Vietnam’s GDP growth adjusted upward to 6.8% in 2023: AMRO

Sunday, 22/01/2023 18:30
Vietnam’s GDP growth in 2023 has been adjusted upward to 6.8% in the ASEAN+3 Macroeconomic Research Office (AMRO)’s January Update, up from 6.5% in its October report, reported Vietnam News Agency.
 Containers at Gemalink deep-sea port in Ba Ria-Vung Tau province (Photo: VNA)

This is in contrast to its downward projection for most economies in ASEAN+3.

In its January update, AMRO estimated ASEAN 3 growth for 2023 at 4.3%, down from the 4.6 growth in the previous projection. The region’s growth in 2022 was also revised down from 3.7% to 3.3%. The downward projection is mainly due to the continuing weakness of Plus-3 economies, especially China, where growth has become much weaker.

China’s 2022 growth was estimated at 3% and is forecast to grow by 5% in 2023 (down from the 5.3% in October projection).

Vietnam’s economy meanwhile was projected to expand 8% in 2022.

The 2023 growth outlook for ASEAN is forecast down from 4.9% to 4.8%, a slowdown compared to the 5.6% growth of 2022.

According to AMRO, the drag on economic activity from aggressive monetary policy tightening in the United States and the Eurozone will be felt more fully this year, translating to softer export orders for the ASEAN+3.

However, the ongoing resumption of tourism — especially with the return of Chinese tourists — will provide a much-needed boost to growth.

“With recession risks still haunting the United States and Europe, China’s economic reopening cannot come at a better time for the region,” said AMRO Chief Economist Hoe Ee Khor. “China’s stronger economy will support regional activity while the border reopening will boost intraregional tourism.”

China’s economy is expected to rebound strongly, reflecting the removal of containment measures and reopening of its economy.

Inflation is moderating across ASEAN+3, tempered by sustained policy tightening by central banks and easing global supply chain bottlenecks. Oil prices have reverted to almost pre-pandemic levels, reflecting weaker global demand. Prices of key agricultural commodities - although remaining relatively high due to the prolonged war in Ukraine - have fallen from their 2022 peaks.

Vietnam’s inflation is predicted to come in at 3% in 2023 (down from 3.2% in the previous forecast). Inflation for the ASEAN+3 region was revised down from 6.3% in 2022 to 4.5% in 2023, and for ASEAN at 5.4% in 2023 from 7.7% in 2022.

Vietnamese youths in Japan pin hope on nation’s development in Lunar New Year

Nguyen Dinh Nam, Chairman of the Vietnamese Youth and Student Association in Japan (VYSA) (Photo: VNA) 

As the Year of the Cat comes, the Vietnamese community in Japan, especially youths and students, show their delight at Vietnam’s strong economic recovery post COVID-19 thanks to the sound decisions of the Party, State and Government, reported Vietnam News Agency.

They also have expectations that in the new year, the country will develop steadily and the Vietnamese community in Japan will grow stronger.

Nguyen Hong Son, head of Liaison Board of the Union of Vietnamese Associations in Japan, said he is very pleased to hear that Vietnam's economy has grown at the highest rate in the past 10 years.

Sharing the same opinion, Nguyen Dinh Nam, Chairman of the Vietnamese Youth and Student Association in Japan (VYSA), said he expects Vietnam to develop further and have its position improved in the international arena.

According to Son, the Vietnamese community in Japan number nearly 500,000, with over 20 associations and groups operating in different localities.

Vietnam's FDI likely to reach US$38 billion in 2023

Vietnam is likely to attract roughly US$ 36-38 billion in foreign direct investment (FDI) this year, while last year’s figure neared US$22.4 billion, VOV News quoted figures of the Foreign Investment Agency under the Ministry of Planning and Investment.

Photo for illustration. (Source: VOV) 

Important factors for greater FDI attraction in 2023 include good economic growth results in 2022, efforts to improve the business investment environment, thus winning trust from investors and effectively exploit advantages from free trade agreements.

Besides, a foreign investment cooperation strategy has been submitted to the Government by the Ministry of Planning and Investment.

According to a plan set for 2023, as well as the 2021-2030 period, the countr y is set to attract high-tech projects with modern management and high added value to connect global production and supply chains.

In addition, it is necessary to build and develop innovation centers and financial centers of regional and international stature, in order to create the driving force for socio-economic development in the coming period.

Minister of Planning and Investment Nguyen Chi Dung said that a large number of Vietnamese startups are gradually growing, attracting greater capital over the years. These are good signs for the innovative startup ecosystem.

Vietnam's FDI likely to reach US$38 billion in 2023. (Photo: 

Investment in innovative start-ups has received great attention from the Government and management agencies, with the implementation of numerous support policies for small and medium-sized enterprises. Furthermore, a wide range of programs and projects to support national digital transformation and digital transformation for businesses have also been widely carried out.

"I think that investment funds and innovative businesses will be important partners of the Government and ministries in order to share, support and contribute ideas to making investment policies on investment for innovative start-ups, thereby helping Vietnam to have an increasingly attractive business environment in the region and in the world,” Chi Dung emphasized.

According to economic experts, attracting high-quality FDI is difficult. To successfully realize the goal of attracting FDI, not only for innovation activities, it is necessary to find breakthrough, effective and feasible solutions.

In addition to common solutions such as stabilizing the macro-economy, improving infrastructure, and improving human resources, in the coming time, Vietnam needs to build and develop an ecosystem of science - technology and innovation, with a flexible management mechanism, suitable for the business environment, especially in line with the strong ongoing digital transformation.

This is clearly a necessary condition not only for the target of US$38 billion in FDI in the Year of Cat and the following years.

Cuban Ambassador applauds significance of Vietnam’s participation in UNHRC

The presence of developing nations like Vietnam – a country which experienced wars for national liberation in the past and has recently recorded significant economic achievements – in the United Nations Human Rights Council (UNHRC) is of major significance, reported Vietnam News Agency.

Cuban Ambassador to Vietnam Orlando Nicolás Hernández Guillén (Photo: VNA) 

Cuban Ambassador to Vietnam Orlando Nicolás Hernández Guillén has made the statement in a recent media interview on the occasion of the lunar New Year.

He affirmed his nation’s great support for Vietnam’s election to the council in the 2023-2025 term.

Vietnam represents the struggle for human rights of its people, reflected through the nation’s history of struggling for national liberation, as well as its efforts to boost national development and international integration, and its fight for peace, he said, while hailing social progress gained by the country, especially in health care and education.

The Cuban Ambassador highlighted Vietnam’s tremendous achievements in economic recovery and development post COVID-19, notably the GDP growth rate of 8% in 2022 – the highest in Southeast Asia.

He attributed the results to the Vietnamese Government’s successful implementation of pandemic control measures, particularly the policy on vaccine diplomacy, which served as a basis to speed up the country’s recovery in a variety of fields.

Ambassador Orlando said that amid difficulties caused by the COVID-19 pandemic, and worries about global economic recessions, Vietnam has devised effective solutions to make great strides in import and export activities, and foreign investment attraction, maintain stable macro-economic indicators, and keep the inflation rate under 4%.

These are admirable results, made possible by efforts to carry out the Party’s resolutions, the Government’s governance, and the business community’s active engagement, the Cuban diplomat said.

Regarding bilateral relations, he stressed that the Cuba-Vietnam relations cover all aspects of social life, and the two countries have maintained fine political relations, and close defence and security cooperation.

He noted his appreciation for the Southeast Asian nation’s role in ensuring food security for Cuba, and thanked it for providing rice and sending experts and technicians to help the Caribbean country in agricultural production.

The diplomat voiced his hope that the two nations will step up efforts to take bilateral economic and trade relations to new heights on a par with their tradition friendship, solidarity and cooperation.

He shared the happiness with the Vietnamese people on the arrival of the Year of Cat, saying that the lunar New Year give him an opportunity to learn about the traditional customs and culture of Vietnam as well as other Asian nations./.