Vietnam shows outstanding Q3 growth
Vietnam shows outstanding Q3 growth
Following its recent impressive economic progress, Vietnam has featured in the Global Economic Conditions Survey (GECS) report for the third quarter of 2023 by the Association of Chartered Certified Accountants (ACCA) and Institute of Management Accountants (IMA).
According to the report, Vietnam's economy has displayed remarkable recovery and resilience in the first three quarters of the year. Highlights of Vietnam's economic performance include its positive GDP growth and the state budget revenue, with the former being nothing short of impressive.
In the first quarter of 2023, GDP surged by 3.32 per cent, building momentum with a 4.14 per cent increase in the second quarter, and an impressive 5.33 per cent rise in the third quarter. The country is on track to achieve an annual growth rate of over 5 per cent, surpassing many of its regional and global counterparts. Despite the economic growth target for 2023 being set around 6.5 per cent, Vietnam's performance remains commendable.
The state budget revenue for the first nine months reached 75.5 per cent of the estimate. The government has also taken proactive measures to reduce, exempt, and extend various taxes, fees, and land rent payments, amounting to approximately VND75 trillion ($3 billion). Additionally, a wage reform fund of approximately VND560 trillion ($23 billion) has been established to ensure sufficient resources for salary reform in the years 2024-2026.
According to the GECS, there were tentative signs of improvement in Asia-Pacific, but it is Vietnam that has seen its reputation on the world stage continue to rise. International organisations have lauded the country's economic achievements and growth prospects. With a national brand value reaching $431 billion, Vietnam ranks 32nd out of 100 strong national brands worldwide.
During the opening session of the 6th National Assembly of the 15th tenure, Prime Minister Pham Minh Chinh underscored the pivotal role of the finance sector in driving Vietnam's economic growth, emphasising the need for collaboration between financial professionals and government initiatives to overcome challenges and bolster the nation's economic resilience. Additionally, the PM highlighted the challenging yet significant tasks for the remainder of 2023 and into 2024, and required the focus to remain on promoting strong economic growth through investment, consumption, and exports.
The GECS highlighted fluctuations in global economic confidence, with varying degrees of decline in different regions. North America experienced a notable reduction in confidence, whereas Asia-Pacific saw modest improvement, possibly reflecting policy easing in the Chinese economy.
Despite these regional variations, the global economy faces several challenges. The GECS suggests further loss of global economic momentum, with risks heavily tilted towards the downside. These risks include the delayed effects of previous monetary tightening, soaring government bond yields, rising oil prices, challenges in the Chinese economy, and geopolitical factors.
The survey highlights the rapid and interconnected nature of global issues today and underscores the critical role that accounting and finance professionals can play in connecting the dots, understanding, and prioritising the existential matters affecting their organisations.
As business models continue to evolve at an unprecedented pace, accounting and finance professionals should proactively review the rollout of products and services, with an aim to identify any potential ethical or legal conflicts. It is essential that finance and accounting experts remain cognizant of the evolving landscape and adapt their strategies accordingly. Their efforts in aligning business practices can help cultivate a more responsible and sustainable business environment.
Jonathan Ashworth, chief economist at the ACCA, said, "Talented accountants play a pivotal role in the development and sustainability of businesses. Accountants must provide their firms or clients with appropriate advice to plan effectively and be aware of the prevailing economic conditions, so they can make informed decisions."
According to To Quoc Hung, country manager of ACCA Vietnam, "The ACCA Qualification gives you the most up-to-date skills you need to become a finance professional. Our members bring invaluable expertise and insight to the table, helping steer the business towards prosperity."
As Vietnam continues to achieve positive milestones in GDP growth, state budget revenue, and recognition of its national brand, the collaboration between the finance sector and government becomes increasingly critical. In this synergy, finance professionals play a vital part in translating economic achievements into sustained growth, further solidifying Vietnam’s position as a bright spot amid global economic uncertainties.
