Vietnam Confident in Strong Socioeconomic Development in 2006

After reaping remarkable achievements in 2005, Vietnam is taking concrete measures to maintain its high and stable socioeconomic development in 2006. The country is expected to create new breakthroughs in such fields as investment, export and tourism.

 

The National Assembly has set major socioeconomic targets to be realised in 2006, including gross domestic product (GDP) growth of 8 per cent, and growth rates of 3.8 per cent in agriculture, 10.2 per cent in industry, 8 per cent in service and 16.4 per cent in export turnover; creation of 1.6 million jobs; and poverty rate of 20 per cent.

 

To this end, the highest legislative body has defined seven key missions to be completed by agencies and sectors at all levels. First, continuing the perfection of legal documents and policies so as to mobilise all sources of capital, labour, land, natural resource, science and technology for socioeconomic development; taking stricter measures to minimize wastefulness, loss and corruption in infrastructure construction using state budget; fostering the development of markets, especially realty, finance and technology markets; and accelerating the equitisation of state-owned enterprises and the establishment and development of economic groups in important fields, such as posts and telecommunications, coal, mineral, and garment and textiles.

 

Second, intensifying the use of all resources from the state and the people to realise national target programs between 2006 and 2010, including poverty reduction. Total investment capital in the period is estimated at VND2.2 trillion (according to the price of 2005) or US$139.4 billion. Of the capital, some 65 per cent is expected to come from domestic sources, and 35 per cent from foreign ones.

 

Vietnam plans to mobilise some VND370 trillion (nearly US$23.3 billion) for development investment in 2006. To achieve this, the Government is focusing on improving the country's investment environment in different fields, including finance, realty, labour market, science and technology; accelerating international economic integration; and sharpening the national economy's competitive edge. Specifically, it will improve the local markets knowledge regarding finance, realty, the labour market and science and technology, according to the Ministry of Planning and Investment. To enhance investment effectiveness, Vietnam will give the private sector wider access to loans and land, and open the spheres of telecommunications, finance, banking, insurance and realty more widely to foreign investors, while at the same time speeding up the equitisation of state-owned enterprises.

 

Third, enhancing the quality of education and training with a focus on facilitating socialization of the two fields. Stronger investment will be poured into improving educational facilities, especially teaching aids and textbooks, and developing multi-level vocational training systems. Fourth, reinforcing national defense and security.

 

Fifth, centering on dealing with denouncements and complaints regarding corruption, land, and housing, and unsolved cases. Sixth, beefing up inspection and supervision of the dealing with denouncements and complaints, and improving quality of investigation, prosecution, judgment and enforcement of cases. Seventh, speeding up administrative reform, and stepping up inspection to detect and then severely punish wrongdoers in state agencies.

 

Regarding orientations for development of fields and sectors in the 2006-2010 period, the Government has recently stated that Vietnam will focus on fostering services, especially those with great potential such as tourism, aviation, sea transport, finance and banking. The country will lower the labour percentage in agriculture, forestry and fishery to 50 per cent, and increase those in industry and construction to at least 23-24 per cent, and thse in service and trade to at least 26-27 per cent by 2010.

 

In 2006, Vietnam is estimated to attract at least US$6 billion worth of foreign direct investment, up from US$5.8 billion in 2005, said the Foreign Investment Agency under the Ministry of Planning and Investment. The ministry will issue guidelines regarding investment mode diversification and preferential treatment in such fields as high technology, seaport development and construction of apartments for workers, to implement the Unified Investment Law slated to take effect from July 1, and new policies on labour, construction and land management.

  

The ministry will also empower investment departments of cities and provinces, and management boards of industrial parks nationwide to handle investment applications and related issues in a timely manner. It has recently mapped out the list of 94 national key projects worth nearly US$25.7 billion calling for foreign direct investment in the 2006-2010 period. As of December 20, 2005, Vietnam housed 5,918 operational foreign-invested projects with total registered capital of over US$50.5 billion, the agency said, noting that among 73 countries and territories having investment in the country, Taiwan was the biggest investors with 1,408 projects totaling over US$7.9 billion, followed by Singapore with 395 projects valued at nearly US$7.6 billion, and Japan with 590 projects worth roughly US$6.2 billion. 

 

Vietnam, which reaped an export turnover of US$32.2 billion in 2005, has eyed export growth of 16.4 per cent in 2006. The country plans to export 4.5 million tonnes of rice, 780,000 tonnes of coffee, 570,000 tonnes of rubber, 110,000 tonnes of cashew nuts, and 105,000 tons of pepper this year, the Ministry of Agriculture and Rural Development said, noting that it can earn US$330 million and nearly US$1.9 billion dollars from exporting fruit and vegetables, and forestry products, respectively in the year.

 

Recently, the Ministry of Planning and Investment proposed that the Government lower crude oil and coal exports from 2006 to 2010, aiming to ensure sufficient supply of the materials for local industries. Accordingly, Vietnam's crude oil export will decline to 18.5 million tonnes in 2006 and 15.6 million tons in 2010 from 18.1 million tonnes in 2005. Concerning coal, the country will ship 14 million tonnes abroad in 2006, and reduce the volume by one million tonnes each year from 2007 and 2010.

 

Vietnam has targeted to host 20.5 million visitors, including 3.6-3.8 million foreigners, and tourism revenues of some VND36 trillion (nearly US$2.3 billion). It welcomed 16.1 million domestic tourists, and nearly 3.5 million international arrivals in 2005, up 11 per cent and 18.4 percent, respectively, in 2004, according to the country’s General Statistics Office. Vietnam currently houses 400 international travel enterprises, and 6,000 hotels and guesthouses, including 2,575 star rated hotels.

 

In 2005, Vietnam’s GDP stood at VND837,858 billion (according to actual prices) or nearly US$52.7 billion, of which 20.89 per cent came from agriculture, forestry and fishery; 41.03 per cent from industry and construction; and 38.08 per cent from services, according to the office. The country gained GDP growth of 8.4 per cent in 2005, 7.79 per cent in 2004, 7.34 per cent in 2003, 7.08 per cent in 2002, and 6.89 per cent in 2001.

 

 

 

 

 

Dong Phong