Outstanding economic events of Vietnam in 2022

Hanoi (VNA) – Faster-than-expectedGDP growth, the upgrade of Vietnam’s credit ratings, and big fluctuations inthe corporate bond market are among notable events of the Vietnamese economy in2022.

The following is the list of the top10 defining events of the economy this year selected by the Vietnam NewsAgency’s Department of Economic News.

1.Issuance of six resolutions on regional socio-economic development and defence-security safeguarding

A national conference to disseminate and launch the implementation of the Politburo's Resolution No 13-NQ/TW, dated Arpil 2, 2022, on orientations for socio-economic development and defence-security safeguarding for the Mekong Delta (Photo: VNA)

For the first time, the Politburoissued six resolutions on socio-economic development and defence-security safeguardingfor 2030, with a vision to 2045, for six regions to tap into advantages of eachregion while enhancing connectivity within each region and among differentregions.

At its third session, the 15th-tenureNational Assembly also made investment decisions about five key transportprojects expected to create an infrastructure breakthrough and connect regionsnationwide.

2.Faster-than-expected GDP amid bleak world economic situation

An oil rig on the Bach Ho (White Tiger) oil field (Photo: VNA)

Vietnam’s 2022 GDP growth isestimated at 7.5-8%, higher than the target of 6-6.5%. Meanwhile, inflationhas been curbed to stand at 3.1-3.3%, and about 21 billion USD in foreigndirect investment (FDI) disbursed, up over 8% year on year. Total exports andimports this year are valued at some 750 billion USD, rising 12.18%, accordingto the General Department of Vietnam Customs.

These are impressive results amid underminedgrowth momentum of the world economy and soaring inflation and living expenses.

3.Issuance of national master plan for 2021-2030, with vision to 2050

Prime Minister Pham Minh Chinh chairs a national teleconference to accelerate the building of the national master plan for 2021-2030, with a vision to 2050. (Photo: VNA)

On October 25, the Government issued Resolution No 138/NQ-CP on the national master plan for 2021-2030, with a vision to 2050.

This was the first time a national master plan had been built on thebasis of the Law on Planning and the resolutions and conclusions of the Party Central Committee, Politburo, andNational Assembly on national socio-economicdevelopment in the time ahead.

The plan specifies the distribution and arrangement of space for socio-economic,defence, security, and environmental protection activities that are nationallyand internationally important and strategically inter-regional in theterritory, including the mainland, islands, archipelagoes, sea areas, andskies.

4. International organistions’upgrade of Vietnam’s credit ratings

The automobile assembly line of Hyundai Thanh Cong (Photo: VNA)

In 2022, three leading credit rating agencies in the world, namely Moody’s,Standard & Poor’s (S&P), and Fitch Ratings, made positive assessmentsof Vietnam’s credit ratings. On September 6, Moody’s upgraded Vietnam’slong-term issuer and senior unsecured ratings to Ba2 from Ba3 andchanged the outlook to stable.

Vietnam was the only in theAsia-Pacific and one of the four countries in the world for which Moody’s raised the ratings. International organisations highly valued thecountry’s efforts in implementing macro-economic policies, keeping financialstability, and surmounting external shocks.

5.Continual adjustment of regulatory interest rates, exchange rates in over onemonth

The regulatory interest and exchange rates were adjusted continually in over a month. (Photo: VNA)

For the first time, within more thanone month (from September 23 to October 25), the State Bank of Vietnamcontinually adjusted the regulatory interest and exchange rates, with theregulatory interest rate and deposit interest rate ceiling raised twice, andthe USD/VND trading band expanded from +/-3% to +/-5%.

The flexible governance by the Governmentand the central bank has helped contain inflation and enhance people,businesses, and investors’ trust in Vietnam’s investment climate.

6.Vietnam named first country to successfully develop, produce African swinefever vaccines

NAVET-ASFVAC is one of the two African swine fever vaccines made by Vietnam. (Photo: VNA)

Vietnam was the first country tohave successfully developed and produced two African swine fever vaccines, NAVET-ASFVACand AVAC ASF LIVE, which are the first commercial vaccines for this disease.

The Ministry of Agriculture and Rural Development is set to put thevaccines into use nationwide in early 2023. This success has also opened upprospects for exporting African swine fever vaccines.

7.Many new records in stock market

Strong fluctuations have turned VN-Index into one of the most volatile indexes in the world. (Photo: VNA)

In 2022, VN-Index surpassed 1,500points for the first time, but dropped to less than 900 points within over sixmonths. Such fluctuations have turned VN-Index into one of the most volatile indexesin the world.

The market capitalisation on the HoChi Minh Stock Exchange (HoSE) hit a record of more than 6 quadrillion VND(254.5 million USD at the current exchange rate) in early April. In the first11 months, individual investors opened nearly 2.5 million new securitiesaccounts, the biggest number in the 22-year history of Vietnam’s stock market.

Amid the market’s hot growth and signsof stock price manipulation, authorities have taken strong actions to tighten disciplineand improve the health of the market.

8.Strong fluctuations on corporate bond market

On April 5, the investigation police agency under the Ministry of Public Security arrests Do Anh Dung, Chairman and Director General of Tan Hoang Minh Group for suspected legal violations relating to bond issuance and capital raising. In the photo: investigators are seen at the Tan Hoang Minh's headquarters on Quang Trung street, Tran Hung Dao ward, Hoan Kiem district of Hanoi. (Photo: VNA)

The corporate bond market, a medium-and long-term capital mobilisation channel, was negatively affected when investigationswere launched into some cases involving wrongdoings in corporate bond issuance.Individual investors sold bonds before maturity due to concerns over businesses’failure to repay debts.

To rectifyactivities in this market, the Government released Decree No 65/2022/ND-CP onSeptember 16 to amend Decree No 153/2020/ND-CP that stipulates rules oncorporate bond offerings. It also requested the Ministry of Finance to continueoverhauling Decree 65 in order to guarantee publicity, transparency, thelegitimate rights and interests of investors, along with the safety and securityof the financial and monetary markets.

9.Electronic toll collection applied nationwide

Vehicles pass an electronic toll gate on Hanoi - Hai Phong Expressway. (Photo: VNA)

On August 1, all expresswaysnationwide applied electronic toll collection (ETC). Piloted since 2015, theETC application encountered difficulties after repeated delays. The concertedimplementation of ETC is expected to help improve service quality, reduce travel time and expenses, ease traffic congestion and environmental pollution,promote convenience and transparency, and safe management and supervision costs.

10.Fuel shortages in many localities

Motorcyclists wait to refill their vehicles at a gas station on Lac Trung street, Hanoi on November 5. (Photo: VNA)

In October and November, residentsin many localities had to wait in long queues to buy fuel. This situation cameas a result of complex developments in the global oil market, and it alsorevealed problems in the management of petrol and oil trading.

Asdirected by the Government, the Ministry of Finance, the Ministry of Industryand Trade, and the State Bank of Vietnam promptly carried out solutions totackle this situation./.

VNA