Viet Nam’s economy and society in the first 6 months of 2017 took place in the context of positive changes of the global economy with optimistic growth from the US and developed countries[1]. The recovery of the global trade and investment activities was the positive factor for domestic production. However, the increase in protectionism along with US policy adjustments and some major countries significantly affected the export prosepect of Viet Nam and some countries in the region. In the country, in addition to outstanding results on improving the business environment, business development, export, attraction of international visitors and foreign investment in the first months of the year, Viet Nam’s economy also faced with difficulties, including: growth rate in the first quarter showed signs of slowing down, prices of agricultural products and foodstuffs, especially plummeted pork prices negatively impacted livestock production and challenged the growth target of the country in 2017.

In this situation, the Government and the Prime Minister drastically led and directed the ministries, agencies and localities to focus on synchronous and effective implementation of Resolution No. 01/NQ-CP on main tasks and solutions to direct and steer the implementation of the 2017 socio-economic development plan and state budget estimates, at the same time issued Directive No. 24/CT-TTg on major tasks and solutions to promote the growth of the economic activities and sectors in order to realize the economic growth target in 2017. As a result, the socio-economic situation was changing positively. Results of the economic activities and sectors in the first 6 months were as follows:

      I. ECONOMIC GROWTH

  1. The growth rate of gross domestic product

The gross domestic product (GDP) in the first 6 months of 2017 was estimated to increase 5.73% over the same period last year, of which the first quarter increased by 5.15%; the second quarter was better than the first quarter with the growth rate of 6.17%. In the 5.73%  growth rate of the economy, the agriculture, forestry and fishery sector increased by 2.65%, contributing 0.43 percentage points to the overall growth rate; industry and construction went up 5.81%, contributing 2.0 percentage points; the service sector rose 6.85%, the highest growth rate compared to the same period last 5 years[2], contributing 2.59 percentage points.

In the agricultural, forestry and fishery sector, the fishery had the highest increase of 5.08% compared to the same period in 2016, contributing 0.15 percentage points to the overall growth rate; the forestry expanded 4.31%, lower than the 5.75% increase of the first 6 months of 2016, contributing 0.03 percentage points; the agriculture gained the moderate spread of 2.01% compared to 0.78% decrease of the same period last year, contributing 0.25 percentage points.

In the industry and construction sector, the industry rose 5.33%, which was quite low in comparison with the increase of 9.66% and 7.01% in the same period of 2015 and 2016, mainly due to a decline of 8.2% of the mining and quarrying reducing 0.61 percentage points of overall growth and it was the massive decline compared to the same period of the years from 2011 onwards[3]. The manufacturing expanded 10.52%, equivalent to 10.50% of the same period last year, contributing 1.79 percentage points. The construction activities in the first 6 months grew at the rate of 8.50%, contributing 0.45 percentage points to the overall growth.

In the service sector, the contribution of some large share economic activities to the overall growth rate was as follows: the wholesale and retail increased by 7.10% compared to the same period last year, which was the economic activities with the highest contribution to the overall growth (0.65 percentage points); the accommodation and catering services increased by 8.90%, contributing 0.35 percentage points; the finance, banking and insurance activities rose 7.66%, contributing 0.31 percentage points; the real estate business grew 3.86% (the highest increase in the last 5 years[4]), contributing 0.21 percentage points.

Regarding economic structure in the first 6 months, the agriculture, forestry and fishery sector accounted for 15.06%; the industry and construction sector accounted for 32.76%; the service sector accounted for 41.84%; product tax minus product subsidies accounted for 10.34% (corresponding structure of the same period in 2016 was: 15.72%; 32.98%; 41.0%; 10.30%).

From the expenditure approach of GDP in the first 6 months, the final consumption increased by 7.04% over the same period in 2016, contributing 8.48 percentage points; the gross capital formation increased 9.50%, contributing 4.26 percentage points; the trade balance of goods and services was a deficit, which reducing 7.01 percentage points of the overall growth rate.

GDP growth rate in 6 months of years 2015 – 2017 

         Year-on-year growth rate (%) Contribution of the economic sectors to the growth in the first 6 months of
2017
(Percentage point)
6 months of 2015 6 months      of 2016 6 months      of 2017
        Overall 6.32 5.65 5.73 5.73
Agriculture, forestry and fishery 2.22 -0.18 2.65 0.43
Industry and construction 9.36 7.36 5.81 2.00
Services 5.86 6.47 6.85 2.59
Product taxes less subsidies on production 5.50 6.61 6.11 0.71

 Agriculture, forestry and fishery

      a) Agriculture

Area of ​winter-spring paddy cultivation in the country this year was estimated at 3,077.4 thousand hectares, a decrease of 5.7 thousand hectares, in  comparison with that of over the winter-spring crop in 2016, of which northern provinces reached 1,144.1 thousand hectares, a decline of 12,1 thousand hectares; Southern provinces reached 1,933.3 thousand hectares, a growth of 6.4 thousand hectares. Area of ​​winter-spring paddy recently tended to scale down (concentrated mainly in Red River Delta and Mekong River Delta) due to the effects of climate change and some localities converted a part growing paddy for other purposes. Particularly in this winter-spring paddy, cultivated area in Red River Delta reached 536.2 thousand hectares, a decline of 10.1 thousand hectares, in comparison with that of over the same period last year[5]; Mekong River Delta reached 1,539.4 thousand hectares, a drop of 16.3 thousand hectares[6].

As of June 15, southern provinces completed harvesting winter-spring crops; localities in the North harvested 981.8 thousand hectares, occupied by 85.8% of the cultivated area. Due to the effects of saline intrusion from the previous year, and unseasonal rains occurred at the time of flowering and harvesting, yield of winter-spring paddy decreased this year. According to preliminary report, the yield of winter-spring paddy in the country was estimated at 62.1 quintals/hectare, a decline of 0.8 quintal/hectare, in comparison with that of over the winter-spring crop in 2016; production reached 19.1 million tons, a drop of 296.6 thousand tons[7]. Some localities recorded a sharp decrease in yield of winter-spring paddy, in comparison with that of over the previous year: Dong Thap by 165.8 thousand tons; Long An by 96.5 thousand tons; Ha Tinh by 88.1 thousand tons; Can Tho by 59.1 thousand tons.

Along with harvesting winter-spring paddy, some localities actively cultivated the summer-autumn paddy earlier than that, in comparison with that of over the previous year. As of mid-June, localities in the nationwide cultivated 1,940.5 thousand hectares of summer-autumn paddy, an equal to 106.8%, in comparison with that of over the same period last year, of which Mekong River Delta reached 1,589.2 thousand hectares, an equal to 104.4%. So far, there was 378.7 thousand hectares of early summer-autumn paddy in Mekong River Delta for harvesting, a growth of 20.4%, in comparison with that of over the same period in 2016. Currently, summer-autumn paddy recorded a good growth, localities strengthened inspection and prevention of pests and diseases, guiding farmers tending paddy properly to harvest productive yield.

As of mid-June, localities in the country cultivated 607.4 thousand hectares of maize, an equal to 85.3%, in comparison with that of over the same period last year; sweet potatoes reached 91.6 thousand hectares, an equal to 103%; soybean reached 41.4 thousand hectares, an equal to 94.4%; of groundnut reached 149.3 thousand hectares, an equal to 95%; vegetables and beans reached 697.6 thousand hectares, an equal to 103.7%.

Production of some industrial crops witnessed an increase, in comparison with that of over the same period last year: Tea reached 455.6 thousand tons, an increase of 0.2%; rubber reached 334.5 thousand tons, a growth of 4.4%; pepper reached 207.7 thousand tons, an increase of 7.1%; Particularly, cashew production reached 222.3 thousand tons, a decline of 26.8% due to effects of long lasting dry weather. Yield of some fruits recorded well: Orange reached 304.6 thousand tons, an increase of 24.8%; dragon fruit reached 488 thousand tons, a growth of 16.4%; mango reached 448.3 thousand tons, a growth of 2.2%.

Pig farming in beginning months of the year faced difficulties in consumption due to oversupply, price of pig living weight sharply dropped, in comparison with that of over the same period last year. Although authorities implemented measures to increase domestic demand, but the prices still fell down at low levels, farmers suffered losses that caused the a decline of pig population and quit farming. As of June, pig population in nationwide decreased by 3.8%, in comparison with that of over the same period last year; buffalo population fell 0.8%; cattle increased by 2.3% (cow milk increased by 5.2%); poultry increased by 5.2%. Production of buffalo living weight reached 51 thousand tons, an increase of 0.6%, in comparison with that of over the same period last year; cattle production reached 201 thousand tons, a growth of 5.2%; production of pig living weight recorded 2.2 million tons, an increase of 2.7%; poultry living weight reached 573 thousand tons, an increase of 6.3%; eggs reached 5.6 billion eggs, an increase of 6.5%; Fresh milk production reached 434 thousand tons, an increase of 13.2%. In 6 beginning months of the year, there were no longer recorded epidemics, as of June 26, 2016; there was no bird flu, blue-ear pig disease and foot-and-mouth disease nationwide.

        b. Forestry

In 6 beginning months in 2017, concentrated forests area was estimated at 100.5 thousand hectares, an increase of 5.2%, in comparison with that of over the same period last year; number of dispersed trees reached 55.1 million, a growth of 0.7%; production of firewood reached 14.1 million ste, an increase of 0.7%. Wood production recorded good with 4,835 thousand m3, an increase of 8.3%, in comparison with that of over the same period last year, of which mainly wood from planted forests in period of harvest. Some localities recorded well an increase in wood production: Quang Nam reached 431 thousand m3, by 6.4%; Binh Dinh reached 368 thousand m3, by 11.4%; Thua Thien – Hue reached 285 thousand m3, by 6.2%; Bac Giang reached 259 thousand m3, by 8.8%; Phu Tho reaches 225 thousand m3, by 7.7%. Due to the fact that wood products from China was subjected  to US anti-dumping duty, along with the opportunity of free trade agreements that Vietnam signed that created favorable conditions to expand the country’s wood export market in coming time.

Although forest protection and forest fire prevention measures was implemented, due to long lasting dry and hot weather, there was forest fires recorded in some provinces in Northern mountainous areas and Central area. In June, there were 284.5 hectares of forest damaged, a decline of  17.3%, in comparison with that of  over the same period last year, of which forest area recorded 145.5 hectares, an increase of 58.2%; area of  forest destroy was 139 hectares, a decline of 44.8%. In 6 beginning months of 2017, there were 1,031.4 hectares of damaged forests in nationwide, a decline of 60.3%, in comparison with that of over the same period last year, of which forest fire area was 373.2 hectares, a decline of 80.9% ; area of ​​damaged forest was 658.2 hectares, an increase of 2.2%.

        c. Fishery

Aquaculture and fishery catching in beginning months of the year witnessed prosperity. Estimated total fishery production in the first 6 months reached 3,328.8 thousand tons, an increase of 4.2%, in comparison with that of over the same period last year, of which fish reached 2,460.7 thousand tons, a growth of 3.7%; shrimp reached 332.4 thousand tons, an increase of 7.4%. Production of aquaculture in 6 months recorded 1,668.2 thousand tons, an increase of 3.8%, in comparison with that of over the same period last year, of which fish reached 1,232.6 thousand tons, an increase of 2.2%; shrimp reached 252.1 thousand tons, a growth of 8.9%.[8].

Pegasus farming recorded a recovery and an increase in price of pangasius in first months of the year that encouraged producer return farming. Pegasus production in 6 months was estimated at 543.3 thousand tons, an increase of 0.9%, in comparison with that of over the same period last year (a decline of 0.8% in the first quarter; the second quarter by 1.9%), of which Dong Thap reached 185 7 thousand tons; An Giang reached 116.9 thousand tons.

Brackish shrimp farming witnessed favorable weather and prices. Brackish shrimp farming area in 6 months was estimated at 605.2 thousand hectares, an increase of 3.6%, in comparison with that of over the same period last year. In 6 beginning months of the year, production of black tiger shrimp and white shrimp reached 222.4 thousand tons, a rise of 9.2%, of which Ca Mau reached 66.9 thousand tons, by 1%; Bac Lieu reached 33.8 thousand tons, by 3%; Kien Giang reached 20.8 thousand tons, by 12.9%.

Fishery production in 6 beginning months was estimated at 1,660.6 thousand tons, an increase of 4.7%, in comparison with that of over the same period last year, of which fish reached 1,228.1 thousand tons, by 5.3%; shrimp reached 80.3 thousand tons, by 2.9%. Thanks to favorable weather for fishery catching and fishery logistic services, and forecasting of fishing grounds that encouraged fishermen to conduct offshore catching. Besides, fishery catching in four central provinces that was affected by marine environmental incidents recovered and increased again[9]. Fishery production in 6 months reached 1,572.4 thousand tons, an increase of 4.9%, in comparison with that of over the same period last year, of which fish reached 1,166.9 thousand tons, an increase of 5.5% (production of ocean tuna reached 13.6 thousand tons, a growth of 14.9%); Shrimp production reached 74.6 thousand tons, an increase of up 3.8%.

  1. Industrial production

Industrial production continued to have far-reaching changes. The index of industrial production (IIP) in June was estimated to increase 8.6% over the same period last year, of which the mining and quarrying fell 5.5%; the manufacturing increased by 13.2%; the production and distribution electricity rose 6.6%; the water supply, sewerage, waste management and remediation activities expanded 9.4%.

In the first 6 months of this year, the IIP increased by 6.2% over the same period last year (the increase the first quarter and second quarter was 4.3% and 7.8%), although it was lower than the increase of 7.2% in the same period of 2016[10], higher than the increase of 5.8% in the first 5 months this year. In industrial activities, the IIP of the manufacturing; the production and distribution of electricity, the water supply, sewerage, waste management and remediation activities increased by 10.5%, 8%, 7.8%, respectively, which contributing 7.4 percentage points, 0.5 percentage points, 0.1 percentage points to the overall growth; only the mining and quarrying decreased by 8.2% (mainly due to the decline of 11.6% in extraction of crude oil and natural gas), reducing 1.8 percentage points of the overall increase.

Relating usage of industrial products, the IIP of intermediate products for the following production process rose 3.4% over the same period last year; products for final consumption went up 8.1%, of which means of production expanded 9.8% (instruments of labor spread 3.5%; construction materials increased by 11%), consumer goods for residents increased by 7.2%.

In the first 6 months, the IIP of a number of 2-digit industrial activities increased significantly over the same period last year, including: the manufacture of basic metals (33.8%); the manufacture of electronic, computers and optical products (15.3%); the manufacture of fabricated metal products (except machinery and equipment) (11.5%); the manufacture of paper and paper products (10.2%). Some industrial activities experienced a moderate increase, specifically: the manufacture of leather and related products (5.9%); the manufacture of food products (5.7%); the manufacture of pharmaceuticals, medicinal chemical and botanical products (5.4%); the extraction of coal (2.8%); the manufacture of tobacco products (0.5%). Only the extraction of crude oil and natural gas decreased by 11.6%.

In the first 6 months of this year, some main industrial products increased sharply over the same period last year, for instance: Television (39.1%); rolled steel (26.1%); iron and crude steel (25.6%); urea fertilizer (19.4%); fabric from natural yarn (17.5%); powder milk (10.4%). Several products moderately decreased over the same period last year, e.g.: steel bars and angle steel (6.1%); motorcycles (4.3%); mobile phones and cigarettes (0.5%); automobile (0.3%); fabric from synthetic, artificial yarn (0.2%). A number of products saw a decrease, including natural gas (8.7%); liquefied petroleum gas (11.2%); extracted crude oil (12.5%).

Some localities with large share of the industry sector in 7 months showed an increase in the IIP compared to the same period last year, for example: Hai Phong (21.1%); Thai Nguyen (19%); Bac Ninh (12.8%); Da Nang (10.9%); Binh Duong (8.4%); Dong Nai (8%); Ho Chi Minh City and Hai Duong (7.5%); Ha Noi (6.1%); Can Tho (6%); Vinh Phuc (4.5%); Quang Ninh (3.5%); Quang Nam (0.3%). Otherwise, the IIP of Ba Ria – Vung Tau decreased by 4%.

The index of industrial shipment (IIS) of the manufacturing activities in the first 5 months of 2017 increased by 8.2% compared to the same period last year (the figure in the same period of 2016 was 8.8%), of which some industrial activities saw a significant increase: the manufacture of other transport vehicles (13.5%); the manufacture of basic metals (12.3%); the manufacture of motor vehicles (10%); the manufacture of leather and related products (9.1%). Some industrial activities experienced a modest increase of the IIS, including the manufacture of pharmaceuticals, medicinal chemical and botanical products (2.3%); the manufacture of electronic, computers and optical products (1.5%); the manufacture of food products (1.2%); the manufacture of furniture and textile (0.9%); the manufacture of tobacco products (0.3%).

The index of industrial inventory of the manufacturing as of 1st June, 2017 increased by 10.2% compared to the same period last year (the figure in the same period of 2016 reached 9%), of which some industrial activities showed had lower rise compared to the average increase of the index of industrial inventory: the manufacture of pharmaceuticals, medicinal chemical and botanical products (3.6%); the manufacture of paper and paper products (2.5%); the manufacture of wearing apparel (2.3%); the manufacture of electronic, computers and optical products (0.8%). Various industrial activities witnessed a decrease in the index of industrial inventory, including the manufacture of motor vehicles (0.8%); the manufacture of chemical and chemical product (1.1%); the manufacture of tobacco products (8.5%); the manufacture of other transport equipment (mainly shipbuilding) (34.5%). Some industrial activities possessed a remarkable increase in the index of industrial inventory: the manufacture of beverages (88.8%); the manufacture of basic metals (52.4%); the manufacture of electrical equipment (33.1%); the manufacture of other non-metallic mineral products (mainly cement) (31.1%); the manufacture of fabricated metal products (except machinery and equipment) (17%).

The average index of industrial inventory of the manufacturing in the first 5 months of 2017 was 71.2%, of which some industrial activities had high index of industrial inventory: the manufacture of pharmaceuticals, medicinal chemical and botanical products (113.5%); the manufacture of fabricated metal products (except machinery and equipment) (105.4%); the manufacture chemicals and chemical products (99.3%); the manufacture of food products (91.3%).

The number of employees working in industrial enterprises as of 1st June, 2017 increased by 3.5% compared to the same period last year, of which the number of employees in state-owned enterprises decreased by 0.9%; in non-state enterprises declined 0.5%; in FDI enterprises expanded 6.6%. At the same time, the number of employees working in the mining and quarrying  shrank 0.5% compared to the same period last year; in the manufacturing increased by 3.9%; in the production and distribution electricity decreased by 0.6%; in the water supply, sewerage, waste management and remediation activities went up 1.5%.

Some localities with large share of the industry sector witnessed an increase in the number of employees working in enterprises as of 1st June, 2017 compared with the same period last year: Bac Ninh (27.5%); Vinh Phuc (8.5%); Thai Nguyen (8.2%); Hai Phong (7.6%); Binh Duong (5.4%); Hai Duong (4.1%); Dong Nai (3.4%); Da Nang (2.6%); Quang Ninh (1.5%); Can Tho (0.6%); Ho Chi Minh City increased (0.5%); However, the number of employees working in enterprises in Ba Ria – Vung Tau decreased by 5.3%.

  1. Operation of enterprises[11]

      a. Enterprises registration status

In June, there were 10,742 newly established enterprises in the whole country with a registered capital of 110.6 trillion VND, a downturn of 1.9% in number of enterprises and 7.3% of registered capital compared to the previous month[12]; the average registered capital of an enterprise reached 10.3 billion VND, a reduction of 5.5%; the total number of registered employees in the month of newly established enterprises was 105.6 thousand persons, an increase of 8%.

In the month, there were 1,921 re-operated enterprises, rising by 0.4% compared to the previous month; 6,402 temporarily ceased enterprises (including: 1,729 enterprises ceased for a certain period of time and 4,673 enterprises temporarily ceased without registration or awaited dissolution), an increase of 20.1%; 758 enterprises completed dissolution procedures, a rise of 20.7%.

In the first 6 months of this year, there were 61,276 newly registered enterprises with a total registered capital of 596.2 trillion VND, an upturn of 12.4% in number of enterprises and 39.4% in capital registration compared to the same period in 2016; the average registered capital of a newly established enterprise reached 9.7 billion VND, climbing by 24%[13]. If including 859.2 trillion VND of 18.1 thousand enterprises that recorded upward adjustment of capital, the total additional registered capital to the economy in the first 6 months of 2017 was 1,455.4 trillion VND. Besides, there were 15,379 re-operation enterprises, increasing 3.2% compared to the same period last year, bringing the total number of newly registered enterprises and re-operation enterprises in the first 6 months to nearly 76.7 thousand enterprises. The total number of registered employees of newly established enterprises in 6 months was 627.3 thousand persons, down 2.8% compared to the same period last year.

By major economic activities, in the first 6 months of 2017, there were 21.5 thousand newly established enterprises in the wholesale and retail (accounting for 35% of the total newly established enterprises), up 10.5% compared to in the same period last year; 8.2 thousand construction enterprises (sharing 13.4%), up 10.7%; 8.1 thousand manufacturing enterprises (forming 13.3%), up 9.7%; 4.7 thousand enterprises in the science, technology, consultation service, designing, advertisement and others (accounting for 7.7%), a surge 10.7%; 3.2 thousand enterprises in the employment services, travel, renting and leasing of machinery, equipment and other support services (accounting for 5.3%), expand 21.9%; 2.9 thousand enterprises in accommodation and catering services (accounting for 4.8%), a growth of 15.1%; 2.3 thousand enterprises in the real estate activities (accounting for 3.7%), an upturn of 68.3%; 1.6 thousand enterprises in the education and training (accounting for 2.6%), rose by 30.4% …

In the first 6 months, the number of newly established enterprises in economic regions increased compared to the same period last year. In which: The Southeast had 25.7 thousand enterprises, a growth of 10.9% (registered capital of 303.4 trillion VND, up 67.2%); Red River Delta was 18.9 thousand enterprises, going up by 15.4% (registered capital of 141.3 trillion VND, up 5%); North Central and Central Coast areas had 8.3 thousand enterprises,  extend 8.2% (registered capital of 78.2 trillion VND, up 84.9%); Mekong River Delta was 4.3 thousand enterprises, spread 10.2% (registered capital of 30.8 trillion VND, declining 22.7%); Northern Midlands and Mountains areas had 2.6 thousand enterprises, edging up by 23.1% (registered capital of 29.1 trillion VND, up 32.6%); Central Highlands was 1.5 thousand enterprises, climbing by 17.1% (registered capital of 13.4 trillion VND, up 74.6%).

The number of enterprises completed dissolution procedures in the first 6 months of 2017 was 5,443 enterprises,  a fall of 1.2% compared to the same period last year (the same period in 2016 increased by 17%), of which 5,020 enterprises with capital size of less than 10 billion VND, making up 92.2%. By kinds of enterprise, in the total number of enterprises completed dissolution procedures, there were 2,211 one-member limited liability companies (accounting for 40.6%); 1,580 two-member limited liability companies (sharing 29%); 944 private enterprises (making up 17.4%) and 708 joint stock companies (forming 13%).

The number of temporarily ceased  enterprises in the first 6 months was 37,907 enterprises, up 21.8% compared to the same period last year, including 14,377 enterprises ceased for a certain period of time, a rise of 17.8% and 23,530 enterprises temporarily ceased without registration or awaited dissolution, up 24.4%. The total number of enterprises enterprises ceased for a certain period of time, there were 5,887 one-member limited liability companies (constituted 41%); 4,601 two-member limited liability companies (accounting for 32%); 2,462 joint stock companies (forming 17.1%); 1,425 private enterprises (representing 9.9%) and 2 partnership companies. For enterprises enterprises temporarily ceased without registration or awaited dissolution, there were 10,297 one-member limited liability companies (accounting for 43.8%); 6,890 two-member limited liability companies (making up 29.3%); 4,715 joint stock companies (accounting for 20%) and 1,628 private enterprises (forming 6.9%).

         b. Business trends of enterprises

The results on business trends survey of the manufacturing enterprises in the second quarter of 2017 showed that 43% of enterprises assessed that the business production situation in the second quarter of this year was better than the previous quarter; 19.2% of enterprises faced difficulties and 37.8% enterprises said that the business production situation was stable. It is expected outcome of the third quarter compared to the second quarter of this year, 52.1% of enterprises presented that the trend would get better; 12% of enterprises forecasted that it would be more difficult and 35.9% of enterprises said that the business production situation would be stable.

Among the main factors affecting business production situation of enterprises in the second quarter, 58.3% of enterprises said that the high competitiveness of domestic goods was the most influential factor to the operation enterprises; 45.6% of enterprises said that demand of domestic market was low; 32.5% of enterprises stated financial difficulties; 31.3% of enterprises blame for not recruiting qualified workers; 26.5% of enterprises said that high interest rates and 21.6% of enterprises believed that high competitiveness of imported goods was an important factor.

Regarding production volume, 45.9% of enterprises pointed out production volume in the second quarter of this year increased compared with the previous quarter; 18.4% of enterprises reported that the production volume decrease and 35.7% of enterprises considered stable. For the trend in the third quarter, there were 53.4% ​​of enterprises forecasted an increase in production volume compared to the second quarter; 10.6% of enterprises projected a decrease and 36% of enterprises predicted a stability.

Regarding orders of goods, there were 39.2% of enterprises had more orders for the second quarter this year than the previous quarter; 18.3% of enterprises had fewer order and 42.5% of enterprises recorded stable orders. For the trend of the third quarter was better than the second quarter with 47.7% of enterprises expected an increase in orders; 11.2% of enterprises expected a decrease in orders and 41.1% of enterprises expected to have stable orders.

Regarding export orders, there were 31.8% of enterprises confirmed more export orders in the second quarter of this year compared to the previous quarter; 16.7% of enterprises experience fewer export orders and 51.5% of enterprises kept export orders stable. Trends in the third quarter compared to the second quarter, 40.3% of enterprises expected to have an increase in export orders; 10.3% of enterprises expected to decrease and 49.4% of enterprises expected to be stable.

Regarding cost of production, 27.5% of enterprises confirmed cost of production per unit of product in the second quarter of this year increased compared to the previous quarter; 7.7% of enterprises recorded a decrease in the cost and 64.8% of enterprises predicted the cost was equivalent to the previous quarter. For the trend in the third quarter of 2017, 20.7% of enterprises expected an increase in cost of production compared to the second quarter; 9.6% of enterprises believed a decrease in the cost and 69.7% of enterprises expected cost of production stable.

Regarding selling price, 18.2% of enterprises predicted an increase in price of production in the second quarter of this year; 9.2% of enterprises recorded the selling price was lower and 72.6% of enterprises had stable selling prices. Expected selling price of products in the third quarter compared to the second quarter, there were 18.2% of enterprises predicted higher selling price; 7.3% of enterprises forecasted lower selling prices and 74.5% of enterprises forecasted selling prices stable.

Regarding product inventory, 18.9% of enterprises with inventories in the second quarter of this year increased compared to the previous quarter; 30.7% of enterprises had a decreased in inventories and 50.4% of enterprises remain stable. Trends in the third quarter compared to the second quarter, 14.6% of enterprises forecasted an increased of inventories; 31.8% of enterprises predicted a decreased in inventories and 53.6% of enterprises forecasted to remain stable.

Regarding input inventory, there were 17.5% of enterprises said that input inventory increased in the second quarter of 2017 compared to the previous quarter; 28.7% of enterprises said that it was reduced and 53.8% of enterprises said that they remained unchanged. Expected that in the third quarter compared to the second quarter, there were 14.3% of enterprises predicting an increase in input inventory; 29.8% forecasted a decrease in input inventory and 55.9% enterprises believed that it would remain unchanged in input inventory.

Regarding labor use, 16.5% of enterprises affirmed that labor size increased in the second quarter of this year compared to the previous quarter; 12.3% of enterprises confirmed to decrease and 71.2% of enterprises said that they kept stable. It was expected that in the third quarter compared to the second quarter, 20.1% of enterprises forecasted an increase of labor size; 7.5% of enterprises believed a decrease and 72.4% of enterprises would stabilize labor size.

  1. Service operation

      a. Retail sales of goods and services

Trade and service activities in the first 6 months took place vibrantly; market management was directed by the authorities and agencies in a timely and effective manner, which limited fake goods and stabilized prices, contributing to boost domestic trade activities, stimulating consumer purchasing power. The network of supermarkets and shopping centers provided a plentiful amount of goods with diversified models and quality assurance to meet the needs of the people.

Gross retail sales of consumer goods and services in June were estimated at 326.6 trillion VND, up 10.6% over the same period last year, of which: retail sales of goods reached 243.5 trillion, up 10.3%; revenue from accommodation and catering services reached 41.4 trillion VND, up 14.2%; tourism and travelling revenue gained 3 trillion VND, up 4.8%; revenue from other services reached 38.7 trillion VND, up 9.2%.

In the first 6 months of the year, gross retail sales of consumer goods and services reached 1,924.1 trillion VND, an increase of 10.1% compared to the same period last year, if excluding price factor, increasing by 8.4 % (higher than the increase of 8.1% in the same period in 2016). By economic activities, retail sales of goods in the first 6 months were estimated at 1,443.4 trillion VND, accounting for 75% of the total and increasing 10.2% compared to the same period last year, of which the food and foodstuff increased by 10.6%; garment increased by 9.5%; household appliances, tools and equipments and transport vehicles both increased by 8.7%; cultural and educational items rose by 5.7%.

Revenue from accommodation and catering services for 6 months was estimated at 237.9 trillion VND, accounting for 12.4% of the total and increasing by 12% over the same period last year. Some provinces achieved a good increase in revenue, as follows: Thanh Hoa by 20.3%; Long An by 17.1%; Binh Thuan by 13.2%; Dong Nai by 13.1%; Can Tho by 13%; Ha Noi by 8.5%; and Ho Chi Minh City by 5.3%.

Tourism and travelling revenue in the first 6 months was estimated at 16.2 trillion VND, accounting for 0.8% of the total and increasing by 6.7% over the same period last year, of which revenue of Hanoi increased by 13, 8%; Can Tho rose by 11.5%; Binh Thuan expanded by 10.4%; Thai Nguyen increased by 8.9%; Bac Ninh went up by 5.5%; Ho Chi Minh City jumped by 2.5%. Besides, some provinces saw a sharp decrease in revenue such as An Giang reduced 49.6%; Binh Phuoc decreased by 17.9%; Yen Bai declined by 11.8%.

Revenue from other services in 6 months was estimated at 226.6 trillion VND, accounting for 11.8% of the total and increasing by 8.1% over the same period in 2016, of which revenue Quang Tri increased by 14.7%; Dong Nai expanded by 13.2%; Bac Giang climbed up by 10.3%; Ho Chi Minh City accelerated by 8.2%; Lao Cai rose by 7.4%; Thua Thien – Hue went up by 5.6%; Can Tho jumped by 3.9%.

        b. Transportation and telecommunication

Passenger carriage in June was estimated at 339.3 million passengers, an increase of 10.4% over the same period last year and 15 billion passengers-kilometers, an increase of 9.2%. In the first 6 months in 2017, passenger carriage reached 1,977.5 million passengers, an increase of 9.3% compared to the same period last year and 88.9 billion passengers-kilometers, an increase of 8.5%, of which passenger carriage by roadways reached 1,863.7 million passengers, an increase of 9.6% and 60.7 billion passengers.kilometers, an increase of 8%; by seaways reached 3.3 million passengers, up 9.5% and 168.5 million passengers.km, up 10%; by airways achieved quite good with 21.2 million passengers, increasing by 9.8% and 24.5 billion passengers-kilometers, increasing by 10.3%; railways gained 5 million passengers, decreased by 2.9% and 2 billion passengers.km, went up by 5.1%.

Freight carriage in June was estimated at 119 million tons, an increase of 8.4% over the same period last year and 22.1 billion tons-kilometers, an increase of 6.6%. In the first 6 months, freight transport reached 705.2 million tons, up 8.8% over the same period last year and 130.6 billion tons-kilometers, up 5.8%, of which domestic transport reached 688.8 million tons, up 9% and 64.7 billion tons.km, up 10.6%; overseas transport achieved 16.4 million tons, up 0.3% and 65.9 billion tons.km, up 1.5%. By kinds of transport, the roadways reached 547.9 million tons, an increase of 9.3% over the same period last year and 34.4 billion tons-kilometers, an increase of 11.7%; waterways reached 120.5 million tons, up 6.7% and 25.6 billion tons.km, up 7.3%; seaways reached 33.8 million tons, up 9.4% and 68.5 billion tons.km, up 2.5%; railways reached 2.8 million tons, up 6.3% and 1.7 billion tons.km, up 8.1%.

Revenue from telecommunications activities in the first 6 months was estimated at 189.5 trillion VND, up 7% compared to the same period in 2016. As of the end of June 2017, the total number of telephone subscribers was estimated at 126.5 million subscribers, reducing by 5.3% compared to the same period last year, of which mobile subscribers reached 119.4 million, falling by 6.2% because operators withdrew junk SIM in accordance with Ministry of Information and Communications. The number of fixed broadband internet subscribers was estimated at 9.9 million, up 16.9% over the same period in 2016.

        c. Foreign visitors to Viet Nam

Foreign visitors to Viet Nam in June were estimated at 949.4 thousand, increasing by 33.6% over the same period last year, of which visitors from Asia increased by 38.3%; from Europe expanded by 25.9%; from the Americas rose by 8.8%; from Oceania expanded by 21%. In comparison to the previous month, the number of foreign visitors decreased by 2.4% because June was not the holiday season for many countries in the world.

Generally for the first 6 months, foreign visitors to our country reached 6,206.3 thousand persons, an increase of 30.2% over the same period last year, of which arrivals by airways reached 5,212 thousand, an increase of 33% ; by roadways reached 823.5 thousand persons, an increase of 15.8%; by seaways reached 170.8 thousand, an increase of 26%.

In the first 6 months, visitors from Asia reached 4,572.7 thousand, an increase of 35% over the same period last year, accounting for 73.7% of the total number of foreign visitors to our country, of which visitors coming from most of the major markets increased: Visitors from China reached 1,887.5 thousand, up 56.7%, accounting for 30.4% of the total number of foreign visitors to Viet Nam; South Korea 1,066.3 thousand persons, an increase of 43.9%; Japan 378.8 thousand persons, up 6.5%; Taiwan 297.9 thousand persons, up 22.9%; Malaysia 231.6 thousand persons, an increase of 15.9%; Thailand 152.4 thousand persons, an increase of 12.2%; Singapore 132.4 thousand persons, an increase of 6.2%.

Visitors from Europe gained 979.3 thousand, an increase of 23.9% compared to the same period last year, accounting for 15.8% of the total number of foreign visitors to our country, of which: visitors from the Russian Federation 313.5 thousand persons, up 53.4%; United Kingdom 145 thousand persons, up 13%; France 136.1 thousand persons, increasing by 9.8%; Germany 103.2 thousand persons, up 18.8%; Netherlands 31.9 thousand persons, up 17.2%; Italy 28.2 thousand pesrons, an increase of 15.6%; Sweden 28 thousand persons, up 21.5%.

Visitors from the Americas were 434.4 thousand, increasing by 10.8% over the same period last year, of which visitors from the United States reached 320.2 thousand, increasing by 9.3%. Visitors from Australia reached 202.9 thousand, an increase of 9.5%, of which visitors from Australia were 181.5 thousand, an increase of 10%. Visitors from Africa gained 17 thousand, up 27% compared to the same period in 2016.

      II. MACROECONOMICS STABILIZATION AND INFLATION CONTROL

  1. Banking and insurance activities

As of 20th June, 2017, total payment facilities increased by 5.69% compared to the end of 2016 (same period in 2016 was a rise of 8.07%); capital mobilization of credit institutions increased by 5.89% (same period last year was an increase of 8.23%); Credit growth of the economy in the first 6 months of 2017 reached 7.54%[14] (the highest increase in the last 6 years), showing the absorbable ability of enterprises on capital and income of interest of banks significant.

The deposit interest rate level remained relatively stable, some banks showed moves to raise mobilized interest rates but the growth rate was small, not showing the uptrend of the market. The mobilized interest rates of VND was popular at 0.8% -1% per year for less-than-1-month term deposits; at 4.5% -5.4%  per year for 1-month-to-less-than-6-month term deposits; at 5.4% -6.5% per year for 6-month- to-less-than-12-month term deposits; at 6.4% -7.2% per year for over-12- month term. The lending interest rate for VND was 6% -9% per year for short term and at 9% -11% per year for medium and long term. The lending interest rate was at 4% -5% per year for short-term for reliable customers. In general, credit structure continued to focus on priority business production sectors, key projects in line with the Government’s poilicy.

Insurance market in the first 6 months maintained a positive growth. Insurance revenue for 6 months was estimated to increase by 19% compared to the same period in 2016, of which: the revenue of life insurance premium increased by 30%; non-life insurance premiums climbed up 9%.

  1. Development Investment

In the first 6 months of 2017, the realized investment at current prices was estimated at 674.8 trillion VND, an increase of 10.5% over the same period last year and equaling 32.8% of GDP, including: State sector reached 242.4 trillion VND, accounting for 35.9% of total capital and rising 6.8% over the same period last year; non-state sector achieved 260.9 trillion VND, making up 38.7% and rising by 14.9%; FDI sector recorded 171.5 trillion VND, representing 25.4% and expanding 9.6%.

 

The growth rate of the realized investment 6 months of 2015-2017 in comparison with the same periods of the previous year

(At current prices)

%

6 months            2015 6 months
2016
6 months      2017
Total 109.3 110.3 110.5
State sector 107.8 105.4 106.8
Non-State sector 110.5 112.9 114.9
FDI sector 109.8 114.3 109.6

 

In the investment of the State sector, the capital from the State budget in 6 months was estimated at 115 trillion VND, equaling 38.7% of the yearly plan and up 7.6% over the same period last year, including:

– The capital under central management reached 26 trillion VND, equaling 37.1% of the yearly plan and going down 7.5% over the same period last year, of which the investment of the Ministry of Transportation recorded 14 trillion VND, equaling 44.2% and increasing by 46.7%; Ministry of Agriculture and Rural Development 1,863 billion VND, equaling 31.8% and decreasing by 25.1%; Ministry of Health 1,711 billion VND, equaling 33.3% and rising 32.2%; Ministry of Education and Training 269 billion VND, equaling 37.8% and reducing 64.5%; Ministry of Construction 235 billion VND, equaling 48.6% and falling 41.3%; Ministry of Culture, Sports and Tourism 192 billion VND, equaling 32.7% and down 15.2%; Ministry of Natural Resources and Environment 189 billion VND, equaling 32.3% and jumping down 34.6%; Ministry of Industry and Trade 99 billion VND, equaling 40.7% and reducing 44.5%; Ministry of Science and Technology 35 billion VND, equaling 36.6% and decreasing by 63.4%; Ministry of Information and Communications 34 billion VND, equaling 35.1% and falling 33.9%.

– The capital under local management achieved 89 trillion VND, equaling 39.3% of the yearly plan and rising 7.6% over the same period last year, of which: State budget capital at provincial level reached 61.8 trillion VND, 37.1% of the yearly plan and increasing by 4.8%; State budget capital at district level witnessed 22.7 trillion VND, equaling 44.2% and increasing by 15.5%; state budget capital at commune level gained  4,524 billion VND, equaling 52.2% and rising by 9%. The realied investment from the State budget of some provinces and cities directly under the Central Government was as follows: Ha Noi reached 14.2 trillion VND, equaling 43.9% of the yearly plan and up 3.2% compared to with the same period last year; Ho Chi Minh city 7,743 billion VND, equaling 22.7% and increasing by 3.2%; Nghe An 2,910 billion VND, equaling 45% and expanding 13.7%; Vinh Phuc 2,579 billion VND, equaling 43% and going up 25.6%; Binh Duong 2,455 billion VND, equaling 34.3% and increasing by 12.4%; Quang Ninh 2,426 billion VND, equaling 33.1% and spreading15.6%; Thanh Hoa 2,179 billion VND, equaling 45.6% and increasing by 5.9%; Kien Giang 2,123 billion VND, equaling 55% and rising 12.2%

In general, the implementation of investment changed positively in recent months but the growth was still low in comparison with the yearly plan, especially in public investment. In order to ensure the annual growth target as planned, in the last months of the year, besides strengthening to attract investment for development, ministries, line-ministries and localities should focus on implementing solutions to solve difficulties and speed up disbursement progress under the direction of the Government.

Foreign direct investment from the beginning of the year to 20th June, 2017 attracted 1,183 newly licensed projects with a registered capital of 11.84 billion USD[15], an increase of 56.3% in number of projects and a rise of 57.9% of registered capital compared to the same period in 2016. Besides, 549 projects that were licensed from previous years registered to adjust investment capital with an additional capital of 5.14 billion USD.

In the first 6 months of 2017, there were 2,501 turns of capital contributions and share purchases of foreign investors with a total value of 2.25 billion USD. Thus, the total registered capital of new projects, additional capital and investment in the form of capital contribution and share purchase in the first 6 months reached 19.23 billion USD, an increase of 54.8% compared to in the same period last year. Realized FDI in the first 6 months was estimated at 7.7 billion USD, a rise of 6.5% over the same period in 2016.

In the first 6 months of this year, the electricity, gas, steam and air conditioning supply attracted the largest foreign direct investment with the registered capital of licensed projects witnessed 5,255.8 million USD, accounting for 44.4% of the total newly registered capital; the manufacturing activitiy reached 3,838.5 million USD, making up 32.4%; the other sectors gained 2,743.9 million USD, representing 23.2%. If including additional registered capital of projects licensed from previous years and capital contribution and share purchase, foreign direct investment manufacturing activity in the first 6 months recorded 9,487.3 million USD, accounting for 49.3% of the total registered capital; the electricity, gas, steam and air conditioning supply achieved 5,257.1 million USD, comprising 27.4%; the other sectors reached 4,485 million USD, accounting for 23.3%.

In the whole country, there were 52 provinces and centrally-run cities that had newly licensed foreign direct investment projects in the first 6 months of the year, of which Thanh Hoa had the largest registered capital with 3,054.5 million USD, accounting for 25.8% of total newly registered capital; followed by Nam Dinh with 2,121.3 million USD, comprising 17.9%; Kien Giang 1,304.8 million USD, making up 11%; Binh Duong 1,026.1 million USD, sharing 8.7%; Tay Ninh 635.7 million USD, representing 5.4%; Bac Giang 512.3 million USD, accounting for 4.3%; Ho Chi Minh City 395.1 million USD, making up 3.3%; Binh Phuoc 282.9 million USD, comprising 2.4%; Dong Nai 271.2 million USD, accounting for 2.3%; Bac Ninh 204.3 million USD, representing 1.7%; Quang Ngai 169 million USD, sharing 1.4%; Ha Noi 167.6 million USD, accounting for 1.4%; Hai Duong 134.4 million USD, making up 1.1%; Tra Vinh 125.9 million USD, accounting for 1.1%.

Among 56 countries and territories had newly licensed investment projects in Vietnam in the first 6 months of this year, Japan ranked the top with 4,568.1 million USD, accounting for 38.6% of the total newly registered capital; followed by Singapore with 2,731.7 million USD, accounting for 23.1%; South Korea 1,625 million USD, comprising 13.7%; China 1,100.6 million USD, making up 9.3%; Hong Kong Special Administrative Region (China) 550.2 million USD, sharing 4.6%; Germany 321.9 million USD, representing 2.7%.

  1. State budget revenue and expenditure

Total state budget revenue from the beginning of the year to 15th June, 2017 was estimated at 500.9 trillion VND, equaling 41.3% of the yearly estimate, of which domestic revenue was 399.1 trillion VND, equaling 40.3%; revenue from crude oil reached 21.1 trillion VND, equaling 55.1%; budget balance revenue from import and export gained 80.6 trillion VND, equaling 44.8%. In domestic revenue, land use fee achieved 44.5 trillion VND, equaling 69.8% of the yearly estimate; personal income tax revenue witnessed 39 trillion VND, equaling 48.2%; taxes on trade and non-state services gained 79.3 trillion VND, equaling 40.8%; tax on FDI enterprises (excluding crude oil) was 74.1 trillion VND, equaling 36.9%; environmental protection tax recorde 16.6 trillion VND, equaling 36.8%; tax on state-owned enterprises was 82.5 trillion VND, equaling 28.8%.

State budget expenditure in the first 15 days of June showed normally, meeting timely tasks on development investment; payment of debt; ensuring defense, security and operation of the State agencies. The state budget expenditure from the beginning of the year to 15th June, 2017 was estimated at 533.4 trillion VND, equaling 38.4% of the yearly estimate, of which recurrent expenditure was 398.9 trillion VND, equaling 44.5%; interest payment was 50 trillion VND, equaling 50.5%; expenditure for development investment reached 83.3 trillion VND, equaling 23.3% of the yearly estimate[16]. The ministries, line-ministries and localities remained to focus on implementing the proposed solutions to solve difficulties and speed up the disbursement progress under the direction of the Government. Principal payment from the beginning of the year to 15th June, 2017 was estimated at 88.1 trillion VND, equaling 53.8% of the yearly estimate.

  1. Export and import of goods and services

      a. Exports of goods

Export turnover in May 2017 reached 17,931 million USD, 731 million USD higher than the estimated figure, of which phones and their parts were 234 million USD higher; machinery, instrument and accessory were 98 million USD higher; footwear was 81 million USD higher; fishery products were 60 million USD higher; crude oil was 57 million USD higher; means of transport and spare parts were 48 million USD higher; cashew nuts were 34 million USD higher; iron and steel were 31 million USD higher than estimated.

Export turnover in June was estimated at 17.80 billion USD, went down by 0.7% against last month, of which the domestic economic sector gained 4.80 billion USD, edged down by 2.6%; FDI sector (including crude oil) reached 13.00 billion USD, approximated to the previous month’s export turnover. Export turnover of some products was lower than last month: Machinery, instrument and accessory decreased by 8.2%; phones and their parts declined by 8.1%; footwear reduced by 2.2%. Some products had increased export turnover compared to the previous month: Textile and garment rose by 14.1%; crude oil surged up by 46.8%[17]. Compared to the same period last year, export turnover in June increased by 20.9%, of which the domestic economic sector grew by 11.7%; FDI sector (including crude oil) climbed up by 24.7%. Export turnover of some commodities increased significantly: phones and their parts soared by 43.4%; machinery, instrument and accessory jumped up by 37.1%; electronic goods, computers and their parts increased by 24%.

In the first 6 months, export turnover was estimated at 97.8 billion USD, went up by 18.9% over the same period last year, of which the domestic economic sector was 27 billion USD, edged up by 13.8%; FDI sector (including crude oil) reached 70.8 billion USD, jumped up by 21%. If excluding the price factor, export turnover in the first 6 months increased by 12.9% compared to the same period in 2016.

Export turnover of some main products continued to increase over the same period last year: Phones and their parts reached 20.1 billion USD, climbed up by 18.3%; textiles and garments gained 11.6 billion USD, rose by 7%; electronic goods, computers and their parts attained 11.3 billion USD, soared by 42.3%; footwear reached 7 billion USD, went up by 11.6%; machinery, instrument and accessory achieved 6.1 billion USD, surged up by 36.3%; wood and wooden products made up 3.6 billion USD, went up by 13.5%; fishery products reached 3.6 billion USD, climbed up by 15.6%; means of transport and spare parts reached 3.3 billion USD, rose by 15%; coffee attained 1.9 billion USD, increased by 9.9% (volume decreased by 15.5%); vegetables and fruits made up 1.7 billion USD, soared by 50.4%; crude oil amounted to 1.6 billion USD, surged up by 39.2% (volume grew by 10.1%); cashew nuts reached 1.4 billion USD, went up by 20.3% (volume declined by 4.7%). However, there were some product having decreased export turnover: pepper reached 724 million USD, went down by 15.5% (volume increased by 20.4%); cassava and cassava products gained 500 million USD, dropped 9.9% (volume reduced by 5.7%); precious stones, metals and products attained 256 million USD, shrank 52%.

Regarding the structure of export of goods, in the first 6 months of this year, the group of heavy and mineral industrial products was estimated at 47.8 billion USD, jumped up by 26.8% over the same period last year and accounted for 48.9% of the total export turnover of goods (a rise of 3.1 percentage points compared to the same period in 2016), of which phones and their parts reached 20.1 billion USD, climbed up by 18.3% and shared 20.5%. The group of light industry and handicraft gained 37 billion USD, went up by 11% and represented 37.8% (a declined of 2.7 percentage points). The group of agricultural and forestry products reached 9.5 billion USD, edged up by 16% and contributed 9.7% (a reduction of 0.2 percentage points). Fishery products attained 3.6 billion USD, increased by 15.6% and accounted for 3.6% (a drop of 0.1 percentage points).

Regarding the exported goods market in the first 6 months, the United States was the largest export market of Vietnam with 19.6 billion USD, went up by 9.5% compared to the same period in 2016, of which: Textiles and garments increased by 3.6%; footwear rose by 12.9%; phones and their parts grew by 9.1%. The following was the EU with 18.2 billion USD, augmented by 12.6%, of which: Phones and their parts increased by 12.7%; footwear edged up by 5.4%; electronic goods, computers and their parts increased by 25.5%. China reached 13 billion USD, surged up by 42.5%, of which: Electronic goods, computers and their parts soared by 94.5%; vegetables and fruits increased by 58.5%; textile fiber jumped up by 30.2%. ASEAN market achieved 10.4 billion USD, climbed up by 26.7%, of which: Phones and their parts increased by 31.5%; electronic goods, computers and their parts soared by 95%. Japan attained 8 billion USD, edged up by 19.5%, of which: Textile and garment rose by 9.5%; means of transport and spare parts augmented by 15.2%. South Korea reached 6.6 billion USD, jumped up by 29.1%, of which: Phones and their parts increased by 29.6%; textile and garment rose by 22.5%.

        b. Import of goods

Import turnover in May 2017 reached 18,459 million USD, 459 million USD higher than the estimated figure, of which: Phones and their parts were 99 million USD higher; petroleum was 71 million USD higher; machinery, instrument and accessory were 59 million USD higher; electronic goods, computers and their parts were 57 million USD higher; fabric was 40 million USD higher; medicine was 30 million USD higher; High quality plastic products was 26 million USD higher than estimated.

Import turnover in June was estimated at 18.00 billion USD, edged down by 2.5% from the previous month, of which: The domestic economic sector achieved 7.25 billion USD, went down by 1.1%; FDI sector gained 10.75 billion USD, dropped 3.4%. Some products had decreased import turnover: machinery, instrument and accessory fell by 1.7%; electronic goods, computers and their parts decreased by 5.3%; fabric declined by 3.5%; iron and steel fell by 4.5%; plastic reduced by 2.8%; materials for textile, garment and footwear reduced by 5.4%; plastic products decreased by 1.2%. Compared to the same period last year, import turnover in June increased by 21.6%, of which: Domestic economic sector grew by 11.9%; FDI sector rose by 29.2%. Some products for domestic processing and production achieved high turnover compared to the same period last year: Machinery, instrument and accessory surged up by 31.9%; electronic goods, computers and their parts increased by 27.8%; phones and their parts soared by 49.8%.

In the first 6 months of the year, import turnover reached 100.5 billion USD, went up by 24.1% over the same period last year[18], of which: Domestic economic sector gained 39.9 billion USD, jumped up by 18.2%; FID sector achieved 60.6 billion USD, jumped up by 28.3%. If excluding price factor, import turnover in the first 6 months of 2017 increased by 17.3% compared to the same period last year.

Import turnover of most products in the first 6 months increased compared to the same period last year: Machinery, instrument and accessory reached 18.4 billion USD, jumped up by 37.8%; electronic goods, computers and their parts reached 16.2 billion USD, edged up by 28.2%; phones and their parts attained 6.2 billion USD, rose by 29.5%; fabric reached 5.6 billion USD, grew by 10.1%; iron and steel achieved 4.7 billion USD, jumped up by 24.3% (volume decreased by 16.1%); plastics reached 3.5 billion USD, augmented by 24.6% (volume increased by 14.2%); petroleum reached 3.4 billion USD, increased by 31.4% (volume grew by 1.7%); materials for textile, garment and footwear reached 2.7 billion USD, edged up by 9.5%; metals reached 2.7 billion USD, jumped up by 19.8% (volume decreased by 13.8%); plastic products achieved 2.5 billion USD, climbed up by 20.6%; chemical products gained 2.1 billion USD, jumped up by 18.7%; chemicals reached 2 billion USD, surged up by 34.8%; animal feed and raw materials attained 1.7 billion, jumped up by 15.5%; medicine reached 1.3 billion USD, went up by 4%; cotton gained 1.3 billion USD, soared by 58.6% (an increase of 33.2%); wood and wooden products reached 1.1 billion USD, edged up by 21%.

Regarding imported goods structure in the first 6 months, the group of capital goods was estimated at 92.2 billion USD, jumped up by 24.6% and accounted for 91.7% of total import turnover (a decline of 0.4 percentage points over the same period in 2016), of which: Machinery, instrument and accessory gained 43.8 billion USD, climbed up by 27% and shared 43.6% (a rise of 1.0 percentage points); group of fuel and raw materials reached 48.4 billion USD, increased by 22.6% and accounted for 48.1% (a reduction of 0.6 percentage points). Consumer goods group was estimated at 8.3 billion USD, climbed up 18.6% and contributed 8.3% (a drop of 0.3 percentage points).

Regarding the imported goods market in the first 6 months of 2017, China was still the largest import market of Vietnam with a turnover of 27.1 billion USD, went up by 16.8% compared to the same period in 2016[19], of which import turnover of some products for production, processing and assembly increased: Machinery, instrument and accessory increased by 28%; electronic goods, computers and their parts rose by 29.2%; phones and their parts went up by 13.8%. The Korean market ranked second with 22.5 billion USD, soared by 51.2%, of which: Machinery, instrument and accessory surged up by 123.5%; electronic goods, computers and their parts grew by 46.1%; phones and their parts increased by 37.7%. The following was ASEAN market with 13.6 billion USD, climbed up by 17.6%, of which: Petroleum increased by 11.9%; machinery, instrument and accessory increased by 2.7%. Japan gained 7.7 billion USD, went up by 10.7%, of which: Electronic goods, computers and their parts increased by 22.8%; iron and steel rose by 17.9%. EU reached 5.8 billion USD, edged up by 16.3%, of which: Machinery, instrument and accessory increased by 12.9%; pharmaceuticals increased by 2.6%. The United States reached 4.8 billion USD, rose by 27.2%, of which: Cotton soared by 104.2%; electronic goods, computers and their parts increased by 38.5%.

Trade balance of goods witnessed a trade deficit of 528 million USD[20]; trade deficit in June was estimated at 200 million USD. Generally, in the first 6 months of 2017, the trade deficit was 2.70 billion USD, of which: the domestic economic sector saw a trade deficit of 12.92 billion USD; FDI sector (including crude oil) witnessed a trade surplus of 10.22 billion USD.

      c. Import and export services

Export turnover of services in the first 6 months of 2017 was estimated at 6.4 billion USD, went up by 7.1% over the same period last year, of which: Tourism reached 4.3 billion USD, accounted for 67.7 % of total export turnover and went up by 6.4%; transport gained 1.2 billion USD, contributed 19.5% and increased by 8.8%. Import turnover of services was estimated at 8.2 billion USD, edged up by 3.5% over the same period last year, of which: Transport reached 3.9 billion USD, accounted for 47.6% of total import turnover and went down by 1.8%; tourism reached 2.4 billion USD, shared 29.1% and jumped up by 15.6%. Trade deficit in the first 6 months of 2017 was estimated at 1.8 billion USD, equaled to 27.3% of service export turnover.

  1. Price indexes

     a. Consumer price index

Consumer price index (CPI) in June 2017 continued to decrease by 0.17% compared to the previous month, of which 3 out of 11 groups of goods and services had decreased CPI: Transport decreased by 0.71% mainly because the adjustment of petrol and oil prices at the time point of 20/6/2017[21] made fuel price go down by 1.47%, CPI edge down by 0.06%; food and catering services decreased by 0.59%, of which food declined by 0.51% due to abundant supply[22]; food reduced by 0.85% mainly due to the drop of living weight meat prices [23] (led to a decrease of CPI of 0.19%); postal services and telecommunication fell by 0.01%. The remaining groups of goods and services had an increase in price index: Housing and construction materials rose by 0.53%; culture, entertainment and tourism grew by 0.19%; education increased by 0.09%; household appliances edged up by 0.08%; apparel, footwear, hats and other goods and services increased by 0.05%; medicine and medical services grew by 0.01%.

The average consumer price index in the first 6 months of 2017 increased by 4.15% compared to the same period in 2016; CPI in June 2017 went up by 0.20% over December 2016 and grew by 2.54% over the same period last year. CPI in the first 6 months increased due to the following main reasons: (i) Health care service prices in 27 provinces and cities directly under the Central Government increased according to Joint Circular No. 37/2015/TTLT-BYT- BTC dated 29/10/2015 of the Ministry of Health and Ministry of Finance and Circular No. 02/2017/TT-BYT dated 15/3/2017 of the Ministry of Health[24]; (ii) Some localities implemented the roadmap to increase tuition fees according to Decree No. 86/2015/ND-CP dated 02/10/2015 of the Government[25]; (iii) Prices of essential goods in the world such as fuel, steel and iron prices rose again in the first 6 months of the year making the import and export price index increase compared to the same period last year.

In addition to the reasons for CPI increase in the first 6 months, there were a number of factors contributing to curbing CPI: (i) Food price index decreased by 1.74% compared to the same period last year, contributing to the reduction of CPI of 0.39%. Pork prices plummeted due to plentiful supply while demand for pork for export to China decreased; (ii) Authorities at all levels and sectors strengthened the implementation of Resolution No. 01/NQ-CP dated 01/1/2017 of the Government on key tasks and solutions to direct and administer the implementation of socio-economic development plans and state budget estimate for 2017.

Core inflation in June 2017 increased by 0.10% over the previous month and by 1.29% over the same period last year. The average core inflation in the first 6 months of 2017 went up by 1.52% compared to the same period in 2016.

      b. Gold and US dollar price index

Gold price index in June 2017 increased by 0.25% compared to the previous month; by 3.16% compared to December 2016; by 4.39% over the same period last year. The US dollar price index in June 2017 decreased by 0.07% compared to the previous month; by 0.11% over December 2016 and increased by 1.50% over the same period in 2016.

       c. Producer price index

The producer price index for agricultural, forestry and fishery in the second quarter of this year gained an decrease of 3.26% compared to the previous quarter and a reduction of 0.53% over the same period of last year, of which the producer price index for agriculture decreased by 4.81% and by 2.84%; the producer price index for forestry went up 0.94% and climbed up 4.84%; the producer price index for fishery rose by 1.17% and by 6.08%. Generally for 6 months, the producer price index for agriculture, forestry and fishery increased by 2.22% over the same period of 2016.

The producer price index for industry in the second quarter decreased by 0.78% compared with the previous quarter and increased by 0.59% compared to the same period last year, of which the producer price index of mineral products decreased by 0.66% and increased by 12.07%; manufacturing products fell by 0.99% and by 0.59%; electricity, gas, hot water, steam and air conditioning increased by 1.94% and by 3.67%; clean water, waste water, and waste treatment rose by 0.45% and by 1.46%. Generally for the first 6 months of the year, the producer price index for industry increased by 1.02% compared to the same period last year.

Input producer price index in the second quarter increased by 0.41% compared to the previous quarter and by 0.75% over the same period last year, of which input producer price index for agricultural, forestry and fishery production decreased by 2.43% and by 0.97%; input producer price index for industry increased by 0.19% and by 0.32%; input producer price index for construction rose by 3.17% and by 4.72%. In the first 6 months of the year, the input producer price index increased by 0.57% compared to the same period last year.

The transport and storage service price index in the second quarter increased by 0.59% compared to the previous quarter and rose by 2.63% compared to the same period last year, of which the railway fare price index reduced by 2.73% and by 3.62%; road and bus transport increased by 0.37% and 1.41%; waterways decreased by 0.24% and 0.13%; airways increased by 3.80% and 6.60%; storage and transport supporting services increased by 0.05% and 2.26%; postal and delivery services increased by 0.01% and decreased by 0.36%. Generally for 6 months in 2017, the transport and storage service price index increased by 1.74% compared to the same period in 2016.

The producer price index for service in the second quarter of 2017 increased by 0.71% compared to the previous quarter and increased by 3.61% over the same period last year, of which the producer price index for service of some economic activities was as follows: accommodation and catering services increased by 0.74% and 2.71%; information and communication increased 0.01% and 0.30%; education and training rose by 0.24% and 6.28%; human health and social work activities increased by 6.94% and 25.34%. Generally for 6 months in 2017, the producer price index for service increased by 3.65% compared to the same period in 2016.

         d. Import and export price index

Merchandise export price index in the second quarter decreased by 0.47% compared to the previous quarter and increased by 4.55% over the same period last year, of which the export price index of agricultural products and foodstuffs rose by 0.70% over the same period and climbed up by 9.32%; fuel group increased by 0.46% and by 30.64%; manufacturing products reduced by 0.68% and rose by 1.34%. Export price index of some items in the second quarter was as follows: fruit and vegetable products increased by 0.96% compared to the previous quarter and by 2.84% over the same period last year; coffee rose by 0.74% and by 29.80%; crude oil increased by 0.87% and by 33.61%; rubber rose by 5.21% and by 49.85%; iron and steel jumped by 4.88% and declined by 5.99%. Generally for the first 6 months, the merchandise export price index increased by 5.27% compared to the same period in 2016.

Merchandise import price index in the second quarter increased by 0.06% compared to the previous quarter and rose by 3.20% compared to the same period last year, of which the import price index of agricultural products and foodstuffs increased by 0.63% and by 4.66%; fuel group fell by 1.73% and increased by 22.52%; manufacturing products increased by 0.10% and by 1.41%. Import price index of some items in the second quarter was as follows: liquefied natural gas decreased by 9.77% compared to the previous quarter and increased by 6.57% over the same period last year; gasoline fell by 0.80% and increased by 26.11%; rubber increased by 6.43% and by 36.11%; wood and wood products increased by 0.81% and reduced by 3.20%; computers, electronic products and components increased by 3.30% and by 3.65%. Generally for the first 6 months, the merchandise import price index increased by 3.30% compared to the same period last year.

Merchandise term of trade[26] in the second quarter decreased by 0.52% compared to the previous quarter and rose by 1.31% compared to the same period last year, of which the merchandise term of trade of gasoline fell by 0.94% and increased by 5.80%; rubber decreased by 1.14% and increased by 10.09%; computers, electronic products and components reduced by 3.49% and by 5.56%; phones and components increased by 10.72% and by 17.44%. Generally for the first 6 months, the merchandise term of trade increased by 1.90% compared to the same period in 2016.

      III. SOCIAL ISSUES

  1. Population, labor and employment

The national average population in 2017 was estimated at 93.7 million persons, of which the urban population was 32.9 million persons, accounted for 35.1%; the rural population was 60.8 million persons, made up 64.9%; meanwhile by gender, the male and female population was 46.2 million persons and 47.5 million persons respectively with the corresponding share of 49.3% and 50.7%.

As of 01 July 2017 labor force aged 15 years and over of the whole country was estimated at 54.5 million persons, a year on year increase of 162.2 thousand, of which the number of male employees was 28.3 million persons, accounted for 52.0%; the number of female employees was 26.2 million persons, made up 48.0%. By region, the employed population aged 15 years and over working in urban and rural area were 17.5 million persons and 37.0 million persons respectively with the corresponding share of 32.1% and 67.9%.

As of 01 July 2017, labor force in working age was estimated at 47.9 million persons, a year on year increase of 405.3 thousand persons, of which male employees was 26.0 million persons, made up 54.2%;female employees was 21.9 million persons, accounted for 45.8%. Labor force in working age working in urban and rural area was 16.0 million persons and 31.9 million persons respectively with the corresponding share of 33.4% and 66.6%.

Over the last 6 months, the employed population aged 15 years and over was estimated at 53.4 million persons, of which employees of the agriculture, forestry and fishery sector were 21.6 million, made up 40.4% of the total employed population; the industry and construction sector was 13.6 million persons, the corresponding share of 25.6%; and the service sector was 18.2 million persons, with the corresponding share of 34.0%.

Underemployment rate at working age in Q1 2017 was 2.30%; and estimated for Q2 2017 was 2.26%. Generally, for 6 months of 2017 the unemployment rate of labor force in working age was 2.28%, (urban area: 3.22%; rural area: 1.81%). The youth unemployment rate (aged 15 to 24) in 6 months 2017 was 7.48%, of which urban and rural was 11.98% and 5.79%, respectively. Underemployment rate at working age in Q1 was 1.82%; and estimated for Q2 was 1.63%. Generally, for 6 months of 2017 the underemployment rate of labor force in working age was 1.72%, (urban area: 0.85%; rural area: 2.15%).

Percentage of employment in the informal economy in non-agricultural activities[27] in Q1 2017 was 56.9%; estimated for Q2 2017 was 57.3%, of which urban and rural area was 48.7% and 64.7%. Generally, for 6 months of 2017 the national percentage of employment in the informal economy in non-agricultural activities was 57.1% 57.1%, (urban area: 48.8%; rural area: 64.3%).

  1. Living standards and social security

Over the last 6 months of 2017, living standards was generally stable. However, because the price of pork in the earlier months of the year fell sharply, the lives of livestock households faced many difficulties. Localities actively implemented the National Target Program for sustainable poverty reduction in the period of 2016-2020 and social security. According to the preliminary report, the total budget from central level, provincial level and organizations and individuals for social protection and poverty reduction in 6 months was 4,175 billion VND, of which: 2,132 billion VND of gifts and assistances for policy beneficiaries; 1,596 billion VND to support poor households and 447 billion VND for hunger-relief and other social reliefs. Besides, there were 13 million health insurance cards, free health care books/cards were donated to policy beneficiaries in the whole country.

Food shortage among farmers witnessed a fall compared to the previous year. In June, the whole country witnessed 16 thousand households suffering from food shortage a year on year fall of 37.7%, corresponding to 64.6 thousand persons suffering from food shortage, declined by 41%. Generally, for 6 months of 2017, the whole country witnessed 155.7 thousand households suffering from food shortage a year on year fall of 26.3%, corresponding to 638.5 thousand persons suffering from food shortage, declined by 26.9%. In order to overcome food shortage, from the beginning of the year, all administrative levels, sectors and organizations from central to local level supported these households with 17.2 thousand tons of food and about 1.1 billion VND.

  1. Education and Training

By the end of June 2017, all 63 provinces and cities under central authority have been recognized for gaining universal pre-school education for five-year-old children and level 1 of the illiteracy eradication programs, in which 14 provinces and cities[28] were recognized to meet the standard of primary education universalization level 3 according to the Decree No. 20/2014/ND-CP of the Government and Circular No. 07/2016/TT-BGDĐT of the Ministry of Education and Training.

The organization of the national graduation exam of upper secondary schools continued in the direction of reducing pressure and financial burden for candidates, families and society, ensuring reliability in graduation and serving as a benchmark for admission to universities and colleges. According to preliminary reports, the national graduation exam of upper secondary schools in this year was held at 63 exam location groups, corresponding to 2,364 exam locations and 36,832 exam rooms. The number of registered candidates for the exam was 866 thousand persons, of which 640 thousand candidates registered for university and college admission, accounting for 75% of the total number of candidates registered for the exam.

  1. Epidemic diseases and food poisoning

In June, the whole country witnessed 6.5 thousand cases of hand, foot and mouth disease; 8.8 thousand cases of hemorrhagic fever (1 death); 67 cases of typhoid; 80 cases of viral encephalitis (4 deaths); 5 cases of meningococcal meningitis; 3 cases of Zika virus infection 68 cases of whooping cough; 20 cases of human streptococcus suis infection (2 deaths). Generally, for 6 months of 2017, the whole country witnessed nearly 21.7 thousand cases of hand, foot and mouth disease; 36.4 thousand cases of hemorrhagic fever (9 deaths); 251 cases of typhoid; 275 cases of viral encephalitis (9 deaths); 19 cases of meningococcal meningitis (3 deaths); 27 cases of Zika virus infection, 334 cases of whooping cough; 80 cases of human streptococcus suis infection (6 deaths) and 37 cases of Japanese encephalitis.

As of 17 June 2017, the total number of alive HIV-infected persons over the country was 218.3 thousand persons and the number of cases turned to AIDS was 89.7 thousand persons; the number of persons died of HIV/AIDS nationwide was 91.1 thousand persons.

In June, there were 15 food poisoning cases, poisoned 340 persons, of which one death. Generally, for 6 months of 2017, there were 59 food poisoning cases, poisoned 1,346 persons, of which 17 deaths.

  1. Culture and Sport

Cultural activities during the first 6 months of 2017 focused on celebrating Great Holidays, major events of the country and celebrating the Party and the Dinh Dau Lunar New Year. Many events were organized on a large scale and receive actively response of many people. The 7th Quang Nam Heritage Festival; Telefilm Exhibition 2017 in Ho Chi Minh City; Festivals of the sixth Southern Bánh Dân gian Festival in Can Tho; Southern Fruit Festival in Ho Chi Minh City; Festival of the second national Don ca tai tu in Binh Duong; the 5th Hoi An International Association of Choirs, International Fireworks Festival of Da Nang; Successful organization of the welcoming UNESCO recognition of “Vietnamese Religious Practice Tho mau Tam phu” on the List of the Intangible Cultural Heritage of Humanity.

Festival management focused on promoting the advantage of folk festivals and in line with cultural traditions; strengthening supervision and determined to address those festivals that violated the regulation and failure in ensuring security and environmental sanitation. Some localities convinced the community to abolish the festivals with violence factor, which was not in line with the civilization.

The mass movement of sports continued to be stepped up, with the movement “the campaign named “All people do physical exercise as the Great Uncle Ho did” took place throughout the country. Many physical training activities had been carried out such as a day of Olympic for people’s health; Sports Games at all levels; the Sports sector coordinated with ministries and branches in implementing sporting activities and plans for Safe Swimming and by teaching children nationwide how to swim in 2017; preparation for attending SEA Games 29 and Para Games 9 in Malaysia and regional, continental and other world sporting tournament.

In high performance sports, for 6 months of 2017, Viet Nam sports team won 335 medals in all kinds (136 gold medals, 104 silver medals and 95 bronze medals) in international tournaments, of which the world level had 13 gold medals, 13 silver medals and 16 bronze medals.

  1. Traffic accidents

In June (from 16 May to 15 June), there were 1.569 traffic accidents traffic accidents occurred nationwide, including 742 traffic accidents from less serious to more and 827 traffic collisions, causing 643 deaths, 403 injuries and 945 slight injuries. Compared to the same period last year, the number of traffic accidents in June decreased by 10.6% (the number of traffic accidents from less serious to more decreased by 15.3% and the number of traffic collisions went down by 5.9%); the number of deaths declined by 16.9%; the number of injuries dropped 19.9% and the number of slight injuries decreased by 10.3%.

Generally, for the first 6 months of 2017, there were 9,593 traffic accidents occurred nationwide, including 4,797 traffic accidents from less serious to more and 4,796 traffic collisions, causing 4,134 deaths, 2,386 injuries and 5,549 slight injuries. Compared to the same period last year, the number of traffic accidents in 6 months of this year decreased by 6.2% (traffic accidents from less serious to more decreased by 4.8%; the number of traffic collisions declined by 7.6%); the number of deaths decreased by 5.2%; the number of injuries dropped 17.9% and the number of slight injuries decreased by 8%. Of the total of 4,797 traffic accidents from less serious to more over the last 6 months, 4,661 cases (accounted for 97.2%) occurred on the road, causing 4,031 deaths and 2,341 injuries. There were 76 cases of railway traffic accident, causing 65 deaths and 30 injuries; 60 cases of waterway and maritime traffic accidents, causing 38 deaths and 15 injuries. On average 52 traffic accidents occurred a day in the first 6 months 2017 nationwide, including 26 traffic accidents from less serious to more and 26 traffic collisions, causing 23 deaths, 13 injuries and 30 slight injuries.

Remarkably, there were several serious traffic accidents: Maritime traffic accident in Vung Tau sea on 27 March left 9 deaths and 2 wounded; the traffic accident at the Phuoc Thanh commune (Binh Dinh) on 24 April left 4 deaths and two wounded; road traffic accidents on Highway No. 14  section in Chu Se town (Gia Lai) on 7 May left 13 deaths and 32 wounded; road traffic accidents occurred in Tam Dao (Vinh Phuc) on 8 June causing 2 deaths and 11 injuries.

  1. Damages caused by natural disasters 

Generally, for the 6 months of 2017, natural disasters caused 27 deaths and missing, 30 injuries; 5.9 thousand houses were flooded, hit by landslide, roof ripped-off; 7.6 thousand hectares of rice and 3.8 thousand hectares of arable crops were damaged. Total value of damage was estimated at over 433 billion VND. In June alone, heavy rains, floods, tornadoes and landslides caused 17 deaths and 13 missing; nearly 600 houses were flooded, hit by landslide, roof ripped-off; 2 thousand ha of rice, 529 ha of hectares of arable crops were flooded and damaged. The value of damage was estimated at over 100 billion VND.

The landslide situation continues to occur in the Mekong Delta, especially in provinces of An Giang, Dong Thap, Bac Lieu, Ca Mau and Can Tho. In the first half of 2017, there were 20 cases of landslides, affecting people’s lives and value of damage was hundreds of billions VND. Forecasting of the landslide situation was still very complicated, local authorities should closely monitor evacuation activities, actively relocate households out of dangerous areas, with high risk of landslides to ensure safety, minimizing property damage.

  1. Environment protection, fire and explosion prevention

In June 2017, 1,576 cases of violating regulations of environment protection were found, of which 1,212 cases were addressed with total fine of nearly 18.3 billion VND. Generally, for the 6 months of 2017, 9,520 cases of environmental violations across the country were found, of which 7,920 cases were addressed with a total fine of nearly 114 billion VND.

In June 2017, there were 328 cases of fire and explosion across the country, caused 5 deaths and 26 wounded, with an estimated damage of over 65 billion VND. Compared to the previous year, the number of fire and explosion cases increased by 19.7%, the number of deaths fell by 58.3%, the number of injuries decreased by 31.6%, and the loss was estimated to decreased by 51.2%. Generally, for the 6 months of 2017, there were 2,359 fires and explosions nationwide, causing 49 deaths and 129 injuries, with an estimated loss of  about 1 trillion VND. Fire and explosion incidents are mainly concentrated in residential areas, industrial zones, leased premises for business, in which some cases were serious such as: Fire at night market in Dong Xoai town (Binh Phuoc) on February 15 left 3 dead; fire in Thu Dau Mot city (Binh Duong province) on 26 February left 4 dead; the fire in Binh Tan district in Ho Chi Minh City on 12 March left 4 dead; the fire in Tra Noc Industrial Park (Can Tho) on 23 March caused more than 100 billion VND of damage and the fire civilian housing in Da Nang on 5 April left three dead.

In general, socio-economic situation in the first 6 months of 2017 continued to witness positive change. The macro economy continued to maintain steady, growth in the second quarter higher than the previous quarter. Inflation was controlled, the level of interest rate, stable exchange rate; investment and business environment witnessed improvement; export growth increased, international visitors and foreign investment attraction noted good increase. Unemployment and underemployment rates were lower than the same period social security continued to be paid attention by authorities achieving certain results. However, our economy still had shortcomings and challenges: The growth rate reached approximate level as expected; slow progress of disbursement of investment; agricultural production was affected by saline intrusion from previous years and agricultural and food prices decreased; the life of a group of population was still difficult.

In order to realize the objectives of socio-economic development in 2017, the tasks in the last months of the year are huge. In order to reach the socio-economic development objectives in 2017, including the annual GDP growth target of 6.7%, the tasks in the last months of the year were still very huge. Requiring branches and levels , localities and the business community must effectively implement the Government’s Resolution No.01/NQ-CP oon major tasks, solutions to implement the Socio-economic development plan and estimation of the State budget in 2017; social and state budget estimates; Directive No. 24/CT-TTg of the Prime Minister on key tasks and solutions to promote the growth of industries and sectors in order to realize the economic growth target in 2017.  Focusing on the following contents::

Firstly, continue to navigate monetary policy in the direction of prudence and flexibility, closely in line with fiscal and policy and other macro policies to curb inflation and support growth. To accelerate credit growth, ensuring that credit growth in 2017 will reach 18%. To create favorable conditions for lending business capital, household consumption loans; striving to reduce the lending rate of credit for investment in production and business. To concentrate credit capital on priority sectors such as agriculture, rural areas, export, auxiliary industries, enterprises applying high technology, support for start-ups;removing difficulties for pigs husbandry household.

Secondly, to have suitable solutions to attract and mobilize investment capital to boost economic growth, ensuring total investment capital of 2017 will be 34% -35% of GDP. Ministries and line ministries should accelerate disbursement of public investment in the last months of the year, contribute to promoting growth, focus on major and important projects, national target programs, to ensure implementation and disbursement of all public investment allocated in 2017. To strengthen inspection and monitoring to ensure public investment to be effectively and economically used for the right purpose, avoid any waste, corruption and debt in infrastructure construction.

Thirdly, to continue restructuring the agriculture sector in the direction of promoting transfer and application of science and technology and advanced processes into production, towards clean agriculture, environmentally friendly. To pro-actively monitor the weather changes to minimize the impact of rough natural disasters. To step up the model of large field model to improve production efficiency and quality of cultivation products. To create mechanisms for capital and actively seize market information so that enterprises and producers can sign contracts for product price stabilization and stabilize outputs for agricultural products. To actively support farmers to implement effective conversion models from rice land to short-term crops, fruit trees and aquaculture. To effectively control diseases, ensuring quality of animal feed and food safety, expanding markets for consumption of animal products both domestic and abroad. To accelerate the roadmap to lift China’s import ban on Vietnam’s domestic meat and at the same time soon to agree to legally export major live pig and pork products to China. The government should have appropriate policies to support pig farmers to restore livestock sector in the country, preparing pork products for the last months of the year. To focus on developing two main products are shrimp and catfish in aquaculture.

Fourthly, to concentrate on maintaining and promoting the growth of manufacturing processing industry. To have policies to encourage the development of domestic consumer industries such as sugar production and fertilizer production. To seek and expand export markets for footwear and textile products for better growth and have trade protection measures in line with WTO regulations to protect the steel industry. To have policies and technical solutions in the mining industry to improve the production of crude oil and coal, ensuring mining safety and environmental protection. To properly mobilize the capacity, power of hydroelectric plants, and electricity sources purchased by independent power plants for production and consumption. To handle all weak industrial projects, enterprises, long-term losses causing waste of the State’s assets.

Fifthly, to encourage domestic consumption demand, increase competitiveness of domestic goods over imported goods, To advocate and persuade Vietnamese to use Vietnamese goods. To develop domestic retail and distribution systems to minimize foreign institutions take over supermarkets network and bring their goods to Vietnam’s market. To enhance trade promotion, increase export including traditional markets and markets with high potential purchasing power and markets where Free Trade Agreements were signed. To perform the market forecasting, to understand the technical barriers and to take initiative in developing measures to deal with and overcome.

Sixthly, to effectively implement the National Target Program for sustainable poverty reduction and social security policies. To provide ad-hoc assistance to ensure that people get stuck in risks and natural disasters are timely supported to overcome difficulties and stabilize their lives.

GENERAL STATISTICS OFFICE


                                                      

[1] In April 2017, the International Monetary Fund (IMF) raised its forecast of global economic growth in 2017 to 3.5%, an increase of 0.1 percentage points compared to 3.4% as forecasted in January 2017.

[2] The growth rate of value added of the service sector in the first 6 months of years from 2012 to 2016 was: 6.11%, 6.13%, 5.82%, 5.86%, 6.47%, respectively.

[3] The growth rate of value added of the mining and quarrying in the first 6 months of years from 2011 to 2016 was: 2.82%, 5.1%, 2.05%, 1.13%, 8.48%, 2.25%, respectively.

[4] The growth rate of real estate business in the first 6 months of the years from 2012 to 2016 was: 0.8%, 1.81%, 2.51%, 2.72%, 3.33%, respectively.

[5] Of which: Conversion area to non-agricultural land (construction of infrastructure and roads …) was 2.8 thousand hectares; converting into perennial crops was 2.5 thousand hectares; other annual crops (vegetables, beans) was 1.2 thousand hectares; area of non-productive land (fallow and polluted) was 1.9 thousand hectares

[6] Conversion area into perennial crops was 6.3 thousand hectares; aquaculture was 2.3 thousand hectares; 0.3 thousand hectares of non-agricultural land; Area of unproductive land due to drought and salinity was 7.4 thousand hectares.

[7] Yeild of winter-spring padday in Northern localities reached 7.1 million tons, a decline of 146.9 thousand tons, in comparison with that of over the previous winter-spring crop; Southern provinces reached 12 million tons, a decline of 149.7 thousand tons.

[8] Area of aquaculture in the first 6 months reached 907.9 thousand hectares, a rise of 3%, in comparison with that of over the same period last year, of which area of farming reached 253.2 thousand hectares, an increase of 0.7%; shrimp farming area reached 611.8 thousand hectares, an increase of 3.7%..

[9]Fishery production in 6 beginning months of 2017, in comparison with that of over the same period last year; Ha Tinh increased by 12.1 thousand tons (by18.9%); Quang Binh increased by 25.5 thousand tons (by 12.2%); Quang Tri increased by 8.9 thousand tons (by 41.8%); Thua Thien – Hue increased by 17 thousand tons (by 29.2%).

[10] In the first 6 months of 2016, the IIP of the mining industry decreased by 3.8%; the IIP of the manufacturing, the production and distribution os electricity, and the water supply, sewerage, waste management and remediation activities increased by 10.2%, 11.2%, and 6.9%, respectively.

[11] Source: National business registration information system, Ministry of Planning and Investment.

[12] Compared to the same period last year, the number of enterprises increased by 10.1%; the registered capital increased by 41.2%; Average capital rose by 28.3%.

[13] In the first 6 months of 2016, the number of newly registered enterprises increased by 20% over the same period last year; the registered capital increased by 51.5%; the average registered capital of an enterprise rose by 26.2%.

[14] Credit growth in 6 months of some years: 2012 decresed by 0.2%; 2013 increased by 3.31%; 2014  rose 2.02%; 2015 increased by 6,28%; 2016 expanded 6,2%.

[15] In which: The project of  Nghi Son 2 BOT thermoelectric plant in Thanh Hoa with a total investment of 2.8 billion USD; BOT Nam Dinh 1 thermal power plant project had a total investment of 2.1 billion USD; Lot B – O Mon gas pipeline project in Kien Giang had a total registered investment capital of 1.3 billion USD

[16] The same period in 2016 was about 23% of yearly estimate

[17] Because Dung Quat Oil Refinery factory temporarily stopped production for periodical maintenance and all the exploitation output was put into export.

[18] Import turnover in the first 6 months of 2016 decreased by 0.2% over the same period.

[19] Trade deficit from China in the first 6 months of 2017 was 14.2 billion USD, went up by 0.3% year on year.

[20] Trade deficit in May was estimated at 800 million USD.

[21] Although there was an upward adjustment in petroleum price as of 05/6/2017.

[22] Northern provinces harvested winter-spring rice crop.

[23] Of which: Living weight pig price decreased by 4.71%; price of living weight poultry decreased by 0.87%.

[24] Prices of medical services increased by 23.44% making CPI in the first 6 months increase by 0.91%.

[25] Educational service prices rose by 1.55% making CPI in the first 6 months increase by 0.11%.

[26] Merchandise export price index compared to merchandise import price index

[27] 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) family labor in who are not entitled to salary; (ii) owners  or cooperative members of establishments without business registration and(iii) 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.

[28] Including: Hanoi, Vinh Phuc, Bac Ninh, Hai Duong, Hung Yen, Thai Binh, Ha Nam, Nam Dinh, Ninh Binh, Thai Nguyen, Bac Giang, Phu Tho and Hoa Binh  and Ha Tinh.