[Vietnam] Economic – Social situation report for Quarter II and the first 6 months of 2021

The following article belongs to the GENERAL STATISTICS OFFICE of Vietnam.

1. GDP growth rate

Gross domestic product (GDP) in the second quarter of 2021 was estimated to increase by 6.61% over the same period last year, higher than the growth rate of 0.39% in the second quarter of 2020 but lower than the growth rate of 6.73%. of the second quarter of 2018 and 2019; of which the agriculture, forestry and fishery sector increased by 4.11%; the industry and construction sector increased by 10.28%; service sector increased by 4.30%. Regarding GDP use in the second quarter of 2021, final consumption increased by 3.18% over the same period last year; accumulated assets increased by 6.05%; exports of goods and services increased by 29.81%; imports of goods and services increased by 28.53%.

GDP in the first 6 months of 2021 increased by 5.64%, higher than the growth rate of 1.82% in the first 6 months of 2020 but lower than the growth rate of 7.05% and 6.77% of the same period in 2018 and 2019. The Covid-19 pandemic that broke out in a number of localities across the country from the end of April with complicated and unpredictable evolvement has posed many challenges and risks for our country in realizing the dual goal of “both prevention and control pandemic and economic development”. The growth results in the first 6 months of the year show the drastic direction and management of the Government and the Prime Minister; the joint effort and consensus of the political system, the business community, the people of the country and the frontline force against the pandemic to control the pandemic, carry out tasks and solutions for socio-economic development in 2021. In the general growth rate of the whole economy, the agriculture, forestry and fishery sector increased by 3.82%, contributing 8.17%; the industry and construction sector increased by 8.36%, contributing 59.05%; the service sector increased by 3.96%, contributing 32.78%.

The agriculture, forestry and fishery sector in the first 6 months of 2021 increased significantly compared to the same period last year due to the high productivity of winter-spring rice, stable development of livestock and aquaculture, agricultural and aquatic products mostly increased quite well. In which, the agricultural sector increased by 3.69%, only lower than the growth rate of 4.24% in the first 6 months of 2011 in the period 2011-2021[1], contributing 0.34 percentage points to the increase in total value added. more of the whole economy; the forestry sector increased by 3.98% but accounted for a low proportion, so it contributed only 0.02 percentage points; the fishery sector increased by 4.25%, higher than the increase of 2.42% in the first 6 months of 2020, contributing 0.11 percentage points.

In the industry and construction sector, the industry in the first 6 months of 2021 increased by 8.91% over the same period last year, lower than the growth rate of 9.13% in the first 6 months of 2019 but higher than the growth rate of 2.91% of the first 6 months of 2020, contributing 3.01 percentage points to the growth rate of the total added value of the whole economy. The manufacturing industry is the growth engine of the whole economy with an growth rate of 11.42%, lower than the growth rate of the same period in 2011 and 2018 in the period 2011-2021[2], contributing 2.9 percentage points. The electricity production and distribution industry increased by 8.16%, contributing 0.31 percentage points. The mining industry decreased by 6.61%, reducing the growth rate of the total added value of the whole economy by 0.25 percentage points due to a decrease in exploited crude oil output by 7.3% and a decrease of 12.5% in natural gas in air form. The construction industry increased by 5.59%, only higher than the 4.54% growth rate of the same period in 2020 in the period 2014-2021[3], contributing 0.37 percentage points.

In the service area, the system of restaurants and on-site food service establishments, passenger transport faced many difficulties due to the implementation of social distancing in some localities to prevent the pandemic. Growth of the service sector in the first 6 months of 2021 was only higher than the growth rate of 0.48% of the same period in 2020 in the period 2011-2021[4]. Contributions of some market service industries with a large proportion to the increase in the total added value of the first 6 months of 2021 are as follows: Wholesale and retail increased by 5.63% over the same period last year. the service sector’s largest contribution to the total added value growth of the whole economy with 0.57 percentage points; financial, banking and insurance activities increased by 9.27%, contributing 0.49 percentage points; transportation and warehousing decreased by 0.39%, down by 0.02 percentage points; accommodation and catering services decreased by 5.02%, down 0.12 percentage points.

Regarding the structure of the economy in the first 6 months of 2021, the agriculture, forestry and fishery sector accounted for 12.15%; industry and construction accounted for 37.61%; service sector accounted for 41.13%; product tax minus product subsidies accounted for 9.11%.

Regarding GDP use in the first 6 months of 2021, final consumption increased by 3.56% over the same period in 2020; accumulated assets increased by 5.67%; exports of goods and services increased by 24.05%; imports of goods and services increased by 22.76%.

2. Agriculture, forestry and fishery

Agriculture, forestry and fishery production in the first 6 months of 2021 took place in relatively favorable weather conditions, crop productivity was quite good, especially winter-spring rice with the highest yield ever at 68.3 quintals/ha; pig breeding is recovering, poultry breeding is developing well, pig and poultry population at the end of June was estimated to increase by 11.6% and 5.4% against the same period last yearFishery exports showed signs of recovery, import demand for pangasius in foreign markets increased again, vannamei shrimp output in the first six months increased by 15.4% over the same period last year.

a) Agriculture

Winter-spring paddy this year, the country cultivated 3,006.7 thousand hectares, an equal to 99.4% of Winter-spring paddy last year, of which Northern provinces reached 1,086.6 thousand hectares, an equal to 99%; Southern provinces reached 1,920.1 thousand hectares, equaling 99.7%. According to the preliminary report, the yield of winter-spring paddy nationwide was estimated at 68.3 quintals/hectares, an increase of 2.6 quintals/hectare compared with that of over the previous winter-spring crop, production nationwide was estimated at 20.55 million tons, an increase of 673.1 thousand tons.

Along with harvesting winter-spring paddy, as of the Middle of June, localities in the whole country cultivated 1,846.2 thousand hectares of summer-autumn paddy, equaling 105.6% of the same period last year, of which the Mekong River Delta reached 1,448.7 thousand hectares, an equal to 104.7%. Up to now there were 147.7 thousand hectares of early summer-autumn paddy in Mekong River Delta for harvest, account for 10.2 % of the cultivated area.

As of mid-June, localities across the country cultivated 558.5 thousand hectares of maize, equaling 99.1% over the same period last year; 73.1 thousand hectares of sweet potatoes, equaling 100.3%; 19.4 thousand hectares of soybeans, equaling 87%; 131.7 thousand hectares of groundnut, equaling 96.9%; 731.2 thousand hectares of vegetables and beans, equaling 100.9%.

The total area of perennial trees was estimated at 3,614.3 thousand hectares, rising by 1.3% over the same period in 2020. Production of perennial industrial crops in the first six months increased compared with the same period last year: Tea reached 488.7 thousand tons, rising by 2.3%; rubber reached 390.6 thousand tons, rising by 3%; cashew nuts reached 342.8 thousand tons, an increase of 4.6%; pepper reached 271.7 thousand tons, rising by 3.1%. Production of some fruits was recorded well: dragon fruit reached 671.7 thousand tons, rising by 7.4% over the same period last year; mangoes reached 568.2 thousand tons, rising by 3.3%; oranges reached 326.1 thousand tons, rising by 3.1% grapefruit reached 258.5 thousand tons, rising by 10.7%; litchi reached 154.2 thousand tons, rising by 7.9%; logan reached 179.9 thousand tons, rising by 3.4%.

It was estimated at the end of June 2021, buffalo population decreased by 3.1% against the same period last year; cattle population increased by 2.5%; pig population increased by 11.6%; poultry population grew by 5.4%. It was estimated in the first 6 months of 2021, production of buffalo living weight reached 60.9 thousand tons, falling by 0.1% (in the second quarter, it reached 27.4 thousand tons, falling by 1%); production of cattle living weight reached 231 thousand tons, rising by 4.2% (it was recorded to reach 106.4 thousand tons in the second quarter, an increase of 4.6%); production of pig living weight reached 2,002.2 thousand tons, rising by 8.1% (it reached 1,003.7 thousand tons in the second quarter, rising by 8.6%); poultry living weight reached 932.2 thousand tons, rising by 6.1% (in the second quarter, it reached 450.5 thousand tons, rising by 6.1%); cow milk production reached 561.1 thousand tons, rising by 11.2% (the second quarter reached 285.5 thousand tons, rising by 12.8%); production of poultry eggs reached 8.4 billion eggs, rising by 5% (it reached 4 billion eggs in the second quarter, rising by 5.6%).

As of June 21, 2021, the country was no longer recorded cases of blue ear disease in pigs. Some diseases remained in several localities for less than 21 days: avian influenza remained in Ha Noi, Cao Bang, Hoa Binh, Tien Giang, Dong Thap; foot and mouth disease remained in Son La, Ha Tinh; African swine fever was reported in 30 provinces and LSD reported in 32 provinces.

b) Forestry

In the second quarter of 2021, the concentrated newly planted forest area of ​​the whole country was estimated at 77.2 thousand hectares, up 3.7% over the same period last year; the number of scattered planted trees reached 20.1 million trees, up 2.6%; timber production reached 4,909.7 thousand m3, up 5.9%; firewood production reached 5.4 million steres, equaled to the same period last year. Generally, in the first 6 months of 2021, the concentrated newly planted forest area was estimated at 110.4 thousand hectares, up 3.1% over the same period last year; the number of scattered planted trees reached 46.5 million trees, up 2.2%; timber production reached 7,945.6 thousand m3, up 5.7%; firewood production reached 9.9 million steres, down 0.1%.

The damaged forest area in the first six months of 2021 estimated at 955.6 hectares, an increase of 31.1% over the same period last year, including the burnt forest area is 283.2 hectares, an increase of 1.0%; the deforested forest area was 672.4 hectares, an increase of 49.9%.

c) Fishery

Fishery output in the second quarter of 2021 was estimated at 2,269.6 thousand tons, up 3.3% over the same period last year. Generally, in the first six months of 2021, fishery production was estimated at 4,096.3 thousand tons, up 2.8% over the same period last year, of which aquaculture production reached 2,104.8 thousand tons, up 4.1%; catch fishery output reached 1,991.5 thousand tons, up 1.4%.

3. Industrial production

Industrial production in the second quarter of 2021 grew quite well because business activities of enterprises were maintained and gradually recovered, the growth rate of added value reached 11.45% over the same period last year. Generally, in the first 6 months of 2021, the added value of the industry increased by 8.91%, of which the processing and manufacturing industry increased by 11.42%, higher than the growth rate of 5.06% of the same period in 2020.

The added value of the whole industry in the first 6 months of 2021 was estimated to increase by 8.91% over the same period last year (increased by 6.29% in QI/2021 and increased by 11.45% in QII/2021). Of which, the manufacturing industry increased by 11.42% (increased by 8.9% in the first quarter; increased by 13.84% in the second quarter), contributing 2.9 percentage points to the increase in the total added value of the whole economy; electricity production and distribution increased by 8.16%, contributing 0.31 percentage points; the Water supply, sewerage, waste management and remediation activities increased by 6.75%, contributing 0.04 percentage points; the mining industry decreased by 6.61% (due to a decrease in crude oil production by 7.3% and a decrease in natural gas by 12.5%), reducing the overall growth rate by 0.25 percentage points.

Consumption index of the manufacturing industry in the first 6 months of the year increased by 9.3% over the same period last year. The inventory index of the manufacturing industry was estimated as of June 30, 2021, increasing by 24.3% over the same period last year (in the same period of 2020 it increased by 26.7%); the average inventory rate of the manufacturing industry in the first 6 months of 2021 reached 75.2% (the same period last year was 81.5%); the number of employees working in industrial enterprises as of June 1st, 2021 decreased by 1.4% over the same period last month and decreased by 1% from the same period last year.

4. Enterprise activities

Newly established enterprises in the first 6 months of 2021 reached 67.1 thousand interprises, increased by 8.1% compared to the same period last year, and increased by 34,3% in the registered capital. The increase in the number and capital of newly registered enterprises showed the efforts and entrepreneurial spirit of the business community in the context of the complicated development of the epidemic. Generally, in the first 6 months of 2021, the total number of newly registered enterprises and re-operated enterprises reached 93.2 thousand enterprises, increased by 6.9% compared to the same period 2020; the average registered capital of a newly established enterprise reached 14,1 billion VND, increased by 24.2%. Results on the business tendency survey of the manufacturing enterprises in the second quarter of 2021 still recorded a positive assessment when 68.2% of enterprises identified their production and business activities in the second quarter of 2021 compared to the first quarter of 2021 is better and stable.

a) Enterprise registration status[5]

In June 2021, the whole country had 11.3 thousand newly established enterprises with registered capital were 164.3 trillion VND and a total number of registered employees of nearly 71.9 thousand employees, a decrease of 2,5% in the number of enterprises, an increase of 9.1% in the registered capital and a decrease of 0.4% in the number of employees compared to last month. The average registered capital of a newly established enterprise reached 14.5 billion VND, an increase of 11.9% compared to last month, and a growth of 43.3% compared to the same period last year. In the month, there were 4,867 re-operated enterprises in the whole country, a decrease of 0.5% ​​compared to the previous month and a decrease of 2.6% compared to the same period in 2020; 3,867 enterprises ceased for a certain time, an increase of 13.7% and an increase of 20.2%; 5,238 enterprises temporarily ceased and awaited dissolution procedures, an increase of 23.7% and rose by 36.3%; 1,919 enterprises completed dissolution procedures, an increase of 50% and an increase of 40.3%.

Generally, in the first 6 months of this year, the whole country had nearly 67.1 thousand newly registered enterprises with a total registered capital of 942.6 trillion VND and a total number of registered employees of 484.3 thousand employees, up 8.1% in the number of enterprises, an increase of 34.3% in number the registered capital and a decrease of 4.5% in the number of employees compared to the same period last year. The average registered capital of a newly established enterprise in 6 months achieved 14.1 billion VND, climbing up 24.2% compared to the same period last year. If including 1,152.5 trillion VND of the additionally registered capital of nearly 23.7 thousand enterprises that recorded an upward adjustment of capital, the total additional registered capital in the economy in 6 months of this year was 2,095.1 trillion VND. Besides, there were 26.1 thousand re-operated enterprises, an increase of 3.9% over the same period last year, bringing the total number of newly registered enterprises and re-operated enterprises in 6 months to 93.2 thousand enterprises, the average every month had 15.5 thousand newly established enterprises and re-operated enterprises.

In 6 months this year, there were 70.2 thousand enterprises temporarily ceased for a certain time, temporarily ceased and awaited dissolution procedures, and completed dissolution procedures, an increase of 24.9% over the same period last year, including the number of enterprises temporarily ceased for a certain time was 35.6 thousand enterprises, an increase of 22.1% compared to the same period last year; 24.7 thousand enterprises temporarily ceased and awaited dissolution procedures, a climbing up 25.7%; 9.9 thousand enterprises completed dissolution procedures, an increase of 33.8%. On average, 11.7 thousand enterprises withdrawing from the market each month.

b) Business trends of the enterprises

Results of the business tendency survey of manufacturing enterprises in the second quarter of 2021 showed that: 30.5% of enterprises assessed that the business production situation was better than the first quarter of 2021; 37.7% of enterprises said that the business production situation was stable and 31.8% of enterprises faced difficulties. For the expected outcome of the third quarter of 2021, 39.2% of enterprises presented that the tendency would get better than the second quarter of 2021; 22.2% of enterprises predicted that it would be more difficult and 38.6% of enterprises said that business production situation would be stable.

5. Service activities

The Covid-19 epidemic still complicated, although some localities have implemented social distancing in areas with outbreaks of the epidemic, the total retail sales of consumer goods and services in the first 6 months of 2021 increased by 4.9% over the same period last year (the same period in 2020 decreased by 1.1%); passenger transport activities continued to face difficulties; freight transport was maintained when production and business activities are made efforts to achieve the “dual goal” of the Government. International visitors to Viet Nam in the first 6 months of 2021 reached 88.2 thousand arrivals, down 97.6% over the same period last year because Viet Nam has continued to implement measures to prevent and control the Covid-19 epidemic, international tourism has not yet opened.

Gross retail sales of consumer goods and services in the second quarter of 2021 was estimated at 1,177.6 trillion VND, down 8.4% compared to the previous quarter and up 5.1% over the same period last year. Generally, in the first 6 months of 2021, the gross retail sales of consumer goods and services reached 2,463.8 trillion VND, up 4.9% over the same period last year, if excluding the price factor, an increase of 3.55% (the same period in 2020 decreased by 5.77%).

Passengers carried in the second quarter of 2021 was estimated at 844.4 million persons, an increase of 24.3% over the same period last year and passenger traffic reached 37.5 billion passengers-kilometers, up 23.7%. Generally, for the first 6 months of 2021, passenger carried reached 1,813.5 million passengers, decreased by 0.7% over the same period last year (the same period of 2020 down 26.8%) and passenger traffic gained 78.8 billion passengers-km, down 5,7% (the same period of 2020 decreased by 31.7%). Freight carried in the second quarter of this year was estimated at 439.6 million tons, an increase of 15.2% over the same period last year and freight traffic reached 91.3 billion tons-km, up 18%. Generally, for the first 6 months of 2021, freight carried reached 903.5 million tons, up 11.5% against the similar period last year (the same period in 2020 decreased by 7.8%) and freight traffic gained 178 billion tons-km, went up 11.3% (the same period of 2020 decreased by 7%).

Telecommunications revenue in the second quarter of 2021 was estimated at 78.3 trillion VND, an increase of 4.2% compared to the same period last year (if excluding the price factor, the increase was 3%). Generally, in the first 6 months of 2021, telecommunications revenue was estimated to reach 158 trillion VND, increased by 2.4% compared to last year (if excluding the price factor, the increase was 3.3%).

International visitors to Viet Nam in the first 6 months of 2021 reached 88.2 thousand arrivals, down 97.6% over the same period last year.

6. Banking, insurance and securities activities[6]

Production and business activities of the economy are gradually recovered, credit demand of businesses and people tend to increase when the State Bank of Vietnam implemented interest rate cuts in 2020. The growth credit of the economy as of June 21, 2021 reached 5.47% compared to the end of 2020. The insurance business grew positively, insurance premium revenue of the whole market in the first 6 months of 2021 increased by 17% higher than the same period last year; The stock market increased strongly with total capital mobilization for the economy increased by 68%.

As of June 21, 2021, the total means of payment increased by 3.48% compared to the end of 2020 (at the same time in 2020 increased by 4.59%); capital mobilization by credit institutions increased by 3.13% (in the same period of 2020 increased by 4.35%); credit growth of the economy reached 5.47% (in the same period in 2020 it increased by 2.45%).

Insurance premium revenue for the whole market in the first 6 months of 2021 was estimated to increase by 17% compared to the same period last year (the second quarter of 2021 increased by 11%), of which life insurance premium revenue increased by 22%; the non-life insurance sector increased by 7%.

By the end of May 2021, insurance enterprises’ investment back into the economy was estimated at 512.9 trillion dongs, up 26.7% over the same period in 2020; total assets of the entire insurance market reached 628.4 trillion VND, up 23.2%.

By the end of May, the total capital mobilization for the economy of the stock market was estimated at 116.4 trillion VND, up 68% over the same period last year. In the first 6 months of 2021, the average trading value on the stock market reached VND 22,428 billion dongs /session, up by 302.3%. The average trading value on the bond market reached 11,622 billion dongs/session, up by 17.2%. The average trading value on the derivatives market reached 24,041 billion VND/session, up by 90.9%.

7. Development investment

Realized investment capital in the first 6 months of 2021 at current prices was estimated at 1,169.7 trillion VND, up 7.2% over the same period last year, much higher than the 3% increase in 2020. This increase reflected the results of solutions to promote the disbursement of public investment capital and the effectiveness of the State’s support policies for the business community, as well as the trend to anticipate the shifting FDI inflows into Vietnam in the context of the Covid-19 epidemic well controlled.

The realized investment in the 2nd quarter of 2021 at current prices was estimated at 661.1 trillion VND, a growth of 7.8% over the same period last year. Generally in the first 6 months of 2021, the realized investment at current prices estimated at 1,169.7 trillion VND, increasing by 7.2% over the same period of last year, of which: the investment capital of the State sector reached 295.2 trillion VND, representing 25.3% of the total capital and increasing by 7.3% compared to same period of last year; the non-state sector gained 660.1 trillion VND, accounting for 56.4% and rising by 7.4%; the foreign direct investment recorded 214.4 trillion VND, accounting for 18.3% and increasing by 6.7%.

The foreign direct investment from the beginning of the year to 20th June, 2021 including newly registered capital, adjust registered investment capital and the total value of capital contribution reached 15.27 billion USD, decreased by 2.6% compared to the same period in 2020. Of which, 804 newly licensed projects with a registered capital of 9.55 billion USD, a decrease of 43.3% in the number of projects and a growth of 13.2% of registered capital as compared to the same period last year; 460 turns of projects which were licensed from the previous years registered to adjust investment capital with the additional capital of 4.12 billion USD, increased by 10.6%; 1,855 turns of capital contribution and share purchases of foreign investors with a total value of the capital contribution of 1.60 billion USD, a drop of 54.3%. Including 624 turns of capital contribution capital, share purchase, causing the increase of charter capital of the enterprise with the value of contributed capital of  772.7 million USD and 1,231 turns of foreign investors repurchased domestic shares without increasing the charter capital with a value of  832.9 million USD. Foreign direct investment capital that implemented in the first six months of 2021 reached 9.24 billion USD, a growth of 6.8% over the same period last year.

Vietnam’s investment abroad in the first six months of the year, there were 24 projects newly granted investment certificates with a total investment capital of 143.8 million USD, equaled to 77.6% over the same period9 turns of projects adjusted capital with additional capital of 403.2 million USD, up 10.8 times over the same period last year. Generally, the total investment capital of Vietnam abroad (newly and additionally licensed capital) reached 547 million USD, 2.5 times higher than the same period.

8. State budget revenues and expenditures

State budget revenues progress in the first 6 months of 2021 was quite good in the context of the Covid-19 pandemic complicated, estimated at 57.7% of the yearly plan. Budget expenditures are made according to the plan and progress of professional tasks of the budget-using units, prioritizing spending on Covid-19 pandemic prevention and control activities.

Total estimated State budget revenues of the first 6 months in 2021 achieved 775 trillion VND, equaling 57.7% of the annual plan, of which domestic revenues recorded 633.1 trillion VND, equaling 55.9%; crude oil revenue gained 18.5 trillion VND, equaling 79.8%; budget balance revenue from export-import balance obtained 122.8 trillion VND, equaling 68.8%.

Total State budget expenditures of the first 6 months in 2021 were estimated at 694.4 trillion VND, equaling 41.2% of the annual plan, of which recurrent expenditures were 501 trillion VND, equaling 48.3%; expenditure on development investment achieved 133.9 trillion VND, equaling 28.1%; 56.8 trillion VND were spent on debt interest payment, equaling 51.6%.

9. Export and import of goods and services

a) Export and import of goods[7]

In the context of the Covid-19 pandemic continuing to have complicated developments, spreading to many provinces and cities in the country, affecting the production activities of a number of enterprises in the industrial park, the export, imports turnover in June decreased slightly compared to the previous month, but still achieved a good growth compared to the same period last year. Total export and import turnover of goods in June 2021 was estimated at 54 billion USD, grew up 25% over the same period last year. Generally, in the first 6 months, total import-export turnover was estimated at 316.73 billion USD, rose by 32.2% over the same period last year, of which export turnover reached 157.63 billion USD, increased by 28.4%; import turnover reached 159.1 billion USD, increased by 36.1%[8]. The trade balance of goods in the first 6 months of 2021 was estimated to have a trade deficit of 1.47 billion USD.

Export turnover in May 2021 reached 26.19 billion USD. Export turnover in June 2021 was estimated at 26.5 billion USD, increased by 1.2% over the previous month and rose by 17.3% compared to the same period last year. In the second quarter of 2021, export turnover reached 79.23 billion USD, grew by 33.5% over the same period in 2020 and rose by 1.1% compared to the first quarter of this year. Generally, in the first six months of 2021, the export turnover was estimated at 157.63 billion USD, rose by 28.4% over the same period in 2020, of which, the domestic economic sector was 40.89 billion USD, went up 16.8%, accounting for 25.9% of total export turnover; the FDI sector (including crude oil) attained 116.74 billion USD, increased by 33%, sharing 74.1%. In the first six months of 2021, there were 25 products with export turnover of over 1 billion USD, contributing 88.9% to the total export turnover (5 products with export turnover of over 10 billion USD, accounting for 58%).

Regarding the structure of export commodity groups in the first six months of 2021, the group of heavy industry products and minerals was estimated at 84 billion USD, went up by 29.3% over the same period last year; the group of light industry and handicraft products was estimated at 58 billion USD, jumped up by 31.2%; agricultural and forestry products reached 11.58 billion USD, went up by 15.8%; the group of fishery products reached 4.05 billion USD, edged up by 12.4%.

Regarding the export commodity market in the first six months of 2021, the United States was Viet Nam’s largest export market with a turnover of 44.9 billion USD, a growth of 42.6% over the same period last year; the following was China market with 24.4 billion USD, going up by 24%; The EU with 19.3 billion USD, rose by 17.4%; ASEAN market with 13.8 billion USD, an increase of 26%; South Korea with 10.5 billion USD, an increase of 14.7% (same period last year had a trade surplus of 5.86 billion USD); Japan with 9.9 billion USD, increased by 6.9%.

Import turnover of goods in May 2021 reached 28.27 billion USD. Import turnover in June 2021 was estimated at 27.5 billion USD, decreased by 2.7% over the previous month and increased by 33.5% compared to the same period in 2020. In the second quarter of 2021, the import turnover reached 83.5 billion USD, rose by 45.7% over the same period in 2020 and grew by 10.4% compared to the first quarter of this year. Generally, in the first six months of 2021, the import turnover was estimated at 159.1 billion USD, increased by 36.1% over the same period in 2020, of which the domestic economic sector reached 55.9 billion USD, went up by 30.2%; the FDI sector gained 103.2 billion USD, edged up by 39.5%. In the first six months of 2021, there were 31 imported products with a turnover of over 1 billion USD, accounting for 87.4% of the total import turnover.

Regarding the structure of imported goods in the first six months of 2021, the group of input materials was estimated at 149.32 billion USD, went up by 36.7% over the same period last year, in which machinery, equipment, accessory, means of transport and components reached 72 billion USD, went up 33%; fuel and row materials reached 77.35 billion USD, up 40.2%. Consumer goods group was estimated at 9.78 billion USD, rose by 28%.

Regarding the imported goods market in the first six months of 2021, China remained the largest import market of Viet Nam with a turnover of 53.4 billion USD, jumped up by 53% over the same period last year; the following was the South Korean market with 25.2 billion USD, rose by 21.1%; ASEAN market with 20.9 billion USD, increased by 47.7%; Japan with 10.6 billion USD, going up 12.3%; EU market with 8.1 billion USD, expanding by 16.3%; the United States with 7.7 billion USD, increase of 9.5%.

The trade balance of goods in May 2021 witnessed a trade deficit of 2.07 billion USD[9]; trade deficit for the first five months was 0.47 billion USD; trade deficit for June 2021 was 1 billion USD; trade deficit in the first six months of 2021 was estimated at 1.47 billion USD[10], of which the domestic economic sector saw a trade deficit of 15.01 billion USD; the FDI sector (including crude oil) saw a trade surplus of 13.54 billion USD.

b) Export and import of services

In the second quarter of 2021, export turnover of services reached 891 million USD, decreased by 18.6% over the same period in 2020 (first quarter decreased by 80.6%); import turnover of services reached 4.8 billion USD, went up by 18.3% (first quarter decreased by 3.4%).

In the first six months of 2021, export turnover of services was estimated at 1.77 billion USD, went down by 68.5% over the same period in 2020, of which travel service gained 82 million USD (accounting for 4.6% of the total turnover), decreased by 97.4%; transportation service reached 147 million USD (accounting for 8.3%), decreased by 80.8%. Import turnover of service in the first six months of this year was estimated at 9.47 billion USD, edged up by 6.4% over the same period last year, of which transport services gained 4.8 billion USD (accounting for 50.2% of total turnover), increased by 32.7%; travel services reached 1.8 billion USD (sharing 19%), declined by 25.9%. The trade deficit of services in six months of 2021 was 7.7 billion USD.

10. Consumer price index, gold price index and US dollar

The price of input materials increased according to the world price; the increase in the price of electricity and water for a living in line with consumer demand were the main reasons for the consumer price index (CPI) in June 2021 increased by 0.19% compared to the previous month, went up by 1.62% compared to December 2020 and rose by 2.41% compared to June 2020. On average, in the first 6 months of 2021, CPI increased by 1.47% over the same period last year, the lowest increase since 2016[11]core inflation in 6 months increased by 0.87%.

The consumer price index (CPI) in June 2021 increased by 0.19% compared to the previous month, increased by 1.62% compared to December 2020 and increased by 2.41% over the same period in 2020. In the second quarter of 2021, CPI increased by 0.45% compared to the previous quarter and by 2.67% over the same period in 2020. The average CPI in the first 6 months of 2021 increased by 1.47% compared to the same period in 2020.

Core inflation in June 2021 increased by 0.07% over the previous month and by 1.14% over the same period last year. Average core inflation in the first 6 months of 2021 increased by 0.87% over the same period in 2020.

The gold price index in June 2021 increased by 1.12% compared to the previous month; increased by 0.23% compared to December 2020 and increased by 12.37% over the same period in 2020. US dollar price index in June 2021 decreased by 0.3% compared to the previous month; went down by 0.32% compared to December 2020 and fell by 0.87% over the same period in 2020.

11. Some social issues

a) Labor and employment

Due to the complicated developments of the Covid-19 epidemic in some localities, the labour and employment situation in the second quarter of 2021 was affected, the number of workers working in the economy decreased compared to the previous quarter, unemployment and underemployment rates in working age both increased[12]. However, in the first 6 months of 2021, the number of laborers working in the economy still increased compared to the same period last year, the unemployment rate in the working age decreased and the income of salaried workers increased[13].

The labour force aged 15 and over of the whole country in the second quarter of 2021 was estimated at 51.1 million people, an increase of 44.7 thousand people compared to the previous quarter and an increase of 1.7 million people compared to the same period last year. Generally, in the first 6 months of the year, the labour force aged 15 and over was 51 million people, an increase of 737.7 thousand people compared to the same period in 2020. The labor force in working age in the second quarter of 2021 was estimated at 45.1 million people, down 50.2 thousand people compared to the previous quarter and up 823.6 thousand people over the same period last year. Generally, in the first 6 months of 2021, the labor force in working age was 45.2 million people, down 90.8 thousand people compared to the same period last year.

The employed population aged 15 years and over in the second quarter of 2021 were estimated at 49.8 million people. Generally, in the first 6 months of 2021, the employees’s population aged 15 years and over were 49.9 million people, including 13.9 million people working in agriculture, forestry and fishery, accounting for 27.9% total, up 1.9% over the same period last year; industry and construction sector 16.4 million people, accounting for 32.8%, up 0.5%; service sector 19.6 million people, accounting for 39.3%, up 2.4%.

The unemployment rate nationwide in the first 6 months of the year was estimated at 2.30% (2.19% in the first quarter; 2.40% in the second quarter), of which the urban unemployment rate was 3.07%; the rural area is 1.86%[14]. The unemployment rate of workers in the first 6 months of the year is estimated at 2.52% (2.42% in the first quarter; 2.62% in the second quarter), of which the urban unemployment rate was 3.28%; the rural area was 2.07%[15]. The youth unemployment rate (aged 15-24) in 6 months was estimated at 7.45%, of which the urban area is 9.97%; rural area is 6.22%. The underemployment rate of workers in the first quarter of 2021 was 2.20%; the second quarter was 2.60%. In general, in the first 6 months of 2021, the underemployment rate of laborers of working age was estimated at 2.58%, of which the underemployment rate in urban areas was 2.64%;

b) Residential life and social security

In the first 6 months of 2021, despite being affected by the Covid-19 epidemic, localities continued to strive to realize the “dual goal” of preventing and fighting the epidemic, protecting people’s health, and recovering at the same time. Socio-economic recovery and development such as Agricultural production have prospered, businesses have taken timely measures to both ensure anti-epidemic and promote production and business activities. At the same time, localities have implemented many forms of job creation, unemployment benefits for workers, and subsidies for people in areas directly affected by the epidemic. Therefore, the people’s lives, in general, remaind stable.

Social security work continued to be careful, in the first 6 months of 2021, the total value of money and gifts to support beneficiaries was 6,906 billion VND, of which, support for people with meritorious services and relatives of people with meritorious services was 2,540.9 billion VND, support for poor and near-poor households was 1,354.7 billion VND; support for hunger relief and social protection beneficiaries was 1,958.4 billion VND; supporting other subjects was 1,052 billion VND. There were more than 30 million social insurance cards/books/cards for free medical examination and treatment distributed to beneficiaries.

c) Epidemic diseases and food poisoning

The epidemic of Covid-19 in the world continues to be complicated[16]. In Vietnam, the Covid-19 epidemic is continuing to be controlled, but locally in some localities such as Ho Chi Minh City, Bac Giang, Bac Ninh, Binh Duong, which are complicated and difficult to predict, and in some provinces, there is a high risk of a flare-up again. As of noon on June 28, 2021, Vietnam has 15,643 cases have been reported, 6,319 cases have been cured (76 deaths).

d) Traffic accident[17]

In the first 6 months of 2021, there were 6,007 traffic accidents in the whole country, including 3,887 traffic accidents from less serious and above and 2,120 traffic collisions, causing 3,092 deaths, 2,032 injured and 2,284 minor injuries. On average, 1 day in the first 6 months of 2021, there were 33 traffic accidents nationwide, including 21 traffic accidents from less serious and above and 12 traffic collisions, killing 17 people, 11 people were injured and 13 people were slightly injured.

e) Damage caused by natural disaster

Generally, in the first 6 months of this year, natural disasters made 34 people dead and missing, 51 people were injured; 6.6 thousand cattle and poultry died; 47.5 thousand hectares of rice and 12.4 thousand hectares of crops were damaged; 238 houses collapsed, swept away and 7.7 thousand houses were flooded and damaged; total value of property damage was estimated at 508.7 billion VND, down 89.3% over the same period last year.

g) Environmental protection and fire prevention

Generally, in the first 6 months of this year, 9,082 cases of environmental violations were detected, of which 8,006 cases were handled with a total fine of 120.3 billion VND. During the month[18], there were 191 fires and explosions in the whole country, killing 8 people and injuring 9 others, with estimated damage of 20.2 billion VND. Generally, in the first 6 months of 2021, there were 1,157 fires and explosions in the whole country, killing 56 people and injuring 84 people, with estimated damage of 287 billion VND.

In general, in the context of the Covid-19 epidemic, which is still complicated, however, the socio-economic picture of Vietnam in the first 6 months of 2021 continued to remain stable and achieve positive results in many areas due to the timely, drastic, and very close direction and management of the Government, the Prime Minister and the efforts of all levels, branches, localities, the business community and the people./.

[1] The increase/decrease in value added growth rate in agriculture in the first 6 months compared with the years 2011-2021 was respectively: 4.24%; 2.69%; 1.87%; 2.15%; 1.72%; -0.78%; 2.13%; 3.07%; 1.15%; 0.88%; 3.69%.

[2] The growth rate of the added value of the manufacturing industry in the first 6 months compared to the same period in 2011-2021was respectively: 13.37%; 8.96%; 5.61%; 6.61%; 10.0%; 10.5%; 10.52%; 12.87%; 11.18%; 5.06%; 11.42%.

[3] The growth rate of added value of the construction industry in the first 6 months of the year compared to the same period in 2014-2021 was respectively: 6.11%; 7.66%; 9.30%; 8.50%; 7.93%; 7.85%; 4.54%; 5.59%.

[4] The growth rate of added value of the service sector in the first 6 months compared to the same period in 2011-2021 was respectively: 6.91%; 6.11%; 6.13%; 5.82%; 5.86%; 6.47%; 6.89%; 6.89%; 6.69%; 0.48%; 3.96%.

[5]Source: National Enterprise Registration Information System, Business Registration Management Agency, Ministry of Planning and Investment (Received the report on 25th June 2021)

[6] Securities data according to Official Letter 3151/UBCK-CNTT dated May 25, 2021 of the State Securities Commission.

[7] Data in June 2021 meeting by an interdisciplinary team consisting of the Ministry of Industry and Trade, the Ministry of Planning and Investment, the State Bank of Viet Nam, the General Department of Customs and the General Statistics Office meeting estimates based on export turnover figures, import as of June 27, 2021 of the General Department of Customs combined with market information, the proportion and trend of export and import of goods. The General Statistics Office received and updated the report on the afternoon of June 28, 2021.

[8] Total export and import turnover in the first six months of 2020 reached 239.67 billion USD, went down 1.5% over the same period last year, of which exports reached 122.77 billion USD, increased by 0.2%; import reached 116.9 billion USD, went down 3.3%.

[9] The trade deficit in May 2021 was estimated at 2 billion USD.

[10] In which, in the first six months of 2021, the trade surplus to the EU reached 11.2 billion USD, rose by 18.2% over the same period last year; trade deficit from China was 29 billion USD, went up 90.3%; trade deficit from South Korea was 14.7 billion USD, going up 26.2%; trade deficit from ASEAN was 7.1 billion USD, increased by 122.2%.

[11] The average CPI growth rate in the first 6 months of the year compared to the same period last year in 2016-2021: 1.72%; 4.15%; 3.29%; 2.64%; 4.19%; 1.47% respectively.

[12] The employed population at 15 years of age and over in the second quarter of 2021 decreased by 65 thousand people compared to the previous quarter; the unemployment rate at working age increased by 0.2 percentage points; the underemployment rate at working age increased by 0.4 percentage points.

[13] The employed population at 15 years of age and over in the first 6 months of 2021, an increase of 788.7 thousand people compared to the same period last year; the unemployment rate in working age decreased by 0.07 percentage points; income of salaried workers increased by 281.7 thousand VND.

[14] The unemployment rate in the first 6 months of 2020 was 2.43%, of which the urban area was 3.52%; rural 1.84%.

[15] The unemployment rate of workers in the first 6 months of 2020 was 2.59%, of which the urban area was 3.70%; rural area was 1.97%.

[16] As of noon on June 28, 2021, in the world, there were 181,866 thousand cases of Covid-19 (3,938.9 thousand deaths)

[17]According to quick reports from the Office of the Ministry of Public Security and the Department of Maritime Affairs (the Ministry of Transport).

[18] According to a quick report from the Ministry of Public Security on June 23, 2021.

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