Industry and Trade Press Review on May 22, 2018
I. Tax Policy and Macroeconomics
- Tax Warnings: First, experts warn that rapid tax increases may harm the economy long-term.
- Sugar Tax Impact: Specifically, the proposed sugar tax might reduce state revenue by 4,000 billion VND.
- Budget Balancing: Furthermore, economic experts emphasize balancing state spending rather than just increasing taxes.
- Growth Targets: Regarding performance, 2017 GDP grew by 6.81%, exceeding the initial goals.
- Customs Revenue: However, Free Trade Agreements (FTAs) will significantly reduce customs revenue this year.
II. Corporate Audits and Governance
- Financial Errors: Regarding state firms, audits revealed major errors at TKV, Sabeco, and Habeco.,
- Dividend Issues: Specifically, the State Audit requested Habeco to pay 1,700 billion VND in dividends.,
- Management Changes: Moreover, Habeco and BSR both announced changes to their top leadership positions.,,
- Legal Validity: In contrast, lawyers claim Sabeco’s temporary board appointment lacks legal standing.
- Transfer Pricing: Additionally, some foreign retailers reporting continuous losses may be involved in tax evasion.,
III. Energy and Infrastructure
- Oil Prices: In the energy sector, global oil prices rose due to political instability in Venezuela.
- Power Supply: Meanwhile, Northern provinces will not face power cuts during extreme heatwaves.
- Island Electrification: Specifically, the Con Chim oasis in Binh Dinh recently received national grid access.
- Price Regulation: Finally, landlords overcharging tenants for electricity may face fines up to 10 million VND.
IV. Manufacturing and Automotive Industry
- Regulatory Obstacles: Regarding automobiles, an inter-departmental team is addressing difficulties caused by Decree 116.,
- Trade Relations: Furthermore, the US is seeking easier car exports into the Vietnamese market.,
- Market Pressure: In contrast, truck inventories are high, while Chinese cars are returning with low prices.,
- Large Investments: Moreover, Tan Mai Group is investing 4,000 billion VND into two paper mills.
- Textile Expansion: Similarly, Hanosimex is launching new garment projects to meet export orders.,
V. Domestic Market and Export Trends
- Export Success: First, cashew exports reached over $1 billion in just four months.,
- African Markets: Moreover, the African CFTA agreement offers new opportunities for Vietnamese goods.,
- Local Prices: Regarding local agriculture, pork and rubber prices increased significantly.,
- Retail Competition: Conversely, domestic firms face fierce “big fish eat small fish” competition in retail.,
- Consumer Protection: Finally, authorities are inspecting Lazada and brands like Mumuso for potential violations.,
