Industry and trade sector drives development

Vietnamese President Nguyen Xuan Phuc and the Republic of Korea’s (RoK) President Yoon Suk-yeol witnessed the signing of a Memorandum of Understanding (MoU) between Vietnam’s Ministry of Industry and Trade and the Ministry of Trade, Industry and Energy of the RoK, Seoul, December 2022

Could you tell us about the industry and trade sector’s 2022 achievements and contributions to Vietnam's economic development?

In 2022, despite major adverse impacts and the COVID-19 pandemic, Vietnam experienced strong economic recovery and reached its macroeconomic targets. The country maintained macroeconomic stability, ensured major economic balances and reached high gross domestic product (GDP) growth. The industry and trade sector contributed significantly to those achievements by realizing or exceeding targets set by the National Assembly and the Government. Vietnam reached an Index of Industrial Production (IIP) of nine percent (almost double that in 2021), and a 21-percent increase in total retail sales of goods and service revenues (almost triple the 8-percent target). In the first 11 months of 2022, the country’s budget revenues were 16.1 and 17.4 percent higher than the target and the same period of 2021, respectively.

Industry continues to be a major driving force of the country’s economic growth. Vietnam has maintained its leading position among countries and territories in terms of international trade while ensuring smooth supply chains of goods for the domestic market. The Ministry of Industry and Trade overcame difficulties and suggested solutions to ensure petroleum supply.

Vietnam has renovated trade promotion and improved the operational efficiency of its trade offices abroad.

The industry and trade sector has ensured sufficient power supply for people’s daily life and production in the post-pandemic period, contributing to production resumption and economic recovery.

Implementation of free trade agreements (FTAs) that Vietnam has signed contributed to the country’s foreign trade, while trade remedies reached outstanding achievements, protecting domestic production and markets.

Vietnam reached a record high foreign trade value of US$732.5 billion (up 9.5 percent from 2021) and exported US$11.2 billion more than it imported in 2022 (almost triple that in 2021), contributing to the country’s trade balance, foreign reserve, and interest rate and macroeconomic stability. This is the seventh year in a row that Vietnam has logged a trade surplus.

Prime Minister Pham Minh Chinh (first left) and Minister of Industry and Trade Nguyen Hong Dien (second left) visit a booth at a Vietnam National Brand Program event

What were 2022 domestic market highlights?

In the post-pandemic period, the domestic market has recovered quickly and has done better than it did in the pre-pandemic period.

Domestic trade and shopping demand have grown well, while consumption stimulation programs, including trade promotion events, were held simultaneously throughout localities nationwide. Supply-demand connection was implemented efficiently, while goods prices were kept relatively stable, and domestic manufacturers were connected with leading distributors nationwide.

In 2022, Vietnam's e-commerce market value was estimated at US$16.4 billion, accounting for 7.5 percent of the country's sales of goods and service revenues. With an annual increase of 20 percent, Vietnam was ranked fifth among countries worldwide in terms of e-commerce growth by eMarketer.

The industry and trade sector are assisting businesses in different localities to promote supply-demand connections and find new product sources. Many large distribution systems have increased goods stockpiles and launched trade promotion programs to meet the growing demand for goods in the final weeks of the lunar year.

Prime Minister Pham Minh Chinh (third left, standing) and Ministry of Industry and Trade leaders visit the Thai Binh Thermoelectric Plant 2

What are the industry and trade sector’s 2023 tasks, targets and solutions?

In the context of the complicated and unpredictable international situation, the Ministry of Industry and Trade will focus on the following key tasks.

The ministry will further efficiently follow and realize guidelines and policies of the Party and the State, especially those related to industrial and trade development, renovate and improve institution building (focusing on industrial development and policies), prepare action plans for and realize socioeconomic development and investment environment and national competitiveness improvement, while keeping eye on international and domestic situations to suggest relevant responses.

The sector will accelerate its restructuring based on science, technology, innovation and digitalization, speed up key infrastructure projects, simplify administrative procedures for new production and mining projects, provide suggestions for international economic integration, especially policies on foreign direct investment (FDI) attraction in the industry and trade sector, encourage FDI enterprises to support, transfer technology and share management expertise with domestic enterprises, and form supply chains of materials, improving the competitiveness of Vietnamese enterprises and their participation in global production and supply chains.

The ministry will consistently and efficiently implement free trade agreements, increase cooperation with potential neighboring markets, and assist localities and businesses to expand and diversify markets, supply chains, imports and exports, and focus on branding and sustainable export development.

Other tasks and solutions include developing domestic trade, combining traditional with modern trade, efficiently exploiting the potential of the country’s 100 million domestic consumers, closely monitor supply, demand, prices and markets of essential commodities, improve market inspection and control, combat smuggling, trade fraud, origin fraud, and unfair competition, better trade remedies, ensure a healthy and equal business and production environment for enterprises, and protect production and consumer interests in compliance with international commitments.

The sector will strengthen administrative disciplines, improve management and administration efficiency, innovate working styles and methods, accelerate administrative reform to encourage investors, producers and traders, promote information technology application, and continue building its e-government.