Vietnam’s economy is expected to get better in the Year of the Dragon 2024 and perform well for the rest of the decade.

Domestic enterprises are facing challenges as multinational enterprises have high requirements in technology, quality and optimisation, as well as reasonable cost, fast turnaround and delivery.

Vietnam has retained a positive spot in the global economy in 2023 despite the number of businesses leaving the market and the lower-than-expected growth rate for the third consecutive year.

Morgan Stanley Capital International (MSCI), a leading global provider of research-based indexes and analytics, has added three Vietnamese stocks to MSCI Frontier Markets Index.

Vietnam’s Manufacturing Purchasing Managers' Index (PMI) recorded a return to growth in early 2024, driven by an improved economic outlook that led to an increase in new orders, S&P Global has reported.

Vietnam's export earnings in January posted a year-on-year rise of 42% to about 33.6 billion USD – the highest monthly turnover since April 2022 when the figure stood at 33.26 billion USD, reported the Ministry of Industry and Trade (MoIT).

Economists say they can see brighter economic prospects in 2024, especially with positive foreign direct investment (FDI) flow.

It’s time to further promote the role of large corporations in this period when the Vietnamese economy needs added impulse to recover from the COVID-19 pandemic and global economic slowdown, according to the Ministry of Planning and Investment.

Although the unpredictable global market will affect the Vietnamese economy, there are still several channels that are likely to generate returns.

The Ministry of Industry and Trade will capitalise on signed free trade agreements (FTAs) to diversify markets, step up trade promotions and shift to exports through official channels with a view to gaining $377 billion in export revenue this year.

Despite a slowdown in industrial production, confidence among the business community is expected to continue climbing, which is backed by government efforts to provide a more friendly business environment.

Vietnam’s manufacturing sector displayed signs of improvement in January 2024, ending a five-month falling streak, as the S&P Global Manufacturing Purchasing Managers’ Index (PMI) rose to 50.3 from December’s 48.9.

Entering the market is already difficult, but maintaining market share can be even more difficult.

Businesses, supermarkets and petty merchants at traditional markets have prepared large inventories for the Tet sale season, but sales have been going slowly as people have cut back on spending.

The Ministry of Industry and Trade held a trade promotion conference in Hanoi on January 31 in an effort to boost trade promotion and market development in 2024.

The US Chamber of Commerce is reviewing the process of recognizing Vietnam’s market economy status, hoping to make it in time by June 2024, revealed US Ambassador to Vietnam Marc Knapper.

In 2024, the Government plans to improve the business environment through comprehensive reforms, policy changes and supporting businesses in 2024.

Joining IPEF, the new high-standard economic cooperation framework with the participation of strong power like the US and other countries in the Indo-Pacific could help Vietnam overcome numerous challenges posed by the sluggish global economy.

The government has requested new measures to assist Vietnam in maintaining its growth outlook and ensuring it meets export targets this year, via its annual resolution covering the general economic situation.

Despite a raft of challenges, the country recorded relatively comprehensive socio-economic achievements, standing out as a bright spot in the region and the world as a whole.