transport & Infrastructure
The Transport & Infrastructure category covers road, rail, air, and maritime transport systems, as well as urban development and investment in public infrastructure. It explores government policies, major infrastructure projects, and sustainability initiatives, providing insights into supply chain efficiency, economic growth, and smart city development.
Indonesian ride-hailing app GoJek to withdraw from Vietnam market
Of note, it is not the first ride-hailing app to withdraw from the country. South Korea’s Baemin announced it would cease operations in the country back at the end of last year and Uber left Vietnam back in 2018 after selling its Southeast Asian operations to Grab…
Key Vietnam car maker reports profit fall of 6 percent in first half 2024
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…
Vietnam’s Ho Chi Minh City to Hanoi flight route among busiest in the world
The local airline industry has faced a number of challenges, particularly recovering from pandemic border closures which grounded most of their aircraft. Foreign investment and expertise could be one possible solution, however, investment in airlines in Vietnam is capped at 34 percent which can make influencing key decisions challenging…
New Dong Nai seaport in Southern Vietnam set to be operational next month
The first phase of Phuoc An seaport, the largest seaport in Dong Nai Province, is scheduled to start operating in September 2024, according to Dantri. The project has cost an estimated US$833.33 million and has taken almost 15 years to complete. Approved for construction in 2009, the project was almost
Airlines in Vietnam down to just 160 aircraft operational
With flight demand outstripping supply and the reputations of Vietnam’s airlines among lessors low, there are a myriad of ways Vietnamese airlines could benefit from an injection of foreign capital and expertise. Foreign firms, however, should make sure they have a full grasp on how the industry is tracking before embarking on any major decisions.
Vietnam EV maker VinFast delays Thailand dealership launch
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.
Vietnam Mercedes-Benz factory could close altogether on licence extension delays
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.
What’s Going On with Vietnam’s Car Market in 2024?
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.
Mercedes Benz plant in Vietnam’s HCMC future uncertain, on extension approval delays
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.
Vietnam’s Vietjet faces new legal action from original lessors in FW Aviation lawsuit
This adds to a growing list of legal action against the airline in recent years. This includes filings with the UK courts from SAF Leasing and Avolon Aerospace in May this year, a judgement in another lawsuit brought by Djinn Issuer mostly in favour of the claimant in October of 2023, and another brought by AWAS 6696 Ireland limited in May of 2023…
Vietnam government agrees to 50 percent registration fee cut for three months
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…
Japan’s Mitsui buys into Vietnam car maker Tasco Auto
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.
The VietJet UK Court Ruling for Foreign Firms in Vietnam: Unpacked
For almost two years VietJet has been in a protracted legal battle with Fitzwalter Aviation. In July, however, it came to an end–pending an appeal–when a UK court handed down a ruling in favour of Fitzwalter. This article looks at what happened and how it played out in court, as well as what might happen next.
Vietnam Stock Reviews: Hai An Transport & Stevedoring
In the second quarter of 2024, Hai An recorded an increase in revenue and profit compared to the same period last year. This growth was attributed to factors such as the expansion of its fleet, the opening of new domestic and international routes, and rising freight rates…
Moving up runway two construction at HCMC airport floated by airports group
Despite certain stages of the first phase being ahead of schedule, however, several other parts are not moving quite so quickly. For example, the aircraft maintenance area, and operations centre, are at risk of falling behind schedule with the tender documents still not finalized. This could push back completion of the first phase, which is scheduled to be finalised by the end of 2025.
UK court finds against Vietnam’s Vietjet in leasing dispute from 2021
A court in the UK has found that FitzWalter Aviation Holdings, which had a leasing agreement with Vietnam’s Vietjet, had the right to cancel said lease back in 2021. Vietjet had argued that the lease termination was illegal and had refused to allow four aircraft to be repossessed. The judgement
Imported car sales poised to overtake locally made cars in Vietnam
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…
India’s Adani considering Vietnam seaport, airports, thermal power investments
Of note, Adani is currently invested in just two projects in Vietnam, a wind power plant and a solar power plant the latter of which has run into problems with poor infrastructure forcing the plant to curb power production back in 2022.
US logistics, supply chain management firm opens Vietnam office
Of note, in 2023 Vietnam’s transportation and storage sector surpassed VND 502.56 trillion or US$19.807 billion, constituting 4.92 percent of the country’s total GDP. This could represent broad opportunities for foreign firms, however, foreign ownership limits in logistics services can be very restrictive. For example, foreign firms are prohibited from owning more than 34 percent of an airline…
Vietnam PM pushes car registration reduction, despite legal risks
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…
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
In today’s Vietnam news: Fund outflows May, New HCMC airport trial operations to begin September, M&A HCMC 2026, Compensation for gas-to-electric bike switch Hanoi,
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