Business Updates in Vietnam on May 4, 2024

Vietnam’s trade in January-April soared by 15.2% year-on-year to US$238.88 billion, with exports reaching US$123.64 billion and imports at US$115.24 billion. The country earned a trade surplus of US$8.4 billion, with the U.S., China, and the European Union being top export markets and China as the largest supplier.

In other news, the Ministry of Justice announced that the Housing Law and Real Estate Business Law are likely to take effect from early July, aiming to refine institutional frameworks and policies for housing development and real estate market management.

The tourism sector in Hanoi is rebounding, leading to a boom in four- and five-star hotels. Savills forecasts that the five-star hotel segment will account for 76% of future supply in Hanoi, with new projects located in the city center. The recovery in tourism has boosted hotel room occupancy, with international arrivals increasing significantly.

Job growth in Hanoi has been impressive, with 73,300 workers finding jobs in the first four months of the year. The city plans to intensify labor-related laws dissemination and provide employment opportunities for 20,000 people in 2024.

Vietnam’s economy has shown significant growth, becoming the world’s 35th largest economy with a GDP scale of $433.3 billion in 2023. The country aims to become a high-middle-income country by 2030 and a high-income country by 2045.

The Ministry of Industry and Trade has completed a draft decree on direct power purchase agreements (DPPA) and is awaiting approval. The decree aims to encourage investments in renewable energy projects and reduce carbon emissions.

Lotte Card Co., Ltd. has injected $68 million into its Vietnamese unit, Lotte Finance Vietnam, to expand its business in the country. The first charter flight between Van Don International Airport and Jeju Island in South Korea is scheduled for August.

The Ho Chi Minh City export fair will take place from May 8 to 11, with 450 exhibitors promoting key export items. Vietnamese leather and footwear exports have grown steadily, but the industry faces challenges due to new regulations and carbon emission concerns.

The Prime Minister has directed the Ministry of Public Security and the State Bank of Vietnam to address cross-ownership and manipulation within the banking sector. The SBV has proposed banning banks from offering deposit incentives that contradict regulations to improve transparency and regulation in the banking sector.