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Vietnam’s economic overview (February, 2021)

Vietnam’s economic overview (February, 2021)

Saturday 03, 04 2021

Covid
1. Production of agriculture, forestry and fisheries


a) Agriculture production

As of mid-February, 2,606.1 thousand hectares of rice had been cultivated. Along with the cultivation of rice, 207.7 thousand hectares of maize had been cultivated, equivalent to 97.2% of that in the same period last year; the figure for sweet potatoes was 43.3 thousand hectares, equivalent to 100.2%; the figure for soybeans was 5.3 thousand hectares, equivalent to 71.6%; the figure for peanuts was 68.8 thousand hectares, equivalent to 92.2%; and 419.6 thousand hectares was the figure for vegetables and beans.

Agriculture production

In this month, buffalo and cow breeding was generally stable. African swine fever was under control, with only small outbreaks emerging. Poultry husbandry was well developed. It is estimated that in February, the total number of cows increased by 2.2% against the same period last year while the figure for buffalo decreased by 2.7%; the total number of pigs increased by 15.5%; poultry increased by 6.5%. 

b) Forestry production

Forestry production

In February, the area for newly planted forest was estimated at 8.9 thousand hectares, a decrease of 1.1% over the same period last year. 

Damaged forest area in February (from January 15 to February 15, 2021) was 73.20 hectares. Generally, in the first 2 months of the year, there were 200.8 ha of forest damaged, an increase of 3.5% over the same period last year. In particular, the burnt forest area was 82.9 ha, a decrease of 9.9%; deforested area was 117.9 ha, up 15.6%.

c) Fisheries production

Fisheries Production

Fishery production was estimated at 573.8 thousand tons, increasing by 0.5% over the same period last year. Generally, for the first 2 months of 2021, the output of aquatic products was estimated at 1,141.4 thousand tons, up 1.5% over the same period last year. In particular, aquaculture production reached 600.5 thousand tons, increasing by 2.5%; and capture fisheries production reached 540.9 thousand tons, increasing by 0.5%.

2. Industrial production

Industrial production

The index of industrial production (IIP) in February 2021 is estimated to decrease by 21.1% from the previous month and by 7.2% from the same period last year. 
For the first 2 months of 2021, the IIP was estimated to increase 7.4% over the same period last year. In particular, processing and manufacturing increased by 10.4%, contributing 8 percentage points to the overall increase; electricity production and distribution rose by 4.3%, contributing 0.7 percentage points; water supply, wastewater management and treatment rose by 4.8%, contributing 0.4 percentage point; while the mining industry fell by 11%, contributing -1.7 percentage point.

3. Business registration


The number of newly established enterprises in February 2021 decreased compared to the previous month and the same period last year because February coincided with the Lunar New Year. 
In February 2021, there were 8.083 thousand newly established enterprises with a total registered capital of 179.7 trillion VND, and the number of registered employees was 56.9 thousand employees. The average registered capital per newly established enterprise was 22.4 billion VND, a 45.5% increase over the previous month. There were 4,604 enterprises returning to operation, which is a decrease of 29.2% over the previous month and an increase of 26.8% over the same period in 2020. There were 3,593 enterprises suspending their business temporarily, 2,606 enterprises stopping operation, waiting for dissolution procedures and 1,500 completing dissolution procedures.

Business registration

Generally, in the first 2 months of 2021, there were 18.1 thousand newly registered enterprises with a total registered capital of 334.8 trillion VND and the total number of registered employees was 172.8 thousand employees. The average registered capital of a newly established enterprise in 2 months reached 18.5 billion VND, up 46.4% over the same period last year. 

4. Investment


Due to the fact that Lunar New Year fell into February and because of the Covid-19 outbreak in some major provinces and cities, many projects and works were delayed. Therefore, the rate of realized investment capital from the State budget in the first 2 months of the year is not high, equal to only 9% of the year’s plan.

In February, the total realized investment capital from the State budget was estimated at 17.7 trillion VND, a decrease of 3.1% over the same period last year. Generally, in the first 2 months of 2021, the realized investment capital from the State budget reached 40.9 trillion VND, equaling 9% of the year plan and increasing 10.6% over the same period last year.

INVESTMENT

As of February 20, 2020, the total foreign investment capital into Vietnam, including newly registered capital, adjusted registered capital and capital contribution and share purchase of foreign investors, reached 5.46 billion USD, decreasing by 15.6% over the same period last year. Realized FDI capital in February was estimated at 2.5 billion USD, up 2% over the same period last year.

5. Trade 


Because of the Lunar New Year holidays and the impacts of the Covid-19 epidemic, domestic trade, transport and tourism activities were much less active than that in the previous month. Goods import and export activities of Vietnam in the first 2 months of this year reached a high rate. Total export and import turnover in the first 2 months of this year was estimated at 95.81 billion USD, up 24.5% over the same period last year, of which exports reached 48.55 billion USD, up 23.2%; import reached 47.26 billion USD, up 25.9%. The balance of trade in goods in the first 2 months of the year was estimated to have a trade surplus of 1.29 billion USD.

The total retail sales of consumer goods and services in February were estimated to reach 439.7 trillion VND, a decrease of 5.4% over the previous month and an increase of 8.2% over the same period last year. Generally, for the first 2 months of 2021, the total retail sales of consumer goods and services reached 904.5 trillion VND, up 5.49% over the same period last year, if excluding the price factor, it would increase by 5,52%.

It is estimated that in February 2021, export turnover of goods reached 20 billion USD, decreasing by 29.9% over the previous month and by 4.7% over the same period last year. Generally, for the first 2 months of 2021, export turnover was estimated at 48.55 billion USD, up 23.2% over the same period last year. In 2 months, there were 9 items with an export turnover of over 1 billion USD, accounting for 73.8% of the total export turnover.

Regarding the structure of goods export, in the first 2 months of the year, export value of heavy industrial goods and minerals were estimated at 26.6 billion USD, up 27.8% over the same period last year. Export value of light industry and handicraft products were estimated at 17.3 billion USD, up 18.6% while that of agricultural and forestry products reached 3.6 billion USD, up 22.2%. Aquatic export turnover reached 1 billion USD, up 0.7%.

Trade

The United States was the largest export market of Vietnam in the first 2 months of this year with a turnover of 14.2 billion USD, an increase of 38.2% over the same period last year. Following is China with 8.5 billion USD, up 54.3%; the EU market reached 6.3 billion USD, up 22.7%. ASEAN market reached 4.2 billion USD, up 6.2%. South Korea reached 3.4 billion USD, up 16.8%, and export to Japan reached $ 3.2 billion, up 3%.

It is estimated that in February 2021, import turnover of goods reached 20.8 billion USD, down 21.4% over the previous month and up 10.5% over the same period last year. Generally, in the first 2 months of 2021, import turnover was estimated at 47.26 billion USD, up 25.9% over the same period last year.

Regarding the structure of imported goods in the first 2 months of 2021, import value of materials for production was estimated at 44.3 billion USD, up 26.4% over the same period last year and accounting for 93.7% of total import turnover. Import value of consumer goods were estimated at 2.96 billion USD, up 18.4% and accounting for 6.3%.

China was Vietnam's largest import market with an estimated turnover of 17.3 billion USD, up 85.7% over the same period last year, following were South Korea, ASEAN market, EU market, the United States, etc.
In February, Vietnam saw a trade deficit of 800 million USD. Generally, for the first 2 months of 2021, the trade balance of goods was estimated to have a trade surplus of 1.29 billion USD.

6. Consumer price index and inflation


That Vietnam Electricity has ended its support program to reduce electricity prices and electricity bills for customers, and the increase in food, and public transport service prices during the Lunar New Year are the main reasons for the CPI in February 2021 to increase.

February’s consumer price index (CPI) increased by 1.58% over the previous month, and by 0.70% over the same period last year. Average CPI in the first 2 months of 2021 decreased by 0.14% compared to that of the same period in 2020.

Core inflation in February 2021 increased by 0.48% over the previous month and by 0.79% over the same period last year. Core inflation in the first 2 months of this year on average increased by 0.64% compared to that of the same period in 2020.
 

Source: GSO

Categories
Vietnam Economy

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