Automobile industry

Aview of THACO Chu Lai Mechanical and Automotive Industrial Park (Photo: VNA) Quang Nam (VNA) – Quang Nam is exerting efforts to improve its investment environment and speed up administrative reform to attract more investors, especially in supporting industry, said Le Tri Thanh, Chairman of the People’s Committee of the central province. Speaking at a recent online meeting with enterprises in Ho Chi Minh City and the southern region on measures to boost the development of supporting industry for mechanics, Thanh noted that Quang Nam is home to the first industrial park in the country designed for supporting industry for the mechanical industries, including automobile industry. Tran Ba Duong, Chairman of the Truong Hai Auto Corporation (THACO), said that THACO has established its Mechanical and Supporting Industry Corporation, which is the first step in its plan to boost the growth of the mechanical supporting industry. It is a new model in Vietnam, he said, adding that THACO …

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Strategies sought by insurers after mixed bag in growth Data compiled by BIDV Securities Company (BSC) showed that foreign companies are prevailing in the Vietnamese life insurance market, even though the pandemic is out of their control. Bao Viet Life, the only Vietnamese insurer on the list, still holds the largest market share, with 20.8 per cent. However, other foreign enterprises such as Manulife, Prudential, Dai-ichi Life, and AIA have accelerated their initiatives and international expertise to improve operational efficiency and gain customer appetite. The five largest companies accounted for 78.7 per cent of the whole life insurance market share, with foreign insurers enhancing their position, while a number of major Vietnamese insurers have diminished. In the past five years, BaoViet Life’s market share has decreased by 6 per cent. On the contrary, Canadian insurer Manulife has increased their segment from 6.9 to 19 per cent. AIA rose from 1.5 to 10.8 per …

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The auto factory of VinFast in Hai Phong city (Photo: VietnamPlus) Hanoi (VNA) – Vietnam has continually recorded unprecedented declines in car sales due to impacts of social distancing and the shortage of components. The Vietnam Automobile Manufacturers’ Association (VAMA) reported that 8,884 vehicles were sold in August, dropping 45 percent from July and 57 percent from the same period last year. They include 6,231 passenger cars, down 40 percent; 2,344 commercial vehicles, down 55 percent; and 309 special-purpose vehicles, down 33 percent month on month. Of the sold units, 5,345 were domestically assembled cars while the remaining 3,539 were imported, both down 41 percent from the previous month. VAMA said this was the record low in car sales in Vietnam since 2015. The second lowest was recorded in February 2016, which coincided with the Lunar New Year holiday, when only 11,718 vehicles were sold. In the first eight months of 2021, VAMA members sold 175,400 units, …

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Revenue in Q3 was VND700 billion, down 59 percent compared to the same period last year. Social distancing measures applied in Hanoi, Ho Chi Minh City and other localities in this quarter have seriously affected Haxaco and the automobile industry. The company’s two branches in HCMC had to temporarily close in Q3 while another in Hanoi was closed until Sept. 12. "This has caused a decline in our sales and services during this period," the company noted. Between January and September, the auto dealer's revenue was VND3.4 trillion, down 9 percent over the same period, equivalent to 35 percent of this year's business plan. However, profit dropped by 45 percent to VND44 billion. Despite revenue decline, the company retains a positive forecast for the last quarter of this year. It has thoroughly prepared to resume operations in the new normalcy, with all employees fully vaccinated to ensure operational safety. Previously, in the annual meeting at the beginning of the year, the …

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In the midst of a stressful time of the epidemic, the Ministry of Planning and Investment is developing a program to recover the economy after the pandemic. According to Minister Nguyen Chi Dung, Covid-19 has disrupted production and business activities of enterprises around the world and seriously affected the Vietnamese economy. Along with that, the epidemic has disrupted many supply chains in the world and Vietnam. However, when the economy recovers from the pandemic, demand will also increase. Vietnam needs to take advantage of this opportunity to bring businesses into the supply chain. Growth and opportunity The Ministry of Planning and Investment and the United Nations Development Program (UNDP) in Vietnam researched and re-evaluated the impact of the Covid-19 epidemic on the supply chain of 10 industries in Vietnam. They selected three priority industries for in-depth research: agriculture, food processing and automobiles. These are the three industries …

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Vietnam grasps opportunities to expand agricultural export market Viet Nam's agricultural products are being exported to more than 180 countries and territories, particularly products moving from the mid-range market to the higher-end segment. This information was provided at an online trade connection programme with the participation of representatives and business communities of India and three countries of the Greater Mekong Sub-region (GMS), namely Viet Nam, Thailand and Cambodia on Monday. This formed part of a series of activities of a project to strengthen international integration of small and medium-sized enterprises (SMEs) of India and the GMS countries, towards promoting global value chains and trade between India and the GMS countries, which is financed by the Asian Development Bank (ADB). Le Hoang Tai, Deputy Director of the Viet Nam Trade Promotion Agency under the Ministry of Industry and Trade, emphasised that farm produce and food were key exports of Viet Nam. …

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The 2020 Viet Nam Motor Show. The COVID-19 outbreak has caused the country’s biggest auto industry show to be cancelled this year. — VNS Photo The country’s biggest automobile and motorcycle exhibition, the Vietnam Motor Show, will not be organised this year due to the COVID-19 pandemic and will return in 2022, the organising committee has announced. It had scheduled to be held at the end of this month in HCM City, but the committee said that the fourth wave of the pandemic has disrupted most socio-economic activities and the auto sector was no exception. Since lockdowns and other restrictions are in the early stages of being eased, to comply with the Government’s directives on disease prevention and for public safety, the annual event could not be held as planned, it said. The Vietnam Automobile Manufacturers Association and Vehicles Importers Vietnam Association had indicated attendance was confirmed by 12 auto brands, Audi, Ford, Honda, Jeep, Mercedes-Benz, Mitsubishi, MG, …

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Emart hypermarkets will start popping up even more next year. Photo: Le Toan Domestic investors hold onto the upper hand in retail market shares in Vietnam. Last month Emart, one of the largest retailers from South Korea, completed the transfer of capital and assets to Thiso JSC as agreed to in May, as the former had been unable to open a new location over the last five years in Vietnam. According to the plan, Thiso Retail, a subsidiary of automobile maker Thaco, will open three more Emart hypermarkets in 2022 at Sala Urban Area in Ho Chi Minh City’s Go Vap district, and in Go Dau town of the south-western province of Tay Ninh. The company also plans to establish another 11 points of sale across the country by 2025. Competition in the Vietnamese retail market is increasingly fierce and the last five years have seen a mass withdrawal of foreign supermarket groups, with German Metro Group, French Casino Group, and Auchan retreating. Matthew Powell, director of Savills Hanoi, …

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In a bid to continue successfully controlling inflation this year amid a rise in local consumption, the government is taking drastic action, with the stabilisation of prices of key items in the market a priority. The government has ordered localities to use sound solutions to bring inflation under control. Although the four-month consumer price index (CPI) remains low, at 0.89% as compared to that of the same period last year, the Ministry of Finance (MoF) has just sent a document to leaders of localities nationwide requiring them to apply sound solutions to keep prices in the market on the right track. Close control Specifically, the MoF has asked the people’s committees of provinces and centrally-ruled cities to increase their management, monitoring, and stabilisation of prices, and take the initiative in calculating and formulating pricing schemes for items whose prices are determined by the government. The MoF’s fresh move is aimed at supporting the …

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HCM City remittances up 22% to $5.1b Foreign remittances to HCM City in the first nine months of the year were worth US$5.1 billion, a 22 per cent increase year-on-year. Nguyen Hoang Minh, deputy director of the State Bank of Viet Nam’s HCM City branch, said the growth rate is impressive considering the impact of COVID-19 on the global economy. Overseas Vietnamese have faced difficulties travelling abroad or back to Viet Nam for the past two years due to the pandemic, and so “they might be having more savings than before,” he suggested. Most of the remittances was money sent back by overseas Vietnamese to their families to help them get through the pandemic or to invest in business activities, he said. The main sources remained the US, Australia, Canada, and Europe, he said. Total remittances this year could increase by 12 per cent from last year’s $6.1 billion, he said. Last year remittances topped $17.2 billion, making Viet Nam the third largest receiver in the East …

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