Vietnam Economic News: 13.7 - 20.7.2024
Summary of Vietnam Economic News: 13.7 - 20.7.2024
---
Summary of Vietnam Economic News: 13.7 - 20.7.2024 ---
VIETNAM TO HOLD STATE FUNERAL FOR LATE COMMUNIST PARTY LEADER TRONG NEXT WEEK
Reuters News – 20 July 2024
Vietnam will hold a state funeral next week for Nguyen Phu Trong, the leader of its ruling Communist Party who died on Friday, the government said on Saturday. There will be two days of national mourning on July 25-26, a government statement said, with the state funeral on the second day. During the mourning period there will be no public entertainment, and flags at offices and other public places will fly at half-mast, it said. Trong died at the age of 80 after holding Vietnam's most powerful position for 13 years, overseeing fast economic growth, years-long anti-graft crackdown and a pragmatic foreign policy. His duties have been temporarily assigned to President To Lam, a rising star within the party who could further consolidate his powers if he is allowed to keep the two roles. The government statement called Trong's death a huge loss to the party, the state, the Vietnamese people and his family. "After nearly 60 years of work, Trong has made many great and especially outstanding contributions to the glorious revolutionary cause of the Party and the nation," it added. During his time as party head Trong had pursued a pragmatic foreign policy, including nurturing ties with the United States. Foreign leaders, including U.S. President Joe Biden, Chinese President Xi Jinping and Russian President Vladimir Putin, have sent condolences to the people of Vietnam and his family, according to a statement from the Communist Party of Vietnam.
FOXCONN GETS LICENCE TO INVEST $551 MILLION MORE IN VIETNAM
Reuters News – 19 July 2024
Foxconn Singapore has been awarded a licence to invest $551 million in two projects to produce smart entertainment products and smart-system equipment in Vietnam's northern province of Quang Ninh, state media reported. Foxconn, the world's largest contract electronics maker and assembler, did not immediately respond to a request for comment. The company already has major operations in Vietnam. Through its unit Foxconn Singapore, the Taiwanese giant has been awarded a licence for a $263.7 million project to produce smart entertainment products with an annual capacity of 4.18 million units per year, the Quang Ninh newspaper reported. The second project with an investment of $287.2 million and on an area of 12.4 hectares (30.64 acre), will make smart-system equipment, the paper said. According to the investment certificate, the two projects will complete construction in July, 2026. After a period of machinery installation and trial operation, they were due to launch official production in May, 2027. Last year, Foxconn said it would invest about $250 million in two new projects in Quang Ninh to make electric vehicle and telecom parts. Foxconn has invested more than $3.2 billion in Vietnam since first entering the country in the 2000s. Most of its manufacturing plants are located in the northern provinces of Bac Ninh and Bac Giang. Last month, Vietnamese state media said Foxconn has also been awarded a licence to invest $383 million in a factory to produce printed circuit boards.
BYD SETS SIGHTS ON AGGRESSIVE EXPANSION IN VIETNAM
Vietnam News – 18 July 2024
Chinese electric vehicle giant BYD on Thursday outlined plans to aggressively expand its dealership network in Vietnam as it opens its first stores in the country this week, posing a formidable challenge to local rival VinFast. Thirteen BYD dealerships will open their doors to the Vietnamese public on Saturday and the automaker hopes to boost that number to about 100 by 2026. An initial three model product line-up that includes the compact crossover Atto 3 will increase to six from October, according to Vo Minh Luc, chief operations officer for BYD Vietnam. All BYD models for Vietnam will be imported for the time being. Vietnam's government said last year BYD had decided to build a factory to manufacture electric cars in the north of the country, but those plans have slowed, the company that operates the industrial park in the area said in March. "BYD is in talks with a number of localities in Vietnam to optimize the plant plan," Luc said. The Atto 3 will be priced from 766 million dong ($30,300), somewhat higher than the 675 million dong starting price for VinFast's VF 6. Like BYD, VinFast no longer makes gasoline-engine vehicles. But it has had far less business success than its Chinese rival which has become the world's biggest manufacturer of electric cars. VinFast sold 32,000 EVs in Vietnam last year but most of the vehicles were sold to an affiliate. HSBC estimated in May report that Vietnam's annual sales of electric two-wheelers and electric car sales could rise from less than one million in 2024 to more than 2.5 million by 2036.
REMITTANCES TO VIETNAM'S HO CHI MINH CITY IN H1 AT AROUND $5.2 BLN
Reuters News – 18 July 2024
Vietnam's main business hub, Ho Chi Minh City, received remittances worth around $5.2 billion in the first half of this year, up 19.5% from the previous year, state media reported on Thursday, citing an official from the State Bank of Vietnam. Remittances are a key source of U.S. dollars for Vietnam, along with exports and foreign investment. The remittances to Ho Chi Minh City are indicative of Vietnam's total inflows and can often amount to as much as 40% to 45% of all remittances to the country.