Manufacturing & Industry
This category focuses on industrial production, from electronics and textiles to automotive and heavy industry. It covers FDI trends, supply chain developments, factory expansions, and government regulations shaping the industrial landscape. As a key driver of economic growth, manufacturing plays a crucial role in global supply chains, technological advancements, and industrial competitiveness.
Vietnam ministry looks to end VAT, import tax exemption on e-commerce imports
Low-value Chinese-made goods are all over Vietnam’s major e-commerce sites and can be exported from China and arrive in Vietnam very quickly and easily given the two countries are so close. This proximity also means that shipping is relatively cheap too, and in this respect it does seem that the only real difference is that goods from China, with this VAT exemption in mind, are cheaper…
South Korean consumer finance firm doubles down on Vietnam
Of note, demand for credit has plummeted over the last year or two as thrifty Vietnamese have tightened their belts. By the end of March credit growth was at just 1.34 percent. That said, credit cards have not proven to be very popular in Vietnam in general, with consumers tending to spend only what they have. In fact, just 6 percent of Vietnamese had a credit card according to a 2021 report from the World Bank…
Concerns raised for Vietnam ag producers re: EU-Thailand trade deal
For context, Vietnam’s seafood exports have benefited enormously from the myriad of trade deals the country has signed on to, however, sustainability has become a key issue. Overfishing is rife, hence the yellow card, and this has the potential to have long-term ramifications for many of Vietnam’s coastal, fishing dependent communities. That said, this yellow card coupled with the European Union-Vietnam Free Trade Agreement has, at least ostensibly, been a driver for change and speaks to the non-trade benefits of Vietnam’s many free trade agreements…
Korea launches anti-dumping probe into three Vietnam steel firms
Steel has been at the centre of a number of antidumping investigations of late. Hot-rolled coil steel from China in particular has been possibly the most prominent, however, Vietnam has also started to feature particularly as a means of circumventing anti-dumping tariffs elsewhere. For example, earlier this month the EU extended anti-dumping measures on cold-rolled stainless steel from Indonesia to include Vietnam to avoid Indonesian steel producers from using the country as a workaround…
Vietnam’s new gold price strategy sparks rush to buy cheap gold
Previously, the State Bank had tried to auction off its gold to several gold companies and financial institutions but the price was set relatively high and interest from these institutions was lacklustre at best. Of note, a number of gold shops ran out of gold bars yesterday, some reportedly in just one hour. With little utility in general, and even less for consumers, it looks very much like these gold purchases are for investment purposes.
Vietnam’s Purchasing Managers’ Index flat in May
Overall a relatively positive month for Vietnam’s manufacturing sector and the maintained growth trajectory, however small, is still consistent and may suggest a more stable sector than has been seen over the last year or so.
Hitachi is suing in Vietnam over Ho Chi Minh City metro delays
Issues with site clearance and delayed payments to contractors have caused repeated delays to the metro project which was originally scheduled to start operating in 2018. This is common among infrastructure projects in Vietnam and is in large part caused by a significant mismatch in the value of land versus what is offered to landowners. This stems from land price regulations which sees the central base price from which local land prices are calculated adjusted only once every five years…
Video game platform Steam confirmed blocked in Vietnam
There has been some speculation over the last few weeks that blocking Steam in Vietnam may have been blocked at the request of local game developers to protect the local industry. Whereas these comments from Le do not necessarily rule that out, he does claim that attempts were made to contact the company but received no response–ergo, this might just be a shot across the bow to get Steam’s attention.
Amnesty proposed for corrupt officials in Vietnam
This proposal comes amidst the ‘blazing furnace’ corruption crackdown, which has been blamed for a slowdown in project approvals. Officials, fearful of becoming subjects of corruption investigations, have often opted to avoid approving projects, leading to bottlenecks in a number of projects.
Vietnam gold price plummets on new State Bank price strategy
Gold was trading at US$2,684.20 per troy ounce in Vietnam on Saturday. Conversely, on the world market gold trading at US$2,327.36. The difference of US$356.84 or 13.29 percent is markedly lower than it was earlier this year when gold in Vietnam topped US$2,910.58 per troy ounce which was, at the time, about 20 percent higher than the world gold price.
Major digital payments provider announces end to e-wallet services
Moca grew in popularity when it became available to users of ride-hailing app, Grab. However, the proliferation of other means of instant payments, in particular bank transfers through the National Payment Corporation of Vietnam–or NAPAS–system via QR codes has made e-wallets no longer as useful as they once were.
Vietnam News Roundup: May 24 to May 30
This week’s Vietnam news roundup covers State Bank open market operations, the end of gold auctions, Vietnam’s Industrial Production Index, and more.
Vietnam records first trade deficit in nearly two years
Of note, in S&P Global’s monthly Purchasing Managers Index updates over the last year or so, the fact that Vietnamese manufacturers were burning through inventory rather than importing more, has been reported every other month. This was in the context of lower demand for Vietnam’s exports, a reality that seems to be changing–exports were 15.8 percent higher than in May of last year–and in which case businesses need to scale back up and import more inputs.
Vietnam gold auction alternative unveiled, SBV to supply gold through banks
This decision came about after a series of gold auctions, in which 47,000 taels of gold were sold to an assortment of banks and gold retailers failed to impact the local gold price to the extent the SBV had hoped…
Vietnam electric vehicle maker’s US factory possibly delayed: Reuters
Work started on the North Carolina right around the same time that VinFast shipped its first electric vehicles to the United States. VinFast’s electric vehicles, however, have not been popular in the US and have received some pretty damning reviews. Furthermore, the company is also being sued for alleged disclosure violations, patent infringement, and unpaid rent, and the National Highway Traffic Safety Administration in the US is investigating a car crash in California in which four people died when the VinFast car they were driving crashed into a tree…
How Vietnam feels about imported Chinese cars: insights from local media
It’s not clear how the author of this article drew these conclusions with no sources listed and it reads a lot more like an opinion piece than hard news. These observations, however, could just as easily be applied to consumers in developed markets of Vietnamese electric vehicles…
Vietnam sets price bracket for LNG power negotiations
In Vietnam, for power projects, the MoIT typically sets a maximum and minimum price within which EVN then negotiates with individual power producers. It’s not clear what the purpose of these price brackets is and announcing the maximum price EVN can pay in advance seems counterintuitive to the negotiation process. Regardless this is the process through which most power project prices are determined…
Intel executive laments poor labour productivity in Vietnam
Labour productivity is a recurring theme in Vietnam with the country trailing in Southeast Asia. In 2021, it was fourth to last of ASEAN member states (excluding Burnei), ahead of only Myanmar, Cambodia, and Lao. According to the Asian Productivity Organisation Vietnamese workers were productive to the tune of…
Vietnam National Tourism Administration disputes WEF tourism rankings
The administration claims that the ‘socio-economic impact of tourism’ indicator, which placed Vietnam 115th, contradicts the findings of Vietnam’s General Office of Statistics, however, in the WEF report this indicator is grouped under sustainability and looks at job quality, wages, and gender parity. By comparison, the GSO tends to focus on the number of tourists and how much money they spend. This is not really comparing apples with apples.
Vietnam’s C.bank to abandon gold auctions in favour of ‘new strategy’
On the one hand, the State Bank wants to bring down the price of gold which is much higher than the world gold price because there is more demand than there is supply. On the other hand, the State Bank doesn’t want US dollars leaving the country because this creates inflationary pressure on the dong. If it sounds like these policies are contradictory then that is because they are…
In today’s Vietnam news: Crypto transfers to VN not necessary, Novaland bond changes, Perspectives on garment industry, Working hours cut proposed, Adding political component
In today’s Vietnam news: Fuel prices cut, Double-digit growth target reinforced, New airport services delay approval requested, TikTok VN investment, Bybit in Vietnam, LG
In today’s Vietnam news: VN renews antidumping tariffs on Thai sugar, Power supply challenges continue, USTR tariffs forced labour, AMRO growth forecast downgrade, Foreign
This is an interview with Chris Walker, a Vietnam Sourcing Expert with Vietnam Factory Tours how rising oil prices and the Middle East crisis are
This is an interview with John Gardner, CEO and Founding Partner, at Optimum Hospitality in Ho Chi Minh City. It covers fuel price impacts on:
This is an interview with Dr Nuno F. Ribeiro, Associate Professor, International Tourism & Hospitality Management at Copenhagen Business College, formerly of RMIT Vietnam. It