Top 10 Economic Events in 2019

11:46:08 AM | 3/1/2020

Viet Nam’s ten outstanding economic events in 2019 are:

1. High GDP growth rate

In 2019, Viet Nam is expected to attain a GDP growth rate of 7.03% amid increasing regional and international strategic competition. This is the second consecutive year Viet Nam has fulfilled all 12 goals set by the National Assembly, especially a trade surplus of US$ 9.94 billion and FDI attraction of US$ 38.02 billion, and an inflation rate of under 3%. 2019 is the fourth year in row in which Viet Nam has succeeded in controlling the inflation rate below 4%.

2. Signing EVFTA & EVIPA with EU

The European Union-Vietnam Free Trade Agreement (EVFTA) and the EU – Viet Nam Investment Protection Agreement (EVIPA) were officially signed on June 30, 2019 in Ha Noi. The two documents are “new-generation” deals with higher and broader commitments between Viet Nam and the EU. The EVFTA is expected to help increase Viet Nam’s GDP by 2.18-3.25% in the 2019-2023 period, and 4.57%-5.03% in the following five years.

3. First resolution on foreign attraction

On August 20, 2019, the Politburo issued Resolution 50-NQ/TW on orientations to perfect mechanisms, policies, raise quality and efficiency of foreign investment by 2030. This was the first time the Politburo issued a resolution on FDI which was highly valued by both domestic and foreign investors.

4. Jumping four notches in 2019 global competitiveness index

On October 9, 2019, the World Economic Forum (WEF) reported that Viet Nam jumped ten places in the 2019 global competitive index (GCI) from 77th in 2018 to 67th in 2019; making it the most improved country of 2019. Viet Nam jumped from 96th to 79th in the Burden of Government Regulation index and from 88th to 76th in the Efficiency of Legal Framework in Settling Disputes index. Such positive result gained was owing to tireless efforts in the reform being undertaken by the government at a time when the global economy was coping with a lot of uncertainties due to increasing geopolitical and trade tensions. Tireless

5. African swine fever disease spreads

On February 19, 2019, the Ministry of Agriculture and Rural Development officially confirmed the first case of African swine fever disease in Viet Nam. The whole political system has taken drastic steps to combat the disease. As of mid-December, Viet Nam culled nearly 6 million pigs weighing 342,802 tons, accounting for 9% of total output. The disease has caused a pork shortage in the market and raised pork prices at the year end.

6. National target program on new rural building completed nearly two years ahead of schedule

On October 19, 2019, the Central Committee on National Target Program on New-Style Rural Area Building convened a national conference on ten-year implementation of the program (2010-2020). The program mobilized US$ 103 billion to develop infrastructure, production, and improve living standards, socio-cultural life in rural areas. As of October 2019, 4.665 communes were recognized as new-style rural areas, surpassing the target by 2.4%.

7. Banks join charter capital hike race

The year of 2019 witnessed a series of commercial banks to raise their charter capital in accordance with Circular 41/2016/TT-HNNN on stipulating the capital adequacy ratio for foreign-owned banks and branches of foreign-owned banks to meet Basel II standards which will take effect on January 1, 2020.

8. Private aviation market boom

On January 16, 2019, Bamboo Airways officially joined the aviation market with the first flight linking HCMC and Ha Noi. Vinpear Air, Vietravel Airlines, Vietstar, and Kite Airlines are finalizing necessary procedures for their wings to take off.

9. Optimizing Industry 4.0

On September 27, 2019, the Politburo issued Resolution 52-NQ/TW on a number of policies on the country’s proactive involvement in the Fourth Industrial Revolution. The resolution set a vision toward 2045. Accordingly, Viet Nam will become one of the leading centers of manufacturing, smart service, startup and innovation in Asia, which has high labor productivity and is capable of mastering and applying modern technologies to all fields of socio-economy, environment, national defense and security.

10. Works start on Eastern sector of North-South Express

On September 16, 2019, PM Nguyen Xuan Phuc commenced the construction of the Cam Lo – La Son highway connecting Quang Tri with Thua Thien – Hue province. The 98km section has a total investment of over VND7.66 trillion (US$329.28 million) sourced from the Government bonds. The Cam Lo – La Son section is the first subproject of the 11 subprojects of the North-South Expressway in the East to be constructed this year. According to the national expressway planning by 2020 with a vision to 2030, the North-South Expressway from Lang Son to Ca Mau province has a total length of around 2,109km. Of which, the North-South Expressway in the East has a total length of about 645km including 11 subprojects.