10 Political, Social and Economic Events in 2007

According to the results announced by the President of the UN General Assembly at 22h35 (Hanoi time) of October 15, 2007, Vietnam will be a non-permanent member of the UN Security Council in 2008-2009 with 183 votes in favour out of 190 votes (96 per cent) while the number of votes required is 127. Earlier, in his statement made in the general debate of the UN General Assembly, Prime Minister Nguyen Tan Dung expressed the message that “Vietnam is an active, cooperative and responsible member of the international community” Observers believed that with the image of historic past and dynamic economic present, Vietnam will play an important role as non-permanent member of the UN Security Council.

 

A year after WTO accession, the administrative reform in Vietnam has recorded remarkable progresses, contributing to the formation of an open and dynamic government. Most significantly is the downsizing of the State apparatus from 38 ministries in 2002-2006 to 22 at present, with distinct function and responsibility and some ministries with multi industries and sectors have started separating the management role from business activities. Alongside with the streamlining, the administrative reform has made progresses especially in key areas relating to the livelihood of the people and business activities such as registrations of poor households, residence, transport means, business activities, business bankruptcy, import-export activities, taxation and identification cards. The Prime Minister has asked all State authorities to make public their procedures, formalities and time of their proceedings in favour of the people. With those efforts, Vietnam has been cognized by international organizations as making big progress in improving business and investment environment.

 

 In 2007, the total export of Vietnam reached US$48 billion, 20.5 per cent more than 2006 and 3.1 per cent over the target set by the government (US$46.76 billion). In particular, 10 export items have exceeded the target of US$1 billion. In addition to 9 traditional items, a new item is mechanics. Three items have exceeded the mark of US$3 billion and two items exceeded US$2 billion. Specifically, they are: aquatic products US$3.75 billion, rice US$1,48 billion, rubber US$1.41 billion, crude oil US$8.4 billion, textile and garment US$7.7 billion, footwear US$3.9, electronics and computer parts US$2.2 billion, wooden products US$2.34 billion, in particular, mechanics increased from around US$1 billion last year to US$2.2 billion this year.

 

By the end of November 2007, Ministry of Planning and Investment announced that Vietnam has attracted US$15.03 billion in registered investment capital or nearly 40 per cent more than the same period last year. It is regarded as most impressive development of the first year of Vietnam’s WTO membership. 52 localities in Vietnam have attracted foreign investment projects.

 

 Trade deficit continues to be a headache for State managers. In 2007 it increased to US$10 billion, or 70 per cent more than that of 2006. According the Ministry of Industry and Trade, it is the highest trade deficit in recent years. Items of big import are automobile (increased 132 per cent), auto parts (64 per cent), steel (56.4 per cent), steel ingots (37 per cent), machines and parts (54 per cent). The root cause of the trade deficit is the higher growth of import over the export. While the import demand increases for the production and investment, the export value of main items, especially raw materials, decrease and of manufactured commodities remain insignificant. In fact, the competitiveness of the economy is still low.

 

On September 26, a span of 90 metres of Can Tho bridge collapsed burying nearly 200 workers working under it. It was the biggest disaster in the history of the construction sector in Vietnam. Due to its critical nature, on October 6, Prime Minister Nguyen Tan Dung signed Decision 1340/QD-TTg establishing a State Investigation Committee headed by Minister of Construction Nguyen Hong Quan and 10 members including vice-ministers of public security, construction, transport, planning and investment, labour, science and technology, chairman of Vietnam construction federation, Vietnam bridge and road association, National assembly science-technology committee and a Japanese representative. The committee should recommend on solutions to the incident and ensure the safety of the construction.

 

Three successive floods occurred in September, October and November, 2007 from Ninh Binh down to Binh Thuan province have caused heavy losses to the population in those provinces. The government has rushed to their rescue with foods and commodities and asked related ministries and authorities to prevent hunger and diseases and restore normal life to the people and education to the children. The government also asked Ministry of Construction to study a programme of co-existence with the floods in Central Vietnam, and Ministry of Natural Resources and Environment together with scientists and international organizations to develop a national programme dealing with climate change.

 

Economists and State managers considered 2007 as the year of highest increase in prices (10.9 per cent) affecting adversely to socio-economic development but not yet reversing the economy. It has a strong impact on salaried and poor people. However, foreign experts believed that the price index does not harm seriously Vietnamese economy. WB, IMF and ADB representatives considered that Vietnamese economy continue a stable growth rate of 8.5 per cent this year.

 

Beginning December 15, by Resolution 32 of the government, helmet is compulsory for motorcycle riders. It is a new era of traffic in Vietnam. In reality, when Resolution 32 was first issued, 90-95 per cent of motorcycle riders on highways have already worn helmets. Now, almost 100 per cent of them worn helmets in urban areas. Head wounds have reduced by 40-50 per cent. Since September, traffic accidents started reducing and this year the total is reduced by 3.5 per cent compared to last year.

 

According to the report of the Government Inspection Committee, the number of corruption cases brought to trials in 2007 increases by 22.8 per cent. The group complaints increased compared to last year with over 49,000 cases settled. Settlements are high in Thanh Hoa, Kien Giang, Thai Binh and Vinh Phuc. While settlements are low in Thai Nguyen, Ca Mau, Son La, Quang Ngai and Hoa Binh. Complaints are high on land especially on land compensation and disputes. The Prime Minister has asked the Inspection Committee to send many delegations for dialogue with the people.

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