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Vietnam’s economic overview (May, 2021)

Vietnam’s economic overview (May, 2021)

Monday 31, 05 2021
Vietnam's economy has faced with a lot of difficulties in the last month due to the impact of the Covid-19 epidemic. However, industrial production in May 2021 still increased by 1.6% compared to the previous month and by 11.6% over the same period last year.

Covid 19

1. Production of agriculture, forestry and fisheries

a) Agriculture production

For the winter-spring rice crop in 2021, 3,007.5 thousand hectares of rice were cultivated, an equivalent to 99.4% of the previous year. The paddy yield in Red River Delta was estimated at 63.6 quintals/ha, and the total output was estimated to reach 6.92 million tons, an increase of 45.1 thousand tons. So far, 1,865.9 thousand ha of winter-spring rice had been harvested in the southern part of the country, accounting for 97.2% of the sowing area and equaling 100.3% of the same period last year.

Agriculture

As of mid-May, 451.8 thousand hectares of maize had been cultivated, equivalent to 99.3% of the same period last year; 73.1 thousand hectares was the cultivation area of sweet potatoes, equaling 95.4%; the figure for soybeans is 16.3 thousand hectares, equaling 87.2%; the figure for peanuts is 121.1 thousand hectares, equaling 96.3%; and 649.9 thousand hectares is the cultivation area of vegetables and beans of all kinds, equaling 101.3%.

It is estimated that by the end of May 2021, the total number of buffaloes in Vietnam decreased by 2.8% compared to the same period in 2020 while the total number of cows increased by 2%; the total number of pigs increased by 11.8%; and the total number of poultry increased by 6.4%.

b) Forestry production

In April, the area for newly planted forest was estimated at 26.5 thousand hectares, an increase of 2% over the same period last year.

For the first 5 months of the year, the area for newly planted forest reached 88.5 thousand hectares, an increase of 3.1% over the same period last year. The number of planted trees reached 41.6 million, up 2.5%. The amount of wood output reached 5,943.4 thousand m3, up 5.4% while that of firewood output reached 8 million steres, decreasing by 1%.

Forestry

Forest fire prevention and fighting, and forest protection have been strengthened. Damaged forest area in May was 107.9 hectares, which is a decrease of 29.1% over the same period last year. Generally, in the first 5 months of the year, there were 592.7 ha of damaged forest, an increase of 5.5% over the same period last year. In particular, the burnt forest area was 165.7 ha, a decrease of 29.5%; while deforested area was 427 ha, up 30.7%.

c) Fisheries production

Fishery production was estimated at 782.8 thousand tons, increasing by 4.2% over the same period last year. Generally, for the first five months of 2021, the output of aquatic products was estimated at 3,267.7 thousand tons, up 2.6% over the same period last year. In particular, aquaculture production reached 1,580.8 thousand tons, increasing by 1.4%.

Fishery

2. Industrial production

Despite the impact of the fourth outbreak of the Covid-19 pandemic, the index of industrial production (IIP) in May 2021 was estimated to increase by 1.6% over the previous month and by 11.6% over the same period last year. In particular, the mining industry decreased by 6.4% and 9.8% compared to the previous month and the same period last year, respectively; processing and manufacturing increased by 2.6% and 14.6%; electricity production and distribution increased by 2.2% and 12%; water supply, waste and wastewater management and treatment activities decreased by 3.1% and increased by 6.8%.

Industrial

For the first 5 months of 2021, IIP was estimated to increase by 9.9% over the same period last year. Specifically, the processing and manufacturing sector increased by 12.6%, contributing 10.2 percentage points to the general growth; the electricity production and distribution sector increased by 8.3%, contributing 0.7 percentage points; water supply, waste and wastewater management and treatment activities increased by 7.5%, contributing 0.1 percentage points; the mining industry alone decreased by 7%, contributing minus 1.1 percentage points.

3. Business registration

In May 2021, there were 11.6 thousand newly established enterprises with total registered capital of 150.6 trillion VND, and the number of registered employees was 72.2 thousand. This means there was a decrease of 22% in the number enterprises, 16.3% in registered capital and 23.7% in the number of employees compared to April 2021. The average registered capital of a newly established enterprise reached 13 billion VND, up 7.3% over the previous month and 23.6% over the same period last year. There were 4,892 enterprises returning to operation in May, down 14.8% over the previous month and 3.2% over the same period last year.

Business

Generally, for the first 5 months of the year, there were nearly 55.8 thousand newly registered enterprises with a total registered capital of 778.3 trillion VND and a total number of registered employees of 412.4 thousand employees, an increase of 15.4% in the number of enterprises, 39.5% in the registered capital and 1.3% in the number of employees over the same period last year. The average registered capital of a newly established enterprise reached 14 billion VND, up 20.9% over the same period last year. In addition, nearly 22.6 thousand enterprises returned to operation, up 3.9% over the same period last year.

In the same period, there were 59.8 thousand enterprises temporarily suspending business, stopping operations waiting for dissolution procedures and completing dissolution procedures, an increase of 23% compared to the same period in 2020. On average, nearly 12,000 businesses withdraw from the market every month.

4. Investment

Realized investment capital from the State budget in May 2021 was estimated at 34.2 trillion VND, up 6.9% over the same period last year. For the first 5 months of 2021, realized investment capital from the State budget reached 133.4 trillion VND, accounting for 28.7% of the year plan and up 14.2% over the same period last year.

Investment

As of May 20, 2021, total foreign investment capital into Vietnam including newly registered capital, adjusted registered capital and capital contribution and share purchase by foreign investors reached 14 billion USD, increased by 0.8% over the same period last year. In particular, there were 613 newly licensed projects with the registered capital of 8.83 billion USD, an increase of 49.4% in the number of projects and a decrease of 18.6% in the registered capital over the same period last year. Realized foreign direct investment capital in the first 5 months of 2021 was estimated at 7.15 billion USD, up 6.7% over the same period last year.

5. Trade

In spite of the complicated development of the Covid-19 epidemic in some industrial hubs, trade and transportation activities in the first 5 months of 2021 still witnessed positive growth compared to the same period last year.

Total retail sales of consumer goods and services in May was estimated at 393.6 trillion VND, down 3.1% from the previous month and 1% from the same period last year. Generally for the first 5 months of 2021, the total retail sales of consumer goods and services reached 2,086.1 trillion VND, up 7.6% over the same period last year.

Retail

It was estimated that in May 2021, export turnover of goods reached 26 billion USD, down 2.1% over the previous month and up 35.6% over the same period last year. Generally for the first 5 months of 2021, export turnover of goods was estimated at 130.94 billion USD, up 30.7% over the same period last year.

Regarding the structure of export commodity in the first 5 months of 2021, export turnover of heavy industrial goods and minerals was estimated at 70.7 billion USD, up 33% over the same period last year, while that of light industrial products and handicrafts was estimated at 47.32 billion USD, up 33%. Export value of agricultural and forestry products reached 9.69 billion USD, up 13.5% while that of seafood products reached 3.24 billion USD, up 12%.

The United States is Vietnam's largest export market with a turnover of 37.6 billion USD, up 49.8% over the same period last year; followed by China with 20.1 billion USD, up 26%; EU market with 16.1 billion USD, up 20.8%; ASEAN market with 11.5 billion USD, up 23.7%; Korea with 8.9 billion USD, up 17.1%, and Japan with 8.4 billion USD, up 7.7%.

Import turnover of goods in May 2021 reached 28 billion USD, up 0.8% over the previous month and 56.4% over the same period last year. Generally, in the first 5 months of the year, the import turnover of goods was estimated at 131.31 billion USD, up 36.4% over the same period last year.

Import turnover of raw materials for production was estimated at 123.15 billion USD, up 36.8% over the same period last year while that of consumer goods was estimated at 8.16 billion USD, up 29.5%.

Import & Export

China is still the largest import market of Vietnam with a turnover of 43.3 billion USD, up 52.8% over the same period last year; followed by South Korea with 20.9 billion USD, up 20.5%; ASEAN market with 18.1 billion USD, up 54.2%; Japan with 8.9 billion USD, up 14.8%; EU market with 6.7 billion USD, up 16.8%; and the United States with 6.4 billion USD, up 6.8%.

In May, there was a trade deficit of 2 billion USD. It is estimated that the first 5 months of 2021, Vientam suffered from a trade deficit of 369 million USD.

6. Consumer price index and inflation

The consumer price index (CPI) in May 2021 increased by 0.15% from the previous month. Average CPI in the first 5 months of 2021 increased by 1.29% compared to that of the same period in 2020. CPI in May 2021 increased by 1.43% over December 2020 and by 2.9% over the same period last year.

May’s core inflation increased by 0.15% over the previous month and by 1.13% over the same period last year. Average core inflation in the first 5 months of this year increased by 0.82% compared to that of the same period in 2020.

Source: GSO

 

Categories
Vietnam Economy

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