Vietnam Economic News: 3.5 – 10.5.2025
Summary of Vietnam Economic News: 3.5 - 10.5.2025
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Summary of Vietnam Economic News: 3.5 - 10.5.2025 ---
Vietnam’s Binh Son refinery signs deal with socar trading for crude oil supplies
Reuters News – 8 May 2025
Vietnam's Binh Son Refining and Petrochemical Company said on Thursday it had signed an agreement with Azerbaijan's SOCAR Trading for long-term crude oil supplies. Binh Son has been using Azeri crude oil at its 130,000 barrel-per-day Dung Quat refinery in central Vietnam for years, the company said in a statement, without giving further details about the new deal. The refinery has bought 31.7 million barrels of Azeri crude oil for around $2.55 billion since 2010, it said.
Vietnam Airlines says it has rerouted flights due to India-Pakistan tensions
Reuters News – 7 May 2025
Flag carrier Vietnam Airlines has rerouted around 10 flights between Vietnam and European countries including Germany, France and England to avoid Pakistani airspace, it said on Wednesday, after tensions flared between India and Pakistan. "Flights between Vietnam and Europe will likely continue to be rerouted over the next days, depending on the regional situation," the airline said. Budget airline Vietjet said it had not been affected by the tensions.
Blockchain network “make in Vietnam”: Master strategic infrastructure technology
Dow Jones Institutional News – 7 May 2025
1Matrix, an ecosystem member of Techcombank, One Mount Group, Masterise Group, Techcom Securities, also a member of the Vietnam Blockchain Association (VBA), as well as a strategic partner of Boston Consulting Group (BCG), has announced its initiative to build a "Make in Vietnam" blockchain network. On May 6, 2025, 1Matrix officially debuted its project before a broad audience of government regulators, technology partners, and both domestic and international stakeholders. The initiative affirms 1Matrix's mission to develop the Vietnam Blockchain Network, aiming to empower the country to master blockchain technology and establish a foundation for significant progress in the digital age. 1Matrix aims to build foundational and core technologies from consensus algorithms and data mechanisms to network security and user experience based on the legacy of previous blockchain innovations. This will be the first blockchain service network designed and operated by Vietnamese professionals, fully compliant with international interoperability standards. As part of the event, strategic cooperation agreements were announced between 1Matrix, the Vietnam Blockchain Association, and Boston Consulting Group (BCG), aiming to realize the goal of building a Vietnamese blockchain network and mastering strategic infrastructure technologies.
Vietnam’s shipments from China and to US reach record high amid trade fraud crackdown
Reuters News – 7 May 2025
Vietnam's imports from China and exports to the United States both reached a post-pandemic record in April, amid talks with Washington to reduce Hanoi's trade surplus and a crackdown on Chinese goods being shipped to the U.S. via its territory. The nation faces the risk of 46% duties on its exports to the U.S. if the White House confirms this rate at the end of a global tariff pause in July. This could undermine Vietnam's growth model and hit multinationals exporting from the country, including Samsung and Nike. Hanoi has made multiple offers to the Trump administration to avoid high levies, including clamping down on illegal transshipment of Chinese goods to the U.S. via Vietnam. Goods benefit from lower tariffs if labelled as 'Made in Vietnam'. However, trade trends that have attracted U.S. criticism are accelerating, potentially complicating Vietnam's efforts to extract U.S. concessions in ongoing trade talks. The Trump administration wants to reduce trade imbalances, but Vietnam's surplus with the United States - already one of the highest globally - expanded by nearly 25% in the four months to April year on year, according to Vietnam's statistics agency. In March alone, it exceeded $13.5 billion, the highest monthly figure ever, U.S. data showed. Manufacturers in Vietnam are ramping up exports to the United States before a possible tariffs hike, multiple industry executives said. In April, shipments to the U.S. exceeded $12 billion, 34% higher than a year earlier, and the largest value recorded after the COVID-19 pandemic, Vietnam's customs data showed. At the same time, Vietnam is ramping up imports from China, which also reached a postpandemic record in April, exceeding $15 billion, according to customs data. Vietnam's exports to the U.S. in recent years have been fuelled by imports from China, with inflows from Beijing closely matching the value and swings of exports to Washington. Vietnam's imports of Chinese goods, often components or raw materials used in Vietnamese factories, grew nearly 31% in April from a year earlier. Industrial production rose 8.9% in the same period.
Vietjet forms joint venture with Qazaq Air, will operate Boeing 737 jets
Reuters News – 6 May 2025
Vietnamese budget airline Vietjet said on Tuesday it had bought a strategic stake in Kazakhstan's Qazaq Air to form a joint venture that will operate a fleet of at least 20 Boeing 737 aircraft. Vietjet said the joint venture, Vietjet Qazaqstan, was part of its international expansion plans. It didn't provide details about the size of the stake it was buying in Qazaq Air. "Vietjet Qazaqstan is a new generation low-cost airline, expected to become a strategic aviation bridge between Kazakhstan and Vietnam, Southeast Asia and international aviation centres," it said in the statement. The joint venture has signed a deal with Boeing for services including software solutions, spare parts, technical assistance, and training programs for pilots and engineers.