2023 growth targets cannot be easily achieved: NA Chairman

By Son Ha   September 19, 2023 | 11:48 pm PT
2023 growth targets cannot be easily achieved: NA Chairman
National Assembly Chairman Vuong Dinh Hue speaks at the Vietnam Socio-Economic Forum 2023, Sept. 19, 2023. Photo courtesy of National Assembly Media
The economy is under pressure with growth in the first half of 2023 falling to the lowest level in 12 years, National Assembly Chairman Vuong Dinh Hue has warned.

Speaking at the 2023 Vietnam Socio-Economic Forum Tuesday, he said with the growth falling to just 3.72%, the task of achieving the targets for the 2021-25 period and 2021-30 strategic period have become markedly difficult.

"Many of the economy’s main growth drivers have showed signs of deceleration in the first eight months of 2023," he said.

Goods exports fell by 10%, the steepest decline in 12 years, and the corporate bond and real estate markets are still struggling, he said.

It remains a challenge to attract FDI into large high-tech projects, he said. He admitted the economy has been facing more difficulties than expected.

Factory workers have been struggling to cope with furloughs and layoffs, and the limitations in the resilience of businesses and the economy are becoming increasingly evident, he said.

These issues require "solutions to be applied immediately as well as in the long term."

Nguyen Xuan Thang, director of the Ho Chi Minh National Academy of Politics and chairman of the Central Theoretical Council, said hidden shortcomings in the economy related to corporate bonds, real estate and stock markets had accumulated over the years.

They became more apparent after the Covid-19 pandemic as seen when market liquidity was affected due to lender SCB being placed under special control. Following a run on it, SCB was put under special control in October last year by the central bank.

While the economy has passed the most difficult period, there are still the risks of inflation this year and the recession of the corporate bond and real estate markets, he warned.

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