SOCIAL AND ECONOMIC SITUATIONS IN THE FIRST 6 MONTHS OF 2015

Vietnamese socio-economy in the first 6 months of 2015 took place in the context that the world economy was forecasted to continuously recover but not sustainable with different growth rate among sectors, partly due to different impacts of reduced prices of oil and other goods on each sector. The US economy – the largest economy continued to strongly grow thanks to robust domestic market demand, especially consumer demand. Most emerging economies benefited from low oil prices, rise of global liquidity and the acceleration of the US and European economies. Meanwhile, other leading economies grew slowly and continued to face significant difficulties due to the impact of the global financial crisis such as diminished employment due to the weak aggregate demand and the increase of private and public debt with the instability of the financial sector. In the country, the lump in petroleum prices strongly supported enterprises and stimulated consumption. Policies issued in 2014 and early 2015 took effect, creating favorable conditions for enterprises to overcome difficulties. All-level administrative authorities, economic sectors and localities across the country took advantage of favorable opportunities at home and abroad, well implemented the direction and administration of the National Assembly and the Government, focusing on Resolution No. 01/NQ-CP dated 3^rd January, 2015 of the Government on main tasks and solutions to direct the implementation of the 2015 socio-economic development plan and State budget estimate. Achievements of the production and business in the first 6 months was as follows:

I. ECONOMIC GROWTH

1. Growth rate of gross domestic product

The gross domestic product (GDP) in the first 6 months of 2015 was estimated to increase by 6.28% compared to the same period in 2014, of which the growth of the first, second quarter was 6.08%, 6.44%, respectively. In the overall growth of 6.28%, the agriculture, forestry and fishery sector, the industry and construction sector, the service sector increased by 2.36%, 9.09%, 5.90%, which contributing 0.42 percentage points, 2.98 percentage points, 2.22 percentage points, respectively.

In the agricultural, forestry and fishery sector, the forestry activities achieved the highest increase of 8.07% compared to the same period in 2014, contributing 0.05 percentage points to the overall increase; the agricultural activities rose 1.90%, contributing 0.27 percentage points; the fishery activities went up 3.30%, contributing 0.10 percentage points.

In the industry and construction sector, the industrial activities increased by 9.53% compared to the same period last year, much higher than the same period of the previous years[1], of which the manufacturing achieved a high increase of 9.95%[2], making an important contribution to the overall growth rate (1.57 percentage points); the mining and quarrying expanded 8.18% (the figure in same period last year reached 1.13%). The construction activities spread 6.60%, higher than the increase of 6.11% in the same period of 2014.

In the service sector, the growth rate of some large share activities was as follows: the wholesale and retail trade, the accommodation and catering services, the finance, banking and insurance activities increased by 8.35%, 2.90%, 5.85% compared to the same period last year, respectively; the real estate activities achieved marked improvement, reaching an increase of 2.72%, higher than the increase of 2.51% in the same period last year and showing positive signs: the real estate market warmed up, the successful rate in real estate transactions showed an upturn trend, bank interest rates continued to decline, as well as conditions for home loans were relaxed.

GDP growth rate in the second quarter of years
2013, 2014, and 2015

 

	Year-on-year growth rate (%)			Contribution of the economic sectors to the growth in the 2nd quarter of 2016 (Percentage point)
	QII 2013	QII 2014	QII 2015
Total	4.90	5.22	6.28	6.28
Agriculture, forestry and fishery	2.06	2.90	2.36	0.42
Industry and construction	4.97	5.12	9.09	2.98
Services	6.13	5.82	5.90	2.22
Product taxes less subsidies on production	5.33	7.19	5.60	0.66

Regarding economic structure in the first 6 months of this year, the agriculture, forestry and fishery sector accounted for 16.73%; the industry and construction sector accounted for 33.45%; the service sector accounted for 39.61%; the product taxes less subsidies on production accounted for 10.21%.

From the expenditure approach of the first 6 months, the final consumption increased by 8.70% over the same period in 2014, contributing 7.74 percentage points to the overall increase; the gross capital formation increased by 6.85%, contributing 2.25 percentage points; the balance of exports and imports of goods and services was in the trade deficit, reducing 3.71 percentage points of the overall growth rate.

2. Agriculture, forestry and fishery

Agriculture

Cultivated area of ​​winter-spring paddy in the country this year was estimated at 3112.2 thousand hectares, a drop of 4.3 thousand hectares compared with that of against the winter-spring crop of the previous year, of which the northern provinces reached 1161.8 thousand hectares, an equal to that of against the winter-spring crop in 2014; Southern provinces reached 1950.4 thousand hectares, falling by 0.2%. According to preliminary reports, the country’s winter-spring paddy yield was estimated at 66.5 quintal / hectares, decreasing by 0.4 quintal / hectare compared with that of against the winter-spring crop in 2014; production reached 20.7 million tons, falling by 153.3 thousand tons. Winter-spring paddy production this year was recorded to decrease compare with that of against the previous winter-spring crop, both in terms of area, yields and production, mainly due to long lasting hot weather causing drought, some localities was affected by salty intrusion. As of June 15, northern provinces harvested 1045.5 thousand hectares of winter-spring paddy; yield was estimated at 62.1 quintal / hectare, decreasing by 0.3 quintal / hectare compared with that of against the winter-spring crop in 2014; production reached 7.2 million tons, falling by 36.5 thousand tons. Particularly in Red River Delta, due to the implementation of plotting, exchanging plots, a part of paddy growing area was converted to other uses; the cultivated area decreased by 5.4 thousand hectares, production reached 3.6 million tons, reduced by 15 thousand tons of over the same period last year. Localities in the South basically harvested winter-spring paddy, production was estimated at 13.5 million tons, falling by 116.8 thousand tons compared with that of against the winter-spring crop in 2014, particularly the key area of ​​the Mekong Delta paddy reached 11.1 million tons, falling by 61 thousand tons due to hot weather affected with pests and diseases. Some localities recorded a decrease in paddy production of over the same period last year: Dong Thap reduced by 53.8 thousand tons; An Giang decreased by 32.8 thousand tons.

Along with the harvesting winter-spring crop, as of middle of June, localities in the nationwide cultivated 1851.4 thousand hectares of summer-autumn paddy, equaling 93.6% of over the same period last year, of which the Mekong River Delta reached 1477.9 thousand hectares, equaling 92.1%. Area of ​​early summer-autumn paddy was harvested by 220.6 thousand hectares, an equal to 107% of against the same period last year.

Some other crops this winter-spring crops basically completed harvesting. Production of maize reached 2.5 million tons, falling by 43.3 thousand tons of against the previous year; sweet potatoes reached 856.9 thousand tons, rising by 14.7 thousand tons; soybean reached 77.6 thousand tons, falling by 4.7 thousand tons; peanuts reached 354.6 thousand tons, rising by 4.6 thousand tons; vegetables of all kinds reached 8.6 million tons, rising by 244 thousand tons.

According to reports from localities, yield of some perennial crops and fruits was good compared with that of over the same period last year: Production of Tea reached 442 thousand tons, rising by 2.4%; rubber reached 315 thousand tons, rising by 0.6%; pepper reached 126 thousand tons, rising by 5.4%; cashew reached 336 thousand tons, rising by 1%; orange reached 249 thousand tons, rising by 1.4%; Especially, this year production of litchi recorded high of 350.7 thousand tons,  rising by 14%.

According to the survey results as of April 1, 2015, pig population in the country reached 27.2 million heads, rising by 2.9% compared with that of over the same period in 2014; Poultry reached 327.1 million heads, rising by 4%. Buffaloes and cattle in the first 6 months were recorded relatively stable. Buffalo population in the country was estimated at 2.6 million heads, falling by 0.4% compared with that of against the same period last year; cattle reached 5.3 million heads, rising by 2.7%; cow’s milk recorded 253.7 thousand heads, rising by 26.5%. Production buffalo living weight in 6 months was estimated at 49.9 thousand tons, rising by 0.8% of over the same period last year; production of cattle living weight was estimated at 179.8 thousand tons, rising by 1.9%; fresh milk production was estimated at 355.2 thousand tons, rising by 24.4%; production of pig living weight reached 2.05 million tons, rising by 3.9%; poultry living weight reached 515.9 thousand tons, rising by 4.5%; eggs reached 4.9 million, rising by 6.8%.

As of June 21, 2015, blue ear disease on pigs was not recorded to occur in 21 days; bird flu was not over 21 days in Dak Lak and foot-and-mouth epidemic in Quang Nam and Bac Kan.

Forestry

In the first 6 months of the year, the concentrated new forest area was estimated at 85 thousand hectares, rising by 19% of over the same period last year. Some provinces recorded a high concentration of newly planted forests: Quang Ninh reached 10.7 thousand hectares, an increase of 3.6%; Ha Giang reached 8 thousand hectares, rising by 60%; Thai Nguyen reached 6.1 thousand hectares, rising by 77.4%; Bac Kan reached 5.6 thousand hectares, an increase of 10.2%. The area of ​​concentrated forests was recorded to increase, on the one hand because the demand of wood production production and consumption tended to increase, on the other hand, because the forestry enterprises implemented with households through economic contracts to provide technical support for afforestation and product consumption. Area of ​​planted forest was tended in the period reached 360 thousand hectares, an increase of 16.2% compared with that of over the same period in 2014. Area of ​​regenerated forest reached 604.7 thousand hectares, falling by 0.5%. The concentrated forests area reached 4805.2 thousand hectares, falling by 2.7%.  Number of scattered trees was estimated at 111 million, rising by 0.3%.

Production of wood in localities increased significantly compared with that of over the same period last year. Production of wood in 6 months reached 3470 thousand m3, rising by 11.7% of over the same period in 2014; firewood production reached 14.9 million ste, increased by 1.7%. Some localities recorded an increase. Wood production in Quang Nam reached 372 thousand m3, rising by 6.6%; Quang Ngai reached 344 thousand m3, rising by 16.3%; Binh Dinh reached 296 thousand m3, rising by 29%; Tuyen Quang reached 188 thousand m3, rising by 24.8%. Wood production increased due to high demand for raw materials for production, export and consumption.

Forest production in localities increased significantly compared with that of over the same period last year. Production of wood in 6 months reached 3470 thousand m3, rising by 11.7% of over the same period in 2014; firewood reached 14.9 million ste, rising by 1.7%. Some localities increased in  production of timber: Quang Nam reached 372 thousand m3, rising by 6.6%; Quang Ngai reached 344 thousand m3, rising by 16.3%; Binh Dinh reached 296 thousand m3, rising by 29%; Tuyen Quang reached 188 thousand m3, rising by 24.8%. Wood production increased mainly due to high demand for raw materials for production, export and consumption.

Forest protection of forest fire prevention measures were taken to reduce damage but due to long lasting hot weather, forest fires still occurred in some localities. In the first 6 months of the year, there were 842 hectares of forest damaged, which was 30.9% lower of against the same period last year, of which forest area was 556 hectares, falling by 38.1%; area of ​​deforested forest was 286 hectares, falling by 11%. Some localities recorded much forest area: Dak Lak by 176 hectares; Yen Bai by 142 hectares; Ha Giang by 99 hectares. Some localities witness much cleared forest area: Dak Nong by 134 hectares; Lam Dong by 64 hectares; Dien Bien by 41 hectares.

Fishery

Fishery production in the first 6 months was estimated at 3071.5 thousand tons, rising by 3.8% compared with that of against the same period in 2014, of which fish reached 2260.7 thousand tons, rising by 3.3%, shrimp reached 314 thousand tons, falling by 2.5%.

Area of ​​aquaculture in 6 months was estimated at 921 thousand hectares, falling by 0.8% compared with that of over the same period last year, of which fish farming area reached 262 thousand hectares, a rise of 1%; shrimp farming area reached 602.3 thousand hectares, a decrease of 2.5%. Aquaculture production in 6 months was estimated at 1,574.8 thousand tons, a growth of 3.3% of over the same period last year, of which fish reached 1178.4 thousand tons, an increase of 2.4%; shrimp reached 236 thousand tons, a decrease of 2.5%.

Export of pangasius in the first months of the year was difficult because the exchange rates US dollar increased strongly compared to some other foreign currencies that narrowed the import markets, while export pangasius still faced high tax rates. Area of ​​farming Pangasius in the Mekong Delta was estimated at 3975 hectares, a decrease of 6% compared with that of over the same period in 2014. Some provinces and cities witnessed area of ​​industrial catfish farming decrease: An Giang reached 768 hectares, falling by 0.3%; Can Tho reached 650 hectares, falling by 10%; Ben Tre reached 544 hectares, falling by 13.2%; Vinh Long reached 440 hectares, falling by 10%. Pegasus production in 6 months was estimated at 561 thousand tons, an equal to that of over the same period last year. Some localities recorded a decrease of pangasius production of over the same period: Tien Giang reached 199.8 thousand tons, falling by 1.3%; Ben Tre reached 92.6 thousand tons, falling by 3.7%; Vinh Long reached 47.2 thousand tons, falling by 8.5%. Some provinces were recorded an increase of Pegasus production due to proactive production and seeking new markets: Dong Thap reached 180.3 thousand tons, a growth of 2%; An Giang reached 130.3 thousand tons, an increase of 3.5%. Recently, Pegasus farming in the localities was changed from small-scale to large-scale, concentrated farming, ensuring a closed cycle from production and processing to consumption to meet the strict requirements of the import market.

Shrimp farming faced some difficulties because shrimp prices in the market fell sharply while input costs tended to increase. Besides, long lasting weather, temperature different between day and night, outbreaks of complicated disease affected to shrimp farming in localities. Area of white leg shrimp farming in the first 6 months was estimated at 46 thousand hectares, falling by 21% compared with that of over the same period last year. Some provinces was recorded a large area of ​​white leg shrimp such as: Soc Trang reached 15.5 thousand hectares, falling by 40%; Ben Tre reached 4.2 thousand hectares, down 16.8%; Bac Lieu reached 3.9 thousand hectares, falling by 17.8%. Production of white leg shrimp in 6 months was estimated at 110 thousand tons, falling by 5.4% compared with that of over the same period in 2014, of which Soc Trang reached 10 thousand tons, falling by 13%; Ben Tre reached 13.9 thousand tons, falling by 23.9%; Bac Lieu reached 9.5 thousand tons, a decrease of 7.7%.

Area of ​​tiger shrimp farming in the first 6 months was estimated at 502 thousand hectares, a growth of 3.4% of over the same period last year, of which Kien Giang reached 91.5 thousand hectares, rising by 6.6%; Bac Lieu reached 75.7 thousand hectares, an increase of 4.9%; Tien Giang reached 3.4 thousand hectares, an increase of 43%. Production of black tiger shrimp in the period was estimated at 99.5 thousand tons, a drop of 0.5% of over the same period last year, of which Ca Mau reached 45.4 thousand tons, falling by 17%; Tra Vinh reached 3 thousand tons, falling by 25%. Production of black tiger shrimp decreased mainly due to epidemics causing some localities to harvest young shrimps that affected the productivity. Marine aquaculture was recorded a strong growth in 6 months. Production was estimated at 120.6 thousand tons, rising by 24% compared with that of over the same period last year, concentrating mainly on species of high economic value: clams and oysters reached 75.6 thousand tons, rising by 18.8%; crabs reached 14.2 thousand tons, rising by 34.5%; sea bass reached 9.1 thousand tons, rising by 23.1%.

The weather was recorded favorable fishermen conducted marine catching. Fishery production in the first 6 months was estimated at 1496.7 thousand tons, rising by 4.4% compared with that of over the same period in 2014, of which fish reached 1082.3 thousand tons, rising by 4.4%, and shrimp reached 78 thousand tons, falling by 2.5%. Production of marine catching in 6 months was estimated at 1411 thousand tons, rising by 4.6% of against the same period last year, of which tuna reached 13.1 thousand tons, rising by 0.8%.

3. Industrial production

The index of industrial production (IIP) in June was estimated to increase by 11.1% over the same period last year, of which the IIP of the mining and quarrying, the manufacturing, the production and distribution of electricity, the water supply, sewerage, waste management and remediation activities increased by 12%, 11%, 9.8%, 6.4%, respectively.

Generally the first 6 months of the year, the IIP increased by 9.6% over the same period last year (the IIP increase in the first, second quarter reached 9.3%, 10.2%, respectively), much higher than the same period of some recent years[3]. In industrial activities, the IIP of the mining and quarrying, the manufacturing, the production and distribution of electricity, the water supply, sewerage, waste management and remediation activities increased by 8.2%, 10%, 11.2%, 6.4%, which contributing 1.7 percentage points, 7 percentage points, 0.8 percentage points, 0.1 percentage points[4] to the overall increase, respectively. Relating usage of industrial products, the IIP of intermediate products for the following production process increased by 8.9% compared to the same period last year; the IIP products used as means of production increased by 14% (of which, the IIP of production tools, construction materials increased by 24.1%, 12.1%, respectively); the IIP of consumer goods for residents rose 8.2%.

In 2-digit industrial activities, the 6-month IIP of some activities increased significantly over the same period last year, including the manufacture of motor vehicles (28.7%); the manufacture of textile (23.2%); the manufacture of leather and related products (21.3%); the manufacture of electronic, computer and optical products (21.1%). Some activities showed a moderate increase in the IIP: the manufacture of other non-metallic mineral products (12.7%); the manufacture of rubber and plastic products (12.6%); the other mining and quarrying (12.1%); the production and distribution of electricity (11.2%); the manufacture of basic metals (10.4%); the manufacture of paper and paper products (10.3%). The IIP of several activities slightly increased: the manufacture of food products (7.6%); the manufacture of chemical and chemical product (7.2%); the manufacture of beverages (5.9%); the extraction of hard coal and lignite (5.2%); the manufacture of furniture (5%); the manufacture of pharmaceuticals, medicinal chemical and botanical products (4.5%); the manufacture of wearing apparel (4.5%); the manufacture of tobacco products (1.8%).

In the first 6 months of this year, some products experienced a huge increase in the IIP over the same period last year: mobile phones (68.8%); automobiles (57.6%); televisions of all kinds (40.3%); leather shoes and sandals (19.5%); aquatic feed (19%); rolled steel (18.2%); fresh milk (13.6%). The IIP of various products increased quite well: electricity (11.8%); crude oil (11%); chemical paint of all kinds (10.9%); cement (10.5%). A number of products witnessed a slight increase in the IIP: liquefied gas (8.4%); beer of all kinds (5.6%); casual clothes (5.5%); running water (5.4%); processed seafood (5.3%); coal (3.7%); crude steel (3.2%); refined sugar (2.9%); NPK mixed fertilizer (2.6%); cigarettes (1.7%). However, the IIP of powder milk, motorcycles decreased by 0.6%, 13.3%, respectively.

Some industrial large shared provinces showed an increase in the 6-month IIP compared to the same period last year, such as Thai Nguyen (230%); Quang Nam (27.3%); Hai Phong (15.9%); Da Nang (11.2%); Hai Duong (9.3%); Binh Duong (8.4%); Dong Nai (7.9%); Can Tho (7.9%); Ha Noi (6.8%); Ho Chi Minh City (6.4%); Quang Ninh (5.9%); Vinh Phuc (2.3%). Only the IIP of Ba Ria – Vung Tau decreased by 4.5%.

The index of industrial shipment (IIS) of the manufacturing activities in May 2015 increased by 7.5% over the previous month and by 12.3% over the same period last year. Generally for 5 months, the IIS increased by 12.7% compared to the same period in 2014, higher than the increase of 9% in the same period of 2014, of which some activities saw a considerable growth in the first 5-month IIS: the manufacture of motor vehicles (35.5%); the manufacture of electronic, computers and optical products (30.6%); the manufacture of basic metals (23.3%); the manufacture of textile (14.5%). Some industrial activities experienced a small increase in the IIS: the manufacture of electrical equipment (10.2%); the manufacture of wearing apparel (7.4%); the manufacture of pharmaceuticals, medicinal chemical and botanical products (5.9%); the manufacture of food products (5.8%); the manufacture of beverages (5.4%); the manufacture of tobacco products (2.6%).

The index of industrial inventory of the manufacturing as of 1^st June, 2015 increased by 11.8% compared to the same period last year, lower than the increase of 12.8% in the same period of 2014, of which the index of industrial inventory of the manufacture of chemicals and chemical products increased by 5.7%; a number of activities witnessed a decrease in the index of industrial inventory: the manufacture of electrical equipment (2.1%); the manufacture of tobacco products ion decreased by 5.6%; the manufacture of rubber and plastic products (7.3%). However, the index of industrial inventory of some activities significantly increased over the average index: the manufacture of electronic, computers and optical products (140.4%); the manufacture of beverages (85%); the manufacture of food products (45.1%); the manufacture of leather and related products (44.2%); the manufacture of paper and paper products (41.4%).

The average index of industrial inventory of the manufacturing in the first 5 months of the year was 77.8%, of which some industries showed a massive increase in the index of industrial inventory: the manufacture of pharmaceuticals, medicinal chemical and botanical products (155%); the manufacture of chemicals and chemical products (124.4%); the manufacture of food products (99.7%).

The number of employees working in industrial enterprises as of 1^st June, 2015 increased by 6.6% compared to the same period last year, of which the number of employees working in State-owned enterprises decreased by 1.3%; but the figure in non-state enterprises, FDI enterprises increased by 4.4%, 10.5%, respectively. At the same time, the number of employees working in the mining and quarrying decreased by 8.2% compared to the same period last year; the number of employees working in the manufacturing, the water supply, sewerage, waste management and remediation activities increased by 7.9%, 3.7%, respectively; the number of employees working in the production and distribution of electricity was at stable level over the same period in 2014.

Some provinces, cities directly under the Central with large share of the industry sector witnessed an increase in the number of employees working in industrial enterprises as of 1^st June, 2015 compared to the same period last year: Thai Nguyen (61.7%); Vinh Phuc (17.2%); Hai Duong (13.5%); Quang Nam (11.4%); Binh Duong (10.4%); Quang Ngai (6.7%); Dong Nai (5.8%); Da Nang (4.4%); Ho Chi Minh City (2.4%); Can Tho (0.8%); Ha Noi (0.2%). On the contrary, the number of employees working in Hai Phong, Ba Ria – Vung Tau, Quang Ninh fell 0.8%, 1.7%, 5.2%, respectively.

4. Operation of enterprises

Enterprises registration status[5]

In June, there were 9351 newly established enterprises with a registered capital of 63.1 trillion VND, the average registered capital of an enterprise was 6.7 billion VND. Compared to the previous month, the number of newly established enterprises increased by 19.6%; the registered capital rose by 10.9%; the average registered capital of an enterprise decreased by 7.2%. Compared to the same period last year, the number of newly established enterprises increased by 53.6%; the registered capital expanded by 10%. The total number of registered employees of newly established enterprises in June was 133 thousand persons, rising by 46.9% over the previous month.

In the month, there were 1103 re-operated enterprises, going up by 1.4% compared to the previous month; There were 4935 temporarily ceased enterprises, a rise of 19.9%, including 1280 enterprises ceased for a certain period of time and 3655 enterprises temporarily ceased and waited to terminate their business codes or unregistered; 824 enterprises completed dissolution procedures, climbing by 29.8%.

In the first 6 months of this year, there were 45406 newly registered enterprises with a total registered capital of 282.4 trillion VND, expanded by 21.7% in the number of enterprises and 22.3% in the capital registration compared to the same period last year[6]. The average registered capital of a newly established enterprise in the first 6 months of the year achieved 6.2 billion VND, a surge of 0.5% compared to the same period in 2014. Besides, there were 10988 enterprises that recorded upward adjustment of capital with the total registered capital increased by 308.8 trillion VND. Thus, the total new additional registered capital in the economy in the first 6 months of 2015 was 591.2 billion VND. The number of employees expected to have jobs offered in newly established enterprises in the first 6 months was 651.4 thousand persons, went up 20.4% over the same period last year.

The number of enterprises completed dissolution procedures, terminating business production activities in the first 6 months of the year was 4708 enterprises, a downturn of 0.9% compared to the same period in 2014, of which almost of enterprises with the registered capital size of less than 10 billion VND. By kinds of enterprise, the total number of enterprises completed dissolution procedures, terminated business production activities, there were 1676 one-member limited liability companies (accounting for 35.6%); 1287 two-member limited liability companies (making up 27.3%); 1044 private enterprises (sharing 22.2%) and 701 joint stock companies (forming 14.9%).

The number of temporarily ceased enterprises in the first 6 months was 27051 enterprises, reduced 5.8% compared to the same period last year, including 8898 enterprises ceased for a certain period of time and 18153 enterprises temporarily ceased and waited to terminate their business codes or unregistered. Out of the total number of temporarily ceased enterprises, there were 9588 one- member limited liability companies (constituted 35.4%); 8917 two-member limited liability company (33%); 4746 joint stock companies (sharing 17.5%) and 3800 private enterprises (accounting for 14.1%).

The number of re-operated enterprises in the first 6 months of the year was 8507 enterprises, rising by 2.2% over the same period in 2014. In general, the situation of enterprises entered the market in the first 6 months of this year achieved a clearly improvement over the same period last year, reflecting the efforts of the enterprises and the effectiveness of the solutions made by Government and ministries in improving the business environment and handling difficulties in enterprises.

Business trend of enterprises

The results of the business trend survey of 3389 manufacturing enterprises showed that the business production trend of enterprises in the second and third quarter of 2015 would be stable and developed than the first quarter in 2015. Generally, the business production situation of enterprises in the second quarter compared to the previous quarter, there were 40.5% of enterprises assessed that the business production situation would get better; 20.1% of enterprises predicted that it would be difficult and 39.4% of enterprises said that the business production situation would be stable. It was expected that in the third quarter compared to the second quarter, 49.4% of enterprises believed that the trend would get better; 13.2% of enterprises forecasted fewer and 37.4% of enterprises said that the business production situation would be stable.

Regarding production volume, 44.3% of enterprises pointed out production volume of enterprises in the second quarter of this year increased compared to the previous quarter; 19.1% of enterprises presented the production volume decrease and 36.6% of enterprises considered stable. The trend of the third quarter compared to the second quarter, 52% of enterprises forecasted an increase in the production volume; 11.1% of enterprises forecasted a decrease and 36.9% of enterprises forecasted stability

Regarding orders for goods, 37% of enterprises had more orders for the second quarter of this year compared to the first quarter; 19.2% of enterprises had fewer orders and 43.8% of enterprises had stable orders. The trend of the third quarter with 45.8% of enterprises expected higher orders compared to the second quarter; 10.8% of enterprises expected a decrease in orders and 43.4% of enterprises expected to have stable orders.

Regarding export orders, 29.3% of enterprises confirmed more export orders in the second quarter compared to the previous quarter; 19.5% of enterprises experienced fewer export orders and 51.2% of enterprises kept export orders stable. Trends in the third quarter compared to the second quarter, 40.7% of enterprises expected to have an increase in export orders; 12.8% of enterprises expected a decrease and 46.5% of enterprises expected to be stable.

Regarding cost of production, 30.9% of enterprises confirmed cost of production per unit of product in the second quarter in 2015 increased compared to the previous quarter; 9.7% of enterprises recorded a decrease in the cost and 59.4% of enterprises predicted the cost was stable. Trends in the third quarter compared to the second quarter, 23.9% of enterprises expected an increase in the cost of production; 11.3% believed a decrease in the cost and 64.8% of enterprises expected the cost of production stable.

Regarding selling price, 18.5% of enterprises predicted an increase in the selling price in the second quarter compared to the previous quarter; 11.3% of enterprises recorded the selling prices was lower and 70.2% of enterprises had stable selling prices. Estimated selling price of product in the third quarter compared to the second quarter, 20.6% of enterprises forecasted higher selling price; 8.6% of enterprises forecasted lower selling prices and 70.8% of enterprises expected selling prices stable.

Regarding product inventory, there were 21.1% of enterprises with inventory in second quarter increased compared to the previous quarter; 32.7% of enterprises had a decrease in the inventory and 46.2% of enterprises remain stable. The trend of the third quarter compared to the second quarter, there were 16% of enterprises predicted an increase in the inventory; 33.4% of enterprises believed a decrease in the inventory and 50.6% of enterprises expected to remain stable.

Regarding input inventory, there were 19.7% of enterprises said that the input inventory increased in the second quarter compared to the first quarter; 30.6% of enterprises said that it was reduced and 49.7% of enterprises said that they remain unchanged. It was expected that in the third quarter compared to the second quarter, 15.3% of enterprises forecasted an increase in the input inventory; 31.7% enterprises predicted a decrease in the input inventory and 53% of enterprises believed that it would remain unchanged in the input inventory.

5. Service operation

Retail sales of consumer goods and services

Gross retail sales of consumer goods and services in June were estimated at 266.7 trillion VND, up 1.5% over the previous month and 9.2% over the same period last year. In terms of economic ownership, the state-owned sector reached 30 trillion VND, up 1.2% over the previous month; non-state sector reached 227.7 trillion VND, up 1.5%; foreign directed investment (FDI) sector reached 9 trillion VND, up 1.3%.

Retail sales of goods in the month reached 200.3 trillion VND, an increase of 0.9% over the previous month and 12.2% over the same period last year, of which: garment group rose by 1.3% and increased by 14.7%; household appliances, tools and equipment increased by 1.2% and increased by 11.3%; vehicles increased by 0.9% and by 10.7%; gasoline of all kinds increased by 0.7% and by 8.3%; food and foodstuff increased by 0.6% and by 26.1%.

Revenue from accommodation and catering services in June reached 32.9 trillion VND, up 5.1% over the previous month and 12.7% over the same period last year. Some provinces had a high increase in the turnover of accommodation and food services compared to the same period last year: Ho Chi Minh City increased by 33%; Hanoi increased by 32%; Ha Tinh increased by 23%; Da Nang increased by 21%; Khanh Hoa increased by 18%. Some provinces had revenue reduced as follows: Kien Giang by 24.6%; Phu Tho by 6%; Quang Tri by 4.4%; Dong Nai by 2.7%; Thua Thien – Hue by 1.8%.

Tourism and travelling revenue in the month reached 2.7 trillion VND, up 8.3% over the previous month and down 6% compared to the same period last year, of which some provinces saw a sharp decrease over the same period last year: Nghe An decreased by 38.9%; Dong Nai decreased by 37%; Long An decreased 36%; Binh Phuoc decreased by 35%; Ben Tre decreased by 35%.

Other service revenue in the month was estimated at 30.7 trillion VND, up 0.6% over the previous month and up 5.5% over the same period last year, of which some provinces and cities had revenue increased significantly over the same period last year: Ho Chi Minh City increased by 15%; Quang Ninh increased by 12.8%; Hanoi increased by 7.6%; Nam Dinh increased by 6.2%.

In the first 6 months, gross retail sales of consumer goods and services were estimated at 1,572.1 trillion VND, up 9.8% compared to the same period of 2014, (if excluding the price factor, the increase was 8.3%, higher than the same period of some recent years. Gross retail sales of goods and consumer services in 6 months of the state-owned sector reached 174.3 trillion VND, accounting for 11.1% of the total, up 12.1%; non-state sector reached 1345.7 trillion VND, accounting for 85.6%, up 9.4%; FDI sector reached 52.2 trillion VND, accounting for 3.3%, up 11.6%. In terms of economic activity, retail sales of goods in 6 months reached 1193.9 trillion VND, accounting for 75.9% of the total and increasing by 10.6% over the same period in 2014; accommodation and catering services reached 182.1 trillion VND, accounting for 11.6% and increasing 5.9%; other services reached 182.4 trillion VND, accounting for 11.6% and up 9.7%; traveling and tourism services reached 13.7 trillion VND, accounting for 0.9% and down 6.1%.

Passengers and freight transport

Passenger carriage in the first 6 months was estimated at 1610.9 million passengers, increasing by 7.4% and 71.7 billion passengers-kilometers, increasing by 7% over the same period in 2014, including: central transport reached 16.8 million passengers, increasing by 3% and 17.8 billion passengers-kilometers, increasing by 4.9%; local transport reached 1594.1 million passengers, an increase of 7.5% and 53.9 billion passengers.km, an increase of 7.7%. Passengers transported by roadway in the first 6 months was estimated at 1519.1 million passengers, increasing by 7.7% and 53.1 billion passengers-kilometers, increasing by 7.9% over the same period last year; airway reached 9.6 million passengers, up 4.6% and 15.1 billion passengers.km, up 4.4%; railway reached 5.6 million passengers, decreased 1.8% and 2.1 billion passengers.km, up 4.6%; seaway reached 2.8 million passengers, up 2.8% and 131.3 million visitors.km, up 2.6%.

Freight carriage in the first 6 months was estimated at 545.8 million tons, up 5.7% and 107.1 billion tons.km, up 1.7% over the same period last year, of which domestic transport reached 530.6 million tons, up 5.8% and 45.6 billion tons.km, up 6.5%; foreign transport reached 15.2 million tons, up 2.9% and 61.6 billion tons.km, down 1.6%. Freight carried by roadway was estimated at 420.2 million tons, up 6.3% and 22.4 billion tons.km, up 7%; inland waterway reached 93.3 million tons, up 4.7% and 18.3 billion tons.km, up 5.6%; seaway reached 28.6 million tons, up 1.5% and 63.9 billion tons.km, down 1.4%; railway reached 3.5 million tons, up 2.1% and 2.2 billion tons.km, up 10.6%.

International visitors to Viet Nam

Estimated number of international visitors to Vietnam in June was 529 thousand, down 8.2% from the previous month, of which arrivals by airways dropped by 8.6%, roadways by 8.9% and visitors by seaway increased by more than 2.5 times. Visitors from Europe witnessed the largest decline with 14.7%, from Asia down 10.6% while visitors from Oceania increased by 1.6%. Asian markets saw a large decrease in number of visitors to Vietnam, including China decreased by 30.2%; South Korea fell by 10.6%; Thailand decreased by 5.1%; Japan decreased by 5.3%. Visitors from European countries decreased as follows: France dropped nearly 50%; from Germany, Netherlands and Belgium decreased by 25-30%. Only visitors from three Northern European countries including Norway, Sweden, Finland and Russia increased compared to the previous month. Visitors from the US increased by 31.1% while from Canada fell by 12.1%. Mers epidemic taking place in South Korea and Asia was considered one of the reasons why travelers limited their traveling at that time.

Compared to the same period last year, international visitors to Vietnam in June decreased by 1.9% and June was the 13th consecutive month of decline since June 2014. One of the reasons was that in the first 5 months of 2013, the number of visitors came at a low level, since June the number of visitors had increased sharply to May 2014. Since June 2014, due to the influence of the East Sea situation, the number of tourists has decreased. In the first months of 2015, the number of tourists was higher than that in 2013 (7.5% on average) but lower than that in 2014 (11.3% on average).

In the first 6 months of 2015, international visitors to Vietnam were estimated at 3.8 million, down by 11.3% over the same period in 2014, of which arrivals by airways decreased by 9.1%; roadways decreased by 19.7%; seaway fell by 26.5%.

Regarding markets: Visitors from most Asian markets declined compared to the same period last year, excepting for Taiwan, South Korea and Singapore. For the European market: German, Italian, Spanish and Finnish markets increased over the same period, while visitors from the other European markets fell due to the economic difficulties of the people, especially Russian market (down 13%). Visitors from the US increased by 3.9% while Canada fell by 4.3%. Visitors from Oceania fell by about 9% over the same period last year.

In the recent years, the number of international visitors to Vietnam was much lower than that in other countries in the region: In 2014 Malaysia received 27.4 million visits; Thailand was 24.8 million times higher; Singapore was 15.1 million times higher; Indonesia was 9.4 million while Vietnam was 7.8 million. The main reason for the low number of international visitors to Vietnam was because it had not attracted many visitors for both tourism, sightseeing and work goals while developing countries have developed equally for these targets. On the other hand, the activities of management related to tourism in the country did not have close and effective coordination between functional departments and agencies. According to the 2013 survey, 68.5% of the visitors rated Vietnam as having a beautiful landscape. However, when asked about the level of satisfaction, only 39% of the total visitors rated it well. According to the evaluation of international visitors to our country, Vietnamese goods were not really abundant and were expensive compared to some other markets.

Postal, telecommunication

Total mobile subscribers in the first 6 months were estimated at 136.9 million, up 14.3% over the same period in 2014, of which 2G subscribers reached 107.8 million, up 6%; 3G subscribers reached 29.1 million, a strong increase of 29.6%.

Total telecommunications revenue in the first 6 months of this year was estimated at 177.8 trillion VND, up 8.4% over the same period in 2014, of which Internet revenue was estimated at 10.5 trillion, up 12.2. % over the same period.

II. MACROECONOMICS STABILIZATION AND INFLATION CONTROL

1. Money and credit

As of 19^th June, 2015, credit growth reached 6.28% compared to December of the previous year, better than the growth of 2.03% of the same period in 2014. In first 6 months this year, capital mobilization of commercial banks increased by 4.58%, lower than the increase of 5.26% of the same period last year; total payment facilities rose 5.09%, lower than the growth of 6.37% of the same period in 2014. Liquidity of the commercial banking system continued to be improved, ensuring payment ability of the system. Foreign exchange rate expanded by the allowable margin of 2% in 2015.

2. Construction and development investment

Construction

Construction activities in the first 6 months of this year showed many positive changes, difficulties were gradually removed, many big projects were started to make advantages for enterprises to implement its operation.

Construction production value in the first 6 months at current prices was estimated at 393.8 trillion VND, including: State sector reached 35.7 trillion VND, accounting for 9.1%; non-state sector gained 328.9 trillion VND, making up 83.5%; FDI sector achieved 29.2 trillion VND, representing 7.4%. The foreign direct investment sector still maintained a high growth rate because the projects in Vung Ang economic zone were accelerated the construction progress, of which the sites of the project of Iron and Steel Complex and Son Duong Formosa Ha Tinh deep-water port had many works that were completed and put into use. In the total production value, the value of production and construction of housing projects reached 163.9 trillion VND; non-residential buildings gained 63.3 trillion VND; civil engineering works witnessed 121.9 trillion VND; specialized construction activities recorded 44.7 trillion VND.

Construction production value of 6 months at constant 2010 price was estimated at 313.3 trillion VND, a growth of 6.8% compared to the same period in 2014, including: State sector reached 29.1 trillion VND, going down 0.9%; non-state sector gained 260.9 trillion VND, going up 6.5%; FDI sector achieved 23.3 trillion VND, jumping up 22.6%. In the total production value, the value of construction and production of housing projects reached 129.8 trillion VND; non-residential buildings witnessed 50.5 trillion VND; civil engineering works achieved 96.8 trillion VND; specialized construction activities gained 36.2 trillion VND.

Development Investment

In the first 6 months of the year, thanked to the strong direction of Government, many effective measures were implemented to accelerate the disbursement of investment capital for projects and programs that contributed to attract and disburse domestic capital flows and foreign direct investment.

The realized investment in the first 6 months at current prices was estimated at 553.8 trillion VND, going up 9.4% over the same period last year and equaling 31.1% of GDP, including: the state budget capital sector reached 214 trillion VND, accounting for 38.7% of total capital and climbing up 7.2% over the same period last year; the non-state capital sector gained 202.8 trillion VND, making up 36.6% and increasing by 11.4%; foreign direct investment capital achieved 137 trillion VND, representing 24.7% and expanding by 9.9%.

In the investment of the state sector, the state budget capital in 6 months was estimated at 92.3 trillion VND, equaling 44.8% of the yearly plan and going up 1.7% compared to the same period in 2014, including:

– The capital under central management reached 18,128 billion VND, equaling 44.5% of the yearly plan and reducing 1.2% compared to the same period last year, of which the realized investment under management of Ministry of Transportation was 3,092 billion VND, equaling 45% and going up 11.9%; Ministry of Agriculture and Rural Development 1,268 billion VND, equaling 44.3% and going down 4.6%; Ministry of Construction 707 billion VND, equaling 45.6% and decreasing by 1.5%; Ministry of Health 707 billion VND, equaling 44.7% and increasing by 67.9%; Ministry of Education and Training 323 billion VND, equaling 37.9% and expanding by 12.8%; Ministry of Natural Resources and Environment 292 billion VND, equaling 42.6% and falling 1.4%; Ministry of Culture, Sports and Tourism 232 billion VND, equaling 39.5% and climbing up 7.4%; Ministry of Industry and Trade 163 billion VND, equaling 37.7% and rising 8.8%; Ministry of Science and Technology 140 billion VND, equaling 47.2% and​​ increasing by 12.5%; Ministry of Information and Communications 94 billion VND, equaling 51.7% and decreasing by 1.8%.

– The capital under local management reached 74,194 billion VND, equaling 44.9% of the yearly plan and climbing up 2.4% over the same period in 2014. In which, the state budget capital at provincial level reached 52,132 billion VND, equaling 43% and spreading 4.4%; the state budget capital at district-level gained 17,873 billion VND, equaling 47.8% and decreasing by 1.5%; the state budget capital at commune-level witnessed 4,189 billion VND, equaling 61.8% and decreasing by 4.8%. The realized investment capital of the State budget of some provinces and centrally-run cities was as follows: Ha Noi reached 9,827 billion VND, equaling 48.7% of the yearly plan and going down 2.5% compared to the same period last year; Ho Chi Minh city 7,767 billion VND, equaling 40.3% and jumping up 6.7%; Nghe An 2,321 billion VND, equaling 60.9% and climbing up 3.5%; Ba Ria – Vung Tau 2,105 billion VND, equaling 39.7% and rising by 0.4%; Kien Giang 1,987 billion VND, equaling 59.8% and expanding by 24.7%; Quang Ninh 1,937 billion VND, equaling 27.3% and spreading 13.1%; Vinh Phuc 1,931 billion VND, equaling 36.8% and increasing by 2.6%.

Foreign direct investment from the beginning of the year to 20^th June, 2015 attracted 757 newly licensed projects with a registered capital of 3,839.2 million USD, an increase of 15.4% in number of projects and a decrease of 21% of the capital compared to the same period in 2014. Besides, 281 projects which were licensed in previous years with additional capital of 1,654.2 million USD. Thus, the total registered capital of newly licensed projects and supplementary capital reached 5,493.4 million USD, a fall of 19.8% compared to the same period last year. The realized FDI capital in the first 6 months was estimated at 6.3 billion USD, a rise of 9.6% over the same period in 2014.

In 6 months, the manufacturing activity attracted foreign investors with a registered capital of 4,185.9 million USD, accounting for 76.2% of the total registered capital; the real estate business reached 465.5 million USD, making up 8.5%; the other sectors gained 842 million USD, representing 15.3%.

In the whole country, 40 provinces and cities directly under the Central Government had newly licensed foreign direct investment projects in 6 months, of which Dong Nai had the largest registered capital with 900.8 million USD, accounting for 23.5% of total newly registered capital; followed by Ho Chi Minh city with 765.8 million USD, sharing 19.9%; Tay Ninh 282.7 million USD, making up 7.4%; Hai Phong 233.2 million USD, accounting for 6.1%; Vinh Phuc 187.4 million USD, representing 4.9%; Ha Nam 183.5 million USD, comprising 4.8%; Tra Vinh 120 million USD, accounting for 3.1%.

Among 47 countries and territories with new investment projects in Viet Nam in 6 months, Korea ranked the top with 1,086.9 million USD, accounting for 28.3% of the total newly registered capital; followed by Turkey 660.3 million USD, accounting for 17.2%; British Virgin Islands 441.8 million USD, making up 11.5%; Hong Kong Special Administrative Region (China) 397.5 million USD, comprising 10.4%; Japan 280.3 million USD, consisting of 7.3%; Singapore 161.3 million USD, representing 4.2%; Taiwan 157.8 million USD, sharing 4.1%; China 125.7 million, accounting for 3.3% …

3. State budget revenue and expenditure

The state budget revenue from the beginning of the year to 15^th June, 2015 was estimated at 406.2 trillion VND, equaling 44.6% of the yearly estimate, of which domestic revenue was 298.8 trillion VND, equaling 46.8%; revenue from crude oil gained 32.6 trillion VND, equaling 35%; budget balance revenue from import and export 73.4 trillion VND, equaling 41.9%. In domestic revenues, tax on state-owned enterprises reached 91.2 trillion VND, equaling 41.3% of the yearly estimate; tax on FDI enterprises (excluding crude oil) achieved 61.8 trillion VND, equaling 43.4%; taxes on trade and non-state services witnessed 58 trillion VND, equaling 48.5%; personal income tax recorded 27.6 trillion VND, equaling 53.8%; environmental protection tax gained 6.6 trillion VND, equaling 51%; land use fee was24.4 trillion VND, equaling 62.7%.

The state budget expenditures from the beginning of the year to 15^th June, 2015 was estimated at 501.2 trillion VND, equaling 43.7% of the yearly estimate, of which expenditure on development investment was 80.8 trillion VND, equaling 41.4% (expenditure on basic construction investment was 78.4 trillion, equaling 41.2%); expenditure on socio-economic development, national defense, security, State management, Party and unions recorded 345.3 trillion VND, equaling 45%; debt and aid payments gained 71 trillion VND, equaling 47.4%.

4. Export and import of goods

Exports of goods

Export turnover in May reached 13.7 billion USD, 199 million USD higher than the estimated figure, of which phones and their parts were 165 million USD higher; crude oil was 99 million USD higher; footwear was 66 million USD higher; textiles and garments were 59 million USD higher than estimated.

Export turnover in June was estimated at 14.3 billion USD, increasing by 4.4% over the previous month, of which FDI sector (including crude oil) reached 10.1 billion USD, increasing by 4.2%; domestic economic sector reached 4.2 billion USD, rose by 4.8%. Export turnover of some products in June increased compared to the previous month: Textile and garment products increased by 17%; rice increased by 19%; rubber increased by 19.8%; cassava and cassava products increased by 17.7%; tea increased by 32%. Compared to the same period in 2014, export turnover in June this year increased by 16.6%, of which the FDI sector (including crude oil) increased by 25.5%; domestic sector decreased by 0.7%.

In the first 6 months of this year, export turnover was estimated at 77.7 billion USD, rose by 9.3% year on year, lower than the 15.4% increase of 6 months in 2014. If excluding the price factor, export turnover in 6 months was estimated at 80.7 billion USD, rose by 13.4% over the same period last year. The average price reduction of each product was: crude oil decreased by 47.6%; rubber decreased by 22.4%; rice decreased by 4.7%; cassava and cassava products decreased by 5.3% … Of the total export turnover of the first 6 months, the domestic economic sector reached 22.8 billion USD, dropped 2.9%; FDI sector (including crude oil) reached 54.9 billion USD, rose by 15.3%, lower than the increase of 16.1% of the same period in 2014 and accounted for 70.6% of total export turnover, that was the highest growth rate ever. If excluding crude oil, this sector accounted for 67.8% of total export turnover and increased by 20.8%, higher than the increase of 16.8% of the same period last year. This indicated that the decline was mainly due to crude oil while other commodities’ exports increased sharply.

Export turnover in the first 6 months of the year increased mainly in FDI sector with products accounting for a large proportion of the total export turnover of the whole country such as: phone of all types and their parts accounted for 99.6%; textiles and garments accounted for 60.6%; footwear accounted for 79.9%; machinery, instrument and accessory accounted for 89.6%. In the first 6 months of this year, the increase in export turnover of the FDI sector contributed 10.3 percentage points to the overall increase, while the domestic economic sector reduced by 1 percentage point of the general increase.

Among the main export products, a number of products had higher turnover than the same period last year: phones and their parts reached 14.7 billion USD, rose by 27.1%; textiles and garments reached 10.1 billion USD, rose by 9%; electronic goods, computer and their parts gained 7.4 billion USD, rose by 60.4%; footwear reached 5.9 billion USD, rose by 21.9%; machinery, instrument and accessory reached 3.8 billion USD, rose by 10.4%; wood and wooden products reached 3.2 billion USD, rose by 8.8%; cashew nuts reached 1.1 billion USD, rose by 28.4%; bags, suitcases, hats, umbrellas reached 1.5 billion USD, rose by 17.5%. Turnover of some products fell sharply compared to the same period last year, notably agricultural and aquatic products: crude oil reached 2.2 billion USD, dropped 45.7%; fishery products reached 3 billion USD, dropped 14.5%; coffee reached 1.4 billion USD, dropped 34.8%, (volume decreased 35.5%); rice reached 1.3 billion USD, dropped 8.9%, (volume decreased by 4.4%); means of transport and spare parts reached 2.7 billion USD, dropped 11.3%; iron and steel reached 856 million USD, dropped 14.1%.

Regarding the exported goods market in the first 6 months of this year, the United States continued to lead with 15.7 billion USD, rose by 18.6% compared to the same period in 2014; the following was EU with 14.8 billion USD, rose by 11.6%; ASEAN reached 9.3 billion USD, dropped 0.8%; China reached 7.7 billion USD, rose by 3.6%; Japan reached 6.7 billion USD, dropped 6.7%; South Korea reached 3.7 billion USD, rose by 22.3%.

          Regarding the structure of exported commodity groups in the first 6 months, the group of heavy and mineral products was estimated at 35.5 billion USD, rose by 14.5%, accounted for 45.7% of the total export turnover, grew by 2.1 percentage points compared to the same period in 2014. The group of light industry and handicraft industry was estimated at 31.5 billion USD, rose by 10.1%, the proportion increased from 40.2% in the first 6 months of 2014 to 40.5% in the first 6 months of this year. The group of agriculture and forestry products reached 7.7 billion USD, decreased by 3.8%, and the proportion decreased from 11.2% to 9.9%. Fishery products were estimated to reach 3 billion USD, dropped 14.5%, the proportion decreased from 5% to 3.9%.

Import of goods

Import turnover in May reached 14.9 billion USD, 538 million USD higher than the estimated figure, of which fabric was 109 million USD higher; machinery, instrument and accessory were 80 million USD higher; iron and steel were 76 million USD higher; plastic was 33 million USD higher than estimated.

 Import turnover in June was estimated at 15 billion USD, rose by 0.4% over the previous month, of which the FDI sector was estimated at 8.8 billion USD, rose by 0.2%; domestic economic sector reached 6.2 billion USD, rose by 0.7%. Import turnover in the month of some input products for production increased compared to the previous month: machinery, instrument and accessory increased by 4.9% (120 million USD); plastics increased by 2.8% in volume (9 thousand tons) and 6% in turnover (32 million USD); textile fibres increased by 10% in volume (7 thousand tons) and increased by 11.2% in turnover (15 million USD).

In the first 6 months, import turnover was estimated at 81.5 billion USD, rose by 17.7% over the same period in 2014, much higher than the 10.5% increase of the same period in 2014, domestic economic sector reached 32.7 billion USD, rose by 7.7%, was lower than the 10.6% increase of the previous 6 months; FDI sector reached 48.8 billion USD, increased by 25.5%, much higher than the 10.4% increase of the same period in 2014. If excluding price factor, import turnover in the first 6 months of the year was estimated at 84.6 billion USD, rose by 22.1% over the same period last year.

In the first 6 months of this year, import turnover of some goods increased highly compared to the same period last year: machinery, instrument and accessory were estimated at 14.1 billion USD, rose by 37.4%; fabric reached 5.2 billion USD, rose by 13%; electronic goods, computer and their parts reached 11.4 billion USD, rose by 37.5%; phones and their parts reached 5.2 billion USD, rose by 31.9%; iron and steel reached 3.7 billion USD, rose by 10%; auxiliary materials for textile and garment and footwear reached 2.6 billion USD, rose by 13.1%; plastic products reached 1.8 billion USD, rose by 22.4%; metals reached 1.8 billion USD, rose by 12.2%; automobile reached 2.9 billion USD, increased by 97.5%, of which completely built-up cars were 1.6 billion USD, increased by 186%. Some products had lower import turnover than the same period last year: Petroleum reached 2.9 billion USD, dropped 32%; plastics reached 2.9 billion USD, dropped 4%; wood and wooden products reached 1.1 billion USD, dropped 9.8%.

Regarding the imported goods market in the first 6 months, import products from China remained at the highest level with 24.4 billion USD, rose by 23.9% over the same period in 2014; South Korea reached 13.8 billion USD, rose by 31.2%; ASEAN reached 12 billion USD, rose by 6%; Japan reached 7.3 billion USD, rose by 27.7%; EU reached 4.5 billion USD, rose by 5.8%; The United States reached 3.8 billion USD, rose by 19.8%.

          Regarding the structure of imported goods in the first 6 months, the group of machinery, instrument and accessory accounted for 41.1%, dropped 3.9 percentage points compared to the same period in 2014. The group of raw materials and fuels accounted for 49.9%, increased by 4.3 percentage points. Consumer goods accounted for 9%, dropped 0.4 percentage points.

          Trade deficit in May was 1.2 billion USD, 300 million USD higher than the estimated figure. In the first 6 months of 2014, trade surplus was 1.9 billion USD, in the first 6 months of this year, trade deficit was estimated at 3.7 billion USD, equaled 4.8% of total export turnover. The trade deficit of the domestic investment sector reached 9.8 billion USD, an increase of 44% (3 billion USD) compared to 6.8 billion USD of the same period in 2014 because export dropped 2.9% and import increased by 7.7% this year. FDI sector continued to witness a trade surplus of 6.1 billion USD, dropped nearly 30% (equivalent to 2.6 billion USD) compared with 8.7 billion USD in the first 6 months of 2014 because export this year was lower than import.

5. Price index

Consumer price index (CPI)

The consumer price index in June 2015 increased by 0.35% over the previous month, which was the month with the highest price index in the first 6 months of this year[7]. Consumer prices in June increased mainly because: (1) petroleum prices was adjusted to rise on May 20^th, 2015 and diesel prices increased on 21/5 and 04/6/2015; (2) The prolonged hot weather caused an increase in the demand for electricity making the June electricity price index increase by 1.52%; (3) The price of medical services in Ho Chi Minh City was adjusted to increase from June 1^st, 2015 according to the schedule of Joint Circular No. 04/2012/TTLT-BYT-BTC; (4) June was the time of summer vacation, the demand for tourism increased, which made the tourism group price index tend to increase.

Among commodity and service groups, transport group increased the highest with 3.54%; medicine and health care services rose by 0.38% (health care services rose by 0.43%). Other groups of goods and services had price indexes that rose below the general growth rate or decreased: Housing and construction materials increased by 0.3%; culture, entertainment and tourism rose by 0.26%; beverages and cigarettes grew by 0.24%; garments, hats and footwear went up by 0.17%; household appliances augmented by 0.12%; education had a stable price index; postal services and telecommunication and food and catering services decreased by 0.03% (food decreased by 0.62%; foodstuff increased by 0.1%; eating-out service increased by 0.11%).

Consumer price index in June 2015 increased by 0.55% compared to December 2014 and increased by 1% compared to the same period last year. On average, in the first 6 months of this year, CPI only increased by 0.1%, the lowest increase in recent years. The average consumer price index in the first 6 months of this year increased by 0.86% compared to the same period last year.

Gold price index and US dollar price index

Gold price index in June 2015 decreased by 0.08% compared to the previous month; increased by 0.17% compared to December 2014; decrease by 4.77% compared to the same period last year. The US dollar price index in June 2015 increased by 0.62% compared to the previous month; increased by 1.92% compared to December 2014 and increased by 2.65% compared to the same period in 2014.

Producer price index

The producer price index of agricultural, forestry and fishery products in the second quarter of 2015 decreased by 0.56% compared to the previous quarter and rose by 0.23% compared to the same period last year, of which the producer price index of agricultural products fell by 0.5% and increased by 1.48%; forestry products increased by 1.19% and increased by 3.4%; fishery products decreased by 0.99% and decreased by 4.2%. The producer price index of industrial goods in quarter II/2015 increased by 0.36% compared to the previous quarter and decreased by 0.36% compared to the same period last year, of which the producer price index of mining products decreased by 1.16% and by 11.61%; manufacturing products fell by 0.22% and by 0.33%; electricity and electricity distribution increased by 4.64% and by 6.36%; clean water and wastewater increased by 0.65% and by 3.01%.

Input price index for production in the second quarter of this year increased by 0.15% compared to the previous quarter and increased by 2.05% over the same period last year, of which the input price index for production of some industries was as follows: Mining increased by 2.49% and by 3.88%; agriculture, forestry and fisheries increased by 0.12% and by 3.74%; processed wood, paper and print paper increased by 0.16% and by 1.37%; medicine, pharmaceutical chemistry and medical materials increased by 0.43% and 1.15%; processing, repairing and installing machinery and equipment rose by 0.41% and 3.62%.

Transport and storage price index in quarter II decreased by 0.54% compared to the previous quarter and decreased by 3.32% compared to the same period last year, of which passenger price index decreased by 0.53% and decreased by 3.87 %; freight price index fell by 0.54% and fell 4.1%; transport and storage service price index decreased by 0.53% and increased by 1.32%. The price index by kinds of transport in the second quarter was as follows: The railway price index decreased by 4.65% compared to the previous quarter and decreased by 13.15% compared to the same period last year; road and bus price index fell by 0.5% and 6%; waterways decreased by 0.57% and 1.81%.

The producer price index of service products in the second quarter of 2015 increased by 0.6% compared to the previous quarter and by 2.53% over the same period last year, of which the price index for accommodation and catering services increased by 1.17%. and an increase of 3.06%; information and communication increased by 0.14% and by 0.41%; education and training by 0.08% and 6.07%; health and social work activities increased by 0.35% and increased by 1.93%.

Merchandise export and import price index

The merchandise export price index in the second quarter of this year decreased by 1.09% compared to the previous quarter and decreased by 3.61% compared to the same period last year, of which the price index of some commodities fluctuated compared to the same periods was as follows: Vegetables increased by 1.03% and decreased by 1.64%; chemicals increased by 1.64% and 7.89%; pepper decreased by 1.36% and increased by 41.19%; paper and paper products increased by 1.21% and by 5.22%.

The merchandise import price index in the second quarter decreased by 2.09% compared to the previous quarter and decreased by 4.66% compared to the same period last year, of which the fishery price index decreased by 1.76% and decreased by 5.3%; vegetables and fruits decreased by 0.31% and decreased by 2.24%; chemicals decreased by 3.36% and 6.99%.

The merchandise term of trade[8] in the second quarter of this year increased by 1.02% compared to the previous quarter and increased by 1.1% compared to the same period last year, of which merchandise term of trade of fishery products increased by 0.73% and increased by 3.75%; chemicals increased by 5.17% and 16%; wood and wood products increased by 2.63% and by 4.27%; iron and steel increased by 8.44% and by 12.03%; vegetables and fruits rose by 1.34% and 0.61%.

III. SOCIAL ISSUES

1. Labor and employment

As of 01 July 2015, labor force aged 15 years and over of the whole country was estimated at 53.86 million persons, a year on year increase of 147 thousand, of which male employees was 27.75 million persons, made up 51.53%; female employees was 26.11 million persons, accounted for 48.47%. By region, the employed population aged 15 years and over working in urban and rural area was 16.81 million persons and 37.05 million persons respectively with the corresponding share of 31.2% and 68.8%.

As of 01 July 2015, labor force in working age was estimated at 47.79 million persons, not much changed compared to the same period last year, of which male employees was 25.64 million persons, made up 53.65%; female employees was 22.15 million persons, accounted for 46.35%. Labor force in working age working in urban and rural area was 15.45 million persons and 32.34 million persons respectively with the corresponding share of 32.34% and 67.66%.

Over the last 6 months, the employed population aged 15 years and over was estimated at 52.55 million persons, of which employees of the agriculture, forestry and fishery sector were 23.7 million, made up 45.1% of the total employed population; the industry and construction sector was 11.46 million persons, the corresponding share of 21.8%; and the service sector was 17.39 million persons, with the corresponding share of 33.1%.

Over the last 6 months, unemployment rate of labor force in working age was estimated at 2.44%, of which urban was 3.35% and rural area was 2.00%. In Q2 2015, unemployment rate of labor force in working age was estimated at 2.45%, of which urban area was 3.27%; and rural area was 2.06%.

The youth unemployment rate (aged 15 to 24) in 6 months 2015 was 6.71%, of which urban and rural was 11.04% and 5.15%, respectively. The youth unemployment rate (aged 15 to 24) in Q2 2015 was estimated at 6.82%, of which urban and rural was 11.12% and 5.3%, respectively.

The unemployment rate aged 25 years and over in 6 months 2015 was 1.38%, of which urban and rural was 1.89% and 1.13%, respectively. The unemployment rate 25 years and over in Q2 was 1.34%, of which urban and rural was 1.8% and 1.12%, respectively.

In the first 6 months 2015, unemployment rate of labor force in working age was estimated at 2.52%, of which in urban and rural area was 1.29% and 3.11%, respectively. In Q2 2015, unemployment rate of labor force in working age was estimated at 2.62%, of which in urban and rural area was 1.43% and 3.18%, respectively.

2. Living standards and social security

In June, the whole country witnessed 17.2 thousand households suffering from food shortage a year on year fall of 25.2%, corresponding to 75.8 thousand persons suffering from food shortage, declined by 21.9%. Generally, for 6 months of 2018, the whole country witnessed 183.5 thousand households suffering from food shortage a year on year fall of 32.3%, corresponding to 756.2 thousand persons suffering from food shortage, declined by 34.4%. 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 16.4 thousand tons of food and 8.5 billion VND, in June alone supported 1.2 thousand tons of food. In 2014, the rate of poverty households identified by Government standards applicable to 2015-2020 [9] was 8.4%, a year on year decrease of 1.4 percentage points, of which the rate of poverty households in urban area was 3%, decreased by 0.7 percentage points; the rate of poverty households in rural area was 10.8%, down 1.9 percentage points.

According to the preliminary report, the total funding for social security and poverty reduction in the 6 months of was 3,268 billion VND, including: 2,179 billion VND of gifts and assistances for policy beneficiaries; 765 billion VND to support poor households and 324 billion VND for hunger-relief and other social reliefs. Besides, over 5.9 million health insurance cards, free health care books/cards were donated to policy beneficiaries in the whole country.

3. Education and Training

In the school year 2014-2015, there were 14,179 kindergarten schools nationwide, an increase of 338 schools compared to the previous school year; 15,277 primary schools, a decrease of 60 schools; 10,293 lower secondary schools, an increase of 3 schools; 2,386 upper secondary schools, a decrease of 18 schools; 585 basic general schools, a decrease of 7 schools and 381 secondary schools, a rise of 27 schools. The number of kindergarten teachers was 215.5 thousand persons, rose by 5.2% compared to the same period of the previous school year; 856.7 thousand classroom teachers in general education, rose by 0.2%, including: 392.1 thousand primary school teachers, an increase of 1.3%; 312.6 thousand lower secondary school teachers, decreasing by 1% and 152 thousand upper secondary teachers, a reduction of 0.4%. In this school year, there were 3.8 million children attending kindergartens nationwide, a rise of 3.9% against the previous school year; 15.1 million pupils of general education, an increase of 1.2%, including 7.6 million primary schools pupils, an increase of 1.5%; 5.1 million lower secondary school pupils, a rise of 3.4% and 2.4 million of pupils in upper secondary schools, a decrease of 3.7%. As of June 2015, there were 32 out of 63 provinces and cities directly under the Central Government gained universal preschool education for five-year-old children.

In 2014, there were 436 universities and colleges nationwide, a year on year increase of 9 institutions, including 347 public universities and 89 non-public universities. The number of university and colleges lecturers was 91.2 thousand persons, decreasing by 0.5% compared to that in 2013, of which the number of lecturers in public universities and colleges was 73.9 thousand persons, a decrease of 1.8% made up 81% of the total lecturers. The number of students in universities and colleges in 2014 was 2.4 million persons, a year on year increase of 14.7%; reaching 261 students per 10,000 persons, the number of universities and colleges graduates was 441.8 thousand persons, rose by 8.7%. Also in 2014, there were 102.7 thousand post-graduate students nationwide and 5.4 thousand students were trained in medical specialties. The number of post-graduates was 32.5 thousand persons and the number of medical specialties graduates was 2.5 thousand persons.

The number of professional secondary schools in 2014 was 312, a year on year increase of 17 schools, including 186 public schools and 126 non-public schools. The number of professional secondary school teachers was 11 thousand persons, down 4.3%; the number of professional secondary school students was 349.7 thousand persons, down 17.1%.

4. Culture – Sport

In the first 6 months, many cultural activities were organized on a large scale such as: Cultural activities towards the island homeland; the 27th National Art Photo Exhibition in Hai Phong; the 21st Don ca tai tu Festival in Long An; International Film and Television Technology Exhibition – Telefilm 2015, etc.

Mass sports took place in 6 months with activities: a day of Olympic jogging for people’s health; Sports Games for Ethnic Minorities in Region II in Kon Tum; the 3rd traditional wrestling in Hanoi; Traditional Martial Arts Competition for LetsViet championship in Ho Chi Minh City, etc.

Regarding high performance sports, Viet Nam Sport Delegation won 155 gold medals, 121 silver medals and 121 bronze medals. At the 28th Southeast Asian Games (28th SEA Games), Viet Nam Sports Delegation successfully defended the 3rd position out of 11 participating countries  with 73 gold medals, 53 silver medals and 60 bronze medals, breaking 13 SEA Games records.

5. Epidemic diseases and food poisoning

In June, the whole country witnessed 3.6 thousand cases of hand, foot and mouth disease, 2.2 thousand cases of hemorrhagic fever, 67 thousand viral encephalitis (3 deaths); 32 cases of typhoid and 10 cases of meningococcal meningitis.

For 6 months, the whole country witnessed 19.7 thousand cases of hand, foot and mouth disease; 13 thousand cases of hemorrhagic fever; 315 cases of viral encephalitis (13 deaths); 154 cases of typhoid; 46 cases of meningococcal meningitis (3 deaths). Since the beginning of the year, there was no case of new cholera and influenza type A (H5N1).

In the month, 783 cases of HIV infection were detected bringing the total number of alive HIV-infected persons over the country was 225.6 thousand persons as of 17 June 2015, and the number of cases turned to AIDS was 77.5 thousand persons. The number of persons died of HIV/AIDS nationwide was 79.2 thousand persons.

In the month, there were 17 food poisoning cases, poisoned 308 persons, of which three deaths). From beginning of the year, there were 59 severe food poisoning cases, poisoned 2206 persons, of which 13 deaths.

6. Traffic accidents

In June (from 16 May to 15 June), there were 1861 traffic accidents occurred nationwide, including 868 traffic accidents from less serious to more and 993 traffic collisions, causing 743 deaths, 468 injuries and 1,127 slight injuries. Compared to the same period last year, the number of traffic accidents decreased by 9.4% (traffic accidents from less serious to more decreased by 1.3%; the number of traffic collisions decreased by 15.6%); the number of deaths decreased by 2.4%; the number of injuries rose by 84.3% and the number of slight injuries decreased by 22.4%.

Generally, for the first 6 months of 2015, there were 11,179 traffic accidents occurred nationwide, including 5,161 traffic accidents from less serious to more and 6,018 traffic collisions, causing 4,478 deaths, 2983 injuries and 7,166 slight injuries. Compared to the same period last year, the number of traffic accidents in the first 6 months of this year decreased by 12.8% (traffic accidents from less serious to more decreased by 3.5%; the number of traffic collisions decreased by 19.5%); the number of deaths decreased by 4.5%; the number of injuries fall by 5.2% and the number of slight injuries decreased by 21.4%. On average 62 traffic accidents occurred a day in 6 months of 2015 nationwide, including 29 traffic accidents from less serious to more and 33 traffic collisions, caused 25 deaths, 17 injuries and 40 slight injuries.

7. Damages caused by natural disasters 

In 6 months, natural disasters affected production and living condition across the country. According to preliminary reports, natural disasters caused 46 deaths and missing, 55 injuries; over 270 thousand houses were collapsed and swept away; 11.1 thousand houses were flooded, hit by landslide, roof ripped-off; 18 thousand hectares of rice and arable crops were damaged. Localities suffered much from natural disasters: Quang Ngai suffered 7 deaths and missing and 10 wounded; over 800 houses collapsed, roof ripped-off and flooded; 4.8 thousand hectares of rice and arable crops were flooded and damaged; Nghe An suffered 2 deaths and missing and 7 wounded; over 1.7 thousand houses collapsed, roof ripped off and flooded; 4.1 thousand hectares of rice and arable crops were damaged. The total value of damage caused by natural disasters in the first 6 months was estimated at 474.3 billion VND, of which Quang Ngai suffered 165.2 billion VND and Nghe An suffered 85.4 billion VND. According to preliminary reports, the total amount of relief allocated for localities affected by natural disasters from the beginning of the year was nearly 6.7 billion VND.

8. Environment protection, fire and explosion prevention

In June 2015, 902 cases of violating regulations of environment protection were found, of which 396 cases were addressed with total fine of over 12.2 billion VND. From the beginning of the year, nearly 5.2 thousand cases of environmental violations across the country were found, of which 2.1 thousand cases were addressed with a total fine of nearly 76.4 billion VND.

In this month, there were 317 cases of fire and explosion across the country, causing 12 deaths and 20 injuries, with an estimated damage of 38.2 billion VND. Generally, for the first 6 months, there were 1,713 cases of fire and explosion across the country, causing 60 deaths and 129 injuries, with an estimated damage of 319.3 billion

In general, the socio-economic situation in the first 6 months of 2015 remained stable and achieved some good results Domestic production witnessed many improvements. Growth tended to have a positive trend. Macro balances remained stable. However, our economy will continue to face many difficulties and challenges when integrates deeper due to low competitiveness, weak product brands and reputable businesses. In addition, supply and demand in the world market has many complicated changes, causing competitive pressure for Vietnam’s exports. Consumption of agricultural products in the country shows many shortcomings, which significantly affect production and farmers life. In order overcome difficulties and challenges and implement the socio-economic development objectives in 2015, in the following months, the branches, levels and localities need implement the following main contents:

Firstly, to improve the investment and business environment through diversifying forms of tax incentives and interest rate support for businesses, especially supporting industrial product manufacturing enterprises to create conditions for businesses to develop, expand production, increase revenue and profits to strengthen market management, combat smuggling and fake goods to protect domestic production. To promote administrative procedure reform, to simplify customs procedures, and reform tax procedures. To encourage businesses to innovate technology, equipment, improve competitiveness. To build and develop enterprises towards professional production and business to be proactive and ready for deep integration into the world economy with the creation of quality products and strong brand names.

Secondly, to enhance trade promotion, reduce trade deficit through the preparation of goods sources to ensure the requirements of quality, design, food safety to export to markets where Free Trade Agreements were signed (South Korea, etc.). To boost activities to provide market information, market research and development to meet the demand for efficient consumption of domestic products. Production and export enterprises need to actively improve the competitiveness, product quality, branding products, saving costs and innovating training to improve the quality of human resources to meet the increasing demands of international economic integration. To complete tax policies and legal systems related to import and export.

Thirdly, to have an effective solution to overcome the drought and facilitate the cultivation of all summer-autumn rice area in the Central region and supplement water sources for industrial crops, especially coffee trees in the Central Highlands. To continue to implement agricultural restructuring towards improving added value and sustainable development. To promote agricultural production in the direction of forming a value chain, from production, purchasing, processing, preservation to consumption to create a brand for agricultural products. To step up intensive farming activities, form large specialized cultivation areas instead of the current scattered production models. To use and rationally allocate labor force in the agricultural sector in parallel with enhance the cultural level and technical level of farmers. To actively research and apply science and technology in producing and processing agricultural products. To focus on developing products with comparative advantages, competitiveness and consumer market.

Fourthly, , to focus on handling public debt, solve and control bad debt on the basis of developing specific, transparent and clear strategies. To speed up the process of divesting from state enterprises. To simultaneous orchestrate monetary policy instruments, actively manage flexible and reasonable exchange rates, and support bad debt settlement. To control credit quality and restructure credit towards prioritizing the focus on loans for agriculture, rural areas, export, supporting industries, small and medium enterprises, high technology application enterprises . To strictly and effectively manage foreign currency market to stabilize the exchange rate.

Fifthly, to build and comprehensively complete the legal system related to social security. To promote the implementation of socio-economic development programs associated with job creation, increase income for people through preferential credit policies, technical infrastructure investment, rural career development, craft villages and farms. To mobilize to the utmost resources for the implementation of hunger eradication and poverty alleviation programs and job creation; clean water and environmental sanitation; illiteracy eradication and education universalization …, and at the same time strengthen the system for monitoring and evaluating the effectiveness of programs to ensure sustainable poverty reduction.

[1] The 6-month increase of the industrial activities in some years from 2011 to 2014 was 9.24%, 8.24%, 4.95%, 4.95%, respectively.

[2] The 6-month growth of the manufacturing in years from 2012 to 2014 was 8.96%, 5.61%, 6.61%, respectively.

[3] The first 6-month IIP of some years from 2012 to 2014 was 6.1%, 5%, 6%, respectively.

[4] In the same period last year, the IIP of the mining and quarrying decreased by 1.5 %; however, the IIP of the manufacturing, the production and distribution of electricity, the water supply, sewerage, waste management and remediation activities increased by 7.9 %, 11.4 %, 6.1%, respectively.

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

[6] In the second quarter of 2015, there were 26375 newly registered enterprises with the registered capital of 171.2 trillion VND. Compared to the previous quarter, the number of newly established enterprises increased by 38.4%; the registered capital rose by 53.9%. Compared to the same period last year, the number of newly established enterprises went by 39%; the registered capital expaned 28.7%.

[7] Compared to the previous month, January 2015 CPI decreased by 0.2%; February decreased by 0.05%; March increased by 0.15%; April increased by 0.14%; May increased by 0.16%.

[8] Export price index of goods/import price index of goods.

[9] The government’s poverty standard for the period 2015-2020 was updated according to the consumer price index for 2014 of 605 thousand VND for rural area and 750 thousand VND for urban area.