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 issues a decree on direct power purchase agreements
Vietnam has issued a decree on Direct Power Purchase Agreements–or DPPAs– clearing the way for businesses to buy power directly from power generators. The decree has been a long time coming and has been touted as a critical component to developing Vietnam’s electricity network. Per the decree, high volume power
Japanese conglomerate-developed industrial park plan approved in central Vietnam
Notably, Thanh Hoa is located in northern central Vietnam, close to major economic hubs like Hanoi, Hai Phong, and Hung Yen. This proximity provides easy access to key markets and transportation networks. It also has a well-developed infrastructure network, including highways, railways, deep-sea ports, and airports…
Supply of slot machines in Vietnam close to outstripping demand: Gaming exec
As a result, the gaming executive says that border closures and the subsequent reduction in tourists visiting Vietnam saw the market become oversaturated as the number of players fell significantly. He says the market has still not fully recovered and that many gaming clubs that took a financial hit during the pandemic are in need of further investment to get moving again…
‘Limited investment support’ in Vietnam sees big name FDI go elsewhere: MPI
This stems from the introduction of the Global Minimum Tax which has seen corporate tax incentives significantly diminished for firms operating in Vietnam. An alternative ‘investment support fund’ has been proposed, however, this is yet to be legislated. A December 2023 draft included financial support for training and reimbursements for research and development conducted in Vietnam…
Chinese tech insurance Huize to acquire Vietnam-based Global Care
Of note, Vietnam’s insurance industry is expected to grow by an estimated 8.5 percent from VND 60.15 trillion or US$2.6 billion in 2021 to VND 90.24 trillion or US$3.5 billion in 2026. This growth is expected to be supported by Vietnam’s rapid economic growth and regulatory policies, for example new compulsory insurance for construction contractors and mandatory fire and explosion insurance…
Vietnam’s Economy in the First Half of 2024: Unpacked
Six months into 2024, just days ago, Vietnam’s General Office of Statistics released GDP data that showed a marked improvement for the local economy compared to 2023. Specifically, it found that GDP growth for Vietnam for the second quarter of this year had hit a phenomenal 6.83 percent, bringing the average growth rate for the year so far to 6.42 percent. This growth, however, has not been felt equally and in this light this article breaks down the finer nuances of Vietnam’s GDP growth in the first half of 2024.
Beleaguered Vietnam international school suspended by city Education Department
Of note, it is not unusual for Vietnamese firms that have run out of money to hold out for as long as possible by selling assets and cutting staff. Furthermore, it is not unusual for them to be allowed to do so, with a firm not considered insolvent until its debts are over 90 days past due. That said, many firms often go well beyond 90 days…
Two more luxury brands enter the high-end retail fray in Vietnam
This is partly due to the growing demand for luxury goods in the rapidly developing Southeast Asian nation. According to Statista, Vietnam’s luxury goods market is projected to generate revenue of US$992 million in 2024 and is expected to have a compounded annual growth rate of 3.10 percent between 2024 and 2028. This trend, however, may be contributing to a scarcity of prime retail space for luxury brands…
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…
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