Latest news with #Hanoi
Reuters
7 hours ago
- Business
- Reuters
Vietnam Q2 GDP growth estimated at 7.6% y/y, deputy PM says
HANOI, June 20 (Reuters) - Vietnam's gross domestic product is expected to have grown 7.6% in the second quarter from a year earlier, Deputy Prime Minister Nguyen Hoa Binh told parliament on Friday. Binh said annual growth for the first half is estimated at 7.3%, adding it would be a "big challenge" to reach this year's growth target of 8%. He said Vietnam is seeking to maintain harmonious trade relations with the United States and China, its two largest trading partners. Vietnam has been holding negotiations with the U.S. to strike a deal that would allow Vietnamese goods to avoid a 46% tariff rate, imposed largely as a result of its big trade surplus with Washington. "Vietnam is doing its best to avoid the U.S.'s 46% reciprocal tariffs on its products," Binh said. "We don't assume that the tariff will take effect." To meet this year's GDP target, Vietnam has been seeking to "renew" its existing growth drivers, including exports, manufacturing, public investment and foreign direct investment, Binh said. He added that Vietnam is also seeking new growth drivers, including green investment as well as high-tech industries like semiconductors.
Times
7 hours ago
- Business
- Times
Is it a good time to invest in Vietnam Enterprise Investments Ltd?
When President Trump announced his 'liberation day' on April 2, one unexpected country that took a huge hit was Vietnam. He imposed 46 per cent tariffs on its exports to the United States, which account for nearly 30 per cent of the country's GDP. This includes a big share of Nike's footwear production, as nearly half of all Nike trainers are made in Vietnam. On April 30 the country celebrated the 50th anniversary of 'Reunification day'. To investors of a certain age, Vietnam is synonymous with the 20-year civil war between the victorious communist north and the capitalist south, backed by the US army. Vietnam then largely dropped out of the headlines in the West, but the one-party government has used the past 50 years to transform the country, including a paradoxical campaign promoting private industry. From a low base the economy has been growing at 8 per cent a year since the advent of private enterprise in 1986, one of the fastest rates in the region. Free enterprise was first officially permitted in 1986 and last month the politburo formally declared the private sector to be 'the most important driving force of the national economy', targeting it to rise from 51 per cent to 60 per cent of GDP by 2045. Among the earliest foreign entrepreneurs to see the country's potential was Dominic Scriven, an Englishman, who emerged from the M&G investment group and the now-defunct London stockbroking firm Vickers da Costa to land in Vietnam in 1991. Scriven, who collects Vietnamese propaganda art and lives in a palatial riverside house, said: 'After I drove from north to south, it was pretty obvious to me the general direction in which Vietnam would go, so I went to university in Hanoi to learn the language.' The upshot in 1994 was Dragon Capital, now the country's biggest private investor. Its banner fund is Vietnam Enterprise Investments Ltd (Veil), which soon gathered heavyweight followers. The biggest shareholders, the Bill & Melinda Gates Foundation and the family office of the Ikea founders, each have 15 per cent, along with City of London Investment Management. The financial and property sectors account for 54.2 per cent of the fund. This is because banks fill the capital vacuum between demand and the still-limited capacity of the stock market and they are at the forefront of digitising financial transactions. Hanoi market stalls increasingly accept plastic payments and property is booming as cities sprout commuter suburbs. Veil's total income rose by $17.1 million last year to $216.9 million, fuelled by a $16.9 million increase in gains from asset sales and $3.5 million more dividend income. Fair value of financial assets fell by $3.2 million. After a $1 million rise in expenses and a $1.5 million increase in foreign exchange losses, profits rose by $16 million to $177 million. On the back of that, net asset value per share rose 12 per cent to $9.73. There is still huge scope. Vietnam has 100 million people, with a median age of 33.4. More than a third of them were born in the 21st century. Average GDP per head is almost $4,500, compared with $13,300 in China. The biggest infrastructure project is to upgrade the rail link between Hanoi and Ho Chi Minh City by 2032, slashing the 1,000-mile journey time from 32 to 6 hours. To Lam, general secretary of the country's communist party, has obtained a delay in implementing the Trump tariffs and the hope is that the average rate will come down to 20 per cent or 25 per cent. That would still be a headache and, although Veil has relatively little exposure to exporters, its shares plunged from 582p to 460p on the initial hit, recovering to 593p. Veil is not for everyone. There is little prospect of a dividend and some investors will jib at Vietnam's political slant, persistent reports of corruption and a poor human rights record, which all contribute to a steady emigration flow. On the positive side, rising living standards are creating a middle class that has hardly begun investing on the local stock market. The FTSE and other authorities still rate the country a frontier economy rather than a less risky emerging market. Scriven has no clear idea when that might change, but patience should be rewarded eventually. While the shares trade at a 20 per cent discount to net asset value, at this week's AGM investors gave the board unlimited powers to buy back shares. Advice Buy Why A well-managed way to tap into a fast-growing economy
Yahoo
8 hours ago
- Business
- Yahoo
Vietnam, US, hold negotiations on new trade deal, ministry says
HANOI (Reuters) -Vietnam and the United States held an online round of negotiations on a new trade deal on Thursday night, the Ministry of Industry and Trade said on Friday. During the negotiations with U.S. Secretary of Commerce Howard Lutnick and Trade Representative Jamieson Greer, Vietnamese trade minister Nguyen Hong Dien asked the U.S. to review "reciprocal tariffs" and market access for Vietnam's key exports, the ministry said in a statement.
Reuters
8 hours ago
- Business
- Reuters
Vietnam, US, hold negotiations on new trade deal, ministry says
HANOI, June 20 (Reuters) - Vietnam and the United States held an online round of negotiations on a new trade deal on Thursday night, the Ministry of Industry and Trade said on Friday. During the negotiations with U.S. Secretary of Commerce Howard Lutnick and Trade Representative Jamieson Greer, Vietnamese trade minister Nguyen Hong Dien asked the U.S. to review "reciprocal tariffs" and market access for Vietnam's key exports, the ministry said in a statement.
Coin Geek
18 hours ago
- Business
- Coin Geek
Vietnam legalizes 'crypto,' limits AI use under new law
Getting your Trinity Audio player ready... Vietnam has officially legalized digital assets after the National Assembly of Vietnam, the country's legislature, overwhelmingly approved the Law on Digital Technology Industry on June 14, with 441 of 445 lawmakers voting in favor of the bill. The legislation defines digital assets as 'digital technology products created, issued, transferred, and authenticated using blockchain technology, with prices and property rights in accordance with civil and relevant laws.' This definition includes security tokens/encrypted securities assets, payment tokens, utility tokens, and mixed tokens—all of which are now regulated and provided with clear property rights, per the law. When it comes into force on January 1, 2026, the legislation will also bring incentives for digital technology development, particularly semiconductor manufacturing, artificial intelligence (AI), and digital technology startups. Outside of incentives, the law mandates the implementation of measures to ensure network safety and security to 'prevent and combat money laundering, terrorist financing, and financing the proliferation of weapons of mass destruction.' This is likely an attempt to get Vietnam off the Financial Action Task Force (FATF) 'grey list' for 'jurisdiction under increased monitoring,' which it has been on since June 2023. Vietnam has seen digital asset adoption skyrocket in recent years despite the legal uncertainties prior to the law's passage, with blockchain analysis firm Chainalysis ranking the country fifth globally for digital asset adoption in 2024. In March, local media reported that Prime Minister Pham Minh Chinh had directed the Ministry of Finance and the State Bank of Vietnam to finalize digital asset regulation proposals by the end of the month in a bid to reach a national growth target of 8% by year-end. The regulation took a couple more months than hoped, but now the country has a dedicated digital asset law, it's a case of better late than never. The next stage will involve the government outlining specific business conditions, classifications, and oversight mechanisms for the asset types defined in the regulation. Categorizing digital assets One of the key features of the new legislation is the creation of three main categories of digital assets, based on the technology used and purpose of use, namely: virtual assets that can be used for exchange or investment purposes; crypto assets that use encryption technology to authenticate assets during creation, issuance, storage, and transfer; and other digital assets. According to the law, virtual and crypto assets do not include 'securities, digital forms of legal currency, and other financial assets as prescribed by civil and financial laws'—meaning these products would either fall under the category of 'other digital assets' or fall outside the remit of the Digital Technology Law. AI provisions While encouraging innovation and development in AI, certain activities are strictly prohibited by the new law. Specifically, an AI system that deploys techniques for the purpose of 'influencing the behavior of an individual without the individual being aware of it' or using said techniques to 'entice or deceive to materially distort the individual's behavior by impairing the ability to make decisions resulting in significant harm.' It is also illegal to deploy or develop an AI system used to evaluate or classify individuals based on social behavior or systems that exploit people who are vulnerable due to age, disability, economic or social circumstances. Vietnam's tech hub ambitions The new legislation is a signal of Vietnam's ambition to become a digital tech hub, and it sets an ambitious target of 150,000 digital technology enterprises by 2035, according to local media. In order to achieve this, the law lays the groundwork for providing preferential treatment for digital technology companies when it comes to land, credit, and tax, as well as incentives for research, testing, development, production, and application of digital technology products and services. For example, companies developing semiconductors, AI systems, and digital infrastructure can receive corporate income tax rates as low as 10% for 15 years, along with exemptions from import duties and land rental fees. In a range of other incentives, the salaries and wages of experts, scientists, and people with special talents working on projects are also exempt from personal income tax for a period of five years, while large-scale projects investing over $80 million in data centers or $160 million in semiconductor facilities are eligible for additional 'special' incentives. Watch | From BRICS to Blockchain: How Global Trade and Digital Currencies Are Evolving title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen>
