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Vietnam’s five-month FDI disbursement rises 7.8 percent

Disbursed volume of FDI reached $7.71 billion over the last five months, up 7.8 percent from the same period last year, according to the Ministry of Planning and Investment.

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As of May 20, Vietnam attracted $11.71 billion in FDI, equal to 83.7 percent of the same period last year.

Of the above figure, foreign investors pledged to invest $4.12 billion in 578 new projects, down 53.4 percent, and to add $5.61 billion in 395 existing projects. 

Meanwhile, the accumulative value of share purchase by foreign investors rose 51.6 percent to $1.98 billion.

Foreign capital has been poured into 18 out of 21 economic sectors, with processing and manufacturing making up the lion share, $6.8 billion or 58.2 percent of the total registered capital, followed by real estate, information-communications, and science-technology.

Among the 79 countries and territories investing in Vietnam, Singapore took the lead with nearly $3 billion, followed by the Republic of Korea ($2.06 billion), and Denmark ($1.32 billion).

The southern province of Binh Duong, the northern province of Bac Ninh and Ho Chi Minh City attracted the most foreign investments, with more than $2.52 billion, nearly $1.65 billion and over $1.3 billion, respectively.

Source: VGP

Source: https://e.nhipcaudautu.vn/economy/vietnams-five-month-fdi-disbursement-rises-78-percent-3345986/

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Vietnam to see wave of Chinese budget EV imports

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The Vietnamese low-cost electric vehicle (EV) market is promising to boom with a series of Chinese brands launching plans to assemble and distribute their products in Vietnam.

The local EV market may be flooded with super cheap units although the after-sales service and quality of these vehicles are unknown.

Bui Van Huu, chairman of TMT Automobile Joint Stock Company (TMT Motors), a Vietnamese auto firm, said his company will pioneer the distribution of China’s HongGuang MiniEVs 4 in Vietnam.

The firm joined hands with the joint venture of General Motors and SAIC – WULING in mid-February this year to exclusively manufacture, assemble, and distribute EVs of General Motors and SAIC – WULING in Vietnam.

According to TMT Motors, the EVs will be assembled in a factory in Hung Yen Province, northern Vietnam with a capacity of 30,000 units per year. The vehicles are suitable for use in urban areas and can replace motorbikes.

HongGuang MiniEVs are priced at over US$4,000 each. The price in Vietnam has yet to be announced officially but it was supposed to range between VND100-260 million ($4,263-11,085) each.

Meanwhile, the lowest price of EVs of other auto firms, such as VinFast, MG, Kia, Mercedes, and Audi, are at about VND700 million ($29,794) each, while some cost up to VND6 billion ($255,794) apiece.

The trend of Chinese automobile enterprises flocking to Vietnam continues with Haima returning to the Southeast Asian country early this year. The firm previously withdrew from the Vietnamese market due to ineffective business.

Haima has sought assemblers and traders for Haima 8S, 7X, and 7X-E models in Vietnam.

The general director of an auto assembler in Ho Chi Minh City told Tuoi Tre (Youth) newspaper that Chinese EV brands have returned to the Vietnamese market with many products. His company has also assembled several electric car and truck models.

He said that low-cost EVs are priced at some VND200-260 million ($8,526-11,085) each, adding that they cannot travel over a long distance at a high speed. However, they will still have their market due to the low costs.

According to some other experts, the low cost is not a decisive factor to attract buyers.

In Vietnam, small autos, such as Honda Brio, Toyota Wigo, and Suzuki Celerio, which are priced at VND350-500 million ($14,899-21,284) each, have experienced a slump.

Associate Professor Dr. Ly Hung Anh from the Ho Chi Minh City University of Technology said in 1998-2005, a huge volume of Chinese low-cost motorbikes entered the Vietnamese market at VND6-8.5 million ($255-361) each.

The loose management caused the local market to be flooded with poor-quality, unsafe, and environmentally polluting vehicles.

They were later abandoned gradually and have nearly disappeared from the domestic market.

Anh said if EVs are manufactured in high volume and with low costs, risks will outweigh the benefits. 

Nguyen Minh Dong, another auto expert, shared the view, calling on consumers not to boycott Chinese-made vehicles.

The development of budget mini EVs is a positive trend but the vehicles and their batteries should be managed closely to protect the environment.

Many auto experts agreed that low-cost EVs may apply outdated technology. It is a must to prevent Vietnam from becoming a dumping site of EV batteries, not to mention risks to traffic safety.

Therefore, the import of equipment for EV manufacturing and assembly should be put under strict control, Dong noted.

Tran Nhu Phuong, deputy general director of Ford Suoi Tien in Ho Chi Minh City, said all cars are checked before being put into use.

However, criteria and standards for EVs, batteries, and charging stations need improving.

Chinese autos: easy to buy, hard to resell

Gasoline- and oil-powered cars made in China have been increasingly imported into Vietnam.

After using a Beijing X7 car for a year, Nguyen Trong, residing in Binh Thanh District, Ho Chi Minh City, said he is satisfied with the vehicle. 

Chinese autos are at an advantage in features and fittings compared with other autos in the same segments and with equivalent prices.

“Many people have asked me if the car is durable and if I feel secure when using it,” Trong added.

“Honestly, I have used it for over a year, so I do not dare to affirm its quality but its technology and design are good. It’s convenient to drive it in the inner city.’

At present, ‘made-in-China’ autos are sold in Vietnam at below VND800 million ($34,108) each. For example, Zotye T800, Dongfeng T5, and Beijing X7 cost VND728 million ($30,988), VND700 million ($29,796), and VND750 million ($31,925) apiece.

However, second-hand auto traders are hesitant about Chinese-origin cars.

Quoc Hung, the owner of an old auto showroom called Hung Auto in Thu Duc City, under Ho Chi Minh City, said second-hand autos with Japanese, South Korean, and German brands have higher costs than Chinese ones.

Hung earlier bought a Baic Q7 unit which had run over 20,000 kilometers at VND390 million ($16,600) but he could not find a buyer for the vehicle after three to four months.

As a result, he had to suffer a loss of some VND30 million ($1,278) to sell the car.

According to the General Department of Vietnam Customs, 17,340 Chinese autos worth more than $714 million were imported into Vietnam last year.

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

The Vietnamese low-cost electric vehicle (EV) market is promising to boom with a series of Chinese brands launching plans to assemble and distribute their products in Vietnam.

The local EV market may be flooded with super cheap units although the after-sales service and quality of these vehicles are unknown.

Bui Van Huu, chairman of TMT Automobile Joint Stock Company (TMT Motors), a Vietnamese auto firm, said his company will pioneer the distribution of China’s HongGuang MiniEVs 4 in Vietnam.

The firm joined hands with the joint venture of General Motors and SAIC – WULING in mid-February this year to exclusively manufacture, assemble, and distribute EVs of General Motors and SAIC – WULING in Vietnam.

According to TMT Motors, the EVs will be assembled in a factory in Hung Yen Province, northern Vietnam with a capacity of 30,000 units per year. The vehicles are suitable for use in urban areas and can replace motorbikes.

HongGuang MiniEVs are priced at over US$4,000 each. The price in Vietnam has yet to be announced officially but it was supposed to range between VND100-260 million ($4,263-11,085) each.

Meanwhile, the lowest price of EVs of other auto firms, such as VinFast, MG, Kia, Mercedes, and Audi, are at about VND700 million ($29,794) each, while some cost up to VND6 billion ($255,794) apiece.

The trend of Chinese automobile enterprises flocking to Vietnam continues with Haima returning to the Southeast Asian country early this year. The firm previously withdrew from the Vietnamese market due to ineffective business.

Haima has sought assemblers and traders for Haima 8S, 7X, and 7X-E models in Vietnam.

The general director of an auto assembler in Ho Chi Minh City told Tuoi Tre (Youth) newspaper that Chinese EV brands have returned to the Vietnamese market with many products. His company has also assembled several electric car and truck models.

He said that low-cost EVs are priced at some VND200-260 million ($8,526-11,085) each, adding that they cannot travel over a long distance at a high speed. However, they will still have their market due to the low costs.

According to some other experts, the low cost is not a decisive factor to attract buyers.

In Vietnam, small autos, such as Honda Brio, Toyota Wigo, and Suzuki Celerio, which are priced at VND350-500 million ($14,899-21,284) each, have experienced a slump.

Associate Professor Dr. Ly Hung Anh from the Ho Chi Minh City University of Technology said in 1998-2005, a huge volume of Chinese low-cost motorbikes entered the Vietnamese market at VND6-8.5 million ($255-361) each.

The loose management caused the local market to be flooded with poor-quality, unsafe, and environmentally polluting vehicles.

They were later abandoned gradually and have nearly disappeared from the domestic market.

Anh said if EVs are manufactured in high volume and with low costs, risks will outweigh the benefits. 

Nguyen Minh Dong, another auto expert, shared the view, calling on consumers not to boycott Chinese-made vehicles.

The development of budget mini EVs is a positive trend but the vehicles and their batteries should be managed closely to protect the environment.

Many auto experts agreed that low-cost EVs may apply outdated technology. It is a must to prevent Vietnam from becoming a dumping site of EV batteries, not to mention risks to traffic safety.

Therefore, the import of equipment for EV manufacturing and assembly should be put under strict control, Dong noted.

Tran Nhu Phuong, deputy general director of Ford Suoi Tien in Ho Chi Minh City, said all cars are checked before being put into use.

However, criteria and standards for EVs, batteries, and charging stations need improving.

Chinese autos: easy to buy, hard to resell

Gasoline- and oil-powered cars made in China have been increasingly imported into Vietnam.

After using a Beijing X7 car for a year, Nguyen Trong, residing in Binh Thanh District, Ho Chi Minh City, said he is satisfied with the vehicle. 

Chinese autos are at an advantage in features and fittings compared with other autos in the same segments and with equivalent prices.

“Many people have asked me if the car is durable and if I feel secure when using it,” Trong added.

“Honestly, I have used it for over a year, so I do not dare to affirm its quality but its technology and design are good. It’s convenient to drive it in the inner city.’

At present, ‘made-in-China’ autos are sold in Vietnam at below VND800 million ($34,108) each. For example, Zotye T800, Dongfeng T5, and Beijing X7 cost VND728 million ($30,988), VND700 million ($29,796), and VND750 million ($31,925) apiece.

However, second-hand auto traders are hesitant about Chinese-origin cars.

Quoc Hung, the owner of an old auto showroom called Hung Auto in Thu Duc City, under Ho Chi Minh City, said second-hand autos with Japanese, South Korean, and German brands have higher costs than Chinese ones.

Hung earlier bought a Baic Q7 unit which had run over 20,000 kilometers at VND390 million ($16,600) but he could not find a buyer for the vehicle after three to four months.

As a result, he had to suffer a loss of some VND30 million ($1,278) to sell the car.

According to the General Department of Vietnam Customs, 17,340 Chinese autos worth more than $714 million were imported into Vietnam last year.

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

Source: https://tuoitrenews.vn/news/business/20230316/vietnam-to-see-wave-of-chinese-budget-ev-imports/72115.html

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Vietnamese carriers gear up to resume air service to China

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Aside from efforts to increase the flight frequency and prepare an adequate volume of aircraft, Vietnamese carriers have closely teamed up with travel firms and their partners to resume charter flights between Vietnam and China.

China’s move to add Vietnam to its list of countries which will play host to group tours from China starting March 15 has sent good vibes to not only the tourism sector but also the aviation sector in Vietnam, said a representative of Vietravel Airlines, a Vietnamese carrier.

With its competitive edge of being under Vietravel Holdings, whose chairman is Nguyen Quoc Ky, Vietravel Airlines stays ready to serve a large number of potential customers, especially during the peak travel season in summer, the carrier’s representative added.

Vietravel Airlines and local tour operator Vietravel, another subsidiary of Vietravel Holdings, recently clinched deals with their partners to operate charter flights to and from China in the upcoming period, the representative continued.

The carrier will focus on offering air services on some routes linking major Chinese cities with Nha Trang, a beach destination in Vietnam’s south-central province of Khanh Hoa, such as Hangzhou-Cam Ranh, Changzhou-Cam Ranh, Kunming-Cam Ranh.

As for Vietnam Airlines, Vietnam’s national flag carrier, it plans to raise the number of flights to and from China and to resume services on nine out of ten routes between Vietnam and China in April this year.

Low-cost carrier Vietjet will also increase the frequency of charter flights between China and Cam Ranh City of Khanh Hoa Province to 20 by the end of this month.

Though all basic preparations are underway to welcome group tours from China, more problems would arise, including possibly disrupted flight schedules, a local airline representative told Tuoi Tre (Youth) newspaper.

This representative explained that it was hard to ensure punctual landings and takeoffs at Chinese airports, affecting the departure and arrival of other flights like a domino effect.

Nguyen Quoc Phuong, deputy general director of Airports Corporation of Vietnam, or ACV, which operates 22 airports in Vietnam, said the number of passenger flights to and from China will be modest at the beginning.

The current frequency of flights to and from China at Tan Son Nhat International Airport in Ho Chi Minh City remains lower than that recorded at Cam Ranh International Airport in Khanh Hoa, he added.

Apart from Vietnamese airlines, some Chinese airlines such as China Southern and Sichuan Airlines have signed deals with aviation ground service providers to welcome Chinese visitors at the Tan Son Nhat and Cam Ranh airports.

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

Aside from efforts to increase the flight frequency and prepare an adequate volume of aircraft, Vietnamese carriers have closely teamed up with travel firms and their partners to resume charter flights between Vietnam and China.

China’s move to add Vietnam to its list of countries which will play host to group tours from China starting March 15 has sent good vibes to not only the tourism sector but also the aviation sector in Vietnam, said a representative of Vietravel Airlines, a Vietnamese carrier.

With its competitive edge of being under Vietravel Holdings, whose chairman is Nguyen Quoc Ky, Vietravel Airlines stays ready to serve a large number of potential customers, especially during the peak travel season in summer, the carrier’s representative added.

Vietravel Airlines and local tour operator Vietravel, another subsidiary of Vietravel Holdings, recently clinched deals with their partners to operate charter flights to and from China in the upcoming period, the representative continued.

The carrier will focus on offering air services on some routes linking major Chinese cities with Nha Trang, a beach destination in Vietnam’s south-central province of Khanh Hoa, such as Hangzhou-Cam Ranh, Changzhou-Cam Ranh, Kunming-Cam Ranh.

As for Vietnam Airlines, Vietnam’s national flag carrier, it plans to raise the number of flights to and from China and to resume services on nine out of ten routes between Vietnam and China in April this year.

Low-cost carrier Vietjet will also increase the frequency of charter flights between China and Cam Ranh City of Khanh Hoa Province to 20 by the end of this month.

Though all basic preparations are underway to welcome group tours from China, more problems would arise, including possibly disrupted flight schedules, a local airline representative told Tuoi Tre (Youth) newspaper.

This representative explained that it was hard to ensure punctual landings and takeoffs at Chinese airports, affecting the departure and arrival of other flights like a domino effect.

Nguyen Quoc Phuong, deputy general director of Airports Corporation of Vietnam, or ACV, which operates 22 airports in Vietnam, said the number of passenger flights to and from China will be modest at the beginning.

The current frequency of flights to and from China at Tan Son Nhat International Airport in Ho Chi Minh City remains lower than that recorded at Cam Ranh International Airport in Khanh Hoa, he added.

Apart from Vietnamese airlines, some Chinese airlines such as China Southern and Sichuan Airlines have signed deals with aviation ground service providers to welcome Chinese visitors at the Tan Son Nhat and Cam Ranh airports.

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

Source: https://tuoitrenews.vn/news/business/20230315/vietnamese-carriers-gear-up-to-resume-air-service-to-china/72107.html

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WB forecasts Vietnam’s 2023 growth at 6.3%

Vietnam’s economic growth is projected to ease to 6.3% in 2023 from a robust 8% last year, as services growth moderates and higher prices and interest rates weigh on households and investors.

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Vietnam’s economic growth is projected to ease to 6.3 percent in 2023 from a robust 8 percent last year, as services growth moderates and higher prices and interest rates weigh on households and investors, according to the World Bank’s report released on March 13.

In its Taking Stock report’s March 2023 edition entitled “Harnessing the potential of the services sector for future growth,” the WB provided recommendations for reforms to tap into the potential of the service sector.

It said the service sector will grow moderately, mostly driven by domestic demand which may be affected by higher estimated inflation of 4.5% this year. The economy is expected to benefit from part of the 2022-2023 economic support programme. A flexible monetary policy, in combination with fiscal policy objectives, should help keep domestic inflation in check.

WB Country Director in Vietnam Carolyn Turk said Vietnam has the fiscal space to implemet measures to boost growth, unlike many other countries. “Effective implementation of priority public investments is key to support growth, both in the short-term and in the longer-term. Also, fiscal and monetary policies must be synchronised to ensure that support to the economy and macroeconomic stability are achieved effectively,” she said.

Service has become the largest sector of Vietnam’s economy, increasing from 40.7% of GDP in 2010 to 44.6% in 2019. The employment share of the sector also rose from 29.6% in 2010 to 35.3% in 2019. As the largest source of employment, it has absorbed a significant portion of the workforce from the agriculture sector.

However, labour productivity and efficiency in Vietnam’s service sector remain low compared to other countries, reaching 5,000 USD per worker in 2019 in comparison to 20,900 USD in Malaysia, 9,300 USD in the Philippines and 7,300 USD in Indonesia.

According to WB senior economist Dorsati Madani, if utilised effectively, the service sector could play an important role in supporting Vietnam’s sustainable productivity growth and achieving the goal of becoming a high-income economy by 2045. Priority should be given to removing trade and foreign investment barriers in this sector and launching reforms to improve competition and access to finances for domestic firms. Services that can further drive growth in other industries, specifically in manufacturing and processing, should be heeded.

Source: Vietnamplus

Source: https://e.nhipcaudautu.vn/economy/wb-forecasts-vietnams-2023-growth-at-63-3351186/

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