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.
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.
Vietnamese seafood-solar firm to invest in Mekong Delta wind energy
Notably, the renewable energy segment is a relatively new growth driver for Sao Mai–Sao Mai only started investing in renewable energy in 2017 when it established Sao Mai Solar. Currently, the firm operates the An Hao Solar Power Plant with a 210-megawatt peak capacity and Europlast Long An Solar Power Plant with a 50-megawatt peak capacity. These projects contribute about 5 percent of Sao Mai’s revenue, however, they account for 20 percent of the firm’s gross profit…
World Bank maintains 5.5 percent GDP growth forecast for Vietnam
This is broadly inline with projections from the IMF in which it forecast 5.8 percent growth back in April and a report from Vietnam’s Institute for Economic and Policy Research which found that Vietnam is unlikely to reach its GDP growth target of 6.5 percent by the end of the year. The institute’s Vietnam Annual Economic Report 2024 instead found that GDP growth is likely to come in around 5.85 percent…
Gold ring prices surpass gold bar prices in Vietnam
Of note, State Bank gold bars were previously being sold through four majority state-owned banks, at well below market price, with huge queues of customers looking to buy up the cheap State Bank gold. This has since moved online and now that demand is much less visible. That said, the rising price of gold rings could suggest there may be a supply side issue with respect to gold bars…
Vietnam considering 2.6 cent feed-in-tariff for excess rooftop solar
Notably, in 2017, to encourage renewable energy, the government implemented a mechanism to buy excess rooftop solar power at a preferential feed-in tariff price of 9.35 cents per kilowatt hour. This policy led to a significant increase in investments in rooftop solar power systems and subsequently ended in late 2020 due to concerns about uncontrolled growth of rooftop solar power sources. This rapid expansion caused challenges in managing the national power grid and since the beginning of 2021, the signing of rooftop solar power purchase and sale contracts has been paused…
Business confidence in Vietnam falls in second quarter: EuroCham
The European Chamber of Commerce in Vietnam’s latest Business Confidence Index survey, has recorded a fall in business confidence of 1.5 points. The results reflect the responses of 212 survey respondents out of EuroCham’s 1,400 members…
Mixed messages on future of FDI in Vietnam
Vietnam has used tax incentives as a financial lever to influence investment trends. Preferential tax rates for foreign projects are available at rates of between 10 to 17 percent, depending on the field and location, with some enjoying special tax rates as low as 5 percent. However, these tax incentives have been significantly diminished by the Global Minimum Tax–about 122 foreign companies have been impacted by the new tax in Vietnam, according to a review by tax authorities…
Vietjet’s parent company calls for stronger aircraft leasing protections just weeks after a UK court authorised the seizure of the airline’s overseas assets. Meanwhile,
In today’s news brief: HP and Asus shift production back to China, Tesla begins hiring in Vietnam, Saigon Commercial Bank closes all but three
In today’s briefing: LPBank’s construction lending has surged 127 percent following revelations that Vingroup’s chairman and his wife became major shareholders. Meanwhile, Vietnam faces
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