return icon

Supporting industries at a crossroads

The foreign capital inflow into Vietnam will help local enterprises expand their production, but the opportunity can only be grabbed by capable enterprises.

Nguyen Van Hung, CEO of CNC Tech, in recent days received emails and phone calls from Japanese companies that want to place orders or cooperate with CNC Tech.





“It previously took six months or one year to reach a cooperation agreement with foreign partners. It now takes one or two months only,” Hung said.

The Japanese government has announced it would use $2.2 billion of the record high economic relief package to help Japanese manufacturers relocate their production out of China.

A survey by Tokyo Shoko Institute showed that 37 percent of 2,600 polled enterprises want to relocate their factories out of China.

Hung of CNC Tech feels that the process of relocating production bases out of China has become clearer than ever since the Japanese government made the announcement.

A survey by Deep Knowledge Ventures, a Hong Kong-based investment fund, last April showed that Vietnam is second just to Singapore in Southeast Asia in the list of safe destinations.

Not only Japanese but European enterprises are also considering leaving China. South China Morning Post cited a survey by the association of European and German enterprises in China as showing the discouraging business results of the enterprises. Half of them said their profit margin may decrease by 20 percent.

A survey by Deep Knowledge Ventures, a Hong Kong-based investment fund, last April showed that Vietnam is second just to Singapore in Southeast Asia in the list of safe destinations.

According to Deep Knowledge Ventures, investors will feel more secure when pouring capital into safe countries.

“We are continuing to make investment in anticipation of the production relocation movement, though the company is facing difficulties because of Covid-19,” Hung said.

Meanwhile, other enterprises, though seeing great opportunities from the production relocation movement, still dare not make big investment in the context of demand decreases and signs of global recession.

Dang Quang Khoi, CEO of An Lap Plastics, which is the partner of some foreign electronics companies, said he knows the movement, but doesn’t have resources and dare not take risks to expand production in the current conditions.

During the social distancing days, like many other companies, An Lap had to cut 60 percent of production capacity because Samsung and Honda, the largest partners, cut orders. To date, 80 percent of production capacity has been restored, but Khoi still feels worried about the risks which may come in the future.

In 2019, when realizing the capital inflow to Vietnam because of the US-China trade war, Khoi made big investment to increase productivity and improve quality with hope that the revenue would increase by 20 percent in 2020.

However, because of Covid-19, he dreams of obtaining revenue equal to 2019. 

Mai Lan


Enterprises in supporting industries busy with orders during COVID-19

Enterprises in supporting industries busy with orders during COVID-19

While other industries complain about the lack of jobs, enterprises in supporting industries have been operating at full capacity to satisfy a high number of orders.

Supporting industries leading automakers towards success

Supporting industries leading automakers towards success

Vietnam is striving to successfully build up its automobile industry. 


Corporate bond market struggling with challenges

The size of the corporate bond market is estimated at some VND1,374 trillion, equivalent to 15% of GDP. The Government aims to raise this figure to 20% by 2025.

President requires greater efforts to promote value of Ngoc Linh ginseng

Ngoc Linh ginseng deserves the "National treasure" title, and it is necessary to strongly promote the role of this treasure in improving people's livelihoods, President Nguyen Xuan Phuc said .

EVFTA outpaces CPTPP in preference utilisation rate

The utilisation rate of tax incentives set out in the EU-Vietnam Free Trade Agreement (EVFTA) during Q1 soared by over 32%, representing a four-fold rise compared to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Refusal to issue visas to new VN passport causes problems for travel firms

The rejection of Vietnam’s new passport by some EU member countries is affecting HCM City tourism companies since their customers are unable to travel to those countries.

Vietnam set to scrap COVID quarantine for imported processed seafood

The Ministry of Agriculture and Rural Development has removed COVID-related quarantine requirements for frozen processed seafood products imported for the purpose of reprocessing for export.

HCM City seeks to boost technology transfer from universities

Huynh Kim Tuoc, managing director of Sai Gon Innovation Hub's (SiHub) Start-up Support Centre under the HCM City Department of Science and Technology, affirmed Vietnam holds tremendous potential for technology development

Vigilance urged against COVID-19 amid emergence of new epidemics

Prime Minister Pham Minh Chinh asked ministries, agencies and localities to maintain vigilance against COVID-19 while addressing a meeting in Hanoi on Saturday.

Vietnamese, British agencies coordinate in identifying fire victims

The Consular Department under the Ministry of Foreign Affairs and the Vietnamese Embassy in the UK will continue to coordinate with Vietnamese and British agencies to identify victims in a blaze in Greater Manchester on May 7.

Photo contest highlighting beauty of Vietnamese islands kicks off

Professional and amateur photographers across Vietnam are encouraged to compete in a photo contest highlighting the beauty of Vietnamese Hoang Sa and Truong Sa islands.

Enjoying Quang-style noodle soup in the place where it was born

Phu Chiem Village in Dien Phuong Commune, Dien Ban District, Quang Nam Province, is where the popular Quang-style noodle soup was first created. And where better to taste this specialty than the place where it was born.

Exploring hidden spots on Co To Island

Aside from white sand, the blue sea and fresh air, Co To Island in Quang Ninh Province has several other beautiful spots that are worth a visit.

Vietnamese leaders extend sympathy to Cuba over oil tank explosion

Top Vietnamese leaders have sent messages of sympathy to their Cuban counterparts over severe losses caused by a massive blaze in an oil storage facility in Cuba’s province of Matanzas on August 5.

CNN reporter loves Vietnamese fish sauce

Chris Dwyer, a reporter for CNN, says he has loved Vietnamese fish sauce made in Phu Quoc (South Vietnam), though it was not easy to taste at the beginning.

Apple CEO Tim Cook appreciates Vietnam market potential

Vietnam, together with Brazil, Indonesia and India that are emerging markets, have made practical contributions to Apple’s group’s outstanding performance in the second quarter of this year, said CEO Tim Cook.

Electronics manufacturers ‘forget’ to recall or recycle used products

Large electronics manufacturers are still not willing to participate in the collecting and recycling of electronic waste to ensure a good living environment for people.