Vietnam Economic News: 8.11 - 15.11.2025
Summary of Vietnam Economic News: 8.11 - 15.11.2025
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Summary of Vietnam Economic News: 8.11 - 15.11.2025 ---
VIETNAM'S PLAN TO EASE HIGH-TECH SUBSIDIES WORRIES SOUTH KOREAN INVESTORS
Reuters News – 13November 2025
South Korean companies, including Samsung Electronics, are worried about Vietnam's plan to reform incentives for the high-tech sector, warning it could lead to higher costs for foreign investors and potentially undermine new investment, Korean officials have said. The warning comes amid continued uncertainty about Vietnam's trade relations with the U.S., its biggest export market. In addition to a 20% duty on imports from Vietnam applied since August, the White House has threatened 40% duties on goods relying on foreign components and possible tariffs on electronics, a sector dominated in Vietnam by Korean manufacturers. For decades, South Korea has been one of the biggest investors in Vietnam, with total investment worth $92 billion at the end of 2024, roughly onefifth of Vietnam's gross domestic product. Samsung, the largest investor, accounts for more than one-tenth of Vietnam's exports, and makes 60% of the phones it sells globally in Vietnam. In an address to Vietnam's Prime Minister Pham Minh Chinh at a public event on Monday, the head of the Korean Chamber of Commerce (Kocham) in Vietnam raised concerns about changes to a high-tech law which "may substantially affect the investment incentives previously granted."
The revised law scraps existing provisions granting some high-tech companies the "highest incentives" on taxes, duties and land, according to a draft under discussion in the Vietnamese National Assembly. It is scheduled for adoption in December. For years, Samsung incurred effective taxes as low as 5% in the Southeast Asian country, but Vietnam last year introduced the 15% Global Minimum Tax on large multinationals, an initiative shepherded by the Organisation for Economic Cooperation and Development (OECD), undercutting earlier low-tax arrangements. Hanoi has pledged compensation for top investors, but companies have repeatedly voiced concerns about access to it.
VIETNAM TO RAISE MINIMUM WAGE BY 7% IN NEW YEAR
Reuters News – 13 November 2025
Vietnam will raise the minimum wage for contracted workers by over 7% from next year in a move that could potentially increase labour costs for companies. The new minimum wage will range from 3.7 million dong to 5.31 million dong ($141-$202) per month, depending on the region, according to a document signed by Deputy Prime Minister Ho Duc Phoc on Monday. The decision will take effect on January 1, 2026. The minimum wage is the basis for employers to negotiate salaries with their workers, and is applicable for people working under employment contracts, according to the document. The country, a regional manufacturing hub with cheap labour costs that attract foreign investors, last raised its minimum wage a year and a half ago. The minimum wage per hour will increase to 17,800 dong-25,500 dong.
VPBANK SECURITIES RAISES $480 MILLION IN VIETNAM'S LARGEST IPO OF 2025
Reuters News – 12 November 2025
VPBank Securities, a brokerage owned by Vietnam Prosperity Bank, said on Wednesday it raised approximately 12.7 trillion dong ($482 million) in its initial public offering, making it the largest in Vietnam this year. The IPO attracted strong demand, with VPBank saying there were 390.5 million bids for around 373 million shares on offer. The brokerage's shares will start trading on the Ho Chi Minh Stock Exchange in December. Vietnam's IPO market has experienced a surge in activity, driven by a stock rally, regulatory reforms, increased credit activity and an upgrade to emerging market status by index provider FTSE Russell. Earlier this year, Techcom Securities raised $410 million through its IPO, achieving a valuation of $4 billion. In addition, VPS, the country's largest brokerage by market share, is also pursuing IPO plans.
VIETNAM RISES FROM A CONSUMER MARKET TO A GLOBAL TOUR DESTINATION
Dow Jones Newswires German – 12 November 2025
The two explosive concert nights of GDRAGON, known as "the King of K-pop," at Ocean City affirmed the appeal of a top international star and signaled Vietnam's emergence as a new stop on the global music map. Beyond the dazzling lights, the event reflects a long-term vision and strategic planning. Pioneering corporations like Vingroup are helping shape a new era in Vietnam's cultural industry and music tourism, raising both expectations and standards for future world tour experiences in the country. The success of this first world tour marks an important milestone, affirming the capacity of Vietnamese enterprises to host international-level events and raising performance standards across the domestic industry.
VIETNAM EXPECTS TO SIGN TRADE DEAL WITH U.S. SOON
Reuters News – 11 November 2025
Vietnam expects to sign a "reciprocal trade agreement" with the United States soon, Deputy Prime Minister Bui Thanh Son said on Wednesday, as a new round of negotiations takes place in Washington DC. "Only trust can lead to cooperation, and only cooperation can lead to prosperity and Vietnam always seeks to boost cooperation with the United States," Son said at a U.S.-Vietnam business summit in Hanoi. A Vietnamese delegation led by Trade Minister Nguyen Hong Dien is in Washington this week for a new round of talks with U.S. officials to work on finalising the trade agreement. The negotiations would focus on identifying Vietnamese items that could be exempted from U.S. tariffs, such as coffee, and on the scope of the preferential access to the Vietnamese market that Hanoi has pledged for U.S. products, such as cars and farm goods.