Vietnam’s economic situation for the 10 months of 2006

1. Output of agriculture, forestry and fishery

Agriculture:

Winter rice crop: As of mid  October 2006, provinces in the North reaped 827.4 thousand hectares of winter-rice, accounting for 69.5% of the cultivated area and equaling 102.1% of last year same period, of which provinces in the Red River Delta reaped 401.2 thousand hectares, equaling 104.1%, provinces in the center north 183,000 hectares, equaling 107%. Generally, rice productivity was approximately equal to that of same period last year since there were rains in some places where the rice was in the blossom period, and harmed seriously by brown insects so people had to reap earlier. Provinces in the south central coast and the central Highlands continued sowing winter rice but estimated cultivated areas were lower than same period last year. Large areas of winter rice in the southeast region were damaged by insects so the productivity was probably lower than last year same period.

Summer-autumn rice crop: As of mid October 2006, the country reaped 2145.1 thousand ha of summer-autumn and autumn-winter rice crop, accounting for 92% of sowed area, of which provinces in Mekong River Delta harvested 1737.6 thousand ha, equaling 91% of the sowed area. According to preliminary estimate, the summer-autumn rice productivity in the whole country decreased from 100 to 300 kg/ha as compared with same period last year due to harmful insects and unfavorable weather.

Other crops: Up to now, in the whole country there were 180.5 thousand ha of maize under cultivation, equaling 110.9% of last year same period, sweet potato: 61 thousand ha and 125.8%; soy-bean: 66.5 thousand ha and 130.6%; beans and vegetables: 95.6 thousand ha and 137.4%.

Animal feeding: Livestock vaccination has been promoted by localities however the progress is slow due to lack of medicine. At present, 58 provinces/cities have taken 2nd phase of vaccination to the livestock covering 104.5 million heads, mainly chickens.

Forestry

Generally for 10 months, the area of concentrated forestation in the country was estimated at 162.3 thousand ha, rising by 2.8% over same period last year, the number of dispersed plants at 187.4 million, falling by 0.9%; wood cut production was 2601.3 thousand m3, rising by 0.2%. Area under care increased by 1% and under regeneration by 0.8%.

Forest protection from fire and illegal exploiting has been paid much attention by provinces. Therefore, areas damaged by fire and illegal cutting decreased much. General estimating, damaged areas were 4721.5 ha, falling by 46.8% against same period last year.

Fishery

Production of fishery for 10 months of 2006 was estimated at 3045.7 thousand tons, increasing by 8.2 % as compared with last year same period, of which farmed products were 1343.1 thousand tons, increasing by 19.4%, caught products: 1702.6 thousand tons, increasing by 0.8%.

2. Industrial output

The industrial production value for 10 months of 2006 at 1994 constant prices estimated at VND 411.6 trillion, increasing by 16.9% against same period last year, of which the state sector rose by 9.3; the non-state sector by 22.3%; the FDI sector by 19.5%  (petroleum  and gas decreased by 4.9%, others rose by 25.1%).

Main branches with high proportions in the industrial value and sustainable growth rates have played a decisive part in the high rate of the industry as a whole. Coal rose by 20.8%; foodstuffs and drinks took a proportion of 21.4% and rose by 17% approximately, leather and tanning products by more than 18%; wood products by more than 28.8%; rubber and plastic products by more than 26%; metal products by 24% approximately.

Almost all provinces/cities of large industrial scales had higher rates like Ha Noi rose by 17.6%; Hai Phong by 17.6%; Vinh Phuc by 21.1%; Ha tay by 22.5%; Hai Duong by 23.6%; Quang Ninh by 18.1%; Binh Duong by 19.1%; Dong Nai by 20.6%; Can Tho by 21.8%. Privately, HCM City  and Ba Ria Vung Tau rose only by 13.2% and 5.4% respectively mainly due to a fall in crude oil production.

3. Investment

Capital construction investment under the concentrated State budget in 10 months in 2006 estimated at VND 50.3 trillion, accounting for 89.6% of the year plan. Central investment was VND 15.4 trillion, accounting for 88.5% of the year plan. Of which, the Ministry of Transportation gained VND 5.45 trillion, equaling 81.9%, the Ministry of Construction: VND 2.39 trillion, equaling 115.9% (mainly due to the accomplishment of building of the National Conference Center to serve APEC to be held in November 2006), the Ministry of Agriculture and Rural Development: VND 1.75 trillion, equaling 87.9% of the year plan.

Foreign direct investment: from 1st January to 20 October 2006, there have been 705 granted license projects with a total capital registered USD 4.78 billion, USD 6.8 million per new licensed project on average. In addition, there were 422 projects funded with more capital of about 1.71 billion USD; making the total capital in 10 months to nearly 6.5 billion USD, (new and additional funds both).

4. Trade, prices and services

Total retail sales of consumer goods and services for 10 months of 2006 were at VND 470 trillion at current market prices, increasing by 20.5% against same period last year. Of which the state sector gained VND 59 trillion, increasing by 9.2%; the collective  sector VND4.6 trillion and 20.5%; the individual sector VND 294.2 trillion and 21.9%; the private sector VND 100.1 trillion and 24.1% and the FDI sector VND 12.1 trillion and 20.5% respectively.

Consumer prices in October 2006 rose by 0.2% against last month, falling 0.1-point percent to the rate 0.3% in September. Among commodity and service groups, prices of food and eating services rose by 0.5% mainly due to 1.3% rising in food prices; housing and construction materials and means of transport and post office decreased against last month, while medical products and health services rose by 0.6%; education by 1.6%. Prices of other groups commonly rose from 0.2-0.5%.

Gold prices in October 2006 continued falling against last month, equaling 96.9% of September, mainly due to a continuous fall in the world’s gold market. Despite of that, domestic gold prices, although fell, were still higher than international gold prices due to people’s demands for hoarding of gold. US dollar prices rose by 0.2% against September and 0.8% against December last year.

As estimated, total trade turnovers for 10 months were at USD 69.74 billion, increasing by 22.3% against same period last year, of which export gained 32.87 billion USD, rising by 24.2%; import 36.87 billion USD, increasing by 20.7%. The export growth rate was higher than the import growth rate so the trade gap was narrowed considerably; trade deficits in 10 months were 3.997 billion USD, equaling to that of last year and 12.2% of export turnovers (in last year’ same period the rate was 15.5%).

Generally, the export value accounted for 87.1% of the 2006-year plan, of which the domestic economic sector gained 13.85 billion USD, increasing by 22.3% against same period last year; the FDI sector (excluding crude oil) 11.91 billion USD and rising by 32.4%; crude oil 7.1 billion USD, rising by 15.9%.

As estimated, import turnovers in   10 months were at 36.87 billion USD, rising by 20.7% against same period last year and accounting for 86.7% of the 2006-year plan. Of which, the domestic economic sector achieved 23.34 billion USD, rising by 20.6%; the FDI sector 13.53 billion USD, rising by 20.8%.

International visitors to Viet Nam for the 10 months 2006 were at 2.95 million, increasing by 3.6% over last year same period. Of which arrivals for tourism were 1.68 million, increasing by 0.7%; for business by 19.6%; 469.3 thousand for business, rising by 17.5%; 486.8 thousand for visiting relatives, rising by 13.7% but arrivals for other purposes were 316.7 thousand, decreasing by 10.3%.

5. Government revenues and expenditures

As estimated, total revenues from beginning of the year to 15 October accounted for 77.9% of the 2006-year plan. Of which, 73.5% were from domestic revenues; 87.9% from crude oil; 75.2% from trade activities; 96% from aids. Among domestic revenues, 76% were from the state economic sector; 59.2% from FDI sector (excluding crude oil); 79.3% from taxes on economic activities in non-state sector; 79.5% from income taxes levied on people earning high income; 66.6% from petroleum fees; and 90.1% from other fees.

Total expenditures from beginning of the year to 15 October accounted for 76.6% of the 2006-year plan. Of which, development  & investment expenditures were 72.9% (capital construction investment 72%); current expenditures 81.6%; payments to debts and aids 85.3%.

Tags: Vietnam economic 2006, Vietnam economic statistics, Vietnam's economy situation