Vietnam Roundup: Inflation, death sentence, air travel, missing tourists

Death sentence

A Vietnamese court has upheld the death sentence of property tycoon Truong My Lan, chairwoman of Van Thinh Phat Holdings, due to her involvement in the country's largest financial fraud case, involving $12 billion embezzled. The court stated her life could be spared if she returns 75% of the embezzled amount. At 68, if she turns 75 before execution, her sentence could automatically be commuted to life in prison. Bangkok Post reports that Lan's actions have caused significant societal and economic repercussions. Despite her claims of remorse and partial repayment, prosecutors deemed them insufficient. Lan has the right to request a retrial. Her arrest in 2022 triggered a run on Saigon Joint Stock Commercial Bank, leading to a $24 billion rescue by the central bank. Additionally, she received a life sentence in a separate trial for fraud and money laundering.

Singapore investments

National Assembly Chairman Trần Thanh Mẫn met with leaders of major Singaporean corporations during his official visit to Singapore on December 3. He praised Keppel's contributions to Vietnam's infrastructure, real estate, and renewable energy sectors and expressed support for the company's investment expansion in sustainable development areas. Mẫn highlighted Singapore as Vietnam's second-largest foreign investor, noting the success of the Vietnam-Singapore Industrial Parks. He reaffirmed Vietnam's commitment to facilitating foreign investments, mentioning recent legal amendments to attract more investors, Vietnam Plus reports. Temasek's Deputy CEO Chia Song Hwee acknowledged Vietnam's support, citing SGD3 billion in investments across various sectors. Mẫn also welcomed investments in the Hồ Chí Minh City Eco-Tech Township project and emphasized ongoing government efforts to improve investment conditions for foreign businesses.

Vietnamese tourists missing in South Korea

A group of 38 Vietnamese tourists, part of an 80-person group visiting Jeju Island, South Korea, failed to board their scheduled return flight after losing contact at a sightseeing spot on November 17. South Korean authorities are using CCTV to track their whereabouts, and they will be deemed illegal residents after December 14 when their visa-free stay expires. According to Vietnam News, the Vietnamese Embassy in South Korea is coordinating with local authorities on the incident and has urged citizens to respect local laws to maintain the positive image of Vietnam.

Air Travel expansions

AirAsia has announced five new routes to Vietnam as part of its expansion in the region, responding to the growing demand for travel. New flights include HCM City to Phnom Penh starting December 22 and Hà Nội to Phnom Penh launching January 24, 2025. Additionally, services from Phú Quốc to Bangkok and Đà Lạt to Kuala Lumpur have recently resumed. Air Asia indicates that the airline will also begin flights from HCM City to Kota Kinabalu on December 3. AirAsia aims to enhance affordable connectivity to Vietnam, increasing its weekly flights to 195 and offering over 1.7 million visitor seats annually.

Inflation

Việt Nam's inflation for 2024 is projected to reach 4-4.5%, up from 3.5% in 2023, driven by rising global energy and food prices and increased domestic production costs due to Typhoon Yagi. Despite a 17.9% year-on-year increase in state budget revenue to VNĐ1.45 quadrillion (US$57 billion), development investment spending declined by 11.8% amid slow public investment disbursement. According to VietNam news, the Ministry of Finance presents two inflation scenarios: one predicting a CPI rise of about 3.7% and another estimating a 3.92% increase due to potential public service price adjustments. Authorities emphasise implementing measures to control inflation and manage prices effectively.