Tag: challenges

Though boasting their own appeal, Vietnam’s major cities have failed to compete with their regional counterparts in tourist numbers and return visitors.

Mr. Suan Teck Kin, Head of Research and Executive Director, Global Economics and Markets Research, at UOB, identified three challenges and three opportunities for Vietnam’s economy in the Trump 2.0 era.

Vietnam has much to do as it works to establish a carbon credit market.

Vietnam is poised to capitalize on the burgeoning global Halal market but stringent certification requirements, lack of awareness, and fierce competition count among the challenges.

Recent developments in global rice markets are seen as a major opportunity for Vietnam’s rice exports but exporters must be fully on board.

Vietnam has accumulated experience in pandemic prevention, risk management, and crisis management over the years, which will help it overcome the difficulties in 2023.

According to Tech in Asia, the level of technology adoption in agriculture is still low in Vietnam because of a lack of capital. Only a few startups have raised capital externally.

Having applied a national multi-dimensional poverty line in 2015, Vietnam has been a pioneer in the Asia-Pacific region in applying the line as a tool for targeting and monitoring poverty and policy formulation. However, the poverty that exists among ethnic minorities and people living in some coastal and island areas is a challenge for Vietnam in achieving the sustainable development goals.

The Vietnam Leather, Footwear and Handbag Association (LEFASO) has reported that leather and footwear exports have been quite positive in the first half of 2022 but uncertainties over raw material supplies and orders slowing in the closing months of the year are still of concern to businesses. The industry will continue to face risks such as large inventories and slowing orders in the second half.

Vietnam’s exports totaled more than $216 billion in the first seven months of 2022, a 16.1 per cent increase year-on-year. Maintaining export growth over the closing months of the year is expected to face challenges as demand from import markets is affected by inflation and recession.

According to UOB, a number of external risks are posing challenges to Vietnam’s GDP growth prospects, including the Russia - Ukraine conflict leading to inflation risks; global supply chain disruptions; tight monetary policy globally; and lingering Covid-19 risks.

Though the benefits of solar power are obvious and the use of renewable energy is no longer an option but a must, there remain many issues in implementation due to an absence of clear regulations, especially regarding waste treatment and handling used panels.

Forum hears that while Vietnam is expected to maintain GDP growth there will be obstacles along the way.

According to Mr. Pham Tan Cong, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), many regulations posing difficulties for businesses are still to be addressed. While the government is conducting reviews to cut compliance costs for businesses, new draft policies are creating additional barriers and burdens.