Car manufacturers

The ministry’s proposal to extend the special consumption tax (SCT) payment period is expected to give a boost to the vehicle market, and create better conditions for cars manufacturers across the country. Currently, there are 12 vehicle manufacturing and assembling enterprises that could benefit from the extension (see box). Thanks to the support from the government policies, the domestic auto industry has recovered markedly from the pandemic and other pressures, with growth and sales in 2022 much higher than in 2019. However, output and sales of domestically manufactured cars are decreasing. In October 2022, the output was 25,571 vehicles and the corresponding SCT was $169 million. In November, the output decreased to 23,658 vehicles, and the corresponding SCT was $148 million. In December 2022, the amount of SCT incurred was $140 million; in January 2023, the amount was only $63 million. The Ministry of Finance (MoF) has yet to announce SCT collected in recent months. … [Read more...] about Carmakers keen on extension of SCT pay

Ha Nam’s distinctive advantage, according to many investors, lies in its proximity to Hanoi. Strategically located at the centre of the North Central region, Ha Nam is an intersection of key transportation routes. The province provides convenient access to neighbouring areas such as Hanoi, Haiphong, Bac Ninh, Bac Giang, Thai Nguyen, and others. Additionally, it is home to some northern arterial routes, namely the Cau Gie-Ninh Binh motorway, national road 1A, and the North-South motorway. Due to its ideal location near the major economic centre of Hanoi and its developed infrastructure, Ha Nam greatly facilitates the activities of transporting and trading goods. Meanwhile, its industrial parks (IPs) feature a comprehensive infrastructure base, including transport, power, water supply system, and waste-water treatment stations that perfectly match businesses’ long-term development goals. Located in the Dong Van 3 IP, the GNP Dong Van 3 project has all the geographical … [Read more...] about Ha Nam province – a new manufacturing hub for SME expansion

How do you assess the potential of the supporting industry in Vietnam? Jun-Ho Lee, deputy director of the Vietnam-Korea Technology Consulting and Solution Centre (VITASK) Vietnam’s supporting industry sector has a large room for growth because the Vietnamese electronics industry has a fairly large position as one of the top 15 largest electronics exporting countries in the world. Besides that, this sector leads in the total import and export turnover of all industries in Vietnam. A report from the Department of Industry under the Ministry of Industry and Trade (MoIT) shows that in 2022, the electronics industry had an export turnover of $114.4 billion, an increase of about 6 per cent on-year, and accounting for over 30 per cent of the total export turnover of the whole country. Among the six groups of goods with export turnover of over $10 billion in Vietnam, there are also computers, mobile phones, electronics, and components. The export market of Vietnam’s … [Read more...] about Enhancing competition capacity of nation’s supporting industries

Vietnam is turning off street lights and manufacturers are switching operations to off-peak hours to keep the national power system running amid record temperatures in some areas that have caused a surge in demand. As weather officials warn the heatwave could run into June, several cities have cut back on public lighting and government offices have been urged to cut power use by a tenth after state utility EVN said the national grid faced strain in coming weeks. Temperatures this week are expected to hover between 26 and 38 degrees Celsius (78.8 and 100.4 degrees F), weather officials say. To tackle the problem, Hanoi has shortened the duration of public lighting by an hour each day, while halving illumination on some major roads and in public parks. "If people all save energy, all will have enough electricity to use, but if not, there will be a partial electrical overload that will put the power grid at risk," said Luong Minh Quan, an electrician with EVN in Hanoi. Last … [Read more...] about Vietnam urges industry to save energy during heatwave

The plant, which is the largest solar power facility in the Central region of Vietnam, began construction on May 29, 2020, with a capacity of 330 MW and a total investment exceeding VND6.5 trillion ($277 million). On December 31, 2020, the Phu My Solar Power Plant started its commercial operation with an initial grid connection of 216 MW. The plant enjoyed a favourable power purchase price of 7.09 US cents/kWh over a 20-year period. After a two-year wait, the remaining 114 MW of the plant received official recognition for commercial operation on May 30 this year, making it the first successful renewable energy transitional project to achieve COD recognition. Bamboo Capital's completion of Phase 1 and Phase 3 of the power plant showcases its comprehensive approach and adherence to legal requirements. This accomplishment reinforces investor confidence and demonstrates the company's commitment to sustainable energy. With the entire 330 MW capacity of the Phu My Plant contributing to … [Read more...] about Phu My Solar Plant receives earliest COD

Like a rising number of her highly educated peers, Liang keeps trading down to try and find a source of income in China's worst youth job market on record. "Finding a job has been really difficult," said the 25-year-old, who lives with her parents in the northern industrial city of Taiyuan. "I told my family that I'm willing to take up manual labor and my mum straight-up cried. She felt so sorry for me." Economists expect such examples to become increasingly common in coming years, as a glut of university graduates and a shortage of factory labor due to an aging workforce deepen China's job market imbalances. Youth unemployment hit a record 20.4% in April, and a new high of 11.58 million university students are due to graduate this summer. All are competing for jobs in what remains one of the world's fastest-growing major economies, but whose manufacturing-heavy structure is increasingly out of step with the aspirations of its younger generations. The industries most … [Read more...] about Chinese graduates lower their ambitions in moribund jobs market

Deputy Governor of the State Bank of Vietnam Pham Thanh Ha In the remaining months of 2023, monetary policy management is forecast to continue facing many challenges, as both the world and domestic economies are still experiencing complicated developments. The State Bank of Vietnam (SBV) continues to closely monitor economic and monetary developments at home and abroad in order to proactively and flexibly use monetary policy tools to control inflation and support economic growth. Deputy Governor of the State Bank of Vietnam, Pham Thanh Ha, spoke with the media about the management of monetary policy. How have external difficulties and challenges, as well as within the country, affected monetary policy management in the first five months of the year? What solutions has the central bank implemented to ease the pressure? In the first months of 2023, many countries continued to face the risk of economic recession and high inflation. The trend of monetary tightening is … [Read more...] about SBV encouragse banks to reduce lending interest rates

Industrial parks and gas ventures are among those that are being kickstarted after long delays Mitsui Oil Exploration is eager to remove long delays in resolving procedures in order to develop the $10-billion Block B of the O Mon gas venture. In the framework of the meeting between Prime Minister Pham Minh Chinh and executives of several major Japanese economic corporations in Hiroshima last week, Mitsui Oil president and CEO Hirotaka Hamamoto asked the PM to help settle pending issues to accelerate the project. The company has proposed a number of solutions to resolve pending issues to be able to officially develop the project as soon as June this year. Block B is located in the Malay-Tho Chu basin in southwest Vietnam, and comprises the development of a gas field and pipeline. It was announced in early 2016 and the first production was expected in the second quarter of 2020. It is considered one of the most significant gas exploitation projects in the country. PM Chinh … [Read more...] about Lack of action holding back key projects

After weeks of brinkmanship, Democrats and Republicans came together to push through an agreement to lift the debt ceiling in rare bipartisan cooperation. Passage of US debt bill boosts equity markets, Fed now in view, illustration photo/ Source: freepik.com Hardline Republicans had warned they would shoot the deal down, saying it did not have enough spending cuts, and some Democrats were also angry at the reductions made. The bill now goes to the Senate before President Joe Biden can sign it off, allowing the government to borrow more cash to service its mammoth debts. Failure to do so before the cash run out -- said to be June 5 -- would have resulted in a default that many warned would hammer the global economy and markets. After the vote, Biden said in a statement: "Tonight, the House took a critical step forward to prevent a first-ever default and protect our country's hard-earned and historic economic recovery. "The only path forward is a bipartisan … [Read more...] about Passage of US debt bill boosts equity markets, Fed now in view

According to recent statistics, foreign direct investment (FDI) disbursement in Vietnam in 2022 reached a record of $22.4 billion, an increase of 13.5 per cent on-year. Peter Ryder - CEO at Indochina Capital Vietnam’s attractive geographical location, ample supply of young and skilled labourers, and a consistent track record of high-performing economic growth have contributed to the country’s success in attracting FDI. Additionally, the Vietnamese government has implemented attractive incentives, making the country a desirable destination for foreign investors. One notable example of FDI in Vietnam’s high-tech sector is Samsung, which has invested heavily in the country. In December 2022, Samsung opened Southeast Asia’s largest research and development centre in Hanoi, with an estimated cost of $220 million. The company also announced plans to increase funding in Vietnam from $18 billion to $20 billion. Moreover, the Samsung Electro-mechanics Vietnam project … [Read more...] about Insights garnered in high-tech FDI