Latest news with #VietnamEconomy
CNA
a day ago
- Business
- CNA
Vietnam approves plans for international financial centre amid US trade pressure
HANOI: Vietnam's lawmakers approved a plan on Friday (Jun 27) to establish international financial centres in Ho Chi Minh City and Da Nang to attract investment and strengthen its global financial standing as economic uncertainties rise. The centres will operate under unified management, with Ho Chi Minh City focusing on capital, banking, and currency markets, and Danang on sustainable and green finance, leveraging its strategic location near East-West economic corridors, the government said in a statement. Finance Minister Nguyen Van Thang called the policies "innovative and competitive", noting their alignment with international standards, the statement added. A key feature will allow members of the centres to secure international financing and use foreign currency for transactions. Vietnam's foreign investment inflows rose 7.9 per cent to US$8.9 billion in the first five months of the year, while pledges surged 51.1 per cent to US$18.4 billion, the government said. However, the United States has threatened to impose 46 per cent tariffs on Vietnamese exports unless concessions are made, which could slow the momentum. Prime Minister Pham Minh Chinh said earlier this week that Vietnam expects to reach a trade deal with the United States within two weeks. The financial centres will adopt international accounting and financial standards, including capital adequacy and liquidity ratios for both domestic and foreign-owned banks, the government added. Vietnam remains a key manufacturing hub for global firms such as Samsung Electronics, Foxconn, Intel, Nike and Adidas.
Reuters
3 days ago
- Business
- Reuters
IMF says high tariffs would see Vietnam's growth slow to 5.4% this year
HANOI, June 25 (Reuters) - The International Monetary Fund said on Wednesday that Vietnam's economic growth this year would slow to 5.4% from last year's expansion of 7.09% under a "high tariffs" scenario. The Southeast Asian industrial hub has held several rounds of negotiations with the U.S. to strike a deal to avoid the Trump administration's threatened 46% tariff rate on its exports. "The outlook is heavily dependent on the outcome of trade negotiations and is constrained by elevated global uncertainty on trade policies and economic growth," the IMF said in a statement. The IMF said under the high-tariff scenario, economic growth would decelerate further next year, but added that "if global trade tensions subside, the economic outlook would improve significantly". An IMF team met with senior officials of the government, central bank, finance ministry, think tanks and other stakeholders over the past two weeks, it said in a statement.
Reuters
17-06-2025
- Business
- Reuters
Vietnam parliament approves extension of VAT cut until end-2026
HANOI, June 17 (Reuters) - Vietnam's National Assembly, the country's lawmaking body, on Tuesday passed a resolution to extend a cut in the value-added tax rate until the end of next year, state media reported. Vietnam cut its VAT rate to 8% from 10% in early 2022 to support the economy after the COVID-19 pandemic, and has since extended it a number of times. The lowered rate applies to most goods and services, with exceptions for telecommunication, financial, insurance, real estate and stock trading services and metal products, Vietnam News Agency reported. The tax cut will cost 121.74 trillion dong ($4.7 billion) in foregone revenue from July to the end of next year, the report cited a Finance Ministry report as saying. U.S. President Donald Trump said earlier this year that value-added taxes in other countries carried a lot of blame for America's trade deficit. ($1 = 26,060 dong)
Bloomberg
12-06-2025
- Business
- Bloomberg
Vietnam Has Far Bigger Worries Than Its Baby Bust
Vietnam rightly worries about the harm US tariffs will inflict on its success, and even more bullish aspirations. The levies will slow an economy that's racked up impressive rates of growth. The past few months have also revealed a challenge of a different nature: A declining birth rate. This is a country, often hailed as a development model, that has a lot on its plate. It should avoid going overboard on sweating demographics. That's not an existential issue — yet. In some ways, the trend toward fewer births could even be called a victory. Trade, linked so intimately with the decades-old industrialization plan, is the more vital front. The setting of priorities is important, but they can travel on two tracks.
Bloomberg
11-06-2025
- Business
- Bloomberg
US Tariffs Threaten to Derail Vietnam's Historic Industrial Boom
An economic boom lifted the country of 100 million out of poverty. Then came the Trump rug-pull. It's been several weeks since US President Donald Trump declared his global trade war, but Dinh Ngoc Hien is still busy tending to her stream of customers. One by one, they pluck cigarettes, noodles, eggs and soda from the shelves of her convenience store in Dong Nai, a heavily industrialized province just east of Ho Chi Minh City, Vietnam's business capital. Hien has been here since dawn, and she'll remain after dusk. Then she'll lock up, get on her motorbike and zip through the bustling streets of a place that could have more to lose from Trump's policies than almost any other. The president's 'Liberation Day' tariffs, unveiled on April 2, targeted Vietnam with a 46% rate—one of the highest for any country, threatening to devastate large swaths of its economy. The nominally socialist nation of 100 million has woven itself tightly into global commerce since the late 1980s, when it began allowing free enterprise and started mending its war-ravaged relationship with the US. Adidas, Apple, Intel, Levi Strauss and Samsung Electronics have all set up manufacturing bases here, along with hundreds of other international companies. Today, net exports to the US account for around one fifth of Vietnam's gross domestic product.
