Vietnam’s Economic Growth: Rising Exports and Strategic Initiatives
This article outlines the recent developments in Vietnam’s economy, highlighting the increasing exports of rice and coffee, the rise in e-commerce tax revenue, and the support for SMEs through enhanced financial connections. The initiatives to expand into international markets and improve trade relations, particularly with Japan and Brazil, are notable, as well as Vietnam’s ambition to become a significant international financial center.
Vietnamese rice has gained attention among Japanese consumers, reflecting significant interest in imported goods within Japan’s marketplace. Additionally, the tax revenue from e-commerce in Vietnam has risen considerably, with major foreign suppliers such as Google and Facebook fulfilling tax obligations through an electronic portal, generating approximately 2.91 trillion VND (about 114 million USD).
In the coffee sector, Vietnam’s exports have thrived, reaching an impressive 1.72 billion USD in the first two months of the year due to a surge in global prices, despite a decrease in export volume of 22%. Furthermore, the reference exchange rate established by the State Bank of Vietnam was set lower at 24,793 VND/USD as of March 18.
The Finance Ministry of Vietnam has stepped in to assist small- and medium-sized enterprises (SMEs) by fostering connections with investors and financial institutions. Meanwhile, an initiative supported by the International Finance Corporation (IFC) and Switzerland aims to enhance supply chain finance, projecting 35 billion USD in financial access for SMEs over the course of the project.
Vietnam has also emerged as Brazil’s second-largest provider of aquatic products, with exports increasing 44.5% year-on-year as of February, totaling 1.42 billion USD for January and February 2025. In terms of economic policy, the central bank plans a roadmap for eliminating the current credit growth quota system which has disproportionately affected bank lending.
After a temporary suspension, the e-tax system in Vietnam has resumed full operations, enhancing tax management. The customs sector recently adopted a three-tier model, which significantly streamlined its organizational structure, reducing the number of units from 902 to 417. Industrial real estate is expected to benefit from recent policy accelerations that remove legal barriers, promoting foreign direct investment.
Vietnam Airlines and Vietjet Air are set to operate flights from the new Terminal T3 at Tan Son Nhat International Airport, designed to accommodate 20 million passengers annually. On the international trade front, Vietnam aims for a daunting export revenue target of 454 billion USD amidst challenging global conditions, posting a 9.9% increase in exports early this year.
Moreover, Vietnam Airlines has announced the resumption of direct flights on the Hanoi-Moscow route starting May 8, as part of a broader strategy to reinstate 15 international flights in 2025. Scholars affirm that Vietnam is well-positioned to develop into an international financial center, emphasizing the critical role of human capital.
Furthermore, a forum has been established to promote trade and tourism between Japan, Vietnam, and Thailand, aiming to create a beneficial economic triangle. Lastly, Hoa Phat’s hot rolled coil products have been exempted from the EU’s anti-dumping duties, strengthening its market position in international trade and enhancing opportunities for downstream businesses in the EU market as well.
In conclusion, Vietnam is witnessing remarkable growth in various sectors such as rice, coffee, and aquatic product exports, while also enhancing its domestic tax collection via e-commerce. Strategic initiatives by government institutions, alongside significant foreign investments, aim to bolster the economy and support SMEs. Moreover, plans to establish Vietnam as an international financial hub align with the broader objective of enriching economic and trade relationships with countries like Japan and Brazil. These advancements reflect Vietnam’s ambition to adapt and thrive in the global market.
Original Source: en.vietnamplus.vn
