Bright prospects for Vietnam’s economy in 2023

Despite geopolitical and economic instability in several regions of the world, in 2022, Vietnam achieved a growth of 8.02%, which is a record since 1997.

>> Publication of the “Vietnam Economy in 2022 and Outlook for 2023” report

>> Vietnam’s economy is open and full of vitality

>> The fulcrum of Vietnam’s economic acceleration in 2023

In 2022, Vietnam’s foreign trade is estimated to be 732 billion US dollars, an increase of 10% compared to 2021.
Photo: VNA/CVN

Including the World Bank (WB), Asian Development Bank (ADB) and International Monetary Fund (IMF), this figure is the highest in the Asia-Pacific region.

But in their opinion, in order to maintain this growth rate in 2023 and resist exogenous influences, the Vietnamese government will have to be more flexible in macroeconomic management.

Strong rebound in 2022…

At the height of the coronavirus crisis, the government implemented numerous response and support measures for businesses and individuals to allow production to resume.

But according to Michael Kokaly, chief economist at VinaCapital, if Vietnam has done so well, it is because it has been able to maintain two growth levers: exports and foreign direct investment (FDI).

Indeed, taking advantage of geopolitical changes in the world, Vietnam has been able to increase its export rate and attract FDI. The economist explained that while China continues its “Zero COVID” policy and its companies have to pay additional taxes imposed by the United States, Vietnam has rolled out a red carpet for foreign companies looking to relocate their production chains.

Singapore’s straitstimes.com has included Vietnam among the fastest growing economies in Asia in 2022. The 8.02 percent is the nation’s highest growth rate since 1997, CNN confirmed.

With appreciable growth, low inflation, impressive exports, a stable political environment and brilliant diplomacy, Vietnam is emerging as one of the few bright spots in the dark picture of a world plunged into recession and mired in multiple crises, Sputnik (Russia) comments.

In 2022, Vietnam’s import-export volume will exceed 700 billion US dollars, and the country has retained its place among the top 30 trading countries and territories of the World Trade Organization.

… and tasks to be set in 2023

In 2023, Vietnam should no longer avoid the turmoil of the global market. Indeed, in Vietnam’s main markets, the export sector may be penalized by rising inflation, which has led to lower demand. The country should also feel the consequences of the instability in the stock, financial and real estate markets.

“The global market is becoming increasingly unpredictable. Exchange rates are volatile and the price of energy, raw materials and real estate prices fluctuate. However, absorption of Vietnamese public investment is slow and inefficient. More flexible measures are needed to maximize results,” said Andrew Jeffries, AfDB’s Country Director in Vietnam.

“The Vietnamese government has published directive policies that are relevant at the central level. However, the authorities have faced institutional blockages when implementing them at the local level. To solve this problem, it is important to give more autonomy to local authorities. The task of the executive power is to monitor and check their work.”WB economist Ahmet Eyveida suggested.

The World Bank forecasts 6.7% growth for Vietnam in 2023, higher than the 6.5% set by its government. Regarding exports, the country will continue to rely on agricultural, food and textile products. It will continue to attract foreign investors by continuing its reforms.

VOV/VNA/CVN

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