Low-cost labour and generous tax incentives have made Vietnam attractive destinations for firms looking to optimise their supply chains. As multinationals continue to look for alternatives to the traditional low-cost manufacturing powerhouse China, Vietnam offers many of the same benefits and being close by makes it easy for Vietnam to slide into existing supply chains.

In this section we monitor Vietnam manufacturing news including market entries and exits and regulatory changes that impact manufacturers in Vietnam.

Orders up but prices down for garments and textiles in Vietnam

the-shiv June 23, 2024

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…

Key Apple supplier Foxconn to increase investment in Vietnam by US$52.6 million

the-shiv June 19, 2024

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…

Korean Soju to be made in Vietnam from 2026

the-shiv June 18, 2024

HiteJinro Group will join a slew of other well-known beverage makers with factories in Vietnam including Heineken, Coca-Cola, and Pepsi. These firms stand to benefit from not only a rapidly growing consumer market in Vietnam but also a number of benefits that come with manufacturing in Vietnam including low-cost labour and tax incentives…

Adidas, New Balance suppliers struggling to find workers in southern Vietnam

the-shiv June 11, 2024

Some of the challenges raised in this article, with respect to hiring workers, is that workers have more job options other than factory work, workers no longer need to move to population centres with many manufacturing operations opening in tier two cities and provinces, and workers that moved back to their hometowns during the COVID-19 pandemic have still not returned on the back of the general uncertainty that the pandemic created.

Vietnam’s Purchasing Managers’ Index flat in May

the-shiv June 4, 2024

Overall a relatively positive month for Vietnam’s manufacturing sector and the maintained growth trajectory, however small, is still consistent and may suggest a more stable sector than has been seen over the last year or so.

Billions of foreign aid lost in delays caused by politcal uncertainty in Vietnam

the-shiv May 18, 2024

Of note, these delays in project approvals seem to be mostly in infrastructure projects and aid programs. New projects in the manufacturing and processing industry have continued to move forward without any more delays than is typical–critical to Vietnam’s economic development, investigating corruption in the industry could discourage further foreign direct investment.

Samsung to increase investment in Vietnam

the-shiv May 14, 2024

Samsung has said it intends to invest an additional US$1 billion a year in its operations in Vietnam. This will add to the US$22.4 billion already invested in the country by Samsung. The arrival of Samsung back in 2008 heralded a significant shift in the manufacturing sector with the South

South Korean firm breaks ground on bioplastics plant in Hai Phong

the-shiv May 13, 2024

SKC Limited, a part of South Korea’s SK Group, has broken ground on a bioplastics plant in northern Vietnam’s Hai Phong province in line with increasing plastics production among foreign firms in Vietnam. The plant will produce an estimated 70,000 tons of biodegradable plastics a year starting from the second

Vietnam’s PMI improved but only marginally

the-shiv May 2, 2024

S&P Global’s Purchasing Managers Index or PMI has found that Vietnam’s manufacturing sector grew in April but only slightly, per a press release from the firm. The key manufacturing index registered 50.3 up from 49.9 in March. The survey also found that: The jump in the index was fueled by

Vietnam’s industrial production index registers a 6 percent increase

the-shiv May 2, 2024

Vietnam’s General Statistics Office has released industrial production data from January to April finding a 6 percent increase over the same period last year. Of the four categories the GSO tracks, ‘production and distribution of electricity, gas, hot water, steam and air conditioning’ recorded the biggest increase of 12.3 percent.

Vietnam’s Industrial Production Index jumps 20 percent in March

the-shiv April 4, 2024

Vietnam’s Industrial Production Index–or IIP–was up 20 percent in March over February according to Vietnam’s General Office of Statistics. Notably, the IIP saw an 18 percent fall in February as a result of the Lunar New Year holiday and in this context these latest results seem to indicate a return

Vietnam’s manufacturing industry records slight decline in March

the-shiv April 4, 2024

S&P Global’s Purchasing Manager’s Index recorded a fall for Vietnam’s manufacturing sector in March, with the index dipping below the 50-point break-even mark. Recording a 49.9 this was a drop of .5 percent from February’s 50.4. Key takeaways Optimism in the industry for the year was at an 18-month high;

Vietnam’s Semiconductor Manufacturing Ambitions: Unpacked

Mark Barnes March 26, 2024

It was 2008. The world was in the throes of the global financial crisis and businesses and consumers were tightening their belts all over the world, Intel, however was expanding. Specifically, it was building its biggest chip factory at the time in southern Vietnam. This was something relatively new for

Snapshot: Manufacturing in Vietnam, February 2024

the-shiv March 13, 2024

Each month the-shiv provides a snapshot of the manufacturing sector in Vietnam covering the latest developments, key performance indicators, and government data. Manufacturing news in February was somewhat limited with the Lunar News Year reducing production and seeing most businesses close up for at least a week. That said, there

HCMC customs steps up action against imports, exports of firms with unpaid taxes

the-shiv March 11, 2024

Specifically, the Ho Chi Minh City Customs Department has stopped import and export procedures for Gia Dinh Textile and Garment Company over VND 100 billion (US$4 million) in unpaid taxes, VN Express is reporting. This is yet another instance of Vietnam customs being used to collect tax debts. At the

Labour, electricity challenges weighing on Vietnam’s semiconductor ambitions

the-shiv March 5, 2024

AlJazeera is carrying an article covering Vietnam’s semiconductor ambitions that identifies a lack of skilled labour and power shortages as key barriers for the industry’s development. There is not a lot new here–these issues have been well documented. It is, however, well written and balanced with a few good quotes.

Vietnam’s Industrial Production Index falls 18 percent in February

the-shiv March 3, 2024

Vietnam’s General Office of Statistics has found that Vietnam’s Industrial Production Index decreased by 18 percent in February compared to January and 6.8 percent compared the February of 2023. Note that last year the Lunar New Year, for which there are five public holidays, was in January in 2023 but

Vietnam manufacturing grows for second month in a row: S&P

the-shiv March 1, 2024

S&P Global’s Purchasing Managers Index–or PMI–has recorded a second consecutive month of growth in February increasing from 50.3 in January to 50.4 in February. Anything above 50 is considered a signal the sector is growing less than 50 and it is shrinking. Key takeaways Business optimism reached a 12-month high–55

Snapshot: Manufacturing in Vietnam, January 2024

the-shiv February 26, 2024

Each month the-shiv provides a snapshot of the manufacturing sector in Vietnam covering the latest developments, key performance indicators, and government data. January overview The year 2023 was the most difficult year in 30 years for the textile and garment industry in 30 years, Le Tien Truong, vice chairman of

This breakdown of the tax incentives Vinfast is receiving in North Carolina

the-shiv February 26, 2024

The News and Observer is carrying a breakdown of the tax incentives Vietnam’s Vinfast is receiving with regard to the factory it is building in North Carolina. Essentially, there are a combined US$1.25 billion in incentives on offer for Vinfast under the understanding that the firm will create 7,500 jobs