Vietnam tech & business
Ho Chi Minh City's chairman Nguyen Van Duoc has ordered officials to investigate why more than 38,800 businesses withdrew from the market in the first seven months of the year, a figure significantly higher than the number of newly registered firms, according to Vietnamnet. The scale of the exodus from Vietnam's largest commercial hub has drawn wide public attention, as reported separately by 24h.com.vn, which noted the near 39,000 closures occurring in just seven months. The instruction comes as the city continues to post double-digit growth in several economic indicators, raising questions about whether the business exit wave reflects deeper structural strain beneath the headline growth figures, including administrative burdens, credit access difficulties, or sector-specific pressures following the recent merger of Ho Chi Minh City with neighboring provinces. City authorities have not yet detailed which sectors are most affected or whether the trend is concentrated among small traders, household businesses transitioning to formal enterprises, or established companies. The review is expected to feed into policy responses as Vietnam pursues an ambitious double-digit GDP growth target, a goal that depends heavily on a resilient domestic business base rather than FDI alone.
A net business contraction in Vietnam's commercial capital undercuts the government's double-digit growth narrative and signals that SMEs are struggling despite recent central bank rate-cut mandates. Bank lending officers, SME owners, and city-level policymakers should watch for the findings, which could trigger new local tax, credit, or administrative relief measures.
Vietnam tech & business
VinFast, Vietnam's leading electric-vehicle maker under Vingroup, announced on August 15 a strategic memorandum of understanding with Indonesian automotive group Gowa Motor Group to establish a joint venture dedicated to building out VinFast's dealership network across Indonesia. According to CafeF, the two companies will jointly develop a nationwide distribution system with a target of at least 30 new showrooms and service centers, adding to VinFast's existing network of more than 40 showrooms already operating in the country, with the partnership expected to help toward an overall goal of over 150 additional showrooms. Gowa Motor Group brings experience across vehicle distribution, dealership operations, and passenger and commercial vehicle sales in Indonesia, and its leadership described the tie-up as reflecting a shared commitment to accelerating the country's shift toward green transport. The deal marks the latest step in VinFast's push into Southeast Asia's largest electric-vehicle market by population, following earlier moves such as commissioning an assembly plant in Subang, launching an e-scooter lineup, and signing dozens of smaller dealer and service-outlet agreements with local partners over the past two years. The joint-venture structure signals a deeper, longer-term commitment than VinFast's previous MOU-based dealer partnerships, as the company looks to convert its early market entry into a durable retail and after-sales footprint ahead of intensifying EV competition in Indonesia.
Who Should Care About VinFast's Indonesian Expansion?
This joint venture news matters directly to:
⚬ Automotive Investors: Tracking VinFast’s aggressive push and capital commitments in Southeast Asia's largest EV market.
⚬ EV Competitors (BYD, Hyundai): Monitoring increasing dealership density as VinFast targets 150+ new Indonesian showrooms.
⚬ Indonesian Consumers: Gaining wider access to EV options and standardized after-sales support networks.
⚬ Local Auto Retailers: Observing shifts from traditional dealer agreements to durable joint-venture retail models.