Vietnam Economic News: 24.5 – 31.5.2025
Summary of Vietnam Economic News: 24.5 - 31.5.2025
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Summary of Vietnam Economic News: 24.5 - 31.5.2025 ---
FRANCE, VIETNAM SIGN DEALS WORTH $10 BILLION AS MACRON VISITS HANOI
Reuters News – 26 May 2025
France and Vietnam signed deals on Monday on Airbus planes, defence and other pacts, worth over $10 billion as President Emmanuel Macron visited Hanoi seeking to boost France's influence in its former colony amid risks of high U.S. tariffs. Macron's first formal visit to Vietnam, the first by a French president in nearly a decade, follows U.S. President Donald Trump's threats on Friday to impose 50% duties on European Union goods from June 1, fuelling tensions with the 27-country bloc, though he later delayed that deadline to July 9. Export-dependent Vietnam, under pressure from Washington to buy more American goods, has made pledges in trade talks to try to avert 46% tariffs that could impair its growth, fanning European concerns about deals at the region's expense. Macron said France signed 9 billion euros ($10.25 billion) worth of contracts in Vietnam during his visit. Deals covered the purchase of 20 Airbus planes, cooperation on nuclear energy, defence, rail and maritime transport, Airbus earth-observation satellites and Sanofi vaccines. In total 14 deals were signed, which would be short of the dozens that the French presidential palace had said were in preparation before the visit, but more agreements were expected to be announced on Tuesday, an official said. In statements to the press with no questions allowed, Macron reiterated France's support of freedom of navigation, an issue dear to Vietnam as it often clashes with Beijing over contested boundaries in the South China Sea. Macron added the partnership with Vietnam "entails a reinforced defence cooperation", citing the signing of multiple projects on defence and space. Vietnam's President Luong Cuong said the defence partnership involved "sharing of information on strategic matters" and stronger cooperation in the defence industry, cybersecurity and anti-terrorism.
SANOFI EXPLORING VACCINE PRODUCTION IN VIETNAM WITH LOCAL PARTNER
Reuters News – 27 May 2025
French pharmaceutical company Sanofi said on Tuesday it was exploring opportunities for producing vaccines in Vietnam in cooperation with local partner Vietnam Vaccine Company (VNVC), which announced plans to build a new plant. VNVC launched its plans to set up a plant in the southern province of Long An at a ceremony attended by French President Emmanuel Macron, who was on a visit to Vietnam, and Sanofi officials. Sanofi and VNVC on Monday signed an agreement on technology transfer. "The cooperation agreement between Sanofi and Vietnam Vaccine Company aims to explore opportunities for local vaccine production in Vietnam, as part of Sanofi's ongoing commitment to improving vaccine access in the country," Sanofi said in a statement on Tuesday. The plant is projected to produce 100 million vaccine doses annually for domestic use and export, with operations expected to begin by the end of 2027, VNVC said. The facility spans 2.6 hectares (6.4 acres) and has received an initial investment of 2 trillion dong ($77.19 million), VNVC said in a statement in response to a query from Reuters, but did not say which vaccines would be produced there. ($1 = 25,911.0000 dong)
MALAYSIA'S NAVIS CAPITAL PARTNERS SELLS STAKE IN VIETNAM'S GODACO SEAFOOD
Reuters News – 27 May 2025
Malaysia-headquartered private equity firm Navis Capital Partners has sold its controlling stake in Vietnamese seafood producer and processor, Godaco Seafood, in a management buyout, it said in a statement on Tuesday. Navis, which manages over $5 billion in assets, said that Godaco had grown substantially since its investment into a "fully integrated seafood company with globally competitive quality and pricing." It did not disclose any financial details of the transaction. Navis invested in Godaco in December 2012, its website showed. Godaco, founded by entrepreneur Nguyen Van Dao, operates throughout Vietnam's Mekong Delta and exports its products to over 70 countries globally, including China, Europe and the Middle East. Its main products include pangasius fish, a freshwater fish widely farmed in the region, as well as fish balls, scallops and Alaska pollock.
VIETNAM SEIZES FAKE ROLEX, PRADA ITEMS IN COUNTERFEIT CRACKDOWN
Reuters News – 30 May 2025
Vietnamese authorities have seized thousands of fake products, including imitation Rolex watches and Prada handbags, during a raid at a shopping mall in business hub Ho Chi Minh City. The raid at Saigon Square Shopping Mall comes as Vietnam steps up its fight against counterfeits and digital piracy, after the United States accused the country of being a major hub for these illegal activities and threatened crippling tariffs. Earlier in May Reuters reported fake luxury goods were on display in the mall, which is on the list of "notorious markets for counterfeiting" published in January by the U.S. Trade Representative. The items seized also included alleged fake products of other brands, including Longines, Gucci, Louis Vuitton, Dior and Hermes. "All of these products show signs of counterfeiting genuine goods, seriously affecting the interests of consumers as well as the reputation of protected brands in Vietnam," according to the trade ministry's market surveillance department as saying. An employee of the mall on Friday confirmed the raid. "We lease the space to the sellers and are not aware of the origins and authenticity of the products they sell," the employee, who declined to be named, said by phone.
WORK ON $1 BLN TRUMP TOWER IN VIETNAM COULD START NEXT YEAR
Reuters News – 30 May 2025
Investment in a planned Trump Tower in Vietnam is estimated at around $1 billion and construction of the at least 60-storey skyscraper could start next year. The building, for which plans are still preliminary, would be the second major project the Trump Organization, U.S. President Donald Trump's family business, is reviewing in Vietnam. The country is currently in trade talks with Washington to avoid crippling 46% tariffs. Eric Trump, senior vice president of the Trump Organization, visited Vietnam last week to survey the site for the tower in the country's southern business hub of Ho Chi Minh City and to attend the groundbreaking for a golf resort in northern Vietnam. The approval for the golf club, according to Prime Minister Pham Minh Chinh, had been expedited by the authorities. The Trump Organization would operate the golf club, while its Vietnamese partner, real estate firm Kinh Bac City, would focus on developing it with an estimated investment of $1.5 billion. The division of work had not been previously reported. A similar arrangement is likely to be agreed for the Trump Tower, with the investment expected to come mostly from local partners. When it announced its collaboration with the Trump Organization in October, the company said the venture "will focus on developing 5-star hotels, championship-style golf courses, and luxurious residential estates and unparalleled amenities in Vietnam." During his visit last week, Eric Trump toured the site where the skyscraper would be built and met local officials. That was in line with the schedule of his engagements with the city's authorities. The tower would be built in Thu Thiem, an area under development in central Ho Chi Minh City where a new financial centre is planned to be built.