Vietnam Economic News: 26.7 – 2.8.2025
Summary of Vietnam Economic News: 26.7 - 2.8.2025
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Summary of Vietnam Economic News: 26.7 - 2.8.2025 ---
VIETNAM CENTRAL BANK SAYS IT WILL RAISE CAPS ON CREDIT GROWTH FOR LENDERS
Reuters News – 31 July 2025
Vietnam's central bank said on Thursday it will raise the caps on credit growth for banks, as part of the government's efforts to boost growth. The central bank said in a statement banks' lending as of July 28 had risen 9.64% from the end of last year. The central bank had earlier set a credit growth of 16% this year for the entire banking system. It didn't provide details on how much more banks will be able to lend.
ASIAN CENTRAL BANKS MAY CUT RATES FURTHER THAN ANALYSTS EXPECT
Dow Jones Newswires – 1 August 2025
Asian central banks are likely to cut interest rates by more than most analysts expect, as inflation is set to stay low, Shivaan Tandon of Capital Economics says in a note. "We continue to expect activity in Asia's export-oriented manufacturing sectors to struggle in the coming months," he says, noting that July PMI readings in the region were subdued. U.S. tariffs are likely to weaken global growth in the near term and weigh on Asian economies. The drag could be somewhat offset by buyers switching their sourcing to other markets from China. Countries with export baskets that are most similar to China's and have spare production capacity could therefore benefit, he says, with Vietnam standing out.
On the other note, President Trump's new levies are now due to start on Thursday, six days later than previously planned. Here are the planned rates for goods from some key trading partners:
- Brazil: 50%. Trump's executive order on Wednesday attacked Brazil's treatment of U.S. tech companies, among other issues.
- Canada: 35%. Trump raised the levy on Thursday, citing Canadian retaliation and the fentanyl crisis. This rate doesn't apply to goods covered by the U.S.-Mexico-Canada trade agreement. - European Union, Japan and South Korea: 15%, under recently struck deals.
- India: 25%, plus an unspecified penalty for dealings with Russia. New Delhi has vowed to protect its national interests.
- Mexico: 25%. Trump agreed with Mexican President Claudia Sheinbaum to hold this rate for non-USMCA goods for another 90 days while trade talks continue.
- Switzerland: 39%. This rate was among the highest laid out on Thursday. Swiss leaders expressed "deep regret" at the high rate and are still seeking a deal.
- Taiwan: 20%. Taiwan's president vowed to keep negotiating to lower Thursday's unilaterally imposed rate.
- U.K.: 10%, under the first of Trump's outline trade deals.
- Vietnam: 20%, under another previously struck deal.
China is on a different track from most other nations. Its goods face roughly 55% tariffs, including charges that predate Trump's second term. The two sides this week discussed extending a truce that runs through Aug. 12, but haven't yet done so.
VIETNAM RATES HIT NEAR THREE-MONTH PEAK ON HIGHER DEMAND
Reuters News – 31 July 2025
Vietnam rice export rates rose to a near three-month high this week, helped by strong demand, while Indian prices languished near their lowest level in over two years as surplus supplies overshadowed a slight improvement in overseas demand. Vietnam's 5% broken rice was offered at $395-$400 per metric ton on Thursday. The Vietnam Food Association said last week the rice was offered at $381. "We are seeing a rising number of vessels docking at ports in Ho Chi Minh City for rice loading as demand is strengthening," a trader based in Ho Chi Minh City said. The trader added that the summer-autumn harvest in the Mekong Delta, Vietnam's largest rice-growing area, has already peaked.
ANZ RAISES VIETNAM'S 2025 GDP GROWTH FORECAST TO 6.8% FROM 5.5%
Reuters News – 29 July 2025
ANZ on Tuesday raised its forecast for Vietnam's gross domestic product growth this year to 6.8% from 5.5%, and lifted its forecast for inflation to 3.2% from 2.8%. The bank said Vietnam's GDP growth in the second quarter was much stronger than expected, and said the government had stepped up infrastructure spending this year. "The Vietnam-US trade deal announced by President Trump has not been formally confirmed, but markets are comfortable with the proposed tariff rate," ANZ said.
VIETNAM'S STATE UTILITY EVN'S ACCUMULATED LOSSES AT $1.48 BLN BY END-2024
Dow Jones Newswires – 29 July 2025
Vietnam's state utility EVN's accumulated losses stood at 38.68 trillion dong ($1.48 billion) by the end of 2024, despite making a modest profit that year, the government said on Tuesday. The country's key power generator and sole grid operator reported a net profit of 8.24 trillion dong last year, the government said in a statement. The company had, by the end of last year, invested 1.3 trillion in preparatory work for the construction of the country's first nuclear power plant in Ninh Thuan province, it added.