Industrial and Trade developments dated May 23, 2018
I. Corporate Debt and Administrative Issues
- Ninh Binh Urea Crisis: Specifically, the Ninh Binh Urea plant remains trapped in chronic losses and heavy debt.
- Financial Burden: Consequently, the company owes over 2,658 billion VND and $1.69 million to creditors.
- Land Recovery Struggles: Meanwhile, a Petrolimex subsidiary is refusing to hand over public land in District 4, Ho Chi Minh City.
- Lack of Cooperation: Furthermore, the Ministry of Industry and Trade has not yet responded to local recovery requests.
II. Trade Integration and Policy Reforms
- CPTPP Progress: Regarding trade, the CPTPP agreement is expected to take effect in early 2019.
- High Standards: Notably, the agreement maintains high standards despite some suspended obligations.
- Reform Needs: Therefore, Vietnam must reform its business environment to maximize these new opportunities.
- Gas Regulations: In addition, the government is finalizing a new decree for the gas business.
- Safety Standards: Specifically, this draft adds strict rules for fire safety and measurement.
III. Agriculture and Export Markets
- Market Shifts: Regarding exports, China is no longer an “easy” market for agricultural products.
- Growth Drivers: However, some officials disagree that growth relies solely on mining and FDI.
- Seafood Success: In contrast, shrimp exports to the EU grew by 17% in early 2018.
- Regional Growth: Furthermore, export turnover to India increased by an impressive 104%.
- Industry Support: Lastly, supermarkets are currently “rescuing” pumpkins and squash for struggling farmers.
IV. Energy and Petroleum Sector
- Oil Price Volatility: Globally, oil prices fluctuated due to sanctions against Iran and Venezuela.
- PVOil Valuation: Locally, the starting price for PVOil shares is expected to exceed 20,000 VND.
- Safety Management: Meanwhile, technicians successfully handled a gas leak at the PM3-Ca Mau station.
- Corporate Strategy: Additionally, PVN is restructuring its management and exploring cooperation with Australian firms.
V. Consumer Protection and Domestic Trends
- E-commerce Inspection: Specifically, authorities will inspect Lazada due to numerous customer complaints.
- Competition Investigation: Similarly, the Ministry is investigating the Grab-Uber merger for potential violations.
- Consumer Habits: In terms of retail, Vietnamese consumers spend approximately $3.4 billion annually on beer.
- Electricity Fraud: Furthermore, many landlords are illegally overcharging tenants for electricity.
- Dairy Tax Conflict: Finally, the sugar industry opposes a proposed 10% special consumption tax on soda.
