Starting a Business in Vietnam Checklist
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How to Import Food into Vietnam: Ultimate Guide 2024
How to Start a Real Estate Business in Vietnam in 2024
How to Brew Beer in Vietnam: Ultimate Guide 2024
How to Make Video Games in Vietnam: Ultimate Guide 2024
How to Start an Export Business in Vietnam: Ultimate Guide 2024
How to Import Footwear Materials to Vietnam: Ultimate Guide 2024
How to Export Footwear from Vietnam: Ultimate Guide 2023
How to Manufacture Shoes in Vietnam: Ultimate Guide 2024
How to Set Up a Company in Vietnam: Technical Guide 2024
How to Start an English Centre in Vietnam: Ultimate Guide 2024
How to Open a Bar in Vietnam 2024: Ultimate Guide
How to Start a Business in Vietnam: Ultimate Guide 2024
How to Export Coffee from Vietnam: Ultimate Guide 2024
How to Import Coffee to Vietnam: Ultimate Guide 2024
How to Open a Gym in Vietnam 2024: Ultimate Guide
How to Open a Restaurant in Vietnam: Ultimate Guide 2024
How to Open a Cafe in Vietnam: Ultimate Guide 2024
Vietnam’s Wind Power Industry: Overview 2024
Vietnam’s Coal Power Industry: Overview 2024
Vietnam’s Gas Power Industry: Overview 2024
Vietnam’s Solar Power Industry: Overview 2024
Vietnam’s Music Industry: Overview 2024
Vietnam’s Publishing Industry: Overview 2024
Vietnam’s Advertising industry: Overview 2024
Vietnam’s Agriculture Industry: Overview 2024
Construction Industry in Vietnam: Overview 2024
Vietnam’s Supplements Market: Overview 2024
Vietnam’s Auto-Insurance Industry: Overview 2024
Vietnam’s Life Insurance Industry: Overview 2024
Vietnam’s Health Insurance Industry: Overview 2024
Vietnam’s Yogurt Market: Overview 2024
Vietnam’s Cheese Market: Overview 2024
Vietnam’s Film Industry: Overview 2024
Milk in Vietnam: Industry Overview 2024
Vietnam Electronics Manufacturing: Industry Overview 2024
Vietnam’s Tourism Industry: Overview 2024
Vietnam’s Pharmaceuticals Industry: Overview 2024
The joint venture between Mercedes-Benz and local firm SAMCO had requested an extension of its land lease as far back as 2021, however, the request was never actioned due to the aforementioned regulatory challenges (the can was kicked down the road). This came to a head earlier this year, however, when the company said it was considering shutting down its operations in Vietnam altogether as a result of the lolly-gagging…
A new assembly plant for the Czech Republic’s Skoda vehicles is set to go into operation later this year in northern Vietnam, The Investor is reporting. The plant in Quang Ninh province is 90 percent complete, according to the firm, and began a trial run back in May. Set on 36.5 hectares the factory will add a capacity of 120,000 vehicles a year to Vietnam’s automotive industry…
Of note, Vietnam’s cities are already straining to accommodate the rise in car ownership and the penetration rate is only around 5 percent. If the country is to reach car sales of 1 million units a year, there will need to be some fairly big investments in infrastructure. It’s not clear how or if this will be addressed…
The Vietnam Automobile Manufacturers’ Association–the VAMA–August sales report has found that vehicle sales of the group’s members decreased significantly in August over July, falling about 14 percent. That fall was mostly confined to passenger vehicles with commercial vehicles–trucks and buses–collectively rising by 2 percent…
From a peak in 2022 of VND 7.4 trillion or US$298.3 million, Thaco has seen its profits continue to fall. This has been attributed to a decline in car sales on the back of broader economic challenges in Vietnam. This is, however, only one part of much bigger changes in Vietnam’s car market as new trade agreements pull down tariffs on imports and trade remedies against cars imported from China into the US and EU see Chinese car makers search for new markets…
Of note, VinFast’s expansion outside of Vietnam has been rife with big announcements that have failed to materialise. Most recently, a factory in North Carolina announced back in 2022 was put on ice this year after the company failed to meet sales targets in the North American market. This fits with a largely rocky market entry in the US, at least partly due to the vastly different auto-market dynamics in Vietnam versus in the United States.
This challenge looks to stem from regulations that require the Ho Chi Minh City government to reclaim the land at the end of the lease and reassess its use case. Reportedly there is no way around this with the Ho Chi Minh City government asking the national government for assistance. What is perhaps most concerning, however, is that it has been suggested that if the factory were to close it is unlikely to reopen with Mercedes-Benz to be imported instead.
Last week, it was announced that Vietnam would once again cut registration fees for locally assembled cars. This is on the back of slower sales of Vietnam-made vehicles which is the result of a much broader rejig of Vietnam’s car market. This article looks at how Vietnam’s car market is changing, what’s making it change, and what might come next.
The project was originally approved in 1995 and given a 30 year lifespan. The operators of the plant, a joint venture between Mercedes-Benz Group AG and Saigon Transport Mechanical Corporation have requested a five-year extension, however, current regulations dictate that at the end of the licence the land must be reclaimed by the city. There does not appear to be regulatory provisions for an extension without interruption.
Of note, the Ministry of Finance earlier this year raised concerns that registration fee cuts may create legal problems. Specifically, the policy could be seen to be discriminating between locally made and imported vehicles which would put it in breach of EVFTA rules…
Data from the Vietnam Automobile Manufacturers’ Association from July found that vehicle sales of the group’s members increased significantly in July over June–about 13 percent. Year on year sales, however, were down, which is in line with broader economic challenges.
Most of these imports came from Indonesia, Thailand, and China which have seen their car market share in Vietnam grow on the back of the ASEAN-China Free Trade Agreement, or ACFTA, that has seen import tariffs on most small cars with less than 9 seats reduced to zero…
Of note, concerns were raised by the Ministry of Finance last week, that a car registration fee reduction policy that applies only to locally made vehicles could contravene the European Vietnam Free Trade Agreement and Vietnam could be at risk of being sued. This was reportedly raised by the EU as a potential problem earlier this year…
Car imports from Europe to Vietnam mostly came from France and Germany in the first half of this year and were worth a little shy of US$10 million collectively. Of note, import taxes on cars and motorcycles before the EVFTA came into force were between 32 percent and 70 percent. These will be progressively reduced to zero over the first seven to ten years of the agreement…
Of note, Vinfast was given a number of tax breaks and incentives by the North Carolina government to encourage its investment in the state. These amounted to a combined US$1.25 billion understanding that the firm would create 7,500 jobs and invest US$4 billion in its factory. This included US$325 million in funds provided up front for site preparation and the upgrade of infrastructure to service the plant, as well as training programs, with the rest tied to key milestones in construction and hiring. It’s not clear what will happen to these incentives in the context of the three year delay that has just been announced…
The move to expand battery production capacity aligns with increasing global demand for electric vehicles–or EVs for short. The world is witnessing an explosion of EVs, with electric car sales in 2023 six times higher than in 2018, just 5 years earlier. Furthermore, global EV sales are predicted to grow from less than 45 million in 2023 to 250 million in 2030 and reach 525 million in 2035, according to the latest research by IEA…
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…
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…
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…
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…
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Can Vietnam Survive the Steel-Trade Wars?
A Brief History of Startups in Vietnam: Unpacked 2024
What’s Going On with Vietnam’s Car Market in 2024?
How African Swine Fever is Reshaping Vietnam’s Pork Market
Is a Sugar Tax Right for Vietnam?
How is the EVFTA Working Out for Vietnam?
What Does a Devalued Yen Mean for Vietnam?
Vietnam’s New Direct Power Purchases Decree: Unpacked
What’s Happened to Vietnam’s Beer Market? Unpacked 2024
Nuclear Power in Vietnam: Unpacked 2024
PetroVietnam Gas Corporation: Vietnam Stock Overview
VietinBank: Vietnam Stock Overview
Military Commercial Bank: Vietnam Stock Overview
HDBank: Vietnam Stock Overview
Vinhomes (real estate): Vietnam Stock Overview
BIDV (banking): Vietnam Stock Overview
Becamex IDC (real estate): Vietnam Stock Overview
Bao Viet Holdings (Insurance): Vietnam Stock Overview
Century Synthetic Fiber Corporation: Vietnam Stock Overview
Mobile World (retail): Vietnam Stock Overview
SSI Securities Corporation: Vietnam Stock Overview
Saigon Beer Alcohol Beverage Corporation: Vietnam Stock Overview
Phu Nhuan Jewelry: Vietnam Stock Overview
Asia Commercial Bank: Vietnam Stock Overview
PetroVietnam Fertilizer and Chemicals Corporation: Vietnam Stock Overview
Vietjet Air: Vietnam Stock Overview
Vietnam Stock Reviews: Vietnam Rubber Group
REE Corporation: Vietnam Stock Overview
Electronics Retailer Digiworld: Vietnam Stock Overview
Vinh Hoan (seafood): Vietnam Stock Overview
Vietnam Tourist Arrivals Tracker: August Update [data set]
Vietnam Retail Sales Tracker: August Update [data set]
Vietnam Car Sales Tracker: August Update [data]
Vietnam Exports Tracker: August Update [data set]
Vietnam Imports Tracker: August Update [data set]
Vietnam CPI Tracker: August Update [data set]
Vietnam Industrial Production Index Tracker: August Update
Vietnam FDI Source Country Tracker: August Update [data set]
Vietnam FDI Tracker by Sector: August Update [data set]
Doing Business in Vietnam: Events Directory 2024
Starting a Business in Vietnam Checklist
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