Vietnam’s economic situation for the first 6 months of 2006

1. Gross domestic products

According to preliminary estimate, gross domestic products (GDP) in the first half of 2006, at 1994 constant prices, increased by 7.4% against same period last year, of which the 2^nd quarter increased by 7.5%, higher than the rate 7.2% of the 1^st quarter. The added values of 20 one-level economic sectors were both higher than same period last year. The agriculture, forestry and fishery increased by 3%; the industry and construction by 9.3%; the service by 7.7%. For 7.4% GDP, the industry and construction contributed 3.7 points percent; the service 3.1 points percent; the agriculture, forestry and fishery 0.6 points percent.

The growth of the agriculture, forestry and fishery was lower than the rate 4.4% of the first half of last year, as the added value of the agriculture rose by 2.5%, lower than the rate 4% of same period last year (mainly because the estimated paddy yield only rose by 1.5%); the fishery by 7% (same period last year rising by 8%).

The growth of the industry and construction in the first half of 2006 was only 0.1 points percent higher than the growth of the 6 beginning months of 2005, mainly due to the growth of mining industry fell by 0.2 points percent over same period last year.

The growth of the service in the first half of 2006 was equal to the rate of same period last year. Meanwhile the service business maintained the high growth: trade increasing by 7.9%; hotel and restaurant by 11%; transportation, communication and tourism by 9.9%; finance, banking and insurance by 9.3%, the public service raised at lower level, from 6.8% to 7.5%; only the estate and consultant service rose by 3.4%

2. Agriculture, forestry and fishery

Output values of this sector in the first half of 2006 were estimated at 85.6 trillion VND at 1994 constant prices, increased by 3.8% against same period last year; of which agriculture rose by 3%; forestry 0.8%; fishery 7.3%.

Agriculture: Production of winter-spring rice was estimated at 17.6 million tons, increasing by 1.5% (+266,000 tons) over last winter-spring crop. Maize production was estimated at 1.8 million tons, rising by 3% over same period last year due to the increase in both planted areas and productivity; soy bean rose by 6.5%; vegetables by 5.9%… Livestock feeding: According to the survey result of animal feeding on 1/4/2006, the country had a herd of 27.39 million pigs, approximately equal to the number at 1/8/2005 and increasing by 5.3% against same period last year, mainly due to the increase in the households having large scale of feeding.

Forestry: The area of concentrated forestation in the first half of 2006 was estimated to achieve 97.5 thousand ha, rising by 0.1% over same period last year, mainly new planted areas as the project of 5 million ha; the number of dispersed plants rose by 0.9%; wood cut production was 1348 thousand m³, rising by 1.5%.

Fishery: total fishery production of the first half were estimated at 1697.3 thousand tons, increasing by 8.1% over same period last year, of which farmed and caught aquatic products both increased.

3. Industrial output

Industrial output value increased by 16.1% against same period last year, a relative highly growth rate over same period of recent years, of which state owned sector increased by 9.5%, non-state sector by 20.8% and FDI sector by 18.5% (while the growth rate of this sector was 14.7% in the first half of 2004; 13.9% in same period of 2005). Among three one-level industrial sectors, processing industry accounted for 86.5% of total value and had the highest growth rate (+ 17.6% over same period last year); the proportion of mining and quarrying industry was 8.1%, only rising by 4.3%; electricity, gas and water production and supply accounting for 5.4%, increasing by 12.5%.

4. Investment

Realized investment for development in the first half of 2006 at current prices achieved 173.4 trillion VND, equaling 46% of the yearly plan and rising by 24.3% over same period of 2005. Of the total investment, state investment occupied 48.4%, increasing by 14.1%; non-state investment 34.5%, rising by 44%; FDI investment 17.1% and rising by 21.8%. Capital construction investment under the concentrated State budget in 6 months was estimated to account for 47.6% of the yearly plan; of which central investment accounted for 49.5% and local investment 46.7% of the yearly plan.

Foreign direct investment: from 1^st January to 20^th June 2006, there had been 30 countries and territories licensed to invest in Vietnam with 339 projects and a total capital registered 2.26 billion USD, increasing by 5% in number of projects and 21% in capital registered against same period last year. On average a new project licensed achieved 6.7 million USD, higher than the rate 5.8 million USD/project of same period of 2005. Moreover, there were 585.3 million USD added to 182 projects. Generally for 6 months, new granted capital and added one were 2.85 billion USD.

5. Trade, price and tourism

Total retail sales of goods and services in 6 months at current prices were estimated at 263.6 trillion VND; increasing by 19.7% over same period last year (if the price booming factor was excluded this rate was over 11%). The state sector raised by 8% against last year; the collective sector 20.2%; the individual sector accounted for 62.9%, rising by 20.5%; the private sector 24.9%; the foreign investment sector 21.9%. By business sector, the trade accounted for 81.7% of the total, increasing by 18.9% over same period last year; the hotel and restaurant accounted for 12%, increasing by 21%; the service accounted for 5.6%, by 28.2% and the tourism and traveling only accounted for 0.7% but the growth rate was 31.2%.

Consumer prices in June 2006 increased by 0.4% against last month, of which prices of eating commodity and services rose by 0.4%; housing and construction materials by 1%; furniture and household equipments by 0.7%; medicine and medical healthcare by 0.5%; only the group of educational tools and others fell from 0.2% to 0.3%. As compared with December 2005, consumer prices in June 2006 rose by 4% and prices for all 10 groups of commodities and services increased, of which prices for food and foodstuff increased by 4.9%; two groups of housing & construction materials and means of transport & communication rose by 3.4%; the rest ones increased popularly from 2.1% to 3.2%.

Gold price in June 2006 continued occurring complicatedly and went up and down irregularly, after gaining a peak increased rate of 17.6% in May 2006 against last month. Gold prices in June 2006 decreased by 5.6%, this has been the first month of the price decrease since July 2005. Gold prices in June 2006 were still at a high rate, increasing by 29.9% against December 2005.

Total value of exported and imported commodities in the first half of 2006 was estimated at 39.44 billion USD, increasing by 19.3% against same period last year, of which exports by 25.7% and imports by 14.1%. Because export increased rate was higher than import increased rate, the trade gap in 6 months was narrowed notably over same period last year. Trade deficits in 6 months were approximately 2 billion USD, only equaling 10.6% of export turnovers, falling considerably over the rate 21.8% of the first half of 2005.

The value of exported and imported services in 6 months 2006 was estimated at 5.41 billion USD, rose by 20.8% over same period last year, of which export gained 2.53 billion USD, rising by 20.9%; import 2.88 billion USD and 20.7% respectively.

Passengers carriage in the first half of 2006 was estimated at 645 million and 27.1 billion passengers-kilometers, increasing by 8% in passengers and 8.9% in passengers-kilometers against same period last year. Volume of cargos carried achieved 168.3 million tons and 42.7 billion tons-kilometers, increasing by 8% in tons and 8.3% in tons-kilometers against same period last year, of which cargo carriage by almost transport types increased.

International arrivals to Vietnam in the first half of 2006 were estimated at 1.85 million, increasing by 7.2% against same period last year, of which arrivals for business increased highly by 278.1 thousand, equaling 26.3%, for tourist purpose were 1.1 million, rising by 4.1%; for visiting relatives 281.6 thousand and 6.6%; for other purposes 217.2 thousand and 3% respectively;

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