The Top 7 Key Highlights of Vietnam's Economy in 2016

In 2016, a record-breaking 110,100 new businesses were established, marking a 16.2% increase from 2015. The total registered capital for these new businesses reached 891.1 trillion VND, up by 48.1% compared to the previous year. On average, each business had registered capital of 8.1 billion VND. This surge is a result of the government's 'Startup Nation' initiative, championed by Prime Minister Nguyen Xuan Phuc. The total number of workers registered by these new businesses was 1.268 million, a rise of 86.1% compared to 2015. In addition to the new business registrations, there was also a notable increase in the number of companies returning to operation, totaling 26,689 businesses.

According to the General Statistics Office, retail sales of goods and consumer service revenue reached 72 trillion VND in 2016, a 10.2% increase compared to 2015. Despite higher consumer prices this year, the purchasing power of Vietnamese people remained strong, especially for electronics, technology, and fresh, convenient food products. The rapid growth of convenience stores (Vinmart+), as well as the expansion of tech retail chains (Fptshop, TGDĐ...), highlights the strong performance of the retail sector in 2016.

Vietnam's Export Revenue in 2016 Reached 175.9 Billion USD, with an 8.6% Increase from 2015

Vietnam's total export value in 2016 reached 175.9 billion USD, marking an 8.6% rise compared to 2015. The domestic economy accounted for 50 billion USD, up by 4.8%, while the FDI sector, including crude oil, reached 125.9 billion USD, showing a growth of 10.2% compared to the previous year. Imports amounted to 173.3 billion USD, increasing by 4.6% over 2015. The domestic economy imported 71.1 billion USD, while the FDI sector imported 102.2 billion USD. As a result, Vietnam recorded a trade surplus of 2.68 billion USD for the year. The domestic economy had a trade deficit of 21.02 billion USD, while the FDI sector posted a surplus of 23.7 billion USD.

Vietnam's GDP growth in 2016 was estimated at 6.21% compared to 2015. Specifically, the growth rates were 5.48% in Q1, 5.78% in Q2, 6.56% in Q3, and 6.68% in Q4. The sharp decline in the mining industry and environmental factors had a significant negative impact on GDP, leading to the shortfall in meeting the target. According to The Economist, Vietnam lost nearly 1% of its GDP (about 1.7 billion USD) due to the effects of drought, natural disasters, and floods. These environmental issues directly impacted the agriculture, forestry, and fishery sectors, resulting in negative growth during the first half of 2016. Despite not meeting the set GDP target, the General Statistics Office considered the 6.21% growth a success, given the difficult global and domestic economic conditions.

Despite negative growth in the first half of the year due to environmental factors such as weather, drought, and natural disasters, the second half showed much better results. Specifically, the agriculture, forestry, and fishery sectors grew by 1.36% compared to 2015. The export value of these industries reached 32.1 billion USD. According to the General Statistics Office, the total production value of agriculture, forestry, and fishery in 2016 was 870.7 trillion VND, a 1.44% increase over 2015, although still lower than the growth rates of 2015, 2014, and 2013. The agriculture sector contributed 642.5 trillion VND (up by 0.79%), forestry reached 28.2 trillion VND (up by 6.17%), and fisheries amounted to 200 trillion VND (up by 2.91%).

In 2016, the industrial sector index rose by 7.5% compared to 2015, which was lower than the 9.8% increase in 2015 and 7.6% growth in 2014. The main factor behind this slower growth was a significant decline in the mining sector, which affected the overall industry. The manufacturing sector saw a growth of 11.2%, while electricity production and distribution grew by 11.5%. The water supply and waste treatment sector grew by 7.2%, and the mining industry experienced a sharp decline, growing only by 5.9%.