The statistics
showed that the GDP (gross domestic product) generated by the construction
industry in the first quarter this year was down compared to the same period
last year.
The decline in GDP generated by the construction industry in Q1/2012
was attributable to many reasons in both the input and output.
Regarding the input, the most important factor is the social
development investment capital. In comparison with the same period last year,
investment capital if being calculated at current prices is increasing, but if
excluding the price factor, it is decreasing.
The ratio of investment/GDP in Q1/2012 reached 36.2 percent; lower than
the same period last year (38.8 percent). This is the important factor bringing
about the lower GDP growth than the same period last year (up 4 percent
compared to the rise of 5.57 percent).
That also explains why the GDP generated by the construction industry
in Q1 2012 decreased 3.8 percent while in Q1 last year the growth was 4.41
percent. Industrial growth of construction materials production is also greatly
affected.
Coefficient between the ratio of investment capital/ GDP compared to
GDP growth rate of Q1 this year was higher than that of the same period last
year (nearly 9.1 times compared with nearly 7 times). Although the coefficient
is often calculated and observed in a long time that is also a warning sign to
improve the investment efficiency so as to help economy escape the bottom and
develop. If not, inflation is very easy to repeat because the investment
efficiency is a key underlying factor of inflation.
Detailing each capital source will see more clearly the picture on
social development investment capital in Q1 2012. The investment capital in
this sector has three sources namely state budget, loans and state-owned
enterprises (SOEs).
The capital source from SOEs has been affected by two factors. Firstly,
due to the low profit so re-investment is also low. Secondly, SOEs are making
capital divestments from non-core investment sectors. If basing the current
prices, this investment source was up slightly, but if excluding the price
factor, it saw a strong decrease.
The investment capital source from the state budget reached low ratio
of 19 percent of the year's plan (up 1.3 percent over the same period last
year), of which, the centrallymanaged budget was 18.6 percent (up 7.9 percent)
and locally-managed budget was 19.1 percent (down 0.7 percent).
The non-state investment capital increased over the same period last
year but with not high speed when the number of newly established enterprises
decreased while the volume of businesses suffering from dissolution and
shutdown increased.
The FDI (foreign direct investment) capital also declined compared to
the same period last year. The registered FDI capital reached $2.63 billion,
down 36.4 percent, of which, newly pledged capital was $2.26 billion, down 22.8
percent on year and added FDI capital was $368 million, down 69.6 percent on
year.
The actualised FDI capital reached $2.52 billion, slipping slightly 0.8
percent on year, of which, in March along, the figure was over $1.5 billion,
marking the very high monthly level so far. The ODA (official development
assistance) capital disbursement also reached low level compared
to the same period last year.
The output was also narrowed. The decline of the construction industry
entailed the strong reduction in production of a variety of building materials.
The inventory index of building materials manufacturing sector is
increasing highly and far exceeding the common stockpile index of the whole
processing industry.
VietBiz24
Business & Investment Opportunities
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