Vietnam

Vietnam Net - E | English | News | Jan. 22, 2025 | UndeterminedBizdev-Partnering

Vietnam is ramping up imports from the United States to stimulate economic growth and reduce its trade surplus. This move is part of a strategic partnership highlighted by billionaire Nguyen Thi Phuong Thao’s recent significant deal for Vietjet, which includes purchasing Boeing aircraft. At the "Friends of Vietnam Summit" before President Trump's return to the White House, Thao connected with global partners to strengthen economic ties.

Vietjet's order of Boeing aircraft is expected to boost bilateral trade and enhance aviation connectivity in Vietnam. The company has confirmed a deal for 14 Boeing 737 Max deliveries slated for 2025, building on a prior agreement of 100 planes from 2017. Valued at approximately $20 billion, this order is a landmark moment in Vietnam’s aviation history and represents Asia's largest Boeing 737 Max order.

In 2024, Vietnam's imports from the US surpassed $15.1 billion, reflecting a 9.4% increase from the previous year. Key imports featured electronics, machinery, animal feed, and raw plastics, while cotton and chemical imports declined. To address the substantial trade surplus of $104.4 billion in 2024 and to avoid risks of being labeled a currency manipulator, Vietnam is increasing imports of essential goods and partnering with major US companies.

Vietnam Net - E | English | News | Jan. 22, 2025 | Regulation

Vietnam's B2C e-commerce market was valued at $25 billion in 2024, facing challenges in regulatory enforcement related to online transactions. Authorities struggle to trace warehouses or sellers involved in misconduct due to inadequate electronic identification and lack of comprehensive oversight, resulting in fraud and tax evasion. Consumers experience issues with transparency regarding product details, seller information, and dispute resolution.

To address these challenges, the Ministry has proposed new regulations for cross-border e-commerce. These regulations aim to clarify e-commerce business models, outline participant responsibilities, and enhance oversight. The draft law mandates that sellers using intermediary platforms verify their identities according to electronic identification standards, providing essential information like names, addresses, and tax codes.

The proposed regulations require businesses engaged in cross-border e-commerce to obtain permits from the Ministry of Industry and Trade and establish representative offices in Vietnam or appoint local legal representatives. These representatives will verify foreign sellers and compensate buyers in case of misconduct. Despite existing guidelines, the Ministry asserts these regulations are inadequate, as many cross-border platforms operate without official legal compliance, creating an uneven competitive landscape against domestic entities.

Ngân hàng Trung ương Nhật Bản sẵn sàng tăng lãi suất cao nhất trong 17 năm

24H | Local Language | News | Jan. 22, 2025 | UndeterminedEconomic Growth

The Bank of Japan (BOJ) is expected to raise interest rates to their highest level since the 2008 financial crisis, signaling a monetary policy shift amid uncertainties related to Donald Trump's upcoming policies. The increase in short-term rates from 0.25% to 0.5% is aimed at stabilizing the economy and achieving a 2% inflation target, representing the first rate hike since July that previously surprised global markets. Positive wage growth and stable inflation expectations, as noted by Governor Kazuo Ueda and board members, have influenced this decision.

While the rate hike is likely, external risks—particularly from Trump's trade and economic policies—could destabilize financial markets. Domestic challenges, including Prime Minister Shigeru Ishiba's struggles with budget approval and the upcoming upper house elections in July, may also affect the BOJ's decision-making.

The anticipated rate rise aims to combat prolonged low inflation, though it might raise borrowing costs, impacting both businesses and consumers. Past rate hikes in 2006-2007 serve as reminders of the dangers posed by slowing economic growth and potential deflation, urging the BOJ to proceed with caution. Market reactions have already begun, with the yen strengthening and an 80% probability of the rate hike already priced in. Investors remain focused on future rate hike signals following the meeting, while the uncertainty surrounding Trump's policies looms over global financial markets.