Vietnam Economic News: 4.10 - 11.10.2025
Summary of Vietnam Economic News: 4.10 - 11.10.2025
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Summary of Vietnam Economic News: 4.10 - 11.10.2025 ---
VIETNAM'S FTSE UPGRADE TO SPUR FURTHER MARKET GROWTH
Dow Jones Newswires – 8 October 2025
Vietnam's upgrade to emerging market status from frontier market by FTSE Russell will likely accelerate its capital market transformation, says Dragon Capital's Minh Dang in a note. The market is poised for rapid growth, underpinned by a more-than $40 billion IPO pipeline over the next two years. The head of research expects corporate earnings to rise 21% in 2025 and 17% in 2026, driven by high GDP growth. "What is even more significant is that Vietnam does not see this as the final destination," he adds. Dragon Capital notes that the government is expected to review foreign ownership rules, develop the foreign exchange market with hedging instruments, and enhance clearing and settlement infrastructure as it targets FTSE advanced emerging markets and MSCI emerging markets status by 2030.
HONDA'S GRIP ON VIETNAM MOTORBIKE MARKET LOOKS SHAKY ON EV SWITCH
Reuters News – 8 October 2025
Honda's dominance of Vietnam's motorbike market is under threat as Hanoi pushes for a rapid switch to electric vehicles in a boost to local EV maker VinFast, according to industry data and the findings of a consumer survey. Vietnam's Prime Minister Pham Minh Chinh issued a directive in July this year stating that 12 months after the detective was issued, fossil-fuel-powered motorbikes will be banned from the centre of the capital Hanoi, with the scope of the ban expanding further from 2028. Honda and other motorbike makers have written to authorities criticising the changes as being too fast. The Japanese company's sales in Vietnam fell by nearly 22% in August from July, a 13% drop on the year, after the government's ban was announced, industry data showed. Partly in response to the government's policies, residents of Hanoi and Ho Chi Minh City, Vietnam's two largest cities, plan to choose an electric model for their next motorbike purchase, according to a survey conducted in September by market research firm Asia Plus Inc. The Vietnamese ministry responsible for transport did not reply to a request for comment but the government has said the new measures were needed to address air pollution in Hanoi, which at times tops the list of the world's most polluted cities.
HANOI FLOODED AGAIN AS STORM SEASON BRINGS MORE RAIN TO VIETNAM'S NORTH
Reuters News – 7 October 2025
Torrential rains triggered by Typhoon Matmo flooded parts of Hanoi on Tuesday, the latest in a series of deluges that have inundated the Vietnamese capital over the past month as a run of storms swept across the country's northern regions. Heavy downpours flooded major roads, leaving motorbikes and cars stranded and forcing residents to wade through calf-deep water. Inner-city districts have been particularly affected, with drainage struggling to handle the volume of rain. "It's a loop - rains come, streets flood and people desperately try to get by," said Nguyen Ngoc Long, a Hanoi resident. "I fear this will soon become a norm for us." Several schools in the capital closed or shifted to online teaching, while several flights from and to Noi Bai International Airport have been delayed or rescheduled. Last week, there was severe flooding in Hanoi due to Typhoon Bualoi, which killed at least 51 people in Vietnam and caused approximately $600 million of damage. Many families had just finished cleaning up mud and debris from Bualoi before Matmo brought another wave of heavy rains. The weather agency has forecast rain and thunderstorms in Hanoi throughout Tuesday morning, warning of potential floods in low-lying areas, and said that up to three more storm systems were expected to hit the country before the end of 2025.
VIETNAM'S ECONOMY ACCELERATES DESPITE DIP IN US EXPORTS, FOOTWEAR DROP
Reuters News – 6 October 2025
Vietnam's economy accelerated in the third quarter, despite a 20% U.S. tariff in force since August 7 that is slowing Vietnamese exports to the United States, especially of footwear and textiles, government data showed on Monday. Gross domestic product in the nation rose 8.23% in the July-September period from a year earlier, accelerating from an upwardly revised 8.19% in the second quarter. The acceleration supports the Vietnamese government's target of 8.3%-8.5% expansion this year, but appears at odds with forecasts from international organisations. The World Bank projects 6.6% growth this year, while the International Monetary Fund estimates 6.5%. Growth was driven by foreign investment and rising exports, which continued to increase in the third quarter from a year earlier despite U.S. tariffs that took effect in early August. However, monthly data showed a slowdown, with September exports down 1.7% from August. Shipments to the United States, Vietnam's main market, fell 1.4% compared to August, marking the second consecutive monthly drop, according to data from Vietnam's statistics agency. Among industrial sectors that saw a drop in exports to the U.S., footwear was the hardest hit, recording a 27% drop in September from August, data from the customs department showed. Meanwhile, Vietnam's stock market rose 2% on Monday. At the same time, the country’s growth was driven by a booming tourism sector, with foreign arrivals to the country in the first nine months of this year up 21.5% compared to the same period in 2024, for a total of 15.4 million. Retail sales increased 11.3%, while consumer prices in September rose 3.38% from a year earlier, below a target of 4.5% to 5.0% this year.