Vietnam Industry and Trade News Bulletin for JULY 17, 2017
A. PUBLIC ASSET MANAGEMENT AND POLICY
1. Standardizing Government Assets
- Official Vehicle Norms: In July 2017, the Ministry of Finance conducted market price surveys for car models including the Toyota Altis, Honda City, and Honda Odyssey. These findings will establish updated cost norms for official vehicles used by ministry leadership.
- Divestment Momentum: Following a week-long comprehensive review, formal proposals for state divestment in several major corporations have been submitted to the Prime Minister for approval.
2. Handling Industrial Inefficiency
- Crisis Resolution: The Ministry of Industry and Trade (MoIT) announced that the final handling plan for 12 major loss-making projects (representing a total investment of over 63,000 billion VND) will be presented to the Steering Committee within the month.
B. ENERGY AND PETROLEUM INDUSTRY
1. Petrolimex Operational Excellence
- Retail Performance: Petrolimex Ha Son Binh completed its H1 2017 performance review, focusing on optimizing its retail store network for the remainder of the year.
- Strategic Growth: Under Director Dao Hong Thang, Petrolimex Phu Tho has implemented six solution groups to ensure the company exceeds its annual business targets.
- Service Standards: Petrolimex Nghe An launched a “5-step sales process” training program designed to standardize service quality across all stations.
- Corporate Responsibility: Petrolimex Gas Da Nang contributed to local marine environment protection and rescue funds, reinforcing its CSR commitment.
2. Power Generation
- Vinh Tan 4 Milestone: Unit 2 of the Vinh Tan 4 Thermal Power Plant successfully connected to the national grid 32 days ahead of schedule, significantly boosting regional energy security.
C. INDUSTRIAL DEVELOPMENT AND MARKET TRENDS
1. Automotive and Trade Integration
- Domestic Auto Strategy: MoIT has proposed a three-pronged strategy to revitalize the domestic auto industry: introducing tax incentives based on localized value and attracting multinational manufacturers for models not yet produced in the ASEAN region.
- TPP-11 Progress: Following high-level meetings in Japan, the 11 member nations (excluding the U.S.) agreed to advance a new framework for the agreement, aiming for finalization by November 2017 in Vietnam.
- Turkey Partnership: Vietnam and Turkey have set a strategic bilateral trade turnover target of $4 billion by 2020.
2. Agriculture and Local Markets
- Rice Export Dominance: China remains the primary destination for Vietnamese rice, currently accounting for 43% of total exports.
- Livestock Recovery: Domestic live hog prices are showing steady daily increases, signaling a recovery phase for the pork industry.
- Agricultural Risks: Experts issued a warning to Mekong Delta farmers against the mass planting of red-flesh dragon fruit, cautioning that unverified rumors could lead to a future market glut.
Analogy: The Vietnamese industry in mid-July 2017 is like a large factory undergoing a “lean” transformation; while it is clearing out “old inventory” (the 12 loss-making projects) and setting new “equipment standards” (official vehicle norms), it is simultaneously upgrading its “output speed” (Vinh Tan 4) to compete in a wider global market (TPP-11 and Turkey).
