10 Outstanding Economic and Diplomatic Events of Vietnam in 2019

In 2019, against the backdrop of complicated global and regional economic fluctuations, Vietnam's economy still moved forward with very impressive growth momentum. Vietnam Business Forum Magazine would like to introduce 10 outstanding economic and diplomatic events of Vietnam in the past year.

1. Vietnam achieves GDP growth of 7.02%, one of the best performers in the world

In 2019, Vietnam achieved GDP growth of 7.02% amidst global uncertainty and strategic competition in the region and the world. This was the second consecutive year Vietnam fulfilled all 12 targets set by the National Assembly.

Notably, despite the high GDP growth, the economy still maintained macro stability. Consumer price index (CPI) growth slid to 2.79%. This is also the fourth consecutive year inflation has been kept below 4%. The public debt to GDP ratio continued to shrink.

2. Total import-export value exceeds US$500 billion for the first time

The gross import-export value reached US$500 billion for the first time (ended the year with about US$516.96 billion, up 7.6% over 2018), only two years after hitting the US$400-billion milestone. In particular, exports increased 8.1% to US$263.45 billion. Imports were well controlled. The trade surplus set a record high of US$9.94 billion, the fourth year in a row with a record trade surplus. This result helped Vietnam stand among the Top 30 countries in the world for trade growth.

3. New businesses reach record high

In 2019, Vietnam had 138,100 newly registered enterprises with a total capital of over VND1,730 trillion, a year on year growth of 5.2% in business entities and 17.1% in value. This was the largest-ever number of enterprises set up in a year. New businesses average initial registered capital of VND12.5 billion. The country now has 760,000 active businesses.

4. The Politburo issues Resolution on foreign investment attraction

On August 20, 2019, the Politburo issued Resolution 50-NQ/TW on “orientations for perfecting institutions and policies, improving the quality and effectiveness of foreign direct investment (FDI) cooperation to 2030”.

The first issuance of a resolution on FDI by the Politburo was highly appreciated by domestic and foreign investors. The resolution specifies Vietnam's strategic priorities in FDI attraction in the coming period, including projects that adopt cutting-edge technology, advanced technology, clean technology, modern management, high value-added and have ripple effects and connect with global production and supply chains. The resolution is a premise for Vietnam to attract higher-quality FDI capital.

5. The Politburo issued Resolution on Industry 4.0

On September 27, 2019, the Politburo issued Resolution 52-NQ/TW on “guidelines and policies on active participation in the Fourth Industrial Revolution". The resolution sets the goals that Vietnam will become a leading center for manufacturing, services, startup and innovation among Asia's leading groups by 2045.

The resolution showed that Vietnam is actively joining in the Fourth Industrial Revolution. This is a particularly important strategic task, both urgent and long-term, for both the political system and the entire society, associated with the process of extensive international integration.

6. Enforcing Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and signing the Vietnam - EU Free Trade Agreement and Investment Protection Agreement (EVFTA and IPA)

CPTPP is a new-generation free trade agreement (FTA) signed by 11 member countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The agreement, which entered into force for Vietnam on January 14, 2019, is a comprehensive agreement covering the principles of trade, investment, intellectual property and many other contents.

EVFTA is one of the largest free trade agreements that Vietnam has ever joined. This is expected to change policy institutions and develop Vietnam's economy to a new height when it is executed.

7. Impressive growth in Vietnam's tourism

International tourist arrivals to Vietnam increased to a record of 18 million in 2019, 16% more than a year earlier. Domestic visitors were counted at 85 million, up 6% on year. Total tourism revenue was estimated at more than VND720 trillion, up over 16% against 2018.

In addition to these impressive figures, in the past year, Vietnam received many global tourism awards such as “World's Leading Heritage Site”, “World's Best Golf Destination 2019”, “Asia’s Top Destination” (two consecutive years), and “Asia’s Top Culinary destination.”

The competitiveness of Vietnam's tourism was also constantly improved in the World Economic Forum (WEF), ranking No. 63 among 140 economies.

8. U.S.-DPRK Summit in Hanoi

The second United States-Democratic People's Republic of Korea summit between U.S. President Donald Trump and Korean leader Kim Jong-un was held in Hanoi from February 27-28, 2019. According to experts, choosing Vietnam as a meeting destination was symbolic. Vietnam is a booming economy and playing an increasingly active diplomatic role in the region and in the world. Vietnam is also one of the few countries that have friendly relations with both Washington and Pyongyang.

9. Vietnam assumes ASEAN Chairmanship 2020

On the night of November 4, at the ASEAN Chairmanship Handover Ceremony, Prime Minister Nguyen Xuan Phuc received the symbolic gavel from the Prime Minister of Thailand and announced the theme of ASEAN 2020 as “Cohesive and Responsive”, along with some major orientations of Vietnam for ASEAN in 2020.

According to Prime Minister Nguyen Xuan Phuc, in 2020, Vietnam wishes to focus on strengthening ASEAN's sustainable cohesion by strengthening solidarity, unity and economic connectivity, deepening the values and identity of the ASEAN Community, improving and enhancing the working performance of the ASEAN apparatus and promoting ASEAN's partnerships in the global community. “Let’s think Community, act Community.” Vietnam looks forward to active support from ASEAN member countries and partners to realize the thematic spirit of ASEAN 2020.

10. Vietnam is elected, near unanimously, as non-permanent member of the UN Security Council

On the evening of June 7, 2019 (Vietnam time), the 73rd Meeting Session of the United Nations General Assembly (UN) began the vote to choose five countries to be non-permanent members of the UN Security Council in the 2020-2021 tenure. According to the voting result, a total of 192 out of 193 member countries and territories of the UN General Assembly voted for Vietnam as a non-permanent member of the Security Council.

The fact that Vietnam was supported by nearly all voters met the expectations and aspirations of all Vietnamese people, while also showing positive, substantive and responsible contributions of Vietnam to the UN in general and to the Security Council in particular for many years as recognized by the international community. This was the second time Vietnam was elected as a non-permanent member of the UN Security Council, after its first term in 2008-2009.