Vietnam’s economic situation for the 2 beginning months of 2007

1. Outputs of agriculture, forestry and fishery

Agriculture: Winter-spring rice: As of 15/2, the country had 2722.2 thousand ha cultivated, equaling 102.4% of same period last year, of which provinces in the North had 936.5 thousand ha under cultivation, equaling 110.9%, provinces in the South had 1,785.7 thousand ha under rice sowing, equaling 98.4%.

The cultivation progress of other spring crops was slow due to shortage of water: there were 256.1 thousand ha of maize under cultivation, equaling 93%, 93.8 thousand ha of sweet potato, equaling 96.6%; 38.4 thousand ha of groundnut, equaling 91.9%; 110 thousand ha of peanut, equaling 87.9%; 70.6 thousand ha of soybean, equaling 109.1% and 288.4 thousand ha of vegetables, equaling 106.4% of last year’ same period.

Forestry: Generally for 2 months of 2007, concentrated planting areas were 24.6 thousand ha, rising by 0.7% over same period last year; separated plants were 40.5 million, increasing by 0.3%; wood cut production was estimated at 371.6 thousand m³_, rising by 0.7%; destroyed forest areas were 240 ha, of which fired forest was 230 ha.

Fishery: Production of fishery for 2 months of 2007 was estimated at 575.2 thousand tons, increasing by 1.1% against same period last year, of which farmed products were 196.1 thousand tons, rising by 7.9% and caught products were 379.1 thousand tons, falling by 2.1%.

2. Industrial output

The industrial production value for 2 months at constant prices was estimated rising by 17.5%, of which the state sector rose by 8.8%; the non-state sector by 19.8%; the FDI sector by 22.0%

Main items in 2 months of 2007 maintained higher growth rates than the general growth rate like: pure coal rose by 24.9%, processed seafood by 18.4%, paper and covers by 26.3%, insecticide by 27.6%, medicaments in tube of all kinds by 22.2%, cement by 23.6%, tiles by 36.8%, sanitary earthen wares by 27.9%, Diesel motors by 35%, assembled automobiles by 36.8%, assembled motorbikes by 25.8%…However, for 2 months there had some products decreased or increased lower than the rates of same period last year: crude oil decreasing by 1.9%; liquidized gas by 7.9%, knitted clothing by 10.7%, chemical fertilizers by 9.2%, medicaments in tablets by 8.5%, machine tools by 13.1%, electric motors by 23%, bicycles by 59.3%…

The industrial production value in some provinces/cities had high growth rates: Hai Phong increased by 18.1%, Vinh Phuc by 58.2%, Ha Tay by 20.3%, Hai Duong by 37.7%, Binh Duong by 23.2%, Dong Nai by 27.4%, Can Tho by 18.8%… However, Ha Noi rose by 16.3%, Ho Chi Minh City by 16.4% (those rates were lower than the general growth of the whole country) and Ba Ria – Vung Tau only rose by 2.1%.

3. Investment

Capital investments under the state budget in 2 months of 2007 were achieving VND 11.9 trillion, accounting for 12.4% of the whole year plan. Central investment was VND 4.6 trillion, equaling 13%; local investment was 7.26 trillion VND, equaling 12.1% of the whole year plan.

Foreign direct investment: From 1/1/2007 to 22/2, there have been 43 granted license projects with a total capital registered USD 621.8 million (USD 14.5 mill. per project on average); 9 projects were funded with more capital of USD 120.4 million. Thus, total funds were USD 742.2 million.

For 2 beginning months, industrial and construction sector had 25 granted license projects with a total capital registered USD 306.8 million, accounting for 58.1% in number of projects and 49.3% in capital registered. The service sector had 14 granted license projects and nearly 281.6 million USD, accounting for 32.6% in projects and 45.3% in capital registered, the agriculture, forestry and fishery had 4 projects and 33.4 million USD, accounting for 9.3% in number of projects and 5.4% in total capital registered.

Among 20 provinces/cities having granted license projects, Ha Noi had 17 projects with a total capital registered USD 53 million; Ba Ria – Vung Tau: 2 projects and 167.2 million USD; Hai Duong: 2 projects and 31.6 million USD…

4. Trade, prices and services

Total retail sales of consumer goods and services for 2 months at current prices were estimated achieving 112 trillion VND, increasing by 24.1% over same period last year. Of which the state sector, accounted for 11.1% of the total, decreased by 0.5%; the individual sector accounted for 56.4% and 26.9% increased; the private sector: 28.7% and 30.5% and the FDI sector: 2.8% and 30.8% respectively.

Consumer prices in 02/2007 had higher rates than previous months and generally this increasing tendency was not different from the trend of 2 months of 2005 & 2006.

As compared with last month, the consumer price indexes rose by 2.2%, of which, restaurant and catering services grew by 3.5% (food rose by 2.8% and foodstuff was 3.8%); drinks & cigarettes by 2.5%; culture, sports and entertainment by 2.1%; housing and construction materials by1.9%,  textiles, hats & footgear by 1.3%; transportation and communication only increased by 0.1%, of which telecommunication seem not to change over last month. As compared with the end of 2006, consumer prices in February  rose by 3.2%, of which housing and construction materials by 5%, restaurant and catering services by 4.6%, drinks & cigarettes by 4.2%; textiles, hats & footgear by 2.3%; culture, sports and entertainment by 2.2%…

Gold prices in 02/2007 grew by 2.1% over last month and only rose by 0.9% against the end of last year, due to gold prices in January decreased; however the gold prices in this month still rose by 17.1% over February of 2006. USD prices contunued decreasing by 0.2% over last month and by 0.3% over December of 2006, but USD prices slightly increased by 0.6% against same period last year.

Total trade turnovers for 2 months of 2007 were estimated at USD 14.59 billion, raising by 34.5% against same period last year, of which exports grew by 23.5% and imports by 45.8%. As import rates were much higher than export rates, trade deficits for 2 months were USD 1.07 billion, equaling 15.9% of export turnovers (same period last year, trade deficits were 1.9% of export value because export growth was low).

Export turnovers for 2 months were estimated at 6.76 billion USD, of which domestic sector gained nearly 3 billion USD, rising by 32.3%; FDI sector (excluding crude oil) was 2.7 billion USD, increasing by 41.4%. Export turnovers of main items (excluding crude oil and rice) for 2 months increased over same period last year.

For 2 months export turnovers of crude oil achieved nearly 1.1 billion USD. Crude oil accounted for the highest turnovers but this rate still decreased by 17.6% against same period last year. Export turnovers of textiles & sewing products were 1.02 billion USD; footgear: 660 million USD, increasing by 23.6%; electronics and computers increasing by 21.7%; plastic products by 56.2%; wood products by 42.1%; seafood: 431 million USD and increasing by 25.7%… Some agricultural products had high export turnovers like: vegetables rising by 28.7%, tea by 24.6%, cashew nut by 24.1%; peppers by 22.8%; rubber by 4% but rice decreasing by 39.9%

Import turnovers for 2 months were estimated achieving at 7.83 billion USD, rising by 45.8%, of which domestic sector gained 5 billion USD, increasing by 51% and FDI sector was 2.82 billion USD, rising by 37.5%.

Import turnovers of all main items for domestic production increased but at different levels: machines, equipment, tools and spare parts were 1.4 billion USD, rising by 80.5%; petroleum: 879 million USD, by 12.8%. Steel increased relatively high in both volume and turnover (import volumes were 937 thousand tons, rising by 45.5%; import turnover was 518 million USD, rising by 69.3%)…

Transportation

Passenger carriage for 2 months was estimated at 239.1 million persons and 10.1 billion passengers.kilometers, increasing by 8.2% in passengers carried and by 8.8% in passengers.kilometers over same period last year. Passengers carriage in all types increased but transporting by rail way decreased by 7.5% in passengers carried and increased by 4.1% in passengers.kilometers due to the increasing in carriage of long journey. Transportation by land way gained 206.9 million (accounting for 86.5%) and 6.5 billion passengers.kilometers, increasing by 9.4% in passengers carried and by 9.3% in passengers.kilometers; by airway: 6.1% and 10.2%; by seaway: 5.8% and 5.7%; by river way: 1.9% and 2.2% respectively.

Goods carriage for 2 months was estimated at 66.4 million tons and 16.2 billion tons.kilometers, increasing by 8.1% in tons and by 7.5% in tons.kilometers against same period last year. Of which, central management was 8.4 million tons and 12.4 billion tons.kilometers, increasing by 7.2% in tons and by 7.4% in tons.kilometers; local management was 58 million tons and 3.8 billion tons.kilometers, increasing by 8.2% in tons and by 7.9% in tons.kilometers. Goods carriage by rail way increased higher than the general growth, 11.3% in tons and 19% in tons.kilometers, by land way: 8.9% and 9.1%; by seaway: 5.6% and 7%; by river way: 6% and 6.1% respectively, but by airway decreased by 3.5% in tons and by 8.4% in tons.kilometers.

International visitors to Viet Nam for 2 months of 2007 were estimated at 749 thousand persons, rising by 11.3% over same period last year. Visitors came to Viet Nam mainly by airways, which increased by 25.1%; visitors came by land were the same as the rate of 2 first months of 2006 and land way decreased by 29.9%. Visitors for tourism rose by 14.9%; for business by 16.3%, for visiting relatives by 8.7% but for other purposes decreased by 10.4%.

Post & communication: As of the end of February 2007, there were over 30 million telephone subscribers, achieving 36 telephones per 100 persons on average; 4.2 million internet subscribers. Post & communication turnovers for 2 months were estimated at 8.2 trillion VND.

5. Government revenues and expenditures

Total revenues: As estimated, from 1/01/2007 to 15/2/2007, total revenues accounted for 10.4% of the estimation for the whole year. Domestic revenues were 10.9%, of which 10.3% came from the state sector, 13.0% from taxes on non-state industrial, trade and services activities, 9.3% from FDI sector (excluding crude oil), 10.2% from high income taxes, 12.8% from petroluem fees and 16.1% from other fees. Revenues came from crude oil accounted for 9.6% of the year estimate, 10.2% from export – import activities, 10.8% from foreign aid.

Total expenditures: from 1/01/2007 to 15/2/2007, total expenditures accounted for 11.0% of the year estimate, of which investment and development expenditures were 9.9% (only capital construction expenditures were 10.2%); debt and aid payments: 13.8%; current expenditures: 11.4% and salary inform: 11.8%.

Tags: Vietnam economic 2007, Vietnam economic statistics, Vietnam's economy situation