Vietnamese economy rebounds but challenges remain

The Vietnamese economy is rebounding strongly with impressive growth in newly established enterprises, industrial production and export-import, but is still faced with quite a few challenges and difficulties.

Manufacturing of electronic parts. (Photo: VNA)
Manufacturing of electronic parts. (Photo: VNA)

According to a report by the Ministry of Planning and Investment, the Vietnamese economy continued to recover in April on top of the momentum recorded in the first quarter of 2022. Specifically, industrial production rose 2% from the previous month and 9.4% over the same month last year. Overall industrial production grew 7.5% in the first four months of 2022 while manufacturing expanded by 11.3%. The number of workers in factories also rose 1.3% month on month and 3.9% from a year earlier.

Total retail sales and consumer services in April climbed 12.1%, which translated into a 6.5% rise for the four months. Exports during January-April went up 16.4% while imports rose 15.7%, with a trade surplus of 2.5 billion USD.

Tourism saw a strong recovery as international arrivals in April rose more than twofold compared to March and over fivefold compared to the same month last year. Disbursement of foreign direct investment was estimated at 5.92 billion USD, the highest figure since 2018.

Notably, the number of new enterprises in the first four months of 2022 rose by 12.3%, while those returning to business soared by 60.6%. Total additional capital rose by 39.4%.
Macroeconomic stability continued to be maintained and inflation was kept in check although Vietnam was facing considerable pressure. The consumer price index during the January-April period rose by 2.64% year on year.

Despite such impressive results, the Vietnamese economy is still facing various challenges due to the complex global situation, inflationary pressure, rising oil prices and supply chain disruptions, said Minister of Planning and Investment Nguyen Chi Dung.

He emphasised that Vietnam’s economic recovery is positive but has not met expectations, adding that it will take time for some sectors to recover while the implementation of support policies is slow.

At the April meeting of the Government, Prime Minister Pham Minh Chinh asked for support policies to be implemented quickly and effectively so that people and enterprises can truly enjoy their benefits, helping to improve the business climate and enhance the people’s welfare.

He called for close monitoring of global economic developments, especially inflation and prices of fuels and strategic materials to make accurate forecasts and take prompt response measures.

In addition, the Government requested localities to take bold actions to accelerate the disbursement of public investment and establish working groups to remove barriers facing key projects in 2022. They also need to expedite the roadmap for cutting and simplifying administrative procedures and improving the business climate.