Industrial and trade developments from the press review on May 16, 2018
This summary outlines the key . It focuses on tax policy changes, major leadership appointments, and shifting trade dynamics with international partners.
I. Administration and Policy Reforms
- New Leadership: Specifically, Prime Minister Nguyễn Xuân Phúc appointed Mr. Đặng Hoàng An as the new Deputy Minister of Industry and Trade.
- Fuel Tax Increase: Furthermore, the Ministry of Finance proposes raising the environmental tax on gasoline to its maximum limit. Consequently, the tax would reach 4,000 VND per liter to match regional prices and boost the state budget.
- Market Renovation: Regarding infrastructure, Hanoi plans to spend 11,800 billion VND on renovating and building 235 markets. However, experts warn authorities to strictly manage funds to avoid “group interest” issues.
- Private Sector: Meanwhile, the government continues to push for administrative reforms to make the private economy a major growth driver.
II. Energy and Petroleum Insights
- Refinery Milestone: Notably, the Nghi Son Refinery successfully launched its commercial operations and first gasoline products. Therefore, this facility is expected to significantly reduce Vietnam’s reliance on imported fuel.
- Petrolimex Dividends: Additionally, Petrolimex approved a 30% cash dividend for its 2017 performance. Specifically, the Ministry of Industry and Trade will receive nearly 2,945 billion VND from this payout.
- BSR Anniversary: In addition, Bình Sơn Refining and Petrochemical (BSR) celebrated its tenth anniversary of operation in Central Vietnam.
- Global Oil Trends: Regarding global markets, oil prices rose due to anticipated supply drops following U.S. sanctions on Iran.
III. Industrial and Trade Performance
- Automobile Imports: Specifically, Thai vehicles dominated the import market in April, accounting for 93% of total units.
- Ore Export Concerns: Conversely, approximately 80% of Vietnam’s ore exports were sold to China at very low prices. In fact, the average price for these exports was only 560,000 VND per ton.
- FDI Attraction: Furthermore, Vietnam remains an attractive destination for foreign investors, with South Korea and Japan leading total investment.
- Habeco Outlook: In contrast, Habeco expects its 2018 profits to decrease by 7% compared to the previous year.
IV. Agriculture and Export Markets
- Bilateral Trade: Specifically, exports to India surged by 111% during the first quarter of 2018.
- Rice Contracts: Moreover, Indonesia confirmed it will import 300,000 tons of rice from Vietnam to ensure its national supply.
- Pork Exports: Meanwhile, China is currently evaluating risk assessments to allow official imports of Vietnamese pork and dairy.
- Market Volatility:
- Heo hơi (Pork): Prices are rising sharply and approaching 50,000 VND per kg.
- Vegetables: However, squash prices in Hòa Bình crashed to only 1,500 VND per kg due to a lack of buyers.
V. Domestic Market and Integration
- Digital Payments: Regarding utilities, nearly 82% of EVNHCMC customers now pay their electricity bills through electronic methods.
- Convenience Stores: Furthermore, retail chains like Circle K and Vinmart+ are expanding rapidly into residential areas with specialized services.
- Quality Control: Finally, authorities are tightening the management of “hand-carried” luxury goods to prevent fraud and tax evasion.
