Prime Minister Pham Minh Chinh and World Economic Forum (WEF) Founder and Executive Chairman Klaus Schwab witness the signing of the Vietnam-WEF Memorandum of Understanding for the 2023-2026 phase. (Photo: Dương Giang/TTXVN)
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Despite the global economy facing numerous difficulties and challenges, Vietnam in 2023 flexibly coped with and effectively resolved the “headwinds” and continued the positive trend of recovery, maintaining macroeconomic stability, controlling inflation, and promoting growth…
It is not by chance that Vietnam’s economy is seen as a bright spot in the gray picture of the world economy.
At the Policy Dialogue “Vietnam: Global Vision Orientation” within the framework of the 54th Annual Meeting of the World Economic Forum (WEF Davos 2024), Professor Klaus Schwab – WEF Founder and Chairman, remarked that Vietnam is not only a star in the East Asian region but is also in the process of becoming an influential economic power in the world.
Professor Schwab appreciates and trusts the increasing role of Vietnam, considering Vietnam as genuinely one of the leading countries in developing a green and smart economy.
Famous international commentator Thomas Friedman of The New York Times, author of the book “The World Is Flat,” believes that Vietnam is a typical example of reform and development, recognized by the international community as a model for rapid and sustainable economic development.
In its report released early this year, the Asian Development Bank (ADB) lauds how Vietnam overcame the challenges of 2023, particularly in stabilizing monetary policies and controlling inflation.
ADB Country Director in Vietnam Shantanu Chakraborty emphasized that the Vietnamese government had effective monetary policy measures to ensure the country’s economic recovery in 2023, such as actively reducing interest rates and loosening monetary policies to enhance the economy’s resilience.
The International Monetary Fund (IMF) believes that even though the growth rate has slowed down amidst the global economic difficulties, Vietnam is performing better than most countries worldwide and is seen as an attractive investment destination for foreign direct investment (FDI) in manufacturing.
This is evidenced by various indicators, such as the total registered FDI capital into Vietnam reaching nearly $36.61 billion last year, a 32.1% increase compared to 2022, and the realized capital of foreign-invested projects estimated at around $23.18 billion, a 3.5% increase. This is a record disbursement level to date.
Production lines for various types of tubes and hoses, brake conduits, power steering hoses, etc., for motorcycles and cars of Nichirin Vietnam Co., Ltd., 100% Japanese-invested, at Quang Chau Industrial Park, Viet Yen District, Bac Giang Province. (Photo: Danh Lam/TTXVN)
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DBS Bank of Singapore assesses that despite facing numerous challenges, Vietnam remains an attractive destination for FDI due to its manufacturing shift trends, numerous free trade agreements (FTA), bright medium-term growth prospects of 6-7%, and a developing digital ecosystem.
Importantly, there has been a strong increase in new FDI inflows into the manufacturing sector, reflecting the foreign investors’ confidence in Vietnam’s long-term potential remaining unshaken.
According to Marco Forster, ASEAN Advisory Head at the consulting firm Dezan Shira & Associates, Vietnam is predicted to achieve rapid economic growth in the medium term amid current difficulties due to its newly emerging position as a leading production center in Southeast Asia, a highly educated population, and increasing investment capital.
One of the determining factors for investors choosing Vietnam is the stability in politics and society. S&P Global Ratings also evaluates that Vietnam’s young labor force, with increasing education levels and high competitiveness, is an attraction factor for foreign investors. Furthermore, it foresees Vietnam’s economy recovering rapidly as global demand rises and Vietnam addresses domestic challenges.
Despite the complex and volatile global economic situation, Vietnam’s GDP in 2023 increased by 5.05%. Most experts consider this growth rate appropriate in the general context of the global economy and are optimistic about Vietnam’s economic recovery in the future.
According to Bloomberg, the logistics and export of goods and services sectors have been the main driving force behind Vietnam’s impressive economic performance. With an efficiently integrated network of air, sea, and land transportation services, Vietnam’s logistics industry has created favorable conditions for cross-border trade. This has attracted a significant amount of foreign investment, contributing to the country’s economic growth.
Vietnam’s economy is also stimulated by increasing labor productivity and technological advancements. Vietnam has focused on developing a skilled workforce to meet the growing demands of its expanding economy. Promoting digitalization and digital transformation in the economy has also contributed to maintaining and even accelerating the growth rate.
International experts believe that although the forecasts for Vietnam’s economic growth are positive, the road ahead is not easy. The global economic landscape is highly volatile and could impact emerging economies such as Vietnam. Therefore, Vietnam needs to ensure the implementation of cautious economic policies to maintain growth and minimize risks. Additionally, to ensure continuous economic growth, Vietnam should focus on improving infrastructure and digital infrastructure, promoting investment and trade environment, and prioritizing sustainable development.
(Photo: Tuấn Anh/TTXVN)
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Olivier Brochet, the French Ambassador to Vietnam, on the occasion of the Lunar New Year Giap Thin, remarked that Vietnam’s economy has developed remarkably, and the people of Vietnam are becoming more prosperous with an increasing desire for development.
Vietnam is continuously developing with the desire to modernize its economy and further enhance its advantages on the international stage.
It can be said that this ambition has and continues to drive Vietnam to overcome challenges and continue its strong development, positioning itself as one of the “mighty economic dragons,” as wished by the Ambassador of Saudi Arabia to Vietnam Mohammed Ismaeil A. Dahlwy in an interview with Vietnam News Agency.
Tran Thanh Binh
