The following are 10 selected outstanding economic events of Vietnam in 2018.
|National Assembly ratifies the CPTPP.
1. National Assembly ratifies the CPTPP
On November 12, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and related documents were ratified at the sixth session of the 14th National Assembly. The CPTPP is considered the third-largest free trade deal in the world and will become effective from 2019. It is a chance for Vietnam to expand its export markets, attract investment, promote growth and reform its policies in smoother and more transparent manner.
2. All socio-economic targets completed
Vietnam has completed and surpassed all the 12 socio-economic goals set by the National Assembly. The country’s GDP growth is estimated at more than 6.8 percent in the year, with trade surplus hitting a record of USD 6.89 billion and disbursement of foreign investment reaching USD 19.1 billion - the highest figure so far. In the year, 132,000 new firms were established, while the country welcomed nearly 15.6 million foreign tourist arrivals. This is the third consecutive year the inflation has been kept under 4 percent. Fiscal and monetary policies have been regulated flexibly, meeting capital demand.
3. The issuance of a resolution to make Vietnam a strong sea-based country
Resolution 36-NQ/TW on sustainable maritime economic development strategy of Vietnam to 2030 with a vision to 2045 was issued by the 12th Party Central Committee on October 22. The resolution aims to turn Vietnam into a strong sea-based economy meeting all criteria of sustainable maritime economic growth. Sea-based economic sectors are set to make up 10 percent to the GDP, while 28 coastal cities and provinces are expected to make up 65-70 percent of the country’s GDP. They will be developed to international standards. The exploitation of maritime resources will be controlled in line with the recovery capacity of the maritime ecosystem.
4. The launching of “Vietnamese goods conquer Vietnamese people” movement
On November 20, Prime Minister Nguyen Xuan Phuc kick-started a movement which aims to encourage businesses to apply advanced technology and modern management methods to improve the quality and reduce costs of their products, thus conquering the nearly-100-million-strong domestic market. This is a step forwards to the building of a high-quality Vietnamese trademark in the global value chain.
5. Thirty-year FDI attraction
2018 marks 30 years of Vietnam attracting of foreign direct investment (FDI). By the end of 2018, Vietnam will have hosted 27,353 valid FDI projects from 130 countries and territories with investment totaling nearly USD 340.1 billion. Currently, the FDI sector accounts for about a quarter of the country’s total social investment and more than 70 percent of total exports, while creating 8.5 million jobs.
6. The establishment of the Committee for Management of State Capital
The Committee for Management of State Capital was introduced on September 30 to manage 19 State-owned economic groups and corporations. It manages a total State equity of more than 1 quadrillion VND and asset value of 2.3 quadrillion VND, accounting for two-thirds of the State assets at enterprises. The committee is tasked with submitting strategies to the Government and the Prime Minister for business investment and development.
7. The settlement of major economic violation cases
Many corruption and economic violation cases that caused serious consequences were brought to court, including those in the Vietnam National Oil and Gas Group and PetroVietnam Construction Joint Stock Corporation; the Ocean Commercial Joint Stock Bank; the Dong A Joint Stock Commercial Bank; the Vietnam Construction Bank; and the Thai Son Corporation under the Defence Ministry; along with a huge online gambling case. All violators, regardless of their positions, were strictly dealt with, showing the country’s determination to purify the legal system and create a healthy, transparent business environment for development.
8. Vietnam’s hosting of World Economic Forum on ASEAN
The event was held in Hanoi in September under the theme of “ASEAN 4.0: Entrepreneurship and the Fourth Industrial Revolution”, drawing more than 1,000 delegates who joined 60 discussions on the building of a dynamic, strong and prosperous ASEAN Community for the people. The forum was considered the most successful regional meeting of the WEF in East Asia in 27 years.
9. First Vietnamese automobile brand debuts
Vinfast Manufacturing and Trading Company Limited, a subsidiary of Vietnamese conglomerate Vingroup, unveiled two of its new car models at the 120th Paris Motor Show on October 2. The firm won “A Star is Born” award from the organisation AUTOBEST. The event marked the presence of Vietnam in the global map of auto-making industry.
10. Successful production of vaccine against foot-and-mouth disease
Vietnam for the first time successfully produced a vaccine against foot-and-mouth disease - AVAC-V6 FMD Emulsion Type O. The price of the vaccine is about 20 percent lower than the imported one, helping save dozens of million USD each year for farmers and the State budget.