Business leaders confident of Vietnam's 2023 prospects but need to keep watchful eye: PwC

CEOs in Asia Pacific remain bullish about Vietnam’s economic growth in 2023, projected up to 7.2%, according to PwC, despite the global downturn.

Among Asia Pacific CEOs surveyed by the corporate services firm, 69% believe global economic growth will decline over the next 12 months but Vietnam still shows high confidence in their eyes, PwC Vietnam said in its latest report Wednesday.

The finding is from PwC Vietnam’s “26th Annual Global CEO Survey - What matters to CEOs in Vietnam?”, which is based on PwC’s “26th Annual Global CEO Survey - Asia Pacific: Leading in the New Reality”.

Another finding is 53% of these Asia Pacific CEOs believe their current business models will not survive within the next decade. As such, businesses in Vietnam need to actively seek ways to transform their business to remain viable.

“Despite the tumultuous economic and political climate globally, the Asia Pacific region remains a major player in trade and economic activity, with Vietnam shining as a bright spot for growth,” said Mai Viet Hung Tran, assurance leader, PwC Vietnam.

CEOs in Vietnam are facing a unique set of challenges, just like their counterparts in the Asia Pacific region. They must navigate the current economic landscape while also preparing their businesses for the future, according to the PwC Vietnam report.

Balancing these two priorities is crucial for success in today's business world worldwide, it said. PwC Vietnam added the country’s economy is projected to expand 7.2%, compared with 8.02% achieved last year.

PwC, in its global CEO survey, finds that despite fading CEO confidence in the global economy, CEOs in Asia Pacific are far less pessimistic about the prospects of their own countries compared to their global counterparts.

In particular, CEOs in larger Asia Pacific countries show the highest level of optimism in their domestic growth: China (64%), India (57%), and Indonesia (50%), compared to 29% globally.

CEOs in Vietnam should place a focus on efficiencies to ensure continuity and competitiveness as the Southeast Asian nation is also exposed to changes and threats under the current economic environment, PwC said in its study.

The global firm also advised companies in Vietnam should embrace partnerships to drive sustainable growth as the nation is presenting a good opportunity for green growth, in which business leaders can seek to adopt more sustainable and ESG (environmental, social, and governance) practices through greater communication and collaboration with the government and other partners.