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Oct 22, 2026

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State Bank Orders Deposit Rate Cuts, Threatens Credit Quotas

The State Bank of Vietnam has told commercial banks that they need to reduce average deposit rates by at least 0.5 percent. Official Dispatch No. 9736 applies to new deposits of six months or longer, and the difference will be measured versus each bank's rates as set from October 11 to 20. The central bank says that it will be tracking average rates on new transactions through its reporting system for the rest of 2026. Nearly 20 banks have already cut their deposit rates, most by the demanded 0.5 points. Fourteen have also announced lending cuts, those rates have generally been reduced by 1.5 to 2 points.

Read more: Vietnam News (loan-deposit gap), Tuoitre (bank credit packages)

Hung Wants 10% Growth for 2027

Prime Minister Le Minh Hung has once again reminded lawmakers that Vietnam needs to be working toward GDP growth of at least 10% for FY 2027. It also wants to see GDP per capita of $6,100, labor productivity growth of 8.6% and consumer price growth in the neighborhood of 4.5%. GDP managed 9.95% growth in Q3 and 9.01% over the whole of Q1-Q3. Hung promised action to lower lending rates (see previous story) and steer credit toward exports, science & technology, and smaller businesses. Estimates for full-year foreign trade stand at $1.11 trillion, which would be the first time the number is able to clear a full $1 trillion.

PNJ Now Expects VND6.2 Trillion Loss

Phu Nhuan Jewelry (PNJ) is now saying that it expects a VND6.2 trillion loss for 2026 which is a brutal thrashing when compared to its previous forecast for a VND3.4 trillion profit. Most of the swing is the result of VND7.1 trillion in provisions for potential trade-in losses. Requests to resell or exchange jewelry have skyrocketed since a diamond smuggling case involving a former director of PNJ Lab came to light. Chairwoman Cao Thi Ngoc Dung says that none of the diamonds entered PNJ's business system, but that doesn’t seem to be having the calming effect hoped for. Share are down 68 percent since early July.

Read more: Vietnam News (revenue cut), Ww Fashionnetwork (share issuance)

Denmark is EU Comprehensive Strategic Partner

Denmark has become the second EU member to hold a Comprehensive Strategic Partnership with Vietnam. General Secretary To Lam and Prime Minister Mette Frederiksen adopted the joint statement in Copenhagen, upgrading their previous “Green Strategic Partnership” of 2023. Offshore wind is the primary commercial ask. The General Secretary wants Danish help with green finance and renewables projects along Vietnam’s 3,200+ kilometer coast. Copenhagen Infrastructure Partners and Petrovietnam have also come to an agreement on a planned ~1,000 MW offshore wind project in the South Central region.

Read more: VnEconomy (EVFTA commitment), VnExpress (university campus), VnExpress (second EU partner), Scandasia (CIP agreements)

Corporate Bond Issuance Drops 26%, Yields Up

Vietnam's corporate bond issuance was down more than a quarter to 26 percent in Q3 versus Q2 and yields rose across the board. Companies were able to raise VND179.4 trillion ($6.93 billion), however, which was 7.8 percent more than did in the year earlier. Real estate issuance was down 55 percent. In the quarter, Vingroup took in VND16 trillion (down from Q2’s VND61 trillion), and Masterise held at VND23.5 trillion. The two groups typically make up as much as 80 percent of the property' sector’s issuance. Public offerings hit a record VND31.6 trillion; banks were behind half of the 16 deals. Outstanding corporate bonds were reported at about VND1,540 trillion at the end of September.

EFTA Deal Scraps Duties on Norwegian Salmon

Norwegian salmon is going to be able to be imported into Vietnam duty-free once Hanoi's trade deal with Norway, Switzerland, Iceland and Liechtenstein comes into effect. The current tariff is between 10 to 15 percent. Mackerel duties will go to zero over three years. About half of Norway's exports to Vietnam will become tariff-free on day one, and more than 98 percent of products will hit that floor within seven years. Vietnamese seafood exporters selling the other way need to meet product-specific rules of origin to qualify for lower tariffs. VASEP, the seafood exporter’s association, warns that Norwegian and Icelandic seafood could sharpen competition in Vietnam's premium restaurant, hotel and modern retail markets.

Read more: Vietnam News (supply-chain implications), VnEconomy (2023 salmon imports), SeafoodSource (signing ceremony)

HRW Finds No Independent Unions Despite Promises

Human Rights Watch says independent trade unions do not exist in Vietnam, despite labor law changes that were made in 2021. The HRW report says no regulatory framework makes allowances for them form, and that vague laws against dissent mean people who organize outside of state control often find themselves in jail. Hanoi has told trading partners, including the EU and EFTA, that the 2021 reforms allow workers to organize and that thousands of grassroots unions exist, but HRW says the only legal unions are under the Vietnam General Confederation of Labor, which the Communist Party controls. Party officials choose or approve those leaders, and its budget comes from the government and from mandatory fees that employers and workers are compelled to pay.

Read more: Human Rights Watch (political prisoners), Eurasia Review (HRW recommendations)

Alstom Bags Vingroup Order for Hanoi Metro Trains

Vingroup has secured a $897 million order with Alstom to supply Metropolis trains for Hanoi's new metro lines. Alstom hasn’t said how many trains the order represents, but this order is part of a larger 200-train agreement. Alstom is expected to build up to 83 of the trains in Valenciennes, France, and Vingroup plans to assemble the rest in Vietnam from Alstom components under a technology license. The driverless five-car trains are planned for lines that Vingroup unit Vinhomes started construction on in June. Hanoi already has two operational metro lines, but the new routes will total 303.5 kilometers, including a connection to Noi Bai airport. They’re due to be finished in 2030.

Read more: VnExpress (Hoa Lac route), Tuoitre (Q3 booking)

Petronas and Petrovietnam Sign Alliance

Petronas and Petrovietnam have agreed to a Strategic Alliance Agreement for exploration, LNG supply, downstream work, renewables and carbon capture. The PM3 area, on the Vietnam-Malaysia maritime boundary, is estimated to hold 60 million barrels of oil equivalent in its remaining reserves. The contract for that area has been reported by some to have been extended 20 years to 2047; but other reports say it’s (so far) only a framework for the extension. Petronas has delivered its first LNG cargo to PV GAS. A Vietnam-Malaysia-Singapore renewable power link, which Petronas is joining, is still at the cooperation-development stage.

Read more: Vietnam Investment Review (PM3 extension), Vietnam News (energy security), Tuoitre (Hormuz risk)

FM Picks Five Crypto Exchanges, Licenses None

None of the five companies picked for Vietnam's pilot cryptoasset exchange program has an operating license yet, despite their apparent vetting by the Finance Ministry in cooperation with the Ministry of Public Security and the State Bank. Each of the companies was required to show at least VND10 trillion (about $386 million) of charter capital, working IT systems and compliance with operating standards. Vietnamese crypto participation is one of the highest in the world, reaching $122.2 billion over the past year. The “chosen” firms will have one year from receiving their initial-stage certificate to meet any outstanding requirements.

VN Buget Arm Eyes Up To 25 A321neos

Vietnam Airlines is asking lessors to find them between 20 and 25 Airbus A321neos in a 240-seat configuration to allow them to get back to the low-cost market as early as 2027. The flag carrier is still trying to offload its stake in Pacific Airlines, the existing low-cost unit and already has 50 Boeing 737-8s on firm order for delivery from 2030 to 2032.

Draft Plan Offers 5-Year Tax Exemption for Talent

A draft National Assembly resolution would give talented individuals and their associates a five-year, 100 percent exemption from personal income tax on salaries and bonuses. It will apply to Vietnamese citizens, overseas Vietnamese and foreign nationals. Businesses in every economic sector could take part, including on tasks that use no state budget money. Degrees, titles and seniority would not be required, except where the law demands qualifications to practice a profession. The government would set criteria for each sector and locality. No timeline was given.

Forestry Department Publishes Map for EU Rules

Vietnam's forestry department has published a map of the country's forests as of 2020 for timber, coffee and rubber exporters. EU deforestation rules require proof that products are not connected to any deforestation or forest degradation in the period since December 31, 2020, so the map can be used for cross-checking, but will not be used to enforce compliance. Exporters are expected to have traceability documents and other supporting evidence.

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