Vietnam Economic News: 5.7 – 12.7.2025
Summary of Vietnam Economic News: 5.7 - 12.7.2025
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Summary of Vietnam Economic News: 5.7 - 12.7.2025 ---
UAE FIRM G42 PLANS $2 BLN HYPERSCALE DATA CENTRE IN VIETNAM
Reuters News – 10 July 2025
The Abu Dhabi state-backed firm G42 plans to partner with Vietnamese companies to develop a $2 billion hyperscale data centre in Vietnam's business hub Ho Chi Minh City, state media reported on Thursday. The local partners include FPT Corp., investment firm VinaCapital and Viet Thai Group, the official Vietnam News Agency reported. Authorities in the city are seeking opinions from the Prime Minister on the project, the report said, without giving a timeframe for the development of the centre.
VIETNAM TO INTRODUCE MEASURES TO COPE WITH US TARIFFS, TRADE OFFICIAL SAYS
Reuters News – 9 July 2025
Vietnam will devise measures to improve product quality to cope with potential risks from U.S. tariffs, as it seeks to expand exports to other markets and reduce its reliance on the United States, the country's deputy trade minister said on Wednesday. The Ministry of Industry and Trade is coordinating with firms to work on the measures, Phan Thi Thang told an investment conference in Hanoi. The country reached an agreement with the Trump administration that saw a 20% tariff slapped on its products and a 40% levy on transhipments through Vietnam from third countries. Thang said the tariffs offer a chance for Vietnam to improve its product quality and diversify its export markets, with a focus on markets it has free trade agreements with. "With 16 free trade agreements, Vietnam is expanding its export markets to reduce its reliance on the United States market," she said. Vietnam's gross domestic product grew 7.96% in the second quarter, up from 6.93% in the first quarter, but it remains short of the country's full-year growth target of at least 8%. Prime Minister Pham Minh Chinh said at a separate meeting on Wednesday that reaching that target is a "big challenge."
VIETNAM AND CHINA AGREE TO BOOST TRADE TIES AS TRUMP TARIFFS HIT
Reuters News – 8 July 2025
Vietnamese Prime Minister Pham Minh Chinh and China's Premier Li Qiang have agreed to boost trade and investment ties between the two countries during a meeting on the sidelines of the BRICS summit in Brazil, Vietnam's government said on Tuesday. The move came days after U.S. President Donald Trump announced a new trade deal with Vietnam that would slap a 20% tariff on all Vietnamese exports to the United States but also put a 40% levy on transshipments through Vietnam from third countries. Details on the 40% tariffs on transhipments are yet to be made public, but analysts said the measure was primarily aimed at components and materials originating from China, Vietnam's key source of inputs for its manufacturing industries. The tariff rates were lower than an initial 46% rate threatened by Trump in April, and Vietnam also agreed to import U.S. products with a zero percent tariff. During the BRICS meeting with Li, Chinh also called on China to prioritise cooperation on railway construction, adding that Vietnam would start building a new rail link connecting the two countries in December.
VIETNAM CENTRAL BANK TO PRIORITISE GROWTH FOR REST OF YEAR AMID GLOBAL UNCERTAINTIES
Reuters News – 8 July 2025
Vietnam's central bank said on Tuesday it will continue to adopt flexible monetary policies for the rest of the year, with priority given to supporting growth. Uncertainties in the global economy will remain and will affect the Vietnamese economy, Deputy Governor of the State Bank of Vietnam Pham Thanh Ha said. "Risks in the global financial and monetary markets have put pressure on monetary policy management, exchange rates, interest rates as well as the target for economic growth of at least 8% this year," he said. The central bank said it will continue to urge banks to cut costs and speed up digitalisation to pave the way for cutting their lending rates. The central bank will also direct banks to boost their lending in a "safe and effective" manner, with the focus on production and business projects, it said. He added that banks' total outstanding loans rose 9.9% by the end of June from the end of last year.
VIETNAM IMPOSES ANTI-DUMPING TARIFF ON HOT-ROLLED STEEL FROM CHINA
Reuters News – 7 July 2025
Vietnam has imposed an anti-dumping levy of up to 27.83% on some hot-rolled coil steel products originating from China after a similar temporary tariff expired, the trade ministry said on Monday. The tariff took effect from July 6 and will be in place for five years, the ministry said in a statement. In March, the ministry imposed a similar temporary anti-dumping levy that lasted for 120 days. Among the companies hit by the 27.83% duties are Baoshan Iron & Steel and Maanshan Iron & Steel. Guangxi Liuzhou Iron and Steel Group will also face duties of 23.1%, higher than the 19.38% rate imposed in March, according to the statement. "Domestic production suffered significant damage," itsaid. "There is a correlation between the dumped imports from China and damage to the domestic sector." Vietnam launched an anti-dumping investigation last July following complaints from Vietnamese producers. The government had said that in the January-September period of last year Vietnam imported nearly 8.8 million tons of hot-rolled steel, 72% of which originated from China.