In the context of many difficulties and challenges, Vietnam is at a very important moment with many opportunities, which will be a waste if businesses miss out.
This is the opinion shared by experts at the 75th “HUBA Entrepreneur Coffee” session with the theme: “Vietnam’s Economy and the City in 2024 – Issues of Concern to Entrepreneurs” held on 9 March, organized by the Ho Chi Minh City Business Association (HUBA).
At the event, Mr. Can Van Luc, Chief Economist of BIDV, a member of the National Financial-Monetary Policy Advisory Council, stated that the world economy in 2024 is forecasted to grow slower than in 2023 (2.4% compared to 2.6% in 2023), but the positive sign is that inflation continues to decrease and central banks around the world are considering lowering interest rates. Demand in major markets, especially the US and Europe, is recovering.
Mr. Can Van Luc points out many economic recovery opportunities in 2024
Domestically, Vietnamese businesses’ resilience is relatively strong, and the economy is recovering clearly in most sectors. Industrial production and services recover better; exports and consumption are increasing; public investment, private investment, and attracting foreign direct investment (FDI) are being promoted; opportunities from supply chain shifts and global capital flows from upgrading strategic partnership relations with nations.
In addition, inflation is forecasted to increase but within control, interest rates decrease, basic exchange rates stabilize, and the stock market and real estate sector are showing signs of recovery.
In addition to many opportunities, Vietnam’s economy still faces challenges such as slow disbursement of public investment, many risks in the corporate bond market and real estate that require time to be resolved and made healthy.
In addition, regulations for new sectors (digital economy, green economy, circular economy, etc.) are slow to be promulgated, while the situation of fear of mistakes, fear of responsibility, and slow implementation of official duties still occur.
Also recognizing the resilience of Vietnam’s economy and businesses in Vietnam is relatively good. However, Mr. Tran Du Lich, a member of the National Monetary Policy Advisory Council, Chairman of the Advisory Council for implementing Resolution 98 (Resolution 98/2023/QH15 of the National Assembly on piloting some mechanisms, policies to develop Ho Chi Minh City), forecasts that domestic growth in 2024 will not be high.
According to Mr. Tran Du Lich, HCMC is building “momentum” to create a breakthrough in the medium and long term
“In the 2024-2025 period, we focus on institutions and infrastructure to create momentum for the period after 2026. It can be seen that Ho Chi Minh City is developing not according to short-term thinking, solving immediate problems, but building and consolidating foundations for medium and long-term development” – Mr. Lich said.
He raised the issue of how to develop the domestic business sector, Vietnamese pure business, into a strong one. In the coming period, the policy of developing the domestic business sector, how to make Vietnamese businesses grow in the new context, new opportunities is particularly important because domestic businesses are the decisive force for the country’s development.
