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.
Spain renewables giant looking at central provinces for Vietnam expansion
Of note, a combination of favorable climate conditions, supportive government policies, and rising demand has made Vietnam a promising market for renewable energy development in recent years. In particular, southern Vietnam has high solar irradiance and strong, consistent winds. The average annual sunshine duration in Khanh Hoa province is 2,600 hours per year, while Ninh Thuan province has the most hours of sunshine in a year, in Vietnam, reaching up to 2,800 hours…
Heineken to halt making beer at central Vietnam factory on declining sales
This is on the back of declining sales that the firm is attributing to broader economic challenges but also Decree 100 which reduced the allowed blood alcohol content when driving in Vietnam to zero. Decree 100 has repeatedly fallen into the cross-hairs of local alcohol producers, distributors, and retailers in Vietnam over the last year or so…
Vietnam’s sees bank deposits for individuals increase, enterprises decline
This fits with a broader narrative around Vietnamese moving to save and invest rather than spend–the stock market and local gold price have both been at historic highs this year, too–in light of broader economic challenges facing the country. This is also reflected in retail sales which recorded a month-on-month decline in May over April of .07 percent and have averaged a decline of .19 percent a month since January…
Isotopic testing for cotton products entering US possible problem for Vietnam
Of note, between October of last year and May of this year, US Customs stopped 950 shipments entering the US from Vietnam under the UFLPA valued at US$520 million. Of those 528 were released, 207 are still pending an outcome, and 215 were denied entry. Those denied shipments were worth a collective US$20.9 million with 46 shipments of apparel, footwear, and textiles among them valued at US$496,485…
Japan’s Toyota to focus on hybrids over electric vehicles in Vietnam market
Of note, Vietnam’s EV charging network is mostly owned by VinFast, a subsidiary of Vietnamese conglomerate Vingroup. The company claims to have more than 150,000 EV charging ports nationwide, however, these facilities are currently exclusively for Vinfast’s EV users. Vinfast has said that, after 10 years, the network will be opened up to other brands, however, this is years away and it’s not clear what electric car buyers of other brands will do until then…
Orders up but prices down for garments and textiles in Vietnam
Of note, last year was not a good year for garment manufacturers and clothing suppliers in Vietnam. This was mostly on the back of lower demand in key export markets as a result of higher inflation from higher fuel costs. The response to this has been mostly supply side stimulus. Tax and interest rate cuts have been common but the impact of these measures has been limited without the demand to support them. By the end of November 2023 exports of garments and textiles from Vietnam were hovering at US$30.4 billion, a drop of 12.3 percent over the same period in 2022…
S&P global maintains Vietnam BB+ long term, B short term ratings
S&P Global has maintained its ratings for Vietnam but notes there are some risks. Vietnam’s banking sector on its Banking Industry Country Risk Assessment matrix is rated 9. This is on a scale of one to 10 on which 1 represents the lowest risk and 10 represents the highest. This assessment “incorporates regulatory weaknesses, in addition to weak transparency and disclosure standards,” according to the report.
Electricity Vietnam reps meet Samsung leaders amid power supply concerns
The government has gone to great lengths to assure foreign investors that the supply will be adequate this year, however, moves to eek out support from foreign investors in reducing their power consumption seems to suggest otherwise–Just weeks ago, it was reported that Apple supplier Foxconn had been asked to curtail its power usages by 30 percent in anticipation of power shortages…
Vietnam think-tank finds 5.85 percent GDP growth more likely that 6.5 percent target
This is in line with the growth outlooks of Maybank Securities and the International Monetary Fund which both forecast GDP growth of 5.8 percent back in April. The Asian Development Bank, however, has been slightly more optimistic forecasting 6 percent and Singapore’s United Overseas Bank has been even more so, forecasting 6.4 percent growth for Vietnam this year…
Vietnam floats corporate income tax cuts for small-micro businesses
Of note, the draft amendments to the Law on Corporate Income Tax do not seem to make a distinction between local and foreign firms. That being the case, foreign-owned small businesses–cafes, bars, gyms, and what not–could also benefit from these changes if passed. That said, there does not seem to be a timeline for a decision as to whether these changes will be approved and go ahead…
Vietnam to consider nuclear power to meet net-zero commitments
Nuclear power in Vietnam has been floated before. In 2006, the government announce plans to have a nuclear power plant online by 2020 and this was followed a few years later by official plans for nuclear power plants in southern Vietnam in Ninh Thuan and Khanh Hoa provinces. These were, however, shelved in 2016 in favour of gas and coal on the back of lower demand projections…
Vietnam News Roundup: June 14 to June 20
This week’s Vietnam news roundup covers the latest news including Putin’s most recent trip to Hanoi, the latest in State Bank efforts to keep the dong from devaluing, the two Vietnam gambling websites that are set to sponsor two English Premier League teams next season, the latest on Vietnam’s attempts to get the local gold price down, changes to the Special Consumption Tax including adding sugary drinks and increasing the tax on alcohol to 100 percent, and more…
China’s Chery to assemble electric vehicles in Vietnam
Vietnam’s electric vehicle market holds promise for foreign car manufacturers. Of note, electric car buyers are eligible for incentives such as exemption from registration fees for the first three years and a 50 percent fee reduction for the subsequent two years, per Decree 10/2022/NĐ-CP. Nevertheless, foreign car manufacturing firms may encounter challenges related to EV charging infrastructure and electricity supply shortages in Vietnam. These hurdles could potentially hamper manufacturers in expanding their market presence and sales…
Vietnam credit growth on the rise but still well below target
Of note, at the end of June last year, credit growth was sitting at about 4.73 percent. It also failed to climb much higher for most of the rest of the year until November when banks started to push consumer credit through aggressive marketing campaigns–credit growth jumped, as a result, from 7.41 percent at the end of October to 13.5 percent by the end of the year…
Vietnam could see net outflow of 300 high-networth individuals this year: report
Whereas the report says this is being driven by a search for greater opportunities, it should be noted that there are also push-factors driving migration abroad for wealthy Vietnamese. Prosecution of corrupt officials and business persons, whether legitimate or not, have become more common in the last couple of years. Wealthy Vietnamese that may be wealthy because they have acted in a not entirely above board way, could be looking for somewhere to flee should they find themselves in the crosshairs…
The Impact of the Ukraine War on Vietnam’s Economy: Unpacked
The Ukraine War has not been kind to Vietnam’s economy. Tourism, trade, and foreign direct investment have all taken a direct hit, not to mention the indirect impacts of the greater global economic challenges the war has precipitated. With this in mind, and the President of Russia due to land in Hanoi later today, this article looks at how the Ukraine War has impacted Vietnam’s economy.
China’s Huawei considering Vietnam data centre but no commitment yet
Data centres in Vietnam are becoming more and more common. This is a result of a broader move to digitise the economy as well as several key regulations that require businesses to store the data of Vietnamese users in Vietnam. That said, there are a number of challenges for the sector, not least of which is Vietnam’s somewhat inconsistent electricity supply…
Top 10 life insurance firms in Vietnam dominated by foreign firms
Of note, Vietnam’s insurance sector has struggled over the last year or so with a number of high-profile instances of consumers claiming they were duped into purchasing insurance products.That said, it is slowly recovering with Vietnam Report’s survey results finding 45.5 percent of industry respondents expect the industry to grow by around 5 to 10 percent this year…
Key Apple supplier Foxconn to increase investment in Vietnam by US$52.6 million
Manufacturing in Vietnam, particularly in electronics, has been growing rapidly. Though notably there was a slight downturn last year, things have picked up again in 2024. Exports of computers, electrical products and parts thereof had reached US$5.5 billion by the end of May representing an increase of 31.6 percent over the same period a year earlier…
New Vietnam–Manila direct flights highlight growing south-south integration
This is welcome news for tourism in both countries. Of note, in the first five months of this year, Vietnam welcomed 85,936 tourists from the Philippines, an increase of 54.1 percent over the same period last year. This is in line with growing interregional travel which is visa free for members of ASEAN states. Filipino citizens, for example, can enter Vietnam visa free for up to three weeks. This latest announcement could signal a significant boost to these numbers…
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