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 credit growth reaches 6 percent to June
Of note, last year, credit growth limits languished for the better part of the year. In October, however, when it became clear that the same 14 percent credit growth target would not be hit, Vietnam’s banks embarked on some very aggressive marketing campaigns. Rising bad debts in the first six months of this year, however, could suggest there were some quality issues with these loans.
US logistics, supply chain management firm opens Vietnam office
Of note, in 2023 Vietnam’s transportation and storage sector surpassed VND 502.56 trillion or US$19.807 billion, constituting 4.92 percent of the country’s total GDP. This could represent broad opportunities for foreign firms, however, foreign ownership limits in logistics services can be very restrictive. For example, foreign firms are prohibited from owning more than 34 percent of an airline…
Vietnam News Roundup: July 19 to July 25
This week’s Vietnam news roundup covers foreign trader stock market activity, bad debts, GDP targets, offshore wind developments, a new waste-to-energy plant in HCMC, soft drink market forecasts, and the latest developments in Vietnam’s quest to have its designation as a ‘non-market’ economy revoked by the US Department of Commerce, and more…
Vietnam bad debt hits 6.9 percent
Of note, pursuant to amendments to Circular 39 made in June, loan applications for less than VND 100 million or about US$4,000 no longer need to detail a plan for the borrowed funds. Also back in November and December of last year, to meet annual credit growth targets, Vietnam’s banks embarked on some pretty aggressive lending campaigns that saw credit growth jump considerably but in what looked like mostly consumer loans. It could be that some of these loans are now turning bad…
Vietnam market-economy review outcome postponed to August
Of note, Vietnam’s efforts to be redesignated a market economy for trade remedies purposes has been met with quite a bit of resistance in the United States. Its case for redesignation is also pretty shaky in a few areas, currency convertibility and government, for example. As such it’s not really clear which way the DOC might fall…
Vietnam targeting GDP CAGR of 10.18 percent to 2030
Vietnam’s GDP is currently US$4,620 according to IMF data which would mean Vietnam’s GDP would need to grow at a compounded annual growth rate–a CAGR–of 10.18 percent. For comparison, in the last five years Vietnam’s GDP has grown on a CAGR of just 6.08 percent…
Vietnamese conglomerate kicks off construction of waste-to-energy plant in HCMC
Of note, Vietnam currently has 15 waste-to-energy plants under construction. However, only three facilities are operational, processing approximately 10 percent of the country’s total waste. The country discharges roughly 60,000 tons of household waste daily, with an average annual increase of 6 percent projected between 2021 and 2030…
Vietnam PM pushes car registration reduction, despite legal risks
Of note, concerns were raised by the Ministry of Finance last week, that a car registration fee reduction policy that applies only to locally made vehicles could contravene the European Vietnam Free Trade Agreement and Vietnam could be at risk of being sued. This was reportedly raised by the EU as a potential problem earlier this year…
Korean ratings firm enters Vietnam’s credit rating market
This is part of a wider push to improve the quality of Vietnam’s corporate bond market after a number of high profile cases of fraud were revealed. For example, in 2022, Hanoi-based developer of luxury apartment projects, Tan Hoang Minh, was alleged to have defrauded investors of up to VND 10 trillion though corporate bond issuances…
US firms Qorvo, Cadence launch chip design course in Vietnam
This cooperation in training semiconductor chip human resources between the U.S. and Vietnam follows on from a commitment made by The US president during his visit to Hanoi in September last year. It also fits with Vietnam’s ambitions to become a hub for semiconductor chip manufacturing companies, although a lack of skilled labour has proved problematic…
Vietnam’s footwear exports recovering on back of lower tariffs
The surge in exports has been largely driven by the elimination of import duties through various free trade agreements. When the EVFTA came into effect in 2020, for example, tariff lines on Vietnamese footwear exported to the EU reduced by 37 percent, with any remaining tariffs to be eliminated progressively by 2027…
Vietnamese to consume additional 2.56 million litres of soft drink by 2033
Of note, Vietnam is currently debating adding soft drinks to the list of items subject to the Special Consumption Tax. In the most recent version of a revised SCT, the Ministry of Finance has included a ten percent tax on drinks with 5 grams or more of sugar per 100 millilitres. This legislation, however, is still in its draft stage…
Vietnam gold price jumps about 4 percent in one day
This is in line with the market moving to its own beat, often much higher than the world gold price, on the back of regulations that severely limit the importation of gold yet a culture that sees gold as an important store of wealth. This, coupled with challenging economic conditions, has fueled demand with the State Bank, reluctant to allow the import of more gold in the event it might put greater pressure on the local currency. Instead it has taken to selling gold from its own reserves to deflate the gold bar price…
Vietnam state power provider reports first half loss of US$513 million
Of note, retail electricity prices in Vietnam are regulated and, though permitted, price rises are not all that common. This has led to EVN selling electricity below cost price. As of January, it was losing about VND 142.5 per kilowatt-hour sold. This has been ongoing for some time and has led to EVN accumulating the huge aforementioned losses. The issue here seems to be a reluctance to raise electricity prices rather than an inability to do so…
Vietnam News Roundup: July 12 to July 18
This week’s Vietnam news roundup covers foreign trader stock market activity, electricity news, new manufacturing projects, State Bank currency management, the latest GDP growth estimates, the European Chamber of Commerce’s Business Confidence Index and more…
Vietnam’s beer market to nearly double by 2032: Astute Analytica
These estimates come just weeks after the closure of the Heineken plant in Quang Nam, in central Vietnam which was big news with the provincial government set to lose out on VND 500 billion–or about US$19.8 million–in tax revenue each year. That is not to mention that a number of jobs will also likely be lost…
Concerns raised Vietnam car registration fee cut could breach trade agreements
Car imports from Europe to Vietnam mostly came from France and Germany in the first half of this year and were worth a little shy of US$10 million collectively. Of note, import taxes on cars and motorcycles before the EVFTA came into force were between 32 percent and 70 percent. These will be progressively reduced to zero over the first seven to ten years of the agreement…
ADB holds steady on Vietnam GDP growth at 6 percent in 2024
The Asian Development Bank has left its forecast for Vietnam’s GDP growth unchanged at 6 percent in its latest, Asian Development Outlook July 2024. The bank has also forecast that inflation in Vietnam should be around 4 percent for the year…
Chinese battery to add US$300 million to northern Vietnam operations
Notably, back in June, a Singaporean battery maker also announced plans to increase its investment by US$5.5 million in southern Vietnam. The expansion of these battery firms aligns with increasing local demand for batteries. According to Mordor Intelligence, the Vietnam battery market size is estimated to reach US$326.32 million in 2024 and US$454.11 million by 2029. This is off the back of a compound annual growth rate of 6.83 percent from 2024 to 2029…
Vietnam’s New Direct Power Purchases Decree: Unpacked
Last week, Vietnam issued Decree 80 creating a mechanism by which private enterprises and power generators can enter into direct power purchase agreements or DPPAs. Exactly how impactful this decree might be, however, is difficult to determine at this early stage with a lot of moving parts and a number of obstacles to be overcome. This article breaks down and puts into context the key components of this new piece of legislation.
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