Economy in Vietnam: New Signals
Table of Contents
Vietnam’s economic situation in May recorded many positive changes compared to April and the whole first quarter of 2023. The signals show that the economy in Vietnam growth may be more positive in the second quarter. However, there are still many worries in the context of general difficulties in the world and in the region.
The economy in Vietnam recorded many positive changes
On the morning of June 3, speaking at the Government’s online conference with localities and the Government’s regular meeting in May 2023, industrial production and exports in May continued to record changes compared to April. and the first quarter of 2023.
Accordingly, in the context of the world having many complicated changes, right from the beginning of the year, the Government and the Prime Minister have issued many policies, solutions, and drastic and timely direction. As a result, international organizations have positively assessed Vietnam’s economic prospects. In particular, Vietnam has entered the group of 10 emerging logistics markets of the world.
In May, industrial production and exports both changed compared to April and Q1. The signals show that economic growth may be more positive in the second quarter. However, due to difficulties and challenges. in the world, production, and business, enterprises still face many difficulties, especially in terms of cash flow, market, and orders; Many investment projects and real estate projects have been delayed, delayed, etc.
In May, the Prime Minister approved the Electricity Master Plan VIII, freeing up resources for renewable energy projects, and contributing to ensuring national energy security.
The Prime Minister also issued Official Letter No. 469/CD-TTg, No. 470/CD-TTg, which directed the drastic implementation of tasks and solutions to remove difficulties for production, business, and the real estate market. ;
The Prime Minister also issued Official Letter No. 436/CD-TTg urging the handling of proposals and recommendations of localities, ministries, and branches; Public Dispatch No. 397/CD-TTg on proactively responding to heat, drought, water shortage, saltwater intrusion; Directive No. 15/CT-TTg directing to accelerate the progress of planning work,…
Although the overall results of the 5 months have been improved, in the coming time, there is still a need for drastic and proactive solutions for directing and operating and coordinating more closely and harmoniously.
In the report, the Ministry of Planning and Investment stated that, under the drastic and close direction and management of the Government, the macroeconomic situation continued to be stable, inflation was controlled, and the large is guaranteed.
The average consumer price index (CPI) in 5 months increased by 3.55% over the same period, continuing the downward trend (4 months increased by 3.84%), even after adjusting the electricity price by 3% from the same date. 4/5/2023. Besides, inflation also turned positive.
The currency market is basically stable; lending interest rates decrease; stabilize exchange rates in line with market movements; secure banking system. State budget revenue in 5 months reached 48% of the estimate, of which domestic revenue reached 48.4% of the estimate.
Import-export, export, and import turnover in May were estimated to increase by 5.3%, 4.3%, and 6.4% respectively over the previous month (in April, it decreased by 7.7%, 7.3 respectively. %, and 8.1 %). In general, the trade surplus in 5 months is estimated at 9.8 billion USD (the same period in 2022 is 0.24 billion USD).
Registered FDI in May reached nearly 2 billion USD, 2.2 times higher than the same period last year. The 5-month accumulation reached 10.86 billion USD, equaling 92.7% over the same period in 2022 (4 months equaling only 82.1% over the same period).
Production and business activities continued to change positively. Stable agricultural production; aquaculture production in 5 months increased by 2.9% over the same period last year. The index of industrial production (IIP) in May was estimated to increase by 2.2% over the previous month, of which the processing and manufacturing industry increased by 2.9%. Total retail sales of consumer goods and services in May were estimated to increase by 11.5% over the same period last year, in the first 5 months, an increase of 12.6%. This is the highest growth rate over the same period in the period from 2015 onwards.
The backlog issues and obstacles were gradually removed, the corporate bond and real estate markets had positive changes, and the disbursement of public investment capital was accelerated. The above results have positively supported, step by step opening up cash flow for businesses, improving the capital absorption capacity of the economy in Vietnam.
Problems and Solutions
Despite the achieved results, the Minister of Planning and Investment said that the great difficulties and challenges of the world and the region will continue to have many impacts on businesses, production, and business activities. , export, attract investment, … in the country.
Worryingly, the tolerance of domestic enterprises after the Covid-19 epidemic has reached its limit. Therefore, it is necessary to have drastic and proactive solutions for directing and operating, and coordinating more closely and harmoniously from the Government to ministries, departments, branches, and localities.
At the same time, promote the achieved results, take advantage of all resources and opportunities, take advantage of the time to recover the economy in Vietnam, and implement solutions in the medium and long term such as green growth, digital economy, and economic development. circular economy…
The Ministry of Planning and Investment also proposed key solutions, including focusing on monitoring the world situation, removing difficulties and obstacles, and supporting businesses and people.
Proposing the Ministry of Finance to strictly manage revenue sources and thoroughly save expenses. In addition, soon propose fiscal policies, reduce taxes and fees, extend the deadline for paying excise tax and registration fees, accelerate VAT refund, and facilitate import and export procedures. export. There are feasible solutions, that definitively deal with the problems and limitations of the corporate bond market.
Proposing the State Bank to regulate and reduce interest rates; stabilize the foreign currency market, and exchange rate, and review credit packages with timely and favorable lending conditions.
The Ministry of Planning and Investment shall review regulations on business conditions, conduct specialized inspections, and propose specific plans to amend, replace, abolish, and amend mechanisms and policies to attract FDI.
You can read the previous article here: Travel Visa to Vietnam: 7 Important Information
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Q: What is the currency in Vietnam?
The currency in Vietnam is the Vietnamese dong (VND). The exchange rate as of February 2023 is around 23,000 VND to 1 USD.
Q: What are the main industries driving Vietnam’s economy?
Vietnam’s economy is driven by several key industries, including manufacturing, agriculture, and services.
Q: What is the current state of the economy in Vietnam?
Vietnam’s economy has been experiencing rapid growth in recent years, with a 7.11% growth rate in 2019 before being impacted by the COVID-19 pandemic in 2020.