VINACHEM

The Vietnamese economy is recovering swiftly in the final months of 2022, with GDP growth for the full year forecast to reach 8%, laying a strong foundation for a growth rate of 6.5% in 2023.

According to Deputy Minister of Planning and Investment Tran Quoc Phuong, the target of 6.5% GDP growth for next year is based on the assessment that the Vietnamese economy is maintaining its recovery momentum and has a low risk of external shocks.

But as many international and domestic organisations predict 2023 to remain a challenging year, Vietnam’s growth is unlikely to reach the same high level as in 2022. Therefore, the projected growth of 6.5% for 2023 is a reasonable target.

The growth drivers will come from various factors such as domestic consumption, public investment, exports, and especially the continued strong recovery of the services sector. Deputy Minister Phuong said services have made a positive recovery this year but have not reached pre-pandemic levels, with total international arrivals estimated at 1.8 million, compared to 18 million in 2019.

A review of supply suggests that the services sector will recover fully in 2023, requiring measures to diversify tourism products to meet the new requirements of the market.

According to economic experts, Vietnam’s productivity has improved but remains low compared to many countries in the region and risks falling behind. The solution is to enhance productivity in enterprises. To shorten the gap with developed countries in the region and the world, it is necessary for enterprises to incessantly innovate, employ advanced technology, and have an appropriate policy to for the effective use of labour and capital. This process cannot be done without the support of the Government’s mechanisms and policies, especially those regarding research and development activities.