Challenges lie ahead for Vietnam's economic growth
Vietnam has challenges to tackle if it wants to achieve economic targets and deeply integrate into the world's economy in the context of new trade agreements.
HCM City (VNA)ꦰ - Vietnam has challenges to tackle if it wants to achieve economic targets and deeply integrate into the world's economy in the context of new trade agreements.
Speaking at a seminar held in HCM City on March 3, Tran Dinh Thien, Director of the Vietnam Institute of Economics, told participants that the economy bounced back last year, with GDP growth of 6.2 percent and low inflation of 1.7 percent.
"But it is the foreign-invested sector that contributed largely to the economic restoration," he said, adding that the domestic sector showed insignificant development as agriculture and SMEs faced difficulties, while macroeconomic policies had not helped the domestic sector.
"The FDI sector represented 70 percent of export value, which means the economy depends on this sector, which is a problem," he said.
Last year, 71,400 local businesses closed, an increase of 22.4 percent compared to 2014. He said it would be worrying if the rate continued to rise. The first two months of the year saw an increase of new businesses, but their size has become increasingly smaller, he said, adding that the country lacks major private businesses as a pillar for the economy.
Thien suggested that the government should view 2016 as a national business year and focus on addressing difficulties and attracting businesses to invest in the agricultural sector.
Tran Du Lich, a member of the National Assembly Economic Committee, said that tapping the opportunity would be a challenge for the economy.
"Opportunities and challenges for the economy in general and businesses in particular always intertwine, and if they don't know how to tap the opportunities, they will turn into challenges," Lich said.
"Joining the WTO, FTA, AEC and TPP was a way to develop the economy in the direction of trade liberalisation, but it does not mean the State's macro governing role and support to businesses is minor," he said, adding that the State's role and responsibility will become even more significant as the State's economic administration will have to reform to suit the situation.-VNA
Vietnam will benefit from plenty of opportunities through economic integration and reform, however they can only be realised with suitable policies, experts said.
Existing and future free trade agreements are expected to promote innovations in the business community to enable firms to compete not only at home, but also on international markets.
Vietnam has become one of the world’s great development success stories, rising from the ranks of the poorest countries, said Work Bank (WB) Group President Jim Yong Kim.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Outcomes of ABAC III will shape ABAC’s final policy recommendations to be submitted to the ABAC-APEC leaders’ dialogue, scheduled to take place in the Republic of Korea this November.
This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.
At the summit, publishing, tech, and media sectors will discuss emerging trends, business models, and sustainable solutions for digital publishing development in Vietnam.
This year’s “Vietnam Goods Week” marks a significant milestone as it is being held simultaneously for the first time in four locations across Asia: Japan, Hong Kong (China), Cambodia, and Malaysia, from June 19 - 22.
According to NordCham Vietnam Chairman Thue Quist Thomasen, the Vietnamese Government’s commitment to achieving net-zero emissions by 2050 is both a challenge and an opportunity for businesses to contribute to green and sustainable growth.
The analysis from an investment perspective shows that the economy’s growth has been heavily capital‑driven, yet efficiency remains low as reflected by Vietnam’s Incremental Capital-Output Ratio (ICOR) being significantly higher than global and regional averages. This underscores the imperative to enhance capital‑use efficiency.
Deputy PM Tran Hong Ha urged countries to work together to remove supply chain bottlenecks, expand market access, strengthen cooperation in smart customs procedures, mutually recognise technical standards, and eliminate unnecessary protectionist barriers to boost trade and investment.
The event has gathered over 400 exhibitors from 16 countries and territories, with more than 980 booths showcasing a wide range of products and technologies in automotive components, electronics, repair and maintenance, bodywork, accessories, and customisation.
The latest order follows Vietjet’s commitment for 20 additional A330neo aircraft last month, bringing the airline’s total widebody aircraft on order to 40.
Minister of Finance Nguyen Van Thang acknowledged the target represents an important milestone for socio-economic development as well as a demonstration of the country’s aspiration for robust economic growth.
The price of E5 RON92 petrol is now capped at 20,631 VND (0.79 USD) per litre, up 1,169 VND from the previous adjustment, while RON95-III costs no more than 21,244 VND per litre, up 1,277 VND.
Illustrative image (Source: VNA)
