Vietnam maintains strong position among emerging countries: analysts

By Phan Ca
Mon, June 6, 2022 | 11:07 am GMT+7
A corner Ho Chi Minh city at night. Photo courtesy of Vietnam News Agency

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.

Comments (0)
  • Read More
Vietnam needs large, specialized logistics centers to compete better: official

Vietnam needs large, specialized logistics centers to compete better: official

Vietnam needs large-scale, specialized logistics centers that will enable greater competitiveness of local economies and enterprises, says Tran Thanh Hai, deputy head of the Ministry of Industry and Trade's agency of foreign trade.

Economy - Sun, November 3, 2024 | 11:00 am GMT+7

Vietnam manufacturing sector sees 35% increase in Q3 job orders: Adecco

Vietnam manufacturing sector sees 35% increase in Q3 job orders: Adecco

Vietnam’s manufacturing and sourcing sectors saw a substantial 35% year-on-year increase and a 52% quarter-on-quarter increase in Q3/2024 job orders, global workforce solutions provider Adecco said in a reseach report released Thursday.

Economy - Sun, November 3, 2024 | 9:00 am GMT+7

Construction majors to continue capitalizing on public investment projects

Construction majors to continue capitalizing on public investment projects

Vietnamese construction giants are expected to continue capitalizing on public investment projects for the remainder of this year after delivering strong performances in the third quarter, analysts say.

Companies - Sun, November 3, 2024 | 8:00 am GMT+7

Former Government Office chairman receives $7,900 bribe from property project

Former Government Office chairman receives $7,900 bribe from property project

Mai Tien Dung, former Minister-Government Office Chairman, received a bribe worth VND200 million ($7,900) from Nguyen Cao Tri, owner of the Dai Ninh eco-resort and urban area project in Lam Dong province.

Society - Sat, November 2, 2024 | 9:13 pm GMT+7

Thai food giant CP enters public-private partnership to promote food system transformation

Thai food giant CP enters public-private partnership to promote food system transformation

Thai-invested C.P. Vietnam Livestock JSC and the Partnership for Sustainable Agriculture Vietnam (PSAV) signed a memorandum of understanding Friday on working together to advance sustainable agriculture in the country.

Companies - Sat, November 2, 2024 | 7:16 pm GMT+7

Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year

Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year

Vietnam’s central province of Quang Ngai will work with the investor to have construction of VSIP II Quang Ngai, a facility based on the Vietnam-Singapore Industrial Park (VSIP) model, begin in August 2025.

Industrial real estate - Sat, November 2, 2024 | 3:47 pm GMT+7

Vietnam likely to grow 6.5% in 2024-2025: VinaCapital

Vietnam likely to grow 6.5% in 2024-2025: VinaCapital

VinaCapital, among the biggest foreign-run asset managers in Vietnam, has forecast the country’s economy to achieve 6.5% growth in both 2024 and 2025, with the composition of the expansion to change to more domestically driven factors next year.

Economy - Sat, November 2, 2024 | 2:00 pm GMT+7

Major Vietnamese developer Novaland appoints new CEO

Major Vietnamese developer Novaland appoints new CEO

Duong Van Bac, who joined Novaland as chief financial officer in August 2023, has been appointed general director, starting Friday.

Companies - Sat, November 2, 2024 | 10:24 am GMT+7

Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3

Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3

Ho Chi Minh City-based Bamboo Capital Group recorded an after-tax profit of VND331.2 billion ($13.1 million) in the third quarter of 2024, an astounding 36-fold expansion year-on-year.

Southeast Asia - Sat, November 2, 2024 | 9:41 am GMT+7

ThaiBev to bag $54 mln from Sabeco’s upcoming dividend payout

ThaiBev to bag $54 mln from Sabeco’s upcoming dividend payout

Vietnam Beverage, wholly owned by Thai Beverage (ThaiBev) will rake in VND1,374 billion ($54.26 million) worth of dividend from Ho Chi Minh City-based top brewer Sabeco.

Companies - Sat, November 2, 2024 | 9:13 am GMT+7

Steel heavyweight Hoa Phat pours over $2 bln into central Vietnam complex

Steel heavyweight Hoa Phat pours over $2 bln into central Vietnam complex

Leading Vietnamese steelmaker Hoa Phat had invested more than VND52.5 trillion ($2.08 billion) in its Dung Quat Iron and Steel Integrated Complex (Dung Quat 2) in the central province of Quang Ngai as of Q3/2024.

Industries - Sat, November 2, 2024 | 8:00 am GMT+7

Vietnam becomes Australia’s fastest-growing inbound market

Vietnam becomes Australia’s fastest-growing inbound market

The number of Vietnamese tourists to Australia has grown significantly after the Covid-19 pandemic, with nearly 178,000 reported in the 12 months to August 2024, according to a Friday press release by the Australian Minister for Trade and Tourism’s Office.

Southeast Asia - Fri, November 1, 2024 | 10:02 pm GMT+7

Study finds shift in Thai consumers’ spending patterns

Study finds shift in Thai consumers’ spending patterns

Consumers in Thailand are shifting their spending focus to experiences and investments, according to the latest ASEAN Consumer Sentiment Study (ACSS) by United Overseas Bank (UOB).

Southeast Asia - Fri, November 1, 2024 | 10:00 pm GMT+7

Energy security, digitalization key to Indonesia's economic growth

Energy security, digitalization key to Indonesia's economic growth

The Indonesian government is prioritizing long-term economic growth through energy security, digitalization, and natural resource industrialization, according to Deputy Minister of Finance Thomas Djiwandono.

Southeast Asia - Fri, November 1, 2024 | 9:58 pm GMT+7

Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM

Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM

Prime Minister Pham Minh Chinh’s freshly ended six-day trip to the UAE, Saudi Arabia and Qatar has produced important outcomes, demonstrating the growing relations between Vietnam and the three Middle-East countries, Deputy Prime Minister and Foreign Minister Bui Thanh Son told the Vietnam News Agency.

Politics - Fri, November 1, 2024 | 9:25 pm GMT+7

Vietnam, Qatar look to tap potential for energy, oil & gas collaboration

Vietnam, Qatar look to tap potential for energy, oil & gas collaboration

Vietnam and Qatar have recognized the significant potential for further collaboration in multiple sectors such as energy, oil and gas, especially LNG, agriculture, Halal industry, and banking.

Politics - Fri, November 1, 2024 | 9:02 pm GMT+7