Vietnam Industry and Trade News Bulletin for February 17, 2023

A. IMPORT-EXPORT AND INTERNATIONAL TRADE

1. Energy and Petroleum Imports

• Sharp Increase in Volume: In January 2023, petroleum imports reached 1 million tons ($879 million), a 92.6% increase compared to the same period last year.

• Crude Oil Trends: Crude oil imports also hit 1 million tons ($621 million), up 43.8% over the same period in 2022.

• Key Partners: Imports from South Korea tripled and from Singapore increased 2.5 times compared to the previous year.

2. Seafood and Agricultural Exports

• Seafood Market Shifts: Japan has become Vietnam’s largest seafood market for four consecutive months, reaching $91 million in January 2023.

• Fruit Industry Potential: Durian exports are projected to bring in $1 billion annually, contributing to a total fruit and vegetable export goal of $4 billion in 2023.

• Bird’s Nest Opportunity: Following the official protocol signed with China, Vietnam’s bird’s nest industry (producing 130–150 tons/year) faces a “billion-dollar” opportunity in the world’s largest consuming market.

• Organic Rice: Quang Tri province successfully exported its first batch of organic rice to the European market at a price of $1,800 per ton.

3. Challenges and Trade Promotion

• Export Decline: Total agricultural, forestry, and fishery exports fell by 23% in January due to global economic difficulties and reduced orders.

• New Market Strategies: The Ministry of Industry and Trade recommends that businesses diversify into potential markets like Africa, South America, and other Asian countries to mitigate losses in traditional markets.

B. ENERGY, INDUSTRY, AND DOMESTIC MARKET

1. Energy and Electricity Planning

• Renewable Energy Goals: Investors emphasize that a transparent legal framework and the approval of Power Plan VIII (PDP8) are essential for initiating offshore wind projects.

• Waste-to-Energy Issues: In Ho Chi Minh City, four waste-to-energy projects are delayed as they await integration into the national power development plan.

• Pilot Hydrogen Models: There are proposals to pilot wind and solar energy use for hydrogen production in Bến Tre province.

2. Petroleum Management and Policy Debates

• Retailer Hardships: Retail businesses report heavy losses (estimated up to 900 billion VND/month during peak periods) due to zero or low discounts from distributors.

• Policy Proposals: Enterprises suggest a mandatory minimum discount for retailers and shortening the price adjustment cycle from 10 days to 7 days to better align with global market fluctuations.

3. Industrial and Corporate Updates

• Quang Son Cement Crisis: The company faces an accumulated loss of 1,944 billion VND and overdue debts of 917 billion VND; the Ministry of Industry and Trade has requested permission for them to increase limestone mining to generate repayment funds.

• Automobile Localization: Toyota Vietnam has successfully localized nearly 1,000 components for domestic models, with a localization rate exceeding 40% for the Veloz Cross and Avanza Premio.

4. Domestic Market Fluctuations

• Orange Price Crash: “Cam sành” (King Orange) prices in Vĩnh Long crashed to 1,500–2,000 VND/kg due to oversupply, over-harvesting, and a lack of planned cultivation.

• Pig Industry: Prices remain stable; the Ministry of Agriculture is focusing on building disease-free zones to facilitate official pork exports to China.

C. DIGITAL ECONOMY AND INTERNATIONAL INTEGRATION

1. E-commerce and Digital Trends

• Market Growth: Vietnam’s retail e-commerce market reached $16.4 billion in 2022, accounting for a significant share of the digital economy.

• Consumer Behavior: Approximately 57–60 million Vietnamese people participate in online shopping, with an average annual spending of 6.1–6.7 million VND per person.

2. EuroCham Whitebook 2023

• Green Economy Focus: The European Chamber of Commerce (EuroCham) urges Vietnam to streamline administrative procedures, particularly regarding work permits for foreign experts, and to prioritize green growth to maintain international competitiveness.

• FDI Attraction: Agreements like the EVFTA and EVIPA are viewed as major levers for attracting high-quality “green” investment from the EU into Vietnam.

3. Investment and M&A

• Market Recovery: M&A activities are expected to become more vibrant in the second half of 2023, focusing on sectors such as renewable energy, healthcare, logistics, and education.

• Sustainable Finance: BIDV has become the first Vietnamese bank to issue a “Sustainable Loan Framework” to support green projects according to international standards.