Vietnam Ranks among World’s Highest-Growth Economies

Despite the difficulties, challenges and opportunities in 2023, amid the complex developments in the world economy and domestic obstacles, Vietnam has attained remarkable achievements.

In 2023, Vietnam's industrial and construction sector expanded by 7.35% and contributed 42.58% to the overall increase in the total added value of the national economy

Positive results

The General Statistics Office estimated that Vietnam’s GDP maintained a positive growth trend of 5.05% in 2023. The scale of Vietnam’s GDP at current prices in 2023 reached VND10,221.8 trillion, equivalent to US$430 billion. The consumer price index (CPI) in 2023 rose by 3.25% compared to the previous year, meeting the target set by the National Assembly.

The agriculture, forestry and fishery sector grew by 4.13%, contributing 7.51% to the increase in total added value of the whole economy. The industrial and construction sector grew by 7.35%, contributing 42.58%. The service sector grew by 7.29%, contributing 49.91%. Exports of goods and services grew by 8.68%. Imports of goods and services grew by 8.76%.

The export turnover of goods was US$355.5 billion in 2023, of which, the group of processed industrial goods accounted for 88.3% with US$313.73 billion. The U.S. was Vietnam’s largest export market with an estimated turnover of US$96.8 billion. The import turnover of goods was US$327.5 billion in 2023. China was Vietnam’s largest import market with an estimated turnover of US$111.6 billion.

Trade and tourism activities sustained a high growth momentum, contributing positively to the growth of the service sector.

The added value of the service sector in 2023 rose by 6.82% compared to the previous year, surpassing the increase of 2.01% and 1.75% in 2020 and 2021, respectively.

Remarkably, in 2023, the whole country witnessed 217,700 newly registered and resumed businesses, a 4.5% increase from the previous year. On average, 18,100 businesses were newly established and resumed operation every month. The number of businesses exiting the market was 172,600. Thus, on average, 14,400 businesses left the market a month. Additionally, about 12.6 million international visitors came to Vietnam last year, a 3.4-fold increase from 2022, far exceeding the target of 8 million set earlier. Meanwhile, some 5 million Vietnamese traveled abroad in the year, twice as many as in 2022.

In the context of unpredictable and unfavorable fluctuations in the world situation, Vietnam’s economy achieved a growth rate of 5.05% in 2023, thanks to the determined participation of the entire political system. Although economic growth fell short of the target of 6.5% set out in the 2023 Socio-Economic Development Plan and Resolution 01/NQ-CP of the Government, this was still a positive result that placed Vietnam among the countries with the highest growth rates in the region and the world.

Moreover, statistical indicators showed that the domestic macroeconomy remained stable; inflation was controlled; the supply and demand of essential goods were ensured, and domestic consumption stayed strong. The agriculture, forestry and fishery sector sustained its role as the pillar of the economy with stable growth. This confirmed that the sector’s structural transformation was effective, ensuring the provision of food and essential goods for the domestic market and increasing exports.

Striving for GDP growth of 6.0 - 6.5% in 2024

2024 is anticipated to be a breakthrough year of the 5-year economic development plan from 2021 to 2025, and the Government, ministries, branches and localities are resolved to dedicate all their efforts to this year. According to Resolution 103/2023/QH15 dated November 9, 2023 of the National Assembly on the 2024 Socio-Economic Development Plan, Vietnam targets a GDP growth of 6.0 - 6.5% and a CPI growth of 4.0 - 4.5%.

The Government will continue to prioritize growth in conjunction with maintaining macroeconomic stability, controlling inflation and ensuring major economic balances. The Government aims to enhance the effective implementation of strategic breakthroughs, restructure the economy in tandem with innovating growth models, improving productivity, quality, efficiency and competitiveness of the economy. Vietnam will concentrate on eliminating institutional and policy bottlenecks; unlocking resources for development; developing stable, safe and sustainable markets; and improving the effectiveness of the implementation of laws as well as the performance of public duties.

Vietnam will accelerate key strategic infrastructure projects, advance administrative reform, enhance the business environment, increase the participation of the private sector in public-private partnerships, and issue specific mechanisms and policies to create breakthroughs in selectively attracting foreign investment, especially in emerging industries and sectors, ensuring the linkage with the domestic economic sector and creating momentum for economic growth.

Vietnam will also deploy foreign policies and promote international integration in a synchronous manner; effectively utilize opportunities from partnerships and free trade agreements; maintain a peaceful and stable environment and create favorable conditions for socio-economic development, improving Vietnam’s position and reputation in the international arena. Vietnam will continue to implement signed free trade agreements effectively; participate selectively in international economic cooperation, expand negotiations and sign suitable free trade agreements.

Reputable international organizations have expressed optimism about the prospects of Vietnam’s economy and predicted that Vietnam will recover rapidly in the near future. The WB, IMF and ADB forecast that Vietnam’s economy will grow by 5.5-6% in 2024. Fitch Ratings has upgraded Vietnam’s national credit rating to BB+ (from BB), with a long-term outlook of “Stable”. Vietnam’s national brands were valued at US$431 billion, ranking 32nd in the top 100 strong national brands in the world.

By Quynh Chi, Vietnam Business Forum