The Industry and Trade Press Review on May 24, 2018
I. Administration and Policy Reform
- Official Inspections: First, the Party Central Committee is currently inspecting the Ministry of Industry and Trade. Specifically, the team is reviewing the implementation of central resolutions within three specific units.
- SOE Challenges: Meanwhile, the progress of equitizing state-owned enterprises remains very slow.
- Regulatory Burden: Furthermore, many businesses still suffer from excessive inspections despite existing government directives.
- Wage Reform: Additionally, the government plans to abolish the base salary and coefficients by 2021.
- Internet Freedom: Finally, Decree 27 has officially removed ten business conditions for Internet services.
II. Industrial Development and Trade Regulations
- Supporting Industry: Regarding manufacturing, local firms currently meet only 10% to 15% of domestic demand.
- Tax Incentives: Consequently, the government offers four-year tax exemptions to boost the supporting industry.
- Outsourcing Rules: Moreover, Decree 69 now regulates how Vietnamese traders process goods for foreign partners. Specifically, these traders can receive tax exemptions for temporary imports.
- Automobile Industry: In contrast, the government rejected several requests from car importers regarding Decree 116.
III. Energy and Corporate News
- Refinery Success: In the energy sector, Nghi Son Refinery successfully sold its first 5,000m³ of diesel.
- Retail Innovation: Furthermore, Petrolimex Sài Gòn launched a new self-service fuel pumping model.
- Global Shifts: Regarding heavy industry, steel prices in China fell for five consecutive days.
- Cement Boom: However, Vietnamese cement exports are thriving and may reach annual targets early.
- Corporate Welfare: Additionally, Petrolimex focused on practical activities to support workers during “Labor Month”.
IV. Import-Export and International Integration
- Growth Projections: Specifically, experts predict that Vietnam’s export growth could reach 20% in 2018.
- Market Success: For example, steel exports to Belgium increased sixfold in value recently.
- Trade Deficit: Nevertheless, Vietnam faces a massive trade deficit of $150 billion with China.
- Global Friction: Furthermore, the United States is investigating car imports for national security reasons.
- CPTPP Roadmap: Finally, Vietnam committed to eliminating nearly 100% of tax lines under the CPTPP agreement.
V. Domestic Market Dynamics
- Agricultural Trends: Regarding local markets, pork prices have reached record highs.
- Price Drops: In contrast, the prices for coffee and pepper continue to decrease.
- Consumer Habits: Moreover, snack food products saw an impressive 21% growth last year.
- New Competition: Additionally, the Indonesian startup Go-Jek plans to enter the Vietnamese market soon.
- Fraud Prevention: Finally, authorities are currently investigating several multilevel marketing companies for violations.
