Vietnam Roundup: Defence deals, farmer eviction fears, credit quota removal

Australia, Vietnam ink new defence cooperation plan

Vietnam and Australia have signed a three-year defence cooperation plan covering 2025–2027. The agreement was reached on August 12 during the 8th Vietnam-Australia Defence Policy Dialogue between Senior Lieutenant General Hoang Xuan Chien and Australia’s Deputy Secretary General of Defence, Hugh Jeffrey. General Chien said cooperation had expanded since March, with progress in training, peacekeeping, military medicine and the defence industry. Both sides also discussed regional security, with Vietnam reiterating its “Four Nos” defence policy and support for peaceful dispute resolution under UNCLOS 1982.

Trump-branded resort in Vietnam raises farmer eviction concerns

Thousands of farmers in Quang Ninh province fear eviction as a 990-hectare resort and golf course project, licensed to the Trump Organisation, moves forward. Developed by the Vietnamese firm Kinhbac City, the project will replace farmland with luxury facilities. Farmers report compensation offers of US$12-30 per square metre, which many deem inadequate. “This land has supported my family for decades,” said Nguyen Thi Huong, who was offered about US$3,200 and rice support. Vietnam’s state land ownership allows reclamation for development, a practice that has often displaced rural communities with limited recourse.

Angola, Vietnam sign 7 deals on energy, defence, media

Angola and Vietnam signed seven agreements on August 7 to expand cooperation in sectors including energy, defence, justice, agriculture, and media. The deals were concluded during Vietnamese President Luong Cuong’s official visit. Key agreements cover oil and gas cooperation, mutual legal assistance, prisoner transfers, and an agricultural action plan. Defence ministries agreed to enhance military collaboration, particularly for veterans, while national broadcasters pledged media exchanges. Angola-Vietnam trade reached US$260 million in 2024, with Angola exporting US$240 million worth of goods and importing US$20.4 million from Vietnam.

No more bank credit growth quotas in 2026

Vietnam will remove credit growth quotas for banks in 2026, replacing them with a market-based mechanism. The State Bank of Vietnam will classify institutions by governance, operational health, and safety indicators, with strict supervision to control inflation and prevent systemic risks. The phased rollout will start with 15–20 top-performing banks. Credit will be prioritised for investment, exports, the digital economy, and green projects. Bad debt resolution, cost reduction, and digital transformation remain key goals. The 2025 credit growth target will be adjusted based on inflation and GDP growth before the full removal of quotas.

Indonesia, Vietnam eye stronger food industry partnership

Vietnam and Indonesia have agreed to deepen cooperation in food production and supply following the “Indonesia–Vietnam Food Security Cooperation Forum” on August 11. The event, organised by the Indonesian Consulate General, VCCI, and partners, aims to promote sustainable development and stable food security. Officials noted bilateral trade reached US$16.7 billion in 2024, up 21.2% year-on-year. Both sides discussed boosting logistics links, including connections between Cai Mep–Thi Vai port and Indonesian ports, to strengthen regional food supply chains.