Despite numerous difficulties and challenges, Viet Nam’s economy in 2014 continued to develop. Image: laocai.gdt.gov.vn
Despite numerous difficulties and challenges, Viet Nam’s economy in 2014 continued developing with the GDP growth rate of 5.98%, higher than the 5.42% of 2013. Other social aspects were also given attention to. People’s life has been stabilized and improved in several aspects.
Gross Domestic Product growth rate
The Gross Domestic Product (GDP) of 2014 was estimated to reach 5.98% as compared to 2013, of which the first quarter was 5.06%; second quarter 5.34%; third quarter 6.07%; and fourth quarter 6.96%. The 2014 growth rate was higher than the 5.25% of 2012 and 5.42% of 2013, showing positive development of the economy.
Of the 5.98% growth rate of the economy, that of the agricultural, forestry and aquatic product sector increased to 3.49%, higher than the 2.64% of 2013, contributing 0.61 percentage point in the general growth rate; the industrial and construction increased to 7.14%, much higher than the 5.43% of 2013, contributing 2.75 percentage points; and the service sector increased to 5.96%, contributing 2.62 percentage points.
On economic structure, the agricultural, forestry and aquatic product sectors accounted for 18.12%; the industrial and construction sector accounted for 38.5%; and the service sector accounted for 43.38% (the corresponding figures in 2013 were: 18.38%; 38.31%; 43.31%).
Rice output in 2014 was estimated to reach 45 million tons, 955.2 thousand tons more than 2013, mainly due to rice yield of 5.76 ton per hectare, a rise of 0.19 ton per hectare. Of the total annual rice output, the Spring-Summer rice output reached more than 20.8 million tons, 780.8 thousand tons higher due to higher rice yield of 6.69 ton per hectare, an increase of 0.23 ton per hectare; the Summer-Autumn rice output obtained 14.5 million ton, a decrease of 93.1 thousand tons; the Autumn rice output was estimated to be 9.6 million tons, a rise of 267.5 thousand tons.
The 2014 industrial production index was estimated to rise to 7.6% as compared with 2013 with the first quarter index increased to 5.3%, the second quarter to 6.9%, the third quarter to 7.8%, the fourth quarter to 10.1%, much higher than the 5.9% of 2013. Of the total annual industrial growth, the mining branch saw an increase of 2.5%; the processing and manufacturing branches 8.7%, higher than the growth rate of 7.3% of 2013; electricity production and distribution increased to 12.1%; water supply, household waste water and garbage treatment 6.4%.
In 2014, 74,842 new businesses were established with the total registered capital of 432.2 thousand billion dong, a drop of 2.7% in terms of number of businesses and an increase of 8.4% in terms of registered capital as compared with 2013. The average registered capital of newly-established businesses reached 5.8 billion dong, an increase of 11.5% as compared with 2013. The estimated number of jobs created by these newly-established businesses in 2014 was 1091 thousand, 2.8% higher than the previous year. In 2014, 15,419 businesses resumed operation, an increase of 7.1% as compared with the same period of 2013.
The total number of newly-registered and supplemented capital in 2014 was 1,027.9 thousand billion dong, including 595.7 thousand billion dong of newly-established businesses and 432.2 thousand billion dong of businesses with supplemented capital.
Services and investment
The total retail sale and consumer service turnover in 2014 was estimated at 2,945.2 thousand billion dong, an increase to 10.6% as compared with 2013, if price rise element is removed, the increase was 6.3% higher than the rate of 5.5% of 2013.
In 2014 it was estimated that 7,874.3 thousand of visitors came to Viet Nam, 4% higher than previous year but much lower than the 10.6% of 2013. The number of visitor to Viet Nam for tourism and convalescence was 4,762.5 thousand, and increase of 2.6%; for business was 1,321.9 thousand, an increase of 4.3%; for visiting relatives was 1,347.1 thousand an increase of 6.9%.
The social investment for development in 2014 in current price was estimated at 1,220.7 thousand billion dong, a rise to 11.5% as compared with 2013 and accounted for 31% of GDP, including: from State sector 486.8 thousand billion dong, an increase of 10.1% as compared with previous year; from non-state sector 468.5 thousand billion dong, and increase of 13.6%; from the foreign-direct investment sector 265.4 thousand billion dong, an increase of 10,5%.
From January to 15 December 2014, foreign direct investment attracted 1,588 newly-licensed projects with the total registered capital of 15,642.6 million USD, an increase of 24.5% in terms of number of project and 9.6% in terms of capital as compared with the same period of 2013. In addition, 594 projects which were licensed in previous years received supplemented capital of 4,588.3 million USD. So, the total registered capital of newly-allocated projects and supplemented projects reached 20,230.9 million USD, a decrease of 6.5% as compared with the same period of 2013 but higher than the 19% as plan. Foreign Direct Investment capital in 2014 was estimated to reach 12.4 billion USD, an increase of 7.4% as compared with the previous year and 2.9% higher than 2014 plan.
Import and export of goods and services
Export turnover of 2014 was estimated at 150 billion USD, an increase of 13.6% as compared with 2013, of which domestic economic sector obtained 48.4 billion USD, an increase of 10.4%, the highest figure since 2012, contributing 3.5 percentage points to the general growth rate; foreign-invested sector gained 101.6 billion USD (including crude oil), an increase of 15.2%, contributing 10.1 percentage points and bagged 94.4 billion USD (excluding crude oil), an increase of 16.7%. If price element is excluded, commodity export turnover in 2014 rose to 9.1%. Major export commodities mainly belonged to foreign-invested sector, including: export turnover of phones and accessories accounted for 99.6% of the total export turnover of these commodities; that of textile and apparel stood at 59.4%; that of footwear obtained 77%; that of other machine, equipment, tools and spare parts gained 89.7%; and that of electronic, computer and spare parts obtained 98.8%.
Import turnover in 2014 was estimated to reach 148 billion USD, an increase of 12.1% as compared with the previous year of which foreign-invested sector accounted for 84.5 billion USD, an increase of 13.6%; domestic economic sector obtained 63.5 billion USD, an increase of 10.2%. Concerning the structure of import commodities in 2014, the group of production material accounted for the largest proportion in 2014 with 91.2% of which machine, equipment, transport means and spare parts stood at 37.6%; and the group of raw material and fuel gained 53.6%. The group of consumer goods stood at 8.8%.
Trade surplus in 2014 was estimated to be 2 billion USD of which the foreign-invested sector recorded 17 billion USD, higher that that of 13.7 billion USD of the previous year; the domestic economic sector’s trade deficit was 15 billion USD, higher than that of 13.7 billion USD of 2013.
Some social issues
The average population of Viet Nam in 2014 was estimated to be 90.73 million, an increase of 1.08% as compared with 2013. The number of laborers from 15 years of age working in economic branches in 2014 was estimated to stand at 53 million, an increase of 0.8 million (+1.56%) as compared with 2013. The number of laborers from 15 years of age working in agricultural, forestry and aquatic product sector accounted for 46.6% (in 2012, it was 47.4%; in 2013 it was 46.8%); that of the industrial and construction sector accounted for 21.4% (in 2012 and 2013 it was 21.2%); that of service sector accounted for 32% (in 2012, it was 31.4%; in 2013, it was 32%).
By December 2014, 21 out of 63 provinces and centrally-run cities completed universalization of early childhood education for five-year-old children; 63 provinces, and centrally-run cities completed universalization of primary education for the targeted age groups of which 8 provinces and cities were recognized as having completed the universalization of primary education of the second level.
Vocational training received continued attention from levels, branches and localities. By the end of 2014, there were 1,340 vocational training institutions throughout the country including 165 vocational colleges, 301 vocational secondary schools and 874 vocational training centers.