Vietnam’s Economic situation January 2009

The country’s social economy in January 2009 happened in a background of declination in the world economy; changeable happenings of weather in the country with long-lasting waves of heavy rains and floods in many provinces of the Central Coast, out-of-season rains and tide raising in the Mekong River Delta; businesses and enterprises spent their holidays for the Lunar New Year (Tet) of Buffalo so their working days were fewer than same period last year. Before that, the Party and Government have worked out important solutions, guiding and managing the implementation of the 2009 social-economic development plan and the budget estimate with an aim to curb the economic declination, push up production and business, speed up exportation, stimulate investment demand and ensure social security. Therefore, there were although still many difficulties, the achievements of some sectors and fields in January 2009 maintained a good growth against same period last year. Details are as follows:

Agriculture, forestry and fishery

Agriculture

The core agricultural production in January was to cultivate, care and reap winter-spring rice crop and winter vegetable crops over the country, and to reap winter rice crop in provinces of the South.

As of 15/01/2009, there were 1799.8 thousand ha of winter-spring rice grown, equaling 95% of same period last year, of which provinces in the North grew 107.3 thousand ha, equaling 98.8%; provinces in the South 1692.5 thousand ha, equaling 94.8%.

The cultivated area in the Mekong River Delta was at an estimate of 1421.2 thousand ha, equaling 95.7% of same period last year. Together with the cultivation of winter-spring rice, provinces in the Mekong River Delta 72.5 thousand ha of early winter-spring rice, equaling 66.7% of same period last year, and  329.9 thousand ha of winter rice, accounting for 74% of the cultivated area’

The progress of cultivation of winter crops this year was slower than same period last year due to the effects of very cold weather in last days of 2008. As of 15/01/2009, there were 179.7 thousand ha of maize, equaling 81% of same period last year; 61.1 thousand ha of sweet potato, equaling 82.2%; 32.9 thousand ha of peanut, equaling 99.6%; 57.6 thousand ha of soybean, equaling 86.2%; 235.2 thousand ha of vegetables, equaling 102.3%.

The husbandry in this January was generally stable, there was no explosion of epidemic diseases; foot and mouth disease and blue-ear disease were controlled. Provinces were concentrating and strengthening the supervision of disease prevention and controll to ensure supply of enough food sources during the Tet holidays. Currently, only two provinces of Thái Nguyên and Thanh Hoá had bird flue disease within 21 days.

Forestry

Production in January maily focused on protection and care of grown forestation areas in 2008, and preparation of soil and seed for the forestation in 2009. Wood-cut yield in 01/2009 was at an estimate of 193.8 thousand m³, equaling 99.8% of same period last year; exploited firewood was 2152.3 thousand cubic meters, rose by 0,3%.

Fishery

Fishing outputs in 01/2009 were at an estimate of 335.6 thousand tons, rose by 1,4% against same period last year; of which, fish gained 255 thousand tons, grew by 1,3%; shrimp: 28 thousand tons, reduced by 1,1%.

Aquaculture outputs in 01/2009 were at 144.5 thousand tons, rose by 3.9% against same period last year, of which, fish gained 108 thousand tons, increased by 4%; shrimp: 19,000 tons, fell by 1,6%. Caught production in 01/2009 was 191.1 thousand tons, reduced by 0.5% against same period last year; of which, fish gained 147 thousand tons, fell by 0.7%; shrimp: 9,000 tons, equaling same period last year in 2008. Sea caught production was 178.4 thousand tons, fell by 0.3% against same period last year.

Industry

The production in 01/2009 was affected by the world financial crisis on one hand, and cease of work by enterprices in the Tet holidays, the production value in  01/2009 at 1994 constant prices reduced by 4,4% against same period last year (last January was  a closed-to-Tet month only, so production was not affected), of which, the state sector decreased by 8.5%; the non-state sector by 2.8%; FDI sector by 3.2% (oil & gas rose by 14.6%, other reduced by 4.8%).

Investment

The realised investment from the state buget in 01/2009 was at an estimate of VND 6.4 trillion, equaling 5.7% of the yearly estimate, Of which central capital was VND 2 trillion, equaling 5.6%; local capital : VND 4.4 trillion, equaling 5.7% of the estimate for the year.

Trade & services

Total retailed sales of consumer goods and services

Although business units had a careful preparation of various types of items of good quality with reasonable prices to meet people’s demand during the Tet, but due to the effects of the world economic crisis as well as internal economic difficulties, the people’s purchasing power reduced. The activity of retailed sales of consumer goods and services in January 2009 was generally not more effervescent than last January. January’s total retailed sales at current prices were at an estimate of VND 98.5 trillion, rose by 27,1% against same period in 2008.  If the price rising factor is excluded, this rose by only 8.2% which was lower than the growth 11,7% of same perod last year, of which the trade gained  VND 81.1 trillion, grew by 26.6%; the hotel and restaurant : VND 11.2 trillion, grew by 28.5%; the service : VND 5.2 trillion, rose by 36.9%. Two big cities only, Ha Noi and HCM gained VND 37.7 trillion, accounted for 31.4% of the total retailed rate and grew by 22% against 01/2008.

Price indexes

CPI in 01/2009 rose by 0.32% over last month due to an increase in the people’s consumption demand during the Tet. Most of commodity and service groups grew by 1%, above or below.  Consumer prices in 01/2009 rose by 17.48% against January 2008. Gold price in 01/2009 rose by 3.64% against December 2008 and by 5.38% against last January. USD price in  01/2009 grew by 1.48% against December 2008 and by 8.16% against last January.

Exports & Imports

Total export values in 01/2009 was at an estimate of USD 3.8 billions, reduced by 18,6% against 12/2008 and by 24,2% against same period last year, mainly due to decrease in export prices of many items as well as in the demand for import goods from Viet Nam of important markets, like the United States, EU and Japan. The domestic economic export turnovers were USD 1.7 billions, fell by 21.9% against 01/2008; the FDI sector (excluding crude oil): USD 1.7 tá»· USD, reduced by 13.7%.

Import turnovers in 01/2009 were at an estimate of USD 4.1 billions, down by 27.6% against last month and by 44.8% against same period in 2008, of which, the domestic economic sector gained USD 2.8 billions, down by 46.4%; the FDI sector : USD 1.3 billion, down by 41.1%.

Because the decreased rate of export turnovers was faster than that of import turnovers, the trade deficit in 01/2009 reduced much, by estimation of USD 300 millions, equaling 7.9% of total export turnovers, which was much lower than the trade deficite rate of USD  2.4 billions in same period last year (equal to  48.3% of the total export turnovers).

International visitors to Viet Nam

International arrivals to Vietnam in 01/2009 were 370,000, fell by 11.9% against same period last year. Of which, visitors for tourist purpose were  trong 231,500, down by 10.5%; for business purpose: 65,000, down by 17.6%; for visiting relatives : 55,000, down by 1.2%.

Transport

Passengers carried in 01/2009 were at an estimate of 173.4 million, up by 7.8% and 7.3 billion passengers-kilometers, and up by 7.6% against same period last year.

Volume of cargos carried in 01/2009 was at an estimate of 51.4 million tons, up by 1.9% and 13.4 billion tons-kilometers, down by 8.4% against same period last year.

Post and telecommunication services

Newly developed telephone subscribers in 01/2009 were 3,2 million, up by 160.4% against same period in 2008, bringing the total number of subscribers over the country to  end of January 2009 to 82.6 million, of which, the VNPT had 48.7 million subscribers. To end of January 2008, the number of internet (ADSL) subscribers over the country were 2.1 million. Total net income of the post and telecommunication services in was VND 7.7 trillion, up by 46.6% against 01/2008, of which, the income of the VNPT was VND 5.8 trillion, up by 52.7%.

Government revenues and expenditures

Total government revenues in 15 beginning days of 01/2009 were at an estimate of  2.4% of the yearly estimate, of which, gains from domestic activities was 2.9%; from crude oil: 1.6%; from trade balance: 1.9%.

Also in the first half of the month, total government spendings were equal to 3.3% of the yearly estimate, of which, spending for capital construction  was equal to 2.7%; for public services sector, Party, associations, defense (including spending for salary reform): 3.5%; for  debt and aid payments: 4.3%.

Tags: Vietnam economic 2009, Vietnam economic statistics, Vietnam's economy situation