Vietnam and U.S. to Hold Third Round of Trade Talks Amid Tariff Deadline Pressure

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The United States and Vietnam are set to hold a new round of trade negotiations by the end of next week, according to Vietnam’s Ministry of Industry and Trade. The announcement comes as both nations face growing pressure to reach a compromise before the potential reinstatement of steep U.S. tariffs on Vietnamese exports in early July.

This will mark the third round of bilateral trade talks, although specific dates and the venue have not yet been disclosed. The talks follow Vietnam’s formal response to a comprehensive list of trade-related requests from Washington, which include efforts to reduce Vietnam’s dependence on Chinese-sourced materials and components.

Related: U.S. Presses Vietnam with Tough Trade Demands Amid Tariff Talks

The ministry’s statement was released after a high-level meeting in Paris on Wednesday between Vietnamese Trade Minister Nguyen Hong Dien and U.S. Trade Representative Jamieson Greer. Both sides reportedly agreed to accelerate technical negotiations and “maximize efforts” to secure meaningful progress during the upcoming discussions.

Vietnam reiterated its “determination and goodwill” in addressing the pending trade issues but did not provide details on the specific concessions it may be willing to offer.

U.S. negotiators are pressing for results ahead of a self-imposed July deadline, after which a temporary pause on reciprocal tariffs—impacting 46% of Vietnamese exports—may be lifted. These tariffs were introduced as part of a broader realignment of trade policy under the Trump administration, aimed at countering unfair trade practices and supply chain dependencies.

The U.S. has also urged Vietnam to clamp down on illegal transshipment activities, where goods from China are rerouted through Vietnam to evade American tariffs. In response, Hanoi has launched investigations and enforcement actions and has signaled openness to importing more U.S. products, including agricultural goods, aircraft, and energy—although no major purchase agreements have been finalized.

Vietnam remains highly reliant on the U.S. as its top export destination, while also depending on imports of raw materials and components from China for its export-driven manufacturing sector.

The upcoming talks are seen as pivotal to maintaining stable trade relations between the two countries, particularly amid a shifting global trade landscape and tightening U.S. trade scrutiny in Asia.

Vietjet Appoints Former German Vice Chancellor to Board of Directors

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Vietjet, Vietnam’s leading low-cost airline, has announced the appointment of a former German Vice Chancellor to its Board of Directors, marking a bold move in its ongoing international expansion strategy.

Philipp Rösler – the newly appointed board member, aged 52, is of Vietnamese origin and will serve a term until 2027. Born in Soc Trang Province in Vietnam’s Mekong Delta, he was adopted and raised in Germany, where he pursued a career in medicine before transitioning to politics.

Related: Vietnamese Bikini airline unveils new brand

His distinguished political career includes roles as Germany’s Minister of Health (2009) and Vice Chancellor (2011), where he simultaneously held posts as Minister of Economics and Technology and Minister of Health. After retiring from politics in 2014, he held senior positions at major German corporations, including Siemens, Deutsche Bank, and Lufthansa.

Prior to his appointment at Vietjet, he served as an independent director at another airline since 2023, offering strategic guidance on expanding international partnerships, particularly in Europe and the Asia-Pacific.

Vietjet also announced changes to its board structure, with Donal Boylan, Luu Duc Khanh, Chu Viet Cuong, and Nguyen Thanh Hung stepping down from the board to take on roles in the airline’s newly established Founding Council.

At the company’s annual general meeting last week, Chairwoman Nguyen Thi Phuong Thao, Vietnam’s richest woman, unveiled ambitious plans to expand the airline’s global footprint. This includes the launch of new international routes and a major fleet expansion—doubling its wide-body aircraft to 40, under a recently signed agreement with Airbus.

The appointment of the former German Vice Chancellor underscores Vietjet’s commitment to strengthening its international leadership and boosting global investor confidence as it accelerates its global growth.

Foreign National Wanted for $5.2 Million Investment Scam Arrested in Vietnam

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Vietnamese police have arrested a South Korean national wanted by Interpol in connection with a multimillion-dollar international investment fraud ring.

The suspect, Hong Sangwoo, 38, was taken into custody in Lam Dong Province, home to the popular tourist city of Da Lat, under an international arrest warrant issued by Interpol in September 2024.

According to Interpol, Hong was a key member of a sophisticated scam syndicate based in Cambodia. He was allegedly responsible for recruiting, training, and managing South Korean operatives, while also serving as a Korean-Chinese translator within the criminal network.

The syndicate impersonated British asset management firm Janus Henderson Group, luring victims—mostly in South Korea—via the popular messaging app KakaoTalk. Victims were invited into fake investment chat rooms and convinced to install a fraudulent stock trading app, promised with “high returns and absolute safety.”

Hong Sangwoo at a police station in Lam Dong Province, home to Da Lat City. Photo by Le Tien

Authorities estimate that the scheme defrauded investors of approximately 7 billion Korean won (US$5.2 million).

Hong had been on the run and was believed to be hiding in Vietnam. Based on intelligence shared by Interpol, Vietnamese authorities successfully located and arrested him this week.

The arrest highlights Vietnam’s growing cooperation in international law enforcement and its commitment to cracking down on transnational financial crimes. Extradition proceedings are currently underway.

Man Arrested for Stabbing Two Police Officers During Motorcycle Theft Escape in Vietnam

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A 34-year-old man has been arrested in Vietnam’s Central Highlands after allegedly stealing a motorbike and stabbing two police officers while resisting arrest, local authorities confirmed on Wednesday.

The suspect, identified as Huỳnh Thành Phúc from Dong Nai Province, was taken into custody by Gia Lai provincial police after a week-long manhunt. He is facing charges of theft and resisting law enforcement officers.

According to police reports, on May 30, Phúc was caught stealing a motorbike in Hà Bầu commune, Đăk Đoa District. When officers attempted to stop him, he reportedly pulled out a knife and stabbed two policemen—injuring one under the armpit and the other in the shoulder—before fleeing into a nearby coffee plantation.

Phúc, who has a history of multiple criminal convictions and had recently completed a prison sentence, is also suspected of using methamphetamine at the time of the incident. After escaping the initial confrontation, he allegedly stole another motorcycle and fled toward Pleiku City.

Authorities apprehended Phúc late last night in Phù Đổng Ward, approximately 18 kilometers from the original crime scene.

The case is under further investigation, and local authorities have pledged to apply the full extent of the law.

Vietnam’s Exports Surge in May, Trade Surplus Hits $4.67 Billion

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HANOI, June 4 – Vietnam’s export sector showed strong momentum in May 2025, with outbound shipments increasing by 14% year-on-year, according to a government statement released Wednesday. The nation also recorded a trade surplus of $4.67 billion for the month, underscoring its growing competitiveness in global markets.

The surge in exports comes as Vietnamese firms accelerate shipments ahead of upcoming tariff adjustments under the U.S. “reciprocal” trade policy set to take effect in July. Despite global uncertainties, Vietnam continues to affirm its role as a key player in global supply chains, particularly in electronics, textiles, agriculture, and renewable energy products.

Consumer prices rose by an average of 3.21% in the first five months of the year, indicating stable inflationary pressure. Industrial production rose 8.8%, and retail sales increased 9.7%—reflecting robust domestic demand and manufacturing strength.

Foreign investors are also taking notice. Vietnam attracted $8.9 billion in foreign investment inflows during the January–May period, up 7.9% from a year earlier. Foreign investment pledges saw a dramatic 51.1% increase to $18.4 billion, signaling sustained confidence in Vietnam’s economic fundamentals.

Commenting on the outlook, Sophie Dao, Lawyer and Senior Partner at GBS – a leading advisory firm for foreign investors in Vietnam – said:

“Vietnam continues to prove its strategic value as a reliable manufacturing and export hub. The consistent growth in exports, together with strong FDI pledges, sends a powerful message to global investors. It’s a sign that Vietnam remains open, competitive, and highly responsive to the evolving dynamics of international trade.” She added: “We are seeing a noticeable uptick in interest from clients looking to relocate or expand their operations in Vietnam. The current economic climate—combined with favorable demographics, regulatory improvements, and trade diversification—is making Vietnam a magnet for high-potential investments.”

As the global trade landscape shifts, Vietnam is positioning itself as a resilient and attractive destination for foreign capital, especially for those seeking long-term opportunities in Asia’s fast-growing economies.

Google Pixel 10 Rumored to Launch on August 13 With Major Upgrades Across the Lineup

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Google is expected to officially unveil its highly anticipated Pixel 10 smartphone series on August 13, according to multiple industry sources. The lineup will reportedly include four distinct models: Pixel 10 (standard), Pixel 10 Pro, Pixel 10 Pro XL, and a foldable Pixel 10 Pro Fold.

A major change this year is that, for the first time, the standard Pixel 10 will feature a triple-camera setup—matching its Pro siblings in lens count. The addition of a telephoto lens will give users enhanced zoom capabilities, though overall image quality is still expected to be slightly below the Pro models due to hardware and sensor limitations.

The Pixel 10 Pro and Pro XL are said to retain a familiar camera module design from last year, with most improvements centered around internal upgrades—most notably the new Google-designed G5 chip, which promises faster performance and enhanced AI capabilities.

One of the biggest draws for the Pixel 10 series could be the integration of Android 16, which was recently previewed by Google. The updated operating system introduces a refreshed user interface, improved customization, and native support for AI-driven productivity tools.

The new Pixel devices are expected to go on sale roughly one week after the launch event, with pre-orders likely opening on the same day.

If these rumors hold true, Google’s Pixel 10 family could be its most ambitious yet—offering a wider variety of form factors and performance tiers, while pushing deeper into the AI-first smartphone experience.

U.S. Engine Export Ban Threatens Future of China’s COMAC C919 Jet

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Beijing, June 4, 2025 – The future of China’s domestically developed commercial jetliner, the COMAC C919, has been thrown into uncertainty following a U.S. decision to suspend the export of critical aviation technology, including the LEAP-1C engines that currently power the aircraft.

According to a report by The New York Times, the U.S. government halted the sale of the LEAP-1C engines—jointly developed by U.S. firm GE Aerospace and France’s Safran through their CFM International partnership—as part of a broader response to China’s restrictions on rare earth exports to the United States.

While the Commercial Aircraft Corporation of China (COMAC) has yet to comment, a spokesperson from the Chinese Embassy in Washington condemned the move: “China strongly opposes the U.S.’s abuse of the concept of national security and export controls to deliberately suppress and contain China’s development.”

Though the C919 is promoted as a product of China’s ambition for homegrown aviation innovation, much of its critical technology—including engines and avionics—remains reliant on Western suppliers. Without the LEAP-1C engines, the C919 program may face production delays and even potential grounding of newly manufactured jets.

As of May 28, 2025, the C919 has been in commercial operation for two years, with only 18 aircraft currently flying under carriers such as Air China, China Eastern, and China Southern. COMAC had aimed to ramp up production to 50 aircraft per year by 2025 and exceed 120 annually by 2028. That goal now appears to be at risk.

China has been developing a domestic alternative, the CJ-1000A “Yangtze” engine, through AECC’s commercial engine arm ACAE. Although test flights and development milestones have been reached—such as the CJ-1000A’s mounting on a Xian Y-20 transport aircraft in 2023—the engine is not expected to receive certification until at least 2027, with commercial deployment targeted for 2030.

Aviation analysts say the suspension of U.S. engine exports could delay China’s ambition to become self-reliant in large civil aircraft manufacturing, a field currently dominated by Boeing and Airbus. Without access to the LEAP-1C or a certified domestic alternative, COMAC may be forced to halt deliveries, leaving newly assembled aircraft idle.

This latest development marks a significant escalation in the tech tensions between the U.S. and China, with strategic industries like aerospace increasingly caught in the crossfire.

Foreign Student Dies in High-Speed Motorbike Crash in Can Tho

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Vietnam Insider – A deadly motorbike accident involving two Indian students has reignited concerns over road safety for foreigners in Vietnam, where motorbikes are the primary mode of transport but pose serious risks without proper precautions.

At around 6:00 a.m. today, a high-powered motorcycle carrying two Indian nationals crashed near Bung Xang Lake in An Khanh Ward, Ninh Kieu District, Can Tho City. According to local authorities, the vehicle lost control on a curve, mounted the sidewalk, and slammed into the concrete wall of a residential home.

The collision was so intense that it brought down over four meters of the two-meter-high wall. The driver, a university student, was thrown nearly five meters and died on the spot. The passenger was thrown into the yard of the residence and sustained severe injuries. He was taken to the hospital in critical condition. The motorbike was completely wrecked.

Security camera footage captured the moment of the crash. At the time, the road surface was wet from earlier rain, and officials confirmed the motorbike was traveling at high speed.

Both victims were enrolled at a university in Can Tho, officials said. The incident is under investigation.

This tragedy has prompted renewed warnings from authorities and safety advocates urging foreign residents and tourists to exercise greater caution when riding in Vietnam’s often unpredictable traffic conditions.

Motorbikes are convenient and widely used across the country, but for those unfamiliar with the local environment, they can also be dangerous—especially in poor weather, on narrow roads, or when speeding.

Safety Tips for Foreign Riders in Vietnam:

  • Always wear a helmet—it’s required by law and could save your life.
  • Avoid high speeds, particularly on wet or unfamiliar roads.
  • Take extra caution on curves and uneven surfaces.
  • Never ride under the influence of alcohol or drugs.
  • Check your motorbike regularly for mechanical safety, including brakes and tires.
  • Ensure proper licensing—carry an international driving permit and a valid license.
  • Ride defensively and expect the unexpected from other road users.

For newcomers, using taxis or ride-hailing services like Grab or Be may be safer options while adjusting to Vietnam’s traffic norms.

Authorities continue to investigate the circumstances surrounding the Can Tho crash and urge all foreign visitors and residents to respect traffic laws and prioritize their safety on the road.

 

Vietnam Sees FDI Surge by Over 51% in First Five Months of 2025

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Vietnam has recorded a significant surge in foreign direct investment (FDI) in the first five months of 2025, with total registered capital reaching nearly USD 18.4 billion, up 51.1% year-on-year. This robust growth reflects growing international confidence in Vietnam’s dynamic and resilient investment climate.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, the sharp rise includes newly registered capital, adjustments to existing projects, and capital contributions or share purchases by foreign investors.

Key highlights include 1,549 newly registered projects (up 14.1%), totaling over USD 7.02 billion in capital. 672 projects adjusted capital upward, with an additional USD 8.51 billion—3.4 times higher than the same period last year. 1,358 share purchases and capital contributions totaling USD 2.85 billion, nearly 1.8 times higher than the same period in 2024.

The manufacturing and processing sector continues to lead in attracting FDI, drawing in USD 10.39 billion or 56.5%of total registered investment, followed by real estate with USD 4.99 billion, more than double the amount in the same period last year.

In terms of source countries, Singapore maintained its top position with over USD 4.38 billion (up 30.1%). South Korea followed with USD 2.93 billion, 2.47 times higher year-on-year. Other major investors included China, Japan, and Malaysia.

Hanoi attracted the most FDI among localities, registering USD 3.2 billion (up nearly 2.8 times), followed by Bac Ninhand Ho Chi Minh City, both seeing investments surge over 2.5 times compared to last year.

Commenting on the trend, Sophie Dao, Lawyer and Senior Partner at GBS – Global Business Services, a leading advisory firm for foreign investors in Vietnam, said:

“Vietnam’s FDI growth is not only impressive in scale but also in diversification across sectors and regions. Investors are not just entering the market—they’re expanding their presence, which is a strong vote of confidence. With ongoing regulatory improvements, strategic free trade agreements, and a young, tech-savvy workforce, Vietnam remains a standout destination in Asia for sustainable investment.”

The Foreign Investment Agency emphasized that the continued rise in both new projects and capital expansion shows a deepening of trust in Vietnam’s economic stability and business environment, despite global headwinds.

As of May 31, 2025, Vietnam hosts 43,346 valid FDI projects, with total registered capital of USD 517.14 billion, and accumulated disbursed capital nearing USD 331.46 billion, or 64.6% of total commitments.

Meanwhile, outbound investment by Vietnamese businesses also increased significantly, with USD 317.3 million invested in overseas ventures, more than 2.3 times the amount in the same period last year. Key destinations included Laos, Indonesia, and the Philippines.

Fire Incidents in Hanoi Raise Concerns Over Electrical Safety Amid Scorching Summer

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Two separate fires broke out at apartment buildings in Hanoi this morning, both linked to electrical devices, sparking renewed concerns about fire safety as electricity usage surges during the ongoing heatwave.

The first incident occurred around 8:45 AM at the 14th floor of HH4A Linh Đàm, a 35-storey apartment building in Hoàng Mai District with nearly 2,000 residents. According to local authorities, the fire originated from the outdoor unit of an air conditioner placed on the balcony and quickly spread into the adjacent bedroom.

Upon hearing the fire alarm, residents evacuated via stairwells. Fortunately, the building’s fire safety team managed to extinguish the blaze before fire trucks from Hoàng Mai District arrived.

No injuries were reported, though the apartment sustained significant damage to furniture and belongings.

Roughly an hour later, another fire was reported at Eurowindow River Park, a 33-floor apartment tower located in Đông Anh District near Đông Trù Bridge. The fire started on the 19th floor of Tower A, reportedly from the bedroom area. Residents said the fire alarm did not go off, and evacuation only began after heavy smoke was visibly seen from the unit.

The local fire response unit managed to contain the fire before professional firefighters arrived. Again, no casualties were recorded, but the affected apartment suffered considerable property loss.

Authorities Urge Caution as Heat Intensifies

With summer temperatures climbing across northern Vietnam, electricity demand is peaking, particularly due to air conditioner use. Vietnam’s Meteorological Agency has issued warnings about increased fire risks in residential areas during the hot season.

Safety Tips for Foreign Residents in Hanoi:

  • Avoid overloading electrical circuits or using substandard power strips.
  • Place air conditioning units in well-ventilated spaces and keep them maintained.
  • Turn off electrical appliances when not in use, especially before leaving home.
  • Ensure smoke detectors and fire alarms in your apartment are functional.
  • Familiarize yourself with emergency exits and building evacuation procedures.

Vietnamese authorities are urging all residents—including foreign nationals living in Hanoi—to be especially vigilant about electrical safety and to report any malfunctioning fire safety systems to building management.

How to Set Up a Cryptocurrency Exchange in Vietnam

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Vietnam is preparing to open the door to regulated cryptocurrency exchanges—but only for well-capitalized, institutional-grade players. Here’s what foreign investors should know as the country prepares to launch a pilot digital asset trading platform.

At the Vietnam Investment Forum 2025 held on June 2, a senior official from the State Securities Commission (SSC) confirmed that Vietnam is set to pilot cryptocurrency trading platforms under a new draft resolution presented by the Ministry of Finance. The pilot aims to test the issuance and trading of digital assets in a regulated sandbox environment.

But for those looking to enter this space, the bar for entry is high—and purposefully so.

Minimum Capital Requirement: VND 10 Trillion (~$390 Million)

The proposed draft requires any company operating a digital asset trading platform to have a minimum charter capital of VND 10 trillion, equivalent to nearly $390 million. This figure is more than three times the capital needed to establish a commercial bank in Vietnam (currently VND 3 trillion) and 33 times that for starting an airline (VND 300 billion).

According to Mr. To Tran Hoa, Deputy Head of Market Development at the SSC, this high threshold reflects the multi-functional nature and inherent risk of digital asset platforms. These companies will not only manage trading operations but also handle custody, clearing, and payment services—all of which carry systemic financial risks.

Ownership Structure: Institutional Investors Only

The draft regulation also defines strict ownership rules:

  • 35% of the capital must be held by at least two institutional investors, such as commercial banks, securities firms, fund managers, insurance companies, or technology companies.
  • 65% of capital must be held by legal entities—individual ownership is not permitted.
  • This requirement ensures that only professional, well-managed organizations with sufficient risk management frameworks are allowed to participate.
Why the High Barrier to Entry?

Mr. Hoa emphasized that digital assets are inherently volatile and susceptible to financial crime, cybersecurity threats, and valuation uncertainties. Unlike traditional securities, there is currently no insurance infrastructure in Vietnam that covers losses from digital asset trading. Hence, exchange operators must have sufficient financial resources to cover losses or repay investors if necessary.

Additionally, platform operators may be permitted to invest in related areas such as infrastructure or other digital asset-linked ventures. Therefore, the government believes the VND 10 trillion requirement is justified.

Challenges for New Market Entrants

However, the capital requirement has drawn some criticism from industry experts. Ms. Doan Mai Hanh, Senior Director at Techcom Securities (TCBS), called the VND 10 trillion threshold “a significant challenge” for startups and smaller fintech firms. She also noted potential conflicts between different institutional shareholders and questioned whether the limited list of eligible investors gives an unfair advantage to existing financial institutions.

Ms. Hanh also urged policymakers to strengthen guidelines on cybersecurity, valuation standards, and risk controls—particularly during this experimental phase.

Sandbox Approach: A Path to Innovation

Vietnam’s approach reflects a “sandbox model” used in countries such as Singapore and the UK. It allows regulators to test real-world operations under strict oversight before formulating official policies. The pilot is seen as a critical step in evaluating the potential benefits and risks of a regulated digital asset market.

According to the Ministry of Finance, the pilot program is intended to support innovation while safeguarding the financial system and investor interests.

Growing Interest from Major Banks

Vietnamese financial institutions are closely watching the developments. At recent annual shareholder meetings, banks such as Techcombank and VPBank expressed readiness to participate in the crypto economy once a clear regulatory framework is in place.

Their interest suggests that Vietnam’s digital asset landscape could quickly mature once the legal environment stabilizes.

Key Takeaways for Foreign Investors
  • Regulatory framework is under development, with a pilot program expected soon.
  • VND 10 trillion (approx. $390M) minimum capital is required to operate a crypto exchange.
  • Only institutional investors may participate in ownership; individuals are excluded.
  • The regulatory sandbox will provide early-mover advantages to compliant players.

Vietnam’s approach balances financial innovation with risk control, creating potential opportunities for global institutional investors, fintech alliances, and digital asset infrastructure providers.

As Vietnam charts a cautious yet progressive path toward the digital asset economy, those who prepare early—and seriously—will be best positioned to lead when the market opens.

Vietnam’s Stock Market Rebounds Strongly: VN-Index Poised to Reach 1,500 Points

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Vietnam’s equity market is riding a wave of optimism, with experts forecasting a potential return to its historic peak of 1,500 points—driven by robust capital inflows, policy reforms, and easing trade tensions.

After weathering the recent shock from U.S. reciprocal tariffs, Vietnam’s stock market has made a strong comeback. On June 3, the VN-Index closed at 1,347.25 points, rising nearly 11 points in a single session to reach its highest level in over three years. Trading volume surged on the Ho Chi Minh Stock Exchange (HoSE), with liquidity up 23% from the previous session, totaling VND 22.89 trillion ($900 million).

Since hitting a bottom of 1,090 points in April 2025, the VN-Index has rebounded nearly 260 points—buoyed by bargain-hunting inflows and easing concerns over trade tariffs.

Analysts Set Bullish Targets: 1,500 Points Within Reach

The market’s recovery has fueled a wave of bullish sentiment. Several securities firms and financial experts are now forecasting that the VN-Index could surpass 1,500 points, assuming continued capital inflows and improved investor sentiment.

VNDirect Securities, in its latest strategic outlook, outlines three scenarios for 2025. Its base case targets 1,400 points, while the optimistic scenario projects the VN-Index could reach 1,520 points if Vietnam secures tariff concessions with the U.S. or pursues more aggressive monetary easing to stimulate growth.

VNDirect’s analysts note that the market’s P/E ratio has returned to around 12.9x—comparable to early 2025 levels and still attractive at a 16% discount to the 10-year average. Earnings per share (EPS) growth for listed companies on HoSE is expected to range from 12% to 17% this year, depending on tariff scenarios.

Maybank Securities Vietnam (MSVN) echoed this sentiment, emphasizing that a de-escalation in trade tensions and ongoing negotiations with the U.S. provide support for valuations. MSVN revised its VN-Index year-end forecast to 1,300 points (base case), 1,500 (best case), and 1,050 (worst case), with earnings growth projected at 7.7%–15.7% under various assumptions.

Industry Experts Weigh In

Mr. Duong Ngoc Dung, Deputy CEO and Chief Investment Officer of ROX Capital (a subsidiary of ROX Group), shared his optimistic outlook:

“I am confident the VN-Index could return to its peak of 1,500 points this year under favorable conditions—or early next year at the latest. Policy direction is clear, and now it’s about effective execution.” According to Mr. Dung, Resolution 68 and recent policy initiatives position the private sector as a key pillar of Vietnam’s economic strategy. With expected GDP growth of 8% or more from next year and the possibility of an MSCI or FTSE market upgrade, the ingredients for a market rally are in place.

Meanwhile, Nguyen Viet Duc, Head of Digital Sales at VPBank Securities (VPBankS), suggested the VN-Index could eventually climb as high as 1,900–2,000 points, citing long-term growth potential.

Key Catalysts Driving Market Momentum

Multiple developments have contributed to renewed investor optimism:

Trade Negotiations: Initial concerns over U.S. tariffs have subsided as Vietnam engages in structured, high-level talks to de-risk future trade disputes. The cooperative tone has laid a positive foundation for upcoming negotiations.

Pro-Growth Policies: Domestic stimulus measures—including expanded public investment and private sector support under Resolution 68-NQ/TW 2025—are expected to accelerate economic momentum and corporate earnings growth.

KRX System Launch: The long-awaited launch of the KRX trading system in May 2025 is a game-changer. It paves the way for modern features such as intraday trading, central clearing (CCP), and strengthens Vietnam’s case for a market upgrade to “Emerging Market” status by FTSE this September.

New Rules Supporting Foreign Investment: The State Bank of Vietnam recently issued Circular 03/2025/TT-NHNN, effective June 16, 2025, allowing foreign investors to open VND accounts for indirect investment. Analysts at BSC believe this, along with the Omnibus Trading Account (OTA) framework, will streamline foreign participation and accelerate market upgrading efforts.

Outlook

With improving macro fundamentals, robust corporate earnings forecasts, and supportive government initiatives, Vietnam’s stock market is increasingly viewed as a compelling destination for global investors.

As Mr. Dung of ROX Capital aptly noted, “If policy execution aligns with strategic intent, the stars may well be aligned for the VN-Index to reclaim—and surpass—its historic peak.”

Foreign Nationals, Business Leaders Among 141 Charged in Hanoi’s $111M Gambling Scandal

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Vietnamese authorities have officially charged 141 individuals — including foreign nationals, business leaders, and civil servants — in connection with a massive illegal gambling operation at the King Club, located in the Pullman Hotel in central Hanoi.

The Ministry of Public Security’s Security Investigation Agency has concluded its investigation and transferred the case to the Supreme People’s Procuracy. Charges of “organizing gambling” and “gambling” stem from illicit operations involving over $111.4 million, making this one of the most significant gambling busts in recent years.

Among those facing prosecution are three South Korean nationals and two Vietnamese executives, who have been charged with organizing illegal gambling activities. The remaining 136 individuals — all Vietnamese — are accused of participating in the gambling network.

An international arrest warrant has been issued for Kim In Sung, a South Korean national and director of HSDVNCO., LTD. Authorities say he fled Vietnam before the investigation was launched and allegedly pocketed $9.4 million in illegal profits.

The King Club, operated by Viet Hai Dang Investment and Entertainment Services Co., Ltd., offered electronic gaming activities in violation of Vietnamese law, which restricts casino-style gaming to foreign passport holders only. However, investigators say club managers and business leaders knowingly allowed 136 Vietnamese citizens to participate through unauthorized membership schemes.

Gaming options reportedly included slots, roulette, and baccarat. Vietnamese clients were recruited via personal networks or direct outreach and given access to the gaming floor with illicit membership cards.

Commenting on the case, Sophie Dao, Lawyer and Senior Partner at GBS, said: “This is a wake-up call for foreign investors and expatriates doing business in Vietnam. Vietnamese law clearly distinguishes between legal and illegal forms of entertainment, especially when it comes to gambling. Violating those boundaries — whether directly or through complicity — carries severe legal consequences.” She continued: “Foreign nationals working in Vietnam must understand that even passive involvement in prohibited activities, especially those linked to organized gambling, can lead to criminal prosecution and international arrest warrants. This case reinforces the importance of strict legal compliance and responsible business practices.”

Authorities say that digital forensics, testimony from participants, and data extracted from the club’s software system provided sufficient evidence to charge all 141 individuals. The club’s operations were reportedly conducted with full knowledge of the legal restrictions, yet continued due to the promise of high profits.

The scandal has triggered renewed scrutiny of Vietnam’s casino industry and sparked calls for tighter regulatory oversight of gaming activities targeting foreign visitors.

As the case progresses toward prosecution, legal experts warn that Vietnam is increasingly intolerant of illicit operations — regardless of nationality.

U.S. Presses Vietnam with Tough Trade Demands Amid Tariff Talks

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The United States has delivered a list of “tough and extensive” demands to Vietnam during ongoing trade negotiations aimed at avoiding sweeping tariffs of up to 46% on Vietnamese exports, according to sources familiar with the matter.

The demands, sent as part of an annex to a draft framework agreement by U.S. negotiators, include calls for Vietnam to reduce its reliance on Chinese industrial imports and exercise tighter control over its manufacturing supply chains, two sources told Reuters. These measures are reportedly intended to curb the indirect flow of Chinese goods into the U.S. via Vietnam.

The annex was sent to Hanoi in late May, following the second round of bilateral talks with Washington. While no public comment has been made by either government, insiders describe the U.S. requests as “challenging” and potentially disruptive to Vietnam’s economic structure.

A Delicate Balancing Act

Vietnam’s manufacturing sector — known for producing major global exports such as Apple electronics and Nike footwear — is deeply integrated with China’s industrial supply chain. Meeting Washington’s demands could strain this dependency and complicate Vietnam’s broader foreign policy goals, which aim to balance strong economic ties with both the U.S. and China, despite tensions over South China Sea sovereignty.

Experts suggest that such U.S. pressure may test Hanoi’s commitment to maintaining its dual-alignment strategy. “The U.S. wants real structural shifts, not just symbolic agreements,” one source said.

Trade Tensions and Transshipment Scrutiny

The renewed push by the U.S. comes amid broader efforts to recalibrate trade policy as part of the Trump administration’s intensified “reciprocal tariff” strategy. Vietnam is one of several countries engaged in active negotiations with Washington, alongside the EU, Japan, and India.

Since the U.S.–China trade war began in 2018, Vietnam has seen its exports to the U.S. nearly triple. However, this has been mirrored by a corresponding rise in imports from China, raising concerns in Washington that Vietnam is being used as a transshipment hub for Chinese goods trying to bypass U.S. tariffs.

There have been allegations that some goods exported from Vietnam were falsely labeled “Made in Vietnam” despite minimal domestic value added — allowing Chinese manufacturers to exploit the trade route. In response, Vietnamese authorities have cracked down on illegal transshipment, although recent trade data shows that both U.S.-bound exports and Chinese imports hit record highs as of April.

A Push for Real Commitments

Vietnam has made efforts to respond to U.S. concerns, including plans to purchase American aircraft and energy products, and signing non-binding deals on agricultural imports. However, sources say U.S. negotiators now want firm contracts — not just pledges.

A draft letter circulated by Washington, cited by Reuters, urges all negotiating partners to submit their best trade offers by Wednesday, ahead of the expiration of a 90-day tariff suspension period in early July.

Neither the U.S. Trade Representative nor Vietnam’s Ministry of Industry and Trade has commented publicly on the latest developments.

As the deadline approaches, observers say Vietnam faces a critical decision: whether to align more closely with U.S. trade expectations or risk higher tariffs that could affect billions in export revenue.

Trump Doubles Tariffs on Steel and Aluminum, Prompting Global Economic Concerns

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Vietnam Insider — The U.S President Donald Trump has officially doubled tariffs on steel and aluminum imports from 25% to 50%, according to a proclamation he signed on Tuesday. The new tariffs take effect immediately, with the United Kingdom being the only country exempt from the hike.

The tariff escalation has sparked renewed concerns about the global economy. The Organisation for Economic Co-operation and Development (OECD) warned Tuesday that the trade war is contributing to a global slowdown, with growth projected to hit its weakest pace since the COVID-19 pandemic.

In its latest outlook, the OECD downgraded growth forecasts for most G20 economies and emphasized that reducing trade tensions is essential to restoring investor confidence and maintaining price stability. “Countries need to lower trade barriers,” said OECD Chief Economist Álvaro Pereira. “Otherwise, the growth impact is going to be quite significant. This has massive repercussions for everyone.”

The warning comes amid increased pressure from Washington for trade partners to accelerate negotiations. The White House confirmed Tuesday that it has sent reminders to countries affected by Trump’s “reciprocal” tariffs, which are under a self-imposed 90-day pause set to expire in early July.

Despite promises of imminent trade agreements, the UK remains the only nation to have reached a deal so far. Tensions with other key trade partners, including China and the European Union, continue to rise.

On Friday, Trump accused China of “totally violating” its trade agreement with the United States. Beijing quickly countered the claim, accusing Washington of breaching the deal and vowing to defend its interests. Earlier this month, the two countries had agreed to temporarily ease tariffs, but that truce now appears increasingly fragile.

Meanwhile, the European Union criticized the latest tariff hike, calling it a setback for planned trade discussions. In a statement on Monday, the EU expressed “strong regret” over the U.S. move, warning it undermines efforts to resolve trade disputes constructively.

Adding to the uncertainty, the legality of Trump’s broader tariff policy remains in question. A federal appeals court recently allowed the tariffs to stay in place temporarily, just one day after the U.S. Court of International Trade ruled the implementation method was unlawful.

However, White House officials signaled that the administration may pursue alternative legal strategies to sustain the tariffs.

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