Vietnam’s economy continues to perform well but is being hindered by a number of challenges caused by contractions in the agriculture and mining sectors in the first half of the year.
Hanoi (VNA) – Vietnam’s economy continues🌳 to perform well but is being hindered by a number of challenges caused by contractions in the agriculture and mining sectors in the first half of the year, the Asian Development Bank (ADB) said in a new flagship report launched on September 27.
Eric Sidgwick, ADB Country Director for Vietnam, said drought in the Mekong Delta and Central Highlands regions and low global commodity prices eased economic growth in the first half of the year, but other sectors have grown strongly.
“Manufacturing expanded by double-digits as new foreign-invested factories ramped up production, while services picked up as a result of rising domestic trade, growing bank lending and a 25 percent jump in tourism arrivals,” he said.
The Asian Development Outlook Update (ADOU) 2016 forecasts a downward revision in Vietnam’s economic growth to 6.0 percent in 2016, and 6.3 percent in 2017.
The country’s economic growth is expected to rise in the second half of the year, buoyed by further increases in foreign direct investment and exports, domestic credit growth, a slight recovery in agriculture and accelerating disbursements of capital expenditure on national infrastructure programmes.
The report stressed that while Vietnam’s economy is performing reasonably well against a challenging back-drop, a number of issues will need to be addresses to ensure growth remains sustainable.
A recent surge in bank lending increases the importance of efforts to tighten regulations to prevent a rise in financial sector risks.
Further, to ease public debt pressures a growth-friending fiscal consolidation is needed, including a rationalisation of recurrent expenditure and tightening of the public sector wage bill.
Administration costs as a share of total state budget spending have risen from an average of 8 percent between 2007 and 2009 to 11 percent during the 2013-2016 period.
The report noted that t rade performance remains a bright spot for Vietnam’s economy. In the first six months of 2016, the country produced a large merchandise trade surplus equal to estimated 8.2 percent of GDP. This outcome was a big improvement on 2015 and reflects continued growth in exports while import demand has eased.-VNA
Vietnam has seen clear progress this year in many areas like banking sector reforms, capital markets and foreign investment. Economist Vu Dinh Anh speaks with Vietnam News Agency about this.
Vietnam has emerged from a backward country with 90 percent of its population working in the agricultural sector, to one that is well on its way towardsindustrialisation and modernisation.
After 30 years of the ‘Doi Moi’ (renewal) process, Vietnam has emerged from a backward country with 90 percent of its population working in the agricultural sector.
With impressive macro-economic indexes in recent years, Vietnam has strong appeal for French businesses, according to Commercial Counsellor at the Vietnamese Embassy in France Nguyen Quynh Anh.
The new Government decree also simplifies loan procedures while expanding credit incentives to include organic and circular agriculture, allowing them to access preferential terms similar to those of high-tech and value-chain based agricultural production.
Developed with state-of-the-art infrastructure, the Da Nang FTZ is designed to become a leading regional economic centre and a strategic growth pole in Vietnam’s new development landscape.
The Binh Duong Association of Supporting Industries (BASI) is expected to promote the usage of domestically manufactured components while supporting businesses in accessing international markets, strengthening linkages, and promoting deeper integration into global supply chains.
PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.
The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Illustrative photo. (Photo: VNA)
