Economic highlights in first two months of 2021

The macroeconomy continued to be stable while inflation was controlled and consumption demand increased. The monetary market was relatively stable and interest rates continued on a downward trend.

Industrial and agricultural production improved

The index of industrial production (IIP) in the first two months of 2021 rose 7.4% compared to the same period last year.

The raising of cattle, poultry and aquatic products all went well with the recovery of pig herds, while African swine fever has also been curbed.

Expansion in domestic and export markets and trade surplus

In the first two months of 2021, total retail sales of goods and services reached VND904.5 trillion, up 5.49% over the same period last year. Total export and import turnover was estimated at US$95.81 billion, up 24.5% over the same period last year. The country also posted a trade surplus of US$1.29 billion during the two-month period.

Significant improvements in exports across major export goods and markets

The export revenue of heavy industrial goods and minerals was estimated at US$26.6 billion, up 27.8% over the same period last year, while the export of light industry and handicraft products was reported at US$17.3 billion, up 18.6%.

Meanwhile, the group of agricultural and forestry products posted US$3.6 in export revenue, up 22.2%.

The US was the largest export market of Vietnam with export revenue up 38.2% over the same period last year. China came in second with export revenue up 54.3% while the EU came in third with export revenue up 22.7%.

The number of newly established enterprises less than that of withdrawing from the market

Vietnam witnessed 18,100 newly established enterprises in the first two months of this year with total registered capital of VND334.8 trillion and total registered labour of 172,800 workers, up 4% in the number of enterprises, up 52.2% in registered capital and up 9.7% in the number of workers over the same period last year.

The average registered capital of a newly established enterprises reached VND18.5 billion, up 46.4% over the same period last year.

In addition, more than 11,000 enterprises resumed their operations, down 7.6% over the same period in 2020, raising the total number of newly established enterprises and enterprises resuming operations to 29,200.

However, 33,600 enterprises temporarily suspended their operations, are waiting for dissolution or completed dissolution procedures, up 18.6% over the same period last year.

As in 2020, the total number of enterprises participating in the market was less than the number withdrawing from the market in the first two months of the year due to the COVID-19 pandemic. Nearly 92% of enterprises who suspended their operations have capital size below VND10 billion and only 0.6% of enterprises with capital size over VND100 billion suspended their operations.

Increases in FDI disbursement despite decreases in FDI pledges

The disbursement of foreign direct investment (FDI) was estimated at US$2.5 billion in the first two months of this year, up 2% over the same period last year, demonstrating prospects of the domestic investment market and high adaptability of FDI enterprises.

During the two months, Vietnam attracted US$5.46 billion worth of FDI, including newly registered capital, supplemented capital and capital contribution and share purchase by foreign investors, down 15.6% over the same period in 2020.

Low inflation

The consumer price index (CPI) in February 2021 increased by 1.52% compared to the previous month (the highest increase of the index in February in the past five years) and increased by 1.58% compared to December 2020 and 0.70% over the same period last year. Average CPI in the first two months of 2021 decreased by 0.14% from the same period last year while core inflation increased by 0.64%.

Advance in Global Soft Power Index

Vietnam was the only country in ASEAN to be upgraded in the Global Soft Power Index 2021 as announced by Brand Finance at the Global Soft Power Summit 2021 held on February 25, 2021.

Vietnam moved up three places from 50th to 47th in the Global Soft Power Index 2021, which ranks the world’s top 60 soft power nations. Vietnam is considered a bright spot thanks to the remarkable advancement in the national brand as well as the socio-economic results achieved in the past year.

According to Brand Finance, Vietnam has brought all aspects of soft power into play relatively well, especially the integration of Vietnam's national brand and its leading product brands.

Vietnam's national reputation in the past year has also increased mainly due to the Government's quick policy responses, particularly its close direction in supporting businesses to build and promote their brands both locally and abroad, as well as the dynamism and efforts of Vietnamese businesses.