Industrial and trade developments on May 25, 2018

I. Energy and Fuel Policy Controversies

• Fuel Tax Debate: Specifically, expert Huỳnh Thế Du clarified his proposal for an environmental tax of 10,000–20,000 VND per liter,.
• Public Misunderstanding: However, he stated that the Ministry of Finance quoted him out of context, leading to public confusion,.
• Economic Impact: Furthermore, experts warn that rising fuel prices could cause the Consumer Price Index (CPI) to “explode”,.
• Global Trends: Meanwhile, global oil prices hit a two-week low after Russia signaled a potential increase in production.
• Retail Innovation: Additionally, Petrolimex Saigon officially launched a self-service fuel pumping method for consumers.

II. Macroeconomics and Administrative Reform

• Growth Targets: Regarding the future, Prime Minister Nguyễn Xuân Phúc set a GDP growth target of 6.8% for 2019.
• Quality Improvement: Notably, officials highlighted that the quality of economic growth in 2017 showed positive improvements.
• Personnel Inspections: Specifically, Deputy Prime Minister Trương Hòa Bình ordered stricter inspections of official recruitment and appointments,.
• Resource Management: Regarding growth strategy, some National Assembly delegates argued that the economy should no longer rely on oil extraction.
• Waste Prevention: Furthermore, delegates called for an end to wasteful public investment and delayed policy implementation.

III. Corporate News and Management

• Vinachem Debt: Regarding heavy industry, Vinachem announced it will no longer bail out the Ninh Binh Urea plant.
• Financial Strain: Specifically, the parent group is facing its own financial difficulties and cannot cover the plant’s massive debts.
• Transfer Pricing: Meanwhile, experts are investigating why foreign retailers report chronic losses while domestic rivals like VinMart remain profitable,.
• Vinamilk Performance: In contrast, Vinamilk remains the most chosen brand in Vietnam and plans a 2,177 billion VND dividend payout,.
• Audit Guidance: Additionally, Customs officials provided new guidance for Samsung HCMC regarding the use of imported raw materials.

IV. Import-Export and Agricultural Trade

• Rice Trade Failure: Notably, Vietnamese enterprises failed to win any bids to supply rice to the Philippines.
• Thai Competition: Instead, Thai companies won most of the contracts by offering surprisingly low prices,.
• Export Success: Conversely, rice export turnover for the first four months of 2018 still rose by nearly 40%.
• Seafood Growth: Specifically, Vietnam has surpassed Thailand to become the top shrimp supplier to the Canadian market.
• Steel Regulation: Regarding trade defense, the US concluded its investigation into Chinese steel “disguised” as Vietnamese products,.

V. Domestic Market and Industry Trends

• Agricultural Price Drops: Specifically, farmers face severe losses as prices for mít Thái (jackfruit) and vải (lychee) have crashed,.
• Market Surplus: Similarly, squash and sweet potato crops are in desperate need of “rescue” due to a lack of buyers,.
• Automotive Struggles: Regarding industry, car importers continue to complain about the costs and delays caused by Decree 116.
• Chinese Policy: Furthermore, China announced it will reduce import taxes on finished cars to 15% starting in July.
• New Competition: Finally, the Indonesian ride-hailing app Go-Jek announced a $500 million investment to enter the Vietnamese market.