Viet Nam’s economy and society in 2018 took place in the context of sluggish growth and hidden unpredictable factors of global economy. Global trade increased more slowly than expected due to changes in US trade policy, more and more complexity in US-China trade war[1]. Global inflation in the early months of the year tended to rise higher than in 2017 because of energy prices, especially hike in average oil price. Besides, trade tension among powerful countries and rising trend of trade protectionism had impact on production and export of Viet Nam and other countries in the region. In the country, besides advantages from positive results in 2017, Viet Nam’s economy also encountered complicated weather conditions, which affecting food prices and control of target inflation; low level of public investment disbursement.

With the motto of “Discipline, integrity, action, creativity and efficiency”, the Government, the Prime Minister drastically led, directed ministries, agencies and localities to focus on synchronous and effective implementation of goals, tasks, solutions in Resolutions of the Party, the National Assembly and the Government, put emphasis on Resolution No. 01/NQ-CP dated 1st January 2018 on major tasks, solutions to implement the Socio-economic development plan and estimation of the State budget in 2018. The Government steered ministries, agencies, localities towards substantial reduction of business conditions, creating a favorable environment for establishment and operation of enterprises; organization of seminars to remove difficulties and promote production of industries, localities; further implementation of trade agreements in order to seek potential markets, boost domestic production and endeavor to achieve the planned targets. As the results, socio-economic situation in the fourth quarter and the whole year of 2018 continued to change positively and achieve outstanding results as follows:

      I. ECONOMIC GROWTH

  1. Growth rate of gross domestic product

The gross domestic product (GDP) in the fourth quarter of 2018 was estimated to increase by 7.31% over the same period last year, of which the agriculture, forestry and fishery sector increased by 3.90%; the industry and construction sector went up 8.65% and the service sector rose 7.61%. Growth in the fourth quarter of 2018 was lower than the same period of 2017 but higher than growth rate in the fourth quarter of 2011-2016[2]. From the expenditure approach of GDP in the fourth quarter of 2018, final consumption increased by 7.51% over the same period last year; gross capital formation increased by 9.06%; export of goods and services rose by 10.69%; import of goods and services spread 9.50%.

GDP growth reached 7.08% in 2018, the highest growth rate since 2008[3], affirming the timeliness and effectiveness of solutions issued by the Government, drastic direction of all authority levels and localities. Contribution to the overall growth rate of the whole economy, the agriculture, forestry and fishery sector increased by 3.76%, making up 8.7% to the overall growth rate; the industry and construction sector expanded 8.85%, comprising 48.6%; the service sector rose 7.03%, representing 42.7%.

The agriculture, forestry and fishery sector achieved the highest growth rate in the period of 2012-2018[4], affirming that the trend of changing the structure of economic activities has been increasingly effective, on the other hand, the stable selling price of products along with the expansion of export markets have been the main driving force for the production of this sector. In particular, the agricultural activities continued to affirm a clear recovery trend when reached the growth rate of 2.89%, the highest growth rate in the period 2012-2018[5], contributing 0.36 percentage points to total added value growth of the economy; the fishery activities achieved good results with an increase of 6.46%, contributing 0.22 percentage points; the forestry activities rose 6.01%, contributing only 0.05 percentage points because of small proportion.

In the industry and construction sector, the industry activities in 2018 maintained a good growth rate of 8.79%, contributing 2.85 percentage points to total added value growth of the economy. The manufacturing activities continued to affirm the bright spot of this sector and be the main driver of growth with an increase of 12.98%, lower than the increase of the same period in 2017 but much higher than the growth rate in the years from 2012 to 2016[6], contributing 2.55 percentage points. The mining and quarrying activities still had negative growth rate (a decrease of 3.11%), reducing 0.23 percentage points to total value added growth of the economy, but the reduction was narrowed considerably compared to the drop of 7.1% in the previous year. The construction activities in 2018 affirmed a good growth rate of 9.16%, contributing 0.65 percentage points.

The service sector in 2018 increased 7.03%, although it was lower than the rise of 7.44% in 2017, but higher than years in the period 2012-2016[7]. In the service sector, the contribution of a number of economic activities with large proportion to total added value growth as follows: the wholesale and retail activities increased by 8.51% compared to the same period last year, enjoying the highest growth rate in the service sector, contributing the largest proportion to total value added growth of the economy (0.92 percentage points); the finance, banking and insurance activities increased by 8.21%, contributing 0.53 percentage points; the accommodation and catering services went up 6.78%, contributing 0.29 percentage points; the transportation and warehousing activities rose 7.85%, contributing 0.26 percentage points; the real estate business increased by 4.33%, contributing 0.24 percentage points.

Size of the economy in 2018 at current prices reached 5,535.3 trillion VND; GDP per capita was estimated at 58.5 million VND, equivalent to 2,587 USD, an increase of 198 USD compared to 2017. Regarding the economic structure in 2018, the agriculture, forestry and fishery sector accounted for 14.57% of GDP; the industry and construction sector made up 34.28%; the service sector represented 41.17%; the products taxes less subsidies on production comprised 9.98% (The corresponding structure of 2017 was: 15.34%; 33.40%; 41.26%; 10.0%).

From the expenditure approach of GDP in 2018, final consumption increased by 7.17% compared to 2017; gross capital formation expanded 8.22%; export of goods and services went up 14.27%; imports of goods and services rose by 12.81%.

Quality of economic growth was improved: In 2018, contribution of total factor productivity (TFP) to GDP growth reached 43.50%, 3-year average from 2016 to 2018 reached 43.29%, much higher than the average of 33.58% in the period 2011-2015. Labor productivity of the whole economy at current prices in 2018 was estimated at 102 million VND per employee (equivalent to 4,512 USD per employee, an increase of 346 USD compared to 2017)[8]; labor productivity in 2018 increased by 5.93% compared to 2017, which was much higher than the increase of 5.29% in 2016 and approximated the rise of 6.02% in 2017, due to supplement to labor force and high increase of employed labor in 2018.

Investment efficiency was improved with many new production capacities complementing the economy. The incremental capital-output ratio (ICOR) decreased from 6.42 in 2016 to 6.11 in 2017 and 5.97 in 2018, on average of the period 2016-2018, ICOR was at 6.17, lower than the reading of 6.25 in the period 2011-2015.

  1. Agriculture, forestry and fishery

     a) Agriculture

Agricultural production in 2018 developed stably and achieved a good growth rate because, the weather conditions for crops development was relatively favorable; crops structure was transitioned positively; traditional paddy was gradually replaced by newly high quality paddy and VietGAP standard production model for high economic value was developed.

Paddy production area in 2018 was estimated at 7.57 million hectares, a decrease of 134.8 thousand hectares compared to the previous year; Paddy productivity was estimated at 58.1 quintal/ha, increasing by 2.6 quintal/ha. Although the paddy area decreased but the productivity increased, the paddy yield in 2018 was estimated at 43.98 million tons, an increase of 1.24 million tons compared to 2017.

The winter-spring paddy crop this year gained good results across the country. With favorable weather conditions for the growth of paddy, high productivity and low cost, the paddy farmers gained higher profit than that in recent years. Generally, the whole country cultivated 3.1 million hectares of paddy, a decrease of 15 thousand hectares compared to the winter-spring crop last year due to conversion of production structure and land use purposes; paddy productivity reached 66.4 quintals/ha, an increase of 4.1 quintals/ha compared to the previous winter-spring crop; paddy yield reached 20.6 million tons, increased by 1.19 million tons.

The summer-autumn paddy crop in 2018, the whole country cultivated 2.05 million hectares, a decrease of 0.7% compared to 2017; productivity reached 54.6 quintals/ha, increased by 0.6%; yield reached 11.21 million tons, decreased by 0.1%. The yield of summer-autumn paddy of most regions increased in comparison to the previous year (particularly in the Central coastal areas due to the effects of drought at the time of planting and harvesting, so the yield decreased), of which the Mekong River Delta productivity reached 54.8 quintals/ha, an increase of 0.3 quintals/ha; yield reached 8.8 million tons, increased by 15.1 thousand tons.

The area of autumn-winter paddy in the Mekong Delta this year estimated at 732.1 thousand hectares, decreased by 78.1 thousand hectares compared to 2017; productivity estimated at 53.2 quintals/ha, increased by 0.9 quintals/ha; production reached 3.9 million tons, decreased by 343.2 thousand tons. Cultivated area of autumn-winter paddy fell due to complicated weather conditions, rapid upstream flood, heavy rain made some dykes at risk of being flooded; some areas could not be sown. Some localities witnessed a sharp decrease in area and production: In Long An province the area decreased by 16.5 thousand hectares and production decreased by 48.8 thousand tons; Dong Thap province decreased by 16.1 thousand hectares and 89.8 thousand tons; An Giang province decreased by 10.7 thousand hectares and 60.6 thousand tons; Hau Giang province decreased by 12.1 thousand hectares and 60.2 thousand tons.

The winter paddy crop this year cultivated 1.68 million hectares, decreased by 28.1 thousand hectares compared to the previous year; productivity estimated at 49.1 quintals/ha, an increase of 3.2 quintals/ha; production estimated at 8.26 million tons, an increase of 403 thousand tons. Of which, the area of ​​winter paddy in the North reached 1.10 million hectares, fell 29.8 thousand hectares compared to the previous year, mainly due to the localities shifting a part of the rice production area to other purposes[9]; productivity estimated at 49.4 quintals/ha, an increase of 3.2 quintals/ha; production reached 5.46 million tons, increased by 217.1 thousand tons. In some localities winter paddy production increased compared to the previous year: Thai Binh province increased by 91.2 thousand tons; Nam Dinh province increased by 51.2 thousand tons; Hai Duong province increased by 40.1 thousand tons; Ha Nam and Ninh Binh provinces both increased by over 21 thousand tons. In southern provinces, area for cultivating paddy reached 579.1 thousand hectares, an increase of 1.7 thousand hectares compared to the previous year; productivity estimated at 48.5 quintals/ha, an increase of 3.1 quintals/ha; production reached 2.81 million tons, an increased by 185.9 thousand tons.

Production of other arable and some annual crops: maize yield reached 4.91 million tons, fell 203.7 thousand tons compared to 2017 due to the decrease of 60.5 thousand hectares in cultivated area (maize productivity increased by 0.7 quintals/ha); sweet potato yield reached 1.37 million tons, an increase of 15.8 thousand tons (area decreased  by 3.9 thousand hectares); sugarcane reached 17.84 million tons, fell 519.9 thousand tons (area decreased by 12 thousand hectares); cassava production reached 9.94 million tons, fell 327.8 thousand tons (area decreased by 17.3 thousand hectares); peanuts reached 458.7 thousand tons, decreased by 0.9 thousand tons (area decreased by 9.9 thousand hectares); soybean reached 80.8 thousand tons, fell 20.9 thousand tons (area decreased by 15.3 thousand hectares); vegetable production reached 17.09 million tons, an increase of 622.5 thousand tons (an increase of 23.3 thousand hectares in area); production of all kinds of beans reached 155 thousand tons, decreased by 8.1 thousand tons (area decreased by 7.1 thousand hectares).

In 2018, area of perennial plants estimated at 3.482,3 thousand hectares, increased by 2, 3% compared to 2017, of which industrial plants reached 2,228.4 thousand hectares, increased by 0.4%; fruit reached 989.4 thousand hectares, increased by 6.6%; plant oil reached 175.4 thousand hectares, an increase of 3.3%; herbal and pharmacy crops reached 53.9 thousand hectares, increased by 7.2%; perennial plants reached 35.2 thousand hectares, decreased by 0.7%. In group of industrial plants, rubber area reached 965.4 thousand hectares, decreased by 0.4% compared to the previous year[10], production of all year reached 1,141.9 thousand tons, increased by 4.3%; pepper area gained 149.9 thousand hectares, increased by 0.1%, production gained 255.4 thousand tons, increased by 1.1%; coffee area reached 688.4 thousand hectares, an increase of 1.6%, production gained 1,626.2 thousand tons, increased by 3.1%; cashew area reached 301 thousand hectares, increased by 0.4%, production gained 260.3 thousand tons, increased by 20.6%; tea area reached 123.7 thousand hectares, increased by 0.6%, tea shoot reached 987.3 thousand tons, increased by 1.6%. Fruit trees this year achieved a good production due to many crops increased in area and had a stable consumption market. Production of oranges, tangerines and grapefruit reached 1,697.9 thousand tons, increased by 10.9% in comparison with the previous year; mangoes reached 788.5 thousand tons, increased by 5.8%; dragon fruit reached 1,074.2 thousand tons, increased by 12.8%; pineapple reached 674 thousand tons, increased by 9.1%; longans reached 541.4 thousand tons, increased by 8.4%; lichee reached 380.6 thousand tons, increased by 63.6% (mainly due to crop loss in the previous year caused low production); rambutan reached 338.7 thousand tons, increased by 2.5%.

Buffalo and cattle husbandry generally witnessed stability, poultry raising was quite good, pig raising was quickly recovered, especially in the last months of the year due to the rapid increase in production prices and farmer made profit. As of December 2018, the buffalo population at nationwide decreased by 2.8% compared to the same period last year; cattle population increased by 2.7%; pigs population increased by 3.2%; poultry population increased by 6.1%. Production of living weight meat of this year was quite good, of which production of living weight of buffalo reached 92.1 thousand tons, increased by 4.7% in comparison to the previous year (the fourth quarter reached 23.7 thousand tons, increased by 6.8% compared to same period 2017); production of living weight of cattle reached 334.5 thousand tons, increased by 4% (the fourth quarter reached 80.3 thousand tons, increased by 7.2%); production of living weight of pigs reached 3.8 million tons, increased by 2.2% (the fourth quarter reached 1,072.2 thousand tons, increased by 7.1%); production of living weight of poultry reached 1.1 million tons, increased by 6.4% (the fourth quarter reached 276.9 thousand tons, increased by 6.9%). The production of poultry eggs in 2018 was quite good, estimated at 11.6 billion, an increase of 9.5% compared to 2017 (the fourth quarter reached 3,262.5 million eggs, increased by 6.2%  compared  to the same period last year); milk production in 2018  reached 936 thousand tons, increased by 6.2% (232.7 thousand tons in the fourth quarter, increased by 4.3%). As of December 26, 2018, the whole country had no blue- ear pig epidemic; avian influenza was still in Quang Ninh province; foot- and- mouth disease still occurred in Bac Ninh province, Hanoi. At present, the African cholera epidemic on swine was still complicated in some countries, thus ministries, line ministries, localities and sectors at all levels should actively take measures to prevent epidemics outbreak into Vietnam.

         b) Forestry

The weather in the year was relatively favorable for afforestation, forest protection and forestry product exploration. In quarter IV/2018, area of newly concentrated forests all over the country reached 77.4 thousand hectares, decreased by 2.4% in comparison to the same period of the previous year; the number of scattered planted trees reached 26.6 million, decreased by 0.5%; production of wood reached 3,723 thousand m3, increased by 7.4%; production of exploited firewood reached 5 million ste, an increase of 0.3%.

In 2018, the country’s concentrated forest area estimated at 238.6 thousand hectares, decreased by 1.2% in comparison to the previous year; the number of scattered planted trees reached 85.8 million, decreased by 0.3%; production of exploited firewood reached 23.7 million ste, decreased by 1.2%; production of wood estimated at 12.8 million m3, up 9.6%. Some localities gained high timber production: Quang Tri province increased by 22.1%; Nghe An province increased by 19.4%; Quang Nam province increased by 10.3%; Phu Tho province increased by 10.2%; Quang Ngai province increased by 9.9%.

The area of ​​damaged forest in the fourth quarter of 2018 was 387.4 hectares, an increase of 14.9% compared to the same period last year, of which the area of forest fire was 289.4 hectares, increased by 2.2 times; the deforested area was 98 ha, decreased by 51.7%. Generally in 2018, the damaged forest area was 1,283.3 hectares, decreased by 17.8% compared to 2017, of which forest fire area was 739.1 hectares, increased by 41.7%; the area of ​​deforested forest was 544.2 hectares, decreased by 47.6%.

        c) Fishery

In 2018, production of fishery witnessed a relative growth due to a favorable weather condition and goods consuming market. Production of fishery quarter IV/2018 estimated at 2,106,4 thousand tons, increased by 6.4% compared with the same period of the previous year, of which fish gained 1,503.5 thousand tons, increased by 7.5%; shrimp reached 296.8 thousand tons, increased by 5.9%. Aquaculture production in the fourth quarter of 2018 estimated at 1,228.2 thousand tons, increased by 6.9% compared with the same period last year, of which fish reached 840.8 thousand tons, increased by 7.5%; shrimp reached 261.4 thousand tons, increased by 7.1%. Fishery production in the fourth quarter of 2018 estimated at 878.2 thousand tons, increased by 5.7% in comparison to the same period, of which fish reached 662.7 thousand tons, increased by 7.6%; shrimp reached 35.4 thousand tons, decreased by 1.7%.

For the whole year, the total fishery production estimated at 7,756.5 thousand tons, rose 6.1% compared with the previous year, of which fish reached 5,602.8 thousand tons, rose 6.7%; shrimp reached 966.1 thousand tons, rose 7%; other aquatic products reached 1,187,6 thousand tons, rose 2.5%.

In 2018, aquaculture activities were quite good, especially in aqua culturing brackish water shrimp and pangasius farming. Aquaculture area for the whole year estimated at 1,120.6 thousand hectares, rose 1.7% compared with the previous year, of which intensive and semi-intensive farming area reached 268.5 thousand hectares, rose 5%. Aquaculture production this year estimated at 4,153.8 thousand tons, rose 6.7% compared to 2017, of which fish reached 2,902.5 thousand tons, rose 6.9%; shrimp reached 804.3 thousand tons, rose 8.1%. Pangasius farming was favorable both in production, price and consumption market so the farming time was shortened, some semi-intensive farming households switched to intensive farming. Pangasius prices in the year were relatively high and stable, ranging from 27,000-33,000 VND/kg on average.

Export of pangasius saw good growth, especially in big and traditional markets such as the US, China and EU. Pangasius farming area in 2018 estimated at 22.4 thousand hectares, fell 0.9% compared to the previous year; Production of pangasius estimated at 1,418 thousand tons, rose 10.4%. The area of brackish water shrimp farming this year reached 712.7 thousand hectares, rose 1.4% in comparison to the previous year, of which intensive and semi-intensive farming area reached 142.4 thousand hectares, rose 2.6%. Production of black tiger shrimp of the whole year estimated at 274.3 thousand tons rose 5.5% in comparison to the previous year; white production of shrimp leg reached 492.3 thousand tons, rose 10%.

The weather in the year was relatively favorable for catching activities, while vessels were being restructured in the direction of reducing the number of small capacity vessels, increasing the quantity of large-capacity vessels to conduct offshore catching so the production of marine catching increased quite well. In 2018, production of fishery exploitation of the whole country estimated at 3,602.7 thousand tons, rose 5.3% compared to 2017, of which fish reached 2,700.3 thousand tons, rose 6.4%, shrimp reached 161, 8 thousand tons, rose 1.8%. Marine fishing production estimated at 3,392.6 thousand tons, rose 5.5%, of which 2,560 thousand tons of fish, increased by 6.8%, shrimp reached 146.4 thousand tons, rose 1.7%.

  1. Industrial production

Industrial production continuously increased remarkably in the last month of 2018. The index of industrial production (IIP) in December 2018 was estimated to rise by 11.4% compared with the same period last year, of which the mining and quarrying fell by 3.2%; the manufacturing rose 13.7% because it was time for the enterprises to focus on producing consumer goods to serve for 2019 Ky Hoi Lunar Tet holiday[11]; production and distribution of electricity jumped up 11.7%, reaching the highest level since August mainly due to a sharp increase in electricity demands for production and construction in comparison with last month; water supply, waste and sewerage remediation went up 5.6%. In general, the IIP in the 4th quarter of 2018 was estimated to edge up by 9.4% year – on – year, of which the mining and quarrying went down by 2.6%; the manufacturing surged up by 11.1%; production and distribution of electricity went up 10.5%; water supply, waste and sewerage remediation grew by 6.7%.

Generally in 2018, the IIP was estimated to increase by 10.2% in comparison with last year (the first, second, third and fourth quarter rose by 12.7%, 8.2%, 10.7% and 9.4% respectively). Although, this figure was lower than the growth rate of 11.3% in 2017, higher than that in the period 2012-2016[12]. Among industrial activities, the manufacturing continuously played a key role in upholding the general growth of industry sector with an increase of 12.3% (the first, second, third and fourth quarter edged up 15.7%, 9.6%, 13.1% and 11.1% respectively). Though the figure was lower than the rate of 14.7% in 2017, but higher than that in the period 2012-2016[13], contributing 9.5 percentage points to general growth rate; the production and distribution of electricity provided enough electricity to meet the demands for production and consumption of the people with a growth of 10%, contributing 0.9 percentage points; the water supply, waste and sewerage remediation grew up 6.3%, contributing 0.1% percentage point; particularly, the mining and quarrying went down by 2% (mainly due to a fall in crude oil exploitation of 11.3%[14]) that resulted in a decrease of 0.3 percentage points in the general growth.

Index of industrial production in the period 2016-2018

  2016 2017 Estimated

2018

The whole industry 107.4 111.3 110.2
Mining and quarrying 93.2 95.9 98.0
Manufacturing 111.3 114.7 112.3
Production and distribution of electricity 111.5 108.9 110.0
Water supply, waste and sewerage remediation 108.0 107.1 106.3

By usage purpose of industrial products, the index of intermediate consumption product production in 2018 (used for the following production processes) rose by 9% over 2017, final consumption products went up by 11% (products as production materials climbed up by 6.5% and consumption products jumped up by 13.3% respectively).

In comparison with the previous year, the IIP of some 2-digit industrial activities in 2018 increased significantly, contributing a majority to the growth of the industry, particularly as follows: manufacture of coke and refined petroleum products soared 65.5%; metal manufacture rose by 25.1%; manufacture of pharmaceutical, medicinal chemicals and botanical products climbed up by 20%; motor vehicle manufacture jumped up 16.8%; paper and paper products was 14%; furniture manufacture was 13.7%; textile was 12.7%; prefabricated metal products (excepting for machinery and equipments) was 11.3%; computers, electronic goods and optical products up by 11.3%. Some industrial activities witnessed a moderate increase or reduction: manufacture of rubber and plastic products rose 3.3%; waste collection, treatment and disposal went up 3.1%; repair, maintenance and installation of machinery and equipment edged up 2.8%; metal ores quarrying increased by 1.6%; however, extracted crude oil and natural gas decreased by 5.4% (extracted crude oil dropped 11.3% but natural gas rose 1.1%).

Some key industrial products in 2018 witnessed a high increase compared to 2017, specifically: petroleum, oil was 51.2%; steel bars and iron was 43.8%; liquefied petroleum gas (LPG) was 29.8%; television was 24%; aluminum was 23.3%, fabric from polyester and artificial yarn was 18.9%; aquatic feed was 17.3%; fabric from natural yarn was 16.2%. Some industrial products witnessed slight increase or decrease: fresh milk rose by 2.1%; NPK fertilizers went up 1.7%; natural gas edged up 1.1%; animal feed went up 1%; mobile phones decreased by 1% (smart phones dropped 1.3%); crude oil reduced by 11.3%.

The index  of industrial production in 2018 of almost provinces and cities increased over the previous year, of which Ha Tinh province recorded the highest growth of 89% thanks to the contribution of Formosa corporation, the following was Thanh Hoa province with an increase of 34.9% because Nghi Son Refinery and Petrochemical LLC started running at mid-2018. Particularly, Ba Ria Vung Tau province experienced a decrease of 0.5% in the IIP in 2018 in comparison with 2017 due to a continuous reduction in crude oil. Compared to 2017, the IIP of some large-sized industrial provinces in 2018 as follows: Hai Phong surged up 25.2%; Vinh Phuc jumped up 15.2%; Thai Nguyen grew up 12.1%, Hai Duong went up 10.2%; Binh Duong rose by 9.8%; Dong Nai increased by 9%; Quang Ninh climbed up 8.9%, Can Tho edged up 8.1%; Bac Ninh and Ho Chi Minh city both went up 8%; Ha Noi, Da Nang and Quang Nam rose by 7.5%, 6.7% and 4.7% respectively.

The index of industrial shipment of manufacturing in December 2018 witnessed a rise of 1.9% and 9.7% in comparison with last month and the December last year, respectively. Generally in 2018, the index of industrial shipment of manufacturing increased by 12.4% over the previous year (in 2017 up by 10.2%), of which some industrial activities recorded a sharp increase specifically: manufacture of coke and refined petroleum products: 60.6%; motor vehicles: 27%; metal manufacture: 19%; paper and paper products; pharmaceuticals, medicinal chemicals and botanical products soared by 16.6% and 16.1%, respectively. Some activities recorded a moderate increase as follows: manufacture of electrical equipments; chemicals and chemical products, manufacture of wood and wooden, rattan and bamboo products (except for furniture); and rubber and plastic products rose by 5.7%, 5.6%, 3.5% and 2.7% respectively.

The index of industrial inventory of manufacturing as of 31st December 2018 was estimated to increase by 14.1% compared to the same time point of the previous year (same time point in 2017 rose by 9.5%), of which some industrial activities witnessed a lower rise than the general rate or decrease: manufacture of furniture; and printing and reproduction of records of all kinds went up by 2.8% and 1.4% respectively; manufacture of non-metal mineral products; manufacture of wood and wooden, rattan and bamboo products (except furniture); motor vehicles; and computers, electronic goods and optical products dropped 0.5%, 5.4%, 11.7% and 19.2% respectively because the production volume of the manufacture of communication equipment remarkably shrank. Some industrial activities witnessed a higher increase than general rate as follows: manufacture of coke and refined petroleum products;  pharmaceuticals, medicinal chemicals and botanical products; other means of transport; electrical equipments; leather and related products; and metal accelerated by 477.7%[15], 224.3%[16], 83.8%, 78.5%, 51.4% and 43% respectively.

The index of industrial inventory of manufacturing in 2018 was 64.4%, reached the lowest point in the recent years[17]. Some industrial activities possessed a high rate, specifically: Textile was 273.7%; manufacture of wood and products from wood, rattan and bamboo (except furniture) was 106.7%; food manufacture and process was 73.6%; manufacture of motor vehicles was 73.1%; manufacture of chemicals and chemical product was 71.8%.

The number of employees working in industrial enterprises as of the 1st  December 2018 rose 2.6% compared to the same time point of the previous year (at the same point 2017 increased by 5.1%), of which employees in state-owned enterprises fell by 0.7%; non-state enterprises went up 2.2%; foreign directed investment (FDI) enterprises edged up 3.3%. At that time, the number of employees in the mining and quarrying enterprises grew up 0.7% compared to the same time point of 2017; the manufacturing increased by 2.8%; the production and distribution of electricity was equal to the rate at the same time point of the previous year; the water supply, waste and sewerage treatment climbed up 0.4%.

Compared to the same time point of the previous year, the employees in industrial enterprises as of 1st December 2018 in some large-sized industrial provinces were as follows: Hai Phong rose up by 9%; Dong Nai up by 4.4%; Hai Duong by 3.8%; Quang Ninh by 3.3%; Ba Ria Vung Tau by 2.9%; Ha Noi by 2.2%; Binh Duong by 1.8%; Can Tho and Quang Nam both up by 1.2%; Ho Chi Minh city and Thai Nguyen up by 1% and 0.6% respectively meanwhile Vinh Phuc; Bac Ninh and Da Nang reduced by 3.1%, 7.3%[18] and 15.6%[19] respectively.

  1. Operation of enterprises

      a) Enterprise registration status

In December, there were 10,027 newly established enterprises in the whole country with total registered capital of 243.7 trillion VND, down 13.8% in the number of enterprises and an increase of 105.8% in the registered capital compared with the previous month[20]; the average registered capital of an enterprise reached 24.3 billion VND, an increase of 138.9%; The total registered employees of the newly established enterprises were 89.9 thousand employees, reduced 2.5%. There were 3,394 re-operated enterprises, 0.3% lower than the previous month; there were 9,544 temporarily ceased enterprises (including: 1,895 enterprises registered to cease for a certain period of time and 7,649 enterprises suspended their operations without registering or awaited to be dissolved), declining by 7.5%; 1,453 enterprises completed dissolution procedures, down 6.5%.

In 2018, there were 131,275 newly registered enterprises in the whole country with a total registered capital of 1,478.1 trillion VND, an increase of 3.5% in number of enterprises and rose by 14.1% in registered capital compared to 2017[21]; the average registered capital of a newly established enterprise reached 11.3 billion VND, rising by 10.2%. If including 2,408.8 trillion VND of additional registered capital of enterprises that recorded upward adjustment of capital, in 2018 the total additional registered capital in the economy was 3,886.9 trillion VND. Besides, there were 34,010 re-operated enterprises, increasing by 28.6% compared to the previous year, bringing the total number of newly registered enterprises and re-operated enterprises in this year to nearly 165.3 thousand enterprises. In 2018, the total number of registered employees of newly established enterprises were 1,107.1 thousand employees, down 4.7% compared to the previous year.

By economic activities, in 2018, there were 46.4 thousand newly established enterprises in the wholesale, retail, repair of automobiles and motorcycles (accounting for 35.3% of total newly established enterprises), rose by 2.1% over the previous year; 16.7 thousand construction enterprises (accounting for 12.7%), a rise of 4.4%; 16.2 thousand manufacturing enterprises (made up 12.3%), an increase of 0.1%; 10 thousand enterprises in the science, technology, consultation service, designing, advertisement and others (accounting for 7.6%), a rise of 6.1%; and 7.6 thousand enterprises in the employment services, travel, renting and leasing of machinery, equipment and other support services (accounted for 5.8%), went up 13.2%; 7.1 thousand enterprises in the real estate activities (made of 5.4%), rising by 40%; 6.9 thousand enterprises in the accommodation and catering services (shared 5.2%), rose by 8.1%; 3.9 thousand enterprises in the transportation and  storage (made up 3%), a reduction of 33.9% …

In this year, some economic regions witnessed an increase in the number of newly registered enterprises over the previous year: the Red River Delta was 38.9 thousand enterprises, went up 2.1% (registered capital reached 504.1 trillion VND, shared 64.6%); North Central and Central Coastal areas reached 18.8 thousand enterprises, rose by 7.2% (the registered capital was 164 trillion VND, making up 2.3%); South East gained 55.8 thousand enterprises, an upturn of 4% (the registered capital was 624.6 trillion, down 8.2%); Mekong River Delta achieved 9.3 thousand enterprises, made up 3.1% (the registered capital was 114.1 trillion VND, jumped up 61.5%). The remaining regions experienced a fall in the number of newly registered enterprises compared to the previous year: Northern Midlands and Mountains had 5.3 thousand enterprises, went down 0.5% (the registered capital was 47.2 trillion VND, down 12.7%); Central Highlands recorded 3.2 thousand enterprises, decreased by 0.5% (the registered capital was 24.1 trillion VND, rose up 0.1%).

In 2018, the number of temporarily ceased enterprises was 90,651 enterprises, an increase of 49.7% over the previous year, including 27,126 enterprises ceased for a certain period of time, an increase of 25.1% and 63,525 enterprises temporarily ceased without registration or awaited dissolution, rising by 63.4%[22]. By economic activities, the number of enterprises ceased for a certain period of time increased in almost economic activities compared with the previous year, particularly: wholesale and retail, repair of automobiles and motorbikes recorded 10.7 thousand enterprises (accounting for 39.4%), increased by 24.1%; there were 4 thousand construction enterprises (accounting for 14.8%), going up 26.5%; 3.3 thousand manufacturing enterprises (accounting for 12.2%), making up 18.5%; 1.5 thousand enterprises in the accommodation and catering services (accounted for 5.7%), rose up 29.5% … For enterprises temporarily ceased without registration or awaited dissolution, there were 22.4 thousand enterprises in the wholesale and retail, repair of automobiles and motorbikes (shared 35.3%), went up 38.3% compared to the previous year; 9.3 thousand construction enterprises (making up 14.7%), rising by 75.1%; 7.9 thousand manufacturing enterprises (accounting for 12.4%), jumped up 77.4%; 3.8 thousand enterprises in the employment services, travel, renting and leasing of machinery, equipment and other support services (made up 6%), a rise of 101.4%; 3.5 thousand enterprises in the accommodation and catering services (accounting for 5.5%), an increase of 84.9%.

In 2018, the number of enterprises completed dissolution procedures was 16,314 enterprises, an increase of 34.7% over the previous year, of which 14,880 the enterprises with capital size of less than 10 billion VND, accounting for 91.2% and going up by 34.2%. Enterprises completed dissolution procedures mainly focused in the economic activities: wholesale and retail, repair of automobiles and motorbikes with 6.1 thousand enterprises, up 32.3% over the previous year; the manufacturing: 2.2 thousand enterprises, jumped up 39.6%; the construction activity: 1.8 thousand enterprises rose up 44.4%.

           b) Business trend of enterprisesResults of the business trend survey of the manufacturing enterprises in the fourth quarter of 2018 pointed out: 44.7% of the enterprises assessed that the business production situation in the fourth quarter was better than last quarter; 16.9% of enterprises faced difficulties and 38.4% of enterprises said that the business production situation was stable[23]. For expected outcomes of the 1st quarter 2019, 47.3% of enterprises presented that the trend would get better in comparison with the 4th quarter of 2018; 14.9% of enterprises predicted that it would be more difficult and 37.8% of enterprises said that the business production situation would be stable. In which, the FDI sector was the most optimistic, 88.3% of enterprises forecasted a better business production situation in the first quarter of 2019 and expected to remain stable compared to the fourth quarter of 2018; This rates in the state and non-state enterprises were 83.2% and 84%, respectively.Among the main factors affecting the business production situation in the fourth quarter of 2018, 58.7% of enterprises believed that the high competitiveness of domestic goods was the most influential factor to the operation of enterprises; 44% of enterprises said that demand of domestic market was low; 32.9% of enterprises stated financial difficulties as main cause; 29.8% of enterprises blamed for not recruiting qualified workers; 27.7% of enterprises blamed for high interest rates and 22.2% of enterprises believed that high competitiveness of imported goods was an important factor.

Regarding production volume, 47.9% of enterprises pointed out production volume in the fourth quarter of 2018 increased compared to last quarter; 16.6% of enterprises reported that the production volume reduced and 35.5% of enterprises considered stable[24]. For the trend in Q1. 2019, 47.6% of enterprises forecasted an increase in production volume compared to the Q2. 2018; 14.5% of enterprises projected a decrease and 37.9% of enterprise predicted a stability. The trend in the first 6 months of 2019 compared to the last 6 months of 2018, 89.8% of enterprises forecasted an increase and stability while 10.2% of enterprises forecasted a decrease in production volume.

Regarding orders for goods, 40.9% of enterprises had more orders in the fourth quarter of 2018 than the previous quarter; 16.9% of enterprises gained fewer orders and 42.2% of enterprises recorded stable orders[25]. For the trend in Q1. 2019, 43.5% of enterprises expected an increase in orders compared to the fourth quarter of 2018; 14.5% of enterprises expected a decrease in orders and 42% of enterprises expected to have stable orders. The number of new orders was forecasted to be better in the first 6 months of 2019 compared to the last 6 months of 2018 when 90.8% of businesses forecasted to increase and keep the number of orders stable; only 9.2% of enterprises forecasted to decrease.

Regarding export orders, 34.1% of enterprises confirmed more export orders in the fourth quarter of this year compared to the previous quarter; 16.8% of enterprises experienced fewer export orders and 49.1% of enterprises kept export orders stable. 36.3% of enterprises expected to have an increase in export orders in the first quarter of 2019 compared to the fourth quarter of 2018; 14.8% of businesses expected to decrease and 48.9% of businesses expected to be stable. There were 90.4% of enterprises predicting that the number of export orders would increase and stabilize in the first 6 months of 2019 compared to the last 6 months of 2018; 9.6% of businesses forecasted to decrease.

  1. Service operation

       a) Retail sales of goods and services

In 2018, service trade operation achieved a good growth with an increase in consumption. Gross retail sales of goods and services in December were estimated at 394.5 trillion VND, rising by 2.1% compared to the previous month and by 12.7% over the last year, of which: turnover of retail sales of goods gained 296.5 trillion VND, increasing by 1.9% and 13.1%, respectively; turnover of accommodation and catering services was 49.9 trillion VND, jumping by 3.2% and 11.1%; turnover of travelling reached 3.7 trillion VND, going up by 3% and 3.2%; turnover of other services gained 44.4 trillion VND, edging up by 2% and 12.8%. In the 4th quarter 2018, gross retail sales of goods and services were estimated to achieved 1,161.5 trillion VND, rising by 4.4% opposed to the previous quarter and by 12.9% compared to the same period last year, of which: turnover of retail sales of goods reached 873.9 trillion VND, climbing by 4.7% and 13.7%; accommodation and catering services gained 143.7 trillion VND, accelerating by 6.7% and 11.3%; travelling was 10.7 trillion VND, rising by 1.2% and 7.2%; other services achieved 133.2 trillion VND, increasing by 0.6% and 10%.  Generally in 2018, gross retail sales of goods and services were estimated to achieve 4,395.7 trillion VND, an upturn of 11.7% over the same period last year (in 2017 increasing by 11%), if excluding the price factor, the growth rate was 9.4% (9.3% in 2017)

By kinds of economic activity, retail sales of goods in 2018 gained an estimate of 3,306.1 trillion VND, accounting for 75.2% of the total and increasing by 12.4% over the previous year, of which the sales of some commodity groups achieved an increase such as: gems and precious metals: 13.8%; wood and construction materials: 13.7%; food and foodstuff: 12.6%; household equipments and goods: 12.3%; garment: 12.1%; means of transport: 11.1%; cultural, educational products: 10.5%. Some provinces achieved a good increase, including: Vinh Phuc: 14.9%; Hai Phong: 13.9%; Thanh Hoa: 13.5%; Ho Chi Minh City: 13.2%; Nghe An: 13%; and Ha Noi: 11%.

The sales of accommodation and catering services was estimated at 539.5 trillion VND, accounting for 12.3% of the total and moving up by 9.1% over 2017. Some provinces achieved a significant growth in turnover, including: Hai Phong: 16%; Binh Dinh: 14.3%; Ba Ria-Vung Tau: 13.4%; Tien Giang: 13%; Lam Dong: 11.3%; Ho Chi Minh: 8.4%; and Ha Noi: 7.2%.

The sales of travelling achieved an estimate of 41 trillion VND, making up 0.9% of the total and climbing by 14.1% against the previous year. Due to a sharp increase in the need of domestic and foreign tourism together with international visitors that contributed to rise the turnover of the travelling. Some provinces recorded a good increase in turnover such as Hai Phong: 21.4%; Ho Chi Minh: 17.8%; Binh Dinh: 16.2%; Kien Giang: 14.8%; Quang Binh: 11.1%; Khanh Hoa: 8.8%; and Ha Noi: 7.9%.

The sales of other services were estimated at 509.1 trillion VND, representing 11.6% of the total and increasing by 9.8% from 2017, of which turnover of some provinces gained a growth such as: Thanh Hoa: 12.7%; Da Nang: 12.4%; Ho Chi Minh City: 11.4%; Kien Giang: 10.9%; Quang Ninh: 10.4%; Quang Binh: 10%; Thai Nguyen: 9.2%; Thua Thien – Hue: 8.5%; and Ha Noi: 6.9%.

         b) Transportation and telecommunication

In December, passenger carriage was estimated to achieve 402.9 million passengers, a growth of 1.1% compared to the previous month and 17.5 billion passengers-kilometres, an increase of 1.4%. Passenger carriage in the 4th quarter 2018 gained 1195.6 million passengers, a rise of 11.3% over the same period last year and 52.9 billion passengers-kilometres, a growth of 11%. Generally, in 2018, passenger carriage reached 4,641.5 million passengers, going up by 10.7% year-on-year and 207.1 billion passengers-kilometres, up by 10.9%, of which domestic transportation gained 4,624.7 million passengers, a rise of 10.7% and 159.8 billion passengers-kilometres, a growth of 11%; overseas transportation was 16.8 million passengers, rising by 11.2% and 47.3 billion passengers-kilometres, going up by 10.7%.  By types of transport, passengers carried by road achieved 4,380.9 million passengers, a rise of 10.9% and 143.8 billion passengers-kilometers, a rise of 11.2%; by inland waterway: 195.7 million passengers, up by 7.1% and 3.7 billion passengers-kilometers, up by 7.4%; by seaway: 7.4 million passengers, an increase of 7.4% and 444.5 million passengers-kilometers, a growth of 7.8%; passenger carriage by airway reached a fairly good level with 48.9 million passengers, an increase of 11.2% and 55.6 billion passengers-kilometers, an increase of 11.6%; and passenger carriage by railway only reached 8.5 million passengers, a drop of 9.8% and 3.5 billion passengers-kilometers, a fall of 4% because railway fare has not been able to compete with budget airway and road transport by coach.

Cargo carriage in December was estimated to achieve 143.1 million tons, up by 1.2% over the previous month and 27.1 billion tons-kilometres, up by 1.3%. In the quarter IV, 2018, cargo carriage was estimated to gain 423.3 million tons, an increase of 10.1% compared to the same period last year and 80 billion tons-kilometres, a growth of 7.1%. Generally, in 2018, cargo carriage reached 1,634.7 million tons, up 10% year-on-year and 306.4 billion tons-kilometres, up 7.6%, of which domestic transport was 1,601.2 million tons, rising by 10.1% and 170 billion tons-kilometres, growing by 10.8%; overseas transport gained 33.5 million tons, an increase of 2.5% and 136.4 billion tons-kilometres, a rise of 3.8%. By types of transport, cargo transport by road obtained 1,261.7 million tons, going up by 10.8% and 83.4 billion tons-kilometers, up by 11.2% over last year; by inland waterway: 288.8 million tons, rising by 7.5% and 61.1 billion tons-kilometers, up 7.8%; by seaway: 78 million tons, up 6.6% and 156.8 billion tons-kilometers, up 5.5%; by railway: 5.7 million tons, a growth of 2.2% and 4 billion tons-kilometers, an increase of 11.3%; by airway: 405 thousand tons, a growth of 22.1% and 1,068.9 million tons-kilometers, a rise of 20.3%.

Telecommunication turnover in the 4th quarter 2018 was estimated at 107.4 trillion VND, rising by 7.6% over the same period last year. Generally in 2018, the whole country gained 395.8 trillion VND, a growth of 7.3% compared to 2017. As of the end of 2018, the total number of telephone subscribers was estimated to achieve 129.9 million subscribers, an increase of 2.3% over the previous year, of which mobile phone subscribers reached 125.6 million, going up by 3.8%; the number of fixed broadband Internet subscribers was estimated at nearly 13 million subscribers, an increase of 19.2%.

          c) International visitors to Viet Nam

International visitors to Viet Nam in December were estimated to reach 1,374.2 thousand arrivals, up 5.6% compared to the previous month and up by 7.7% over the last December. The figures for the 4th quarter (Q4) 2018 were 3,881.3 persons and 11.7% compared to the same period last year. In 2018, international visitors to Viet Nam hit the highest point at 15.5 million persons, an increase of 19.9% year on year (equivalent to 2.6 million visitors); of which visitors coming by airway were 12.5 million persons, went up by 14.4%; by road: 2.8 million persons, jumping up by 59.6%; by seaway: 215.3 thousand visitors, decreasing by 16.8%.

In comparison with last year, international visitors to Viet Nam from Asia reached 12,075.5 thousand persons, rose by 24.7%, of which visitors to Vietnam from key markets all increased, including: visitors from China were 4,966.5 thousand, increased by 23.7%; visitors from Korea were 3,485.4 persons, went up by 44.3%; visitors from Japan were 826.7 thousand persons, obtained a rise of 3.6%; visitors from Taiwan were 714.1 thousand persons, grew by 15.9%; visitors from Malaysia were 540.1 thousand persons, rose by 12.4%; visitors from Thailand were 349.3 thousand persons, up by 15.8% and visitors from Singapore achieved 286.2 thousand persons with a rise of 3.1%.

Compared to 2017, visitors from Europe were estimated at 2,037.9 thousand persons, rising by 8.1%, of which: from Russian Federation: 606.6 thousand persons, up by 5.7%; the UK: 298.1 thousand persons, up by 5.1%; France: 279.7 thousand persons, up by 9.5%; Germany: 214 thousand persons, up by 7.1%; the Netherlands: 77.3 thousand persons, up by 6.9%; Spain: 77.1 thousand persons, up by 10.8%; and Italy: 65.6 thousand persons, up by 13%.

Visitors from America achieved 903.8 thousand persons, increasing by 10.6%, of which visitors from the US were 687.2 thousand, up by 11.9%. Visitors from Oceania: 437.8 thousand, rising by 4%, of which Australia: 386.9 thousand persons, up by 4.5%. Visitors from Africa gained 42.8 thousand persons, an increase of 19.2% in comparison with 2017.

Tourism activity in 2018 achieved an impressive result with a record at 15.5 million international visitors. The tourism sector launched different policies and measures to attract visitors as well as promoted advocacy and introduction of Viet Nam tourism in key markets such as Australia, Japan, European countries, ASEAN (Thailand, Malaysia, Indonesia); applied visa exemption for Western citizens[26] from 2018 to 2021 (instead of one-year visa exemption); piloted e-visa issuance for 40 countries and territories; joined international tourism fairs and welcomed study visits on tourism in Viet Nam.

      II. MACROECONOMICS STABILIZATION AND INFLATION CONTROL

  1. Banking and insurance activities

As of 20th December, 2018, the total payment facilities increased by 11.34% compared to the end of 2017 (same period in 2017 was a rise of 14.19%); capital mobilization of credit institutions increased by 11.56% (same period in 2017 was a growth of 14.5%); credit growth of the economy reached 13.30% (same period in 2017 was an increase of 16.96%).

Although some commercial banks showed moves to raise mobilized interest rates to balance capital sources in order to meet the demand for payments and reserves in the peak business season of the year but with a moderate increase that did not show uptrend of the market. The mobilizing interest rate of VND was popular at 4.3% -5.5% per year for less-than-6-month-term deposits; at 5.3% -6.5% per year for 6-to-12-month-term deposits; at 6.5% -7.3% per year for deposits with over-12-month term. The lending interest rate for VND was about 6% -9% per year for short term and 9% -11% per year for medium and long term. In general, the credit structure continued to focus on priority business production sectors, key projects in line with the policy of the Government in order to effectively support for economic growth.

The insurance market in 2018 continued to achieve a high growth rate. Insurance revenue in the fourth quarter was estimated to increase by 22% compared to the same period last year, of which the revenue of life insurance premium increased by 26%; non-life insurance premium rose by 13%. Generally in 2018, the premium revenue of entire market was estimated at 133.7 trillion VND, an acceleration of 24% over the previous year, of which life insurance reached 88 trillion VND, a rise of 32.8% and non-life insurance reached 45.7 trillion VND, an increase of 9.9%. The financial capacity of insurance enterprises continuously grew steadily. Total assets of insurance enterprises were estimated to reach 384.2 trillion VND, an increase of 21.1% over the previous year; the reinvestment of insurance enterprises in the economy reached 319.6 trillion VND, a rise of 29.5%.

  1. Development investment

In the fourth quarter of 2018, the implementation and disbursement of investment continuously witnessed a positive trend. The total realized investment was estimated at 606.9 trillion VND at current price, increasing by 12.5% ​​over the same period last year, of which the State sector increased by 4.7%; the non-state sector jumped up by 19.7%; the FDI sector climbed by 11.4%.

Overall in 2018, the development investment achieved a good growth. In particular, the private sector continuously revealed strong development thanks to preferential, support policies to facilitate enterprises to invest in manufacture and business expansion that sped up the investment in this sector to gradually increase over the years. Generally in 2018, the total realized investment at current price was estimated at 1,856.6 trillion VND, increasing by 11.2% over the previous year and equaling 33.5% of the GDP, including: state sector reached 619.1 trillion VND, accounting for 33.3% of the total and increasing by 3.9% over the previous year; non-state sector reached 803.3 trillion VND, accounting for 43.3% and rising by 18.5%; foreign direct investment sector reached 434.2 trillion VND, accounting for 23.4% and increasing 9.6%.

 

The growth rate of the realized investment

years of 2016-2018 in comparison with the previous year

(At current price)

%

    2016 2017  2018
Total 108.9 112.3 111.2
State sector 107.3 106.9 103.9
Non-state sector 109.5 117.1 118.5
FDI sector 110.4 112.8 109.6

 

In the investment of the State sector, capital from the State budget in 2018 was estimated at 324.9 trillion VND, equaling 92.3% of the year plan and increasing by 12.5% ​​compared to the previous year (the rate in year 2017 was 93.9% and 6.6%, respectively), including:

– The capital under central management reached 59.3 trillion VND, equaling  89.9% of the year plan and decreasing by 6.1% over the previous year, of which, the realized investment under management of the Ministry of Transportation reached 17.6 trillion VND, equaling 95.5% and going down 44.2%; Ministry of Agriculture and Rural Development: 6,695 billion VND, equaling 82.9% and increasing by 11.2%; Ministry of Health: 2,402 billion VND, equaling 72.7% and decreasing by 37.4%; Ministry of Natural Resources and Environment: 1,238 billion VND, equaling 83.5% and increasing by 51.4%; Ministry of Education and Training: 1,022 billion VND, equaling 75.3% and increasing by 30.2%; Ministry of Culture, Sports and Tourism: 647 billion VND, equaling 86.3% and increasing by 4.7%; Ministry of Construction: 252 billion VND, equaling 94.9% and falling 47.2%; Ministry of Industry and Trade: 211 billion VND, equaling 95.8% and decreasing 12.4%; Ministry of Science and Technology: 205 billion VND, equaling 84.6% and increasing by 45.4%; Ministry of Information and Communications: 121 billion VND, equaling 91.1% and rising by 19%.

– The capital under local management reached 265.6 trillion VND, equaling  92.8% of the year plan and rising 17.7% over the previous year, of which: the State budget capital at provincial level reached 186.8 trillion VND, equaling 89.2% of the year plan and going up 19.1%; the State budget capital at district level reached 66.5 trillion VND, equaling 100.3% and increasing 15.4%; the State budget capital at commune level reached 12.3 trillion VND, equaling 120.3% and increasing by 10.4%. The realized investment from the State budget of some provinces and cities directly under the Central Government was as follows: Ha Noi reached 35.4 trillion VND, equaling 93% of the year plan and rising 7.9% compared to the previous year; Ho Chi Minh City: 29 trillion VND, equaling 80.9% and increasing by 21.2%; Quang Ninh: 12.2 trillion VND, equaling 94.1% and rising by 36.4%; Hai Phong: 9,947 billion VND, equaling 98.5% and going up 34.4%; Binh Duong: 7,991 billion VND, equaling 100% and increasing by 11.7%; Dong Nai: 7,206 billion VND, equaling 99.4% and rising by 27.7%; Ba Ria – Vung Tau: 6,690 billion VND, equaling 91.5% and rising by 35.8%; Thanh Hoa: 6,361 billion VND, equaling 101.1% and rising by 31.7%; Vinh Phuc 6,176 billion VND, equaling 98.6% and decreasing by 3.4%.

Foreign direct investment from the beginning of the year to 20th December, 2018 attracted 3,046 newly licensed projects with a registered capital of 17,976.2 million USD, an increase of 17.6% in number of projects and a decrease of 15.5% of registered capital compared to the same period in 2017. Besides, 1,169 projects which were licensed in the previous year registered to adjust investment with an additional capital of 7,596.7 million USD, a reduction of 9.7% compared to the same period last year. Thus, the total newly registered and additional registered capital in 2018 reached 25,572.9 million USD, a decrease of 13.9% compared to the same period of 2017. Realized foreign direct investment capital in 2018 was estimated to reach 19.1 billion USD, an increase of 9.1% compared to 2017. In 2018, there were 6,496 turns of capital contribution and share purchase of foreign investors with the total of 9.89 billion USD, an increase of 59.8% compared to the same period in 2017, of which 1,113 turns of capital contributions and share purchases increased the charter capital of the enterprise with the capital contribution of 4.25 billion USD and 5,383 turns of foreign investors repurchased domestic shares without increasing charter capital with the value of 5.64 billion USD.

In 2018, the manufacturing  attracted the most foreign direct investment with the registered capital of newly licensed projects reaching 9,067.5 million USD, accounted for 50.5% the total of newly granted capital; real estate activity reached 5,216.8 million USD, accounted for 29%; other sectors reached 3,691.9 million USD, accounted for 20.5%. If including supplementary registered capital of projects licensed from previous years, foreign direct investment in manufacturing this year reached 14,161.3 million USD, accounted for 55.4% of total registered capital; real estate activity reached 5.944.2 million USD, accounted for 23.2%; other sectors reached USD 5,467.4 million, accounted for 21.4%. For capital contribution, buying shares of foreign investors, capital invested in the wholesale and retail; repair of automobiles, motorcycles and other motor vehicles reached 2,863.1 million USD, accounted for 29% of the total value of capital contribution; manufacturing reached 2,426.8 million USD, accounted for 24.5%; other sectors reached 4,602.8 million USD, accounted for 46.5%.

In the whole country, there were 54 provinces and centrally-run cities recording newly foreign direct investment projects licensed in 2018, of which Ha Noi had the largest registered capital with USD 5,041.1 million, accounted for 28% total newly registered capital; followed by Ba Ria – Vung Tau province with 1,803.5 million USD, accounted for 10%; Binh Duong province 1,216.6 million, accounted for 6.8%; Dong Nai province 989 million USD, accounted for 5.5%; Ho Chi Minh City 784.8 million USD, accounted for 4.4%; Hai Phong city 723.8 million USD, accounted for 4%; Tay Ninh province 453.3 million USD, accounted for 2.5%; Bac Ninh province 394.7 million, accounted for 2.2%; Ninh Thuan province 387.5 million USD, accounted for 2.2%.

Among 75 countries and territories had newly licensed investment projects in Vietnam this year, Japan ranked the top with US $ 6,592.1 million, accounted for 36.7% of the total newly registered capital; followed by South Korea with 3,657.6 million, accounted for 20.3%; Singapore $ 1,423.6 million, accounted for 7.9%; China 1,217.1 million, accounted for 6.8%; Hong Kong Special Administrative Region (China) with 1,128.9 million USD, accounted for 6.3%; Thailand 898.6 million, accounted for 5%; France 523.6 million, accounted for 2.9%.

Vietnam’s outward foreign direct investment in 2018 had 149 new projects granted investment certificates with a total capital of 376.2 million USD; 35 projects adjusted capital with a supplementary capital of 56 million USD. In general, the total outward foreign direct investment of Vietnam (newly licensed and supplementary capital) reached 432.2 million USD in 2018, of which finance and banking reached 105.8 million USD, accounted for 24.5% total investment; wholesale and retail; repair of automobiles, motorcycles, motorbikes and vehicles with other engines reached 82.9 million USD, accounted for 19.2%; agriculture, forestry and fishery reached 52.3 million USD, accounted for 12.1%; manufacturing reached 52.1 million USD, accounted for 12%. In 2018, Viet Nam outward invested in 38 countries and territories, of which Lao People’s Democratic Republic was the leading country with 81.5 million USD, accounted for 18.9% of total; Australia: 55.5 million USD, accounted for 12.8%; and United States: 53 million USD, accounted for 12.3%.

  1. State budget revenue and expenditure

The state budget revenue from the beginning of the year to December 15, 2018 was estimated at 1,272.5 trillion VND, equaling 96.5% of the yearly estimate, of which: domestic revenue reached 1,012.3 trillion VND, made up 92.1%; crude oil revenue was 59.4 trillion VND, equaling 165.5%; budget balance revenue from export and import gained 195.9 trillion VND, equaling 109.4%. In domestic revenue, state-owned enterprises reached 138.9 trillion VND, equaling 83.4% of the yearly estimate; FDI enterprises (excluding crude oil) achieved 168.4 trillion VND, equaling 75.6%; non-state revenue reached 193.5 trillion VND, accounting for 88.8%; tax on personal income was 89.1 trillion VND, equaling 91.9%; environmental protection tax gained 42.2 trillion VND, represented 86.5%; land and housing revenue recorded 121.4 trillion VND, made up 141.4%.

The state budget expenditure from the beginning of the year to December 15, 2018 was estimated at 1,272.1 trillion VND, equaling 83.5% of the yearly estimate, of which recurrent expenditures reached 874.5 trillion VND, made up 93%; development investment expenditure was 260.2 trillion VND, equaling 65.1%; interest payment was 102.2 trillion VND, accounting for 90.8%.

  1. Import and export of goods and services

      a) Export of goods

In November 2018, export turnover of goods reached 21,747 million USD, 147 million USD higher than the estimated, of which: footwear was 127 million USD higher; iron and steel gained 73 million USD higher; phones all of kinds and their parts reached over 72 million USD; textiles and sewing products; and electronic goods, computers and their parts were 61 million USD and 64 million USD lower than the estimated, respectively.

In December 2018, export turnover of goods was estimated at 21.00 billion USD, down 3.4% compared to the previous month, of which: export turnover of the domestic economic sector achieved 5.97 billion USD, grew by 1%; export turnover of the FDI sector (including crude oil) reached 15.03 billion USD, went down 5.1%. In December of 2018, some products recorded a rise in exports turnover over the last month: Crude oil was 41.3%; coal was 37.3%; rice and vegetables were 14.3%. Some products recorded a decrease in exports turnover: machinery, apparatus and part was 3.2%; iron and steel fell by 11.2%; chemicals down by 16.9%; phones all of kinds and their part reduced 20.4%; gasoline went down 30.6%. In December, export turnover of goods went up 6.5% compared to the same period last year, of which: export turnover of the domestic economic sector increased by 4%, the FDI sector (including crude oil) was 7.5%. Some products witnessed an increase in export turnover over the same period last year: machinery, apparatus and part was 21.7%; footwear increased by 12.3%; textiles and sewing products was 11.2%; electronic goods, computers and their parts were 10.3%.

In the fourth quarter of 2018, export turnover reached 65.26 billion USD, an increase of 8.6% compared to the same period in 2017 and a slight decrease of 0.03% compared to the third quarter of this year. There were 10 commodity items gaining export value of over 1 billion USD in the fourth quarter, of which phones all of kinds and their parts took the leading position with 13.3 billion USD, accounting for 20.4% of export turnover and fell of 3.1%; textiles and sewing products reached 8 billion USD, climbed up by 16.7%; electronic goods, computers and their part reached 7.9 billion USD, rose by 5.9%.

The whole year of 2018, export turnover was estimated at 244.72 billion USD, up by 13.8% compared to 2017, of which: the domestic economic sector was 69.20 billion USD, a upturn of 15.9%, accounting for 28.3% of total export turnover; (including crude oil) reached 175.52 billion USD, an increase of 12.9%, accounting for 71.7% (down 0.6 percentage points compared to 2017). In 2018, the domestic economic sector changed positively when reaching the growth rate of export turnover higher than the FDI sector with the proportion of the total export turnover increased compared to 2017[27].

In 2018, 29 commodity items achieved export turnover of over 01 billion USD, accounting for 91.7% of the total export turnover, of which 9 commodities gained over 5 billion USD and 5 commodities reached over 10 billion USD, particularly: phones and their parts: 50 billion USD, up by 10.5%; garment: 30.4 billion USD, up by 16.6%; electronic goods, computers and their parts: 29.4 billion USD, up by 13.4%; machinery and equipments: 16.5 billion USD, up by 28%; footwear: 16.3 billion USD, up by 11%. Generally, the export proportion of some key commodities was recorded in the FDI sector, of which: Phones and their parts: 99.7%; electronic goods, computers and their parts: 95.6%; machinery and equipments: 89.1%; and garment: 59.9%. Besides that, some agricultural and fishery products achieved a good growth in 2018: Fishery: 8.8% billion USD, up by 6.3%; fresh, processed vegetables and fruit: 3.8 billion USD, up by 9.2%; coffee: 3.5 billion USD, up by 1.2% (volume increasing by 20.1%); and rice gained 3.1 billion USD, a rise of 16% (volume rising by 4.6%). Some agricultural products gained an increase in export volume but a decrease in average export prices, thus their export turnover witnessed a fall compared to the previous year, particularly: cashew nut gained 3.4 billion USD, a reduction of 3.9% (volume rising by 6.2%); rubber: 2.1 billion USD, a decrease of 6.1% (volume up by 14.5%); pepper: 757 million USD, a fall of 32.2% (volume up by 8.1%). Generally in 2018, crude oil continued to sharply decrease in both volume and export turnover in comparison with last year: export turnover of crude oil was 2.3 billion USD, a decline of 21.2% (volume declining by 39.5%).

In terms of structure of export commodities in 2018, the heavy industrial group and minerals were estimated at 123.7 billion USD, rising by 15.9% over last year; accounting for 50.5% of the total export turnover of goods (an increase of 0.9 percentage points over 2017), of which phones and their parts gained 50 billion USD, an increase of 10.5% and a share of 20.4%. The light industrial group and handicraft were estimated at 90.2 billion VND, climbing up by 12.6% and making up 36.9% (a decline of 0.3 percentage points). The agricultural and forestry products achieved 22 billion USD, a rise of 10% and a share of 9% (a decline of 0.3 percentage points). The fishery commodities reached 8.8 billion USD, jumping up by 6.3% and making up 3.6% (a decline of 0.3 percentage points).

Regarding exported goods markets of Viet Nam in 2018: the US was the biggest export market with turnover of 47.5 billion USD, climbing up by 14.2%, of which phones and their parts soared by 46.7%; footwear up by 15.3%; garment up by 13.7%. The following was EU with 42.5 billion USD, a rise of 11%, of which electronic goods, computers and their parts went up by 23.2%; phones and their parts up by 16.2%; garment up by 10.5%. China market achieved 41.9 billion USD, edged up by 18.5%, of which phones and their parts up by 52.8%; electronic goods, computers and their parts up by 25.8%; vegetables and fruits up by 10.2%. ASEAN market gained 24.7% billion USD, an acceleration of 13.7%, of which rice jumped up by 105.5%; steel and iron up by 39.1%; garment up by 37.4%. The figures for Japan were 19 billion USD, a rise of 12%, of which garment went up 24.8%; electronic goods, computers and their parts up by 14.1%; machinery and equipments up by 7.7%. Korea gained 18.3 billion USD, a jump of 23.2%, of which electronic goods, computers and their parts climbing up by 40.8%; garment up by 32.6%; phones and their up by 12.6%.     

      b) Import of goods

The import turnover of goods in 11/2018 reached 21,594 million USD, 406 million USD lower than estimated figure, of which machinery, instrument, accessory were 35 million USD lower; materials for textile, garment and footwear were 38 million USD lower; metals were 41 million USD lower; fabric were 48 million USD lower; wheat were 62 million USD lower; iron and steel were 79 million USD lower; electronic goods, computers and their parts were 89 million USD lower; coal were 50 million USD higher than estimated.

The import turnover of goods in December was estimated at 21.20 billion USD, going down 1.8% over the previous month, of which the domestic economic sector gained 8.55 billion USD, going up by 0.5%; foreign invested sector reached 12.65 billion USD, decreasing by 3.3%. Import turnover of some goods declined compared to the previous month: Cars went down by 4.5%; seafood decreased by 4.6%; phones and their parts decreased by 7.6%; chemicals dropped 10.9%; crude oil decreased by 14.1%; petroleum fell down by 27.9%. Compared to the same period in 2017, import turnover in December increased by 5.3%, of which the domestic economic sector went up by 4.2%; foreign invested sector rose by 6.1%. Import turnover of some goods increased over the same period last year, particularly: means of transportation and spare parts rose by 98.8%; motorcycles and spare parts went up by 98.7%; fabric jumped up by 17%; iron and steel climbed up by 7.8%; electronic goods, computers and their parts increased by 5.2%.

In the fourth quarter of 2018, import turnover reached 64.37 billion USD, an increase of 11.2% compared to the same period in 2017 and a rise of 3.3% compared to the previous quarter. There were 15 import goods worth over 1 billion USD in the fourth quarter, accounting for 73.1% of the total import value, of which: Electronic goods, computers and their parts attained the highest value with 11.7 billion USD (accounting for 18.2% of the total value of imports), going up 11.5% over the same period in 2017; machinery and equipments reached 9.1 billion USD, soaring up 9.3%; phones and their parts reached US $ 5 billion, going down by 9.8%; fabric gained 3.5 billion USD, expanding by 12.6%; plastics achieved 2.5 billion USD, turning up by 23.5%; iron and steel reached US $ 2.4 billion, growing up by 1.9%; metals attained 1.6 billion USD, increasing by 6.3%.

In 2018, import turnover was estimated at 237.51 billion USD, increasing by 11.5% over the previous year, of which the domestic economic sector reached 94.80 billion USD, going up by 11.3%; FDI sector attained 142.71 billion USD, rising by 11.6%. If excluding the price factor, import turnover of the whole year increased by 9.5% compared to 2017.

In 2018, there were 36 products estimated to import over 1 billion USD, accounting for 90.4% of total import turnover, of which 4 items were over 10 billion USD, accounting for 44.3%. Many products for domestic production, processing and assembly increased turnover compared to last year: electronic goods, computers and their parts reached 42.5 billion USD, up by 12.5%; machinery and equipments gained 33.7 billion USD, down by 0.5%; phones and their parts reached 16 billion USD, down by 2.6%; fabric attained 12.9 billion USD, up by 13.5%; iron and steel reached 9.9 billion USD, rising by 9%; plastics reached 9.1 billion USD, increasing by 20%; petroleum reached 7.6 billion USD, up by 7.8%; metals gained 7.3 billion USD, up by 24.9%; plastic products reached 5.9 billion USD, up by 8.1%; textile and garment materials and footwear reached 5.7 billion USD, up by 5.7%; chemicals reached 5.2 billion USD, increasing by 25.2%.

Regarding imported goods structure in 2018, the group of capital goods was estimated at 217 billion USD, growing up 12% compared to 2017 and accounting for 91.4% of total import turnover (increasing by 0.4 percentage points in comparison with 2017), of which the group of machinery and equipments reached 101 billion USD, increasing by 4.1% and accounting for 42.5% (a decline of 3 percentage points); Group of raw materials and fuels reached 116 billion USD, rising by 19.8% and accounted for 48.9% (a growth of 3.4 percentage points). Consumer goods was estimated at 20.5 billion USD, rising by 6.8% and accounting for 8.6% (down by 0.4 percentage points).

Regarding the imported goods market in 2018, China was still the largest import market of Vietnam with a turnover of 65.8 billion USD, an increase of 12.3% compared to 2017, of which petroleum increased by 89,4%; fabric increased by 18%; electronic goods, computers and their parts rose by 11.4%. The following was Korean market with import turnover of 47.9 billion USD, a rose of 2%, of which electronic goods, computers and their parts increased by 14.3%; fabric grew up by 6.6%; phones and their parts increased by 1.6%. ASEAN reached 32 billion USD, an increase of 13%, of which completely built-up cars (CBU) increased by 40.2%; machinery, equipment and spare parts rose by 14.1%; petroleum increased by 6.8%. Japan reached 19.3 billion USD, a growth of 13.4%, of which electronic goods, computers and components increased by 29.6%; iron and steel grew up by 15.3%; machinery, equipment and spare parts increased by 2.6%. EU reached 13.8 billion USD, rose by 13.1%, of which electronic goods, computers and their parts increased by 29.2%; fabric went up by 23.4%; machinery, equipment and spare parts increased by 15.1%. The United States attained 12.8 billion USD, an increase of 36.7%, of which animal feed and raw materials increased by 157.6%; electronics, computers and their parts increased by 7.9%.

Export turnover increased, trade balance in November saw an export surplus of 153 million USD[28]; December estimated to gain trade deficit of 200 million USD. For the whole year of 2018, trade surplus was 7.2 billion USD[29], of which the domestic economic sector saw a trade deficit of 25.6 billion USD; the FDI sector (including crude oil) witnessed a trade surplus of 32.8 billion USD.

         c) Export and import of services

In the fourth quarter of 2018, the export turnover of services reached 3.7 billion USD, an increase of 9.3% compared to the same period of 2017 and an increase of 3.1% compared to the third quarter of 2018; import turnover of services reached 4.6 billion USD, increased by 5.7% and decreased by 8.4% compared to the third quarter of 2018.

Export turnover of services in 2018 was estimated at 14.8 billion USD, increasing by 13.2% compared to 2017, of which tourism services reached 10.1 billion USD (accounting for 68.1% of total turnover), increased by 13.4%; transportation services reached 2.9 billion USD (accounting for 19.5%), growing up by 14.6%. Import turnover of services in 2018 was estimated at 18.5 billion USD, increasing by 8.1% over the previous year, of which transport services reached 8.8 billion USD (accounting for 47.8% of total turnover), rising by 7.5%; tourism services reached 5.7 billion USD (accounting for 31%), a rise of 13.7%. Service trade deficit in 2018 was 3.7 billion USD, equaling 24.9% of service export turnover.

  1. Price index

      a) Consumer price index

Consumer price index (CPI) in 12/2018 decreased by 0.25% compared to the previous month, in which the transportation group fell the most with 4.88% due to the influence of 2 downward adjustments in gasoline and oil prices on 6/12/2018 and on 21/12/2018, so that gasoline and oil prices fell by 10.77% (leading to the decrease in overall CPI of 0.45%). Housing and construction materials dropped 0.89% mainly because the gas price in the month decreased by 9.64%. There were 8 out of 11 major commodity and service groups witnessing an increase in CPI in December compared to the previous month, including: medicines and medical services increased by 5.76% (health services increased by 7.53%) due to upward adjustment in prices of health service in accordance with Circular No. 39/2018/TT-BYT dated November 30, 2018 (made CPI increase by 0.29%); garment, hats and footwear rose by 0.43%; beverages and tobacco products grew up by 0.22%; equipment and household appliances went up by 0.16%; food and catering services increased by 0.05% (food increased by 0.17%[30]; foodstuffs decreased by 0.02%[31]); post and communication group and culture, entertainment and tourism group both increased by 0.02%; other goods and services grew up by 0.24%. Particularly, price of education group remained unchanged compared to the previous month.

Generally in the fourth quarter of 2018, CPI increased by 0.6% compared to the previous quarter and by 3.44% compared to the 4th quarter of 2017, of which the education group increased by 6.51% over the same period last year (education services increased by 7.41%); transportation increased by 5.06%; food and catering services grew up by 4.99% (food increased by 2.56%; foodstuffs increased by 6.07%); housing and construction materials increased by 2.1%; culture, entertainment and tourism increased by 1.71%; garment, hats and footwear went up by 1.64%; medicine and health services rose by 1.6%; beverage and cigarettes increased by 1.52%; equipment and household appliances climbed up by 1.33%; goods and other services rose by 2.35%; Particularly, the group of post and communication fell by 0.83%.

The average CPI in 2018 increased by 3.54% compared to the rate of 2017, less than the target set by the National Assembly. CPI in December 2018 increased by 2.98% compared to December 2017 and a monthly average increase of 0.25%. The average CPI in 2018 increased due to the following main reasons:

– Provinces adjusted the price of medical services and health services in line with Circular No. 02/2017/TT-BYT and Circular No. 39/2018/TT-BYT, leading to an increase in health service prices of 13.86% (the overall CPI increased by 0.54%).

–  The roadmap of increasing tuition fees was continuously implemented according to Decree No. 86/2015/ND-CP that made the price index of education services group in 2018 increase by 7.12% compared to 2017 (leading to a CPI increase of 0.37%).

– Regional minimum wage was increased for employees in enterprises from 1/1/2018 and basic salary level applicable to officials, public servants, and armed forces was risen from 01/7/2018 that caused an increase in the average price of some types of services such as repairing household appliances, housing maintenance, electricity and water services, and housekeeping service in 2018 from 3% to 5% compared to 2017.

– In addition, there were a number of market factors, such as food prices increased by 3.71% (leading to the overall CPI increase of 0.17%); pork price increased by 10.37% (leading to the overall CPI increase of 0.44%); ready-made clothes and tobacco, beverage increased by 1.42%; public transport service prices increased by 2.54%; gas prices rose by 6.93%; gasoline and oil prices grew up by 15.25% (making the overall CPI increase by 0.63%); housing maintenance materials prices rose by 6.59%; rental housing prices increased by 1.01%; tourism package price increased by 1.87% and some essential goods went up again such as fuel, iron, steel prices …

Besides the reasons for increasing CPI in 2018, there were a number of factors contributing to curb CPI: (i) Ministry of Health issued Circular No. 15/2018/TT-BYT dated 30/5/2018 to unify the price of medical examination and treatment services covered by health insurance for hospitals at the same rank nationwide and guide the application of prices and payment for medical examination and treatment expenses in certain cases, whereby health price indexes in 7/2018 decreased by 7.58% (leading to a decrease of overall CPI of 0.29%); (ii) All ministries and levels actively implemented measures to stabilize market prices, especially during the Lunar New Year, with the aim of constraining  sudden price increase; (iii) The State Bank of Vietnam directed a monetary policy firming to the target of macroeconomic stability and inflation control.

Core inflation in 12/2018 increased by 0.09% over the previous month and increased by 1.7% compared to the same period last year. The average core inflation in 2018 increased by 1.48% compared to the average of 2017.

          b) Gold and US dollar price index

Domestic gold price fluctuated in line with world gold price. Gold price index in 12/2018 increased by 0.41% compared to the previous month; decreased by 0.41% compared to the same period in 2017; the average of 2018 increased by 2.36% compared to 2017. The US dollar price index in 12/2018 decreased by 0.07% over the previous month and increased by 2.69% over the same period in 2017; the average of 2018 rose by 1.29% compared to 2017.

         c) Producer price index

The price index for agriculture, forestry and fishing in the fourth quarter of 2018 increased by 0.8% compared to the previous quarter and 4.38% over the same period last year, of which the price index for agriculture increased by 0.82% and 4.83%; forestry grew up by 0.97% and 4.2%; fishing increased by 0.73% and 3.01%. For the whole year of 2018, the price index for agriculture, forestry and fishing increased by 1.98% compared to 2017, of which the index of agriculture price index rose by 1.23%; forestry increased by 3.69%; fishing increased by 4.15%.

The producer price index for industry in the fourth quarter increased by 0.4% compared to the previous quarter and 2.8% compared to the same period last year, of which the producer price index of mining decreased by 1.15% and rose by 9.89%; manufacturing rose by 0.44% and 2.09%; production and distribution of electricity, gas, hot water, steam and air conditioner increased by 0.52% and 4.45%; water supply, sewerage and remediation activities increased by 0.6% and 2.57%. For the whole year, the industrial producer price index increased by 3.09% over the previous year, of which the producer price index for mining rose by 12.68%; processing and manufacturing products rose by 2.24%; production and distribution of electricity, gas, hot water, steam and air conditioner increased by 4.48%; water supply, sewerage and remediation activities increased by 2.1%.

Producer price index for services in the fourth quarter increased by 0.23% compared to the previous quarter and increased by 3.07% compared to the same period last year, of which the producer price index of some activities were as follows: accommodation and catering service activities rose by 0.27% and 2.31%; transportation and storage services rose by 0.46% and 5.7%; education and training increased by 3.37% and 8.17%; health and social work activities increased by 0.02% and 0.19%. Generally in 2018, the service producer price index increased by 2.98% compared to 2017, of which the producer price index of education and training increased by 6.83%; human health and social work activities increased by 6.77%; transportation and storage increased by 4.15%; accommodation and catering service activities rose by 2.27%.

         d) Merchandise export, import price index

The merchandise export price index of the fourth quarter of 2018 decreased by 0.44% compared to the previous quarter and by 0.44% compared to the same period last year, of which the price index of agricultural products and foodstuffs fell by 0.6% and 0.3%; fuel increased by 3.91% and 25.98%; manufactured products fell by 0.46% and 0.19%. Export price index of some items in the fourth quarter was as follows: Petroleum and oil of all kinds increased by 5.27% compared to the previous quarter and increased by 31.17% over the same period last year; crude oil rose by 3.73% and 25.21%; iron and steel rose by 1.76% and 9.16%; mobile phones and mobile devices decreased by 7.71% and 8.75%; coffee decreased by 5.37% and 15.94%; pepper declined by 1.59% and 18.36%; rubber fell by 0.67% and 3.71%. In 2018, the export price index increased by 0.9% compared to 2017, of which the price index of agricultural products and foodstuffs increased by 0.5%; fuel increased by 22.95%; manufactured products increased by 0.24%. Export price index in 2018 of some items: Iron and steel increased by 11.38%; rice rose by 7.1%; electronic goods, computers and their parts increased by 3.79%; fishery products increased by 3.46%; pepper decreased by 23.64%; rubber fell by 7.19%; coffee declined by 6.99%; mobile phones and devices decreased by 4.58%.

The import price index of the fourth quarter of 2018 increased by 0.31% over last quarter and by 2.09% over the same period last year, of which import price index of agricultural products and foodstuffs increased by 0.12% and 1.59%; fuel climbed up by 1.81% and 11.85%; manufactured products rose by 0.25% and 1.67%. Import price index in the fourth quarter of some items: Petroleum oil increased by 2.68% compared to the previous quarter and by 19.5% over the same period last year; iron and steel rose by 1.29% and 7.97%; animal feed and materials rose by 2.15% and 3.56%; liquefied petroleum gas decreased by 9.74% and 5.81%; fishery products declined by 1.83% and 2.25%; auxiliary materials for textile, garment, leather and footwear fell by 1.24% and 2.01%. Generally in 2018, the import price index increased by 1.82% compared to 2017, of which the price index of agricultural products and foodstuffs increased by 1.24%; fuel increased by 10.06%; manufactured products rosed by 1.48%. Import price index in 2018 of some commodities: Petroleum oil increased by 15.01%; liquefied petroleum gas rose by 8.57%; iron and steel climbed up by 7.48%; chemicals grew up by 5.73%; rubber reduced by 3.95%; phones and their parts decreased by 3.27%.

The merchandise term of trade[32] in the fourth quarter of 2018 decreased by 0.74% compared to the previous quarter and declined by 1.62% compared to the same period last year. In 2018, the merchandise term of trade decreased by 0.9% compared to 2017, of which the merchandise term of trade of petroleum oil increased by 12.96%; computers, electronic goods and their parts increased by 7.3%; fishery products increased by 6.34%; vegetables and fruits fell by 6.14%; chemicals decreased by 5.42%; and rubber declined by 3.37%.

     III. SOCIAL ISSUES

  1. Population, labor and employment

The national average population in 2018 was estimated at 94.67 million persons, an increase of 988.4 thousand persons, equivalent to an increase of 1.06% in comparison with 2017, of which the urban population was 33.83 million persons, accounted for 35.7%; the rural population was 60.84 million persons, made up 64.3%; meanwhile by gender, the male and female population was 46.79 million persons and 47.88 million persons respectively with the corresponding share of 49.4% and 50.6%.

The total fertility rate in 2018 was estimated at 2.05 children per woman, which was lower than the replacement level fertility. The sex ratio at birth was 115.1 male births per 100 female births; the crude birth rate was 14.58‰; and the crude death rate was 6.82‰. The infant mortality rate (the number of death children under one year of age per 1000 live births) was 14.24‰. The under-5 mortality rate was 21.38‰. The national average life expectancy at birth was 73.5 years in 2018, in which the average life expectancy of male and female was 70.9 and 76.2 years, respectively.

In Q4 2018, the labor force aged 15 years and over of the whole country was estimated at 55.7 million persons, an increase of 286.6 thousand persons compared to previous quarter and increased by 530.7 thousand persons compared to the corresponding period of the preceding year, in which male employees was 29.2 million persons, accounted for 52.3%; female employees was 26.5 million persons, made up 47.7%. The employed population aged 15 years and over working in urban and rural area was 17.9 and 37.8 million persons respectively with the corresponding share of 32% and 68%. In 2018, at national level, the employed population aged 15 years and over was 55.4 million persons, a year-on-year increase of 566.2 thousand persons.

Labor force in working age was estimated at 49 million persons in Q4 2018, an increase of 289.8 thousand persons compared to previous quarter and a year on year increase of 522.5 thousand persons, of which male employees was 26.8 million persons, made up 54.8%; female employees was 22.2 million persons, accounted for 45.2%; employees in urban and rural area was 16.5 million and 32.5 million persons, respectively with the corresponding share of 33.6% and 66.4%. In 2018, nationwide labor force in working age was 48.7 million persons, rose by 549.8 thousand persons compared to the previous year.

In Q4 2018, the employed population aged 15 years and over was estimated at 54.6 million persons, of which employees of the agriculture, forestry and fishery sector were 20.6 million persons, made up 37.7% of the total employed population; the industry and construction sector was 14.6 million persons, the corresponding share of 26.7%; and the service sector was 19.4 million persons, with the corresponding share of 35.6%. In 2018, employed population aged 15 years and over was 54.3 million persons, of which the agriculture, forestry and fishery sector employed 20.7 million persons, made up 38.1% of the total employed population (fell by 2.1 percentage points compared to the previous year); the industry and construction sector was 14.4 million persons, accounted for 26.6% (rose by 0.8 percentage points); service sector was 19.2 million persons, the corresponding share of 35.3% (increased by 1.3 percentage points).

In Q4 2018, nationwide unemployment rate was estimated at 1.99%; the unemployment rate of labor force in working age was 2.18%; youth unemployment rate (aged 15 to 24) was 6.78%. In 2018, nationwide unemployment rate was estimated at 2.0%, of which unemployment rate in urban and rural area was 2.95% and 1.55%, respectively. Unemployment rate of labor force in working age in 2018 was 2.19%, of which urban area was 3.10%; rural area was 1.74%[33]. In 2018, youth unemployment rate was estimated at 7.06%, of which urban and rural was 10.56% and 5.73%, respectively.

Underemployment rate at working age in Q1, Q2 and Q3 2018 was 1.52%; 1.43%, 1.45% respectively and estimated figure for Q4 was 1.44%. In 2018, underemployment rate at working age was estimated at 1.46%, of which underemployment rate in urban and rural area was 0.69% and 1.85%, respectively (the corresponding figures for 2017 was 1.66%; 0.84% and 2.07%).

Percentage of employment in the informal economy in non-agricultural activities[34] in Q1 and Q2 2018 was 6.3%; Q3 and Q4 was 56.2%, of which urban and rural area was 48% and 63%, respectively. In 2018, percentage of employment in the informal economy in non-agricultural activities gained an estimation of 56.3%, of which urban and rural area was 48% and 63%, respectively (in 2017, corresponding figures were 57.2%; 48.8% and 64.5%).

  1. Labor productivity

In 2018, labor productivity of the economy at current prices approximately reached 102 million VND per worker (equivalent to 4,512 USD per worker), a growth of 8.8 million VND per worker over 2017 (equivalent to 346 USD). At 2010 constant prices, labor productivity of the economy in 2018 witnessed a year on year increase by 5.93%, with average annual growth rate of 5.75% for 2016-2018.

The labor productivity of Viet Nam had significantly improved in the direction of increasing steadily over the years[35], and Viet Nam was a country with a high growth rate of labor productivity in the ASEAN. Generally for 2008-2017, labor productivity by PPP 2011 of Viet Nam annually increased by an average of 4%, higher than the average increase of Singapore (0.9%); Malaysia (1.1%); Thailand (2.6%); Philippines (3.3%); Indonesia (3.4%). However, the current level of labor productivity in Viet Nam was still very low compared to other countries in the region: labor productivity by PPP 2011 of Viet Nam was 10,232 USD, only equal to 7.2% of the labor productivity of Singapore; 18.4% of Malaysia; 36.2% of Thailand; 43% of Indonesia and 55% of the Philippines. Remarkably, the gap in labor productivity levels between Viet Nam and other countries continued to increase[36]. These were gap and challenges that Viet Nam had to confront to enable its economy to catch up with labor productivity of other countries.

  1. Living standards and social security

Living standards are increasingly improved. In 2018, national income per capita per month was estimated to reach 3.76 million VND (an increase of 660 thousand VND compared to 2016), with average annual growth rate of 10.2% for 2016-2018. The rate of multi-dimensional poverty household in 2018 was estimated at 6.8%, a decline of 1.1 percentage points against 2017.

Food shortage among farmers in 2018 witnessed a sharp fall compared to the previous year, the whole country witnessed 105 thousand households suffering from food shortage, fell by 42.1%, corresponding to 420 thousand persons suffering from food shortage, declined by 43.7%. This year, a sharp food shortage was the result of positive direction and administration of the Party and the State and the efforts of the people in restructuring of crops and livestock, developing industries to create more jobs and, at the same time, the weather was quite favorable for agricultural production and the prevention and mitigation of natural disasters had been implemented synchronously from the beginning of the year. The food shortage was mainly occurred in the first months of the year, in which there were 34.4 thousand households suffering from food shortage, corresponding to 129.3 thousand persons suffering from food shortage, in May there were 31.5 thousand households suffering from food shortage, corresponding to 131.5 persons suffering from food shortage. From June until the end of the year, food shortage among farmers experienced a gradual downward trend. To overcome this problem, from the beginning of the year all administrative levels, sectors and organizations from central to local level supported these households with 7.4 thousand tons of food and more than 1.6 billion VND.

Social security continued to be paid attention by authorities. According to the preliminary report, the total funding for social security and poverty reduction in 2018 was 4,977 billion VND, including 2,792 billion VND of gifts and assistances for policy beneficiaries; 1,487 billion VND to support poor households and 698 billion VND for hunger-relief  and other social reliefs. Besides, there were nearly 23.6 million health insurance cards, free health care books/cards were donated to policy beneficiaries in the whole country.

  1. Education and Training

In the school year 2018-2019, the education and training sector devoted efforts to prepare facilities and teachers to implement the new general education program pursuant to the Resolution No.51/2017/QH14 of the National Assembly with the targets as follows: to improve the efficiency of state management for preschool education and improve the quality of higher education. In this school year, there were 5.3 million preschool children (0.7 million children enrolled nursery schools and 4.6 million children enrolled kindergartens); 16.6 million general school pupils enrollment (8.4 million primary school pupils; 5.6 million lower secondary school pupils; 2.6 million upper secondary schools pupils) and 1.5 million college, university and secondary school students[37].

Vocational education played an important role in training human resources directly in production, business and services, contributing to competitiveness improvement of the economy. The network of vocational education establishments continued to develop in the direction of diversity in the type of training and operation model. Currently, there were 1,954 vocational education establishments in Viet Nam, including 394 colleges, 515 secondary schools and 1,045 continuing education centers. Vocational training in 2018 enrolled 2,210 thousand students, of which there are 545 thousand college and secondary students; short-term training and other vocational training programs enrolled 1,665 thousand people, supported vocational training for 800 thousand rural workers according to the Prime Minister’s Decision No. 1956/ QD-TTg. In 2018, the number of graduates of vocational training classes was 2,100 students, of which college and secondary level students were 440,000, and short-term training and other training programs were 1,660 thousand students.

  1. Epidemic diseases and food poisoning

In December 2018, the whole country witnessed 24.4 thousand cases of hemorrhagic fever (3 deaths); 16.8 thousand cases of hand, foot and mouth disease; 54 cases of typhoid; 57 cases of viral encephalitis; 38 cases of whooping cough; 1 case of human streptococcal infection, 3 deaths due to rabies. In 2018, the whole country had 125.2 thousand cases of hemorrhagic fever (16 deaths); 127.4 thousand cases of hand, foot and mouth disease; 628 cases of typhoid; 760 cases of viral encephalitis (21 deaths); 33 cases of meningococcal meningitis (2 deaths); 673 cases of whooping cough (2 deaths); 77 cases of human streptococcus suis infection (6 deaths); 2 cases of Zika virus infection; 72 deaths from rabies.

As of 18 December 2018, the total number of alive HIV-infected persons over the country was 208.8 thousand persons and the number of cases turned to AIDS was 94.9 thousand persons; the number of persons died of HIV/AIDS nationwide was 98.16 thousand persons.

There were 5 cases of food poisoning in the month with 327 poisoned persons. In 2018, there were 84 cases of food poisoning in the whole country, caused 3,174 poisoned persons, of which 11 deaths.

  1. Culture and Sport

Cultural activities in 2018 focused on celebrating Great Holidays, major events of the country and creating cultural life in residential areas. The events were organized solemnly, safely, economically and effectively; attracted attention and participation of people. Festival management focused on promoting the positiveness of folk festivals and in line with cultural traditions. Security, traffic safety, fire and explosion prevention, environmental sanitation and business activities in festivals were ensured; the awareness of civilized lifestyle in festivals of the people and tourists had been raised. Negative phenomena and the violent and offensive customs in the festivals decreased compared to the previous year.

Physical training and mass sport activities continued to be strengthened and improved, in association with the campaign named “All people do physical exercise as the Great Uncle Ho did”, launched movement of drown prevention by teaching children nationwide how to swim, a day of Olympic for people’s health, and successfully organized the Sports Games at all levels and the 8th National Games in 2018.

In 2018, Viet Nam’s high performance sports achieved many outstanding achievements. Viet Nam Sport Delegation won 922 medals in international tournaments, of which 391 gold medals, 296 silver medals, 235 bronze medals. At the 3rd Asian Para Games, Viet Nam Sport Delegation won 8 gold medals, 8 silver medals, 24 bronze medals ranked 12 among the total 44 participating delegations;. At the 18th Asian Games, Viet Nam Sport Delegation won 38 medals, of which 4 gold medals, 16 silver medals, 18 bronze medals, ranked 17  among the total 45 participating delegations. Especially, Viet Nam U23 Football team excelled in winning silver medal at the AFC U-23 Championship, Viet Nam Olympic team ranked fourth at ASIAD 18 and the National Football team won gold medal at AFF Championship.

  1. Traffic accidents

In December (from 16 November to 15 December), there were 1,412 traffic accidents occurred nationwide, including 767 traffic accidents from less serious to more and 645 traffic collisions causing 630 deaths, 423 injuries and 665 slight injuries. Compared to the same period last year, the number of traffic accidents in December 2018 decreased by 9.7% (the number of traffic accidents from less serious to more increased by 0.3% and the number of traffic collisions went down by 19.2%); the number of deaths declined by 9.9%; the number of injuries rose by 5.5% and the number of slight injuries decreased by 23.8%

In 2018, there were 18,232 traffic accidents occurred nationwide, including 9,446 traffic accidents from less serious to more and 8,786 traffic collisions, causing 8,125 deaths; 5,124 wounded and 9,070 slight injuries. Compared to the previous year, in 2018 traffic accidents decreased in all three criteria, the number of accidents decreased by 9.2% (the number of traffic accidents from less serious to more decreased by 3.4%; the number of traffic collisions went down by 14.8%); the number of deaths decreased by 1.9%; the number of injured people decreased by 8.3% and the number of slight injuries decreased by 20.8%. Of the total of 9,446 traffic accidents from less serious to more, 9,202 cases (accounted for 97.4%) occurred on the road, causing 7,958 deaths and 5,060 injuries. On average, 50 traffic accidents occurred a day in 2018 nationwide (down 5 cases compared to 2017), including 26 traffic accidents from less serious to more and 24 traffic collisions causing 22 deaths, 14 injuries and 25 slight injuries.

  1. Damages caused by natural disasters

In 2018, main natural disasters were heavy rain, flash floods, flood and landslides. Damage caused by natural disasters in 2018 was much lower than in 2017. There were 218 deaths, missing and 157 injuries. More than 260 thousand hectares of rice and crops were damaged, down 28.5%; 1,967 houses collapsed, swept away, decreased by 76.3% and 119 thousand houses were hit by landslide, roof ripped-off, flooded, down 79.7%. Total loss caused by natural disasters in 2018 was estimated at 15.7 trillion VND, down 73.8% compared to 2017. Localities suffered much from natural disasters in 2018 were Thanh Hoa with 37 deaths and missing, 12 wounded, 22.8 thousand houses collapsed, swept away and damaged, 27.7 thousand hectares of rice and crops were damaged, more than 160 thousand cattle and poultry died and damage was estimated at 2.8 trillion VND; Nghe An with 8 deaths, 6.6 thousand houses collapsed, swept away and damaged, 41 thousand hectares of rice and crops were damaged, 44,000 cattle and poultry died, estimated damage was nearly 1.8 trillion VND; Yen Bai with 24 deaths and missing, 23 injured, 3.4 thousand houses collapsed, swept away and damaged, 3.4 thousand hectares of rice, crops were damaged, 15.6 thousand of cattle and poultry died, damage was estimated at 977 billion VND.

In order to actively respond to natural disasters, the central and local leaders timely directed to effectively implement disaster response measures and well implemented the motto “4 tại chỗ” (4 things readiness) not to be passive. Information, communication, training, and dissemination of knowledge to the authorities and people were promoted, contributed to minimizing losses caused by natural disasters

  1. Environment protection, fire and explosion prevention

In December 2018, 538 cases of violating regulations of environment protection were found, of which 440 cases were addressed with total fine of 10.2 billion VND. In 2018, 13,929 cases of environmental violations across the country were found, of which 12,759 cases were addressed with a total fine of over 200 billion VND.

In December, there were 322 cases of fire and explosion across the country, caused 15 deaths and 17 wounded, with an estimated damage of over 41 billion VND. In 2018, there were 4,075 fires and explosions nationwide, causing 112 deaths and 263 injuries, with an estimated loss of 1.7 trillion VND.

In general, socio-economic situation in 2018 continued to flourish with GDP growth reached the highest level over the last 8 years. Macro-economy was stable, inflation was controlled; economic structure shifted towards positive. The quality of growth is improved. Agricultural production achieved good results. Processing, manufacturing and market services continued rising trend, maintaining the role of growth motivation. Investment capital was effectively implemented with new production capacities added to the economy. Business environment was improved. Consumption was high; exports and international tourist attraction were quite good. Job creation and social security was attracted more attention. However, in addition to the positive aspects, the economy still had shortcomings and challenges as follows process of restructuring the economy associated with growth model innovations changed but was still slow; labor productivity was low, the competitiveness of the economy was not high. Climate change, natural disasters, storms, floods and epidemics were complicated and could affect agricultural production and people’s life.

The year 2019 has a very important meaning in completing the 5-year socio-economic development plan for 2016-2020. The world economy in 2019 is forecasted with many potential risks and challenges. International trade was more complex with unpredictable factors by protectionism in many countries, especially the tension of the US-China trade war. In the country, besides favorable conditions from outstanding results in 2018 on macro stability, economic growth, inflation control, improving business investment environment and promoting integration, international economic cooperation, Viet Nam’s socio-economic situation in 2019 is still forecasted to face challenges coming from internal economy, such as: low technology level, land and resources were gradually being degraded while productivity, efficiency and competitiveness of the economy witnessed some changes but not really breakthrough. In addition, from 2019, the full implementation of international commitments, especially commitments on market opening, tax cuts, and intellectual property protection would bring opportunities for Viet Nam in attracting resources from abroad, but at the same time was also a significant pressure on the domestic economic sectors. Climate change, natural disasters, storms and floods are always potential challenges, negatively affecting production and business activities.

In the coming time, in order to achieve the socio-economic development objectives and targets of 2019 were approved by the National Assembly, of which GDP increases by 6.6% -6.8%, and average growth the rate of consumer price increases about 4%; total export turnover increases by 7%-8%; unemployment rate in urban area is under 4% …, all levels, branches and localities must correctly and fully realize the challenges ahead in order to promptly take measures right from the the first day and the first month of 2019, focusing on the following main contents:

Firstly, the Government and localities across the country should focus on reviewing, supplementing and perfecting institutions, substantially reducing business conditions considered as barriers to the operation of enterprises and individual business establishments, promoting administrative reform, effectively implement one-stop procedures to create a favorable environment for the establishment and development of enterprises, and review dissolution and bankruptcy procedures of enterprises to be done quickly and efficiently. The Government should have appropriate policies and solutions to encourage individual business establishments to convert to enterprises, create favorable business conditions to facilitate individual establishments to operate stably in long term and comply with laws.

Secondly, to develop, amend and revise the legal system to effectively implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership – CPTPP, and actively lobby to early ratify the Vietnam – EU Free Trade Agreement. To improve the results of international trade expansion activities, trade promotion, seeking and expanding the legal export markets for agricultural products.

Thirdly, being active and flexible in operating monetary policy, interest rate and exchange rate in line with domestic and international market movements to support business production and economic growth. Improving credit quality, focusing on priority areas such as agriculture, rural areas, supporting industries, exports, high-tech enterprises, small and medium enterprises, supporting start-ups; credit control in some potentially risky sectors.

Fourthly, synchronous development of infrastructure system, especially transport infrastructure and information technology. Speeding up the progress of completion of key projects to enhance production capacity for the economy

Fifthly, issuing and implementing breakthrough solutions, creating pressure for economic organizations to access and apply technology, step by step improve innovation and creative capacity in production and business. Focus on improving labor productivity and competitiveness of the economy. Vietnamese enterprises need to recognize and implement the motto: “Vietnamese goods conquer Vietnamese people”. Focus on developing domestic market, actively connect and develop Vietnam’s product distribution channels.

Sixthly, in order to enable the economy to integrate without being left behind in the 4.0 industrial revolution, the Government needs to renew the way to attract foreign investment, focusing on attracting world leading investors who are holding technology sources with modern management capacity and high competitiveness to invest in Viet Nam, to strengthen links between FDI enterprises and domestic enterprises, to prevent transferring capital flows causing environmental pollution and outdated technology into Viet Nam

Seventhly, the economy can only robustly and successfully develop in the trend of industrial revolution 4.0 if its human resources are qualified and know how to innovate and create new ideas. Therefore, the Government must renovate training methods and programs, combine theory and practice, of which focusing on training good practitioners to meet the labor demand in the tendency of industrial revolution 4.0. This is also a task to implement three key stages of the economy: Institutional innovation; building infrastructure and human resources.

Eighthly, social security policies, social welfare, policies for national devotees must be well performed to ensure publicity, transparency, timeliness and right subjects. Continue to effectively implement the National Target Program for sustainable poverty reduction and the National Target Program for building new-style rural areas. Implement ad-hoc assistance to ensure that people get stuck in risks and natural disasters are timely supported to overcome difficulties and stabilize their lives. Strengthen environmental protection, ensure traffic order and safety and prevent fire and explosion./.

GENERAL STATISTICS OFFICE


 [1] In October 2018, the International Monetary Fund (IMF) lowered the forecast for global economic growth in 2018 to 3.7%, a decrease of 0.2 percentage points from its July forecast; at the same time, dropped the forecast of global trade growth in 2018 to 4.2%, 0.6 percentage points lower than the previous forecast and 1 percentage point lower than 2017.

[2] GDP growth in the fourth quarter of 2011, 2012, 2013, 2014, 2015, 2016, 2017 and 2018 was: 6.71%, 5.57%, 6.05%, 6.96%, 7.01%, 6.68%, 7.65%, and 7.31%, respectively.

[3] GDP growth in the year of 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017 and 2018 was: 5.66%, 5.4%, 6.42%, 6.24%, 5.25%, 5.42%, 5.98%, 6.68%, 6.21%, 6.81%, and 7.08%, respectively.

[4] Growth rate of value added in the agriculture, forestry and fishery sector in 2012, 2013, 2014, 2015, 2016, 2017, and 2018 was: 2.92%, 2.63%, 3.44%, 2.41%, 1.36%, 2.90%, and 3.76%, respectively.

[5] Growth rate of value added in the agricultural activities in 2012, 2013, 2014, 2015, 2016, 2017, and 2018 was: 2.57%, 2.19%, 2.51%, 2.03%, 0.72%, 2.07%, and 2.89%, respectively.

[6] Growth rate of value added in the manufacturing activities in 2012, 2013, 2014, 2015, 2016, 2017, and 2018 was: 9.05%, 7.22%, 7.41%, 10.60%, 11.90%, 14.40%, and 12.98%, respectively.

[7] Growth rate of value added in the service sector in 2012, 2013, 2014, 2015, 2016, 2017, and 2018 was 6.71%, 6.72%, 6.16%, 6.33%, 6.98%, 7.44%, and 7.03%, respectively.

[8] Labour productivity in 2017 reached 4,166 USD per employee, an increase of 314 USD compared to 2016.

[9] Of which: area shifted to non-agriculture land was 4.6 thousand ha; shifted to other plants and aquaculture area were 9.7 thousand ha; uncultivated area due to difficulties in irrigation system, lack of labor and pollution was 18.7 thousand ha

[10] Due to some Central highlands and South East tended to cut down old rubber trees and in the Central rubber trees were broken and spilled due to storms.

[11] 2019 Lunar Tet holiday was in the early February that resulted in production circle of consumer goods to early serve for Tet holiday over the same period of 2017

[12] Growth rate of IIP from 2012-2016 was 5.8%; 5.9%; 7.6%; 9.8% and 7.4% respectively.

[13] Growth rate of IIP in the manufacturing from 2012 to 2016 was 5.5%; 7.6%; 8.7%; 10.5% and 11.3% respectively.

[14] Crude oil exploitation was expected to reach 11.31 million tons in 2018 that was lower than output of exploited crude oil in 2017 (13.56 million tons)

[15] Because Nghi Son Refinery and Petrochemical LLC started running and inventory at the same time point of Binh Son Refinery and Petrochemical Company was low.

[16] Volume of consumer goods in last month was lower than plan resulting in the high inventory in this month

[17] Rate of inventory in the period of 2016-2018 was 65.4%, 65.9% and 64.4% respectively.

[18] Some electronic parts manufacture companies applied automation technology line, so number of employees decreased and a company that bankrupted and about to dissolve.

[19] Some enterprises manufacturing electronic parts and toy for children faced the difficulties in contracts so employee plummeted versus last year

[20] Compared to the same period last year, the number of enterprises decreased by 7.3%; registered capital increased by 48.5%.

[21] In 2017, the number of newly established enterprises increased by 15.2% over the previous year; the registered capital rose by 45.4%; the average registered capital of a newly established enterprises increased by 26.2%.

[22] The number of enterprises temporarily ceased without registration or awaited dissolution grew up, because since April 2018, the business registration offices in the whole country had been reviewing and standardizing data and eliminating the enterprises still inactive for a long time.

[23] The corresponding indices of the third quarter of 2018: 43.1% of enterprises assessed a better the business production situation than the previous quarter; 17.8% of enterprises faced difficulties and 39.1% said that the business production situation was stable.

[24] Corresponding index of the third quarter of 2018: 45.7% of enterprises assessed the production volume increased compared with the previous quarter; 17.4% of enterprises rated the production volume decrease and 36.9% of enterprises was stable.

[25] Corresponding index of the third quarter of 2018: 39.1% of enterprises have more orders than the previous quarter; 17.3% of enterprises have less orders and 43.6% of enterprises have stable orders.

[26] Include: UK, France, Germany, Spain, and Italy.

[27] In 2017, export turnover of the domestic economic sector reached 18.5% compared to the previous year, accounted for 27.7% of the total export turnover; in which foreign invested sector (including crude oil) rose up 23.1%, made of 72.3%

[28] November trade deficit was estimated at 400 million USD.

[29] Of which, 2018 export surplus to EU reached 28.7 billion USD, grew up by 10% over the previous year; trade deficit from South Korea was 29.6 billion USD, went down by 7.8%; trade deficit from China was 23.9 billion USD, grew up by 3%; trade deficit from ASEAN was 7.3 billion USD, rose by 10.9%.

[30] The favorable market and prices led to the increase of 0.12% of the rice price index compared to the previous month

[31] Mainly because that the pork prices in the month decreased by 0.67% over the previous month due to abundant supply; processed meat prices went down by 0.36%; price of poultry living weight declined by 0.08%; sugar prices reduced by 0.08% and fresh vegetable prices declined by 0.4%.

[32] Merchandise export price index/Merchandise import price index

[33] Unemployment rate of labor force in working age in 2017 was 2.24% (urban area: 3.18%;
rural area: 1.78%)

[34] Employment in the informal economy in non-agricultural activities include those who do not work in agriculture, forestry and fisheries and belong to one of the following three groups: (i) wage earners in the formal sector who are not entitled to enter into a labor contract or to be entered into a labor contract with definite term but not paid compulsory social insurance by employers; family labor in establishments in the formal sector and cooperative members who do not have a compulsory social insurance; (ii) owners of establishments, self-employed workers, wage earners and family labor in establishments in the informal sector; (iii) self-employed workers for self-consumption of households and hired labor in households.

[35] Labor productivity of the economy at current prices for 2011-2018 were as follows: 55.2 mil VND/worker; 63.1 mil VND/worker; 68.7 mil VND/worker; 74.7 mil VND/worker; 79.4 mil VND/worker; 84.5 mil VND /worker; 93.2 mil VND/worker; 102 mil VND/worker.

[36] The gap between Viet Nam’s labor productivity by PPP 2011 compared to Singapore increased from 119,117 USD in 2008 to 131,192 USD in 2017; Similarly, with Malaysia from 43,731 USD to 45,295 USD; Thailand from 14,930 USD to 18,071 USD; Indonesia from 10,451 USD to 13,555 USD; Philippines from 6,609 USD to 8,385 USD (Data source: World Development Indicators Database, World Bank).

[37]  Only pedagogical college students and secondary school students