Vietnam’s 2016 Industrial Production Growth Slows
Vietnam’s industrial output increased an estimated 7.5% in 2016 over a year ago, slower than annualized increases of 9.8% in 2015 and 7.6% in 2014, dragged down by a 5.9% decline of the mining sector, official statistics showed.
Retail Sales, Services Revenue Grows 10.2% in 2016
Total revenue of retail sales and services in Vietnam topped 3,527.4 trillion dong ($155.4 billion) this year, rising 10.2% from a year earlier. Excluding inflation, the growth would be 7.8%, lower than an 8.5% expansion in 2015.
Retail sales were estimated at $118 billion, up 10.2% year-on-year, according to the General Statistics Office (GSO
Foreign Tourist Arrivals to Vietnam Double in a Decade
Vietnam has welcomed an estimated 10.01 million foreign visitors this year, representing a 26% year-on-year increase and doubling the figure in 2010, as the government maintains visa waiver for citizens of five Western European countries, according to GSO.
Credit Growth Reaches 16.46% as of Dec. 20
Total outstanding loans in the Vietnamese banking system expanded 16.46% in the year to December 20, below the yearly growth target of 18-20%.
The total money supply increased 16.47%, compared to a growth of 13.55% in the same period last year.
Total Investment Equivalent to 33% of GDP
Total investment in Vietnam reached 1,485 trillion dong ($65.42 billion) this year, increasing 8.7% from 2015 and equivalent to 33% of GDP.
Of the amount, the state sector pumped $24.6 billion, up 7.2%, the non-state sector $25.53 billion, and the foreign-invested sector $15.3 billion.
Vietnam Earns $2.68 Billion Trade Surplus This Year
Vietnam reported an estimated trade deficit of $300 million in December, taking the whole-year surplus to $2.68 billion, according to GSO.
Vietnam incurred the largest trade deficit of $28 billion with China, down 14.9% year-on-year. The Southeast Asian country had a deficit of $20.2 billion with South Korea, up 8%, and $6.3 billion with ASEAN countries, up 12.5%.
Kenda Rubber to Expand Production in Vietnam
Tire manufacturer Kenda Rubber Industrial Co has revealed plans to expand its tire production capacity in Vietnam in order to cater to rising demand. Kenda’s new factory in Vietnam is slated to commence operations in the third quarter of 2017, and will have an estimated daily capacity of 25,000 units.
The production of the new plant in Vietnam will be exported to the United States in order to leverage status as a low-tariff country and maintain Kenda’s price competitiveness when compared to rival tire companies.
Hilton, BRG Group Partner on Dual-Branded Hotel in Vietnam
Hilton has signed a management agreement with Victory Hotel Joint Stock Company, part of the BRG Group, for a 610-room dual-branded hotel in Hanoi, Vietnam.
With the signing of this partnership, Hilton will now have six hotels in the pipeline across Vietnam, including Ho Chi Minh City and Da Nang. Both Hilton Hanoi West Lake and DoubleTree by Hilton Hanoi West Lake are scheduled to open in 2020.
Thai Firms to Continue M&A Spree in Vietnam
Thai conglomerates will continue mergers and acquisitions of businesses in Vietnam and the leaders will be the same cash-rich companies as this year, The Nation cited deal-makers as saying.
According to legal firm Weerawong, Chinnavat & Peangpanor, the maturity of the domestic market has been driving Thai conglomerates to look for growth opportunities abroad, especially in other growing Southeast Asian markets.
Vietnam-South Korea Economic Cooperation Records Strong Boost
Trade relations between Vietnam and the Republic of Korea has reached new development milestones, with two-way trade surging 80 times to $40 billion in 2016 from only $0.5 billion in 1992, according to the Vietnam News Agency (VNA).
The Vietnam-South Korea Free Trade Agreement, which took effect in late 2015, has ushered in a new stage in the trade ties between the two countries, creating impetus to a greater investment flow from the Northeastern country into Vietnam in the coming time.
FLC Group to Launch $1.1 Billion Project in Vinh Phuc
The second phase of the FLC Vinh Phuc Resort worth 25 trillion dong ($1.1 billion) will be carried out in 2017, VNA reported.
The project is hoped to draw high-class tourists, build tourism brand for the province and call for more investment.
Vietnam’s gross domestic product (GDP) reached 4,502.7 trillion dong (roughly $205 billion) in 2016 in terms of current prices, or 2,215 per capita, rising $106 from 2015, according to the General Statistics Office.
Vietnam’s fiscal deficit reached 192.2 trillion dong ($8.47 billion) in the year to December 15, lower than the year’s initial plan of $11.2 billion, official data shows.
The fiscal shortfall is equivalent to 4.27% of the country’s gross domestic product (GDP), below the cap of 4.95% of GDP the National Assembly, the country’s supreme legislative body, according to a report released by the General Statistics Office.