Five Industrial Milestones in 2006

 

The Vietnamese industry recorded a total estimated turnover of VND490,819 billion (US$30.67 billion) in 2006, an increase of 17 per cent over 2005. This was the 16^th year in a row Vietnam enjoyed two-digit industry growth.

 

The State-owned sector maintained its leading role with contributions of 31.8 per cent. This rate was 2.3 per cent lower than that in 2005, but the production value rose 9.1 per cent. Centrally-run SOEs made up 23.4 per cent and locally-run SOEs contributed 8.4 per cent. The production growth of centrally run SOEs and locally run SOEs were 11.9 per cent and 2 per cent.

 

Vietnam achieved the building of its largest oil tankers ever, with individual load of 13,500 tonnes, with construction supervised by Japanese registration agencies.

 

In 2006, Vietnam set up four leading industrial economic groups; namely Vietnam National Oil and Gas Group (PetroVietnam), Vietnam Electricity Group (EVN), Vietnam Coal and Minerals Industries Group (Vinacomin) and Garment and Textile Group (Vinatex), which contributed 10 per cent of the country’s industrial production value. The four groups made revenues of VND258,300 billion (US$16.12 billion), including US$6.1 billion export earnings.

 

A total of 46 SOEs with combined chartered capital of VND5,973.5 billion (US$373.34 million) went public in 2006, exceeding the yearly target by 31.4 per cent, or 35 SOEs. Listed industrial companies accounted for 14 per cent of all listed companies and held 32.54 per cent of listing value on the stock market.

 

Vietnamese industrial companies invested US$347.3 million overseas in 2006, including both fresh capital and increased capital.

 

In 2006, some US$80 million was disbursed, or 23 per cent of total registered capital.

 

Vietnam exploited its first barrels of commercial crude oil from Block 433a & 416b in Algeria and Block SK305 in Malaysia, both invested by Vietnam National Oil and Gas Group. Petroleum Technical Services Co. (PTSC) also invested in Singapore.

 

In 2006, Vietnam built its first hydropower plant in a foreign country. It was the 250-MW Sekaman hydropower plant 3 in Laos.

 

The industrial sector accounted for 61.5 per cent of total projects (490 out of 797 projects) and 66.8 per cent of total capital (US$5.05 billion out of US$7.5 billion) foreign investors registered in Vietnam in 2006.

 

A highlight in attracting foreign direct investment (FDI) capital in 2006 was the hi-tech field. Notably, Intel Corp. invested US$1 billion in a chip assembly and testing factory in Saigon Hi-tech Park in Ho Chi Minh City. According to experts, the Intel project will draw its satellite factories into the city. The Intel project will also be a basis for Ho Chi Minh City to develop hi-tech zones.

 

The export of industrial products kept growing in 2006, surpassing US$30 billion, representing an increase of 22.4 per cent against 2005 and accounting for 76.1 per cent of the national export earnings. In 2006, Vietnamese WTO entry created new opportunities for Vietnamese commodities to penetrate more deeply into the world market.

 

Several industrial commodities are highlights of 2006, such as garments and textiles with US$5.9 billion, up 22 per cent on year; footwear with US$3.55 billion, up 17 per cent; electronic and computer parts with US$1.77 billion, up 24 per cent; woodwork with US$1.9 billion, up 21.8 per cent; and plastics with US$178 million, up 36.6 per cent.

 

Processed exports made up 52 per cent of total export earnings for the country and 68.2 per cent of the total export revenues of industrial commodities. These figures showed the right track for developing the Vietnamese industry: increasing the proportion of processed industrial products and reducing raw material exports.