Vietnam Economic News: 19.7 – 26.7.2025
Summary of Vietnam Economic News: 19.7 - 26.7.2025
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Summary of Vietnam Economic News: 19.7 - 26.7.2025 ---
STANDARD CHARTERED REVISES DOWN VIETNAM 2025 GDP GROWTH FORECAST TO 6.1%
Reuters News – 25 July 2025
Standard Chartered has revised down its forecast for Vietnam's gross domestic product growth this year to 6.1% from 6.7%. The Asian Development Bank (ADB) on Wednesday also revised down its Vietnam GDP growth projection to 6.3% in 2025 and 6% in 2026, respectively. The forecasts by Standard Chartered and ADB are much lower than the target of "at least 8%" set by the National Assembly, the country's legislature. The bank also revised its 2025 inflation forecast to 3.5%, from 3.8%. The upward reversal in inflation has stalled in recent months, with headline inflation staying below 4% year-on-year for the 11th consecutive month in June. "This trend may reduce the scope for further monetary easing and could prompt policymakers to maintain a more neutral stance," the bank noted. However, demand-driven inflation risks remain. The continued upward momentum in prices and ongoing currency weakness may limit the space for rate cuts. Standard Chartered expects the refinancing rate to remain unchanged for the rest of 2025.
VINFAST INDONESIA TO EXPAND DEALERSHIP NETWORK TO 85 SHOWROOMS NATIONWIDE
Dow Jones Newswires – 25 July 2025
VinFast, the Vietnamese Nasdaq-listed EV manufacturer, has officially signed agreements with 20 new dealership partners during the Gaikindo Indonesia International Auto Show (GIIAS) 2025. These agreements will bring VinFast closer to its goal of operating 100 dealership showrooms this year. This marks a strategic advancement for VinFast in its journey to conquer the Indonesian market and underscores its commitment to delivering superior products and services to consumers across the archipelago. According to the signed dealer agreements and Memoranda of Understanding, the 20 new dealerships are expected to operate a total of 38 VinFast showrooms, which will progressively become operational from the time of signing until the end of 2026. Meanwhile, existing dealerships will open an additional 23 showrooms, bringing the total number of dealerships in VinFast's retail network in Indonesia to 34 dealerships and expected 85 showrooms. The strategic collaboration with these trusted partners is expected to significantly accelerate VinFast's expansion, swiftly establishing a comprehensive distribution and service network across Indonesia's key regions, expanding VinFast's presence to 19 provinces and 41 cities in Indonesia. This move aims to ensure VinFast's smart EVs are readily accessible to a broad spectrum of Indonesian consumers, while simultaneously reinforcing an internationalstandard after-sales service system in pivotal population centres.
VIETNAM TO BUY TWO LOCKHEED MARTIN HELICOPTERS
Reuters News – 24 July 2025
Vietnam's police ministry has agreed to buy two Lockheed Martin helicopters, in what would be a key security deal since Washington lifted an arms embargo on the country a decade ago. The deal would come after the country's ministry of public security held protracted talks since at least 2022 with multiple U.S. defence companies to acquire helicopters. Lockheed Martin is also negotiating with Vietnam's defence ministry the sale of C-130 military transport planes, multiple officials have said. The country, which relies heavily on Russian weapons, has been looking for years to diversify its arsenal. It is also currently negotiating with the Trump administration key elements of a tariff deal that is crucial to maintain access to its largest export market. Vietnamese pilots have already been training with Lockheed Martin's Sikorsky helicopters, noting the deal was worth more than $100 million and could include more choppers at a later stage. Since an arms embargo on Vietnam was lifted in 2016, U.S. security deals with its former foe have been limited to coastguard ships and trainer aircraft, which could lead to the procurement of military planes. Vietnam's parliament approved in June 2022 the establishment of a mobile police unit to tackle crime, terrorism and riots, which would need helicopters to operate, according to the government and the text of the 2022 legislation.
FITCH AFFIRMS VINHOMES JOINT STOCK COMPANY AT 'BB- '/STABLE, WITHDRAWS RATINGS
Dow Jones Newswires – 24 July 2025
Fitch Ratings has affirmed Vietnam-based Vinhomes Joint Stock Company's Long-Term Issuer Default Rating (IDR) and senior unsecured rating at 'BB-'. The Outlook on the Long-Term IDR is Stable. Fitch has simultaneously withdrawn all ratings on Vinhomes. Vinhomes' rating is constrained by the consolidated profile of its parent, Vingroup Joint Stock Company, which Fitch assesses to have a weaker credit profile than Vinhomes. Based on Fitch’s view of the 'Porous' access and control, and 'Porous' legal ring-fencing under Fitch's Parent and Subsidiary Linkage (PSL) Rating Criteria, Vinhomes can be rated up to two notches above the parent's consolidated profile, subject to Vinhomes' own Standalone Credit Profile (SCP). According to Fitch, Vinhomes' SCP was assessed at 'bb', reflecting its leading market position in Vietnam, with large, contracted sales and solid cash flows from residential property development and related activities. The SCP is also supported by Vinhomes' low leverage, with net debt/net property asset ratio likely to be maintained at well below 30% in the medium term. Fitch said that the affirmation reflects its expectations that the parent's consolidated leverage and liquidity will remain adequate over the next few years. On a consolidated basis, Fitch expects a sustained cash flow burn at its automotive manufacturing business, VinFast, which will be largely counterbalanced by Vinhomes' solid cashflows. Fitch expects VinFast to be funded independently and to raise its own capital for expansion.