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Vietnam’s economic overview (October, 2020)

Vietnam’s economic overview (October, 2020)

Thursday 01, 04 2021
Because the Covid-19 pandemic has been well-controlled in Vietnam, many business and production activities have gone back to normal. In the past month, industrial production has flourished. The processing and manufacturing sector experienced a growth of 8.3% over the same period last year.

Covid 19
1. Production of agriculture, forestry and fisheries

a) Agriculture production
As of mid-October, 1,920.4 thousand hectares of rice had been harvested, equivalent to 96.5% of that in the same period last year. The productivity was estimated to reach 55.7 quintal / ha, an increase of 0.9 quintal / ha while the production reached 10.83 million tons, a decrease of 119.3 thousand tons.

As of October 15, 2020, 66.5 thousand hectares of maize had been cultivated, equivalent to 91.5% of that in the same period last year; the figure for sweet potatoes was 10.8 thousand hectares, equivalent to 92.3%; the figure for soybeans was 2.5 thousand hectares, equivalent to 59.5%; the figure for peanuts was 4 thousand hectares, equivalent to 83.3%; and 78.9 thousand hectares was the figure for vegetables and beans.
Agriculture production
Pig husbandry has gradually recovered. The total number of pigs in October increases by 7.6% over the same period last year; the total number of cows increased by 2.5%; that of poultry increased by 4.3%, and of buffalo decreased by 2%. 

b) Forestry production

In October, the area for newly planted forest was estimated at 28.6 thousand hectares, a decrease of 3.1% over the same period last year. The figure for 10 months was estimated at 198.1 thousand hectares, decreasing 2.7% over the same period last year.  
Forestry
October’s damaged forest area was 66.1 ha, decreasing by 45.6% against the same period last year. Generally, the total damaged forest area in the first 10 months was 1,357.1 ha, decreasing 59.7% against same period last year.

c) Fisheries production

Fishery production was estimated at 786.9 thousand tons, decreasing 1.1% over the same period last year, of which aquaculture production reached 476.1 thousand tons. In the first 10 months of 2020, the total fishery production was estimated at 6,914.6 thousand tons, up 1.3% over the same period last year.
Fishery production

2. Industrial production

The index of industrial production (IIP) in October 2020 is estimated to increase by 3.6% from the previous month and by 5.4% from the same period last year. In particular, the mining industry fell sharply by 14.5%; processing and manufacturing increased by 8.3%; electricity production and distribution rose by 1%; water supply, wastewater management and treatment rose by 9.9% over the same period last year.
Industrial production
For the first 10 months of 2020 in general, IIP is estimated to increase by 2.7% over the same period last year, much lower than the 9.5% increase in the same period in 2019. Specifically, the manufacturing and processing industry increased by 4.2%, contributing 3.6 percentage points to the general growth; electricity production and distribution rose by 3.2%, contributing 0.3 percentage points; water supply, waste and wastewater management and treatment increased by 4.1%, contributing 0.1 percentage points.

3. Business registration


In October 2020, there were 12.2 thousand newly established enterprises with a total registered capital of 165.6 trillion VND, and the number of registered employees was 72.4 thousand employees. The average registered capital per newly established enterprise was 13.6 billion VND, a 31.2% decrease over the previous month. There were 5,044 enterprises returning to operation, which is an increase of 10.4% over the previous month and a decrease of 30.4% over the same period in 2019.
Business registration
For the first 10 months of 2020, there were 111.2 thousand newly established enterprises with a total registered capital of 1,594.1 trillion VND, and the total number of registered employees was 850.3 thousand. The average registered capital of a newly established enterprise in the first 10 months was 14.3 billion VND, up 14.4% over the same period last year. 

So far in 2020, there have been nearly 85.6 thousand enterprises temporarily stopping operation, registering to be dissolved and completing dissolution procedures, which is an increase of 15.1% over the same period last year. 

4. Investment

In October, the total realized investment capital from the State budget was estimated at 52 trillion VND, an increase of 42.2% over the same period last year. For the first 10 months of 2020, the realized investment capital from the State budget reached 354.6 trillion VND, equivalent to 69.8% of the year plan and increasing 34.4% over the same period last year.
Investment
As of October 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 23.5 billion USD, decreasing by 19.4% over the same period last year. The amount of realized FDI capital in the first 10 months was estimated at 15.8 billion USD, down 2.5% from the same period last year.

5. Trade 


The total retail sales of consumer goods and services in October were estimated to reach 450.8 trillion VND, an increase of 2.4% over the previous month and 6.1% over the same period last year. For the first 10 months of 2020, the total retail sales of consumer goods and services reached 4,123 trillion VND, an increase of 1.3% over the same period last year, but if excluding the price factor, it would decrease by 3%.
Trade
It is estimated that in October 2020, export turnover of goods reached 26.7 billion USD, a decrease of 1.7% from the previous month and an increase of 9.9% over the same period last year. Generally, for the first 10 months of 2020, export turnover of goods was estimated at 229.27 billion USD, up 4.7% over the same period last year. 

The export value of heavy industrial and mineral products was estimated at 123.8 billion USD, up 8.4% over the same period last year. That of light industry and handicraft products was estimated at 81.8 billion USD, up 1.5% while that of agricultural and forestry products reached 16.8 billion USD, down 1.5%. 
The US has been Vietnam's largest export market in 2020 with a turnover of 62.3 billion USD, up 24% over the same period last year. Following is China with 37.6 billion USD, up 14%. Export value to the EU market reached 28.9 billion USD, down 3%, to the ASEAN market reached 18.9 billion USD, down 11.6%, to South Korea reached 16.3 billion USD, down 2.6%, and to Japan reached 15.6 billion USD, down 7%.

October’s import turnover reached 24.5 billion USD, an increase of 1.2% over the previous month and 10.1% over the same period last year. Since the beginning of the year, import turnover of goods has reached 210.55 billion USD, up 0.4% over the same period last year. 
Import - Export
Regarding the structure of imported goods, import value of materials for production was estimated at 194.93 billion USD, down 0.02% over the same period last year and accounting for 92.6% of the total import turnover, while that of consumer goods were estimated at 15.62 billion USD, up 6.5% and accounting for 7.4%.

China is Vietnam's largest import market with an estimated turnover of 65.8 billion USD, up 6.2% over the same period last year. Following is South Korea with 37.4 billion USD, the ASEAN market with 24.4 billion USD, Japan with 16.5 billion USD, the EU market with 11.8 billion USD, and the United States with 11.6 billion USD.

Generally, so far in 2020, Vietnam has enjoyed a trade surplus of 18.72 billion USD.

6. Consumer price index and inflation

October’s consumer price index (CPI) increased by 0.09% over the previous month, by 0.09% over December 2019 and by 2.47% over the same period last year. Average CPI in the first 10 months of 2020 increased by 3.71% compared to the same period in 2019.

Core inflation increased by 0.07% over September and by 1.88% over the same period last year. Average core inflation in the first 10 months of 2020 increases by 2.52% over the same period in 2019.
 

Source: GSO

 

Categories
Vietnam Economy

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