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Vietnam’s monthly economic overview (January, 2022)

Vietnam’s monthly economic overview (January, 2022)

Friday 04, 02 2022
Vietnam’s business registration situation in January was much improved when newly established enterprises increased in both quantity and registered capital compared to the same period in 2021. The number of enterprises returning to operation also increased in all fields. This is a positive signal for business development in 2022.

Covid

1. Agriculture, forestry and fishery production

a) Agriculture

As of January 15, 2022, 1,909.8 thousand hectares of winter-spring rice had been cultivated, equaling 104.9% of the same period last year.

Along with the winter-spring rice cultivation, by mid-January, localities across the country had planted 143.9 thousand hectares of maize, equaling 99.3% of the same period last year; 30.9 thousand hectares of sweet potatoes, equaling 91.8%; 3.3 thousand hectares of soybeans, equaling 79.2%; 29.2 thousand hectares of peanuts, equaling 102.4%; 300.5 thousand hectares of vegetables and legumes, equaling 102.1%.

Cattle breeding in the same period experienced stable development. It is estimated that in January, the total number of cows in Vietnam increased by 0.9% over the same period last year, and the total number of pigs increased by 1.8%. The figure for buffaloes decreased by 2.2% while that of poultry increased by 1.9%. As of January 23, 2022, blue-eared swine and avian influenza had disappeared. African swine fever was still raging on in 35 localities.

Agriculture

b) Forestry

In January 2022, the area of newly planted forest is estimated at 7.3 thousand hectares, up 5.6% over the same period last year. The number of scattered forest trees reached 3.8 million trees, up 1%; timber production reached 940.5 thousand m3, an increase of 4.5%; firewood production reached 1.5 million steres, down 0.4%. In January 2022, the total area of damaged forest was 55.7 hectares, down 51.4% over the same period last year.

Forestry

c) Fishery

Aquaculture production in January 2022 was estimated at 589.9 thousand tons, up 1.6% over the same period last year. In particular, aquaculture production reached 321.3 thousand tons, up 2.5%; fishing output reached 268.6 thousand tons, up 0.6%, of which marine fishing production was estimated at 255.1 thousand tons, up 0.6%.

Fishery

2. Industrial production

The index of industrial production (IIP) in January 2022 is estimated to decrease by 3.1% over the previous month and increase by 2.4% over the same period last year. Specifically, the processing and manufacturing industry increased by 2.8%, contributing 2.6 percentage points to the overall growth; electricity production and distribution increased by 5.1%, contributing 0.5 percentage points; water supply, waste and wastewater management and treatment activities increased by 1.2%, contributing 0.02 percentage points; the mining industry alone decreased by 4.6%, contributing minus 0.7 percentage points.

Industrial production

3. Business registration 

In January 2022, there were 13,000 newly established enterprises with a registered capital of more than 192.3 trillion VND and the number of registered employees was nearly 77.1 thousand employees. This means there was an increase of 15.9% in the number of enterprises, an increase of 22.6% in registered capital and 10.5% in number of employees over the previous month. The average registered capital of a newly established enterprise in the month reached 14.8 billion VND, up 5.8% over the previous month and down 3.7% compared to the same period in 2021.

In addition, there were 19.1 thousand enterprises returning to operation (increasing 352.8% compared to December 2021 and 194% compared to January 2021). The total number of newly established enterprises and enterprises returning to operation in January 2022 reached 32.1 thousand, an increase of 93.6% over the same period last year.

Also in January 2022, there were nearly 29.3 thousand enterprises registered to suspend business for a definite time, an increase of 62% over the same period in 2021. There were 7,084 enterprises stopping operation and waiting for dissolution procedures, up 26.5%. About 2,025 enterprises had completed dissolution procedures, down 3.3%.

Business registration

4. Investment

Realized investment capital from the State budget in January 2022 was estimated at 25.3 trillion VND, equaling 4.8% of the year plan and increasing by 8.6% over the same period last year.

The total foreign investment capital registered in Vietnam as of January 20, 2022, including newly registered capital, adjusted registered capital and capital contribution and share purchase by foreign investors, reached 2,1 billion USD, up 4.2% over the same period last year. In particular, there were 103 newly licensed projects with registered capital of 388 million USD, an increase of 119.1% in the number of projects and a decrease of 70.7% in the registered capital over the same period last year. Realized foreign direct investment in Vietnam in January 2022 was estimated at 1.61 billion USD, up 6.8% over the same period last year.

Regarding Vietnam's investment abroad in January 2022, there were 15 projects that were granted investment certificates with the total capital of 44.2 million USD, 13.97 times higher than the same period last year. In general, the total investment capital of Vietnam abroad (newly and additionally granted) reached 36.9 million USD, 11.7 times higher than the same period last year.

Investment

5. Trade

Total retail sales of consumer goods and services in January 2022 is estimated at 470.7 trillion VND, an increase of 6.7% compared to the previous month and 1.3% compared to the same period last year.

Trade

Export turnover of goods in December 2021 reached 34.59 billion USD, which is 75 million USD higher than the estimate. It is estimated that in January 2022, the export turnover of goods may reach 29 billion USD, down 16.2% over the previous month and up 1.6% over the same period last year. In January, there were 7 items with export turnover of over 1 billion USD, accounting for 63.3% of total export turnover.

Regarding the structure of goods export in January 2022, processed industrial products accounted for 88.5%, down 1.5 percentage points over the same period last year; agricultural and forestry products accounted for 7.7%, up 0.7 percentage points; aquatic products accounted for 2.9%, up 0.8 percentage points; fuel and mineral products accounted for 0.9%, equal to the same period last year.

Import turnover of goods in December 2021 reached 31.62 billion USD, which is 353 million USD lower than the estimate. It is estimated that in January 2022, the import turnover of goods will reach 29.5 billion USD, down 6.7% over the previous month and up 11.5% over the same period last year. In January 2022, there were 4 imported items worth over 1 billion USD, accounting for 46.8% of total import turnover.

As for the structure of imported goods in January 2022, capital goods accounted for 93.7%, up 0.2 percentage points over the same period last year while consumer products accounted for 6.3%, down 0.2 percentage points.

Import & Export

In terms of the export and import markets of goods in January 2022, the United States is the largest export market of Vietnam with an estimated turnover of 9 billion USD whereas China is Vietnam's largest import market with an estimated turnover of 10.2 billion USD. There was a trade surplus of 2.1 billion USD to the EU, down 6.4% over the same period last year. The trade deficit from China was 5 billion USD, up 11.7%; from Korea was 3.8 billion USD, up 28.9%; from ASEAN was 1.2 billion USD, up 69.2%; from Japan was 600 million USD.

It is estimated that in January 2022, Vietnam may experience a trade deficit of 500 million USD. In particular, the domestic economic sector might see a trade deficit of 1.8 billion USD; while FDI sector may have a trade surplus of 1.3 billion USD.

6. Consumer Price Index, Gold Price Index and US Dollar

In January 2022, the demand for shopping of Vietnamese people increased dramatically, so the prices of essential consumer goods and services also increased according to the consumption rules on Tet holiday. The increase in domestic gasoline prices in line with world fuel prices are the factors that make the consumer price index (CPI) in January 2022 increase.

The CPI in January 2022 increased by 0.19% compared to December 2021 and by 1.94% over the same period last year. Core inflation in the same period increased by 0.26% over the previous month and by 0.66% over the same period last year.

The domestic gold price increased according to the world gold price. The gold price index in January 2022 increased by 1.08% compared to the previous month but decrased by 0.07% over the same period in 2021. The US dollar price index in January 2022 decreased by 0.32% compared to the previous month and 0.73% over the same period in 2021.

Vietnamcredit

Source: GSO

Compiled by VietnamCredit

 

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Vietnam Economy

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