Connect with us

Project

Growth momentum from industrial production

Published

on

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

Foreign offshore wind power investors can sell projects, Vietnam SOEs prioritized to buy

Published

on

Foreign investors of offshore wind power projects in Vietnam can sell their projects, and wholly state-owned enterprises (SOEs) or subsidiaries of those SOEs are prioritized to buy them.

The transaction is only permitted if the Vietnamese investors in the company refuse to purchase, according to the government’s Decree 58/2025 on renewable and new energy, effective from March 3, 2025.

Transactions of a part of an offshore wind project or an entire project must comply with the Electricity Law 2024 and other laws related to investment, enterprises, and sea.

They must be approved by the Ministry of National Defense, the Ministry of Public Security, the Ministry of Foreign Affairs, and the Ministry of Industry and Trade if there is involvement of foreign investors.

A sea-based wind power project in Tra Vinh province, Mekong Delta, southern Vietnam. Photo courtesy of Trungnam Group.

A sea-based wind power project in Tra Vinh province, Mekong Delta, southern Vietnam. Photo courtesy of Trungnam Group.

In cases of not-yet operational projects, the foreign buyers must meet the following requirements.

First, they must have experience in investing and developing at least one offshore wind power project that is operational in Vietnam or in the world. “Experience” includes direct investment, contributing a minimum 15% of the project’s total investment capital, and the ratio of equity to capital contribution being at least 20%.

Second, the foreign buyers must ensure that the offshore wind power project has the participation of domestic enterprises with at least 5% of chartered capital or voting shares of the company that implements such projects. The “domestic enterprises” must be wholly state-owned enterprises (SOEs) or firms with SOEs holding more than a 50% stake.

Third, they must commit to utilizing domestic supplies (workforce, service, products) during their investment, construction and operation, on the basis of ensuring competitiveness of prices, quality, schedule, and available capability.

For operational projects, the transations must meet the “second” requirement mentioned above.

Continue Reading

Project

Law on national defence, security industry, industrial mobilisation passed

Published

on

The 15th National Assembly (NA) on June 27 passed the law on national defence-security industry and industrial mobilisation in its ongoing seventh plenary session.

Specifically, all the 464 deputies present in the sitting, or 95.47% of the total number of deputies, said “yes” to the law.

The law comprises seven chapters and 86 articles.

Article 80 in the draft law proposed earlier about the responsibilities of People’s Court was removed, while Article 28 was added on the development of technologies with dual purposes and Article 71 on training, research, and expert exchanges to serve defence-security industry.

The law will take effects from July 1, 2025.

Continue Reading

Project

Taiwan’s electronics firm Good Way Technology to invest $15 mln more in Vietnam

Published

on

Good Way Technology, a Taiwan-based original design manufacturer (ODM) specialized in computing and mobile peripherals, will invest $15 million more in Vietnam.

In a recent filing with the Taipei Exchange (TPEx), Good Way Technology said it would invest $15 million in Good Way Cayman and then reinvest the entire amount in its sub-subsidiary Good Way Technology Vietnam.

The construction site of Good Way Technology factory in Thai Binh province, northern Vietnam. Photo courtesy of Lao Dong (Labor) newspaper.

The construction site of Good Way Technology factory in Thai Binh province, northern Vietnam. Photo courtesy of Lao Dong (Labor) newspaper.

The purpose of the move is “long-term investment,” according to the filing.

Good Way Technology Vietnam received an investment certificate for the project in October 2023. In February 2024, it kicked off the construction of a $45 million factory in the northern province of Thai Binh.

The factory, located in the Lien Ha Thai Industrial Park, will manufacture peripheral devices like USB connectors for computers. It will have an annual capacity of 3.7 million items.

Construction of the project’s first phase is scheduled for completion in Q3/2024, enter trial production the next quarter and start official production in Q1/2025.

Corresponding times for the second phase will be Q4/2026, Q1/2027 and Q2/2027.

Continue Reading

Trending