What achievements were posted by the industry and trade sector in 2022, particularly in industrial production and exports?

Vietnam implemented socio-economic development tasks last year amid rapid, complex, and unpredicted global change. Its economy was widely re-opened but with limited internal capacity, resilience, and adaptability, and is now in the process of development and transition, though long-existing shortcomings have posed difficulties and challenges for the economy in many fields.

However, under the proactive and flexible leadership of the Party and the State together with the involvement of all ministries, sectors, localities, businesses, and individuals, Vietnam’s socio-economic development in 2022 recovered strongly and saw many achievements, including a stabilized macro economy, major balances ensured, high economic growth, and controlled inflation.

One of the bright spots for the economy last year was that imports and exports continued to post new records amid a declining global economy. Vietnam’s total trade turnover reached $732 billion, a year-on-year rise of 10 per cent, of which export revenue hit $371.5 billion, up 10.5 per cent against 2021.

Another bright spot was the recovery of and strong growth in the domestic market, with many consumption promotion programs in place. Total revenue from retail trade and services was estimated to have increased 21 per cent year-on-year.

What is your forecast for the economy in 2023?

I think the industry and trade sector will continue facing many difficulties and challenges in 2023. The prolonged Russia - Ukraine conflict will cause the supply and price of energy to continue to be unpredictable. Geopolitical conflict and increasingly fierce competition between major economies together with inflation, economic recession, and global growth slowdown are still threats to economic security. Large and traditional import and export markets have narrowed and enterprises continue to find it hard to access markets and capital.

Inside Vietnam, although the economy has recovered remarkably, growth still slowed in the closing months of 2022. The impact of the global economy on Vietnam is clear with the economy opened widely, affecting the implementation of targets set by the National Assembly and the government.

Free trade agreements (FTAs) have become a lever for Vietnam’s export growth in recent times. What do you expect from FTAs this year?

Vietnam’s participation in FTAs, especially new-generation FTAs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EUVFTA), and the UK-Vietnam Free Trade Agreement (UKVFTA), has helped it maintain impressive export growth while limiting the negative impact from the pandemic on the country’s trade and economic performance.

FTAs will continue to be effective in 2023, particularly in markets of potential such as Europe, Canada, and Mexico.

I believe that State management agencies and the business community will join hands to ensure that FTAs continue to be a driving force for exports, economic development, and the competitiveness of Vietnamese businesses, contributing to creating brands for Vietnamese products in the international arena.

The industry and trade sector has set a target of 8-9 per cent year-on-year growth in industrial production this year and 6 per cent in export revenue. What measures will the ministry adopt this year to fulfill the targets?

The sector will focus on three main tasks.

Firstly, regarding industrial production, we will focus on supporting businesses to seek sources of material supplies for production amid disrupted supply chains. The ministry will also continue implementing programs to connect domestic enterprises to join the supply chains of global FDI businesses and corporations.

Secondly, concerning exports and imports, it will speed up the exploitation of FTAs, focusing on new markets and markets of potential, and diversifying all markets, supply chains, and export products.

Thirdly, regarding the development of the domestic market, the ministry will coordinate with localities and businesses in the field of distribution and logistics.