Intertwined opportunities, challenges for Vietnam’s economy in 2023
An aerial view of Hanoi capital (Photo: VNA)
With certain headwinds predicted for the global economy in 2023, Vietnam too, faces considerable challenges. But opportunities are also significant if concerted and appropriate solutions are taken, an expert has said.Vietnam has to deal with one major external challenge and two internal ones, Dr Pham Sy Thanh, Director of the Chinese Economic Studies Programme under the Vietnam Institute for Economics and Policy Research, told the Vietnam News Agency.
The external challenge is a strong decline in demand for Vietnamese exports. Many export sectors with revenue of over 1 billion USD like wood and apparel recorded their earnings in October and November 2022 falling 30 - 40% year on year and month on month. This indicates that foreign markets are no longer open or attractive enough for exports in 2023.
Export contraction will have a huge impact on many social issues, especially lay-offs, job shortages, and unemployment in industrial parks, he pointed out.
Among internal challenges, the first is that the handling of wrongdoings in the bond market and the banking system has caused serious disruptions and congestion of the capital flow. Meanwhile, the cost of capital is one of tough barriers to production and business activities, but it is nothing in comparison with the lack of capital or the inaccessibility to capital.
Thanh considered these as immediate difficulties that require strong solutions from the Government so that businesses can gain the fastest access to capital sources with reasonable interest rates.
Cargo containers are loaded at Tan Cang - Cat Lai Terminal in Thu Duc city, Ho Chi Minh City. (Photo: VNA)
However, he noted, Vietnamese exporters also have big opportunities to win contracts from partners who used to place orders in China. The shift of supply chains out of the world’s second biggest economy to Vietnam is also accelerating as seen in recent moves by Foxconn, Apple, Adidas, and Samsung.In Southeast Asia, Vietnam is emerging as one of the go-to places where big enterprises choose to build research and development centres.
To capitalise on those advantages, Vietnam should make concerted efforts, the expert recommended, elaborating that it should have better industrial and office infrastructure. It should also further develop the nation’s transport system accordingly to minimise traffic congestion.
In addition, to have better industrial, office, and transport infrastructure, the policies for handling economic wrongdoings should also open “green lanes” for businesses and localities to make new investment decisions.
Another important measure is dealing with problems of the bond market and the banking system to smoothly carry out monetary and fiscal policies. Particularly, authorities should further prioritise fiscal policy instead of focusing only on the monetary. This will open up more economic development opportunities and optimise advantages when other economies have yet to return to their “orbits”, according to Thanh./.
Related News
Vietnam ready to export first batch of sweet potatoes to China
13:57 | 06/04/2023 Anti-Smuggling
Australian Governor-General wraps up State visit to Vietnam
13:53 | 06/04/2023 Headlines
Vietnam a potential market for French businesses, investors: experts
16:12 | 05/04/2023 Import-Export
Vietnam active at UN Human Rights Council’s 52nd session
16:11 | 05/04/2023 Headlines
Latest News
Saigontex 2023 attracts over 1,300 domestic, foreign businesses
14:01 | 06/04/2023 Import-Export
Mong Cai international border gate sees strong recovery
16:15 | 05/04/2023 Import-Export
Import and export turnover across Cao Bang prospers but still exists difficulties
10:25 | 05/04/2023 Import-Export
Cashew industry strives to "get on the shelves of world supermarkets"
10:24 | 05/04/2023 Import-Export
More News
HCM City’s industrial production index down 0.9% in Q1
14:47 | 04/04/2023 Import-Export
Fisheries exports estimated at 1.85 billion USD in Q1
14:45 | 04/04/2023 Import-Export
Quang Ninh aims to attract quality FDI inflows
14:43 | 04/04/2023 Import-Export
Exports face many difficulties
13:29 | 04/04/2023 Import-Export
Manufacturing enterprises increase their competitiveness thanks to digital transformation
13:28 | 04/04/2023 Import-Export
32nd Việt Nam Expo promises to boost business linkages
14:19 | 03/04/2023 Import-Export
Prevention of price risks before news that Indonesia increases rice imports in reserve
09:52 | 03/04/2023 Import-Export
Japanese investors highly appreciate Vietnamese property market
17:41 | 02/04/2023 Import-Export
Seafood enterprises propose to remove obstacles from exporting to the EU
10:34 | 02/04/2023 Import-Export
Your care
The system has not recorded your reading habits.
Please Login/Register so that the system can provide articles according to your reading needs.
Saigontex 2023 attracts over 1,300 domestic, foreign businesses
14:01 | 06/04/2023 Import-Export
Mong Cai international border gate sees strong recovery
16:15 | 05/04/2023 Import-Export
Vietnam a potential market for French businesses, investors: experts
16:12 | 05/04/2023 Import-Export
Import and export turnover across Cao Bang prospers but still exists difficulties
10:25 | 05/04/2023 Import-Export
Cashew industry strives to "get on the shelves of world supermarkets"
10:24 | 05/04/2023 Import-Export