Vietnam's economy continues upward growth trajectory

Nguyen Thi Mai Hanh

Since April, it seems that production activities have gradually rebooted. What signs are illustrative of this?

Although myriad difficulties still persist, Vietnam’s economy is showing signs of improvement.

GDP grew by 5.33 per cent in Q3, and by 4.24 per cent over the first three quarters.

Most impressive was the processing and manufacturing sector, which grew by 5.61 per cent in Q3, much higher compared to the 0.07 per cent that was witnessed in the first half of this year.

Overall, this sector saw growth of nearly 2 per cent over the first nine months. This is an encouraging result, indicating that this key aspect of the economy is likely to continue to flourish for the remainder of 2023.

In the manufacturing sector, what factors have impressed you most?

Along with several industries that continue to achieve high growth compared to one year ago, such as rubber, plastic, and steel production, I’m most heartened by the industries that have escaped from the negative zone, such as beverages, paper, leather and its associated products, wood processing, and items made from bamboo and rattan.

Significantly, electronics, technology, and optical device production has been a pioneering force in the processing and manufacturing sector, acting as the linchpin of the economy. It grew by 2.66 per cent, bouncing back from the almost 4 per cent contraction it experienced in the first half of this year.

In addition, the construction sector surged by around 8 per cent over the first nine months, thanks to timely guidance from the government, management agencies, and local authorities. A suite of measures was implemented to facilitate business development, including interest rate reductions.

From the consumer angle, what have been the main highlights?

The trade surplus in the first nine months surpassed $21 billion, making a positive contribution to driving economic growth.

The consumption of households and individuals climbed by about 3.5 per cent in Q3, and by 2.9 per cent over the first nine months.

Such growth remains below pre-pandemic levels, but positive changes have taken place, partly offsetting the shortfall in terms of the global market.

Some experts have a forecast that it will be difficult to reach 6.5 per cent GDP growth this year. What is your take on this?

GDP growth in Q3 has been better compared to previous quarters, and is expanded to reach 4.24 per cent over the first nine months.

Clearly, there is still some distance to go to reach the set target of 6.5 per cent. Since May, the economy has shown many signs of improvement, with a range of sectors managing fair growth. However, numerous challenges still persist.

The global economy continues to be plagued by geopolitical conflicts, tightening monetary policies, and sinking demand.

In the domestic market, the main driving forces in the manufacturing sector still remain relatively weak despite some recent improvements, due in part to soaring input costs.

To reach 6.5 per cent growth this year, GDP needs to surge by more than 12 per cent in Q4, which represents a real challenge.

Tien Giang master plan: marine and urban economy as growth engines The Mekong Delta province of Tien Giang will plan a new development along the Tien River as an important urban axis of the Ho Chi Minh City region, connecting to small tourist towns and river islands.

Citi forecasts positive growth trajectory for Vietnam in H2 Citi forecasts Vietnam's economy is expected to sail through the challenges and maintain a positive growth trajectory in the second half of 2023.

Blue economy offering up future growth The marine economy is being highlighted as an important premise for Vietnam to boost socioeconomic development, environmental protection, and defence and security assurance.