Corporate executives bullish over Vietnam economic prospects

By Kim Ngan
Sun, January 1, 2023 | 12:02 am GMT+7
A corner of Cat Lai Port in HCMC, the largest port complex in Vietnam. Photo courtesy of the port.

A corner of Cat Lai Port in HCMC, the largest port complex in Vietnam. Photo courtesy of the port.

Vietnam's economic outlook in 2023 is promising, and technology, energy, goods processing, pharmaceuticals and manufacturing are among key sectors that will greatly attract FDI, say some corporate leaders when talking to The Investor.

Alain Cany, chairman of EuroCham Vietnam

Despite rising global development risks, Vietnam's prospects for 2023 and beyond are promising.

No one can deny that the European business community feels less optimistic now compared to the start of 2022. Vietnam's economy faces numerous challenges, including higher commodity prices, supply chain disruptions, and a decline in manufacturing. Meanwhile, even though export-oriented manufacturing is expected to fuel the economy in 2023, weak export demand from advanced economies will limit growth and cause short-term hardships.

Still, Vietnam has proven to be resilient and better positioned than many of its peers. As a result of its low inflation, improving credit rating, impressive FDI performance, growing consumer demand and high GDP growth, Vietnam's economy will likely remain the best performing in Southeast Asia. With all these factors in mind, 2023 is expected to be another exciting year for investors in Vietnam.

Trade ties between the EU and Vietnam are also expected to grow in 2023 as the EU-Vietnam Free Trade Agreement reduces and eliminates tariffs further. This will have a positive impact on Vietnam’s green transformation, particularly in offshore wind and solar development, where investors from Europe are showing a great deal of interest.

To help our members maximize investment in these fields and others, we continue to encourage the Vietnamese government to remove administrative obstacles for foreign companies and work permit hurdles for foreign experts. By resolving these issues, Vietnam will stand stronger and be recognized as a leading global business and investment destination.

Adam Sitkoff, executive director of AmCham Hanoi

Vietnam has managed various global challenges effectively, including the continuing pandemic, a downturn in global consumer demand, and unusually high inflation among many key trading partners. Despite global headwinds, I am optimistic about Vietnam’s prospects for continued growth in 2023. There are great opportunities to attract new investment as multinational companies seek to diversify global supply chains. This often requires companies to send foreigners here to meet with partners and make investment decisions.

Unfortunately, there is still uncertainty over visas and the conditions and applications for work permits for foreigners coming to work here. In addition, flawed visa policies have prevented many foreign tourists from contributing to Vietnam’s economic recovery.

These types of administrative burdens can be solved by good policy and effective decision-making. As we start the new year with uncertainties in the economy, there are actions the government can implement right now to help increase productivity and reduce the costs, complications, and risks of doing business here.

One of the most important factors for American investors is to see a fair, transparent, predictable, and streamlined regulatory environment that values innovation - not only to attract new investment, but also to maintain and grow the investment already present.

As major investors here, American companies have an interest in Vietnam’s continued success. High-quality foreign investment not only helps grow Vietnam’s economy, but also helps grow the entire ecosystem of local companies and entrepreneurs.

I will work hard in 2023 to lower barriers to trade, to help the Vietnamese government make it easier to do business, and to create a high-standard and stable business environment so that all investors have access to the great opportunities coming this year.

Oliver Massmann, managing partner of Duane Morris LLP

Vietnam will continue its growth in 2023 but this growth will slow down compared with 2022. This is partly because lifting of restrictions has gradually ceased and trade has gradually returned to the state before Covid-19.

However, emerging factors might negatively affect the growth of Vietnam’s economy, especially external factors. These include: (1) unexpected economic recession among major Vietnam’s trading partners like the United States, EU (Germany, Italy, etc.); (2) China’s zero-Covid policy; and (3) rising inflation and interest rates.

Regarding (1), economic downturn will lead to lower consumer demand in the markets, which in turn will lower demand for Vietnam’s exported goods. We note that export value to the United States and EU accounts for almost 50% of Vietnam’s total export value.

Regarding (2), China’s zero-Covid policy has led to closure of a number of factories and power cuts. This will definitely influence Vietnam’s manufacturing sector as most of its input materials (textiles, chemicals, electronics parts and components, etc.) are sourced from China. Vietnam has to find other more costly material sources and manufacturing costs will increase.

Regarding (3), public confidence in the banking and finance sector has decreased, especially after recent SCB turmoil. Rising interest rates are one of the measures to mobilize capital from the population to meet lending demand and ensure capital reserve criteria by the SBV. Rising interest rates increase costs and affect business expansion plans, which is also a negative factor for Vietnam’s economy.

Despite the above factors, abundant public investment capital as well as a strong recovery in international tourist arrivals will continue to contribute to Vietnam’s economic growth in 2023

Technology, energy, goods processing, pharmaceuticals and manufacturing sector are among key sectors that will greatly attract foreign investment in 2023.

Comments (0)
  • Read More
Petrovietnam affirms plan to build eco-energy and industrial center in southern Vietnam

Petrovietnam affirms plan to build eco-energy and industrial center in southern Vietnam

Petrovietnam plans to develop an eco-energy and industrial center project in Can Tho city, the "heart" of the Mekong Delta, its representatives stated on Monday.

Energy - Wed, September 17, 2025 | 11:49 am GMT+7

Thailand - one of Southeast Asia’s fastest-growing markets for AI

Thailand - one of Southeast Asia’s fastest-growing markets for AI

Thailand has emerged as one of Southeast Asia’s fastest-growing markets for artificial intelligence (AI), with OpenAI reporting that weekly active users of ChatGPT in the country have quadrupled over the past year.

Southeast Asia - Wed, September 17, 2025 | 10:40 am GMT+7

MoMo co-founder urges single fintech regulator, faster sandbox in Vietnam

MoMo co-founder urges single fintech regulator, faster sandbox in Vietnam

Vietnam should establish a single regulatory focal point and adopt a more flexible sandbox regime to accelerate fintech innovation, said Nguyen Ba Diep, co-founder of e-wallet giant MoMo.

Finance - Wed, September 17, 2025 | 8:00 am GMT+7

Indonesia to end incentives for imported CBU BEVs in 2026

Indonesia to end incentives for imported CBU BEVs in 2026

The Indonesian government has confirmed that it will stop providing incentives for imported completely built-up (CBU) battery electric vehicles (BEVs) from 2026.

Southeast Asia - Tue, September 16, 2025 | 9:44 pm GMT+7

Aquatic sector advised to navigate challenges, secure exports to EU, US

Aquatic sector advised to navigate challenges, secure exports to EU, US

Despite positive production signals with growth in 2025 projected at 4.25%, Vietnam's aquatic sector is facing mounting export pressures, particularly strict technical barriers in major markets such as the EU and the U.S.

Companies - Tue, September 16, 2025 | 9:41 pm GMT+7

Vietnam pledges favorable conditions for UK businesses

Vietnam pledges favorable conditions for UK businesses

Finance Minister Nguyen Van Thang has affirmed Vietnam’s commitment to improving its investment environment and creating favourable conditions for foreign enterprises, including those from the UK.

Companies - Tue, September 16, 2025 | 9:29 pm GMT+7

Lotte Shopping plans to open more shopping malls in Vietnam

Lotte Shopping plans to open more shopping malls in Vietnam

South Korean retail giant Lotte Shopping has unveiled plans to open an additional two to three large-scale shopping malls in major Vietnamese cities by 2030, underscoring the country’s growing role in the group’s international expansion strategy.

Companies - Tue, September 16, 2025 | 9:25 pm GMT+7

Vietnam ratifies WTO Agreement on Fisheries Subsidies

Vietnam ratifies WTO Agreement on Fisheries Subsidies

Vietnam officially deposited its instrument of ratification of the Agreement on Fisheries Subsidies at the WTO General Council’s special session in Switzerland on Monday.

Companies - Tue, September 16, 2025 | 9:21 pm GMT+7

What makes NobleGo - Vietnam’s first home-bidding livestream platform - so notable?

What makes NobleGo - Vietnam’s first home-bidding livestream platform - so notable?

NobleGo – Vietnam’s pioneering AI-powered livestream real estate bidding platform developed by Sunshine Group – has completed its first 20 livestream sessions.

Real Estate - Tue, September 16, 2025 | 4:53 pm GMT+7

Japanese retailer Aeon to debut another northern Vietnam shopping mall by end-2026

Japanese retailer Aeon to debut another northern Vietnam shopping mall by end-2026

Japanese-backed Aeonmall Vietnam is ramping up construction on its Aeon Mall Ha Long project in Quang Ninh province, home to Ha Long Bay, with an aim to open it to the public by end-2026.

Industries - Tue, September 16, 2025 | 3:54 pm GMT+7

Hanoi terminates Vinaxuki auto plant project, repurposes land for commercial complex

Hanoi terminates Vinaxuki auto plant project, repurposes land for commercial complex

A long-stalled automotive manufacturing project by Xuan Kien Auto JSC (Vinaxuki) has been officially terminated by Hanoi authorities, and the reclaimed land in Phuc Thinh commune will be repurposed for a new commercial and service complex.

Industries - Tue, September 16, 2025 | 2:44 pm GMT+7

Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Authorities in the central province of Quang Tri are evaluating a proposal from Power Generation JSC 1 (EVNGENCO 1), a subsidiary of state utility Vietnam Electricity (EVN), to take over the Quang Tri thermal power plant project, following the withdrawal of Thai investor EGATi.

Energy - Tue, September 16, 2025 | 1:44 pm GMT+7

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata VN, the Vietnam arm of Thailand’s leading industrial park developer Amata, has approved a plan for its subsidiary Amata City Long Thanh Urban JSC (ACLT) to sell its remaining 51% stakes in two entities to local developer Novaland-linked buyers.

Real Estate - Tue, September 16, 2025 | 12:19 pm GMT+7

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam has fulfilled the criteria for a stock market status upgrade by FTSE Russell through reforms aimed at facilitating foreign investment inflows into its market, said Minister of Finance Nguyen Van Thang.

Economy - Tue, September 16, 2025 | 9:36 am GMT+7

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

The Ministry of Finance is proposing a key reform that would allow commercial banks to invest in and distribute mutual fund certificates, as part of a broader plan to restructure the investor base and foster the development of Vietnam’s fund management industry.

Finance - Tue, September 16, 2025 | 8:00 am GMT+7

E-commerce boom a major driver of Vietnam's packaging paper industry growth

E-commerce boom a major driver of Vietnam's packaging paper industry growth

Vietnam's paper packaging industry is entering a period of strong growth, with an average annual growth rate forecasted at 10% until 2030.

Companies - Mon, September 15, 2025 | 10:20 pm GMT+7