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Vietnam overcomes economic headwinds in 2023: PM

The Saigon Times

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HCMC – Vietnam successfully navigated the headwinds in 2023 despite external and internal woes, said Prime Minister Pham Minh Chinh at a hybrid conference held on January 5.

Despite global economic uncertainties, gross domestic product (GDP) expanded by 5.05% to US$430 billion last year, said Deputy Prime Minister Le Minh Khai, adding Vietnam was among the high-growing economies.

The average consumer price index rose by 3.25%, below the 4.5% target set by the National Assembly. Agriculture gained growth of 3.83%, a 10-year high. Vietnam interest rates dropped significantly while the budget surplus exceeded the estimate by 8.12%.

The Southeast Asian nation targeted 6.5% economic growth for 2023 but its economy grew by 5.05% due to slackened demand, supply chain disruptions, and monetary tightening in key trading partners of Vietnam.

PM Chinh pointed out other challenges, including high inflation, global interest rate volatility, and a challenging business environment characterized by falling orders and contracting markets. He also noted a rise in non-performing loans, with specific concerns about risks in the real estate and corporate bond sectors.

In 2024, the Government proposed strategic solutions to address the anticipated economic challenges, prioritizing maintaining macroeconomic stability, controlling inflation, and proactively managing monetary policy.

Apart from traditional growth drivers such as investment, export and consumption, the Government aims to boost exports by at least 6% against 2023 and explore new growth engines like regional collaboration, science and technology, and investments in emerging sectors like chips.

It aims for a 7-8% growth rate in industrial production, a 10% reduction in administrative costs, expediting key infrastructure projects such as the Long Thanh International Airport, and completing 130,000 social housing units in 2024.

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