The year 2013 elapsed with many important events occurring within overall changes of the global socio-economic situation, but still carried characteristic and special developments of Vietnam. Vietnam Business Forum would like to present remarkable socio-economic events in 2013 as follows:
1. General Vo Nguyen Giap passes away: On October 4, General Vo Nguyen Giap died at the age of 103. Tens of thousands of Vietnamese people stood together in endless mourning and held hand in hand during the nearly 10-day memorial ceremony for the national hero. This showed the strong nationalism expressed by the respect to the General of the People.
2. The National Assembly passes the amended Constitution: The draft Constitution was voted for by 97 percent of National Assembly members on November 28 during the 6th plenary meeting of the 13th National Assembly. One of attention-catching contents of the amended Constitution is the chapter on human rights and civil rights, right after the chapter on political regime. Accordingly, fundamental rights such as “freedom of speech, freedom of the press, access to information, assembly, association and demonstration” continue to be affirmed and regulated. “The exercise of these rights is governed by the law.” In particular, with the content “The State shall encourage and facilitate entrepreneurs, enterprises, organisations and individuals to invest in business and production to contribute to the country’s development,” enterprises and entrepreneurs are named as playing a fundamental role in Vietnam’s economic development. “The Constitution represents the spirit of innovation. The Constitution reflects the Party’s will and the people’s aspirations,” said National Assembly Chairman Nguyen Sinh Hung.
3. Trans-Pacific Partnership Agreement negotiations
Official entering into Trans-Pacific Partnership (TPP) Agreement negotiations, Vietnam has more content frames to be “negotiated” than other countries.
TPP sets standards for free trade and investment in the future. If Vietnam is successful in TPP negotiations, it will definitely ease difficulties when it starts other FTA negotiations like FTAs with the European Union (EU) and the Customs Union of Russia, Belarus and Kazakhstan.
If TPP Agreement negotiations are concluded and the Agreement is signed, over 90 percent of tariff lines on imports and exports amongst 12 TPP-participating countries, namely Australia, Brunei, Chile, Canada, the United States, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam, will be brought to zero.
4. Consumer price index (CPI) rose 6.04 percent in 2013, the lowest in 10 years, economic difficulties continued. In 2013, the Government was permitted to raise the overspending limit from 4.8 to 5.3 percent by the lawmaking National Assembly, but the economy still faced numerous difficulties. State budget revenue fulfilled about 85 percent of the full-year estimate in the first 11 months. Hardships were seen in many economic fields. Key agricultural exports like rice and coffee declined; non-performing loans of the seafood industry were high; inventories piled up; the business community, especially SMEs, continued to face difficulties, and many had to suspend operations or file for bankruptcy.
CPI in 2013 somewhat proved worsening livelihoods of people and tightened spending.
5. The Government launched a credit package of VND30 trillion (US$1.4 billion) to support the real estate market by providing soft loans to low-income people, civil servants, and armed forces personnel to buy or rent houses. However, till the end of last year, only approximately 2 percent of the total fund of VND30 trillion was disbursed.
6. State Bank of Vietnam (SBV) sells gold to control the market: Since the first gold auction was launched on March 28 to the end of 2013, the SBV hosted over 70 gold auctions. The central bank offered to sell a total of 1,822,000 taels of gold, equivalent to 68.3 tonnes, and sold 1,711,100 taels, equivalent to 64.2 tonnes. A tonne is equivalent to 26,660 taels.
7. Rainstorms in central region set a record: In 2013, the central region was considered to suffer the most hurricanes and tropical low pressure systems in the past 50 years. As many as 17 rainstorms and tropical low pressures were recorded in the year. Repeatedly hit by super-typhoons like Wutip, Nari and Haiyan with the worst-ever destructive forces, many central provinces sank in historical floods. The Central Steering Committee for Flood and Storm Control said floods in 2013 left 264 dead or missing, injured 800, ruined 12,000 houses, and submerged over 300,000 hectares of rice and vegetables. Losses were estimated at VND25 trillion.
8. Vietnam National Shipping Lines (Vinalines) executive trial and economic group model in crisis: On December 12, 2013, accused of, with nine others, damaging VND366 billion and embezzling VND10 billion while in office, former Vinalines’ Chairman Duong Chi Dung was brought to the People’s Court of Hanoi and sentenced to death. The Supreme Court indicated Duong Chi Dung intentionally violated and caused a loss of more than VND300 billion. Last year also saw a series of troubled State-owned economic groups. Apart from Vinalines, many powerful economic groups were on the verge of collapse like the once-famous Vietnam Shipbuilding Industry Corporation (Vinashin). In October 2013, Vinashin – the pioneer of the shipbuilding industry – ended the seven-year pilot of economic group model by the Ministry of Transport. According to the Government Inspectorate of Vietnam, as of the end of 2009, Vinashin lost nearly VND5,000 billion of State capital.
9. Replicated medical tests and bad year for health sector: On October 25, 2013, the investigating agency of Hanoi Police announced the conclusion of a medical test-replicating scam involving 10 internees in Hoai Duc Hospital, Hanoi. This case caught the public attention because of the unethical nature of doctors.
This was just one scandal of the health sector last year. After a series of mother and newborn deaths caused by incorrect vaccinations, the public was shocked when a Cat Tuong beauty clinic doctor threw a patient’s body into the river to conceal evidence. The health sector experienced a year full of sad events.
10. Central Party Committee issues the Resolution on radical and comprehensive reform of education and training:
On November 4, Party General Secretary Nguyen Phu Trong signed the Resolutions of the 8th Meeting of the 11th Central Party Committee to ratify the “Scheme for radical and comprehensive education and training reform.” One of the intention-grabbing contents is that universities and colleges are empowered to make their own entrance exams.
Educational instability in the past decades concerned the society, caused educational backwardness, produced low-quality human resources, and weakened motivation for socio- economic development. The comprehensive reform is expected to make new changes in the coming years.
Đăng ký: VietNam News
