Vietnam’s exports reach 106 billion USD in 8 months

Assembling of mobile phones at a factory in Thai Nguyen of the Korean-invested Samsung Vietnam Company. (Photo: VNA)

(VOVworld) – Vietnam earned more than 106 billion USD from exports in over the past 8 months of 2015, up 9% from the same period last year. According to the General Statistics Office under the Ministry of Planning and Investment, major hard currency earners included phones and built-in components with estimated soaring turnover of 2.8 billion USD each, up 10% against last month. It’s followed by garment-textiles, electronic devices, computers and components, and footwear. The US remained Vietnam’s biggest importers, purchasing 22 billion USD in goods followed by the EU, ASEAN, China, the Republic of Korea, and Japan. … [Read more...]

Exports hit 106.3 billion USD in 8 months

Vietnam earned approximately 106.3 billion USD from exports in the past eight months of 2015, up 9 percent from the same period last year, according to the General Statistics Office under the Ministry of Planning and Investment. Assembling of mobile phones at a factory in Thai Nguyen of the Korean-invested Samsung Vietnam company - Photo: VNA The domestic sector accounted for 31.7 billion USD of the total export value, an annual drop of 2.5 percent. The remaining majority of 74.6 billion USD belonged to the foreign-invested sector, which represented a 14.7 percent soar from 2014. Major hard currency earners with soaring turnover included phones and built-in components (close to 20 billion USD), garment-textiles (15 billion USD, electronic devices, computers and components (9.9 billion USD), and footwear (8.1 billion USD). On the contrary, aquatic and rubber products as well as vehicles and spare parts experienced revenue declines between 7.1 percent and 16.6 percent compared to … [Read more...]

Why Vietnam is the most investor-friendly country in Southeast Asia

A footwear factory in Hanoi. Photo: Reuters Vietnam is the most investment worthy place in ASEAN – this is a common response of many foreign investors when being asked about their investment plan in the upcoming years. This is not an exaggeration about Vietnam’s current investment environment as well as its potentiality but is in fact based on valid and practical grounds, where improved economic diversification, international integration, reformed investment legislation and good economic policy must be counted. Economic recovery and stable development According to a recent statistics by the General Statistics Office, GDP growth of Vietnam over the first six months is quite high, at 6.28 percent. This is the highest growth for the past five years and could be far over the targeted growth for 2015. Not only the Vietnamese government is optimistic about the economic development of the country this year, other international organizations also provide positive forecast … [Read more...]

Samsung wants to be treated as a Vietnamese business

Is Samsung a Vietnamese enterprise?

VietNamNet Bridge - Samsung has made a daring step by asking ministries and branches to treat it as a Vietnamese company instead of foreign-invested enterprise. The proposal was made by Han Myoungsup on the sidelines of a workshop held recently. He said Samsung Vietnam makes a great contribution to Vietnam’s import/export turnover, creates hundreds of thousands of jobs and distributes products all over the globe labeled as ‘made in Vietnam’. "During the investment process in Vietnam, Samsung has been employing many Vietnamese workers, while our products are made by their hands and brains. Therefore, I think it is not difficult for Samsung to become a Vietnamese enterprise," he said. Director of the Ministry of Industry and Trade’s (MOIT) Domestic Market Department Vo Van Quyen highly appreciates the role of the foreign invested enterprise (FIE) in the national economy. He also recognizes the great contribution by FIEs to the domestic production. "Ninety … [Read more...]

Only 0.04% of FDI channeled into support industries in Vietnam

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Only about $10 billion, or 0.04 percent, of the total foreign direct investment (FDI) worth US$258 billion has been poured into support industries in Vietnam, a senior state official said in a meeting in Hanoi on Monday. Vietnam has attracted US$258 billion in FDI with over 18,000 valid projects, said Dang Xuan Quang, deputy director of the Foreign Investment Agency under the Ministry of Planning and Investment. However, the amount spent on support industries is very small, merely around $10 billion, in comparison with the total operational FDI in Vietnam, Quang said. Therefore, Vietnam’s policies on attracting FDI should be prioritized for developing support industries, said Professor Nguyen Mai, chairman of the Vietnam Association of Foreign-Invested Enterprises. The Southeast Asian country has promulgated many policies to assist local firms in building up support industries with FDI, including those enabling companies to supply components to big FDI enterprises like … [Read more...]

Farm products still hard to enter supermarkets

Tu Hoang Speaking at the seminar, experts said many distributors and retailers want to buy farm produce, particularly local specialties, for distribution at their facilities but these products fail to meet requirements for quality and food safety, among others. Pham Ngoc Thanh, director of Phuc Lam Development and Trading Consulting Joint Stock Co., was cited by VietnamPlus as saying that supermarkets are looking to buy more products from farmers but their seasonal goods do not meet criteria for quality, origin, brand registration and food safety. "It is hard for farmers to meet such criteria although their products have been recognized in their localities in terms of quality and brand," Thanh. Vu Vinh Phu, chairman of the Hanoi Supermarkets Association, shared Thanh’s view, saying that many local products have not been sold at supermarkets as they are not well packaged and do not have brands. Phu said farmers and small producers are forced to sell their products via … [Read more...]

Producers, supermarkets eye improved supply chain

The Association of Foreign Investment Enterprises in Vietnam (VAFIE) and Samsung Vietnam organised a workshop on Vietnamese products and supply chain management from factories to supermarkets on July 31 in Hanoi. The workshop aims to boost public confidence in Vietnamese products and link producers and distribution channels in response to the national campaign "Vietnamese people use Vietnamese goods" between 2014 and 2020. VAFIE President Nguyen Mai said the event provided a platform for producers and supermarkets to meet and seek effective and efficient supply chains as well as establish win-win partnerships where high quality products are sold at reasonable prices. According to President of the Hanoi Supermarket Association Vu Vinh Phu, Vietnam has about 700 supermarkets and shopping malls which require effective supply chain management and proper production planning based on market demands. Middlemen should also be eliminated to offer better prices for the consumers, he … [Read more...]

Vietnam seminar talks supply chains

(VOV) - The Vietnam Association of Foreign Invested Enterprises (VAFIE) in collaboration with Samsung Vietnam held a seminar on July 31 in Hanoi highlighting the importance of developing the nation’s supermarket supply chains. VAFIE president Professor Nguyen Mai emphasised the seminar offered an opportunity for producers, wholesalers and retailers to cooperate and establish linkage to reduce the time and costs of transporting goods from production bases to the storeroom shelves. Vu Vinh Phu, president of the Hanoi Supermarket Association in turn stressed the need to closely connect the nation’s 700 supermarkets and 100 trade centres to more effectively provide consumers higher quality food at reasonable prices. Other speakers underscored the need for businesses to elevate freshness and product quality and bolster brand recognition through improved marketing and otherwise in order to boost sales and profits. … [Read more...]

Samsung to help boosting Vietnam’s supporting industry

Samsung will support Vietnam enterprises to become Samsung component provider, as well as develop Vietnam’s supporting industry.

The Hanoitimes - Samsung will support Vietnam enterprises to become Samsung component provider, as well as develop Vietnam’s supporting industry, General Director of Samsung Electronics Vietnam Han Myoung-sup said at a seminar in Hanoi on July 15. Addressing the seminar, Deputy Minister of Industry and Trade Tran Tuan Anh said Samsung Electronics Vietnam is being one of the biggest FDI investors in Vietnam but the number of domestic enterprises engaged in Samsung’s production chain and supply remains low, accounting for less than 10% of the Korean firm suppliers. Deputy Minister Tran Tuan Anh admitted that though a number of favourable mechanisms and policies have been designed, they have not been implemented strongly enough to support Vietnamese firms in making qualified supporting industry products. The Ministry of Industry and Trade has submitted a decree on supporting industry development to the Government for approval. The decree includes feasible and … [Read more...]

More incentives expected for supporting industries

Deputy Minister of Industry and Trade Tran Tuan Anh gestures as he meets reporters on the sidelines of a seminar on supporting industries held by Samsung Electronics in Hanoi on July 15 - PHOTO: TG

Tu Hoang Anh told a seminar held by Samsung Electronics in Hanoi on July 15 that the decree with supporting policies for development of industrial clusters and research, and incentives for enterprises would create a clear legal framework for Vietnamese and foreign firms to get involved in the nation’s underdeveloped supporting industries. Such supporting policies and incentives are in line with Vietnam’s commitments to bilateral and multilateral trade agreements. Small and medium enterprises will also be assisted in terms of access to infrastructure and preferential loans, Anh said at the seminar, which was attended by over 200 representatives of Vietnamese enterprises and government agencies. The ministry, which is in charge of drafting the decree, is pinning high hopes that supporting industries could attract about 1,000 enterprises after the decree is issued. Anh told the Daily on the sidelines of the seminar that the Government could issue the decree late … [Read more...]

Vietnamese suppliers face tough quest to become stars in Samsung’s eyes

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In 2014 many local suppliers lamented they had little chance to be part of Samsung’s production in Vietnam, and the situation remains nearly the same one year on. Samsung, which runs seven projects worth nearly a dozen of billions of U.S. dollars in the Southeast Asian country, has repeatedly affirmed it always welcomes local businesses to join in the production chain. On Wednesday, the Vietnamese unit of the South Korean electronics titan organized an exhibition and conference on support industries in Hanoi, where more than 200 local businesses got to know what Samsung expects from them. Samsung Vietnam publicized a list of spare parts and components it is seeking suppliers for, but Vietnamese businesses again said they are unable to grab the opportunities, explaining they are less competitive than foreign-invested suppliers. To date, only four Vietnamese firms have been contracted to directly supply parts to Samsung, according to Jang Ho Young, deputy manger of … [Read more...]

Samsung devises measures boosting Vietnam’s electronics industry

A Samsung product (photo for illustration: Vietnam+)

Samsung will research concrete measures to help develop Vietnam’s electronics industry, General Director of Samsung Electronics Vietnam Han Myoung-sup said at a seminar in Hanoi on July 15. He also underlined contributions by Samsung Electronics Vietnam to attract foreign investments in component manufacturing. It also helped the Southeast Asian country improve its export indexes and create a number of jobs. To develop supporting industries, the country needs to provide capital and policy assistance and ensure the sale of the sector’s products, the executive said while asking for high resolve and long-term vision from businesses. Deputy Minister of Industry and Trade Tran Tuan Anh admitted that though a number of favourable mechanisms and policies have been designed, they have not been implemented strongly enough to support Vietnamese firms in making qualified supporting industry products. His ministry has submitted a decree on supporting industry development to the … [Read more...]

South Korean firms to expand Viet Nam investments

Workers assemble electronic components at a factory of South Korea's Samsung Vietnam. South Korea firms will invest more in electronics and information technology in Viet Nam. -- Photo thanhniennews.com

HA NOI (Biz Hub) — South Korean companies will now invest in more areas in Viet Nam, ASEAN-Korea Centre General Secretary Kim Young-sun told an investment forum in Ha Noi on July 14. The South Korean firms are eyeing sectors with high added value, including electronics and information technology, and officials from 20 large South Korean firms began a five-day trip to Viet Nam on July 13 to study opportunities in these fields. With some free trade agreements set to be signed, Viet Nam will become an important link in an economic chain that will connect 55 countries by 2020. Fifteen of them will be members of the G-20 group, which includes South Korea. Do Nhat Hoang, director of the Ministry of Planning and Investment's Foreign Investment Agency, said the domestic electronics industry was expected to see breakthroughs in attracting foreign direct investment from the G-20 states, which have highly developed electronics sectors. This will boost technology transfers and the … [Read more...]

Policy opens door to hi-tech investors

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Vietnam’s relaxed criteria for granting hi-tech certification to enterprises should help foreign investors avoid the tedious "case-by-case" application process that currently prevails. The prime ministerial Decision 19/2015/QD-TTg, issued on June 15, 2015 and taking effect from August 1, will substitute for Clause 18 of the Law on High Technology. Under the decision, businesses seeking recognition as a hi-tech firm will first have to be involved in the production of listed hi-tech products and conform to the government’s energy saving and environmental protection standards. The businesses’ average turnover from hi-tech products must be at least 70 per cent of the total annual net revenue. For small-and medium-sized enterprises (SMEs), they must spend an average of 1 per cent of their total annual net revenue on research and development (R&D) activities in Vietnam. For those with the total equity of over VND100 billion ($4.76 million) and more than 300 labourers, … [Read more...]

Northern Power Corporation reports good growth

The Northern Power Corporation under the Electricity of Vietnam (EVN) group achieved an average annual electricity output rise of 16 percent in the last five years, the highest rate among EVN power distribution companies. Its yearly revenue grew by more than 8.5 trillion VND (391.7 million USD) with an average annual net profit reaching over 300 billion VND (13.8 million USD). In the period, electricity prices increased around 123.4 VND per kWh each year, while the loss rate during transmission and distribution reduced from 8.96 percent in 2010 to 7.4 percent in 2014. The Corporation also launched a number of major projects including the Phu Binh Transformer Station and electricity supply projects for Samsung Vietnam and the Ta Loong industrial park in Lao Cai and Vung Ang industrial park in Ha Tinh. Contributing to advancing local living standards, the EVN chapter has thus far made electricity available for 4.5 million households living in rural areas.-VNA … [Read more...]

Vietnam firm takes on Apple, Samsung with much-hyped phone, calls it ‘world’s best’

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Bkav CEO Nguyen Tu Quang presented Bphone in Hanoi on May 26. Photo: Thanh Luan A Vietnamese company on Tuesday unveiled a locally-made smartphone, claiming that its design, technical specifications and security are "on the same level" as the flagship products of Apple and Samsung. Bphone, the first smartphone of Hanoi-based network security company Bkav, was presented to more than 2,000 audiences at a highly anticipated launch event, which was streamed live on many media outlets. Since it was first displayed at the Consumer Electronics Show in US in January, it has been discussed a lot among local tech fans. The hype was fueled by news reports which quoted Bkav CEO Nguyen Tu Quang as saying, several times, that his phone can easily surpass iPhones and Samsung Galaxy phones. In fact, during the latest event Quang kept repeating the claim. "Today is a historic day for all Vietnamese, as a local product is on par with those from powerful countries," the CEO said. He described … [Read more...]

Samsung begins work on $1.4b complex in City

Samsung Electronics broke ground on its consumer electronics complex at the Sai Gon Hi-tech Park in HCM City's District 9 yesterday. — VNA/VNS Photo Manh Linh

HCM CITY (Biz Hub) — Samsung Electronics broke ground for its consumer electronics complex at the Sai Gon Hi-tech Park in HCM City's District 9 yesterday. In the first stage, the Samsung Consumer Electronics HCM City Complex (SEHC) is scheduled to become operational in the second quarter of next year. It will focus on research and development and manufacture of sophisticated television sets like SUHD and Smart and LED TVs. "The Ministry of Science and Technology highly appreciates Samsung's contributions to the country's socio-economic development," Minister of Science and Technology Nguyen Quan said at the ceremony. Quan also praised the city's efforts in soliciting Samsung's investment, saying authorities had created favourable conditions for Samsung to invest in the project. "The Vietnamese Government expects that with this project, Samsung Group will help Viet Nam develop its supporting industries and promote manufacture of hi-tech products in the electronics and … [Read more...]

NA economic targets did far better than expected

Ten of the 14 economic targets by the National Assembly last year were surpassed. However, there are concerns about the positive results. Thoi Bao Kinh Te (Economic Times) Newspaper talked to Mai Xuan Hung, Deputy Chairman of the NA's Economic Committee. Q: In its session opening on May 20, the NA will review the socio-economic situation for 2014. In fact, the socio-economic situation is better than in the report delivered by the Government in the last NA session last October. Do you agree? A: In the last session, the Government reported the NA's implementation of socio-economic development in 2014. After reviewing it, the NA noticed that many targets did better than revealed in the report. Macro-economic balances were more stable. GDP was estimated to have increased by 5.8 percent. But in fact, the index reached 5.98 percent. This compares with 5.42 percent and 5.25 percent in 2013 and 2012. The index of industrial production rose by 7.6 percent in comparison with 5.9 percent in … [Read more...]

Samsung ramps up Vietnam operations to sharpen competiveness of smartphones

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South Korean electronics conglomerate Samsung has decided to beef up its operations in Vietnam in an effort to increase the competiveness of its smartphones in the global market so that they can keep up with top products from rivals like Apple Inc. Wall Street Journal last Monday reported that Samsung is investing heavily to retool its handset factories in some provinces in the north of Vietnam. Samsung has shipped more than 20,000 metal-milling machines to its Vietnam factories to switch to aluminum-alloy bodies similar to what Apple uses, the Wall Street Journal said. Samsung earlier this year announced an expansion of its smartphone manufacturing in Vietnam with $4 billion in new investment after already spending about $4.5 billion on several facilities near the capital city of Hanoi. Last year, it began to seek permission from Vietnamese authorities for a dedicated terminal for the company’s import and export processes at Hanoi’s Noi Bai International Airport … [Read more...]

Friendship medal granted to RoK businessman

The People’s Committee of the northern province of Bac Ninh on May 15 held a ceremony to present the State President’s Friendship Medal to the former Samsung Vietnam General Director Shim Won Hwan. The Medal demonstrates the Vietnamese State’s recognition of the former Samsung executive’s contribution to the friendship and economic cooperation between Vietnam and the Republic of Korea, said Chairman of the People’s Committee Nguyen Tu Quynh. Quynh also hoped that Shim Won Hwan continues to contribute to the development of the relations between the two countries. The Korean man said he was honoured to receive the Friendship Medal, confirming he would do his best to strengthen the RoK-Vietnam relationship. Samsung first invested in Vietnam in 1995 but made itself known in recent years with its construction of two hi-tech complexes to produce mobile devices and components in Bac Ninh and Thai Nguyen provinces with a combined investment of 7.5 billion … [Read more...]