Big investors pouring money into Vietnam's manufacturing industry

Instead of injecting money into the real estate or service sector which allows profit after a short time, Vietnam’s most powerful corporations are investing in the processing and manufacturing industry.

After opening an electrical equipment factory worth VND600 billion some months ago, Ho Quynh Hung, chair of Dien Quang Lamp JSC, said this was part of a plan to increase locally made content in products.

Big investors pouring money into Vietnam's manufacturing industry



The company is also installing a workshop that makes electronic circuit boards for lamps and other deviceswith eight production lines.

“All enterprises want to increase the localization ratios in their production activities. If we can do well and make products in large quantities, we will be able to cut production costs,” he said.

Dien Quang has a high demand for chips. In the immediate time, the company will
install one production line first. When it has eight production lines, the capacity will be high enough to provide chips to the company, but also to other domestic enterprises.

Established as a construction contractor, Amaccao recently made a big investment in industrial production, producing lighting equipment, copper valves and plastic pipes.

Instead of injecting money into the real estate or service sector which allows profit after a short time, Vietnam’s most powerful corporations are investing in the processing and manufacturing industry.

To Van Nhat, CEO of Amaccao, said seven years ago, he realized that many Vietnamese were willing to spend big money to buy expensive products from Europe. He decided to build a factory with modern equipment to make products in Vietnam.

 


“We want to have products with Vietnamese brands and international quality. Only high-quality products can persuade Vietnamese to change their view that European products are always better than Vietnamese,” he said.

A lot of Vietnamese names have appeared recently in the processing and manufacturing industry, such as Truong Hai, VinFast (automobile), BKAV (smartphones) and Hoa Phat (steel), creating a new face for the industry.

However, Vietnam’s industry is still small and weak, and the components needed to make automobiles and smartphones are still sourced from imports or foreign invested enterprises.

Many people think the role of the manufacturing and processing industry has become smaller, while the services industry will serve as the driving force for economic development thanks to new technologies in the 4.0 revolution.

Nguyen Thi Xuan Thuy from the Industry Development Support Center does not agree that the role of the manufacturing and processing industry will decrease in modern times.

“Eighty percent of the world’s trade is goods trade, while only 20 percent is services trade,” she said.

Mai Lan 

Fabric production an issue for Vietnam's textile industry

Fabric production an issue for Vietnam's textile industry

Fabric production is a challenge for Vietnam's textile and garment industry when it comes to free trade agreements (FTAs) requirements on product origin.  

Viettel, Vingroup to pioneer manufacture of 5G devices

Viettel, Vingroup to pioneer manufacture of 5G devices

Vietnam is not only a pioneer in experimenting with 5G, but also aims to be a manufacturer of 5G telecom devices that could be launched on the market as early as this year.

 
 

Other News

.
Vietnam factory activity dips in July as Covid-19 impacts grow
Vietnam factory activity dips in July as Covid-19 impacts grow
BUSINESSicon  03/08/2020 

Despite a drop in output in July, firms remained confident in the 12-month outlook for production.

Vietnamese startups bag millions of US dollars despite COVID-19 pandemic
Vietnamese startups bag millions of US dollars despite COVID-19 pandemic
BUSINESSicon  03/08/2020 

A slew of Vietnamese startups managed to secure millions of US dollars even in the midst of the rapidly escalating COVID-19 pandemic.

Sky-high livestock prices may breach competition law
Sky-high livestock prices may breach competition law
BUSINESSicon  03/08/2020 

Although many livestock companies could face an inspection to ensure they follow through on commitments to cut their prices, the market outlook still looks dreary in spite of the government’s call to stabilise the selling cost of live pigs.

Aligning with trade remedy principles
Aligning with trade remedy principles
BUSINESSicon  03/08/2020 

The EU-Vietnam Free Agreement (EVFTA) is a giant leap for Vietnam in international integration.

Electricity of Vietnam suggests not to extend deadline for wind farm FiT
Electricity of Vietnam suggests not to extend deadline for wind farm FiT
BUSINESSicon  03/08/2020 

In order to ensure transparency and stability in the selling price of wind power, EVN opposes the Ministry of Industry and Trade's proposal to extend the deadline on the current feed-in tariff (FiT) scheme for wind power projects

Ministry seeks to further open petroleum retail market
Ministry seeks to further open petroleum retail market
BUSINESSicon  03/08/2020 

The Ministry of Industry and Trade has called for allowing all foreign investors to further participate in the petroleum retail market.

Shares to correct on worries of virus surge
Shares to correct on worries of virus surge
BUSINESSicon  03/08/2020 

 Vietnamese shares may continue to fall this week as a spike in fresh coronavirus cases fuelled concerns that the path to economic recovery could be hindered.

Vietnam fulfills international commitments as EVFTA takes effect
Vietnam fulfills international commitments as EVFTA takes effect
BUSINESSicon  03/08/2020 

Vietnam will continue to fulfill its international commitments so that it can take full advantage of the EU-Vietnam Free Trade Agreement (EVFTA) and recover its economy amid a resurgence of COVID-19 pandemic.

Vietjet reports loss of over VND2.1 trillion for H1
Vietjet reports loss of over VND2.1 trillion for H1
BUSINESSicon  03/08/2020 

Vietjet Aviation Joint Stock Company has reported a loss of over VND2.11 trillion (approx. US$90.5 million) in air transportation business in the first half of this year.

F&B firms prepare for possible second round of social distancing
F&B firms prepare for possible second round of social distancing
BUSINESSicon  03/08/2020 

Though local F&B businesses don't want social distancing to return in August, the experiences they had in April are helping them prepare.

Vietnam Airlines, ACV suffer heavy losses due to COVID-19
Vietnam Airlines, ACV suffer heavy losses due to COVID-19
BUSINESSicon  03/08/2020 

The COVID-19 pandemic has severely dragged down revenues of the Vietnam Airlines Corporation (Vietnam Airlines) and the Airports Corporation of Vietnam (ACV) in the second quarter of this year.

Economic growth projected to reach about 7 percent in 2021
Economic growth projected to reach about 7 percent in 2021
BUSINESSicon  03/08/2020 

Prime Minister Nguyen Xuan Phuc has issued a directive on the building of plans for socio-economic development and State budget estimate for 2021, with a target of about 7 percent of economic growth for the year.

Enterprises in industrial parks urged to use hi-tech equipment
Enterprises in industrial parks urged to use hi-tech equipment
BUSINESSicon  03/08/2020 

 Enterprises in export processing zones (EPZs) and industrial parks (IPs) should use high technologies to better manage manufacturing processes and improve product quality.

Vietnam emerges as popular industrial property destination: CBRE
Vietnam emerges as popular industrial property destination: CBRE
BUSINESSicon  03/08/2020 

Vietnam has emerged as a popular destination for industrial property projects as increased labour costs, trade disputes and COVID-19 prompt global manufacturers to vary their supply chains throughout Asia, according to CBRE.

Condotel market faces gloomy prospects
Condotel market faces gloomy prospects
BUSINESSicon  02/08/2020 

 The condotel market has faced a gloomy period due to low absorption rate while inventory has been on the rise, experts said.

Ministry of Construction eyes building low-cost housing
Ministry of Construction eyes building low-cost housing
BUSINESSicon  03/08/2020 

 The Ministry of Construction (MoC) is completing a draft resolution to encourage the development of low-cost commercial apartments to submit to the Government in the third quarter of this year.

Businesses in Hanoi’s Old Quarter shutdown amid COVID-19 fears
Businesses in Hanoi’s Old Quarter shutdown amid COVID-19 fears
BUSINESSicon  02/08/2020 

The Hanoi People's Committee has moved to require all shops throughout Hanoi’s Old Quarter to close as of midnight on August 1 due to fears regarding recent developments relating to COVID-19 epidemic.

Reality and vision for industrial zones
Reality and vision for industrial zones
BUSINESSicon  02/08/2020 

The media have recently featured industrial properties, especially industrial land, as a potential area to attract investment.

Vietnam to develop night-time economy
Vietnam to develop night-time economy
BUSINESSicon  02/08/2020 

Prime Minister Nguyen Xuan Phuc has approved a project to develop the night-time economy in Viet Nam to allow some activities to run overnight until 6am of the next day in some major tourism cities and zones.

Transport service operators begin installing yellow number plates from today
Transport service operators begin installing yellow number plates from today
BUSINESSicon  02/08/2020 

Vehicles that have registered for transport services have started installing yellow number plates with black letters and numbers from today, August 1, instead of the current white plates.

 
 
 
Leave your comment on an article

OR QUICK LOGIN