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Ten events of 2008 selected by VietNamNet readers
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VietNamNet Bridge – 2008 witnessed many events and changes. Let’s review the year through the 10 most outstanding events as chosen by VietNamNet readers.


1. Inflation and economic stagnation

Vietnam entered 2008 with confidence and optimism based on 2007’s achievements (highest GDP growth rate in many years, highest FDI attraction, record high export revenue, etc.). The country, therefore, was shocked when inflation hit 25% in mid 2008, affecting all aspects of the economy. A lot of enterprises reported losses, cutting down output, laying off workers, operating perfunctorily, or going bankrupt. People had to tighten their belts. Unemployment became a real threat.



The Party, the state and the government quickly collected suggestions from researchers, prestigious international institutions and brainstormed solutions for the situation.



For the first time in many years, the Party Central Committee held an extraordinary meeting to discuss the economic situation. The Politburo, after that, issued an instruction on solutions to combat inflation, to stabilise macro-economics. The government concretised the instruction with various policies and methods to control the monetary system, to tighten spending, etc. And inflation was curbed.



Nevertheless, when the anti-inflation solutions had just taken effect, the global economic crisis hit Vietnam. The country faced economic stagnation.



The government in November announced a group of five solutions to prevent economic downturn, replacing the eight groups of solutions to curb inflation, and an economic stimulus package worth $6 billion.



Vietnam now has to confront an entirely new circumstance: It needs to curb inflation while preventing economic slowdown, and deal at once with urgent problems and long-term ones.



2. The “Deluge” in Hanoi

Heavy, prolonged rains, know as the “Deluge”, struck Hanoi from early October 31 till November 3, turning the capital city into a river. Water flew into houses, up to over 1m depth in some areas, and stayed there for many days. For the first time, Hanoians went out into the street to catch fish. Flooding killed 18 people, including some pupils. Food became scarce and costly.



Natural calamities are something that man can’t always predict in advance, but the way Hanoi authorities dealt with the flood was problematic.



Political scientists say that a natural disaster is a test of a government, and the Hanoi government was said to have failed this one. The city’s water drainage system was ineffective in the flood. In addition, the forecast ability of hydrometeorological organisations was proven to be very poor.



3. Vedan scandal

The environmental disaster related to Vedan was uncovered, ringing an alarm bell throughout all of society. In 14 years, this factory discharged a huge volume of untreated waste water into the Thi Vai River, averaging 105,600cu.m per month, through a secret sewer network.



Vedan was still uncooperative with competent agencies after the case was exposed. Many local people sued the company for personal damage.



After Vedan, many other cases were brought to light: Miwon discharging waste water into the Red River (Phu Tho), Nha Xa craft village, Saigon-Ha Nam Beer Plant, Dong Viet Hai Co., Ltd, etc. killing the Nhue River, etc.



The violations happened over a very long time and local residents raised their voice many times, but competent bodies didn’t know.



The National Assembly session was burning with discussion of Vedan. Environmental managers admitted that they didn’t pay proper attention to the environment. For the first time, standards on water environment were added to the country’s five-year development plan.



The government began realising the significance of the environment in comparison with economic interests. In August, Prime Minister Nguyen Tan Dung rejected a $5 billion steel project in Van Phong Bay, Khanh Hoa province of South Korea’s Posco group for environmental reasons.



However, many big projects have been and may be approved without environmental reports. Scientists have warned that the bauxite project in the Central Highlands will be an environmental disaster.



4. Launching Vinasat-1 telecom satellite

The first commercial telecom satellite of Vietnam was launched into orbit at 5.17am, April 19, 2008 at the European Space Centre in Kourou, French Guiana, South America. This event heralded a new age for the telecom and information sector.



Together with more than 200,000 km of optical cable on land and under sea, the modern digital microwave system, VINASAT-1 has contributed to modernising national information facilities, improving the capacity and safety of the information network and accelerating the supply of telecom, IT, Internet and television services for people in remote, mountainous areas and on islands.



5. Vietnam wins AFF Cup for the first time

Millions of Vietnamese people will never forget the moment when striker Cong Vinh headed the ball into the goal of Thailand in the last seconds of the second leg of the final of the ASEAN Cup 2008. The sweet victory came as a dream. For the first time in the 49-year history of the event Vietnam had won the ASEAN football championship.



6. Melamine and aftermath

The melamine scandal spread from China to the whole world, including Vietnam. Many countries had to hunt dairy products sourced from China.



It was rumoured that hundreds of litres of Chinese milk containing melamine had been sold in the market. The melamine ‘storm’ hit Vietnamese people’s lives, particularly families that had babies and dairy companies.



Food hygiene and safety agencies warned consumers to protect themselves in the context that food products were out of control. Through this call, these agencies admitted their helplessness.



7. PCI corruption scandal

The Japanese media in June reported that officials of the Pacific Consultants International (PCI) company confessed that they had bribed a Vietnamese official, Huynh Ngoc Si, Director of the HCM City-based East West Avenue Project Management Unit, to win a consulting contract for this project.



The East-West avenue project began on January 31, 2005 with total investment of VND9,864bil (US$616.5mil), including VND6.394bil ($399.6mil) of official development assistance (ODA) from the Japan Bank for International Cooperation (JBIC).



The avenue will be 22km in length when completed, running from National 1A highway to the Hanoi highway. The project includes the following major sub-works: the 1.49km Thu Thiem tunnel, five overhead bridges, eight regular bridges, five crossroads, seven to 10 pedestrian bridges, one new road of over 5.6km in Thu Thiem, upgrades of three old bridges and other works.



According to Japan, four officials of the PCI declared that from 2002 to 2006, they gave more than $800,000 USD to Huynh Ngoc Si to win the contract.



The Ministry of Public Security set up a special team to investigate this case. Si was dismissed from his posts on November 19. The case went to trial on December 9. Si was banned from leaving Vietnam pending investigation.



Because of this scandal, Japan stated it would suspend its ODA grants for Vietnam.



8. The stock market plummets

Despite the efforts of state agencies, the stock market fell to its lowest level ever. The VN-Index is currently wavering around 300 points, compared to 927.2 points in late 2007. The HASTC-Index has plunged to less than 100 points, compared to 323.55 points in late 2007.



It is forecast that the stock market of Vietnam won’t recover in the coming time because sources of investment capital for this market are limited.



9. Expansion of Hanoi

The National Assembly approved the expansion of Hanoi on May 29. Accordingly, the country’s capital is now four times larger, totalling nearly 3,000sq.km, after it was merged with Ha Tay province, Vinh Phuc province’s Me Linh district and Dong Xuan, Tien Xuan, Yen Binh and Yen Trung communes in Hoa Binh province’s Luong Son district.



10. Former Prime Minister Vo Van Kiet passes away

The bad news spread on June 11 about the death of former Prime Minister Vo Van Kiet, one of the most prominent leaders of the Doi Moi period. Thousands of people gathered on the road from Thong Nhat Palace to the HCM City Cemetery to see the former PM to his last resting place.


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