Vietnam News in Brief: Weekly Roundup March 24
Vietnam Briefing keeps track of what’s happening in Vietnam business and economic news so that you don’t have to. Here’s what happened this week.
Real Estate News
CapitalLand considering major asset purchase in Vietnam
It has been widely reported that Singapore’s CapitalLand is in talks with Vietnam’s VinHomes to buy US$1.5 billion worth of projects from the local developer. This comes as Vietnam’s real estate sector struggles to recover from a slew of challenges over the past two years.
US trade mission on the ground in Vietnam
There are a reported 52 US businesses on a trade mission to Vietnam at the moment. This includes well-known names like Boeing, Netflix, and SpaceX. Organized by the US-ASEAN trade council, the visit promises to give US business leaders an overview of the ins and outs of doing business in Vietnam and may lay the foundation for new investments in the not too distant future.
HCMC Long Thanh airport delayed again
The operational date of Ho Chi Minh City’s Long Thanh airport has been pushed back to 2026 as opposed to 2025 per the original plan. Long Thanh, which will be HCMC’s second airport and Vietnam’s busiest, has been designed to accommodate 100 million passengers a year. The Airports Corporation of Vietnam (ACV), however, has struggled to find a contractor for the passenger terminal with firms pulling out of the bidding process due to the tight deadline. The ACV has now asked the government to extend the deadline.
Western Union partners with MoMo on international money transfers
Global money transfer service Western Union has formed an agreement with MoMo, a Vietnamese payments provider, to further simplify the transfer of cash into Vietnam from abroad – for a fee. Last year, Vietnam received about US$19 billion in remittances from abroad. If this partnership is successful, it could prove very lucrative for both parties.
Vietnam’s Techcombank falls victim to real estate turmoil
Moody’s has downgraded the outlook of several products from one of Vietnam’s biggest private banks, Techombank, over its exposure to Vietnam’s struggling real estate market. More specifically, Moody’s said that 29 percent of Techombank’s gross loans were made to the real estate and construction sectors with 6 percent of its total assets made up of corporate bonds. This could become a problem moving forward, it said, if the real estate market’s challenges continue.
A ‘white list’ of’ safe sites for digital advertisers has been released
An official white list has been released by the Ministry of Information and Communication (MIC) detailing websites where companies can advertise ‘safely’. This comes on the back of fines issued to publishers for advertising on sites with content the ministry deems offensive and in lieu of a ‘black list’ of banned sites, which should be forthcoming.
German firm to manufacture industrial components in Hai Phong
Germany’s Magnatec has opened a new plant in Hai Phong to the tune of US$7.8 million. The factory will produce industrial components for industries from automotive to energy. The plant has been built in the coastal production hub of Hai Phong to the east of Hanoi. It will employ 100 people; however, this number is expected to double by the end of next year.
Japanese firm to build valves in Vietnam
Kitz Corporation from Japan is opening a local subsidiary to produce stainless steel valves with an initial investment of US$18.23 million. The plant will be built in Vinh Phuc to the north-west of Hanoi in what is quickly becoming Vietnam’s industrial manufacturing heartland.
International Finance Corporation to extend exposure in Vietnam
The IFC has announced it will lend Saigon-Hanoi Commercial Joint Stock Bank (SHB) US$40 million to invest in small and medium enterprises (SME). This will be a part of a total US$120 million package put together to help local SME firms integrate with global supply chains.
Vietnam may attend G7 in Japan
Vietnamnet is reporting that Japanese Prime Minister Fumio Kishida told Indian Prime Minister Narendra Modi that Vietnam would be invited to the G7 in Hiroshima later this year. This highlights the perception among global economic leaders of the growing economic importance of Vietnam in both the region and the world.
Samsung is not leaving Vietnam
Despite reports to the contrary, Samsung has said it does not intend to shift its manufacturing base from Vietnam. While Samsung is expanding its presence in both India and South Korea, the company said earlier this week that Vietnam would remain a key part of its supply chain. Samsung accounted for US$65 billion worth of Vietnam’s exports in 2022.
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