09:10 | 11/01/2016 Trade
(VEN) - The following events in the industry and trade sector were selected as the top ten events in 2015 by Vietnam Economic News.
1. Industry recorded high growth
The 2015 index of industrial production increased by nearly 10 percent compared to 2014, the highest increase during the 2011-2015 period. The manufacturing and processing industry, mining, and power production and distribution made the largest contributions to the industrial sector’s overall growth.
2. The Korea-Vietnam Free Trade Agreement (KVFTA), Eurasian Economic Union-Vietnam Free Trade Agreement (EEUV-FTA) and Laos-Vietnam Border Trade Agreement were signed and the EU-Vietnam Free Trade Agreement (EVFTA) negotiations were concluded
The KVFTA was signed on May 5 in Hanoi and took effect from December 20. Two-way trade turnover between the two countries is expected to reach US$70 billion by 2020 thanks to the KVFTA.
The EEUV-FTA was signed on May 29 in Kazakhstan. The two sides are completing procedures to put the agreement into practice. Vietnamese export turnover to the EEU is expected to increase by 18-20 percent a year.
The Laos-Vietnam Border Trade Agreement was signed on June 27 in Nghe An Province. The agreement offers a zero percent tax rate to goods of Vietnamese and Lao origin, provides exemptions for imports and value added taxes as well as technical barriers to some products manufactured by Vietnamese businesses operating in border areas of Laos when they are exported back to Vietnam.
The EU and Vietnam announced the conclusion of the EVFTA negotiations on December 2 in Belgium. The two sides will eliminate import taxes on more than 99 percent of tariff lines and give each other a certain customs quota or partial reduction of tariffs for the few remaining lines.
3. The Trans-Pacific Partnership (TPP) negotiations were concluded
Vietnam and 11 member countries including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and the US announced the conclusion of the TPP negotiations on October 5 in the US, opening a new age in economic cooperation. The TPP is the largest agreement, covering 40 percent of the global economy and adding more than US$300 billion a year to the world’s gross domestic product (GDP). Vietnam began participation in the negotiations in November 2010 with more than 30 technical sessions and 10 ministerial meetings.
According to the Ministry of Industry and Trade, the TPP would help the Vietnamese GDP increase by US$23.5 billion by 2020 and US$33.5 billion by 2025, while exports increasing by US$68 billion by 2025.
4. Lai Chau Hydropower Plant’s first turbine became operational
Prime Minister Nguyen Tan Dung, Minister of Industry and Trade Vu Huy Hoang and leaders of ministries and agencies attended the ceremony to launch operations of the Lai Chau Hydropower Plant’s first turbine on December 23 in Lai Chau Province, three months ahead of schedule set out by the National Assembly. Electricity of Vietnam will make greater efforts to put the remaining turbines into operation in 2016, a year earlier than originally planned.
The plant will supply around 4.797 billion kWh of power to the national grid a year, contributing to promoting the country’s socioeconomic development and implementing water regulation for the Da River and flood control in the downstream region during the rainy season.
5. DAP Lao Cai Fertilizer Production Plant was inaugurated
The Vietnam National Chemical Group (Vinachem) and the DAP2-Vinachem Joint Stock Company held the inauguration ceremony of the Diammonium Phosphate (DAP) Lao Cai Fertilizer Production Plant on November 7.
The project kicked off the construction in Bao Thang District’s Tang Loong Industrial Zone covering 72.4 ha. The project’s total investment capital reached nearly VND5.171 trillion for production capacity of 330,000 tonnes of DAP fertilizer a year, contributing to increasing the country’s total DAP output to 660,000 tonnes a year to meet two-thirds of domestic demand.
6. Governmental Decree 83/2014/ND-CP dated September 3, 2014 on petrol and oil trading was successfully implemented
A decree allowing two more petrol and oil traders acting as distributors and retail traders operating under franchise contracts, have contributed to gradually creating a competitive market.
A decree also stipulates that petrol and oil prices are reviewed for adjustment every 15 days, while basic prices are calculated on the basis of the average price of petroleum in the world market over the past 15 days.
7. The first commercial oil was pumped from Algeria’s Bir-Seba oil field
The PetroVietnam Exploration Production Corporation (PVEP) and its partners saw the first commercial oil pumped from lot 433a-416b in Algeria’s Bir-Seba oil field, on August 12.
The project was deployed in 2003 and is expected to produce total reserves of around one billion of oil barrels. The project’s first phase will produce 20,000 oil barrels a day, while the second phase will be completed in 2019 to increase capacity to 40,000 oil barrels a day.
8. The second Patriotic Emulation Congress of the industry and trade sector was organized
The congress was held on September 19 in Hanoi in order to honor outstanding inpiduals.
The industry and trade sector had more than 100,000 initiatives during the 2011-2015 period and was honored by the government and the state with many noble rewards.
9. The Tam Dao 05 oil rig was launched
Tam Dao 05 is the largest ever locally-manufactured jack-up rig financed by the Vietnam Oil and Gas Group and the Vietnam-Russia Oil and Gas Joint Venture (Vietsovpetro) and manufactured by PetroVietnam Marine Shipyard JSC (PV Shipyard).
The oil rig features the JU-2000E model of the US, weighs over 18,000 tonnes and can drill to a depth of 9,000m.
10. Equitization of businesses in the industry and trade sector was basically completed
The Ministry of Industry and Trade completed the conversion of eight state-owned enterprises into joint stock companies by December 2015, while finalizing the equitization of seven enterprises, including three corporations in the first quarter of 2016.