Ramla Khalidi, UNDP Resident Representative in Vietnam addresses the event.

Vietnam sees bright economic prospects ahead despite external risks

Vietnam has a bright economic future, although risks are multiplying, said Ramla Khalidi, resident representative in Vietnam for the UN Development Programme (UNDP), at the Vietnam Economic Pulse 2022 in Hanoi on November 22.

“Evidence of a strong recovery is welcome news after two years of economic disruption caused by the Covid-19 pandemic. Vietnamese households will enter the Year of the Cat in 2023 in better financial shape than a year ago,” she said.

However, the UNDP representative warned there remain external risks to economic recovery, including the outcome of the Russia-Ukraine conflict, an economic slowdown in China, rising international interest rates, the appreciation of the US dollar, and the growing risk of recession in Europe.

These factors could affect demand for Vietnamese exports and increase the risks of macroeconomic instability, she said, adding that policymakers must remain vigilant and adjust the fiscal and monetary policy in a timely manner as global conditions evolve, cited VOV.

Along with these external factors, there are also several domestic risks, especially those in the banking and bond markets, which are sensitive to rapidly changing conditions in the property sector, she noted.

The negative impact of climate change will increasingly weigh on agricultural production and on the health and well-being of communities impacted by rising sea levels, flooding, droughts, and high-intensive storms, she stressed.

In the recent report titled “Global Economic Outlook: ​ Sailing into the headwinds​”, Francois Painchaud​, resident representative for ​Vietnam and Laos of the International Monetary Fund (IMF), outlined that with strong growth through September, Vietnamese GDP growth forecast could rise from 6% to 7.5% this year.

However, due to slowing external demand coupled with tighter financial conditions, the growth forecast ahead for 2023 is 5.8%, while inflation is expected to edge up before gradually returning to below 4%, he said.

Policies need to be carefully calibrated, co-ordinated, and communicated, while the State Bank of Vietnam (SBV) should focus specifically on controlling inflation, safeguarding financial stability, and accelerating structural reform, he noted.

In his report “Vietnam Economic Outlook Update” delivered at the forum, Dr. Tran Toan Thang, director of the Industry and Enterprise Economic Forecasting Department under the Ministry of Planning and Investment (MPI), outlined that the economic recovery in 2023 will continue to benefit from the implementation of the 2022 - 2023 Economic Recovery Program.

Vietnam is projected to maintain the target of stabilising interest rates and exchange rates, including keeping interest rates low to support growth, Dr. Thang emphasised.

Nevertheless, he said with fairly high growth this year, Vietnamese economic growth in 2023 will slow down, gradually returning to its pre-Covid-19 state, particularly as the domestic demand rebound may not be as strong as seen this year.

According to the expert, anticipated issues include rising raw material prices beginning to translate more clearly into production costs whilst imports and exports may potentially increase more slowly due to the prolonged difficult situation of the country’s main export markets. In addition, foreign investment attraction is forecast to remain low due to increased global economic risks.

In his opinion, there are two scenarios for the Vietnamese economy this year. In the first scenario, the country’s economic growth may be only between 6% and 6.2%, particularly if risk factors outweigh the established recovery trend seen this year.

In the more optimistic second scenario, economic growth may reach 6.5% to 6.7% if the recovery process is more favourable and the impacts from the international factors are not too big.

Vietnam launches e-commerce app for mechanical industry

An e-commerce app for Vietnam’s mechanical industry has been officially launched with the expectation of bringing digital transformation closer to people's lives.

Named “mechanical supermarket”, it is a place where all mechanical items and accessories are sold. Consumers can see prices and purchase them remotely, according to VNA.

"Mechanical supermarket”app where all mechanical items and accessories are sold. Photo: Vietnam Plus

According to Nguyen Nhut Minh Tri, a representative of the app development team, people working in the mechanical industry in Vietnam often face difficulties in searching for accessories, which are rarely available on consumer e-commerce platforms. That is the reason why this app was initiated, he said, saying it is also the first e-commerce platform for the mechanical industry in Vietnam.

The development of the app aims to accelerate the digital transformation in the mechanical industry in Vietnam, Tri noted, pointing out the potential for the expansion of the model in the future.

Vietnam among top seven exciting new retreats in Asia

AFAR magazine, a print and digital publication focused on experiential travel, has listed Vietnam among the top seven exciting new retreats throughout Asia.

According to the magazine, these destinations have picturesque locations, inspiring designs, immersive cultural offerings, as well as impressive social responsibility, and sustainability practices.

Among the destinations, two Vietnamese locations - Regent Phu Quoc resort and Capella Hanoi hotel – grabbed the magazine’s headlines.

AFAR noted that Regent Phu Quoc resort fuses a contemporary design with touches of Vietnamese culture, including bathrobes that offer a pictorial history of Phu Quoc featuring pearls, peppercorns, and koi fish.

The site boasts a total of 302 suites and villas, with everything guests need from artisanal snacks and rice cookers to yoga blocks and playing cards available at the simple touch of a button.

An overview of Regent Phu Quoc resort.

“The accommodations are set around the property’s grand pools, calm shorelines, and five drinking and dining establishments include the Vietnamese restaurant Rice Market and a rooftop gin bar,” it added.

Meanwhile, the magazine praised Capella Hanoi for putting visitors in the heart of city life in the Vietnamese capital.

It said that the hotel’s location near Hoan Kiem lake in the centre of Hanoi offers guests front row seats to mouthwatering street food, as well as the sight of residents performing their daily exercise routines early in the morning.

The sumptuous spaces on offer, also designed by Bangkok-based architect Bill Bensley, range from the 47 individually-decorated suites featuring memorabilia from local performers and artists to a mirrored subterranean swimming pool.

“Don’t miss an evening at the hotel’s Japan-inspired Akio, a zero-waste bar and sake lounge where bartenders hand-cut ice for each cocktail and mist their indoor herb garden with leftover Perrier,” it concluded.

Other exciting new retreats in Asia selected by AFAR include Japan, Indonesia, Thailand, Mongolia, India, and Maldives.

Drivers for growth highlighted at Vietnam Economic Pulse 2022 Forum

The second Vietnam Economic Pulse 2022 Forum, themed “Extending Economic Recovery – Drivers for Growth” was held in Hanoi on November 22.

Co-hosted by the Ministry of Planning and Investment’s National Centre for Socio-Economic Information and Forecast (NCIF), and the United Nations Development Programme (UNDP), the event aimed to look into the process of post-pandemic economic recovery and policies to maintain growth and development in the coming years.

Several delegates at the event said despite impressive economic prospects this year, risks remain, mostly related to external factors, reported VNA.

In 2022, the Vietnamese economy outperformed others in the region thanks to consumption recovery, strong exports and resumption of international travel. In the third quarter, GDP growth beat all forecasts to reach 13.67% year-on-year, bringing the nine-month growth to 8.83%. Inflation was under control, at 4%. However, the slowing global growth and rising financial risks may impact growth in 2023 and 2024.

UNDP Resident Representative in Vietnam Ramla Khalidi pointed out that the Russia-Ukraine conflict, economic slowdown in China, rising global interest rates and a stronger US dollar, and growing recession risks in Europe could affect demand for Vietnam’s exports and increase the risk of macroeconomic instability.

Illustrative image. Photo: VNA

According to the official, domestic risks could come from the banking and bond markets, and the impacts of climate change on agriculture and community health such as rising sea level, flooding, drought and storms.

Francois Painchaud, Regional Resident Representative of the International Monetary Fund (IMF) for Vietnam and Laos, said the IMF have revised down Vietnam’s growth forecast to 5.8% next year compared to 7-7.75% this year due to slowing external demand and tighter financial conditions.

To cope with such challenges, he proposed that Vietnam’s policies should be cautiously calculated, coordinated and disseminated to manage negative risks and ease policy trade-offs, especially the trade-off between growth and inflation.

Director of the NCIF’s Department of Industrial Forecast and Enterprise Development Dr. Tran Toan Thang said the Vietnamese economy could play out under two scenarios in 2023.

In the first scenario, it may grow by 6-6.2% if risk factors outweigh recovery trends from 2022. The second scenario is more optimistic with growth of 6.5-6.7% if the recovery process is more favourable amid has less global impacts.

The first forum of this kind was held in 2021 with a view to gather government officials, academic institutions, business communities and citizens for extensive discussions on economic issues and socio-economic development policies.

Top legislator meets parliamentary leaders of Singapore, Azerbaijan, Belarus

Vietnamese National Assembly (NA) Chairman Vuong Dinh Hue on November 21 met Speaker of the Singaporean Parliament Tan Chuan-jin, Speaker of the Azerbaijani National Assembly Sahiba Gafarova, and Deputy Chairman of the Representatives Chambers of the Belarusian NA Valeriy Vatslavovich Mitskevich in Phnom Penh.

In his meeting with Tan Chuan-jin, Hue affirmed that Việt Nam treasured and wished to further develop its strategic partnership with Singapore.

The two countries’ resumption of high-level delegation exchanges after the Covid-19 pandemic had contributed to creating new motivation for bilateral cooperation and post-pandemic socio-economic recovery, he added.

To celebrate the 50th anniversary of the establishment of bilateral diplomatic ties and the 10th anniversary of the strategic partnership, the two sides agreed to maintain the exchange of high-ranking and all-level delegations in all channels, organise parliamentary cooperation activities, and expand collaboration in digital and green economy.

Receiving Sahiba Gafarova, Hue expressed his hope that they would have more meetings and contacts bilaterally and on the sidelines of regional and international inter-parliamentary forums, given that this was the first-ever meeting of the top leaders of the two countries’ NAs.

Vietnam always attached importance to its relations with traditional friends, including Azerbaijan, and appreciated the country’s great and precious support for Vietnam’s past struggle for national independence as well as its present nation building and development cause, cited VNS.

NA Chairman Vuong Dinh Hue (fourth from right) and Speaker of the Singaporean Parliament Tan Chuan-jin (fifth from right). Photo: VNA

There remained an ample room for bilateral cooperation in various fields, Huệ stated, appreciating the two sides’ coordination and support at multilateral parliamentary cooperation mechanisms such as the Inter-Parliamentary Union (IPU) and the ASEAN Inter-Parliamentary Assembly (AIPA).

He expressed his hope to boost cooperation between the two NAs to make it one of the important pillars in the bilateral relations.

Sahiba Gafarova said she was delighted to meet her Vietnamese counterpart in the context of the 30th anniversary of the establishment of bilateral diplomatic ties, considering it a chance to discuss measures to strengthen the traditional friendship.

During Hue’s meeting with Valeriy Vatslavovich Mitskevich, he affirmed Việt Nam always treasured its relations with traditional friends, including Belarus.

To deepen the bilateral cooperation, the two sides agreed to intensify cooperation in economics, trade, investment, tourism and people-to-people exchanges; and consider parliamentary collaboration an important channel in the Vietnam-Belarus relations.

Valeriy Vatslavovich Mitskevich took the occasion to congratulate Vietnam on its election to the United Nations Human Rights Council.

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