Vietnam must take 'aggressive' measures to meet growth targets, finance minister

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Vietnam needs to take aggressive steps to achieve its economic goals this year, the country's finance minister said, warning that the export-driven manufacturing hub was struggling to maintain strong growth amid a sharp decline in orders. Vietnam was one of Asia's fastest-developing economies last year, expanding more than 8 percent, its highest growth rate since 1997. But growth slowed in the first quarter of 2023 to 3.3 percent, down from 5.9 percent in the fourth quarter of 2020. last year, when a gloomy global economic outlook and high inflation reduced demand for the country's exports. "We depend on global demand for our products, which is facing many difficulties," Ho Duc Phuc told the Financial Times, adding that the war in Ukraine had raised oil and consumer prices, putting pressure on manufacturing inputs and trading costs and depressing buyers' appetite.

Our orders from international partners have been drastically reduced.” Phuc said the government was targeting annual growth of 6 to 6.5 percent, following anticipated growth of around 4 percent for the first half. “In the next six months, we will Russia Mobile Number List probably have [to take] aggressive steps to achieve that goal,” he said, citing an extension of tax payment deadlines, the reduction of value-added tax and gasoline taxes amid of proposals to help reduce costs and increase demand. Vietnam's central bank this month cut interest rates by 50 basis points, its fourth reduction this year. You are viewing a snapshot of an interactive chart. This is most likely because you are offline or JavaScript is disabled in your browser. Vietnam's export-led growth has lifted tens of millions of people out of poverty over the past 30 years, catapulting the Southeast Asian country from the ranks of the world's poorest to lower-middle-income status.



Reform policies launched in the late 1980s known as Doi Moi, or "renewal," dismantled central economic planning, turning the one-party communist state into a manufacturing powerhouse after decades of deprivation and war. Vietnam is also becoming a beneficiary of a "buddy sharing" campaign, as companies seek to protect their supply chains from geopolitical tensions between Washington and Beijing, thanks to its proximity in the region and low labor costs. Phuc said Vietnam's "enabling" business environment was also a big draw for businesses, as was its "abundant" and cheap labor. “Our investors come mainly from South Korea, Japan and Singapore,” he said. “We believe that more investors will come from the European Union, Germany, India, the United States, the United Kingdom and even China,” which remains Vietnam's largest trading partner.