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Vietnam is one of Southeast Asia's fastest-growing economies. Over the past few decades, the country has achieved high economic growth. In 2021, the country’s GDP hit <a href="https://blogs.worldbank.org/eastasiapacific/next-stage-vietnams-development-journey" target="_blank" rel="noopener noreferrer">USD 363 billion</a>, a jump from USD 21 billion in 1994.
A key sector that is thriving is the logistics industry, which is expected to record a <a href="https://en.vietnamplus.vn/demand-for-logistics-real-estate-increases-sharply-savills-vietnam/235611.vnp" target="_blank" rel="noopener noreferrer">compound annual growth rate (CAGR) of 7%</a> between 2021 and 2026. This is largely due to Vietnam’s strategic location, <a href="https://www.trade.gov/country-commercial-guides/vietnam-trade-agreements" target="_blank" rel="noopener noreferrer">free trade agreements</a>, as well as the rapid growth of e-commerce in the region.
Despite this, Vietnam’s logistics industry faces major challenges such as operational inefficiencies in the trucking segment, which handles <a href="https://documents.worldbank.org/en/publication/documents-reports/documentdetail/165301554201962827/strengthening-vietnam-s-trucking-sector-towards-lower-logistics-costs-and-greenhouse-gas-emissions" target="_blank" rel="noopener noreferrer">77% of the total freight volume</a> transported in the country.
For example, route planning for local trucking operations is typically made intuitively. As a result, the lack of knowledge of local routes or human error can lead to inefficient transportation routes, during which trucks chalk up <a href="https://convoy.com/blog/empty-miles-in-trucking/" target="_blank" rel="noopener noreferrer">empty miles</a>. This leads to fuel wastage and increased carbon emissions. Often, logistics companies in Vietnam struggle to hire well-trained drivers with the relevant experience to operate freight vehicles safely and efficiently.
Vietnamese company MatarStars, also known locally as Song Nhật Tinh, has developed a smart freight management system to tackle these challenges while unlocking productivity gains in the logistics sector. The platform offers companies access to two solutions to optimize their freight operations.
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The first is a transport management system that can plan freight transportation routes, reduce empty miles traveled, view freight costs, and analyze vehicle usage patterns. The other is an AI-driven fleet management system. The AI technology allows users to track deliveries in real time, and leverages data to identify areas for freight optimization. Users can also use the network to identify unsafe driving behavior.
MatarStars is led by Duc Vu Minh (CEO), Vu Tung (COO), and Nam Hoai (CTO). The team has vast experience and knowledge, with prior stints in companies such as FPT Software and VPBank. Backed by VSV Capital, MatarStars aims to improve the operational performance of companies in the logistics industry in Vietnam and across the region.
MatarStars (Song Nhật Tinh) was a finalist at the <a href="https://www.alibabacloud.com/startup/global-startup-accelerator" target="_blank" rel="noopener noreferrer">Project AsiaForward Alibaba Cloud Global Startup Accelerator</a> Singapore Demo Day, held on May 25, 2022 in Ho Chi Minh City.

MatarStars’ Smart Freight Management Platform Optimizes Business Operations for the Logistics Industry

Logistics

Vietnam

Artificial intelligence (AI) is transforming the world. AI adds value to businesses in diverse ways, and helps companies automate tasks, improve operational efficiency, reduce costs, and provide data analysis. AI can also be adopted in a myriad of industries, such as healthcare, manufacturing, and transportation.
Despite the benefits that AI provides, its adoption can be challenging for companies. One is the need for <a href="https://www.zdnet.com/article/ai-has-a-big-data-problem-heres-how-to-fix-it/" target="_blank" rel="noopener noreferrer">reliable, high-quality data</a>. Building and deploying AI requires large volumes of data, which can be a time-consuming process.
At the same time, to train AI algorithms, developers have to carry out data annotation, a laborious process that can be costly, in which data is labeled and categorized.
Data quality is key to building a successful AI system. High-quality data is needed to ensure AI algorithms are reliable and produce accurate results. Flawed and insufficient data can negatively impact the effectiveness of AI, <a href="https://ai100.stanford.edu/2021-report/standing-questions-and-responses/sq10-what-are-most-pressing-dangers-ai#determinism" target="_blank" rel="noopener noreferrer">exhibiting bias</a> or endangering people.
To aid AI developers, Linh AI has built Graviton, a scalable infrastructure for AI development that can process a broad range of data formats.
Graviton’s annotation capabilities allow its users to identify and annotate data points such as keypoints, polylines, and cuboids, which are more detailed than traditional bounding box annotations. Annotations made on the platform can also include metadata such as attributes, text, and object and image groupings to enrich datasets.
The platform’s annotation tool, which can be semi-automated using a proprietary AI model, can speed up the annotation process by up to six-fold.
Users have the option to directly manage their datasets through the platform to provide insights on data composition. In addition, it allows developers to review annotations at scale, allowing them to detect errors and improve the accuracy of annotations.
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Graviton is compliant with global regulations on data protection and privacy, such as the Personal Data Protection Regulations (PDPR) in Singapore, and the General Data Protection Regulation (GDPR) in Europe.
Graviton is developed by Singapore-based Linh AI, a startup founded in 2021 by Giang Nguyen (CEO), Nhan Nguyen (CTO), and Louis Phung (COO).
Linh AI is supported by NTUitive—the innovation and entrepreneurial arm of Nanyang Technological University (NTU)—as well as NTU’s SCSE Innovation Lab, and the NVIDIA Inception program.
Linh AI applied to take part in the <a href="https://www.alibabacloud.com/startup/global-startup-accelerator" target="_blank" rel="noopener noreferrer">Project AsiaForward Alibaba Cloud Global Startup Accelerator</a> Singapore Demo Day, held on June 1, 2022 at the Singapore EXPO.

Linh AI’s Digital Platform Helps Businesses Speed Up AI Adoption

While traveling can be fun and exciting, it can also be challenging due to unfamiliar cultures and environments. This is why having a local guide during an overseas trip can make a big difference in enhancing one’s travel experience.
The idea to set up Tubudd came about after co-founder Annie Vu traveled to Europe on a solo trip and discovered hidden attractions from locals she befriended. To help travelers immerse themselves in an authentic hassle-free experience, Vietnamese startup Tubudd has come up with a digital platform that connects visitors with "local buddies."
Founded in 2017, Tubudd links travelers with local guides and interpreters to create itineraries customized to their interests and preferences. Through the mobile app or website, users can choose a destination and book a guide based on their preferred activities.
The local guides partnering with Tubudd are selected from a rigorous screening process that includes identification checks, language proficiency, and letters of recommendation to ensure a safer experience for travelers. Most recently, the startup has introduced a new app feature connecting entrepreneurs who are looking to invest in Vietnam with interpreters to assist on business-related matters.
<img class="aligncenter size-full wp-image-142555" src="https://console.kr-asia.com/wp-content/uploads/2023/03/602cf174db040dc9abfb63e4e171458b4a62b7e4.jpeg" alt="" width="954" height="513" srcset="https://console.kr-asia.com/wp-content/uploads/2023/03/602cf174db040dc9abfb63e4e171458b4a62b7e4.jpeg 954w, https://console.kr-asia.com/wp-content/uploads/2023/03/602cf174db040dc9abfb63e4e171458b4a62b7e4-300x161.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2023/03/602cf174db040dc9abfb63e4e171458b4a62b7e4-768x413.jpeg 768w" sizes="(max-width: 954px) 100vw, 954px" />
Tubudd’s other co-founders include CTO Ethan Dang and COO Anthony Cruickshank. The team has years of experience in sales, e-commerce, and marketing across Asia and Europe. Tubudd is backed by VSV Capital and TheVentures, which have taken part in pre-seed and seed rounds, respectively.
Tubudd applied to take part in the <a href="https://www.alibabacloud.com/startup/global-startup-accelerator" target="_blank" rel="noopener noreferrer">Project AsiaForward Alibaba Cloud Global Startup Accelerator</a> Vietnam Demo Day.

Tubudd Connects International Travelers with Local Guides

Travel

As e-commerce plays an increasingly important role for businesses to increase sales, there is more at stake for companies with little or no experience in running online operations.
This is an issue faced by many traditional businesses in Vietnam, which has one of the <a href="https://opengovasia.com/vietnam-to-be-fastest-growing-e-commerce-market-in-southeast-asia-by-2026/" target="_blank" rel="noopener noreferrer">fastest-growing</a> e-commerce markets in the region, largely due to a young population, a growing middle class, high internet penetration, and rising smartphone penetration.
To tackle this, Vietnamese startup Prime Commerce has come up with multi-channel sales integration solutions to help businesses set up and manage their online operations.
The e-commerce enabler develops centralized management software for businesses to effectively manage their multi-channel sales orders. Through a dashboard, users have access to a multitude of features, such as managing inventory and payments as well as conducting sales data analysis.
Prime Commerce's software product can also help entrepreneurs and SMEs find relevant influencers to raise their brand visibility as well as facilitate the management of influencer campaigns.
Prime Commerce is led by CEO Han Mac, who has an extensive background in e-commerce, having previously worked for Ogilvy, Lazada, and Innovatoys. Founded in 2018, the firm is based in Ho Chi Minh City, Vietnam and has a current headcount of 50. The company is funded by Japanese web consultancy Rentracks, Singapore investment firms Maffin and Soltec Investments, and a number of angel investors.
Prime Commerce is currently expanding its teams in Vietnam, Singapore, Malaysia, Indonesia, and Thailand, and hopes that its platform can make cross-border sales more effective and efficient across the region.
<img class="aligncenter size-large wp-image-142550" src="https://console.kr-asia.com/wp-content/uploads/2023/03/d69c0274d596ef20816a1b63bb1532288d1ac891-1024x576.jpeg" alt="" width="1024" height="576" srcset="https://console.kr-asia.com/wp-content/uploads/2023/03/d69c0274d596ef20816a1b63bb1532288d1ac891-1024x576.jpeg 1024w, https://console.kr-asia.com/wp-content/uploads/2023/03/d69c0274d596ef20816a1b63bb1532288d1ac891-300x169.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2023/03/d69c0274d596ef20816a1b63bb1532288d1ac891-768x432.jpeg 768w, https://console.kr-asia.com/wp-content/uploads/2023/03/d69c0274d596ef20816a1b63bb1532288d1ac891-1536x864.jpeg 1536w, https://console.kr-asia.com/wp-content/uploads/2023/03/d69c0274d596ef20816a1b63bb1532288d1ac891-2048x1152.jpeg 2048w, https://console.kr-asia.com/wp-content/uploads/2023/03/d69c0274d596ef20816a1b63bb1532288d1ac891-480x270.jpeg 480w" sizes="(max-width: 1024px) 100vw, 1024px" />
<a href="https://primecommerce.asia/en" target="_blank" rel="noopener noreferrer">Prime Commerce</a> applied to take part in the <a href="https://www.alibabacloud.com/startup/global-startup-accelerator" target="_blank" rel="noopener noreferrer">Project AsiaForward Alibaba Cloud Global Startup Accelerator</a> Vietnam Demo Day.

Prime Commerce Helps Businesses Set Up and Manage Online Sales Channels

Retail

Today, more people are shopping online around the world than ever. According to <a href="https://www.insiderintelligence.com/content/global-ecommerce-forecast-2022" target="_blank" rel="noopener noreferrer">Insider Intelligence</a>, in 2022, worldwide e-commerce sales will exceed USD 5 trillion for the first time, accounting for more than a fifth of overall retail sales.
While there are advantages to shopping online, such as increased convenience and access to a wide range of products, online shopping has its downsides, such as hidden costs.
To help identify these costs, Vietnamese startup Dutycast has built a Chrome extension that allows users to shop using their proprietary shopping cart on major online stores such as Amazon, Nike, Sephora, and Footlocker. At the same time, the program allows shoppers to see a breakdown of fees such as taxes, duties, and logistics-related expenses accompanying their purchases.
The extension will let online consumers spot any other hidden costs incurred during the payment process, check recent price changes on the items they are purchasing, as well as available payment options.
<img class="aligncenter size-large wp-image-142544" src="https://console.kr-asia.com/wp-content/uploads/2023/03/e0bc6e9efd00d8a3836c87b097f911c861e84ed1-1024x576.jpeg" alt="" width="1024" height="576" srcset="https://console.kr-asia.com/wp-content/uploads/2023/03/e0bc6e9efd00d8a3836c87b097f911c861e84ed1-1024x576.jpeg 1024w, https://console.kr-asia.com/wp-content/uploads/2023/03/e0bc6e9efd00d8a3836c87b097f911c861e84ed1-300x169.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2023/03/e0bc6e9efd00d8a3836c87b097f911c861e84ed1-768x432.jpeg 768w, https://console.kr-asia.com/wp-content/uploads/2023/03/e0bc6e9efd00d8a3836c87b097f911c861e84ed1-1536x864.jpeg 1536w, https://console.kr-asia.com/wp-content/uploads/2023/03/e0bc6e9efd00d8a3836c87b097f911c861e84ed1-2048x1152.jpeg 2048w, https://console.kr-asia.com/wp-content/uploads/2023/03/e0bc6e9efd00d8a3836c87b097f911c861e84ed1-480x270.jpeg 480w" sizes="(max-width: 1024px) 100vw, 1024px" />
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Dutycast is led by co-founders and co-CEOs, Hoa Nguyen and Tam Dang. Nguyen, who is based in Norway, was named by Abelia and ODA as one of Norway’s “Top 50 Leading Women in Technology” in 2020, while Dang has eight years of experience in the logistics industry. Dang previously built TradingFoe, a cross-border B2B platform with manufacturers and suppliers across Europe and Southeast Asia. In 2021, VinaCapital Ventures purchased a stake in the startup for an undisclosed amount.
<img class="aligncenter size-full wp-image-142545" src="https://console.kr-asia.com/wp-content/uploads/2023/03/ec8ec74088c90c054b99873acd414fc5ee8b678c.jpeg" alt="" width="1024" height="681" srcset="https://console.kr-asia.com/wp-content/uploads/2023/03/ec8ec74088c90c054b99873acd414fc5ee8b678c.jpeg 1024w, https://console.kr-asia.com/wp-content/uploads/2023/03/ec8ec74088c90c054b99873acd414fc5ee8b678c-300x200.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2023/03/ec8ec74088c90c054b99873acd414fc5ee8b678c-768x511.jpeg 768w" sizes="(max-width: 1024px) 100vw, 1024px" />
Dutycast was a finalist and the Asia Star at the <a href="https://www.alibabacloud.com/startup/global-startup-accelerator" target="_blank" rel="noopener noreferrer">Project AsiaForward Alibaba Cloud Global Startup Accelerator</a> Vietnam Demo Day, held on May 25, 2022 in Ho Chi Minh City.

Dutycast Helps Online Consumers Shop with Ease

Vietnam is joining Asia's rush to embrace <a href="https://kr-asia.com/chatgpt-rush-kicks-us-china-ai-race-into-higher-gear">ChatGPT</a>, even though the Microsoft-backed AI bot has not launched in the country.
The excitement has spawned a cottage industry selling accounts that are meant to be free, while some of the country's biggest companies are looking into the possibilities of a technology that composes emails, essays, code, and even news stories based on simple user prompts.
Dozens of Facebook groups devoted to OpenAI's platform have sprung up in Vietnam, with one boasting 79,000 members.
Vietnam is far from alone in Asia in its embrace of ChatGPT. Chinese tech giants are scrambling to come up with <a href="https://kr-asia.com/alibaba-tencent-and-baidu-join-the-chatgpt-rush">their own versions</a>, while India's embattled billionaire Gautam Adani recently said he has "some addiction" to it.
In Vietnam, however, would-be users have to jump through hoops to access the service. It is one of three Southeast Asian countries where OpenAI, the U.S. developer, has not made ChatGPT available. That means accessing the service from Vietnam requires going through a virtual private network (VPN).
Hundreds of Vietnamese a day ask for help creating ChatGPT accounts, typically using a VPN, said Sonny Dang, who manages one such group. Dang doesn't sell such services but said others charge USD 1 - 4 for it.
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He estimates that less than 1% of Vietnam's population of 100 million uses ChatGPT, drawn by the ability to save time, the ease of use and FOMO—the fear of missing out.
"I did wonder why it spread like a virus even though it gave some errors or funny answers," he said of the technology, which is known for responding in a natural but not always accurate way to user prompts such as: "Tell me about Dostoyevsky in Vietnamese," or simply, "asteroid."
Dang said Vietnam's news coverage ignited interest, too. Indeed, it quickly became a journalism trope globally, where it seems nine of every 10 stories about ChatGPT incorporate the app.
This is one of the nine. "ChatGPT has seen a surge in popularity in Vietnam in recent years," the chatbot told Nikkei Asia. The sentence reads just fine, never mind the fact that the service debuted in November.
Statements like these demonstrate the tech's limitations. Its algorithm is opaque, and its results are often plausible but wrong as they are based more on patterns of speech than real-world facts. News articles on tech trends, for example, often include the phrase "in recent years."
But sometimes, it does get it right: "Companies in Vietnam are using ChatGPT-powered chatbots to provide customer support, while researchers are using it for natural language processing tasks."
Vingroup, the country's biggest private company, invests in VinFast electric cars, apartments, malls, and schools. Its new VinUniversity is weighing how to apply ChatGPT in the classroom or research. Dang, a serial entrepreneur, co-founded LovinBot, a Vietnamese writing assistant that he is now refurbishing with ChatGPT. Cybersecurity company Bkav and property outfit Max Land discussed the technology's possible uses on national TV.
Gaming <a href="https://asia.nikkei.com/Business/Business-Spotlight/Vietnam-s-first-unicorn-bets-on-AI-and-overseas-growth">unicorn VNG</a>, software giant FPT and other organizations are doubling down on machine learning more generally, a topic that <a href="https://asia.nikkei.com/Spotlight/Supply-Chain/Samsung-increases-bet-on-Vietnam-with-220m-R-D-hub">Samsung's</a> new USD 220 million research center in Hanoi is also focusing on.
"All the major Vietnamese big-tech companies have AI development," Kok Seng Kiong, an innovation program manager at RMIT University Vietnam, told Nikkei.
The country's digital economy by 2025 will have Southeast Asia's top growth rate, 31%, according to a report by Temasek, Google, and Bain. Kok alluded to its young population, which is receptive to tech, especially free inventions more likely to reach developing nations.
"It does feel as though ChatGPT is an opportunity for the development of the skills and knowledge base within Vietnam," he said.
Yet Dang finds the platform doesn't hold up as well in Vietnamese as in English.
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A key hurdle to improved results is not only the quantity of big data—the lifeblood of ChatGPT or any machine learning—but also the type of data. One tech executive said "<a href="https://asia.nikkei.com/Business/China-tech/Alibaba-Tencent-and-Baidu-join-the-ChatGPT-rush">China's heavy censorship</a> of cyberspace" makes it hard to create AI-generated content. It is an obstacle that also applies to Vietnam's intensely censored internet.
"It writes Vietnamese really well, like a natural speaker," Dang said of ChatGPT. "But the more you play with it, try it out, [the more] you see its limitations."
It's the world's fastest-growing consumer software in history, with fans like Adani, who posted about his fascination with the app on LinkedIn. Searches for "ChatGPT Vietnam" return 13.5 million results on Google, which introduced Bard in its existential fight against Microsoft search engine Bing, set to be powered by ChatGPT.
This article first appeared on <a href="https://asia.nikkei.com/Business/Technology/ChatGPT-fever-reaches-Vietnam-from-Vingroup-to-AI-startups" target="_blank" rel="noopener noreferrer" data-token-index="1" data-reactroot="">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" target="_blank" rel="noopener noreferrer" data-token-index="3" data-reactroot="">partnership with Nikkei</a>.

ChatGPT fever reaches Vietnam, from Vingroup to AI startups

Apple plans to move some MacBook production to Vietnam for the first time next year as the US tech group continues diversifying its production base away from China amid escalating tech tensions between Washington and Beijing.
Apple has tapped its top supplier, Taiwan's Foxconn, to start making MacBooks in the Southeast Asian nation as early as around May, sources briefed on the matter said. Apple has been working to add production sites outside of China for all of its major product lines, but doing so for the final one, the MacBook, has taken longer due to the complex supply chain needed for making laptop computers.
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"After the MacBook production shifts, all of Apple's flagship products basically will have one more production location beyond China ... iPhones in India and MacBooks, the Apple Watch and iPads in Vietnam," one person with direct knowledge of the matter told Nikkei Asia. "What Apple wants now is an 'out of China' option for at least part of production for all of its products."
The company has been working on plans to move some MacBook manufacturing to Vietnam for nearly two years, and has set up a <a title="" href="https://asia.nikkei.com/Business/Technology/Vietnam-to-make-Apple-Watch-and-MacBook-for-first-time-ever" target="_blank" rel="noopener noreferrer">test production line</a> in the country, Nikkei Asia reported earlier. Apple makes between 20 million and 24 million MacBooks annually, with production spread between bases in the Chinese cities of Chengdu, in Sichuan province, and Shanghai.
The shift to Vietnam comes amid not only rising geopolitical tensions but also production disruptions caused by China's zero-COVID policies and uncertainty from their sudden loosening in recent weeks.
For China, the loss of its lock on MacBook production symbolizes the broader weakening of its position as the world's factory. Top electronics makers from Apple, HP and Dell, to Google and Meta have all made at least some plans to shift production and sourcing away from China since former US President Donald Trump started a tariff war against the country.
Production of most US-bound data center servers made for Google, Meta, Amazon and Microsoft, for example, has moved to Taiwan, Mexico or Thailand.
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"Overall, China's benefits in terms of low-cost manufacturing are fading and many US clients now want some production location alternatives outside of China," said an executive at Inventec, a key supplier to HP and Dell. "This is already an accelerating trend for almost all global brands and it will not likely change going forward."
For decades Apple counted China as its most important assembly base, but that winning formula reached a crisis point this year. In the spring, key MacBook and iPhone production sites in Shanghai faced massive disruptions due to a months-long COVID lockdown. In November, Apple warned of delays in deliveries of its premium iPhone 14 Pro and 14 Pro Max for the holiday season, citing pandemic-related labor shortages at its most important production base in Zhengzhou, Henan province.
Chiu Shih-fang, a supply chain analyst with the Taiwan Institute of Economic Research, says the changes to the tech supply chain are irreversible.
"In the past, most people in the industry always hoped that the situation could ease and things could go back to the good old days," Chiu told Nikkei Asia. "But this time, they realize there is no way of turning back and no matter what they need to prepare alternatives beyond China."
China's strict COVID policies have accelerated the shift, and it is now happening faster than industry executives and market analysts thought a few years ago, Chiu said, adding that intensifying US-China tensions were also playing a role.
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"No one wants their businesses to be trapped and hit badly just because their production is too concentrated in one place. From big to small, suppliers now need to have some solutions for facing this new global reality."
Apple's diversification to Vietnam started with AirPods, which went into mass production there in 2020. The company also shifted some iPads and Apple Watch production to the Southeast Asian country this year, Nikkei Asia first reported, and in October it announced it had started producing the iPhone 14 in India, only a few weeks after the release of the latest flagship phone.
Sources have told Nikkei Asia that Apple aims to significantly increase iPhone output from India this year and next, with the aim of turning the country into another key production base for the devices. Apple also aims to move some AirPods and Beats earphone production to India, Nikkei Asia earlier reported.
Apple did not respond to Nikkei Asia's request for comment. Foxconn declined to comment.
This article first appeared on <a href="https://asia.nikkei.com/Spotlight/Supply-Chain/Apple-to-start-making-MacBooks-in-Vietnam-by-mid-2023" target="_blank" rel="nofollow noopener noreferrer" data-type="external">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" target="_blank" rel="nofollow noopener noreferrer" data-type="external">partnership with Nikkei</a>.

Apple to start making MacBooks in Vietnam by mid-2023

Smartphones

Despite Vietnam's ambitious plans to expand its electric vehicle market with tax incentives, overseas automakers remain reluctant to make forays in light of the struggles by domestic peer VinFast.
At late October's Vietnam Motor Show in Ho Chi Minh City, only German automakers Mercedes-Benz and Audi unveiled plans to offer electric cars in the Southeast Asian country.
Vietnam's market conditions are "such that we cannot release EVs for a while," said a senior official at a multinational automaker.
The country is offering tax incentives to spur electrification. In March, the special consumption tax at the time of purchase on EVs that seat up to nine people was slashed from 15% to 3%, lowering the rate to less than a tenth that of their gasoline-powered counterparts. Car registration fees have also been reduced for EV buyers.
These measures aim to lower the initial cost of owning electric vehicles, which, according to local reports, carry prices 50% above gasoline automobiles. The shift to electrics has the potential to develop Vietnam's auto industry and alter its industrial landscape.
Still, global automakers hesitate to take the plunge. VinFast, the country's sole homegrown EV manufacturer, is facing tepid demand. While the Vingroup unit is aggressively building an American foothold in an ambitious attempt to challenge Tesla, it sold just roughly 2,200 units of EVs in the first eight months of this year back home.
"Unless VinFast's sales grow, others won't follow," an industry watcher said.
Vietnam has been slow to set up necessary infrastructure for electric vehicles, and charging stations are rarely found even in big cities. There are calls for the Communist Party to make the most of its monopoly on power and throw its weight behind the auto industry to promote electrification.
This article first appeared on <a href="https://asia.nikkei.com/Business/Automobiles/Vietnam-s-EV-push-fails-to-bring-automakers-aboard-as-sales-falter" target="_blank" rel="nofollow noopener noreferrer" data-type="external">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" target="_blank" rel="nofollow noopener noreferrer" data-type="external">partnership with Nikkei</a>.

Vietnam's EV push fails to bring automakers aboard as sales falter

Electric Vehicles

Amazon said its operations in Vietnam are defying a global downturn hitting Big Tech, thanks in part to an influx of Chinese businesses moving into the Southeast Asian nation.
Gijae Seong, head of Amazon Global Selling in Vietnam, said the local division has grown more strongly this year than in 2021, even as the company last week reported a USD 2.5 billion third-quarter operating loss for its international segment.
While he declined to disclose country-specific revenue, Seong said the number of local exporters using Amazon in Vietnam spiked 80% in the 12 months to August. Those exporters' sales also rose at a faster clip in 2022 than 2021, the company said.
Southeast Asia is already the world's fastest-growing e-commerce market, and Vietnam is set to lead that expansion by 2026, Seong added.
But he also acknowledged the "double challenge" of a rise in interest rates and decline in people shopping from home as they try "to go back to their normal lives" after COVID.
"We're struggling. I think everybody's struggling this year," Seong told reporters in Ho Chi Minh City.
When Nikkei Asia asked about the impact of companies relocating from China, Seong described two benefits for Amazon.
First, he said, merchants and service providers coming to the country raise standards and offer lessons to Vietnamese partners, drawing on a decade of experience in China's larger online market. Second, Chinese e-commerce sellers ship from Vietnam, increasing export volume and therefore the incentive to invest in the country's logistics, he said.
Much news has focused on factories moving from China across the border to Vietnam amid US-China tensions and COVID disruptions. Amazon's remarks highlight how the trend can have knock-on effects in other areas, in this case the online marketplace.
<img class="alignnone size-large wp-image-55209" src="https://console.kr-asia.com/wp-content/uploads/2019/12/vietnam-2463460_1920-1024x678.jpg" alt="" width="1024" height="678" srcset="https://console.kr-asia.com/wp-content/uploads/2019/12/vietnam-2463460_1920-1024x678.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2019/12/vietnam-2463460_1920-300x199.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2019/12/vietnam-2463460_1920-768x508.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2019/12/vietnam-2463460_1920.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" />
Seong's upbeat comments on Vietnam come as gloom in the global economy has weighed on a number of industries, including fashion and furniture—two of the top five product categories that companies in Vietnam's export-driven economy sell via Amazon.
Looking to capitalize on one of the world's fastest-growing economies, Amazon said it has focused on improving services for local merchants, offering discounts, Vietnamese-language customer service, and other support.
"We received a lot of complaints from our sellers that it's so hard to create an Amazon account" in Vietnam around 2018-2019, when it was first entering the country, Seong said. "There were a lot of rumors... that Amazon includes a lot of difficulty."
Hiring more Vietnamese staff to solve registration and other problems was one major improvement that helped increase the number of vendors on the online store, he added.
Merchants in Vietnam sold 10 million products on the platform in the 12 months to August, according to the Seattle-based company.
This article first appeared on <a href="https://asia.nikkei.com/Business/Retail/Amazon-Vietnam-growth-buoyed-by-China-defies-global-tech-slowdown" target="_blank" rel="nofollow noopener noreferrer" data-type="external">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" target="_blank" rel="nofollow noopener noreferrer" data-type="external">partnership with Nikkei</a>.
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Amazon Vietnam growth, buoyed by China, defies global tech slowdown

China