Industry and trade developments reported on 18 December 2019

A. Governance, Administrative Reform, and Intellectual Property

The Ministry of Industry and Trade (MoIT) and the Ministry of Science and Technology (MST) are enhancing their collaboration to increase sanctions against counterfeit goods and intellectual property (IP) infringements.
Minister Trần Tuấn Anh has directed the General Department of Market Management to systematically organise propaganda and enforcement to adjust investment and distribution behaviours for products at high risk of IP violation.
The two ministries aim to review legal frameworks to address the root causes of trade fraud and origin violations.

Vietnam’s business environment index rose 13 places in 2018 to rank 69th out of 190 economies according to the World Bank.
Standard & Poor’s (S&P) upgraded Vietnam’s long-term national credit rating from “BB-” to “BB” with a “stable” outlook.
National foreign exchange reserves reached a record high in 2019.

The World Bank identified four major limitations in Vietnam’s capital market, noting that capital mobilisation remains overly dependent on an overloaded banking credit system.
The Vietnamese government is committed to the 2030 Agenda, focusing on sustainable production and consumption models as a long-term development strategy.

B. International Trade and Trade Defense

The US Department of Commerce (DOC) officially decided to impose a tax of up to 456% on certain cold-rolled and corrosion-resistant steel products from Vietnam.
This ruling applies to products using raw materials imported from South Korea and Taiwan, which are already subject to US anti-dumping and anti-subsidy duties.

Nike Vietnam has become the group’s largest global production hub, producing approximately 300 million pairs of shoes annually with an export value of $6.7 billion in 2019.
Starting in 2020, Vietnamese lychees will be officially exported directly to the Japanese market, provided they meet strict plant quarantine and food safety standards.
Regional integration continues as member states move toward signing the RCEP in 2020, which is seen as a commitment to free trade against rising protectionism.

Authorities at Cát Lái port discovered 111 containers of wood exports falsely declared as wood chips (0% tax) to hide their true nature as sawn timber (25% tax).
MoIT issued Circular 37/2019/TT-BCT (effective 15 January 2020) to provide detailed regulations on trade defense measures.
There is a call to fully implement the issuance of Certificates of Origin (C/O) through the National Single Window to prevent fraud and protect the reputation of Vietnamese goods.

C. Energy and Natural Resources

MoIT is drafting amendments to Decree 83/2014/NĐ-CP regarding petroleum business, focusing on transparency, quality, and maintaining the Price Stabilisation Fund.
PVGas estimated its 2019 total revenue at 76,558 billion VND and profit at 13,945 billion VND, exceeding targets by 20% and 46% respectively.
Global oil prices (WTI) have hovered near a three-month high at approximately $60.94/barrel due to improved global trade outlooks.

National hydropower reservoirs are facing a severe water shortage of over 11 billion cubic metres compared to normal operating levels, leading to a projected electricity shortfall of 4.82 billion kWh.
Some provinces, such as Long An, are requesting the government to shift proposed power projects from coal to Liquefied Natural Gas (LNG) due to environmental concerns.

Vinacomin (TKV) reported 11-month revenue of over 120,000 billion VND (94% of the annual plan). Coal supplied for electricity reached 32.71 million tons, a 24% increase year-on-year.
The group is increasing automation and computerisation in production and management to improve efficiency and safety.

D. Domestic Market and Consumer Promotion

Pork prices have surged 60–95% since the beginning of the year due to African Swine Fever, leading to concerns about “goods hoarding”.
The Ministry of Agriculture and Rural Development (MARD) is inspecting large-scale farms to ensure supply and promote alternative livestock production.
MoIT noted that increasing pork imports is difficult because global prices are also rising.

The OCOP (One Commune, One Product) program has been implemented nationwide, with 604 products officially recognised and a target of 3,800 standardised products by 2020.
Various trade fairs, such as “Vinh Orange Week” in Hanoi and “Vietnamese Goods Fairs” in Da Nang, are being held to stimulate year-end consumption.
Small and medium enterprises are adopting the CheckVN app for one-touch traceability to enhance competitiveness and transparency.

E. Industrial and Corporate Updates

Indonesia surpassed Thailand for the second consecutive month in car exports to Vietnam, with 5,807 units imported in November.
The Automechanika 2020 exhibition is scheduled for March 2020 in Ho Chi Minh City, featuring 390 domestic and international units to showcase the “Made-in-Vietnam” auto supply chain.

Petrolimex Kien Giang opened its 34th petrol station, expanding its retail network.
Petrovietnam (PVN) leadership participated in the Vietnam Executive Leadership Program (VELP) in the US to work with American oil and gas partners.
The Ministry of Finance has proposed reducing import taxes on dairy products by 2–5% to diversify raw material sources and lower consumer prices.