manufacturing

The Manufacturing category covers industrial production, factory expansions, and supply chain dynamics. It explores exports, imports, technological advancements, automation, and government policies, providing insights into investment trends, foreign participation, and production efficiencies.

 

Central Vietnam government looks for investors in new steel factory

Developing a steel project right now doesn’t seem to be particularly prudent in that there are a myriad of trade remedies investigations into steel imports around the world currently underway, including against steel from Vietnam. These trade remedies cases look to be the result of increased exports of cheap steel from China and Vietnam on the back of a fall in demand at home following slumps in their respective real estate markets…

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Electronics Retailer Digiworld: Vietnam Stock Overview

As the core business of Digiworld, the electronic devices segment has been challenged by declining demand and intense competition–in the broader market, electronics retail chains like FPT Shop and Mobile World, have also closed a number of underperforming stores. With this in mind, Digiworld has implemented a horizontal development strategy, which involves adding new brands and entering new industries through mergers and acquisitions…

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Japan’s Toyo Solar limits Vietnam solar panel production on trade investigation

Japan’s Toyo Solar is reducing its solar panel output at its Vietnam-base affiliate Vietnam Sunergy from 2.5 gigawatts this year to just 1.9 in response to a US trade investigation into solar panels from Vietnam, the company has said in a press release. The company goes on to say that it will wait for preliminary investigation results before making further moves…

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TCL Smart TVs made in Vietnam caught up in US trade probe

TCL has had a presence in Vietnam since 1999. Its headquarters in the country are in Binh Duong, next door to Ho Chi Minh City, on which the firm has spent US$45 million and at which it employs 2000 staff. The facility is expected to make an estimated 6 million units this year most of which are destined for the US market. In this context, this trade investigation in the US could have a significant, adverse impact on Vietnam, depending on the outcome.

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Vietnam Stock Reviews: Gelex Group

In the first half of 2024, revenue and pre-tax profit experienced an increase of 3.8 percent and 74.4 percent compared to the previous year, respectively. The significant increase in pre-tax profit was partially attributed to the sale of majority stakes in three Gelex Group subsidiaries to Singapore’s Sembcorp. Of note, in August 2024, 300 million shares in Gelex Electric, a subsidiary of Gelex Group, were officially listed on the Ho Chi Minh Stock Exchange under the ticker GEE.

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Once leading Vietnam garment maker on last legs as lack of orders bites

Of note, it is not unusual for Vietnamese firms to hold out for as long as possible, grasping at straws to stay afloat under the belief that the ship will right itself if they can hold out just a little longer. 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, but even then they can often continue to trade for quite a while longer.

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South Korean firm signs agreement with chip factory manager in Vietnam

Of note, Vietnam has a breadth of experience in assembly, packing, and testing of semiconductor chips on the back of huge investment from firms like Intel and Amkor. Furthermore, regional and global free trade agreements to which Vietnam is a party position it well for this final stage of semiconductor chip supply chains. That said, Vietnam’s semiconductor manufacturing has faced a number of challenges including an unreliable electricity supply and a shortage of skilled workers.

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Vietnam Stock Reviews: TNG (textiles and garments)

The textile and garment industry is projected to continue growing in the second half of 2024, however, gross margins are expected to remain under pressure. The 6 percent increase in the minimum wage in Vietnam starting in July 2024, coupled with difficulties in raising product prices because of competition from rival countries, will likely hinder margin growth. 

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First half manufacturing jobs jump 10 percent over 2023: Adecco

Manufacturing over the last few months has rebounded significantly compared to 2023. Of note, S&P Global’s Vietnam Purchasing Managers’ Index jumped to 54.7 up from 50.3 a month earlier. This was 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. This continued into July with the index holding at 54.7 percent.

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Indian pharmaceuticals firms planning US$200 million investment in Vietnam

Indian pharmaceutical giants SMS Pharmaceuticals and Sri Avantika Contractors are considering establishing a US$200 million plant in a manufacturing park in Thanh Hoa province. The project has already attracted around 50 potential secondary investors, according to Vietnam Investment Review. Of note, Vietnam’s pharmaceuticals market is projected to reach approximately US$2.4

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Hong Kong based Apple supplier to build aluminium factory in Vietnam

This move aligns with the rapidly growing demand for aluminum in Vietnam spurred by new factories belonging to major electronics manufacturers from Taiwan and South Korea, like Foxconn and LG–Foxconn has announced an increase in its investment in Vietnam to US$52.6 million, and LG is set to complete its factory complex in 2025 doubling its investment in Vietnam.

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US firms Qorvo, Cadence launch chip design course in Vietnam

This cooperation in training semiconductor chip human resources between the U.S. and Vietnam follows on from a commitment made by The US president during his visit to Hanoi in September last year. It also fits with Vietnam’s ambitions to become a hub for semiconductor chip manufacturing companies, although a lack of skilled labour has proved problematic…

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Vietnam’s footwear exports recovering on back of lower tariffs

The surge in exports has been largely driven by the elimination of import duties through various free trade agreements. When the EVFTA came into effect in 2020, for example, tariff lines on Vietnamese footwear exported to the EU reduced by 37 percent, with any remaining tariffs to be eliminated progressively by 2027…

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Chinese battery to add US$300 million to northern Vietnam operations

Notably, back in June, a Singaporean battery maker also announced plans to increase its investment by US$5.5 million in southern Vietnam. The expansion of these battery firms aligns with increasing local demand for batteries. According to Mordor Intelligence, the Vietnam battery market size is estimated to reach US$326.32 million in 2024 and US$454.11 million by 2029. This is off the back of a compound annual growth rate of 6.83 percent from 2024 to 2029…

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