Vietnam

Intelligence for Better Decision Making

Global Interest Rate Dynamics: Unfolding Economic Strategies and Proposals
Feb. 14, 2025 | Indirect Indicator

In Ho Chi Minh City, the Real Estate Association (HoREA) has proposed initiatives aimed at supporting young homebuyers between the ages of 18 and 45 by offering loans at an interest rate of 6-7% annually.

This proposal is part of a broader effort to stabilize the real estate sector while promoting the development of social housing. As part of these efforts, HoREA has suggested reducing loan interest rates to 4.7% for low-income households by 2025, facilitated by the Vietnam Bank for Social Policies. The current rate of 6.6% is seen as burdensome for these families. To support the national target of creating one million social housing units by 2030, HoREA is advocating for concentrated efforts on affordable housing and is recommending tax incentives for companies involved in social housing rentals. Proposed amendments to the Value-Added Tax Law and Corporate Income Tax Law are also intended to ensure a steady supply of affordable housing in the future.

A February 13, 2025, survey by VnExpress unveiled shifts in bank interest rates at the start of the year. While smaller banks like Kienlongbank and BVBank have increased their rates, BacABank and NCB have opted to decrease theirs. Meanwhile, larger banks have maintained their existing savings interest rates, with five prominent banks continuing to offer 6% or higher for deposits with a 12-month term. TPBank anticipates stabilization or a slight rise in mobilization interest rates, attributed to a strong USD and pressure on exchange rates, forecasting minor increments of around 0.2-0.25%.

The Vietnamese Prime Minister has called upon banks to curtail their profit margins to facilitate lower lending rates, aiming to support the country's ambitious economic growth target of over 8% for the year. Notably, the previous year saw lending rates decrease by 1.24% from 2023. With adequate liquidity in the credit system to meet the economy's capital demands, banks are encouraged to reduce costs, thereby further promoting economic growth through lower lending rates.

In the United Kingdom, Chancellor Rachel Reeves plans to adhere to fiscal guidelines set by the Office for Budget Responsibility, with an optimistic growth forecast of 1.5% for 2025, outperforming the Bank of England’s projections. Despite setbacks in business and consumer confidence and a slowdown in GDP growth, the National Institute of Economic and Social Research (NIESR) predicts that fiscal stimulus stemming from last October's budget will bolster the economy. Inflation is expected to decrease to 3.7% by the third quarter and reach the 2% target by 2027, opening the door to potential interest rate cuts by the Bank of England.

Former US President Donald Trump recently posited on Truth Social that interest rates should be cut to match prospective import tariffs. In contrast, Federal Reserve Chair Jerome Powell has stressed that there is no immediate need to reduce rates, underlining the Fed’s commitment to making decisions based on economic conditions rather than political influences. The Fed has opted to keep rates unchanged due to current economic indicators not necessitating a shift. The US Bureau of Labor Statistics reported a surprising rise in the consumer price index for January, with a year-over-year increase of 3% and a core CPI rise of 3.3%. These figures suggest that the Fed might hold the current rates at the forthcoming meeting, with substantial cuts unlikely until September, maintaining a focus on inflation trends and economic stability. Powell has reiterated the Fed's dedication to its mandate, including the oversight of the Consumer Financial Protection Bureau's ongoing role post-2008 crisis.
Traffic Disruptions and Road Sign Confusion Impacting Ho Chi Minh City and Beyond
Feb. 14, 2025 | Indirect Indicator

Recently, a traffic incident on National Highway 1 near the Thu Duc agricultural wholesale market caused a significant disruption.

A collision between a four-seat car and a container truck carrying agricultural products occurred around 9:30 p.m. The accident involved a vehicle traveling from Di An, Binh Duong, to Ho Chi Minh City, leading to lane blockage during peak delivery hours. Damage to both vehicles, coupled with the 5 km traffic jam stretching from the Song Than overpass to the Binh Phuoc intersection, resulted in considerable delays. By midnight, the congestion persisted, especially at the Go Dua overpass, where road narrowing further impeded movement.

In Ho Chi Minh City, National Highway 1 comprises three segments: a 21 km stretch from Thu Duc to An Suong, over 14 km from An Suong to An Lac, and 9.4 km from An Lac to the Long An border. These segments will be renamed Do Muoi, Le Duc Anh, and Le Kha Phieu by the end of 2024. Meanwhile, drivers on National Highway 1A in Ha Tinh Province have been facing confusion due to inconsistent speed limit signage, particularly in Cam Xuyen and Ky Anh districts. In Tan Tho village, for example, two side-by-side signs indicated a 60 km/h limit, with one specifying restrictions for passenger cars and trucks, prompting misunderstandings among drivers.

Addressing this issue, the Road Management Office II.3 acknowledged problems with road signs for trucks and passenger cars, which had become deteriorated or loose. Inspections and repairs were carried out, and as of February 12, updates were made to clarify the 60 km/h speed limit for these vehicles to enhance safety and understanding.

Furthermore, a separate incident on National Highway 15D in Dung Van Nhat saw a timber truck overturn on February 12 at 16:40, causing a 15-hour traffic congestion. The truck, loaded with timber and traveling from Quang Tri to the La Lay international border gate, blocked both directions and brought traffic to a standstill. Local authorities, led by Nguyen Xuan Linh, managed traffic and worked diligently to clear the obstruction. The highway was projected to reopen fully by 11:00 the following day. This highway is vital for linking Quang Tri with the La Lay border gate and serves 150-200 trucks and numerous passenger vehicles daily over its 78 km length.

Monitored Intelligence for Vietnam - Feb. 14, 2025


News
Media
181

Government
Releases
24

City/State
Releases
7

Embassy
Releases
0
Foreign
Service
Advisories
0
Academic/
Think
Tank
4


Podcasts
0


Videos
0

Social
Media
0

Business
Releases
9

Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.

Risk Categories Reported on Today

Risk Category
Items Reported On
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5
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5
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1
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5
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1
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1
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6
Regulatory Enforcement Actions
2
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Erudite Risk also includes operations categories so you can monitor the environment for better decision making. Everything is tied together--what happens in risk affects operations and what happens in the market impacts risk profiles.

We categorize key intelligence into one of 30 different operations intelligence categories.

Different roles and functions within the organization can monitor different key issue areas. HR may monitor employment, wages, regulations, labor and management relations, etc., while P&L leaders may monitor overall developing trends.

Operations Categories Reported on Today

Operations Category
Items Reported On
Taxes
2
Political Policy Resistance
1
Real Estate
3
Asset Price Change
3
Trade Issues and Numbers
9
Economic Growth
3
Investor Sentiment
1
Tech Development/Adoption
2
Operating Results
1
Energy Prices
1
Mergers & Acquisitions
1
Bankruptcy-Insolvency
1
Wages and Compensation
1

Doanh nghiệp vận tải lo bị phạt qua thiết bị giám sát hành trình

Transport businesses worry about being fined through journey monitoring devices

VN Express | Local Language | News | Feb. 14, 2025 | Regulation

Transport businesses in Vietnam are concerned about new regulations allowing traffic police to impose fines based on data from journey monitoring devices starting January 1, 2025. The Law on Road Traffic Safety and Order permits law enforcement to utilize these devices, along with other technologies that record driver images, to detect violations. Transport directors, like Mr. Hoang Minh, fear that issues such as inadequate infrastructure and traffic congestion could result in unjust penalties for drivers.


Industry leaders argue that current driving time regulations fail to account for practical challenges, including traffic jams that delay reaching rest stops. Many journey monitoring devices are outdated and often experience data transmission problems, leading to discrepancies in mileage reports. For instance, logistics director Mr. Hung noted that his company's device reported a different distance than what was communicated to authorities, complicating compliance and risking inaccurate fines.


In light of these challenges, the Vietnam Automobile Transport Association has called on the government to reconsider penalties based on journey monitoring device data. They propose that penalties be directed at businesses for device management failures, rather than penalizing driver actions. The association also recommends extending permissible weekly driving hours for commercial transport to align with standards in the US, EU, and Japan, and advocates for standardized measurements for journey monitoring devices prior to their enforcement use.

Samsung sẽ đầu tư AI, bán dẫn tại Việt Nam

Samsung will invest in AI and semiconductors in Vietnam

VN Express | Local Language | News | Feb. 14, 2025 | UndeterminedTech Development/Adoption

Samsung, the largest foreign direct investor in Vietnam, has invested $23.2 billion, with reported revenue of $62.5 billion and exports of $54.4 billion in 2024. The company has established a network of over 300 domestic suppliers over its decade-long presence in the country. During a meeting on February 12, Samsung Vietnam's leadership announced plans to invest further in artificial intelligence, semiconductors, and digital transformation.

Prime Minister Pham Minh Chinh affirmed the government's support for Samsung’s investments, emphasizing the company's vital role as a strategic investor to enhance supporting industries and drive innovation. He outlined Vietnam's target of at least 8% growth by 2025, aiming for double-digit increases thereafter, and stressed the need to improve the investment climate to achieve these goals.

Chinh also advocated for collaboration between Samsung and Vietnamese ministries to set up training centers at the National Innovation Center and expand research and development initiatives. He encouraged Samsung to involve Vietnamese leadership in its operations and partner with local firms to strengthen their capabilities, ensuring their inclusion in Samsung's global supply chain. Increased cooperation to integrate Vietnamese digital technology companies into Samsung's ecosystem was also emphasized.

Vietnam: New regulation on Consumer Rights Protection and the Creation of Responsibilities of Big Digital Platforms

One Asia Lawyers | English | AcademicThink | Feb. 14, 2025 | Regulation

Vietnam is set to enforce new regulations on consumer protection and digital platform responsibilities starting July 1, 2024. The Law on Protection of Consumers Rights and Decree No. 55/2024/N-CP aim to boost transparency, accountability, and compliance in the expanding e-commerce sector. Businesses must adapt to maintain trust, ensure legal compliance, and stay competitive in this evolving market.

Decree No. 55/2024/ND-CP specifies requirements for standard form contracts and transaction conditions, increasing the criteria from two to five. Management has transitioned from the Ministry and Department of Industry and Trade to consumer protection authorities. Businesses are also required to register before consumers make advance payments and disclose contract details, a step absent in earlier regulations.

The decree assigns specific obligations to large digital platforms, mandating them to disclose criteria for product visibility and paid content. They must maintain online reporting systems, provide timely information for inspections, and oversee local and foreign sellers. Notably, consumer protection law violators will be publicly identified, enhancing transparency in the digital marketplace.

These regulations are essential for organizations to navigate e-commerce complexities while safeguarding consumer rights. By complying with Decree No. 55/2024/N-CP, businesses can improve their reputation and competitive position within Vietnam's digital economy.

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