Vietnam needs to adopt a comprehensive approach and undertake precise analyses and forecasts to proactively propose scenarios and solutions for both the short and long terms to maintain its macro-economic stability, ensure major balances in the economy, and gradually overcome the challenges, Vice Chairman of the Party Central Committee’s Economic Commission Nguyen Duc Hien told the Vietnam Economic Scenario Forum 2023, co-organized by VnEconomy / Vietnam Economic Times and the Ministry of Foreign Affairs in Hanoi on January 11.

2023 is forecast to see opportunities but also greater challenges, he said in his address to the Forum, and adverse factors from both inside and outside of the country will affect Vietnam’s socio-economic development.

Many foreign organizations have predicted that global growth will slow by 2.2-2.5 per cent, with many countries and regions at risk of falling into recession. Such factors, Mr. Hien said, will have an impact on Vietnam’s economy.

It is clear that global recession and recession in different economies will affect Vietnam this year and in the years to come. The goals of 6.5 per cent growth, 4.5 per cent inflation, and many others for 2023 approved by the National Assembly will be significant challenges for Vietnam without flexible management.

The long-term direction is to build an independent and self-reliant economy, he explained.

This is necessary especially given that four of Vietnam’s five key export sectors still greatly depend on foreign enterprises and 12 of 14 key industries have a major proportion of foreign enterprises, resulting in the added value for Vietnam remaining low.

The foreign-invested sector also accounts for more than 72 per cent of Vietnam’s total export revenue.

“This requires a more complete approach and maximization of resources, not only human and financial resources but also resources relating to land, institutions, and policies to create new growth in 2023,” he told the Forum.

2023 is considered an important year in creating a foundation for socio-economic development in the mid and long terms, he said in closing, and especially for the socio-economic development strategy in the 2021-2030 period.