Vietnam Vietnam Economy Thread

[Jagdflieger]

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

No - they can't. Manufacturing and Assembly are two very different things. Let me give you two examples:
Engine - there is no way that an OEM will set up an engine plant in a market that offers less the 500,000 units for the respective OEM
Engine Chain - a very simple looking product actually, but extremely difficult to produce within given tolerances and OEM quality demands
The average engine chain is about 60-80cm in length - and no OEM will set up a manufacturing plant for this product if the market doesn't allow for a minimum of 1,5 million meters. There are only three manufacturers worldwide - meaning that for any of those to invest into a manufacturing plant, the market must be more then 15 million passenger vehicles. since about 60-70% are rubber belt driven.
And this list goes on and on.

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.

None of the German OEM's that I know took advantage of being able to invest more then 50% - simply due to that factor that this is not changing the overall market situation - which is decided by the quality and technical enhancement of the product and the customer demands/expectations.
They invest money, JV-together - simply due to the positive market outlook of China and it's growing GDP - China is already the world largest car manufacturer and according to market survey's is projected to grow another 200% in the next 25 years.

So taking such projections into account it is feasible for a German OEM to open e.g. an engine plant in Vietnam at around 2035-40 when Vietnam's car market is projected to hit 2-2,5 million vehicles. During the same time new engine plants or extended ones will be set up in China and most likely also in India.

 

[Viva_vietnamm]

No - they can't. Manufacturing and Assembly are two very different things. Let me give you two examples:
Engine - there is no way that an OEM will set up an engine plant in a market that offers less the 500,000 units for the respective OEM
Engine Chain - a very simple looking product actually, but extremely difficult to produce within given tolerances and OEM quality demands
The average engine chain is about 60-80cm in length - and no OEM will set up a manufacturing plant for this product if the market doesn't allow for a minimum of 1,5 million meters. There are only three manufacturers worldwide - meaning that for any of those to invest into a manufacturing plant, the market must be more then 15 million passenger vehicles. since about 60-70% are rubber belt driven.
And this list goes on and on.

our car/ev conpany Vinfast purchased intellectual property rights from BMW to manufacture VInfast cars and many VNese buy those cars...but Vinfast just decided to stop manufacturing those petrol cars and changed to EV.

So, at least VN is capable to manufacture German cars. The only problem is that we won't buy 500,000 units per year.



-----------------------
VinFast bought licences for production and installation of BMW's famed 2.0-liter, N20 engine.

Yet, BMW did not sell VinFast its Valvetronic head license. Engines in VinFast cars won’t have Valvetronic tech at all. VinFast probably developed its own solution and saved a bit of cash.


Nevertheless, the engines for VinFast’s cars will come in two states of tune. One will deliver 175 horsepower and the other 227 horsepower. This isn’t what you’d call enormous power output, but no one could have actually expected a 3.0-liter, TwinPower, Turbo inside. Maybe sometime in the future. The engine is linked with an eight-speed ZF automatic transmission. Both cars, the Sedan and the SUV, will be available as RWD or AWD.

VinFast officials reported:

"VinFast products will share a number of characteristics and values: Vietnam, Style, Safety, Innovation, and Pioneering. Its cars will meet international standards and customer expectations in terms of premium design, quality, dynamics, in-car features, and ownership experience

VinFast - Follow The Birth Of A Car Company Using BMW Tech And Italian Design From Pininfarina

I am thinking of using the word "disruptive" for VinFast's bold plan, but I'm not quite sure yet...

www.topspeed.com

None of the German OEM's that I know took advantage of being able to invest more then 50% - simply due to that factor that this is not changing the overall market situation - which is decided by the quality and technical enhancement of the product and the customer demands/expectations.
They invest money, JV-together - simply due to the positive market outlook of China and it's growing GDP - China is already the world largest car manufacturer and according to market survey's is projected to grow another 200% in the next 25 years.

So taking such projections into account it is feasible for a German OEM to open e.g. an engine plant in Vietnam at around 2035-40 when Vietnam's car market is projected to hit 2-2,5 million vehicles. During the same time new engine plants or extended ones will be set up in China and most likely also in India.

Yeah, could be, but it explain why FDI in CN still increasing. The investors don't pour more money to CN to manufacture products that will export to another nations but to make more money from CN's market.

----------------------

“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.”

FDI in China grows in first nine months of 2020

news.cgtn.com

 

[Jagdflieger]

our car/ev conpany Vinfast purchased intellectual property rights from BMW to manufacture VInfast cars and many VNese buy those cars...but Vinfast just decided to stop manufacturing those petrol cars and changed to EV.

Erecting an EV charging network in a country is one thing - I don't see Vietnam having that kind of money, maybe I am wrong. Manufacturing or assembling vehicles is another issue.

So, at least VN is capable to manufacture German cars. The only problem is that we won't buy 500,000 units per year.

Manufacturing? like I stated before maybe from 2035/40 onward - till then it is assembly which includes sourcing parts from all over the world - mostly from China.

Yet, BMW did not sell VinFast its Valvetronic head license. Engines in VinFast cars won’t have Valvetronic tech at all. VinFast probably developed its own solution and saved a bit of cash.

maybe

Nevertheless, the engines for VinFast’s cars will come in two states of tune. One will deliver 175 horsepower and the other 227 horsepower. This isn’t what you’d call enormous power output, but no one could have actually expected a 3.0-liter, TwinPower, Turbo inside. Maybe sometime in the future. The engine is linked with an eight-speed ZF automatic transmission. Both cars, the Sedan and the SUV, will be available as RWD or AWD.

All these "new" car manufacturers are heavily subsidized via direct government sponsoring or via going public. It will take more then 15 years to find out if they are actually self-sustainable.
E.g. Malaysia's Proton, etc. hasn't earned a single cent in the past 25 years - but cost the government billions of subsidies.
VW said - no thank you. Now they have a Chinese major shareholder - who is struggling to gain a future profit via drawing all essential and costly parts from his China plants, maybe even from Vietnamese suppliers.

Yeah, could be, but it explain why FDI in CN still increasing. The investors don't pour more money to CN to manufacture products that will export to another nations but to make more money from CN's market.

Korea - due to it's own well developed car industry is a smaller but good market for e.g. Mercedes - around 75,000 units last year. taking logistics - import taxes etc. into account Mercedes China will continue to deliver that market with it's respective manufactured models. So I don't think that a Mercedes plant Vietnam in e.g. 15 years is going to take that share. But they will concentrate onto the Vietnamese market and it's immediate surroundings.

“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.”

Personally I totally disagree with this Mr. Yale Zhang. (he is a simple US tool and China basher just like this Gordon Chang and many others).

Fact is that all foreign OEM's do not control the market activities aka customers - these are "exclusively" managed by the Chinese partners themselves.
Not because China forced them to do so - but simply due to the fact that Western managers in vast majority do not speak Chinese or have the basic understanding towards Chinese culture and therefore it's consumer demands.

Example: Rich or good income Chinese love big and fat cars. So e.g. BMW is manufacturing L5 series and L3 series and even a 2 series specially produced for the Chinese market. You can't get them anywhere else. BMW only expanded considerably from 2010 onward upon agreeing towards their Chinese sales partners to produce what the Chinese customer wants and not as to what models BMW Munich decides.

The other reason is that no Western OEM was willing to invest billions into a sales network - aka 4S shops - dealerships. - thus these dealerships are entirely Chinese/HK/Taiwan owned and many are owned by the respective Chinese JV partners or their networks.

As such neither the Western OEM nor the Chinese JV partner would be interested to change that profit making arrangement. What might happen is that sole Chinese manufacturers such as Geely, or Great-wall will come up with better performing cars - and this might change the overall perspective of a Chinese or whatever customer to prefer e.g. an EV BYD (240,000Rmb) over an E535 BMW for 600,000Rmb. - it's called natural market displacement.

And naturally all being competitors, e.g. SAIC/VW or SAIC/Audi or FAW/Audi will do their possible best not to loose their own market share to another competitor.

 

[Viva_vietnamm]

Erecting an EV charging network in a country is one thing - I don't see Vietnam having that kind of money, maybe I am wrong. Manufacturing or assembling vehicles is another issue.

Manufacturing? like I stated before maybe from 2035/40 onward - till then it is assembly which includes sourcing parts from all over the world - mostly from China.

maybe

All these "new" car manufacturers are heavily subsidized via direct government sponsoring or via going public. It will take more then 15 years to find out if they are actually self-sustainable.
E.g. Malaysia's Proton, etc. hasn't earned a single cent in the past 25 years - but cost the government billions of subsidies.
VW said - no thank you. Now they have a Chinese major shareholder - who is struggling to gain a future profit via drawing all essential and costly parts from his China plants, maybe even from Vietnamese suppliers.

Korea - due to it's own well developed car industry is a smaller but good market for e.g. Mercedes - around 75,000 units last year. taking logistics - import taxes etc. into account Mercedes China will continue to deliver that market with it's respective manufactured models. So I don't think that a Mercedes plant Vietnam in e.g. 15 years is going to take that share. But they will concentrate onto the Vietnamese market and it's immediate surroundings.

Personally I totally disagree with this Mr. Yale Zhang. (he is a simple US tool and China basher just like this Gordon Chang and many others).

Fact is that all foreign OEM's do not control the market activities aka customers - these are "exclusively" managed by the Chinese partners themselves.
Not because China forced them to do so - but simply due to the fact that Western managers in vast majority do not speak Chinese or have the basic understanding towards Chinese culture and therefore it's consumer demands.

Example: Rich or good income Chinese love big and fat cars. So e.g. BMW is manufacturing L5 series and L3 series and even a 2 series specially produced for the Chinese market. You can't get them anywhere else. BMW only expanded considerably from 2010 onward upon agreeing towards their Chinese sales partners to produce what the Chinese customer wants and not as to what models BMW Munich decides.

The other reason is that no Western OEM was willing to invest billions into a sales network - aka 4S shops - dealerships. - thus these dealerships are entirely Chinese/HK/Taiwan owned and many are owned by the respective Chinese JV partners or their networks.

As such neither the Western OEM nor the Chinese JV partner would be interested to change that profit making arrangement. What might happen is that sole Chinese manufacturers such as Geely, or Great-wall will come up with better performing cars - and this might change the overall perspective of a Chinese or whatever customer to prefer e.g. an EV BYD (240,000Rmb) over an E535 BMW for 600,000Rmb. - it's called natural market displacement.

And naturally all being competitors, e.g. SAIC/VW or SAIC/Audi or FAW/Audi will do their possible best not to loose their own market share to another competitor.

Okay, but FDI to CN increase mainly just for meeting the needs of China's domestic market ( meaning foreign investors can make more money in CN) while chip plants, Ipad factories etc are quiting CN to VN -JP-Sing etc to avoid trade war

-------------------------------
Based on their new FDI attractiveness scorecard, China is the most attractive destination for FDI, accounting for more than 9 per cent of global FDI over the next decade.


That said, share of global FDI inflows will likely trend lower over the 2020-2029 period, as the composition of foreign investment into China continues to evolve and the mainland itself increasingly becomes a source of foreign investment in the region, said Fenner.

Specifically, foreign investment will likely become further oriented towards services and meeting the needs of China's domestic market. Meanwhile, FDI previously directed towards low-skilled export-oriented manufacturing will likely continue to be redirected to other Asian countries.

https://www.businesstimes.com.sg/global-enterprise/fdi-inflows-into-asia-pacific-region-remain-strong-over-medium-term-report

 

[Jagdflieger]

Okay, but FDI to CN increase mainly just for meeting the needs of China's domestic market ( meaning foreign investors can make more money in CN) while chip plants, Ipad factories etc are quiting CN to VN -JP-Sing etc to avoid trade war.

Yes - this is presently happening - due to the trade war, but mostly in regards to making more money in Vietnam and hoping to compensating lost market-share in China via the Vietnamese market. Which is a substantial market (100million people) and a rising GDP. The same reason applies towards Chinese investment in Vietnam, Thailand, Indonesia etc. - participate in a growing market.

 

[Viva_vietnamm]

Vietnam, S.Korea aim for a US$150 billion trade turnover by 2030​

Hai Yen

The Vietnamese Government for its part would create utmost conditions for South Korean companies to succeed in Vietnam and commit long-term presence in the country.

Vietnam and South Korea aim for a bilateral trade turnover of US$100 billion by 2023 and $150 billion by 2030 while striving for a more harmonious trade balance for mutual benefit.

Prime Minister Pham Minh Chinh at the phone talk. Source: VGP

The view was shared during a phone talk between Prime Minister Pham Minh Chinh and his South Korean counterpart Han Duck-soo on July 5.
At the talk, Chinh congratulated Han on his appointment as South Korea’s Prime Minister. The Vietnamese leader said bilateral relations have been on the rise amid a volatile world and severe Covid-19 impacts.
“Both countries have been top partners of each other, especially in economy, trade, and investment,” Chinh said.
According to Chinh, Vietnam remains steadfast in pursuing an independent foreign policy based on multilateralism and self-reliance, and thus, is committed to becoming an active and responsible member of the international community.

South Korean Prime Minister Han Duck-soo.

In this context, Vietnam considers South Korea a key and long-term strategic partner. “Vietnam seeks to deepen its relations with South Korea for the benefit of the peoples of the two countries, contributing to peace, stability, cooperation, and development in the region and the world,” Chinh said.
For his part, South Korean Prime Minister Han Duck-soo congratulated Vietnam’s achievements over the past years, especially in containing the Covid-19 pandemic and achieving high economic growth.
Han said South Korea identifies Vietnam as a key partner and expected the relations to continue to flourish in the coming time.
He also thanked the Vietnamese Government for facilitating entry for South Korean businesses and citizens, along with effective measures to help them maintain operations during the pandemic.
Both leaders agreed on measures to continue enhancing the relations, including the organization of events to celebrate the 30th anniversary of diplomatic relations (1992-2022).

In addition, Vietnam and South Korea would strengthen cooperation via bilateral and multilateral frameworks, such as the Vietnam-Korea Free Trade Agreement (VKFTA) and the Regional Comprehensive Economic Partnership (RCEP).

They expressed their determination to address the imbalance in trade relations, and create favorable conditions for Vietnam’s farm produce to enter the South Korean market; encourage South Korean companies to expand businesses in Vietnam, especially in priority fields including digital technology, renewables, and infrastructure development, for higher localization rate and added-value in Vietnam.
The Vietnamese Government for its part would create utmost conditions for South Korean companies to succeed in Vietnam and commit long-term presence in the country.
In this regard, Vietnam and South Korea would maintain and expand ODA support for Vietnam; boost cooperation in tourism, people-to-people diplomacy, and cultural-entertainment exchange.
Both sides also shared the view of keeping peace, stability, and freedom of navigation on the East Sea, and any difference should be resolved via peaceful solutions in line with international law, including the 1982 UN Convention on the Law of the Sea (UNCLOS).'

Vietnam, S.Korea aim for a US$150 billion trade turnover by 2030

hanoitimes.vn

 

[Viva_vietnamm]

Xiaomi starts making smartphones in Vietnam​

China-based electronics company Xiaomi has invested in smartphone parts production in Vietnam as it competes against local market leader Samsung, reported Nikkei.
Xiaomi plans to cater to the growing local demand for smartphones in Vietnam and support exports to Southeast Asia, including in Malaysia and Thailand.


Quoting several media reports, Pandaily stated that Xiaomi is working with Chinese electronics manufacturing company DBG Technology, which runs a 200,000 square meter factory in Vietnam. The same factory will also produce data transmission equipment and circuit substrates.

Previously, Xiamoi only produced smartphones in China and India. But restrictions due to the pandemic not only disrupted supply chains but also reduced sales, prompting the company to spread out its production locations.

Meanwhile, in February this year, Samsung added to its investment in Vietnam, which already manufactures half of its smartphone output, Nikkei Asia reported. The fresh investment of US$920 million will support the company’s circuit board and camera module production.
The South Korean firm has two factories in northern Vietnam and employs 100,000 people in the country

Tech in Asia - Connecting Asia's startup ecosystem

www.techinasia.com

 

[Viva_vietnamm]

Xiaomi plans to cater to the growing local demand for smartphones in Vietnam and support exports to Southeast Asia, including in Malaysia and Thailand.

More jobs loss in CN, the richs (Xiaomi boss ) are getting richer by fleeing to VN to make phones while the poor (600 million CNese) keep earning less than 140 usd per month like N.Korea

 

[Viva_vietnamm]

Phone giants poured into Vietnam

July 19, 2022
(PLO)- The important product lines of Apple such as iPad, AirPods, MacBook ... have been manufactured in our country and exported around the world.
Vietnam (VN) has demonstrated its ability to rise up the supply chain to become an important manufacturing hub for the global phone industry.

​

Vietnam has become a place of production, assembly, consumption... of most world-class phone manufacturers. Photo: PM

Many leading phone lines made in Vietnam

A representative of Chinese phone company (China) Xiaomi has just said that shipments of "made in Vietnam" smartphones have been sold around the world. This is quite surprising news because Xiaomi phones are mainly made in China.

In fact, DBG Technology VN Company, a partner of Xiaomi, is the unit that built the phone assembly factory in Thai Nguyen. This factory was put into operation at the end of last year, with the expectation of producing 20 million products per year not only phones but also computers, home electronics, electronic components...

Commenting on this event, Assoc. Not to mention they want to take advantage of tax incentives, labor costs, skilled labor as well as being close to the Chinese market.

“Due to the COVID-19 epidemic and increased logistics costs, Xiaomi's shipping price increases leading to an increase in final costs, so moving production to Vietnam will help reduce costs and increase availability” - Mr. Rajkishore Nayak explained.

Reuters news agency also recently said that Pegatron - Apple's iPhone manufacturing partner is planning to expand factories in other countries outside the Chinese market, including Vietnam. The Pegatron company explained that China's continuous implementation of a strict anti-epidemic policy has greatly affected the operation of iPhone assembly plants in Shanghai and Kunshan. There was even a time when the company had to stop operating the factory, affecting production and delivery plans, not to mention labor shortage.

“We are constantly faced with unexpected COVID-19 control measures, and it is very difficult to control every activity. Therefore, Pegatron has planned to expand production plants in Vietnam, India, Indonesia and North America to solve the above situations as well as expand production scale "- a representative of Pegatron said at the general meeting. last annual winter.

It is entirely possible for Vietnam to produce iPhone phones. Because the important product lines of Apple such as iPad, AirPods, MacBook ... have been manufactured in our country and exported around the world. In addition, the leading phone lines of Samsung, LG, Google ... are all manufactured in Vietnam.

There are many advantages but…

Economist Tran Thanh Hai said that Vietnam can completely become the world's phone factory, competing on an equal footing with China. This is thanks to Vietnam's electronics manufacturing industry reaching the continental level. Currently, Vietnam is in the top 10 countries in terms of electronics exports.

Samsung and Intel can be considered as the first generation of foreign investors to lay the foundation for the electronics manufacturing industry. Until now, Vietnam is the leading electronics manufacturing center of many other global giants, including LG, Foxconn and Canon.

In fact, Vietnam is known as a country with strengths in assembling activities of finished products and sub-assemblies for export. Because with phones, the design, sales, and distribution are all located abroad. As a result, Vietnam has become the main production and assembly destination for most of the world-class mobile phone manufacturers.

In particular, Vietnamese domestic companies have been improving their competitiveness as they participate more and more in the supply chains of large manufacturers. For example, the number of tier-1 suppliers of domestic companies to Samsung has increased rapidly in the past few years.

In the same opinion, Dr. Majo George, RMIT Vietnam University, acknowledged that another advantage of Vietnam in the phone industry is that multinational companies have established outstanding supply chains for a long time, including complex configurations. The most complicated is the chip. This makes it easy for phone manufacturers to source materials at a reasonable cost.

“Vietnam’s supporting industries also play an important role in the global value chain, including smartphone manufacturing. Vietnam also has remarkably low labor costs and is only about 1/3 of China's. Free trade agreements also contribute significantly to cost savings to create competition among major phone companies," said Dr. Majo George.

However, experts note that Vietnam still needs to be vigilant in the context that the world economy is facing many difficulties due to the Russia-Ukraine war, high gasoline prices, escalating raw materials, and supply chain disruptions. ... That is not to mention Vietnam still lacks skilled human resources; infrastructure, logistics has not really developed.

Notably, according to experts at HSBC, supply chain disruptions in China can make it difficult for Vietnamese manufacturing companies to secure input materials for export activities in the future. future. Because about 30% of Vietnam's imports come from China, mainly in the field of electronics with 30% and equipment and machinery 22%.•

The world's second largest smartphone exporter

In a recently published report, HSBC said that Vietnam's phone industry emerged largely from Samsung's FDI inflows. Over the past 20 years, Samsung has invested 18 billion USD in Vietnam.

The chain effect from the success of Samsung, Intel and other giant technology corporations also accelerated the process of redirecting the supply chain to Vietnam. Currently, Vietnam's smartphone market share globally has increased significantly. Although still behind China, occupying the top position in the world's phone production, Vietnam has gained 13% of the market share, quickly rising to become the second largest smartphone exporter in the world.

In addition to smartphones, Vietnam's laptop market share in the world is also gradually increasing, surpassing Malaysia to become the main producer in the ASEAN region. Especially, Vietnam has also risen to become a country providing microprocessors and controllers.

Các ông lớn điện thoại đổ vào Việt Nam

(PLO)- Những dòng sản phẩm quan trọng của Apple như iPad, AirPods, MacBook… đã được sản xuất tại nước ta và xuất khẩu đi khắp thế giới.

plo.vn

 

[Viva_vietnamm]

American city signed a cooperation agreement to export Quang Tri province's medicinal herbs

Cal-Nev-Ari city - acquired by a group of Vietnamese investors - has just signed a memorandum of understanding to bring medicinal plants of Cam Lo district to the US.

On July 26, the delegation of Cal-Nev-Ari city (Neveda state, USA) led by Mr. Sonny Nguyen, City Development Director, signed a memorandum of cooperation with Cam Lo district.

Cal-Nev-Ari is one of the smallest cities in Nevada, acquired by a group of Vietnamese investors in the US in August 2021. Located in the border triangle of 3 states of California, Nevada, and Arizona, it is named after the compound name of 3 states.

Leaders of Cam Lo district signed a cooperation agreement with a city in the US. Photo: Hoang Apple

According to the memorandum, the city of Cal-Nev-Ari supports Cam Lo district to export to the US market a variety of medicinal herbs such as ansa, jute long fruit, green tea, prickly pear, ha thu o... tea bags: perilla, nightshade, celery, lettuce, turmeric, pepper, rice; help this district connect potential partners in the US.

At the same time, the US city helps this district attract investors to build high-tech factories producing products from medicinal plants, develop large-scale raw material areas for export; support high-tech agriculture, organic agriculture; building brands of local products and goods to meet the strict criteria of foreign markets.

In addition, the two sides pledged to cooperate in tourism, cultural exchange, vocational education and training, and human resource development. In contrast, Cam Lo creates favorable conditions for businesses and investors from Cal-Nev-Ari city to operate locally.

Mr. Tran Hoai Linh - Vice Chairman of Cam Lo District People's Committee said that the district planted a trial of 0.3 ha of jute long fruit and was promoting to export this crop to the US. After this memorandum of cooperation, the district expanded the area to 20 hectares, developing it into a concentrated raw material area for export.

In 2020 and 2021, Cam Lo district and Cal-Nev-Ari city have initial cooperation. Cam Lo district exported 2 lots of An Xa Cao to Cal-Nev-Ari market with a total value of 3.4 billion VND. At the same time, this city, through a partner in Vietnam, cooperates with Cam Lo district to test 3.5 hectares of raw anxilla with a budget of more than one billion VND .

Thành phố Mỹ ký hợp tác đưa dược liệu Quảng Trị xuất khẩu

Quảng Trị- Thành phố Cal-Nev-Ari - do nhóm nhà đầu tư người Việt mua lại - vừa ký bản ghi nhớ hợp tác đưa cây dược liệu của huyện Cam Lộ sang Mỹ.

vnexpress.net

 

[Viva_vietnamm]

Samsung to manufacture semiconductor products in Vietnam next year
Friday, 20:43, 05/08/2022

VOV.VN - Samsung Electronics plans to manufacture semiconductor products at its Samsung Electro-Mechanics Vietnam located in Thai Nguyen province in July 2023, Samsung Electronics CEO Roh Tae-Moon told PM Pham Minh Chinh in Hanoi on August 5.​

PM Pham Minh Chinh (R) receives Samsung Electronics CEO Roh Tae-Moon in Hanoi on August 5. (Photo: VGP)
Roh who is visiting Vietnam revealed that the group is expected to inaugurate its research and development (R&D) centre in Hanoi in late 2022 or early 2023 to support not only Vietnam but also other countries in Southeast Asia.
He said Samsung plans to support 50 Vietnamese businesses in enhancing their competitive capacity through the development of a smart factory model, in addition to promoting cooperation with universities and research institutions of Vietnam.
He thanked the Government of Vietnam and relevant agencies for helping foreign businesses, including Samsung, to cushion the impact of the COVID-19 pandemic, and for creating a good environment for businesses to operate constantly in the context of global changes.

According to the CEO, Samsung Vietnam raked in US$34.3 billion from exports in the first six months of this year, up about 18% year on year. It aims to raise its export turnover to US$69 billion this year, invest an additional US$3.3 billion and continue to expand operations in Vietnam.
He suggested that Vietnam improve the quality of human resources through training to meet the needs of businesses and investors.
Receiving the CEO, Prime Minister Pham Minh Chinh welcomed the group’s operation plans in Vietnam, saying the Vietnamese government is committed to improving the investment environment for foreign investors in general and Samsung in particular, while actively dealing with Samsung’s recommendations.
He suggested that Samsung expand investment in semiconductor manufacturing, one of the groups’ three major development orientations in Vietnam along with its existing production lines for mobile devices and consumer electronics products.
In the context global FDI inflows undergoing investment restructuring and supply chain repositioning, the PM expected that Samsung would support and serve as a bridge to bring Korean businesses to Vietnam and at the same time help to diversify the supply chain in the near future.
Currently, the Republic of Korea is Vietnam’s third largest trading partner after China and the United States. Last year saw two-way trade turnover between the two countries reach US$78 billion, accounting for 11.6% of Vietnam’s total trade value.
The RoK Korea is the largest FDI partner in Vietnam with 9,383 operating projects valued at nearly US$80 billion.

Samsung to manufacture semiconductor products in Vietnam next year

VOV.VN - Samsung Electronics plans to manufacture semiconductor products at its Samsung Electro-Mechanics Vietnam located in Thai Nguyen province in July 2023, Samsung Electronics CEO Roh Tae-Moon told PM Pham Minh Chinh in Hanoi on August 5.

english.vov.vn

 

[Viva_vietnamm]

Vietnam’s role in the global chip race​

BREAKING NEWSCallender Breaking News a day ago
Vietnam’s role in the global chip race

The world’s leading chip corporations such as Intel and Samsung are actively present in Vietnam in the context of the global semiconductor race heating up.
Follow Global Timeswhile the wave of production line transfer from China to Vietnam is still attracting much attention, recently, Vietnam continues to become the focus of the semiconductor industry when Samsung announced its production plan. Semiconductor components from July 2023.
With its role and influence in the global market, Samsung’s latest action will promote the strong development of Vietnam’s semiconductor industry in the future.

From an expert perspective, Xinmou Research analyst Gu Wenjun said that the world is fiercely competitive in the semiconductor industry. Southeast Asian countries are benefiting from attracting many international corporations to invest. “In which, Vietnam is becoming a new destination for the semiconductor industry with industrial parks specializing in chip testing and packaging,” said Mr. Gu Wenjun. Global Times.
Global Times Experts also quoted experts as saying that Vietnam is becoming an important part of the global supply chain of the semiconductor industry and has the ability to compete with China.

According to a report by research firm Technavio, the semiconductor market in Vietnam is expected to grow by 1.65 billion USD in the period 2021 – 2025 with a compound annual growth rate of about 6.52% per year. . “The increase in consumer demand is the direct cause of the strong growth of semiconductor factories in Vietnam, attracting FDI capital from many foreign enterprises in recent years. Vietnam is known as a emerging market in Asia in the semiconductor sector,” said Technavio.

Besides Samsung, Vietnam is also home to Intel’s largest assembly and testing factory. Intel Products Vietnam (IPV) is invested 1.5 billion USD, has more than 2,800 employees and is the largest American high-tech company in Vietnam. As of 2021, IPV has shipped more than 3 billion products to Intel customers globally.
At the end of May, Intel honored IPV for its innovations in improving substrate processing at its assembly and testing plants, helping Intel successfully add millions of chips to the market, making an important contribution to the success of Intel. important to help the company overcome the global chip crisis.


Kim Huat Ooi, Vice President and General Director of Intel Products Vietnam said: “This initiative helps Intel complete chip assembly 80% faster and supports substrate suppliers who are facing shortages. supply shortage”. The new approach of the Intel Vietnam factory helps it add millions of chips every year, opening the prospect of increasing more than $2 billion in profit for Intel.

In addition to the two giants Samsung and Intel, many big semiconductor companies in the world are also setting up factories in Vietnam, such as USI Electronics, a subsidiary of Taiwan’s ASE Semiconductor or Japan’s Renesas Electronics.
According to Gu Wenjun, Vietnam’s advantage lies in its large labor market and cheap land. Steve Long, general manager of the Asia-Pacific and Japan region of Intel, said: “The political and social environment is stable, trade and investment policies are increasingly liberalized, and the labor force is becoming more and more liberal. Young and talented movements are the reason why Vietnam is so attractive.” Mr. Long said that Vietnam is fully capable of setting up the necessary infrastructure and policies to support advanced manufacturing activities.

However, the current state of Vietnam’s semiconductor industry also reflects the general situation of Southeast Asia in this field. Manufacturing facilities in the region are simply assembling finished products and exporting components that are of low value in the supply chain. Even Malaysia – the country with the region’s most developed semiconductor industry – is struggling to switch from a cheap chip foundry to designing and manufacturing higher-end chips.
Despite the great potential, experts also pointed out challenges for Vietnam’s semiconductor industry. Follow Technavio, one of the biggest barriers today is the lack of highly skilled labor. As an example of the shortage of the domestic chip industry, Mr. Nguyen Anh Thi, Head of the Management Board of Ho Chi Minh City Hi-Tech Park said that the city is one of the leading places in the country in the field of semiconductors, but only about approx. 1,000 IC engineers, 2,000 – 3,000 embedded system engineers. “The current number of 1,000 IC engineers is not enough to meet the demand in this field, which requires tens of thousands more people to have a high-quality workforce in this industry,” Mr. Thi said.

https://vietnam.postsen.com/news/71426/Vietnam%E2%80%99s-role-in-the-global-chip-race.html

 

[Gary]

Vietnam will follow Malaysia as Southeast asia semicon center. I don't think Indonesia could compete in this sector. Better for us to focus more on automotive and battery production.

 

[Viva_vietnamm]

Vietnam will follow Malaysia as Southeast asia semicon center. I don't think Indonesia could compete in this sector. Better for us to focus more on automotive and battery production.

US is increasing tension in Taiwan strait and may slap more harder sanction on CN soon, VN just try to take as many high tech factories from CN as possible.

 

[Viva_vietnamm]

Producing the highly sophisticated Apple Watch would be a win for Vietnam as it attempts to further upgrade its tech manufacturing sector. (Source photos by AP and Reuters)

Apple is in talks to produce Apple Watch and MacBook laptops for the first time in Vietnam. Currently, Vietnam is Apple's most important manufacturing hub outside of China and produces a range of key products for the American company, including iPad tablets and AirPods headphones.

Nikkei Asia reported that Apple suppliers Luxshare Precision Industry and Foxconn have begun trial production of Apple Watch in the North of Vietnam. According to experts, the production of Apple Watch requires a higher level of sophistication. Producing this equipment will be a win for Vietnam as it strives to enhance its technological manufacturing sector.

BYD is the first Chinese company to support this shift. Sources familiar with the matter said that Foxconn helps produce more iPads and Apple is in talks with suppliers to test production for its HomePod smart speaker in Vietnam.

According to this source, Apple has asked suppliers to set up a trial MacBook production line in Vietnam. However, progress is slow, partly due to disruptions related to the Covid-19 pandemic and because laptop production involves a larger supply chain. According to Nikkei Asia analysis, the number of Apple suppliers with bases in Vietnam has increased from 14 companies to at least 22 companies.

Việt Nam sẽ lần đầu tiên sản xuất Apple Watch và MacBook

Apple đang đàm phán để lần đầu tiên sản xuất đồng hồ Apple Watch và máy tính xách tay MacBook tại Việt Nam. Hiện tại, Việt Nam là trung tâm sản xuất quan trọng nhất của Apple bên ngoài Trung Quốc và là nơi sản xuất một loạt các sản phẩm chủ lực cho công ty Mỹ này, bao gồm máy tính bảng iPad và...

www.quochoitv.vn

 

[Viva_vietnamm]

Foxconn invests another 300 million USD in Bac Giang​

August 19, 2022

Hong Hai Science and Technology Group (Foxconn) plans to lease 50.5 hectares of land in Quang Chau Industrial Park (Bac Giang) to invest in a new project with a capital of 300 million USD.

Recently, Saigon – Bac Giang Industrial Park Joint Stock Company (a subsidiary of Kinh Bac Urban Development Corporation) signed a memorandum of understanding for Hong Hai Science and Technology Group (Foxconn) to sublease 50, 5 hectares of land in Quang Chau Industrial Park, Bac Giang province.
It is expected that Foxconn will invest in a new project with a total investment of more than 300 million USD, and at the same time employ 30,000 local workers. In April last year, the group announced to invest 700 million USD in Vietnam to expand production scale with the expectation of earning 10 billion USD.
Foxconn is a large corporation in the fields of electronics, information technology and computers. This is also the largest FDI enterprise in Quang Chau Industrial Park with a total leased area of 69.82 hectares. Total registered investment capital reached 773 million USD.
In two years 2019 and 2020, Foxconn’s revenue in Vietnam reached 3 billion USD and 6 billion USD respectively.
Notably, Foxconn is the company responsible for outsourcing Apple products. Businesses with similar roles in Vietnam also include Luxshare, Pegatron…

Employees at the factory of Luxshare ICT Vietnam. Photo: Minh Khanh.
Also at this time, Nikkei Asian Review said that Apple has a desire to produce Apple Watch and MacBook in Vietnam. This is the first time that the above technological equipment is processed outside of China.
Since Covid-19 appeared, Apple has moved many equipment production lines from China to neighboring countries, especially Vietnam. Previously, some other Apple products such as AirPods headphones were delivered to Luxshare factory in Bac Giang for production from 2020.

However, Apple’s main product (iPhone) has not yet been processed in Vietnam. Sharing with Nikkei, an expert revealed that Apple has big plans in Vietnam and will expand its portfolio of outsourcing equipment.
Quang Chau Industrial Park is currently invested by Saigon – Bac Giang Industrial Park Joint Stock Company. This is also one of the industrial zones of Bac Giang province, next to Van Trung and Dinh Tram, attracting a large amount of FDI capital.

Foxconn invests another 300 million USD in Bac Giang

Hong Hai Science and Technology Group (Foxconn) plans to lease 50.5 hectares of land in Quang Chau Industrial Park (Bac Giang) to invest in a new project with a capital of 300 million USD.

vietnaminsider.vn

 

[Viva_vietnamm]

American company trains engineers to design chip software in Vietnam
Aug 26, 2022 - 19:32
Chip software maker Synopsys (USA) is shifting investment to Vietnam and supporting engineer training in a way to reduce dependence on Chinese workers, after the US added the chip sector to its control list. export.

Mr. Robert Li, vice president of Synopsys, talks at a press conference in Ho Chi Minh City Hi-Tech Park

On August 26, Synopsys - one of the US companies dominating the global market in electronic design automation (EDA), chip design software - announced that it would train engineers in Vietnam and award certified to build a local chip design center.

Synopsys' move is good news for Vietnam. Manufacturers like Apple and Panasonic are also moving production lines to the S-shaped strip of land.

Mr. Robert Li - Synopsys's vice president of sales in Taiwan, Southeast Asia and India - said that through partnerships with foreign companies, Vietnam can begin to design new products. integrated circuits (ICs) "complete", such as for refrigerators and air conditioners, and then up the value chain.

Mr. Li added to Nikkei after a press conference at Ho Chi Minh City's Hi-Tech Park: "Making a chip is like a child. It takes nine months. If you want to design a new chip, it takes it. three years".

The US Department of Commerce on August 12 expanded its export block list to China to include EDA software - an industry in which Synopsys says the US accounts for 97% of the global market.

Synopsys Sales Director - Adrian Ng Siong Teck - said that Vietnam is one of the countries that Synopsys prioritizes for investment.

A representative from the "software giant" did not provide details on how much more it would invest in Vietnam, but said there were 30 licenses worth $20 million in a high-tech park in Vietnam. Synopsys has two offices in Ho Chi Minh City and two in Da Nang with more than 400 employees and plans to increase from 300-400 people.

Chip engineers in Vietnam have designed end-to-end computer programs for parent companies, like Renasas or Ampere, and can build upgrades based on their expertise in EDA.

Vietnam has nurtured its dream of gaining a foothold in the semiconductor sector for more than a decade. Nguyen Anh Thi, Head of the Ho Chi Minh City Hi-Tech Park Management Board, said: “The global political economy and Vietnam's political economy are opening up a new opportunity to realize the chip dream. ".

The cooperation between the Hi-Tech Park, universities and Synopsys to deal with the global shortage of tech talent. According to Mr. Thi, Vietnam can acquire skills from foreigners, then develop products for the domestic market of 99 million people.

He said: "There are many companies that want to come to Vietnam to find talent. They will bring advanced projects in IC design. Once you accumulate enough experience, you will move to a higher stage".

Công ty Mỹ đào tạo kỹ sư thiết kế phần mềm chip vi mạch tại Việt Nam

Nhà sản xuất phần mềm chip Synopsys (Mỹ) chuyển đầu tư sang Việt Nam và hỗ trợ đào tạo kỹ sư nhằm giảm phụ thuộc vào nhân công Trung Quốc.

www.phunuonline.com.vn

 

[Viva_vietnamm]

The world's leading aircraft manufacturer Boeing has ambitions to do the same as Samsung, Intel... in Vietnam, connecting with many suppliers and supporting the development of Vietnam's aviation industry.

For the first time, the world's leading aircraft manufacturer Boeing has organized the Aerospace Industry Forum in Vietnam. This, according to Mr. Michael Nguyen, Director of Boeing Vietnam, has shown the important role of the Vietnamese market for Boeing.

The forum was organized to share a vision for enhancing Vietnam's opportunities in the fields of aerospace training, supply chain, sustainable aviation and research and development.

Mr. Michael Nguyen speaks at the Forum
“Vietnam's aviation market is one of the fastest growing markets globally. And we want to become a lever to support Vietnam's development of the aviation industry," said Mr. Michael Nguyen in a talk with the press on the sidelines of the Forum.

According to Mr. Michael Nguyen, recent forecasts show that, within the next 30 years, Southeast Asia will need about 4,000 new aircraft to meet the travel needs of people, of which Vietnam is a country that needs a lot of new aircraft. most aircraft.

To meet market demand and become a strategic partner with Vietnam, Boeing not only cooperates with Vietnam in the field of commerce, but also expands cooperation in the field of technology, improving industry capacity. Vietnam's aerospace industry to international standards.

“We will work with authorities, businesses and universities in the aerospace industry in Vietnam to build a foundation for long-term development,” said Michael Nguyen.

Not hiding his ambition, Mr. Michael Nguyen said, Boeing wants to "follow the example" of Samsung and Intel in developing the supply chain in Vietnam.

"Every Boeing produced in the world has components from Vietnam," said Michael Nguyen, and for example a few aircraft components are manufactured in Vietnam, such as aircraft wings, aircraft doors ...

An aircraft needs more than 6 million components and so the demand is still strong. Mr. Michael Nguyen said that Boeing is willing to work with Vietnamese enterprises in providing spare parts for aircraft manufacturing.

Currently, to build the supply chain, Boeing is working with 7 suppliers in Vietnam.

“Maybe in the short term, Vietnamese companies have not been able to work directly with Boeing but have to go through Japanese and Korean companies… We also want to work directly with Vietnamese companies, however, I think, Vietnamese companies also need to go before they run,” said Mr. Michael Nguyen, adding that Boeing is ready to support so that Vietnamese companies can go fast and run fast.


Mr. Do Nhat Hoang suggested Boeing strengthen cooperation in the field of aerospace with Vietnam

Meanwhile, according to Mr. Craig Abler, Boeing's regional vice president of Asia Supply Chain, in the context of increasingly fierce global competition, broken supply chains, and increased cooperation with suppliers. Responding to Vietnam and improving the skills of workers in Vietnam's aerospace sector will help Boeing improve its competitiveness.

Accordingly, Boeing will work with Vietnamese companies to apply best practices for lean manufacturing, supplier management and other specialized training.

Regarding this issue, when speaking at the Boeing Aerospace Industry Forum in Vietnam, Mr. Do Nhat Hoang suggested that Boeing in particular and US businesses in general continue to strengthen investment cooperation. , technology transfer to Vietnam in the fields of infrastructure, production and technical services of the aviation industry, such as component production, aircraft maintenance, satellite manufacturing industry, telecommunications technology, etc. through...

Along with that, connecting Vietnamese businesses with the supply chains of large global enterprises and corporations.

“As for Boeing, we hope that the Group will research and develop a training center for pilots, experts and engineers in the field of aerospace as well as establish an aircraft manufacturing base in Vietnam.” Mr. Do Nhat Hoang said.

Mỗi máy bay Boeing sản xuất ra, đều có linh kiện từ Việt Nam

Nhà sản xuất máy bay hàng đầu thế giới Boeing nuôi tham vọng làm được như Samsung, Intel… tại Việt Nam, kết nối được với nhiều nhà cung ứng và hỗ trợ phát triển công nghiệp hàng không Việt Nam.

baodautu.vn

 

[Viva_vietnamm]

Vinfast expands cooperation with Japanese electronics company in EV manufacturing​

VinFast, Vietnam’s first global EV maker, and Renesas Electronics Corporation, Japan’s premier supplier of advanced semiconductor solutions, announced on September 26 that they are expanding their collaboration agreement to include automotive technology development of electric vehicles (EVs) and delivery of system components.
VNA Tuesday, September 27, 2022 09:2

An electric car of Vinfast (Photo: VNA)
Hanoi (VNA) - VinFast, Vietnam’s first global EV maker, and Renesas Electronics Corporation, Japan’s premier supplier of advanced semiconductor solutions, announced on September 26 that they are expanding their collaboration agreement to include automotive technology development of electric vehicles (EVs) and delivery of system components.

The signing ceremony of the strategic collaboration was held at VinFast’s factory in the northern port city of Hai Phong earlier this month, which was attended by VinFast’s CEO Le Thi Thu Thuy and Renesas’ CEO Hidetoshi Shibata, the Japanese company said in its press release.

As part of the newly expanded agreement, Renesas will provide a broader range of products to VinFast, including SoCs (System on Chips), microcontrollers, analog and power semiconductors. It will also provide technical support to assist VinFast in developing future automotive applications and mobility services.

By gaining access to Renesas' leading-edge technologies and expertise in the automotive industry, VinFast will accelerate the development of new EVs and market expansion with the aim to aggressively increase its annual production and sales.

MoU signing ceremony between Vinfast and Renesas (Photo: VNA)
The two companies will regularly share product development roadmaps, market trends and requirements, project implementation progress as well as new cooperation opportunities.

“VinFast is on a course of market expansion worldwide and mass production to ensure the highest vehicle performance and timely delivery to customers” said Le Thi Thu Thuy, Vice Chairwoman of Vingroup and Global CEO of VinFast. “This new partnership with Renesas will give VinFast access to both advanced in-vehicle semiconductor technology as well as high-level system expertise, with the aim to accelerate the development of safe and sophisticated EVs for global markets.”

“We are committed to supporting the local industry in Vietnam through talent development and business expansion. Since founding our design centre in Ho Chi Minh City in 2004, we have continued to expand our presence in Vietnam. We also established a second design centre in Da Nang this April,” said Hidetoshi Shibata, President and CEO of Renesas. “The collaboration with VinFast reinforces our commitment. We are thrilled to join VinFast’s journey for their global growth beyond Vietnam. By making EVs more widely available, I am convinced we can lead a greener, safer, and more sustainable way of living.”

VinFast and Renesas have previously collaborated on automotive infotainment systems, and Renesas’ SoCs (System-on-Chips), R-Car, and analog products have already been implemented in VinFast's new VF8 and VF9 EV models./.

Vinfast expands cooperation with Japanese electronics company in EV manufacturing

VinFast, Vietnam’s first global EV maker, and Renesas Electronics Corporation, Japan’s premier supplier of advanced semiconductor solutions, announced on September 26 that they are expanding their collaboration agreement to include automotive technology development of electric vehicles (EVs) and...

en.vietnamplus.vn

Vinfast expands cooperation with Japanese electronics company in EV manufacturing

VinFast, Vietnam’s first global EV maker, and Renesas Electronics Corporation, Japan’s premier supplier of advanced semiconductor solutions, announced on September 26 that they are expanding their collaboration agreement to include automotive technology development of electric vehicles (EVs) and...

en.vietnamplus.vn

 

[Viva_vietnamm]

Viet Nam may become world's chip production center, say experts​

VGP - In the first eight months of this year, phones and electronic components recorded the most prominent export turnover in Viet Nam, reaching nearly US$40 billion.​

THUY DUONG
SEPTEMBER 28, 2022 4:03 PM GMT+7

Illustration photo
Numerous international experts believe that Viet Nam can become the world's chip manufacturing center, especially since many significant technology corporations have announced plans to boost the production of semiconductor components in the country.
Currently, Viet Nam ranks 9th globally in exporting electronic goods. It is home to Intel's largest assembly and test factory, with an investment of US$1.5 billion. This factory accounts for about 70 percent of Intel's total global output.

• Intel inaugurates world’s largest chip plant in VN​

"The three main factors for us to manufacture in Vietnam are the highly stable socio-political environment, the Government's constant expansion of free trade agreements and an abundant labor force", said Kim Huat Ooi, Vice President of Intel Products Viet Nam Co., Ltd.
Besides Intel, many other well-known electronic corporations, such as Samsung, LG, and Apple, have factories and research and development (R&D) centers in Viet Nam. Samsung recently announced plans to produce semiconductors from July next year with an additional investment of $920 million.
In the current global context, when the U.S. has just enacted the CHIP Act worth US52 billion to support the chip manufacturing industry of this country, countries in the supply chain, like Viet Nam, can seize the opportunity to participate and develop.
According to experts, Viet Nam needs to negotiate with countries such as the U.S., Japan and the Republic of Korea to reach agreements on cooperation in supporting technology transfer.
From there, Viet Nam can move towards complete autonomy of essential stages in the semiconductor manufacturing process, opening a new page for Viet Nam's supporting technology.

Vietnam to become the worlds chip production center

VGP - In the first eight months of this year, phones and electronic components have the most prominent export turnover in our country, reaching nearly 40 billion USD.

en.baochinhphu.vn