The ten most prominent economic events influencing the national economy in 2006 have been selected by TBKTSG, economic experts and entrepreneurs.

1. The 10th Congress of the Communist Party (April 18-24)

The congress reviewed the achievements and shortcomings of the last 20 years of doi moi (renovation). It affirmed that the renovation would be undertaken in a faster and more comprehensive way.

2. Vietnam becomes 150th member of WTO

On November 7, 2006, Vietnam was admitted into the World Trade Organisation (WTO). In December 2006, the US officially granted PNTR to Vietnam, an integral part of Vietnam's process of joining the WTO.

3. Vietnam successfully organises 14th APEC summit

Vietnam successfully organised the 14th APEC Summit in November, which gathered leaders and officials of the APEC member economies. The event has helped improve Vietnam's position in the international tribune.

4. FDI capital sets record

Foreign direct investment (FDI) capital exceeded the $10bil threshold in 2006, the highest level since Vietnam began receiving FDI. The figure is even higher than the FDI volume of $8.6bil in 1996, one year before the Asian financial crisis, when foreign investors overflowed into Vietnam.

5. Export turnover increases by 22%

Export turnover set a record last year, fetching $39.6bil, an increase of 22.1% over 2005. The high volume of exports contributed to the high GDP growth rate of 8.2%. The consumer price index rose by 6.6% in 2006, lower than the 2005 growth rate of 8.4%, which is considered a big achievement.

6. Stock market develops, but unsustainably

With a lot of new listing companies, the scale of the stock market expanded considerably, from $460mil worth of listing shares and 32 share items in the beginning of the year to $8.7bil and 92 share items by December 26, 2006. However, the stock market was unstable: the VN Index fluctuated unexpectedly, from 304 points in the first transaction of the year to exceed the 800 point threshold on December 20.

7. Vietnam enacts Unified Enterprise Law (UEL) and Common Investment Law (CIL)

The UEL and CIL were ratified by the National Assembly on December 12, 2006 and came into effect on July 1, 2006, marking a breakthrough in the process of creating a level playing field for both domestic and foreign, private and state owned enterprises.

8. Big corruption scandals unveiled

Competent authorities have initiated legal proceedings for many corruption cases, including the PMU 18, in which state officials pocketed public money. The enactment of the Corruption Prevention Law and the establishment of the Agency for Fighting against Corruption revealed the determination of Vietnam to combat corruption.

9. Severe damage caused by calamities and epidemics

Successive calamities, Chanchu, Xangsane, and Durian, devastated many southern and central provinces. The total material toll is estimated at VND20tril ($1,250mil). Foot-and-mouth disease in animals and insect epidemics have killed a lot of animals and caused the failure of crops in southern areas

10. Strikes occur in early 2006

Many strikes happened, mostly in foreign invested enterprises (150 strikes, involving 160,000 people). The labourers in the enterprises get low pay and cannot enjoy basic interests stipulated in the Labour Code. After the Government decided to raise the minimum salary level in foreign invested enterprises, the number of strikes decreased.

Source: TBKTSG