Vietnam’s H1 2023 growth lags behind annual target

In H1 2023, Vietnam reported a modest economic growth of 3.72%, casting doubt on achieving the 6.5% GDP growth target for the year, as stated by Deputy Minister of Planning and Investment, Tran Quoc Phuong. The after-effects of the COVID-19 pandemic have stymied production across multiple sectors. Enterprises face challenges related to market access, cash flow, and cumbersome administrative procedures. Furthermore, H1 2023’s credit growth was recorded at 4.28%, a significant drop from 2022’s 9.44%. Phương stressed that missing this year’s growth target could derail longer-term strategic plans spanning up to 2045. To combat this, changes in investment, production, and business-related policies are being suggested. Notably, experts emphasise the need for innovative economic models and improving business climates for sustained growth.