Industrial and trade developments from the press review on December 4, 2019
I. Major Retail Merger and Macroeconomics
- Billionaire Merger: On December 3, 2019, Vingroup signed a principle agreement to merge VinMart, VinMart+, and VinEco into Masan Group.
- Strategic Goal: This high-profile deal aims to strengthen domestic retail power and create a closed-loop value chain.
- Retail Growth: Notably, total retail sales and consumer service revenue for November grew by 11.8%, the highest increase for this period in six years.
- Trade Surplus: Vietnam achieved a record trade surplus of over $9.1 billion during the first 11 months of 2019.
II. Energy and Renewable Projects
- Refinery Savings: Bình Sơn Refining (BSR) could potentially save 800 billion VND due to a 0% import tax on crude oil from Azerbaijan.
- Wind Power: Gia Lai province officially launched construction on the HBRE Chư Prông wind farm (50MW) in partnership with a Thai corporation.
- Global Oil Trends: Global oil prices fluctuated as the market anticipates that OPEC+ might increase production cuts.
- Transit Contracts: Additionally, Ukraine and Russia signed a surprise 10-year contract for oil transit services across Ukraine.
III. Automotive and Heavy Industry
- Car Price Debate: The government is currently discussing potential tax and fee reductions to help lower domestic automobile prices.
- Import Surge: Although monthly volume dipped slightly, total car imports in 11 months increased by 101.3% compared to last year.
- Production Slowdown: The Industrial Production Index (IIP) for November grew by only 5.4%, the lowest growth rate recorded in 2019.
- Iron Ore: Specifically, iron ore prices rose recently due to global supply shortages and low port inventories in China.
IV. Mining and Mineral Extraction
- Production Shifts: Notably, coal production is increasing while oil extraction has shown a decline.
- Coal Targets: TKV (Vinacomin) aims to produce 40.5 million tons of coal in 2019 to meet domestic demand.
- Precursor Control: The Ministry of Industry and Trade (MoIT) is tightening the management of industrial precursors to prevent illegal drug production.
V. Agriculture, Light Industry, and Exports
- Dairy Milestone: TH True Milk became the first Vietnamese dairy brand officially authorized to export to the Chinese market under a new protocol.
- Textile Struggles: While textile exports reached nearly $30 billion, new orders for next year have dropped to only 80% of previous volumes.
- Seafood Challenges: Conversely, seafood exports may miss the $10 billion target due to price and market difficulties for shrimp and catfish.
- Steel Protection: Therefore, MoIT recommends that steel firms become self-sufficient in raw materials to avoid international trade defense lawsuits.
VI. Digital Economy and Consumer Protection
- Online Friday 2019: Authorities launched the Online Friday event, featuring thousands of shopping deals from major brands to boost e-commerce.
- Dividend News: Vinamilk announced it would spend over 1,741 billion VND to pay the second round of 2019 dividends.
- Electricity Services: EVNHANOI launched a new mobile app offering rewards to encourage digital customer engagement.
Proactive Query: Would you like more details on the specific tax policies being discussed for the automobile industry or more information on the VinMart-Masan merger?
