Along with the opportunities from the “Socio-economic recovery and development for the 2022-2023 period” program, Vietnam will also face a host of challenges in ensuring its economic development, analysts said at the annual Vietnam Economic Scenario Forum with the theme “Recovery & Acceleration of Growth: From Politics and Economic Stimulus Strategies to the Resilience of Industries, Localities and Businesses”, chaired by VnEconomy - Vietnam Economic Times in cooperation with the Ministry of Foreign Affairs on January 14.

The recovery program will have funding of VND350 trillion ($15.3 billion) and five groups of key tasks and solutions: improving healthcare capacity amid Covid-19; ensuring social security to support employment; assisting business recovery; continuing with infrastructure development; and other solutions.

Monetary and fiscal policies will create further business opportunities, according to Mr. Phan Duc Hieu, Standing Member of the Economic Committee of the National Assembly. Therefore, businesses need to innovate their business models and change the methods in their operations to take advantage of the opportunities from the program.

“Institutional reform with specific mechanisms will create conditions for individuals and businesses to accelerate production and business improvements as well as promote the development of the digital economy,” said Mr. Can Van Luc, Chief Economist at the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and member of the National Financial and Monetary Policy Advisory Council. Though policies have been issued quickly, they are close to the reality of Vietnam’s economic development and have built trust among businesses and the people.

In addition to opportunities for development in 2022 and subsequent years, there are also many challenges to be addressed. According to Mr. Nguyen Minh Cuong, Chief Economist at the Asian Development Bank (ADB), challenges could include the impact of Covid-19 continuing into the immediate future, inflation, bad debts, slow labor market recovery, and insufficient improvements in the business environment, among others.

In terms of policy, Dr. Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), noted that there is still profiteering being seen, so it is necessary for Vietnam to guarantee transparency and clear accountability to ensure its economic development remains on track.