In 2016, the first year in the 5-year socio-economic development plan 2016-2020, took place in the context of a slower than expected recovery of the world economy, sharp decline of the global trade growth, less vibrant commodity market, low commodity prices in the world which affecting Viet Nam’s economy, especially import and export activities and State budget revenues. In the country, in addition to the advantages from the prosperous signs of 2015, the economy faced many difficulties and challenges due to complicated weather conditions and climate change. Bitter cold, damaging cold in the Northern provinces, drought in the Central Highlands, South Central Coast and severe saltwater intrusion in the Mekong Delta, floods and storms and marine environmental disaster in central provinces heavily affected production activities and people’s life.
In this situation, the Government led and directed all-level agencies and localities to focus on synchronous and effective implementation of Resolution No. 01/NQ-CP dated 7th January, 2016 on the main tasks and solutions to direct and operate the implementation of the 2016 socio-economic development plan and State budget estimates. At the same time, the Government issued a series of Resolutions to direct, solve and address urgent problems, and difficulties, to promote economic development, to stabilize people’s life, as well as protect ecological environment, including Resolution No. 19-2016/NQ-CP dated 28th April, 2016 on key tasks and solutions to improve business environment, and national competitiveness in 2016-2017, vision to 2020; Resolution No. 35/NQ-CP dated 16th May, 2016 on business support and development by 2020; Resolution No. 60/NQ-CP dated 8th July, 2016 on the main tasks and solutions to accelerate the implementation and disbursement of the 2016 public investment plan; Resolutions of regular meetings of the Government. With the strong innovations and the drastic direction of the Government, the Prime Minister, the efforts of all administrative levels, ministries/agencies, business community and the whole people, Vietnamese socio-economy in 2016 successfully overcame difficulties and challenges. Achievements of economic sectors, activities were as follows:
I. ECONOMIC GROWTH
- Growth rate of gross domestic product
The gross domestic product (GDP) in 2016 was estimated to increase by 6.21% compared to 2015, of which quarters’ growth rate was 5.48%, 5.78%, 6.56%, and 6.68%, respectively. This year’s overall growth rate was lower than the increase of 6.68% in 2015 and did not reach the target of 6.7%. However, in the unfavorable context of the world economy such as the slowdown of prices and global trade, as well as unpredictable weather conditions, environmental changes in the country, the above growth rate was a success, affirming the correctness, timeliness and efficiency of the measures and solutions issued and drastically directed by the Government along with jointly implemented by all-level ministries/agencies and localities.
In the 6.21% increase of the economy, the agriculture, forestry and fishery sector increased by 1.36%, the lowest level since 2011[1], contributing 0.22 percentage points to the overall growth; the industry and construction sector went up 7.57%, lower than the 9.64% increase of the previous year, contributing 2.59 percentage points; the service sector rose 6.98%, contributing 2.67 percentage points.
In the agriculture, forestry and fishery sector, the forestry activities achieved the highest increase of 6.11%, contributing only 0.04 percentage points to the overall increase due to its low proportion; the agriculture activities representing the largest share in the sector (about 75%) only increased by 0.72%, and contributed 0.09 percentage points; the fishery activities expanded 2.80%, contributing 0.09 percentage points. The agricultural, forestry and fishery sector faced many difficulties this year due to unfavorable weather conditions such as bitter cold and damaging cold at the beginning of the year in the Northern and Northern Central provinces; drought, saltwater intrusion in the South Central, Central Highlands, Southeast and Mekong River Delta regions; continuous floods in the last months of the year in the central provinces and marine environmental disaster occurred in late April in the coastal areas of the North Central provinces, greatly affected the production results of this region.
In industry and construction, the industry activities increased by 7.06% over the previous year, of which the manufacturing achieved a high growth of 11.90%, contributing significantly to the overall growth rate with 1.83 percentage points. The mining and quarrying this year dropped 4.00%, reducing 0.33 percentage point of overall growth, the deepest decline since 2011 onwards[2]. The main reason was the decrease in world oil prices, causing the extracted crude oil to decrease by more than 1.67 million tons compared to the previous year; the production of extracted coal was only 39.6 million tons, a downturn of 1.26 million tons. The trend of shifting to the manufacturing, reducing dependence on the mining and quarrying was essential for Viet Nam’s target towards more sustainable development. The construction spread 10.00%, contributing 0.60 percentage points to the overall growth.
In the service sector, the contribution of a number of large-shared economic activities to the total added value growth was as follows: the wholesale and retailing activities accounted for the largest proportion and reached an increase of 8.28% compared to 2015, contributing 0.77 percentage points to overall growth; the finance, banking and insurance activities increased by 7.79%, contributing 0.43 percentage points; the real estate business was improved with an increase of 4.00%, higher than the increase of 2.96% of the previous year, contributing 0.21 percentage points; the accommodation and catering services saw a relatively high growth rate of 6.70% compared to the increase of 2.29% in 2015, contributing 0.25 percentage points to the overall growth.
The growth rate of gross domestic products
Years 2014-2016
| The year-on-year growth rate (%) | Contribution of the economic sectors to the growth of 2016 (Percentage points) |
|||
| 2014 | 2015 | 2016 | ||
| Total | 5.98 | 6.68 | 6.21 | 6.21 |
| Agriculture, forestry and fishery | 3.44 | 2.41 | 1.36 | 0.22 |
| Industry and Construction | 6.42 | 9.64 | 7.57 | 2.59 |
| Service | 6.16 | 6.33 | 6.98 | 2.67 |
| Product taxes less subsidies on production | 7.93 | 5.54 | 6.38 | 0.73 |
The size of the economy in 2016 at current prices reached 4,502.7 trillion VND; GDP per capita was estimated at 48.6 million VND, equivalent to 2,215 USD, an increase of 106 USD compared to 2015. In terms of economic structure this year, the agriculture, forestry and fishery sector accounted for 16.32%; the industry and construction sector accounted for 32.72%; the service sector accounted for 40.92%; the product taxes less subsidies on production accounted for 10.04% (the corresponding structure of 2015 was: 17.00%; 33.25%; 39.73%; 10.02%).
From the expenditure approach of GDP in 2016, final consumption increased by 7.32% compared to 2015, contributing 5.29 percentage points to the overall growth (of which final consumption of households contributed 4.81 percentage points); gross capital formation increased by 9.71%, contributing 3.08 percentage points; the balance of exports and imports of goods and services was in trade deficit, reducing 2.16 percentage points of the overall growth rate.
- Agriculture, forestry and fishery
Production of agriculture, forestry and fisheries in 2016 faced many difficulties due to the effects of climate change and extreme weather: cold weather at the beginning of the year in Northern provinces; rain and flood in the Central Area; severe drought and saline intrusion in the South Central, Central Highlands, Southeast, Mekong River Delta and marine environmental incidents occurred in 4 central provinces. Gross outputs of agriculture, forestry and fishery production in 2016 at constants prices 2010 was estimated at 870.7 trillion VND, an increase of 1.44%, in comparison with that in 2015, of which: Agriculture reached 642.5 trillion VND, an increase of 0.79%; forestry reached 28.2 trillion VND, an increase of 6.17%; fishery reached 200 trillion VND, an increase of 2.91%.
Agriculture
Paddy production in 2016 was estimated at 43.6 million tons, a decrease of 1.5 million tons, in comparison with that in 2015[3] due to cultivated area recorded 7.8 million hectares, a decrease of 40 thousand hectares; the yield reached 56 quintals / hectares, a decrease of 1.6 quintals / hectares. If included 5.2 million tons of maize, total production of cereals this year was estimated at 48.8 million tons, a decrease of 1.5 million tons, in comparison with that of over the same period in 2015.
Production of paddy, cultivated area of winter-spring paddy this year reached 3.1 million hectares, a decrease of 30,000 hectares compared with that of over the previous winter-spring crop; yield reached 63 quintals / hectare, a decrease of 3.5 quintals / hectare, production reached 19.4 million tons, a decline of 1.3 million tons. Winter-spring paddy production this year recorded a decrease, in comparison with that of over the previous winter-spring crop in terms of area, yield and production was affected by cold, frosty weather in Northern provinces, drought and intrusion. Salinity in southern provinces, especially in the Mekong Delta[4]. The cultivated area of summer-autumn and autumn-winter paddy reached 2.8 million hectares, an increase of 23.9 thousand hectares of over the same previous year; yield reached 53.5 quintals / hectare, a decrease of 0.6%; production reached 15 million tons, an increase of 34 thousand tons in comparison with that in 2015[5].
Area of cultivation winter paddy in the country reached 1.9 million hectares, a decrease of 33.5 thousand hectares, in comparison with that of over the previous year crop, due to the Northern region was affected by drought and lack of water at early of the crop; Some provinces in the South recorded a crops conversion due to long-term saline intrusion and drought effects. Yield of summer paddy this year was estimated at 48.4 quintals / hectare, a decrease of 0.4 quintals / hectare, in comparison with that of over the previous crop; production was estimated at 9.2 million tons, a decrease of 243 thousand tons. In some localities, yield of winter paddy decreased sharply, in comparison with that of over the previous year: of which Kien Giang by 175 thousand tons; Vinh Phuc by 33 thousand tons; Ben Tre by 25.7 thousand tons; Soc Trang by 19.7 thousand tons; Long An by 12 thousand tons.
Production of some other annual crops recorded low: sweet potato production reached 1,289.1 thousand tons, a decrease of 46.5 thousand tons, in comparison with that of over the previous year (a decrease in area of 6.1 thousand hectares); sugarcane reached 17.2 million tons, a decrease of 1.2 million tons (a decrease in area of 10,000 hectares); peanut reached 441.4 thousand tons, a drop of 12.7 thousand tons (a decline in area of by 8.6 thousand hectares). Cassava and soybean production recorded a slight increase: Cassava production reached 10.9 million tons, an increase of 192 thousand tons (area recorded an increase of 2 thousand hectares); soybean reached 147.5 thousand tons, an increase of 1.1 thousand tons (a decrease in area of 6.8 thousand hectares); vegetable production reached 16 million tons, an increase of 741 thousand tons and (increased by 17.7 thousand hectares).
Area of perennial industrial crops reached 2.2 million hectares, an increase of 16.2 thousand hectares, in comparison with that in 2015, of which some provinces in Central Highlands and Southeast was tending to break down old rubber trees changed to pepper and some other crops. Rubber area in 2016 was estimated at 976.4 thousand hectares, a decrease of 0.9% compared with that of over the previous year; production reached 1,032.1 thousand tons, a rise of 1.9%; pepper area reached 124.5 thousand hectares, an increase of 22.5%, production reached 193.3 thousand tons, a growth of 9.4%; coffee area reached 645.4 thousand hectares, a rise of 0.3%, production reached 1,467.9 thousand tons, an increase of 1%; cashew area reached 293 thousand hectares, a rise of 0.9%, production reached 303.9 thousand tons, a decline of 13.7% due to the effects of long lasting drought, some areas affected by fog so production recorded losses at the beginning of the crops.
Fruit this year recorded well, many groups of fruit trees recorded an increase[6] in area for fruits and stable consumption markets. Production of oranges in 2016 reached 627.1 thousand tons, an increase of 10.8% compared with that of over the previous year; tangerines reached 172.4 thousand tons, a growth of 6.9%; pommel reached 500.3 thousand tons, a growth of 6.1%; mango reached 724.4 thousand tons, a growth of 3.1%; bananas reached 1,977 thousand tons, a growth of 1.7%. Particularly, production of longan and litchi recorded low due to the fact that many plants were cut down due to not bring economic efficiency the North and effects of pests in Southern provinces[7].
Cattle and poultry husbandry recorded positive signals, epidemic diseases was controlled[8]; price of the product remained high and at that level the farmers made profits. Farming models changed from small scale, scattered husbandry to farms, household farms, associating with enterprises that created stable productions for products. According to livestock survey results, as of October 1, 2016, buffalo population reached has 2.5 million heads, a decrease of 0.2%, in comparison with that of the same period last year; cattle population reached 5.5 million, a rise of 2.4%, particularly cow milk reached 282.9 thousand, an increase of 2.8%; pigs recorded 29.1 million, an increase of 4.8%; poultry reached 361.7 million, a rise of 5.8%. Production of meat of all kinds this year recorded good, of which production of buffalo living weight reached 86.6 thousand tons, an increase of 1%, in comparison with that of over the same period last year; cattle production reached 308.6 thousand tons, a rise of 3.1%; pig living weight reached 3.7 million tons, an increase of 5%; poultry living weight reached 961.6 thousand tons, an increase of 5.9%; egg production reached 9.446.2 millions, a rise of 6.4%.
Forestry
In 2016, area of concentrated forests in the country was estimated at 231.2 thousand hectares, a drop of 3.9%, in comparison with that in 2015, of which some localities recorded a large reduction in concentrated forests area: Ha Giang decreased by 8.9 thousand hectares (by 40.3%); Tuyen Quang decreased by 3.3 thousand hectares (by 24%); Thanh Hoa decreased by 2.2 thousand hectares (by 17.3%). Number of scattered trees in the year reached 154.5 million, a decline of 4.2%, in comparison with that of over 2015.
Wood production in 2016 was estimated at 9,568 thousand m3, an increase of 10.3% compared with that of over the previous year, of which some localities recorded a high increase in wood production: Quang Ngai reached 866 thousand m3, an increase of 21.2%; Bac Giang reached 501 thousand m3, an increase of 25.3%; Thanh Hoa reached 499 thousand m3, an increase of 25.4%. Firewood production reached 27.1 million ste, which recorded 0.4% lower than that in 2015.
Forest fire protection and prevention was interested by all relevant agencies and authorities sectors but due to long lasting drought and hot weather, forest fires continued to occur. Damaged forest area of the country in 2016 was 4,519 hectares, which recorded 2.4 times higher than that in 2015, of which forest fire area was 3,320 hectares, recorded 3.1 times higher; area of deforested was 1,199 hectares, an increase of 47.5%. Some provinces recorded large forest fire area: Dien Bien by 969 hectares; Son La by 919 hectares; Ha Giang by 226 hectares; Yen Bai by 194 hectares; Binh Dinh by 182 hectare; Ha Tinh 113 hectare.
Fishery
Fishery production in 2016 was estimated at 6,728.6 thousand tons, an increase of 2.7%, in comparison with that of the previous year, of which fish reached 4,843.3 thousand tons, an increase of 2.5%; shrimp reached 823.9 thousand tons, an increase of 3.3%.
Aquaculture in beginning months of the year faced difficulties due to climate changes, pollution of water sources, a drop of export markets, and witnessed and unstable price. In the last months of the year, the situation improved but in general, production of aquaculture in the year recorded low. Aquaculture production in 2016 was estimated at 3,604.3 thousand tons, an increase of 2.6%, in comparison with that of over the previous year, of which fish reached 2,576.8 thousand tons, a rise of 2.1%; shrimp reached 649.3 thousand tons, a growth of 3.4%.
Pegasus farming recorded positive signals in the last months of the year, but in general which still faced difficult due to the price and market consumption recorded unstable. Area of pangasius farming in 2016 was estimated at 5,105 hectares, a decrease of 1.2%, in comparison with that of over the previous year; production was estimated at 1,143.1 thousand tons, an increase of 1.3%, of which Dong Thap reached 403.4 thousand tons, a growth of 0.8%, Ben Tre reached 172.3 thousand tons, an increase of 1%.
Brackish shrimp farming recorded good in the last months of the year due to rainy weather which reduced salinity. In addition, prevention and control of diseases was paid attention, so the farming area and harvested production recorded quite well. Area of tiger shrimp farming in 2016 was estimated at 571 thousand hectares, a rise of 0.1%, in comparison with that of over the previous year; production reached 251.7 thousand tons, an increase of 1%. The area of white leg shrimp farming in 2016 reached 102.3 thousand hectares, an increase of 16.3% , in comparison with that of over the previous year; production reached 357.6 thousand tons, rose by 5%, of which Soc Trang reached 85.5 thousand tons, an increase of 22.9%, Ca Mau reached 55.5 thousand tons, an increase of 5.2%.
The weather in the year recorded relatively favorable for catching and especially for marine catching, low gasoline prices along with developed fishery logistics created conditions for fishermen to conduct a long marine catching. However, the marine environmental incidents that occurred at the end of April in Areas as; Ha Tinh, Quang Binh, Quang Tri and Thua Thien – Hue those caused the phenomenon of mass death of fish that affected the catching in Central coastal provinces as well as the whole country. In 2016, production of marine fishery was estimated at 3,124.3 thousand tons, an increase of 2.9%, in comparison with that in 2015, of which fish reached 2,266.5 thousand tons, an increase of 2.9%, shrimp reached 174.7 thousand tons, an increase of 3.3%. Marine fisheries production was estimated at 2,930.8 thousand tons, an increase of 3.2%, of which fish reached 2,131.3 thousand tons, an increase of 3.2%, shrimp reached 161.3 thousand tons, an increase of 3.7 %.
- Industrial production
The index of industrial production (IIP) in December was estimated to increase by 8.3% over the same period last year (November increased by 8% over the same period), of which the mining and quarrying decreased by 7.4%; the manufacturing, the production and distribution of electricity, and the water supply, sewerage, waste management and remediation activities increased by 12.9%, 10.8%, and 9.4%, respectively.
Generally for 2016, the IIP increased by 7.5% compared to 2015 (the growth of quarters was estimated at 7.4%, 7.1%, 7.1%, and 8.2%, respectively), much lower than the increase of 9.8% in 2015 and 7.6% in 2014 due to the sharp decline of the mining and quarrying. In industrial activities, the manufacturing increased by 11.2%, contributing 7.9 percentage points to the overall growth; the production and distribution of electricity increased by 11.5%, contributing 0.8 percentage points; the water supply, sewerage and waste management and remediation activities increased by 7.2%, contributing 0.1 percentage points; The mining industry dropped deeply by 5.9%, reducing the overall increase of 1.3 percentage points.
| Index of industrial production in the period 2012-2016 | |||||
| Unit: % | |||||
| 2012 | 2013 | 2014 | 2015 | Estimated 2016 | |
| The whole industry | 105.8 | 105.9 | 107.6 | 109.8 | 107.5 |
| Mining and quarrying | 105.0 | 99.4 | 102.4 | 107.1 | 94.1 |
| Manufacturing | 105.5 | 107.6 | 108.7 | 110.5 | 111.2 |
| Production and distribution of electricity | 111.5 | 108.4 | 112.5 | 111.4 | 111.5 |
| Water supply, sewerage and waste management and remediation | 108.2 | 109.5 | 106.3 | 106.9 | 107.2 |
Relating usage of industrial products, the IIP of intermediate products for the following production process in 2016 increased by 5% compared to the previous year; products for final consumption rose 9.1% (of which means of production expanded 11.4%; consumer goods for residents spread 8%). The index of intermediate products was lower than the index of products for final consumption, showed that intermediate products in industrial production still depended a lot on imported sources.
In 2016, the IIP of a number of 2-digit industrial activities increased significantly over the same period last year, including: the manufacture of basic metals (17.9%); the manufacture of textile (17.3%); the manufacture of motor vehicles (16.4%); the manufacture of electronic, computers and optical products (12.8%); the manufacture of other non-metallic mineral products (12.6%); the manufacture of furniture (12.5%). Some industrial activities experienced a moderate increase, such as the manufacture of pharmaceuticals, medicinal chemical and botanical products (3.2%); other mining and quarrying (2.2%); the manufacture of chemicals and chemical products (1.2%). A number of industrial activities showed a downturn, including the mining of hard coal and lignite (2.9%); the extraction of crude oil and natural gas (8.0%) (due to low world oil prices, this year’s crude oil extraction plan was only 89% of 2015).
In 2016, some main industrial products increased sharply over the same period last year, for instance: Television (70%); rolled steel (26.8%); automobiles (21.9%); iron and crude steel (20.5%); animal feed (18.3%); cement (14.4%); power milk (13.3%). Several products moderately increased over the same period last year, e.g.: cigarettes (3.5%); leather shoes and sandals (2.8%). Otherwise, a number of products witnessed a downward trend, for instance: natural gas (0.5%); fabrics from natural yarn (2.6%); coal (3.1%); urea fertilizer (5.8%); refined sugar (8.3%); extracted crude oil (9.9%); NPK mixed fertilizer (10.6%); mobile phones (10.8%).
In 2016, some localities with large share of the industry sector showed an increase in the IIP over 2015, including: Quang Nam (30%); Thai Nguyen (24%); Hai Phong (16.8%); Da Nang (13.1%); Binh Duong (10.3%); Hai Duong (8.9%); Dong Nai (8.5%); Can Tho (8.3%); Ho Chi Minh City (7.4%); Ha Noi (7%); Vinh Phuc (6.8%); Bac Ninh (5%); Quang Ninh (0.9%). The IIP of only Ba Ria – Vung Tau decreased by 6.3%.
The index of industrial shipment (IIS) of the manufacturing activities in November 2016 increased by 4% over the previous month and by 11.9% over the same period last year. Generally for 11 months, the IIS increased by 8.4% compared to the same period in 2015 (the figure was 12.6% in same period last year), of which some industrial activities saw a significant increase: the manufacture of motor vehicles (20.8%); the manufacture of electronic, computers and optical products (15.1%); the manufacture of beverages (11.9%); the manufacture of basic metals (11.9%); the manufacture of wearing apparel (10.7%); the manufacture of other non-metallic mineral products (10.6%). Various industries industrial activities experienced a modest increase of the IIS: the manufacture of electric equipment (6.3%); the manufacture of food products and the manufacture of rubber and plastic products (6.1%); the manufacture of chemicals and chemical products (3.2%); the manufacture of pharmaceuticals, medicinal chemical and botanical products (2.8%); the manufacture of tobacco products (2.7%); the manufacture of other transport vehicles (1.4%).
The index of industrial inventory of the manufacturing as of 1st December, 2016 increased by 8.1% compared to the same period last year, which was the lowest inventory level for many years (the figure in the same period of 2015 reached 9.5%), of which some industrial activities showed a slight increase compared to the average increase of the index of industrial inventory: the manufacture of food products (6.5%); the manufacture of textile (6%); particularly, various industrial activities experience a decrease of the index of industrial inventory: the manufacture of wearing apparel 1.5%; the manufacture of chemicals and chemical products (4.3%); the manufacture of electrical equipment (7.4%); the manufacture of leather and related products (9.6%); the manufacture of fabricated metal products (10%); the manufacture of pharmaceuticals, medicinal chemical and botanical products (13%); the manufacture of tobacco products (27.5%). On the contrary, some industrial activities possessed a remarkable increase in the index of industrial inventory: the manufacture of paper and paper products (117.8%); the manufacture of electronic, computers and optical products (93.5%); the manufacture of beverages (40.4%); the manufacture of other non-metallic mineral products (26.5%).
The average index of industrial inventory of the manufacturing in the first 11 months of 2016 was 66.1% (the figure in the same period last year reached 72.3%), of which some industrial activities had high index of industrial inventory: the manufacture of fabricated metal products (except machinery and equipment) (125.7%); the manufacture of pharmaceuticals, medicinal chemical and botanical products (112.6%); the manufacture of chemicals and chemical products (108.2%); the manufacture of food products (84.9%).
The number of employees working in industrial enterprises as of 1st December, 2016 increased by 2.9% compared to the same period last year, of which the number of employees working in the state-owned enterprises fell 2.6%; in non-state enterprises increased by 1.8%; in FDI enterprises rose 4.9%. At the same time, the number of employees working in the mining and quarrying decreased by 6.9% compared to the same period last year; in the manufacturing went up 3.5%; in the production and distribution of electricity decreased by 1.3%; in the water supply, sewerage, waste management and remediation activities increased by 2.3%.
Some localities with large share of the industry sector witnessed an increase in the number of employees working in industrial enterprises as of 1st December, 2016 compared to the same period last year: Hai Phong (13.9%); Bac Ninh (8.1%); Binh Duong (7.9%); Vinh Phuc (6.6%); Dong Nai (4.1%); Da Nang (3.1%); Hai Duong (2.2%); Ha Noi (1.5%); Quang Nam (1.1%); Can Tho (0.9%); Ho Chi Minh City (0.3%); Thai Nguyen (0.2%). However, the number of employees working in industrial enterprises in Quang Ninh decreased by 1.9%.
In general, the growth of industrial activities in 2016 mainly based on the relative high growth rate of the manufacturing, along with favorable shipment, and the lowest level of inventory compared to previous years[9]. However, industrial growth in the country was still mainly focusing on quantity (increasing the number of enterprises, investment capital and labor attraction), while productivity, quality, efficiency and competitiveness were still limited.
- Operation of enterprises
Enterprises registration status [10]
In December 2016, there were 8,417 newly established enterprises the whole country with a registered capital of 93.4 trillion VND, went down 15.1% in number of enterprises and an increase of 7.3% in registered capital compared to last month; the average registered capital of an enterprise reached 11.1 billion VND, rose up 26.4%. The total number of registered employees in the month of newly established enterprises was 110.7 thousand VND, an upturn of 15.5% over the previous month.
This month, there were 2,129 re-operated enterprises, a rise of 2.7% over the previous month; 6,564 temporarily ceased enterprises (including: 1,578 enterprises ceased for a certain period of time and 4,986 enterprises temporarily ceased without registration or awaited dissolution), a downturn of 4%; 2,010 enterprises completed dissolution procedures, rising by 71.4%.
In 2016, the number of newly registered enterprises achieved a record with 110.1 thousand enterprises, an increase of 16.2% compared to 2015; the total registered capital was 891.1 trillion VND, going up by 48.1% (if including 1,629.8 trillion VND of additional registered capital of acting enterprises, the total registered capital and the additional registered capital in the economy in 2016 was 2,520.9 trillion VND); The average registered capital of a newly established enterprise in 2016 was 8.1 billion VND, a growth of 27.5% compared to 2015. The total number of registered employees of newly established enterprises in 2016 was 1,268 thousand persons, equal to 86.1% in 2015. This year, there were 26,689 re-operated enterprises, climbing by 24.1% over the previous year, bringing the total number of newly registered enterprises and re-operated enterprises in 2016 to nearly 136.8 thousand enterprises. This showed the effectiveness of the newly legal framework with the Government’s solutions to support and encourage enterprises, the business environment had been improved to provide the enterprises with opportunities business and beliefs in the market.
This year, the number of newly registered enterprises in almost economic activities increased in compared to the previous year, of which some economic activities increased strongly in the number of enterprises and the registered capital, as follows: Real estate activities increased by 83.9% of enterprises and 234.2% of registered capital; information and communication rose by 9.7% and 128.1%; financial, banking and insurance activities going up by 26.7% 87.4%; manufacturing an upturn up 18.9% and 60.4%; other services a rise of 35.3% and 87.7% … Particularly in the arts, entertainment and recreation, the number of newly registered enterprises was 26.2%; the registered capital decreased by 10.9%.
Number of enterprises completed dissolution procedures in 2016 was 12,478 enterprises, climbing by 31.8% over the previous year, of which 11,611 enterprises with capital size of less than 10 billion VND, accounting for 93.1% and rising by 30.9%. By kinds of enterprise, the total number of enterprises completed dissolution procedures, there were 4,901 one-member limited liability companies (accounting for 39.3%); 3,768 two-member limited liability companies (accounting for 30.2%); 2,174 private enterprises (accounting for 17.4%); 1,632 joint stock companies (accounting for 13.1%) and 3 partnership companies.
The number of temporarily ceased enterprises this year was 60,667 enterprises, reduce 15.2% over the previous year, including 19,917 enterprises ceased for a certain period of time, a rise of 27.3% and 40,750 enterprises temporarily ceased without registration or awaited dissolution, a cut down of 26.9%. The total number of enterprises ceased for a certain period of time, 7,919 one-member limited liability companies (accounting for 39.8%); 6,701 two-member limited liability companies (accounting for 33.6%); 3,346 joint stock companies (accounting for 16.8%); 1,950 private enterprises (accounting for 9.8%) and 1 partnership company. For enterprises temporarily ceasing operations without registering or waiting for dissolution, there were 17,251 one-member limited liability companies (accounting for 42.3%); 12,567 two-member limited liability companies (accounting for 30.9%); 7,269 joint stock companies (accounting for 17.8%) and 3,663 private enterprises (accounting for 9.0%). By economic activities, the number of enterprises temporarily ceased without registration or awaited dissolution in 2016 decreased compared to the previous year, in which some economic activities declined sharply: agriculture, forestry and fishering decreased by 62.4%; mining a rise of 51.6%; transportation and storage fell by 36.1%; accommodation and catering services reduced 35.7%; construction a downturn of 25.8%; wholesale and retail, repair of automobiles and motorbikes declining by 20.2% …
Business trends of enterprises
The results on the business trends survey of the manufacturing enterprises in the fourth quarter of 2016 showed that: 80.6% of enterprises assessed that the business production situation in the fourth quarter would be stable and better than the previous quarter (41.2% of enterprises presented that the trend would get better; 39.4% of enterprises would be stable), while 19.4% of enterprises faced difficulties. For expected that in the first quarter of 2017, 81.1% of enterprises predicted that the business production situation would be stable and better, of which 42.6% of enterprises presented that the trend would get better; 38.5% of enterprises said that the business production situation would be stable and 18.9% of enterprises forecasted that it be more difficulties.
Regarding production volume, 43.2% of enterprises point out production volume in the fourth quarter of this year increased compared to the previous quarter; 20.1% of enterprises reported that the production volume decrease and 36.7% of enterprises considered stable. In the first quarter of 2017, there were 43.3% of enterprises forecasted an increase in production volume compared to the fourth quarter in 2016; 18% of enterprises forecasted a decrease and 38.7% of enterprises predicted a stability.
Regarding orders for goods, 37.2% of enterprises had more orders in the fourth quarter this year; 19.5% of enterprises had fewer orders and 43.3% of enterprises recorded stable orders. The trend of the first quarter of 2017 compared to the fourth quarter of 2016, 39.3% of enterprises expected an increase in orders; 16.7% of enterprises expected a decrease in orders and 44.0% of enterprises expected to have stable orders.
Regarding export orders, 30.6% of enterprises confirmed more export orders in the fourth quarter of this year than the previous quarter; 18.3% of enterprises experienced fewer export orders and 51.1% of enterprises kept export orders stable. The trend of the first quarter of 2017 compared to the fourth quarter of 2016, there were 34.8% of enterprises expected to have an increase in export orders; 16.8% of enterprises expected to decrease and 48.4% of enterprises expected to be stable.
Regarding cost of production, 23.1% of enterprises confirmed cost of production per unit of product in the fourth quarter of this year increased compared to the previous quarter; 9% of enterprises recorded a decrease in the cost and 67.9% of enterprises predicted the cost was stable. For the trend in the first quarter of 2017, there were 19.8% of enterprises expected an increase in costs of production compared to the fourth quarter of 2016; 10% of enterprises believed a decrease in cost of production and 70.2% of enterprises expected cost of production stable.
Regarding selling price, 15.7% of enterprises predicted an increase in selling price of production in the fourth quarter of this year compared to the previous quarter; 10% of enterprises recorded the selling prices was low and 74.3% of enterprises had stable selling prices. Expected selling price of production in the first quarter of 2017 compared to the fourth quarter of 2016, 16.3% of enterprises predicted higher selling price; 7.9% of enterprises forecasted lower selling prices and 75.8% of enterprises forecasted selling prices stable.
Regarding product inventory, 18.7% of enterprises with inventory in the fourth quarter of this year increased compared to the previous quarter; 34.2% of enterprises had a decrease in inventory and 47.1% of enterprises remain stable. The trend of the first quarter of 2017 compared to the fourth quarter of 2016, there were 15.6% of enterprises predicted an increase in inventory; 33% of enterprises believed a decrease in inventory and 51.4% of enterprises forecasted to remain stable.
Regarding input inventory, 17.9% of enterprises said that input inventory increased in the fourth quarter of 2016 compared to the previous quarter; 31.9% of enterprises said that it was reduced and 50.2% of enterprises said that they remained unchanged. Expected in the first quarter of 2017 compared to the fourth quarter of 2016, there were 14.4% of enterprises predicting an increase in input inventory of raw materials; 31.2% of enterprises forecast a decrease in inventories and 54.4% of enterprises forecast that there will be no fluctuation in raw material inventories.
Regarding labor use, 16.9% of enterprises affirmed that labor size increased in the fourth quarter of this year compared to the previous quarter; 12.1% of enterprises confirmed to decrease and 71% of enterprises said that they kept stable. The trend of labor use in the first quarter of 2017, 88.8% of enterprises expected an increase or stabilize labor size compared to the fourth quarter of 2016 and 11.2% of enterprises forecasted a decrease in labor size.
- Service operation
Retail sales of consumer goods and services
Gross retail sales of consumer goods and services in December were estimated at 320.3 trillion VND, up 3.7% over the previous month and up 9.8% over the same period last year, of which: retail sales of goods reached 241.9 trillion VND, an increase of 3.8% and of 9.1% respectively; revenue from accommodation and catering services reached 38.9 trillion VND, an increase of 4.2% and of 13.8%; tourism and travelling service revenue reached 3.3 trillion VND, up 3.6% and 26.6%; revenue from other service reached 36.2 trillion VND, an increase of 3% and of 8.6%.
Generally for 2016, gross retail sales of consumer goods and services were estimated at 3,527.4 trillion VND, up 10.2% compared to the previous year (2015: by 9.8%), if excluding price factor, increased by 7.8%, lower than the rate 8.5% in the previous year because the purchasing power did not fluctuate significantly, while consumer prices this year increased higher than in 2015.
In terms of economic activities, retail sales of goods in 2016 were estimated at 2,676.5 trillion VND, accounting for 75.9% of the total and increasing by 10.2% over the previous year, of which: food and foodstuff rose by 13%; household appliances, tools and equipment increased by 11.4%; garment expanded by 10.6%; vehicles increased by 5.7%; cultural and educational items rose 1.7%.
Revenue from accommodation and catering services in 2016 was estimated at 413.4 trillion VND, accounting for 11.7% of the total and increasing by 10.7% compared to 2015, of which the revenue in the last 6 months of the year saw a sharp increase (the third quarter increased by 11.8% compared to the same period last year, the fourth quarter increased by 16.7%, thanks to the improved policies to attract tourists, the number of foreign visitors to our country in the last months of the year increased significantly. Some provinces had a good increase in revenue: Binh Duong by 17.7%; Binh Thuan by 17.1%; Hai Phong by 16%; Hanoi by 13.7%; Ho Chi Minh City by 8.4%. Tourism and travelling service revenue was estimated at 34.1 trillion VND, accounting for 1% of the total and increasing by 12% over the previous year, of which revenue of Ba Ria – Vung Tau increased by 13.8%; Quang Ninh grew by 13.6%; Kien Giang increased by 13.1%; Ho Chi Minh City expanded by 11.6%; Hanoi rose by 11.1%.
Revenue from other services this year was estimated at 403.4 trillion VND, accounting for 11.4% of the total and increasing by 9.3% compared to 2015. Some provinces had revenue increased: Quang Ninh by 15.7%; Bac Ninh increased by 13.6%; Hung Yen increased by 8%; Ha Giang increased by 7.3%; Hai Phong increased by 2.5%. However, some provinces witnessed a reduction in revenue compared to the previous year: Lao Cai decreased by 1.5%; Hoa Binh declined by 7.1%; Ha Tinh fell by 15.1%.
Transport and telecommunication
Passenger transport in December was estimated at 307.5 million passengers, an increase of 9.2% over the same period last year and 14.6 billion passengers-kilometers, an increase of 9%. For the whole year 2016, passenger transport reached 3,620.5 million passengers, an increase of 9.6% over the previous year and 171.3 billion passengers-kilometers, an increase of 11%, of which passengers carried by roadway reached 3,397.6 million visitors, up 9.6% and 114 billion passengers.km, up 8.6%; by seaway reached 6 million passengers, an increase of 4.3% and 302.5 million passengers.km, an increase of 0.9%. Airway increased sharply, reaching 40.5 million passengers, increasing by 30.3% and 50.7 billion passengers-kilometers, increasing by 20.4% because domestic airlines boosted domestic market exploitation and also opened some international routes. Railway transport reached 9.7 million passengers, decreased by 12.6% and 3.4 billion passengers.kilometers, decreased by 17.9% compared to 2015 due to long travelling time and uncompetitive fare against budget airlines and roadway.
In December, frieght carriage was estimated at 114.9 million tons, up 9.5% over the same period last year and 21 billion tons.km, up 4.9%. For the whole year 2016, freight transport reached 1,275.4 million tons, up 10.6% over the previous year and 240.7 billion tons.km, up 4.3%, of which domestic transport reached 1,242, 6 million tons, up 10.8% and 111.8 billion tons.km, up 8.8%; overseas transport gained 32.8 million tons, up 2.6% and 128.9 billion tons.km, up 0.7%. By kinds of transport, roadways reached 991.4 million tons, up 12.1% and 60 billion tons.km, up 12.9% over the previous year; inland waterway reached 217.9 million tons, up 6.5% and 45.3 billion tons.km, up 7.1%; seaway 60.6 million tons, up 5.5% and 131.5 billion tons.km, up 0.6%; railways reached 5.2 million tons, down 22% and 3.2 billion tons.km, down 19.4%.
In 2016, telecommunication revenue was estimated at 381.7 trillion VND, up 6.6% compared to 2015.
Foreign visitors to Viet Nam
Foreign visitors to Vietnam in December were estimated at 897.3 thousand, decreasing by 4.2% over the previous month[11] and rising by 17.9% over the same period last year, of which visitors from Asia decreased by 1.6% and up 20.8%; from Europe declined by 17.3% and expanded by 15.2%; from America reduced by 2% and grew by 8.1%; from Africa increased by 41.3% and by 32.5%; from Oceania increased by 8.3% and decreased by 4.1%.
Generally for 2016, foreign visitors to Vietnam were estimated at 10.01 million, increasing by 26% compared to the previous year (increasing by more than 2 million passengers), of which arrivals by airways reached 8.26 million persons, up 31.7%; by roadway reached 1.47 million, down 2.3%; by seaway reached 284.8 thousand, an increase of 67.7%.
In 2016, policies and efforts were implemented to attract tourists such as visa exemption for citizens from 5 Western European countries[12], strengthening the promotion, advocacy of tourism, application of e- marketing network technology, deploying programs to promote tourism on television, mass media, that resulted in the first time Vietnam receiving over 10 million foreign visitors, twice as many as the number of foreign visitors to our country in 2010.
This year, visitors to Vietnam from Asia reached 7,263.4 thousand, accounting for 72.5% and up 30.6% over the previous year, of which visitors from most major markets increased: from China reached 2,696.8 thousand, an increase of 51.4%; South Korea 1,543.9 thousand, an increase of 38.7%; Japan 740.6 thousand, an increase of 10.3%; Taiwan 507.3 thousand, an increase of 15.6%; Malaysia 407.6 thousand, an increase of 17.6%; Thailand 267 thousand, up 24.4%; Singapore 257 thousand, up 8.7%
In 2016, visitors from Europe reached 1,617.4 thousand, an increase of 18.2% compared to the previous year, of which: 434 thousand visitors from Russia Federation, an increase of 28.1%; United Kingdom 254.8 thousand people, up 19.8%; France 240.8 thousand, up 13.8%; Germany 176 thousand, up 18.1%; Netherlands 64.7 thousand, up 22.2%; Spain 58 thousand, an increase of 29%; Italy 51.3 thousand, an increase of 27.2%.
Visitors from the Americas achieved 735.1 thousand; an increase of 13.5% compared to 2015, of which visitors from the United States reached 552.7 thousand, an increase of 12.5%. Visitors from Oceania reached 368.3 thousand, an increase of 7.9%, of which visitors from Australia reached 320.7 thousand, increasing by 5.6%. Visitors from Africa reached 28.5 thousand, increasing by 5.2% compared to 2015.
II. MACROECONOMICS STABILIZATION AND INFLATION CONTROL
- Banking and insurance activities
As of 20th December, 2016, the total payment facilities increased by 16.47% compared to the end of 2015 (same period last year was a rise of 13.55%). Although the growth was higher than the same period, the total payment facilities did not put pressure on inflation so that the inflation remained stable. At the same time, capital mobilization of credit institutions increased by 16.88% (same period in 2015 was an expansion of 13.59%), helping credit institutions to stabilize liquidity and being ready to meet demands of credit capital for the economy and ensuring credit /mobilization ratio at a safe level; Credit growth of the economy reached 16.46%, showing that the capital absorption capacity of enterprises to absorb capital was quite good and interest income of banks was improved positively.
Mobilized interest rates were relatively stable. The mobilized interest rate 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 of VND for priority business sectors was at 6% -7% per year for short term, at 9% -10% per year for medium and long term. The lending interest rate for normal business sectors was at 6.8% -9% per year for short-term; at 9.3% -11% per year for medium and long term. In general, credit structure continue to focus on priority sectors such as agriculture, export, supporting industries, small and medium enterprises in order to effectively support for economic growth.
The insurance market in 2016 maintained a positive growth. Insurance revenue was estimated to increase by 22.1% over the previous year, of which revenue of life insurance premium rose 30.5%; non-life insurance premiums increased by 12.5%. The real compensation rate for original insurance in non-life insurance was estimated at 32.98% (same period in 2015 was 41.47%).
- Construction, investment
Construction
Construction activities in 2016 were quite good thanks to stable construction material prices, low interest rates and the improvement of the real estate market. In addition, Government and Ministries, line-ministries took measures to remove difficulties and obstacles, accelerate process of capital disbursements for works and projects. The value of construction production in 2016 at current prices was estimated at 1,089.3 trillion VND, including: the State sector gained 83.3 trillion VND, accounting for 7.7%; non-state sector achieved 952.4 trillion VND, making up 87.4%; FDI sector witnessed 53.6 trillion VND, comprising 4.9%. In the total production value, the value of production and construction of housing projects reached 428.6 trillion VND, sharing 39.3%; non-residential buildings gained 188.1 trillion VND, comprising for 17.3%; civil engineering works recorded 344.3 trillion VND, accounting for 31.6%; specialized construction activities reached 128.3 trillion VND, representing 11.8%.
The construction production in 2016 at constant 2010 price was estimated to increase by 10.1% compared to 2015, of which: the State sector rose 1.7%; non-state sector increased by 12.5%; FDI sector decreased by 10.9% due to some large projects was finished process of construction or completed to run such as works in Formosa Ha Tinh Industrial Zone, Samsung Vina Thai Nguyen Electronics Company. In the total production value, the value of production and construction of housing projects increased by 13.6%; non-residential buildings dropped by 2.5%; civil engineering works increased by 13.1%; specialized construction activities expanded 11.8%.
Development investment
The realized investment in 2016 at current prices was estimated at 1,485.1 trillion VND, a rise of 8.7% compared to 2015 and an equivalent to 33% of GDP, including: State sector capital reached 557.5 trillion VND, accounting for 37.6% of total capital and going up 7.2%; non-state sector capital gained 579.7 trillion VND, making up 39% and increasing by 9.7%; foreign direct investment capital witnessed 347.9 trillion VND, representing for 23.4% and rising 9.4%.
The growth rate of the realized investment
Years 2014, 2015 and 2016 in comparison with same periods of the previous year
(At current prices)
%
| 2014 | 2015 | 2016 | |
| Total | 111.5 | 111.9 | 108.7 |
| State sector | 110.2 | 106.8 | 107.2 |
| Non-State sector | 113.6 | 112.8 | 109.7 |
| FDI sector | 110.5 | 119.9 | 109.4 |
The realized investment of the state budget in the last months of the year was quite good. Ministries, line-ministries and localities continued to focus on speeding up disbursement progress of projects in the spirit of the Government’s Resolution No. 60 / NQ-CP dated July 8, 2016 on the tasks and main solutions to speed up the implementation and disbursement of the 2016 public investment plan; Official Telegraph No. 2144 / CD-TTg dated November 29, 2016 of the Prime Minister on accelerating the disbursement progress of 2016 public investment plans and implementing the National Assembly’s resolutions on public investment plans, period 2016-2020 and 2017 plan.
The realized investment of the State budget in 2016 was estimated at 268.6 trillion VND, equaling 97.8% of the yearly plan and increasing by 15.1% compared to 2015, including:
– The capital under central management achieved 62.6 trillion VND, equaling 95.3% of the yearly plan and up 14.9% over the previous year, of which the implementation capital of ministry of Transportation was 21.2 trillion VND, equaling 101.3% and rising 21.5%; Ministry of Agriculture and Rural Development 7.069 billion VND, equaling 100.2% and increasing by 14.4%; Ministry of Education and Training 2,725 billion VND, equaling 84.6% and expanding 36.1%; Ministry of Health 2,694 billion VND, equaling 86.7% and jumping up 17.1%; Ministry of Construction 903 billion VND, equaling 97.3% and reducing 47.7%; Ministry of Natural Resources and Environment 713 billion VND, equaling 79.6% and climbing up 4.4%; Ministry of Culture, Sports and Tourism 564 billion VND, equaling 83.2% and dropping 4%; Ministry of Industry and Trade 463 billion VND, equaling 99.6% and increasing by 8.6%; Ministry of Science and Technology 295 billion VND, equaling 102% and going down 10.8%; Ministry of Information and Communications 122 billion VND, equaling 90.3% and reducing 30.6%.
– The capital under local management reached 206 trillion VND, equaling 98.6% of the yearly plan and increasing by 15.2% compared to 2015. Of which, the state budget capital at provincial level gained 146 trillion VND, equaling 94, 7% and going up 18.8%; the state budget capital at district level achieved 49.5 trillion VND, equaling 106.6% and increasing by 8.6%; the state budget capital at commune level recorded 10.5 trillion VND, equaling 126% and rising 0.7%. Some provinces had large implemented capital were as follows: Ha Noi reached 31.6 trillion VND, equaling 103.8% of the yearly plan and going up 45.5% over the previous year; Ho Chi Minh city 21.2 trillion VND, equaling 84.1% and increasing by 9.4%; Quang Ninh 7.7 trillion VND, equaling 120% and jumping up 25.1%; Binh Duong 6.6 trillion VND, equaling 102.4% and expanding 32.7%; Nghe An 5.6 trillion VND, equaling 96.6% and rising 15.2%; Vinh Phuc 5.4 trillion VND, equaling 101.5% and climbing up 6.8%; Ba Ria – Vung Tau 5 trillion VND, equaling 82.1% and spreading 8.9%.
Foreign direct investment from the beginning of the year to 26th December, 2016 attracted 2,556 newly licensed projects with a registered capital of 15,182 million USD, an increase of 27% in number of projects and a decrease of 2.5 % of registered capital compared to the same period of 2015. In addition, 1,225 projects which were licensed in the previous years registered to adjust investment capital with an increase of 5,765.1 million USD, a rise of 50.5% in number of projects and a fall of 19.7% of additional capital.
In 2016, 2,547 enterprises and economic organizations with foreign investors contributed capital to get shares purchase (with a capital ratio was higher than 50% of the charter capital or in the conditional investment sector) with a total investment capital of 3,425.3 million USD. Thus, the total registered capital of newly projects, additional capital and investment in the form of capital contribution and share purchase in 2016 reached 24,372.7 million USD, up 7.1% over the previous year. Realized FDI capital in 2016 was estimated at 15.8 billion USD, an increase of 9% compared to 2015, reaching the highest level of FDI disbursement up to now.
In the year, the manufacturing activities attracted the largest foreign direct investment with the registered capital of newly licensed projects of 9,812.6 million USD, accounting for 64.6% of the total newly registered capital; real estate activities gained 1,522.7 million USD, making up 10.1%; the wholesale and retail trade, repair of motor vehicles and motorcycles reached 367 million USD, accounting for 2.4%; the other sectors gained 3,480 million USD, making up 22.9%. If including additional registered capital of projects licensed in the previous years and capital contribution and share purchase, the total foreign direct investment in the manufacturing activities reached 15,538.6 million USD, accounting for 63.8% of the total registered capital; the wholesale and retail trade, repair of motor vehicles and motorcycles achieved 1,899.2 million USD, comprising for 7.8%; the real estate activities recorded 1,686.2 million USD, making up 6.9%; the other sectors witnessed 5,248.7 million USD, representing 21.5%.
In the whole country, 51 provinces and cities directly under the Central Government had newly licensed foreign direct investment projects in 2016, of which Hai Phong had the largest registered capital with 2,464.3 million USD, accounting for 16, 2% of total newly registered capital; followed by Ha Noi with 1,922.8 million USD, making up 12.7%; Binh Duong 1.630.5 million USD, representing 10.7%; Dong Nai 1,043.7 million USD, sharing 6.9%; Ho Chi Minh city 1,006.7 million USD, comprising 6.6%; Bac Giang 937.5 million USD, accounting for 6.2%; Ha Nam 604.3 million USD, accounting for 4%.
Among 68 countries and territories with newly licensed investment projects in Viet Nam this year, Korea ranked the top with 5.518.6 million USD, accounting for 36.3% of the total newly registered capital; followed by Singapore with 1,590.5 million USD, making up 10.5%; China 1,263.2 million USD, representing 8.3%; Hong Kong Special Administrative Region (China) with 1,102.7 million USD, sharing 7.3%; Japan 868.1 million USD, comprising 5.7%; Taiwan 826 million, accounting for 5.4%.
The official development assistance (ODA) and preferential loans signed in 2016 were estimated at 5.38 billion USD, an increase of 39.7% compared to 2015. The disbursement value of ODA and preferential loans from the beginning of the year to 21st December, 2016 reached about 3.5 billion USD. Estimated for 2016, the disbursements of ODA and concessional loans reached 3.7 billion USD, equaling 80.4% of the disbursement rate in 2015.
- Stage budget revenue and expenditure
The state budget revenue from the beginning of the year to 15th December, 2016 was estimated at 943.3 trillion VND, equaling 93% of the yearly estimate, of which domestic revenue achieved 744.9 trillion VND, equaling 94.9%; revenue from crude oil reached 37.7 trillion VND, equaling 69.2%; budget balance revenue from import and export gained 156.2 trillion VND, equaling 90.8%.
In domestic revenue, land use fee reached 77.9 trillion VND, equaling 155.8% of the yearly estimate; taxes on trade and non-state industrial services was 144.7 trillion VND, equaling 100.8%; environmental protection tax recorded 38.7 trillion VND, equaling 100.7%; personal income tax gained 61.7 trillion VND, equaling 97%; tax on FDI enterprises (excluding crude oil) witnessed 147.7 trillion VND, equaling 92.9%. Particularly, tax on state-owned enterprises reached 193.7 trillion VND, equaling 75.6% of the yearly estimate. The Ministry of Finance actively directed tax and customs agencies to drastically recover tax arrears and amounts receivable through inspection and auditing work; urging timely collection into the State budget from the sale of capital and equitization of State enterprises.
The state budget expenditure from the beginning of the year to 15th December, 2016 was estimated at 1,135.5 trillion VDN, equaling 89.2% of the yearly estimate, of which expenditure for development investment was 190.5 trillion VND, equaling 74.7%; expenditure on socio-economic development, national defense, security and administrative management reached 786 trillion VND, equaling 95.4%; principal payment and aids achieved 150.3 trillion VND, equaling 96.9%.
- Export and import of goods and services
Export of goods
Export turnover in November reached 16,132 million USD, 532 million USD higher than the estimated figure, of which phones and their parts were 274 million USD higher; machinery, instrument and accessory 103 million USD higher; footwear was 67 million USD higher; textiles and garments were 47 million USD higher; crude oil was 30 million USD higher; electronic good, computer and their parts were 66 million USD lower; rice was 36 million USD lower than estimated.
Export turnover in December 2016 was estimated at 16.00 billion USD, dropped 0.8% from the previous month, of which the domestic economic sector gained 4.68 billion USD, grew by 8.5%; FDI sector (including crude oil) reached 11.32 billion USD, and dropped 4.2%. Export turnover decreased compared to the previous month mainly because a number of products that accounted for a large proportion decreased significantly: phones and their parts decreased by 11.4%; electronic goods, computer and their parts decreased by 4.5%. However, export turnover of some products increased: Coffee increased by 41.5%; wood and wooden products rose by 10.3%; textiles and garments went up by 5.4%; footwear increased by 2.7%. Compared to December 2015, export turnover increased by 16.9%, of which the domestic economic sector increased by 6.1%; FDI sector (including crude oil) increased by 22.1%. Export turnover of some products increased over the same period: phones and their parts increased by 67.9%; electronic goods, computer and their parts increased by 37.8%; machinery, instrument and accessory increased by 38.7%.
For the whole year 2016, export turnover was estimated at 175.9 billion USD, grew by 8.6% over the previous year (2015 increased by 7.9%), of which the domestic economic sector reached 50.0 billion USD, grew by 4.8%, FDI sector (including crude oil) reached 125.9 billion USD, grew by 10.2% (If excluding crude oil, export turnover reached 123.5 billion USD, grew by 11.8%). Export turnover of this year increased slightly due to an average decrease of 1.8% in export price of goods, of which fuel dropped 20.1%; groups of agricultural products and foodstuffs decreased by 3.8%. If excluding price factor, export turnover in 2016 reached 179.2 billion USD, grew by 10.6% compared to 2015. Export turnover of some processed and assembled goods (a large proportion belonged to FDI enterprises) increased over the previous year: phones and their parts reached 34.5 billion USD, grew by 14.4%; textile reached 23.6 billion USD, grew by 3.3%; electronic good, computer and their parts reached 18.5 billion USD, grew by 18.4%; footwear reached 12.9 billion USD, grew by 7.6%; machinery, equipment and spare parts reached 10.5 billion USD, grew by 28.4%. Export of some agricultural products and raw materials decreased compared to the previous year: Crude oil reached 2.3 billion USD, dropped 36.7% (volume decreased by 24.2%); rice reached 2.2 billion USD, dropped 21.7% (volume decreased by 25.7%); cassava and cassava products reached 996 million USD, dropped 24.3% (a reduction of 10.9% in volume).
The structure of export turnover this year changed insignificantly compared to the previous year, of which heavy and industrial products reached 79.8 billion USD, grew by 8.9% and accounted for 45.4% of the total export turnover (grew by 0.1 percentage points compared to 2015); the group of light industrial and handicraft products reached 71 billion USD, grew by 9% and accounted for 40.4% (grew by 0.2 percentage points); agricultural and forestry products reached 18.1 billion USD, increased by 6.5% and accounted for 10.3% (dropped 0.2 percentage points); fishery products were estimated at 7 billion USD, grew by 6.8% and accounted for 4% (dropped 0.1 percentage points).
Regarding the exported goods market in 2016, the United States was still the leading market with 38.1 billion USD, grew by 14% compared to 2015. The following was the EU market with 34 billion USD, grew by 10%; China reached 21.8 billion USD, grew by 26.3%; Japan reached 14.6 billion USD, grew by 3.4%; South Korea reached 11.5 billion USD, grew by 29%; export to ASEAN market reached 17.4 billion USD, dropped 4.8%.
Import of goods
Import turnover in November 2016 reached 16,375 million USD, 375 million USD higher than the estimated figure, of which machinery, instrument and accessory were 237 million USD higher; petroleum was 75 million USD higher; fabric was 63 million USD higher; chemicals were 51 million higher; electronic good, computer and their parts were 69 million USD lower; iron and steel were 58 million lower than estimated.
Import turnover in December 2016 was estimated at 16.30 billion USD, dropped by 0.5% over the previous month, of which the domestic economic sector was 6.85 billion USD, dropped by 0.6%; FDI sector reached 9.45 billion USD, dropped 0.3%. Turnover of some imported goods for production decreased: means of transport and spare parts decreased by 69.1%; petroleum decreased by 13.3%; cotton decreased by 9.3%; fabric decreased by 6.2%. Compared to the same period last year, import turnover in December 2016 increased by 14.4%, of which the domestic economic sector increased by 3.8%; FDI sector increased by 23.7%. Import turnover of goods for processing and assembly increased sharply: phones and their parts increased by 54.5%; textile and garment materials and footwear rose by 20%; plastics increased by 18.1%; machinery, instrument and accessory increased by 13.2%.
In 2016, import turnover was estimated at 173.3 billion USD, rose by 4.6% over the previous year, of which the domestic economic sector reached 71.1 billion USD, rose by 4%; FDI sector reached 102.2 billion USD, rose by 5.1%. If excluding the price factor, import turnover in 2016 reached 183 billion USD, rose by 10.5% compared to 2015. Import turnover of some goods to meet domestic production demand increased compared to the previous year: machinery, instrument and accessory reached 28.1 billion USD, rose by 1.8%; electronic good, computer and their parts reached 27.8 billion USD, rose by 20.1%; fabric reached 10.5 billion USD, rose by 3.4%; iron and steel reached 8 billion USD, rose by 7.3%; plastics reached 6.3 billion USD, rose by 5.5%; auxiliary materials for textile, garment and footwear reached 5.1 billion USD, rose by 1.9%; metals reached 4.8 billion USD, rose by 13.4%; plastic products reached 4.4 billion USD, rose by 17.1%; chemical products reached 3.8 billion USD, rose by 11%; chemicals reached 3.2 billion, rose by 1%. Some products had lower import turnover than 2015: phones and their parts reached 10.6 billion USD, dropped 0.3%; petroleum reached 4.7 billion USD, dropped 11.7% (an increase of 14.2% in volume); automobiles reached 5.9 billion USD, dropped 2.3%; of which completely built-up cars reached 2.3 billion USD, dropped 22.1%; wood and wooden products reached 1.8 billion USD, dropped 15.7%; other means of transport and spare parts reached 1.4 billion USD, dropped 36.2%; fertilizer reached 1.1 billion USD, dropped 22%.
Regarding imported goods structure in 2016, the group of capital goods was 157.9 billion USD, rose by 4.4% compared to 2015 and accounted for 91.1% of total import turnover (dropped 0.2 percentage points compared to 2015), of which machinery, instrument and accessory reached 71.8 billion USD, rose by 5.6% and accounted for 41.4% (rose by 0.3 percentage points); material and fuel goods group reached 86.1 billion USD, rose by 3.5% and accounted for 49.7% (dropped 0.5 percentage points). Consumer goods reached 15.4 billion USD, rose by 6.8% and accounted for 8.9% (rose by 0.2 percentage points).
Regarding the imported goods market in 2016, China was still the largest import market of our country with a turnover of 49.8 billion USD, an increase of 0.5% compared to 2015; South Korea reached 31.7 billion USD, rose by 14.6%; ASEAN reached 23.7 billion USD, dropped 0.3%; Japan reached nearly 15 billion USD, rose by 4.3%; EU reached 11.1 billion USD, rose by 6.7%; the United States reached 8.7 billion USD, rose by 11.6%.
The trade balance of goods in November saw a trade deficit of 243 million USD[13]. The trade deficit in December was estimated at 300 million USD, the trade surplus in 2016 was 2.68 billion USD, of which the domestic economic sector saw a trade deficit of 21.02 billion USD; FDI sector saw a trade surplus of 23.70 billion USD. China continued to be the market that Vietnam had the largest trade deficit with 28 billion USD in 2016, dropped by 14.9% compared to 2015. Trade deficit from Korea was 20.2 billion USD, rose by 8%; trade deficit from ASEAN was 6.3 billion USD, rose by 12.5%. The two markets still maintained trade surplus were: the trade surplus of the United States reached 29.4 billion USD, rose by 14.8% compared to 2015; EU was 22.9 billion USD, rose by 12.3%.
In general, the incident of Galaxy Note 7 did not affect the export turnover of Vietnam in general as well as the group of phones and their parts in particular because Samsung launched other product lines to compensate. In the last 3 months of 2016, export turnover of phones and their parts still increased over the same period (October reached 2.8 billion USD, rose by 6.4%; November reached 3.3 billion USD, rose by 17.7%, December reached 2.9 billion USD, rose by 67.9%). For the whole year, the export turnover of phones and their parts reached 34.5 billion USD, rose by 14.4% compared to 2015 (in 2015 reached 30.2 billion USD, rose by 28% compared to the previous year). Although the Galaxy Note 7 incident did not affect the export turnover of Vietnam much, it was forecasted that the growth rate of this group will slow dropped in the coming years.
Regarding the impact of Brexit event on Vietnam’s export activities: In the EU, the United Kindom (UK) was the third trade partner of Vietnam after Germany and the Netherlands with the share of about 13% -15% of total export turnover with the EU. In terms of imports, the UK ranked fourth after Germany, France and Italy, accounted for about 7% of Vietnam’s imports from the EU. The UK market only accounted for nearly 3% of Vietnam’s total export turnover and 0.4% of total import turnover. The UK was a market that always achieved trade surplus: 2014 was 3 billion USD, 3.9 billion USD in 2015 and 4.1 billion USD in 2016, which showing a potential market for goods of Vietnam. Under the Treaty, the UK needed two years to conduct formal procedures for leaving the EU. Thus, in 2016, Brexit event had almost no direct impact on the flow of goods traded between the two countries.
Export and import of goods and services
The service export turnover in 2016 was estimated at 12.3 billion USD, increased by 8.9% compared to 2015, of which tourism services reached 8.3 billion USD, accounted for 67.3% and rose by 12.2. %; transportation services gained 2.4 billion USD, shared 20% and rose by 0.7%. Import turnover of services in 2016 was estimated at 17.7 billion USD, rose by 7% over the previous year, of which transport services reached 8.9 billion USD, accounted for 50.6% and rose by 3.8%; tourism services attained 4.5 billion USD, accounted for 25.4% and rose by 27.9%. Service trade deficit in 2016 was 5.4 billion USD, equaled 44.1% of service export turnover.
In 2016, the proportion of exports of goods and services to GDP was 91.6%; import of goods and services compared to GDP was 88.4%; In general, the ratio of export and import of goods and services to GDP was 180.0%. This shows that the current openness of the Vietnamese economy was quite high.
- Price indexes
Consumer price index
Consumer price index (CPI) in December 2016 increased by 0.23% over the previous month, of which medicine and medical services rose the highest with 5.30% (health care service rose by 6.93%) Because there were 4 provinces and cities in the month[14] adjusting the price of health care service stage 2 according to the Joint Circular No. 37/2015/TTLT-BYT-BTC dated October 29th, 2015 of the Ministry of Health and the Ministry of Finance (making the overall CPI increase about 0.27%). Garment, hats and footwear group increased by 0.25% due to an increase in winter shopping demand; beverages and cigarettes rose by 0.21%; housing and construction materials increased by 0.19% due to the impact of gas price increase from last month and the increased need to repair houses in the last months of the year; household appliances rose by 0.08%. The remaining groups of goods and services had declined price indexes: transport decreased by 0.89%; food and catering services dropped by 0.03%, of which food increased by 0.22%[15], food decreased by 0.12%; postal services and telecommunication fell by 0.03%; culture, entertainment and tourism decreased by 0.02%. Particularly, education group was unchanged compared to the previous month.
CPI in December 2016 increased by 4.74% compared to December 2015, the average monthly increase was 0.4%. Average CPI in 2016 increased by 2.66% compared to the average of 2015. The rise of CPI in December 2016 compared to the same period in 2015 and the rise of average CPI in 2016 compared to the average in 2015 increased highly over 2015, but they were much lower than the average CPI increase of some recent years[16], at the same time, it was still within the 5% target set by the National Assembly. The consumer price index in December 2016 compared to the same period in 2015 increased mainly due to the following reasons:
– The price of health care services increased according to the Joint Circular No. 37/2015/TTLT-BYT-BTC dated October 29th, 2015 of the Ministry of Health and the Ministry of Finance, was effective from March 1st, 2016. Prices of medical services increased by 77.57%, making CPI increase by 2.7%.
– In the whole country, 53 provinces and cities directly under the Central Government adjusted the tuition fees according to the roadmap of Decree No. 86/2015/ND-CP dated October 2nd, 2015 of the Government, as a result, the price index of education groups in December 2016 increased by 12.5% compared to the same period last year (making the overall CPI increased by 0.58%).
– During the year there were many long holidays, so that demand for shopping, entertainment, recreation increased, prices of food and foodstuffs increased. In addition, natural disasters and unfavorable weather, cold weather in the wide area in the North; severe floods in Central Vietnam; drought in the Central Highlands and saline intrusion in the Mekong Delta also made the price index of food in December 2016 increase by 2.57% compared to the same period in 2015.
Besides, in 2016, there were some factors contributing to curbing CPI: (1) Although the demand for goods on the occasion of the Lunar New Year increased, because the fall in petroleum prices and freight transport, supply of goods were abundant, prices did not fluctuate greatly; (2) Fuel prices in the world market fell sharply, leading to a decrease in domestic petroleum prices, which made the price index of transport group decrease; (3) Authorities at all levels and sectors strengthened the inspection and control of the market, and implemented policies to stabilize prices of some essential commodities, market prices during the Lunar New Year.
Core inflation in December 2016 increased by 0.11% over the previous month and by 1.87% compared to the same period last year. The average core inflation in 2016 increased by 1.83% compared to the average of 2015.
Gold price index and US dollar price index
Domestic gold prices fluctuated in line with world gold prices. Gold price index in December 2016 decreased by 2.52% compared to the previous month; an increase of 10.98% over the same period in 2015; the average in 2016 increased by 5.95% compared to 2015. The US dollar price index in December 2016 increased by 1.52% over the previous month and by 0.8% over the same period in 2015; Average in 2016 increased by 2.23% compared to 2015.
Producer price index
The producer price index of agricultural, forestry and fishery products in 2016 increased by 1.71% compared to the previous year, in which the producer price index for agricultural products increased by 2.02%; for forestry products increased by 2.91% and fishery products by 0.45%. The producer price index for agricultural, forestry and fishery products in the fourth quarter increased by 1.02% compared to the previous period and expanded by 4.54% over the same period last year.
The producer price index of industrial products in 2016 decreased by 0.49% compared to the previous year, of which the producer price index for mineral products decreased by 5.49%; manufacturing products fell by 0.03%; electricity, gas, hot water, steam and air conditioning increased by 1.1%; clean water, wastewater, and waste treatment increased by 1.31%. The producer price index for industrial products in the fourth quarter increased by 0.38% compared to the previous period and increased by 0.87% compared to the same period last year.
The input price index in 2016 decreased by 0.78% compared to the previous year, of which the input price index for agricultural and forestry and fishery increased by 0.59%; for manufacturing reduced by 0.73%; for construction decreased by 1.37%. The input price index in the fourth quarter decreased by 0.33% compared to the previous period and fell by 0.1% compared to the same period last year.
The transportation and storage service price index in 2016 decreased by 1.77% compared to 2015, of which passenger transport fare decreased by 0.61%; freight fare fell 4.04%; fares for storage and transport supporting services increased by 3.13%. The transport fare index by kinds of transport in the year was as follows: railway fare decreased by 4.04 %% compared to the previous year; roadway and bus fare fell by 2.35%; waterways decreased by 4.99%; storage and transport supporting services increased by 3.25%. The transport fare index in the fourth quarter increased by 0.16% compared to the previous period and decreased by 0.75% compared to the same period last year.
The producer price index for services in 2016 increased by 2.38% compared to the previous year, of which the producer price index for accommodation and catering services increased by 3.12%; information and communication by 0.22%; education and training increased by 5.54%; health and social work increased by 25.37%; professional activities, science and technology increased by 0.5%; administrative and supporting activities increased by 2.02%. The producer price index for services in the fourth quarter expanded by 1.07% compared to that in the previous period and increased by 3.25% over the same period last year.
Merchandise export and import price index
Merchandise export price index in 2016 decreased by 1.83% compared to the previous year, of which the export price index of agricultural and food products decreased by 3.79%; fuel group fell by 20.12%; other processed and manufactured goods increased by 0.72%. Export price index of some items fell sharply compared to the previous year: petrol decreased by 23.12%; iron and steel reduced by 22.76%; crude oil fell by 21.52%; coffee decreased by 11.62%; chemicals declined by 10.79%; pepper decreased by 10.1%. Merchandise export price index in the fourth quarter increased by 1.92% compared to the previous period and rose by 2.20% compared to the same period last year.
Merchandise import price index in 2016 decreased by 5.35% compared to 2015, of which the import price index of agricultural and food products decreased by 4.36%; fuel group fell by 19.4%; other processed and manufactured goods fell 4.19%. The import price index of some commodities dropped sharply compared to the previous year: petrol and oil fell by 20.43%; iron and steel decreased by 18.11%; chemicals declined by 9.39%; liquefied gas decreased by 8.71%. Merchandise import price index in the fourth quarter increased by 0.33% compared to the previous period and decreased by 1.17% compared to the same period last year.
Merchandise term of trade[17] increased by 3.72% compared to the previous year, of which the merchandise term of trade of fishery products decreased by 1.59%; chemicals reduced by 1.54%; petrol and oil of all kinds fell by 3.38%; wood and wood products rose by 5.89%. The merchandise term of trade in the fourth quarter increased by 1.59% compared to the previous period and grew by 3.4% compared to the same period last year.
III. SOME SOCIAL ISSUES
- Population, labor and employment
The average population in 2016 of the whole country was estimated at 92.70 million persons, an increase of 987.8 thousand persons, equivalent to an increase of 1.08% compared to 2015, of which urban population was 32.06 million persons, accounting for 34 , 6%; rural population was 60.64 million persons, accounting for 65.4%; male population was 45.75 million, accounting for 49.4%; female population was 46.95 million persons, accounting for 50.6%
According to the results of the Population Change and Family Planning Survey in 2016, the total fertility rate this year was estimated at 2.09 children/woman, continuously remained at replacement level fertility. The sex ratio at birth was 112.2 boys/100 girls; crude birth rate was 15.74‰; crude death rate was 6.83‰. The mortality rate of infant children (the number of infant children of deaths/1000 live births) was 14.52‰. The mortality rate of under-5 children (the number of under 5 children of deaths per 1000 live births) was 21.80‰. Low mortality rate clearly shows the effectiveness of the maternal and child health care program in particular and the protection of health and improvement of living standards for people in general over the past time. The average life expectancy of the national population in 2016 was 73.4 years, of which men were 70.8 years and women were 76.1 years.
The labor force aged 15 and over in the whole country in 2016 was estimated at 54.4 million persons, increasing by 455.6 thousand persons compared to 2015, including: male laborers were 28.1 million persons, accounting for 51.6 %; female workers were 26.3 million, accounting for 48.4%. By area, the labor force aged 15 and over in urban areas was 17.5 million, accounting for 32.1%; the figure for rural areas was 36.9 million persons, accounting for 67.9%.
The labor force in the working age of the whole country in 2016 was estimated at 47.7 million, an increase of 275.9 thousand persons compared to the previous year, of which male workers were 25.8 million, accounting for 54.1%; female workers were 21.9 million, accounting for 45.9%. The labor force in the working age in urban areas was 16.0 million persons, accounting for 33.4%; that in rural areas was 31.8 million persons, accounting for 66.6%.
Workers aged 15 and over working in economic sectors in 2016 were estimated at 53.3 million persons, an increase of 451.1 thousand persons compared to 2015. The total number of employees aged 15 and above working in agriculture, forestry and fishery sector in 2016 accounted for 41.9% (44.0% in 2015); industry and construction sector accounted for 24.7% (22.8% in 2015); service sector made up 33.4% (2015 was 33.2%). Workers aged 15 and over working in urban areas accounted for 31.9% (31% in 2015); 68.1% was in rural areas (69% in 2015). The rate of trained workers in 2016 was estimated at 20.6%, higher than the 19.9% of the previous year.
The number of employed persons in the first quarter of this year was estimated at 53.3 million, an increase of 861.8 thousand persons compared to the same period last year; the second quarter was 53.2 million persons, an increase of 708.7 thousand persons; the third quarter was 53.3 million persons, an increase of 104.6 thousand persons; the fourth quarter was 53.4 million persons, going down by 96.2 thousand persons.
The unemployment rate of workers in the working age in 2016 was 2.30% (2.33% in 2015 and 2.10% in 2014), of which urban areas were 3.18% (2015: 3.37%, 3.40% in 2014); 1.86% in rural areas (1.82% in 2015 and 1.49% in 2014). The unemployment rate of youth (aged 15-24 years) in 2016 was 7.34%, of which urban areas were 11.30%; and 5.74% was in rural areas.
The underemployment rate of working age workers in 2016 was 1.64%, lower than the rate of 1.89% in 2015 and 2.40% in 2014, of which urban areas were 0.73 % (0.84% in 2015; 1.20% in 2014); 2.10% in rural areas (2.39% in 2015 and 2.96% in 2014).
Percentage of employment in the informal economy in non-agricultural activities[18] in 2016 was estimated at 55.9% (56.4% in 2015, 56.6% in 2014), of which the urban area was 47.0%; rural area was 64.1%.
- Labor productivity
The labor productivity of the whole economy in 2016 at current prices was estimated at 84.5 million VND/labor (equivalent to about 3,853 USD/labor). At constant prices 2010, the total labor productivity in 2016 was estimated to increase by 5.31% compared to 2015. By economic sector, the average labor productivity in the agricultural, forestry and fishery sector reached the lowest with 32.9 million VND/laborer; industry and construction sector reached 112.0 million VND/laborer; service sector reached 103.5 million VND/laborer.
The labor productivity of Viet Nam had significantly been improved in the direction of increasing steadily over the years[19], it had been growing at low rate compared to other countries in the region. In 2015, Vietnam’s labor productivity at current prices reached 3,660 USD, only equaling 4.4% of Singapore’s; 17.4% of Malaysia’s; 35.2% of Thailand; 48.5% of Philippine’s and 48.8% of Indonesia’s.
- Living standards and social security
In 2016, the whole country witnessed 265.5 thousand households suffering from food shortage, a year on year rise of 16.7%, corresponding to 1,099 thousand persons suffering from food shortage, rose by 16.4%. The food shortage was mainly occurred in the first months of the year, in which in February there were 75.3 thousand households suffering from food shortage, corresponding to 302 thousand persons suffering from food shortage, in May there were 58.4 thousand households suffering from food shortage, corresponding to 242.2 thousand persons suffering from food shortage; from June until the end of the year, food shortage among farmers experienced a gradual downward trend. The main cause of this problem increased over the same period last year due to the impact of natural disasters, droughts and severe saline intrusion in some areas, especially in the Northern midlands and mountain areas, North Central and Central coastal areas, Central Highlands. 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 19.4 thousand tons of food in December 2016 alone supported 988 tons of food. The rate of poverty household in 2016 was estimated at 5.8% -6.0%. According to the multi-dimensional approach to poverty applied for the period 2016-2020[20], in the rate of poverty household was estimated at 10%.
Attention was continued to be paid to the social security. According to the preliminary report, the total funding for social security and poverty reduction in 2016 was 7,303 billion VND, including: 3,786 billion VND of gifts and assistances for policy beneficiaries; 2,470 billion VND to support poor households and 1,047 billion VND for hunger-relief and other social reliefs. Besides, 18.3 million health insurance cards, free health care books/cards were donated to policy beneficiaries in the whole country.
Marine environmental incidents occurred in late April in 4 central provinces as follows Ha Tinh, Quang Binh, Quang Tri and Thua Thien – Hueleft unusually death of seafood, causing great socio-economic damage and seriously affecting the livesof the locals. In order to support people affected by the incident, the Prime Minister issued Decision No.772/QD-TTg dated May 9, 2016 on emergency assistance to citizens in the following provinces Ha Tinh, Quang Binh, Quang Tri and Thua Thien – Hue who affected by unusually death of seafood. The Government drastically directed ministries, line ministries and localities to urgently calculate damage, set up compensation and support norms so that people in 4 provinces could stabilize production and life soon. By the end of October 2016, localities paid the first compensation to the people. At the same time, authorities guided fishermen to use compensation to invest in changing industries, building, transforming boats, buying nets and fishing gear, creating jobs and ensuring long-term income and limit the purchase of unnecessary assets.
- Education and Training
As of late 2016, there were 59 out of 63 provinces and cities directly under the Central Government gained universal preschool education for five-year-old children; all 63 provinces and cities directly under the Central Government achieved at least level of the universal primary education of which 12 localities were recognized as level 2 of the universal primary education.
At the beginning of the school year 2016-2017, there were about 4.9 million preschool children (0.7 million children enrolled nursery schools and and 4.2 million children enrolled kindergartens); 15.7 million general school pupils enrolled, of which 7.7 million primary school pupils, 5.5 million pupils at lower secondary school and 2.5 million pupils at upper secondary school.
Admission of university and college enrollment in the 2016-2017 school year was improve to better meet the opportunity of selecting the professions that match the candidates’ aspirations and ensure the autonomy right of students enrollment of those establishments. This year, there were nearly 300 establishments having autonomy enrollment projects, an increase of 100 establishments compared to the previous school year.
- Epidemic diseases and food poisoning
In December, the whole country witnessed 5.1 thousand cases of hand, foot and mouth disease (1 death); 9.9 thousand cases of hemorrhagic fever (6 death); 141 cases of typhoid; 152 cases of viral encephalitis (10 deaths); 6 cases of meningococcal meningitis and 84 cases of Zika virus infection. In 2018, the whole country witnessed nearly 47.5 thousand cases of hand, foot and mouth disease (1 death); 106.3 thousand cases of hemorrhagic fever (36 deaths); 469 cases of typhoid; 962 cases of viral encephalitis (34 deaths); 59 cases of meningococcal meningitis (5 deaths) and 152 cases of Zika virus infection.
As of 17 December 2016, the total number of alive HIV-infected persons over the country was 231.6 thousand persons and the number of cases turned to AIDS was 87.8 thousand persons. The number of persons died of HIV/AIDS nationwide was 89.5 thousand persons.
In the month, there were 10 food poisoning cases, poisoned 547 persons. In 2016, there were 129 severe food poisoning cases, poisoned 4,139 persons, of which 12 deaths.
- Culture and Sport
Cultural activities in 2016 focused on celebrating major holidays and important events of the country; welcomed the success of the 12th National Party Congress, the XIV term of National Assembly election and People’s Council deputies at all levels for the 2016-2021 term. Cultural activities were organized in many forms, ensuring practicality, efficiency and savings, creating an exciting atmosphere among the people. In 2016, there were many outstanding activities in theater, film and music fields such as the 4th Hanoi International Film Festival; International Festival of 3rd experimental stage; 2nd Asia-Europe Music Festival; the 34th Asia-Pacific Composers Association Conference and Hanoi Book Festival.
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.
In 2016, the Vietnamese tradition of Worshiping Mother Goddesses was recognized as an intangible cultural heritage of humanity by UNESCO. As of now, Viet Nam had 11 intangible intangible cultural heritage of humanity recognized by the UNESCO.
In 2016, the sports sector continued to maintain and promote the campaign named “All people do physical exercise as the Great Uncle Ho did” with the central task of organizing “a day of Olympic jogging for people’s health”. The sport sector also coordinated with ministries, branches and localities to organize the program of Child Safe Swimming for Drowning Prevention in the period 2016-2020 and the 9th Phu Dong Sport Festival in some areas. At the 2016 Rio Paralympic Games, the Vietnamese athletes with disabilities won an excellent gold medal; 1 silver medal and 2 bronze medals, ranked 55 out of 83 won medals delegations among 162 participating countries and territories.
Viet Nam’s high performance sports achieved many outstanding achievements with 1,097 medals in tournaments, of which: 51 medals in the world tournaments (13 gold medals, 15 silver medals and 23 bronze medals); 405 medals in Asian tournaments (146 gold medals, 124 silver medals and 135 bronze medals); 579 ASEAN medals (277 gold medals, 201 silver medals and 151 bronze medals) and 12 medals at other open tournaments. Remarkably, Viet Nam Sport won a gold medal and a silver medal for the first time, ranked 48 out of 206 countries and territories at the Rio 2016 Olympic Games.
- Traffic accidents
In December (from 16 November to 15 December), there were 1,696 traffic accidents occurred nationwide, including 833 traffic accidents from less serious to more and 863 traffic collisions, causing 721 deaths, 216 injuries and 955 slight injuries. Compared to the same period last year, the number of traffic accidents decreased by 4.5% (the number of traffic accidents from less serious to more increased by 1.8% and the number of traffic collisions went down by 9.9%); the number of deaths rose by 3%; the number of injuries decreased by 58.8% and the number of slight injuries decreased by 16.9%.
In 2016, there were 21,589 traffic accidents occurred nationwide, including 10,349 traffic accidents from less serious to more and 11,240 traffic collisions, causing 8,685 deaths, 6,180 injuries and 13,100 slight injuries. Compared to the same period last year, the number of traffic accidents this year decreased by 5.5% (the number of traffic accidents from less serious to more decreased by 1.1% and the number of traffic collisions went down by 9.2%); the number of deaths declined by 0.5%; the number of injuries rose by 3.3% and the number of slight injuries decreased by 13.2%. On average 59 traffic accidents occurred a day in 2016 nationwide, including 28 traffic accidents from less serious to more and 31 traffic collisions, caused 24 deaths, 17 injuries and 36 slight injuries.
- Damages caused by natural disasters [21]
In 2016, widespread bitterly cold, damaging cold in the Northern mountainous region, severe rain and flood in the Central region, drought in the Central Highlands and saline intrusion in the Mekong River Delta seriously affected production and people’s life. According to preliminary reports, natural disasters left 248 deaths and missing; 470 wounded; nearly 4.6 thousand houses collapsed, swept away; 361.7 thousand houses were flooded, hit by landslides and roofs; 258.3 thousand hectares of rice, 113.2 thousand hectares of arable crops and 49.8 thousand hectares of aquaculture damaged; 52.1 thousand cattle, 1,679.5 thousand poultry heads and more than 1 thousand tons of aquatic products of all kinds killed. Some localities suffered much damage: Quang Binh 24 deaths and missing, 188 wounded, nearly 95.2 thousand houses collapsed, hit by landslides, roof ripped-off;; 9.6 thousand hectares of rice, arable crop and 3.4 thousand hectares of aquaculture area damaged; 15.4 thousand cattle and 975.4 thousand poultry heads killed. Thai Binh 24 deaths and missing, nearly 3.4 thousand houses collapsed, hit by landslides, roof ripped-off;; 42 thousand hectares of rice, arable crop and 9.8 thousand hectares of aquaculture area damaged. The total value of damage caused by natural disasters in the year was estimated at nearly 18.3 trillion VND, of which Quang Binh suffered 2.9 trillion VND and Thai Binh suffered 2.6 trillion VND.
According to preliminary reports, particularly two floods last November and mid-December in the Central Region and Central Highlands provinces caused 60 deaths, missing and 24 injuries; nearly 108.5 thousand houses collapsed, landslides and roof ripped-off;; 18 thousand hectares of rice, 21.1 thousand hectares of arable crops and 3.7 thousand hectares of aquaculture area damaged; 10.5 thousand cattle and 174 thousand poultry heads killed. Total loss was estimated at 2.6 trillion VND. Binh Dinh suffered the most severely damage with 34 deaths and 11 injuries; nearly 97.9 thousand houses collapsed, hit by landslides and roof ripped-off; 6.8 thousand hectares of rice and arable crops were damaged; nearly 7 thousand of cattle and 165.7 thousand poultry heads killed. Total value of damage of Binh Dinh was estimated at about 1.2 trillion VND.
- Environment protection, fire and explosion prevention
In December 2016, 898 cases of violating regulations of environment protection were found, of which 719 cases were addressed with total fine of 7.8 billion VND. In 2016, 14,580 cases of environmental violations across the country were found, of which 8,249 cases were addressed with a total fine of over 462 billion VND.
In this month, there were 384 cases of fire and explosion across the country, causing 20 deaths and 20 injuries, with an estimated damage of 261 billion VND. In 2016, there were 3,256 cases of fire and explosion across the country, caused 135 deaths and 278 wounded, with an estimated damage of over 1,474 billion VND.
In general, in spite of facing many difficulties and challenges socio-economic situation in 2016 continued to witness positive changes and gained many important achievements. Macro-economy was stable, inflation was curbed, monetary market and banking activities noted positive changes; interest rates, exchange rates were stable. Business environment improved remarkably; the number of newly established and re-operated enterprises increased highly; international visitors reached 10 million persons. Labor, employment, social security were paid attention to and achieved certain results. However, in addition to the positive aspects, the economy still had shortcomings and challenges: The growth rate did not meet the expectation, import and export did not highly improved, the forest fire was still large; people’s lives in areas hit by natural disasters and environmental pollution areas was still difficult.
The year 2017 has a very important meaning and it is the key year in completing the 5-year socio-economic development plan for 2016-2020. In addition to the favorable factors for socio-economic development, such as the economy continued to recover, the open business environment created trust for the business community, the macroeconomic situation was stable. Inflation was controlled, etc. The year 2017 is predicted to have many difficulties and challenges affecting our economy. World economic growth is forecasted to improve but still at a low level.[22]. The financial and monetary market, world commodity prices were complicated; Brexit and the tendency of trade protection of some major economies will affect our economy. In the country, the quality of growth and competitiveness of the economy was still low, the balances of the economy were not really sustainable. State budget deficit and public debt increased. The system of credit institutions exists many risks. Natural disasters and epidemics are complicated; negative impacts of climate change, especially severe drought and saline intrusion in the Mekong River Delta will greatly affect agricultural production and people’s life.
To fulfill the objectives and targets of socio-economic development in 2017 approved by the National Assembly, including targets of increasing GDP by 6.7%, the average growth rate of consumer prices is about 4%; increase total export turnover by about 6 -7%, etc. All levels, sectors and localities must properly and fully realize the difficulties and challenges ahead to promptly take measures to overcome from the first days and the first months of 2017, of which focuses on the following main contents:
Firstly, being active and flexible in operating monetary policy and effective banking operations, working closely with fiscal policies and other macroeconomic policies. Reasonable credit growth, interest rate and exchange rate management are in line with domestic and international monetary market developments to contribute to boosting production and implementing inflation control targets. To restructure credit institutions in association with dealing with bad debts, handling problems of mechanisms and facilitating credit expansion for economic development, ensuring system safety and benefits depositors.
Secondly, to strictly implement the State Budget Law and fiscal discipline. To nurture the State budget revenue source, ensuring proper, full and timely collection. To enhance and effectively implement measures to prevent losses, transfer pricing and tax arrears. To closely monitor expenditures from the State budget, especially public investment. To closely save recurrent expenditures from the State budget, especially conferences, guests welcoming, traveling abroad and using public vehicles. To implement solutions to restructure state budget revenue and expenditure and public debt, strengthen public debt management, especially new loans. To develop a roadmap and scope of adjustment for the prices of goods and services managed by the State, ensuring that it will not have a big impact on the price level and in line with the inflation control target in 2017.
Thirdly, to focus on restructuring agriculture in association with building a new rural area, changing the structure of plants and animals in accordance with advantages, market demand, adapting to climate change. To accelerate research and use of quality varieties; implement intensive measures, apply advanced science and technology to improve productivity and product quality. To strengthen prevention and control of diseases and food safety. Regarding the provinces affected by saline intrusion in the Mekong Delta and the provinces frequently affected by droughts in the Central Highlands and South Central Coast, it is necessary to re-plan the production structure of sectors, especially in agricultural and forestry production and aquaculture in the direction of forming large-scale specialized cultivation areas. At the same time, it is proactive in repairing and dredging the system of canals and irrigation works to prevent saltwater intrusion and build reservoirs to keep fresh water in service of production and people’s life.
Fourthly, to continue to improve the investment, business and infrastructure environment, creating favorable conditions for business development. To step up the development of in-depth processing industry in association with the advantages of agricultural, forestry and fishery sources. To create favorable conditions to develop supporting industries, participate in global production and distribution chains. To continue to accelerate the process of equitization and divestment of state capital in enterprises to ensure publicity, transparency, avoid loss of money and State assets.
Fifthly, to enhance trade promotion, increase export including traditional markets and markets with high potential purchasing power. To encourage the export of commodity groups and competitive goods in stable market. To actively develop and implement plans and solutions to respond to new developments related to TPP and Brexit. To strengthen activities of forecasting domestic and foreign markets, promptly disseminating market information, soon discovering and taking measures to overcome technical barriers and actively implement effective signed free trade agreements.
Sixthly, to strongly develop the domestic market, the retail system is associated with domestic consumption. To implement measures to bring the movement “Vietnamese people prioritize using Vietnamese goods” really come to life, associated with promoting production and developing the domestic market. To improve the effectiveness of market management, anti-smuggling, trade fraud, counterfeit goods, and poor quality goods to protect domestic production and consumer rights.
Seventhly, to strengthen resource management and environmental protection. To strictly control the assessment of environmental impacts on investment projects. Never approve investment, licensing, implementation of projects that do not meet environmental standards, are at risk of causing pollution, affecting the ecological environment. To implement synchronous measures to improve environmental quality, thoroughly handle pollution sources, especially in craft villages, industrial zones, economic zones, river basins, coastal areas, and manufacturing facilities pose serious pollution risk. To resolutely resolve the illegal exploitation of gravel, stone and sand.
Eighthly, to effectively implement social security policies, social welfare, policies must be well performed, firstly in the Lunar New Year 2017, to ensure timeliness and right subjects. To effectively implement the National Target Program on sustainable poverty reduction in the 2016-2020 period. 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] The increase over the previous year of the agriculture, forestry and fishery sector in the period 2011-2015 was 4.23%, 2.92%, 2.63%, 3.44%, 2.41%, respectively.
[2] Changes compared to the previous year of the mining and quarrying in some years were as follows: an increase of 2.90%, 5.14% in 2011, 2012; a decrease of 0.23% in 2013; a rise of 2.26%, 6.50%. in 2014, 2015.
[3] Paddy production in 2015 was 45.09 million tons, an increase of 118 thousand tons compared with that in 2014.
[4] Production of winter-spring paddy in Mekong Delta in 2016 reached 9.99 million tons, a decrease of 1.14 million tons (by10.2%) compared with that of over the previous winter-spring crop.
[5] Production of winter-spring paddy in Mekong Delta in 2016 reached 9.99 million tons, a drop of 1.14 million tons (by10.2%) compared with that of over the previous winter-spring crop.
[6] Area of fruits for products reached 711.5 thousand hectares, an increase of 3.4% compared with that in 2015, of which: orange increased by 12.1%; by 7.3%; bananas by 3.6%; mango by 1.2%..
[7] Lichi production reached 310.9 thousand tons, a drop of 12.8% compared with that in 2015; longan reached 504.1 thousand tons, a decrease of 1.7%..
[8] As of December 26, 2016, the country no longer recorded diseases on cattle and poultry..
[9] The 2016 IIP of the manufacturing was estimated to increase by 11.2%; the IIS of the manufacturing went up 11.9%; the index of industrial inventory as of 1st January, 2016 rose 8.1%.
[10] Source: National business registration information system, Ministry of Planning and Investment.
[11] Mainly because the volume of foreign visitors to Vietnam in November reached a record of 936.8 thousand persons.
[12] Included: United Kingdom, France, Germany, Spain and Italy.
[13] Trade deficit was estimated at 400 million USD.
[14] Ho Chi Minh City, Thanh Hoa, Nghe An and Ha Tinh.
[15] Mainly because the demand for processing to serve the Lunar New Year holidays and the price of rice in some provinces in the Central region was high due to the impact of flood.
[16] CPI in December compared to the same period last year: In 2002 increased by 4%; in 2003 increased by 3%; in 2004 increased by 9.5%; in 2005 increased by 8.4%; in 2006 increased by 6.6%; in 2007 increased by 12.63%; in 2008 increased by 19.89%; 2009 increased by 6.52%; in 2010 increased by 11.75%; in 2011 increased by 18.13%; in 2012 increased by 6.81%; in 2013 increased by 6.04%; in 2014 increased by 1.84%; in 2015 increased by 0.60%.
Average CPI in the years compared to the previous year: In 2002, it increased by 3.9%; in 2003 increased by 3.18%; in 2004 increased by 7.7%; in 2005 increased by 8.3%; in 2006 increased by 7.5%; in 2007 increased by 8.3%; in 2008 increased by 22.97%; in 2009 increased by 6.88%; in 2010 increased by 9.19%; in 2011 increased by 18.58%; in 2012 increased by 9.21%; 2013 increased by 6.6%; in 2014 increased 4.09%; in 2015 increased by 0.63%.
[17] Export price index of goods/import price index of goods.
[18] Employment in the informal economy in non-agricultural activities include those who do not work in agriculture, forestry and fisheries and belong to one of the following three groups: (i) wage earners in the formal sector who are not entitled to enter into a labor contract or to be entered into a labor contract with definite term but not paid compulsory social insurance by employers; family labor in establishments in the formal sector and cooperative members who do not have a compulsory social insurance; (ii) owners of establishments, self-employed workers, wage earners and family labor in establishments in the informal sector; (iii) self-employed workers for self-consumption of households and hired labor in households.
[19] Labor productivity of the economy at current prices for 2011-2016 were as follows: 55.2 mil VND/worker; 63.1 mil VND/worker; 68.7 mil VND/worker; 74.7 mil VND/worker; 79.4 mil VND/worker; 84.5 mil VND /worker.
[20] Decision No. 59/2015/QD-TTg dated 19 November 2015 of the Prime Minister promulgating multi-dimensional approach to poverty applied for the period 2016-2020 was as follows:
– In rural areas: is the one that satisfies either of the two following norms (1) Having a monthly per capita income of VND 700,000 to lower and (2) Having a monthly per capita income of between over 700,000 VND and 1,000,000 VND and deprived of at least 3 indicators measuring deprivation of access to basic social services;
– In urban areas: is the one that satisfies either of the two following norms: (1) Having a monthly per capita income of VND 900,000 or lower and (2) Having a monthly per capita income of between over 900,000 VND and 1,300,000 VND and deprived of at least 3 indicators measuring deprivation of access to basic social services.
[21]Not including damage caused by severe drought and saline intrusion in the South Central region, Central Highlands, South East areas and Mekong River Delta.
[22] In October 2016, the International Monetary Fund (IMF) forecasted world economic growth in 2017 at 3.4% (3.1% in 2016).