Containers of goods are loaded at a port in the northern region. (Photo: VietnamPlus) Hanoi (VNA) – Export difficulties are forecast to linger during the remaining months 2023 due to slow economic recovery globally. Experts point to the need to secure high economic growth, making it necessary to create more impetus for two other growth drivers – public investment and domestic consumption.
International organisations said 2023 will be a year full of difficulties for the Vietnamese economy due to the impact of both internal and external factors.
With a relatively open and global economy, it has been directly affected by the growth slowdown along with market fluctuations and policy changes, especially interest rate and exchange rate policies, of major economies.
In the country, certain recovery has been recorded thanks to issuing policies to tackle production and business obstacles, improving the investment climate, reforming administrative procedures, and accelerating digital transformation. However, challenges remain considerable, especially narrowed export markets, shortages of orders, high prices of fuel and input materials, as well as growing competition pressure and technical barriers in import markets, which have influenced production and business activities, as well as workers’ jobs and life.
At a meeting between the Government and localities on July 4, the Ministry of Planning and Investment (MPI) released two growth scenarios. In the first scenario, this year’s GDP growth may reach 6% and in the second, 6.5%.
It noted that Vietnam has a bright outlook for improving growth rates by fostering public investment, consumption, tourism, digitalisation, high technology and green transition, and capitalising on the shift of foreign investment flows.
A dock of the Dung Quat Shipyard after repairing an oil rig of the Dai Hung oil field. (Photo: VietnamPlus) During the first half of 2023, public investment continued to be the main impetus for infrastructure investment, which subsequently aided the recovery of businesses and the market.
If more than 95% of the over 711 trillion VND (30 billion USD) in public investment earmarked for 2023 is disbursed, it will substantially help achieve the growth target of 6.5%.
Disbursement results in recent years reached over 90%, providing a basis for the confidence that the Prime Minister-set targets are achievable, said Deputy Minister of Planning and Investment Tran Quoc Phuong.
Some experts recommended that to boost growth, it is important to step up investment in key transport infrastructure projects, sustainability projects that address climate change impacts and support sustainable development, and national target programmes.
Dr Hoang Van Cuong, member of the National Assembly’s Committee for Financial and Budgetary Affairs, perceived that public investment is a crucial growth driver, and it will greatly fuel growth once obstacles are tackled.
Dau Anh Tuan, Deputy Secretary General of the Vietnam Chamber of Commerce and Industry (VCCI), said exporters will continue facing difficulties in the last half of 2023 and beyond because of plummeting global demand.
In that context, trade promotion agencies, overseas trade offices, and related organisations should work harder to assist businesses, he suggested.
Trade promotion programmes have been held to stimulate consumption. (Photo: VietnamPlus) Tran Thanh Hai, Deputy Director of the Foreign Trade Agency at the Ministry of Industry and Trade, recommended businesses pay special attention to new trade barriers. These hurdles include trade defence measures, requirements relevant to labour and the environment, particularly the regulations on green trade.
It’s time for companies to review their material structures and technology to meet green trade requirements, he emphasised.
Experts also held that assistance for businesses, including by cutting the value added tax (VAT) by 2% for many goods and services, is also a useful tool for bringing down goods prices to fuel purchasing power./.
