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Overview of the socio-economic situation in 2010
Overview of the socio-economic situation in 2011.
Analysis Interest Rate Tool
Task of 2012
A. Overview of the socio-economic situation in 2010
2010 was the last year of the 5-year plan (2006-2010) and the 10-year Socio-Economic Development Strategy (2001-2010). It was also the year when many important events of the country were organized. It is necessary for the country to review the socio-economic situation in 2010 to further its development. Overview of the socio-economic situation in 2010
The 2010 Socio-Economic Development Plan started at a time when the country was facing numerous difficulties and challenges as a result of the global financial crisis and economic recession, natural disasters and epidemics. However, with synergies of the political system, branches, levels, people and business community, most of the norms and criteria adopted by the National Assembly were achieved. 1. Recession was stalled, the economy recovered and recorded relatively high growth rate Despite slow recovery of the world economy after the crisis, Vietnam’s economy got out of the recession early and achieved a relatively high growth rate. The country’s GDP in 2010 increased to 6.78%, higher than the rate approved by the National Assembly. The agricultural sector expanded by 2.6%, industry and construction by 7.6%, and service by 7.5%. Given these achievements, per capita GDP in the 2006-2010 period was 7%. Per capita income in 2010 was 1,160 USD. The development investment capital in 2010 was 12.9% higher than that of 2009, accounting for 41% of GDP. Due to high disbursement rate of State budget was due to strict management of the state budget, it is believed that the disbursement plan will be fulfilled. Thanks to this, many infrastructure projects will be completed, new production establishments are created; the economic restructure will be accelerated and the economy will recover. In 2010, about 85,000 businesses with a total registered capital of 500,000 billion VND were set up, an increase of 150% as compared with that of 2009. This is an important contribution to production and business as it helps generate more jobs. 2. Macro economy was improved which basically ensured major demands of the economy Difficulties in 2010 which included high trade deficit, the highest ever budget over expenditure in years and side effects of the economic stimulus package in 2009 posed great challenges to macro economy stabilization. Nevertheless, due to flexible and appropriate measures taken, the situation was gradually improved. The total state budget revenue in 2010 expected to be 12.7% higher than estimated and 17.6% higher than in 2009 thus ensuring sufficient fund for expenditure requirements, and helping reduce the state budget overspending to below 6%, lower than the target of 6.2%. By the end of 2010, Government outstanding was equal to 44.5% of GDP; national external outstanding was 42.2% of GDP and public debt outstanding was 56.7% of GDP which was within the safe limit. The monetary policies contributed to promote growth and inflation control. Total means of payment expanded to 20% and credit outstanding increased by 25%. Exchange rates were regulated by the market. Interest rates were levied on the basis of consensus. Auditing was strengthened to ensure safe operation of credit entities. Bad debt was kept under 3%. The total export turnover in 2010 is estimated to increase by 19.1%, three times higher than planned, contributing to control import and international payment deficit. 3. Social security and welfare were strengthened despites difficult economic conditions Though the State budget was strictly controlled, the cultural and social areas still received much care and investment to stabilize and improve the people’s life. Per capita income reached 1,365,000 dong per month, an increase of 8.9% (price increase...
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