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.

Total forex reserves spent keeping the dong steady reach US$2 billion: ACB

This is a significant jump from last Wednesday when ACB estimated that the bank had spent just US$900 million. Of note, Vietnam is cagey about its foreign currency reserves and does not regularly publish forex data. It does, however, periodically communicate what it has on hand with the International Monetary Fund. The last report from the IMF, in September of 2023, recorded forex reserves of…

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Apple supplier Foxconn has been asked to reduce its power use in Vietnam

Promoting power conservation is not a new concept. This happens just about everywhere in the world. That said, what should be concerning is the volume of power Foxconn is being asked to cut. Whereas a firm might be able to save a few kilowatts here or there, it would be very unusual for a firm to be operating with an inefficiency in their power use of 30 percent.

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Vietnam bank-lending growth far from target at 1.6 percent

Whereas in the past credit growth for individual lenders has been set at the start of the year and increased as needed–but ensuring overall credit growth doesn’t go over a set limit–this year all stops have been pulled out. The State Bank has set the limit–although it’s more of a target at this point–at 15 percent overall but said banks are free to lend as they please with no institution-specific caps.

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Vietnam real estate news outlet fined, licensed revoked for misquoting sources

In Vietnam, the Law on Press distinguishes between different kinds of media outlets with varying degrees of newsgathering permitted and subsequently government control. CafeLand looks to have been licenced as an ‘electronic magazine’ which is, more-or-less, a trade publication. It had, however, per the assessment of the Department of Information and Communications of Ho Chi Minh City, extended its operations beyond its remit, becoming more like a news outlet and engaging in more extensive newsgathering.

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Ground broken on second terminal at airport in Vietnam capital

For context, at the end of last year, the President of Vietnam Airlines noted that overcrowding at Vietnam’s airports was costing the national carrier US$20 million a year. Indeed, overcrowding has become a huge problem–Tan Son Nhat International Airport in Ho Chi Minh City was built for 28 million visitors a year but welcomed 34 million arrivals in 2022. Similarly, Hanoi’s Noi Bai International Airport was built for 25 million visitors a year but was expected to finish 2023 with 30 million arrivals.

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Chinese EV makers looking to expand in Vietnam

One of the side effects of all of the attention Vietnam’s Vinfast has received is that it has exponentially raised awareness of electric vehicles among Vietnamese consumers. Furthermore, there is a lot of status that goes along with owning a car in Vietnam. That said, Vietnam’s GDP per capita is still only around US$4,000 which makes owning a car of any kind challenging for most Vietnamese. In this context, smaller, cheaper Chinese EVs could find a welcome home south of the border.

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Alibaba to build a data centre in Vietnam

Vietnam’s data localisation laws have been a point of contention with cross-border service providers concerned about the security of their data stored in Vietnam. These regulations also contravene some trade agreements like the Comprehensive and Progressive Transpacific Partnership Agreement which prohibits member states from requiring firms to store data locally.

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Minimum wage hike of 6 percent submitted to Vietnam government for approval

This will be welcome news for Vietnam’s minimum wage workers with no minimum wage hike last year despite inflation floating around 4 percent. The Vietnam General Confederation of Labor had been pushing for between 6.48 percent and 7.3 percent with the Vietnam Chamber of Commerce and Industry, a peak business representative body, pushing for between 4.5 and 5 percent. Vietnam’s National Wage Council, which makes recommendations to the ministry, looks to have essentially split the difference.

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Billions of foreign aid lost in delays caused by politcal uncertainty in Vietnam

Of note, these delays in project approvals seem to be mostly in infrastructure projects and aid programs. New projects in the manufacturing and processing industry have continued to move forward without any more delays than is typical–critical to Vietnam’s economic development, investigating corruption in the industry could discourage further foreign direct investment.

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Airlines are making just US$1 per passenger: Vietnam Airlines exec.

The rising price of airfares in Vietnam has been in the news a lot lately. A review of airline ticket prices by the Vietnam Aviation Administration, however, after conducting a brief investigation, earlier this year, found that airfares prices have been within the current guidelines–in Vietnam airfares are regulated by the government.

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Another politburo member resigns in Vietnam

Truong Thi Mai  who was, until yesterday, the Standing Secretary of the Secretariat, has resigned her position. This was after it was revealed there were ‘violations and shortcomings’ in her work. Resignations among Vietnam’s leadership have become common of late with the president resigning in March and the Chariman of

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Vietnam tech-giant’s losses quadruple after audit

VNG’s Zalo currently has about 72.5 million user accounts and its success has put VNG in the government’s good graces. This may speak to reports last week that the Steam gaming platform had been banned in Vietnam at the request of local game producers.

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State Bank sells US$400 million of forex reserves on Wednesday: ACB

Research from WiGroup last week estimated Vietnam’s reserves to be only about US$90 billion. That being the case, with the IMF recommending enough foreign currency on hand to cover three months worth of imports, and imports reaching just shy of US$30 billion in April, these reserves are dangerously low.

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