Vietnam Economic News: 14 - 21.3.2026
Summary of Vietnam Economic News: 14 - 21.3.2026
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Summary of Vietnam Economic News: 14 - 21.3.2026 ---
VIETNAM CONFIDENT OF MARKET UPGRADE, INVESTMENT BOOST AFTER SUSTAINED SELL-OFF, MINISTER SAYS
Reuters News– 20 March 2026
Vietnam remains confident it will gain “emerging market” status from FTSE Russell, which officials say could attract billions in foreign investment despite ongoing equity outflows. Foreign investors have continued selling—about $920 million this year after $5 billion in 2025—driven by global factors like U.S. tariffs, a strong dollar, interest rate gaps, and a shift toward AI-focused markets. The upgrade decision is still under review (expected soon, with implementation targeted for September), and could bring $2–5 billion in inflows within a year, with potential net inflows by 2026. However, the market remains volatile due to heavy retail participation, and reforms—especially easing foreign ownership limits—are needed to support further upgrades and attract institutional investors.
VIETNAM ACCELERATES SHIFT TO ETHANOL FUEL AS IRAN WAR DRIVES UP ENERGY PRICES
Reuters News – 20 March 2026
Vietnam will switch fully to ethanol-blended gasoline earlier than planned as part of its efforts to curb fossil fuel use, a government document showed on Friday, as the war in Iran continues to disrupt global energy supplies. The country will begin using E10 gasoline - a blend containing 10% bioethanol - from next month, according to a government directive signed by Prime Minister Pham Minh Chinh on Thursday, bringing forward a previous target of June 1. Fuel prices in Vietnam have surged since the U.S.-Israel war on Iran began three weeks ago, with gasoline prices up 50% and diesel prices rising 70%, according to data from top fuel trader Petrolimex. The disruption has "caused significant fluctuations in energy prices, creating numerous challenges for countries dependent on energy imports and increasing risks to the energy security of many nations, including Vietnam," the document said. The directive urges authorities to introduce incentives for the production and use of electric vehicles and calls for the expanded development and use of renewable energy. It also said Vietnam will completely eliminate the use of 20-watt to 60-watt incandescent light bulbs from the third quarter of 2026.
VIETNAM FIRMS VIE FOR CRYPTO LICENCES AS HANOI PLANS BAN ON OVERSEAS TRADING
Reuters News – 17 March 2026
Vietnamese companies are competing to launch the country’s first licensed cryptocurrency exchanges as the government prepares a pilot program to bring trading onshore and tighten oversight. Five firms—including affiliates of major banks (Techcombank, VPBank, LPBank), VIX Securities, and Sun Group—have passed an initial round, with some confirming licence applications. The push comes as Vietnam ranks among the world’s most active crypto markets, with over $200 billion in transactions last year. Authorities are increasingly concerned about capital outflows and are drafting rules to restrict trading on overseas platforms, where most activity currently takes place. Officials say domestic exchanges could help retain transaction fees within Vietnam and support the development of its digital financial sector, while offering more regulated investment options in a market with limited alternatives.
VIETNAM BRACES FOR FLIGHT CUTS FROM APRIL AFTER CHINA, THAILAND BAN JET FUEL EXPORTS
Reuters News – 16 March 2026
Vietnam has warned its aviation sector to prepare for possible flight cuts from April due to looming jet fuel shortages, after China and Thailand halted exports amid the Iran war. The country relies heavily on imports (over two-thirds of supply), and major suppliers can only guarantee fuel through March. Authorities have advised airlines to review schedules, prioritise essential domestic routes, and prepare for disruptions. Efforts are underway to secure alternative suppliers and seek diplomatic support, but options are limited, and domestic refineries cannot easily increase output. Even if supply improves, sharply higher fuel prices are expected to make many routes unprofitable, adding further strain on the aviation industry.
VIETNAM ASKS JAPAN, SOUTH KOREA FOR HELP IN CRUDE OIL ACCESS
Reuters News – 15 March 2026
Vietnam has asked Japan and South Korea to help increase its access to crude oil amid global supply disruption triggered by the Iran war, its trade ministry said on Monday. Deputy Minister of Industry and Trade Nguyen Hoang Long made the requests on the sideline of an energy security summit in Tokyo over the weekend, the ministry said in a statement. Vietnam has two oil refineries that meet about 70% of its fuel needs. Much of the crude oil they process is sourced from the Middle East. Long has "requested that Japan, given its important role and large crude oil reserves, support Vietnam in searching for and accessing crude oil sources to meet domestic needs," the statement said following his meeting with Matsuo Takehiko, Vice Minister for International Affairs at Japan's Ministry of Economy, Trade and Industry. Long also discussed with Matsuo measures to boost Japanese investment in liquified natural gas and nuclear power in Vietnam, the statement said. At his meeting with South Korea's industry minister Kim Jung-Kwan, Long also requested South Korea's support in helping Vietnam access crude oil sources, according to the statement. Vietnam imported 14.2 million tons of crude oil last year, up 5.3%, according to the government's customs data.