Though there remain difficulties and challenges there are also opportunities for Vietnam to change its policy direction, according to Mr. Nguyen Xuan Thanh, Lecturer in Public Policy at Fulbright University Vietnam.

“The first quarter of this year is forecast to be a quarter without positive economic growth in the country while the second quarter is likely to continue to be difficult,” Mr. Thanh 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.

“At the end of May, challenges such as exchange rate pressure will be improved, so it is time for the country to innovate policies and stabilize its macro-economic situation,” he said.

Another external factor in Vietnam adjusting policy is China, with expectations for opportunities when the country opens its doors.

Mr. Thanh emphasized the need for Vietnam to be ready amid impacts from the US and China.

“We cannot wait passively,” he said. “The first and second quarters will still face difficulties and I think the opportunities will come in May and June. In strategic competition, we expect public investment and domestic consumption to compensate for any decline in exports, but I must emphasize that it is necessary to disburse FDI along with public investment to see a bright picture.”