| Southeast Asia becomes a growth pillar in Asia 4 notes to help Vietnam achieve its 2024 growth target |
Vietnam must achieve 6.75% growth in the remaining 9 months
GDP in the first quarter of 2024 grew by 5.66% compared to the same period in 2023. Although there were many positive signals, according to economic experts, the opportunity for Vietnam to achieve the growth target of 6.5% is still extremely difficult. Because according to the General Statistics Office, to achieve the growth target of 6.5% in 2024, Vietnam's GDP growth in the remaining 9 months must reach a growth rate of 6.75%, specifically in the second quarter of 2024, growth will be about 6.32%; in the third quarter of 2024, growth will be about 6.79%; and in the fourth quarter of 2024, growth will be about 7.08%.
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| To achieve the growth target of 6.5% in 2024, Vietnam must achieve a growth rate of 6.75% in the remaining 9 months. (Illustration photo) |
Also talking about the challenges to Vietnam's economic growth, Mr. Trinh Minh Anh - Chief of Office of the Steering Committee for International Economic Integration ( Ministry of Industry and Trade ) said: The world and regional economies have been, are and may continue to face many difficulties and challenges when factors closely affecting economic growth are still "messy" and have not been thoroughly resolved.
Along with that, geopolitical conflicts, food security, energy security, climate change, inflation, currency, public debt, etc. are global issues that have impacts on the Vietnamese economy. In that context, to take advantage of growth opportunities, Vietnam needs to effectively implement Free Trade Agreements (FTAs).
According to statistics, Vietnam has signed 16 FTAs, of which 15 are being implemented. The implementation of FTAs in recent times has opened up great opportunities for Vietnam in expanding markets, increasing trade, import and export and investment, contributing to maintaining a high growth rate of 6-7%/year for the Vietnamese economy; the macro economy is increasingly stable; inflation is controlled, and major balances are ensured.
However, in 2024, regional and world GDP growth is forecast to still face many risks and unpredictable fluctuations with many opportunities and challenges intertwined. Accordingly, achieving the 6.5% growth target as set by the National Assembly is not simple, especially in the context of many markets increasingly promoting standards related to consumer safety and sustainable development, and combating climate change. The trend of trade protectionism is more prevalent, many countries have measures to bring investment back to the country, erecting trade barriers to protect and promote domestic production.
In particular, looking at market changes, the transition to green production is no longer a choice but a mandatory requirement, a market order. In addition to factors such as price, product quality and delivery time, greening and sustainable development are competitive criteria that major markets such as the US, EU, and Japan require of suppliers. Vietnamese export enterprises that want to survive must overcome the "green" problem in production activities, with many criteria for handling waste to meet standards, energy-saving production, and waste recycling solutions.
Trade, import-export and investment activities in 2024 have many opportunities to recover and grow as inventory problems in many countries are gradually being overcome. Efforts to promote negotiations and diversify Vietnam's import and export markets will bring competitive advantages to exports in the coming time.
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| Effective implementation of FTAs will open up economic growth opportunities for Vietnam (Illustration photo) |
Opportunities from effective implementation of FTAs
According to Mr. Trinh Minh Anh, the effective implementation of FTAs will bring great opportunities for Vietnam to achieve its growth target. In fact, to increase the effectiveness of FTA implementation, the Steering Committee for International Economic Integration, relevant ministries and sectors have repeatedly consulted businesses and industry associations and reported to the Government on a number of policy recommendations to improve the effectiveness of FTA implementation, thereby improving the adaptability of businesses, industries and products in the process of international economic integration.
However, to make the most of FTAs, the most important thing for Vietnam is to perfect its institutions and legal policies to ensure consistency, uniformity, fairness, transparency, non-discrimination, and proper procedures to limit disputes with foreign investors and effectively resolve disputes if any.
At the same time, continue to build and perfect the early warning mechanism to prevent disputes. Along with that, there needs to be synchronous coordination of all levels, sectors, localities and enterprises. Regularly inspect and supervise the implementation and enforcement of FTAs that have come into effect on the basis of maximizing internal resources, closely linking and promoting the process of institutional improvement, improving the quality of human resources, modernizing infrastructure, enhancing overall strength and competitiveness.
Thus, according to Mr. Trinh Minh Anh, to achieve the goal of effective implementation and take advantage of the opportunities that FTAs bring, Vietnam needs to have a methodical strategy, a positive and proactive spirit, and strong innovation in both thinking and action.
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