Economic highlights from December 28-Janaury 3

06-Jan-2016 Intellasia | VGP | 6:00 AM Print This Post

The national economy has identified key driving forces behind its growth, recognising US as the country’s top trade partner, and seen a rebound in inbound tourism for 6th consecutive month and a labour productivity surge of 6.4 percent in 2015 when reviewing activities from December 28- January 3.

Key driving forces of economic growth in 2015

Sound foreign direct investment and strong industrial production sector are among key driving forces of economic growth in 2015.

Vietnam attracted around $ 22.76 billion in foreign direct investment (FDI) this year, an increase of 12.5 percent from the previous year, the general Statistical Office (GSO) reported.

As of mid-December, the country granted licenses to 2,013 FDI projects with a total registered capital of $15.58 billion, up 26.8 percent in quantity but down 0.4 percent in value in comparison with 2014.

Export revenues lower than expected amid oil price fall

Export revenues fell short of expectation due to sharp drop of oil prices, said minister of Industry and Trade Vu HuyHoang at the government’s video conference on Monday.

Vietnam set the export growth of 10 percent this year based on the assumption that oil price would be $100 per barrel. However, the oil price began dipping since the second quarter, down to around $35-36 per barrel currently.

It was estimated that Vietnam lost over $3 billion from falling oil prices, said Hoang.

US – VN’s top trade partner

Bilateral trade has expanded from zero since the day VietNam and the US normalised their diplomatic ties 20 years ago to $36.3 billion in 2014. The figure is expected to hit $40 billion in 2015.

In the sphere of investment, the US ranked seventh among the countries and territories investing in Vietnam with a total direct investment of $10.7 billion by June this year.

Inbound tourism rebounds for 6th consecutive month

Vietnam welcomed as many as 760,800 foreigners in December, representing a month-on-month surge of 2.6 percent and a year-on-year growth of 15 percent, according to the general Statistical Office (GSO).

This was the sixth consecutive month the number of foreign visitors to Vietnam rebounded after 13 straight months of declines.

In 2015, the total number of foreign guests was estimated at 7.9 million, down 0.2 percent against last year, marking the first decline since 2009.

The number of passengers travelling by air rose 0.8 percent; by road down 6.5 percent; and by sea up 27.5 percent.

Labour productivity surges 6.4 percent in 2015

Vietnam’s labour productivity constantly increased at an average rate of 3.9 percent in 2006-2015 period.

Social labour productivity of the economy was estimated at VND 79.3 million per labour (around $3.657), up 6.4 percent against 2014.

Labour productivity increased by 3.4 percent in 2011-2015 and 4.2 percent in 2011-2015.

Labour productivity in 2015 surged by 23.6 percent against 2010 but was lower than the set target of 29-32 percent, contributing to narrow down the gap with other Asean member states.

Ten million people join unemployment insurance

As of late Q3, 2015, over 10 million people joined unemployment insurance, accounting for 18.5 percent of the labour force.

So far, the unemployment insurance premiums are estimated at over VND 7 trillion, fulfilling 80.4 percent of the set goal.

In Q3, 132,700 unemployment insurance beneficiaries got job consultation and 8,000 others received vocational training support.

Five biggest foreign investors in HCM City

HCM City attracted $4.6 billion in foreign direct investment (FDI) in 2015, a year-on-year increase of 47 percent.

The United Kingdom was the largest investor in the city in 2015 with $1.202 billion in 10 projects, accounting for 42.8 percent. It was followed by the Republic of Korea with $465.1 million in 120 projects, British Virgin Islands with $370.3 million, Singapore with $140.8 million, the US with $135.1 million and Japan with $65.9 million.

Da Nang seeks $768 million investment

The central city of Da Nang has called for investment in 19 Public-Private Partnership (PPP) projects, with a total capital of VND16.5 trillion (US$768 million).

The city’s secretariat said these projects were classified under build-operate-transfer, Build-Transfer, Build-Lease-Transfer and Operation and Management models.


Category: Economy, Vietnam

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