Vietnam’s economy in February and 2 beginning months of 2006

1. Output of agriculture, forestry and fishery.

Agriculture:

As of 15^th February 2005, in the whole country there were 2658.9 thousand ha of spring paddy planted, accounting for 107.4% of last year’ same period, of which 844.3 thousand ha were in northern provinces, increasing by 20.3%%; 1814.6 thousand ha in southern provinces, equaling 102.4%.

Cultivation progress of root and vegetable crops was faster than same period last year; there were 275.3 thousand ha of maize, equaling 103.3%, 97.1 thousand ha of sweat potato, equaling 99.5%, 41.8 thousand ha of cassava, equaling 117.7%, 125.2 thousand ha of peanut, equaling 106.7%, 64.7 thousand ha of soybean, equaling 122.3%, 25.3 thousand ha of newly planted sugarcane, equaling 125% and 271 thousand ha of vegetables, equaling 106.6%.

Forestry

Generally for the two months, there were 24.4 thousand ha of concentrated forest, equaling 99.7% of same period last year; 40.4 million scattered plants, equaling 100.2%; wood-cut production was 369,000 m³, same as last year’ same period.

Fishery

Gross fishing output for the two beginning months was 568.9 thousand tons, increasing by 6.3% over same period last year, of which raising was 181.8 thousand tons, increasing by 13.6%; 387.1 thousand tons of catching, increasing by 3.1%.

2. Industrial output

Industrial output value of the two beginning months at constant prices increased by 15.8% against same period last year, of which the state sector increased by 8%, the non-state sector 21.7% and the FDI sector 17.3%. Main industrial products still maintained higher rates than same period last year: pure coal increased by 21.8%, processed seafood 14.8%, silk 23.2%, knitting textiles 24.4%, ready-made garments 39.3%, cement 15.5%, machine tool 27.8%, electric motor 62.6%…Some other products slightly increased against same period last year: paper and paperboard 8.2%, assembled television set 1.1%, assembled motorbike 6.4%, electricity 9.1%.

Industrial production of big provinces/cities had high growth rates in the two beginning months: Hanoi 21.3%, Hai Phong 20%, Ha Tay 16.3%, Quang Ninh 17.5%, Binh Duong 20.8%, Dong Nai 17.9%, Can Tho 19.1%, HCM City 13.1% and Ba Ria-Vung Tau 5.6%.

3. Investment

Performance of capital construction investment under the state budget in the two months was estimated at 7.2 trillion VND, accounting for 12.8% of the year plan, of which central units achieved 2.55 trillion VND, accounting for 14.6%, local units 4.65 trillion VND, accounting for 12% of the year plan.

Foreign direct investment: From the beginning of the year to 15/2/2006 there were 113 licensed projects with total registered capital USD 1,319.1 million, USD 11.7 million  per project on average. Additionally, 61.3 USD million were added to 12 projects. Licensed projects were mainly  in the industry and construction with 89 projects and USD 981.1 million , accounting for 78.8% of number of projects and 74.4% of total registered capital; the agriculture-forestry sector: 2 projects and 1.9 million USD; other sectors: 22 projects and US$ 336.1 million .

Among localities, HCM City is the leading place in both number of projects and registered capital with 40 projects (accounting for 35.4%) and 645.4 million USD (accounting for 48.9%); Hanoi: 9 projects and US$ 415 million registered capital; Dong Nai: 21 projects and US$ 98.9 million.

4. Trade, prices and services

Total retail sales of consumer goods and services at current prices for the two beginning months were estimated at VND 90.12 trillion, increasing by 19.2% against same period last year. Generally, activities of domestic market in the two beginning months were as animated as same period last year. Sectors of business and trade, hotel and restaurant, tourism and service all had a higher growth against same period last year, of which the individual sector accounted for 63.5% of the total, increasing by 20%; the private sector 20.8% and 24.4% respectively.

Consumer prices in February 2006 increased 2.1% against last month and 3.3% against December 2005. The rising is a normal rate if observations are made on consumer prices in February of recent years.

Compared with January, consumer prices in February for all major commodity groups were rose (excluding postage and communication), of which prices of food, foodstuff and drinks rose by 3.2% (food 1.7% and foodstuff 3.7% as of increased demands during the traditional Tet holidays); drinks and cigarettes 1.5%; culture, sport and entertainment services 1.9%…Compared with December 2005, consumer prices in February 2006 rose by 3.3% with high rates for all groups of goods and services; highest rate of 5% still belonged to food and foodstuff (food 3.8% and foodstuff 5.2%); drinks and cigarettes 2.7%; culture, sport and entertainment services 2.1%…

Gold prices continued rising by 5.4% over last month yet it is still lower than the record of 7.5% of December 2005. If compared with gold prices in February 2005, however, gold prices also increased by 27%. Contrary to this, US$ prices in 2/2006 only slightly rose by 0.1% against last month and 12/2005.

Export turnovers for the two months were estimated at US$ 5.57 billion, increasing by 28.3% against same period last year. The good momentum is due to the exported amount over US$ 3 billion in January and the high rate of exports over recent years. Exports by the domestic economic sector in the two months achieved US$ 2.37 billion, increasing by 22.7% over same period last year, contributing 10.1 points percent to the total; the FDI sector (excluding crude oil): US$ 1.86 billion, 33.2%, 10.6 points percent; crude oil: US$ 1.34 billion, 32.2% and 7.6 points percent  respectively.

Export turnovers of most commodities also increased against same period last year. Besides crude oil, two other main items gaining turnovers of more than US$ 500 million were textile (US$ 867 million, increasing by 45.4%) and footgear (US$ 582 million, increasing by 30.9%). Other items with turnovers more than US$ 100 million were fishing: US$ 329 million, increasing by 3.3%; wood products: US$ 290 million, increasing by 31.1%; coffee: US$ 165 million, increasing by 1.8%; rubber: US$ 157 million, increasing by 83.5%; coal: US$ 110 million, increasing by 40% and rice: US$ 158 million, increasing by 3.8%.

Import turnovers in two beginning months of 2006 were estimated at US$ 5.4 billion, increasing by 4.2% over same period last year and accounting for 14.7% of 2006 year plan, of which the domestic economic sector achieved US$ 3.36 billion, falling by 3% against same period last year; the FDI sector US$ 2,04 billion, increasing by 18.9%. The import turnovers did not increase much mainly due to a fall in importation of such main items as machines and equipment, steel, automobiles, motorbikes…

Transportation

Passenger carriage in 2 early months of 2006 was estimated at 217.3 million people and 8.9 billion passengers-kilometers, increasing by 8% in passengers and by 8.2% in passengers-kilometers over same period last year. Passenger carriage by rail decreased by 4.3% in passengers and by 4.9% in passengers-kilometers; by air increased by 10% in passengers and 11.3% in passengers-kilometers; by land 9% and 9.4%; by sea 6.7% and 9.2%; by river way 2.9% and 3.3% respectively.

Freight carriage in January and February was estimated at 55.3 million tons and 14 billion tons-kilometers, increasing by 7.8% in tons and by 7.1% in tons-kilometers over same period last year. Cargo transport by land gained highest increased rate both in tons and tons-kilometers: 9% in tons and 9.3% in tons-kilometers; by river 6.2% and  6.4%; by sea 6% and 6.6% respectively. Cargo transport by rail decreased by 3% in tons but rose by 11.5% in tons-kilometers mainly due to increase in long distant transportation.

Tourism

International visitors to Vietnam in the two early months were estimated at 673,000, increasing by 15.1% over same period last year, of which arrivals for business purpose were 86,900, increasing by 38.6%; for tourist purpose: 396,100, increasing by 13.2%; for visiting relatives: 116,800, increasing by 11.4%. Vietnam is attracting more and more visitors from Europe and America. Visitors from these countries increase against same period last year; visitors from South Korea, Thailand and Cambodia also increase rapidly. Notably, visitors from China and Hong Kong (China) decrease: China (31.9%) and Hong Kong (28%) since people in these two places prefer to pay home visits during the traditional Tet holidays.

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