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Vietnam To Remove Import Tax For Auto Materials

Vietnam To Remove Import Tax For Auto Materials

Vietnam To Remove Import Tax For Auto Materials Ministry of Finance (MoF) plans to eliminate the import tax for auto parts and accessories, which are not available domestically, to support the development of the local automotive industry. The tax cut was part of the Government’s revised decree on the schedule for preferential import tariffs, flat taxes, compound tariffs, and out-of-quota import tariffs.

Furthermore, MoF will develop preferential import tax policies for raw materials for automotive manufacturing and assembly from 2019 to 2023.

Removal of the import tariff for auto parts could help local companies reduce operation costs and improve competitiveness.

By 2030, Vietnamese automobile market will be fully open to major automobile production centres around the world including Japan, Mexico and the EU.



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Standardisation Of Mould Bases

Standardisation of Mould Bases

There are plenty of potential benefits in making good use of standardisation concepts when sourcing a mould base. Article by Lung Kee Group (LKM).

Injection moulding is one of the key processes in today’s manufacturing industry, enabling manufacturers to achieve economy of scale in production of high-volume plastic or metal parts. The quality of the mould, usually defined by its precision and overall reliability, plays a critical role in determining the success of the final product.

Basic Structure

In very simple terms, a mould base is a semi-finished mould. The basic structure of a mould base consists of several drilled or machined mould plates assembled together with mould components. Modern mould makers tend to purchase mould bases from specialist mould base suppliers, in order to reduce overall manufacturing time and the costs associated with machinery and raw material investments. Perhaps most importantly, using a mould base enables the mould maker to focus on the high value-adding portions of the mould manufacturing process, such as design, polishing and final production tests.

Just like many industrial processes, there are plenty of potential benefits in making good use of standardisation concepts when sourcing a mould base. The most obvious one is cost, as standard mould bases can be ordered from catalogue, offering good price transparency. The leading suppliers in Japan, Europe and Asia all have highly engineered production lines to achieve a high level of machining precision on a consistent basis—so, by making use of their standard products, mould makers can also enjoy the economy of scale in terms of competitive pricing. Standardisation also helps mould makers’ internal workflow by speeding up the design process. In fact, many CAD packages contain libraries of common mould base standards.

Defining Qualities

A good standard mould base has three defining qualities: reliable material, reliable precision, and reliable availability. The importance of raw materials should not be underestimated, as moulds made with poor materials risk plate deformation or even fracture due to metal fatigue. Reliable precision is quite often easier said than done, as the quality from small scale manufacturer tends to highly depend on individual workmanship.

And of course, good quality products mean nothing if one cannot buy them easily. Leading mould base suppliers tend to have superior financial strength to invest in good material procurement capabilities, strong CNC machine portfolio and large inventory, and above all, they tend to have a commitment to high quality.

LKM Discusses Benefits of Standard Mould Bases for Vietnam Manufacturers

Established in 1975, Lung Kee Group (LKM) is one of the leading mould base manufacturers worldwide. The company is headquartered in Hong Kong, with product lines ranging from standard and custom-made mould bases, to precision machining and mould components. LKM is also a distributor of quality tool steel brands such as Japanese Daido, Assab Uddeholm, Arcelormittal, Bao Steel, and its own brand ‘LKM Special Steel’.

For the past 40 years, LKM is instrumental in the growth of the mould making industry in Asia. Through commitments to quality and integrity, and a relentless drive to excellence, LKM has developed from its modest beginning into an industry leading powerhouse in mould base manufacturing. In fact, LKM was the first Hong Kong company to introduce CNC machining centres for mould base manufacturing. LKM’s reputation as an industry leader in the mould base industry was further solidified through its listing on the Hong Kong Stock Exchange in 1993.

At present, LKM manufactures over 55,000 complete sets of mould bases per month. In term of custom-made mould base, the company has world-class machining capacity, powered by a team of engineers and machine operators with over 30 years of combined experience in making complex custom-made mould base for the automotive industry and precision machinery.

In an interview with Asia Pacific Metalworking Equipment News (APMEN), Cyrus Lau, assistant manager of Lung Kee Metal Japan Co. Ltd (HCMC Office)—LKM’s Vietnam office—talks about Vietnam’s mould & die industry and what’s driving growth in the market.

Q: How would you describe Vietnam’s mould and die industry?

Cyrus Lau: Vietnam is one of the biggest centres of manufacturing industry in Southeast Asia. Its mould & die market is comprehensive, ranging from sheet metal dies, die casting dies, and forging dies, to jigs, fixtures, gauges, and more. Key factors driving the market include the growing support from Japanese moulding companies. Overall, there is a large number of local manufacturers, suppliers, and distributors operating in Vietnam’s mould and die industry.

Q: How does LKM position itself in the Vietnam mould & die market?

CL: We are a mould base manufacturer and machinery specialist. We don’t think any company in our industry can claim to produce over 100 tonnes of metal chips like we do! But most importantly, our LKM standard is known to be very reliable, and is one of the most popular mould base brand in the world. When customers buy LKM, they know they get good and reliable quality. We have a large number of Japan-made machining centres, and we can cut over 100 tons of steel materials a day. In addition, we work with customers and provide them with materials and processing advice.

Q: How are you helping your customers address their manufacturing challenges?

CL: For Vietnamese mould makers, reliable quality and speed are very important—and the easiest way to improve this is by adopting standardisation in mould bases. This will improve lead time, quality, and make mould designs easier. Of course, standard products also tend to be cost efficient, which is clearly beneficial for mould makers.



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Makino Strengthens Presence In Vietnam With New Technology Centre

Makino Strengthens Presence In Vietnam With New Technology Centre

Machine tools and solutions provider Makino recently opened its Ho Chi Minh City Technology Centre in Vietnam. Located in the Saigon High Tech Park over an area of 4,700 square metres, the two-storey technology centre houses a showroom, training facility, parts centre and offices.

Neo Eng Chong, CEO and President of Makino Asia, said, “Opening the Makino Vietnam Technology Centre supports Makino’s strategy and our commitment to strengthen our support to customers, both before and after sales,  and share our expertise to the precision engineering industry with turnkey solutions and technology knowledge transfer.”

The Makino Vietnam Technical Centre boasts machines with high-speed milling and EDM applications to bring technology closer to customers in Vietnam. The new centre will support technology and knowledge transfer, training facility, local service support and application engineering solution.

Nguyen Thanh Hoa, Country Manager of Makino Vietnam, said, “Makino’s pride is always on quality and service, to provide a holistic customer experience to all customers. The Makino Vietnam Technical Centre serves to demonstrate the latest machining technology and solutions from Makino, as well as from our technology partners.  Customers will benefit from our one-stop solution for every size and industry.”



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US Imposes 456 Percent Tariffs On Vietnam Steel

US Imposes 456 Percent Tariffs On Vietnam Steel

The US Department Of Commerce has imposed a tariff of up to 456 percent on steel products that are imported from Vietnam, which are manufactured using materials from South Korea and Taiwan. These steel products from South Korea or Taiwan are shipped to Vietnam for minor processing before being exported to US.

Vietnam has benefited from the US-China trade war as companies are shifting production to the country and rerouting goods to Vietnam to avoid tariffs. In fact, Vietnam exports to US has increased over 30 percent in the first five months of 2019 and US is the largest export market for Vietnam.

In light of this, Vietnam’s foreign ministry has urged Vietnamese manufacturers to use domestically sourced materials or materials manufactured in countries where no tariffs are imposed.



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MTA Vietnam 2019 Opens New Opportunities For Precision Engineering And Manufacturing Sector In The Industrial Revolution 4.0

MTA Vietnam 2019 Opens New Opportunities For Precision Engineering And Manufacturing Sector In The Industrial Revolution 4.0

Vietnam mechanical industry is predicted to be a potential sector to catch up with the sustainable development of worldwide industry in the fourth industrial revolution. Being along with this industry through years, MTA is supposed to be the Vietnam premier trade event for Precision Engineering, Machine tools and Metalworking. The exhibition is held on July 2nd – 5th, 2019 at Saigon Exhibition and Convention Center (SECC), promised to display a strong line-up of cutting-edge products together with different interesting additional activities.

Vietnam Mechanical Industry Are Gradually Affirming Its Position In Industrial Revolution 4.0

As Vietnam powers past the first half of 2019, its growth remains stable within the context of slowing global economic growth faced with increasing challenges, contentions and risks. At the end of 1Q19, Vietnam’s GDP growth reached a commendable 6.8 percent, with the industrial and construction sectors contribution at 8.6 percent – the highest rate amongst all key Vietnam industry sectors. The industrial sector looks set to lead GDP growth over the near term as Vietnam has maintained her appeal for foreign direct investment in the manufacturing and industrial sectors.

While the world is progressing to the fourth industrial revolution, manufacturing level of Vietnam industry is still at the first stages and limited by new technologies, information, skill and infrastructure. However, if the enterprises know how to take the advantages of opportunities and are facilitated to develop, Vietnam mechanical industry is predicted to be a potential sector to catch up with the sustainable development of worldwide industry in the fourth industrial revolution. Besides, mechanical enterprises should actively renovate their technologies and collaborate with different partners to maximise the efficiency in working. With strong supporting and beneficial policies from the government and associations, the new industrial era would be easier to reach.

MTA Vietnam 2019 – Catching Up With Worldwide Industrial Innovation

MTA Vietnam makes it return as 17th edition and has asserted its position for the last 16 years as the premier precision engineering, machine tools and metalworking exhibition in Vietnam which meets the innovative demands of global tendency. With exhibition area is expanded to Hall A3 and reaches 13,900sqm, the event will showcase a number of industrial products serve for precision engineering, machine tools and metalworking industry provided by different suppliers from around the world. This year’s event attracted more than 514 exhibitors from 22 nations and regions with popular labels such as: Amada, Beijing Jingdiao, Bystronic, Cybertech, Dine Vina, Hypertherm, Hwacheon, Jinan Bodor, Knuth, Mazak, Marposs, Mitsubishi, Muratec, Nikon, Shandong Leiming, Sandvik, Sodick, Renishaw, Takamaz, Trumpf, Van Su Loi, Viet Vu, VPIC Viet Phap, Yamada,… and many others.

MTA Vietnam 2019 honourably welcomes 14 international group pavilions from countries with strong technological development such as: United Kingdom, Taiwan (3), Germany (2), Korea (5), Japan, Singapore and Thailand. Taiwan group pavilion has the biggest exhibition area with over 60 exhibitors attend. Korea is the nation that attracted the most associations with five international group pavilions include more than 50 companies to come and promote their products. Besides, United Kingdom is a brand new international group pavilion which is established for the first time in Vietnam, with supporting from Engineering Industries Association (EIA).

A place to exchange knowledge about science and technology

Technical seminars and conferences are alongside activities which attracted a plenty of visitors at MTA Vietnam. With the topic entitled: “New trends of metal forming technology”, technical seminar is hosted by the organiser: Informa Markets Vietnam and prestigious speakers from top-rated businesses such as: Dr. Ngo Cong Truong, Founder and Professional Director, John&Partners JSC; Mr. Pham Duc Hiep, Sales Manager, Trumpf Vietnam Co., Ltd; Mr. Garry Chuang, Sales General Manager, Bystronic; Mr. Hoang Minh Dong, Manager, Amada Vietnam Co., Ltd and Mr. Naoya Ogawa, Area Manager of ASEAN and Oceania, Murata Machinery Ltd.

Multi Engineering Solution Laboratory – MES LAB has continually accompanied with the seminar series at MTA Vietnam and brings the topic titled: “PRODUCT DESIGN & DEVELOPMENT – PROCESS AND TECHNIQUES TO IMPLEMENT FOR R&D AND INNOVATION TEAM”, conducted by Dr. Tran Anh Tuan (CEO MES LAB) and MES LAB Team. The program is hoped to bring interesting sharings about product design & development process by new technology.

Experiencing our industry 4.0 introducing booth called: “We are Industry 4.0 ready!”

This booth is opened with the aim to introduce products reach industrial 4.0 standard from the exhibitors. With the criterion: “Nine pillars of Technological Advancement that forms the basis for Industry 4.0”: Big Data and Analytics, Autonomous Robots, Simulation, Horizontal and Vertical System Integration, The Industrial Internet of Things, Cybersecurity, The Cloud, Additive Manufacturing, Augmented Reality (Source: Boston Consulting Group 9/4/2015), the products which have one of above standards will be displayed at this special booth. Through short videos and introduction, this is supposed to be a chance for the exhibitors to approach visitors more effectively.

This special booth welcomes 22 popular brands such as: 3D Smart, Amada, Bejing Jingdiao, Cybertech, Kita Sensor, Mazak, Nam Sơn, Nikon, Siemens, Trumpf, Woosung, ZWSOFT,… and many others to attend and showcase their products.

Click here to see show photos taken by the APMEN Team.



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Schaeffler Expands Product Portfolio With New Manufacturing Plant In Vietnam

Schaeffler Expands Product Portfolio With New Manufacturing Plant In Vietnam

Products manufactured in the plant will be supplied to customers across a wide range of industry sectors including agriculture, construction and mining, power transmission, food processing, textile, paper, steel, cement and two-wheelers (motorcycles).

Schaeffler has unveiled its new Greenfield manufacturing facility at Bien Hoa City in Dong Nai province of Vietnam. Standing on an area of 25,000sqm, the company has invested more than 45 million euros in building this modern facility. This new plant will create 300 additional jobs in the Dong Nai province. The opening ceremony held on 9 May 2019 was officiated by H.E. Dinh Quoc Thai, Chairman, Dong Nai Province People’s Committee; Georg F.W. Schaeffler, shareholder and Chairman of Schaeffler Group; and H.E. Andreas Siegel, German Consul General.

Confidence In Vietnam’s Potential As An Efficient Production Hub

“There are many reasons for our continued commitment to Vietnam. Its strategic location in Asia, a well-diversified, stable and fast-growing economy with talented, well-educated, ambitious population are just few among them,” said Mr. Schaeffler.

He also expressed confidence that Asia Pacific will be one of the future growth engine of the economy and as part of the company’s global strategy, the new plant will be able to meet the increasing demand from customers in growing industries in the region. “We see tremendous potential to apply our broad technological know-hows in the emerging markets,” added Mr. Schaeffler.

Helmut Bode, CEO Schaeffler Asia Pacific, said this is the second major investment by Schaeffler to expand local manufacturing capacity in Asia Pacific. The first plant is in Thailand for automotive products, which was opened in 2016. “We continue to grow our engineering competency and production footprint with the aim to deliver highest value from our products and solutions to customers in the region and around the world. Today we are proud to celebrate the opening of this state-of-the-art facility for industrial products in Vietnam,” commented Mr Bode.

Industry 4.0 To Optimise Manufacturing Process

Equipped with advanced production machinery and technologies, the new plant is the first in Southeast Asia to apply the latest Industry 4.0 solutions developed by the company. The plant features the use of SmartCheck – a condition monitoring device or smart sensor, and there are 70 of such devices installed at key positions in the plant. These devices monitors condition of machines and detects rolling bearing damage, imbalances and misalignments, hence reducing downtime and maximising machine lifetime.

Furthermore, the manufacturing facility is the first in Asia Pacific to focus solely on industrial applications. With the growth of the global industrial business and given its wide range of applications, Schaeffler is taking this opportunity to expand its local product portfolio. The plant will not only increase production capacity of existing product ranges of industrial bearings and components such as the Tapered Roller Bearings (TRB) and Radial Insert Ball Bearings (RIBB).

New product lines including an extended range of RIBB and the company’s flagship product – the Needle Roller Bearings (NRB) will be added as well. Products manufactured in Vietnam will be distributed globally, across various industrial sectors including, agriculture, food processing, power transmission and two-wheelers (motorcycles).

“The expansion of local manufacturing capacity demonstrates our confidence in Vietnam as an ideal production hub in the Asia Pacific region to serve regional and global customers with best-in-class bearing products and systems,” said Martin Schreiber, President Industrial at Schaeffler Asia Pacific during the ceremony.


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Vietnam Supports Domestic Automotive Manufacturing

Vietnam Supports Domestic Automotive Manufacturing

Vietnam Prime Minister Nguyen Xuan Phuc emphasised that development of the domestic automobile industry is necessary to achieve a self-reliant economy, during a meeting to discuss development of the country’s automotive sector. PM Phuc states that the government aims to increase localisation rate in automotive manufacturing and apply modern technologies during manufacturing processes as the industry moves towards the Fourth Industrial Revolution.

Currently, more than 90 percent of car accessories and parts are supplied by foreign companies. The low localisation ratio and tax policies have resulted in high car prices which have hindered the development of the automotive industry. However, given the increase in income demographic and infrastructural improvements, the demand for cars are expected to rise. In fact, the automobile market is predicted to grow by 10 percent in 2019.

As such, the government will continue to revise institutional framework and work on favourable, long-term policies for automobile manufacturers and enable more local enterprises to participate in the automobile production chain.

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US’s Key Tronic And UAC To Invest In Projects Worth US$240 Million In Vietnam

US’s Key Tronic And UAC To Invest In Projects Worth US$240 million In Vietnam

US firms, Key Tronic and Universal Alloy Corporation Asia Private Limited (UAC group) are expected to invest a combined US$240 million in the central city of Da Nang.

Key Tronic, a provider of Electronic Manufacturing Service (EMS) has been granted a license to establish a 86,000 square-foot manufacturing facility worth US$70 million in Hoa Khanh Industrial Park in Da Nang. The factory is scheduled to begin operations by July 2019 and is expected to produce 100 million car lights to be exported each year.

“We expect that commencing operations in Vietnam will significantly augment our Asian footprint and reduce production costs,” said Craig Gates, president and CEO of Key Tronic. “By further diversifying our global manufacturing, we also believe it provides an additional hedge against uncertainty in a lingering or future trade war with China.”

While UAC, a manufacturer of aircraft components, has also invested in a US$170 million project to manufacture aircraft components at Da Nang’s high-tech park. The facility will produce 4,000 of five million parts for Rolls Royce engines and bodies of Boeing 787, 777 and 737 aircrafts which will be exported to North America, EU and Malaysia. UAC aims at exports of US$25 million in 2021, US$85 million in 2022 and US$180 million by 2026. The company also aims to collaborate with technical colleges in Da Nang to develop the aerospace industry. Furthermore, it plans to recruit 1,200 skilled workers in mechanics, electronics and automation as well as 2,000 employees to develop a production chain in supporting industries.


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Vietnam Could Be The Next Strategic Production Centre For Hyundai

Vietnam Could Be The Next Strategic Production Centre For Hyundai

Deputy Prime Minister Trinh Dinh Dung hope that South Korea’s Hyundai group would consider Vietnam as a strategic production centre and raise the rate of locally made components in its automobiles to at least 40 percent.

Hyundai has been investing in Vietnam’s automobile industry over the years, maintaining business relations with Truong Hai and Thanh Cong groups to manufacture, assemble and distribute automobile vehicles in Vietnam. The government hopes that Hyundai will continue to cooperate and transfer technologies and management skills to its Vietnam partners. During the meeting with Deputy PM Dung, Hyundai’s Vice President, Jin Haeng has also reassured that the company plans to invest, transfer technologies and contribute to the development of Vietnam’s automotive manufacturing.

Developing the automotive industry is a core part of Vietnam’s modernisation and industrialisation strategy which focuses on producing made-in Vietnam cars for the local market. Other major automobile manufacturers can take advantage of Vietnam’s global integration, competitive input cost and large domestic market to dive further into the global value chain ladder.

For sustainable development of the automotive industry, new policies that are consistent, transparent, forecastable and fair would have to be drafted. Deputy PM Dung affirmed that the Vietnamese government remains committed to creating optimal conditions to support local and foreign investors to expand investments and business activities in the country.


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Foxconn Considers Operation In Vietnam Amidst US-China Trade Tensions

Foxconn Considers Operation In Vietnam Amidst US-China Trade Tensions

Taiwan’s Foxconn technology group, the world’s biggest electronics contract manufacturer and a key Apple supplier has recently acquired the right to use a property in an industrial park in northern Vietnam. The company is reportedly considering setting up an iPhone manufacturing facility in Vietnam to mitigate the negative impacts of the ongoing US-China trade war.

Vietnam would serve as an additional production base to shelter operations from the trade tension and is one of the preferred locations as compared to India. According to Le Dang Doanh, the former economic adviser of the Vietnamese government, Vietnam has joined multiple trade pacts including the recently-ratified Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which would allow iPhones to be exported to many member countries with lower tariffs. Following an investment of US$5 billion in Vietnam in 2007, Foxconn could leverage on its existing operations in Vietnam to continue expansion of investments in the country.

However, Vietnam has a low number of supporting business and lower credit ratings as compared to India. Although high iPhone import tariffs due to the ‘Make in India’ policy might deter Foxconn from India, greater labour and English skills could make India a prime location as well.

Taiwanese companies have invested estimated US$31 billion in more than 2,530 projects in Vietnam, making them one of the top 10 investors of Vietnam.


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