Industry and Trade developments from 27 December 2019
A. Year-End Review and Macroeconomic Achievements
- 2019 Performance Summary
- The Ministry of Industry and Trade (MoIT) held a year-end conference chaired by Prime Minister Nguyễn Xuân Phúc, noting that the sector met or exceeded all 12 assigned government targets,.
- National GDP growth reached 7.02%, surpassing the National Assembly’s target of 6.6%–6.8%.
- Domestic enterprises showed significant progress, contributing more to industrial growth and reducing reliance on the Foreign Direct Investment (FDI) sector.
- Growth Drivers and Strategic Tasks
- Industrial production increased by an estimated 9.1%, higher than the original 9% target.
- Key drivers for future growth include maintaining macroeconomic stability, fostering a peaceful environment for international cooperation, and a consistent commitment to global integration.
B. International Trade and Import-Export Highlights
- Record-Breaking Trade Turnover
- Vietnam’s total import-export turnover surpassed the $500 billion milestone for the first time, reaching approximately $517 billion,,.
- The country recorded a record trade surplus of nearly $10 billion, which has positively impacted the balance of payments and macroeconomic stability,.
- Market Expansion and Free Trade Agreements (FTAs)
- Integration was strengthened through the implementation of the CPTPP and the signing of the EVFTA.
- There are now 34 commodity groups with an export turnover exceeding $1 billion.
- While fruit exports faced some decline, new opportunities emerged, such as the official approval for Vietnamese lychees to enter the Japanese market,.
- Trade Defense and Anti-Fraud Measures
- Authorities are intensifying efforts to combat origin fraud and illegal transshipment to protect legitimate businesses amidst rising global protectionism.
- Malaysia officially applied a five-year anti-dumping tax on certain cold-rolled steel products imported from Vietnam, effective from 25 December 2019.
C. Energy and Heavy Industry Updates
- Petroleum Management
- The MoIT is drafting amendments to Decree 83/2014/NĐ-CP to revise the petroleum base price formula.
- In Hanoi, the consumption of E5 RON92 biofuel now accounts for 45% of total petrol sales.
- Petrolimex launched its first petrol station in Hanoi integrated with an automatic car wash system to promote a green environment.
- Electricity and Coal Sectors
- For 2020, the projected electricity production and purchase volume is set at 265.4 billion kWh.
- Prime Minister Nguyễn Xuân Phúc urged EVN to ensure a stable and high-quality power supply for the national economy.
- The Vietnam National Coal-Mineral Industries Holding Corporation (TKV) successfully completed its 2019 plan early following a 90-day production “sprint”.
D. Domestic Market and Consumer Trends
- Pork Supply and Price Stabilisation
- To address pork shortages caused by African Swine Fever, the government is utilizing 730,000 tons of alternative food (poultry, seafood, and other livestock) for the Lunar New Year.
- Chicken prices have risen as consumers increasingly switch from pork to poultry.
- Trade Promotion and “Vietnamese Goods” Campaign
- Various “Vietnamese Goods” weeks were held in Da Nang and Hanoi (featuring Yen Bai agricultural products) with discounts up to 49% to stimulate year-end shopping,.
- E-commerce growth has positioned Vietnam as one of the most potential markets in the ASEAN region.
- Corporate Mergers
- Vinamilk increased its ownership in GTNFoods to 75% and has appointed its leadership personnel to manage the company,.
E. Administrative Reform and Digitalisation
- Public Service Integration
- The MoIT is preparing to integrate administrative procedures regarding import-exports into the National Public Service Portal in 2020.
- Efforts continue to streamline business conditions, though reports indicate some instances of “removing old but adding new” hurdles,.
- Smart Support
- National trade promotion programs are being redirected to help businesses join higher-value tiers in the global value chain.
