Vietnam News Today (Apr. 30): Vietnam Secures Remarkable Economic Successes Since National Reunification

Workers at a factory of the Japanese-invested Sankoh Vietnam Co. Ltd in Hoa Binh province (Photo: VNA)

Vietnam secures remarkable economic successes since national reunification

Since the national reunification on April 30, 1975, Vietnam has obtained admirable economic achievements and is now on its way to become the 20th largest economy in the world.

Back to 1975, Vietnam, torn by two major wars, was a backward economy dependent on agriculture and foreign assistance. Foreign loans and aid accounted for over 63% of its budget.

During 1976 - 1980, the gross domestic product (GDP) grew by just 1.4% and even contracted 1% in 1980, when the country imported up to 1.57 million tonnes of food.

The implementation of the five-year economic plan 1976 - 1980 encountered difficulties. Meanwhile, assistance from other socialist countries fell sharply, and China completely ceased support for Vietnam from 1977.

The wars along the southern and northern borders in 1979 added a further complication as they led to a dramatic increase in defense expenses amid suspended assistance from external sources.

Facing that fact, the Party and State initiated some changes to economic policies in 1979. In September that year, the 4th Party Central Committee held its 6th session, during which it released Resolution No. 20-NQ/TW, which allowed combining the planning mechanism with the market one and reusing the private economy, including private capital, under the State’s management. This was considered the first breakthrough in terms of mindset and economic viewpoint.

At its 9th session held in December 1980, the 4th Party Central Committee decided to expand and complete piecework in agriculture. On January 13, 1981, the Party Central Committee’s Secretariat issued Directive 100-CT/TW on improving the use of piecework and expanding this form of work to laborers and groups of laborers in agricultural cooperatives. This directive, also called Piecework 100, permitted the application of piecework to the entire agriculture nationwide

From 1981, the Vietnamese economy began flourishing, with food production surging, industrial production value growing relatively well, and trade deficit reducing considerably, cited VNA.

However, in late 1985 and 1986, the plan on price - salary - money reforms failed to achieve the desired results due to the patchy combination of reforms and old models, leading to serious consequences. This crisis made the Party and State realize that reforms must be carried out thoroughly.

In December 1986, the 6th National Party Congress issued a historic reform policy – switching from a centrally planned economy with subsidies to a multi-component commodity economy that operates in line with the market mechanism and is managed by the State and oriented towards socialism.

As a result, GDP expanded by an annual average of 6.51% during 1986 - 2000. Economic structure was shifted towards enhanced industrialisation and modernisation.

Since 2001, Vietnam has recorded strong economic development and integration into the world. The GDP in 2009 increased 12.5-fold from 2001 while the annual GDP growth rate during 2001 - 2010 stood at 7.26%.

Since 2008, it has emerged from a low-income country to a lower-middle-income one. Per capita GDP reached 2,715 USD in 2019, soaring 15-fold from 1990. The poverty rate, as calculated by the World Bank, dropped to 6.7% in 2018 from 28.9% in 2002.

In 2019, Vietnam ranked eighth worldwide and second in ASEAN in terms of GDP growth. It was one of the 30 countries with the fastest foreign trade expansion and also established itself as the 22nd largest exporting country around the globe.

Data released by the General Statistics Office in 2023 showed that GDP, as calculated at current prices, topped 10.221 quadrillion VND (430 billion USD). With this result, the size of the Vietnamese economy stood at 34th place on last year’s rankings by the UK-based Centre for Economics and Business Research (CEBR).

The International Monetary Fund (IMF) noted that in 2023, Vietnam ranked third in Southeast Asia with its GDP based on purchasing power parity (PPP) estimated at 1.438 trillion USD, following Indonesia (4.391 trillion USD) and Thailand (1.563 trillion USD), and 25th in the world.

By 2026, its GDP (PPP) is predicted to hit some 1.833 trillion USD to rank second in Southeast Asia, after Indonesia. The figure is forecast to reach 2.343 trillion USD to secure the 20th position globally for the economy by 2029.

Four-month foreign arrivals rise nearly 70% year on year

Vietnam welcomed 6.2 million foreign arrivals in the first four months of the year, up 68.3% year on year and up 3.9% from the same period in 2019 before the COVID-19 pandemic broke out.

According to statistics unveiled by the General Statistics Office (GSO), April alone witnessed the country receive nearly 1.6 million foreign visitors, up 58.2% year on year.

Of the four-month figure, 5.2 million foreigners chose to travel to Vietnam by air, representing a 1.6-fold increase compared to the same period last year, according to VOV.

Photo: VOV

Around 856,900 international tourists came to Vietnam by road, marking a 2.3-fold increase year on year, while the remainder 151,500 came by sea, or a 3.4-fold increase from a year ago.

Four-month revenue from accommodation and catering services soared by 15.3% year on year to VND237 trillion.

Throughout the reviewed period, earnings from tourism services surged by 49.3% year on year to VND19.4 trillion. Khanh Hoa topped the list with an increase of 158.5%, followed by Da Nang with 98.5%, Binh Dinh with 60.6%, and Ho Chi Minh City with 58.7%.

According to the Vietnam National Authority of Tourism (VNAT), Hanoi, Hoi An in Quang Nam province, and Ho Chi Minh City were recently selected as three of the best cities in the world for walking tours by Guruwalk.

The list was compiled on booking and search data from 800 cities in 120 countries collected on Guruwalk’s website since April 2023.

The number of international visitors has increased strongly thanks to the effectiveness of favorable visa policies along with the tourism promotion stimulus program.

The agency anticipates that the growth momentum will be maintained in the coming months towards the set goal of welcoming 18 million foreign tourists by the end of the year.

Vietnamese, Chinese, Lao localities promote tourism cooperation

More than 150 representatives from domestic tourism businesses and firms from China’s Yunnan province and Laos’ Vientiane city have shared experience and proposed measures to boost cooperation at a conference held in Sa Pa resort town, the northern province of Lao Cai.

The April 27 tourism promotion conference aimed to connect businesses and discuss measures to develop tours and tourism routes that link Lao Cai province in general, Sa Pa in particular, with localities in the southwestern region of China and other tourist cities in Southeast Asian countries.

At the conference, delegations from Vientiane city, Yunnan province’s Private Enterprise Association, Kunming city, Pingbian district, Hekou district and the Lao Cai Provincial Tourism Association shared experiences, discussed difficulties, obstacles, and policies to develop tourism. They also established cooperative relationships, and proposed solutions to promote tourism development in the localities.

They agreed that in the coming time, localities should pay due attention to supporting tourism businesses with mechanisms and policies so that tourism promotion will be more substantive and effective for a common and prosperous community, VNA reported.

At the conference. (Photo: VNA)

In 2023, nearly 300,000 Chinese tourists entered Lao Cai via Lao Cai International Border Gate, accounting for 54% of the total number of international visitors to the province.

The number of Vietnamese tourists to Laos in 2023 rose 33%, making Vietnam the second largest foreign tourist source of Laos.

In the first quarter of 2024, about 800,000 Vietnamese tourists traveled to China via the Lao Cai border gate and about 120,000 Chinese people entered Vietnam via the gate.

Four-month FDI rises 4.5% to US$9.27 billion

Vietnam attracted nearly US$9.27 billion in foreign direct investment (FDI) as of April 20, representing an increase of 4.5% year on year, the General Statistics Office (GSO) reported.

As many as 966 new projects valued at US$7.11 billion were granted investment certificates, up 28.8% in project numbers and up 73.2% in capital.

Among economic sectors, manufacturing and processing took the lead with registered capital of approximately US$5 billion, followed by real estates, wholesale & retail, and scientific and technological activities, cited VOV.

Photo: VOV

As many as 50 countries and territories injected capital into the Vietnamese market during the reviewed period.

Singapore topped the list with US$2.59 billion, followed by Hong Kong (China) with US$898.6 million, Japan with US$814.1 million, China with US$740.2 million, Turkey with US$730.1 million, and Taiwan (China) with US$512.3 million.

About US$1.23 billion was added to 345 existing projects, down by 25.6% year on year, whilst US$929.6 million was earmarked for stake purchase and capital contribution, a 70.1% fall from a year ago.

The disbursed foreign investment rose by 7.4% in the first four months to hit US$6.28 billion, the highest figure recorded over the past five years, said the GSO.

Kim Sang-sik likely to be new Vietnam's head coach

South Korean major media has reported Kim Sang-sik will take over as head coach of the Vietnam national football team, with the contract being announced soon.

The former coach of Korean multi-time champion Jeonbuk Hyundai Motors will succeed French Philippe Troussier and his fellow Park Hang-seo.

Park ended his five-year reign last year, building the national best ever football period. Troussier took over the baton weeks later but he failed to meet the national hope before being dismissed last month.

"A source close to the football community in Southeast Asia told KBS that Kim recently signed a contract with the Vietnam Football Federation (VFF). The 47-year-old reportedly wrapped up negotiations with the Vietnamese side after returning to South Korea last week from a stay in Europe," KBS News reported exclusively.

"Kim, who left the head coach job with Jeonbuk last spring, is set to depart for Vietnam later this week under a two-year contract running through March 2026," it added.

The move comes nearly one year after Kim resigned from the Jeonbuk manager position in the early days of the 2023 K League 1 during which he faced criticism for a poor start to the campaign.

"The VFF's selection of Kim was reportedly due to Park's solid leadership that helped Vietnam become runners-up at the 2018 AFC U23 Championships and advance to the third regional qualifying stage for the 2022 FIFA World Cup for the first time," KBS News continued.

The news was also confirmed by other Korean media outlets.

Kim joined Jeonbuk in 2009 during his playing days. Afterwards, he became a leader, serving as a playing coach in 2013 before taking over as Jeonbuk's head coach in 2021. In total, he spent 15 years with one team as a player and coach, cited VNS.

Kim Sang-sik seen when he was coach of South Korean former champion Jeonbuk Hyundai Motors. Photo: SB

He has achieved many titles in his coaching career such as the K-League 1 in his first year of debut as head coach, the 2022 Korea Football Association FA Cup (now Korea Cup), and advancing to the semi-finals of the AFC Champions League.

Personally, he was voted manager of the month twice in 2022; K League 1 manager of the year in 2021; Korean FA Coach of the Year in 2021 and Korean FA Cup Best Manager in 2022.

Kim did not coach any team following his resignation. The Vietnamese national team will be the second team he has helmed.

VFF did not confirm the news but said an official announcement will be released as soon as possible.

“VFF is still in the negotiation process. If it is done we will announce it on May 3,” General Secretary Dương Nghiệp Khôi said.

Previously, the national governing body set a date for final decision near the end of May.

Vietnam will have two matches with Iraq and the Philippines at the second 2026 World Cup qualification.

Although their chance for the next round was almost washed away, the Golden Star Warriors still want to have good results to improve their FIFA ranking of No 115.

Vietnam News Today (Apr. 27): Da Nang to Have First Smart Airport Terminal in Vietnam Vietnam News Today (Apr. 27): HCM City aims for AI technology development with US; Da Nang to have first smart airport terminal in Vietnam; Michelin-starred ...

Vietnam News Today (Apr. 28): Vietnam Attends 20th ASEAN-Russia Senior Officials’ Meeting Vietnam News Today (Apr. 28): Vietnam attends 20th ASEAN-Russia Senior Officials’ Meeting; Vietnam expected to become e-commerce powerhouse in Southeast Asia; Early summer heat grips ...

Vietnam News Today (Apr. 29): Vietnam, Germany Bolster Legal And Judicial Cooperation Vietnam News Today (Apr. 29): Vietnam, Germany bolster legal and judicial cooperation; Khanh Hoa province seeks tourism partners in Thailand; Vietnam Festival in Osaka helps ...