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.

Key Vietnam car maker reports profit fall of 6 percent in first half 2024

From a peak in 2022 of VND 7.4 trillion or US$298.3 million, Thaco has seen its profits continue to fall. This has been attributed to a decline in car sales on the back of broader economic challenges in Vietnam. This is, however, only one part of much bigger changes in Vietnam’s car market as new trade agreements pull down tariffs on imports and trade remedies against cars imported from China into the US and EU see Chinese car makers search for new markets…

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Cheap Chinese imports weighing on Vietnam’s small retailers

Whereas Vietnam has benefit from its proximity to China with respect to developing its own manufacturing industry as firms look to diversify their supply chains out of China, its proximity also means that it is much easier for Chinese manufacturers to access Vietnam’s consumer market…

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Central Vietnam government looks for investors in new steel factory

Developing a steel project right now doesn’t seem to be particularly prudent in that there are a myriad of trade remedies investigations into steel imports around the world currently underway, including against steel from Vietnam. These trade remedies cases look to be the result of increased exports of cheap steel from China and Vietnam on the back of a fall in demand at home following slumps in their respective real estate markets…

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US IP group claims ‘stunning victory’ over Vietnam-based video piracy network

Of note, this isn’t the first time an illegal streaming website has been shut down in Vietnam only to reappear days later under a slightly different domain name. Popular illegal streaming site Phim Moi has been shut down repeatedly since 2021 but is still alive and well. Likewise Fmovies appears to be back online already under a slightly different domain name.

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Japan’s Toyo Solar limits Vietnam solar panel production on trade investigation

Japan’s Toyo Solar is reducing its solar panel output at its Vietnam-base affiliate Vietnam Sunergy from 2.5 gigawatts this year to just 1.9 in response to a US trade investigation into solar panels from Vietnam, the company has said in a press release. The company goes on to say that it will wait for preliminary investigation results before making further moves…

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Google is considering building a data centre in Vietnam: Reuters

Of note, electricity is relatively cheap in Vietnam. The average world electricity price is about 15.5 US cents per kilowatt-hour, however, electricity in Vietnam runs at about 7.2 US cents per kilowatt-hour. That said, power shortages and blackouts across northern Vietnam in 2023 cost the economy around US$1.4 billion by one World Bank estimate. This is likely to be a key challenge for the company if it is to go ahead.

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Vietnam News Roundup: August 23 to August 29

This week’s Vietnam news roundup covers foreign trader stock market activity, Vietnam’s plane shortage, the World Bank’s latest GDP forecast, the latest Mercedes-Benz factory licensing challenge update, VinPearl’s latest bond issuance in Singapore, and more…

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TCL Smart TVs made in Vietnam caught up in US trade probe

TCL has had a presence in Vietnam since 1999. Its headquarters in the country are in Binh Duong, next door to Ho Chi Minh City, on which the firm has spent US$45 million and at which it employs 2000 staff. The facility is expected to make an estimated 6 million units this year most of which are destined for the US market. In this context, this trade investigation in the US could have a significant, adverse impact on Vietnam, depending on the outcome.

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US announces September Vietnam trade mission to boost agricultural exports

Of note, the US was slated to benefit from a range of tariff reductions on agricultural goods in Vietnam as part of the Trans-Pacific Partnership agreement. It was, however, withdrawn by the Trump administration. This has put US agricultural producers on the back foot compared to other major agricultural producers like Australia and Canada in the Vietnam market…

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Vietnam Stock Reviews: Gelex Group

In the first half of 2024, revenue and pre-tax profit experienced an increase of 3.8 percent and 74.4 percent compared to the previous year, respectively. The significant increase in pre-tax profit was partially attributed to the sale of majority stakes in three Gelex Group subsidiaries to Singapore’s Sembcorp. Of note, in August 2024, 300 million shares in Gelex Electric, a subsidiary of Gelex Group, were officially listed on the Ho Chi Minh Stock Exchange under the ticker GEE.

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Vietnam rare-earths war heats up with Chinese SOE throwing hat in mix

Of note, the US Geological Survey’s Mineral Commodity Summaries 2024 estimated Vietnam’s rare earth reserves to be in the vicinity of 22 million tons. China, which has the largest reserves, for comparison, is estimated to have double that at 44 million tons, and Brazil which comes in third place has roughly 21 million tons…

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Vietnam Court releases impact assessment of 2014 Bankruptcy Law

For context, it is not unusual for Vietnamese firms in financial distress to try and hold out for as long as possible offloading assets and leaving bills unpaid for months at a time–note that a firm in Vietnam is not considered insolvent until its debts are more than 90 days past due. This can be off-putting for foreign firms doing business in Vietnam with respect to working with local firms–it increases risks and subsequently costs.

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Vietnam takes last place on Environmental Performance Index 2024

The results of this report come as a blow to Vietnam’s green credentials which have become increasingly important for foreign firms establishing themselves in the country. These results, however, should not come as a surprise with the International Energy Association noting earlier this year that Vietnam was on track to become the world’s fifth-biggest coal importer…

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Vietnam’s VinPearl issues new US dollar bonds in Singapore at 9.25 percent

Vinpearl is a prominent tourism and entertainment conglomerate in Vietnam. Its well-known for its resorts, amusement parks, and cable cars. The company is also a part of Vietnam’s biggest conglomerate, VinGroup. Over the last few years, Vingroup has been struggling to develop its electric car arm, VinFast. The subsidiary reportedly lost US$2.4 billion last year with heavy losses continuing into 2024.

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South Korean Choco-pie maker expecting Vietnam dividend over US$78 million

Vietnam’s food and beverage industry has experienced remarkable growth in recent years, driven by a combination of factors including rapid urbanisation, rising disposable incomes, and a burgeoning middle class. This has seen a big uptick in snack food consumption. On average, Vietnamese consume 5.2 kilograms of snack foods per person, slightly higher than the global average of five kilograms…

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