Kenno Vietnam Pulse | March 2025
As Vietnam continues to thrive among Asia’s top destinations for foreign investment, we remain committed to keeping our global audience informed about key developments through the Kenno Vietnam Pulse series.
In March, Vietnam introduced several key macro initiatives—ranging from enhanced public investment and trade diplomacy to administrative reforms—that signal a supportive environment for domestic consumption and long-term capital formation. The country also expanded business collaborations with the U.S. and entered the final preparation phase for the launch of its new securities trading system, KRX.
Macroeconomic Highlights
Accelerating Public Investment
In response to a modest disbursement rate of 72.9% in 2024, the Vietnamese government has taken a more hands-on approach to public investment. Task forces led by Deputy Prime Ministers have been deployed to oversee the implementation of major infrastructure projects and ensure more efficient capital deployment.
The 2025 public investment budget has been increased by 37.7% to VND875 trillion (~USD 35 billion), reflecting the administration’s intent to stimulate economic activity through infrastructure development. Priority will be given to nationally significant projects such as the North-South Expressway and Long Thanh International Airport. This renewed commitment is expected to enhance Vietnam’s long-term competitiveness and improve the investment environment, particularly for sectors aligned with domestic consumption and logistics.
Data: Vietnam Ministry of Finance
Reducing Tariff Exposure
To address trade imbalances and reduce the risk of U.S. tariffs, Vietnam is actively pursuing trade diplomacy and tariff adjustments. Recent announcements point to significant reductions in import tariffs on U.S. products, including liquefied natural gas (from 5% to 2%), automobiles (from 45%–64% to 32%), and ethanol (from 10% to 5%). The policy recalibration signals Vietnam's strategic commitment to maintaining favorable trade relations with the U.S., one of its key export destinations.
Data: U.S. Census
New Deals Worth USD 4 Billion in US-Vietnam Energy Sector
During a March visit by Vietnam’s Minister of Industry and Trade to the U.S., several major energy-sector agreements were signed between Vietnamese firms and U.S. partners, totaling over USD 4.15 billion. These include LNG purchase deals, technology cooperation on sustainable fuels, equipment supply for gas power plants, and expanded ethanol imports.
PV Power and GE Vernova sign MoU on services and equipment supply.
Photo: Vietnam News Agency
We believe these deals support Vietnam’s long-term energy security and demonstrate U.S. confidence in the country’s energy infrastructure outlook—potentially benefiting industrial and logistics sectors. They also represent a concrete step in Vietnam’s broader strategy to reduce its trade surplus and mitigate tariff risks with the U.S.
KRX Stock Trading System Rollout on Track
Latest updates from the Vietnam Exchange indicate that the country’s new stock trading system, KRX, is set to go live on May 5th, 2025. The new system will resolve current order-matching limitations and introduce features such as same-day (T+0) trading, short selling, options contracts, and a central counterparty clearing system.
Vietnam's KRX stock trading system set for mid-2025 launch.
Photo for illustration.
This major IT upgrade is expected to enhance market efficiency and attract more institutional investors. With Vietnam now meeting most of FTSE Russell’s criteria, the KRX rollout is considered a pivotal step toward the country’s anticipated Emerging Market upgrade, expected in September 2025. At Kenno, we expect this to positively impact select portfolio companies such as FPT, MSN, MWG, and VRE.
Increased US Corporate Interest in Vietnam
From March 18–20, more than 60 U.S. companies—including Apple, Amazon, Boeing, and Intel—joined the US-ASEAN Business Council’s mission to Vietnam. Delegates met with senior government leaders to explore investment opportunities across sectors such as manufacturing, energy, digital infrastructure, and logistics.
Vietnam PM welcomed U.S. delegates at the Vietnam Business Mission 2025.
Photo: US-ASEAN Business Council
This marked the largest-ever U.S. business delegation to Vietnam, demonstrating long-term commitment and American business interests in the country. The mission highlights the close collaboration between the Vietnamese government and U.S. companies, reinforcing Vietnam’s role as a strategic partner in global supply chains and a promising consumer market.
Vietnam to Merge 63 Administrative Provinces into 34
Vietnam has announced a proposal to consolidate its 63 provincial-level administrative units into 34, aiming to align governance structures with urbanization and economic development. The reform seeks to improve public service delivery, reduce bureaucratic redundancy, and optimize resource allocation.
In the short term, the merging process may disrupt local administration, including temporary delays in licensing, land use approvals, and public investment disbursement—especially in affected provinces. However, we anticipate that over the long run, this structural reform will enhance administrative efficiency, support coordinated regional planning, and strengthen Vietnam’s institutional framework.
Stay in the know!
And that’s a wrap for this month’s edition of Kenno Vietnam Pulse. We hope you enjoyed reading and found valuable insights into Vietnam’s market landscape. Feel free to subscribe to our monthly newsletter more timely, factual, and actionable updates. If you would like closer look at investment opportunities in Vietnam, we invite you connect with us for more information and tailored advice.
Laura Ranin
Disclaimer:
This document is prepared by Kenno Asset Management Pte. Ltd. ("Kenno"), the investment manager for the Asia Top Picks Fund which is open only to professional investors. This marketing communication does not constitute investment advice. Please refer to Kenno’s official fund documents before making any final investment decision. The information provided in this document is accurate as of the time of writing. Kenno does not guarantee the ongoing accuracy or completeness of this information and is not responsible for updates or changes after publication.