Though boasting their own appeal, Vietnam’s major cities have failed to compete with their regional counterparts in tourist numbers and return visitors.
Mr. Suan Teck Kin, Head of Research and Executive Director, Global Economics and Markets Research, at UOB, identified three challenges and three opportunities for Vietnam’s economy in the Trump 2.0 era.
Vietnam is poised to capitalize on the burgeoning global Halal market but stringent certification requirements, lack of awareness, and fierce competition count among the challenges.
Vietnam has accumulated experience in pandemic prevention, risk management, and crisis management over the years, which will help it overcome the difficulties in 2023.
According to Tech in Asia, the level of technology adoption in agriculture is still low in Vietnam because of a lack of capital. Only a few startups have raised capital externally.
Having applied a national multi-dimensional poverty line in 2015, Vietnam has been a pioneer in the Asia-Pacific region in applying the line as a tool for targeting and monitoring poverty and policy formulation. However, the poverty that exists among ethnic minorities and people living in some coastal and island areas is a challenge for Vietnam in achieving the sustainable development goals.
The Vietnam Leather, Footwear and Handbag Association (LEFASO) has reported that leather and footwear exports have been quite positive in the first half of 2022 but uncertainties over raw material supplies and orders slowing in the closing months of the year are still of concern to businesses. The industry will continue to face risks such as large inventories and slowing orders in the second half.
Vietnam’s exports totaled more than $216 billion in the first seven months of 2022, a 16.1 per cent increase year-on-year. Maintaining export growth over the closing months of the year is expected to face challenges as demand from import markets is affected by inflation and recession.
