VINACHEM

Robust import-export activities and strategic investment attraction are key factors driving the feasibility of the 2024 economic growth target.

Economists affirmed that the 2024 GDP growth target of 7 percent is well within reach, supported by the encouraging performance of import-export, investment attraction, industrial development, and consumer spending in the first nine months.

The business sector has recently reported that numerous industries have seen significant growth in recent months.

Deputy General Director Nguyen Dinh Muoi of Vina T&T Import Export Service Trading Company said that since the start of the year, the company's export revenue has risen by over 25 percent compared to the same time frame last year. Key products such as frozen durian, grapefruit, and mango are among the primary exports to markets including the United States, Canada, Australia, Japan, and South Korea. Notably, regarding frozen durian alone, the company exports one container to the United States approximately every three days.

Brand Director Nguyen Thi Bich Son of Richy Joint Stock Company processing food and confectionery also said that from now until the end of the year, the company's export orders will increase sharply, and the whole year's revenue could reach more than VND2,000 billion.

According to a recent report by the General Statistics Office, electrical and electronic goods, computers group experienced negative growth, minus 2.3 percent, in 2023. Similarly, the growth rate of the motor vehicle manufacturing industry was minus 4.1 percent, leather and footwear saw it fall to minus 1.9 percent. Meanwhile, the rubber and plastics industry grew as low as 8.8 percent.

However, in just the first nine months of this year, these industries have demonstrated remarkable growth, reaching milestones of 9.1 percent, 13 percent, 11.6 percent, and 28.8 percent respectively.

Moreover, other product groups such as beds, cabinets, tables, chairs, coke, refined petroleum products, chemicals, and food processing have also achieved high growth rates ranging from 7.8 percent to 25 percent.

Furthermore, since the beginning of the year, Vietnam has welcomed 1,027 new foreign investment projects with additional capital exceeding US$7.64 billion. This represents a 7.3 percent increase in the number of projects and a substantial 48.1 percent growth in registered capital compared to the same period in 2023. Realized foreign investment capital reached $17.34 billion, a 8.9 percent increase year-over-year.

Chairman Bruno Jaspaert of the European Business Association in Vietnam confirmed that Vietnam's appeal to foreign investors remains strong, with a continued influx of foreign investment. The business confidence index of European enterprises in Vietnam has witnessed a significant surge, rising from 45.1 percent in the third quarter of 2023 to 52 percent in the third quarter of 2024.

In general, the industrial sector, import and export, foreign investment attraction and consumer price index all have impressive growth rates. In particular, industrial production maintained a higher growth rate in each quarter than the previous quarter; the industrial production index in the first nine months of the year is estimated to increase by 8.6 percent over the same period last year. Total import and export turnover reached nearly $579 billion, up 16.3 percent over the same period last year, of which exports increased by 15.4 percent.

According to Chairman Nguyen Ngoc Hoa of the Ho Chi Minh City Business Association, the world economic situation in the first nine months of 2024 is gradually stabilizing as global trade in goods has improved again, inflationary pressure has gradually decreased, financial conditions continue to be loosened, and labor supply has increased.

Plus, he was delighted because based on actual surveys of member enterprises, export orders have increased while order value has also increased compared to previous years.

Chairwoman Ly Kim Chi of the Ho Chi Minh City Food and Foodstuff Association noted that agricultural and food enterprises have a full order book until the end of the first quarter of 2025. Agricultural products, fruits, and processed foods receive most orders.

Despite these achievements, economic experts caution against complacency. Strict regulations and standards from major export markets on sustainable development, coupled with unpredictable global market fluctuations impacting the supply chain, pose challenges for enterprises.

Moreover, Vietnam's competitive advantage in certain products is being tested by countries like India and Thailand, even within the domestic market.

Deputy Director Ngo Xuan Nam of the Vietnam SPS Office, recommended that enterprises proactively monitor and adapt to market changes. By doing so, they can effectively adjust their production standards and maintain their competitive edge.

On the other hand, experts believe that improvement of the investment environment, the building and the creation of growth momentum for the economic sector need to be carried out synchronously and consistently.

Vietnam in generally and Ho Chi Minh City in particularly must prioritize transparency and streamline legal procedures to facilitate investment activities, especially procedures involving land - a significant challenge, said Vice Chairman Phan Quang of CT Group, underscoring the need for improvement.

Representatives of several corporations also suggested that the Government and ministries should prioritize maintaining trade flows, establishing dedicated corridors for essential goods and services, and accelerating digital transformation in public administration and infrastructure development. Digitizing logistics is crucial to keep pace with e-commerce and transportation infrastructure.  – Source: SGGP –