Vietnam Economic News: 14.6 – 21.6.2025
Summary of Vietnam Economic News: 14.6 - 21.6.2025
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Summary of Vietnam Economic News: 14.6 - 21.6.2025 ---
ENQUEST TO FINALISE $84 MILLION VIETNAM OILFIELD ACQUISITION SOON
Reuters News – 21 June 2025
UK explorer EnQuest expects to complete the acquisition of Harbour Energy's business in Vietnam in the next month or two and plans to drill new wells to increase oil production there, CEO Amjad Bseisu said. The $84 million acquisition is part of the North Sea-focused company's expansion outside its home market. EnQuest will acquire just over a 53% equity interest in the Chim Sao and Dua production fields in Vietnam. "We were excited about the asset there as we see development opportunities, and we also see some in-fill opportunities," Bseisu said. "So, we'll be looking, once we take over, to investing in the field and trying to increase its productivity." Daily gas production will be increased from 14,000-15,000 barrels of oil equivalent to 25,000 boe, he added. The company, along with energy majors, is investing in gas exploration and production in Southeast Asia to meet rising power demand from growing populations and a proliferation of data centres in the region. "Asia is our biggest growth engine now for gas," Bseisu said.
VIETNAM, US HOLD NEGOTIATIONS ON NEW TRADE DEAL
Reuters News – 20 June 2025
Vietnam and the United States held an online round of negotiations on a new trade deal on Thursday night, the Ministry of Industry and Trade said on Friday. During the negotiations with U.S. Secretary of Commerce Howard Lutnick and Trade Representative Jamieson Greer, Vietnamese trade minister Nguyen Hong Dien asked the U.S. to review "reciprocal tariffs" and market access for Vietnam's key exports, the ministry said in a statement. The Southeast Asian industrial hub has held several rounds of negotiations with the U.S. to strike a deal that would allow Vietnamese goods to avoid a 46% tariff rate, imposed largely as a result of its big trade surplus with Washington. "The negotiation round was conducted in a candid, friendly and constructive manner," the ministry said. Minister Dien also welcomed proposals from Lutnick and Greer during their talks, the ministry added without elaborating. Dien said Vietnam wants to develop with the U.S. a set of practical and harmonious rules of origin of goods that is in line with global supply chains, according to the statement.
VIETNAM CAN BORROW MORE FROM FOREIGN LENDERS IF NEEDED, CENTRAL BANK SAYS
Reuters News – 19 June 2025
Vietnam has room to borrow more from foreign lenders if needed to boost economic growth, central bank governor Nguyen Thi Hong told the parliament on Thursday. The country industrial hub is in need of investment funds to speed up its infrastructure development, including new power plants, a high-speed railway system, airports and highways. The central bank may also raise its 16% target for credit growth for this year if needed, Hong said, as Vietnam seeks to boost investment to achieve its economic growth goal of at least 8% this year. "We can arrange sufficient funding (for investment) while ensuring the safety of public debt and foreign debt," Hong said. However, Hong said it would be "too risky to continue to rely on funding from the domestic banking system," noting that total lending by local banks was equivalent to 134% of GDP as of the end of 2024.
THAI BEVERAGE COULD BE HURT BY VIETNAM'S RECENT HIGHER TAX
Dow Jones Newswires – 17 June 2025
Thai Beverage could be hurt by Vietnam's recent higher tax on alcoholic beverages, UOB Kay Hian analysts write in a note. The special consumption tax on these drinks will be raised to 90% by 2031 from the current 65%. Vietnam's beer sector is already facing low volumes from stringent drinkdriving laws and changing domestic preferences, they say. The higher alcohol tax would negatively hurt beer consumption volumes in the medium-long term and affect beer producers, they add. With global macroeconomic uncertainty, they also expect weakening domestic demand to remain muted, leading to lower revenue and profitability for domestic beer producers. UOB Kay Hian lowers the stock's target price to S$0.45 from S$0.51, while maintaining a hold rating. Shares are at S$0.46.
AIRBUS STRIKES DEAL FOR UP TO 150 PLANES WITH VIETJET
Reuters News – 17 June 2025
Airbus struck a deal on Tuesday to sell up to 150 single-aisle aircraft to Vietnamese budget airline VietJet, as the European plane maker continues to rack up business at the Paris Airshow. The companies said they had signed a memorandum of understanding for VietJet to buy 100 more A321neo planes, with the option to add up to a further 50 to the deal in future. A deal for 150 A321neos could be worth around $9.4 billion. According to VietJet Chairwoman Nguyen Thi Phuong Thao, these modern and efficient aircraft have been instrumental in VietJet's growth. "This landmark agreement represents a vital step in VietJet's growth strategy as a multinational aviation group", she added. The planes will be delivered from 2030 onwards, and VietJet said it had financing in place for the deal. European plane maker Airbus has announced a flurry of deals at the Paris Airshow, the world's biggest aviation trade fair that opened on Monday. U.S. rival Boeing is expected to have a more subdued show as it focuses on the probe into last week's fatal crash of an Air India Boeing 787 and after it racked up huge deals during U.S. President Donald Trump's recent tour of the Middle East. VietJet, the largest private airline in Vietnam, operates an all-Airbus fleet, apart from two Chinese-made regional jets. The airline has not to date taken delivery of any of the around 200 MAX planes it has ordered from Boeing. Airbus is the main supplier of jets to Vietnam, accounting for 86% of the planes currently operated by Vietnamese airlines. However, the export-dependent Southeast Asian country is under pressure from Washington to buy more U.S. goods. VietJet's latest deal comes only weeks after it ordered 20 A330neo wide-body airliners from Airbus.