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Industrial production sees positive recovery

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1 month ago

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Vietnam’s economic growth in the first half of 2024 achieved a positive result with a figure of 6.42%. The significant recovery in industrial production has made an important contribution.

According to the General Statistics Office, the industrial sector experienced many positive changes and achieved good growth, in the first six months of the year. Notably, in the second quarter, industrial production recovered positively, based on relatively low growth in the same period of 2023 (0.86%), with the added value reaching 8.55%, compared to the same period. Specifically, the manufacturing and processing industry surged with a growth rate of 10.04%, while the electricity production and distribution industry continued to grow strongly at 14.15%, ensuring electricity supply for production, business, and people’s needs. The water supply, waste management, and wastewater treatment sectors increased by 7.83%, and the mining industry recorded a negative growth of 9.06%, due to the policy of gradually reducing domestic mineral extraction.

Overall, in the first six months, the added value of the industrial sector reached 7.54%, and many secondary sectors had double-digit growth.

Enterprise’s recovery beyond expectations

Despite many pessimistic forecasts, at the beginning of the year, industrial enterprises have shown a good recovery in the first half of the year. Many businesses have made a spectacular comeback.

For multi-industry conglomerates like DNP Holding, systems operation under unstable economic conditions over the past six months, has been a significant challenge. However, by the end of May, the company’s revenue exceeded 50% of the plan, and profits increased by more than 50%.

Tran Huu Chuyen, Deputy General Director of the Group, noted that this result was beyond the initial forecast thanks to a remarkable orders recovery amid cheaper and more accessible credit. “Despite challenging economic conditions, we highly appreciate the timely support from the Government. We have taken advantage of boosts related to policy to restructure and recover effectively.”

A highlight in the economic picture of the past six months was the attraction of foreign direct investment (FDI). The capital flow continued to increase, estimated at 10.84 billion USD, up 8.2% from last year. This is the highest figure for the first six months in the past five years.

This has provided companies in the cleanroom and high-tech supply areas, such as Intech Group, with many advantages. According to Cao Dai Thang, CEO of the Group, the industrial production activities of FDI enterprises have been quite active, with a high demand for building production systems, allowing the company to recover better.

Phi Huong Nga, Director of the Industrial and Construction Statistics Department under the General Statistics Office, assessed that industrial growth was positive, with industrial production continuing the recovery momentum from the first quarter of 2024 and showing a clearer growth trend in the second quarter. The industrial production index increased month by month and quarter by quarter, with 5.9% in the first quarter, an estimated 9.5% in the second quarter, and an estimated 7.7% in the first six months of 2024, compared to the same period last year. Among these, three out of four primary industrial sectors (including manufacturing, electricity production and distribution, water supply, and waste treatment) increased compared to last year, with growth rates of 8.5%, 13.0%, and 6.3%, respectively.

Especially, the manufacturing and processing industry, which accounts for more than 74% of the added value of the entire industrial sector, continued its growth trajectory in a clearer trend, increasing by 8.5% in the first half of the year, compared to the same period last year while the same period saw a decrease of 1.8%.

In the manufacturing and processing industry, inventory levels decreased as reflected by an increase in production index, a higher consumption index than production, and an inventory index reduction. Specifically, the production index and consumption index increased by 8.5% and 10.8%, respectively (the consumption index increased by 2.3 percentage points higher than the production index) and the inventory index was expected to increase by 9.6% as of June 30, 2024, compared to the same time last year, significantly lower than the 19.9% increase in the same period in 2023. The average inventory ratio of the manufacturing and processing industry in the first six months of 2024 was 76.9%, much lower than the 83.1% increase in the same period in 2023.

Business confidence

Le Duy Binh, an economic expert, believes that this recovery is also clearly reflected in the relatively high increase in exports and imports, with 14.5% and 17%, respectively. These figures indicate that enterprises had good order volumes and showed positive imports of raw materials for production.

Binh said the number of enterprises returning to the market and the number of newly established enterprises increased strongly, showing that the health of the business sector has improved. This has reversed the trend of previous years when the number of enterprises withdrawing was higher than that of new establishments. “Particularly, the recovery of the manufacturing and processing industry has been stronger, showing a more reliable recovery of the economy,” said Binh.

Paulo Medas, Head of the International Monetary Fund (IMF)’s 2024 Article IV Mission to Vietnam, gave a positive evaluation of Vietnam’s flexible fiscal and monetary policy management. State’s support policies are targeted correctly to help the economy recover and grow more sustainably. “Especially, the recovery of the business sector shows that business confidence has returned. This is also quite clearly reflected in the FDI sector. When global capital flows are still very gloomy, Vietnam remains a reliable destination for many foreign investors”, Paulo assessed.

However, in the context of many global uncertainties, the Government and relevant ministries and agencies must continue to support business activities, Binh added. There are still more than 100,000 enterprises withdrawing from the market, and the survey results on business trends of manufacturing and processing enterprises showed that more than 60% still believe that the business situation will not improve. This indicates that there are still issues in need of being addressed to improve the business environment and boost the spirit and enthusiasm of enterprises in business activities.

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Billionaire Trần Bá Dương’s VND 2,000 Billion, 200-Hectare Industrial Park in Thái Bình Could Begin Operations This Year

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3 weeks ago

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March 31, 2025

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The Thaco – Thái Bình Industrial Park, covering more than 194 hectares with an investment of over VND 2,100 billion, is expected to become operational within this year, according to the development plan.

Recently, provincial leaders of Thái Bình conducted an on-site inspection of land clearance efforts and infrastructure construction progress at the Thaco – Thái Bình Industrial Park located in Quỳnh Phụ District.

To date, Quỳnh Phụ District has completed compensation and land clearance for nearly 192 hectares of agricultural land, involving the land recovery of 1,067 households to hand over to the investor for project implementation.

Currently, the district is focusing on clearing the remaining land, involving 94 households in Lương Cầu Hamlet, An Cầu Commune. At the same time, it is coordinating with the electricity sector to relocate a 220kV high-voltage power line.

On the investor’s side, groundwork construction is underway, including roadbeds, internal roads, stormwater and wastewater drainage systems, and communication infrastructure within the industrial park.

The Thaco – Thái Bình Industrial Park is a specialized high-tech agricultural industrial park proposed by THACO Group (chaired by billionaire Trần Bá Dương) since 2017, originally planned to cover 250 hectares. By July 2017, the provincial authorities agreed to incorporate the project into Thái Bình’s industrial development master plan.

In August 2020, THACO officially broke ground on the industrial park’s infrastructure. A year later, in August 2021, the project’s investment certificate was revised, confirming a total investment of over VND 2,100 billion and a land area of more than 194 hectares. The project is being developed across An Thái, An Ninh, and An Cầu communes in Quỳnh Phụ District.

According to the roadmap, the investor is determined to complete and officially launch the project in 2025.

The Thaco – Thái Bình Industrial Park is designed as a dedicated high-tech agricultural zone, featuring various functional subdivisions including an administration center, agro-food processing zone, high-tech agricultural training center, experimental farms, agricultural materials production area, and a cargo transport port.

This project is considered one of the key developments in Thái Bình Province, playing a crucial role in the region’s socio-economic growth strategy.

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Carbon labels: a gateway to high-value global markets

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4 weeks ago

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March 27, 2025

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In an era where sustainability is not just a choice but a requirement, carbon labelling is emerging as a crucial factor for exporters.

Carbon labels: a gateway to high-value global markets
Vu Trung Kien, director Climate Change Resilience Centre

Countries like the US and the European Union are implementing stringent carbon regulations, such as the EU’s Carbon Border Adjustment Mechanism and increasing scrutiny on supply chain emissions.

Vietnamese businesses that fail to adopt carbon labelling risk losing access to lucrative markets. However, those that proactively integrate carbon footprint transparency into their products can gain a competitive advantage, enhance brand reputation, and secure long-term profitability.

Across the world, forward-thinking countries have embraced carbon labelling as a strategic tool for trade success. These efforts have not only helped businesses comply with regulations but have also opened doors to new investment and consumer markets.

Japan has implemented a government-backed carbon labelling programme that allows companies to display detailed carbon footprint information on their products. This has strengthened consumer trust and made Japanese goods more attractive in environmentally conscious markets such as the EU and North America.

The South Korean government incentivises businesses to adopt carbon labelling through tax benefits and green export support schemes. Companies that participate gain access to new trading partners, particularly in Europe, where sustainable supply chains are becoming the norm. Thailand, a key competitor to Vietnam, has integrated carbon labelling across industries such as food processing, textiles, and electronics. Thai exporters, particularly in agriculture, now benefit from preferential treatment in European supermarkets and trade agreements.

These case studies highlight an important lesson: carbon labelling is not just about compliance – it is a business strategy that enhances market access, builds consumer confidence, and future-proofs exports.

For businesses in Vietnam, waiting until carbon labelling becomes a legal requirement would be a mistake. Many international corporations have already set ambitious sustainability targets, requiring suppliers to provide verifiable carbon footprint data. Voluntary carbon labelling can position Vietnamese enterprises as reliable, future-ready partners.

It works by companies conducting a life cycle assessment to measure emissions from production to disposal. Products are labelled with a carbon footprint score, helping consumers and businesses make informed choices. Labels are often verified by third-party certifiers to ensure credibility and compliance with global standards.

The benefits include a boost for green supply chains. Companies like Nestlé and Unilever prioritise suppliers that provide carbon footprint transparency. Vietnamese food and beverage exporters can gain an edge by aligning with such demands.

Businesses with carbon-reduction strategies attract funding from international banks and investors that focus on increasing environmental, social, and governance (ESG) investment.

It also leads to improved consumer trust and higher sales. Studies indicate that climate-conscious consumers prefer labelled products. In markets like the EU, organic rice, seafood, and textiles from carbon-labelled brands command higher prices.

For Vietnamese companies looking to integrate carbon labelling into their strategy, a step-by-step approach can make the transition smooth and effective.

Pilot carbon labelling programmes in key sectors are critical, with a focus on industries where carbon labelling is already gaining momentum, such as textiles, seafood, agriculture, and furniture.

The process must start with one or two high-export products and conduct a carbon footprint analysis to understand emissions sources. Industry associations must also work with international partners to ensure the label aligns with EU and US standards.

Collaboration with certification bodies is also key, and partnering with recognised organisations such as the Carbon Trust (UK), TÜV Rheinland (Germany), or SGS (Switzerland) for certification is advised, as is engaging with Vietnamese regulatory bodies to advocate for government incentives similar to South Korea’s model.

Another vital part of the process is to leverage green financing and government incentives to access ESG-linked loans and grants that support supply chain improvements. Alongside this, there needs to be a move to propose carbon labelling incentive programmes through the Vietnam Chamber of Commerce and Industry or the Ministry of Industry and Trade.

The future of Vietnam’s export competitiveness is green. The world is moving towards sustainable trade, and carbon-labelling is no longer optional for businesses that want to thrive in international markets. By learning from successful global initiatives, Vietnamese companies can turn carbon transparency into an economic advantage rather than a compliance burden.

The time to act is now. Companies that lead in carbon labelling will not only future-proof their businesses but also shape Vietnam’s reputation as a responsible trade leader.

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Industrial parks in Binh Duong increase FDI attraction by 232%

Published

4 weeks ago

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March 27, 2025

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In the first quarter of 2025, an additional 588 million USD in foreign direct investment (FDI) poured into Binh Duong Province’s industrial parks, marking a 232% increase compared to the same period in 2024 and reaching 53.43% of the 2025 annual plan, as reported by the provincial Management Board of Industrial Parks on March 26.

Of the 588 million in FDI USD invested in industrial parks during the first quarter, there were 25 new investment projects with a total registered capital of more than 60.2 million USD and 26 projects with additional capital adjustments, contributing nearly 528 million USD in increased capital.

With this positive investment attraction in the first quarter, industrial parks in Binh Duong have so far attracted 3,252 active projects, including 2,561 FDI projects with total registered capital of 31.57 billion USD and 691 domestic investment projects with total registered capital of 93.664 trillion VND.

According to the Management Board of Industrial Parks in Binh Duong, 10 new projects have become operational in the first quarter. Currently, the province’s industrial parks have 2,706 active business and production projects, including 507 domestic projects and 2,199 FDI projects.

With effective operations, the estimated business and production targets for the first quarter of 2025 in the province’s industrial parks exceeded 11 billion USD, increasing by 7.72% compared to the same period last year and reaching 31.49% of the annual plan. Export turnover surpassed 6.34 billion USD, up 9.22% year on year, achieving 25.36% of the annual plan. Taxes and budget contributions reached nearly 175.4 million USD, increasing by 10.23% year on year and fulfilling 25% of the annual target.

Binh Duong currently has 29 industrial parks with a total planned area of 12,746 hectares. Of which, 28 industrial parks are already operational, covering a total of 12,046 hectares.

According to the Binh Duong Provincial Master Plan for 2021-2030, with a vision to 2050, which was approved by the prime minister, the province is planned to develop 48 to 50 industrial parks with a total planned area of 25,000 hectares.

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