Vietnam’s economic situation May and 5 beginning months of 2007

1. Output of agriculture, forestry and fishery

Agriculture:

Winter-spring paddy: In May, provinces in the South concentrated on harvesting winter-spring paddy; productivity was estimated at 5,860 kg/ha, approximately equal to the winter-spring crop of 2006, the yield was estimated achieving 10.8 million tons, increasing by 24.7 thousand tons (0.2%). Provinces in the Mekong River Delta completed their harvest with a productivity of 6,030 kg/ha, increasing by 30 kg/ha against same period last year and a yield of 9.1 million tons, rising by 75 thousand tons. Provinces in Dong Thap Muoi gained a sound yield of winter-spring rice (An Giang gained 1.64 million tons, rising by 66 thousand tons; Kien Giang: 1.6 million tons, by 44 thousand tons; Dong Thap: 1.4 million tons, by 78 thousand tons; Tien Giang: 531 thousand tons, by 29.3 thousand tons). Because of effects of disease and unfavorable weather, the area of winter-spring paddy in provinces in South Central Coast, Central Highlands and South East decreased over 2006 (South Central Coast fell by 1.5 thousand ha; South East by 4.6 thousand ha; Central Highlands by 428 ha).

Provinces in the North started harvesting winter-spring rice. As of mid May, provinces in the North only harvested over 10% of total planted area of 1,139.8 thousand ha.

Summer-autumn paddy:  As of 15^th May, along with this harvest, the provinces in the South sowed rice seed for 1,031.1 thousand ha of summer-autumn crops, equaling 83.4% against same period last year. Of which 948.1 thousand ha were in the Mekong River Delta, equaling 82.6%, because localities guided to delay the time of sowing and heavy rain effected to the sowing progression.

Planting other summer-autumn crops was slow against same period last year. As of 15/5/2007, in the whole country, there were 555.2 thousand ha of maize, equaling 91.3%; 171.4 thousand ha of cassava, equaling 89.4%; 120.9 thousand ha of sweet potato, equaling 99%; 20.7 thousand ha of tobacco, equaling 81.8%; peanut and soy-bean approximately equaling same period last year (178 thousand ha of peanut, 106.2 thousand ha of soy-bean); but 421 thousand ha of vegetables, equaling 108.6%.

Feeding animals: According to the survey result at 01/4/2007, total pig heads in the country were 98.6% of same period of 2006 (falling by 384 thousand) mainly due to pigs for slaughter decreased by 1.6% and much decrease in provinces in Red River Delta (Hai Duong: 16%; Ha Tay: 9%; Thai Binh: 6%). The reason for much decrease was the appearance of foot-and-mouth disease in some localities and “Green ears” pandemic in provinces in Red River Delta. Cattle heads rose by 5-7% over same period last year, mainly in mountainous provinces, South Central Coast because of plentiful food sources. Poultry heads were recovered but slow, estimated increasing by 6-8% over 01/4/2006 and mainly in small-scale households.

Disease: In May of 2007, poultry plague relapsed in 13 communes under 10 districts of 5 provinces: Son La, Quang Ninh, Nam Dinh, Nghe An and Can Tho. 16.4 thousand poultries were demolished, of which 3.6 thousand died. As of 22/5/2007, in the country there have been 60/64 provinces vaccinating first stage of 2007, of which 34 provinces/cities completed fundamentally vaccinating bird flu for the first time of 1^st stage. 117.2 million poultries were vaccinated (73.5 million chickens, 40.5 million ducks, 3.2 million swans). There happened foot-and-mouth epidemic in 5 communes under 2 provinces Gia Lai and Thai Nguyen not over 21 dates.

Forestry:

In May 2007, the weather was in favor of producing forestry, , the area of concentrated forestation was estimated achieving 14.9 thousand ha, rising by 0.2% against same period last year; the number of dispersed plants was 21.4 million, rising by 0.9%; wood cut production was 117.5 thousand cubic meters, rising by 1.3%. Generally, for 5 months, the area of concentrated forestation was 68.1 thousand ha, increasing by 0.3% over same period of 2006; the number of dispersed plants was 104.6 million, rising by 1.1%; wood cut production was 711.6 thousand cubic meters, rising by 1.1%. The forest protecting work was done strictly, so that fired forest decreased over last month. Generally for 5 months, the destroyed forest area was 2,743.5 ha, of which fired forest was 2,238.4 ha (Son La: 1,036 ha, Yen Bai: 765.5 ha).

Fishery:

Fishery production in May 2007 was estimated at 306.5 thousand tons, increasing by 7.1%, of which raising rose by 14.2%, catching by 3% (sea catching was 170 thousand tons, rising by 3.2%). Seafood raising gained 120.2 thousand tons, increasing well due to the harvesting time of catfish in MeKong River Delta. Seafood catching in May was estimated achieving 186.3 thousand tons, increasing over same period last year because of favorable weather. However, the price of materials raised that made low efficiency of catching. Generally, gross fishing output for the five beginning months was 1,512.1 thousand tons, increasing by 7.1% over same period last year, of which raising was 572.5 thousand tons, increasing by 15.5%; 939.6 thousand tons of catching, increasing by 2.5%.

2. Industrial output

The industrial output value in May 2007 was estimated at constant prices increasing by 17.1% against same period last year, of which the state sector increased by 7.3% (central enterprises: 6.4%, local enterprises: 9.1%); the none-state sector by 20% and the FDI sector by 21.2% (mining oil and gas fell by 3.3%, others increased by 26.3%). Among main items, sugar and sugar syrups rose by 43.7%, beer by 20.9%; paper and covers by 23.8%; medicaments in tablet by 30.7%; soap by 20.2%; cement by 23.7%;  rolled steel by 19.9%; tool machine by 22.2%; electric motor by 22.2%; transformer by 68.7%; assembled TV by 24.5%; automobile in all kinds by 57.9%, motorbike in all kinds by 42.5%. Beside that, some main items decreased against same period last year: crude oil falling by 6.7%, hosiery by 12.3%, diesel motor by 6%, completed bicycle by 74.5%…

Generally, for five months of 2007, the industrial output value was estimated at constant prices increasing by 16.8% against same period last year, of which the state sector increased by 7.9% (central enterprises: 10.8%, local enterprises: 2.1%); the none-state sector by 20.4% and the FDI sector by 19.3% (mining oil and gas fell by 2.3%, others increased by 24%).

Industry for 5 months increased high against same period last year, mainly because some manufacturing items grew higher the general growth, pure coal rose by 8.7% meanwhile crude oil fell by 7.6% and electricity rose by only 12%. Some main items had high growth rate: processed seafood increased by 16.7%; beer of all kinds by 20.2%; insecticides by 23.9%; tiles by 27.4%; steel by 20.9%; electric motor by 40.2%; transformer by 20.8%; automobile in all kinds by 40.8%, motorbike in all kinds by 36.5%… However, some important items had low growth rate or decrease against same period last year: ready-made clothes rose by 15.4%; silk finished products by 13.6%; paper and covers by 13.4%; cements by 12.1%; chemical fertilizers by only 3.6%; but liquidized gas fell by 15.9%; hosiery by 11.7%; caustic Soda by 2.6%;  bicycle by 71.3%.

Provinces, cities have large-scale industry and high growth rate: Ha Noi rising by 20%; Hai Phong by 18.5%; Vinh Phuc by 55.7%; Ha Tay by 18%; Binh Duong by 23%; Dong Nai by 22.6%; Can Tho by 17.3%; Ho Chi Minh city has the largest scale but only increasing by 12.1%; Ba Ria- Vung Tau by 0.4% due to the decrease in crude oil.

3. Investment

Performance of capital construction investment under the state budget in May (including project capital and aimed programs) was estimated at 8.5 trillion VND, accounting for 8.9% of the year plan. Central units achieved 3.04 trillion VND, accounting for 8.6%; local units gained 5.46 trillion VND, equaling 9.1%. Generally for 5 months of 2007, capital construction investment under the state budget was estimated achieving 35 trillion VND, equaling 36.7% of the year plan, of which central managements was 12.8 trillion VND, equaling 36.2%; local managements was 22.2 trillion VND, equaling 37%. Some ministries had high capital construction investment: Ministry of Education and Training gained 43%; Ministry of Health: 41.8%; Ministry of Industry: 40.9%; Ministry of Culture and Information: 39.4%; Ministry of Fishery: 36.9% of the year plan. Notably, some ministries had high capital construction investment but the rate of performance was low against same period last year: Ministry of Transportation was 1,725.5 billion VND, equaling 22.8%; Ministry of Agriculture and Rural Development: 678.8 billion VND, equaling 31.4% of the year plans. Localities had high capital construction investment: Ha Noi: 1,773.8 billion VND, equaling 30.7%; HCM city: 1,724.8 billion VND, equaling 20.8%; Da Nang: 764.1 billion VND, equaling 36.4%; Ba Ria – Vung Tau: 659.4 billion VND, equaling 33.9%; Thanh Hoa: 515.2 billion VND, equaling 39.6%; Dong Nai: 414.1 billion VND, equaling 34.9%; Hai Phong: 371.2 billion VND, equaling 26.9%; Nghe An: 347.2 billion VND, equaling 27.6%…

Foreign direct investment: From the beginning of the year to 22/5/2007 there were 278 licensed projects with total registered capital 2.9 billion USD. .  If 577.1 million USD adding for 141projects licensed in the previous years and 771.9 million USD adding for 87 projects licensed at the end of 2006 but not including for the previous year were included, the total capital registered was 4.3 billion USD.

Among 365 newly licensed projects, industry and construction accounted for 218 projects with total registered capital 2.08 billion USD, accounting for 59.7% in number of project and 56.2% in registered capital. Service: 127 projects with 1.54 billion USD, accounting for 34.8% and 41.5% respectively; agriculture, forestry and fishery: 20 projects with 83.9 million USD, accounting for 5.5% and 2.3% respectively.

Among localities with newly licensed projects, Ba Ria – Vung Tau was in the first rank with 699.7 million USD, accounting for 18.9% of the total registered capital. Thua Thien Hue was the 2^nd with 553.4 million USD, accounting for 15%; Hau Giang: 280 million USD, accounting for 7.6%; Quang Ngai: 260 million USD, accounting for 7%; Binh Duong: 254.9 million USD, accounting for 6.9%; Ha Noi: 253 million USD, accounting for 6.8%; HCM City: 206 million USD, accounting for 5.6%.

There have been 33 countries and territories investing in Viet Nam. Of which Singapore was in the 1^st rank in capital registered with 776.7 million USD, accounting for 21% of the total registered capital. Korea: 731.8 million USD, accounting for 19.8%; India: 527.3 million USD, 14.3%; British Virgin Islands: 347.5 million USD and 9.4%; Japan 187.6 million USD and 5.1%; Thailand: 181.9 million USD and 4.9%; Taiwan: 167.2 million USD and 4.5%; America: 166.3 million USD and 4.5%…

4. Trade, prices and services

Total retail sales of consumer goods and services for the five beginning months were estimated at VND 277.8 trillion, increasing by 22.6% against same period last year. Of which the state sector was 28.7 trillion VND, decreasing by 7%; the collective sector: 2.8 trillion VND, increasing by 24.6%; the individual sector: 159.7 trillion VND, by 26.8%; the private sector: 79.1 trillion VND, by 28.3% and the FDI sector: 7.5 trillion VND, by 27%. Of the total, the trade accounted for 81.9%, increasing by 22.5%; hotel and restaurant accounted for 11.8%, rising by 21.3%; service accounting for 5%, by 24.7% and tourism only accounting for 1.3%, by 33.7%.

Consumer prices indexes in May 2007 increased by 0.77% against last month, by 4.32% over last December and by 7.31% against same period last year. As compared with last month, the prices of all commodities and service both increased, of which food and eating service rose by 1.04% (food by 0.62%; foodstuff by 0.95% and eating outside by nearly 2% that is main factor for increasing prices of this group as well as general increase over last month). Housing and construction materials rising by 0.9%; household equipments, medicaments, health care, means of transportation and post both rose by 0.6%. Prices for telecommunication were the same with last month. As compared with December of 2006, the consumer prices of all commodity groups both rose but at different levels, of which housing and construction materials had the highest rate of 6.8%, the prices of food and eating service rose by 5.7%; drinks and cigarettes by 3.5%; textiles, hats and footwear by 3%, the others increased popularly by 0.7 – 2.8%. As compared with same period last year, consumer prices in May increased high the same as compared with December 2006, of which housing and construction materials rose by 10.6%; foodstuff and eating service by 9.2%; drinks, cigarettes, textiles, hats and footwear both rose by 6.1%.

Gold prices in May of 2007 rose by 2.3% over last month, 7.1% against last December but decreasing by 1% over same period last year. USD prices in May increased slightly by 0.2% over last month, but decreasing by 0.2% over December 2006 and the same as same period last year.

Total trade turnovers for the five months were estimated at 39.49 billion USD, increasing by 22.8% over same period last year, of which export rose by 18.4 billion USD, import rising by 26.9%. Because export in 5 months grew rapidly and higher than import so that trade deficit was much higher than the rate of same period last year, achieving 3.26 billion USD, equaling 18% of export turnover, the rates of same period last year were 1.54 billion USD and 10.1% respectively.

Export in 5 months achieved 18.12 billion USD, increasing by 2.8% against same period last year, on average export turnover per month was 3.62 billion USD (the rate of same period last year: 3 billion USD). The domestic economic sector gained 7.95 billion USD, rising by 23.4% of the total turnover, the FDI sector excluding crude oil gained 7.09 billion USD, increasing by 31% and crude oil was 3.08 billion USD, falling by 10.7%. Over 20 export commodities had the increase in turnover against same period last year: textiles gaining 2.7 billion USD, rising by 24.3%; footwear: 1.5 billion USD, by 7.9%; seafood: 1.3 billion USD, by 16.2%; coffee: 1.1 billion USD, by 121.4% (of which export volume: 776 thousand tons, increasing by 74.7% and export price: 26.6%); wood cut products: 947 million USD, rising by 22.7%; electronic and computer: 744 million USD, rising by 18.5%; electric wire and cable: 303 million USD, rising by 19.2%.

Some commodities had turnover decreased over same period last year like crude oil and rice. Crude oil exportation gained the highest turnover but decreased by 10.7% against same period last year, of which export volume was 6.4 million tons, falling by 6.2% and price falling by 4.8%. Rice exportation gained 611 million USD, falling by 4.4% (although average price of 5 months rose by 15.5% it could not make up for the decrease of export volume of 17.2, only gaining 1.9 million tons); bicycle and spare parts achieving 41 million USD, falling by 38.5%.

Viet Nam’s export markets in 4 months continued developing actively, of which big markets were America, EU and Asia. American market gained 2.8 billion USD, increasing by 23.1% and accounting for nearly 20% of markets with main commodities like: textiles: 1.2 billion USD, rising by 32.9%; footwear: 290 million USD; wood and wood products: 267 million USD. EU markets was nearly 2.8 billion USD, rising by 26.5% and accounted for 19.4%, of which the first rank was German with 604 million USD, rising by 32%; England: 422 million USD, by 14.1%; Holland: 320 million USD, by 28.7%; Italy: 269 million USD, by 37%; France: 264 million USD, by 7.8%. Asian markets continued rising slightly, of which Japan: 1.6 million USD, rising by 2.5%; China: 1 million USD.

Import turnovers in five beginning months achieved US$ 21.37 billion, increasing by 26.9% over same period last year. The domestic economic sector achieved US$ 13.54 billion, rising by 26.8% and the FDI sector: 7.83 million USD, rising by 27%; on average import turnover per month was 4.27 billion USD. Notably, import commodity speed in May seemed to be slow, only rising by 9.2%.

For 5 months, import turnovers of machine, equipments, tools, spare parts and materials for domestic production increased over same period last year. Excluding completed automobiles fell by 18%, others increased, that was the active factor of importation in 5 months. Importation of machine, equipments, tools, spare parts and materials had the highest turnover with 3.6 billion USD, rising by 45.1% against same period last year, mainly supplied by Asian markets (about 50%), rising by 32.8%. Import petroleum was 2.67 billion USD, rising by 11.7%, due to the increase in domestic necessity with the import volume of 5.3 million tons, increasing by 15.7%. Import steel gained 1.7 billion USD, raising by 64.7% (import volume was 3 million tons, rising by 39.5%). Fabric was 1.5 billion USD, rising by 27.1%. Both fabric and steel were mainly supplied by China, Taiwan, South Korea and Hong Kong. Electronic, computer and spare parts rose by 35.7%; plastic by 27.4%; chemicals by 46.7%; medicaments by 23.4%; insecticides by 21.6%; cattle food and materials by 69.2%. Automobile import gained 313 million USD, rising by 23.7%; motorbike: 289 million USD, rising by 44.6%.

Transportation

Passenger carriage in 5 months 2007 was estimated at 625.9 million people and 27.1 billion passengers-kilometers, increasing by 8.3% in passengers and 10.4% in passengers-kilometers against same period last year. Of which, the passenger carriage of central management units gained 11.7 million  people and 8 billion passengers-kilometers, rising by 4.5% in passengers and 15.4% in passengers-kilometers, mainly due to the increase in carriage of long distance; local management units gained 613.2 million, accounting for 98% of the total, rising by 8.3% and gaining 19.1 billion passengers-kilometers, rising by 8.5%. By types of transport, passengers carriage by land had a stable increase and higher than the general growth rate, rising by 9.2% in passengers and 9.1% in passengers-kilometers; by river-way rising by 1.9% and 2.2%; airway: 16.9% and 17.1%; by sea-way: 5.6% and 5.7% respectively. However, railway transportation decreased by 3.4% in passengers and 10.1% in passengers-kilometers.

Cargo transport was at 151.2 million tons and 37.3 billion tons-kilometers, increasing by 7.6% in tons and 6.9% in tons-kilometers versus same period last year. By types of transport, cargo carriage by land gained 103.1 million tons and 5 billion tons-kilometers, increasing by 8.9% in tons and 9.1% in tons-kilometers; sea-way: 15.6 million tons and 28 billion tons-kilometers, rising by 5.6% and 6.6%; river-way: 5.7% and 5.9% respectively; by railway and airway both decreased over same period last year.

International visitors to Vietnam

In May, international visitors to Vietnam were estimated at 304.8 thousand, increasing by 11.7% over same period last year, of which arrivals mainly by airway and increasing by 26%, by sea-way: 9.9%; arrivals by land rose again as compared with last month but still decreasing by 24.8% against same period last year. Generally for 5 months, international visitors to Vietnam were estimated at 1.8 million, increasing by 12.4%. Of which arrivals for tourist and relaxing purpose were 1.1 million (accounting for 61.6%), increasing by 17.3%; for visiting relatives 281.6 thousand, by 22.1%; for business purpose 240.8 thousand, by 4.8% and for other purposes only accounting for 8.7%, falling by 15.3%. Following countries have more increased rates of visitors to Viet Nam: South Korea: 223.2 thousand visits, increasing by 22.6%; America: 181.7 thousand visits, rising by 11.6%; Japan 179.2 thousand visits, rising 22.7%; Taiwan: 126.9 thousand visits, increasing by 9.6%; however, visitors from China decreased due to some problem in granting laissez-passer, gaining 222 thousand visits, falling by 16.2%. Following countries have over 40.000 visits to Viet Nam: Malaysia, France, England, German, and Canada increasing from 15.3% to 63%. Visitors came from Lao and Cambodia decreased rapidly.

The Post and Telecommunication: In May, new telephone subscribers were estimated at 1.7 million. Generally for 5 beginning months, new telephone subscribers were estimated at 7.4 million, rising by 166.5% over same period last year, that brought the total subscribers in the whole country to 34.8 million to the end of May 2007. Of which, the Post & Telecommunication Corporation achieved 20.3 million.  New internet subscribers in May were estimated at 132.3 thousand, bringing the total subscribers to 4.5 million to the end of May.

Total turnovers of the Communication in 5 months were estimated at 24 trillion VND, of which  turnover of the Post & Telecommunication Corporation was 16.5 trillion VND (accounting for 68.7%) with 15.5 trillion VND coming from Telecommunication, 656 billion VND from Post and 709 billion VND from other communication services.

Tags: Vietnam economic 2007, Vietnam economic statistics, Vietnam's economy situation