Industry and trade developments reported on 30 December 2019
A. Trade Policy and Export Management
- Origin Fraud and Export Integrity
- Excel Bicycle TNHH (Binh Duong), a 100% Chinese-invested company, was penalised for falsely labelling Chinese-made bicycles as “Made in Vietnam” to exploit preferential tariffs when exporting to the US,.
- The company imported 100% of components from China and performed only simple assembly without further processing, yet claimed Vietnamese origin.
- Export Targets and Integration
- Following a record-breaking $500 billion total trade turnover in 2019, the Prime Minister has tasked the Ministry of Industry and Trade (MoIT) with reaching an export milestone of $300 billion in 2020,.
- While overall trade is strong, rice exports faced a quiet 2019 with declining values, necessitating a shift toward higher quality and market diversification.
- Seafood exports showed growth, reaching $2.9 billion in the first 11 months of 2019 (up 8.4%), driven by tuna and sea fish, though squid and octopus exports declined.
- To support high-value exports, 96 “Vietnamese Reputable Bird’s Nest Houses” have been certified to meet international food safety and environmental standards,.
B. Energy Development and Resource Planning
- The Coal Power Debate
- Southern provinces, including Long An, Bac Lieu, and Tien Giang, have opposed new coal-fired power projects due to environmental pollution concerns,.
- Conversely, the MoIT and EVN argue that coal power remains essential because medium and large hydropower sources are exhausted, while wind and solar remain unstable and expensive for the general population,.
- Renewable Energy and Grid Integration
- Rooftop solar remains highly attractive in Southern Vietnam despite a proposed reduction in the purchase price from 9.35 cent/kWh to 8.38 cent/kWh,.
- The MoIT has proposed adding 12 wind and solar projects (exceeding 3,600 MW) to the national master plan, though the Ministry of Planning and Investment suggests not attaching specific investor names to these projects during the planning phase,.
- Regional Energy Cooperation
- The 220kV Chau Doc – Ta Keo transmission line celebrated 10 years of operation, having transmitted approximately 10 billion kWh to Cambodia,.
C. Macroeconomics and Market Management
- 2020 Economic Indicators
- The National Assembly has set a GDP growth target of 6.8% and seeks to keep the Consumer Price Index (CPI) below 4% for 2020.
- 2019 GDP growth exceeded all forecasts, providing a strong foundation for the 2016–2020 socio-economic period.
- Pork Supply and Price Stabilisation
- To combat “price fever” and supply shortages caused by African Swine Fever, the government plans to import 100,000 tons of pork for the Lunar New Year,,.
- Major retailers like Central Retail (Big C) have committed to selling pork at cost (zero profit) to help stabilise the market,.
- In Ho Chi Minh City, authorities have proposed maintaining pork prices at least 10% lower than market rates through price stabilisation programmes.
- Market Surveillance and Food Safety
- Authorities in Lang Son seized and destroyed nearly 6,000 bottles of smuggled fruit-ripening chemicals (Ethrel) and pesticides of unknown origin.
- Market management forces in Bac Giang intercepted 1.1 tons of smuggled and “dirty” animal products, including pig trotters and bones, destined for Hanoi,.
D. Industrial and Corporate Developments
- Petroleum and Global Markets
- Proposals are being considered to further open the petroleum market to foreign investors, building on the success of Idemitsu Q8.
- Global oil prices reached $61.73/barrel (WTI) as of 30 December, supported by optimism regarding the US-China trade deal and OPEC+ production cuts,.
- Corporate M&A and Divestment
- ThaiBev, acting through Sabeco, has increased its ownership in Saigon – Lam Dong Beer to 52.91%.
- In contrast, Vinachem’s attempt to divest from Duc Giang Chemical (DGC) saw very low investor interest, with only 200 shares registered out of 11.4 million offered,.
- Innovation in Public Services
- EVN HCMC has introduced a “Grab-style” app to allow customers to monitor electrical repair progress and increase transparency.
- Petrolimex Hanoi launched its first petrol station integrated with an automatic car wash, aiming to promote a “Green-Clean” environment for the capital,.
