Against the backdrop of the global economic slowdown induced by uncertainties, the Vietnamese economy is facing multiple structural problems hindering development. Global uncertainties The global economy enters the new year 2024 with multiple hardships and challenges that will prompt economic growth to slow down compared to previous decades. Four years since the Covid-19 outbreak, the global economy has not yet been back on growth track. The global GDP in 2023 was some 3.4 percentage points lower than the projection given before the pandemic, equivalent to a loss of around US$3,700 billion. Such losses are not evenly spread. The U.S. is the only economy that has returned to its pre-pandemic growth path, while Europe had a growth rate 2.2 points lower than the pre-pandemic level, and China grew by some 4.2 points only. It is noteworthy that 73 low-income countries saw their GDP shrink by 6.5% due to the pandemic, as per estimates by the World Bank and the International Monetary Fund. Such losses are unrecoverable, meaning those countries trail farther behind in their development. The strategic and geopolitical tensions between the U.S. and China has divided the global economy into two blocs. The global supply chains for many strategic commodities […]
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