Minister, in 2023, the global and Vietnamese economy faced unprecedented difficulties, as did the Ministry of Industry and Trade. How did these difficulties affect the industry and how did the industry respond?
In 2023, the global situation continued to be complex and unpredictable. The global economy recovered slower than expected. Many countries, including our major trading partners, experienced a decrease in growth. Inflation, although cooling down, remained at a high level, leading many major economies to maintain tight monetary policies. Overall demand declined, directly affecting countries with large open economies, including Vietnam.
In the domestic market, the economy gradually regained growth momentum, especially in the industrial sector, adapting to the new global situation. However, there are still many challenges due to the “double impact” of external adverse factors and prolonged internal constraints and shortcomings. Nevertheless, with the leadership and guidance of the Party, the State, and the whole country, Vietnam made efforts and resolutely overcame difficulties in 2023. Comparatively speaking, if we consider the global economic growth rate as 2.9%, the EU as 0.8%… or within ASEAN, only the Philippines achieved higher growth than Vietnam, we can evaluate Vietnam’s economic growth in 2023 as commendable.
For the Ministry of Industry and Trade, the direct difficulties include a significant decline in export and industrial production in the early months of the year (in the first two months of 2023, processing and manufacturing industries decreased by 6.9%, something that had not happened in many years; the level of connection between enterprises in the industry and related industries is still limited; although domestic trade growth is high, it is not as high as the growth in previous years before the COVID-19 pandemic; the situation of smuggling, trade fraud, counterfeit goods, and hoarding to increase prices in the domestic market, violating competition regulations… is becoming more complex.
In addition, monitoring, evaluation, and implementation of integration commitments have shown proactivity, innovative implementation methods, but there are still limitations in the participation capacity of domestic businesses, especially small and medium-sized enterprises.
These limitations have both subjective and objective causes. However, in 2023, under the comprehensive, determined leadership, and guidance of the Party, the State, and unified direction, the industry identified and proactively coped with difficulties and challenges, focusing on building and implementing comprehensive, synchronized, and integrated solutions and tasks assigned, achieving positive results, making significant contributions to the country’s economic growth.
Some notable achievements of the Ministry of Industry and Trade in 2023 include: Maintaining a high growth rate in domestic trade, exceeding the set targets and supporting the overall economy when industrial production and exports faced many challenges. E-commerce continued to develop strongly, maintaining a leading position in the world in terms of growth rate, becoming an important distribution channel, contributing to the development of supply chains and goods circulation, creating a driving force for economic development. Industrial production and exports recovered positively in the last months of the year. In particular, the trade surplus reached a record for the 8th consecutive year (nearly $27 billion), nearly three times higher than the previous year, contributing to foreign exchange reserves, exchange rate stability, and other macroeconomic indicators. Both the coal and petroleum industries achieved and exceeded production and consumption targets compared to the same period last year and exceeded the annual plan. In addition, other tasks of the Ministry also achieved effective results, meeting the set objectives and plans… creating favorable conditions and a foundation for the industry to overcome difficulties and achieve growth in a challenging market.
Although exports in 2023 did not reach high and stable figures like in 2022, experts still acknowledge it as a great effort and a miraculous achievement, achieving the highest trade surplus in many years. Can the Minister provide more information about this?
As we know, the political and economic situation in 2023 was complex, rapidly changing, and difficult to predict, creating intense competitive pressures for Vietnam’s exports. In addition, protectionist policies and price competition among exporting countries increased. Countries are increasingly erecting technical barriers, exerting new pressure on our exports, which has negatively impacted industrial and commercial activities domestically, particularly Vietnam’s exports.
Based on the serious direction of the Government, the Prime Minister, the ministry, localities, in 2023, the development of domestic markets was deployed comprehensively and deeply. For example, in trade promotion activities, along with events and trade connections taking place domestically and in key foreign markets such as China, Thailand, Europe… the Commercial Affairs Department had innovative breakthroughs, closely following major guidelines but also being specific. Looking back, we can see that the 12 monthly trade meetings covered 12 different topics, spanning many sectors, industries, and markets. Some of these meetings provided specific market export requirements, while others addressed difficulties directly at that time, such as with the Chinese market… The Ministry of Industry and Trade also regularly updated the export situation at border gates to propose timely solutions and suggestions for easing blockages and ensuring the smooth flow of goods.
Thanks to these timely and positive solutions and the opportunity from the recovery of major traditional markets, our export activities were sustained and strengthened. The total import-export turnover for the year reached an estimated $683 billion, with exports reaching $355.5 billion and imports reaching $327.5 billion. Honestly speaking, this growth rate did not reach expectations or the set targets for 2023. However, in the context of slow global economic growth and declining overall demand, Vietnam’s export activities managed to overcome difficulties, significantly narrowing the decline compared to the beginning of the year, demonstrating the Ministry of Industry and Trade’s efforts in export management.
Exports and imports in 2023 did not achieve high and steady figures as in 2022, but experts still acknowledge these as significant efforts. Can you elaborate more on this matter?
As we are aware, the global economic and political situation in 2023 was complicated, rapidly changing, and difficult to predict, creating intense competitive pressures for Vietnamese exports. Additionally, protectionist policies and price competition among exporting countries increased. More countries are setting up technical barriers, creating new pressure on Vietnamese exports, which has adversely affected domestic industrial and commercial activities, particularly our exports.
Despite these challenges, the proactive implementation of free trade agreements (FTAs) has expanded market opportunities for Vietnamese exports and facilitated deeper integration into global production and supply chains. For example, under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the utilization rate of Certificate of Origin (C/O CPTPP) for Vietnam’s key export items continued to grow significantly compared to previous years (rice increased by more than 2503%, cassava and cassava products increased by nearly 3649%, machinery, equipment, tools, and other parts increased by over 134%, chemicals and chemical products increased by approximately 67%…).
These figures are clear evidence of the effectiveness of promoting, disseminating, and implementing FTAs that Vietnam is a member of. They also demonstrate that Vietnamese businesses have made good use of the benefits that FTAs bring, overcoming challenges in supply chains and global economic recession in recent years. Through the gateway of integration, businesses have not only received large investments, advanced technology, and management experience but have also created new job opportunities and contributed to social stability.
For consumers, participation in FTAs has provided opportunities to access high-quality products and services at competitive prices. This not only enhances the consumer shopping experience but also contributes to the sustainable development of the economy. Moreover, participating in FTAs has strengthened Vietnam’s international position, enhanced relations with important partners, and ensured a stable environment to support the country’s comprehensive development.
In general, the achievements mentioned above affirm the Party’s, State’s, and industry’s astute, unified guidance, and active contributions from the entire political system, businesses, to promote economic integration and comprehensive development.
2024 is expected to have many unpredictable scenarios. Can you share some of the solutions that the Ministry of Industry and Trade has developed to cope with them?
2024 is a crucial year for the achievements of the 5-year Plan (2021-2025) in the context of forecasted difficulties and challenges. The Vietnamese economy is highly open and relies heavily on global trends, while the international situation remains complex, unpredictable, and the global economic recovery is slow. However, the Ministry of Industry and Trade will focus on implementing key tasks and solutions to successfully achieve and exceed the industry’s assigned targets, contributing to the comprehensive and successful implementation of the country’s economic and social goals in 2024, approved by the National Assembly.
The ministry will continue to study and thoroughly evaluate and strictly and effectively implement the Party’s guidelines, policies, state laws, and regulations related to industrial and commercial development. Particularly, they will focus on implementing and improving the efficiency of national plans and programs for the development of energy and mineral resources, such as the National Energy and Mineral Resource Planning; expedite the amendment, supplementation, and promulgation of laws, decrees, mechanisms, and policies that significantly affect business production, such as the Key Industrial Development Law, Chemical Law (amendment), Electricity Law (amendment), mechanisms, and policies related to rooftop solar power, direct power purchasing, price frameworks for various energy sources; and propose experimental mechanisms and policies to promote the development of emerging industries, new technologies, and high-tech industries (such as chip production, semiconductor materials, rare mineral exploitation, processing). This will contribute to becoming a new driving force for the development of the manufacturing industry in the coming years.
The ministry will further promote international economic integration and actively propose measures to exploit opportunities for economic cooperation with major countries, to take the initiative in attracting the relocation of investments in key industries to third-party countries from multinational corporations, especially in areas where Vietnam has needs and advantages, such as electronic industry, digital infrastructure, logistics infrastructure, clean energy, new material industry, rare mineral exploitation and processing, and semiconductor materials. They will also enhance the coordination between foreign invested enterprises and domestic enterprises to promote management skills transfer, technology transfer, and enhance the competitiveness of Vietnamese enterprises, complying with the requirements of participation in global production and supply chains.
The ministry will also strengthen trade promotion, closely combining traditional trade methods with modern methods such as e-commerce and digital economy to utilize the domestic market’s untapped potential. They will monitor the supply and demand, prices, and market situation to appropriately manage and coordinate trade activities, strengthen market management, and protect production and consumer interests in accordance with international commitments.
The ministry will focus on restructuring the organization and personnel to ensure lean and efficient operations, rectifying and strengthening administrative discipline, and improving the effectiveness of leadership, guidance, and responsibility of leaders in implementing assigned tasks. They will continue strong administrative reforms, digital transformation, innovation in work styles and methods, creating a powerful transformation throughout the entire system to ensure the successful completion of objectives assigned by the Party and State.
Looking back at the results achieved in 2023 and entering 2024, although challenges are expected to persist due to the complex and difficult-to-forecast international political and economic situation and external and domestic issues, I trust that the Ministry of Industry and Trade, with the attention, guidance, and regular direction of the Party, State, Government, and the support of various ministries, sectors, and localities, will uphold previous achievements and experience. They will continue to work together with unity, proactivity, creativity, and the determination to serve the common interests, enhance discipline, and responsibility in guiding, directing, and implementing tasks. The Ministry will strive to complete and surpass the assigned tasks, deserving the trust and expectations of the Party, State, and people.
Thank you, Minister!
