Vietnam’s economy and its groundbreaking records in 2016
Despite many difficulties and challenges coming from both domestic and international markets, Vietnam’s economy was still able to make positive records.
110,000 newly established enterprises
2016 becomes a remarkable milestone in the Vietnamese economic history as the country witnessed an unprecedented record of newly established businesses. Statistics from the National Business Registration Portal as of 20th of December showed that there were 110,000 new enterprises established, up by 16% compared to 2015. Followed by this event, the total capital of approximately $40 billion is expected to be poured into the market, marking a 48% increase as compared to the previous year.
The highest foreign exchange reserves
By the end of 2016, the Vietnamese exchange reserves reached a record of $41 billion. In the past, the foreign-exchange market was frequently unstable during the last months of a year due to limited national reserves and the spike in foreign currency demand. However, in 2016, with more foreign exchange reserves and flexible operating policy, the State Bank of Vietnam can intervene and regulate the market more effectively. A large number of economics experts believe the reason behind an increase in reserves this year is the positive results in Vietnam’s trade activities. According to the General Department of Customs, the total estimated import-export turnover of Vietnamese goods in 2016 reached $350 billion, up 6.6% as compared to 2015. In specific, the total export turnover is estimated at $176 billion and $174 billion is the figure for the total import turnover.
The highest stock growth in Southeast Asia
Despite a number of unexpected events which made many sessions of the stock market plummeted such as the turbulence of the Chinese stock market on the 4th of January, The Brexit on the 24th of June or the US President election results on the 9th of November, etc., the Vietnamese stock market has well recovered and was rated as one of the five markets with the highest growth rate in Southeast Asia. The latest statistics showed that the VN-Index rose by 15%; market capitalization reached $80 billion, equivalent to 40% of the GDP. Liquidity was improved significantly and the average transaction size reached $300 million per session.
FDI reached a record of $24 billion
By the 26th of December, there are 2,556 new FDI projects, with the total registered capital of $15.18 billion. The sum of the total registered capital, contributed capital and shares purchase reached $24.4 billion - the highest to be recorded and up by 7% as compared to the previous year. According to some economists, this positive result derives from the encouraging investment climate in Vietnam and the strong commitment of the Government to support the development of the citizens and businesses.
10 million international tourists to Vietnam
For the first time, Vietnam has attracted more than 10 million international passengers, up 26% compared to 2015. This year is considered a dynamic year for the tourism industry as many important events took place. For example, the Government for the first time organized a national conference on tourism development in the city of Hoi An and exempt visas for 5 Western European countries including the UK, France, Germany, Italy and Spain. Besides that, many promotional activities and e-marketing campaigns were deployed in order to promote the images of Vietnam to international friends.
Sources: 1, 2, 3