Vietnam’s socio-economy in 2017 performed in the context of continuous recovery of the world economy[1], major economies such as the US, China, Japan and the European Union achieved a positive growth. The global investment and trade tended to improve markedly with increasingly consumer confidence, which were positive factors for domestic production. However, the growing trend of populism, protectionism, trade protection, geopolitical changes and trade policies of some major countries were challenges to Vietnam’s economy. In the country, in addition to the shortcomings of the economy such as growth quality, labor productivity and low competitiveness, the decline of the mining and quarrying, along with plummeting pork prices, natural disasters, consecutive storms and floods negatively impacted on agricultural production and challenged the country’s growth target for 2017.

In this situation, the Government and the Prime Minister drastically led and directed the ministries, agencies and localities to focus on synchronous and effective implementation of Resolution No. 01/NQ-CP on the tasks, the main solutions to direct and operate the implementation of the 2017 socio-economic development plan and state budget estimates; steadily set the growth target, issued timely Resolutions and Directives to improve the business environment, promote production; regularly supervised the implementation results, closely monitored the international situation in order to have appropriate and timely solutions and direction. Thus, the socio-economic situation in 2017 continued to change positively and clearly. Results of economic sectors and activities in 2017 were as follows:

      I. ECONOMIC GROWTH

  1. Growth rate of gross domestic product

The gross domestic product (GDP) in 2017 was estimated to increase by 6.81% compared to 2016, of which the first quarter increased by 5.15%; the second quarter went up 6.28%; the third quarter rose 7.46% and the fourth quarter spread 7.65%. This growth exceeded the target of 6.7% and higher than the growth rate of 2011-2016[2], affirming the timeliness and effectiveness of solutions issued by the Government and drastic direction of all authority levels and localities. Out of 6.81% overall growth of the whole economy, the agriculture, forestry and fishery sector showed a significant recovery with an increase of 2.90% (higher than the increase of 1.36% in 2016), contributing 0.44 percentage points to the overall growth; the industry and construction sector expanded 8.00%, comprising 2.77 percentage points; the service sector rose 7.44%, making up 2.87 percentage points.

In the agriculture, forestry and fishery sector, the fishery sub-sector achieved the highest growth with 5.54% since seafood production in 2017 was better than that in 2016, representing 0.17 percentage points to the overall growth. The forestry sub-sector increased by 5.14%, due to its low proportion, comprising only 0.03 percentage points. The agriculture sub-sector increased by 2.07% (the rate in 2016 was 0.72%), making up 0.24 percentage points, showing signs of recovery of the agricultural activities after the severe impacts of natural disasters in 2016. The trend of changing the structure of products in this sub-sector in the direction of investing in products with high economic value showed  efficiency.

In industry and construction sector, the industrial activities rose 7.85%, higher than the growth rate of 7.06% in 2016, contributing 2.23 percentage points to the overall growth. The highlight of this sector was the manufacturing with an increase of 14.40% (the highest increase in the last 7 years[3]), contributing significantly to the overall growth with 2.33 percentage points. The mining and quarrying decreased by 7.10%, reducing 0.54 percentage points of the overall growth. This was the deepest decline from 2011 onwards[4], mainly due to the reduction of over 1.6 million tons of crude oil compared to the previous year; the production of coal mining was only 38 million tons, decreasing more than 180 thousand tons. The construction activities maintained a good growth rate of 8.70%, contributing 0.54 percentage points to the overall growth.

In the service sector, the contribution of a number of large-shared economic activities to the total added value growth as follows: the wholesale and retail activities achieved an increase of 8.36% compared to the previous year, contributing the largest proportion to the added value growth of the economy (0.79 percentage points); the accommodation and catering services had a relatively high growth rate of 8.98% compared to a rise of 6.70% in 2016, contributing 0.33 percentage points; the finance, banking and insurance activities increased by 8.14% (the highest increase in the last 7 years[5]), contributing 0.46 percentage points; the real estate business expanded 4.07% (the highest spread since 2011[6]), making up 0.21 percentage points.

 

The growth rate of gross domestic products

Years 2015-2017

 

 The growth rate compared to the previous year (%)Contribution to the growth of 2017
(Percentage points)
201520162017
Total6.686.216.816.81
Agriculture, forestry and fishery2.411.362.900.44
Industry and Construction9.647.578.002.77
Service6.336.987.442.87
Products taxes less subsidies on production5.546.386.340.73

Size of the economy in 2017 at current prices reached 5,007.9 trillion VND; GDP per capita was estimated at 53.5 million VND, equivalent to 2,385 USD, an increase of 170 USD compared to 2016. Regarding to the economic structure in 2017, the agriculture, forestry and fishery sector accounted for 15.34% of GDP; the industry and construction sector made up 33.34%; the service sector represented 41.32%; the products taxes less subsidies on production accounted for 10.00% (The corresponding structure of 2016 was: 16.32%; 32.72%; 40.92%; 10.04%).

From the expenditure approach of GDP in 2017, final consumption increased by 7.35% compared to 2016, contributing 5.52 percentage points (of which final consumption of households comprised 5.04 percentage points); the asset accumulation increased by 9.8%, contributing 3.30 percentage points; the balance of exports and imports of goods and services was in trade deficit, reducing 2.01 percentage points of the overall growth rate.

  1. Agirculture, forestry and fishery

     a. Agriculture

Agricultural production in 2017 faced challenges due to negative effects of climate changes, storms and rains that caused flooding and dike breaks in some northern localities and early flooding in the Mekong River Delta affected progress, area and yield of the crops.

Production of paddy in 2017 was estimated at 42.84 million tons, dropped by 318.3 thousand tons compared with that in 2016[7] because there was a decrease of both area and yield compared with that over the previous year. Area of paddy in 2017 was estimated at 7.72 million hectares, a decrease of 26.1 thousand hectares compared with that in 2016; Paddy yield reached 55.5 quintals / ha, a slide down of 0.2 quintal/hectare.

Production of paddy, winter-spring paddy this year cultivated 3.08 million hectares, a decrease of 5.7 thousand hectares in comparison with that over the previous winter-spring crop. Area of ​​winter-spring paddy saw a down trend (mainly concentrated in the Red River Delta and Mekong River Delta) due to a change of the weather and some localities partially converted area to other crops[8]. Yield of Winter-spring paddy reached 62.2 quintals/ha, a drop of 0.7 quintals/ha in comparison with that in the previous winter-spring crop; production reached 19.15 million tons, a decrease of 259 thousand tons, of which there was a sharp decrease in some localities: Dong Thap reduced by 165.8 thousand tons; Long An dropped by 96.5 thousand tons; Ha Tinh decreased by 86.8 thousand tons; Can Tho reduced by 59.1 thousand tons.

In 2017, cultivated area of ​​summer-autumn paddy reached 2.11 million hectares, an equal to that over the summer-autumn crop in 2016; the yield reached 54.5 quintals/hectare, a growth of 1.2%; production reached 11.49 million tons, a rise of 1.3%. Production and yield of summer-autumn paddy this year in most regions increased compared with that over the previous year (particularly in the North Central and Central Coastal areas due to negative effects of rain, storms and pests on production and yield), of which the yield in Mekong River Delta reached 54.8 quintals/hectare, a growth of 1 quintal/hectare; production reached 9.05 million tons, an increase of 37.2 thousand tons.

Area of ​​autumn-winter paddy in Mekong River Delta this year was estimated at 769.4 thousand hectares, a slide down of 3.3 thousand hectares compared with that in 2016; yield was estimated at 52.2 quintals/ ha, a growth of 1.8 quintals/hectare; production reached 4.02 million tons, rose by 124.2 thousand tons. Area of ​​cultivated autumn-winter paddy in An Giang fell sharply (a drop of 17.8 thousand hectares) and Dong Thap fell (by 15.1 thousand hectares) because the localities actively flooded into the fields to enhance fertility and prevented epidemics for the following paddy.

Production of winter paddy this year, especially in the North, faced challenges due to the negative effects of weather and pests, large-scale heavy rain at the time of sowing; the widespread of black streak disease during the paddy growth period, and the impacts of storms that caused serious flooding at the end of the crop. Cultivated area of ​​winter paddy reached 1.76 million hectares, a decrease of 17.5 thousand hectares in comparison with that in the previous year; yield was estimated at 46.4 quintals/ha, an increase of 1.4 quintals/ha; production was estimated at 8.18 million tons, a decrease of 327.3 thousand tons. Of which, area of ​​winter paddy in the North reached 1.13 million hectares, a decline of 18.7 thousand hectares compared with that over the previous year, mainly because the localities converted a part of paddy area into other purposes[9]; yield was estimated at 46.1 quintals/ha, a slide of 3.8 quintals/ha; production reached 5.23 million tons, fell 527.1 thousand tons. Yield of winter paddy in some localities decreased sharply in comparison with that over the previous year; Nam Dinh decreased by 130.2 thousand tons; Thai Binh reduced by 107.3 thousand tons; Hai Duong declined by 63.7 thousand tons; Hanoi declined by 46.4 thousand tons. In southern localities, area of cultivating winter paddy reached 629.6 thousand hectares, an increase of 1.2 thousand hectares compared with that over the previous year; yield was estimated at 47 quintals/hectare, an increase of 3.1 quintals/hectare; production reached 2.96 million tons, rose by 199.8 thousand tons.

Production of some annual crops: Maize production reached 5.13 million tons, a decrease of 114.6 thousand tons compared with that in 2016 due to the reduction of cultivated area of 52.9 thousand hectares (maize yield increased by 1.1 quintal/hectare). Production of sweet potatoes reached 1.35 million tons, a growth of 81.9 thousand tons (an increase of 1.6 thousand hectares); sugarcane reached 18.32 million tons, rose by 1.11 million tons (a growth of 12.8 thousand hectares); cassava production reached 10.34 million tons, a decrease of 569.1 thousand tons (by 34.4 thousand hectares); peanut reached 461.5 thousand tons, fell by 2.1 thousand tons (a decrease of area by 4.1 thousand hectares); soybean reached 102.3 thousand tons, declined by 22 thousand tons (a decline of area  by 16.1 thousand hectares); vegetable production reached 16.49 million tons, an increase of 562.8 thousand tons (by 29.5 thousand hectares); bean production reached 162.3 thousand tons, a decline of 5.3 thousand tons (by 10 thousand hectares).

In 2017, area of ​​perennial industrial crops was estimated at 2,215.1 thousand hectares, an increase of 35.2 thousand hectares in comparison with that in 2016, of which rubber area reached 971.6 thousand hectares, a decline of 0.2%, in comparison with that in the previous year due to some provinces in the Central Highlands and the South East, there was a tendency to abolish old rubber trees and converted into pepper and other crops, total production reached 1,086.7 thousand tons, a growth of 5%; pepper area reached 152 thousand hectares, a growth of 17.6%, production reached 241.5 thousand tons, rose by 11.6%; coffee area reached 664.6 thousand hectares, grew up by 2.2%, production reached 1,529.7 thousand tons,  rose by 4.7%; cashew area reached 297.5 thousand hectares, a growth of 1.5%, production reached 210.9 thousand tons, a decline of 30.9%; tea area reached 129.3 thousand hectares,  fell by 3.1% due to tea area in Yen Bai and some northern mountainous provinces was changed into growing citrus (mainly orange), yield of tea shoot reached 1,040,8 thousand tons, a growth of 0.7%.

Fruit production this year was good because many crops witnessed an increase in area and stable consumption market. Orange production reached 772.6 thousand tons, a rise of 20.4% compared with that over the previous year; tangerines reached 175.5 thousand tons, by 6.3%; pomelo reached 571.3 thousand tons, by 13.4%; mangoes reached 788.2 thousand tons, by 8.3%; bananas reached 2,066.2 thousand tons, by 5.2%; dragon fruit reached 952.8 thousand tons, by 14.2%. Particularly, production of longan and litchi was low, and not effective those were cut down in the North and which was affected by pests and diseases in the Southern provinces[10].

Cattle and buffaloes husbandry was stable, poultry farming was good, but particularly pig farming faced challenges since the consumption market saw  negative changes, pig living weight price was low that made the reduction of the population. According to the livestock survey results, as of October 1, 2017, buffalo population reached 2.5 million heads, a decrease of 1.1% in comparison with that over the same period last year; cattle reached 5.7 million heads, a growth of 2.9%, pigs reached 27.4 million heads, a decline of 5.7%; poultry reached 385.5 million heads, a growth of 6.6%.

Production of livestock of all kinds this year was good, of which production of buffalo living weight reached 87.9 thousand tons, an increase of 1.5% in comparison with that over the same period last year; production of cattle living weight reached 321.7 thousand tons, a rise of 4.2%; production pig living weight reached 3.7 million tons, a rise of 1.9%; production of poultry living weight reached 1 million tons, an increase of 7.3%. Production of poultry eggs witnessed a good growth, which was estimated at 10,637.1 million eggs in 2017, an increase of 12.6% because enterprises and farms invested to expand production scale to meet domestic and external market demands. Some localities increased egg production: Soc Trang by 39%; Ninh Thuan by 28.8%; Long An by 27%; Tien Giang by 20.5%; Phu Tho by 18.1%; Bac Giang by 15%; Lam Dong by 14.9%. Milk production in 2017 reached 881.3 million liters, an increase of 10.8% compared with that in 2016. As of December 25, 2017, there was no diseases occurred in cattle and poultry.

       b. Forestry

The weather this year was relatively favorable for planting, tending and harvesting forest products. In 2017, area of ​​concentrated forests in the country was estimated at 241.3 thousand hectares, an increase of 1.2% compared with that in 2016, of which area of production forest was estimated at 228 thousand hectares, an increase of 1.3%; protection and special-use forests reached 12.7 thousand hectares, a slide of 1.5%; number of scattered planted trees in the year reached 99.8 million, an increase of 0.6%. Production of harvested wood in 2017 was estimated at 11.5 million m3, an increase of 12.4% due to the growth of wood consumption markets such as the United States, Japan, China and South Korea. Some localities saw a high increase in harvested wood production: Binh Dinh reached 853 thousand m3, an increase of 17.9%; Bac Giang reached 575 thousand m3, a growth of 14.9%; Nghe An reached 515 thousand m3, an increase of 22%; Quang Binh reached 440 thousand m3, a growth of 55.8%; Ha Tinh reached 419 thousand m3, an increase of 55.4%. Production of harvested firewood was 26.3 million ste, 0.4% which was higher in comparison with that in 2016.

Forest protection and prevention of forest fire was paid attention by relevant agencies and local authorities, and due to heavy rains occurred this year that caused to a drop of forest fire area. In 2017, the damaged forest area was 1,515.6 hectares, a slide of 55.9% in comparison with that in 2016, of which forest fire area was 471.7 hectares, a decrease of 80%; area of forest cut was 1,043.9 hectares, a decrease of 2.9%.

       c. Fishery

Fishery production in 2017 saw prosperity. Fishery production was estimated at 7,225.0 thousand tons, an increase of 5.2% in comparison with that over the previous year, of which fish reached 5,192.4 thousand tons, a growth of 4.8%; shrimp reached 887.5 thousand tons, an increase of 8.8%.

Aqua culturing activities in 2017 was good, especially brackish shrimp and pegasus farming. Aquaculture production in the year was estimated at 3,835.7 thousand tons, a growth of 5.2% in comparison with that in 2016, of which fish reached 2,694.3 thousand tons, a rise of 4.2%; shrimp reached 723.8 thousand tons, a growth of 10.3%. Pegasus farming was favorable due to the price of raw Pegasus was higher in comparison with that over the same period in 2016[11] and continuously increased in the consecutive months that encouraged farmers to invest in aquaculture reproduction. Pegasus farming area in 2017 was estimated at 6,701 hectares, an increase of 18.9% in comparison with that over the previous year; production was estimated at 1,251.3 thousand tons, an increase by 5.0%. Brackish shrimp farming took advantages of weather and prices. In 2017, area of ​​tiger shrimp farming was estimated at 478.8 thousand hectares, a rise of 1.1% in comparison with that over the previous year, production reached 254.9 thousand tons, a growth of 4.4%; Area of ​​white leg shrimp farming reached 105.1 thousand hectares, an increase of 8.2%, production reached 432.3 thousand tons, a growth of 14.3%.

The weather in the year saw favorable condition for the inland and marine catching activities, along with the development of fishery logistics, which created good conditions for fishermen to conduct marine catching. In addition, marine catching activities in North Central provinces recovered after the marine environmental incident in 2016. In 2017, production of fishery catching was estimated at 3,389.3. Thousand tons, an increase of 5.1% in comparison with that in 2016, of which fish reached 2,498.1 thousand tons, a growth of 5.4%, shrimp reached 163.7 thousand tons, an increase of 2.6%. Seafood production was estimated at 3,191.2 thousand tons, a rise of 5.1%, of which fish reached 2,363.8 thousand tons, an increase of 5.4%, shrimp reached 150.2 thousand tons, an increase of 2.8 %.

  1. Industrial production

Industrial production continued to rise in the last month of the year. The industrial production index in December was estimated to increase by 11.2% over the same period last year, of which the mining and quarrying decreased by 10%; the manufacturing industry soared by 17.8%; electricity production and distribution rose by 9%; water supply and waste, wastewater treatment expanded by 15.7%.

Generally for 2017, the industrial production index increased by 9.4% compared to 2016 (the first quarter up by 4%; the second quarter up by 8.2%; the third quarter up by 9.7%; the fourth quarter was estimated to increase by 14.4%), much higher than the rate 7.4% of 2016. Among industrial activities, the manufacturing industry increased by 14.5% (the highest growth rate in the last 6 years[12]), making the largest contribution to overall growth with 10.2 percentage points; electricity production and distribution industry rose by 9.4%, contributing 0.6 percentage points; water supply and waste, wastewater treatment increased by 8.7%, contributing 0.1 percentage points; mining and quarrying dropped by 7.1%, reducing 1.5 percentage points of the overall growth.

Index of industrial production in the period 2015-2017

Unit:%

 20152016Estimated 2017
The whole industry109.8107.4109.4
Mining and quarrying107.193.292.9
Manufacturing110.5111.3114.5
Production and distribution of electricity111.4111.5109.4
Water supply, waste and sewerage remediation106.9108.0108.7

 

By usage purpose of industrial products, intermediate consumption products in 2018 (used for the following production processes) in 2017 rose by 11% over the previous year, final use products went up by 8.6% (products as production materials climbed up by 7.3% and household consumption products jumped up by 9.2%). The index of intermediate product production was higher than the production index for the final use that showed that intermediate products in the country’s industrial production changed in the direction of less dependence on import source.

In 2018, the IIP of some 2-digit industrial activities increased significantly over that in the previous year, contributing a majority to the growth of the manufacturing, particularly as follows: Manufacture of computers, electronic goods and optical products soared by 32.7% (focusing on manufacturing high-value smart phones and electronic components for global export), especially sharply increased in the fourth quarter with an increase of 55.6% (the first quarter increased by 5.9%, the second quarter by 20.5%, the third quarter by 47%); metal production increased by 17.6%; production of rubber and plastic products by 14.4%; production of prefabricated metal products (excepting for machinery and equipments) rose by 13.5%; textile, paper and paper product production increased by 10.2%. Some industrial activities witnessed a moderate increase or reduction: manufacture of pharmaceuticals, medicinal chemical and botanical products rose 3.3%; manufacture of motor vehicles increased by 0.2%; exploitation of hard coal and lignite equalled to that of the previous year; tobacco production decreased by 0.1%; crude oil and natural gas exploitation declined by 9.3%[13].

In 2017, some major industrial products increased remarkably compared to the previous year, particularly: Iron, crude steel rose by 31.6%; TV soared by 30.5%; steel bars by 17.5%; natural fabrics by 12.6%; urea fertilizer by 11.4%; NPK and powder milk both increased by 10.4%. Some products witnessed a low increase or decrease: Animal feed increased by 3.6%; cigarettes rose by 2%; leather shoes and sandals increased by 1.5%; coal fell by 0.5%; automobile decreased by 6.6%; natural gas reduced by 7.7%; crude oil fell by 10.8%; liquefied petroleum gas (LPG) decreased by 14.8%

The industrial production index in 2017 compared to 2016 of some large-sized industrial provinces was as follows: Bac Ninh soared by 37.2%; Hai Phong increased by 21.6%; Thai Nguyen rose by 18.1%; Binh Duong went up by 11%; Vinh Phuc expanded by 10.9%; Hai Duong climbed up by 10.5%; Da Nang jumped up by 9.5%; Dong Nai accelerated by 8.7%; Ho Chi Minh City rose by 7.9%; Can Tho increased by 7.3%; Ha Noi expanded by 7.1%; Quang Ninh increased by 3.7%; Quang Nam decreased by 2.3%; Ba Ria – Vung Tau declined by 3.1%.

The index of industrial shipment of manufacturing in November 2017 rose by 1% compared to that in the previous month and by 18.6% over the same period last year. Generally for 11 months, the index of industrial shipment of manufacturing increased by 13.6% compared to the same period in 2016 (the rate in the same period last year increased by 8.4%), of which some activities had the index increased: Textile by 28.7%; metal production by 27.6%; manufacture of pharmaceuticals, medicinal chemical and botanical products by 21.7%; manufacture of furniture by 20.2%; production of leather and related products by 17.6%; manufacture of wearing apparel by 16.7%. Some actitivies gained low index: manufacture of electric equipment increased by 7.7%; manufacture of tobacco products rose by 6.3%; manufacture of motored vehicles expanded by 4%.

The index of industrial inventory of manufacturing as of December 1st, 2017 increased by 8% compared to the same period last year, which was the lowest inventory index in the last many years[14], of which some activities recorded lower increase than the general index or decreased: manufacture of wearing apparel increased by 2.3%; manufacture of other transport equipment by 1.9%; manufacture of furniture by 1.1%; production of leather and related products equalled to that in the same period last year; tobacco production decreased by 0.1%; metal production fell by 2.7%; manufacture of pharmaceuticals, medicinal chemical and botanical products reduced by 9.4%; production of rubber and plastic products declined by 30.2%. Some activities witnessed higher inventory index than the general index: production of beverages increased by 49.1%; production of motor vehicles with by 35.2%; manufacture of electronic, computer and optical products by 29.7%; electrical equipment production increased by 20.7%; paper and paper product production increased by 18.2%; production of non-metallic minerals products rose by 16.2%.

On average, the index of industrial inventory of manufacturing in the first 11 months of 2017 was 65.9% (same period last year was 66.1%), of which some activities had high inventory rates, such as: manufacture of pharmaceuticals, medicinal chemical and botanical products was 112.5%; production of motor vehicles was 84.8%; manufacture chemicals and chemical products was 84.7%; manufacture of food products was 74.9%; production of other non-metallic mineral products was 74.2%.

The number of employees working in industrial enterprises as of 1/12/2017 increased by 5.1% compared to the same period last year, of which the employees of state-owned enterprises decreased by 0.7%; non-state enterprises increased 3.9%; foreign direct investment (FDI) enterprises rose by 6.9%. At that time, the number of employees working in the mining decreased by 1.1% compared to the same time point last year; the manufacturing increased by 5.4%; the electricity production and distribution decreased by 1%; water supply, waste and wastewater treatment increased by 0.7%.

Employees in industrial enterprises as of 1/12/2017 compared to the same period last year of some large-sized industrial provinces were as follows: Bac Ninh increased 21.6%; Da Nang rose by 13.5%; Vinh Phuc expanded by 12.8%; Hai Phong increased by 9.9%; Thai Nguyen went up by 8.6%; Hai Duong jumped up by 8.1%; Can Tho climbed up by 5.5%; Dong Nai increased by 4.8%; Ha Noi increased by 3.6%; Quang Nam and Binh Duong both increased by 3.5%; Ho Chi Minh City increased by 0.7%; but Quang Ninh and Ba Ria-Vung Tau decreased by 0.9% and 3.2%, respectively.

In general, in 2017, although the mining decreased sharply compared to the previous year, industrial production still grew positively thanks to the contribution of the manufacturing with high growth rates in the recent years; convenient consumption of products, inventory at reasonable and safe levels. However, industrial growth in the country still mainly based on the growth in the number of enterprises, investment and labor, while productivity, quality, efficiency and competitiveness were still limited.

  1. The operation of enterprises

     a. Enterprises registration status[15]

In December, there were 10,814 newly established enterprises with registered capital of 164.1 trillion VND, went down 1% in number of enterprises and an increase of 49.3% in registered capital compared with the previous month[16]; the average registered capital of an enterprise reached 15.2 billion VND, an increase of 50.8%; the total number of registered employees of newly established enterprises in the month was 96.3 thousand persons, going up by 8.7%.

In the month, there were 1,245 re-operated enterprises in the whole country, a downturn of 7% over the previous month; 3,633 temporarily ceased enterprises (including: 1,602 enterprises ceased for a certain period of time and 2,031 enterprises temporarily ceased without registration or awaited dissolution), a fall of 31.6%; 1,299 enterprises completed dissolution procedures, a rise of 27.4%.

In 2017, there were 126,859 newly registered enterprises with a total registered capital of 1,295.9 trillion VND, a rise of 15.2% in number of enterprises and 45.4% in registered capital compared with 2016; the average registered capital of a newly established enterprise reached 10.2 billion VND, an upturn of 26.2%[17]. If including 1,869.3 trillion VND of more than 35.2 thousand of enterprises that recorded upward adjustment of capital, the total additional registered capital in the economy in 2017 was 3,165.2 trillion VND. In addition, there were 26,448 re-operated enterprises, a drop of 0.9% over the previous year, bringing the total number of newly registered enterprises and re-operated enterprises in this year to 153.3 thousand enterprises. The total number of registered employees of newly established enterprises in 2017 was 1,161.3 thousand persons, a downturn of 8.4% compared to 2016.

By economic activities, in 2017 there were 45.4 thousand newly established enterprises in the wholesale and retail (accounting for 35.8% of the total newly established enterprises), rising by 16.6% over the previous year; 16.2 thousand manufacturing enterprises (accounting for 12.8%), an upturn of 9.4%; 16 thousand construction enterprises (making up 12.6%), up 10.6%; 9.4 thousand enterprises in the science, technology, consultation service, designing, advertisement and others (making up 7.4%), going up by 11.4%; 6.7 thousand enterprises in the employment services, travel, renting and leasing of machinery, equipment and other support services (accounting for 5.3%), up 21.7%; 6.3 thousand enterprises in the accommodation and catering services (sharing 5%), up 19.5%; 5.1 thousand real estate activities enterprises (accounting for 4%), jumping by 62%; 3.4 thousand enterprises in the education and training (representing 2.7%), an increase of 23% …

In this year, some economic regions saw an increase in the number of newly established enterprises compared to the previous year. Of which: the Southeast had 53.7 thousand enterprises, an increase of 14% (registered capital of 680.6 trillion VND, up 84.2%); Red River Delta was 38.1 thousand enterprises, went up 13.8% (registered capital of 306.3 trillion VND, a decreased of 2.8%); North Central and Central Coast areas were 17.6 thousand enterprises, sharing 18.4% (registered capital of 160.3 trillion VND, up 74.6%); Mekong River Delta was 9 thousand enterprises, a rise of 14% (registered capital of 70.6 trillion VND, up 27.1%); Northern Midlands and Mountains areas  were 5.3 thousand enterprises, a growth of 26.4% (registered capital of 54 trillion VND, up 29.8%); Central Highlands was 3.2 thousand enterprises, an increase of 23% (registered capital of 24.1 trillion VND, climbing by 36.9%).

The number of temporarily ceased enterprises in 2017 was 60,553 enterprises, went down 0.2% from the previous year, including 21,684 enterprises ceased for a certain period of time, increasing by 8.9% and 38,869 enterprises temporarily ceased without registration or awaited dissolution, a reduction of 4.6%. Out of total number of enterprises ceased for a certain period of time, there were 9,234 one-member limited liability companies (constituting 42.6%); 6,882 two-member limited liability companies (accounting for 31.7%); 3,665 joint stock companies (accounting for 16.9%); 1,900 private enterprises (forming 8.8%) and 3 partnership companies. By economic activities, the number of enterprises ceased for a certain period of time in the wholesale and retail was 8.6 thousand enterprises (accounting for 39.7%), up 7.1% over the previous year; 3.2 thousand construction enterprises (sharing 14.6%), edging up by 11.1%; 2.8 thousand manufacturing enterprises (accounting for 12.8%), an increase of 7.3%; 1.2 thousand enterprises in the accommodation and catering services (representing 5.5%), rising up 5.8%…. For enterprises temporarily ceased without registration or awaited dissolution, there were 17,300 one-member limited liability companies (accounting for 44.5%); 11,377 two-member limited liability companies (sharing 29.3%); 7,485 joint stock companies (accounting for 19.2%); 2,706 private enterprises (making up 7%) and 01 partnership company.

In 2017, the number of enterprises completed dissolution procedures was 12,113 enterprises, went down 2.9% compared to the previous year, of which 11,087 enterprises had capital size of less than 10 billion VND, making up 91.5%. By types of enterprise, out of total number of enterprises completed dissolution procedures, there were 5,242 one-member limited liability companies (accounting for 43.3%); 3,459 two-member limited liability companies (sharing 28.6%); 1,806 private enterprises (accounting for 14.9%); 1,603 joint stock companies (representing 13.2%) and 3 partnership companies.

        b. Business trends of enterprises

The results of the business trend survey of the manufacturing enterprises in the fourth quarter of 2017 showed that 44.8% of the enterprises assessed that the business production situation in the fourth quarter of this year was better than the third quarter; 18.7% of enterprises faced difficulties and 36.5% of enterprises said that the business production situation was stable. For expected outcome of the first quarter of 2018, there were 48.2% of enterprises presented that the trend would get better in comparison with the fourth quarter of this year; 16.1% of enterprises predicted that it would be more difficult and 35.7% of enterprises said that the business production situation would be stable.

Among the main factors affecting the business production situation of enterprises in the fourth quarter, 61.1% of enterprises said that the high competitiveness for domestic goods was the most influential factor to the operation of enterprises; 45.1% of enterprises believed that demand of domestic market was low; 32.7% of enterprises stated financial difficulties; 31.5% of enterprises blamed for not recruiting qualified workers; 27.9% of enterprises blamed for high interest rates and 22.2% of enterprises believed that high competitiveness of imports goods was an important factor.

Regarding production volume, 46.2% of enterprises pointed out production volume in the fourth quarter of this year increased compared to the previous quarter; 18.4% of enterprises reported that the production volume decreased and 35.4% of enterprises considered stable. The trend in the first quarter of 2018 compared to the fourth quarter of this year, 49.2% of enterprises forecasted an increase in production volume; 14.9% of enterprises forecasted a decrease and 35.9% of enterprises forecasted stability.

Regarding orders for goods, 39.3% of enterprises had more orders in the fourth quarter this year than the previous quarter; 18.3% of enterprises gained fewer orders and 42.4% of enterprises recorded stable orders. For the trend in the first quarter of 2018, 43.6% of enterprises expected an increase in orders compared to the fourth quarter of 2017; 14.9% of enterprises expected a decrease in orders and 41.5% of enterprises expected to have stable orders.

Regarding export orders, 32.3% of enterprises confirmed more export orders in the fourth quarter of this year compared to the previous quarter; 16.8% of enterprises experienced fewer export orders and 50.9% of enterprises kept export orders stable. There were 35.8% of enterprises expected to have an increase in export orders in the first quarter of 2018 compared to the fourth quarter of 2017; 14% of enterprises expected to decrease and 50.2% of enterprises expected to be stable.

  1. Service operation

     a. Retail sales of goods and services

In December, gross retail sales of goods and services estimated at 352.4 trillion VND, went up 2.7% over the previous month and 12% over the same period in 2016, of which: revenues from retail sales of goods reached 258.9 trillion VND, a rising by 1.5% and 11.8%; revenue from services of accommodation and catering achieved 47.9 trillion VND, an increase of 10.7% and 14.6%; revenue from tourism gained 3.6 trillion VND, going up by 9.3% and 8%; revenue from other services achieved 42 trillion VND, an increase of 1.3% and 10.6%.

In 2017, gross retail sales of goods and services were estimated at 3,934.2 trillion VND, rose by 10.9% over the previous year (in 2016 reached 10.1%), if excluding price factor, increasing by 9.46%, higher than the rate of 8.33% in the previous year.

By kinds of economic activities, the retail sales of goods in 2017 estimated at 2,937.3 trillion VND, accounting for 74.7% of the total and increasing by 10.9% over the same period last year, of which the retail sales of cars increased by 14%; precious metals and gems increased by 13.2%; wood and construction materials increased by 12.8%; food and foodstuff increased by 11.1%; cultural and educational items by 10.2%; apparel increased by 9.6%; vehicles increased by 8.6%; household equipment and goods increased by 8.5%. Some provinces had a good increase, as follows: Thanh Hoa by 13.7%; Tien Giang by 13.3%; Ha Giang by 12.8%; Hai Phong by 12.5%; Ha Noi city by 11.4% and Ho Chi Minh city by 10.1%.

In 2017, revenue from accommodation and catering services estimated at 494.7 trillion VND, accounting for 12.6% of the total and increasing by 11.9% compared to 2016. Some provinces had an increase in revenue: Nghe An increased by 22.7%; Hai Phong increased by 18.3%; Khanh Hoa increased by 16.5%; Lam Dong increased by 14.2%; Ho Chi Minh city increased by 10.3%; Ha Noi city increased by 8.2%. Revenue from accommodation and catering services had increased sharply due to more foreign tourists and domestic tourism, at the same time eating out activities were no longer affected by marine environmental occurrence in provinces in Central Coastal areas in 2016.

This year, revenue from tourism and traveling services estimated at 35.9 trillion VND, accounting for 0.9% of the total and increasing by 10.4% over the previous year. The demand for domestic and foreign tourism and the number of foreign visitors to Vietnam increased sharply, contributing to the increase in revenue from tourism activities. Some provinces had a good increase in revenue, such as: Khanh Hoa increased by 23.8%; Binh Duong increased by 22.6%; Quang Ninh increased by 17.7%; Ha Noi city increased by 9.5% and Ho Chi Minh city increased by 9.5%.

In 2017, revenue from other services was estimated at 466.3 trillion VND, accounting for 11.8% of the total and increasing by 9.7% compared to 2016, of which revenue of some provinces fluctuated as follows: Thanh Hoa increased by 17.6%; Ben Tre rose by 12.3%; Phu Yen expanded by 10.6%; Ho Chi Minh city increased by 10.9%; Ha Noi city went up by 5.2% but Ninh Binh decreased by 18.5%.

       b. Transportation and telecommunication

Passenger transport in December was estimated at 364.4 million passengers, an increase of 2.6% over the previous month and 16.8 billion passengers-kilometers, an increase of 5.1%. Generally for 2017, passenger transport reached 4,081.6 million passengers, an increase of 11.1% over the previous year and 182.8 billion passengers.km, an increase of 9.1%, of which passenger carriage by roadway reached 3,846.1 million visitors, up 11.5% and 124.6 billion passengers.km, up 8.1%; inland waterways reached 172.9 million passengers, an increase of 3.8% and 3.2 billion passengers-kilometers, an increase of 8.4%; seaway reached 6.8 million passengers, up 12.4% and 366.2 million passengers.km, up 11.8%. Airway increased significantly, reaching 46.4 million passengers, increasing by 14.1% and 50.9 billion passengers-kilometers, increasing by 11.9% because domestic airlines boosted domestic market exploitation. Although railway transport had been improved to ensure train running time, because the fare was not competitive with low-cost aviation and road car transport, the whole year 2017 only reached 9.4 million passengers, decreased by 3.5% over the previous year and 3.6 billion passengers.km, up 7.2%.

In December, freight carriage was estimated at 128.2 million tons, up 2.3% from the previous month and 24 billion tons.km, up 1.7%. Generally for 2017, freight carriage reached 1,442.9 million tons, up 9.8% over the previous year and 268.9 billion tons.km, up 6.8%, of which domestic transport reached 1,410 million tons, up 10% and 136.5 billion tons.km, up 11%; foreign transport gained 33 million tons, up 0.7% and 132.4 billion tons.km, up 2.7%. By kinds of transport, the roadway reached 1,117.8 million tons, up 10.4% and 72.1 billion tons.km, up 11.2% over the previous year; inland waterways gained 249.6 million tons, up 7.5% and 53.1 billion tons.km, up 8.2%; seaway reached 69.6 million tons, up 9.4% and 139.2 billion tons.km, up 3.9%; railway gained 5.6 million tons, up 8.2% and 3.6 billion tons.km, up 11.3%; Airway achieved 317.8 thousand tons, up 7.1% and 821.6 million tons.km, up 8%.

Revenue from telecommunication in 2017 was estimated at 380 trillion VND, an increase of 7.3% compared to 2016. As of the end of 2017, the total number of telephone subscribers was estimated at 127.4 million, down by 2.1% compared to the previous year, of which mobile subscribers reached 119.7 million, down 1.3% because the Ministry of Information and Communications continued to inspect for operators in the management junk sim; the number of fixed broadband Internet subscribers was estimated at 10.8 million, up 18.7% compared to 2016.

        c. Foreign visitors to Viet Nam

Foreign visitors to Viet Nam in December were estimated at 1,276.4 thousand, increasing by 8.9% over the previous month and 42.2% over the same period last year. This month recorded the highest number of foreign visitors coming to the country in 2017 due to the winter holidays and year-end holidays of many countries in the world. This had also been the 9th month since the beginning of the year reaching more than 1 million visitors.

Generally for 2017, foreign visitors to Viet Nam were estimated at 12.9 million, increasing by 29.1% compared to the previous year (equivalent to 2.9 million passengers), of which arrivals by airway reached 10.9 million persons, up 32.1%; by roadway reached 1.8 million, up 19.5%; By seaways gained 258.8 thousand persons, down 9.1%.

In 2017, visitors to Viet Nam from Asia reached 9,762.7 thousand persons, an increase of 34.4% over the previous year, of which visitors from almost major markets increased: visitors from China reached 4,008.3 thousand persons[18], an increase of 48.6%; South Korea 2,415.2 thousand persons, an increase of 56.4%; Japan 798.1 thousand persons, up 7.8%; Taiwan 616.2 thousand persons, an increase of 21.5%; Malaysia 480.5 thousand persons, an increase of 17.9%; Thailand 301,6 thousand persons, an increase of 13%; Singapore 277.7 thousand persons, an increase of 8%.

Visitors from Europe were estimated at 1,885.7 thousand persons, an increase of 16.6% compared to 2016, of which: 574.2 thousand visitors from Russia Federation, up 32.3%; United Kingdom 283.5 thousand persons, an increase of 11.3%; France 255.4 thousand persons, an increase of 6%; Germany 199.9 thousand persons, up 13.6%; Netherlands 72.3 thousand persons, an increase of 11.7%; Spain 69.5 thousand persons, an increase of 20%; Argentina 58 thousand persons, an increase of 13.2%.

Visitors from the Americas reached 817 thousand; an increase of 11.1% compared to 2016, of which American visitors gained 614.1 thousand, an increase of 11.1%. Visitors from Oceania achieved 420.9 thousand persons, an increase of 14.3%, of which visitors from Australia were 370.4 thousand, an increase of 15.5%. Visitors from Africa were 35.9 thousand, increasing by 25.6% compared to 2016.

In general, tourism activities in 2017 achieved impressive results with the number of foreign tourists to the country reaching a record of nearly 13 million persons. The tourism sector had taken many policies and measures to attract tourists, boost promotion and advocacy for Vietnam tourism in key markets such as Australia, Japan, and European countries, ASEAN (Thailand, Malaysia, and Indonesia). Visa exemption for citizens of 5 countries in Western Europe[19] was continued to implement to encourage participation in international tourism fairs, organize study tours to Vietnam to find out about Vietnam tourism.

      II. MACROECONOMICS STABILIZATION AND INFLATION CONTROL

  1. Banking and insurance activities

As of 20th December, 2017, the total payment facilities increased by 14.19% compared to the end of 2016 (the same period last year was a rise of 16.47%); capital mobilization of credit institutions increased by 14.5% (same period in 2016 was a growth of 16.88%); Credit growth of the economy reached 16.96%. Although there was a difference between credit growth and capital mobilization growth, the liquidity of the banking system remained stable.

In the year, mobilized interest rates were relatively stable. The mobilizing interest rate of VND was popular at 0.8% – 1% per year for less- than-1-month-term deposits; at 4.3% – 5.4% per year for 1-month-to-less-than-6-months-term deposits; at 5.3% – 6.5% per year for 6-months-to-less-than-12-months-term deposits; at 6.5% – 7.3% per year for deposits with over-12-months-term. The lending interest rate for VND of priority sectors was popular at 6% – 6.5% per year for short term, 9% – 10% per year for medium and long term. In general, the lending interest rate for VND of normal business sectors was at 6.8% – 9% per year for short-term and 9.3% – 11% per year for medium and long term. In general, the credit structure continued to focus on priority business production sectors, key projects in line with the policy of the Government in order to effectively support for economic growth.

The insurance market in 2017 maintained positive growth. Insurance revenue was estimated at 105.6 trillion VND, a rise of 21.2% over the previous year, of which the revenue of life insurance premium was 65 trillion VND, increasing by 28.9%; the non-life insurance premium reached 40.6 trillion VND, rising 10.6%. The financial capacity of insurance enterprises continuosly grew steadily, better contributing to the economy. Total assets of insurance enterprises were estimated to reach 302.9 trillion VND, an increase of 23.4% compared to 2016; the reinvestment insurance enterprises in the economy reached 247.8 trillion VND, an increase of 26.74%. The total insurance expenditure in 2017 was 29.4 trillion VND, a rise of 14.9% compared to 2016.

  1. Investment

In 2017, the total realized development investment achieved a good growth, especially the private and foreign direct investment sector. The implementation investment in 2017 at current prices was estimated at 1,667.4 trillion VND, a rise of 12.1% compared to 2016 and equivalent to 33.3% of GDP, including: state sector capital reached 594.9 trillion VND, accounting for 35.7% of the total and increasing by 6.7% over the previous year; non-state sector reached 676.3 trillion VND, accounting for 40.5% and rising by 16.8%; FDI sector achieved 396.2 trillion VND, accounting for 23.8% and rising by 12.8%.

The growth rate of the realized investment

in the years of 2015-2017 in comparison with the previous year

(At current price)

Unit: %

201520162017
Total111.9108.9112.1
State sector106.8107.3106.7
Non-state sector112.8109.5116.8
   FDI sector119.9110.4112.8

In 2017, ministries, line-ministries and localities actively implemented measures to solve difficulties and accelerate the disbursement of project works under of Resolution No. 70 / NQ-CP dated 3/8 / 2017 of the Government on key tasks and solutions to accelerate the implementation and disbursement of public investment plans. The realized investment from the State budget in 2017 was estimated at 290.5 trillion VND, equalling 94.4% of the yearly plan and increasing by 7.2% compared to 2016, including:

– The capital under central management reached 64.4 trillion VND, equaling 91.1% of the year plan and a rise of 3.9% compared to the previous year, of which the realized investment under management Ministry of Transportation was 30 trillion VND, equaling 94.9% and increasing by 31%; Ministry of Agriculture and Rural Development: 5.970 billion VND, equaling 95.8% and decreasing by 17.9%; Ministry of Health 3,760 billion VND, equaling 73.2% and increasing by 32.3%; Ministry of Education and Training 604 billion VND, equivalent to 84.8% and decreasing by 71.7%; Ministry of Natural Resources and Environment 493 billion VND, equaling 82.9% and declining 27.8%; Ministry of Culture, Sports and Tourism 470 billion VND, equaling 80.1% and reducing 16.3%; Ministry of Construction 455 billion VND, equaling 94.2% and going down 50.5%; Ministry of Industry and Trade 242 billion VND, equaling 99.1% and decreasing by 46.9%; Ministry of Information and Communications 96 billion VND, equaling 99.5% and reducing 23.8%; Ministry of Science and Technology 94 billion VND, equaling 98.3% and decreasing by 63.7%.

– The capital under local management reached 226.1 trillion VND, equalling 95.4% of the year plan and rising 8.2% over the year 2016. Of which, the state budget capital at provincial level reached 156.9 trillion VND , equalling 90.3% and expanding 5.6%; the state budget capital at district level gained 57.8 trillion VND, equalling 106.7% and rising by 16.1%; the state budget capital at commune level witnessed 11.4 trillion VND, equalling 125.4% and increasing by 7.2%. Some provinces with large realized investment was as follow: Ha Noi reached 32.8 trillion VND, equalling 101.4% of the year plan and rising 3.6% over the previous year; Ho Chi Minh City 25.3 trillion VND, equalling 74.3% and increasing by 10.7%; Quang Ninh 8,498 billion VND, equalling 116.1% and expanding 9.9%; Hai Phong 7,590 billion VND, equalling 103.3% and increasing by 66.7%; Binh Duong 7,152 billion VND, equalling 99.9% and spreading 11.2%; Nghe An 6,515 billion VND, equalling 99.5% and jumping up 14.4%.

The results of the implementation of investment in recent years showed the proportion of social investment capital to GDP decreasing from the level of 38.4% in the period of 2007-2011 to the level of 31.9% in the period of 2012-2017, mainly due to the reduction of the ratio of capital from public investment[20]  (including capital from the State budget, Government bonds and investment credit under the state’s plan). Researching the impact of investment on Vietnam’s economic growth in the period of 2012-2017 showed that the public investment did not affect much on economic growth. If the ratio of public investment to GDP increased by 1%, GDP would increase by 0.10%, while if this figure was from the state-owned sector, GDP would increase by 0.37%; from non-state enterprises, individual business households and residential households, GDP increased by 0.80%. This showed that the policy of reducing public investment of the Government in the past was right, decreasing the burden of investment from the State budget and public debt, enhancing the attraction of capital from other sectors for Development Investment.

Foreign direct investment from the beginning of the year to December 20th, 2017 attracted 2,591 newly licensed projects with a registered capital of 21.3 billion USD, an increase of 3.5% in the number of projects and an increase of 42.3% of registered capital compared to the same period in 2016. Besides, 1,188 projects which were licensed from previous years registered to adjust investment capital with an additional capital of 8.4 billion USD, an increase of 49.2% compared to the same period last year. Thus, the total newly registered and additional registered capital in 2017 achieved 29.7 billion USD, an increase of 44.2% compared to 2016. The realized foreign direct investment capital in 2017 was estimated to reach 17.5 billion USD, a rise of 10.8% compared to 2016. In 2017, there were 5,002 turns of capital contribution and share purchase of foreign investors with the total of 6.2 billion USD, an increase of 45.1% compared to 2016.

In the year, the electricity, gas, steam and air conditioning supply attracted the most foreign direct investment with the registered capital of newly licensed projects reaching 8.4 billion USD, accounting for 39.3% of total newly granted capital; the manufacturing activities reached 6.9 billion USD, making up 32.3%; the other sectors gained 6 billion USD, represented 28.4%. If including supplementary registered capital of projects which licensed from previous years, foreign direct investment in manufacturing activities this year reached 14.1 billion USD, accounting for 47.6 % of total registered capital; the electricity, gas, steam and air conditioning supply reached 8.4 billion USD, accounting for 28.2%; the other sectors reached 7.2 billion USD, accounting for 24.2%. For capital contribution, buying shares of foreign investors, capital invested in the wholesale and retail; repair of motor vehicles and motorcycles reached 1.8 billion USD, accounting for 29.7% of the total value of capital contribution; the manufacturing reached 1.8 billion USD, accounting for 28.2%; the other sectors reached 2.6 billion USD, accounting for 42.1%.

In the whole country, 58 provinces and centrally-run cities had newly foreign direct investment projects licensed in 2017, of which Thanh Hoa had the largest registered capital with 3,159.4 million USD, accounting for 14.8% of total newly registered capital; followed by Khanh Hoa with 2,584.9 million USD, accounted for 12.1%; Ho Chi Minh City 2.314 million USD, accounted for 10.9%; Nam Dinh with 2,134.3 million USD, made up 10%; Binh Duong 1,356.5 million USD, comprised 6.4%; Kien Giang 1,342.3 million USD, represented 6.3%; Ha Noi 1,111.2 million USD, accounted for 5.2%.

Among 80 countries and territories had newly licensed investment projects in Vietnam this year, Japan ranked the top with 7,745.8 million USD, accounting for 36.4% of the newly total registered capital; followed by South Korea 3,973.3 million USD, accounting for 18.7%; Singapore 3,771.8 million USD, accounting for 17.7%; China 1,409.7 million USD, comprising 6.6%; Hong Kong Special Administrative Region (China) 740.4 million USD, making up 3.5%; the United State 637.7 million USD, representing 3%.

  1. State budget revenue and expenditure

Total state budget revenue from the beginning of the year to December 15, 2017 was estimated at 1,104 trillion VND, equaling 91.1% of the yearly estimate, of which domestic revenue reached 871.1 trillion VND, equaling 88%; crude oil revenue from reached 43.5 trillion VND, equaling 113.7%; budget balance revenue from export and import activities gained 183.8 trillion VND, equaling 102.1%.

In domestic revenue, land use fee reached 104.4 trillion VND, equaling 163.8% of the yearly estimate; taxes on trade and non-state services was 167.5 trillion VND, equaling 86.1%; environmental protection tax was 39.8 trillion VND, equaling 88.1%; personal income tax was 73.9 trillion VND, equaling 91.2%; the tax on FDI (excluding crude oil) was 153.9 trillion VND, equaling 76.5%. In particular, revenue of state-owned enterprises reached 196.5 trillion VND, equaling 68.6% of the yearly estimate. In order to reach the 2017 plan, the tax and customs agencies improved collection management, implemented measures to prevent loss of revenue, smuggling, trade frauds, prices transfers, and drastically collected of tax debts, strictly controlled VAT’s refunds in compliance with regulations.

The state budget expenditure from the beginning of the year to December 15, 2017 was estimated at 1,219.5 trillion VND, equaling 87.7% of the yearly estimate, of which recurrent expenditures reached 862.6 trillion VND, equaling 96.2%; interest payment was 91 trillion VND, equaling 92%; development investment expenditure reached 259.5 trillion VND, equaling 72.6% of the yearly estimate (of which expenditure for construction was 254.5 trillion VND, equaling 72.3%). Principal payment from the beginning of the year to December 15, 2017 was estimated at 147.6 trillion VND, equaling 90.1% of the yearly estimate.

  1. Export and import of goods and services

      a. Exports of goods

Export turnover in November 2017 reached 19,990 million USD, 790 million USD higher than the estimated figure, of which: footwear was 168 million USD higher; phones and their parts were 98 million USD higher; machinery, instrument and accessory were 96 million USD higher; electronic goods, computers and their parts were 75 million USD higher; iron and steel were 74 million USD higher; chemicals were 37 million USD higher; wood and wooden products were 35 million USD higher; coffee was 27 million USD higher; electric wires and cables were 25 million USD higher; vegetables were 22 million USD higher; rubber was 21 million USD higher than estimated.

 Export turnover in December 2017 was estimated at 19.30 billion USD, went down by 3.5% compared to the previous month (that was the fifth consecutive month of this year having the export turnover of goods at over 19 billion USD[21]), of which: the domestic economic sector reached 5.20 billion USD, reduced by 1.5%; FDI sector (including crude oil) gained 14.10 billion USD, decreased by 4.1%. Export turnover decreased compared to the previous month because some products, that shared a large proportion, reduced sharply in turnover: Phones and their parts fell by 19.5%; electronic goods, computers and their parts decreased by 16.2%; iron and steel fell by 11.6%. Some products had increased export turnover: Crude oil increased by 67.1%; petroleum increased by 44.7%; coffee rose by 32.5%; rubber grew by 22.1%. Compared to December 2016, export turnover increased by 16.6%, of which: the domestic economic sector increased by 6.4%; FDI sector (including crude oil) increased by 20.9%. Some products had increased export turnover over the same period last year: Phones and their parts grew by 37.5%; electronic goods, computers and their parts climbed up by 18.1%; machinery, instrument and accessory increased by 12.3%.

Generally, export turnover in 2017 was estimated at 213.77 billion USD, jumped up by 21.1% over the previous year, that was the highest increase in many years[22], of which: the domestic economic sector reached 58.53 billion USD, edged up by 16.2%; FDI sector (including crude oil) reached 155.24 billion USD, went up by 23%[23]. If excluding the price factor, export turnover in 2017 increased by 17.6% compared to 2016. Export turnover of some main products increased significantly compared to the previous year: Phones and their parts reached 45.1 billion USD, grew by 31.4%; textiles gained 25.9 billion USD, edged up by 8.8%; electronic goods, computers and their parts attained 25.9 billion USD, jumped up by 36.5%; footwear gained 14.6 billion USD, grew by 12.6%; machinery, instrument and accessory reached 12.8 billion USD, rose by 26.4%; fishery products achieved 8.4 billion USD, increased by 18.5%; wood and wooden products reached 7.6 billion USD, edged up by 9.2%. Export of some products decreased compared to the previous year: Coffee reached 3.2 billion USD, went down by 3.7% (volume decreased by 20.1%); pepper reached 1.1 billion USD, dropped by 21.7% (volume increased by 20.9%) because the average export price of this product fell by 21.1%.

Regarding the structure of export turnover this year, the group of heavy industrial and mineral products reached 106 billion USD, went up by 32.4% over the previous year and accounted for 49.6% of the total export turnover (an increase of 4.2 percentage points compared to 2016); group of light industrial and handicraft products gained 79.6 billion USD, increasing by 11.7% and accounting for 37.2% (a decrease of 3.1 percentage points); agricultural and forestry products attained 19.8 billion USD, grew by 9% and accounted for 9.3% (a reduction of 1 percentage point); fishery products were estimated at 8.4 billion USD, went up by 18.5% and shared 3.9% (a fall of 0.1 percentage points).

Regarding the export goods market in 2017, the US was still the leading market with 41.5 billion USD, edged up by 8% compared to 2016. The following was EU with 38.3 billion USD, rose by 12.8%; China attained 35.3 billion USD, soared by 60.6%; ASEAN market reached 21.7 billion USD, climbed up by 24.5%; Japan gained 16.8 billion USD, grew by 14.2%; South Korea reached 15 billion USD, rose by 31.1%.

         b. Import of goods

Import turnover in November reached 19,394 million USD, 394 million USD higher than the estimated figure, of which: phones and their parts were 126 million USD higher; animal feed and raw materials were 60 million USD higher; petroleum was 59 million USD higher; fabric was 40 million USD higher; chemicals were 29 million higher; liquefied gas was 25 million USD higher; machinery, instrument and accessory were 21 million USD higher; electronic goods, computer and their parts were 4 million USD lower; iron and steel were 49 million USD lower than estimated.

Import turnover in December 2017 was estimated at 19.80 billion USD, went up by 2.1% over the previous month, of which: the domestic economic sector gained 8.05 billion USD, edged up by 3.5%; FDI sector attained 11.75 billion USD, rose by 1.2%. Turnover of some imported products increased: Medicine increased by 26%; plastics grew by 8.7%. Some products had lower import turnover: Phones and their parts decreased by 1.5%; paper reduced by 1.6%; animal feed dropped by 3.7%; liquefied gas decreased by 34.4%. Compared to the same period last year, import turnover in December increased by 16.5%, of which: the domestic economic sector increased by 7.1%; FDI sector increased by 24%. The turnover of some imported products for production increased compared to December 2016: phones and their parts increased by 70%; electronic goods, computers and their parts rose by 39.5%; fabric grew by 16.6%.

In 2017, import turnover was estimated at 211.1 billion USD, jumped up by 20.8% over the previous year, of which: the domestic economic sector was 84.7 billion USD, increased by 17%; FDI sector reached 126.4 billion USD, rose by 23.4%. If excluding the price factor, import turnover in 2017 increased by 17.7% compared to 2016. Import turnover of some products to meet domestic production demand increased compared to the previous year: Electronic goods, computers and their parts reached 37.5 billion USD, went up by 34.4%; machinery, instrument and accessory gained 33.6 billion USD, rose by 17.9%; phones and their parts gained 16.2 billion USD, climbed up by 53.2%; fabric reached 11.4 billion USD, edged up by 9.2%; iron and steel achieved 9.1 billion USD, jumped up by 13% (volume decreased by 17.7%); plastics reached 7.4 billion USD, rose by 17.5% (an increase of 8.7% in volume); petroleum gained 7 billion USD, increased by 37.7% (volume grew by 9.2%); materials for textile, garment and footwear reached 5.5 billion USD, edged up by 8%; metals reached 5.4 billion USD, climbed up by 13.1% (volume decreased by 19.3%); plastic products reached 5.4 billion USD, jumped up by 22.7%; chemical products achieved 4.6 billion USD, grew by 19.6%; chemicals reached 4.1 billion USD, went up by 27.5%; wood and wooden products reached 2.2 billion USD, edged up by 16.5%. Some products had lower import turnover compared to 2016: Automobiles reached 5.3 billion USD, went down by 10.5% (CBU cars reached 2.2 billion USD, dropped by 9.6%); animal feed and raw materials reached 3.2 billion USD, fell by 6.3%; other means of transport and spare parts reached 830 million USD, went down by 40.3%.

In terms of import goods structure in 2017, the group of capital goods reached 192.9 billion USD, up 21.1% compared to 2016 and accounted for 91.4% of total import turnover (up 0.2 percentage points compared to 2016), in which machinery, equipment, tools and spare parts reached 91.2 billion USD, up 24.9% and accounted for 43.2% (up 1.4 percentage points); the group of raw materials and materials reached 101.7 billion USD, went up by 17.8% and accounted for 48.2% (a decrease of 1.2 percentage points). Consumer goods reached 18.2 billion USD, edged up by 17.4% and shared 8.6% (a reduction of 0.2 percentage points).

Regarding the imported goods market in 2017, China was still the largest import market of Vietnam with a turnover of 58.5 billion USD, went up by 16.9% compared to 2016; the following was South Korea with 46.8 billion USD, rose by 45.5%; ASEAN gained 28 billion USD, grew by 16.4%; Japan attained 16.5 billion USD, edged up by 9.7%; EU reached 12 billion USD, increased by 7.7%; The United States gained 9.1 billion USD, grew by 4.9%.

Trade balance of goods in November witnessed a trade surplus of 596 million USD[24]. The trade deficit in December 2017 was estimated at 500 million USD, and the trade surplus in 2017 was 2.7 billion USD, of which: the domestic economic sector saw a trade deficit of 26.1 billion USD; FDI sector witnessed a trade surplus of 28.8 billion USD. In 2017, South Korea became the largest trade deficit market of our country with 31.8 billion USD, went up by 53.4% ​​compared to 2016. The main reason for that was the expanded production investment of SamSung Group in Vietnam, that caused a high demand for import of machinery, instrument and accessory for assembly and processing; China was in second place with a trade deficit of 23.2 billion USD, went down by 17.4%; trade deficit from ASEAN reached 6.3 billion USD, reduced by 6%. The two markets still maintained a trade surplus were the United States with 32.4 billion USD, grew by 9% compared to 2016; and EU with 26.3 billion USD, rose by 15%. 2017 also recorded a new record of Vietnam’s import and export when the total flow of imported and exported goods surpassed 400 billion USD mark.

     c. Import and export of services

Services export turnover in 2017 was estimated at 13.1 billion USD, went up by 7% compared to 2016, of which: tourism service export was 8.9 billion USD, accounted for 67.6% of total export turnover and increased by 7.4%; transportation services reached 2.6 billion USD, shared 19.7% and went up by 5.7%. Import turnover of services in 2017 was estimated at 17 billion USD, increased by 1.6% compared to the previous year, of which: import of transport service reached 8.2 billion USD, accounted for 47.9% of total import turnover and decreased by 2.8%; tourism services reached 5.1 billion USD, shared 29.8% and went up by 12.7%. Service trade deficit in 2017 was 3.9 billion USD, equaling 29.9% of service export turnover.

  1. Price indexes

     a. Consumer price index

Consumer price index (CPI) in December 2017 increased by 0.21% over the previous month, of which medicine and medical services rose the most with 2.55% (medical service rose by 3.30%) because there were 15 provinces and cities under the direct administration of the central government enhanced the price of medical services (causing an augment of 0.13% of the overall CPI). Transportation group rose by 0.84%; garment, hats, and footwear went up by 0.43% due to an increase in winter shopping demand; housing and construction materials climbed up by 0.22% due to the increase in prices of liquified gas, oil, electricity and water, along with the increased demand for housing repairs in the last months of the year. Beverage and tobacco groups increased by 0.17%; household appliances rose by 0.12%; culture, entertainment and tourism grew by 0.03%. Groups of goods and services had reduced price index: Food and catering service decreased by 0.23%, of which food edged up by 0.56%, foodstuff decreased by 0.5%; postal service and telecommunication fell by 0.03%. Particularly, education group was unchanged compared to the previous month.

Average CPI in 2017 increased by 3.53% compared to the average of 2016, less than the National Assembly’s target. CPI in December 2017 increased by 2.6% compared to December 2016, the average monthly increase was 0.21%. Average CPI in 2017 grew due to the following main reasons:

– Provinces adjusted prices of medical services and medical check-up and treatment services according to Joint Circular No. 37/2015/TTLT-BYT-BTC and Circular No. 02/2017/TT-BYT. As of December 20th, 2017, 45 provinces and cities adjusted the prices of medical examination and treatment services for people without health insurance[25] making CPI in December 2017 increase by 1.35% compared to December 2016; Average CPI in 2017 rose by 2.04% over 2016.

– Implementation of the roadmap to increase tuition fees according to Decree No. 86/2015/ND-CP caused the educational group price index in December 2017 to grow by 7.29% compared to December 2016 and made CPI in December 2017 go up by 0.41% over the end of 2016. The average CPI in 2017 increased by about 0.5% against 2016.

– The increase in the regional minimum wage applied to employees in enterprises from January 1st, 2017 and the basic salary applied to officials, public servants, and armed forces from July 1st, 2017 made the average price of some types of services such as repairing of household appliances, housing maintenance, electricity and water services, and family maid service in 2017 increase from 3% to 8% compared to 2016.

– In addition, some market factors, increased tourism demand, some localities affected by natural disasters, unfavorable weather also caused CPI this year to rise over 2016.

Moreover, a number of factors contributed to curbing the CPI growth rate in 2017, of which the average food price index in 2017 decreased by 2.6% compared to 2016 (mainly decreased in the fresh meat group); Authorities at all levels and branches actively implemented measures to stabilize market prices during the Lunar New Year festival; strengthen market inspection and control, organize interdisciplinary working missions to check the implementation of price stabilization management in some provinces. Along with that, the State Bank of Vietnam operated a monetary policy that steadily aimed to maintain macroeconomic stability and control inflation.

Core inflation in December 2017 went up by 0.11% over the previous month and by 1.29% over the same period last year. The average core inflation in 2017 increased by 1.41% over the average of 2016.

      b. Gold and US dollar price index

Domestic gold prices fluctuated according to world gold prices. Gold price index in December 2017 decreased by 0.12% compared to the previous month; grew by 4.74% over the same period in 2016; The average in 2017 rose by 3.71% against 2016. The US dollar price index in December 2017 edged up by 0.02% over the previous month and by 0.05% over the same period in 2016; The average in 2017 increased by 1.40% compared to 2016.

      c. Producer price index

The producer price index for agriculture, forestry and fishery production in the fourth quarter increased by 2.14% compared to the previous quarter and decreased by 1.17% over the same period in 2016. Generally in 2017, the producer price index for agriculture, forestry and fisheries production augmented by 0.24% over the previous year, of which the agriculture producer price index declined by 1.85%; forestry went up by 4.19%; fishery edged up by 6.37%.

The producer price index for industry in the fourth quarter increased by 1.48% compared to the previous quarter and by 3.47% over the same period last year. In 2017, the industrial producer price index grew by 2.82% against the previous year, of which the producer price index of mining increased by 10.12%; manufacturing rose by 2.14%; electricity, gas, hot water, steam and air conditioning climbed up by 4.23%; clean water, sewerage, waste treatment and remediation increased by 1.42%.

The input producer price index in the fourth quarter increased by 0.95% compared to the third quarter and by 2.77% over the same period last year. Generally in 2017, the input producer price index climbed up by 1.14% compared to the previous year, of which the input producer price index for agriculture, forestry and fishery decreased by 1.57%; input producer price index for industry increased by 0.66%; construction jumped up by 5.61%.

The price index for transport and storage in the fourth quarter of this year decreased by 0.51% compared to the previous quarter and increased by 2.22% over the same period last year. Generally in 2017, transport and storage price index grew by 2.15% over 2016, of which transport price index by railway fell by 6.13%; by roadway and buses rose by 0.64%; by waterway edged up by 0.56%; by airway increased by 5.48%; storage and transport supporting services rose by 1.80%.

The producer price index for service in the fourth quarter increased by 0.36% compared to the previous quarter and by 3.24% over the same period in 2016. In 2017, the producer price index climbed up by 3.63% over the previous year, of which the producer price indexes of some sectors were as follows: the health and social assistance sector increased by 27.20%; education and training jumped up by 6.89%; entertainment and recreation rose by 2.94%; accommodation and catering services increased by 2.77%.

       c. Merchandise import and export price index

Merchandise export price index in the fourth quarter increased by 0.80% compared to the previous quarter and by 0.36% over the same period last year. In 2017, the merchandise export price index went up by 2.93% over the previous year, of which the merchandise export price index of agricultural and food products increased by 5.83%; fuel group climbed up by 23.76%; group of manufactured goods increased by 1.04%. Merchandise export price indexes of some commodities in 2017 were as follows: Rubber soared by 32.7%; crude oil surged up by 26.31%; petroleum jumped up by 25.74%; coffee rose by 20.42%; iron and steel grew 5.86%; mobile phones and telephone went up by 5.31%; pepper decreased by 20.53%.

Merchandise import price index in the fourth quarter increased by 0.51% compared to the previous quarter and by 1.87% in comparison with the same period last year. In 2017, the merchandise import price index rose by 2.57% over 2016, of which the merchandise import price index of agricultural and food products edged up by 1.55%; fuel group increased by 17.70%; group of manufactured goods grew by 1.29%. Merchandise import price indexes of some commodities in 2017 were as follows: Raw rubber increased by 27.27%; petroleum rose by 19.90%; liquefied gas increased 17.60%; other metals went up by 12.33%; iron and steel went up by 10.31%; electronic goods, computers and their parts increased by 2.60%; wood and wooden products fell by 0.54%.

Merchandise term of trade[26] in the fourth quarter increased by 0.29% over the previous quarter and decreased by 1.49% compared to the same period in 2016. Generally in 2017, the merchandise term of trade grew by 0.35% over the previous year, of which the merchandise term of trade of telephones and their parts increased by 14.25%; petroleum rose by 4.87%; chemicals decreased by 4.13%; iron and steel fell by 4.03%.

      III. SOCIAL ISSUES

  1. Population, labour and employment

The average population in 2017 of the whole country was estimated at 93.7 million persons, an increase of 987.3 thousand persons, equivalent to an increase of 1.07% in comparison with 2016, of which the urban population was 32.9 million persons, accounting for 35.1%; the rural population was 60.8 million persons, accounting for 64.9%; the male and female population was 46.2 million persons and 47.5 million persons respectively with the corresponding share of 49.3% and 50.7%.

According to the results of the Population Change and Family Planning Survey in 2017, the total fertility rate this year was estimated at 2.04 children per woman and below the replacement level fertility. The sex ratio at birth was 112.4 male births per 100 female births; the crude birth rate was 14.71‰; and the crude death rate was 6.84‰. The infant mortality rate (the number of deaths of under-1-year children per 1,000 live births) was 14.35‰. The under-5 mortality rate (the number of deaths of under-5-year children per 1,000 live births) was 21.55‰. Low mortality rate clearly shows the effectiveness of the maternal and child health care program in particular and the protection of health and improvement of living standards for people in general over the past time. The national average life expectancy at birth in 2017 was 73.5 years, in which the average life expectancy of male and female was 70.9 years and 76.2 years, respectively.

The labor force aged 15 and over of the whole country in 2017 was estimated at 54.8 million persons, an increase of 394.9 thousand persons compared to 2016, in which: Male employees was 28.4 million persons, accounting for 51.9 %; female employees was 26.4 million persons, accounting for 48.1%. By region, the labor force aged 15 and over in urban and rural areas was 17.6 million persons and 37.2 million persons, respectively with the corresponding share of 32.2% and 67.8%.

Labor force in the working age of the country in 2017 was estimated at 48.2 million persons, an increase of 511 thousand persons compared to the previous year, of which male employees was 26.1 million persons, accounting for 54.1%; female employees was 22.1 million persons, making up 45.9%. The labor force in the working age in urban and rural area was 16.1 million perosns and 32.1 million persons, respectively with the corresponding share of 33.4% and 66.6%.

Labour force aged 15 years and over working in economic sectors of the whole country in 2017 was estimated at 53.7 million persons, an increase of 416.1 thousand persons compared to 2016. Of which, the agriculture, forestry and fishery sector accounted for 40.3% (the figure in 2016 was 41.9%); the industry and construction sector made up 25.7% (the figure in 2016 was 24.7%); the service sector represented 34.0% (the figure in 2016 was 33.4%). Labor force aged 15 and over in 2017 in urban area and rural areas accounted for 31.9% and 68.1%, respectively with the corresponding figures in 2016 was 31.7% and 68.3%. Trained labour force in 2017 was estimated at 21.5%, higher than the rate of 20.6% of the previous year.

The employed population in Q1, Q2, Q3 and Q4 2017, was 53.4 million persons, 53.4 million persons, 53.8 million persons and 54.1 million persons, respectively with the corresponding increases of 74.7 thousand persons,  164.3 thousand persons, 496.9 thousand persons and 671.8 thousand persons compared to the same period last year.

The unemployment rate of working-age in 2017 was 2.24% (these rates in 2016 and 2015 were 2.30%  and 2.33%, respectively), of which unemployment rate in urban area was  3.18% (these figures in 2016 and 2015 were 3.23% and 3.37%, respectively); unemployment rate in rural area was 1.78% (these figures in 2016 and 2015 were 1.84% and 1.82%, respectively). The youth unemployment rate (from 15-24 years old) in 2017 was 7.51%, of which urban areas was 11.75% and 5.87%, respectively.

The underemployment rate at working age in 2017 was 1.63%, lower than the rate of 1.66% in 2016 and 1.89% in 2015, of which the underemployment rate in urban area was 0.85 % (these rates in 2016 and 2015 were 0.73% and 0.84%, respectively); the underemployment rate in rural area was 2.07%  (the corresponding rates in 2016 and 2015 were 2.12%  and 2.39%, respectively).

Percentage of employment in non-agricultural activities in 2017 was estimated at 57% (the corresponding rates in 2016 and 2015 were 57.2% and 58.3%, respectively), of which percentage of employment in non-agricultural activities in urban and rural area was 48.5% and 64.4%, respectively.

  1. Labor productivity

In 2017, labor productivity of the economy at current prices approximately reached 93.2 million VND per worker (equivalent to about 4,159 USD per worker). At 2010 constant prices, labor productivity of the economy in 2017 witnessed a year on year increase by 6%, with average annual growth rate of 4.7% for 2011-2017.

The labor productivity of Viet Nam had significantly improved in the direction of increasing steadily over the years[27] and Viet Nam was a country with a high growth rate of labor productivity in the ASEAN[28], however, the current level of labor productivity in Viet Nam was still very low compared to other countries in the region. In 2016, labor productivity by PPP 2011 of Viet Nam reach 9,894 USD, only equal to 7.0% of the labor productivity of Singapore; 17.6% of Malaysia; 36.5% of Thailand; 42.3% of Indonesia; 56.7% of the Philippines and 87.4% of Lao PDR. Remarkably, labor productivity gap between Viet Nam and other countries continued to increase[29].

There were many reasons for low labor productivity in Viet Nam and remained big gap among other ASEAN countries such as Economic structure was slow to shift, labor in agriculture sector accounted for a high proportion, while the labor productivity in agriculture sector in our country was still low; machinery, equipment and technological procedure was old; quality, structure and efficiency of labor use did not meet the requirements. In addition, some other important factors affected labor productivity of Viet Nam in the past time such as The starting point of the economy was low; level of organization, management and efficiency of using resources remained unsuitability; growth was mainly based on the contribution of capital and labor factors, the contribution of Total Factor Productivity (TFP) was low; there were also some “bottlenecks” regarding institutional reforms and administrative procedures.

  1. Living standards and social security

This year, people’s living standards was generally stable. In 2017, the whole country witnessed 181.4 thousand households suffering from food shortage, a year-on-year fall of 31.7%, corresponding to 746.1 thousand persons suffering from food shortage, declined by 32.1%. This year, a year-on-year decrease of food shortage was the result of positive direction and administration of the Party and the State and the efforts of the people in restructuring of crops and livestock, expanding and building new industrial parks, factories, developing craft villages to create more jobs.  The food shortage was mainly occurred in the first months of the year, in which in January there were 43.6 thousand households suffering from food shortage, corresponding to 179.3 thousand persons suffering from food shortage, in May there were 45.8 thousand households suffering from food shortage, corresponding to 187.2 persons suffering from food shortage; from June until the end of the year, food shortage among farmers experienced a gradual downward trend. In order to overcome food shortage, from the beginning of the year, all administrative levels, sectors and organizations from central to local level supported these households with 22.8 thousand tons of food and more than 1.1 billion VND. According to the multi-dimensional approach to poverty applied for the period 2016-2020[30], in 2017, the rate of poverty household was estimated at 8%.

Social security continued to be paid attention by authorities. According to the preliminary report, the total funding for social security and poverty reduction in 2017 was 5,832 billion VND, including 3,370 792 billion VND of gifts and assistances for policy beneficiaries; 1,759 to support poor households and 703 billion VND for hunger-relief and other social reliefs. Besides, there were 17 million health insurance cards, free health care books/cards were donated to policy beneficiaries in the whole country.

  1. Education and Training

Up to now, all 63 provinces and cities directly under the Central Government gained universal preschool education for five-year-old children; 63 provinces and cities directly under the Central Government achieved compulsory primary education standards level 1 as stipulated in Circular 36 of the Ministry of Education, of which 12 provinces/cities were recognized to gain compulsory primary education standards level 2.

In the school year 2017-2018, there were nearly 23 million pupils and students nationwide; of which nearly 5.2 million preschool children (0.7 million children enrolled nursery schools and 4.5 million children enrolled kindergartens); 7.8 million primary school pupils; 5.5 million lower secondary school pupils; 2.4 million upper secondary schools pupils and 1.8 million college, university and students.

The network of vocational education institutions continued to diversify regarding training type and operation model. Currently, there were 1,974 vocational education establishments in Viet Nam, including 388 colleges, 551 secondary schools and 1,035 continuing education centers. As of the end of 2017, vocational training enrolled 2,090 thousand students, of which there were 540 thousand college and secondary students; short-term training and vocational training for at least 3 months enrolled 1,550 thousand persons. Besides, in 2017 there were about 600 thousand rural workers and 19 thousand disabled people were supported with vocational training under the Project of vocational training for rural workers by 2020. Pupils who graduated from lower secondary schools and upper secondary schools switch to vocational training were at a low rate. In 2017, the percentage of students graduating from upper secondary schools enrolling universities and colleges was 50%; 23% enrolled in vocational colleges and professional secondary schools; 13% apprenticed at vocational training centers.

  1. Epidemic diseases and food poisoning

In December 2017, the whole country witnessed 12.1 thousand cases of  hemorrhagic fever; 7.8 thousand cases of hand, foot and mouth disease; 42 cases of typhoid; 40 cases of viral encephalitis (3 deaths); 2 cases of meningococcal meningitis; 5 cases of whooping cough; 7 cases of human streptococcus suis infection (1 death); 4 cases of Japanese encephalitis (1 death). Generally in 2017, the whole country witnessed 175.8 thousand cases of  hemorrhagic fever (38 deaths); nearly 102.7 thousand cases of hand, foot and mouth disease; 630 cases of typhoid; 720 cases of viral encephalitis (26 deaths); 53 cases of meningococcal meningitis (3 deaths); 653 cases of whooping cough (5 deaths); 204 cases of human streptococcus suis infection (17 deaths); 327 cases of Japanese encephalitis (16 deaths); 39 cases of Zika virus infection; 19 cases of diphtheria (5 deaths); 62 deaths from rabies.

As of 17 December 2017, the total number of alive HIV-infected persons over the country was 209.4 thousand persons and the number of cases turned to AIDS was 90.1 thousand persons; the number of persons died of HIV/AIDS nationwide was 94.6 thousand persons.

There were 9 cases of food poisoning in the month with 205 poisoned persons. In 2017, there were 111 food poisoning cases, poisoned 3,374 persons, of which 22 deaths.

  1. Culture and Sport

Cultural activities in 2017 focused on celebrating Great Holidays, major events of the country in many forms, ensured practical, effective and economical targets, and created an exciting atmosphere among the people.  During the year, there were many outstanding activities, such as 2017 APEC Summit Week in Da Nang, the Sixth Quang Nam Heritage Festival; Telefilm 2017 Exhibition in Ho Chi Minh City; the Second Festival on “Don ca tai tu” in Binh Duong; Da nang International Firework Festival. In 2017 Bai Choi art was recognized as an intangible cultural heritage of humanity; Xoan folk-song in Phu Tho was officially removed from UNESCO List of Intangible Cultural Heritage in Need of Urgent Safeguarding and registered at the Representative List of the Intangible Cultural Heritage of Humanity. Viet Nam had 12 intangible cultural heritages recognized by the UNESCO. The festivals in the year were held solemnly, safely and economically. The traditional festivals had violence elements, which was inconsistent with the trend, were changed to ritual practice.

Physical training and mass sport activities continued to be strengthened and improved, in association with the campaign named “All people do physical exercise as the Great Uncle Ho did”, The sports sector focused on training in order to compete for outstanding achievements in international sports arenas.

In 2017, Viet Nam’s high performance sports achieved many outstanding achievements. As of 30 November 2017, Viet Nam sports won 1,045 medals in international tournaments, of which 425 gold medals, 301 silver medals, 319 bronze medals. At the 29th SEA Games, the Vietnam Sports Delegation excelled in winning 168 medals of all kinds (58 gold medals, 50 silver medals and 60 bronze medals), ranked 3rd among the total 11 participating delegations.

  1. Traffic accidents

In December (from 16 November to 15 December), there were 1,563 traffic accidents occurred nationwide, including 765 traffic accidents from less serious to more and 798 traffic collisions, causing 699 deaths, 401 injuries and 873 slight injuries. Compared to the same period last year, the number of traffic accidents in December 2017 decreased by 7.8% (the number of traffic accidents from less serious to more decreased by 8.2% and the number of traffic collisions went down by 7.5%); the number of deaths declined by 3.1%; the number of injuries rose by 85.6% and the number of slight injuries decreased by 8.6%.

In 2017, there were 20,280 traffic accidents occurred nationwide, including 9,770 traffic accidents from less serious to more and 10,310 traffic collisions, causing 8,279 deaths, 5,587 injuries and 11,453 slight injuries. Compared to the same period last year, the number of traffic accidents in this year decreased by 7% (the number of traffic accidents from less serious to more decreased by 5.6% and the number of traffic collisions went down by 8.3%); the number of deaths declined by 4.7%; the number of injuries dropped 9.6% and the number of slight injuries decreased by 12.6%. Thus, the traffic safety witnessed positive changes, decreased on all three criteria, number of cases, deaths and injuries. Of the total of 9,770 traffic accidents from less serious to more, 9,488 cases (accounted for 97.1%) occurred on the road, causing 8,089 deaths and 5,517 injuries. There were 164 cases of railway traffic accident caused 133 deaths and 50 injuries; 118 cases of waterway and maritime traffic accidents caused 57 deaths and 20 injuries. On average 55 traffic accidents occurred a day in 2017 nationwide, including 27 traffic accidents from less serious to more and 28 traffic collisions, caused 23 deaths, 15 injuries and 32 slight injuries.

  1. Damages caused by natural disasters 

Due to impacts of climate change, natural disasters in our country in recent years were increasingly complicated. Storms, floods, tornadoes, heavy rain, flooding, droughts increased in the fields of intensity, frequency, caused great loss of life and property. The 2017 was considered as the year of rain, storm, flood; natural disasters occurred in almost all regions of the country, there were 16 consecutive storms and 7 tropical depressions, over the last 6 months of the year. The storm No. 10 and 12 directly hit the Central provinces were the two most powerful storms over the past 30 years. Particularly, the storm No. 12 caused 123 deaths and missing, 342 wounded, the value of damaged properties was 22.6 trillion VND. Hail, tornadoes continuously occurred in the early months of the year, heavy rain lasted in the late months of the year caused floods in many localities. Heavy rain left the season occurs in mid-October, causing the reservoirs to discharge floods urgently, causing flash floods, serious landslides. Particularly, flood occurred from 10-14 October 2017 in the Northern and North Central provinces caused more than 100 deaths and missing, 42 injuries. Property loss was 13 trillion VND.

In 2017, natural disasters caused 389 deaths and missing and 668 injuries, of which Yen Bai suffered 53 deaths, missing and 32 injuries, Khanh Hoa suffered 47 deaths, missing and 229 injuries. There were nearly 234 thousand hectares paddy area was flooded and damaged. Nam Dinh and Thai Binh were the two provinces suffered the largest area of flooded and damaged,  with the corresponding figures of 65.7 thousand hectares and 48 thousand hectares; flooded, damaged arable crops was more than 130.6 thousand hectares. The number of houses collapsed and swept away was 8,312, 1.5 times higher than in 2016 and 588.1 thousand houses were hit by landslide, roof rip off and flooded, 1.6 times higher than in 2016. The total value  of damages caused by natural disasters in 2017 was estimated at 60 trillion VND, 1.5 times higher than in 2016, of which Khanh Hoa suffered the heaviest damage with 14.7 trillion VND, followed by Quang Binh (nearly 8 trillion VND and Ha Tinh (7.5 trillion VND).

In order to actively respond to natural disasters, the central and local leaders timely directed to effectively implement disaster response measures and well implemented the motto “4 tại chỗ” (4 things readiness) not to be passive. Before massive natural disasters, the Prime Minister sent emergency official telegram to the ministries and line ministries and localities at all levels to closely monitor the situation of natural disasters to take timely measures to prevent floods and landslides, protect and rescue dikes when necessary, and mobilized all political bodies to take part in assigning commissars who were in charge of localities to timely take measure and minimize losses. By the end of November, the authorities moved 607.1 thousand doses of vaccine to affected areas, 85 thousand liters and 240 tons of disinfectant chemicals. The Government provided support to localities with 696 tons of seed rice, 205 tons of maize seed, 7 tons of seed vegetable. In addition, the Government provided 1,000 billion VND to 10 localities to overcome the damage caused by floods and storms. In 2017, the Government supported more than 14.6 thousand tons of rice to localities to overcome the consequences of natural disasters.

  1. Environment protection, fire and explosion prevention

In December 2017, 807 cases of violating regulations of environment protection were found, of which 622 cases were addressed with total fine of 16.3 billion VND. In 2017, 16,742 cases of environmental violations across the country were found, of which 13,943 cases were addressed with a total fine of over 211 billion VND. Hanoi (7,961 cases) and Tra Vinh (1,130 cases) were at the top of the revealed environmental violations list.

In December, there were 287 cases of fire and explosion across the country, caused 9 deaths and 20 wounded, with an estimated damage of over 52.3 billion VND. In 2017, there were 4,114 fires and explosions nationwide, causing 119 deaths and 270 injuries, with an estimated loss of 2 trillion VND.

In general, In spite of facing many difficulties and challenges, with the efforts of both the political system and the business community, the effective and timely direction and administration of the Government, socio-economic situation in 2017 continued to witness positive changes and gained many important achievements. Macro-economy was stable, inflation was curbed and maintained at a lower level than target set by the National Assembly, the growth exceeded the set target with improved quality. Manufacturing industry recorded a highly increase; service industry achieved good results. Import and export turnover reached a new record. Investment and business environment continued to improve. International visitors attraction, foreign investment and newly established businesses recorded a sharply increase. Unemployment and underemployment were lower than the previous year. Social security was attracted more attention and achieved certain results. However, our economy still had shortcomings and challenges: Slow process of restructuring the economy; limited competitiveness and slow public investment disbursement. Natural disasters caused great losses, seriously affected production and people’s life. Environmental pollution, safety and food hygiene were complicated.

The year 2018 has a very important meaning and it is the key year in completing the 5-year socio-economic development plan for 2016-2020. Besides favorable factors such as the world economy continues its stable growth trend; domestic investment and business environment is improving; macroeconomic situation is stable; inflation is controlled, etc. Forecast shows that in 2018 we will face many difficulties and challenges affecting the economy, especially while changes in world geopolitics, commercial policies; climate change; complicated natural disasters and epidemics and impact from the 4th industrial revolution. Therefore, along with promoting institutional reforms, enhancing state management efficiency, improving business environment, infrastructure, reform administrative procedures, creating favorable conditions for business development, the Government and ministries and agencies need to determine the creation and implementation of policies to improve labor productivity is the most important solution in improving the competitiveness and sustainable growth of the economy. At the same time, to thoroughly study the insight and mode of operation of the 4th industrial revolution, thereby proposing specific implementation in some fields in some localities so that Viet Nam can integrate into the flow of Industrial revolution in the world.

In the coming time, to fulfill the objectives and targets of socio-economic development in 2018 approved by the National Assembly, of which: To increase GDP by 6.5% -6.7%, the average growth rate of consumer prices is about 4%; increase total export turnover by about 7% -8%, etc. All levels, sectors and localities must properly and fully realize the difficulties and challenges ahead to promptly take measures to overcome from the first days and the first months of 2018, of which focusing on the following main contents:

Firstly, to regulate proactive and flexible monetary policies, contributing to stabilize the monetary market, supporting growth and controlling inflation. To grow reasonably credit, focusing on credit for priority areas such as agriculture, rural areas, supporting industries, exports, high-tech enterprises, small and medium enterprises; credit control in some potentially risky sectors and fields.

Secondly, to strengthen financial discipline, strictly enforce laws on taxes, fees and charges; reform tax administrative procedures; ensure tax collection in full and timely manner. To strengthen inspection, avoid loss, transfer pricing, trade fraud and tax arrears. To closely supervise expenditures from the State budget, thoroughly save recurrent expenditures, especially conferences, guests welcoming, traveling abroad and using public vehicles.

Thirdly, to quickly allocate and assign public investment plans. To speed up disbursement progress of this capital from the earlier months of the year, especially infrastructure projects damaged by natural disasters, major and important projects, national target programs, to ensure implementation and disbursement of all public investment allocated in 2018. To strengthen inspection and monitoring to ensure public investment to be effectively and economically used for the right purpose, avoid any waste, corruption and debt in infrastructure construction. To have solution to encourage private sector investment to become the growth momentum of the economy in the coming years. To promote sustainable development of real estate market, ensure publicity and transparency; encourage the development of social residential housing  and property for low-income people.

Fourthly, pro-actively monitor the weather changes to minimize the impact of natural disasters, storms and floods on agricultural production and aquaculture; to have active plans to respond to climate change, sea level rise and saline intrusion. To continue to convert the structure of crops and products in accordance with market demand and adapt to climate change. To convert ineffective paddy land to fruit trees, industrial crops and aquaculture. To strengthen the application of science and technology, promote production links with processing and consumption of products. To effectively control disease, strengthen monitoring to ensure food safety and hygiene, especially to eliminate the use of prohibited substances in livestock; expand markets for agricultural products both domestically and abroad.

Fifthly, to promote the development of processing and manufacturing industries; in-depth processing industry, serving agriculture sector; input material industry for foreign direct investment enterprises and links with the value chain of multinational corporations. To concentrate on developing high value-added service industries, agricultural and industrial support services, information technology, finance, banking, insurance, logistics and tourism services. To enhance tourism promotion, policies and measures to effectively attract international visitors, especially those coming from markets with high spending and long stay in Viet Nam.

Sixthly,to encourage domestic consumption demand, increase competitiveness of domestic goods over imported goods, contribute to maintain growth of manufacturing industries. To enhance trade promotion, increase export through the preparation of goods sources to ensure the requirements of quality, design, food safety to export to markets where Free Trade Agreements were signed. Strict control of imports, especially border trade import and temporary import and re-export of agricultural products. To improve the effectiveness of market management, anti-smuggling, trade fraud, counterfeit goods, and poor quality goods to protect domestic production and consumer rights. To develop a roadmap and scope of adjustment for the prices of goods and services managed by the State, ensuring that it will not have a big impact on the price level and in line with the inflation control target in 2018.

Seventhly, to effectively implement social security policies, social welfare, policies for national devotees must be well performed, firstly in the Lunar New Year 2018, to ensure timeliness and right subjects. To continue to effectively implement the National Target Program for sustainable poverty reduction and ad-hoc assistance to ensure that people get stuck in risks and natural disasters are timely supported to stabilize their lives and restore production./.

GENERAL STATISTICS OFFICE


[1] In October 2017, the International Monetary Fund (IMF) raised the forecast of global economic growth in 2017 to 3.6%, an increase of 0.1 percentage points compared to 3.5% forecasted in July 2017 and much higher than the increase of 3.2% in 2016.

[2] GDP growth compared to some previous years: 2011 was 6.24%; 2012 was 5.25%; 2013 was 5.42%;  2014 was 5.98%; 2015 was 6.68%;  2016 was 6.21%;  2017 was 6.81%.

[3] The growth over the previous year of the manufacturing activities in some years: 2011 was 14.08%;  2012 was 9.05%; 2013 was 7.22%; 2014 was 7.41%; 2015 was 10.60%; 2016 was 11.90%; 2017 was 14.40%.

[4] The growth/ fall compared to the previous year of the mining activities in some years: 2011 increased by 2.90%; 2012 increased by 5.14%; 2013 decreased by 0.23%; 2014 increased by 2.26%; 2015 increased by 6.50%; 2016 decreased by 4.00%; 2017 reduced 7.10%.

[5] The growth rate of financial, banking and insurance activities in some years: 7.45% in 2011; 5.58% in 2012; 6.88% in 2013;  5.83% in 2014;  7.38% in 2015; 7.79%  in 2016;  8.14% in 2017.

[6] The growth rate of real estate activities in some years: 3.80% in 2011, 1.32% in 2012;  2.17% in 2013; 2.80% in  2014;  2.96% in 2015;  4.00% in 2016;  4.07% in 2017.

[7] If included 5.13 million tons of maize, the total cereals production in 2017 was estimated at 47.97 million tons, fell 709.8 thousand tons in comparison with that in 2016.

[8]Particularly in this winter-spring crop, the cultivated area in the Red River Delta fell 10.1 thousand hectares compared with that over the same period last year (2.8 thousand hectares converted to non-agricultural land; 2.5 thousand hectares to perennial crops, 1.2 thousand hectares of other annual crops and 1.9 thousand hectares of non-production area. Mekong River Delta region decreased by 16.3 thousand hectares (0.2 thousand hectares converted to non-agricultural land; 6,000 hectares converted to perennial crops; 7.7 thousand hectares changed to other annual crops; over 1 thousand hectares converted to aquaculture and 1.4 thousand hectares are not produced).

[9] In which: The area transferred to non-agricultural land was 4 thousand hectares ; conversion to  other annual crops was 3.7 thousand hectares; conversion to perennial crops was 2.4 thousand hectares; 1.6 thousand hectares for aquaculture;  area of fallow land was 2.9 thousand hectares and 1.9 thousand hectares uncultivated due to the impact of early rain storms.

[10] Estimated in 2017, the area of longan  increased by 2.9% compared with that in 2016, production  decreased by 1.1%; Area of  lichi decreased by 4.7%, production decreased by 24.1%

[11] Average price of Pangasius fluctuated from 22,000-25,000 vnd/kg (rose by 4.000-5.000 vnd/kg in comparison with that over the previous year), sometime that fluctuated from 28.000-30.000 vnd/kg (increased by 5.000-6.500 vnd/kg).

[12]  The growth rate of the IIP of manufacturing in the period 2012-2017 was: 5.5%; 7.6%; 8.7%; 10.5%; 11.3%; 14.5%, respectively.

[13]  Price of crude oil remained stable, on average at 55 USD/barrel, 11 USD/barrel higher than the average price in 2016.

[14]  The rate at the same time point in 2013 rose by 10.2%; in 2014 by 10%; in 2015 by 9.5% and in 2016 by 8.1%.

[15] Source: National business registration information system, Business Registration Management Agency, Ministry of Planning and Investment.

[16] Compared to the same period last year, the number of enterprises increased by 28.5%; the registered capital gained 75.7%; the average registered capital of an enterprise rose by 36.7%.

[17] In 2016, the number of newly registered enterprises achieved 16.2% compared to 2015; the registered capital increased by 48.1%; the average registered capital of an enterprise went up 27.5%.

[18] Chinese visitors accounted for 31% of total foreign visitors to Viet Nam but average expenditure and stay time per Chinese visitor were lower than that from other countries in Asia such as Japan, South Korea, Singapore, …

[19] Include: UK, France, Germany, Spain and Italy.

[20] Share of public investment capital in total investment continued to decrease over the years: 2012 was 31.6%; 2013 was 30.4%; 2014 was 28.4%; 2015 was 27.2%; 2016 was 26.2% and 2017 was 23.4%.

[21] In 2017, export turnover in August reached 19.8 billion USD; in September gained 19.3 billion USD; in October attained 20.3 billion USD; in November reached 20 billion USD; in December gained 19.3 billion USD.

[22] The growth rate of goods export turnover compared to the previous year from 2013 to 2017 was respectively: 15.3%; 13.8%; 7.9%; 9%; 21.1%.

[23] If excluding crude oil, the export turnover of the FDI sector in 2017 reached 152.34 billion USD, jumped up by 23% compared to 2016.

[24] Trade surplus was estimated at 200 million USD.

[25] Prices of medical services in December 2017 increased by 37.30% compared to the end of 2016; The average in 2017 soared by 57.91%.

[26] Export price index of goods/import price index of goods.

[27]  Labor productivity of the economy at current prices for 2011-2017 were as follows: 55.2 mil VND/worker; 63.1 mil VND/worker; 68.7 mil VND/worker; 74.7mil VND/worker; 79.4 mil VND/worker; 84.5 mil VND/worker; and 93.2 mil VND/worker.

[28] Generally for  2007-2016, labor productivity by PPP 2011 of Viet Nam annually increased by an average of 4%, higher than the average increase of Singapore (1.5%); Malaysia (1.9%); Thailand (2.5%); Indonesia (3.5%); Philippines  (2.8%); Cambodia (4.1%), lower than Lao PDR (5.3%) and Myanmar (14.6%) (Calculated from WB data source).

[29] The gap between Viet Nam’s labor productivity by PPP 2011 compared to Singapore increased from 115,087 USD in 2006 to 131,333 USD in 2016; ; Similarly, with Malaysia from 39,806 USD to 46,190 USD; Thailand from 14,591 USD to 17,208 USD; Indonesia from 10,100 USD to 13,496 USD; Philippines from 6,691 USD to 7,561 USD; Lao PDR from 220 USD to 1,422 USD (WB data source).

[30] Decision No. 59/2015/QD-TTg dated 19 November 2015 of the Prime Minister promulgating multi-dimensional approach to poverty applied for the period 2016-2020 was as follows:

– In rural areas: is the one that satisfies either of the two following norms (1) Having a monthly per capita income of VND 700,000  to lower and (2) Having a monthly per capita income of between over 700,000 VND  and  1,000,000 VND and deprived of at least 3 indicators measuring deprivation of access to basic social services;

–  In urban areas: is the one that satisfies either of the two following norms: (1)Having a monthly per capita income of VND 900,000 or lower and (2) Having a monthly per capita income of between over 900,000 VND  and  1,300,000 VND  and deprived of at least 3  indicators measuring deprivation of access to basic social services.