Exports surge, import surplus tends to increase again
The GDP growth rate reached only 7.2 percent in the first quarter of the year, and around 7.8 percent in the second quarter. Therefore, the average GDP growth rate was 7.5 percent in the first half of this year. Industrial production value increased by 15.5 percent against the same period last year. Industrial production value of the non-state sector rose 22 percent while that of the foreign-invested sector was up 19 percent.
Export turnover in the past 6 months reached nearly US$18.728 billion (around US$3.1 billion on average). As export turnover amounted to US$3.4 billion in May and June.
Although
In the second quarter of the year, there was a warning of increase in import surplus, especially in the domestic business sector. So in the past six months, its import surplus reached US$5.29 billion (at an average monthly rate of US$882 million). How to reduce the import surplus in the domestic business sector is presently considered the hardest nut to crack in national economy.
Perfecting securities market operations
On June 23, 2006 the National Assembly passed the Law on Securities, which will come into effect on July 1, 2007. Accordingly, the Government will play host to the management of the securities market and devise securities market development plans. The Government will then assign the Ministry of Finance to manage securities and securities market. The State Securities Commission, which directly controls the securities market, is under the management of the Ministry of Finance.
The law makes clear the role and position of major entities of the securities market such as securities companies, securities custody management companies, and securities investment companies.
Enterprises that have their shares listed on the bourse are required to make public information about their operations. Securities companies are responsible for financial losses suffered by listed enterprises. Commercial banks are allowed to guarantee the issuance of bonds, while securities investment companies are licensed to operate in the form of joint stock companies.
However, only less than 50 enterprises have their shares listed on the bourse, and their total share value is rather small, making up only five percent of the country’s total GDP.
The number of equitised enterprises, which will join the securities market, is expected to increase significantly, particularly big State-owned enterprises, which will help increase capital for the market. With its promising prospects, the law will be revised again, at least after 2010.
The securities market is an effective channel of mobilising capital for the national economy. According to the national development programme till 2010,
On threshold of WTO integration
Vietnam and the US signed a historic bilateral trade pact in Ho Chi Minh City on May 31, paving the way for the former to join the World Trade Organisation (WTO) scheduled for later this year.
With the signing of the pact, Vietnam has been on the threshold of full integration into the world economy. Vietnam will join the “game”, in which each country will try to play by the rules to their best advantage.
Currently, Vietnam has more than 3,200 State-owned enterprises, which are working ineffectively and receiving subsidies from the State. The country also has more than 45,000 private and small enterprises whose operational capital is less than VND1 billion (US$62,800) and production technology is poor and outdated. Vietnam also has an agriculture-based industry with high potential for export but low-quality products and low percentage of processed products.
With these disadvantages, Vietnam will suffer losses in the first coming years. This is considered an inevitable step to open up an important new period for Vietnam’s economic development. To win in a fierce competition, Vietnam has no choice but to strengthen itself.
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