VIETNAM ECONOMY TRAVEL GUIDE UPDATES
1. General economic aggregates
According to preliminary data, gross domestic products (GDP) in 2005 increased by 8.4% against last year, of which the agriculture, forestry and fishery increased by 4%; the industry and construction by 10.6%; the service by 8.5%. For 8.4% GDP, the industry and construction contributed 4.2 points percent; the service 3.4 points percent; the agriculture, forestry and fishery 0.8 points percent.
Due to higher growth of the industry and construction than the general rate and other sectors, the structure of economic sectors continues to transform towards increasing in the industry and construction and decreasing in the agriculture, forestry and fishery. The proportion of the industry and construction rose from 38.13% in 2001 to 41.03% in 2005; the service from 36.63% up to 38.08%; and only the agriculture, forestry and fishery from 23.24% to 20.89% respectively.
Total government revenues in 2005 was estimated increasing by 16.6% over 2004 and achieved 115% of yearly estimate. Of the total, domestic revenues accounted for 109.2%; crude oil: 146.1% (mainly due to higher oil cost than the proposed budget plan); trade balance revenues were equal to yearly estimate. Main domestic revenue items generally over passed the yearly estimate.
Total government expenditure in 2005 fundamentally met the demand of expenses from State Budget, achieved 112.5% of yearly estimate and increased by 19.5% against last year. Of the total, spending on development investment was 106.1% of the yearly estimate (on capital construction: 105.5%); current expenditures 107.8%; debts and as settlement equal to proposed budget plan. Budget deficits were equal to the yearly estimate and accounted for 4.9% of GDP.
2. Agriculture, forestry and fishery
Output values of this sector in 2005 were estimated at 182 trillion VND at 1994 constant prices, increased by 4.9% against last year; of which agriculture rose by 3.2%; forestry 1.2%; fishery 12.1%.
Rice production of the whole year was estimated at 35.79 million tons, decreasing by 358,000 tons over 2004, as the planted areas decreased by 119 thousand ha and the productivity was approximately equal to last year.
Production of annual industrial plants raised much compared with last year. Production of perennial plants was improved, because harvested areas enlarged, of which tea increased by 4%; rubber 11.8%; pepper 4.9%; cashew nut 13.3%; only coffee fell by 8.2% due to prolonged drought.
Animal feeding developed well due to the increasing demand for foodstuff in replace for poultry products; stable high prices for animal products and the application and development of industrial manners and farming models: herds of buffalo rose by 1.8% over 2004, cattle 12.9%, pigs 4.9%. Poultry farming was heavily hit by the return of bird flu, as of 1/10/2005 there have destroyed 3.58 million poultries.
Fishery production in 2005 was estimated at 3,432.8 thousand tons, increased by 9.2% against last year; of which farmed aquatic products achieved 1,437.4 thousand tons, increased by 19.5%; caught aquatic product 1,995.4 thousand tons, by 2.9% (caught sea product: 1,809.7 thousand tons, by 4.4%).
3. Industrial output
Industrial production in 2005 still maintains a higher growth rate over the yearly plan and recent years. Industrial output value at 1994 constant prices was estimated increasing by 17.2% against last year, of which state owned enterprises increased by 8.7%, non-state and FDI sector by 20.9% (oil and gas fell by 4.6%, others rose by 28.1%).
Main industrial items increased raply over 2004: pure coal, processed seafood, tinned milk, chemical fertilizer, floor tiles, rolled steel, electric cables, machine tools, assembled automobiles and electricity. Due to difficulties in producing and consuming, some items raised at a range of 10-15% against last year: ready-made garments, paper and paper boards, cement, assembled motorbikes, beer...Beses that, some items decreased over 2004: crude oil; liquized gas; sugar; molasses; assembled television sets; bicycles...
4. Investment
According to preliminary estimate, realized investment for development in 2005 at current prices achieved 324 trillion VND, increasing by 8% over the yearly plan. Of the total investment, state investment occupied 53.1%; non-state investment 32.4%; FDI investment 14.5%.
Capital construction investment under the concentrated State budget in 2005 was estimated at 62.93 trillion VND, accounting for 121.2% of the yearly plan; of which central investment gained 24.57 trillion VND, accounting for 123.5% of the yearly plan; local investment gained 38.36 trillion VND, accounting for 119.8% of the yearly plan.
Foreign direct investment: from 1st January to 15th December 2005, there had been 771 newly granted license projects with a total capital registered 3.9 billion USD, on average a new project licensed achieved 5.1 million USD. The number of newly granted license projects in 2005 mainly focused on the industrial and construction sector.
5. Trade, price and tourism
Total retail sales of goods and services in 2005 were estimated at 475.38 trillion VND, increasing by 20.5% over last year, if the price booming factor was excluded this rate was about 12%. The state sector raised only 3.9% against last year; the collective sector 16.8%; the inual sector 25.3%; the private sector 19.4%; the foreign investment sector 20.7%.
Consumer prices in December continuously increased by 0.8% against last month, equaling to the rate of September and being a pretty high rate over the rate 0.4% of October and November. As compared with last December, consumer prices in this December rose by 8.4%. Notably, prices for all 10 groups of commodities and services increased. On average, prices per month in 2005 increased by 8.3% over 2004, being a high increased rate over recent years: average prices in 2004 rose by 7.7%, 2003: 3.2%, 2002: 3.9%. Gold price in December 2005 gained a peak increased rate of 7.5% over last month and exceeded the increasing level of the rest months. As compared with December 2004, gold price increased by 11.3%. USD price in December was relatively stable, increasing by 0.9% over December 2004 and on average for 12 months this rate increased by 0.6% over 2004.
Total trade turnover in 2005 was estimated at 69.11 billion USD, increasing by 18.2% against last year, of which exports by 21.6% and imports by 15.4%. In 2005 export increased rate was higher than import increased rate (6.2 points percent higher), therefore trade deficit decreased in both absolute numbers and rates over export value: trade deficits were only 4.65 billion USD (2004: 5.45 billion USD), equaling 14.4% of export turnovers, falling 6.2 points percent over the rate 20.6% of 2004.
The value of exported commodities in 2005 was estimated at 32.23 billion USD, rose by 5.73 billion USD over 2004. On average export values per month were 2.69 billion USD (2004: 2.2 billion USD). Of the total, crude oil gained 7.39 billion USD, increasing by 30.3% against last year; exports excluding crude oil 24.85 billion USD, increasing by 19.3% of which domestic economic sector gained 13.72 billion USD and rose by 14.1%; FDI sector (excluding crude oil) 11.13 billion USD and 26.2% respectively.
Vietnam export markets were generally stable and expanded over last year, especially big markets and newly emerged markets in Africa: America increased by 16.2%, Japan 26.9%, Australia 41.9%, China 8.8% and Singapore 28.5%. However, big markets in EU decreased: export turnovers to Germany and UK were about 1 billion USD each and decreased by 1.7% over last year.
The value of imported commodities was estimated at 36.88 billion USD, increasing by 15.4% against last year: domestic sector 23.19 billion USD, increasing by 11.1%; foreign invested sector by 23.5%. As import proportion of domestic sector increased more slowly, only 62.9% in 2005 (2004: 65.3%) and FDI sector 37.1% (2004: 34.7%). Import values per month were 3.07 billion USD. Imports from Asian countries took a greater proportion and highly increased: China 27.8%; Singapore 25%, Taiwan 16.3%; Japan 14.4%; South Korea 8.3% and Thailand 29.6%...
The value of exported and imported services in 2005 was estimated at 9.3 billion USD, increasing by 6%, of which export gained 4.26 billion USD, increasing by 7.2%; import 5.04 billion USD and 5% respectively.
Passengers carriage in 2005 was estimated at 1,267.4 million and 53.3 billion passengers-kilometers, increasing by 7.5% in passengers and 11.8% in passengers-kilometers against last year, of which transport by land and by aviation increased higher, only rail transport fell by 1.3% in passengers and rose by 4.7% in passengers-kilometers against last year.
Volume of cargos carried achieved 324.2 million tons and 81.1 billion tons-kilometers, increasing by 7.3% in tons and 6.7% in tons-kilometers against last year. Transport by seaways increased by 5.7% in tons and 6.3% in tons-kilometers; by land 8.3% and 9.2% respectively while by rail decreased by 0.4% in tons.
International arrivals to Vietnam in 2005 were estimated at 3.47 million, increasing by 18.4% against 2004, of which arrivals for tourist purpose were 2.04 million, rising by 28.9%; for visiting relatives 505.3 thousand and 8.1%; for other purposes 427.6 thousand and 20.5% respectively; only arrivals for business were 493.3 thousand, decreasing by 5.4%.
6. Social matters
Average population in 2005 was estimated at 83.12 million, increasing by 1.33% as compared with 2004. Urban population was 22.23 million, accounting for 26.8%; rural population 60.89 million, accounting for 73.2%.
Persons working in economic sectors as at 1/7/2005 were 42.71 million, increasing 1.12 million (+2.7%) against last year, of which labor in state sector accounted for 9.6%; in non-state sector 88.8% and in FDI sector 1.6% . By economic sector, labor proportion in the agriculture-forestry-fishery sector occupied 56.8%; the industry-construction sector 17.9% and the service sector 25.3%. Unemployed rate in 2005 continuously fell, as of m-year the rate in labor age group in urban area was 5.3%, falling 0.3 points percent over 2004, that rate met the 5-year plan goal (2001-2005) for decreasing unemployed rate in urban area to under 6% by the end of 2005.
High record sports: At 23rd SEA GAMES in the Philippines, the Vietnam sport teams tool part in 33/40 games and won the 3rd position with 71 gold medals, 68 silver medals and 89 copper medals. Also in the Philippines, the Vietnam disable sport teams won successfully the 2nd position in ASEAN PARAGAMES 3rd. Beses that Vietnam also won 380 medals from international competitions.
Education and training
On the opening of 2005-2006 school year:
In the school year 2005-2006 there were 401.6 thousand children going to kindergartens, decreasing by 5% against last year and accounting for 8.6% of total children aging 0-2; 2,558.2 thousand children going to preschools, increasing 9.7% and accounting for 63.4% of total children aging 3-5. There were 7,318.2 thousand primary schooling pupils, decreasing by 5.5% over last year; 6,691.5 thousand junior secondary schooling pupils, increasing by 1.1% and 2,993.7 thousand senior secondary schooling pupils, increasing 8.4%; 353.6 thousand primary schooling teachers; 300.9 thousand junior secondary schooling teachers; 118.2 thousand senior secondary schooling teachers. As compared with the norms, the country still lacks about 20.2 thousand junior secondary schooling teachers and 21.8 thousand senior secondary schooling teachers.
There were 239 thousand classrooms for primary schools, rising 1.5% over last year (95.9 thousand sol classrooms, increasing by 4.35%); 130 thousand classrooms for junior secondary schools, increasing by 8.5% (79.6 thousand sol rooms, increasing 3.9%); 59.1 thousand classrooms for senior secondary schools, increasing by 25.7% (45.9 thousand sol rooms, increasing by 21.1%).
Education at university, college and vocational training schools
In 2005 the country enrolled 230 thousand new long-term vocational trainees, increasing by 13.9% over 2004 and 977 thousand short-term vocational trainees, increasing by 2.9%. The network of vocational training centers developed raply, that erased the situation of no vocational training schools in localities. Up to now, there have been 1,691 vocational training centers, of which there have been 212 universities, colleges, high schools; 236 vocational training schools; 404 vocational training centers and 839 other vocational training campuses.
Health
Children’s malnutrition: According to preliminary data, the malnutrition rate for children under 5 (weight by age) in the country was 25.2%, decreasing by 1.4 points percent over 2004, of which the rate in urban area was 19.6% (-1.6 points percent); in rural area: 29.8% (-1 point percent) and in mountainous area: 37.5% (-2.2 points percent). The height by age malnutrition rate in the country was 29.8%, falling 0.9 points percent over 2004 and the weight by height malnutrition rate was 7.6%, falling 0.1 point percent.
Disease and plague: From the beginning of the year to now, the country had 88.8 thousand cases of malaria, falling 23.6% over 2004, of which 13 died, decreasing by 38.1%; 49.4 thousand cases of hemorrhage, falling 32.7%, of which 51 died, decreasing by 49.5%, 1.2 thousand cases of virus encephalitis, decreasing by 51%, of which 50 died, falling 58.7%; 66 cases of A-H5N1 influenza, of which 22 died. From 1st January to 16th December there were 4.3 thousand cases of food poisoning, of which 50 died.
HIV/AS: As of 19/12/2005 the country had 103.9 thousand cases of HIV, of which 17.2 thousand cases of AS and 10,000 died of AS.
Natural damages
There occurred heavy rains, typhoons, flash-floods, landsles, tropical low pressure in many places over the country such as storms and landsles in the North, floods in the Mekong River Delta, heavy rains and floods in the Southern Center, damaging human beings and properties, that affected on people’s life and production. Total losses were estimated at 6.5 trillion VND, of which Nam Dinh lost about 1.9 trillion VND; Thanh Hoa 1.3 trillion VND; Tuyen Quang 1.1 trillion VND...
