I. Economic Growth
1. Regarding production of agriculture, forestry and fishery
1.1. Agricultural production
a. Crop cultivation
The outcomes of the annual winter-spring crop production are quite favorable. The total cultivated area is estimated to be 52,066 hectares, which is a decrease of 0.76% compared to the previous winter-spring crop season. There has been an increase in the yields of some major crops compared to the same period: Rice yield reached 61.92 quintals/hectare, marking a rise of 0.68%; corn yield reached 49.00 tons/hectare, showing an increase of 2.66%; Sweet potato yield reached 122.67 quintals/hectare, with a slight increase; Soybean yield is estimated at 20.53 quintals/hectare, indicating an increase of 9.49%.
b. Animal husbandry
The overall output of live meat amounted to 10,949.2 tons, showing a 3.27% increase (with pork production reaching 7,332 tons, up by 5.80%; poultry meat reaching 3,080 tons, down by 1.12%); poultry egg production reached 62.1 million units, marking an 8.66% increase; fresh cow's milk production reached 5,150 tons, up by 4.04%. Estimated livestock and poultry herds: The buffalo herd totaled 15.8 thousand heads, representing a 4.24% decrease compared to the same period last year; the cattle herd consisted of 88.3 thousand cows, down by 4.85%; pig herds amounted to 482.1 thousand heads, showing a 1.26% increase; poultry herds reached 11.7 million, down by 1.93%.
During the first five months of the year, the total output of live-weight meat reached 58,618.7 tons, indicating a 2.53% increase over the same period; poultry egg production reached 337.1 million, showing a 7.51% increase; fresh cow milk reached 26.1 thousand tons, up by 2.67%.
1.2. Forestry production
In May 2024, forestry production activities will persist, encompassing afforestation, scattered tree planting, forest protection, and care. It is projected that the entire province will undertake the planting of 65 hectares of concentrated forest and 89 thousand scattered forestry trees; Timber output is estimated at 3,700 cubic meters; Firewood production is estimated at 6,063 steres.
Regarding the cumulative figures for the first five months of the year: The area of newly concentrated planted forests is estimated at 394.9 hectares, reflecting a decrease of 4.7% compared to the same period; The number of scattered trees is estimated at 467.8 thousand trees, indicating an increase of 3.59%; Timber output amounts to 19,105 cubic meters, showing a 3.43% increase; Firewood output reached 18,940 steres, marking a 1.62% increase.
Efforts in forest fire prevention and warning continue to be executed effectively. As of mid-May 2024, no forest fires had occurred in the province.
1.3. Fishery production
In May 2024, seafood production in the province remains stable. The total seafood output is estimated at 2,202.9 tons, showing a 3.26% increase compared to the same period. Among these figures, domestic exploitation output is estimated at 116.7 tons, marking a 2.89% increase, while aquaculture output is estimated at 2,086.2 tons, reflecting a 3.28% increase. Additionally, the output of breeds produced in the month is estimated at 340 million, up by 2.41% over the same period.
For the initial five months of the year, the total seafood production is estimated to reach 10,093 tons, indicating a 3.16% increase compared to the first five months of 2023. The domestic exploitation output is estimated at 693.9 tons, showing a slight increase, while aquaculture output is estimated to reach 9,399.2 tons, up by 3.39%. Moreover, seed production output is estimated to reach 1,690 million, reflecting a 1.99% increase.
2. Industrial production
In May 2024, industrial production experienced growth compared to the previous month and the same period: the mining industry increased by 7.44% and 8.65%; the processing and manufacturing industry increased by 2.16% and 11.05%; production and distribution of electricity, gas, hot water, steam, and air conditioning increased by 4.89% and 12.04%; activities in the water supply industry, waste management and treatment, and wastewater increased by 13.83% and 10.55%.
Throughout the month, major partners such as Google, Dell, Apple, and Samsung continued to place orders, contributing to the growth of the electronic components manufacturing industry by 2.90% compared to the previous month and 19.70% over the same period. Additionally, the manufacturing industry of other non-metallic mineral products increased by 2.24% over the previous month and 3.78% over the same period, benefiting from improvements in the construction materials market and construction demand. Increased construction and repair activities, along with successful investment capital disbursement, yielded positive results.
However, the automobile and motorbike manufacturing industry in the province encountered challenges. Despite various promotional programs implemented by businesses, market demand remained low. Consumers adopted a wait-and-see approach, expecting potential policy changes such as reduced registration taxes for domestically produced and assembled cars. In May 2024, the automobile manufacturing sector increased by 3.55% over the previous month but decreased by 17.50% over the same period; motorcycle production decreased by 0.89% over the previous month and 1.58% over the same period.
Overall, for the first 5 months of 2024, the Industrial Production Index (IIP) of Vinh Phuc province is estimated to increase by 9.55% compared to the same period last year, marking a significant improvement from the previous year's decline of 2.37% over the same period.
Regarding product manufacturing: In May 2024, apart from sports shoes, sandals, cars, and motorcycles, which experienced decreased output compared to the same period last year, other main products witnessed increased production. Notably, animal feed saw the largest increase with a growth of 27.99%.
Similarly, for the first 5 months of the year, the production output of key industrial products in the province, such as animal feed, tiles, and electronic components, increased over the same period. Conversely, the output of sports shoes, various types of automobiles, and motorcycles decreased, with sports shoes experiencing the sharpest decline at 19.21%.
Employment index: In May 2024, the labor utilization index of industrial enterprises in the province increased by 2.57% over the previous month and by 4.15% over the same period. This increase varied among different types of businesses: the labor utilization index of state-owned enterprises increased by 0.72%, while non-state-owned enterprises decreased by 4.34%, and foreign-invested enterprises increased by 5.45% over the same period.
Consumption and inventory index of processing and manufacturing industry: In May 2024, the consumption index is estimated to decrease by 7.16% compared to the previous month and by 1.03% over the same period. Conversely, the inventory index increased by 3.98% compared to the previous month but decreased by 11.14% over the same period.
3. Investment and business development activities
3.1. Investment capital from the state budget
In May 2024, the implementation of investment capital from locally managed State budget funds continued to show significant improvements, contributing to the recovery and development of various sectors within the province's economy. The total investment capital from the State budget managed by local authorities increased considerably, reaching an estimated 706.55 billion VND, marking a 10.54% increase compared to the previous month and a 23.81% increase over the same period. Within this, provincial-level State budget capital amounted to 277.25 billion VND, reflecting an 18.11% increase. However, district budget capital experienced a decrease of 23.80%, amounting to 188.20 billion VND, while commune-level budget capital surged by 171.05% over the same period, reaching 241.10 billion VND.
Cumulatively, in the first 5 months of the year, the total investment capital from the State budget managed by local authorities is estimated to have reached 2,685.38 billion VND, marking a 15.55% increase over the same period last year. This amount is equivalent to 34.53% of the initial plan for allocated capital at the beginning of the year.
3.2. FDI attraction
The investment attraction results in the initial months of the year have demonstrated notable improvements. As of May 15, 2024, the province granted investment registration certificates for a total of 41 FDI projects, comprising 22 new projects and 19 capital adjustment projects. These projects accumulated a total registered capital of 414 million USD, marking a significant increase of 57 million USD, equivalent to 47% growth compared to the same period last year. Traditional investment partners such as Japan, Korea, Taiwan, and China remain prominent contributors. Among the sectors, the processing and manufacturing industry continues to be a focal point for FDI, accounting for 38 projects. Specifically, the electronic, computer, and optical products manufacturing industry attracted 10 new projects with a total registered capital of 50.25 million USD, alongside 7 projects registering for capital adjustment, totaling 195.91 million USD. Additionally, as of May 15, 2024, the province has issued investment registration certificates for 16 DDI projects, accumulating a total registered capital of 2,380.53 billion VND, equivalent to 43.28% of the assigned plan.
3.3. Business registration status
As of May 15, 2024, according to data provided by the Department of Planning and Investment of Vinh Phuc province, there are a total of 558 newly registered enterprises across the entire province, with a combined registered capital amounting to 5,524 billion VND. This reflects a decrease of 8.22% in the number of newly established businesses but an increase of 10.95% in registered capital compared to the same period last year. These newly registered enterprises are anticipated to generate employment opportunities for approximately 5,171 individuals, representing a notable increase of 62.81% over the corresponding period. In terms of sectoral distribution, the establishment of enterprises is predominantly concentrated in key economic sectors: Wholesale, retail, and automotive repair, comprising the largest segment with 210 enterprises, boasting a total registered capital of 1,134 billion VND. Additionally, the processing and manufacturing industry witnessed the establishment of 91 enterprises, with a total registered capital of 1,159 billion VND. Furthermore, the construction sector saw the establishment of 79 enterprises, with a combined registered capital of 789 billion VND.
During the first five months of the year, there has been a resurgence in the number of businesses re-entering operation, totaling 200 enterprises, marking a significant increase of 34.23% compared to the same period. Conversely, the number of businesses temporarily suspending operations has risen to 649 enterprises, reflecting a notable increase of 38.38%. Additionally, the number of businesses that have completed dissolution procedures has reached 69, indicating a considerable surge of 91.67% over the same period.
4. Trade, services and prices
4.1. Total retail sales of consumer goods and services
In May 2024, the total revenue from retail sales of goods, accommodation, food and beverage services, travel and tourism services, and other consumer services is projected to reach 6,385.8 billion VND, representing a 2.55% increase compared to the previous month and an 8.87% increase compared to May 2023. Here's a detailed breakdown:
- Retail sales of goods are expected to reach 5,179.5 billion VND in May, marking a 2.61% increase compared to the previous month and an 8.10% increase compared to May 2023. Several industries have witnessed significant growth rates during this period: the garment sector increased by 33.51%; cultural and educational items surged by 33.94%; other fuels (excluding gasoline) rose by 27.59%; food sales increased by 26.42%; and sales of gems, precious metals, and related products soared by 68.50%.
- Revenue from accommodation, food, and travel services is estimated at 597.1 billion VND, reflecting a 1.92% increase over the previous month and a 9.41% increase over the same period last year. Within this category, revenue from accommodation services is projected to reach 59.8 billion VND, up by 18.7%; revenue from food services is estimated at 500.0 billion VND, showing a 6.12% increase; and revenue from travel services is expected to be 37.3 billion VND, reflecting a substantial 54.01% increase over the same period.
- Revenue from other consumer services is anticipated to reach 609.3 billion VND, showing a 2.65% increase compared to the previous month and a 15.27% increase over the same period.
In the first five months of the year, total retail sales of consumer goods and services are estimated at 31,072.6 billion VND, representing a 5.97% increase over the same period last year. This includes retail revenue from goods amounting to 25,267.2 billion VND, reflecting a 5.23% increase; revenue from accommodation, catering, and travel services reaching 2,848.2 billion VND, showing a 7.13% increase; and revenue from other service industries estimated at 2,957.1 billion VND, indicating an 11.46% increase.
4.2. Transport of passengers and goods
- Passenger transport:
Passenger transport revenue is expected to reach 123.12 billion VND in May, experiencing a decrease of 14.39% compared to the previous month. However, it marks a significant increase of 55.36% over the same period last year. This revenue is generated from transporting 3.79 million passengers, covering a total distance of 199.88 million passenger-kilometers. Transportation modes including buses, passenger cars, and taxis are operating steadily and showing a tendency to increase. However, their growth is not sufficient to offset the decline in revenue from the Tay Thien cable car line, which has been experiencing a sharp drop since January. This decrease is attributed to a reduction in the number of tourists visiting the Tay Thien scenic area.
- Freight transport:
Freight transport revenue is projected to reach 494.30 billion VND in May, showing an increase of 4.13% compared to the previous month. Moreover, it exhibits a significant surge of 19.39% over the same period last year. This revenue is generated from transporting 3.53 million tons of goods, covering a distance of more than 484.11 million ton-kilometers. The revenue from freight transport has been steadily increasing for three consecutive months compared to both the previous month and the same period last year. This positive trend contributes favorably to the development of local trade and service industries, effectively meeting the demands for goods circulation required for consumption and production.
4.3. Price Index
In May 2024, the Consumer Price Index (CPI) in the province rose by 0.19% compared to the previous month, marking a 2.78% increase over the same period last year. This upward trend is primarily attributed to escalating food prices and elevated electricity and water tariffs resulting from hot weather conditions. Specifically, the price index for the food group surged by 1.69%, driven by a notable 5.41% hike in pork prices and a substantial 14.91% increase in the prices of fresh, dried, and processed vegetables. Meanwhile, the housing, electricity, water, fuel, and construction materials group saw a modest 0.11% uptick, primarily fueled by a 0.83% rise in electricity rates and a 1.76% increase in domestic water prices.
On average, during the initial 5 months of 2024, the CPI escalated by 2.48% compared to the same period in 2023. This increase was notably influenced by certain factors: the food and catering services group witnessed a 4.08% surge, contributing to a 1.36 percentage point increase in the overall CPI; the drugs and medical equipment group saw a 6.24% rise, resulting in a 0.44 percentage point increase in the overall CPI; the education group observed a 5.04% increase, leading to a 0.33 percentage point increase in the CPI; and the household electricity group recorded an 8.86% uptick, contributing to a 0.29 percentage point increase in the overall CPI.
Regarding the Gold and US Dollar Price Index, in May 2024, the gold price index experienced a 2.80% increase compared to the previous month and surged by 34.74% over the same period last year. Conversely, the US dollar price index saw a 0.79% uptick over the previous month and rose by 9.20% over the same period last year. On average, during the initial 5 months of the year, the gold price index surged by 26.35%, while the US dollar price index increased by 5.77% compared to the same period.
5. Finance, banking, insurance
5.1. State budget revenue and expenditure situation
In the past three months, production and business activities in the area have shown signs of recovery, which have had a positive impact on the province's budget revenue. As of May 15, 2024, total budget revenue in the area amounted to 12,505.67 billion VND, representing a 5.60% increase over the same period last year and reaching 39.37% of the estimated amount assigned at the beginning of the year. The primary contributor to the increase in budget revenue in the area is housing and land revenues, totaling 1,168.0 billion VND, which is three times higher than the revenue recorded in the same period last year. Revenue from Value-Added Tax (VAT) also witnessed significant growth, reaching 1,826.88 billion VND, marking a substantial increase of 53.80%. The impact of total domestic revenue increased by 8.47%, amounting to 10,883.79 billion VND. However, revenue from import and export activities experienced a decline, reaching 1,795 billion VND, down 26.72% compared to the same period last year.
On the expenditure side, total state budget expenditure as of May 15, 2024, reached 10,769.98 billion VND, reflecting a modest increase of 0.58% over the same period. Development investment expenditure, including advances, amounted to 6,159.69 billion VND, indicating a decrease of 8.37%, while regular expenditure reached 4,559.79 billion VND, representing an increase of 15.07%. Overall, there has been strengthened management of budget expenditures, with close control over spending, adherence to expenditure estimates, a focus on thriftiness, and efforts to combat wastefulness.
5.2. Banking and credit activities
Interest rates for mobilization and lending in the area have remained stable and unchanged compared to the previous month. Lending rates typically range from 4% to 10.5% per year for various terms and purposes, while deposit rates in Vietnamese Dong (VND) range from 0.2% to 6% per year for different terms. Exchange rates and foreign exchange rates have continued to maintain an upward trend, influenced by the increasing value of the US Dollar (USD) globally, with rates remaining at a high level. In the interbank market, VND interest rates remain lower than USD rates. There has been significant demand for foreign currency at the beginning of the year to support the import of raw materials.
As of May 31, 2024, the total mobilized capital is estimated to reach VND 125,000 billion, showing a slight decrease of 0.97% compared to the end of 2023. Despite a downward trend in deposit interest rates, commercial banks have introduced various incentive and promotional programs to attract deposits, leading to an increase in deposits from the population (estimated at VND 86,210 billion), a rise of 2.75% compared to the end of 2023. This increase has offset the decline in deposits from economic organizations, which is attributed to foreign enterprises repatriating profits and settling transactions (estimated at VND 38,790 billion), down by 8.34% compared to the end of 2023.
The total outstanding loan balance as of May 31, 2024, has reached VND 130,500 billion, marking an increase of 1.82% compared to the end of 2023. This growth is primarily observed in short-term and highly liquid loans, with outstanding short-term loans reaching VND 95,000 billion, up by 2.32% and accounting for 72.80% of the total outstanding loans. Medium and long-term loans have reached VND 35,500 billion, up by 0.52% and accounting for 27.20% of total outstanding loans. Regarding borrowers, outstanding debt in the household, private, and individual sectors has reached VND 75,614 billion, constituting 57.94% of total outstanding debt and contributing to job creation and household economics improvement. Meanwhile, outstanding debt in the enterprise sector has reached VND 54,500 billion, accounting for 41.76% of total outstanding loans, marking an increase of 2.85% compared to the end of 2023. The non-performing loan ratio stands at VND 1,400 billion, representing 1.07% of total outstanding debt.
The outstanding balance of policy credit initiatives is projected to hit VND 4,550 billion by May 31, 2024, marking a 1.22% rise from the end of 2023, with over 109,000 clients availing themselves of loans. Specific loan allocations encompass: VND 1,020 billion for impoverished, near-poor, and poverty-alleviating households; VND 90 billion for educational loans; VND 1,030 billion for clean water and environmental sanitation endeavors; and VND 1,960 billion for job creation initiatives.
5.3. Insurance
It is anticipated that by May 31, 2024, the entire province will have 1,172,549 individuals enrolled in various insurance schemes. Among them, 24,118 individuals are enrolled in social insurance, constituting 41.1% of the labor force (Comprising: Compulsory social insurance: 230,034 individuals; Voluntary social insurance: 19,084 individuals). Additionally, there are 246,247 individuals enrolled in unemployment insurance, accounting for 40.6% of the labor force. The number of individuals enrolled in health insurance stands at 1,153,465, translating to a health insurance coverage rate of 92.5% of the population. The total revenue from all insurance types is projected to reach 2,766.7 billion VND, achieving 39.04% of the provincial plan and marking a 12.6% increase compared to the same period. Payments, particularly pensions and social insurance benefits, are efficiently disbursed to beneficiaries in a timely and secure manner. Throughout the month, social insurance payments were disbursed monthly to 38 individuals (accumulating to 220 individuals); one-time social insurance payments were made to 1,540 individuals (cumulative total of 5,744 individuals); sickness, maternity, and convalescence benefits were provided to 10,934 individuals (cumulative total of 44,640 individuals); and a payment list was prepared for 750 individuals receiving unemployment insurance (cumulative total of 3,205 individuals).
II. Social problems
1. Labor and job creation
In May 2024, the entire province generated employment opportunities for 2,325 individuals, bringing the cumulative total for the first five months of the year to 11,062 workers, equivalent to 65.07% of the planned target. Among these figures, 10,617 positions were filled domestically (comprising 2,134 roles in agriculture, forestry, and fisheries; 5,255 positions in the construction industry; and 3,228 roles in the service sector), while 445 workers were employed abroad. During the period from April 15, 2024, to May 14, 2024, the total number of employees who resigned, were retrenched, or lost their jobs amounted to 2,288 individuals. This figure includes 422 workers on leave and 1,866 individuals who voluntarily resigned or were dismissed.
2. Education and Training
2. Situation of security, order, traffic safety, fire and explosion prevention, natural disaster and environmental protection
- Social order and safety situation: Overall, security and order in the province remain stable, with authorities promptly addressing violations of social order and safety to prevent escalation. Throughout the month, there were 61 reported cases of violations, marking a decrease of 01 case compared to the previous month. These incidents resulted in 3 fatalities, 4 injuries, and property damage amounting to 21,874.77 million VND. Investigations cleared 42 cases, reaching a clearance rate of 68.85%, with 96 suspects arrested and assets worth 1,528.5 million VND recovered.
- Traffic safety situation: In response to the challenges posed by the unpredictable weather conditions during the rainy and stormy season, the Provincial Traffic Safety Committee, in collaboration with relevant agencies, has taken proactive steps to enhance traffic safety on both roads and waterways. This effort aims to safeguard lives and property, while mitigating the impact of floods. In May, the province experienced 30 road traffic accidents, resulting in 13 fatalities and 22 injuries. Compared to the previous month, this marks an increase of 4 cases and 5 fatalities, although there was a decrease of 1 injury.
- Fire and explosion situation: Throughout the reporting period, the entire province encountered 5 fires, resulting in a loss of 162 million VND and damaging an area of 400 square meters of forest.
- Abnormal situations of natural disasters and fires: In May 2024, the province experienced two periods of heavy rain and widespread thunderstorms, occurring on April 20, 2024, and the night of April 30, 2024, resulting in one injury. During these incidents, 12 houses collapsed and were washed away, while 364 houses sustained damage. Additionally, flooding affected 406.88 hectares of rice fields and 358.84 hectares of crops, leading to the loss of 7,642 poultry. The estimated damage amounts to approximately 151,407.42 million VND. Following the heavy rains and thunderstorms, provincial authorities promptly assessed the situation, evaluated the extent of the damage, and devised plans to address the consequences. Consequently, the production situation for farmers gradually returned to normalcy.
- Environmental protection work: From April 15 to May 14, a total of 174 environmental violations were identified in the province. Of these, authorities took action on 121 cases, imposing fines totaling 1,685.11 million VND. Remarkably, Vinh Phuc province did not encounter any significant environmental issues during this period.
Source: Report No. 288//BC-CTK, dated May 28, 2024, of the Provincial Statistics Department