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.

Vinfast leveraging new factory promises to gain import tax breaks?

the-shiv February 26, 2024

Vietnam’s electric car maker Vinfast has announced that it has broken ground on a new factory in India’s Tamil Nadu. At the same time it has asked India for import tax breaks on ready-made electric vehicles from its factory in Vietnam, Reuters is reporting. Vinfast has made a number of

Struggling Vietnam garment maker starts selling asset to cover losses

the-shiv February 5, 2024

Garmex Saigon, which once had 3,700 workers on its payroll, had just 35 staff at the end of 2023, has started selling assets to cover losses, Tuoi Tre is reporting. This is after failing to secure any new orders for the firm in the fourth quarter of last year. Other

Key Vietnam manufacturing index rises, sign of improving demand

the-shiv February 1, 2024

S&P Global Vietnam Manufacturing PMI hit 50.3 points in January suggesting a slight recovery for the sector–on the index 50 represents break-even with anything lower signalling a contraction and anything above signalling growth. Key takeaways The return to growth is only tentative with employment and purchasing fractionally lower and business

US$8 million of investment waiting for clarity on renewables in Vietnam

the-shiv January 29, 2024

U.S. Undersecretary for Economic Growth and the Environment, Jose Fernandez, has told a press briefing in Hanoi that US firms could invest as much as US$8 billion, but that this hinges on clarity on renewable energy development in the country, Reuters is reporting. This was after meeting with Vietnam’s Prime

Korean Boeing supplier to build plant in Vietnam

the-shiv January 25, 2024

South Korea’s KP Aero Industries intends to spend US$20 million on a new assembly plant in Vietnam, Reuters is reporting. Earlier reports from state media suggest the new factory will be in Danang in central Vietnam and cover 20,000 square metres. Whereas this announcement has been met with broad elation

Snapshot: Manufacturing in Vietnam, December 2023

the-shiv January 22, 2024

Each month the-shiv provides a snapshot of the manufacturing sector in Vietnam covering the latest developments, key performance indicators, and government data. December overview There wasn’t much good news for Vietnam’s manufacturing sector in December. Whereas there had been a slight change of fortune early in the fourth quarter, in

Vietnam’s industrial production index rises in December

the-shiv January 21, 2024

Vietnam recorded 5.8 percent growth in its industrial production index in December over a year earlier, The Investors has reported. For the year the country record just 1.5 percent. The GSO says under performance is the result of falling global demand. Performance by sector Manufacturing-processing sector grew by 1.6 percent;

Vietnam-Europe freight rates spike on Red Sea conflict

the-shiv January 12, 2024

The price for shipping a forty-foot container from Ho Chi Minh City (HCMC) to Northern Europe has hit an average of US$3,700, 90 percent higher than in December of 2023, Tuoi Tre is reporting. This is as a result of conflict in the Red Sea which is seeing cargo ships

High production costs are holding Vietnam’s economy back: state media

the-shiv January 9, 2024

Many businesses have had to downsize and many others have been forced to shut down altogether, partly due to high production costs, according to Vietnamnet. In particular the publication notes that: Capital costs are higher in Vietnam on the back of bigger risks; Transport infrastructure is haphazard and missing crucial

Vietnam’s garment and textile sector to have ‘difficult’ 2024

the-shiv January 9, 2024

The year 2023, was the most difficult year in 30 years for the textile and garment industry in 30 years, according to Le Tien Truong, vice chairman of the Vietnam National Textile and Garment Group, and reported by Vietnam News. Key takeaways Garment and textile turnover dropped by 10 percent

Vietnam Clothing Suppliers: Quick Guide 2025

the-shiv January 3, 2024

Vietnam clothing suppliers are many and varied, producing any number of items of clothing from shoes to hats and everything in between. This is off the back of low labour costs and a long history of making clothing, both bespoke and mass manufactured. This has also seen this burgeoning Southeast

Vietnam’s manufacturing sector business conditions continue to decline: S&P

the-shiv January 2, 2024

S&P Global’s Purchasing Managers’ Index (PMI) recorded a decline in business conditions for the fourth month in a row in December, according to a press release from the firm. The well-known index recorded 48.9 points up from 47.3 in November. A score of 50 indicates no change, above 50 means

South Korean chipmaker to increase investment in Vietnam

the-shiv December 25, 2023

Chipmaker Hana Micron from South Korea is planning to increase its investment in Vietnam up to US$1 billion, The Investor is reporting. The firm currently has two plants in northern Vietnam in Bac Giang and Bac Ninh.

German gas firm to build new facility in central Vietnam

the-shiv December 25, 2023

Germany’s Messer, an industrial gas company, has received approval for a US$133.38 million project in Vietnam’s Quang Ngai province, The Investor is reporting. Set to cover 7.24 hectare its expected output is liquid argon, oxygen, and nitrogen along side a number of industrial gases like helium and neon.

Concerns raised in Vietnam over influx of Chinese FDI in supporting industries

the-shiv December 21, 2023

China’s supporting industries are moving production to Vietnam to get around US tariff barriers. This is worrying local supporting industries according to Professor Phan Dang Tuat, Chairman of the Vietnam Supporting Industry Association and referenced by VN Express. He also says that high borrowing costs are also weighing on the

US imported US$1 billion in Christmas candles from Vietnam in 2022

the-shiv December 21, 2023

The US imported US$1 billion worth of Christmas candles came from Vietnam, Freight Waves is reporting. That’s a lot.

Semiconductor suppliers in Vietnam largely isolated: Digitimes

the-shiv December 21, 2023

Semiconductor supply chain participation in Vietnam is mostly in memory manufacturing, packaging, and testing in the north and IC backend and design in the south, with few, if any, supply chains connecting the two, Digitimes is reporting. It also suggests the power supply in the north may be a problem

Snapshot: Manufacturing in Vietnam, November 2023

the-shiv December 20, 2023

Each month the-shiv provides a snapshot of the manufacturing sector in Vietnam covering the latest developments, key performance indicators, and government data. November overview Out of the gates Vietnam’s manufacturing sector started November with some bad news–Samsung Vietnam was estimating it would export just US$57 billion worth of electronics this

Taiwan electronics manufacturer to expand operations in Thai Binh

the-shiv December 18, 2023

Taiwan’s Lotes, which makes electronic parts for big brands like Samsung, Sony and Intel is expanding its operations in Thai Binh to the tune of US$25 million, The Investors is reporting. This will bring its total investment in the province to US$125 million. The current operations make computer cables and