Vietnam Economic News: 2.8 – 9.8.2025
Summary of Vietnam Economic News: 2.8 - 9.8.2025
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Summary of Vietnam Economic News: 2.8 - 9.8.2025 ---
RUSSIA SHIPS FIRST NAPHTHA CARGO TO VIETNAM
Reuters News – 6 August 2025
Russia has shipped its first naphtha cargo to Vietnam, as it looks for new buyers to support sales hit by Western sanctions, data from traders and shipbrokers showed. According to LSEG and Vortexa shipping data, the Malta-flagged tanker Northernlight loaded around 60,000 metric tons of naphtha in the Russian Baltic port of Vysotsk on June, 23 and delivered its cargo at Van Phong terminal in Vietnam's Khanh Hoa province. Nguyen Tran Trung, CEO of Van Phong terminal, on Friday confirmed the arrival of the cargo, and said owner of the cargo has since shipped the naphtha out of Vietnam. "We are operating as a customs warehouse and the cargo is not imported into Vietnam," according to Trung. He declined to provide the next destination of the cargo or the name of the owner of the cargo. The tanker discharged up to 27,000 tons of naphtha at Khanh Hoa, one of the sources said, adding that the terminal mostly consists of bonded storage tanks. According to LSEG and Vortexa data, after the Vietnam stop the Northernlight is heading to Chinese port of Dalian to discharge the rest of its cargo. At least 15,000 tons of the petrochemical feedstock is heading there, one shipbroking source said. Since the European Union's full embargo on Russian oil products went into effect in February 2023, countries in the Middle East and Asia have become the main destinations for Russia's naphtha supplies. Naphtha is a primary feedstock in the petrochemical industry for producing olefins and aromatics, which are then used to manufacture a wide array of products, including plastics, synthetics, and various other chemicals, and also used for gasoline blending. Russia doesn’t supply oil to Vietnam, despite active cooperation in the oil industry between state companies. The only test supply was back in 2015, when a cargo of ESPO was shipped to Dung Quat refinery.
VIETNAM INFLATION UNDER CONTROL BUT PRESSURE BUILDING
Reuters News – 7 August 2025
Vietnam's inflation remains under control but upward price pressures are building up, the governor of the country's central bank said on Thursday. "The adjustments in prices for electricity, medical services and housing have been putting pressure on input costs and pushing core inflation up continuously in recent months," Nguyen Thi Hong told a cabinet meeting, according to a government statement. The country manufacturing powerhouse aims to keep inflation in the range of 4.5%-5.0% this year. Low inflation will give the central bank room to boost lending to meet this year's economic growth target of at least 8%. "Inflation can emerge very quickly, and once it rises, it is very difficult to tame," Hong warned. "This is the reason why (the central bank) needs to manage the monetary policies in a proactive and prudent manner," she added. Consumer prices in July rose 3.19% from a year earlier, according to government data released on Wednesday. Core inflation in the month rose 3.3% from a year earlier. Hong said the central bank is closely monitoring the flows of money into the local real estate and stock markets, saying that they have been stronger recently but are in line with government efforts to tackle difficulties faced by the property market.
VIETNAM EXPECTS MORE TALKS WITH US TO FINALISE TRADE DEAL
Reuters News – 7 August 2025
Vietnam will continue talks with the United States to finalise a trade agreement between the two countries, the Southeast Asian country's government said on Thursday, as U.S. President Donald Trump's new tariffs took effect. The agreement reached last month reduces U.S. tariffs on imports from Vietnam to 20%, down from the 46% rate proposed in April. However, goods deemed by Washington to be illegally transshipped via Vietnam will face a higher levy of 40%. Specific details regarding the agreement and transshipment issues have yet to be disclosed. "In the coming time, the two sides will continue to discuss and implement tasks towards finalising the trade agreement," the Vietnamese government said in a statement. Minister of Industry and Trade Nguyen Hong Dien said his ministry had submitted a proposal to the prime minister on adaptation to the new tariff policy. He added that the ministry is developing a comprehensive plan to implement the trade agreement, which is expected to be submitted to the government and related agencies by Friday. Vietnam's exports rose 16% in July from a year earlier to $42.3 billion, official data showed, with imports also rising 17.8% in the period to $40 billion. Exports to the U.S. recorded an annual increase of 26% in July to $14.2 billion, customs data showed. Imports from China increased 30.5% to about $16.7 billion in July.
VIETNAM PM TELLS CENTRAL BANK TO REMOVE CAP ON CREDIT GROWTH FROM 2026
Reuters News – 7 August 2025
Vietnamese Prime Minister Pham Minh Chinh has told the country's central bank to remove a cap on credit growth in the banking system from next year, the government said on Thursday. The central bank should, instead, develop a set of standards for banks to operate in an "efficient and healthy" manner, the government said in a statement. The State Bank of Vietnam has set an annual cap on credit growth in the banking system as a way to control the flow of money into the economy and maintain the system's stability. The cap for this year stands at 16%.