Photo: Kim Long Motor

The launch ceremony took place on September 15 in collaboration with KIJSETTHI Mobility, introducing Kim Long-branded buses to the Thai market.

KIJSETTHI Mobility has been Kim Long Motor’s authorised distributor in Thailand since April with the Thai company taking steps to implement a sales and after-sales service network nationwide since then. Building on Kim Long Motor’s research and development (R&D) and manufacturing capabilities and KIJSETTHI Mobility’s strong understanding of the local market, the two parties aim to establish a professional distribution and service platform, delivering high-quality, operationally optimised transport solutions for Thailand.

In addition, KIJSETTHI Mobility has completed a system of showrooms, authorised service stations, and genuine spare parts warehouses, offering 24/7 technical support and warranty services to ensure peace of mind for customers investing in Kim Long products.

As part of the partnership roadmap, Phase 1 will see the introduction of Kim Long commercial vehicles to the Thai market, developing next-generation EURO 5-compliant internal combustion engine models as well as fully electric vehicles. In parallel, the two companies will strengthen their nationwide distribution and service networks, alongside ongoing customer feedback to further enhance product quality.

In Phase 2, Kim Long Motor will progressively shift from Completely Built-Up exports to local assembly in Thailand, with the aim of achieving a localisation rate of more than 50 per cent. From 2027 to 2030, the company plans to establish Thailand as a strategic manufacturing and export hub for the ASEAN market, helping expand the supply chain, foster supporting industries, and generate employment opportunities for local communities.

Addressing the event, Dao Viet Anh, general director of Kim Long Motor, said, “We are proud to be a pioneer in bringing Vietnamese-branded commercial vehicles to Thailand. As one of ASEAN’s major automotive hubs, Thailand serves as a strategic gateway for Vietnamese-made Kim Long products to prove their engineering, quality, and service capabilities. Alongside KIJSETTHI Mobility, we will continuously refine our operational and after-sales platform. Kim Long aims to become a gateway contributing positively to Vietnam–Thailand economic cooperation.”

At the ceremony, Kim Long Motor introduced bus models developed and produced on automated and digitised production lines. The company maintains autonomy across the value chain, from interior and exterior components to the chassis, body, engine, battery, and electrical systems. Consequently, the localisation rate for Kim Long diesel buses has reached 90 per cent, while pure electric vehicles stand at 60 per cent, with a target of reaching 90 per cent by late 2026.

Designed for the Thai market, the launched models prioritise performance, safety, and passenger comfort across flexible configurations. The 12-metre KIMLONG99 series offers seating for 42 to 44 passengers and is suited to inter-provincial travel, while the compact 7.9-m KIMLONG19-N21 features a 21-seat layout designed for urban transit, short-haul routes, and high-frequency shuttle services.

Photo: Kim Long Motor

All models feature spacious interiors with premium leather seats, integrated USB charging ports (Type A and Type C), refrigerators, and high-capacity air conditioning systems with individual vents for each seat. For safety, flexible internal, and external camera systems assist drivers, while international-standard emergency exits enable proactive emergency response.

A major highlight is the powerful YUCHAI K11 engine, offering fuel efficiency (19–21 litres per 100 km) to optimise operating costs. On this occasion, Kim Long Motor and KIJSETTHI Mobility handed over the first batch of KIM LONG buses to Thai customers.

Chalakorn Setthabunnatat, general director of KIJSETTHI Mobility, said, “We are delighted that our collaboration has resulted in the official launch of KIM LONG buses – well-invested in design, amenities, and superior performance – to Thai customers. We highly appreciate KIM LONG Motor’s R&D capabilities and product optimisation for local transit needs. I am confident that our nationwide network will enable KIJSETTHI Mobility to partner long-term with Kim Long Motor in creating comprehensive transport solutions for Thailand.”

At the event, KIJSETTHI Mobility secured an immediate order for 50 Kim Long buses.

Taking place on the occasion of the 50^th anniversary of Vietnam-Thailand diplomatic relations, the launch reflects the deepening spirit of cooperation between the two countries. It also affirms the capacity of Vietnamese enterprises to pursue international economic integration and advance national industrial development strategies.

From Kim Long buses entering Thailand’s roads to the strategic vision of joint production and ASEAN-wide expansion, Kim Long Motor and KIJSETTHI Mobility are steadily building a sustainable growth strategy and opening a new chapter for the region’s automobile industry.

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Kim Long Motor exports first buses to Thailand in regional push Kim Long Motor has exported its first batch of locally manufactured buses to Thailand, marking a significant step in the company’s international expansion strategy.

Institutional reform does not create competitiveness overnight, but it can build the confidence businesses need to make long-term investments.

More than three decades of development among Vietnamese private enterprises shows that as the business environment becomes increasingly transparent, the private sector gains greater room to build its internal capabilities, invest for the long term and gradually strengthen its competitiveness.

If fair rules in sport motivate athletes to continually push beyond their limits, a healthy competitive business environment similarly gives companies the confidence to invest in technology, innovation and long-term strategies.

Through policy recommendations submitted to the government over the years, Vietnam’s private business community has shown that what it needs is not preferential treatment or privileges, but a transparent, stable and consistent business environment where every player can grow on the strength of its own capabilities.

“Businesses do not need preferential treatment; they need a stable, predictable, transparent and fair environment; they need their business and property rights to be protected; they need streamlined administrative procedures and a consistent policy implementation system from the central to local levels. Reform only truly matters when it delivers tangible results,” said Nguyen Duy Hung, member of the Board of Directors at Tan Hiep Phat Beverage Group, one of the leading fast-moving consumer goods (FMCG) businesses in the country.

Established in 1994, just a few years after the Law on Enterprises expanded the space for the private sector, Tan Hiep Phat was among the businesses that came of age alongside the country’s reform drive. More than three decades later, Tan Hiep Phat has become the only Vietnamese firm among the top five leading beverage companies in Vietnam.

The journey of companies such as Tan Hiep Phat, therefore, serves as a reflection of the relationship between the business environment and the process of building internal capabilities within the private sector.

Hung uses the metaphor of “where the soil is fertile, birds will come to nest”: when confidence is strengthened, “flows of knowledge, talent, technology and legitimate aspirations for prosperity will naturally find their way in.”

Nguyen Duy Hung, member of the Board of Directors at Tan Hiep Phat. Photos: Tan Hiep Phat Beverage Group

But reform only creates the space for development. Opportunities become competitive advantages only when businesses have the determination to invest in capabilities that form a lasting foundation.

Building internal strength through manufacturing and technology

According to the Vietnam Private Economy Report and Provincial Competitiveness Index 2025, Vietnam’s private economic sector currently provides jobs for approximately 26 million people, equivalent to 50.2 per cent of total employment nationwide.

Behind this scale lies the production capacity accumulated over many years by millions of businesses, with leading companies playing an important role in shaping supply chains, creating jobs and generating spillover effects across other parts of the economy.

According to Nguyen Van Viet, chairman of the Vietnam Beer – Alcohol – Beverage Association (VBA), persistent investment in modern production technologies and quality control in line with international standards not only enables businesses to provide consumers with quality products at reasonable prices, but also helps raise standards across the beverage industry and strengthen the competitiveness of domestic companies.

When a manufacturing company makes long-term investments, the value it creates extends beyond the company itself, spreading throughout the wider ecosystem

Tan Hiep Phat is an example of this process of accumulation. Nearly two decades ago, when most of the market was still using conventional filling technology, the company chose to invest in an Aseptic filling system from Germany – a technology requiring substantial investment and stringent operating standards.

Aseptic technology enables the product and packaging to be sterilised separately before filling in a sterile environment, helping control product quality and safety without the use of preservatives to extend shelf life.

Aseptic filling technology requires stringent technical operation and a long payback period

This was not simply a technology decision, but a decision to invest in long-term capabilities. The substantial investment required, stringent technical operating requirements and longer payback period made it far from an easy choice.

In return, Aseptic technology has become one of the key foundations that have enabled Tan Hiep Phat to build its manufacturing capabilities and develop its core products over the years.

More importantly, the company did not stop at adopting the technology. Through continuous operation and improvement, Tan Hiep Phat has gradually built up its capabilities, mastered the technology and worked with international partners to develop solutions better suited to Vietnam’s climate, raw materials and consumer needs.

Over more than 30 years, the company has continuously reinvested in its production capabilities, gradually building a system of four manufacturing clusters in the country’s key economic regions – Ninh Binh, Danang, Ho Chi Minh City and Can Tho – with 12 Aseptic filling lines and total investment exceeding $300 million.

The company has also brought its products to demanding markets such as France, the Netherlands, Australia and Canada by meeting globally-recognised standards including the Food and Drug Administration, Halal, ISO and HACCP.

These figures reflect more than the scale of investment. More importantly, they represent a decades-long process of building capabilities – a process that is still ongoing at Tan Hiep Phat.

In 2025, the company decided to invest an additional $100 million in next-generation production lines to enhance its manufacturing capacity and meet growing market demand. As the company has expanded, so have tens of thousands of partners across its supply chain matured and grown alongside it.

Seen through this lens, Tan Hiep Phat is more than simply a beverage company. Behind every bottle of Zero Degree Green Tea, Dr Thanh Herbal Tea or Number 1 Energy Drink lies an extensive economic ecosystem spanning farmers in raw-material growing regions, packaging companies, logistics providers and technology partners, through to distributors and retailers across the country.

This is also how the capabilities of individual businesses are transformed into the capabilities of an entire industry. And as more Vietnamese companies choose to invest in capabilities rather than pursue short-term growth alone, today’s private-sector investments will become part of Vietnam’s comprehensive productive capacity and economic competitiveness in the future.

Tan Hiep Phat joins efforts to care for children In the course of its business, southern beverage major Tan Hiep Phat is also diligently caring for children, striving to be always of good service to society.

Tan Hiep Phat: a 30-year journey of sustainable development In early October, Tan Hiep Phat, Vietnam’s leading beverage manufacturer, in collaboration with the Red Cross Society of Hau Giang Province, awarded 200 scholarships, each worth VND1 million ($39.54) to disadvantaged students.

Tan Hiep Phat awards 200 scholarships to disadvantaged students in Binh Duong On October 28, Tan Hiep Phat, Vietnam’s leading beverage manufacturer, joined forces with Binh Duong Youth Union to award 200 scholarships to underprivileged students.

Tan Hiep Phat – 30 years of perseverance and breakthroughs Overcoming challenges, many beverage businesses have affirmed their breakthrough with synergy coming from a chain of links that have been persistently built over decades.

Photo: Ministry of Agriculture and Environment

According to a September 8 report from the Ministry of Agriculture and Environment (MAE), exports were estimated at $1.48 billion in August alone, bringing the eight-month total to $11.69 billion. Wood and wood products recorded the highest export value among Vietnam’s agricultural commodities during the period.

The United States remained Vietnam’s largest export market, accounting for 49.9 per cent of total wood and wood product exports. In effect, nearly $1 of every $2 earned from the sector came from the US market.

China, meanwhile, has rapidly expanded its purchases. Vietnam’s wood and wood product exports to China reached $1.54 billion, up 46.4 per cent on-year, lifting China’s share to 15 per cent, 4.2 percentage points higher than a year earlier.

China has therefore overtaken Japan to become Vietnam’s second-largest market for wood and wood products.

Exports to Japan, Malaysia, the Netherlands, Germany and the UK also recorded solid growth, pointing to improving demand across several Asian and European markets and creating opportunities for Vietnamese exporters to broaden their customer base.

Mexico posted the strongest growth among Vietnam’s 15 largest wood export markets, with export value more than doubling on-year. India, by contrast, recorded the sharpest decline, with exports falling 30.3 per cent.

The changing market picture highlights the need for Vietnam’s wood industry to maintain its established markets while accelerating diversification to reduce reliance on a small number of destinations.

According to the Ministry of Industry and Trade’s Foreign Trade Agency, exports to the US are facing greater pressure as Washington steps up trade defence measures.

On July 16, the US Department of Commerce announced its final determinations in the anti-dumping and countervailing duty investigations into hardwood plywood and decorative plywood from Vietnam, imposing a general anti-dumping duty rate of 84.95 per cent.

Although the final rate was significantly lower than the preliminary range of 196-199 per cent, the agency said it still represents a major barrier for Vietnamese exporters.

Vietnam’s wood industry has established a strong position in the US, becoming an important supplier as American importers diversify their furniture supply chains. However, the impact of higher trade costs is already becoming visible.

US importers are becoming more cautious about signing long-term contracts, shortening order cycles and seeking greater cost-sharing from suppliers, potentially putting further pressure on exporters’ margins.

The bigger risk is that Vietnamese suppliers could gradually lose their position in US supply chains. Once importers shift to alternative sources and establish new inspection, logistics and product-standard systems, regaining market share could become considerably more difficult.

For Vietnamese wood exporters, maintaining customer confidence in the US market is therefore becoming more important than retaining orders at any cost, according to an industry expert.

The MAE is working with wood industry associations to help businesses respond to US anti-dumping and countervailing duty investigations, including the hardwood plywood case, as well as participate in the Section 301 investigation hearings.

The ministry is also proposing measures to address VAT-related difficulties in wood exports to provide timely support for businesses.

Wood exports reach $12.4 billion in first nine months High inflation dragging down Vietnamese wood exports External threats persist for economy Large inventories stifling wood production objectives Wood manufacturers on alert for unpredictable new year prospects Vietnam wood exports break barriers to exceed targets Vietnam’s wood exports surpass $17 billion

Organised by the Centre for Legal Support for Small and Medium-sized Enterprises under the Department of Civil and Economic Law of the Ministry of Justice in coordination with Vietlink Law Firm, the conference brought together experts to discuss practical legal issues arising from the growing use of e-commerce and digital platforms.

Hoang Ninh, deputy director of the Vietnam E-commerce and Digital Economy Agency under the Ministry of Industry and Trade, said the rapid growth of e-commerce platforms, social media and livestreaming was allowing businesses and household businesses to reach wider markets and scale up sales, but is also placing greater demands on internal controls.

“Sellers must provide information for identity verification, while intermediary e-commerce platforms are responsible for electronic verification before allowing sellers to conduct business. On platforms that provide online ordering functions, sellers must use their own payment accounts,” Ninh said.

Businesses consequently need clear internal arrangements covering product listings, pricing, promotions, account management and cash flows. Moving sales online does not remove requirements applicable to the goods themselves, with products requiring business licences or subject to specific conditions remaining subject to those rules when sold through e-commerce platforms.

An overview of the workshop. Photo: Vietlink Law Firm

Product information has also emerged as a significant compliance issue. Online consumers often rely on images, videos, descriptions, advertising and sellers’ claims when making purchasing decisions, making accurate information on product functions, origin, quality, prices, promotions and warranties particularly important.

“Sales content can no longer be treated solely as a marketing function. It needs to form part of a company’s broader compliance and control process,” Ninh said.

The concern is particularly relevant to livestreaming and the growing use of KOLs and KOCs as sales channels. Businesses need to control information provided to promoters, establish clear guidance on permitted content and ensure prices and promotional programmes can be updated promptly, Ninh added.

The compliance burden comes as e-commerce platforms, social media and multi-channel business models enable SMEs and household businesses to reach customers far beyond their traditional markets. Small manufacturers and retailers can promote products, receive orders, process payments and arrange delivery through digital platforms without major investment in conventional distribution networks.

Yet an online transaction can involve obligations across multiple areas, including electronic contracts, taxation, invoicing, advertising, intellectual property, consumer protection, personal data and sector-specific requirements.

Dr Le Thi Hoang Thanh, deputy director of the Department of Civil and Economic Law under the Ministry of Justice, said many businesses and household businesses still face difficulties in accessing, updating and applying regulations governing e-commerce.

“A lack of information and limited capacity to identify legal risks can lead to violations and disputes, increase compliance costs and affect business reputation and performance,” she said.

“Against the backdrop of continued development of the legal framework for the digital economy, the requirement is not simply to ‘know the law’ or comply when inspections take place, but to actively identify and control risks from the outset of organising business activities in the digital environment.”

She therefore believes that greater legal awareness and stronger risk management capabilities would help businesses reduce disputes, protect their legitimate interests, strengthen competitiveness, and build consumer confidence.

Dr Tran Minh Son, director of the Centre for Legal Support for Small and Medium-sized Enterprises under the Department of Civil and Economic Law of the Ministry of Justice, identified the fragmented legal framework as a particular challenge for SMEs and household businesses.

An online business may have to comply with rules covering business conditions, product origin, advertising, promotions, electronic contracts, taxation, invoices, consumer protection, personal data and intellectual property. For smaller businesses without dedicated legal resources, keeping track of these obligations can be difficult.

Son also warned against waiting until a dispute or inspection occurs before seeking legal advice.

“On the digital environment, an advertising error can quickly reach a large customer base, while a problematic product can be sold simultaneously across several platforms,” he said.

Tax and transaction records require closer management as businesses generate revenue through multiple platforms, payment methods and sales channels. Consistent reconciliation of transaction data can help minimise discrepancies and tax compliance risks.

Consumer protection and intellectual property present further challenges. Information displayed on online shops, including product images, technical specifications, prices, return policies and sellers’ commitments, can affect the rights and obligations of both parties. Digital content and trademarks can also be copied easily, creating risks of infringement and making protection of businesses’ own intellectual property increasingly important.

“The challenge, therefore, is not simply to add more regulations, but to make the existing legal framework more accessible and practical for businesses,” Son said.

He suggested tailoring legal support more closely to the practical needs of SMEs and household businesses. Guidance on setting up online shops, electronic contracts, tax obligations, intellectual property, data protection and complaint handling could be built around situations businesses are likely to encounter.

Electronic handbooks, online Q&A platforms, legal information portals, instructional videos, model contracts and policies could also make legal guidance more accessible and help businesses manage compliance costs.

Multi-channel shopping is vital for e-commerce growth Multi-channel shopping is on the rise, becoming a vital factor which will help retail businesses expand sales channels, thereby increasing their reach to customers and enhancing the competitive edge given the online shopping boom in Viet Nam.

Vietnam in global top 10 for e-commerce growth E-commerce in Vietnam has recorded outstanding growth of 16-30 per cent per year over the last ten years, with the market size expected to reach $20.5 billion in 2023.

Barriers remain as firms pursue e-commerce growth with EU Opportunities for Vietnamese businesses in the EU cross-border e-commerce market are growing, but barriers related to regulations and legal challenges need addressing.