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Tuesday, July 16, 2024

Export recovery brings hope for Vietnam’s economic turnaround: IMF expert

The Saigon Times

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HCMC – An expected rebound in exports and the implementation of expansionary domestic policies in the second half of 2023 have been identified as key factors that will contribute to the revitalization of Vietnam’s economy.

Vietnam, along with other Asian exporters, has been heavily affected by the global economic slowdown. Reduced demand for goods from major export markets such as the U.S. and the European Union has left substantial impact on Vietnam.

The country saw its exports plunging 12% in the first half of this year, thus causing severe consequences for export-oriented businesses and the industrial manufacturing sector, given Vietnam’s heavy reliance on exports. The recovery of this sector is crucial for overall economic growth.

Paulo Medas, division chief of the International Monetary Fund’s Fiscal Affairs Department, made these remarks after an IMF team visited Vietnam from June 14 to 29 to engage in discussions for the 2023 Article IV consultation with the country.

Vietnam’s economy depends heavily on investment and the domestic market. However, under the current global economic conditions, the revival of Vietnam’s economy largely hinges on the speed at which the export sector recovers.

In the short term, downside risks to growth remain significant. If external demand continues to weaken or if investment remains subdued, growth may fall short of expectations, said Medas.

In a bid to promote exports, the Ministry of Industry and Trade plans to organize the “Vietnam International Sourcing 2023” event in HCMC in September. It is expected to attract 8,000 visitors, facilitate transactions with 150 international delegations from 30 countries and territories, and enable buyer delegations to conduct business surveys with local enterprises.

The event aims to support businesses in enhancing their engagement in global production and supply chains, as well as facilitating direct exports to foreign distribution networks, thereby improving their access to international markets.

Additionally, the event seeks to encourage strategic investments that improve production processes and foster the development of high-value-added products known for their exceptional quality. By creating an environment conducive to these activities, the event can enhance the competitiveness of businesses and contribute to the growth and success of Vietnam’s economy on a global scale.

Renowned retail giants, including Aeon, Uniqlo, Walmart, Amazon, Carrefour, Decathlon, Central Group, and Coppel, have confirmed their participation in the event.

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