|
| ASEAN leaders join hands for their group photograph in the opening ceremony of the 17th ASEAN Summit and related summits in Hanoi on October 28, 2010 - Photo: Viet Dung |
Saigon Times Group has selected the ten most outstanding economic events in Vietnam in 2010 as follows:
1. Vietnam has succeeded in its proposals and initiatives for regional and international forums when serving as chairman of the Association of Southeast Asian Nations (ASEAN). Among the country’s achievements are the first-ever participation of Russia and the United States in the East Asia Summit and the first ASEAN Defense Ministers’ Meeting Plus (ADMM+).
2. The higher-than-expected growth of 6.78% for GDP, 25.5% in export revenue and 14% in industrial production value are the bright sides of Vietnam’s economy in a year of economic uncertainties both domestically and abroad.
3. People, enterprises and the country’s overall economy are hit hard by the higher-than-target inflation rate of 11.75%, trade deficit of US$12.37 billion, fluctuating prices of gold and the depreciation of the Vietnam dong by over 9.68% against the U.S. dollar and the wide difference of the dong/dollar exchange rates between official and unofficial channels.
4. Vietnam Shipbuilding Industry Group (Vinashin) laden with a huge debt of VND86 trillion (over US$4.4 billion) is an example of loose supervision at State-owned business groups and has affected credit ratings of the nation, banks and enterprises. Some experts doubt the Government’s 2011-2013 restructuring plan devised to enable Vinashin pay the debt and run at a profit.
5. Deposit rates once soared to 17% per year as a result of the race among banks in attracting more money but cooled down after interference of the State Bank of Vietnam. However, the lending rate remains high, making life tougher for enterprises compared to 2009 when they enjoyed an interest rate subsidy of 4%.
6. Floods wreaked havoc on many provinces in central Vietnam. A significant reduction in forest coverage and inappropriate reservoir discharges at hydropower plants caused severe flooding and intensified the consequence of natural disasters, which have left some 750 people dead and missing and asset losses equivalent to around 1.5% of GDP in the past decade as estimated by the Ministry of Agriculture and Rural Development.
7. The chronic power shortage in both dry and rainy seasons made inroads into the manufacturing sector and affected people’s livelihood. This was attributable to delays in many power projects, consumption higher than forecast, short-term vision for power source development and electricity distribution monopoly.
8. The National Assembly’s rejection of the north-south express railway project is considered good to some extent in releasing pressure on the State budget and allocating funds better. But, the Prime Minister granted ‘in principle’ approval in August for Japan’s technical assistance to map out investment plans for the express railway sections of Hanoi-Vinh and HCMC-Nha Trang.
9. Vedan Co. had finally agreed to pay a combined compensation amount of nearly VND220 billion (over US$11.2 million) for farmers in Ba Ria-Vung Tau, Dong Nai and HCMC for its untreated water discharge after prolonged negotiations. This victory is a lesson for those enterprises that violate environmental regulations.
10. Numerous legal documents have been delayed in taking effect for certain periods or amended before they came into force due to unfeasible drafting and inefficient surveys of their impact. Examples include new rules to allow commercial banks to have one more year to raise their charter capital to VND3 trillion (around US$154 million) or companies to buy invoices for use until March 31 instead of early 2010.
