Vietnam economy faces headwinds next year: PM

By Duc Minh   December 17, 2022 | 11:53 pm PT
Vietnam economy faces headwinds next year: PM
Prime Minister Pham Minh Chinh speaks at Vietnam Economic Forum on December 17, 2022. Photo by Vietnam Government Portal
Difficulties will continue to challenge the Vietnamese economy in 2023, even if there are some bright spots on the horizon, Prime Minister Pham Minh Chinh said.

"We are not wavering, nor subjective, neglectful and caught off guard. Instead, we must stay calm and have a firm grasp of the situation to find solutions," Chinh told the Vietnam Economic Forum on Saturday.

Chinh stressed that the country should implement monetary policy in both firm and flexible ways, stabilize the foreign exchange market, meet the economy's credit demand, and ensure reasonable credit growth.

He also asked to continue to reform tax procedures, promote digitization, and stabilize the property, corporate bonds and stock markets.

The PM suggested that banks look for ways to lower interest rates, bond issuers to fulfill the obligation to repay principal and interest as committed. In case of difficulties, they must actively negotiate with investors to restructure bond debts, interest rates and payment terms. Investors should share information with issuers according to the law, he said.

Regarding the property market, Chinh said restructuring segments, prices and products, as well as support for the development of social housing projects, worker housing and commercial housing for low-income people would all be required.

"The government has put in place policies to make housing more affordable. Businesses have to change, too, because they can't keep charging high prices and putting most of their money into the high-end segment," he said.

Tran Tuan Anh, head of the Central Economic Commission, previously said Vietnam's GDP growth this year is forecast to reach 8% this year, it’s highest climb in 11 years.

Inflation in Vietnam has been less than 4% year-on-year, while exports increased by more than 13.4% over the first 11 months of 2022. At the same time, FDI disbursements went up by more than 15% compared to the same time last year.

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