Industry and trade developments reported on 23 December 2019
A. Macroeconomic Environment and Enterprise Development
- Prime Minister’s Conference with Enterprises
- Prime Minister Nguyễn Xuân Phúc chaired the third dialogue with the business community, focusing on developing the nation’s 760,000 active enterprises through integration and sustainability.
- In 2019, approximately 136,000 new enterprises were established with a total registered capital of 1.7 quadrillion VND.
- Despite high GDP growth and stable macroeconomic indicators, Moody’s downgraded Vietnam’s credit outlook, a move cited as having “unreasonable points”.
- Global Economic Context
- Experts predict an unpredictable 2020 due to the complex US-China trade war and geopolitical tensions.
- China has announced tariff reductions on 850 items starting in early 2020 to optimise its trade structure.
B. Trade Performance and International Integration
- Export and Import Milestones
- By 15 December 2019, Vietnam’s total import-export turnover reached nearly $493 billion, with a record trade surplus of over $10.6 billion.
- The textile and garment sector estimated 2019 export turnover at $39 billion, achieving 7.55% growth but falling short of the $40 billion target due to global trade conflicts.
- Trade Defense and Origin Fraud
- The United States is strictly questioning the origin of Vietnamese products to prevent tariff evasion by multinational companies relocating from China.
- Canada has initiated an anti-dumping and anti-subsidy investigation into corrosion-resistant steel (CORE) from Vietnam.
- The Ministry of Planning and Investment is intensifying the management of Foreign Direct Investment (FDI) to prevent trade remedy circumvention.
- Agricultural Export Challenges
- Pepper exports face difficulties due to low global prices and high supply.
- There are significant congestion issues at borders for seasonal fruits because Vietnamese and Chinese harvest times often overlap.
- Positive developments include the preparation for the first batch of lychee exports to the Japanese market following GlobalGAP standards.
C. Energy and Infrastructure Concerns
- Critical Power Supply Risks
- The Vietnam Electricity (EVN) group warns of difficult operations ahead, as gas supplies for power generation currently meet only 66% of demand (approximately 20 million m³ per day against a requirement of 30.3 million m³).
- Low water levels in major hydropower reservoirs, particularly on the Da River, further threaten energy security.
- EVN celebrated its 65th anniversary and received the First-Class Labour Order for its contributions to national development.
- Stalled Key Projects
- Hundreds of trillions of VND remain “frozen” in stalled key projects like Tisco-II, Thai Binh 2 Thermal Power, and Song Hau 1 Thermal Power due to institutional bottlenecks.
- Oil, Gas, and Chemicals
- The Vietnam Oil and Gas Group (PVN) expressed caution regarding 2020 growth prospects despite meeting 2019 targets early.
- PVFCC (DCM) has set a revenue target of 8 trillion VND for 2020, intending to commission the Ca Mau NPK plant.
D. Domestic Market and Social Issues
- Pork Supply and Price Stabilisation
- The Ministry of Agriculture and Rural Development (MARD) confirmed it does not issue pork import quotas, as imports follow standard legal regulations.
- Authorities are urged to stop illegal cross-border smuggling of pigs to protect domestic supply and manage “price fever” ahead of the Lunar New Year.
- Experts suggest consumers switch to poultry or seafood to reduce pressure on pork prices.
- Corporate and Retail Activity
- Vinamilk successfully acquired a 75% stake in GTNFoods after a 3.4 trillion VND investment.
- The Japanese pharmacy and cosmetic chain Matsumoto Kiyoshi has officially entered the Vietnamese market through a joint venture.
- More than 10,000 containers of scrap and waste remain backlogged at major seaports, requiring urgent inter-ministerial handling.
- Social Responsibility and Environment
- Ministry of Industry and Trade (MoIT) staff participated in the “Red Sunday” (Chủ nhật Đỏ) blood donation event.
- Air pollution in Hanoi and Ho Chi Minh City reached alarming levels, with PM2.5 concentrations exceeding limits by 3–4 times.
