Economic gains provide solid base for steady growth in 2024

Minister Dung made the assessment in an exclusive interview granted to VOV on the occasion of the lunar New Year of the Dragon, adding that opportunities will arise this year. Following is the full text of the interview .

Solid foundation for robust growth in 2024

Reporter: How do you evaluate Vietnam's economic outcomes last year? Why did we not fulfill the set target? What are the bright spots to provide a basis for Vietnamese economic growth this year?

Minister Dung: In 2023, the world and regional economies faced a number of challenges such as consequences from the prolonged COVID-19 pandemic, trade war between powers, the Russia – Ukraine conflict, and climate change which led to a global economic slowdown.

Furthermore, Vietnam is an economy in transition with a modest scale and great openness, which is also significantly impacted by external factors. 

However, the Vietnamese economy has remained resilient amid global headwinds, achieving important and comprehensive results across multiple fields. 

Basically, macroeconomic stability was maintained, with inflation kept in check, while state budget revenue, energy security, and food security were also guaranteed. 

Last year, the credit rating agency Fitch Ratings kept the nation’s credit rating at BB in June and upgraded it to BB+ in December, with a "stable" outlook, indicating that the local economy was gathering steam. 

Overall, the economy only expanded by 5.05%, which is lower than the target set by the Government and approved by the National Assembly. However, the recorded growth rate was among the highest in the region and the world.

Most notably, a record 475 km of new expressways were put into operation nationwide throughout 2023, bringing the total length of expressway nationwide to nearly 1,900 km. 

In addition, the National Innovation Center was inaugurated at Hoa Lac Hi-tech Park on the outskirts of Hanoi, while other emerging industries such as the semiconductor industry received more investments. 

The upgrade of ties with both the US and Japan to a comprehensive strategic partnership has also opened up new opportunities for economic cooperation in multiple spheres, such as chips semiconductors, culture, science - technology, innovation, and high-quality human resources.

6-6.5% GDP growth target feasible?

Reporter: Vietnam aims to achieve GDP growth of between 6% and 6.5% in 2024, which is described as relatively high amid global uncertainties. What are the advantages and challenges for economic growth this year?

Minister Dung: The Vietnamese economy is anticipated to see challenges intertwined with opportunities this year. 

With regard to the advantages, Vietnam has acquired much experience in responding to regional and global fluctuations, especially during the COVID-19 pandemic. The economy has been highly appreciated by reputable international rating agencies, with social governance capacity being constantly improved. 

The National Assembly recently passed the amended Land Law and the amended Law on Credit Institutions at the recent extraordinary session in early 2024 in order to gradually meet the requirements of national development.

These are important foundations for Vietnam to continue responding and adapting effectively to new challenges and unexpected problems that may arise.

However, global political and economic uncertainties will continue to exert a negative impact on Vietnamese economic recovery prospects. Global economic growth and investment will continue to decline, whilst some major economies have moved to tighten their monetary policies due to inflationary pressure. 

Moreover, traditional and non-traditional security issues, especially epidemics, natural disasters, climate change, as well as water, food, and, energy security are predicted to become more complicated, which can seriously threaten the stability and sustainability of the world, the region, and Vietnam. 

Fresh impetus from three major driving forces 

Reporter: Investment, export, and consumption are all considered to be major driving forces to help promote economic growth, what do you think about opportunities for solid growth this year?

Minister Dung: The Government has identified key orientations for prioritising growth with a focus on three driving forces, namely investment, export, and consumption. 

In fact, there are opportunities domestically and internationally, and Vietnam needs to take the full advantage of them to accelerate the growth drivers by effectively utilising free trade agreement (FTAs), economic diplomacy achievements in order to expand markets, attract greater foreign direct investment (FDI), develop green finance, and invest in advanced technology for national development.