Vietnam 20241128: Benevolent, Thriving, Spicy
Mekong Memo Vietnam Weekly: Business, politics, finance, trade & legal news.
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Headlines:
Death Row Tycoon Begs for Her Life
Economic Policy Shifts Target Growth
Internet Users Set to Top 100M
Real Estate Opens Up, Recovery Takes Shape
Business Summit and Chambers Call to Reform
Infrastructure Plans Gain Momentum
Startup Ecosystem Continues Evolution
Cultural Investment Takes Center Stage
Manufacturing Sector Faces Chinese Challenge
Labor Market Braces for Wage Growth
State Reform Push Continues
Big Money Needed for Future Transport Needs
Tech Growth and Diversification Drive M&A
New Framework for Mobile-Money Payments
Vietnam and Canada Elevate Women in Leadership
Death Row Tycoon Begs for Her Life
Property tycoon Truong My Lan faces death sentence for a $27 billion embezzlement from Saigon Commercial Bank. The 68-year-old is appealing her sentence in Ho Chi Minh City, pledging to repay $11 billion to avoid execution. The case marks one of Vietnam's biggest corruption scandals, sending shockwaves through the financial sector and testing the country's commitment to fighting high-level corruption.
Read more: Tuoi Tre News (Appeal Details), SCMP (Case Background)
Economic Policy Shifts Target Growth
The State Bank of Vietnam is implementing lending rate cuts to reach a 15% credit growth target. Interest rates dropped 0.76% by October 20. The Ministry of Finance proposed personal income tax reductions for high-tech workers and VAT exemptions for small businesses with revenues under VNĐ200 million starting 2026. These measures aim to stimulate economic activity and support key growth sectors.
Read more: The Investor (Rate Cuts), VN Economy (Tax Breaks), VEN (VAT Changes)
Internet Users Set to Top 100M
Internet users in Vietnam are expected to breach the 100 million figure by 2029, according to Vietnam Internet Association Chairman Vu Hoang Lien. The projection even as cyberthreats remain a growth industry for some, with nearly 5 million internet-based threats detected in Q3 2024, nearly 1 in 5 users. The country is trying to improve online controls, demanding social media companies verify user identities and share data with authorities.
Read more: VN Economy (Growth Projection), Taipei Times (Online Controls), Vietnam News (Cyberthreats)
Real Estate Opens Up, Recovery Takes Shape
Da Nang has approved four major projects for foreign ownership, offering more than 1,100 apartments and 587 villas. Vietnam is being listed as a top Asia-Pacific investment destination, with luxury properties in major cities commanding from $5,400 to as much as $15,000 per square meter. Market analysts are calling for a strong rebound by 2025, supported by infrastructure improvements, new land laws, and faster project approvals. The sector's growth is further being helped along by projected 6.1% GDP growth in 2024, urbanization trends, and its position in the "China+1" manufacturing shift.
Read more: Ven Cong Thuong (Foreign Ownership), Vietnam News (Market Analysis), VIR (Growth Forecast)
Business Summit and Chambers Call to Reform
The US-Vietnam Business Summit showcased opportunities to work together in technology, renewable energy, and logistics, with Vietnam calling on the US to expand investment and remove trade barriers. Bilateral trade reached $110.9 billion in 2024. Separately, foreign chambers, including EuroCham and AmCham, have met to discuss local business challenges, focusing on VAT refund delays, work permits, and administrative transparency. Proposals included digitalization and advocacy strategies to improve efficiency.
Read more: Vietnam Economic Times (US Ties), The Investor (Chamber Advocacy)
Infrastructure Plans Gain Momentum
Transport authorities formed an appraisal council for a railway connecting Lao Cai, Hanoi, and Hai Phong with China's Yunnan province. Ho Chi Minh City's first metro line is (still? again?) preparing for operations next month. The central Thua Thien Hue province says that it plans a $2.4 billion LNG power plant for 2031-2035.
Read more: VN Economy (Railway), VEN (Metro), The Investor (Power Plant)
Startup Ecosystem Continues Evolution
Prime Minister Pham Minh Chinh has called for Vietnamese startups to seek resources from both international and domestic corporations. The government wants to support the development of technology unicorns through digital transformation, but the idea is easier to describe then to execute on. Vietnam and South Korea have announced plans to work together on AI with new digital infrastructure and data centers.
Read more: VEN (Startup Growth), VIR (AI Cooperation)
Cultural Investment Takes Center Stage
The National Assembly has approved $4.8 billion for cultural development from 2025 to 2035. The investment targets preservation and promotion of Vietnamese cultural heritage while trying to “modernize” cultural institutions. The program is a major commitment to cultural infrastructure and development - will be interesting to see how it develops.
Read more: Tuoi Tre News
Manufacturing Sector Faces Chinese Challenge
Vietnamese manufacturers are struggling with competition from low-cost Chinese imports. The food processing industry, 19.1% of Vietnam's processing sector, is facing twin challenges with raw materials and value chain integration hiccups. The situation calls for industrials upgrades and quality improvements.
Read more: Tuoi Tre News (Competition), VietnamNet (Food Processing)
Labor Market Braces for Wage Growth
Ho Chi Minh City expects to fill 63,000 job openings in late 2024, driven by demand in retail, logistics, and manufacturing. Export-oriented industries like textiles and electronics are hiring to meet year-end orders. A 2025 salary survey by Robert Walters has found 82% of Vietnamese companies plan to raise working conditions, mostly through competitive bonuses, training, and workplace culture improvements to attract talent. Employees looking for work are reportedly prioritizing benefits, career development, and international work environments.
Read more: Vietnam Economic Times (HCMC hiring trends), Vietnam News (Wage Increases)
State Reform Push Continues
Party General Secretary To Lam's initiative to combat wastefulness has received approval, focusing on streamlining the state apparatus. The reforms emphasize civil servant accountability and more efficient government operations. The push comes alongside general efforts to bring Vietnam's public sector into the 21st Century.
Read more: Tuoi Tre News
Big Money Needed for Future Transport Needs
The World Bank reports Vietnam needs $11 billion for electric vehicle charging infrastructure. The investment requirement reflects growing EV adoption and the country's commitment to sustainable transportation. The figure highlights the scale of infrastructure investment needed for Vietnam's green transition.
Read more: MSN
Tech Growth and Diversification Drive M&A
Vietnam’s mergers and acquisitions market is reportedly healthy, with tech leading due to investments in AI and data centers by firms like FPT Corporation and Alibaba. Growing sectors like semiconductors and LNG are pulling in foreign buyers, while traditional fields like healthcare, finance, and real estate dominate activity. Big recent deals include SK Group’s $300M acquisition of ISCVina and Vingroup’s $3.5B data center project.
Read more: Vietnam Investment Review (M&A Prospects), Vietnam Investment Review (Tech Sector M&A)
New Framework for Mobile-Money Payments
The State Bank of Vietnam has proposed a regulation to formalize the use of telecommunications accounts for small-value payments under a Mobile-Money initiative. Hoping to promote non-cash transactions in rural and remote areas, the service has registered nearly 10 million users, with 71% in underserved regions. The decree is intended to increase financial inclusion, regulate service providers, and ensure fair competition. By leveraging telecommunications infrastructure, the decree is expected to lower costs and improve financial access.
Read more: Vietnam News
Vietnam and Canada Elevate Women in Leadership
At a roundtable organized by Canada’s Consulate General in Ho Chi Minh City, women leaders from Vietnam and Canada explored strategies to promote gender equality in leadership across growth sectors including technology, aviation, and healthcare. Discussions centered on creating training programs, building international networks, and leveraging women’s flexibility in leadership.
Read more: Vietnam News
That’s it for this week!
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