Vietnam 20241205: Pacesetting, Unruly, Hopeful
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Headlines:
Lower Life Insurance Revenue, Bigger Market
Capital Growth Beats National Average
Legal Reform Push for Double-Digit Growth
Vietnam Climbs Export Rankings
China-Vietnam Agricultural Trade Booms
High-Speed Rail Project Approved
Ben Luc-Long Thanh Expressway Delayed
Hanoi Commits to Green Bus Fleet
Temu Exits Vietnam Market
Aeon Mall Launches Logistics Service
Beijing Model for Clean Air
Manufacturing Growth Slows
Ha Long Bay to Host 200 Billionaire Guests
Lower Life Insurance Revenue, Bigger Market
Life insurance premium revenue fell 5.5% to VND132.2 trillion in the first 11 months of 2024. The overall insurance market grew 6.63% to VND200.1 trillion, driven by non-life insurance growth of 13.02%. Insurers paid out VND86.4 trillion in benefits, up 17.13%. Total market assets increased 9.7% to VND986.6 trillion.
Read more: The Investor
Capital Growth Beats National Average
Hanoi's economy grew 6.12% in the first nine months of 2024, breaching last year's 5.99% growth. State budget revenue hit VND492 trillion, beating targets by more than 120%. The city created jobs for 196,000 workers and achieved 23 of 24 of its development targets. For 2025, officials are looking at three growth scenarios ranging from 6.0-8% or more.
Read more: Ven
Legal Reform Push for Double-Digit Growth
PM Pham Minh Chinh has called for a speed-up of legal reforms to remove economic bottlenecks and hit his target of double-digit growth. The reforms will need to be focused on protecting business rights, streamlining procedures, and preventing corruption through the use of technology.
Read more: Ven
Vietnam Climbs Export Rankings
Vietnam reached 11th place globally in exports for 2023, ranking second in ASEAN behind Singapore. The country was among the four fastest-growing exporters globally from 2019-2023. FDI enterprises generate 70% of export turnover, with domestic value-added at 52%. The domestic sector showed strong growth in early 2024, reaching 32% of total export-import turnover.
Read more: Vietnam News
China-Vietnam Agricultural Trade Booms
Bilateral trade in agriculture, forestry, and fishery reached $16 billion in the first 11 months of 2024, up 13.4%. Fruits and vegetables ($4.1 billion), wood products ($1.7 billion), and seafood ($1.4 billion) showed strong growth. China approved imports from 11 Vietnamese dairy plants and 596 seafood enterprises.
Read more: VN Economy
High-Speed Rail Project Approved
The National Assembly approved a $67 billion high-speed railway connecting Hanoi and Ho Chi Minh City. The 1,541-kilometer railway will include 23 passenger stations and 5 freight terminals. Construction starts 2027-2035, with trains expected to reach speeds up to 350 km/h. Plans include connecting to China's high-speed network.
Read more: Railway Supply
Ben Luc-Long Thanh Expressway Delayed
The Ministry of Transport requested an extension of the timeline to complete the Ben Luc-Long Thanh Expressway to September 2026. The delay is reportedly a result of a Japanese contractor withdrawal and JICA funding discontinuation. The 57.8km expressway will span Long A province, Ho Chi Minh City, and Dong Nai province when complete.
Read more: VN Economy
Hanoi Commits to Green Bus Fleet
Hanoi has approved a plan to transition its public bus system to 100% green vehicles by 2035. The $1.9 million plan targets a 50-50 split between electric buses and renewable energy buses.
Read more: VIR
Temu Exits Vietnam Market
E-commerce platform Temu suspended services in Vietnam on December 4 following a Ministry of Industry and Trade request. The suspension came as a result of licensing issues, affecting customs clearance for current orders.
Read more: Vietnam Insider
Aeon Mall Launches Logistics Service
Aeon Mall is introducing a logistics service for shopping center tenants, that will reportedly cut shipping costs by up to 60%. The service will expand to all seven Vietnam locations by 2027, starting with their newest mall in Hue city.
Read more: Nikkei Asia
Beijing Model for Clean Air
Beijing's transformation from heavily polluted to cleaner air offers lessons for Hanoi. Beijing's successful anti-pollution campaign started in 1998, targeting coal combustion and vehicle emissions. Recommendations for Hanoi include stricter emissions standards, electric vehicle promotion, and urban green space expansion.
Read more: Tuoi Tre News
Manufacturing Growth Slows
Vietnam's manufacturing sector expanded in November but at a slower pace than October. Output and new orders increased more slowly, particularly in exports. Input costs showed modest increases while business confidence hit its lowest level since January.
Read more: Fibre2Fashion
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. The Times has a beautiful pictorial of the 12 best places to visit in Vietnam, and US News has this interesting list of the best places to retire in Asia. In closing, we leave you to ponder the likelyhood of this event getting pulled off successfully before the end of this year:
Ha Long Bay to Host 200 Billionaire Guests
Ha Long Bay will reportedly welcome more than 200 billionaire guests as part of the Art for Climate – Ha Long Bay 2025 festival, beginning in December. Organized by Arsuprema and local agencies, the event will combine luxury experiences with environmental advocacy. Guests will enjoy kayaking, private beach stays, and other exclusive activities. The festival also includes global artist performances, climate change workshops, and art auctions. Preparations are underway to clean up local beaches and facilities to meet the high standards of the elite attendees. Where organizers plan to find 200 billionaires is anyone’s guess.
Read more: Vietnam Insider
That’s it for this week!
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