Vietnam Economic News: 9.8 – 16.8.2025
Summary of Vietnam Economic News: 9.8 - 16.8.2025
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Summary of Vietnam Economic News: 9.8 - 16.8.2025 ---
VINFAST FOUNDER TO INJECT ANOTHER $1.5 BILLION IN EXCHANGE FOR R&D ASSETS
Reuters News – 14 August 2025
VinFast's founder Pham Nhat Vuong has agreed to buy the EV maker's research and development arm for $1.52 billion, his latest cash injection into the loss-making Vietnamese company as it strives to break even by the end of 2026. The deal will involve Novatech Research and Development JSC, a Vietnam-incorporated entity, being carved out of VinFast Trading and Production JSC (VFTP), its domestic manufacturing arm, VinFast said in a filing to the U.S. Securities and Exchange Commission. Novatech will hold investment costs tied to completed R&D projects, while VFTP will continue to lead EV production and future research in Vietnam. VinFast, which debuted on the Nasdaq in 2023, has faced challenges including weak consumer demand and stiff competition. It made a net loss of $712.4 million for the first quarter, although revenue jumped 150% to $656.5 million. VinFast's shares were up 1.4% to $3.59 in pre-market trade. Since its launch in 2017, the company has relied heavily on support from Vuong, who holds about 98% of shares in VinFast and its parent company Vingroup, where he serves as chairman. The transfer of shares in Novatech to Vuong, valued at nearly 40 trillion dong ($1.52 billion), comprises a fair value assessment of 17.25 trillion dong plus a premium. Intellectual property linked to Novatech's assets will be leased back to VinFast for manufacturing purposes as needed. VinFast has said it has completed the development of its first generation of EVs. Research and development costs were $81.2 million in the first quarter of 2025, down 22.3% year-on-year. The EV maker has set a delivery target of 200,000 cars for 2025, more than double its deliveries in 2024. Most of VinFast's deliveries are in the Vietnamese market.
VIETNAM FOOD ASSOCIATION URGES TRADE MINISTRY TO CHALLENGE PHILIPPINE RICE IMPORT SUSPENSION
Reuters News – 13 August 2025
The Vietnam Food Association has asked the country's trade ministry to challenge a move by the Philippines to suspend rice imports for two months. The Philippines, Vietnam's biggest rice buyer, said last week that it would suspend rice imports for 60 days starting from September 1 in an effort to protect local farmers impacted by falling prices during the harvest season. "The Philippines is Vietnam's largest rice export market and the suspension would have significant impacts on rice production in Vietnam," according to a trader. Vietnam exported 2.44 million metric tons of rice to the Philippines in the first seven months of this year, accounting for 44.3% of its total rice shipments over the period, according to official customs data. Last year, the Philippine market accounted for 46.7% of Vietnam's total rice exports, with shipments in September and October higher than monthly average. Vietnam early this year signed a memorandum of understanding on rice trade with the Philippines, where rice production is often prone to flooding and typhoon risks.
VINPEARL SIGNS MOU WITH THREE LEADING SOUTH KOREAN TOURISM COMPANIES
Reuters News – 12 August 2025
Vietnam Vinpearl Joint Stock Company has officially signed a Memorandum of Understanding (MoU) with three of South Korea's premier travel enterprises: Hanatour, Marketing Highlands, and HKG Co., Ltd. (formerly Hank Golf). This landmark agreement marks a significant step in Vinpearl's strategy to penetrate the key South Korean market, boosting both the company's profile and Vietnam's reputation as a preferred global destination for South Korean travellers. The signing ceremony took place at the Vietnam - South Korea Business Forum, attended by General Secretary To Lam, South Korean Prime Minister Kim Min Seok, and other high-ranking officials from both nations. During the event, Vinpearl and its partners, South Korean travel leaders Hanatour, Marketing Highlands, and HKG Co., Ltd., signed a strategic MoU to intensify their promotional activities for both Vinpearl's offerings and Vietnamese tourism. The companies will collaborate closely to achieve their shared goal of attracting five million South Korean visitors by 2025, introducing Vietnam as a prime destination and elevating Vinpearl's appeal as the preferred choice for South Korean tourists. Simultaneously, Vinpearl and its partners will ramp up their marketing efforts and broaden their distribution networks in South Korea. This will ensure a steady and reliable flow of customers, while also strengthening the long-term relationship between the companies. The partnership will also extend Vinpearl's premium product ecosystem and introduce new destinations to over 7,500 retail travel agencies in South Korea, giving more than 46,000 golf members the chance to play and compete at Vinpearl's internationalstandard courses throughout Vietnam. The agreement between Vinpearl and its three South Korean partners not only opens a new chapter in their strategic cooperation but also marks a significant milestone in Vinpearl's journey toward deeper international integration. This move further positions Vietnam as a premier resort hub in the Asia-Pacific region and cultivates a strong, cooperative relationship between Vietnam and South Korea in a new era of development.
SCG CHEMICALS' VIETNAM UNIT TO RESUME OPERATIONS LATE THIS MONTH
Reuters News – 12 August 2025
Vietnam's Long Son Petrochemicals, a unit of Thailand's SCG Chemicals, will resume its operations late this month following a suspension from November last year, SCG said on Tuesday. The decision to resume operations at the $5.4-billion petrochemical complex in southern Vietnam came after a decline in crude oil prices that has improved its operational feasibility. In November, SCG, Thailand's largest industrial conglomerate and the owner of SCG Chemicals, shut the complex due to low margins. The company said a $500-million project to enhance the plant's competitiveness by adopting ethane as feedstock is progressing as planned, with completion expected in 2027. Long Son Petrochemicals has annual capacity to produce 500,000 tons of high-density polyethylene, 500,000 tons of linear low-density polyethylene and 400,000 tons of polypropylene, using mostly naphtha and propane imported from the Middle East as raw materials.