Great opportunities Vietnam has climbed up the value chain over the years, becoming a key electronics manufacturing hub, attracting stable foreign direct investment with its sound macro fundamentals, preferential tax incentives and an abundance of relatively cheap and productive labor. Electronics, a major driving force of Vietnam’s export growth Vietnamese enterprises are increasingly integrating into the global production chain, as confirmed by international organizations, including the World Bank and the Hongkong and Shanghai Banking Corporation Limited (HSBC) in their reports. For decades an apparel and footwear exporter with a low value added, Vietnam has gradually become an important production center in the technology industry, according to HSBC. Ngo Dang Khoa, HSBC Vietnam’s Country Head of Markets and Securities, said Vietnam has become a production center of electronics and cell phone components, helping it lure an increasing number of foreign … [Read more...] about Vietnam’s star rises in global supply chains
Vietnam auto industry
First-half industry and trade highlights
Ngo Khai Hoan, Deputy Director of the Vietnam Industry Agency Ngo Khai Hoan, Deputy Director of the Vietnam Industry Agency: Industrial production recovers strongly With the government’s decision to switch from “Zero COVID-19” to safe and flexible adaptation to the pandemic, industrial production has seen strong recovery and has been restored to pre-pandemic levels, especially the manufacturing and processing sector. The added value of the industrial sector increased by 8.48 percent in the first half of 2022 compared to a year ago. The index of industrial production (IIP) grew by 8.7 percent in the first half of the year, with the manufacturing and processing sector going up by 9.7 percent. Almost all localities saw IIP increases, with high rates recorded in the provinces of Bac Giang, Bac Ninh, Quang Nam and Binh Phuoc. --------------------------------------------------------------------------- Tran Duy Dong, Director of the Domestic Market Department … [Read more...] about First-half industry and trade highlights
Singapore and Vietnam commit to further strong collaborations
In February, Vietnamese State President Nguyen Xuan Phuc paid a state visit to Singapore, with both nations vowing to continue cementing economic ties. How has this cooperation been implemented so far? Singaporean Ambassador to Vietnam Jaya Ratnam Singapore and Vietnam’s strong economic, trade, and investment ties are underpinned by decades of consistent and meaningful engagement between our governments and peoples. During President Nguyen Xuan Phuc’s state visit to Singapore earlier this year, he and President Halimah Yacob reaffirmed these ties and committed to further collaboration. Our leaders also oversaw the signing of an MoU on economic and trade cooperation between our two countries. We are starting from a very strong base. Singapore has been the leading source of foreign direct investment into Vietnam for the past two years. Singapore is now Vietnam’s second largest foreign investor, with total registered capital of nearly $70 billion. This demonstrates the … [Read more...] about Singapore and Vietnam commit to further strong collaborations
Hanoi promotes industrial infrastructure development for sustainable growth
The capital city is committed to accompanying the business community in promoting industrial products using advanced and environmentally friendly technologies with high-added value. Hanoi is pushing for the development of industrial infrastructure and key industrial products, seen as the driving force for the capital city’s sustainable economic growth. Thang Long Industrial Park in Dong Anh District, Hanoi. File photo During the first six months of 2022, the municipal Department of Industry and Trade started the construction of six industrial parks and is working on accelerating 38 other projects in the city. For the 2021-2025 period, Hanoi aims for supporting industries to make up 30% of the total value of industrial production, an increase of 5% from the current level; raise the value of key industrial products to 40-45% of total industrial production, and expects 10% of businesses in Hanoi to stay among Vietnam’s top 500 companies. To realize this goal, … [Read more...] about Hanoi promotes industrial infrastructure development for sustainable growth
High-quality human resources key to sustainable tourism industry
Illustrative image (Source: VNA) HCM City (VNS/VNA) - As tourism continues to revive, the hotel and tourism industry is suffering from challenges in recruiting qualified human resources post pandemic, industry players warned. Speaking at a seminar on August 9 in HCM City, Dr Nguyen Anh Tuan, director of the Institute for Tourism Development Research, said there was a lack of high-quality staff in the industry. Vu The Binh, chairman of the Vietnam Tourism Association , said that human resources were a weak point for the industry even before the pandemic. “Efficient, hard-working, and resourceful human resources are the backbone of any successful business. It is even more so in the case of the hotel industry.” Successful hotel operations are sustained by customer-oriented and hard-working employees who have adequate competencies, he added. A large number of hotels and resorts stopped operation during the two-year pandemic, and coming back could prove challenging, he … [Read more...] about High-quality human resources key to sustainable tourism industry
Vietnam – new stop for semiconductor producers
Illustrative image (Source: VNA) Hanoi (VNA) – Samsung Electronics ’ plan to manufacture semiconductor products in Vietnam has sparked the hope that the Southeast Asian nation will be a new stop for the semiconductor industry . During his recent trip to Vietnam, CEO Roh Tae-Moon unveiled that Samsung will make an additional investment of 3.3 billion USD in the country this year, enabling the Korean technology giant to start producing semiconductor components in Vietnam by July 2023. In fact, part of the investment commitment has been materialised, with 841 million USD for Samsung Complex HCMC-SEHC in Ho Chi Minh City and 1.18 billion USD for Samsung Electro-Mechanics in the northern province of Thai Nguyen. Since 2019, the tech giant has announced that it will raise investment in the semiconductor industry to a whopping 151 billion USD. When Vice Chairman Lee Jae-yong visited Vietnam in 2020, host leaders expressed their wish that Samsung will invest in the … [Read more...] about Vietnam – new stop for semiconductor producers
Vietnam mulls ways to boost inbound travel
Foreign tourists visit the Independence Palace in HCM City on August 8. (Photo: VNA) HCM City (VNS/VNA) - Strict visa policies and a shortage of human resources and infrastructure in the tourism sector have stymied recovery of the travel industry, and the target of five million international arrivals this year could be out of reach, industry players have warned. Domestic travel has seen a strong rebound whereas international tourism, with a target of five million arrivals this year, remains in a slump, said Vu The Binh, Chairman of the Vietnam Tourism Association. Domestic visitor numbers topped 71.1 million in just the first seven months of this year against a full-year target of 60 million, he said. In the same period there were only 733,000 international visitors, or 8% of pre-pandemic numbers, he told a two-day programme titled ‘Lien Ket Suc Manh Du Lich Vietnam Nam 2022’ (Power of Vietnam Tourism Linkages) that ended in Ho Chi Minh City on August 9. Though … [Read more...] about Vietnam mulls ways to boost inbound travel
Vietnam still struggles to welcome back int’l tourists
With the peak summer travel season drawing to a close, Vietnam’s international tourism segment still faces bottlenecks on its route to full recovery. Within the framework of a program early this week to discuss the current state of the Vietnamese tourism sector, representatives from businesses and organizations across the country voiced doubts that Vietnam will meet its goal of welcoming five million foreign tourists by the end of the year if regulations governing visa policies, infrastructure, and personnel are not relaxed. Incomplete recovery According to Cao Thi Tuyet Lan, sales manager at Viettours Incentives & Events Co. Ltd., foreign tourists still find it difficult to enter the country despite Vietnam having fully reopened its borders. “What's more, it is hard to apply for visas for business travelers who work with domestic enterprises," Lan said. “[The domestic partner] first has to register [the foreign partner] with the Immigration Department, then wait for a … [Read more...] about Vietnam still struggles to welcome back int’l tourists
Vietnam’s exports to EU increase robustly
Currently, Vietnam's export products are available in most markets in the EU and have recorded good growth, focusing strongly on products such as textiles, footwear, coffee, seafood, vegetables and fruits, black pepper, and rice. Among these, coffee posted the strongest growth, with an increase of 75.2 percent, followed by seafood and black pepper, with 42.1 percent and 43.9 percent, respectively, over the same period last year. According to experts, the EU-Vietnam Free Trade Agreement (EVFTA), which took effect from August 2020, has created leverage to promote two-way trade between Vietnam and the EU, significantly helping Vietnamese goods improve competitiveness and expand market share in the EU market. On August 11, the Vietnam Chamber of Commerce and Industry - Ho Chi Minh City Branch (VCCI-HCM) coordinated with Polish departments in HCMC to organize the Vietnam - Poland Trade Exchange. A representative of VCCI-HCM said that in 2021, the two-way trade turnover between Vietnam … [Read more...] about Vietnam’s exports to EU increase robustly
Vietnam’s export to American market sees sharp rebound
Illustrative image (Photo: VNA) Hanoi (VNA) - Post-pandemic robust rebound in the American market has ushered in multiple opportunities for Vietnam to expand its export of key products, according to the Ministry of Industry and Trade. Vietnam in America such as Canada and Mexico have also increased imports from the Southeast Asian nation. According to the MoIT, handsets, computers, and electronic items hold the largest proportion in Vietnam’s export structure to the American market, reaching 43.3%; followed by textile, apparel, and footwear products with 25%; wood and wooden items with 8%; and agricultural and agro-aquatic product s with 4%. VNA … [Read more...] about Vietnam’s export to American market sees sharp rebound