Vietnam Shines as a 'Bright Spot' in the Global Economy, says National Assembly

During a press conference at the 2023 Vietnam Socio-Economic Forum, Vu Hong Thanh, the head of the National Assembly’s Economic Committee, lauded Vietnam as a bright spot amidst the current gloomy global economic landscape. Thanh emphasized that the country’s economy has remained stable throughout the year, with inflation under control at a modest 3.1% in the first eight months.

Vietnam has effectively managed public, foreign, and government debts, resulting in an improved credit rating. Notably, Moody’s raised Vietnam’s rating last year, making it the sole Southeast Asian nation to achieve such an upgrade. Thanh affirmed, “Vietnam’s economy continues to shine brightly in the overall dim outlook of the global economy.”

The government reported a significant growth in GDP during the second quarter, with a 4.14% increase compared to the previous quarter, indicating a positive trajectory. Moreover, August witnessed an 18% year-on-year rise in the establishment of new businesses, totaling over 14,000. The cumulative number of new businesses for the year stands at 103,700, reflecting a 2.3% growth.

Furthermore, retail sales of goods and services experienced a 7.6% surge in August. While the Ministry of Planning and Investment acknowledges that the recovery process may not yield immediate drastic changes, they affirm that the economy is indeed rebounding.

However, Thanh acknowledged certain challenges that need to be addressed, such as the deceleration of investment and trade growth. He also highlighted the difficulty in accessing credit. Nguyen Duc Hien, the deputy head of the NA Economic Committee, expressed concerns regarding the unlikelihood of achieving certain economic targets this year, particularly in labor productivity. Hien emphasized the importance of focusing on long-term sustainable growth, with labor productivity as a core component.