Vietnam's economy 2023: A belief at the beginning of the New Year

The spring is coming with flowers blooming to welcome a New Year. And there are belief in the better future in people’s hearts.

In 2022, despite many difficulties and challenges, especially pressure from the context of the global economic recession, thanks to drastic actions of the whole political system, the consensus of the business community and people, our socio- economic situation has achieved many positive results.

At the 5th Vietnam Economic Forum with the theme “Vietnam’s Economic Overview in 2022 and Operating Orientation in 2023” taking place on December 17, 2022, Tran Tuan Anh- Head of the Central Economic Commission- said after two years of 2020-2021 of focusing on implementing the dual goal of “both epidemic prevention and control and economic development”, in 2022, Vietnam’s economy had a strong recovery, reaching positive and relatively comprehensive results; major balances were always ensured, the macro foundation was stable, especially in the context of the world and regional situation with many difficulties and changes, many economies’ grown were turning down.

Resolution no. 68/2022/QH15 on Socio- Economic Development Plan 2023 of the National Assembly set out key targets for 2023. Thereby, the growth rate of gross domestic product (GDP) is about 6.5%. GDP per capita is about USD 4,400. The proportion of processing and manufacturing industry in GDP is about 25.4-25.8%. The average growth rate of the consumer price index (CPI) is about 4.5%. The average growth rate of social labor productivity is about 5-6%. The proportion of agricultural laborers in total social workers reaches 26.2%...

Accordingly, Vietnam’s economy is expected to reach the high growth of over 8%, inflation will be controlled in accordance to the set targets; export in the first 11 months of the year increased by over 13.4%, export trade surplus balance was USD 10.6bn; foreign capital disbursement increased 15.1 % year-over-year, industry production index in 11 months increased 8.6%, of which processing manufacturing industry increased 8.9%; domestic consumption strongly increased: the total goods and service retail sales in the first 11 months of 2022 increased to 17.5%...

Especially, business activities have been maintained with strong recovery. The number of enterprises participating and re-participating in the market was nearly 195,000 enterprises- an increase of 33.2% year-over-year. In which, the number of enterprises returning to operation increased 40.5%.

Maintaining steps of sustainable development
Assessments from the Government shows the global economy in 2023 will face many difficulties: growth slowing down, inflations increasing, possibilities of short-term economic recessions, military conflicts, natural disasters and diseases... However, Vietnam’s economy, as evaluated by many international organizations, has optimistic forecast of growth in 2022 and 2023.

In the immediate future, our country still faces many challenges. Types of markets, circulation of cash flow of the economy faced many difficulties; the increasing overall industrial production index is likely to have decreasing trend; implementation of some tasks of the Program of Recovering and Developing Socio-Economic Development were slow; disbursement of public investment capital has not met requirements; many enterprises have still had difficulties in accessing credit capital; the shortage of medicine, equipment and medical supplies has not been completely solved; life of a part of the population is still in difficulties...

On November 10, 2022 National Assembly Chairman Vuong Dinh Hue signed and promulgated Resolution no. 68/2022/QH15 on the socio-economic development plan in 2023. The overall goal of the Resolution is to maintain macroeconomic stability, control inflation, promote growth, and ensure major balances of the economy. Effectively controlling the COVID-19 epidemic and emerging diseases; accelerating restructuring, improving internal capacity, self-reliance, resilience and adaptability of the economy; being determined to effectively implement with the best efforts the program of socio-economic recovery and development, 3 national target programs; promoting innovation, green growth, digital transformation...

In particular, it is necessary to improve the quality of human resource; to promote development and application of science and technology. Building a synchronous and modern infrastructure system, especially important key national projects.

Also at the regular Government meeting on December 1, after analyzing the domestic, regional and international situation, especially difficulties and challenges that outweigh opportunities and advantages, Prime Minister Pham Minh Chinh stated

that the direction and management perspective is to be consistent with the goals of maintaining macroeconomic stability, controlling inflation, promoting growth, and ensuring major balances of the economy. Closely monitoring the developments of the situation; being proactive, flexible, with quick, timely and effective policy response; ensuring the synchronous implementation of immediate and long-term goals in a methodical and scientific spirit and promoting rapid and sustainable socio- economic development.

Prime Minister asked not to be negligent in difficult situations. The more difficult the situation is, the more calm manner is required to deal with it. Unification, coordination and responsibilities are necessary factors. Ministries, sectors, units should maintain the momentum of growth in the year of 2023 and in the coming year.

To affirm that spirit, also at the 5th Vietnam Economic Forum, Tran Tuan Anh- Head of the Central Economic Commission expressed his belief: under the leadership of the Party, companionship of the National Assembly, drastic direction and administration of the Government and the Prime Minister, determination and consensus of the whole political system, business community and people, along with the trust, support and cooperation from the international community, Vietnam will overcome challenges and continue to have a solid development in 2023 and the following years.