Vietnam Economic News: 27.9 - 4.10.2025
Summary of Vietnam Economic News: 27.9 - 4.10.2025
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Summary of Vietnam Economic News: 27.9 - 4.10.2025 ---
VIETNAM ECONOMY GROWS 8.22% IN THIRD QUARTER, DESPITE US TARIFFS
Reuters News – 4 October 2025
Vietnam's government said on Sunday its economy grew at an annual rate of 8.22% in the third quarter, when a 20% tariff on U.S. imports of its products took effect, accelerating from growth of 7.96% in the second quarter. "It is the highest quarterly growth since 2011, excluding the surge in 2022 due to recovery post COVID-19 pandemic," Finance Minister Nguyen Van Thang said in a government statement. Vietnam's total trade turnover, which includes imports and exports, surpassed $680 billion in the first nine months of this year, up 17% from a year earlier. The country posted a trade surplus of $16.8 billion during the same period, the government said. Sunday's economic release did not include comprehensive trade data, a key variable as a 20% U.S. import tariff on most Vietnamese goods imposed by the Trump administration took effect on August 7, midway through the quarter. Prime Minister Pham Minh Chinh said last month Vietnam expected exports to grow more than 12% this year. But a United Nations Development Programme report said U.S. duties risked slashing by up to one-fifth of Vietnam's exports to the United States, making it the hardest-hit country in Southeast Asia. Vietnam would continue trade negotiations with the United States, the government and its trade ministry have said. The third quarter was also marked by severe weather disruptions, with eight storms hitting the country, including Typhoon Bualoi, which caused an estimated 16.5 trillion dong ($625.5 million) in damage. Over the first nine months of the year, GDP grew 7.84% compared to the same period in 2024, according to the government. Vietnam is targeting gross domestic product growth of 8.3% to 8.5% this year. That is faster than last year's 7.09% growth, and higher than the World Bank's forecast of 6.6% and the International Monetary Fund's estimate of 6.5% growth. The country's 2025 growth faces headwinds from external economic pressures and slow-moving reforms, the government statement said. It also warned of escalating natural disasters that are expected to worsen in the final months of the year. Consumer prices rose 3.27% year-onyear in the January–September period, with September inflation at 3.38%, it said. ($1 = 26,380 dong)
VIETNAM CENTRAL BANK SAYS WILL PRIORITISE GROWTH, SEES BIG CREDIT EXPANSION
Reuters News – 3 October 2025
Vietnam's central bank expects credit to increase by 19% to 20% this year and will prioritise economic growth while maintaining stability in the face of global uncertainties, senior officials said on Friday. Deputy Governor Pham Thanh Ha also said at a press conference that commercial banks' lending interest rates were on a downward trend and called for further cuts. "The global economic and political situation has so far this year evolved in an unpredictable manner, with market concerns about the U.S. tariff policy, the risks of a global trade war and geopolitical conflicts," Ha said. Pham Chi Quang, who heads the monetary policy department, said the State Bank of Vietnam would focus on stopping non-performing loans from rising, and said lending to risky sectors would be tightly controlled. Vietnam is targeting gross domestic product growth of 8.3%-8.5% this year, faster than the 7.09% rate last year. Credit growth is a key driver of the economy. Last month, prominent academics warned its lawmakers that breakneck credit expansion may fuel asset price bubbles. The central bank said bank lending has risen 13.37% as of September 29 compared to the end of last year.
VIETNAM ESTIMATES PROPERTY DAMAGE FROM TYPHOON BUALOI AT $303 MLN
Reuters News – 1 October 2025
Vietnam's government said Typhoon Bualoi caused an estimated 8 trillion dong ($303 million) of property damage this week, saying in a preliminary assessment on Wednesday that nearly 170,000 houses were damaged or inundated by flooding. Bualoi made landfall on Monday in northern central Vietnam, bringing huge sea swells, strong winds and heavy rains that have killed at least 29 people and left 22 others missing, according to the disaster management agency report. The typhoon severely damaged roads, schools, and offices, and caused power grid failures that left tens of thousands of families without electricity, the report said. More than 34,000 hectares of rice and other crops were destroyed, it said. The report did not mention any major damage to industrial properties. Vietnam is a regional manufacturing hub, and large factories in or near the typhoon's path included some owned by Foxconn, Formosa Plastics, Luxshare and Vinfast. The typhoon triggered floods across Vietnam's north, and disrupted flights and train services with the capital, Hanoi, where schools were closed and many homes inundated. With a long coastline facing the South China Sea, Vietnam is prone to typhoons that are often deadly. Last year, Typhoon Yagi killed around 300 people and caused damages estimated at $3.3 billion across northern Vietnam.
VPBANK SECURITIES AIMS TO RAISE $481 MLN IN IPO THIS MONTH
Reuters News – 1 October 2025
VPBank Securities, a stock brokerage firm owned by Vietnam Prosperity Bank, aims to raise 12.7 trillion dong ($481 million) in an initial public offering later this month, the bank said on Wednesday. VPBank Securities will offer 375 million shares, or a 25% stake, at the IPO, it said in a statement. The offer will run from October 10 to October 31, with shares priced at 33,900 dong each. The share offer is the latest in a series of IPOs in Vietnam as interest is fuelled by a share rally, regulatory changes and the prospect of a investment status upgrade by a global index provider. VPS Securities, the country's largest securities firm by market share, last week said it planned to offer 202.3 million shares in an IPO, while brokerage Techcom Securities a week earlier raised $410 million in an IPO.