Vietnam 20241121: Noteworthy, Unrivaled, Unique
Mekong Memo Vietnam Weekly: Business, politics, finance, trade & legal news.
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Headlines:
Trump Win Set to Position VN for Success
To Lam’s Delicate Political Balance
Vietnam-Singapore Ties Lifted to New Heights
U.S. Military Aircraft Deal Signals Defense Shift
Media Censorship Hampers BBC’s Efforts
Japan, Vietnam, Laos Partner on Digital ID
Vingroup Sets Up Robotics Firms
Chu Lai Port Starts Direct US Route
Vietnam-Laos Border Gate Pair Opens
Hai Phong Plans $34M Sea Bridge
HCMC Gears Up for $2.37B Gateway Projects
Fintech Platform Simplifies Solar Financing
Enterprises Called On to Expand EU Exports
AI Hailed as Core 4IR Technology
Hanoi Targets Energy Consumption Cuts
Domestic Car Demand Rises, Chinese Competition Bites
New Real Estate Guidebook for Foreign Investors
Hidden Bars Serve as Gen Z Workspaces
Trump Win Set to Position VN for Success
Vietnam is expected to greatly benefit from U.S. tariffs on Chinese goods, drawing companies like Apple, Samsung, and SpaceX to shift or expand production to its shores. The main advantages include Vietnam’s single-party authoritarian system, which enables swift implementation of business-friendly policies, its proximity to China for streamlined logistics, and a free-trade agreement with the European Union. Vietnam is investing heavily in infrastructure, clean energy, and regulatory improvements. High-value industries like semiconductors, biotechnology, and AI are targeted, with multibillion-dollar projects fueling its transition to a high-income economy. Vietnam-U.S. relations are expected to strengthen, building on existing ties and shared economic goals.
Read more: Forbes (Manufacturing Shift), Vietnam Insider (Economic Opportunities), The Diplomat (Bilateral Relations), Nhan Dan (Nearshoring)
To Lam’s Delicate Political Balance
Vietnam's new Communist Party leader, To Lam, assumes leadership during a delicate time for the nation’s economic growth and geopolitical positioning. Known for his anti-corruption efforts, To Lam has been at pains to express continuity in policies to attract foreign investment, including in high-tech sectors including semiconductors. While Vietnam continues to benefit from U.S.-China tensions, questions remain about maintaining political stability and economic reforms as it navigates leadership turnover. Strategic ties with the U.S., China, and regional allies will shape Vietnam’s future trajectory.
Read more: GIS Reports
Vietnam-Singapore Ties Lifted to New Heights
Vietnam and Singapore are expected to officially elevate bilateral ties to a comprehensive strategic partnership, with Singaporean Prime Minister Lawrence Wong visiting Vietnam next year. The two countries have enjoyed strong economic, political, and cultural relations, and this latest development will be a significant milestone in their partnership. Closer cooperation is expected in areas including the usual suspects: trade, investment, tourism, and people-to-people exchanges. Separately, Singapore’s low-cost airline Scoot will start direct flights between Phu Quoc and Singapore on December 20.
Read more: The Investor (Diplomatic Upgrade), Vietnam Insider (Phu Quoc Flights)
U.S. Military Aircraft Deal Signals Defense Shift
Vietnam has received five U.S.-made Beechcraft T-6C Texan II training aircraft, marking its first direct military purchase from the U.S. since the Vietnam War. Delivered under a 2021 deal, the trainers will modernize Vietnam’s air force, traditionally reliant on Soviet-era aircraft. Analysts suggest the acquisition could lead to future U.S. arms purchases, like second-hand F-16s, as Vietnam diversifies its defense partners. Challenges include high costs for advanced U.S. systems and concerns over the reliability of Russian hardware amid sanctions and safety issues.
Read more: RFA
Media Censorship Hampers BBC’s Efforts
Vietnam’s media restrictions, including the 2019 Cybersecurity Law and Decree 53, have severely impacted the BBC Vietnamese Service’s ability to host open political debates. Once a popular platform, the BBC Roundtable saw a substantial decline in participation from Vietnam due to state monitoring, censorship, and threats against dissenters. The closure of the Roundtable in 2021 is the result of a broader suppression of civic space, limiting the expression of diverse viewpoints and curtailing public dialogue on issues.
Read more: Eurasia Review
Japan, Vietnam, Laos Partner on Digital ID
Japan is supporting identity system upgrades in Vietnam and Laos, with a civil registration data center and new digital ID coming to Vietnam. The Japanese government is providing funding and expertise to help modernize and digitize identification systems to improve administrative efficiency, improve public services, and further support economic development.
Read more: Biometric Update
Vingroup Sets Up Robotics Firms
Vingroup has set up a robotics unit to ramp up its industrial-high technology ecosystem. VinRobotics has a charter capital of $39.35 million, with Vingroup holding a 51% stake and co-founder Pham Nhat Vuong and his two sons holding the rest. The new venture is said to be designed for manufacturing efficiency and to optimize industrial, service, and life processes.
Read more: The Investor
Chu Lai Port Starts Direct US Route
Chu Lai Port has expanded its international network with a direct route to the US, following the launch of services to India in August. This new route solidifies the port's position as an international transshipment gateway in central Vietnam and the Central Highlands.
Read more: Vietnam News
Vietnam-Laos Border Gate Pair Opens
The Long Sap (Vietnam) – Pa Hang (Laos) international border gate pair officially cracked its doors for “international travel” on November 19. The crossing, located in Son La province, Vietnam, and Houaphanh province, Laos, was created in 1990, but hasn’t been an official international crossing until now. The upgrade will facilitate improved logistics, trade and tourism.
Read more: Nhân Dân
Hai Phong Plans $34M Sea Bridge
Hai Phong, a northern port city, plans to build a second Tan Vu - Lach Huyen sea bridge to connect its inner city area with Cat Hai Island. The $34 million project, has been proposed by the municipal People's Committee to improve connectivity in the region.
Read more: Vietnam Economic News
HCMC Gears Up for $2.37B Gateway Projects
Ho Chi Minh City has prepared five major infrastructure projects to expand gateway routes at a total price tag of $2.37 billion. These projects are being set out in an attempt to improve traffic, minimize congestion, and grease the wheels of trade. The municipal Department of Transport is leading the efforts to upgrade transportation infrastructure in support of the city's economic growth.
Read more: Tuổi Trẻ News
Fintech Platform Simplifies Solar Financing
A fintech platform introduced by Solarvest Holdings Berhad during the DEX Connex Vietnam 2024 event called Powervest is simplifying solar financing for businesses in Vietnam. Powervest offers two main options: Powerflex, providing full or partial financing for businesses to co-own solar systems, and Powerlease, enabling businesses to lease installations and pay for electricity produced under the Direct Power Purchase Agreement model.
Read more: Energy News
Enterprises Called On to Expand EU Exports
The Vietnam Trade Promotion Agency organized a seminar on November 18 to promote trade in the European market and encourage enterprises to expand exports via official channels. With the EU being an important and growing trading partner, Vietnamese businesses are being called upon to tap into the potential of the market and take advantage of preferential tariffs under the EU-Vietnam Free Trade Agreement.
Read more: Nhân Dân
AI Hailed as Core 4IR Technology
Minister of Information and Communications Nguyen Manh Hung has said that the artificial intelligence (AI) is the core technology of the 4th Industrial Revolution. Speaking on November 19, Hung compared AI to the steam engine, power generator, and personal computer of previous industrial revolutions. The minister's statement is indicative of Vietnam's focus on developing and harnessing AI to drive economic growth and technological advancement.
Read more: Vietnam Economic News
Hanoi Targets Energy Consumption Cuts
Hanoi is attempting to reduce energy use by 1.6-1.8% compared to projected consumption demand by 2025 as part of an action plan to implement the national energy efficiency program. The city says it will promote sustainable development, reduce greenhouse gas emissions, and optimize energy use across the board.
Read more: Vietnam Economic News
Domestic Car Demand Rises, Chinese Competition Bites
Vietnam’s 50% registration fee cut for locally assembled cars has lifted demand, with domestic car sales increasing by 8% in October 2024. At the same time, more than 10 Chinese car brands, including BYD and Great Wall, have entered Vietnam, offering competitive prices, especially in the EV segment. Experts are saying there is a need for stronger policies, including higher taxes on imported autos and standardized after-sales service, to protect local manufacturers and ensure market sustainability.
Read more: Vietnam Insider (Fee Cuts), Tuoi Tre News (Chinese Auto Influx)
New Real Estate Guidebook for Foreign Investors
Dr. Doan Van Binh, Vice President of the Vietnam National Real Estate Association, has launched Vietnam Real Estate for Foreigners, a bilingual guidebook for navigating Vietnam's real estate market. The book provides insights into buying, leasing, and investing in housing, industrial parks, and tourism properties, and includes the latest legal updates. Intended to attract international investors, the book is s a comprehensive tool for investors looking for opportunities in Vietnam’s evolving market.
Read more: Vietnam News
And now for something completely different.
While the focus of The Memo is on news for business, we often wrap with a less business-focused article. If you missed it, there’s a beautiful pictorial from the New York Times Style Magazine about the waterlily harvest, (and some local commentary on the article). Apparently more than one third of Vietnam’s mammals are at risk of extinction. Here’s a report on what you need to know about riding Ho Chi Minh City’s first metro trains. We’ll finish up this week by highlighting a new trend:
Hidden Bars Serve as Gen Z Workspaces
Young professionals and students in Vietnam are embracing hidden bars, or speakeasies, as alternative workplaces. With tranquil environments, dim lighting, and soft music, these spaces reportedly offer a productive and stress-free setting for working late into the night. Popular in cities like Hanoi and Ho Chi Minh City, hidden bars cater to solo patrons with private seating and friendly bartenders who provide conversation. This new trend seems to be a reflection of a growing trend towards flexible work habits in time and space in younger generations.
Read more: VnExpress
That’s it for this week!
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