Illustrative image (Source: VNA)Hanoi (VNA) - Thefollowing are Vietnam’s top ten economic events in 2016.
1. The 12th National Party Congress set a goalof rapid, sustainable economic development
The Resolution adopted at the 12th National PartyCongress has defined tasks of stepping up renovation in a comprehensive andsynchronous fashion; accelerating the economy fast and sustainably; anddeveloping Vietnam into a modern, industrial country. The five-year averageeconomic growth is expected to reach 6.5-7 percent per year. By 2020, anaverage gross domestic product (GDP) per capita will stand at about 3,200-3,500USD, whilst the proportion of industry and services will make up some 85percent of the GDP. Total average social investment in the next five years willaccount for 32-34 percent of the GDP, and State budget overspending willcomprise of only 4 percent of the GDP.
2. National Assembly approves master plans forfinance and investment
The second session of the 14th National Assemblyhas approved a national financial blueprint in the 2016-2020 period, along witha middle-term public investment plan. Accordingly, the proportion of Statebudget overspending between 2016 and 2020 will not exceed 3.9 percent of theGDP. The annual public debt index, the Government debt, and the foreign debtare set within the limit of no more than 65 percent, 54 percent, and 50percent, respectively, of the GDP.
3. Economy grows despite difficulties
The drastic direction and administration ofthe Government, the high determination of the whole political system, and theactive involvement of the business community, have backed the national economyto continue recording a positive growth in 2016. The gross domestic product(GDP) was estimated to expand by 6.21 percent compared to the previous year inspite of difficulties posed by natural disasters and the marine environmentalincident in the four central provinces and the global economic headwinds. Themacro economy remained stable while inflation was put under control.
4. Construction of nuclear power plant in NinhThuan halted
Deputies agreed to stop the implementation ofthe nuclear power project in the south central coastal province of Ninh Thuanat the second sitting of the 14th National Assembly. This was because since2009 – the moment when the legislature approved a policy of investing in theproject - the domestic and international situation has witnessed a lot ofsocio-economic changes. On the one hand, Vietnam’s scientific and technologicalcapability at present has been limited to develop nuclear power. On the otherhand, the project’s economic efficiency has yet been ensured while theproduction cost of nuclear power is higher than that of other energy resources.
5. Government issues Resolution 35/NQ-CP onsupporting and developing businesses
Regarding businesses, especially private ones,as a driving force to increase competitiveness and economic autonomy, theGovernment on May 16, 2016 promulgated Resolution 35/NQ-CP on supporting anddeveloping enterprises through 2020. The document sets the goal of having atleast one million active businesses by 2020, including large-scale andfinancially strong ones. The State is committed to ensuring equal rights forall companies without discrimination of business forms and economics sectors inaccessing financial resources.
6. Number of newly-established firms hitrecord
The number of newly-established businesses seta record high since 2013. More than 100,000 companies have registered to set upwith a total investment of over 800 trillion VND (35.3 billion USD), up over 17percent in number and 48 percent in registered capital against 2015. Thefigures show that the new legal framework, solutions, and the action role ofthe Government in supporting and encouraging businesses to develop havecontinuously proved effective.
7. Maritime environmental pollution incidentin central region
The waste discharge of the Taiwanese-investedHung Nghiep Formosa Ha Tinh Steel Co. Ltd caused serious impacts on the marineenvironment from the central coastal province of Ha Tinh to Thua Thien-Hue,heavily impacting local production and lives. With the policy of not exchangingthe environment with investment projects, the Government, ministries, sectorsand localities took drastic measures to strictly deal with the wrongdoings,address consequences, support fishermen and force Formosa to makecompensations.
8. The State Bank of Vietnam applies newexchange rate management mechanism
In 2016, the State Bank of Vietnam (SBV) hasapplied new mechanism of exchange rate management. The SBV announced areference exchange rate between VND and USD on a daily basis. The new mechanismallows flexible fluctuations of daily exchange rates according to domesticsupply and demand of foreign currency and global market developments, but stillensures the regulatory role of the SBV in monetary policy management.
9. Vietnam promotes international economicintegration
The trade and economic ministers of 12countries joining the Trans-Pacific Partnership (TPP) agreement signed thisglobal trade deal on February 4, 2016, in Auckland, New Zealand, marking theofficial completion of negotiations and the start of ratification procedures ineach country. After that, the free trade agreement (FTA) between Vietnam andthe Eurasian Economic Union (EAEU) came into effect on October 5, 2016. Theconclusion of the TPP and FTA has reaffirmed Vietnam’s efforts to promoteinternational economic integration.
10. Vietnam sets record to welcome 10 millionforeign tourists
Vietnam welcomed 10 million internationalvisitors for the first time in 2016, a year-on-year rise of 25 percent. Thecountry also served 62 million domestic vacationers. The tourism sector rakedin 400 trillion VND (17.65 billion USD) in revenues. This is an importantmilestone in the tourism sector’s path to become a national spearhead economicsector and make Vietnam a primary destination in the region.-VNA
1. The 12th National Party Congress set a goalof rapid, sustainable economic development
The Resolution adopted at the 12th National PartyCongress has defined tasks of stepping up renovation in a comprehensive andsynchronous fashion; accelerating the economy fast and sustainably; anddeveloping Vietnam into a modern, industrial country. The five-year averageeconomic growth is expected to reach 6.5-7 percent per year. By 2020, anaverage gross domestic product (GDP) per capita will stand at about 3,200-3,500USD, whilst the proportion of industry and services will make up some 85percent of the GDP. Total average social investment in the next five years willaccount for 32-34 percent of the GDP, and State budget overspending willcomprise of only 4 percent of the GDP.
2. National Assembly approves master plans forfinance and investment
The second session of the 14th National Assemblyhas approved a national financial blueprint in the 2016-2020 period, along witha middle-term public investment plan. Accordingly, the proportion of Statebudget overspending between 2016 and 2020 will not exceed 3.9 percent of theGDP. The annual public debt index, the Government debt, and the foreign debtare set within the limit of no more than 65 percent, 54 percent, and 50percent, respectively, of the GDP.
3. Economy grows despite difficulties
The drastic direction and administration ofthe Government, the high determination of the whole political system, and theactive involvement of the business community, have backed the national economyto continue recording a positive growth in 2016. The gross domestic product(GDP) was estimated to expand by 6.21 percent compared to the previous year inspite of difficulties posed by natural disasters and the marine environmentalincident in the four central provinces and the global economic headwinds. Themacro economy remained stable while inflation was put under control.
4. Construction of nuclear power plant in NinhThuan halted
Deputies agreed to stop the implementation ofthe nuclear power project in the south central coastal province of Ninh Thuanat the second sitting of the 14th National Assembly. This was because since2009 – the moment when the legislature approved a policy of investing in theproject - the domestic and international situation has witnessed a lot ofsocio-economic changes. On the one hand, Vietnam’s scientific and technologicalcapability at present has been limited to develop nuclear power. On the otherhand, the project’s economic efficiency has yet been ensured while theproduction cost of nuclear power is higher than that of other energy resources.
5. Government issues Resolution 35/NQ-CP onsupporting and developing businesses
Regarding businesses, especially private ones,as a driving force to increase competitiveness and economic autonomy, theGovernment on May 16, 2016 promulgated Resolution 35/NQ-CP on supporting anddeveloping enterprises through 2020. The document sets the goal of having atleast one million active businesses by 2020, including large-scale andfinancially strong ones. The State is committed to ensuring equal rights forall companies without discrimination of business forms and economics sectors inaccessing financial resources.
6. Number of newly-established firms hitrecord
The number of newly-established businesses seta record high since 2013. More than 100,000 companies have registered to set upwith a total investment of over 800 trillion VND (35.3 billion USD), up over 17percent in number and 48 percent in registered capital against 2015. Thefigures show that the new legal framework, solutions, and the action role ofthe Government in supporting and encouraging businesses to develop havecontinuously proved effective.
7. Maritime environmental pollution incidentin central region
The waste discharge of the Taiwanese-investedHung Nghiep Formosa Ha Tinh Steel Co. Ltd caused serious impacts on the marineenvironment from the central coastal province of Ha Tinh to Thua Thien-Hue,heavily impacting local production and lives. With the policy of not exchangingthe environment with investment projects, the Government, ministries, sectorsand localities took drastic measures to strictly deal with the wrongdoings,address consequences, support fishermen and force Formosa to makecompensations.
8. The State Bank of Vietnam applies newexchange rate management mechanism
In 2016, the State Bank of Vietnam (SBV) hasapplied new mechanism of exchange rate management. The SBV announced areference exchange rate between VND and USD on a daily basis. The new mechanismallows flexible fluctuations of daily exchange rates according to domesticsupply and demand of foreign currency and global market developments, but stillensures the regulatory role of the SBV in monetary policy management.
9. Vietnam promotes international economicintegration
The trade and economic ministers of 12countries joining the Trans-Pacific Partnership (TPP) agreement signed thisglobal trade deal on February 4, 2016, in Auckland, New Zealand, marking theofficial completion of negotiations and the start of ratification procedures ineach country. After that, the free trade agreement (FTA) between Vietnam andthe Eurasian Economic Union (EAEU) came into effect on October 5, 2016. Theconclusion of the TPP and FTA has reaffirmed Vietnam’s efforts to promoteinternational economic integration.
10. Vietnam sets record to welcome 10 millionforeign tourists
Vietnam welcomed 10 million internationalvisitors for the first time in 2016, a year-on-year rise of 25 percent. Thecountry also served 62 million domestic vacationers. The tourism sector rakedin 400 trillion VND (17.65 billion USD) in revenues. This is an importantmilestone in the tourism sector’s path to become a national spearhead economicsector and make Vietnam a primary destination in the region.-VNA
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