Ministry of Industry and Trade Press Review for October 22, 2018

A. Energy and Petroleum

1. Junin 2 Project Losses: The National Assembly will receive a report on the Junin 2 heavy oil project in Venezuela, which is currently facing such heavy losses that operations have been suspended,.
2. Intense Fuel Competition: The domestic fuel market is predicted to face fierce competition between local refineries and imported petroleum, especially as import taxes drop to 0%,.
3. Global Oil Volatility: Global oil prices saw fluctuations due to diplomatic tensions between the U.S. and Saudi Arabia, while Asian prices were pushed higher by increasing demand from China,.

B. Electricity and Renewables

1. Solar Power Pricing: Binh Thuan province has requested the Government to allow local solar projects to benefit from the incentive prices under Decision 11/2017 until the end of 2020 to support investors,.
2. Solar Financing: Vietcombank has signed a credit contract worth 785 billion VND for the BP Solar 1 plant in Ninh Thuan, which is expected to begin operations in early 2019,.
3. EVN Performance: In the first nine months of 2018, the Vietnam Electricity (EVN) reported a 9.66% increase in production and purchase volume, reaching 158.1 billion kWh.
4. Rural Electrification: EVN plans to provide electricity to approximately 5,200 households in Son La province before the Lunar New Year.

C. Heavy Industry and Automobiles

1. Shift in Imports: For the first time, U.S.-origin cars surpassed Thai-origin cars in weekly import volume (250 units vs. 129 units).
2. EU Car Prices: Imported cars from Europe are expected to see significant price drops due to tax exemptions under the EU-Vietnam Free Trade Agreement (EVFTA).
3. Market Exit: Taiwanese automobiles, which once imported thousands of units annually, have nearly disappeared from the Vietnamese market in 2018.

D. Light Industry and Startups

1. Paper Industry Dilemma: Approximately 70% of Vietnam’s paper output is produced from scrap; however, tightening regulations on scrap imports pose a challenge in balancing production with environmental protection,.
2. Innovation Events: Da Nang hosted the “Demo Day” for investment and startup connectivity to foster innovation,.

E. Import-Export and International Trade

1. Beef Demand: Despite having 5.4 million cattle, Vietnam remains a top destination for beef exporters as domestic supply fails to meet rising market demand,.
2. Electronic Import Ban: The Ministry of Information and Communications has released a list of used IT products, such as computers and printers, that continue to be banned from import.
3. Regional Competition: China’s expansion into dragon fruit and watermelon cultivation is creating significant challenges for Vietnamese agricultural exports, which rely on China for 80-90% of their volume,,.

F. Domestic Market and Consumer Protection

1. Retail Decline: The once-popular brand Parkson is struggling in Vietnam, closing multiple stores due to heavy losses and a failure to adapt to new consumer trends,.
2. Logistics Boom: Foreign logistics and e-commerce operators are aggressively entering Vietnam to capitalize on the peak demand for warehouse space,.
3. Market Integrity:
   • The “Proud of Vietnamese Goods” program has successfully shifted consumer sentiment from “prioritizing” to being “proud” to use local products.
   • Authorities in Ho Chi Minh City seized and destroyed 1.8 tons of “dirty” poultry meat intended for consumption,.
   • Market management forces detected over 34,000 violations related to counterfeit goods between 2017 and late 2018.

G. Commodity Price Trends

1. Agricultural Prices:
   • Pork: Prices have begun to “cool down” to 50,000–51,000 VND/kg in the Mekong Delta and 47,000–50,000 VND/kg in the North,.
   • Coffee: Prices decreased slightly by 600 VND/kg but remain stable above 36,000 VND/kg,.
   • Dragon Fruit: Red-flesh dragon fruit in Tra Vinh rebounded to 37,000 VND/kg,.
2. Other Crops: Areca nut prices reached a record high of over 30,000 VND/kg in Thừa Thiên-Huế, while rubber trees in the same region are being cut down for firewood due to low economic efficiency,,.

Analogy: The Vietnamese agricultural export sector is like a specialized craftsman who relies on a single large customer (China); when that customer begins to build their own tools (expanding their own cultivation), the craftsman faces an urgent need to diversify his clientele to survive.