Vietnam maintains strong position among emerging countries: analysts

A corner Ho Chi Minh city at night. Photo courtesy of Vietnam News Agency
Vietnam has maintained a solid position among emerging nations owing to low public debt, positive GDP in 2021, and stable fiscal scale post-pandemic, according to the Asian Development Bank.
"Vietnam has not required large-scale fiscal intervention post-Covid, which is a common concern in other developing nations," said Andrew Jeffries, ADB Country Director in Vietnam.
Jeffries made the statement at the 4th Vietnam Economic Forum themed “Building an independent and self-reliant economy associated with integration in the new normal stage”, held in Ho Chi Minh City on Sunday.
Vu Thanh Tu Anh, dean of the Fulbright School of Public Policy and Management, also told the forum that Vietnam has maintained stability in a chaotic globe, like a typhoon shelter amid heavy seas.
The world economy declined in 2021, for the first time in 25 years, due to the pandemic. However, Vietnam has maintained a solid macro-economy, unlike what seen amid the world's previous recessions. This demonstrates the economy’s better resistance compared to previous years, Anh added.
"As a neighboring country, we can absorb the shifting investment flows from China. Many investors want to move out of China but remain close to this market," he noted.
Prime Minister Pham Minh Chinh said that the government will continue to prioritize economic reform associated with shifting growth patterns, digital transformation promotion, technical innovation, supply chain diversification, green development, and climate change mitigation.
In particular, he noted at the forum, three segments need to be restructured including investment with fragmented and unfocused public investment, financial markets with many weak credit institutions, and enterprises, with a focus on state-owned corporations.
The PM encouraged foreign investors to expand their investment in Vietnam, engage in high technology, and collaborate with domestic businesses.
However, Associate Professor Dr Tran Dinh Thien, former director of the Vietnam Institute of Economics, argued that "opportunities will also be challenges for a weak open economy."
He cited factors that contribute to Vietnam's unpredictability, including leading nations' economic conflicts and supply chain disruption caused by China's anti-epidemic policy and Western sanctions against Russia.
Jeffries also mentioned China's slowing economy and the U.S. likelihood of recession, both of which are key markets for Vietnam.
There must be a variety of alternate export markets for China or the U.S. Vietnam should climb the global supply chain, focusing on quality rather than quantity to attract high-tech, high-value investment. Higher education and vocational training efforts are also critical, he said.
Jeffries also advocated for maintaining public debt at a manageable level and prudent fiscal management.
As Vietnam is an open economy, it is impossible to completely avoid external shocks. Vietnam benefits more than many other economies in terms of economic integration, thus, don't allow this advantage to slip away, he added.
The IMF forecasts that the Russia-Ukraine conflict would only reduce Vietnam's GDP growth by 0.5% and boost inflation by 0.8%. However, Francois Painchaud, IMF Regional Resident Representative for Vietnam and Laos, recommended the country continue to implement macroeconomic stability measures, associated with institutional reform, data management, and transparency.
The IMF representative recommended strengthening in some of the economy’s aspects, including fiscal management, social security and climate change response, and management of public assets.
Fiscal management; social security and climate change response; and administration of public assets, were also advised by the IMF executive.
"In terms of monetary policy monitoring, it is vital to continue modernizing and strengthening the State Bank's analytical and forecasting capabilities; improve the banking sector by applying Basel II so that it absorbs economic shocks and handles bad debts," said Painchaud.
Credit rating agency S&P Global Ratings in late May revised up Vietnam’s long-term sovereign credit rating to BB+, a "stable" outlook.
Vietnam is one of only two economies in the Asia-Pacific region to have been upgraded since the beginning of the year, the other being Taiwan.
The S&P’s upgrade was based on Vietnam’s steady economic recovery prospects following the progressive lift of domestic and cross-border mobility restrictions, outstanding improvement in vaccination rates, and flexible shift in Covid-control policy.
The agency predicted Vietnam's real GDP growth of 6.9% in 2022, with a long-term trend of 6.5-7% from 2023 onward.
- Read More
Vietnamese banks leverage national data integration to reach customers
Banks in Vietnam are developing fully digital lending services, enabling customers to apply for and receive loans entirely through online platforms.
Banking - Mon, June 9, 2025 | 11:28 pm GMT+7
Vietnam’s garment-textile exports top $17 bln in five months
Vietnam’s garment and textile exports exceeded $17.58 billion in the first five months of 2025, up 9% year-on-year.
Companies - Mon, June 9, 2025 | 11:21 pm GMT+7
Vietnam's coastal hospitality real estate poised for a new wave of growth
As competition intensifies and the tourism sector rapidly evolves post-pandemic, hospitality real estate investors and hotel operators are adopting more innovative approaches to optimize operations and tap into new revenue streams, write Avison Young Vietnam analysts.
Consulting - Mon, June 9, 2025 | 11:01 pm GMT+7
Rules on private placement bond issuance should be tightened: Vietnam Finance Minister
Allowing only companies that have liabilities five times higher than their equity at maximum to issue bonds via private placement is a necessary move to mitigate risks and prevent abuse, said Finance Minister Nguyen Van Thang.
Finance - Mon, June 9, 2025 | 6:19 pm GMT+7
EV maker VinFast commits to purchasing all output for Vietnamese suppliers
Vietnamese electric vehicle maker VinFast has committed to purchasing all products for domestic suppliers that join its production chain.
Companies - Mon, June 9, 2025 | 5:21 pm GMT+7
Phat Dat affirms leadership role in southern Vietnam's property market following successful launch of La Pura project
The official launch of the La Pura project by Phat Dat Real Estate Development Corp on Sunday in the southern province of Binh Duong made a significant impact, with over 95% of the total inventory in the Zenia sub-zone successfully transacted.
Real Estate - Mon, June 9, 2025 | 4:07 pm GMT+7
Vietnam seeks Samsung partnership in AI-integrated chip design for data centers, telecom networks
Minister of Public Security Luong Tam Quang called on South Korean tech giant Samsung to strengthen its partnership with his ministry in developing Vietnam’s security industry.
Investing - Mon, June 9, 2025 | 3:13 pm GMT+7
Vingroup partners with e-commerce platform Shopee to develop logistics infrastructure
Vietnam’s leading multi-sector conglomerate Vingroup and Shopee, the country’s top e-commerce platform, on Friday signed an MoU to develop infrastructure for e-commerce fulfillment services, enhance digital connectivity between businesses and consumers, and build a sustainable digital ecosystem.
Companies - Mon, June 9, 2025 | 11:48 am GMT+7
Finish fund Pyn Elite spends $41.4 mln on MBB shares of MBBank in May
Finish investment fund Pyn Elite allocated an additional 3% of its portfolio (VND700 billion or $41.38 million) to 26 million MBB shares of MBBank last month, increasing the holding to 12.4%.
Finance - Mon, June 9, 2025 | 11:43 am GMT+7
Fund manager Eastspring Vietnam appoints new CEO
Eastspring Vietnam, one of the largest fund managers in the country by assets under management, last Friday appointed Nguyen Quoc Dung as its new CEO and legal representative.
Finance - Mon, June 9, 2025 | 9:03 am GMT+7
US issues preliminary decision on anti-dumping tariffs for Vietnamese shrimp
The US Department of Commerce (DOC) in the early morning of June 7 released preliminary results of its 19th administrative review (POR19) on anti-dumping duties for frozen warmwater shrimp imported from Vietnam.
Companies - Sun, June 8, 2025 | 8:30 pm GMT+7
U.S. Grains Council signs 5-year cooperation deal with Vietnam
The U.S. Grains Council (USGC) on Friday signed a five-year cooperation agreement with the Partnership for Sustainable Agriculture in Vietnam (PSAV), reaffirming its long-term commitment to Vietnam’s agricultural development.
Economy - Sun, June 8, 2025 | 5:13 pm GMT+7
Bamboo Capital announces senior personnel changes
Under a board of directors resolution effective last Friday, Vietnam's multi-sector conglomerate Bamboo Capital Group has a new deputy general director, while its first vice chairman Pham Minh Tuan resigned to focus on subsidiary Bamboo Energy.
Companies - Sun, June 8, 2025 | 4:05 pm GMT+7
Vietnam signs deals to import nearly $3 bln worth of US agricultural products
Vietnamese businesses accompanying Minister of Agriculture and Environment Do Duc Duy on a six-day visit to the U.S. signed multiple agreements to import nearly $3 billion worth of American agricultural products, expanding bilateral cooperation in the agricultural sector.
Economy - Sun, June 8, 2025 | 10:33 am GMT+7
EPC contract signed for O Mon IV thermal power project in southern Vietnam
An EPC contract signing ceremony for the O Mon IV thermal power project in Can Tho city took place on Friday, at the headquarters of state-owned Petrovietnam - the investor.
Energy - Sun, June 8, 2025 | 8:00 am GMT+7
Vietnam's agri major Hoang Anh Gia Lai ventures into mulberry cultivation, coffee production
After overcoming two major obstacles - debt and accumulated losses - Vietnam's agri major Hoang Anh Gia Lai JSC (HoSE: HAG) is charting a bold five-year strategic roadmap, introducing two new business segments: mulberry cultivation and coffee-tea production.
Companies - Sat, June 7, 2025 | 4:35 pm GMT+7