assessed salary alterations and staff turnover rates from over 700 businesses in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. The research indicated that the anticipated salary hikes for Southeast Asia (SEA) are projected to be 5.3% for 2026.

    When examining salaries across various industries per country, the life sciences and medical devices sector is predicted to witness the highest increase in Singapore (4.6%), whereas technology is leading in Vietnam (7.1%) and Indonesia (5.9%). In Malaysia, the consulting, business, and community services sector takes the lead with an expected increase of 4.8%.

    Retaining Top Talent and Reducing Attrition

    Rahul Chawla, the partner and head of Talent Solutions for Southeast Asia at the professional services firm, highlighted the dual challenges organizations are currently grappling with. As companies across SEA ramp up their investments in technology and strategic ventures, they are increasingly concentrating on retaining their best and most skilled employees. According to Chawla, balancing escalating compensation costs with the necessity for agility is paramount. The most successful enterprises are utilizing real-time market data and total rewards strategies to stay competitive.

    The study found that employee attrition rates were in double digits across all countries in the region. The Philippines and Singapore are anticipated to have the highest turnover rates, at 20.0% and 19.3% respectively, followed by Malaysia at 18.2%.

    Attrition rates also differ across industries, with the consulting, business, and community services sector topping the list with a rate of 22.6%. This is followed by the retail sector at 21.6% and manufacturing at 17.5%. The research revealed that 42% of businesses report difficulties in hiring or keeping employees.

    Skills Gap Challenges

    The study also found that 63% of businesses are currently dealing with skills gap challenges, while 12% anticipate short-term gaps, and 16% foresee longer-term gaps. Roles in information technology, engineering, and sales remain the most difficult to fill, while new hire premiums range between 1.3 to 8.2%, which is lower than the previous year, indicating an increased focus on cost control.

    The most sought-after “hot jobs” include sales (24%), information technology (24%), artificial intelligence (AI)/machine learning (ML) (21%), cybersecurity (20%), and engineering (19%). This trend towards digital and risk-focused skills suggests that firms are emphasizing sustained compensation strategies to secure skills that are crucial for the future in an increasingly competitive market.

    Evon Lock, head of data solutions for Southeast Asia at the professional services firm, commented that despite the hiring and retention pressures, most organizations remain cautiously optimistic and plan to maintain or slightly increase their workforce.

    Questions & Answers

    What is the expected salary increase in Vietnam in 2025?
    The expected salary increase in Vietnam in 2025 is 7.7%.

    Which industry is projected to have the highest salary increase in Singapore?
    The life sciences and medical devices industry is expected to have the highest salary increase in Singapore.

    What are the most in-demand jobs according to the study?
    The most in-demand jobs are in sales, information technology, artificial intelligence/machine learning, cybersecurity, and engineering.

  • Vietnam And U.S. To Advance Trade Agreement Talks In Upcoming 2025 Meetings

    Vietnam And U.S. To Advance Trade Agreement Talks In Upcoming 2025 Meetings

    Vietnamese representatives are set to visit the United States in October and November 2025, with the goal of progressing discussions and finalizing a balanced trade agreement. Deputy Minister of Industry and Trade, Nguyen Sinh Nhat Tan, revealed this during a recent press conference, pointing out that Vietnam has been diligently working to expedite negotiation proceedings.

    Negotiation Principles and Goals

    The ongoing negotiations are being guided by principles of openness, constructiveness, equality, mutual respect, independence, self-reliance, and shared benefits. These principles consider the level of development of both nations. The ultimate aim is to foster stable and harmonious economic, trade, and investment relationships, in accordance with the Comprehensive Strategic Partnership between Vietnam and the U.S.

    End-of-Year Plans and Measures

    Bui Huy Son, Director of the Department of Planning, Finance and Enterprise Management at the Ministry of Industry and Trade (MoIT), stated the department is committed to meeting set targets and making new strides in the remaining months of the year. The MoIT is set to enforce a resolution from the Politburo that was issued on January 24, 2025, regarding international integration in a new context.

    Simultaneously, the MoIT is carefully observing changes in the U.S. tariff policy and is actively working with relevant authorities from both countries to identify and resolve emerging issues. This is in an effort to limit the risk of unfavorable trade measures being imposed on Vietnamese exports.

    Future Trade Negotiations

    The MoIT is prioritizing the commencement of Free Trade Agreement (FTA) discussions with the Southern Common Market (Mercosur) and the Gulf Cooperation Council (GCC) in the fourth quarter of 2025. It is also planning to initiate talks with Pakistan to broaden export opportunities, and aims to conclude FTA negotiations with the European Free Trade Association (EFTA) by the end of the year.

    Supporting Domestic Enterprises

    The MoIT is committed to addressing issues within domestic enterprises to decrease dependence on the FDI sector. It plans to continue working closely with businesses through regular consultations with industry associations and local authorities, thus providing timely policy advice to the Government and ensuring appropriate support.

    The department will also step up efforts around trade promotion, supply-demand connection, and product marketing to assist Vietnamese companies in reaching new customers and maintaining robust relations with traditional partners, especially in the U.S. market.

    The MoIT reiterated its commitment to enforcing origin-related regulations through inspections, licensing, and violation settlements, while also reinforcing supervision to combat trade remedy evasion and origin fraud.

    Questions & Answers

    What is the purpose of the Vietnamese delegation’s visit to the U.S. in late 2025?
    The delegation aims to progress discussions and finalize a reciprocal trade agreement with the United States.

    What principles guide the ongoing trade negotiations between Vietnam and the U.S.?
    The principles of openness, constructiveness, equality, mutual respect, independence, self-reliance, and shared benefits guide the negotiations, with the development levels of both nations taken into consideration.

    What are the MoIT’s plans for supporting domestic enterprises in Vietnam?
    The MoIT plans to address limitations within domestic enterprises, reduce reliance on the FDI sector, and work closely with businesses for regular consultations. The department also plans to intensify efforts around trade promotion, supply-demand connection, and product marketing.

  • Techcombank brings an AI-powered experience to 13,000 runners at the Hanoi International Marathon

    Techcombank brings an AI-powered experience to 13,000 runners at the Hanoi International Marathon

    The 4th Techcombank Hanoi International Marathon provides an AI-powered video experience for 13,000 runners. For the first time in Vietnam, an AI video generator enabled every runner to create a personalised video to recreate their race experience
    Hanoi, October 8th, 2025 – Following the success of the previous three seasons, the 4th Techcombank Hanoi International Marathon was held on 5th October 2025 and attracted over 13,000 Vietnamese and international athletes who competed over courses running past many of Hanoi’s most iconic cultural landmarks. For the first time ever in Vietnam, an AI video generator enabled every runner to create a personalised video of their race to celebrate their achievement and spread the spirit of Run for a Greater Vietnam.

    The 4th Techcombank Hanoi International Marathon was held under the direction of the Hanoi People’s Committee, organized by the Hanoi Department of Culture and Sports, in collaboration with Vietnam Technological and Commercial Joint Stock Bank (Techcombank) and Sunrise Events Vietnam (SEV).

    A unique feature of this year’s marathon was the application of AI video generation technology on the racecourse to create personalized highlight videos for every runner. By uploading a photo of themselves to an AI video generator, each runner could receive a video within 24-36 hours that recreated their most memorable moments as they ran past the historic landmarks of Hanoi. These videos enabled every runner to become an ambassador for the Techcombank Hanoi International Marathon and Techcombank’s Run for a Greater Vietnam initiative.

    The 4th season of the Techcombank Hanoi International Marathon attracted nearly 1.5 times as many runners as the previous edition. Offering a well-designed racecourse passing through Hanoi’s most famous historic districts, a unique AI-powered video experience and organized to international standards, the event delivered a world-class experience for its runners.

    More than 13,000 runners from 51 countries and territories competed in the 4th Techcombank Hanoi International Marathon, turning Hanoi into a global meeting point. Participants in the races passed through five historic districts in Hanoi and saw many of the city’s most famous landmarks, including the Ho Chi Minh Mausoleum, Long Bien Bridge, and the National Assembly building. Notably, the half-marathon (21km) featured the oldest ever participant in a marathon in Vientam – an 81-year-old runner.

    Ms. Thai Minh Diem Tu, Chief Marketing Officer at Techcombank, said: “The 4th Techcombank Hanoi Marathon was a fantastic occasion that brought the community together, promoted physical fitness and enabled runners to experience the wonderful city of Hanoi. We believe that a Greater Vietnam is not only built on a strong economic foundation, but also on a healthy, connected, and aspirational community. This is why we continue to support the Techcombank Hanoi International Marathon as part of our long-term strategy to elevate the quality of life for Vietnamese people. For the first time ever in Vietnam AI technology has been used to give every runner a personalised highlights video of their race to enable them to share their experience and spread the spirit of Run for a Greater Vietnam in the community”.

    Techcombank’s Run for a Greater Vietnam initiative encompasses community engagement activities aimed at promoting healthy lifestyles among Vietnamese. These include support for the annual Techcombank Hanoi and Ho Chi Minh City International marathons, which in 2024 attracted over 28,000 runners across the two events.

    In addition to the official races, the 4th Techcombank Hanoi International Marathon event also offered a range of other activities for the community held over three days, from October 3 to October 5, 2025. The highlight of these activities was the KIDS RUN, which comprised two races for young athletes from 5 to 14 years, over distances of 1.5 km and 3 km.

    To coincide with the marathon, Techcombank contributed VND 2 billion to the “For the Poor” Fund of Hanoi to build community houses, the Hanoi Child Protection Fund, and the Hanoi Federations of Basketball, Cycling, and Motorsports. This contribution was part of Techcombank’s long-term strategic mission to create better lives, make a positive contribution to the community, and fulfill its corporate social responsibility for a sustainable future.

  • Vietjet Launches 10-Day Super Sale with Up to 50% Off Fares, Free Baggage, and Hotel Perks Across Asia-Pacific

    Vietjet Launches 10-Day Super Sale with Up to 50% Off Fares, Free Baggage, and Hotel Perks Across Asia-Pacific

    Vietjet is kicking off its largest promotional campaign of the year, a 10-day Super Sale featuring discounts of up to 50% off airfares, complimentary checked baggage, and exclusive hotel offers. With an expanding fleet and a growing network across Asia-Pacific, Vietjet continues to make travel more accessible and convenient. For Singapore travellers, this means easy, direct flights at affordable prices to Hanoi, Da Nang, Ho Chi Minh City, and Phu Quoc, perfect for year-end getaways or New Year adventures.

    From 10 to 19 October 2025, travellers can enjoy up to 50% off Eco-class fares (excluding taxes and fees) by entering promo code SUPERSALE1010 when booking on www.vietjetair.com or the “Vietjet Air” mobile app. The promotion applies to Vietjet’s Singapore – Vietnam routes, and other services across its entire flight network, for travel between 1 November 2025 and 27 May 2026 (availability varies by route; excluding public holidays).

    As part of the Super Sale celebration, travellers flying between 1 and 25 November 2025 will also enjoy extra perks. For Eco passengers, Vietjet offers complimentary 20kg checked baggage on all international direct flights from and to Vietnam and 50% off pre-booked hot meals on both international sectors and Vietnam domestic flights. Meanwhile, Business and SkyBoss passengers can enjoy up to 50% off fares across all routes by using promo code LEADER10.

    Adding to the celebration, Vietjet passengers will also enjoy up to 50% off stays at the renowned Furama Resort in the beach paradise of Da Nang, valid for stays until 28 February 2026 (terms and conditions apply).

    As Vietjet has significantly increased flights to Vietnam, with one daily flight on the Singapore-Phu Quoc route and two daily flights on the Singapore-Da Nang route, there’s no better time to start planning your next adventure. With 49 weekly return flights by December 2025, travellers can enjoy authentic experience in Vietnam, from the bustling streets of Hanoi and Ho Chi Minh City to the serene beaches of Da Nang, Nha Trang, and Phu Quoc, or the cultural charm of Hue, Hoi An, and Ninh Binh.

  • Cafe Amazon Retreats From Vietnam: Intense Competition Spurs Strategic Pivot For Centel

    Cafe Amazon Retreats From Vietnam: Intense Competition Spurs Strategic Pivot For Centel

    Thailand’s Cafe Amazon seems prepared to bow out from the local market after a half-decade attempt to square up with local coffee chains. At the forefront of this decision is Central Plaza Hotel Public Company Limited (Centel), who will be stepping away from the Cafe Amazon joint venture in Vietnam. This move indicates a strategic pivot in response to the fierce competitive landscape in Vietnam’s coffee sector.

    Centel’s withdrawal implicates the dissolution of the ORC Coffee Passion Group Joint Stock Company (ORCG), the corporation responsible for the operations of Cafe Amazon within Vietnam. ORCG was a partnership between Centel’s indirect subsidiary, Central Restaurants Group (Vietnam), which owns a 40 per cent stake, and PTTOR International Holdings (Singapore), another subsidiary of the publicly-traded Thai firm PTT Oil and Retail Business, with a 60 per cent stake.

    In an official statement, Centel underscored the necessity to “realign business priorities” and adapt to the pressing challenges in the market. As of the end of August, the company’s investment in the venture amounted to THB 56 million (US$1.72 million).

    This decision marks the end of Centel’s involvement in Cafe Amazon’s expansion into Vietnam, an ambitious initiative that was launched in 2020 with the goal of becoming a top global coffee brand. Unfortunately, the stiff competition from both international and local chains proved to be too daunting.

    Questions & Answers

    What is the primary reason for Cafe Amazon’s exit from Vietnam?
    Intense competition from local and international coffee chains is the main reason behind Cafe Amazon’s exit from the Vietnamese market.

    What percentage of ORC Coffee Passion Group Joint Stock Company (ORCG) does Central Restaurants Group (Vietnam) hold?
    Central Restaurants Group (Vietnam), an indirect subsidiary of Centel, holds a 40 per cent stake in ORCG.

    When did Cafe Amazon originally plan its expansion into Vietnam?
    Cafe Amazon initiated its ambitious expansion into Vietnam in 2020, with the goal of becoming a top global coffee brand.

  • Vietnam’s Telecom Sector Set for 2.6% Growth, Fueled by Broadband and Mobile Data Expansion

    Vietnam’s Telecom Sector Set for 2.6% Growth, Fueled by Broadband and Mobile Data Expansion

    Vietnam’s telecommunications sector is on the cusp of a transformation, with total revenue from telecom services projected to grow at a compound annual growth rate (CAGR) of 2.6% from 2024 to 2029. According to GlobalData, this growth will largely hinge on the mobile data and fixed broadband markets, while traditional mobile voice services are expected to dwindle.

    Declining Voice Services, Soaring Data Growth

    The decline in mobile voice revenue reflects changing consumer preferences and competitive strategies of mobile network operators. Many operators are now offering free voice minutes within their plans, while users increasingly flock to over-the-top (OTT) and internet communication services. This shift has led to a notable drop in average revenue per user (ARPU) in the voice segment. Contrastingly, mobile data services are set to enjoy a significant CAGR of 9.7% during this period, fueled by a surge in mobile internet subscriptions and the transition from 4G to 5G services, which promise higher revenue potential and more premium data plan options.

    A Landscape Ready for 5G Revolution

    “4G services dominated mobile subscriptions in Vietnam in 2024 and are projected to remain the leading technology through 2029, thanks to the ongoing expansion of the 4G/LTE networks,” noted Srikanth Vaidya, Telecom Analyst at GlobalData. However, 5G adoption is accelerating rapidly as demand for high-speed connectivity rises. Telecom companies are ramping up their rollout of 5G services, supported by government initiatives aimed at expanding 5G coverage. Vietnam’s digital infrastructure strategy aspires to ensure 5G network access for 99% of its populace by 2030—an ambitious target that could turn the nation into a digital hotspot.

    Setting the Scene for Fixed Services Growth

    In the realm of fixed communication, revenue from fixed voice services is anticipated to experience a modest 0.7% CAGR, largely driven by the increasing prevalence of voice over internet protocol (VoIP) subscriptions. In contrast, the fixed broadband sector is poised for significant growth, projected at a CAGR of 1.8% from 2024 to 2029. This expansion will be bolstered by consumers increasingly opting for fiber-to-the-home (FTTH) services, as Vietnam aims to enhance its fiber broadband infrastructure and reach 80% of households by 2025.

    Industry Leaders: Who’s on Top?

    Vaidya pointed out that Viettel leads the mobile services sector in subscriptions as of 2024 and is set to maintain its dominance. The operator has emerged as a pioneer in 5G deployment, notably launching the world’s first open RAN (O-RAN) 5G network in November 2024, utilizing locally developed hardware combined with Qualcomm Technologies’ RAN platforms. On the fixed side, VNPT continues to excel in both fixed voice and broadband segments, leveraging its robust FTTH presence and multi-play bundling strategies to enhance customer offerings. The company’s ‘GOI Home’ and ‘Home GIAI TRI’ plans are designed to deliver more value and better services to attract and retain customers.

    Questions & Answers

    What is driving the expected growth in Vietnam’s telecom revenue?
    The growth is primarily driven by mobile data and fixed broadband services, as consumers increasingly shift toward these technologies over traditional mobile voice services.

    How is the Vietnamese government supporting the expansion of 5G?
    The government aims to provide 5G network access to 99% of the population by 2030, facilitating this through better infrastructure and incentives for telecom companies.

    Which companies are leading in Vietnam’s telecom market?
    Viettel holds the lead in mobile services due to its innovative 5G deployments, while VNPT excels in fixed voice and broadband segments through strong FTTH offerings and bundled service plans.

  • Coffee Exports Surge 61% in 2025, Boosting Global Market and Retail Opportunities

    Coffee Exports Surge 61% in 2025, Boosting Global Market and Retail Opportunities

    Vietnam exported 1.23 million tons of coffee worth US$6.98 billion in the first nine months of this year. In a remarkable surge, Vietnam’s coffee exports jumped 61% compared to the same period last year, fueled by climbing global coffee prices, according to the Import-Export Department. Among these shipments, Robusta beans dominated, contributing $4.9 billion, followed by processed coffee and Arabica varieties.

    Prices for coffee reached historic highs in early 2025 before stabilizing at levels comparable to last year from May to July. However, a rebound in August and September saw Robusta futures for November delivery on the London exchange hitting $4,200 per ton, while December Arabica futures traded in New York at $8,258.

    The rise in global prices has been attributed to a weaker U.S. dollar, coupled with supply disruptions in Brazil and Indonesia, primarily due to the ongoing effects of the El Niño weather phenomenon. Notably, a recent 50% tariff on Brazilian coffee imports imposed by the U.S. has opened a lucrative window for Vietnamese coffee, particularly as the U.S. remains one of the world’s largest coffee importers.

    Moreover, Vietnam stands as one of the few coffee-exporting nations equipped to meet the stringent standards outlined in Europe’s new EU Deforestation Regulation, set to take effect at the end of 2026. This readiness could bolster Vietnam’s position in the international market amid evolving demands.

    Yet, the road ahead is not without its hurdles. Exporters have raised concerns about the long-term challenges of enhancing processing capacities, ensuring consistent quality, and crafting a strong national brand. Industry experts opine that the U.S. tariffs will play a pivotal role in shaping the future landscape for Vietnam’s coffee exports, underscoring a transformative moment in the global coffee trade.

    Questions & Answers

    What factors contributed to the increase in Vietnam’s coffee exports this year?
    The 61% surge in coffee exports is primarily attributed to rising global coffee prices, supply disruptions in key producing countries, and an advantageous U.S. tariff on Brazilian coffee, which opened opportunities for Vietnamese coffee in the U.S. market.

    How is Vietnam preparing for future market regulations in coffee export?
    Vietnam is among the few coffee-exporting nations that can meet the upcoming EU Deforestation Regulation standards, which will be implemented from the end of 2026. This positions Vietnam favorably as market demands evolve.

    What challenges do Vietnamese coffee exporters face in maintaining growth?
    Exporters are concerned about upgrading processing capacities, maintaining consistent quality, and building a robust national brand, which are critical for long-term competitive success in the global market.

  • Global Financial Institutions Highlight Vietnam as a Rising Star in Economic Growth

    Global Financial Institutions Highlight Vietnam as a Rising Star in Economic Growth

    September’s economic reports from major global institutions paint a glowing picture of Vietnam’s continued growth. While forecasts for 2025 to 2026 vary, reflecting a mix of optimism and caution regarding global risks, the overall sentiment is decidedly positive.

    A Bright Future Ahead

    The Asian Development Bank (ADB) has raised its 2025 growth forecast for Vietnam to 6.7%. This optimistic revision reflects a robust recovery in the industrial and construction sectors. Singapore’s United Overseas Bank (UOB) is even more bullish, predicting a 7.5% growth rate and suggesting that with ongoing reforms, Vietnam could sustain an average long-term growth rate of 7%.

    Conservative Outlooks Amid Global Tensions

    In contrast, the World Bank (WB) and the International Monetary Fund (IMF) maintain a more conservative stance, forecasting growth rates of 6.6% and 6.5% for 2025, respectively. The IMF further warns that growth could slip to 5.6% in 2026 due to the impact of new U.S. tariff policies.

    Starting August 7, 2025, the U.S. will impose 20% tariffs on goods directly imported from Vietnam and 40% on goods identified as “transshipped.” This nuanced distinction is creating waves of uncertainty in key export sectors, leading to concerns among industry stakeholders.

    If broadly interpreted, WB estimates suggest between 1.6% and 10.6% of Vietnamese exports to the U.S. could be affected. This potential disruption is already being felt, as exports dipped by 2% in August, notably harming the textiles, wood, and machinery sectors.

    Domestic Resilience Amid Global Challenges

    Vietnam’s robust economic landscape continues to showcase strong internal drivers. In the first half of 2025, exports soared by 14.2%, while Foreign Direct Investment (FDI) disbursements reached an impressive US$15.4 billion—the highest in five years. This influx, especially from Japan, South Korea, and Europe, not only fuels capital growth but also enhances domestic production value chains.

    Private consumption, which constitutes over 65% of GDP, remains a solid pillar, buoyed by modest inflation around 3.3%. The service sectors—spanning retail to tourism—are witnessing a vigorous recovery, with an influx of nearly 14 million international visitors in the first eight months of 2025, representing a remarkable 30% increase year-on-year.

    Though agriculture contributes less to GDP, it remains essential for social stability and food security. Reports, including those from the UK Investor Magazine, laud Vietnam’s agricultural successes as markers of its economic adaptability and resilience.

    Fiscal Confidence Fuels Infrastructure Growth

    Vietnam’s fiscal position receives accolades as the public debt remains comfortably below 34% of GDP, well beneath the 60% ceiling. This advantageous status allows the government significant leeway for fiscal stimulus, with an ambitious plan for $48 billion in infrastructure investments across over 250 projects set to accelerate disbursement and deliver widespread economic benefits.

    Monetary policy is expected to take a more accommodating turn later this year; some banks are even predicting interest rate cuts to bolster business growth. The IMF has suggested adopting a wider, more flexible exchange rate band to tackle external pressures while preserving overall stability.

    Aiming for Sustainable Growth

    International observers underscore that if Vietnam continues its trajectory of institutional reform and business environment enhancement, a long-term growth target of 7% is well within reach. Fostering domestic business competitiveness, reducing dependence on FDI, and increasing investment in education—particularly in STEM and R&D—are essential steps in this journey.

    With a commendable 7.5% GDP growth in the first half of 2025 and bolstered by international confidence, the government’s growth target of 8.3% to 8.5% for 2025 is viewed as ambitious yet attainable. Shantanu Chakraborty, ADB’s Country Director for Vietnam, emphasizes that effective fiscal and monetary coordination, along with addressing structural challenges such as climate change and energy transition, are pivotal in constructing a balanced and sustainable growth model.

    In summary, Vietnam’s unwavering resolve and strategic policy management position it to solidify its standing as one of Asia’s fastest-growing and most stable economies, ready to carve out its place on the global stage.

    Questions & Answers

    What are the current growth forecasts for Vietnam’s economy?
    The Asian Development Bank predicts a 6.7% growth for 2025, while Singapore’s UOB is even more optimistic at 7.5%. The World Bank and IMF have more conservative projections at 6.6% and 6.5%, respectively.

    What impact will the new U.S. tariffs have on Vietnamese exports?
    New tariffs, effective August 7, 2025, could affect between 1.6% to 10.6% of Vietnam’s exports to the U.S. if broad interpretations are applied, with sectors such as textiles, wood, and machinery already feeling the pinch.

    How is Vietnam managing its fiscal and monetary policy to ensure growth?
    Vietnam has a public debt below 34% of GDP, allowing for significant fiscal stimulus. Accommodative monetary policies and potential interest rate cuts are expected later this year to support business growth.

  • Vietnam Airlines Set to Sell Stake in Jet Fuel Subsidiary Skypec, Reshaping Industry Landscape

    Vietnam Airlines Set to Sell Stake in Jet Fuel Subsidiary Skypec, Reshaping Industry Landscape

    Vietnam Airlines plans to sell up to 49% of its fully-owned subsidiary, Skypec, a key player in jet fuel distribution.

    The airline is embarking on a public auction of its shares, anticipated to occur between now and 2027, as outlined in a recent statement. This move is part of a strategic initiative first announced two years ago, aimed at restructuring the company to recover from previous financial losses.

    Strategic Moves Amidst Recovery

    Skypec stands out as one of Vietnam Airlines’ most successful subsidiaries, alongside its aircraft engineering counterpart Vaeco. Together with Petrolimex Aviation, Skypec dominates the aviation fuel market in Vietnam, supporting all domestic carriers and nearly a hundred international airlines operating in the country.

    Impressive Operational Footprint

    With a robust storage capacity of 200,000 cubic meters, Skypec services 18 airports across Vietnam, extending its operations to four international airports in South Korea. Last year, the company sold approximately 1.6 million tons of jet fuel, generating revenues of VND35.27 trillion (US$1.33 billion) with an after-tax profit exceeding VND268 billion.

    Turning Financial Fortunes Around

    Vietnam Airlines recently marked a significant turnaround, reversing its negative net worth following a government capital infusion of VND7.77 trillion. The government now holds a 47.09% stake in the airline, reflecting a collaborative effort to stabilize the national carrier. As a result, the airline reported a 10% year-on-year increase in revenues, totalling VND58.68 trillion in the first half of the year, with profits before tax soaring by 19.3% to VND6.68 trillion. Who knew a little fuel could fuel such big changes?

    Questions & Answers

    What is the main focus of Vietnam Airlines’ recent announcement?
    Vietnam Airlines intends to sell up to 49% of its stakes in its jet fuel subsidiary, Skypec, through a public auction between now and 2027 as part of its restructuring plan.

    How does Skypec contribute to domestic aviation?
    Skypec is a significant player in Vietnam’s aviation fuel supply, operating at 18 airports in Vietnam and servicing nearly 100 international airlines, making it crucial to the country’s air travel infrastructure.

    What financial improvements has Vietnam Airlines experienced recently?
    Thanks to a government capital injection, Vietnam Airlines has reversed its negative net worth and reported increased revenues and profits in the first half of the year, reflecting a positive turnaround in its financial health.

  • Dollar Stays Strong Against Dong: What This Means for Retail and Consumers

    Dollar Stays Strong Against Dong: What This Means for Retail and Consumers

    The U.S. dollar showed resilience against the Vietnamese dong Wednesday morning, even as it traded at a one-week low against major world currencies.

    Vietcombank set the greenback at a steady VND26,446, while in the informal market, it remained unchanged at around VND26,620. Meanwhile, the State Bank of Vietnam adjusted its rate down by 0.008%, bringing it to VND25,192.

    On the global stage, the dollar lingered near a one-week low, with tensions rising as the U.S. government shutdown commenced, delaying vital jobs data essential for market assessment, according to Reuters.

    The dollar index, which measures the currency against six major peers—including the euro and yen—was recorded at 97.814. It dipped to a low of 97.633 overnight, marking a notable decline since last Wednesday.

    Across the Atlantic, the euro edged up slightly to $1.1738, following a rise to its highest point since September 24, when it hit $1.1762 on Tuesday. The dollar remained flat at 147.92 yen, following a 1.2% drop over the previous three days.

    With the lack of official economic data, attention is shifting towards private-sector indicators. Market responsiveness to the duration of the shutdown will heighten, particularly as the Federal Reserve’s decision on monetary policy approaches on October 29.

    “The USD will likely resume its descent today if political developments portend a prolonged shutdown,” commented Joseph Capurso, head of foreign exchange at Commonwealth Bank of Australia. “Additional weak economic data from the U.S. could exacerbate these conditions,” he added, a statement that underscores the precarious balance the dollar now faces.

    Questions & Answers

    What is the current exchange rate of the U.S. dollar against the Vietnamese dong?
    Vietcombank set the dollar at VND26,446, with the black market rate around VND26,620.

    How is the U.S. government shutdown affecting the dollar’s performance?
    The shutdown has created uncertainty, delaying the release of crucial jobs data, which could negatively impact the dollar’s value.

    What are market experts predicting for the dollar in the coming days?
    Experts suggest that the dollar could continue to fall if the political situation indicates a prolonged government shutdown and further weak economic data emerges.

  • Vietnam’s E-commerce Surges Past Expectations, Outpacing Government Growth Projections!

    Vietnam’s E-commerce Surges Past Expectations, Outpacing Government Growth Projections!

    Vietnam’s e-commerce market is making headlines with a remarkable growth rate of 25-27% year-on-year in the first eight months of 2025, significantly surpassing the government’s ambitious target of 20-22%.

    The Ministry of Industry and Trade, which reported this data, has now elevated its growth projections for the year, aiming for a 25.5% growth rate. It’s almost as if e-commerce in Vietnam is on a rocket ride — and there’s no sign of slowing down.

    YouNet ECI, an e-commerce consultancy, highlighted that in the first half of the year, the combined gross merchandise value for the country’s four largest online retail platforms—Shopee, TikTok Shop, Lazada, and Tiki—climbed by 23% to VND222.1 trillion (approximately US$8.4 billion).

    Key categories such as health products, food and beverages, and mother-and-baby items have all displayed double-digit growth, indicating that consumers are increasingly turning to e-commerce as a vital shopping channel.

    This surge in online spending can be credited in part to exciting promotions from major platforms. For instance, Shopee reported on September 9, a significant discount day, that orders on its official store at Shopee Mall surged to six times the usual volume. An eye-popping 50-fold increase was seen in orders via live streaming on Shopee Live, while premium store purchases skyrocketed by 18 times.

    Shopee Vietnam’s CEO, Tran Tuan Anh, characterized this spike in activity as a “launch boost,” a phenomenon that propels sellers and brands to accelerated growth as they gear up for the year’s end. Meanwhile, Lazada’s Southeast Asia region noted double-digit increases in fashion, personal care, figurines, and collectibles during the same shopping event.

    Questions & Answers

    How much did Vietnam’s e-commerce market grow in the first eight months of 2025?
    The e-commerce market in Vietnam grew at an estimated 25-27% year-on-year, well above the government’s target of 20-22%.

    Which online retail platforms contributed to this growth?
    The major contributors to this growth include Shopee, TikTok Shop, Lazada, and Tiki, which combined saw a rise of 23% in gross merchandise value in the first half of the year.

    What role did promotional events play in this growth?
    Promotional events, particularly on September 9, significantly boosted sales, with Shopee reporting orders that were six times higher than normal, and massive increases in orders through live streaming features.

  • Exquisite Vietnamese Desserts Delight Guests at Exclusive UK Royal Navy Reception

    Exquisite Vietnamese Desserts Delight Guests at Exclusive UK Royal Navy Reception

    During the recent reception for the UK Royal Navy ship HMS Richmond in Ho Chi Minh City, a delightful culinary showcase turned heads as international guests were introduced to the refreshing flavors of Vinamilk’s ice cream, yogurt, and kombucha tea. The event, held on September 22, marked a celebratory moment for Vietnam and the United Kingdom as they commemorated 15 years of a strategic partnership focused on diplomatic, security, and defense cooperation.

    Heralding a Milestone for Vietnam-UK Relations

    The HMS Richmond, a multi-mission frigate, docked at Nha Rong Wharf as part of the U.K.-Vietnam Summer Festival 2025. Organized by the British Consulate General in Ho Chi Minh City, the festival welcomed the frigate while underscoring the importance of the anniversary in strengthening bilateral ties. Dignitaries from various embassies, local government officials, and leaders from British companies in Vietnam gathered to honor this pivotal relationship.

    A Taste of Vietnam’s Best

    As the sun set over the city, Vinamilk’s products took center stage, showcasing the rich tapestry of Vietnamese culinary heritage. Guests were particularly drawn to the gelato offerings, inspired by Italy’s classic treat. With their silky texture and bold flavors, Vinamilk’s gelato drew rave reviews; one visitor, Sam Wood, the Asia Pacific Director for Exports, noted, “This is the first time I’ve tasted Vinamilk gelato. It’s absolutely delicious and refreshing, especially on a night like this.”

    From Creamy Yogurt to Sparkling Kombucha

    Lieutenant Oliver Thomas from HMS Richmond expressed his admiration for Vinamilk’s Green Farm drinking yogurt, describing it as “very tasty, fresh, smooth, and creamy.” With a proprietary fermentation process incorporating six live European probiotics, the yogurt not only tantalized taste buds but also offered health benefits, marking it as a standout choice.

    The lively reception highlighted the “HAYDAY” kombucha, a handcrafted beverage fermented over six months from organic green tea leaves. Its fragrant aroma and tangy flavor established it as a refreshing favorite among health-conscious guests, creating engaging moments for connection among attendees.

    Mocktails that Spark Joy

    Even Vinamilk’s mocktails stole the show, with their vibrant tropical fruit juices artfully blended to highlight their natural flavors. Each sip left a beautiful impression, reminding visitors just how much flavor and creativity can flourish in the Vietnamese beverage scene.

    Connecting Through Flavor

    The event not only showcased the delights of Vinamilk, but served as a reminder of the increasingly vibrant cultural exchanges between Vietnam and the U.K. With tastes that celebrate culinary artistry, the reception seemed to assure that international connections are as essential as they are delicious. Who knew that yogurt could play matchmaker among nations?

    Questions & Answers

    What was the significance of the HMS Richmond’s visit to Ho Chi Minh City?
    The visit marked the 15th anniversary of the strategic partnership between Vietnam and the U.K., emphasizing diplomatic ties and cooperation in security and defense.

    What unique products did Vinamilk showcase at the event?
    Vinamilk showcased its gelato, Green Farm drinking yogurt, and “HAYDAY” kombucha, impressing guests with their quality and flavor.

    How did the guests respond to Vinamilk’s offerings?
    Guests were pleasantly surprised by the rich textures and flavors of the products, with many highlighting the refreshing nature of the gelato and the health benefits of the yogurt and kombucha.

  • H&M Eyes Expansion In Ho Chi Minh City Amid Southeast Asia Growth Strategy

    H&M Eyes Expansion In Ho Chi Minh City Amid Southeast Asia Growth Strategy

    The Swedish fast-fashion behemoth, H&M, is set to broaden its reach in Ho Chi Minh City, a bustling retail hotspot in Vietnam, as a crucial part of its larger growth strategy for Southeast Asia.

    Expansion Plans for H&M in Vietnam

    According to local sources, H&M Vietnam is actively scouting for opportunities to inaugurate new stores in the city’s prime commercial hubs. As it stands, the brand runs 14 stores throughout the country, with plans to increase this to 20 in the upcoming years. A significant emphasis is being placed on the city center of Ho Chi Minh City for these new store openings.

    In order to ensure a smooth expansion, H&M is diligently navigating local lease processes and adhering to regulatory requirements.

    H&M’s Growth in Vietnam and Beyond

    H&M ventured into the Vietnamese market in 2017. Despite this, its store count remains small when stacked against other markets in the region, such as Malaysia, Thailand, and the Philippines.

    However, it’s worth noting that the brand is experiencing a global resurgence, with its operating profit witnessing a 40 percent surge to US$523 million in this year’s third quarter. Additionally, their operating margin has also seen a rise, going up from 5.9 to 8.6 percent.

    Questions & Answers

    When did H&M first enter the Vietnamese market?
    H&M first entered the Vietnamese market in 2017.

    How many stores does H&M currently operate in Vietnam?
    At present, H&M operates 14 stores across Vietnam.

    What are H&M’s expansion plans in Vietnam?
    H&M plans to grow its presence in Vietnam by increasing its store count from 14 to 20 in the coming years, with a particular focus on central Ho Chi Minh City.