Vietnam Industry and Trade News Bulletin for AUGUST 02, 2023

Below is the English summary of the Industry and Trade Press Review for August 2, 2023, based on the provided sources:

A. OUTSTANDING INDUSTRY AND TRADE NEWS

1. Industrial Recovery Efforts

• Removing Bottlenecks: Industrial production in early 2023 has recovered slowly due to high inventory and a lack of orders. Experts emphasize the need to develop high-value processing and manufacturing sectors, increase localization rates, and help Vietnamese firms join the global supply chains of multinational corporations.
• Seafood Success in CPTPP: While many markets are struggling, exports to the CPTPP bloc, particularly Chile, recorded a positive growth of 15% in the first half of 2023 by effectively utilizing preferential tariffs.

2. Rice Export Strategy

• Unprecedented Opportunity: Following export bans from India, Russia, and the UAE, Vietnam faces a historic chance to increase rice exports.
• Production and Targets: Vietnam aims to produce over 43 million tons of rice in 2023, with an export target of 7.8 million tons. Authorities affirm that boosting exports will not compromise national food security.
• Management: Minister of Industry and Trade Nguyen Hong Dien will chair a major conference on rice export management on August 4 in Can Tho to discuss solutions for the current market fluctuations.

B. GENERAL ECONOMIC NEWS

1. Domestic Investment and Challenges

• Public Investment in HCMC: Disbursement in Ho Chi Minh City remains below 30% after half a year. Progress is heavily dependent on the Ring Road 3 project, which is expected to complete land clearance by the end of 2023.
• Capital Absorption: Experts suggest that reviving the economy requires improving the “capital absorption” capacity of businesses. Domestic firms are often too dependent on credit, have weak management, and lack strong links with the FDI sector, which accounts for over 70% of export turnover.
• Steel Market: Domestic steel inventory is dropping sharply while prices on global exchanges have begun to rise again.

2. Global Macroeconomics

• Fed’s “Soft Landing”: U.S. Federal Reserve officials express hope for a “soft landing”—controlling inflation without causing mass unemployment—even as interest rates remain at a 22-year high (5.25-5.5%).

C. ENERGY SECTOR

• Renewable Energy (RE) Negotiations: As of early August, 73 out of 85 transitional projects have submitted documents for price negotiations. However, 11 project owners are still not ready to negotiate.
• Direct Power Purchase (DPPA): The Ministry of Industry and Trade (MoIT) is proposing a mechanism for organizations and individuals to buy electricity directly from renewable energy plants.
• Investment Barriers: Experts warn that the electricity price mechanism remains a major “bottleneck” hindering large-scale investment required by Power Plan VIII (PDP8).

D. INTEGRATION, COMPETITION, AND CONSUMER PROTECTION

• 10 Years of NQ22: The Prime Minister chaired a meeting to summarize 10 years of Resolution 22 on international integration. Vietnam has built a network of 33 strategic and comprehensive partners and joined numerous high-quality FTAs.
• New Consumer Rights: The 2023 Law on Consumer Protection officially prohibits digital platforms (such as Facebook or Shopee) from blocking, hiding, or deleting consumer reviews and feedback, except when such reviews violate the law.
• Authentication Solutions: The portal Truyxuat.gov.vn has been introduced as a technological solution using variable QR codes to help consumers verify genuine products and combat counterfeit goods.
• Data Privacy Probe: California (USA) is investigating automakers for collecting and sharing vast amounts of user personal data via connected features like location sharing and onboard cameras.

E. MERGERS AND ACQUISITIONS (M&A)

• Global Giant: The $43 billion acquisition of Seagen by Pfizer is the largest M&A deal globally in the first half of 2023, aimed at accelerating cancer treatment technology.
• Vietnam Real Estate Wave: Domestic developers facing “cash flow difficulties” are selling projects to foreign investors to restructure debt.
  • Gamuda Land acquired Tam Luc Real Estate for over $316 million (7,200 billion VND).
  • Keppel signed a deal to buy 49% of two residential projects from Khang Dien for $187 million.
  • CapitaLand is in talks for a potential $1.5 billion deal for assets from Vinhomes.

Analogy: The current rice market is like a sudden high tide; while it provides a powerful lift for the “export ship” to reach new records, the crew must carefully balance the load to ensure the “domestic shore” remains secure and stable.