Vietnam Economic News: 12.7 – 19.7.2025
Summary of Vietnam Economic News: 12.7 - 19.7.2025
---
Summary of Vietnam Economic News: 12.7 - 19.7.2025 ---
VIETNAM WARNS OF FOOD SUPPLY DISRUPTIONS AS AFRICAN SWINE FEVER SPREADS
Reuters News – 18 July 2025
African swine fever outbreaks are spreading in Vietnam, threatening to disrupt food supplies in the country, the government warned on Friday. Vietnam has this year detected 514 outbreaks in 28 out of 34 cities and provinces nationwide, the government said in a statement, adding that the authorities have culled more than 30,000 infected pigs. "The risk of African swine fever is on a rising trend, negatively affecting the pig farming industry, food supplies and the environment," the government said. African swine fever has disrupted the global pork market for years. In the worst outbreak over 2018-19, about half the domestic pig population died in China, the world's biggest producer, causing losses estimated at over $100 billion. The recent outbreaks in Vietnam have prompted Prime Minister Pham Minh Chinh to send an urgent directive to provinces and government agencies this week to deploy measures to curb the disease. Vietnam in 2023 approved the domestic commercial use of its first home-grown African swine fever vaccines, but officials said the rate of vaccinated pigs remains low. "Only around 30% of the pigs in my province have been vaccinated," said an animal health official of Quang Ngai province, where infections have been reported over the past few weeks. "It's not clear why the rate is low - it could either be the issue of vaccine availability, efficiency or cost," said another provincial official, who declined to be named as the person is not authorised to speak to the media.
VIETNAM OUTLINES NEW FINANCIAL REFORMS IN BID FOR EMERGING MARKET STATUS
Reuters News – 18 July 2025
Vietnam is set to officially launch a central counterparty mechanism in early 2027 as part of its push to be reclassified as an emerging market as early as this year and attract more foreign investors, the State Securities Commission said. Vietnam has been on global index provider FTSE Russell's watchlist for an upgrade since 2018. It is currently classed as a frontier market, limiting the investment it can attract from funds, investors, and family offices in the nation's listed companies. An upgrade to emerging market status could rapidly channel $5 billion into Vietnam's financial markets, according to World Bank estimates. The government released a four-phase plan running through 2027 to secure the upgrade during a visit to Hanoi by FTSE Russell's global head of equity and multi-asset, Gerald Toledano. The roadmap includes finalising the legal framework and establishing a Central Counterparty-operating subsidiary under the Vietnam Securities Depository and Clearing Corporation. In a meeting with Toledano late on Thursday, Prime Minister Pham Minh Chinh expressed his hope FTSE would support a classification upgrade for Vietnam, statebroadcaster Voice of Vietnam (VOV) reported. Toledano highlighted Vietnam's strong liquidity, which he said surpassed regional peers Thailand and Singapore, VOV added. Vietnam's financial markets are small in comparison with regional peers. As of Thursday's close, the main benchmark stock index had a market valuation of around $245 billion, compared to around $455 billion for the main Thai index and around $490 billion for Singapore's STI Index, LSEG data showed. The CCP will act as an intermediary between buyers and sellers in the equity market, ensuring trades are honoured even if one party defaults. The country has already introduced other measures, such as a new transaction settlement system and the removal of a requirement for overseas investors to fully pre-fund equity trades, to address obstacles to its potential reclassification. Foreign investors have increased purchases of Vietnamese stocks following the announcement of a trade agreement between the United States and Vietnam. The benchmark VN-Index has risen 7.22% so far this month. FTSE Russell is set to release a review in September. If Vietnam secures the upgrade to secondary emerging market status, the reclassification process could take six to 12 months, consistent with the agency's procedural guidelines. Vietnam had previously targeted 2025 for achieving the upgrade.
VIETNAM TARGETING 8.3%-8.5% GDP GROWTH THIS YEAR, PM SAYS
Reuters News – 16 July 2025
The Vietnamese government will aim to raise its gross domestic product by 8.3% to 8.5% for this year, Prime Minister Pham Minh Chinh said on Wednesday, despite challenges. The target, which compares with growth of 7.09% last year, will "create a firm foundation for double-digit growth in the 2026-2030 period," Chinh said at a meeting in Hanoi, according to a government statement. Lawmakers in the country industrial hub had earlier approved a GDP growth target of at least 8% for this year. Chinh said Vietnam will need to renew its traditional growth drivers such as domestic consumption, exports and investment, while adopting new drivers, including green growth and the digital economy, according to the statement. However, Vietnam is still facing numerous challenges, he said, citing conflicts, geopolitical competition, trade tensions, supply chain disruptions and climate change. Chinh's statement came hours after U.S. President Donald Trump said that a trade agreement with Vietnam was nearly complete. Trump said early this month that Vietnamese goods would face a 20% tariff, with trans-shipments from third countries through Vietnam also facing a 40% levy. The rates are lower than the 46% he threatened in April. Vietnam's GDP in the second quarter accelerated to 7.96% year-on-year, from 6.93% in the first quarter.
VIETNAM'S PUBLIC SECURITY MINISTRY TAKES STAKE IN INTERNET FIRM FPT TELECOM
Reuters News – 16 July 2025
A majority stake in Vietnam's FPT Telecom, one of the country's largest internet providers, has been transferred to the Ministry of Public Security from a staterun investment corporation in an effort to boost national cybersecurity, the ministry said on Wednesday. Vietnam's State Capital Investment Corporation previously held 50.17% of FPT Telecom, while FPT Corp, Vietnam's largest private tech company, had a 45.66% stake but retained control of the unit, according to FPT Telecom's financial statements for last year. The transfer is aimed at strengthening the ministry's capability to protect national security and ensure network and information security, the ministry said in a statement. It did not elaborate whether the ministry would take effective control of FPT Telecom. Wednesday's statement confirmed a Reuters report in April about the possible transfer. The ministry, which oversees the police, has become increasingly involved in Vietnam's internet and telecoms sector. It took control of the country's third-largest telecoms operator, MobiFone, last year and also spearheaded a tightening of data protection rules that has raised concerns among foreign tech firms. Shares in FPT Corp rose by 0.24% on Wednesday morning, while shares in FPT Telecom were also up slightly. In addition to providing internet services, FPT Telecom is involved in the development of undersea fibre-optic cables, which Vietnam considers a national priority as most of its existing cables are ageing and prone to accidents.