Topic: economy

Vietnam’s economy has recovered strongly post-pandemic with major balances and macroeconomic stability ensured.

The 44th Meeting of The ASEAN Ministers on Agriculture and Forestry (The 44th AMAF) took place online on October 26, hosted by the Lao Government. Minister of Agriculture and Rural Development Le Minh Hoan told the meeting that Vietnam is accelerating agricultural restructuring, transforming from “production thinking” to “economic thinking” and moving towards the values created by green transformation, green consumption, and the green economy.

Mr. Furusawa Yasuyuki, General Director of AEON Vietnam, said the company has many opportunities to develop and expand in Vietnam. The country has a high-growth economy and young population, similar to Japan 40 or 50 years ago when AEON Japan developed strongly. This advantage will become a driving force for AEON to develop in Vietnam.

Many attending a recent HSBC conference expressed optimism about Vietnam’s economy now and into the future.

Vietnam’s logistics costs currently stand at about 20 per cent of GDP, or double the world and regional average. This greatly harms the economy’s macro-economic stability, competitiveness, and investment attractiveness. Reducing logistics costs has therefore become a pressing need.

Businesses still have faith in Vietnam’s ability to recover from the current woes.

Amid a plunging local stock market and a growing risk of global crisis, a number of foreign funds such as Dragon Capital, VinaCapital, and Dynam Capital have expressed a belief that Vietnam’s economy is superior to others around the world. The Economist magazine has listed countries most at risk from imported inflation and supply chain disruptions, and Vietnam is not among them.

Night-time economies have been gradually promoted in Vietnamese tourist destinations after a development project was approved by the Prime Minister. Vi Thanh city in the Mekong Delta’s Hau Giang province holds many advantages for developing its night-time economy. The city is focusing on investing in its tourism sector, contributing to improving efficiency at tourism businesses, prolonging stays, and increasing average spending and visitor satisfaction.

Figures from the Da Nang Statistics Office show that the central city recorded high socio-economic growth in the first nine months of 2022. Its gross regional domestic product (GRDP) growth was estimated at 16.76 per cent year-on-year, with the service sector rising 21.69 per cent, the industry-construction sector 7.83 per cent, and the industrial sector 9.09 per cent. Da Nang’s economic recovery continues apace.

On October 3, while receiving Ms. Era Dabla-Norris, Division Chief in the International Monetary Fund (IMF)’s Asia and Pacific Department, who is visiting Vietnam, Prime Minister Pham Minh Chinh proposed that the IMF actively support Vietnam in developing its green economy as well as energy transformation, renewable energy development, and digital transformation. Ms. Dabla-Norris expressed her appreciation of Vietnam’s monetary and fiscal policies and expressed confidence in a positive outlook for Vietnam’s economy despite the external shocks.