Vietnam’s economy recovers strongly
Business and production activities flourished
The socio-economic situation in April and the first 4 months of the year continued to achieve positive results in the context of a challenging situation, especially in terms of macroeconomic stability, inflation control, assurance of financial balances, etc. large part of the economy.
Trade in goods continues to be vibrant. Exports 4 months over 122 billion USD, up 16.4%, thereby contributing to trade surplus of 2.53 billion USD, doubled over the same period.
Notably, the number of new businesses established a month reached over 15,000 – the highest number ever. If adding the number of enterprises returning to operation, it is more than 2 times higher than the number of enterprises withdrawing from the market.
This shows that the economy is on a positive recovery track thanks to the efforts of the whole political system so that the economy does not miss the pace of the recovery. Enterprises are more proactive in terms of labor and production and business plans, overcoming difficulties to recover and expand production.
The socio-economic situation in April and the first 4 months of the year continued to achieve positive results. Illustration.
The index of industrial production in April increased by 2% over the previous month and 9.4% over the same period. Notably, this index has increased steadily over the months, showing the stability in production activities, the demand for labor recruitment, the plan to increase capital of investors.
Mr. Preben Elnef – Vice President of LEGO Vietnam Factory said: “First of all, Vietnam’s business environment and political stability are positive factors that make us choose to build the next factory. also shared many of the values that the group is pursuing with the Vietnamese government such as sustainable development.It must be said that this is not a short-term investment, but an investment for the next generation. “.
“In the first quarter of this year, it is surprising that the number of investors interested in DEEP C Quang Ninh and Hai Phong has doubled. Currently, we are working with many large companies around the world. . They have doubled the size of their investment. The most positive is the resumption of dialogue with previous potential investors. We are still able to maintain normal business activities”, Mr. Bruno Jaspaert – General Director of DEEP C Hai Phong Industrial Park said.
The Government’s policy of loosening measures to control the COVID-19 epidemic, opening up tourism and making the business investment environment transparent is creating great confidence in the business community.
Mr. Torben Minko – Vice President of the European Chamber of Commerce in Vietnam (EuroCham) expressed: “The improvements in the business and investment environment are being promoted and implemented in a more substantive way. Along with that is the reaction. Policy responses from all levels are supporting and removing difficulties for businesses.More than ever, the business community is looking forward to more efforts in institutional reform for a favorable business environment. , safety and reduce unnecessary costs, especially when the whole economy is in the recovery and breakthrough phase”.
Efforts to recover and develop the economy
The Government’s efforts and determination in economic recovery and development have brought about clear and positive results. Capital, purchasing power, production power and major balances of the economy are important indicators reflecting the growing strength of the economy’s recovery.
Just over the first 4 months of the year, but the credit growth of many banks has achieved positive numbers. Rising capital demand is an important indicator of a strong economic recovery and development needs.
By the end of April, more than 700 trillion VND had been pumped into the economy by the banking system to serve the capital needs of businesses. This number is 2.3 times higher than last year.
Credit growth of many banks has achieved positive numbers. Illustration.
Along with the increase in capital demand, another positive signal is that the purchasing power of the economy has increased again. At the same time, macroeconomic indicators are still maintained, which is also a bright spot of the country Vietnam economy in the first months of the year.
Stable macro-economy, strong acceleration of economic recovery are highlights of Vietnam’s economic vitality. But one of the remarkable efforts that the Government has implemented is the story of the Government’s determination to make the capital market transparent and healthy so that capital flows in the right direction. Many international organizations have highly appreciated this action of Vietnam, as it is aimed at the sustainable and healthy development of the capital market in Vietnam.
“I think the Vietnamese government is doing the right thing. Stock manipulation is a very serious offense. If this issue is not dealt with seriously, the market will not be controlled,” said Mr. Gibb S. Song – General partner VSV Capital said.
Era Dabla Norris – Assistant Director of the Asia-Pacific Department of the International Monetary Fund (IMF) said: “The International Monetary Fund highly welcomes the efforts of the Vietnamese Government in enhancing the publicity and transparency in corporate bond issuances to strengthen market regulation and improve the overall system of supervision, thereby increasing transparency, which really helps long-term development capital markets, improving protection for investors, including individual investors and retail investors”.
“The message has been sent now” – said Mr. Craig Martin, Executive Chairman of Dynam Capital, who hopes in the future there will be careful oversight of developers and financial transactions. but does not affect economic development.
“For long-term investors, the recent market clearing process is a promising start,” said Deirdre Maher, Head of Marginal Markets, European Asset Management, Amundi. That is also the belief that foreign investors send and recognize after the Government’s strong actions in healthy capital market and economic recovery.
Investors believe in a prosperous economy
Stable macroeconomics, low inflation and low exchange rate have helped Vietnam continue to be an attractive destination for foreign investors. Notably, from the beginning of the year until now, a series of credit rating indicators for Vietnam have been recognized by international organizations.
The Chandler Institute of Governance (Singapore) has just released the “Good Government Index” ranking for 2022 – the most comprehensive index in the world, used to evaluate the performance of a country’s government. Vietnam ranks 3rd among low-middle-income countries and 56th out of 104 ranked countries/territories.
Vietnam has achieved strong growth in the Income Equality index, up 33 places compared to 2021, to 42nd place. Vietnam also increased 18 places to 39th place in the investment attraction index. . Notable in the indicators of satisfaction with public services and gender equality.
“This is very good news for Vietnam. It is proof that the government’s reforms have brought positive results. But Vietnam should not be satisfied with the number 3 position but must strive for it. 1st place. When deciding to invest or expand investment in a certain country, we always look at what that government does.We continue to expand investment in Vietnam because we believe it. your country,” said Mr. Thomas Bo Pedersen – Managing Director of Mascot Vietnam and Laos Company.
European companies are more and more inclined to invest in Vietnam and are more confident about the economic growth prospects here. This is the content highlighted on the 2 pages of Le Petit Journal and Fiber to fashion. EuroCham’s report shows that Vietnam’s Doing Business Index rose to 73% in the first quarter of this year.
Mr. Alain Cany – President of the European Chamber of Commerce in Vietnam (EuroCham) said: “We are happy that the index has increased by 12 points. The index has gradually returned to the highest number in 3 years or more. 69% of our members believe that in the second quarter of this year, the economy will record stability and growth.Digital economy and green economy are the two main areas that investors are interested in. heart”.
Thailand’s Bangkok Post page emphasized that Asia Plus ASPS securities company supports increasing investment in Vietnam on the grounds that the country has high growth prospects.
“Japanese businesses always consider Vietnam an attractive investment destination because it has a stable socio-political background, high-quality labor, abundant and cheap land and offices. Vietnam is a country It is the only one in Southeast Asia with positive growth in 2020 and 2021”, said Mr. Nakajima Takeo – Vice President of the Japan Business Association in Vietnam JCCI.
Japanese Prime Minister Kishida Fumio said: “On the issue of supply chain diversification. The impact of the COVID-19 pandemic has made us more aware of the importance of this issue. Vietnam is gradually becoming more aware of the importance of this issue. Therefore, out of a total of 92 projects aimed at diversifying supply chains in enterprises supported by the Japanese Government to implement in ASEAN, Vietnam ranks first. with 39 projects”.
The optimism about the recovery and the positive outlook of the Vietnamese economy is based on reliable facts. The important driving force for economic growth in 2022 is the resonance from financial and credit support policies such as: reduction, extension of tax payment, land rent, registration fee, interest rate and debt repayment term. , expand public investment, strengthen institutional and administrative reforms, improve business investment environment and digital transformation.
In addition to the increasingly improved business environment and the soon normalization of economic activities thanks to the anti-epidemic achievements, the business community is still very optimistic when Vietnam is the 17th largest free economy out of 40 countries. in the Asia-Pacific region and ranked 90th out of 184 economies in the world according to the ranking of the Economic Freedom Index in 2021. These are also important drivers for Vietnam’s economy to regain its strength. its inherent growth trajectory.
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