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.
Doing Business in Ho Chi Minh City, Vietnam 2024
Ho Chi Minh City, often abbreviated as HCMC or still widely referred to as Saigon, is Vietnam’s economic heartland. Its dynamic business environment, coupled with a strategic geographic location, has solidified its position as a premier destination for foreign investment and business expansion in Southeast Asia. This bustling metropolis offers a unique blend of traditional Vietnamese culture and modern urban living, creating a vibrant atmosphere for both locals and expatriates.
State power firm looks to Vietnam Dev. Bank after commercial bank loan limit reached
Vietnam’s state power provider Electricity Vietnam or EVN has reached an agreement with the Vietnam Development Bank for US$2 billion to build more power generation and transmission lines. The agreement was arranged on the back of borrowing limits with commercial banks being reached and challenges accessing foreign capital…
The VietJet UK Court Ruling for Foreign Firms in Vietnam: Unpacked
For almost two years VietJet has been in a protracted legal battle with Fitzwalter Aviation. In July, however, it came to an end–pending an appeal–when a UK court handed down a ruling in favour of Fitzwalter. This article looks at what happened and how it played out in court, as well as what might happen next.
Vietnam Stock Reviews: Hai An Transport & Stevedoring
In the second quarter of 2024, Hai An recorded an increase in revenue and profit compared to the same period last year. This growth was attributed to factors such as the expansion of its fleet, the opening of new domestic and international routes, and rising freight rates…
Counterfeit OMO laundry detergent operation raided in northern Vietnam
Of note, protecting intellectual property in Vietnam can be challenging. It is common for local businesses to use brand names and logos of other more well-established businesses as well as to find fake brand name goods in Vietnam’s towns and cities. As of April 2024, Vietnam remained on the Office of the US Trade Representative’s Special 301 Report which found that despite intellectual property rights reforms, there were still ‘serious concerns remain regarding IP protection and, in particular, enforcement’.
Moving up runway two construction at HCMC airport floated by airports group
Despite certain stages of the first phase being ahead of schedule, however, several other parts are not moving quite so quickly. For example, the aircraft maintenance area, and operations centre, are at risk of falling behind schedule with the tender documents still not finalized. This could push back completion of the first phase, which is scheduled to be finalised by the end of 2025.
Vietnam ‘unlikely’ to see minimum wage hike in 2025
Of note, the National Wage Council meets at least once a year to discuss the minimum wage in Vietnam. That said, the minimum wage does not necessarily rise every year. For example, during COVID minimum wage rises were put on hold. Similarly, as Vietnam’s economy struggled in 2023 minimum wage hikes were delayed until 2024…
Elevated Vietnam banking bond issuances continue in July
Of note, back in 2022, the construction sector dominated bond issuances, accounting for about 52.30 percent of bonds issued by the end of July that year. Banking on the other hand accounted for just 2.17 percent. At the end of July this year, however, banking accounted for 67.2 percent of the bonds issued whereas construction accounted for just 2.8 percent.
UK court finds against Vietnam’s Vietjet in leasing dispute from 2021
A court in the UK has found that FitzWalter Aviation Holdings, which had a leasing agreement with Vietnam’s Vietjet, had the right to cancel said lease back in 2021. Vietjet had argued that the lease termination was illegal and had refused to allow four aircraft to be repossessed. The judgement
Vietnam’s Hoa Phat Steel: Stock Review
While the challenges are evident, the potential of Hoa Phat’s Dung Quat 2 complex to drive future growth cannot be ignored. This complex is expected to start operating in early 2025, targeting an annual production capacity of 5.6 million tons of steel, including 4.6 million tons of HRC and 1 million tons of specialty steel. This could potentially stimulate revenue, and profits, making Hoa Phat an intriguing investment prospect.
Indian pharmaceuticals firms planning US$200 million investment in Vietnam
Indian pharmaceutical giants SMS Pharmaceuticals and Sri Avantika Contractors are considering establishing a US$200 million plant in a manufacturing park in Thanh Hoa province. The project has already attracted around 50 potential secondary investors, according to Vietnam Investment Review. Of note, Vietnam’s pharmaceuticals market is projected to reach approximately US$2.4
Vietnam News Roundup: August 2 to August 8
This week’s Vietnam news roundup covers foreign trader stock market activity, bad debts, the latest manufacturing developments, the Big Mac Index, EU standards warning on Vietnam produce exports, Vietnam’s outbound FDI and more…
Commerce’s Findings from Vietnam’s Non-Market Economy Review: Unpacked
Last week, the United States Department of Commerce–the DOC–rejected Vietnam’s application to have its status as a non-market economy overturned. This came after a months-long review including thousands of pages of evidence and arguments, from both Vietnam and the United States, culminating in not just the aforementioned adverse findings but also a 284-page memorandum explaining the decision. This article breaks down the key points in said document.
Bad debts continue to skyrocket at most Vietnam banks
Of 29 of Vietnam’s biggest banks, 27 had recorded an increase in bad debt at the end of June, Mekong ASEAN has reported. Between them there was VND 46,719 billion or US$1.86 billion in bad debts, an increase of 20.8 percent compared to the end of 2023. Of note, back
Vietnam outbound FDI falls 53 percent year-on-year in July 2024
It’s worth noting, however, that it’s quite common for local firms to have offices in other parts of the world, usually Singapore, through which they conduct their foreign investment activities. This is partly to avoid the bureaucratic approval process for outbound investment but also due to the perceived relative safety of more advanced markets.
Vietnamese steel giant injects massive capital in new complex, despite China challenge
China’s steel industry has significantly impacted Vietnam’s steel market over the last year or so. The Chinese real estate crisis has led to a construction slowdown, leaving steel mills there with excess inventory. As a consequence, China has ramped up steel exports, particularly to Vietnam…
Vietnam to sell itself as filming location in US despite censorship issues
In the past, Hollywood studios have generally used Thailand as a stand-in for Vietnam on the back of a more well developed film industry in Thailand as well as complicated procedures for getting approval to film in Vietnam. Most recently, producers of the Netflix series The Sympathiser, who had intended to film in Vietnam, could not get approval to do so on the back of censorship issues…
Costa Rica recognises Vietnam as a market economy even if US doesn’t
Of note, trade between Vietnam and Costa Rica is relatively small. So far this year, the Central American nation has not featured in Vietnam’s customs data. That said, state media has been pushing the number of countries that consider Vietnam a market economy as a key reason why it should be upgraded by the US. With this in mind, it’s likely there will be many more announcements like this from smaller countries…
Almost 6,000 redundancies at Vietnam’s Mobile World so far this year
Mobile World is one of the most active stocks on the Ho Chi Minh City Stock Exchange among foreign investors. Trading under the ticker MWG, shares of the company closed at VND 62,900 a share on Friday. Foreign investors currently own about 46.69 percent of the firm with a foreign ownership cap of 49 percent…
Imported car sales poised to overtake locally made cars in Vietnam
Most of these imports came from Indonesia, Thailand, and China which have seen their car market share in Vietnam grow on the back of the ASEAN-China Free Trade Agreement, or ACFTA, that has seen import tariffs on most small cars with less than 9 seats reduced to zero…
In today’s Vietnam news: GS TL on AI, Saigon Economic Times last issue, Fuel prices cut, Vinhomes issuing more bonds, Counterfeit Korean cosmetics store,
In today’s Vietnam news: Power supply imports, Hanoi boulevard project protests, Antidumping duties coming for boxes, Maersk container terminal project Hanoi, Vinpearl foreign investment,
In today’s Vietnam news: Credit limits removed for some major projects, Estonian web security company market entry, Vingroup’s Vuong becomes major shareholder LP Bank,
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