The Vietnamese economy in the first 8 months of 2019
Posted on 29 Aug 2019
In the first 8 months of 2019, the Vietnamese economy has made some major development in fields such as fishery, mining, water supply and waste treatment, newly-registered enterprises, or the Vietnamese goods’ export, etc., leading to an astounding growth.
However, it is undeniable that we have had to face some major issues, including the decrease in agriculture, manufacturing and processing sector, etc., leaving some serious damages to the economy. Amidst the vast amount of information, it could be difficult to find out which of the information you need to pay your attention to. Hence, VietnamCredit presents to you our article on the Economic situation of the first 8 months of 2019, providing you with the most notable and major indexes regarding the changes in the Vietnamese economy in one year, as well as its contributors, thus aiding you in gaining information on your subject and making the correct business decisions.
1. Agriculture and fishery
By 15th August, the total winter rice of the country had reached 1,473.9 thousand hectares, equaling to 95.6% of the figure of the same period last year, with the North produced 1,067.1 thousand hectares, equaling to 96.4% of the figure of the same period last year; and the South produced 406.8 thousand hectares, equaling to 93.3%.
By 15th August, Vietnam had sowed 863.3 thousand hectares of corn, equaling to 96.9% of the amount from last year; 100.3 thousand hectares of sweet potato, equaling to 98.2%; 159.6 thousand hectares of peanut, equaling to 95.3%; 39.9 thousand hectares of soybean, equaling to 95.9%; 897.7 thousand hectares of vegetables, equaling to 101.4%.
Cattle breeding was generally stable and poultry farming had developed strongly. By August, the whole country's buffalo population was estimated to have decreased by 3.1% over the same period last year; cow herds had increased by 2.4%; pigs had decreased by 18.5%; poultry had increased by 10%.
In August, the national fishery output reached 712.6 thousand tons, increasing by 4.8% over the same period last year, in which fish products accounting for 502.3 thousand tons, up 5.1%; shrimp products accounting for 103.2 thousand tons, up 6.1%; other fishery products accounting for 107.1 thousand tons, up 2.4%.
In the first 8 months of 2019, the total fishery output was estimated to be 5,228.6 thousand tons, increasing by 5.4% comparing to the same period last year, in which aquaculture accounting for 2,727.5 thousand tons, up 6%; fishing accounting for 2,501.1 thousand tons, up 4.8% (sea fishing output reached 2,380.7 thousand tons, an increase of 4.9%)
2. Industrial production
Industrial production in the first 8 months of 2019 was at a moderate increasing level of 9.5% comparing to the 10.8% figure of the same period last year, in which the manufacturing and processing sector had increased by 10.6% comparing to the 13.1% of the same period last year, contributing 8.1% to the general increase; the mining sector slightly increased by 2.5%, contributing 0.4% due to the sharp growth of coal and metal ores mining, compensating for the decrease in crude oil mining; electricity production and distribution increased by 10.2%, contributing 0,9%; water supply and waste treatment increased by 7.4%, contributing 0.1%.
3. Business registration situation
In the first 8 months of 2019, the whole country had had 90.5 thousand enterprises registering for new establishment with a total registered capital of 1,150.7 trillion dongs, up 3.5% in the number of enterprises and 31% in the registered capital comparing to the same period in 2018; the total amount of enterprises returning to operation was 25.5 thousand, increasing by 21.8% over the same period last year, bringing the total figure newly-establish and returning enterprises in the last 8 months of 2019 to nearly 116 thousand enterprises.
The amount of enterprises with limited business suspension, enterprises with temporary business cease and enterprieses which had finished the dissolution procedure were 20.1 thousand, 25.7 thousand and 10.6 thousand, respectively.
The realized investment capital from the State budget reached 189.2 trillion VND, equaling to 53.1% of the year’s plan and up 3.8% over the same period last year (51.8% and 10.4%, respectively), with the Central-managed capital reached VND 23.5 trillion, equaling to 48.7% of the year's plan and down 29.4% against the same period last year, and the Local-managed capital reached VND 165.7 trillion, equaling to 53.8% of the year’s plan and up 11.3% against the same period in 2018.
From the beginning of the year to June 20, 2019, FDI had attracted 2,406 newly-licensed projects with the total registered capital of US$9,127.9 million, increasing by 25.4% regarding the number of projects and decreasing by 323% regarding the number of registered capital comparing to the same period in 2018. The total of newly-registered capital and additional capital in 8 months reached US$13,117.8 million, down 31.2% from 2018’s same period. Realized FDI capital in the first 8 months of 2019 was estimated at US$ 12 billion, increasing by 6.3% over the identical period in 2018.
In terms of FDI-attracting fields, the manufacturing and processing sector was the leader with the registered capital of licensed projects reached 6,807.1 milllion USD, accounting for 74.6% of the total newly-issued capital; the real estate sector’s reached 852.3 million USD, accounting for 9.3%; the remainings reached 1,468.5 million USD, accounting for 16.1%.
5. Goods export & import
The total export & import turnover in the first 8 months 2019 was estimated to be at 336.56 billion USD, with the export turnover reached 169.98 billion USD, increasing by 7.3% over the same period last year. The total export turnover of the domestic economic sector in the first 8 months of the year reached 52.04 billion USD, increasing by 13.9% and accounting for 30.6% of the total export turnover comparing to the 28.8% figure from last year while the export turnover of the FDI sector (including crude oil) reached 117.9 billion USD, increasing by 4.6% and accounting for 69.4%.
In terms of export markets, the US was the largest market with a turnover of 38.6 billion USD, increasing by 25.3% over the same period last year; followed by the EU market with 27.7 billion USD, decreasing by 0.5%; China market reached 23.8 billion USD, decreasing by 2.5%; the ASEAN market reached 17.3 billion USD, increasing by 3.65; the Japan market reached 13.4 billion USD, increasing by 9.9%; and the Korea market increased to 12.6 billion USD, up 5.3%.
The import turnover of the first 8 months of 2019 was estimated to be 166.58 billion USD, increasing by 8.5% comparing to the same period in 2018, in which the domestic economic sector reached 70.43 billion USD, increasing by 13.9%; while the FDI sector reached 96.15 billion USD, increasing by 4.8%.
In terms of the import markets, after the first 8 months of 2019, China was still the biggest importer to the Vietnamese market with a turnover of 49.2 billion USD, increasing by 18.2 over the same period last year, followed by the Korea market at 31 billion USD, down 0.3%; the ASEAN market reached 21.6 billion USD, up 4.6%; the Japan market reached 12.4 billion USD, up 0.6%; the EU market reached 9.9 billion USD, up 11.8%; and the US market reached 9.4 billion USD, up 9%.
6. Consumer price, gold price and USD value indexes
The average CPI in the first 8 months of 2019 increased by 2.57% comparing to the same figure in 2018; the average basic inflation in the first 8 months of 2019 increased by 1.9 % comparing to the same figure in 2018.
The domestic gold price continued to increased together with the global gold price due to the geo-politic tension in the Middle East, the trade tension between America and China, and the decreasing USD value as the Federal Reserve System had decreased the interest rates since 31st July 2019. The domestic gold price had increased by 14,93% over the same period last year. The USD value had decreased by 0.13% over the same period last year.
Source: GSO, Compiled by VietnamCredit