Project

Growth momentum from industrial production

Published

10 hours ago

March 16, 2025

Continuing the growth momentum since the end of 2023, industrial production in the third quarter of 2024 grew more positively than the previous quarter with an estimated added value of 9.59% over the same period in 2023, which is the highest level in the period from 2012 to the present (only after the 9.93% increase in the third quarter of 2017).

In the first 9 months, the added value of the entire industrial sector is estimated to increase by 8.34% over the same period in 2023, contributing 2.71 percentage points to the growth rate of the total added value of the entire economy, effectively promoting its role as a growth driver.

According to experts, the positive results of industrial production partly come from the export market on the rise, manufacturers receiving many new orders for the last months of the year. The processing and manufacturing industry has recovered strongly thanks to increased international demand after the global supply chain improved, helping the industry regain its important role as a driving force for economic growth in the first 9 months of 2024.

Broad-based growth

After storm No.3 (storm Yagi) made landfall, many industries such as mining or electricity production and distribution suffered heavy damage, but the production activities of processing and manufacturing enterprises were not much affected thanks to the strong direction of local authorities in ensuring quick resolution of power outages and early restoration of power supply to enterprises. In addition, businesses have also proactively taken measures to prevent storms, overcome post-storm damage, and reorganise production, work overtime to compensate for damaged finished products caused by storms, overcome production downtime, and ensure delivery progress according to signed contracts.

Many other positive factors have also created momentum for the growth of the processing and manufacturing industry, such as garment and footwear enterprises taking advantage of foreign markets and electrical and electronic enterprises increasing production volume due to many export orders. All of these factors have helped the processing and manufacturing industry continue to have strong growth, clearly demonstrating its role as the main driving force for growth in the third quarter, offsetting the decline in the agriculture, forestry and fishery sectors.

According to the Ministry of Industry and Trade, the consumption index of the entire processing and manufacturing industry in the first 9 months increased by 12.5% compared to the same period in 2023 (the same period in 2023 increased by only 0.6%). Meanwhile, the inventory index of the entire processing and manufacturing industry as of September 30 is estimated to have increased by 5.2% compared to the same period last month and only increased by 8.5% compared to the same period last year (the same period last year increased by 19.4%).

At the same time, the average inventory ratio of the entire processing and manufacturing industry in the first 9 months of 2024 was 76.8% (the average level in the first 9 months of 2023 was 85.3%), demonstrating a positive recovery in production and consumption of products. Industrial production also increased across the board as the industrial production index (IIP) in the first 9 months increased in 60/63 localities. Some localities have IIP increases quite high at double digits thanks to the processing and manufacturing industry or the electricity production and distribution industry (IIP of Lai Chau increased by 43.3%; Tra Vinh increased by 41.9%; Phu Tho increased by 38.7%; Khanh Hoa increased by 36.4%; Bac Giang increased by 27.7%; Son La increased by 27.3%; Thanh Hoa increased by 20.4%; and so on).

Removing difficulties, stabilising and developing production

Entering the fourth quarter of 2024, the General Statistics Office assessed that Vietnam’s economy continues to face many difficulties and challenges, and is affected by risks and instabilities in the world regarding economics, politics, natural disasters, epidemics, etc. Phi Huong Nga, Director of the Department of Industrial and Construction Statistics (General Statistics Office), said that in order for the processing and manufacturing industry to continue to play an important role and be the growth engine of the economy, all levels and sectors need to synchronously implement solutions to support industrial production, remove difficulties, and stabilise and develop production.

Accordingly, due to the fact that crude oil and gas prices in the world remain high, logistics costs are increasing, and input materials are being affected, businesses are in great need of support to remove difficulties. All levels and sectors of the government need to promote the timely and effective disbursement of business support packages, create favourable and quick conditions for businesses to borrow preferential loans; simplify administrative procedures; quickly disburse public investment; create conditions to promote production activities; and solve issues relating to jobs and income of workers.

Functional units need to strengthen the prevention of smuggled goods, fight against transfer pricing, and label fraud; at the same time, promote and promote domestic consumption policies, stimulate domestic consumption according to the “Vietnamese people consume Vietnamese goods” movement.

The Ministry of Industry and Trade said that it will continue to focus on removing difficulties and obstacles and supporting businesses to restore production and business, especially those affected by storm No. 3, while putting large industrial projects with important roles into operation to increase production capacity. The Ministry will actively advise on summarising mechanisms and policies on international economic integration, especially the implementation of policies to attract FDI in the industrial sector.

From there, propose appropriate solutions to encourage and bind FDI enterprises to spread, share, and substantially support domestic enterprises to promote technology transfer, develop management skills, form supply chains of materials, raw materials and industry clusters, and improve the competitiveness of Vietnamese enterprises to gradually participate in the global production and supply chain.

Project

US giant Wanek Furniture to expand production capacity in Vietnam by 30% over 5 years

Published

13 minutes ago

March 17, 2025

Industrialzone.net

Wanek Furniture Co., Ltd., a leading wood producer in the U.S., plans to expand its production capacity in Vietnam by 30% over the next five years, said Lien Andrew Michael, its vice president and general director of Asian factories.

At a meeting with Vietnamese Deputy Prime Minister Nguyen Chi Dung in Hanoi on Thursday, Michael stated that Wanek Furniture, a 100% US-invested subsidiary of Ashley Furniture Industries, Inc., has invested more than $200 million in Vietnam since 2008, with factories in the southern province of Binh Duong and the central province of Quang Ngai.

The company is now employing about 16,000 Vietnamese workers, he said, adding that its products have been shipped to 48 countries worldwide.

Deputy Prime Minister Nguyen Chi Dung and Lien Andrew Michael, Wanek Furniture's vice president and general director of Asian factories, in their meeting in Hanoi on March 13,2025. Photo curtesy of the government's news portal. — Deputy Prime Minister Nguyen Chi Dung and Lien Andrew Michael, Wanek Furniture’s vice president and general director of Asian factories, in their meeting in Hanoi on March 13,2025. Photo curtesy of the government’s news portal.

Dung welcomed Wanek’s plan to expand investment in Vietnam in the next five years. He affirmed that Vietnam will continue to improve its institutional framework and create favorable conditions for foreign investors, including those from the U.S., to engage in sustainable and long-term business operations in the country.

The Deputy PM urged the American firm to enhance cooperation with Vietnamese businesses to help Vietnam integrate more deeply into the global value chain.

He suggested Wanek continue to exchange information and coordinate with Vietnamese authorities to manage risks arising from the U.S.’s new trade policies.

“Wanek and the American business community should raise their voices to encourage the U.S. government to continue promoting relations with Vietnam and to minimize policies that could negatively impact the bilateral investment and trade ties,” Dung noted.

Appreciating Wanek’s contributions to the socio-economic development of Vietnam and the Vietnam-U.S. relationship, the Deputy PM emphasized that the U.S. is one of Vietnam’s key strategic partners, especially in the areas of trade and investment.

He affirmed that Vietnam aims to maintain and develop a harmonious, sustainable, and mutually beneficial economic cooperation with the U.S.

“Vietnam is always ready to cooperate in reducing the trade deficit the U.S. is incurring by encouraging businesses to increase imports of goods from the U.S., such as aircraft, LNG, and agricultural products,” he stressed.

Dung also confirmed that Vietnam is willing to engage with U.S. authorities to enhance mutual understanding and jointly address issues of mutual concern, while also promoting negotiations for a bilateral agreement to reduce tariffs and facilitate trade cooperation.

Project

Developing eco-industrial parks to attract FDI

Published

1 hour ago

March 17, 2025

Industrialzone.net

By 2030, about 40-50% of provinces and cities are expected to convert traditional industrial parks into eco-industrial parks, and 8-10% of localities will have plans to build new eco-industrial parks to plan and attract investment industries gradually.

In reality, industrial parks that develop sustainably are becoming the selection criteria for foreign investors with economic benefits and responsibility to the social community. In that flow, industrial parks in Vietnam face a trend of comprehensive transformation to retain investors and attract new investment projects, especially high-tech and large-scale projects.

The Ministry of Planning and Investment has just coordinated with the United Nations Industrial Development Organization (UNIDO) and the Swiss State Secretariat for Economic Affairs (SECO) to sign a project document on replicating the eco-industrial park approach to promote circular economy in Vietnam.

The project aims to promote the implementation of circular economy in enterprises in industrial parks, reduce the environmental impact of industrial production, and adapt to climate change.

Director of the Department of Economic Zones Management under the Ministry of Planning and Investment Le Thanh Quan said that since 2015, the Ministry of Planning and Investment and UNIDO have piloted the conversion of several traditional industrial parks into eco-industrial park models in four localities: Hai Phong, Da Nang, Ho Chi Minh City, and Dong Nai. In turn, 90 enterprises were supported with resource efficiency and cleaner production (RECP) solutions, and 429 out of 889 proposed solutions were implemented in Dinh Vu, Hoa Khanh, Hiep Phuoc, and Amata industrial parks.

RECP solutions helped enterprises reduce electricity consumption by 14,378 MWh/year, fossil fuel consumption by 264,127 GJ/year, water consumption by 278,690 m3/year, and greenhouse gas emissions by 55,663 tonnes of CO2 equivalent/year, bringing economic benefits to enterprises. Many industrial symbiosis and industrial-urban symbiosis solutions have been implemented, contributing to optimising waste reuse, concretising the implementation of circular economy, etc.

Currently, ecological industrial parks are becoming the selection criteria for foreign direct investment (FDI) with the goal of sustainable development, economic benefits and responsibility to the community and society. Many localities and industrial park infrastructure investors have identified that developing industrial parks according to a new model is an inevitable and urgent need to create sustainable competitive advantages.

Sharing at the recently held forum on comprehensive green solutions for industrial parks and investment promotion in Vinh Phuc Province, Chairman of Vinh Phuc Provincial People’s Committee Tran Duy Dong said that during the period of fluctuating global investment capital flows due to the COVID-19 pandemic, FDI capital in this locality was still higher than planned. From 2020 to now, Vinh Phuc has attracted an average of 500-600 million USD of FDI capital annually, the highest year reaching nearly 1 billion USD.

In just three years, from 2021 to 2023, Vinh Phuc’s investment attraction results exceeded the target set for the entire 2020-2025 term of 2 billion USD. This province also attracts high-quality investment flows from big brands such as Honda, Toyota, Piaggio and Daewoo.

According to the plan, by 2030, Vinh Phuc will have 28 industrial parks with an area of about 4,800 hectares, in which priority is given to developing new industrial parks along key traffic routes such as the Hanoi-Lao Cai Expressway, Ring Road 4, Ring Road 5, etc.

In which, orienting investment to develop industrial parks to achieve high efficiency and towards sustainable development is one of the top urgent requirements.

According to economic experts, to successfully replicate the approach of eco-industrial parks to promote circular economy in Vietnam, it is necessary to develop a specific roadmap and implementation plan, continue improving mechanisms and policies, create favourable conditions for this transformation process, propose solutions for practical values and develop criteria to identify and register eco-industrial parks and eco-enterprises certification.

Project

LNG-fired power projects under Vietnam’s PDP VIII must operate in 2028

Published

2 hours ago

March 17, 2025

Industrialzone.net

The Vietnamese government has asked relevant agencies to speed up the progress of LNG-fired power projects towards completion and operation in 2028, earlier than the deadline specified in the power development plan VIII (PDP VIII).

In a recent announcement on amending the PDP VIII, the government noted that for projects with problems, the Ministry of Industry and Trade must help to solve them or report to higher authorities for solutions.

Nhon Trach 3 LNG-fired power plant in Dong Nai province, southern Vietnam. Photo courtesy of PV Power.

Regarding those already having investors, including LNG Quang Ninh, LNG Thai Binh, LNG Quang Trach II, phase 1 of LNG Hai Lang, LNG Son My I and LNG Son My II, and LNG O Mon II III IV, the trade ministry must speed up the progress to operate them in 2028. 2028 is two years earlier than the deadline in PDP VIII.

For project without investors yet such as LNG Quynh Lap, LNG Nghi Son, and LNG Ca Na, relevant agencies must accelerate the progress to complete them in Q1/2028 at the latest.

The government also requested that under-construction power projects must complete the construction and enter operation in 2025. These include the Nhon Trach 3 and Nhon Trach 4 LNG-fired power, Nam Cum 4 hydropower, expanded Hoa Binh hydropower, Vung Ang II thermal power, and Quang Trach I thermal power plants.

In addition, it ordered amendments to PDP VIII must be approved on March 20 at the latest. Electricity sources as baseload of the system must exceed 50% of the total in the amended PDP VIII, with the increase in LNG-fired power making up for the decrease in coal-fired power, the government added.

Vietnam currently has only one operational LNG-fired power project – the Nhon Trach 3 and Nhon Trach 4 in the southern province of Dong Nai.

In its draft amendment to the power development plan VIII (PDP VIII), the Ministry of Industry and Trade said that Vietnam can import LNG from major exporters such as Australia, the United States, and Qatar. In the long term, the country can consider LNG imports from Russia and other Middle East nations.

According to the draft amendment to PDP VIII, the electricity sector is set to consume 10-11.8 billion cubic meters of imported LNG yearly until 2030, then 9-11 billion cubic meters yearly by 2045.