Vietnam’s economic situation for the year 2006

1. General economic aggregates

According to estimates, the 2006 gross domestic products (GDP) at constant prices increased by 8.17% against last year, of which the agriculture, forestry and fishery rose by 3.4%; the industry and construction by 10.37%; the service by 8.29%. For 8.17% GDP general increased rate, the agriculture, forestry and fishery contributed 0.67-point percent; the industry and construction 4.16 points percent and the service 3.34 points percent.

The economic structure continues transforming towards increase in the industry and construction and the service, and decrease in the agriculture, forestry and fishery. The share of the industry and construction rose from 40.97% in 2005 to 41.52% in 2006; the service from 38.01% to 38.08%; but the agriculture, forestry and fishery fell from 21.2% to 20.40% respectively.

In 2006, total government revenues were estimated equaling 110.2% of the yearly estimate. Of the total, domestic revenues accounted for 103%; crude oil: 126%; trade balance revenues: 106.3%; aids: 148%. Total government expenditures were equivalent to 108.4% of the yearly estimate, meeting plans of development investment and current expenditures, of which 74.2% were made up with domestic loans and 25.8% with foreign loans. 

2. Agriculture, forestry and fishery

Output values of this sector in 2006 (at constant prices) were estimated increasing by 4.4% over 2005, of which agriculture rose by 3.6%, forestry: 1.2% and fishery: 7.7%.

Cereal production in 2006 was estimated at 39.65 million tons, increasing by only 0.1% over last year, equaling additional 26.4 thousand tons. Other food crops had different growth rates: sweet potato rose by 0.8%, cassava by 14.9%, vegetables by 6.4%, sugar cane by 4.9% …but soybean fell by 11.8% and peanut by 5% against last year.

Animal husbandry:

According to survey results, there were 2.92 million buffalos, 6.51 million oxen (of which 113.2 thousand were cows), 26.86 million pigs and 214.6 million fowls (of which 152 million were chickens) as of 1/8/1006. Total live weights for slaughter gained 3.1 million tons, increasing by 9.3% against last year.

Forestry:

As estimated, the country had 184,000 hectares of concentrated forest, equaling 103.7% over last year; 202.5 million dispersed plants, equaling 99.2% of last year; 486,700 hectares of forest under care, increasing by 0.9% over last year; 911,400 hectares of recycled forest, increasing by 0.4%; wood-cut production (mainly planted wood): 3,011.2 thousand m³, up by 0.5% against last year.   Fishery production in 2006 was estimated at 3,695.9 thousand tons, increased by 6.6% against last year; of which farmed aquatic products  increased by 14.6%; caught products by 0.7% (offshore catching by 0.9%) . Of the total production, fish gaine

3. Industrial output

Industrial output values at 1994 constant prices were estimated at VND 490.82 trillion, increasing by 17% against last year, of which state owned enterprises increased by 9.1% (central management by 11.9%, local management by 2%); the non-state sector by 23.9%; the FDI sector by 18.8% (oil and gas fell by 6.5%, others rose by 25.4%). The lower increased rate in the state sector was mainly due to a cut-off of number of enterprises, chiefly those under local management to continue carry out the Government’ schedule on renovating and reorganizing state enterprises.

Among the three one-digit industries, the mining sector accounted for 7.8% of the industrial production values, increasing only 1.1% over last year (mainly due to crude oil production fell by 8.2% while pure coal production rose by 18.7%); the electricity, gas and water accounted for 5.7%, increasing by 13% (of which electric production rose by 13.4%); the manufacturing accounted for 86.4%, increasing by 18.9% and played a main part in the 2006 industrial production value increased rate.

4. Investment

As estimated, the realized investment for development at current prices in 2006 achieved VND 398.9 trillion, equaling 105.9% of the yearly plan. Of which, state investment occupied 50.1%, equaling 103.2%; non-state investment: 33.6% and 105.7%; FDI investment: 16.3% and 116.1% respectively.

Capital construction investment under the concentrated State budget in 2006 was estimated at VND 64.1 trillion, accounting for 114.1% of the yearly plan; of which central investment gained approximately VND 18 trillion, accounting for 103.3%; local investment: VND 46.1 trillion and 119.0% of the yearly plan.

Foreign direct investment in 2006 continued to develop. From 1^st January to 18^th December 2006, there had been 797 granted license projects with a total capital registered USD 7.57 billion, USD 9.5 million per project on average . At that time, 486 projects were funded more budget with an additional amount of USD 2.36 billion. Generally, FDI as of 18/12/3006 reached to USD 9.9 billion and should be more than USD 10 billion- the peak level up to now and one of the most outstanding economic events in 2006.

5. Trade, price and tourism

Total retail sales of goods and services in 2006 were estimated at VND 580.7 trillion at current prices, increasing by 20.9% over last year and over 13% if the price booming factor was excluded. This was a rather high level to the growth rate. It proves an increase in people’s purchasing power and consumption. Of the total, the state sector raised by 8.2% against last year; the collective sector 20.8%; the individual sector 22.4%; the private sector 25%; the foreign investment sector 21.5%. Analyzing by economic activities, trade increased by 19.9%, restaurant 22.3%, service 31.6%, and traveling tourism that accounted for 0.7% of the total but rose by 30.5%.

Consumer prices in December 2006 increased by 0.5% against last month, and 6.6% against last December. This was lower than the growth rate and met the goal on inflation set by the National Assembly. Prices of all groups of commodities and services increased over same period last year. Of which, restaurant and catering services rose by 7.9%, which was the main factor of high consumer prices; other groups commonly rose by 3.5%-6.5%, but only post and telecommunication prices fell by 2.9%. The average prices in 2006 increased by 7.5% against last year, which was lower than the rates of preceding years (8.3% in 2005 and 7.7% in 2004).

Gold prices in December 2006 rose by 3.2% over last month and 27.2% against same period last year. On average, gold prices in 2006 increased by 36.6% against 2005, of which they boomed in the second and third quarters with respective rates of 47.6% and 44.5%. In December, USD prices were not higher than last month, but 1% higher than same period last year. On average, USD prices in 2006 increased by 0.9% over 2005 and the discrepancy between quarters was low, from 0.9% to 1.1% only.

Total trade turnovers in 2006 were estimated at USD 84 billion, increasing by 21% against last year, of which exports rose by 22.1% and imports by 20.1%. Trade deficits were USD 4.8 billion, equaling 12.1% of export turnovers (respective figures in last years were USD 4.54 billion and 14%).

The value of exported commodities in 2006 was estimated at USD 39.6 billion, exceeding 4.9% over the year plan, of which the domestic economic sector gained USD 16.7 billion, increasing 20.5% over last year and contributing 39.8% to the general rate; the FDI sector excluding crude oil: USD14.5 billion, 30.1% increased and 46.9% contributed, and crude oil: USD 8.3 billion, 12.9% and 13.3% respectively.

The value of imported commodities was estimated at USD 44.41 billion, exceeding 4.5% over the year plan of 2006 and increasing by 20.1% against last year: the domestic sector gained USD 27.99 billion, increasing by 19.9% and contributing 62.6% to the general rate; the FDI sector: USD 16.42 billion, 20.4% increased and  37.4% contributed.

The value of exported services in 2006 was estimated at USD 5.1 billion, increasing by 19.6% over last year, of which services with high proportions had high increased rates of over 20%, such as tourism: 23.9%, air transport: 35.5%, shipping services: 27.5%, financial services: 22.7%.

The value of imported services in 2006 was estimated at USD 5.12 billion, increasing by 14.3% over last year, of which tourism rose by 16.7%, costs; insurances and freight (c.i.f.) accounted for 33.7% and rose by 20.1%. Service import surplus in 2006 was about USD 22 million only (the figure in last year was USD 220 million).

As estimated, passengers carried in 2006 were 1,386.6 million and 58.7 billion passengers-kilometers, increasing by 9.1% in passengers and 10.2% in passengers-kilometers against last year, of which transport by land accounted for 85.7% of passengers carried, increasing by 10.1%; transport by river way rose by 4.3%; airways: 15.5%; seaways: 11.1%. The volume of passengers-kilometers rose mainly due to an increase in land and airways. Only transport by rail decreased both in passengers and passengers-kilometers.

Volume of cargos carried in 2006 achieved 350.4 million tons and 88.6 billion tons-kilometers, increasing by 8.1% in tons and 9.3% in tons-kilometers against last year. Of which central and local as well as domestic and international transportation by all means of transport increased in tons and tons-kilometers.

International arrivals to Vietnam in 2006 were estimated at 3.6 million, increasing by 3% against 2005, which was not an expected rate and the increased rate was low to the rate 18.8% increased of 2005. This is mainly due to decreases in visitors from China (28%) and Cambodia, Laos, the Philippines, Indonesia (from 7.7% to 22%).

2006 was an activated years for post and telecommunication activities. As estimated at end of December, the country had 25.4 million telephone subscribers, increasing by 60.5% against same period last year, of which VNPT accounted for 67.4% of the total with 17.1 million subscribers (7.6 million desk telephone subscribers and 9.5 million mobile phone subscribers). There were 1.19 million internet subscribers, equaling 95.9% against 2005 because clients changed to use ADSL service. As estimated at end of 2006, there were 4.1 million internet users (1.17 million users belong to VNPT). Total turnovers from post and telecommunication services in 2006 were estimated at VND 37.4 trillion, of which VNPT gained VND 34.8 trillion.

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