Vietnam Economic News: 10.5 – 17.5.2025
Summary of Vietnam Economic News: 10.5 - 17.5.2025
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Summary of Vietnam Economic News: 10.5 - 17.5.2025 ---
Vietnam to consider Vinspeed proposal to build high-speed railway
Reuters News – 15 May 2025
The Vietnamese government will consider a proposal from Vinspeed, a company established by billionaire Vingroup Chairman Pham Nhat Vuong, to develop a high-speed railway running the length of the country, a government document showed. Lawmakers in the Southeast Asian industrial hub in November approved a $67 billion plan to build the 1,541-km (958-mile) railway line linking the capital Hanoi with business hub Ho Chi Minh City. The authorities basically support and welcome the proposal from Vinspeed. Vinspeed, formally known as Vinspeed HighSpeed Railway Investment and Development JSC, submitted the proposal this week, saying it would complete the construction of the railway by 2030, five years earlier than previously targeted by the government, state media reported. Vinspeed said the cost of the railway would be 1,562 trillion dong ($60.26 billion), excluding costs for site clearance, the Ministry of Industry and Trade's Cong Thuong newspaper reported. The company, founded this month by Vuong, said it would arrange 20% of the investment and borrow the remaining 80% from the state at a 0% interest rate for 35 years, according to the report. "Vinspeed is currently negotiating with partners from countries with expertise in railway industries such as China, Germany, and Japan to receive technology transfers and manufacture locomotives, carriages and signal and control systems in Vietnam," Vingroup said in a statement. "The company will also quickly organise personnel training and master technology to take the initiative in developing the country's railway industry," it added. The government has assigned the construction ministry to seek opinions from related ministries and agencies to draft a resolution by May 20 to submit to the National Assembly, the country's lawmaking body. In October, the transport ministry said Vietnam would fund the railway entirely on its own, in a demonstration of the country's reluctance to accept foreign loans.
Vietnam steps up talks with US to reduce hefty tariff
Reuters News – 17 May 2025
Vietnam and the United States held their first direct ministerial-level negotiations on Friday against the backdrop of an impending U.S. tariff of 46% on imports from the country, which could significantly impact its growth. The Vietnamese trade ministry said in a statement released on Saturday that the meeting, which occurred in Jeju, South Korea, following the 31st APEC Ministerial Meeting on Trade, symbolised both nations' commitment to fostering a stable economic, trade, and investment relationship. The talks follow a phone call last month between Vietnamese trade minister Nguyen Hong Dien and U.S. Trade Representative Jamieson Greer that officially started negotiations. "USTR Greer agreed with Vietnam's current approach and proposal," the trade ministry's statement said. "The United States hopes that with the mutual efforts, the technical-level negotiations in the coming days will yield positive results." The U.S. has postponed the implementation of the 46% tariff on Vietnam until July. If enforced, the levy could disrupt growth in Vietnam, which is heavily dependent on sales to the United States, its largest export market, and substantial foreign investments in manufacturing goods for export. Vietnam has the fourth-largest trade surplus among all U.S. trading partners, worth $123.5 billion last year. In an attempt to diminish that trade surplus, Hanoi has recently implemented several measures, including reducing tariffs on a multitude of goods destined for the U.S. and intensifying its efforts to curb the shipment of Chinese goods to the U.S. via its territory.
Vietnam approves $1.5 billion investment plan by Trump Organization and partner
Reuters News – 16 May 2025
Vietnam's government has approved a plan by the Trump Organization and a partner to invest $1.5 billion in golf courses, hotels and real estate projects in the country. The project, planned on 990 hectares (2,446 acres) of land, will feature a complex of golf courses, resorts, hotels, and a modern residential project. The investment is expected to start this quarter and run until the second quarter of 2029, the newspaper said, citing a document signed by Deputy Prime Minister Tran Hong Ha. Real estate developer Kinhbac City, the Vietnamese partner of U.S. President Donald Trump's family business, announced the project in October. The Trump Organization and the Vietnamese government did not immediately respond to requests for comment. The approval comes amid trade negotiations between Vietnam and the United States, as the country, an industrial hub, seeks to avoid a U.S. import tariff of 46%. In March, Reuters reported that the Trump Organization and its partner were planning up to four golf and hotel projects in Vietnam. The first two courses are expected to be operational by mid2027. Vietnam, home to approximately 100 million people, has around 70 golf courses and 100,000 local golfers, according to the Vietnam Golf Association.
Vietnam, Thailand upgrade ties to comprehensive strategic partnership
Reuters News – 16 May 2025
Vietnam and Thailand on Friday announced they upgraded their ties to a comprehensive strategic partnership. The announcement was made after Thai Prime Minister Paetongtarn Shinawatra met her Vietnamese counterpart Pham Minh Chinh during her two-day visit to Hanoi. Thailand is Vietnam's largest trading partner among ASEAN members, with bilateral trade exceeding $20 billion last year, the Vietnamese government said on Friday. Thai firms have so far invested more than $14 billion in Vietnam. Minister Pham Minh Chinh and Minister Paetongtarn Shinawatra on Friday witnessed the signing of several cooperation documents, including memorandums of understanding on cooperation in trade, anti-narcotics, banking, education and aviation, according to documents reviewed by Reuters. The two neighbours aim to bring their bilateral trade to $25 billion annually by 2030, the government said.