Vietnam Economic News: 31.8 – 6.9.2025
Summary of Vietnam Economic News: 31.8 - 6.9.2025
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Summary of Vietnam Economic News: 31.8 - 6.9.2025 ---
VIETNAM AUG EXPORTS KEEP STRONG, PM WARNS OF MOUNTING INFLATION PRESSURE
Reuters News – 6 September 2025
Vietnam's exports in August rose 14.5% from a year earlier to $43.39 billion, government data showed on Saturday, the first trade figures since a tariff of 20% on shipments to the United States took effect during the month. Imports in the month rose 17.7% from a year earlier to $39.67 billion, result in a trade surplus of $3.72 billion for the month, the National Statistics Office (NSO) said in a report. Vietnam's biggest market, the United States imposed the 20% tariff from August 7, while transshipments from third countries through Vietnam face a levy of 40%. The country’s manufacturing hub reported total trade of $99.1 billion with the United States for the period from January to August, the statistics office said. Vietnam's trade with China stood at $117.9 billion during the same period, it added. Vietnam relies heavily on China for materials and equipment for its industrial production. Global trade tension, along with geopolitical and military conflicts, is affecting production and supply chains, said Prime Minister Pham Minh Chinh. "Growth in domestic consumption, exports and public investment has shown signs of slowing," Chinh told a cabinet meeting in Hanoi, while also warning of mounting pressure on inflation and the exchange rate. Industrial production in August rose 8.9% from a year earlier, while retail sales were up 10.6%, the report said. Consumer prices in August rose 3.24% from a year earlier, the office said. Vietnam is targeting economic growth this year of 8.3% to 8.5%, with a target range of 4.5% to 5.0% for inflation. "This year's growth target is a difficult one, but we must reach it, however difficult it is," Chinh added. For the first eight months of the year, exports rose 14.8% from a year earlier to $305.96 billion, and imports were up 17.9%, at $291.97 billion, translating into a trade surplus of $13.99 billion for the period, the NSO said.
VIETNAM OPEN TO USING SMALL MODULE NUCLEAR REACTORS
Reuters News – 4 September 2025
Vietnam is open to using small module reactors for its planned nuclear power plants, according to a document from the Party's Politburo, the most powerful body of the country. The country, a regional manufacturing hub, is seeking to ramp up its power generation capacity to support its economy, one of the fastest-growing in the world. In the document, which is available online, the Politburo calls for the rapid compilation of "a flexible nuclear power development plan, with small module reactors," and also encourages private companies to develop nuclear power plants. This marks the first time Vietnam has openly said it will consider using small module reactors, which can be manufactured and shipped and installed on site, making them more affordable than building large nuclear power plants. Small module reactors are produced or being developed by several countries, including the United States, Russia and South Korea. In May, Vietnam's top energy firm Petrovietnam signed an information-sharing agreement on nuclear power technology with U.S.-based Westinghouse Electric Company. Vietnam in April said it wanted to raise its total installed power capacity to a range of 183 to 236 gigawatts by 2030, up from more than 80 GW at the end of 2023, by focussing on increasing renewable energy and adding nuclear power to the mix. To meet that capacity target, the country would need to invest $136.3 billion by 2030, according to the government, equivalent to more than a quarter of Vietnam's 2024 gross domestic product. The Politburo said in the document that progress on several power development projects has been slow, while the legal framework for the industry remains weak. "Domestic energy supplies are still reliant on imports, posing the threat of power shortages during a targeted period of double-digit economic growth," it said. Vietnam is aiming for GDP growth of 8.3%-8.5% for 2025 and double-digit growth for the rest of the decade. Earlier this year Vietnam decided to restart development of nuclear power plants that were suspended nearly a decade ago, expecting the first plants with a combined capacity of up to 6.4 GW to be online by 2035. Small module reactors have been deployed in several countries, including the United States, Russia, China, the United Kingdom and Canada. The Vietnamese government has earlier indicated that it would choose Russian and Japanese firms to develop its first nuclear power plants. The Politburo also called for a boost in crude oil and coal production and the removal of regulatory hurdles for offshore wind development.
VIETNAM CELEBRATES INDEPENDENCE DAY WITH HUGE MILITARY PARADE
Reuters News – 2 September 2025
Vietnam celebrated the 80th anniversary of its declaration of independence from colonial rule on Tuesday, with its largest military parade in decades, unprecedented cash handouts and the release of nearly 14,000 prisoners. Tens of thousands of people crowded the streets of the capital Hanoi, most of whom were wearing red shirts and holding Vietnamese flags, in a strong show of nationalism in the country. The parade showcased Vietnam's most advanced military equipment, including thousands of Vietnamese soldiers and military personnel from China, Russia and other countries participated in the celebration. A separate event at sea featured Russian Kilo-class submarines and frigates. "We are unwavering in our commitment to defend the independence, freedom, sovereignty, and territorial integrity of our Fatherland, down to every sacred inch of land," Vietnam's Communist Party chief To Lam said as he opened the parade. National leaders and foreign dignitaries, including top lawmakers from China and Russia, watched the military procession in Ba Dinh Square, where on September 2, 1945, revolutionary leader Ho Chi Minh made his historical declaration of independence. The speech marked the foundation of an independent Vietnam after nearly a century of French colonial rule and a brief Japanese occupation during World War II, but the French did not recognise the new country and fought a decade-long war, which ended with their defeat in 1954.