Why is Vietnam still a bright spot in global economy due to economic difficulties?

Vietnam’s economy is facing many challenges and difficulties besieging businesses, that is the opinion of Prime Minister Pham Minh Chinh, when chairing the regular Government meeting in July 2023, on the morning of August 5.

Speaking at the meeting, PM Chinh stated clearly that in the context of the international and regional situation continuing to develop rapidly and complicatedly; difficulties and challenges continue to outweigh opportunities and advantages.

Accordingly, there are major external challenges affecting Vietnam. Notably, Chinh pointed out the risk of a number of new risks and challenges in global food security when Russia and India stop exporting rice to ensure domestic food security. This will affect the world’s rice supply. At the same time, crude oil supply continues to shrink, pushing oil prices to the highest level since April 2023, greatly affecting Vietnam’s economy.


PouYuen Factory workers in Binh Tan district were fired due to lack of processing orders


According to the Prime Minister, in the Report of the Ministry of Planning and Investment sent to the Government, it was also pointed out that exports decreased mainly due to difficult access to credit, the socio-economic situation has had positive changes, but still face many difficulties.

PM Chinh made the above assessments and comments in early August 2023, different from the assessment of Chairman of the National Assembly’s Economic Committee Vu Hong Thanh, quoted by many domestic newspapers. when saying: “Vietnam is a bright spot in the gray picture of the world.”

VnExpress newspaper reported on September 17 that Chairman of the National Assembly’s Economic Committee Vu Hong Thanh made the above statement, based on the factors “In the first eight months of the year, Vietnam’s macroeconomy was stable. According to regulations, core inflation is controlled with an increase of only 3.1%, while many major economies are facing high inflation. Mr. Vu Hong Thanh’s statement may be based on new developments.

However, in July 2023, according to VNEconomy newspaper, Dr. Nguyen Dinh Cung, the Central Institute for Economic Management said, “With more than 30 years of experience through reforms, ups and downs, Vietnam’s economy, I see this as the most difficult time for the Vietnamese economy. Assessments that are not close to reality will make us rejoice at the light like a firefly and then lose it.”

Still according to Dr. Nguyen Dinh Cung, Vietnam should not expect the private sector to invest in business, because “they have no motivation, no incentive mechanism, business spirit is very bleak.”


According to observers, the current state of the Vietnamese economy is most clearly shown through the fact that a series of factories in the southern region are laying off workers due to lack of orders from abroad.

VnExpress newspaper reported in mid-August 2023 that Taiwan’s PouYuen factory announced the layoff of more than 1,200 workers, “due to difficulties with orders” and “few partners.” This is the third time in 2023 that PouYuen Company – an enterprise with the largest number of employees in Ho Chi Minh City – has fired workers, after laying off a total of about 8,000 people.

Meanwhile, the Private Economic Development Research Board, under the Advisory Council of PM Chinh, made forecasts that the wave of layoffs will still continue in the last months of this year, due to the “macro level difficulties.”

But the above is contrary to information from Nikkei Asia, in the article, “Factories are springing up like mushrooms, young people in the North [Vietnam] are not afraid of lack of jobs.”

Accordingly, if China is punished like Russia is now, foreign investors will leave the mainland market in droves, and vice versa, Vietnam has received countless requests from investors in the field of high-end electronics.




As described by Nikkei Asia, north of Noi Bai airport, a forest of cranes operates near the future location of Amkor – an important US semiconductor manufacturer. The front of a factory along the highway running north hangs a giant billboard “Recruiting 10,000 workers, good working environment, many opportunities for advancement.” And one of the young people looking for work at a recruitment center said, “All the young people from the northern agricultural provinces of Vietnam flock here, we find satisfactory jobs in just a few hours.” But notably, Nikkei Asia noted, the new factories were all built in Northern Vietnam and that created an imbalance in the economic planning map between regions.


Tra My – Thoibao.de

Kasse animation 7.8.2023