Vietnam's economy: a beacon in the global economic landscape

Continuing challenges and opportunities

Evaluating Vietnam's economic state halfway through the 13th Party Congress term, Prof. Dr. Vu Trong Lam, Director and Editor-in-Chief of the National Political – Truth Publishing House, highlighted the nation's numerous difficulties and challenges, including some never-before-seen issues. Internationally, the extended COVID-19 pandemic has inflicted severe consequences, disrupting most supply chains; rising inflation, tighter monetary policies, and increased interest rates have led to reduced growth and heightened risks in financial and currency markets... Intensified strategic competition among major nations, and the complex Russia-Ukraine conflict, have profoundly impacted global political, economic, and social security. Nationally, the impacts of climate change, natural disasters, and the severe aftermath of the COVID-19 pandemic have significantly affected most sectors, posing substantial challenges and demanding attention to both newly emerging complex issues and persistent weaknesses from previous years... Through unity and determination within the political system, Vietnam has progressively overcome difficulties, achieving significant results. It has essentially met the dual goal of pandemic control and socio-economic recovery and development; building an independent, self-reliant economy while actively and effectively integrating into the global economy. Vietnam shines as a bright spot in the global economy's "gray picture". Specifically, in 2021, GDP growth reached 2.56%, outperforming many global economies; in 2022, GDP growth hit 8.02%, the highest from 2011 to 2022. Total import-export turnover reached a record high of 732 billion USD, up by 10% compared to 2021. Vietnam remains among the top 25 global economies in trade. The GDP growth forecast for 2023 is over 5%, although lower than the target (approximately 6.5%), but still notably high compared to many regional and global countries. "Global and domestic forecasts from now until the end of the term indicate significant challenges and difficulties. Worldwide, strategic and economic competition, trade wars continue to intensify; military conflicts such as Russia - Ukraine, Israel - Hamas evolve complexly, impacting geopolitical and geo-economic landscapes, energy security, and global supply chains; science - technology and the fourth industrial revolution advance rapidly, posing both opportunities and challenges to all nations and peoples; climate change, natural disasters, pandemics, and both traditional and non-traditional security issues increasingly exert a strong, multifaceted impact, potentially threatening the stability and sustainability of the world, region, and our country...", Prof. Dr. Vu Trong Lam further elaborated.

The GDP growth projection for 2023 is over 5%, remaining high compared to many countries in the region and worldwide. Photo: H. Diu

Pursuing socio-economic goals

To achieve socio-economic objectives in the latter half of the 13th Party Congress term and beyond, various solutions are proposed for sustainable development, particularly in reviving the real estate market; stabilizing the financial market, addressing corporate bond issues; and accelerating the resolution of debt, divestment, equitization, and restructuring of state-owned enterprises… Notably, to foster a safe, healthy, sustainable real estate market, adherence to the Prime Minister's principle "no one rescues anyone" is essential, ensuring a balance of interests, addressing private debt without increasing public debt, and minimizing adverse impacts in controlling speculation and market manipulation; effective, accurate, timely, objective, and honest communication is vital… According to Mr. Lai Xuan Mon, Member of the Party Central Committee, Permanent Deputy Head of the Central Propaganda Department, Chairman of the Central Party Agencies' Science Council, it is crucial to holistically enhance development institutions, especially those fostering a market economy with a socialist orientation. Priority should be given to comprehensively and qualitatively improving the legal system, mechanisms, policies, creating a favorable, healthy, and equitable business and investment environment for all economic components, and promoting innovation. Emphasis on the development of human resources, particularly high-quality human resources; breakthrough mechanisms and policies are needed to attract and utilize intellectuals, especially elite scholars, leading experts, and national talents; and focus on training and nurturing young intellectuals and successors.

Also, it is imperative to augment research and development capabilities, technology transfer, and application, especially harnessing the achievements of the fourth industrial revolution in all societal aspects, prioritizing key sectors and fields with potential and advantages to catalyze development, and creating breakthroughs in productivity, quality, efficiency, and competitiveness of the economy...