Cashew nut is one of the important nut species in the global market. Since 2017, Vietnam has become the world’s top cashew nut processing center and largest exporter of cashew nuts, accounting for more than 50% of the global processed cashew nut raw materials. According to CRI’s analysis, Vietnam is characterized by the tropical monsoon climate, thus having natural advantages in cashew cultivation.

In 2021, according to the planting plan of the Ministry of Agriculture and Rural Development of Vietnam, the annual planting area of cashews will be 360,000 ha, and the cashew output will reach 360,000 tons.

In 2021, Vietnam exported 579,773 million tons of cashews, up 12.6% year on year, and nearly USD3.64 billion, up 13.3% year on year. Among them, Vietnam exported 176,363 tons to the United States, with an export value of USD1.052 billion. 85,162 tons cashew nuts were exported to China, with an export value of USD614.29 million. 68,903 tons cashew nuts were exported to Netherlands, with an export value of USD373.65 million; 21,200 tons cashew nuts were exported to Germany, with an export value of USD134.68 million

According to CRI’s analysis, with the entry into force of various FTAs such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP), and the gradual control of the COVID-19 epidemic.

In 2021, Vietnam’s cashew nut industry recorded its first trade deficit in 31 years. Vietnam imported 2.87 million tons (US$4.2 billion) of raw cashews, up 98.3% and 131.5% year-on-year, respectively. According to CRI’s analysis, there are still some shortcomings in Vietnam’s cashew nut industry. For example, the cultivation of cashew nuts in Vietnam is still dominated by small-scale farmers, and has not yet formed large-scale production. And Vietnam is relatively backward in the cultivation technology, which to a certain extent limits the development of the cashew nut industry.

According to CRI’s analysis, in the global cashew nut value chain, Vietnam exports cashew nuts at about USD10 per kilogram or less, while cashew nut products are sold at up to USD20-30 per kilogram in the end market. Vietnam needs to increase the added value of cashew products and take advantage of modern processing technologies.

CRI expects that Vietnam’s cashew production and exports will continue to rise in 2022-2031, and for investors, there are many investment opportunities in Vietnam’s cashew industry, from cultivation to processing and trading.

Topics covered:

• Overview of Vietnam’s Cashew Industry
• Economic and Policy Environment of Vietnam’s Cashew Nut Industry
• What is the Impact of COVID-19 on Vietnam’s Cashew Nut Industry?
• Vietnam Cashew Nut Market Size, 2016-2021
• Forecast on Vietnam Cashew Nut Market, 2022-2031
• Analysis of Major Cashew Nut Companies in Vietnam
• Key Drivers and Market Opportunities in Vietnam’s Cashew Nut Industry
• What are the key drivers, challenges, and opportunities for the cashew nut industry in Vietnam during 2022-2031?
• What is the expected revenue of Vietnam cashew nuts market during 2022-2031?
• What are the strategies adopted by the key players in the market to increase their market share in the industry?
• Which segment of Vietnam’s cashew nuts market is expected to dominate the market in 2031?
• What are the major adverse factors facing the cashew nuts industry in Vietnam?

The post Research Report on Vietnam’s Cashew Nut Market, 2022-2031 first appeared on CRI Report.

From 2011 to 2012, the Thai government implemented the First-Time Buyer Program to encourage automobile consumption, which led to a rapid growth in automobile production and sales. However, the automobile production volume dropped by 25.77% in 2014 after the program expired. Despite a steady growth, it failed to recover to the 2.53 million units in 2013. The sales declined from 2013 to 2016, and rebounded to 873,000 units till 2017. In 2020, due to the impact of COVID-19, annual sales fell 21.4% to 792,146 units, and continued to fall to 762,217 units in 2021. Thailand’s automotive industry is export-oriented. In the past five years, over 1 million automobiles were exported to ASEAN countries, Australia, the Middle East and Europe every year. The import volume is less. However, the import tariff on automobiles is expected to be lowered as Thailand signs more free trade agreements in recent years.

Over the years, the Thai government has introduced a series of policies to attract foreign investment. The automobile manufacturers in Thailand are mainly Japanese and US companies. The massive competitors and fierce competition make the market perfectly competitive. Compared with other Southeast Asian countries, Thailand has a developed auto parts industry and a large number of auto parts suppliers. However, it still needs to import key auto parts. There are many automobile brands in Thailand, including Toyota, Mitsubishi, Isuzu, Ford, BMW, Chevrolet, etc. which have produced a strong scale effect after years of development and production expansion. With the popularization of new energy vehicles, the Thai government also drew up a roadmap to give tax breaks and other preferential policies to new energy vehicle enterprises.

According to CRI, Thailand’s automotive industry has a good prospect. Thailand’s Eastern Economic Corridor initiative proposes to develop 10 target industries including the automotive industry in the eastern region. And the free trade agreements with Australia, China, India, New Zealand and other ASEAN countries will facilitate the development of overseas markets for Thailand’s automotive industry. The reduction of import tariffs will also provide a price advantage for automobiles. New energy vehicles will grow rapidly in Thailand with the expiration of the lock-up period of the First-Time Buyer Program, more automobiles beyond the warranty period, and the government’s efforts to develop new energy vehicles. It is expected that in the next few years, the increase in residents’ income will promote automobile consumption in Thailand. And the exemption of import tariffs on automobiles in ASEAN countries will boost Thailand’s automobile exports.

CRI expects that automobile production will continue to grow in Thailand from 2022 to 2031.

Topics Covered:

• Development environment of Thailand’s automobile industry
• Analysis on supply of and demand for automobiles in Thailand
• Competition in Thailand’s automobile industry
• Major automobile manufacturers in Thailand
• Analysis on production costs and prices of automobiles in Thailand
• Driving forces and market opportunities for Thailand’s automobile industry from 2022 to 2022
• Prospect of Thailand’s automobile industry from 2022 to 2031

The post Research Report on Thailand’s Automobile Industry, 2022-2031 first appeared on CRI Report.

According to CRI’s analysis, there are more than 200 dairy producers in Vietnam by the end of 2021. The dairy market in Vietnam is mainly dominated by major players such as Vinamilk, Nestle Vietnam, Nutifood, Frieslandcampina and TH Group. The number of cows in Vietnam will increase from 330,000 in 2019 to 700,000 in 2030.

Vietnam’s fresh milk production reached 1.2 billion liters in 2021 and will rise to 2 billion liters by 2030. Despite the rise in production, domestic fresh milk production can only meet 40-50% of domestic demand, with the rest relying mainly on imports.

In addition to relying on imported fresh milk, Vietnam also imports cows, animal nutrition products and production materials of animal feed. To remain competitive, local companies are looking for quality management and food safety solutions, while larger companies are investing in Industrial 4.0 technologies and R&D.

Milk consumption per capita in Vietnam was only 28 liters in 2021, lower than Thailand (35 liters) and Singapore (45 liters), with huge potential for growth. CRI expects milk consumption per capita in Vietnam to reach 40 liters by 2030. Consumption is gradually increasing, driven by a large, young and fast-growing population (around 100 million people) and the rising purchasing power of the country’s middle class.

Dairy companies are also seeing increasing opportunities to serve Vietnam’s elderly population (65+), which is expected to reach 14% in 2040, up from 7% in 2020.

In addition, Vietnam’s dairy exports are growing rapidly. Vietnam’s dairy exports value exceeds USD300 million. Vietnam’s dairy products are exported to more than 40 countries. According to CRI’s analysis, China has granted transaction codes to eight Vietnam’s dairy companies (20 factories), allowing them to export their products to China.

In terms of product segmentation, milk powder and liquid milk total nearly three-quarters of Vietnam’s dairy market size. Most of the milk powder imported into Vietnam is processed into remade milk. Among liquid milk, the preferred form is UHT milk because of its longer shelf life, especially in rural areas where cold chain facilities are not well developed.

According to CRI’s analysis, the fastest growing segment of Vietnam’s dairy market in terms of sales volume in 2021 is milk powder, with production volume reaching about 152,000 tons, up about 13% year-on-year, followed by yogurt, liquid milk, etc.

According to CRI’s analysis, the demand for cheese and butter is rising rapidly due to the growing influence of Western food in Vietnam, especially among the younger generation in urban areas.

CRI expects the demand for dairy products to rise in Vietnam’s market from 2022-2031, with more market opportunities for investors. Organic dairy products, natural fresh milk products, and dairy-containing health food products in Vietnam are expected to maintain a fast growth rate in the coming years.

Topics covered:

• Overview of Vietnam’s Dairy Industry
• Economic and Policy Environment of Vietnam’s Dairy Industry
• What is the impact of COVID-19 on Vietnam’s dairy industry?
• Vietnam’s Dairy Market Size, 2016-2021
• Forecast on Vietnam’s Dairy Market, 2022-2031
• Import and Export Analysis of Dairy Products in Vietnam
• Analysis of Major Dairy Companies in Vietnam
• Key drivers and Market Opportunities in Vietnam’s Dairy Industry
• What are the key drivers, challenges and opportunities for Vietnam’s dairy industry during 2022-2031?
• What is the expected revenue of Vietnam’s dairy industry during 2022-2031?
• Which segment of Vietnam’s dairy industry market is expected to dominate the market in 2031?
• What are the major adverse factors facing Vietnam’s dairy industry?

The post Research Report on Vietnam’s Dairy Industry 2022-2031 first appeared on CRI Report.

Vietnam has a young population structure, abundant labor force and low cost, which provides favorable conditions for the development of home appliance industry and attracts many foreign home appliance companies to settle in Vietnam, such as Midea, Haier, Toshiba, Panasonic, Sharp, Gree, Nepal, Samsung, LG, AQUA and other home appliance companies have invested and built factories in Vietnam.

In terms of economic growth, Vietnam’s economy has maintained rapid growth for many years since the 1986 reform. 2020 Vietnam’s GDP grew by 2.91%. 2021 Vietnam’s GDP rose to 362.619 billion USD, a real growth of 2.58%. Despite the decline in growth rate due to the New Crown Pneumonia epidemic, it is still one of the countries in the world that have achieved positive economic growth.

Foreign investment is also increasingly favorable to Vietnam. The processing and manufacturing industry has become the most attractive area for foreign investment. This indicates that foreign investors have placed high trust in Vietnam in the global supply chain. 2021 yearly Vietnam attracted a total of $30 billion in foreign investment, up 2% year-on-year.

According to CRI’s analysis, with the rapid growth of Vietnam’s economy, the demand for home appliances in Vietnam’s domestic market has also increased. Vietnam has a low penetration rate of domestic home appliances. Since the opening up of the country, its national economy has developed rapidly and the per capita income level has been increasing, making it one of the world’s most promising home appliance consumer markets.

Vietnam residents have a strong consumer consciousness. In addition to daily necessities, the products that ordinary residents spend more on are mainly motorcycles, home appliances and consumer electronics.

Currently, Vietnam’s major advantage in attracting foreign investment is the demographic dividend and population cost. The median age of Vietnam’s population is about 30 years old, and the population under 35 years old accounts for about 55.6% of the total population.

According to CRI’s analysis, the current minimum wage level in Vietnam is lower than Thailand and Indonesia, and is at a lower level among Southeast Asian countries. Apart from labor costs, Vietnam is one of the lowest countries in its neighborhood in terms of cost of doing business, second only to Cambodia and Myanmar.

At the same time, Vietnam actively pursues an all-round diplomatic course, developing friendly cooperation with ASEAN countries, while establishing ties with large economies such as China, the US, Russia, Japan and the EU, as well as the World Bank and the Asian Development Bank, and participating in multilateral trade.

With the entry into force of the Regional Comprehensive Economic Partnership (RCEP), investments in Vietnam from South Korea, Japan and Singapore have maintained a relatively rapid growth.

Vietnam has signed several new free trade agreements, especially the Vietnam-EU Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).

So far, Vietnam has maintained economic and trade relations with 220 countries and regions and signed more than 80 double taxation avoidance agreements with foreign countries, which helps Vietnam integrate into the global economy, improve the business environment and effectively attract Foreign direct investment.

To increase the attractiveness of foreign investment, the Vietnamese government has introduced a series of tax incentives, including but not limited to preferential taxes for domestic companies, such as lower corporate income tax rates, exemption or reduction of import taxes on fixed assets and raw materials, exemption or reduction of land taxes, etc.

According to CRI, Vietnam’s home appliance market is expected to continue to grow from 2022-2031. On the one hand, the export volume of Vietnamese home appliances will continue to rise. Meanwhile, with the development of economy and population growth, the demand for home appliances in Vietnam’s domestic market is also on the rise.

Topics covered:

• Overview of Vietnam’s Home appliance Industry
• Economic and Policy Environment of Vietnam’s Home appliance Industry
• What is the impact of COVID-19 on the home appliance industry in Vietnam?
• Vietnam’s Home appliance Market Size, 2016-2021
• Import and Export Analysis of Home appliance in Vietnam
• Analysis of Vietnam’s Major Home appliance Plantation and Processing Enterprises
• Key Drivers and Market Opportunities in Vietnam’s Home appliance Industry
• What are the key drivers, challenges, and opportunities for Vietnam’s Home appliance industry?
• during 2022-2031?
• What is the expected revenue of Vietnam’s Home appliance market during 2022-2031?
• Which segment of Vietnam’s Home appliance market is expected to dominate the market in 2031?
• What are the major adverse factors facing the home appliance industry in Vietnam?
• Forecast on Vietnam’s Home appliance Market, 2022-2031

The post Research Report on Vietnam Home Appliance Industry, 2022-2031 first appeared on CRI Report.

As one of the world’s leading footwear manufacturers, Vietnam ranks second in the world in terms of leather and footwear exports after China. Vietnam exports more than 1 billion pairs of footwear of all kinds of to hundreds of countries around the world every year. In particular, Vietnam’s footwear exports to the EU account for the largest proportion of the total exports. By the end of 2021, there are about 2,200 enterprises producing footwear in Vietnam, mainly concentrated in the area around Ho Chi Minh City.

According to CRI’s analysis, two giant brands in the global footwear industry, Nike and Adidas, have chosen Vietnam as their main production base. Part of the global footwear chain is gradually shifting from China to Vietnam due to its lower costs. Nike has more than 100 suppliers in Vietnam, with 96 factories concentrated in the southern region.

Nike’s arch rival, Adidas, has also chosen Vietnam as its main production area. In its annual report (2020), Adidas suggested that in 2019, 98% of Adidas’ footwear products were produced in the Asian region. Vietnam has become the largest sourcing country for Adidas, accounting for about 40% of its total footwear production in 2021.

According to CRI’s analysis, due to the impact of COVID-19, Vietnam’s footwear exports was USD16.75 billion in 2020, decreased 8.6% YOY. In 2021, Vietnam’s footwear products were exported to more than 100 countries, with about 17.8 billion USD in footwear production. In 2021, Vietnam’s footwear exports have seen a resurgence in growth.

There is a more important basis for the bullishness of Vietnam’s footwear exports, that is, Vietnam has signed trade agreements helpful for exports with Europe and the United States. For example, in the EU-Vietnam Free Trade Agreement (EVFTA), Vietnam’s footwear exports to the EU amount to about 40%. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has helped Vietnam’s footwear exports to Canada and Mexico soar.

Vietnam has signed many agreements with developed countries that are conducive to promoting exports, but the strength of Vietnam’s local footwear enterprises remains weak and the major market share of Vietnam’s footwear industry is occupied by foreign companies. According to CRI, Vietnam’s footwear production and exports are expected to continue to grow in 2022-2031. For companies related to the international footwear industry chain, there are many investment opportunities in Vietnam’s market in the coming years.

Topics covered:

• Overview of Vietnam’s Footwear Industry
• Economic and Policy Environment of Vietnam’s Footwear Industry
• What is the impact of COVID-19 on the footwear manufacturing industry in Vietnam?
• Vietnam Footwear Market Size, 2016-2021
• Forecast on Vietnam’s Footwear Market, 2022-2031
• Analysis of Major Footwear Manufacturing Companies in Vietnam
• Key Drivers and Market Opportunities in Vietnam Footwear Industry
• What are the key drivers, challenges and opportunities for the footwear industry in Vietnam during 2022-2031?
• What is the expected revenue of Vietnam’s footwear market during 2022-2031?
• What are the strategies adopted by the key players in the market to increase their market share in the industry?
• Which segment of Vietnam’s footwear market is expected to dominate the market in 2031?
• What are the major adverse factors facing the footwear industry in Vietnam?

The post Research Report on Footwear Industry in Vietnam, 2022-2031 first appeared on CRI Report.

According to CRI’s analysis, the fisheries sector is an important sector of Vietnam’s economy.

Vietnam is located in the southeast of the Asian continent on the eastern coast of the Indochina Peninsula, from north to south than the Gulf of Tonkin, the South China Sea and the Gulf of Siam and other waters, is a tropical country, the geographical location and natural conditions are very conducive to fisheries production. Currently, although the domestic demand for seafood products is increasing due to the increase in disposable income, most of the fishery products are used for export.

According to CRI’s analysis, the total production of China, Thailand and Vietnam accounts for more than 70% of the world’s total farmed shrimp production. Vietnam exports seafood products to 164 markets and the industry supports more than 4.5 million jobs.

Vietnam is a very low-cost place to operate, with low labor costs and energy costs. In 2021, the minimum wage in Vietnam’s Region 1 is VND4.68 million per month, or USD200, which is much lower than the minimum salary level in China and some South-eastern Asian countries. As a result, Vietnam has more competitive operating costs compared to other countries in the region and has become the most attractive destination for multinational companies.

Vietnam’s total seafood product production in 2020 reached 8.4 million tons, up 1.8% from 2019, including 3.85 million tons caught, up 2.1%. In 2021, Vietnam had 4.75 million tons seafood products, up 4.17% year-on-year. In 2021, Vietnam seafood product export turnover was 8.9 billion USD, up 6% year-on-year, reaching a new record value.

Therefore, although the growth of all indicators of Vietnamese seafood products in 2020 is not high, the Vietnamese fisheries industry in 2020-2021 is considered a success against the background of difficult production and operation due to COVID-19.

The main export markets for Vietnamese seafood include the United States, the European Union, Russia, Japan, China and South Korea. The major products that constitute Vietnam’s seafood exports include shrimp, striped catfish, balsa fish, and hard clams.

According to CRI’s analysis, South American white shrimp accounts for about 90 percent of production, while black tiger shrimp accounts for the remaining 10 percent of the country’s shrimp production. Even taking into account the many obstacles posed by Covid-19, Vietnam’s shrimp exports will still be US$3.85 billion in 2020, up 15% year-over-year from 2019, and US$3.9 billion in shrimp exports in 2021.

The Ministry of Industry and Trade General Report recorded a sharp increase in the number of Vietnamese seafood exports to the EU market after the EVFTA came into effect. Among them, before August 1, 2020, the number of enterprises involved in exporting seafood to the EU was 370, of which, the number of enterprises involved in exporting seafood to the EU was less than 200 per month.

However, since then, the number of enterprises involved in exporting seafood to the EU has increased to more than 200 per month. According to preliminary calculations, there are 409 Vietnamese enterprises exporting seafood to the EU in 2020, and most of these enterprises have a good reputation and good supply capacity.

According to CRI’s analysis, Vietnam exports a wide range of seafood to the EU, with shrimp products worth more than US$500 million in 2021, which create the largest foreign exchange value; tuna species worth US$128 million; catfish and yellowtail catfish worth US$123 million. Export data show that shrimp, clams, tuna and squid were the items that benefited the most from EVFTA tariff preferences when the EVFTA came into effect. In the ASEAN region, Vietnam is the largest supply market to the EU, and in Asia, it is second only to China.

Therefore, the removal of tariffs on Vietnamese seafood products exported to the EU will create an important advantage for Vietnam to compete with other competitors in the EU market. EVFTA is expected to help Vietnam’s seafood export market size grow by about 2% per year during 2020-2040.

On the other hand, in order to enjoy tariff and non-tariff preferences in Vietnam-EU trade, Vietnamese products must comply with the rules of origin, i.e., the raw materials for production must be grown and harvested in Vietnam.

According to CRI’s analysis, since domestic raw materials only provide about 40-45% of the processing capacity; up to billions of dollars of seafood raw materials are imported annually, and most domestic suppliers of raw materials are small, scattered, and the source of seafood products harvested is unknown, which makes quality control inherently difficult and, therefore, more difficult to meet the above requirements.

CRI expects Vietnam’s fish exports to continue to rise in both volume and value during the 2022-2031 period. Meanwhile, with the rising population and rising income levels, the demand for fish products in Vietnam’s domestic market will also continue to rise.

Topics covered:

• Overview of Vietnam’s Fisheries Industry
• Economic and Policy Environment of Vietnam’s Fisheries Industry
• What is the impact of COVID-19 on the fisheries manufacturing industry in Vietnam?
• Vietnam Fisheries Market Size, 2016-2021
• Forecast on Vietnam’s Fisheries Market, 2022-2031
• Analysis of Major Fisheries Manufacturing Companies in Vietnam
• Key Drivers and Market Opportunities in Vietnam Fisheries Industry
• What are the key drivers, challenges and opportunities for the fisheries industry in Vietnam during 2022-2031?
• What is the expected revenue of Vietnam’s fisheries market during 2022-2031?
• What are the strategies adopted by the key players in the market to increase their market share in the industry?
• Which segment of Vietnam’s fisheries market is expected to dominate the market in 2031?
• What are the major adverse factors facing the fisheries industry in Vietnam?

The post Research Report on Vietnam Fisheries industry 2022-2031 first appeared on CRI Report.

Topics covered:

• Vietnam Tire Industry Overview
• The economic environment and policy environment of Vietnam’s tire industry?
• What is the impact of COVID-19 on the Vietnamese tire industry?
• What is the market size of Vietnam Tire Industry 2016-2021?
• What will be the market size of Vietnam tire industry in 2022-2031?
• What is the import and export volume of tires in Vietnam?
• What is Vietnam’s major trading partners in the tire sector?
• Major tire manufacturing companies in Vietnam?
• What are the key drivers, challenges and opportunities for the Vietnam tire industry in 2022-2031?
• What is the expected revenue of the tire industry in Vietnam from 2022-2031?
• Which segment of the Vietnam Tire Industry market is expected to dominate the market in 2031?
• What are the main unfavorable factors facing the Vietnamese tire industry?

The demand for the use of automotive tires can be divided into OEM demand from the manufacture of the entire vehicle and replacement demand from the automotive aftermarket. In developed countries, due to the high saturation of the new car market, it is difficult to increase the sales volume, so the tire market growth driver mainly comes from the aftermarket demand.

Market Overview

According to CRI analysis, global vehicle production drops below 60 million units in 2021, equivalent to pre-2010 levels, due to a shortage of automotive chips caused by COVID -19. Global car ownership is about 1.5 billion units by the end of 2021. The automotive aftermarket has become a major part of the global tire market demand. Despite the global automotive market downturn, the global tire market continues to grow.

In recent years, Vietnam’s auto industry has been developing rapidly. 2021 Vietnam’s auto imports will be about 136,000 units, up 24% year on year. 2021 Vietnam’s local production will be about 168,000 units, down about 10% year on year. 2021 Vietnam’s auto sales will be about 304,100 units, up about 3% year on year.

2020 Vietnam’s auto ownership will be 23 units per 1,000 people, far below the global average. With the development of Vietnam’s economy, the automotive and auto parts market has great potential for development.

Vietnam has about 830 large and small tire companies, including bicycle tires, motorcycle tires, car tires and truck tires. Bridgestone, Michelin, Yokohama, Kumho, CHENG SHIN, KENDA, Sailun, Guizhou Tire, Jinyu, Goodyear and other global famous tire manufacturers have already established factories in Vietnam, some of them have set up multiple factories.

According to CRI’s research, some Chinese tire manufacturers, such as Sailun, have plans to expand their tire production capacity in Vietnam. Chinese tire companies have built a semi-steel tire production capacity of 11 million tons/year in Vietnam, and a full-steel tire production capacity of 7.2 million tons/year.

Vietnam exports tires to more than 100 countries, with the highest volume of automotive tires accounting for more than 60% of exports. For car tyres, 80-90% are exported. Vietnam’s tire exports have been growing rapidly, with growth in exports to the US being the key driver. In 2021, Vietnam exported 14.06 million passenger car tires to the US, up 6.8% year on year.

2021 Vietnam has more than 200 tire exporters. Among the top ten tire exporters in Vietnam, there are only two Vietnamese companies, namely Southern Rubber JSC (Casumina) and Da Nang Rubber JSC (DRC), while the rest are foreign companies.

According to CRI’s analysis, Vietnam has an abundant labor force and low labor costs. Areas with the highest minimum wage levels in Vietnam include Hanoi and Ho Chi Minh City, with a minimum wage of VND4.68 million (about $204) per month in 2021.

In the less developed areas of Vietnam, the minimum monthly wage is only VND3.25 million (about $142). At the end of 2021, Vietnam’s population reaches about 103 million people, with 45.7% of the working age population between 25-54 years old, Vietnam has an abundant labor force and consumer market.

In addition, Vietnam has certain advantages in the cost of raw materials such as natural rubber, electricity prices, land costs and so on. According to CRI analysis, Vietnam tire manufacturing industry has the natural advantage of raw materials. Vietnam ranks 3rd in the world in rubber production, with an annual output of 1.2-2 million tons of natural rubber. Vietnam’s energy and land prices are also at a low level in East and Southeast Asia.

In terms of policy support, eligible foreign-funded enterprises in Vietnam enjoy tax incentives: the corporate income tax rate is 10% for 15 years, and they are exempt from corporate income tax for 4 years from the date of generating taxable income, and the corporate income tax rate is reduced by 5% for the next 9 years. This translates into a net profit margin of 2.5%-3.5%.

On the export side, Vietnam also has a number of concessions. Since the outbreak of the U.S.-China trade war, Chinese tires exported to the United States are currently subject to a 25% surcharge, as well as a dumping duty rate of up to 87.99%. Vietnam’s exports to the United States to enjoy 4% tariff treatment.

2019-2021 the United States imports the largest number of tires is a country and region, Vietnam ranked in the forefront. The EU has signed the Vietnam EU Free Trade Agreement with Vietnam, which will take effect from August 1, 2020. The EU gives Vietnam the highest level of committed free trade partner treatment, and Vietnam and 27 EU countries enjoy mutual tariff preferences.

The low cost of labor as well as other factors of production and favorable export policies are keeping Vietnam’s tire industry under the continuous attention of global investors.

CRI expects Vietnam’s tire production and exports to continue to rise in the years 2022-2031.

The post Research Report on Vietnam Automotive Tire Industry 2022-2031 first appeared on CRI Report.

Vietnam has average strength on the power generation side, but is growing rapidly. According to IEV’s March 2021 report, the total installed capacity of Vietnam’s power system will be about 56 GW by 2020. Vietnam’s power mix has the largest share of coal-fired power and hydropower at 34% and 30% respectively, gas turbine and oil-fired thermoelectric power at 15%, solar (including rooftop solar) at 24%, wind power at 1%, biomass power at about 1%, and hydropower imported from Laos at 1%. The total number of operating power plants in Vietnam is about 162 (excluding small hydropower plants and renewable energy). the maximum load capacity of the power system in 2020 is about 38.7 GW, and the crude reserve ratio of the power system (excluding wind and solar) is 34.3%. According to the Vietnamese government, the installed capacity is expected to reach 125-130 GW by 2030, doubling the installed capacity within 10 years. Vietnam’s power generation CAGR is expected to reach 5.7% from 2021 to 2030.

Retail electricity tariffs in Vietnam are approved by the government’s Prime Minister and have a uniform tariff policy throughout the country, with tariff levels that are low compared to other countries in the region. The higher electricity tariffs for industrial, commercial and foreign consumers subsidize the electricity bills of urban and rural residents.

To attract more private sector investment in IPP projects, the Ministry of Industry and Trade and EVN (Vietnam Electricity) are pushing the government to gradually deregulate electricity prices, according to CRI analysis. Under current regulations, EVN can raise or lower electricity prices every six months without government approval, within a 10 percent range whenever the cost of power generation (fuel prices, foreign exchange rates, changes in generation mix, etc.) rises by 3 percent, and government approval is required for price changes above 10 percent. The current average price of electricity in Vietnam is VND1,533-2,580 (6.3 to 10.75 cents) per kWh, depending on usage.

According to CRI’s analysis, Vietnam has experienced rapid economic development in recent years, with high potential for future economic growth. Since early 2022, Vietnam has gradually gotten rid of the adverse effects of COVID-19, which is conducive to further inflow of foreign capital and will drive electricity demand to maintain high growth. It is expected that in the next few years, Vietnam will gradually reduce the proportion of thermal power generation while Vietnam will work to accelerate the development of renewable energy (hydropower, wind, solar, biomass, etc.).

CRI recommends that investors actively explore the possibility of investing in wind and solar power as well as developing pumped storage hydropower plants. On the other hand, they can continue to install clean and efficient thermal power plants in some regions, and prioritize the development of pithead coal power using clean coal power technology in the power shortage and coal-producing areas of northwest Vietnam.

Topics covered:

• Overview of Vietnam’s power sector
• The economic and policy environment of Vietnam’s power sector
• What is the impact of COVID-19 on the power sector in Vietnam?
• Vietnam Electricity Industry Market Size 2017-2021
• Vietnam Electricity Industry Market Forecast 2022-2031
• Vietnam Electricity Import and Export Analysis
• Analysis of major power companies in Vietnam
• Key Drivers and Market Opportunities in Vietnam’s Power Sector
• What are the key drivers, challenges and opportunities for Vietnam’s power sector during the forecast period 2022-2031?
• What is the expected revenue of Vietnam’s power sector over the forecast period 2022-2031?
• Which segment of the Vietnam power industry market is expected to dominate the market in 2031?
• What are the main negative factors facing the power sector in Vietnam?

The post Research Report on Vietnam Electricity Industry 2022-2031 first appeared on CRI Report.

Vietnam is rich in rice, tropical crops and aquatic products and is a major exporter of agricultural products in Southeast Asia, and the third largest exporter of rice in the world.

According to CRI’s analysis, Vietnam’s rice export value reached USD3.133 billion in 2021, and rice has become a bright spot in Vietnam’s agricultural products exports. This is a remarkable achievement of the rice industry for many years, especially in the context of natural disasters and COVID-19 epidemic that hit Vietnam’s agriculture in 2020 in terms of production and export.

In 2021, Vietnam’s total rice production was about 44 million tons, meeting the demand for domestic consumption, processing, poultry and livestock feed, and export, etc. In 2020, its rice exports grew against the backdrop of a decline in exports of many of Vietnam’s long-dominant agricultural products due to the COVID-19 epidemic. In 2021, rice exports increased from 5.28 million tons to 6.57 million tons.

In terms of price, the average price of Vietnam’s rice exports in 2021 dropped 3.83 percent year on year to $477 per ton. At the beginning of 2021, Vietnamese rice prices still maintained the highest position. On March 25th, Vietnamese rice with a 5% breakage rate rose to $515-520 per ton, Thai rice of the same variety to $500-518 per ton and Indian rice to $398-403. In January 2021, Vietnam’s rice export price reached $551.7 per ton.

Since the EU-Vietnam Free Trade Agreement (EVFTA) came into force on August 1, 2020, the rice exports have rapidly seen an upturn. According to EVFTA, the EU provides Vietnam with 80,000 tons of rice for export at 0% tax rate annually (including 30,000 tons of milled rice, 20,000 tons of unmilled rice and 30,000 tons of aromatic rice).

For rice from Vietnam, the EU will reduce the import duty rate to zero in the coming years. Taking advantage of the above, from September 2020, Vietnam started to sell rice to the EU at a much higher price than before. Specifically, before EVFTA came into effect, the prices of ST20 rice and Jasmine rice exported to the EU were USD800 and USD520 per ton, respectively, while now the prices are over USD1,000 and USD600, respectively.

According to CRI’s analysis, there are three reasons for the rise in Vietnam’s rice prices. Firstly, the government issued an agricultural restructuring proposal, by which the rice structure has been strongly adjusted, changing the rice cultivation protocols, i.e., paying more attention to improving rice quality rather than increasing production.

Around 2015, Vietnam’s quality rice seeds accounted for only 35%-40% of the total seeds, while in 2020 the Chart reached 75%-80%, and even in some places, the usage rate of quality rice seeds is as high as 90%.

Secondly, Vietnam has signed many FTAs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Europe-Vietnam Free Trade Agreement (EVFTA) with many countries, which creates conditions for a breakthrough in Vietnam’s rice exports. Third, many industries were affected by the COVID-19 epidemic in 2020, but the market demand for food has not decreased.

According to CRI’s analysis, the Jiulong River Plain is the center of rice cultivation in Vietnam, contributing 50% of rice production and 95% of rice exports to Vietnam’s agriculture.

In 2020, the Jiulong River Plain cultivated more than 1.5 million hectares of rice per season, with an average yield of 6 tons per hectare and an annual rice production of more than 24 million tons. Furthermore, its winter-spring rice production is expected to reach 10 million tons from 2020 to 2021.

CRI expects Vietnam’s rice exports to continue to rise in both volume and value in 2022-2031.

Topics covered:

• Overview of Vietnam’s Rice Industry
• Economic and Policy Environment of Vietnam’s Rice Industry
• What is the Impact of COVID-19 on Vietnam’s Rice Industry?
• Imports volumes and values of Vietnam’s Rice, 2016-2021
• Forecast on Imports volumes and values of Vietnam’s Rice, 2022-2031
• Analysis of Major Rice Companies in Vietnam
• Key Drivers and Market Opportunities in Vietnam’s Rice Industry
• What are the key drivers, challenges, and opportunities for the rice industry in Vietnam during 2022-2031?
• What is the expected revenue of Vietnam rice market during 2022-2031?
• What are the strategies adopted by the key players in the market to increase their market share in the industry?
• Which segment of Vietnam’s rice market is expected to dominate the market in 2031?
• What are the major adverse factors facing the rice industry in Vietnam?

The post Research Report on Vietnam Rice Industry 2022-2031 first appeared on CRI Report.

Currently, Vietnam’s wood products are more competitive due to lower labor costs, lower taxes, and certain preferential tax rates when exporting, etc.

Despite COVID-19, Vietnam remains the world’s second largest furniture exporter (after China) and surpassed China as the largest furniture exporter to the U.S. In 2021, Vietnam exported $9.3 billion of wooden furniture to the U.S., up 22% year-over-year.

Despite the weak performance of Vietnam’s major export commodities in 2021, the volume of wood and wood products increased significantly year-on-year. During this period, the US, Japan, China, the EU and South Korea accounted for 90% of Vietnam’s total forestry exports, while the EU-Vietnam Free Trade Agreement (EVFTA) comes into effect in August 2020, paving the way for Vietnam’s wood exports and further penetration of products into the European market, according to Wonjer Consulting’s analysis.

In 2021, Vietnam’s exports of wood products and furniture will be approximately US$14.5 billion, up 17.2% from 2020. 2021, Vietnam will export wood products and furniture to a total of 40 countries and regions. The top 10 major destinations by export value are the United States (US$8.77 billion), China (US$1.5 billion), Japan (US$1.44 billion), South Korea (US$890 million), United Kingdom (US$270 million), etc.

CRI expects Vietnam’s furniture industry to continue to grow and export value to rise from 2022-2031 as COVID-19 is effectively controlled. For global investors, there are many investment opportunities in Vietnam’s furniture industry.

Contents covered:

Overview of Vietnam’s wooden furniture industry

Economic environment and policy environment for wooden furniture in Vietnam

What is the impact of COVID-19 on the wooden furniture industry in Vietnam?

Vietnam Wooden Furniture Market Size 2016-2021

Vietnam Wooden Furniture Market Forecast 2022-2031

Import and Export Analysis of Wooden Furniture in Vietnam

Analysis of Major Vietnam Wooden Furniture Manufacturers

Key Drivers and Market Opportunities in Vietnam Wooden Furniture Industry

What are the key drivers, challenges and opportunities for the wooden furniture industry in Vietnam during the forecast period 2022-2031?

What is the expected revenue of Vietnam wooden furniture market during the forecast period 2022-2031?

Which segment of the Vietnam Wooden Furniture market is expected to dominate the market in 2031?

What are the major adverse factors facing the wooden furniture industry in Vietnam?

The post Research Report on Vietnam Wooden Furniture Industry 2022-2031 first appeared on CRI Report.