Vietnam Economic News: 21.6 – 28.6.2025
Summary of Vietnam Economic News: 21.6 - 28.6.2025
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Summary of Vietnam Economic News: 21.6 - 28.6.2025 ---
VIETNAM APPROVES PLANS FOR INTERNATIONAL FINANCIAL CENTRE AMID US TRADE PRESSURE
Reuters News – 27 June 2025
Vietnam's lawmakers approved a plan on Friday to establish international financial centres in Ho Chi Minh City and Danang to attract investment and strengthen its global financial standing as economic uncertainties rise. The centres will operate under unified management, with Ho Chi Minh City focusing on capital, banking, and currency markets, and Danang on sustainable and green finance, leveraging its strategic location near East-West economic corridors, the government said in a statement. Finance Minister Nguyen Van Thang called the policies "innovative and competitive," noting their alignment with international standards, the statement added. A key feature will allow members of the centres to secure international financing and use foreign currency for transactions. Vietnam's foreign investment inflows rose 7.9% to $8.9 billion in the first five months of the year, while pledges surged 51.1% to $18.4 billion, the government said. However, the United States has threatened to impose 46% tariffs on Vietnamese exports unless concessions are made, which could slow the momentum. Prime Minister Pham Minh Chinh said earlier this week that Vietnam expects to reach a trade deal with the United States within two weeks. The financial centres will adopt international accounting and financial standards, including capital adequacy and liquidity ratios for both domestic and foreign-owned banks, the government added. Vietnam remains a key manufacturing hub for global firms such as Samsung Electronics, Foxconn, Intel, Nike, and Adidas.
VIETNAM SAYS ITS REFINERIES NOT YET AFFECTED BY MIDDLE EAST TENSIONS
Reuters News – 26 June 2025
Refineries in Vietnam are not being affected by the tensions in the Middle East at the moment, the Ministry of Industry and Trade said on Thursday. Vietnam plans to import 5.1 million tons of refined petroleum products in the second half of this year, up 6.2% from the first half, the ministry said in a statement. It said Binh Son Refining and Petrochemical's refinery, which has been operating at 114.4% of its designed capacity in the first half of this year, mostly uses domestic and African crude oil. The 130,000-barrel-per-day refinery is expected to operate at 14% to 15% above designed capacity for the rest of the year, and imports, which account for 30%-35% of its crude oil input, and are sourced from Libya and West Africa, the ministry said. The statement quoted the CEO of Nghi Son Refining & Petrochemical saying its 200,000-barrel-per-day refinery had sufficient crude oil supplies and was operating normally.
VIETNAM PM EXPECTS US TRADE DEAL BEFORE JULY TARIFF DEADLINE
Reuters News – 26 June 2025
Vietnamese Prime Minister Pham Minh Chinh said on Wednesday he expected a trade deal with the United States before the expiration of a pause on 46% reciprocal tariffs on Vietnamese exports in early July. Speaking at the "Is Asia's Century at Risk?" panel during the ongoing World Economic Forum in Tianjin, in northeastern China, Chinh said Vietnam's government was in frequent communication with the Trump administration on tariffs. "I hope that you will see that the result will come earlier than two weeks," Chinh said. "Vietnam and the U.S. share a deep understanding on tariffs. I hope that all the positive things will come for us." Vietnam, a major manufacturing hub in Southeast Asia, has held several rounds of negotiations with the U.S., the latest of which concluded last week. The country seeks to avoid the reinstatement of a 46% tariff rate, initially imposed due to its substantial trade surplus with Washington. Vietnam's trade surplus with the United States climbed to $12.2 billion in May, marking a nearly 42% increase year-on-year and a 17% rise from April, according to government data. Exports to the U.S. surged 42% from a year earlier to $13.8 billion, hitting a post-pandemic peak. Under pressure from Washington, Hanoi has intensified efforts to curb illegal trans-shipment, predominantly involving goods from China. Additionally, Vietnam has expressed willingness to reduce non-tariff barriers and expand imports of U.S. goods, including planes, agricultural products and energy, though no formal purchase agreements have been announced.
VIETNAM TO REMOVE DEATH PENALTY FOR EMBEZZLEMENT, SPARING TYCOON'S LIFE
Reuters News – 26 June 2025
Vietnam will remove the death penalty for eight offences from next month, including embezzlement and activities aimed at overthrowing the government, parliament said on Wednesday, sparing the life of a tycoon in a $12-billion fraud case. The National Assembly, the country's lawmaking body, unanimously ratified the amendment to the Criminal Code earlier on Wednesday to abolish the death penalty for the crimes, it said in a statement. Other crimes that will no longer lead to the death penalty include vandalising state property, manufacturing fake medicine, jeopardising peace, triggering invasive wars, espionage and carrying drugs, official Vietnam News Agency said. The maximum sentence for these crimes will now be life imprisonment, the report said. Those who were sentenced to death for these offences before July 1 but have not yet been executed will have their sentences commuted to life imprisonment, the report added. These will include real estate tycoon Truong My Lan, the chairwoman of real estate developer Van Thinh Phat Holdings Group, who was sentenced to death last year on embezzlement charges. "According to the amendment of the Criminal Code, her sentence will automatically be reduced to life imprisonment," according to lawyer Ngo Anh Tuan, who is not part of Lan's defence team. Ten offences will remain subject to capital punishment in Vietnam, including murder, treason, terrorism and the sexual abuse of children, according to the report. Drug trafficking will also remain a capital offence.