Mekong Memo Vietnam 20230824

Mekong Memo Vietnam Weekly, August 24, 2023: Business, politics, finance, trade & legal headlines.

We monitor and filter the very best and most insightful business stories from Southeast Asia directly to your inbox every week.

By reviewing a wide variety of media including legal, financial and other relevant industries along with government and NGO sources, we are able to sift through the noise and bring you only what we believe to be relevant to an informed observer of Vietnam business news.

The Memo is published weekdays - Cambodia (every Monday), Myanmar (Tuesday), Laos (Wednesday), Vietnam (Thursday) and Thailand (Friday). The Thailand edition is free in its entirety; the others are headlines-only for non-paid subscribers.

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With that said, here is your Mekong Memo Vietnam for the week of August 24, 2023:

Headlines:

Vietnam: A Frontier Market to Watch

Infrastructure Shortcomings Jeopardize Geoeconomic Goals and Regional Relations

Foreign Investors Lead Real Estate M&A Activity

Real Estate Market Faces Challenges Amid Economic Strains

High Logistics Costs Impede Economic Competitiveness

Vietnam Plans to Establish Specialized Intellectual Property Courts

Thailand and Vietnam Target $25 Billion in Bilateral Trade

Air Cargo Market Lags Behind Regional Competitors Despite Potential

Major Shoemaker for Global Brands Announces Third Round of Job Cuts

UK-VN Free Trade Agreement Fuels Export Growth and Investment Opportunities

VN Emerges as New Hub for Rare Earth Magnet Production Amid Sino-U.S. Tensions

New E-Visa Policy Aims to Boost Tourism and Attract Global Investment

ASEAN Seeks East Asian Support for Regional Electric Vehicle Ecosystem

Vietnam Mulls Streamlining Work Permit Process for Skilled Foreign Workers

Ballroom Culture: A Beacon for the LGBTQ Community

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Vietnam: A Frontier Market to Watch

Vietnam is poised for a significant consumer boom, making it a frontier market worth investors' attention, says T Rowe Price's Johannes Loefstrand. The country's middle-class population is expected to surge from 6 million to over 75 million by 2030. Despite facing economic challenges, Vietnam offers long-term structural advantages like youthful demographics, low labor costs, and modest debt. Loefstrand's fund, heavily invested in Vietnam, has outperformed the Frontier Market sector average, emphasizing the market's low correlation to both emerging and developed markets.

Source: Citywire

Infrastructure Shortcomings Jeopardize Geoeconomic Goals and Regional Relations

Vietnam's delayed progress on the Vientiane–Vung Ang railway project, aimed at connecting Laos to Vietnam's seaport, highlights the country's broader infrastructure challenges. These delays not only undermine Vietnam's geoeconomic ambitions but also risk its regional competitiveness and special relationship with Laos. While China has successfully completed its Kunming-Vientiane railway, Vietnam's inability to advance its own infrastructure projects could have long-term implications for its geopolitical standing and economic growth.

Source: The Diplomat

Foreign Investors Lead Real Estate M&A Activity

Foreign investors, primarily from Singapore, South Korea, and Taiwan, have dominated Vietnam's real estate M&A market, contributing $1.4 billion in the first seven months of 2023. Despite a 62% year-on-year drop in the overall M&A market value, 92% of real estate M&A buyers were foreign entities. Legal complexities have slowed the pace of deals, increasing both time and costs. The market anticipates more activity in this sector starting 2024.

Source: VNExpress