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Tuesday, June 25, 2024

Vietnam faces protracted economic headwinds

The Saigon Times

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HCMC – Vietnam’s economy has grappled with mounting challenges due to global market uncertainties, declining exports, and credit crunch, said Prime Minister Pham Minh Chinh today, August 5, at the Government meeting on the country’s socioeconomic performance in July.

PM Chinh stated that despite recent indications of economic recovery, the growth momentum has been impeded by weak consumption and rising barriers in global trade.

High interest rates, public debt pressures, and financial concerns have remained major difficulties that hamper many countries’ post-pandemic recovery, he added.

In addition, emerging challenges, such as the looming risk of global food insecurity, a sluggish supply of crude oil, and extreme weather conditions, are furthering the constraints plaguing the global market.

Meanwhile, the business community in Vietnam has continued to face administrative bottlenecks and struggle to secure bank loans.

According to the Ministry of Planning and Investment, exports between January and July decreased by 10.6% against the same period last year, particularly with declines in key products such as phones, electronics, and leather and footwear.

During the period, State budget collections dropped by 7.8% year-on-year.

PM Chinh praised substantial efforts made by relevant agencies to ensure Vietnam’s stable business conditions. He emphasized the need to overcome the ongoing challenges and impose additional measures to address the pressing issues faced by local companies.

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