Outstanding economic events of Vietnam in 2022

Hanoi (VNA) – Faster-than-expected GDP growth, the upgrade of Vietnam’s credit ratings, and big fluctuations in the corporate bond market are among notable events of the Vietnamese economy in 2022.

The following is the list of the top 10 defining events of the economy this year selected by the Vietnam News Agency’s Department of Economic News.

1. Issuance of six resolutions on regional socio-economic development and defence-security safeguarding

For the first time, the Politburo issued six resolutions on socio-economic development and defence-security safeguarding for 2030, with a vision to 2045, for six regions to tap into advantages of each region while enhancing connectivity within each region and among different regions.

At its third session, the 15th-tenure National Assembly also made investment decisions about five key transport projects expected to create an infrastructure breakthrough and connect regions nationwide.

2. Faster-than-expected GDP amid bleak world economic situation

Vietnam’s 2022 GDP growth is estimated at 7.5-8%, higher than the target of 6-6.5%. Meanwhile, inflation has been curbed to stand at 3.1-3.3%, and about 21 billion USD in foreign direct investment (FDI) disbursed, up over 8% year on year. Total exports and imports this year are valued at some 750 billion USD, rising 12.18%, according to the General Department of Vietnam Customs.

These are impressive results amid undermined growth momentum of the world economy and soaring inflation and living expenses.

3. Issuance of national master plan for 2021-2030, with vision to 2050

On October 25, the Government issued Resolution No 138/NQ-CP on the national master plan for 2021-2030, with a vision to 2050.

This was the first time a national master plan had been built on the basis of the Law on Planning and the resolutions and conclusions of the Party Central Committee, Politburo, and National Assembly on national socio-economic development in the time ahead.

The plan specifies the distribution and arrangement of space for socio-economic, defence, security, and environmental protection activities that are nationally and internationally important and strategically inter-regional in the territory, including the mainland, islands, archipelagoes, sea areas, and skies.

4. International organistions’ upgrade of Vietnam’s credit ratings

In 2022, three leading credit rating agencies in the world, namely Moody’s, Standard & Poor’s (S&P), and Fitch Ratings, made positive assessments of Vietnam’s credit ratings. On September 6, Moody’s upgraded Vietnam’s long-term issuer and senior unsecured ratings to Ba2 from Ba3 and changed the outlook to stable.

Vietnam was the only in the Asia-Pacific and one of the four countries in the world for which Moody’s raised the ratings. International organisations highly valued the country’s efforts in implementing macro-economic policies, keeping financial stability, and surmounting external shocks.

5. Continual adjustment of regulatory interest rates, exchange rates in over one month

For the first time, within more than one month (from September 23 to October 25), the State Bank of Vietnam continually adjusted the regulatory interest and exchange rates, with the regulatory interest rate and deposit interest rate ceiling raised twice, and the USD/VND trading band expanded from +/-3% to +/-5%.

The flexible governance by the Government and the central bank has helped contain inflation and enhance people, businesses, and investors’ trust in Vietnam’s investment climate.

Vietnam was the first country to have successfully developed and produced two African swine fever vaccines, NAVET-ASFVAC and AVAC ASF LIVE, which are the first commercial vaccines for this disease.

The Ministry of Agriculture and Rural Development is set to put the vaccines into use nationwide in early 2023. This success has also opened up prospects for exporting African swine fever vaccines.

7. Many new records in stock market

In 2022, VN-Index surpassed 1,500 points for the first time, but dropped to less than 900 points within over six months. Such fluctuations have turned VN-Index into one of the most volatile indexes in the world.

The market capitalisation on the Ho Chi Minh Stock Exchange (HoSE) hit a record of more than 6 quadrillion VND (254.5 million USD at the current exchange rate) in early April. In the first 11 months, individual investors opened nearly 2.5 million new securities accounts, the biggest number in the 22-year history of Vietnam’s stock market.

Amid the market’s hot growth and signs of stock price manipulation, authorities have taken strong actions to tighten discipline and improve the health of the market.

8. Strong fluctuations on corporate bond market

The corporate bond market, a medium- and long-term capital mobilisation channel, was negatively affected when investigations were launched into some cases involving wrongdoings in corporate bond issuance. Individual investors sold bonds before maturity due to concerns over businesses’ failure to repay debts.

To rectify activities in this market, the Government released Decree No 65/2022/ND-CP on September 16 to amend Decree No 153/2020/ND-CP that stipulates rules on corporate bond offerings. It also requested the Ministry of Finance to continue overhauling Decree 65 in order to guarantee publicity, transparency, the legitimate rights and interests of investors, along with the safety and security of the financial and monetary markets.

9. Electronic toll collection applied nationwide

On August 1, all expressways nationwide applied electronic toll collection (ETC). Piloted since 2015, the ETC application encountered difficulties after repeated delays. The concerted implementation of ETC is expected to help improve service quality, reduce travel time and expenses, ease traffic congestion and environmental pollution, promote convenience and transparency, and safe management and supervision costs.

10. Fuel shortages in many localities

In October and November, residents in many localities had to wait in long queues to buy fuel. This situation came as a result of complex developments in the global oil market, and it also revealed problems in the management of petrol and oil trading.

As directed by the Government, the Ministry of Finance, the Ministry of Industry and Trade, and the State Bank of Vietnam promptly carried out solutions to tackle this situation./.