New York (VNA) – An article recently published on the East Asia Forum site assessed prospects and challenges facingthe Vietnamese economy this year.
Per the article, 2021 was a tough year as shutdowns madelife difficult and GDP slowed to 2.6 percent. Increasing supplies of vaccineseventually allowed more normal activities in the last few months of the year.Vietnam’s GDP shrank 6 percent in the third quarter before bouncing back in thefourth quarter.
According to the author, despite factory closures, exportsrose 19 percent in 2021 to an astonishing 336 billion USD, while GDP was only 271billion USD in 2020 and grew only slightly in 2021. The high level of foreigndirect investment (FDI) did not grow nor shrink much.
The article noted that prospects for Vietnam in 2022 aregood. As factories and services approach normal, there will be a jump in output.Most projections are for 6–7 percent real GDP growth. Tourism should start torecover from its over 95 percent decline from 2019 levels. Exports should growabout 15 percent and the trade balance will remain modestly positive. Inflationwill remain low and the VND will continue to appreciate slightly against theUSD.
The author also pointed out that one side effect ofVietnam’s rapid export growth has been a lag in domestic value-added inexports. Much of the work has been simple assembly rather than the developmentof a dense network of supplier industries that would make the FDI ‘stickier’ aswages rise and labour supplies tighten. The COVID-19 pandemic slowed progresson this front, as fewer new enterprises opened and many more temporarilyclosed. Many firms that are still in business are financially weaker and willneed time to accumulate resources to improve machinery, training and marketing./.
Vietnam is expected to become a new production hub of the world, as “Made in Vietnam” products are winning larger shares in the international market, according to Russia's Sputnik news agency.
There are great opportunities and a bright future for US companies within sight in Vietnam despite the economic implications of the COVID-19 for the country, said Adam Sitkoff, executive director from the American Chamber of Commerce (AmCham) Hanoi, in a recent interview.
Vietnam is striving to sustainably develop its fishery and promote responsible practices while protecting and restoring aquatic resources and preserving biodiversity, according to a draft national plan on protecting and exploiting aquatic resources from 2021 – 2030, with a vision towards 2050.
Vietnam and the US should enhance connectivity and work to ensure continuity of supply chains and prevent adverse impacts on the production sector, which has already been affected by the COVID-19 pandemic, an official has said.
Vietnam is expected to accelerate its economic recovery from the pandemic this year after having recorded a 2.6 percent increase in gross domestic products (GDP) in 2021, Singapore’s Business Times reported.
China’s Laoling city, in coordination with VINEXAD, hosted a series of events in Ho Chi Minh City from August 7-9 to seek trade and economic cooperation with Vietnam.
Vietnamese Ambassador to Cambodia Nguyen Minh Vu led a delegation to Mondulkiri, Ratanakiri, and Kratie provinces from August 5-8, aiming to deepen economic ties and support Vietnamese businesses operating in Cambodia’s northeastern region.
Party General Secretary To Lam’s upcoming state visit to the Republic of Korea (RoK) is expected to mark a new milestone in the bilateral relationship, creating fresh momentum for trade and investment cooperation between the two countries.
In the context of the growing global digital economy, digital transformation and the promotion of e-commerce are key drivers helping Vietnam boost integration, enhance competitiveness, and expand export markets, according to the Vietnam E-commerce and Digital Economy Agency
Tilapia is considered highly competitive in export markets thanks to its affordability, ease of processing, and appeal across both high-end and mass-market segments.
In the first seven months of the year, Phu Tho attracted an impressive 651.7 million USD in foreign direct investment, including 35 newly licensed projects totaling 119 million USD in registered capital and 45 existing projects with an additional capital of 533 million USD.
Under the agreements, VinEnergo will invest in, install, and operate 43 MWp of rooftop solar power capacity and 45 MWh of BESS capacity across the three plants.
Under a draft to amend and supplement the Government's Decree 125/2020/ND-CP on administrative sanctions for violations of tax and invoice regulations, the Ministry of Finance has proposed classifying the failure to issue invoices into five different levels. Infraction levels will correspond to fines of 1 million VND to 80 million VND, depending on the nature and number of invoicing violations.
A new airline developed and invested by Sun Group — has officially announced a strategic partnership with Amadeus IT Group (Amadeus), one of the world’s leading travel technology companies. This agreement not only lays the foundation for a modern digital infrastructure but also marks a pivotal step in SPA’s global expansion strategy, enabling the airline to access international distribution networks and reach customers worldwide.
Of the total, 107,700 were new firms, with combined registered capital of 928.4 trillion VND (35.4 billion USD), up 10.6% in number and 5.5% in capital compared with the same period last year.
Experts agree that a combination of technology, enforcement, education and cross-border cooperation is essential to protect copyrighted content in Vietnam’s growing digital ecosystem.
Poland is Vietnam’s largest export market in Central and Eastern Europe, with key staples including seafood, textiles, footwear, coffee, and cashew nuts.
Cashless payments are growing at an impressive rate, averaging 30–40% annually. Vietnam’s per capita cashless transaction volume now trails only China, with total value of 295.2 quadrillion VND (11.26 trillion USD), or 26 times of its GDP.
A draft resolution on piloting a digital asset and cryptocurrency market is being developed, aiming to create a broad-enough regulatory sandbox that enables investor participation and provides practical grounds for policy refinement in areas such as risk management and anti-money laundering.
Illustrative photo (Source: VNA) 
