Kenno Vietnam Pulse | May 2024

Vietnam's economic outlook appeared brighter in May, continuing its consistent recovery momentum since Q3 2023. Exports increased by 14% YoY in May, with a 15.2% YoY increase over the first five months (5M) of 2024. Export growth was high for electronics and computers (+33% YoY) and wooden furniture (+24% YoY). The US and EU saw the highest export growth rates, at 21% and 16% YoY, respectively. Import growth, with 90% for manufacturing export products, was 18% YoY faster than export growth, suggesting a promising export outlook. Vietnam maintained a trade surplus of $8 billion USD in the first five months of 2024. Production continued to recover, growing 6.8% YoY, with the manufacturing sector increasing by 7.3% over the same period. The PMI remained steady at 50.3 in May. FDI disbursement increased sustainably by 7.8% YoY, reaching $8.3 billion USD in 5M 2024. These positive trends in FDI disbursement, exports, and production are expected to drive further job creation and stronger domestic demand in the coming months.

On May 12th, 2024, Samsung Vietnam and the National Innovation Center (NIC) launched the Samsung Innovation Campus (SIC) 2023-2024 in Hanoi. This program aims to train 50,000-100,000 semiconductor engineers by 2030, with courses in AI, IoT, and Big Data for top Vietnamese universities. The initiative is part of Samsung’s commitment to supporting Vietnam’s high-tech industry and workforce development. Additionally, Marvell Technology, Inc. announced the opening of a new semiconductor design center in Da Nang on May 20th, 2024, further emphasizing the trend of foreign investment in Vietnam's semiconductor sector.

Samsung Vietnam and National Innovation Center at the Opening Ceremony of Samsung Innovation Campus in Hanoi.

Source: National Innovation Center

On May 16th, 2024, Danish jewelry maker Pandora broke ground on a $150 million factory in Binh Duong province. The facility, which will operate on 100% renewable energy and use only recycled silver and gold, is expected to create 7,000 jobs and produces up to 60 million pieces of jewelry per year when it opens in early 2026 . This investment supports Pandora’s sustainability goals and underscores the company's commitment to Vietnam’s growth. The new factory will be built in accordance with LEED Gold standards, contributing to Pandora's aim of halving carbon emissions across its supply chain by 2030 and achieving net zero by 2040.

Pandora's groundbreaking ceremony in Binh Duong

Source: Vietnam Investment Review

On May 19th, 2024, Korean conglomerate Hyosung announced plans to manufacture automated teller machines (ATMs) and build a large data center in Ho Chi Minh City. Hyosung, the third largest South Korean investor in Vietnam, has shifted nearly all its factories from South Korea to Vietnam. The company has invested over $4 billion in Vietnam, focusing on raw materials, chemicals, industrial power systems, and textiles. Hyosung's latest investment includes a $730-million bio-based production plant in Ba Ria-Vung Tau, showcasing its commitment to Vietnam’s economic development.

In May, Vietnam elected two new key leaders to fill two of the top four positions in the country's political system: the President and the Chairman of the National Assembly. To Lam was elected as the new President of Vietnam on May 18th, replacing Vo Van Thuong who stepped down on May 2nd. He was nominated by the Party Central Committee and brings extensive experience from his previous role as Minister of Public Security. Additionally, Tran Thanh Man was elected as the Chairman of the National Assembly on May 20th. Chairman Man has a strong background in economics and politics, having served in various high-level positions, including Vice Chairman of the National Assembly. His unanimous election by all 475 deputies highlights the confidence in his leadership and his commitment to advancing Vietnam's legislative and economic development. This leadership transition is expected to bring stability and continued progress to Vietnam's political and economic landscape.

To Lam - the new President (left), and Tran Thanh Man - the new Chairman of the National Assembly (right)

Source: Vietnam Investment Review

Laura Ranin