Vietnam’s economic situation of 2005

1. General economic aggregates According to preliminary data, gross domestic products (GDP) in 2005 increased by 8.4% against last year, of which the agriculture, forestry and fishery increased by 4%; the industry and construction by 10.6%; the service by 8.5%. For 8.4% GDP, the industry and construction contributed 4.2 points percent; the service 3.4 points percent; the agriculture, forestry and fishery 0.8 points percent.

Due to higher growth of the industry and construction than the general rate and other sectors, the structure of economic sectors continues to transform towards increasing in the industry and construction and decreasing in the agriculture, forestry and fishery. The proportion of the industry and construction rose from 38.13% in 2001 to 41.03% in 2005; the service from 36.63% up to 38.08%; and only the agriculture, forestry and fishery from 23.24% to 20.89% respectively.

Total government revenues in 2005 was estimated increasing by 16.6% over 2004 and achieved 115% of yearly estimate. Of the total, domestic revenues accounted for 109.2%; crude oil: 146.1% (mainly due to higher oil cost than the proposed budget plan); trade balance revenues were equal to yearly estimate. Main domestic revenue items generally over passed the yearly estimate.

Total government expenditure in 2005 fundamentally met the demand of expenses from State Budget, achieved 112.5% of yearly estimate and increased by 19.5% against last year. Of the total, spending on development investment was 106.1% of the yearly estimate (on capital construction: 105.5%); current expenditures 107.8%; debts and aids settlement equal to proposed budget plan. Budget deficits were equal to the yearly estimate and accounted for 4.9% of GDP.

2. Agriculture, forestry and fishery

Output values of this sector in 2005 were estimated at 182 trillion VND at 1994 constant prices, increased by 4.9% against last year; of which agriculture rose by 3.2%; forestry 1.2%; fishery 12.1%.

Rice production of the whole year was estimated at 35.79 million tons, decreasing by 358,000 tons over 2004, as the planted areas decreased by 119 thousand ha and the productivity was approximately equal to last year.

Production of annual industrial plants raised much compared with last year. Production of perennial plants was improved, because harvested areas enlarged, of which tea increased by 4%; rubber 11.8%; pepper 4.9%; cashew nut 13.3%; only coffee fell by 8.2% due to prolonged drought.

Animal feeding developed well due to the increasing demand for foodstuff in replace for poultry products; stable high prices for animal products and the application and development of industrial manners and farming models: herds of buffalo rose by 1.8% over 2004, cattle 12.9%, pigs 4.9%. Poultry farming was heavily hit by the return of bird flu, as of 1/10/2005 there have destroyed 3.58 million poultries.

Fishery production in 2005 was estimated at 3,432.8 thousand tons, increased by 9.2% against last year; of which farmed aquatic products achieved 1,437.4 thousand tons, increased by 19.5%; caught aquatic product 1,995.4 thousand tons, by 2.9% (caught sea product: 1,809.7 thousand tons, by 4.4%).

3. Industrial output

Industrial production in 2005 still maintains a higher growth rate over the yearly plan and recent years. Industrial output value at 1994 constant prices was estimated increasing by 17.2% against last year, of which state owned enterprises increased by 8.7%, non-state and FDI sector by 20.9% (oil and gas fell by 4.6%, others rose by 28.1%).

Main industrial items increased rapidly over 2004: pure coal, processed seafood, tinned milk, chemical fertilizer, floor tiles, rolled steel, electric cables, machine tools, assembled automobiles and electricity. Due to difficulties in producing and consuming, some items raised at a range of 10-15% against last year: ready-made garments, paper and paper boards, cement, assembled motorbikes, beer…Besides that, some items decreased over 2004: crude oil; liquidized gas; sugar; molasses; assembled television sets; bicycles…

4. Investment

According to preliminary estimate, realized investment for development in 2005 at current prices achieved 324 trillion VND, increasing by 8% over the yearly plan. Of the total investment, state investment occupied 53.1%; non-state investment 32.4%; FDI investment 14.5%.

Capital construction investment under the concentrated State budget in 2005 was estimated at 62.93 trillion VND, accounting for 121.2% of the yearly plan; of which central investment gained 24.57 trillion VND, accounting for 123.5% of the yearly plan; local investment gained 38.36 trillion VND, accounting for 119.8% of the yearly plan.

Foreign direct investment: from 1^st January to 15^th December 2005, there had been 771 newly granted license projects with a total capital registered 3.9 billion USD, on average a new project licensed achieved 5.1 million USD. The number of newly granted license projects in 2005 mainly focused on the industrial and construction sector.

5. Trade, price and tourism

Total retail sales of goods and services in 2005 were estimated at 475.38 trillion VND, increasing by 20.5% over last year, if the price booming factor was excluded this rate was about 12%. The state sector raised only 3.9% against last year; the collective sector 16.8%; the individual sector 25.3%; the private sector 19.4%; the foreign investment sector 20.7%.

Consumer prices in December continuously increased by 0.8% against last month, equaling to the rate of September and being a pretty high rate over the rate 0.4% of October and November. As compared with last December, consumer prices in this December rose by 8.4%. Notably, prices for all 10 groups of commodities and services increased. On average, prices per month in 2005 increased by 8.3% over 2004, being a high increased rate over recent years: average prices in 2004 rose by 7.7%, 2003: 3.2%, 2002: 3.9%. Gold price in December 2005 gained a peak increased rate of 7.5% over last month and exceeded the increasing level of the rest months. As compared with December 2004, gold price increased by 11.3%. USD price in December was relatively stable, increasing by 0.9% over December 2004 and on average for 12 months this rate increased by 0.6% over 2004.

Total trade turnover in 2005 was estimated at 69.11 billion USD, increasing by 18.2% against last year, of which exports by 21.6% and imports by 15.4%. In 2005 export increased rate was higher than import increased rate (6.2 points percent higher), therefore trade deficit decreased in both absolute numbers and rates over export value: trade deficits were only 4.65 billion USD (2004: 5.45 billion USD), equaling 14.4% of export turnovers, falling 6.2 points percent over the rate 20.6% of 2004.

The value of exported commodities in 2005 was estimated at 32.23 billion USD, rose by 5.73 billion USD over 2004. On average export values per month were 2.69 billion USD (2004: 2.2 billion USD). Of the total, crude oil gained 7.39 billion USD, increasing by 30.3% against last year; exports excluding crude oil 24.85 billion USD, increasing by 19.3% of which domestic economic sector gained 13.72 billion USD and rose by 14.1%; FDI sector (excluding crude oil) 11.13 billion USD and 26.2% respectively.

Vietnam export markets were generally stable and expanded over last year, especially big markets and newly emerged markets in Africa: America increased by 16.2%, Japan 26.9%, Australia 41.9%, China 8.8% and Singapore 28.5%. However, big markets in EU decreased: export turnovers to Germany and UK were about 1 billion USD each and decreased by 1.7% over last year.

The value of imported commodities was estimated at 36.88 billion USD, increasing by 15.4% against last year: domestic sector 23.19 billion USD, increasing by 11.1%; foreign invested sector by 23.5%. As import proportion of domestic sector increased more slowly, only 62.9% in 2005 (2004: 65.3%) and FDI sector 37.1% (2004: 34.7%). Import values per month were 3.07 billion USD. Imports from Asian countries took a greater proportion and highly increased: China 27.8%; Singapore 25%, Taiwan 16.3%; Japan 14.4%; South Korea 8.3% and Thailand 29.6%…

The value of exported and imported services in 2005 was estimated at 9.3 billion USD, increasing by 6%, of which export gained 4.26 billion USD, increasing by 7.2%; import 5.04 billion USD and 5% respectively.

Passengers carriage in 2005 was estimated at 1,267.4 million and 53.3 billion passengers-kilometers, increasing by 7.5% in passengers and 11.8% in passengers-kilometers against last year, of which transport by land and by aviation increased higher, only rail transport fell by 1.3% in passengers and rose by 4.7% in passengers-kilometers against last year.

Volume of cargos carried achieved 324.2 million tons and 81.1 billion tons-kilometers, increasing by 7.3% in tons and 6.7% in tons-kilometers against last year. Transport by seaways increased by 5.7% in tons and 6.3% in tons-kilometers; by land 8.3% and 9.2% respectively while by rail decreased by 0.4% in tons.

International arrivals to Vietnam in 2005 were estimated at 3.47 million, increasing by 18.4% against 2004, of which arrivals for tourist purpose were 2.04 million, rising by 28.9%; for visiting relatives 505.3 thousand and 8.1%; for other purposes 427.6 thousand and 20.5% respectively; only arrivals for business were 493.3 thousand, decreasing by  5.4%.

Tags: Vietnam economic 2005, Vietnam economic statistics, Vietnam's economy situation