Vietnam Economic News: 10 - 17.8.2024
Summary of Vietnam Economic News: 10 - 17.8.2024
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Summary of Vietnam Economic News: 10 - 17.8.2024 ---
INDIA LAUNCHES ANTI-DUMPING PROBE INTO SOME STEEL IMPORTS FROM VIETNAM
Reuters News – 16 August 2024
India has initiated an anti-dumping investigation on certain steel products imported from Vietnam, according to a notification from Ministry of Commerce and Industry. The anti-dumping investigation, which will analyse consequential injury and the threat of injury to the domestic industry, comes in response to the urging of the country's leading steelmakers, such as JSW Steel and ArcelorMittal Nippon Steel, according to an official notification. The move follows a significant downturn in the Indian steel market, with prices hitting their lowest levels in three years due to increased imports and reduced exports, according to data from commodities consultancy BigMint. India, despite being the world's second-largest crude steel producer, became a net importer of steel in the fiscal year ending March 31, 2024. This shift continued into the following months, with finished steel imports reaching their highest levels in five years during April-May, according to Indian provisional government data.
CHINA, VIETNAM EYE BOOST TO RAIL LINKS AS TOP LEADERS MEET
Reuters News – 16 August 2024
Rail links will be high on the agenda when Vietnam's newly appointed leader To Lam travels to China to meet President Xi Jinping next week, officials said, as the neighbours seek to boost trade. Seamless rail links are seen as crucial for supply chains, as a growing number of Chinese manufacturers move some export-oriented operations to Vietnam amid trade tensions between China and the United States. The countries are connected by two railways from Southern China to Vietnam's capital Hanoi and its northern industrial hub, but the Vietnamese infrastructure dates back to French colonisation and has a different gauge than Chinese high-speed rail, forcing passengers and goods to swap trains at the border. In December, Xi offered grants and loans to help upgrade Vietnamese railways and the countries signed two memoranda of understanding (MoU) to boost railway cooperation. The focus of Lam's trip to China, his first abroad since he was also given the party chief job earlier in August, is on implementing signed agreements and "achieving new substantive cooperation results, especially in the areas of mutual interest such as railway connection," Vietnamese foreign minister Bui Thanh Son said in a statement. China's ambassador in Hanoi, Xiong Bo, told local reporters this week that the two sides were accelerating plans for three lines: the upgrade of existing rails from Lao Cai to the port city of Haiphong via Hanoi and from Lang Son to Hanoi; and the building of a third one along the coast from Mong Cai to Haiphong. A Vietnamese official said new agreements were expected during Lam's trip to China, including on railways, other investments and trade in agricultural products.
VIETNAM PLANS ELECTRICITY SUBSIDIES FOR EV CHARGING STATIONS
Reuters News – 12 August 2024
Vietnam is planning to subsidise electricity prices for electric vehicle (EV) charging stations, as part of its efforts to promote the use of EVs and meet its energy transition commitments. The subsidy scheme is due to be submitted to the central government by mid-September for approval, the government said in a statement over the weekend. The country, home of EV maker VinFast , is targeting carbon neutrality by 2050, in line with the commitment made by advanced economies. The country currently has just over 150,000 EV charging ports, most of which are owned and operated by VinFast. "Green energy transition is an essential and important task in the process of realising green development objectives and in fulfilling Vietnam's international commitments," the government said in the statement. The government will also work on incentives for EV production and imports, and for users to switch from internal combustion engine cars to EVs, according to the statement. The statement said Vietnam will ensure all urban areas have public EV charging systems, adding that a unified set of technical standards for these stations is to be issued by the end of this month. The country earlier rolled out policies to exempt registration fees and cut special consumption tax for new EVs.
SEMBCORP INDUSTRIES SEEMS TO BE FOCUSING ON LAND SALES IN INDONESIA AND VIETNAM
Dow Jones Institutional News – 12 August 2024
Sembcorp Industries, a conglomerate headquartered in Singapore, appears to be focusing on land sales in Indonesia and Vietnam, based on the management's commentary, Maybank Research analyst Krishna Guha says in a report as the brokerage maintains the stock's buy rating. Its management unveiled an intensified focus on such land sales and industrial park rental income while managing its existing China portfolio for value, the analyst says. Vietnam is expected to account for half of the conglomerate's equity investments by 2028, shifting the mix away from China, the analyst adds. However, the brokerage lowers the target price to S$5.50 from $6.30 to reflect a lower price-to-earnings multiple, partly due to Singapore's evolving energy landscape.
VINFAST SIGNS QATAR EXCLUSIVE DEALERSHIP AGREEMENT WITH AL MANA HOLDING W.L.L.
Dow Jones Institutional News – 9 August 2024
VinFast Auto has officially signed an exclusive dealership agreement with Al Mana Holding W.L.L. for the distribution of VinFast electric vehicles (EV) across Qatar. The inaugural facility is planned to open in Q3/2024 in the heart of Doha city and will offer four VinFast e-SUV models VF 6, VF 7, VF 8, and VF 9 upon each model's respective launch in the market. Under the agreement, Al Mana Holding will become the exclusive dealer of VinFast in Qatar. With extensive experience and long-standing reputation in the automotive sector, Al Mana Holding will be a reliable partner, helping VinFast quickly capture the potential Qatar market by establishing a network of professional stores and services in the country. Founded in the 1950s, Al Mana Holding is one of the leading economic conglomerates in Qatar. With a shared vision for a green future, the cooperation agreement between VinFast and Al Mana Holding promises to bring the people of Qatar smart and green mobility solutions, contributing to the sustainable development goals of the country as well as the Middle East region. Mr. Ta Xuan Hien, CEO of VinFast Middle East, said: "The agreement with Al Mana Holding W.L.L. marks an important milestone in VinFast's global market expansion strategy, and specifically, our entry into the Middle East. We are confident that Al Mana Holding's reputation, expertise and market knowledge will enable us to quickly deliver premium products and services to Qatari customers."