Việt Nam’s top 10 economic highlights of 2023

Despite falling slightly short of the year's set target of 6.5 per cent, Việt Nam's 5 per cent GDP growth has been assessed by international financial institutions as outperforming many economies given the ongoing global economic downturn.

The Vietnam News Agency has selected the top ten noteworthy events that shaped the country's economic landscape in the year 2023.

1. Việt Nam emerges as a beacon of economic recovery

Despite falling slightly short of the year's set target of 6.5 per cent, Việt Nam's 5 per cent GDP growth has been assessed by international financial institutions as outperforming many economies given the ongoing global economic downturn. Factors contributing to the country's economic recovery include record-breaking exports, public investment disbursement efforts, the highest FDI since 2020, and a rebound in domestic services. Major media outlets have acknowledged Việt Nam's growth efforts, positioning it as an attractive trade partner and investment destination.

2. Politburo issues resolution on harnessing Vietnamese entrepreneurs’ role in a new era

On October 10, the Politburo issued Resolution 41-NQ/TW, outlining ways to build and leverage the role of Vietnamese entrepreneurs in the new era. As the second resolution focusing on the group in the past 12 years, it highlighted seven key tasks and solutions to develop capable entrepreneurs and a group of globally recognised businesses that lead some global supply and value chains.

3. Record public investment disbursement

The country's public investment disbursement is estimated to reach an unprecedented value of over VNĐ461 trillion (US$19 billion), the highest to date. This achievement is attributed to the relentless efforts of the Government, ministries, and local authorities in addressing administrative hurdles and streamlining procedures. Swift and efficient disbursement of public investment has become a vital driving force, propelling rapid and sustainable economic growth in the upcoming period.

4. Eighth consecutive year of trade surplus

2023 has marked the country’s eighth consecutive year of trade surplus with an impressive figure of about $26 billion, nearly tripling 2022. Various agricultural product groups have capitalised on export opportunities, with more than eight million tonnes of rice sold overseas for over $4.4 billion, the highest value since 2009. The favourable export structure has facilitated deeper integration of Vietnamese goods into global production and supply chains, and the trade surplus has contributed positively to the balance of payments, thus increasing foreign currency reserves and stabilising exchange rates.

5. Putting into operation 475 km of new highways in a single year

The completion of 14 key transportation projects, including components of the North-South Expressway- Phase 1, extending the total length of the country's expressways to 1,892 km. This achievement aligns with one of the three breakthroughs outlined in the nation’s socio-economic development strategy for 2021-30.

6. Central bank’s unprecedented consecutive policy interest rate reductions

In an unprecedented move, the State Bank of Việt Nam (SBV) made four consecutive reductions of policy interest rates from March to June by 0.5-2 percentage points per annum. This flexible measure served as a foundation for credit institutions to lower lending rates, thus aiding economic recovery and growth.

7. National Power Development Plan VIII approved

After years of preparation, review and revision, on May 15, 2023, the Prime Minister signed Decision 500/QD-TTg approving the National Power Development Plan VIII for 2021-30, with a vision to 2050. This plan has opened up new space for Việt Nam's sustainable and just energy development, aligning with the Party’s and State's guidelines and policies, and the country's practical capabilities.

8. Unprecedented policies released to support the real estate market

The Government and various ministries and agencies have introduced unprecedented legal and financial mechanisms to remove legal and financial hurdles for and recover the real estate market. Notable among these are the Government’s Resolution 33/NQ-CP, outlining measures to promote a safe, healthy and sustainable realty market, and Decree 10/2023/ND-CP amending and supplementing some articles of decrees guiding the implementation of the Land Law, as well as an initiative to invest in constructing at least one million social housing units for low-income individuals and industrial zone workers between 2021 and 2030.

9. Coordination to rectify vehicle registration

Widespread irregularities related to corrupt practices by certain personnel in the vehicle registration and inspection sector were uncovered on a broad scale. At the peak of the crisis, 106 out of 281 motor vehicle registration centres across the country were forced to suspend operations. This marked the first occurrence of long queues of cars and trucks waiting for registration, adversely affecting citizens, transport businesses and logistics activities. The Government, relevant ministries and law enforcement agencies had to collaboratively address the issue, with the Ministry of Transport proposing the involvement of the police and military forces to support the registration of civilian motor vehicles. On June 8, the Government issued Decree 30/2023/NĐ-CP, amending some provisions of Decree 139/2018/NĐ-CP dated October 8, 2018, regarding the business of motor vehicle registration services.

10. Tightening monitoring of “mini-apartment” construction

The tragic September 12 fire at a "mini apartment" complex on Hà Nội's Khương Hà Street resulted in 56 fatalities and 37 injuries. This catastrophe rang the alarm about lax construction management in urban and residential areas. Following the direction of the Prime Minister, authorities at all levels and relevant sectors conducted a comprehensive review to rectify and tighten construction management and take urgent measures to prevent and control fires in apartment buildings, multi-unit residences, and rental housing facilities.