2018 marked a year of eventful economic development with many significant results. In spite of challenges, the economy has fulfilled the set targets.
On the growth momentum and positive statistics of the economy over the past year, the Communist Party of Vietnam Online Newspaper introduces the 10 outstanding economic events in 2018, including:
1. The issuance of a Resolution to make Vietnam a strong sea-based country
According to Resolution 36-NQ/TW issued by the 12th Party Central Committee, by 2030, sea-based economic sectors are set to make up 10% to the country’s GDP; and 28 coastal cities and provinces contribute 65-70% to the GDP.
2. GDP growth hits 7.08%, the highest-ever rate over the past 11 years
Vietnam continued to fulfill all 12 socio-economic targets set by the National Assembly. GDP grew 7.08, trade surplus hits record high, disbursement of FDI reaches over USD19 billion; 132,000 enterprises were formed and the country greeted nearly 15.6 million foreigners. This is the third consecutive year in which inflation was curbed less than 4%.
3. The successful organization of World Economic Forum on ASEAN (WEF ASEAN) 2018
The forum, themed “ASEAN 4.0: Entrepreneurship and the Fourth Industrial Revolution”, attracts more than 1,000 people with nearly 60 discussions on the building of a dynamic, strong and prosperous ASEAN Community for the people. It is considered the most successful regional meeting of the WEF in ASEAN in 27 years.
4. Vietnam officially joins CPTPP
On November 12th, 2018, the CPTPP and its related documents were ratified at the 6th session of the 14th National Assembly. It is considered the third largest free trade deal in the world and will become effective from 2019. The agreement will help Vietnam expand export markets, attract investment, boost growth, and reform its policies in smoother and more transparent manner.
5. Rapid export growth with record trade surplus, especially agricultural export turnover hitting USD40 billion
Vietnam’s commodity export turnover in 2018 is estimated to reach about USD239-240 billion, a year-on-year increase of 10-12%. Trade balance enjoyed a surplus of USD7.2 billion.
Notably, agricultural export value is expected to reach USD40 billion, the highest-ever rate. This year witnessed 10 agricultural products bagging more than USD1 billion of export value, including shrimp, tra fish, rice, coffee, rubber, pepper, cashew, cassava, fruits and vegetables and forestry products.
6. The monetary, finance and stock market remains stable and flexible
The interest rate is kept stable with credit growth of 17%; meeting the capital requirement for the economy, especially for production and business.
State budget collection reaches more than VND1.35 quadrillion, up 3% from the estimate and up 5.5% over a year earlier.
The 2018 stock market witnessed the boom of many USD-billion enterprises offering with record market capitalization such as HDB (HD Bank), Vinhome (Vincom group), TCB (Techcombank), and TPB (Tien Phong Bank).
7. Vietnam’s first automaker debuts its cars in Paris
At the 2018 Paris Motor Show, VinFast, the automobile arm of Vietnam's largest privately-run conglomerate, caught worldwide attention with the unveiling of 2 car models. With a desire to introduce the VinFast brand at the world famous event, the company highlights the essence of Vietnam showing its persistence on a new journey.
8. Global economic upheaval, US trade war - China and Vietnam's opportunities and challenges
Vietnam now ranks fifth among economies with the highest trade surplus with the US (USD32 billion according to statistics of Vietnam Customs and USD38 billion according to the US), only after China (USD376 billion), the EU (USD151 billion), Mexico (USD71 billion) and Japan (USD69 billion).
The country is currently an open economy (calculated by total import-export turnover/GDP). If tariff is put on by the US, impacts on the Vietnam’s economy will be much more negative than that of the EU, Mexico, Japan or China.
9. Nghi Son oil refinery-petrochemical plant begins commercial operation
The Nghi Son oil refinery and petrochemical plant in the north central province of Thanh Hoa officially began its commercial operation on December 23rd.
With a total investment capital of nearly USD9.3 billion, the plant is a world-class deep processing petrochemical complex using the most advanced technology with the full capacity of 200,000 barrels of crude oil per day in the first phase.
The commercial operation marks a breakthrough development in the country’s oil refinery-petrochemical sector. Together with the Dung Quat oil refinery in the central province of Quang Ngai, the fuel provided by Nghi Son will meet about 80% of the domestic demand, thus reducing dependence on imports from foreign markets.
So far, this is the biggest project in Vietnam regarding construction scale and total investment. It helps create a skilled workforce, serving as a “nucleus” for the development of human resources in the region.
10. Van Don airport inaugurated
On December 30th, three key transportation projects worth a total of USD870 million were inaugurated in the northern province of Quang Ninh.
The Van Don international airport, the Ha Long cruise port, and the Ha Long-Van Don expressway were constructed in the form of public-private partnership between the provincial authorities and Sun Group.
Prime Minister Nguyen Xuan Phuc said: “The projects prove Vietnam’s policy of encouraging private investment. Quang Ninh should continue to consider transport development among its three strategic breakthroughs to create driving force to attract investment”.
Source: dangcongsan.vn
