1. Vietnam joined the World Trade Organisation (WTO)

On November 7, 2006, the WTO officially admitted Vietnam as its 150th member. The event marked the full integration of the country into the global economy. Vietnamese goods, services and investment capital can find an easy way to have access to international markets while the domestic market opens to 149 WTO member economies. Competition among enterprises and WTO member economies will be fiercer.

 

2. Vietnam successfully organised APEC Vietnam 2006 with the participation of 21 leaders of APEC member economies. The 14^th APEC Economic Leaders’ Meeting was held in Hanoi on November 18-19, under the theme “Towards a Dynamic Community for Sustainable Development and Prosperity”. One of biggest commitments of leaders of APEC member economies is Hanoi Declaration, which concentrated on four main issues: multilateral trade liberalization, bilateral trade liberlisation, promoting the National Action Plan and improving cooperation among APEC member economies. Vietnamese State President Nguyen Minh Triet, who is also president of APEC Vietnam 2006, said the successful organisation of the summit continues to promote image of Vietnam’s hospitality, dynamism, and development.

3. GDP growth rate increased by 8.2 percent and a growth rate of more than 8 percent has been maintained for the past two years. This is an important progress, breaking the opinion that growth rate in the initial years of the five-year socio-economic development plan was often lower than the set target. It also demonstrated that the role of the State’s macro-regulation and management is getting better and meeting requirements in the international integration process.

4. Foreign directed investment (FDI) attraction reached more than US$10 billion. This is the highest figure since the Foreign Investment Encouragement Law was issued in 1987. The achievement demonstrated that Vietnam is a stable, safe and friendly investment destination, and the investment environment has been greatly improved. Particularly, when the country successfully organised APEC Economic Leaders’ Meeting, a number of projects with investment capital from several million US dollars to US$1 billion per project, were introduced into the country.

5. International donors pledged nearly US$4.45 billion in official development assistance (ODA) for Vietnam at the Consultative Group Meeting late 2006.This is the largest figure so far, which demonstrated donors’ growing confidence in the country’s socio-economic development, poverty reduction, anti-corruption and wastefulness prevention, and efficiency of ODA utilisation and management.

6. Total export value reached nearly US$40 billion, up 22 percent compared to the set target of 16 percent. Products with export value of more than US$1 billion each rose, such as seafood (US$3.1 billion), garments (US$5.2 billion), footwear (US$3.2 billion), wood products (nearly US$2.2 billion), crude oil (US$7.7 billion), and rice, coffee, and rubber. Export value contributed half of annual GDP. The more Vietnamese products are available in the international market, the more competitive they are. The more products are manufactured, the more jobs are generated.

7. The annual consumption growth is estimated to increase by 6.6-6.8 percent. Securities market made a breakthrough in capital quality. Year 2006 saw fluctuation of prices and markets of input materials, as well as gold, foreign currencies and food. The Government has timely and effectively regulated production according to market regulations to ensure enough supply and demand in order to stabilize prices. Import tax rates and gasoline prices were adjusted according to fluctuation on the global market and petroleum imports were still subsided. The Gold and US dollar fever on the private market was quickly brought down. Total capital of the securities market netted around US$10 billion, equal to 15 percent of GDP (while the set target was 6 percent of GDP). A target to raise the total capital of the securities market to around 20-30 percent of GDP by 2010 will be within reach.

8. The national key projects are put into operation. Bai Chay Bridge in north-eastern Quang Ninh province was put into use, clearing Highway 18 - a lifeline transport axis of the northen key economic zone of Hanoi-Hai Phong-Quang Ninh and opening new opportunities for socio-economic development of Quang Ninh, as well as the north-eastern region. Thi Nai Bridge, Vietnam’s longest sea bridge, linked Quy Nhon City and the Nhon Hoi Economic Zone in Phuong Mai Peninsula. The opening of the 2.5km-long bridge provided south-central Binh Dinh province with opportunity to develop tourism and attract domestic and foreign investors. Construction of Vung Ang 1 Thermoelectricity Plant was started late 2006 in Ky Loi, Ky Anh District, Central Ha Tinh province. The 1,200MW capacity plant was built at the cost of US$1.242 billion and will supply 7.2 billion kWh to the national grid by 2010.

9. Havoc wreaked by natural disasters and agricultural diseases such as brown-backed hopper and grassy stunned viruses, as well as experience in storm prevention and control. The spread of diseases badly affected rice production in the Mekong Delta region. The Prime Minister has decided to stop exporting rice to ensure the national food security and subsidise farmers’ losses caused by diseases. Meanwhile, storms constantly wreaked havoc on the country, causing great human losses and property destruction. Natural disasters had an influence on storm prevention thinking, weather forecast and transport development plan.

10. Anti-corruption work has achieved significant results. The Government established an Anti-corruption Board for early detection and handling of corruption and wastefulness cases. Prominent corruption and bride cases were detected, such as the PMU 18 embezzlement scandal, faulty electricity meter scam in Ho Chi Minh City, and violations of land use and management in Do Son twon, Hai Phong City. Its consequences reduced citizens’ trust in the Party and State.