Vietnam Economic News: 31.5 – 7.6.2025
Summary of Vietnam Economic News: 31.5 - 7.6.2025
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Summary of Vietnam Economic News: 31.5 - 7.6.2025 ---
USD3 BILLION TO BUY U.S. AGRICULTURAL COMMODITIES: VIETNAM SEEKS A GOOD DEAL OF RECIPROCAL TRADE AGREEMENT WITH THE U.S.
Dow Jones Newswires – 7 June 2025
Vietnam's Minister of Agriculture and Environment Do Duc Duy led a delegation of nearly 50 agencies, agribusinesses, and associations to the United States from June 2-6, 2025, to promote trade and increase imports of agricultural and timber products. The delegation held business dialogues in Iowa, Ohio, Maryland and Washington, D.C. The visit aimed to boost two-way trade and open new opportunities for Vietnam to import more U.S. agrifood and timber, contributing to a more balanced trade relationship. Beyond trade, the delegation also sought access to new technologies to enhance the competitiveness of Vietnam's agricultural value chains. Minister Duy noted that while both countries have strong agricultural sectors, their strengths are complementary rather than competitive. "With strong support from both governments, agriculture in Vietnam and the U.S. is becoming more interconnected. We now share parts of the same supply chains, which helps increase our competitiveness and benefits producers and consumers in both countries," the Minister stated. During the trip, Vietnamese businesses signed 20 MoUs, worth a total of USD3 billion to buy U.S. agricultural commodities. These agreements highlight the strong commitment and goodwill of Vietnam's business community and government to promote balanced trade with the U.S., and to encourage the Trump Administration to reconsider high reciprocal tariffs on Vietnamese goods.
AEON FINANCIAL SAYS ITS M&A DEAL WITH VIETNAM'S SEABANK IS INVALID
Reuters News – 6 June 2025
Aeon Financial Service said on Friday that its deal to buy a financial company owned by Vietnam's Southeast Asia Commercial Joint Stock Bank was invalid due to "inappropriate accounting transactions." The Japanese financial services company, a subsidiary of the Aeon retail group, in February completed the acquisition of Post and Telecommunication Finance, a non-banking credit organisation, from SeABank for about 26.2 billion yen ($181.81 million). But the Japanese company later found that accounting information disclosed before the agreement "significantly diverged from reality," it said in a statement. SeABank did not immediately reply to a request for comment. Aeon Financial said it will seek to invalidate the equity transfer agreement and wants to recoup expenses incurred in concluding the equity transfer agreement. ($1 = 144.1100 yen)
VIETNAM AIRLINES ANNOUNCES JOINT VENTURE WITH CHINA SOUTHERN AIRLINES
Reuters News – 27 May 2025
Vietnam Airlines said on Friday it has formed a joint venture with China Southern Airlines, the first such aviation partnership between the two countries. The joint venture has received regulatory approvals and is set to become operational from August, Vietnam Airlines said in a statement.
US, VIETNAM TO HOLD NEW ROUND OF TRADE TALKS BY END OF NEXT WEEK
Reuters News – 5 June 2025
The United States and Vietnam will hold a new round of trade talks by the end of next week, the Vietnamese trade ministry said on Thursday, after Hanoi submitted a document responding to U.S. trade requests. Authorities did not say when and where precisely the third round of talks will take place, as pressure mounts on both sides to find a compromise before a pause on 46% "reciprocal" tariffs on Vietnam exports expires in early July. The statement came after Vietnamese trade minister Nguyen Hong Dien and U.S. Trade Representative Jamieson Greer met in Paris on Wednesday, Hanoi said, and agreed to accelerate technical talks ahead of the third round of negotiations "scheduled to be held in the first half of June." U.S. negotiators have sent a long list of requests to Hanoi, which Vietnamese officials have described as "tough," including measures that could effectively reduce Vietnam's reliance on imports from China of materials and components. The Trump administration wanted countries to provide their best offers on trade negotiations by Wednesday as officials sought to accelerate talks with multiple partners ahead of the self-imposed deadline in just five weeks. Vietnam expressed its "determination and goodwill" in finding common positions on pending issues, its Ministry of Industry and Trade said in the statement posted on its portal on Thursday. It did not elaborate about what still needed to be agreed. Vietnam industrial hub relies on exports to the U.S., its top market, and at the same time on imports of industrial goods from China, which are assembled in Vietnam before exports. At the meeting in Paris, Dien and Greer "agreed to speed up the negotiation process, focusing maximum efforts to achieve the best results in the third round of negotiations," the Vietnam trade ministry statement said.
VIETNAM AIRLINES TO FINALISE ORDER FOR 50 BOEING 737 MAX JETS 'VERY SOON'
Reuters News – 2 June 2025
Flag carrier Vietnam Airlines will "very soon" finalise a provisional order for 50 Boeing 737 MAX jets that it made in 2023, a company executive told on Monday. The carrier will need up to 100 new narrow-body aircraft by 2035 to expand operations and replace existing aircraft, the executive said, declining to be named as they were not authorised to speak with media. Export-dependent Vietnam is under pressure from Washington to buy more American goods to avert tariffs. The carrier signed an initial agreement with U.S. planemaker Boeing in 2023 for 50 of the firm's single-aisle 737 MAX aircraft, but has not yet finalised the deal. Boeing did not immediately respond to a request for comment. In April, Vietnam Airlines signed a memorandum of understanding with the country's top lender Vietcombank for funding to purchase 50 narrow-body planes, without naming the manufacturer. The executive said Vietnam Airlines would be open to ordering Airbus aircraft if it could secure delivery slots with the planemaker, which has previously said its single-aisle jets are sold out through the rest of the decade.