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Vietnam’s industrial production inches up 0.4% in January

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Vietnam’s index of industrial production (IIP) in January fell 9.2% against the previous month and inched up 0.6% year-on-year, according to the General Statistics Office (GSO). 

The manufacturing and processing sector grew by 1.6% compared to the same period last year, while electricity production and distribution increased by 0.4% and water supply, waste management, and treatment activities 9.2%. However, the mining sector experienced a decline of 10.4%.

Forty-seven cities and provinces recorded significant year-over-year growth, with remarkable industrial expansion seen in Nam Dinh province (29.9%), Bac Kan (28.5%), Ben Tre (24.2%), Binh Phuoc (17%), Kien Giang (16.6%), and Hai Phong (16.3%). In the electricity production sector, Tra Vinh stood out with a 56% surge while Khanh Hoa and Binh Thuan documented increases of 30.8% and 20.6%, respectively.

Conversely, Ca Mau experienced a 16.3% decline, followed by Gia Lai at 13.2%, and Ha Tinh at 10.4%. Major economic hubs also struggled with industrial production in the month, with Hanoi dropping 9.8%, Ho Chi Minh City 9.3%, and Da Nang 8.9%.

Key industries showed mixed performance in January. Motor vehicle production surged by 33.8%, while furniture manufacturing increased by 10.6% and leather and related product production 10.3%. The electronics and computer products and food production sector saw modest growth of 3.8% and 2.1%, respectively. However, pharmaceutical production declined by 29.1%, coal mining 20.1%, and electrical equipment production 11.5%.

In terms of specific products, automobile production jumped by 60.7%, television 50.1%, NPK fertiliser 13.7% while natural fiber fabric rose by 9.6% and clothing production 5%.

The number of workers in industrial enterprises posted a 0.2% month-on-month increase, and a 4.5% year-on-year growth as of January 1. Foreign-invested enterprises led employment growth with a 4.9% increase compared to the previous year.

According to Director of the GSO’s Industry and Construction Statistics Department Phi Thi Huong Nga, recent international supply chain shifts present significant opportunities for Vietnam. The country could achieve breakthrough industrial growth in 2025 and beyond by leveraging its advantages and accelerating digital and green transformation as well as meeting the increasingly stringent requirements of the international market.

The electronics and components sector has shown particular promise, while textile and footwear companies have secured orders through the first half of the year, she said, adding the wood processing industry has also shown significant recovery with continued high growth.

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

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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.

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Law on national defence, security industry, industrial mobilisation passed

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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.

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

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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.

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