Industrial and trade developments from the press review on May 15, 2018

I. International Trade and Macroeconomics

• Credit Upgrade: Notably, Fitch Ratings upgraded Vietnam’s credit rating to BB with a stable outlook.
• Government Commitments: Specifically, the government pledged to limit public debt and reform state-owned enterprises.
• Export Surge: Furthermore, exports to China increased by nearly $2.7 billion compared to 2017.
• Agricultural Success: Specifically, fruit and vegetable exports to China surpassed the $1 billion mark.
• Market Expansion: Additionally, exports to India grew by an impressive 111% in the first quarter.
• Capital Barriers: However, local firms still face significant capital barriers when entering international retail channels.

II. Automotive Industry and Decree 116

• US Concerns: Regarding policy, the US Automotive Policy Council expressed concern over Decree 116.
• Strict Regulations: Specifically, they argued that the Type Approval (VTA) requirements are stricter than necessary.
• Import Dominance: Meanwhile, Thai vehicles accounted for 93% of all imported cars in April.
• Part Exports: Interestingly, Vietnam has become a net exporter of automobile parts and components.
• Innovation Efforts: Notably, Thaco is upgrading its factories to better integrate into the regional market.

III. E-commerce and Retail Evolution

• Market Entry: Regarding retail, the market is shifting with the arrival of Amazon.
• Retail Success: Moreover, experts emphasize that foreign retailers must deeply understand the local market.
• New Regulations: Specifically, MoIT is drafting rules to manage business activities on social media.
• Prohibited Goods: Consequently, online sellers are banned from trading guns, tobacco, and alcohol.
• Origin Scandals: Additionally, the Mumuso chain is under investigation for allegedly misrepresenting its brand origin.

IV. Energy and Infrastructure

• Smart Grids: Regarding utilities, Germany is providing ODA to help Vietnam develop smart power grids.
• Conservation Alerts: Furthermore, EVN urged citizens to save electricity during the current heatwave.
• Oil Prices: Meanwhile, global oil prices increased as the market oversupply began to fade.
• Global Trends: In contrast, OPEC predicts that the US will drive most global oil growth.

V. Financial Markets and Virtual Currency

• Regulatory Gaps: Regarding finance, the government is struggling to address legal gaps in virtual currency.
• Enforcement Actions: Specifically, authorities fined Bitcoin Vietnam for operating an unauthorized social network.
• Future Policy: However, officials are advised to create clear rules rather than total bans.
• Dividend News: Notably, Vinamilk and Habeco announced significant cash dividend payments for shareholders.
• Stock Bonuses: Similarly, May Song Hong plans a 100% stock bonus to increase capital.

VI. Domestic Commodity Trends

• Price Increases: Specifically, pork prices rose sharply because the local supply is currently insufficient.
• Price Crashes: Conversely, farmers in some regions face falling prices for squash and watermelon.
• Retail Support: Therefore, retailers like Big C have launched programs to “rescue” these agricultural products.
• Profitable Seasons: Finally, dragon fruit farmers in the Mekong Delta earned high profits this season.