“Vietnam is rapidly moving toward the development of supply chains. We will see more investment in electronics and electrical goods — from laptops, mice and remote controls to smart watches, telecommunications products and machines. Other key fields will be medical products, automotive parts and machinery,” C.K. Tong, CEO of BW.
“From a logistics point of view, we believe modern multi-story warehouses will be rolling out faster in the next few years — particularly around Hanoi and HCMC where land prices are high. I expect that certain IPs located close to the CBDs of HCMC and Hanoi will be re-zoned and changed to be more like business parks as the urbanization of these cities takes place,” Ms. Tran Huynh, Deputy CEO of BW.
Organizer: World Trade Center Binh Duong New City
Venue: Binh Duong Convention & Exhibition Center (BCEC)
|Representatives from several different
industries will meet to exchange ideas,
showcase their latest products & solutions
and build valuable relationships.
The Market Intelligence & Consulting Institute (MIC) predicts that Southeast Asia will produce half of the world’s notebook personal computers in 2030 — with Vietnam and Thailand pegged as main manufacturing hubs.
Currently, China accounts for 90% of the global laptop production; however, China’s dominance in global laptop manufacturing will wane in the next few years as the supply chain gradually moves to Southeast Asia.
Fitch Solutions attributed Vietnam’s success to a combination of factors: firstly, the abundance of young labor as around 70% of the total population is still of active age; secondly, lower wages relative to China.
Apparel exports from Vietnam have grown by 15.8% in terms of the compound average growth rate between 2010 and 2019, making the country the second largest global apparel exporter after China.
With a 43% growth rate, Vietnam ranked third in the region (after the Philippines and Thailand) in terms of growth. In addition, Vietnam is among the top countries in Southeast Asia – together with Indonesia and Thailand – in the number of visits to online shopping apps, accounting for 19.5% of the entire region market share.
Vietnam is expected to be the only Southeast Asian economy to achieve growth this year with its GDP rising by a likely 2.3%. The Global Economic Outlook report said recovery prospects look brightest for Vietnam, which had contained the COVID-19 outbreak very effectively the recent outbreak in Da Nang.
In recent years, Vietnam has become a popular option for companies that want to expand their production network in Asia. COVID-19 is intensifying the trend, according to the article. The International Monetary Fund forecast that the country can expect economic growth of almost 3% this year.
To attract both foreign and domestic investors, Bac Ninh focused on improving its business climate by prioritising projects which use less land and less labor while having a high investment rate, significant budget and modern technology, the Vietnam Government Portal reported.
Representatives from Apple have inspected new workshops of Luxshare - ICT Vietnam in Bac Giang Province in an attempt to shift iPhone production to the Vietnam. Currently, Luxshare - ICT Vietnam has invested USD270 million in Bac Giang province while employing 28,000 workers. The company plans to raise its total number of employees to 50,000- 60,000 following a request from Apple.
Taiwan-based Pegatron, manufacturing partner of some of the world’s major tech firms such as Microsoft, Apple and Sony, has plans to invest USD 1 billion to build a manufacturing complex in the Nam Dinh Vu Industrial Park in the northern city of Hai Phong, according to a report from the Ministry of Planning and Investment.
Samsung Electronics will end Chinese personal computer production as it looks to shift production to Vietnam to cut costs and remain competitive in the PC business. Last year, Samsung closed its last mobile phone factory in China as production from its faculty in Huizhou switched to Vietnam, which was a move that greatly affected the local economy.
Samsung Electronics will close its sole Chinese TV factory in November and shift part of its operations to Vietnam while recategorizing its factory in Ho Chi Minh City as an export processing enterprise.
We would like to inform you about legal updates from this quarter regarding tax, HR and labor issues.
Small and medium-sized enterprises (SMEs) that make no more than VND200 billion (USD8.6 million) in revenue in 2020 will benefit from a 30% corporate income tax cut for the year, according to a Resolution adopted by the country’s lawmaking National Assembly on June 19.
According to Official Letter No. 5864/TCHQ-TXNK, dated September 4, 2020, where materials are imported by a domestic company under a toll manufacturing agreement signed with an overseas principal and such materials are sent to an EPE in Vietnam for processing, the import duty treatment is applicable to the processed goods when they are imported back by the domestic company from the EPE.
Because of the resurgence of COVID-19, Vietnam Social Security is allowing enterprises to further suspend part of their social insurance contributions (contribution to the retirement and survivorship allowance fund) until the end of December 2020. Accordingly, this suspension is applicable to enterprises involved in passenger transportation, tourism, accommodation, restaurants and/or other special industries.
On August 6, 2020, the Vietnam General Confederation of Labor issued Official Letter No. 808/TLD regarding the addition of subjects who do not have to contribute to trade union fees. Trade union members whose salary level is lower than the basic salary level shall be exempt from trade union fees. The period for exemption is from January 23, 2020 (the date of the beginning of the COVID-19 pandemic as declared under Decision No. 447/QDTTg) to December 31, 2020.
According to Official Letter No. 5575/TCHQ-GSQL, dated August 21, 2020, self-certification of origin is allowed for Vietnam’s export consignments valued at no more than EUR6,000. For export consignments valued at more than EUR6,000, exporters must have a Certificate of Origin (C/O) form EUR.1 issued by an agency or organization authorized by the Ministry of Industry and Trade (MoIT). The procedure for C/O declaration and certification in EUR.1 form is similar to that of existing C/O models.
(Latest update as of September 24, 2020, please check with your favorite sales representative if you are interested in expanding your area.)
|PHASE 1 + RBF C13||PHASE 2||PHASE 3||PHASE 4,5,6|
|Available GLA||Fully occupied||Fully occupied||4,589 sqm||29,283 sqm|
|PHASE 1||PHASE 2||PHASE 3||PHASE 4|
|Available GLA||5,575 sqm||42,156 sqm||59,832 sqm||106,916 sqm|
|Available GLA||1,443 sqm|
|PLOT 1||PLOT 2||PLOT 3|
|Available GLA||Fully occupied||Fully occupied||87,917 sqm|
|Available GLA||10,932 sqm|