The food and beverage (F&B) industry in Vietnam will likely see a growth rate of 10.9% for the 2017-2019 period, Business Monitor International (BMI) has forecast. Foreign investors eye Vietnam’s food processing industry Foreign companies have been pouring more money into Vietnam’s food processing and drinks industry thanks to an average growth rate of 7%-9% in the 2013-2017 period. So far, foreign investment into the food processing industry reaches US$11.2 billion in more than 700 projects, excluding merger and acquisition (M&A) deals, according to Vu Van Chung, deputy head of the Ministry of Planning and Investment’s Foreign Investment Agency. In the last five years, many international food processing companies have invested and expanded their production in Vietnam where the government plans to withdraw its shares in major F&B firms, including dairy producer Vinamilk and two brewers Sabeco and Habeco, creating more opportunities for … [Read more...] about More foreign investors pour money into Vietnam’s F&B industry
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What awaits Vietnam’s retail industry in 2019?
VietNamNet Bridge - The total retail and consumption revenue in Vietnam saw positive growth, with the growth rate higher than GDP growth rate. The number of retail sale points has increased rapidly in the last few years The number of retail sale points has increased rapidly in the last few years. Of these, shopping malls have been growing by 11.3 percent per annum in CAGR (Compound Annual Growth Rate). Meanwhile, the development of traditional markets is slowing down, at 0.9 percent per annum. Since January 2015, 100 percent foreign owned retailers can be established in Vietnam. 100 percent of import tariff lines, i.e, nearly all import products, have been lifted since 2018. The M&A wave in the retail industry in early 2016 has become stronger in recent years. According to VCB Securities, there were only 18 M&A deals in 2005, valued at $61 million, but the figure rose to $10.2 billion in 2017. In 2015-2017, the number of supermarkets, hypermarkets and shopping centers saw … [Read more...] about What awaits Vietnam’s retail industry in 2019?
Vietnam’s grand illusions about industry 4.0
Dinh Hong Ky, vice chairman of Saigon Association of Construction and Building Materials. I recently visited a company in Bologna city in Italy and was impressed with what I saw: They have created an app for designing and manufacturing building materials using artificial intelligence and big data. Users can find information about building materials from brands around the world and use it to create their own interior design. Thus, for the first time, a lay person can do the job of a professional interior designer, thanks to this app. I admired their work and so asked them how they came up with such a product. They told me they built and updated it over several years as information technology progressed rapidly. And so I eagerly began to discuss industry 4.0, big data, artificial intelligence, Internet of Things, cloud computing and digitization, only to find out to my surprise that they know nothing about those trends. They just did what they have always done and kept learning from … [Read more...] about Vietnam’s grand illusions about industry 4.0
Engineering sector development amidst Industry 4.0 discussed
A factory of the Tri Cuong Industrial Co. Ltd at the Nguyen Khe Industrial Cluster in Dong Anh district, Hanoi (Photo: VNA) Hanoi (VNA) – Vietnam’s mechanical engineering industry is lagging far behind the world, meaning the Government and businesses must renovate to keep up with the fast-moving technological revolution, heard a workshop. At the event on ‘Implementing the development strategy for the mechanical engineering industry in the context of the Fourth Industrial Revolution’ held by the Ministry of Industry and Trade in Hanoi on September 5, participants shared experience and reviewed the sector's shortcomings and limitations while proposing solutions to its future development. A report of the Vietnam Association of Mechanical Industry (VAMI) showed that total value of industrial production is estimated at 50 billion USD, with domestic production 16 billion USD. This means the domestic mechanical industry meets only 32.5 percent of national … [Read more...] about Engineering sector development amidst Industry 4.0 discussed
Electricity industry locked in high fund demand
Electricity industry locked in high fund demandBy Ngoc Lan - The Saigon Times DailyHANOI – Attracting investment remains a big challenge for the local electricity industry in the long term as the sector needs up to US$80 billion to develop power supply and the grid during the 2006-2025 period, said the Ministry of Industry and Trade.The ministry presented at a conference in Hanoi on Thursday two scenarios for power development, with the basic Tran Viet Ngai, chairman of the Vietnam Energy Association, told the international conference that “we are short of capital and foreign investment is an unavoidable solution to develop the power sector.” That will be a high hurdle to jump, given the current tempo of attracting investment into the sector, according to Ngai.Ngai calculated that the electricity sector would require US$4 billion each year during the nearly 20 years. This is extremely difficult for the industry to compete for such a high amount of investment, when … [Read more...] about Electricity industry locked in high fund demand
Household appliance industry worth 13 billion USD
The household appliance industry in Vietnam has great potential, but fierce competition is expected to occur among producers, distributors and retailers (Photo: vietnamnet.vn) HCM City (VNA) - The household appliance industry in Vietnam has great potential, but fierce competition is expected to occur among producers, distributors and retailers. According to the Ministry of Industry and Trade, spending for household appliances is estimated to take 9 percent of total private spending. The industry ranks fourth of 11 major commodities, with yearly turnover of 12.5 – 13 billion USD and annual growth of 10 percent. The ministry expects that a big proportion of young people will lead to a strong rise in purchase of household appliances. The spending from consumers aged 18 – 45 represents 57 – 60 percent of total market, the ministry said. At the same time, per capita income is over 2,000 USD per year, and demand for quality and models has also increased. … [Read more...] about Household appliance industry worth 13 billion USD
Household appliance industry worth US$13 billion
According to the Ministry of Industry and Trade, spending for household appliances is estimated to take 9% of total private spending.The industry ranks fourth of 11 major commodities, with yearly turnover of US$12.5 – 13 billion and annual growth of 10%.The ministry expects that a big proportion of young people will lead to a strong rise in purchase of household appliances.The spending from consumers aged 18 – 45 represents 57 – 60% of total market, the ministry said.At the same time, per capita income is over US$2,000 per year, and demand for quality and models has also increased.Furthermore, more people are buying made-in-Vietnam goods.Local brand names like Happy Cook, Sunhouse, Son Ha, Tan A and Dien Quang represent 85 – 95% of market share in their categories thanks to good quality, affordable prices and wide-range distribution systems.At the same time, rural markets have moved from hand-made and simple household appliances to popular Vietnamese brand … [Read more...] about Household appliance industry worth US$13 billion
Household appliance industry worth $13b
The household appliance industry in Viet Nam has great potential, but fierce competition is expected to occur among producers, distributors and retailers.— Photo vietnamnet.vn The household appliance industry in Viet Nam has great potential, but fierce competition is expected to occur among producers, distributors and retailers. According to the Ministry of Industry and Trade, spending for household appliances is estimated to take 9 per cent of total private spending. The industry ranks fourth of 11 major commodities, with yearly turnover of US$12.5 – 13 billion and annual growth of 10 per cent. The ministry expects that a big proportion of young people will lead to a strong rise in purchase of household appliances. The spending from consumers aged 18 – 45 represents 57 – 60 per cent of total market, the ministry said. At the same time, per capita income is over $2,000 per year, and demand for quality and models has also increased. Furthermore, more people are … [Read more...] about Household appliance industry worth $13b
Hanoi issues policies and mechanisms for supporting industries in 2018
The Hanoitimes - To promote the the role of the Hanoi Capital in giving orientation, creating favorable conditions for supporting industry enterprises in both quality and competitiveness in the integration process, the Plan No. 03/KH-UBND pointed out such targets. The Plan was issued on January 3 by the Hanoi People’s Committee on implementing the Program on supporting industry development of Hanoi in 2018. The Plan aims to further attract investment and improve the capacity of supporting industrial production via various activities of the program on supporting industry development; contribute to establishing the network of satellite businesses to boost the cooperation and production connection of Hanoi’s supporting industry enterprises with assembly enterprises, multinational corporations, foreign direct investment enterprises in the capital city, the North and the whole country. Accordingly, departments, sectors, units will perform following … [Read more...] about Hanoi issues policies and mechanisms for supporting industries in 2018
Banking Industry before 4th Industrial Revolution: Plentiful Opportunities, Abundant Challenges
Despite staying out of the list of nine sectors hardest hit by the Fourth Industrial Revolution, the banking industry, typically at the forefront of information technology application, will not stand out of the whirlwind of this Fourth Revolution. Many opportunities The application of high technology, typical of the Fourth Industrial Revolution, will help Vietnamese banks to gain many benefits such as improving profitability by reducing administrative costs, effectively operating the banking system and tech infrastructure, deploying new products and services in a faster and more flexible manner to meet customers' demands for electronic banking services. This will thus help domestic banks develop strongly and compete with advanced banks in the region and in the world. The digital banking model, technologically operated digital devices connected to computer software in the Internet environment, has in fact been, and will be, changing the entire banking structure and providing … [Read more...] about Banking Industry before 4th Industrial Revolution: Plentiful Opportunities, Abundant Challenges