Vietnam Economic News: 11.10 - 18.10.2025
Summary of Vietnam Economic News: 11.10 - 18.10.2025
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Summary of Vietnam Economic News: 11.10 - 18.10.2025 ---
VIETNAM PARLIAMENT TO WORK ON GOVERNMENT PERSONNEL ISSUES NEXT WEEK
Reuters News – 17 October 2025
Vietnam's National Assembly, the country's lawmaking body, will work on key personnel issues by the end of next week, including voting on key government and state appointments, an assembly official said on Friday. The assembly, which is set to begin its final meeting of the year on Monday, will also vote to pass 49 bills and four resolutions. The meeting will last until December 11. "Preparations are underway and the nominating and voting process will be conducted in a transparent manner," Ta Thi Yen, Deputy Head of the parliament's Delegation Work Committee, said at a press conference in Hanoi. Under Vietnam's constitution, key positions that are subject to a vote by the National Assembly include the state president, the prime minister and the parliamentary chair.
VIETNAM TO CUT INCOME TAX TO SPUR CONSUMPTION
Reuters News – 17 October 2025
Vietnam will raise the tax-free income threshold and increase deductions for dependants in a move to increase consumption and lift economic growth, state media reported on Friday citing a parliamentary resolution and a government minister. The changes will reduce the government's income-tax revenue by 21 trillion dong ($800 million) a year, the Cong Thuong newspaper cited deputy finance minister Nguyen Duc Chi as saying. Under the changes adopted by lawmakers, the tax-free threshold will be raised to 15.5 million dong per month from 11 million dong, and the deduction for each dependant will be raised to 6.2 million dong from 4.4 million dong.
VIETNAM'S VPBANK SECURITIES EXPECTS STRONG DEMAND FOR ITS IPO
Reuters News – 16 October 2025
VPBank Securities, a brokerage owned by Vietnam Prosperity Bank, expects its initial public offering to be oversubscribed, the company's chief executive said on Thursday, citing strong interest from institutional investors. The firm is targeting 12.7 trillion dong ($481 million) in what is anticipated to be Vietnam's largest IPO this year. Institutional investors have subscribed to shares worth around 6 trillion dong ($227.82 million)," according to Vu Huu Dien, CEO of VPBank Securities. Dien named Dragon Capital, a prominent Vietnamese asset manager, and domestic brokerage VIX Securities among the notable participants, adding that more than 50 international investors have expressed interest. The offering, which runs from October 10 to October 31, includes 375 million shares priced at 33,900 dong each. A listing on the Ho Chi Minh City Stock Exchange is planned for December, according to Dien.
Vietnam's IPO market has gained momentum, driven by a share rally, regulatory changes, increased credit activity, and an upgrade to emerging market status by index provider FTSE Russell, despite ongoing net selling by foreign investors. Last month, Techcom Securities raised $410 million in its IPO, achieving a valuation of $4 billion. Meanwhile, VPS, Vietnam's largest brokerage by market share, is also pursuing an IPO.
VIETNAM COMMUNIST PARTY TARGETS FASTER GROWTH FOR NEXT FIVE YEARS AMID CHALLENGES
Reuters News – 15 October 2025
Vietnam Communist Party is targeting faster annual economic growth over the next five years, despite potentially "severe" economic challenges, according to a draft document prepared for its upcoming congress. The party expects the country's economy to grow by at least 10% a year over the 2026-2030 period, according to the document released on Wednesday. Vietnam targeted 6.5% to 7.0% annual growth over the 2021-2025 period. The economy expanded at an annual average of about 5.7% in the 2021-2024 period although growth is on track to be above 8% this year. The draft document sets the stage for discussions at the party congress, which will define the country's main strategies and policies for the coming five years. The congress, held every five years, is expected to take place after the parliament ends a legislative session in mid-December, but a precise date has still to be announced. Officials are also aiming to lift gross domestic product per capita to $8,500 by 2030, according to the document posted on the party's website, up from a target of $4,700 to $5,000 for the 2021-2025 period. It reached $4,700 last year. "Over the next five years, our country will face several difficulties and challenges, with some aspects expected to be harsher and more severe than the previous (five-year) period," the document said. The export-reliant country faces 20% tariffs on its exports to the United States, its main market. Among other economic challenges, the party said Vietnam risked falling behind on technology, was experiencing "faster than forecast" population aging and needed to confront risks from climate change, natural disasters and corruption. The party aims to develop a new growth model in which the private economy is the "driving force" with the state taking the "leading role", the document said. To boost growth and offset possibly declining revenues from trade, it also plans to increase public spending on infrastructure and other projects, with a budget deficit of about 5% of GDP in the next five-year period, up from a range of 3.1% to 3.2% in 2021-2025. Economists have said it has ample space to do so thanks to a public debt below 35% of GDP last year. The document said the global situation was rapidly changing "in an unprecedentedly complex direction" with competition between major powers increasing. In a gloomy warning, it said "the risk of war is not excluded" for Vietnam.