Vietnam Vietnam Economy Thread

[Jagdflieger]

Before Covid, there are 5,839 homeless people there, thats why the city had to set up shelters for them during Covid

How many of them have a Wuhan Hukou? likely NONE - there are however workers/traders that do not want to pay rent or due to their "missing securities" no Wuhan landlord is willing to rent out a room, and therefore they sleep illegally in whatever corners - before the police picks them up - since "tramps" etc. are not permitted in China.
Some of these "tramps" are quite famous in certain cities - one of them usually used to roam and beg around in Tonglen road (nightlife road in Shanghai) plus two women with "borrowed poor looking/dressed kids" begging for money.
Since 2010 these 2 women - plus hundreds of other's in Shanghai have all been arrested incl. their "Bosses" - and the famous tramp was found to have owned several apartments. All countries have these kind of people - including Germany and Vietnam.

 

[Viva_vietnamm]

How many of them have a Wuhan Hukou? likely NONE - there are however workers/traders that do not want to pay rent or due to their "missing securities" no Wuhan landlord is willing to rent out a room, and therefore they sleep illegally in whatever corners - before the police picks them up - since "tramps" etc. are not permitted in China.
Some of these "tramps" are quite famous in certain cities - one of them usually used to roam and beg around in Tonglen road (nightlife road in Shanghai) plus two women with "borrowed poor looking/dressed kids" begging for money.
Since 2010 these 2 women - plus hundreds of other's in Shanghai have all been arrested incl. their "Bosses" - and the famous tramp was found to have owned several apartments. All countries have these kind of people - including Germany and Vietnam.

Many people among 5,839 homeless men in Wuhan earn less than 140 usd per month as Premier Li admit.

 

[Jagdflieger]

Many people among 5,839 homeless men in Wuhan earn less than 140 usd per month as Premier Li admit.

Actually Premier Li never talked about or mentioned these people - since he wouldn't know as to what their actual earning status is. Unless he would have it investigated.

 

[Viva_vietnamm]

Apple to produce iPad in Vietnam for the first time​

By Dat Nguyen June 2, 2022 | 01:16 pm GMT+7

Attendees try out the iPad Pro during an Apple launch event in the Brooklyn borough of New York, U.S., October 30, 2018. Photo by Reuters/Shannon Stapleton

Apple will make its iPads for the first time in Vietnam as part of efforts to diversify its supply chain and reduce dependence on China, its main manufacturer.
The company is moving some iPad production out of China and to Vietnam after strict Covid-19 lockdowns in and around Shanghai led to months of supply chain disruptions, Nikkei Asia reported.
China's BYD, one of the leading iPad assemblers, has helped Apple build production lines in Vietnam and could soon start to produce a small number of the iconic tablets there, it added.
The iPad will become the second major line of Apple products made in Vietnam after the AirPods earbud series.
"The move highlights not only Apple's continuous efforts to diversify its supply chain but also the growing importance of Vietnam to the company," the report said.

Last year Apple shipped 58 million iPads globally, the majority of them made in China.
There were reports last month about the possibility of Apple producing its wireless earbud AirPods Pro 2 in Vietnam starting from the second half of this year.
"The shift in AirPods Pro 2 production can be attributed to the relatively uncomplicated supply chain and Vietnam’s better production environment (such as infrastructure and workforce) vs. most countries outside China," supply chain analyst Ming-Chi Kuo said.

Apple to produce iPad in Vietnam for the first time - VnExpress International

Apple will make its iPads for the first time in Vietnam as part of efforts to diversify its supply chain and reduce dependence on China, its main manufacturer.

e.vnexpress.net

 

[Viva_vietnamm]

Manufacturers in the auto industry, electronic industry, and even the robotic industry itself have been implementing fully automated factories, so the factories for Ipad-Iphone-Samsung phones , EV etc can be placed anywhere as long as the investors can get the maximum benefit and VN is the best place for automated factories now when trade war between CN-US is getting worse

 

[Jagdflieger]

Let's see if this trade war will really get worse. IMO no.
So far the USA only shot it's own foot - since the location of manufacturing outside the USA (doesn't matter where) has no positive impact onto their economy anyway. China is a consistent main investor in this country since 2016 (despite Dumb Trump) with an annual average of US$35 billion, and these investments are needed by the US economy, plus the additional taxing of their own consumer oriented population with 25% is just making their own economic outlook worse.

In 2021, the value of foreign direct investment (FDI) inflows to China reached approximately 181 billion U.S. dollars. This was an increase of around 21 percent compared to the previous year.
The US investment in China since 2016 was annually at average only US$2,4 billion - As such China obviously does not depend on US investment at all.

 

[xizhimen]

Manufacturers in the auto industry, electronic industry, and even the robotic industry itself have been implementing fully automated factories, so the factories for Ipad-Iphone-Samsung phones , EV etc can be placed anywhere as long as the investors can get the maximum benefit and VN is the best place for automated factories now when trade war between CN-US is getting worse

But Why German plants keep pouring in billions of dollars in China today?

Germany's Merck to open semiconductor base in China

German supplier of chemicals and materials used in making semiconductors, Merck KGaA , said on Tuesday it had signed a contract to open a semiconductor base in the Chinese city of Zhangjiagang, describing it as its largest single electronics business investment in the country.

www.reuters.com

BMW opens $2.2 billion EV plant in China as it ramps up challenge to Tesla, domestic players

BMW has officially opened its new 15 billion yuan ($2.2 billion) factory in Shenyang, China with a strong focus on electric vehicles.

www.cnbc.com

 

[Viva_vietnamm]

But Why German plants keep pouring in billions of dollars in China today?

Germany's Merck to open semiconductor base in China

German supplier of chemicals and materials used in making semiconductors, Merck KGaA , said on Tuesday it had signed a contract to open a semiconductor base in the Chinese city of Zhangjiagang, describing it as its largest single electronics business investment in the country.

www.reuters.com

BMW opens $2.2 billion EV plant in China as it ramps up challenge to Tesla, domestic players

BMW has officially opened its new 15 billion yuan ($2.2 billion) factory in Shenyang, China with a strong focus on electric vehicles.

www.cnbc.com

Cos CN is one of the biggest market for German cars. If CN stop buying German car's, then those factories will quit CN and move to VN like Samsung phones did.

 

[Viva_vietnamm]

In 2021, the value of foreign direct investment (FDI) inflows to China reached approximately 181 billion U.S. dollars. This was an increase of around 21 percent compared to the previous year.
The US investment in China since 2016 was annually at average only US$2,4 billion - As such China obviously does not depend on US investment at all.

(FDI) inflows to China reached approximately 181 billion U.S. dollars cos China has removed a 20-year restriction allowing foreign companies to gain a greater share of its market.

Actually its the bad news for CN in long term, CN is losing her economy to foreign companies bcs CN badly need money during trade war.

-----------------------------
China will let foreign automakers from Volkswagen AG to Ford Motor Co. own more than 50% of local ventures, removing a two-decade restriction and giving a boost to global companies seeking to capture a greater share of the world’s largest car market.

The move may help diffuse tensions between China and the U.S. after President Donald Trump’s intensified rhetoric risked an all-out trade war. Companies from Daimler AG and BMW AG to General Motors Co. and Toyota Motor Corp. are set to find it easier to manufacture and do business in China, while local makers will be under increased pressure to speed up the building of their own brands.

“In a decade, foreign carmakers will gradually become all independent and Chinese companies will lose the cash flows from the joint ventures,” said Yale Zhang, an analyst with Automotive Foresight Co. in Shanghai. “Foreign carmakers will be happy as they won’t have to share 50% of the profits with their Chinese partners.”

Huge Break for Auto Companies as China Removes Ownership Caps

China has removed a 20-year restriction allowing foreign companies to gain a greater share of its market.

www.industryweek.com

 

[xizhimen]

(FDI) inflows to China reached approximately 181 billion U.S. dollars cos China has removed a 20-year restriction allowing foreign companies to gain a greater share of its market.

Actually its the bad news for CN in long term, CN is losing her economy to foreign companies bcs CN badly need money during trade war.

But you said foreign companies were leaving China...why do you always try to contradict yourself?

 

[Viva_vietnamm]

But you said foreign companies were leaving China...why do you always try to contradict yourself?

foreign companies will leave China if u don't buy their products. Why should they move when CN still pay lots of money to buy all of their expensive cars ??

I only prove that everyone can replace CN in manufacturing.

 

[xizhimen]

foreign companies will leave China if u don't buy their products. Why should they move when CN still pay lots of money to buy all of their expensive cars ??

I only prove that everyone can replace CN in manufacturing.

But they said they were leaving, didn't you? why you changed your tone again?

 

[Viva_vietnamm]

But they said they were leaving, didn't you? why you changed your tone again?

Change ?? thats my reply to ur post in 2020 in PDF, dude . Nothign change when u guys just keep repeating like parrots

 

[xizhimen]

Change ?? thats my reply to ur post in 2020 in PDF, dude . Nothign change when u guys just keep repeating like parrots

View attachment 45561

View attachment 45562

So are you denying saying foreign companies are leaving China?

 

[Viva_vietnamm]

So are you denying saying foreign companies are leaving China?

U just say it again and again like parrot even when we already discussed it in 2020.

OK, I will post again: "foreign companies will leave China if u don't buy their products. Why should they move when CN still pay lots of money to buy all of their expensive German cars and let them to control CN's market ??"

 

[Jagdflieger]

Cos CN is one of the biggest market for German cars. If CN stop buying German car's, then those factories will quit CN and move to VN like Samsung phones did.

Samsung closed their own factories because they can't defend their market-share in China and are outsourcing the work to a Chinese original design manufacturer (ODM).
There isn't (aside from Porsche) a single German OEM without a JV in China. Since 2015 any JV vehicle in China is designed and produced according to Chinese consumer demands. They actually vary substantially form German car's produced in Germany or e.g. the USA. And they are all based on so called global platforms making such processes very easy and efficient. Even the market share in China in regards to USA and Germany manufactured vehicles by German OEM's (imported models) is off vital interest/concern for the German OEM's.

So as a matter of fact the Chinese are buying vehicles made in China - with brand-names held by their German partners. Just as the Chinese partners are benefiting from the German technical input - so are the Germans profitting from the Chinese input - significantly in regards to EV's and China's huge market. Maybe you should check a statistic about how many EV's German/Chinese JV's are selling in China compared to wholly owned German OEM's in e.g. Europe or the USA.

Mercedes USA: 316,094 vehicles were sold
Mercedes China: A total of 774,382 cars were handed over to customers in China
Mercedes Vietnam: 42000 cars in the past 25 years
Vietnam total car market in 2020: 240,000 vehicles. Estimated total market by 2025 500,000 cars.

No matter how much Vietnam will keep developing (and it will) - it's GDP will never be anywhere near that of China - simply due to it's population and own market size and being in immediate parallel competition in S.E.A by Thailand, Malaysia, Philippines and Indonesia - with even cheaper labor costs.

As for foreign companies leaving China - yes some are but it is insignificant (or would you have substantiated information correcting that)? What has changed is the replacement of foreign managment staff with locals and that investments are now coming from the own European China enterprises and no more from e.g. European HQ. Unless a global market industry is in view - e.g. Battery factory to supplement world demands of the respective foreign OEM.

 

[Viva_vietnamm]

Samsung closed their own factories because they can't defend their market-share in China and are outsourcing the work to a Chinese original design manufacturer (ODM).
There isn't (aside from Porsche) a single German OEM without a JV in China. Since 2015 any JV vehicle in China is designed and produced according to Chinese consumer demands. They actually vary substantially form German car's produced in Germany or e.g. the USA. And they are all based on so called global platforms making such processes very easy and efficient. Even the market share in China in regards to USA and Germany manufactured vehicles by German OEM's (imported models) is off vital interest/concern for the German OEM's.

So as a matter of fact the Chinese are buying vehicles made in China - with brand-names held by their German partners. Just as the Chinese partners are benefiting from the German technical input - so are the Germans profitting from the Chinese input - significantly in regards to EV's and China's huge market. Maybe you should check a statistic about how many EV's German/Chinese JV's are selling in China compared to wholly owned German OEM's in e.g. Europe or the USA.

Mercedes USA: 316,094 vehicles were sold
Mercedes China: A total of 774,382 cars were handed over to customers in China
Mercedes Vietnam: 42000 cars in the past 25 years
Vietnam total car market in 2020: 240,000 vehicles. Estimated total market by 2025 500,000 cars.

No matter how much Vietnam will keep developing (and it will) - it's GDP will never be anywhere near that of China - simply due to it's population and own market size and being in immediate parallel competition in S.E.A by Thailand, Malaysia, Philippines and Indonesia - with even cheaper labor costs.

As for foreign companies leaving China - yes some are but it is insignificant (or would you have substantiated information correcting that)? What has changed is the replacement of foreign managment staff with locals and that investments are now coming from the own European China enterprises and no more from e.g. European HQ. Unless a global market industry is in view - e.g. Battery factory to supplement world demands of the respective foreign OEM.

Okay, then what happen to Mercedes if she also can't defend their market-share in China like Samsung ?? will she continue to manufacture cars in CN or just simply quit like Samsung cos salary for workers in VN is much lower while VN still can make the same cars for Mercedes ??

 

[Jagdflieger]

Okay, then what happen to Mercedes if she also can't defend their market-share in China like Samsung ?? will she continue to manufacture cars in CN or just simply quit like Samsung cos salary for workers in VN is much lower while VN still can make the same cars for Mercedes ??

I couldn't tell you, since I see no viable present or future circumstance that would indicate Mercedes loosing it's market position, other then maybe to BMW or VW-Audi group. I wouldn't even be surprised if in 10 years or more Mercedes is owned by some Chinese company or consortium. The greed or self-interest of Western CEO's has no limits.

And if Mercedes or other German OEM's, would loose out to Chinese competition due to them offering the better deal - then even relocating to Vietnam wouldn't help to correct that issue.
Opel the German GM daughter couldn't match their European and Asian competitors, so GM closed the doors - in China the local partner took over the majority of GM China - since then it is a Chinese company. Allocation of investments by GM USA towards e.g. Thailand and Vietnam can't return the sales they lost in any way. But that is how economy works.

 

[Viva_vietnamm]

I couldn't tell you, since I see no viable present or future circumstance that would indicate Mercedes loosing it's market position, other then maybe to BMW or VW-Audi group. I wouldn't even be surprised if in 10 years or more Mercedes is owned by some Chinese company or consortium. The greed or self-interest of Western CEO's has no limits.

And if Mercedes or other German OEM's, would loose out to Chinese competition due to them offering the better deal - then even relocating to Vietnam wouldn't help to correct that issue.
Opel the German GM daughter couldn't match their European and Asian competitors, so GM closed the doors - in China the local partner took over the majority of GM China - since then it is a Chinese company. Allocation of investments by GM USA towards e.g. Thailand and Vietnam can't return the sales they lost in any way. But that is how economy works.

Yeah, could be. But what I wanna say is that its not hard to manufacture Mercedes cars, even VN- Thailand-Indonesia can do it.

German automakers invest more money in CN mainly bcs CN just let foreign automakers own more than 50% of local ventures, so they can earn more money from CN.

 

[Viva_vietnamm]

11 factories in Apple's supply chain have moved to Vietnam

09:41 - Jun 29, 2022 1 ONLINE YOUNG
The above information was revealed by the representative of the Vietnam Association of Supporting Technologies (VASI) at the Conference on the production situation and proposed tasks and solutions to remove difficulties and support production and business in the last 6 months of the year. .
According to VASI, despite facing many difficulties due to skyrocketing fuel prices, great influence from the Russia-Ukraine conflict, the Covid-19 epidemic, China's Zero-Covid policy disrupted the supply chain... but Vietnam's electronic component manufacturing industry still has certain advantages, benefiting from the trend of shifting supply chains. In particular, the world's major firms have been moving factories and production chains from China to surrounding countries.

Specifically, so far, Apple has moved 11 factories of Taiwanese enterprises in its supply chain to Vietnam; Many other firms such as Foxconn, Luxshare, Pegatron, Wistron also expand their existing production facilities in Vietnam...

Samsung built the group's largest research and development center in Southeast Asia worth 220 million USD in Hanoi, and is also planning to continue to expand factories in Bac Ninh and Thai Nguyen. Earlier this year, Dong Nai granted investment licenses for two 100 million USD projects of component supplier for Samsung, Hansol Electronics Vietnam (Korea).

11 nhà máy trong chuỗi cung ứng Apple đã chuyển sang Việt Nam

Thông tin trên được đại diện Hiệp hội Công nghệ hỗ trợ Việt Nam (VASI) tiết lộ tại Hội nghị về tình hình sản xuất và đề xuất nhiệm vụ, giải pháp tháo gỡ khó khăn, hỗ trợ sản xuất kinh doanh 6 tháng cuối năm.

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