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.
VinFast CEO launches affiliate company in Vietnam to buy, lease, sell electric cars
Of note, FGF will sit beside Vuong’s electric car ride hailing firm Xanh GSM. Xanh GSM has accounted for the lion’s share of electric car purchases from VinFast. However, many of these, it was reported in April, were languishing in a field north of Hanoi with the supply far outstripping demand. With this in mind, FGF could have a major client right off the bat…
South Korean minister offers Vietnam support on nuclear energy
Nuclear power for Vietnam has been raised again, this time by the South Korean Minister of Trade, Industry, and Energy Ahn Duk-geun, and a Vietnam-South Korea business forum in Seoul. The minister has suggested that South Korea could provide support for Vietnam should it choose to pursue it…
Hong Kong pharmaceuticals chain Watsons opens first Vietnam-based street store
Vietnam’s ageing population is a powerful driver for growth in the pharmacy retail market. By 2035, one-fifth of Vietnamese people will be over 60 years of age, according to the United Nations. This demographic shift is driving surging healthcare demand in Vietnam–in 2020, Vietnam had the second-highest healthcare expenditure, as a percentage of GDP, in Southeast Asia, and per capita spending is projected to rise by 9.2 percent annually until 2025, according to a 2020 American Chamber of Commerce in Vietnam–known locally as AmCham–report…
Key Vietnam manufacturing index (S&P’s PMI) records big jump in June
S&P Global’s Vietnam Purchasing Managers’ Index has jumped to 54.7 up from 50.3 a month earlier. This is on the back of a sharp rise in new orders that S&P says experienced the highest growth since the index began, aside from the very first month it went online. Whereas this is good news for the manufacturing industry and Vietnam’s economy more broadly, as the import of raw materials increases it is likely more US dollars will be needed. This means increasing pressure on the local currency which is already strained…
Thai retailer kicks off construction of new mall in northern Vietnam
Of note, Central Retail’s new mall aligns with the expansion plans of other major players in Vietnam’s retail industry, such as Japan’s Aeon, and South Korea’s Lotte Retail, as well as homegrown Masan, and Vincom Retail, which owns and leases-out a range of commercial spaces around Vietnam. It intends to open six new shopping malls in 2024. This is partly due to a positive outlook for Vietnam’s retail space rentals and the significant development potential of the retail market…
Vietnam statistics office finds second quarter GDP growth at 6.93 percent
The GSO estimates that the agriculture, forestry and fishery sector grew by 3.34 percent, the industrial and construction sector grew by 8.29 percent, and the service sector grew by 7.06 percent. This is broadly reflected in Vietnam’s top ten individual-item exports in the first five months of this year which registered an average growth rate of 14.9 percent compared to 2023…
Vietnam Value Added Tax cut extended to end of the year
The VAT is normally 10 percent, however, it was reduced during COVID as an economic stimulus measure to 8 percent. But Vietnam’s economic recovery was in large part thwarted, much like in many other countries, by the Ukraine War and the rising fuel prices that came with it. This has led to extensions of the aforementioned VAT cut for the better part of the last four years…
Singapore firm adds 196 MW to Vietnam renewable energy to portfolio
Of note, Vietnam ranked second in attracting FDI in renewable energy among developing economies from 2015 to 2022, according to the UN Trade and Development World Investment Report 2023. Key foreign investors in renewables in Vietnam are GE Renewable Energy, Copenhagen Infrastructure Partners, and Enterprize Energy…
Vietnam Airlines pursuing loan payment deferral from National Assembly
Whereas there may be an argument to be made for supporting the national carrier in events outside of its control, in the current circumstances there should be some pause for thought. That said, the airline is a huge operation with lots of moving parts, lots of ancillary businesses that rely on its continued operation, and lots of employees that rely on the airline for their paycheck–it’s unlikely the National Assembly will deny the airlines’ request…
Vietnam consumers hold off on buying new cars waiting for cut in registration fees
For some context, registration fees can vary between provinces, however, the highest it can be, per Circular 229, is VND 20 million or about US$786. With a 50 percent discount that’s VND 10 million or about US$393. With a new car running at around VND 300 million to VND 500 million this reduction in registration fees is a drop in the bucket. In this context, one reading of this might be that correlation does not necessarily mean causation. It could also be, however, that the love for a good discount in Vietnam is not always entirely rational…
Taiwanese Apple supplier Wistron set to increase investment in Vietnam
Driven by the US-China trade war and political tensions, Taiwanese tech companies like Wistron have been diversifying out of China and increasing their investments in Southeast Asia, particularly Vietnam. Other major Taiwanese Apple suppliers like Foxconn and Pegatron, for example. There are a number of reasons for this…
Porsche + Singapore EV charging solution provider to build charging network in Vietnam
Notably, Vietnam’s EV charging network is mostly owned by VinFast, a subsidiary of Vietnamese conglomerate Vingroup. The firm has already developed more than 150,000 EV charging ports nationwide but currently restricts access exclusively to its own EV users. The participation of Charge+ in expanding the charging network for other electric vehicle brands in Vietnam could help reduce difficulties for Chinese EV producers entering the Vietnamese market…
Vietnam News Roundup: June 21 to June 27
This week’s Vietnam news roundup covers the latest in US dollar Forex spending, Vietnam’s position on the US currency manipulator watchlist, garment and textile manufacturing performance, isotopic testing challenges for Vietnam’s garment industry, Vietnam’s ratification of the UK’s ascension to the CPTPP, the latest foreign trader stock market investment numbers, and more…
Vietnam bonds outstanding lowest in Southeast Asia: ADB data
Vietnam had just US$115 billion worth of outstanding government, corporate, and central bank bonds, in the first quarter of this year, according to the Asian Development Bank’s Asia Bond Monitor report for June. This is the lowest value of outstanding bonds among other key Southeast Asian economies. This could be a sign of economic prudence, however, it could also be a sign that Vietnam is under investing in its own development. That being the case, this could threaten Vietnam’s competitive edge in the region further down the track…
IMF wraps up Vietnam mission, key takeaways from team lead statement
The International Monetary Fund has wrapped up a four day consultation in Vietnam led by the intergovernmental body’s Paulo Medas. The consultation included meeting with the State Bank, Prime Minister, Ministry of Finance and a handful of other government agencies. A statement from Medas at the conclusion of the consultation has several noteworthy points, including…
Vietnam May corporate bond payments delayed, amid ongoing real estate capital challenges
Most of these companies were in the real estate sector which fits with a broader narrative around the struggles of managing capital in the sector in recent years. For example, foreign investment has declined and consumer prepayments for residential real estate properties have dried up. This is part of much bigger challenges facing real estate in Vietnam that have been ongoing for years. This latest tranche of delayed bond payments would suggest it may go on a while longer too…
German adhesives giant opens second application center in Vietnam
This new application center aligns with a trend of foreign businesses opening new factories in Vietnam. Over the past two years, several big names, such as Foxconn, LEGO, Amkor Technology, and PepsiCo, have all launched new factories in Vietnam, with a positive impact on Vietnam’s industrial land market, even amidst a slowdown in the real estate market more broadly…
Nuclear Power in Vietnam: Unpacked 2024
During a state visit by the president of Russia to Vietnam last week, Vietnam’s Prime Minister told the Russians that Vietnam would consider nuclear energy as a means of meeting the net-zero 2050 commitment it made at COP26. Indeed, Vietnam needs more low-emissions electricity, but is nuclear power really a plausible solution?
Vietnam’s Pacific Airlines returns to the sky, sheds budget carrier image
Of note, aside from keeping Pacific Airlines’ aviation licence, which requires the airline to have aircraft, it’s not clear why Vietnam Airlines is keeping Pacific Airlines alive. As a budget carrier it made some sense as competition to Vietnam’s biggest budget carrier Vietjet. These recently announced upgrades to Pacific Airlines, however, look to put the carrier in the mid-range segment which would make it direct competition with its parent company…
Perks of CPTPP one step closer for UK with Vietnam ratification
Notably, Vietnam and the UK already have the UK Vietnam Free Trade Agreement which is almost identical to the European Vietnam Free Trade Agreement. In this light, the CPTPP will not make a huge difference to bilateral trade between the two countries. That said, there will be a few additional advantages including…
In today’s Vietnam news: Crypto transfers to VN not necessary, Novaland bond changes, Perspectives on garment industry, Working hours cut proposed, Adding political component
In today’s Vietnam news: Fuel prices cut, Double-digit growth target reinforced, New airport services delay approval requested, TikTok VN investment, Bybit in Vietnam, LG
In today’s Vietnam news: VN renews antidumping tariffs on Thai sugar, Power supply challenges continue, USTR tariffs forced labour, AMRO growth forecast downgrade, Foreign
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