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Boeing wants more Vietnamese firms in its supply chain: forum

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Boeing is willing to cooperate with Vietnamese suppliers and help them become an important part of the company’s global supply chain, the Vietnam News Agency cited Michael Nguyen, country director of Boeing Vietnam, as saying at an aerospace industry forum in Hanoi on Thursday.

More than 50 suppliers, technology companies, and universities attended the event, the first of its kind in Vietnam, to seek cooperation opportunities with Boeing.

Nguyen said that Boeing currently has seven suppliers based in Vietnam, but not all of them are direct suppliers. 

According to Nguyen, every Boeing plane has a certain number of components and equipment made in Vietnam, such as wings and service doors.

“The Boeing Company outsources to many parts of the world, including Vietnam, which has the manpower potential for manufacturing and supplying products to Boeing,” he said. 

The aircraft maker thus plans to develop its supply chain in Vietnam by making more domestic businesses its suppliers.

“We really want to directly work with Vietnamese companies, but domestic businesses need to learn to walk before they can run,” Nguyen added.

“We really want to help Vietnamese businesses walk fast and run fast.”

At the forum, Boeing also shared the company’s strategy to partner with Vietnamese technology universities to train pilots and aviation engineers and researchers to prepare an emerging workforce with sophisticated technical skills for the future.

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Source: https://tuoitrenews.vn/news/business/20220826/boeing-wants-more-vietnamese-firms-in-its-supply-chain-forum/68783.html

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Global smartphone shipment slowdown could hurt Vietnam

Manufacturing hubs like Vietnam and South Korea could be hurt this year as global smartphone shipments suffered its worst quarterly drop on record, signaling a cool down in consumer demand.

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Shipments declined 18.3% year-on-year in the December quarter to a little over 300 million units, U.S.-based International Data Corporation said Thursday.

Xiaomi’s shipment volume declined steepest at 26.3%, followed by vivo (down 18.9%) and OPPO (down 15.9%).

For the year, global shipments fell 11.3% and marked the lowest total for a decade, the researchers said.

“We have never seen shipments in the holiday quarter come in lower,” Nabila Popal, research director at IDC, said in a press release as reported by Bloomberg.

Along with inflation and economic uncertainties, Covid lockdowns in China were another factor that hurt the industry, including sales of Apple Inc.’s iPhone, she said. “Heavy sales and promotions during the quarter helped deplete existing inventory rather than drive shipment growth.”

Smartphones are among the largest exports for Korea and a key source of income for Vietnam as Samsung Electronics operates factories in both countries.

Samsung last quarter reported its biggest profit fall in over a decade, primarily led by a drop in demand for semiconductors. The company’s exposure to smartphone sales is amplified by its role as the leading provider of memory and displays for the industry.

Source: VnExpress

Source: https://e.nhipcaudautu.vn/economy/global-smartphone-shipment-slowdown-could-hurt-vietnam-3350297/

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Vietnam has potential to lure $38 billion in FDI in 2023

Vietnam is likely to attract $36-38 billion in foreign direct investment this year, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

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The above figure would come as a result of good economic performance in 2022 and increased efforts to improve the business environment, thus helping the Southeast Asian nation to win trust from investors.

Many large firms have shown a keen interest in making investments in the country. Global technology and electronics giants have seen shifting supply chains and have moved to diversify production lines to Vietnam.

The investment expansion announcements made by Samsung, LG, Foxconn, and Lego can therefore be seen as an evidence of the unrelenting appeal of the Vietnamese market.

With this level of FDI inflow, domestic enterprises have the opportunity to participate deeply in the global supply chain. In addition, Vietnam has the chance to catch up with the trend of shifting the global production chain in a bid to attract foreign investors in the a wide range of programs and projects to support national digital transformation and digital transformation for businesses have also been widely carried out.

“I think that investment funds and innovative businesses will be important partners of the Government and ministries in order to share, support and contribute ideas to making investment policies on investment for innovative start-ups, thereby helping Vietnam to have an increasingly attractive business environment in the region and in the world,” Minister of Planning and Investment Nguyen Chi Dung said.

According to a plan set for 2023, as well as the 2021-2030 period, the country targets to attract high-tech projects with modern management and high added value to connect to global production and supply chains.

In addition, it is necessary to build and develop innovation centers and financial centers of regional and international stature, in order to create the driving force for socio-economic development in the coming period.

Minister of Planning and Investment Nguyen said that a large number of Vietnamese startups are gradually growing, attracting greater capital over the years. These are good signs for the innovative startup ecosystem.

To anticipate this FDI wave, ministries, sectors, and localities are required to be well prepared with regards to land, human resources, and infrastructure, whilst continuing to improve the local business environment.

Mr. Dau Anh Tuan, Deputy General Secretary of the Vietnam Chamber of Commerce and Industry, said that there remains an urgent need for a filter in FDI attraction in order to draw quality projects.

VCCI, with the support of the UN Development Program (UNDP), has developed a screening tool specifically for FDI projects. The tool includes mandatory assessments on whether the project fully complies with investment laws in the country; mandatory assessments of potential economic, social, and environmental risks; and criteria based on international best practices and responsible business practices.

Earlier, in 2022, the country attracted approximately $27.72 billion in FDI, equivalent to 89 percent of the figure recorded in the previous year.

However, the disbursement of FDI stood at an estimated $22.4 billion, up 13.5% year on year, making it the highest amount recorded over the past five years. It also indicates a positive sign that businesses are gradually recovering from the COVID-19 pandemic by maintaining and expanding production.

Among the 108 countries and territories pouring capital into Vietnam last year, Singapore ranked first with $6.46 billion, followed by the Republic of Korea ($4.88 billion) and Japan ($4.78 billion).

Source: VGP

Source: https://e.nhipcaudautu.vn/economy/vietnam-has-potential-to-lure-38-billion-in-fdi-in-2023-3350301/

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Vietnamese firms earn big from Amazon

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Many Vietnamese enterprises achieved success in 2022 after shifting to exports through e-commerce platforms, especially Amazon.

The trend is expected to continue this year.

Vietnam was among the top five countries with the highest e-commerce retail sale growth rates in 2022, according to a report by the U.S.’s market research company eMarketer.

Impressive growth

A year after beginning to sell goods on Amazon to European and American markets, ChicnChill, a Vietnamese handicraft brand, reported a growth rate of up to 700 percent.

Tran Tuan Dung, CEO of ChicnChill, said he saw the start-up thrive when a majority of Vietnamese enterprises have scaled down their operations due to the impact of the COVID-19 pandemic.

He and his team spent months studying the lifestyle in European and American markets and home decoration trends there, thereby determining the company’s key products and penetrating into these markets.

After a year, ChicnChill’s home decoration products are preferred on Amazon.

“Our target is a 200-300 percent growth rate per year,” Dung added.

Meanwhile, AnEco, a producer of compostable and environmentally-friendly plastic products, achieved great success last year thanks to trading through e-commerce platforms.

After nearly a year, AnEco added tens of thousands of customers. Its sales in the January-July period of 2022 increased five times over the figure in 2021.

AnEco’s sales through e-commerce platforms in 2022 were forecast to surge 15-20 times.

During the COVID-19 pandemic, Sunhouse, a Vietnamese housewares manufacturer, began trading its products on cross-border e-commerce platforms in early 2022.

The act was considered risky as Sunhouse, despite being popular in the Vietnamese market, is new in the global market and housewares manufacturing is the strength of many developed countries.

However, Sunhouse’s growth has been higher than expected. In the Northern American market, the growth reaches 160-200 percent per month.

Another Vietnamese brand which has enjoyed success in trading on cross-border e-commerce platforms is LAFOOCO, which produces and deals in cashew nuts.

Two weeks after launching its products on Amazon, three out of its four kinds of cashew nuts were listed among 10 new cashew nut products on the e-commerce platform.

A gateway to the world

According to many experts, international e-commerce platforms, such as Alibaba and Amazon, help start-ups and small enterprises seek new markets and minimize costs to enter the global arena.

Online export helps enterprises save costs in building distribution networks and product introduction as all negotiations and transactions are conducted online.

“It will take a company several years if it studies a market itself. However, if it joins hands with prestigious cross-border e-commerce platforms, the way to integrate into the international market will be shortened significantly,” said Le Tung, director of marketing at Sunhouse Group.

Nevertheless, some enterprises which have successfully exported their products through large e-commerce platforms said they have to invest heavily in infrastructure and digital technology to connect with foreign platforms.

In addition, they have to continuously innovate their products and marketing, offer competitive prices, keep pace with consumption trends in the world, and learn about the characteristics of each market.

According to the 2022 report by Amazon Global Selling, nearly 10 million products of Vietnamese enterprises were sold to global customers through Amazon.

Gijae Seong, Vietnam country manager for Amazon Global Selling, said, “With advantages of export supporting policies, high manufacturing capacity and fast growing e-commerce, Vietnam is in a golden period to boost online export.”

Entering Vietnam in 2019, Amazon Global Selling is a program supporting enterprises in developing business. It has accessed more than 300 million consumers on Amazon from over 200 countries worldwide.

A report on the program in 2020 showed that thousands of Vietnamese enterprises had traded on Amazon and achieved a three-fold increase in sales over 2019.

The 2022 report by Amazon Global Selling revealed that despite the impact of the pandemic and the economic recession, the number of Vietnamese trade partners on Amazon soared over 80 percent and the volume of sold goods rose some 35 percent year on year.

Moreover, Vietnamese traders obtained a 45 percent growth rate in export value. Furthermore, the number of Vietnamese traders earning revenue of over US$500,000 rocketed 60 percent.

Export and trade on Amazon have created a strong driving force for Vietnamese enterprises, according to the Amazon Global Selling report.

The five best-selling commodities of Vietnamese enterprises on Amazon in 2022 included housewares, household appliances, garment products, healthcare products, and family utensils.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Many Vietnamese enterprises achieved success in 2022 after shifting to exports through e-commerce platforms, especially Amazon.

The trend is expected to continue this year.

Vietnam was among the top five countries with the highest e-commerce retail sale growth rates in 2022, according to a report by the U.S.’s market research company eMarketer.

Impressive growth

A year after beginning to sell goods on Amazon to European and American markets, ChicnChill, a Vietnamese handicraft brand, reported a growth rate of up to 700 percent.

Tran Tuan Dung, CEO of ChicnChill, said he saw the start-up thrive when a majority of Vietnamese enterprises have scaled down their operations due to the impact of the COVID-19 pandemic.

He and his team spent months studying the lifestyle in European and American markets and home decoration trends there, thereby determining the company’s key products and penetrating into these markets.

After a year, ChicnChill’s home decoration products are preferred on Amazon.

“Our target is a 200-300 percent growth rate per year,” Dung added.

Meanwhile, AnEco, a producer of compostable and environmentally-friendly plastic products, achieved great success last year thanks to trading through e-commerce platforms.

After nearly a year, AnEco added tens of thousands of customers. Its sales in the January-July period of 2022 increased five times over the figure in 2021.

AnEco’s sales through e-commerce platforms in 2022 were forecast to surge 15-20 times.

During the COVID-19 pandemic, Sunhouse, a Vietnamese housewares manufacturer, began trading its products on cross-border e-commerce platforms in early 2022.

The act was considered risky as Sunhouse, despite being popular in the Vietnamese market, is new in the global market and housewares manufacturing is the strength of many developed countries.

However, Sunhouse’s growth has been higher than expected. In the Northern American market, the growth reaches 160-200 percent per month.

Another Vietnamese brand which has enjoyed success in trading on cross-border e-commerce platforms is LAFOOCO, which produces and deals in cashew nuts.

Two weeks after launching its products on Amazon, three out of its four kinds of cashew nuts were listed among 10 new cashew nut products on the e-commerce platform.

A gateway to the world

According to many experts, international e-commerce platforms, such as Alibaba and Amazon, help start-ups and small enterprises seek new markets and minimize costs to enter the global arena.

Online export helps enterprises save costs in building distribution networks and product introduction as all negotiations and transactions are conducted online.

“It will take a company several years if it studies a market itself. However, if it joins hands with prestigious cross-border e-commerce platforms, the way to integrate into the international market will be shortened significantly,” said Le Tung, director of marketing at Sunhouse Group.

Nevertheless, some enterprises which have successfully exported their products through large e-commerce platforms said they have to invest heavily in infrastructure and digital technology to connect with foreign platforms.

In addition, they have to continuously innovate their products and marketing, offer competitive prices, keep pace with consumption trends in the world, and learn about the characteristics of each market.

According to the 2022 report by Amazon Global Selling, nearly 10 million products of Vietnamese enterprises were sold to global customers through Amazon.

Gijae Seong, Vietnam country manager for Amazon Global Selling, said, “With advantages of export supporting policies, high manufacturing capacity and fast growing e-commerce, Vietnam is in a golden period to boost online export.”

Entering Vietnam in 2019, Amazon Global Selling is a program supporting enterprises in developing business. It has accessed more than 300 million consumers on Amazon from over 200 countries worldwide.

A report on the program in 2020 showed that thousands of Vietnamese enterprises had traded on Amazon and achieved a three-fold increase in sales over 2019.

The 2022 report by Amazon Global Selling revealed that despite the impact of the pandemic and the economic recession, the number of Vietnamese trade partners on Amazon soared over 80 percent and the volume of sold goods rose some 35 percent year on year.

Moreover, Vietnamese traders obtained a 45 percent growth rate in export value. Furthermore, the number of Vietnamese traders earning revenue of over US$500,000 rocketed 60 percent.

Export and trade on Amazon have created a strong driving force for Vietnamese enterprises, according to the Amazon Global Selling report.

The five best-selling commodities of Vietnamese enterprises on Amazon in 2022 included housewares, household appliances, garment products, healthcare products, and family utensils.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20230130/vietnamese-firms-earn-big-from-amazon/71222.html

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