Vietnam Today

With Vietnam’s economy facing many challenges from the Russia - Ukraine conflict, high commodity prices, and tightening monetary policy from the US Fed, VnDirect has lowered its GDP growth forecast for 2022 from 7.5 per cent to 7.1 per cent. However, it still believes that Vietnam will be among the fastest-growing economies in the Asia-Pacific region this year.

On April 14, Deputy Prime Minister Le Minh Khai approved the Strategy for Public Debt to 2030, by which time public debt is to not exceed 60 per cent of GDP, government debt is to not exceed 50 per cent of GDP, and the country’s national external debt is to not exceed 45 per cent of GDP. The strategy also sets out renovations to the national external debt management method in line with international practices.

The national environmental protection strategy to 2030 and vision to 2050, approved by Deputy Prime Minister Le Van Thanh on April 13, sets a goal of economic development being in harmony with nature, with growth not sacrificing the environment; developing a circular green and low-carbon emission economy; boosting sustainable production and consumption; implementing environmental zoning; and improving the efficiency of strategic environmental assessment, environmental impact assessments, and management based on environmental licenses.

Prime Minister Pham Minh Chinh held a phone conversation with Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum (WEF), on April 13. The two exchanged assessments and comments on global trends and challenges, solutions to economic recovery, the promotion of green growth and sustainable development, and Vietnam - WEF relations in the time to come.

Given the current trajectory, it is likely that Vietnam will find it difficult to fulfill its COP26 commitments, according to Mr. Bruce Delteil, Managing Director of McKinsey in Vietnam. It therefore needs to quickly set priorities for a roadmap to bring net emissions to zero by mid-century.

Deputy Prime Minister Le Minh Khai has approved the public debt management program for the 2022-2024 period and the plan for public debt repayment and borrowing in 2022. Total government borrowings in the 2022-2024 period will be VND2 quadrillion ($87.6 billion) and total debts VND1.1 quadrillion ($48 billion). The government will borrow nearly VND674 trillion ($29.5 billion) and repay nearly VND336 trillion ($14.7 billion) in debts this year.