1. GDP growth hits record for 9 years
This year, GDP grew at 8.4%, the highest level for the past 9 years. Of which, the industrial and construction sector contributed 4.2%; the service sector, 3.4%, and the agricultural sector, 0.8%. GDP of the agricultural sector grew by 4%, lower than expected because of impacts of Storms 7 and 8 and return of avian flu. Meanwhile, the industrial and construction sectors witnessed an increase of 10.6% in GDP, the processing section in particular registered 13.1%. The service sector grew by 8.5%, much higher than last year. It was dynamic growth of the industrial and service sector that pushed up modernization.
2. Prime Minister Phan Van Khai visits US
The visit by Prime Minister Phan Van Khai to the US was the first visit by Vietnamese Government leader to this country 30 years after the end of the war, 10 years after establishment of official diplomatic relations, and 5 years after signing of the Vietnam – US Bilateral Trade Agreement (BTA). In addition to political purposes, the visit aimed at acceleration of trade and investment relations  between the 2 countries and signing of many significant agreements. The US business community attached much importance to this visit. Many leading firms of the US, also of the world, in many fields offered Vietnam many cooperation opportunities. Many important agreements were signed in the fields of economy, education and training, science and technology, agriculture, etc....
3. FDI and ODA are on the rise
Quick increase in FDI with a large number of large-sized projects being under consideration this year forecasts a huge flow of FDI in the years to come. This year, Vietnam lured $5.835 billion of registered FDI capital, 45.2% up over last year, exceeding the full-year target by 29.7%. Hanoi was the leading locality in terms of FDI attraction, luring $1.8 billion.
There were many big projects using modern technology. Production and export of the FDI sector grew at higher rate than other sectors, positively contributing to GDP and export growth rates of the country. The FDI sector’s contribution to State funds might total $1 billion for the first time.
Committed ODA capital amounted $3.47 billion, the highest level for the last 10 years.
4. CPI stays at high level
Consumer prices in December this year were 8.4% higher than last year. All the 10 reviewed items witnessed price hikes. Foods and foodstuffs posted a 10.8% increase, followed by housing and building materials with a 9.8% rise. The CPI for the whole year, calculated by international formula, increased 8.3%. Price hikes exerted much pressure on people’s living despite the Government’s efforts such as salary raises. Gold prices sky-rocketed in the domestic market, following sharp raises in the world market.
5. Construction of Son La hydro-power plant gets started
The largest hydro-power plant in Southeast Asia, of which construction began on December 2, was funded VND36,937 billion. As projected, the plant will begin producing electricity in the year of 2010 and its construction will complete in 2012.
6. Anti-corruption Law passed
The law highlights responsibilities of State agencies, organizations, and the community in fighting against corruption as well as sanction on this kind of crime.
7. Oil prices changeable
Oil prices in the world market changed complicatedly, sometimes increased to $70.8 per barrel, creating a new price level. In such a context, the Vietnamese Government amended retail prices of oil and petrol for 4 times. Despite difficulties, supplies were still enough for domestic consumption.
8. Avian flu returns
4 million birds were destroyed and 238 million ones were injected with vaccine. The agricultural sector therefore lost 2% of its GDP.
Losses caused by no consumption of poultry totaled VND1,100 billion per month.
Several efforts were being made to prevent the disease from coming back in 2006.
9. Real estate market frozen
This caused a lot of negative impacts on the economy. Thousands of real estate firms and their loaning banks were at risk. Several solutions by relevant agencies seemed ineffective. In long term, there should be a healthy competitive market with information transparency for real estate.
10. Poverty reduction goal achieved ahead schedule
The ratio of poor households in accordance with national standards was reduced to less than 7% this year, ahead the Government’s projection by 1 year.

Source: Thời báo Kinh tế Việt Nam, 30/12/2005