Economy 7 months through numbers

(Baonghean) - In the first 7 months of the year, the country's economy has had many changes,Industrial production continues to growForeign direct investment increased sharply in scale and implementation.

Agriculture has many improvements in prices and consumer markets.

After a series of difficult rescue days, July recorded a recovery in pork prices to 42,000 - 45,000 VND/kg, helping farmers initially make a profit, although the national pig herd is estimated to have decreased by 3.3% compared to the same period last year. At the same time, while the buffalo herd decreased by 0.8%, the cow herd increased by 2.2%; the poultry herd increased by 5%. The increase was also recorded in aquatic product output (up 5.2%) and in the first 7 months of 2017, the national aquatic product output was estimated at 4,006.2 thousand tons, up 4.4% compared to the same period in 2016; of which the output of farmed aquatic products reached 2,056.6 thousand tons, up 4.1%, the output of exploited aquatic products reached 1,949.6 thousand tons, up 4.7%.

Fruit and vegetable exports have boomed with over 3 billion USD in the past 7 months, surpassing both oil and rice exports. The rice market has also flourished due to price recovery and many large consumption contracts from the Philippines and China.

Industrial production continues to grow

Thai investors inspect finished products at Royal Foods Thailand Factory, Nam Cam Industrial Park, Nghe An. Photo courtesy

The industrial production index for July is estimated to increase by 8.1% over the same period last year, with the processing and manufacturing sector increasing by 11.3%, although the mining sector decreased by 3.5%. In the first 7 months of 2017, the industrial production index increased by 6.5% (industry, processing and manufacturing increased by 10.6%), lower than the 7.2% increase in the same period in 2016, but higher than the 6.3% increase in the first 6 months of this year; crude oil and natural gas exploitation decreased by 10.8% as Vietnam proactively reduced the exploitation of high-cost blocks.

Business community sees spike in both births and deaths

Compared to the same period last year, July continued to record an increasing trend in the number of newly established and resuming enterprises in all economic regions. In the first 7 months, 72,953 enterprises registered for new establishment with a total registered capital of 690.7 trillion VND, an increase of 13.8% in the number of enterprises and 39% in the registered capital; 17,549 enterprises returned to operation, an increase of 5%; the total number of newly registered enterprises and enterprises returning to operation reached more than 90.5 thousand enterprises.

In terms of structure, the wholesale and retail sector accounts for the highest proportion (35.5% of the total number of newly established enterprises), and real estate businesses have the highest growth rate (up 68%); the North Central and Central Coast regions have the fastest growing newly registered capital, up to 73.2%... With this trend, 2017 will certainly witness a new record in the number of newly established and re-operating enterprises.

However, the market also recorded an increase in the number of enterprises completing dissolution procedures in the first 7 months of 2017 of 6,608 enterprises, up 2.9% over the same period last year and the number of enterprises temporarily ceasing operations was 43,274 enterprises, up 19.5%. The level of 49,882 enterprises ceasing operations or going bankrupt compared to 72,953 newly registered enterprises shows that the ratio of 2/3 is worrying.

Chart of newly established, dissolved and suspended enterprises nationwide in the first 7 months of 2017. Graphics: Hong Toai

Accelerating collection and disbursement of investment from the State budget

As of July 15, total state budget revenue is estimated at VND584.6 trillion, equal to 48.2% of the year's estimate; Total state budget expenditure is estimated at VND646.4 trillion, equal to 46.5% of the year's estimate, of which principal debt repayment is estimated at VND110 trillion, equal to 67.1% of the year's estimate. In the first 7 months of this year, investment capital implemented from the state budget reached VND140.2 trillion, equal to 47.2% of the year's plan and increased by 7.3% compared to the same period in 2016, of which central capital managed by the central government is equal to 45.2% of the year's plan and increased by 5.7% compared to the same period last year, local capital managed by the local government is equal to 47.8% of the year's plan and increased by 7.8% compared to the same period in 2016...

In fact, although the collection rate was quite good, and the disbursement rate of investment from the State budget in July was higher than the previous month and the same period last year, in general, the disbursement and implementation of this capital source in the past 7 months was still slow.

Foreign direct investment increased sharply in scale and implementation.

As of July 20, the country attracted 1,378 newly licensed projects with registered capital reaching 12.9 billion USD, although decreasing by 2.1% in number of projects, but increasing by 48.7% in registered capital compared to the same period in 2016. In addition, 677 licensed projects from previous years registered to adjust investment capital with additional capital reaching 5.9 billion USD, up 38.5% compared to the same period last year, bringing the total newly registered capital and additional capital in the first 7 months of 2017 to 18.8 billion USD, up 45.3% compared to the same period in 2016.

Total registered capital of newly licensed projects, additional capital and investment in the form of capital contribution and share purchase in 7 months reached 21.9 billion USD, up 52% ​​over the same period last year. Foreign direct investment realized in 7 months is estimated at 9.1 billion USD, up 5.8% over the same period in 2016.

If including additional registered capital of licensed projects from previous years and capital contributions and share purchases, the total foreign investment capital in the processing and manufacturing industry in the first 7 months of this year reached 10.8 billion USD, accounting for 49.4% of the total registered capital; the production and distribution of electricity, gas, hot water, steam and air conditioning reached 5.3 billion USD, accounting for 24%; the remaining industries reached 5.8 billion USD, accounting for 26.6%.

Thanh Hoa has the largest registered capital with 3,054.5 million USD, accounting for 23.6% of the total newly registered capital of 53 provinces and centrally run cities with newly licensed foreign direct investment projects.

Japan is the largest investor with 4,808.3 million USD, accounting for 37.2% of the total newly registered capital among 62 countries and territories with newly licensed investment projects in Vietnam in the past 7 months.

TS. Nguyen Minh Phong