In recent years, Vietnam has faced an import surplus, ringing alarm bells for the national economy. Only when Vietnam increases exports and reduces imports to balance trade in each market and region, can the country deal with the situation. The increase in export value over the first two months of this year is a typical example.

The export surplus in January and February 2006 showed the fact that the domestic market has been actively involved in regulating import and export activities. The importing of commodities, and the quantity and prices no longer relies on importers, but on the domestic market.

To reduce import surplus, in the long term, Vietnam needs flexible import strategies, in which imports help develop exports, as well as increase the State management of monopoly prevention in import activities. 

Another good sign for the national economy is that in the past two months, Vietnam attracted US$1.42 billion worth of foreign investment, a year-on-year increase of 25 percent. Noteworthy was that a US company invested US$700 million in a project in Ho Chi Minh City to produce chips for export. If the pace is maintained till the end of this year, foreign investment capital will reach US$7.7 billion, surpassing the set target of more than US$6 billion.

2006 marks the first year of the 2006-10 socio-economic development plan, with the goal of raising the national economy to a higher level. Accordingly, mobilised capital for development investment must be 1.5 times higher than the previous five-year period. Positive signs in the first two months have raised hopes for investment capital flows from now till the year’s end. The results correctly reflect Vietnam’s thorough preparations in 2005, which should be perfected in 2006, given the fact that more and more foreign investors consider the country as a safe and efficient investment destination.

The stock market also showed robust growth in recent times. By late 2005, the total value of shares listed on the bourse generated nearly VND9,400 billion, making up 1.2 percent of the country’s GDP. The State Securities Commission has set a target for the fledging market to make up between 2-3 percent of the total national GDP. But on February 22, the total value of listed shares reached VND21,200 billion, an increase of 2.26-fold against last year, and representing 2.7 percent of the national GDP.

The spectacular growth of the market was attributed to the listing of several special commodities on the bourse. They were shares of holding companies, which have yielded good performances in the past years, such as Vietnam Milk Joint Stock Company (Vinamilk). The total value of Vinamilk shares equalled the total value of shares already listed.