Driving recovery: Shops selling rice and nuts are seen at the Rong market in Ninh Binh in Vietnam. A decline in aggregate demand will affect all three components – investment, exports and consumption – of the country. — Bloomberg
HANOI: Vietnam’s economic prospects for 2024 involve revitalising aggregate demand, promoting sustainable growth, and improving the investment environment to drive long-term development.
A national scientific seminar titled “Vietnam Economy in 2023 and Prospects for 2024” was held here on Wednesday.
The seminar, organised by the National Economics University in collaboration with the Party Central Committee’s Economic Commission, marked the release of the annual publication “Vietnam Economic Assessment 2023” under the theme “Promoting Aggregate Demand for Economic Growth in the New Context.”
During the seminar, experts assessed the current state of aggregate demand and its components, identified achievements, limitations, and underlying causes.
They also evaluated the contributions of different factors to economic growth and proposed directions and policy recommendations for economic management in 2024 and beyond, with a focus on promoting aggregate demand and ensuring sustainable economic growth in the changing landscape.
Prof Pham Hong Chuong, the Rector of the National Economics University, emphasised the challenges faced by the Vietnamese economy in 2023.
He highlighted the difficulties arising from global economic slowdown, high global inflation, tightened monetary policies in many countries, and increased geopolitical tensions.
These factors led to lower economic growth compared with the pre-Covid-19 period, particularly due to weakened aggregate demand, consumption, and investment, as well as a lack of improvement in growth quality.
Aggregate demand plays a vital role in determining economic activity, employment levels, and overall growth.
A decline in aggregate demand indicates the risk of an economic recession, impacting industrial production, employment rates, and people’s income and expenditure in general.
To address these challenges, the government and relevant entities must promptly implement appropriate measures to strengthen the drivers of recovery and create conditions for economic development in the new context.
Restoring aggregate demand is essential for Vietnam’s economic stability and growth. Nguyen Duc Hien, deputy head of the Central Committee’s Economic Commission, emphasised the decline in aggregate demand, which affects all three components – investment, exports and consumption – of the country. — Viet Nam News/ANN
