Industry and Trade Press Review for October 24, 2018

I. Highlighted News and Energy Market

1. Fuel Price Warning: Although domestic gasoline prices recently saw a slight decrease (144 – 224 VND/liter), experts warn of a strong upward reversal in the medium and short term due to the impact of U.S. sanctions on Iranian oil exports.
2. Price Stabilization Fund (BOG): The fund has effectively helped stabilize the market and control inflation. As of September 30, the balance of the Gasoline BOG Fund at Petrolimex remained at over 1,787 billion VND,.
3. Fuel Theft Incident: Reports of “gasoline bleeding” (drivers stealing fuel) on Hai Van Pass have caused outrage among retailers, who report losses of over 2,500 liters in nine months. Petrolimex has admitted to lax supervision and is being urged to take strict action,.
4. Global Oil Trends: Global oil prices plunged nearly 5% (WTI and Brent dropped approximately $10/barrel from their October peaks) following stock market sell-offs and Saudi Arabia’s commitment to meeting global demand,.

II. Macroeconomics and Global Strategy

1. Economic Achievement: 2018 marks the second consecutive year that Vietnam has met all socio-economic development targets, though experts emphasize the need for higher growth quality moving forward,.
2. Trade War Impacts: Amid the U.S.-China trade tensions, Japan and China are implementing specific national interest policies, sparking debates on regional economic shifts,.
3. The Sharing Economy: There is ongoing debate regarding whether Vietnam has a true “sharing economy” model, as the impacts of platforms like Uber, Grab, and Airbnb have yet to be fully evaluated.
4. Corporate Social Responsibility (CSR): CSR is increasingly viewed as a vital requirement for businesses to create a competitive advantage during deep international integration,.

III. Heavy Industry and Manufacturing

1. Coal Production Surge: The Vietnam National Coal-Mineral Industries Holding Corporation (TKV) has increased its 2017 production target to over 40 million tons, successfully reducing inventory to approximately 6 million tons.
2. Automobile Market Concerns:
   • Despite the 0% import tax within ASEAN, car prices in Vietnam remain high, leaving consumers’ “cheap car dream” unfulfilled.
   • Luxury cars and parts have been discovered “disguised” as scrap in containers to evade billions of VND in taxes,.
   • Jaguar Land Rover temporarily suspended production in the UK due to a 46% sales slump in China.
3. Steel Sector: While steel exports continue to grow, domestic firms face a rising number of anti-dumping lawsuits from importing countries. Simultaneously, MoIT is investigating anti-dumping measures against certain steel products from China and South Korea.
4. Tire Industry: Listed tire companies reported poor business results for the first nine months of 2018, with declining profits and low chances of meeting annual targets,.

IV. Light Industry and Domestic Market

1. Textile and Fashion:
   • Vietnamese firms are seeking to affirm their brands at the Tokyo Autumn Fashion Exhibition,.
   • Thanh Cong Textile (TCM) is struggling with a 95 billion VND debt from the bankruptcy of U.S. retailers Sears and Kmart.
   • Conversely, Hanosimex reported a nearly doubled profit of 48.6 billion VND.
2. Labor Unrest: Over 3,000 workers at Ivory Vietnam (Thanh Hoa) went on strike to demand higher wages and improved allowances,.
3. Dairy and Food: The domestic dairy industry is reportedly capable of meeting the 514,000-ton demand for the “School Milk” program without additional supplements.
4. Anti-Smuggling: The Ministry of Finance proposed a reward of up to 200 million VND per case for information leading to the seizure of smuggled foreign cigarettes,.

V. Import-Export and International Integration

1. Catfish (Tra Fish) Success: Exports reached $1.59 billion (up 22.6%) by September. While growth in the Chinese market is slowing down, other major markets show positive signs,.
2. Wood Exports to EU: The VPA/FLEGT agreement signed with the EU acts as a “passport” for Vietnamese wood products to enter the European market more easily,.
3. Rice Export Policy: VCCI has proposed removing rice exports from the list of “conditional business lines” to facilitate trade.
4. EVFTA Prospects: The European Commission has moved to sign the EU-Vietnam Free Trade Agreement (EVFTA), which is expected to drive a new wave of FDI into Vietnam,.

VI. Corporate and Trade Promotion

1. Coal for Electricity: EVN and TKV estimate that approximately 29 million tons of coal will be required for power production in 2019.
2. Trade Events:
   • VIIF 2018 opened in Hanoi with over 250 participating enterprises.
   • Hanoi is set to host a major “supply-demand connection” conference in November focusing on regional agricultural specialties.
3. Grab-Uber Monopoly: Traditional taxi associations are urging MoIT to quickly conclude the investigation into Grab’s acquisition of Uber’s Southeast Asian operations,.

Analogy: The Vietnamese fuel market is currently like a seesaw in a storm; while the domestic price has tipped slightly down for the moment, global pressures and geopolitical sanctions act like heavy weights that experts fear will soon slam the other side of the seesaw up, causing prices to rise sharply again.