Vietnam 20240502: Vanguard, Trailblazer, Revelation

Mekong Memo Vietnam Weekly: Business, politics, finance, trade & legal news.

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Headlines:

Leadership Shakeup Sends Shockwaves

Truong My Lan Appeals Bank Fraud Case

E-Commerce Boom: Surging Sales, Taxation

State Coffers Feeling the Squeeze

Energy Demand Soaring, Earnings Rise

Infrastructure Drive Paves Way for Growth

Smart Cities, Sustainable Future

Rising Foreign Investment Magnet

Real Estate Market Gears Up

Rise as Economic Powerhouse Attracts Interest

Global Partnerships: DE, CN, JP, SK

Vietnam's Forgotten Moroccan Heroes

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Leadership Shakeup Sends Shockwaves

The political landscape is in turmoil as National Assembly Chairman Vuong Dinh Hue has resigned due to legal breach allegations and President Vo Van Thuong faces a corruption purge. These departures are showing some deep cracks in Vietnam's ruling structures, fueling internal conflicts and threatening governance stability. The ongoing anti-corruption campaign has complicated the business environment, delaying legal approvals and shaking international investor confidence.

Read more: VIR (Resignation), Dan Tri (Official Statement), The Hindu (Graft Purge), VnEconomy (Allegations), Fulcrum (Leadership Crisis), The Diplomat (Political Instability), Treasury and Risk (Economic Impact)

Truong My Lan Appeals Bank Fraud Case

Truong My Lan, sentenced to death for a massive bank fraud scheme, is fighting for her life with an appeal. The high-stakes legal battle could set a major precedent for how Vietnam handles financial crimes at the highest levels. All eyes are on the judiciary as Lan looks to overturn her fate.

Read more: VIR (Appeal Process), VnExpress (Legal Challenge), SCMP (Broader Implications)

E-Commerce Boom: Surging Sales, Taxation

The e-commerce sector is on fire, with sales projected to hit $3.33 billion in Q2 2024. TikTok Shop is leading the charge, outpacing rival Lazada with triple the revenue. As the digital economy explodes, Vietnam is getting creative with taxation, squeezing $575 million from foreign tech giants and leveraging new tech to ensure compliance. The government is walking a delicate line, balancing the need for revenue with a wish to maintain the sector's growth.

Read more: Tuoi Tre News (TikTok Revenue), Vietnam Economic Times (Market growth), VnExpress International (Tax)

State Coffers Feeling the Squeeze

Public finances took a hit in 2023 as the global economy slumped and the Ukraine conflict dragged on. Revenues dipped, spending climbed, and the government had to rely on domestic bonds to bridge the gap. Despite the headwinds, Vietnam rolled out fiscal lifelines to keep the economy afloat, committed to weathering the storm.

Read more: Vietnam Economic Times

Energy Demand Soaring, Earnings Rise

The energy sector is seeing soaring demand alongside strong growth in renewable energy. The government is focused on keeping the lights on, even as record consumption pushes the grid to its limits. While big money pours in, challenges like U.S. probes into solar manufacturing and shifting local policies keep the industry on its toes. New oil discoveries and PetroVietnam's strong earnings are showing, however, that Vietnam's energy game remains in good health.

Read more: VnEconomy (Government assurance), Dan Tri (Consumption surge), VnEconomy (Trade challenges), Rigzone (Oil discovery), VietnamPlus and Vietnam News (Investment needs), VnExpress (Solar policy change), VietnamPlus (PetroVietnam earnings), The Investor (Power Purchase Agreements)