Seminar discusses economic challenges, opportunities

Seminar discusses economic challenges, opportunities

The challenges and opportunities facing Việt Nam’s economy during US President Donald Trump's second term was discussed at a seminar in HCM City on March 4.

The "Việt Nam Economy Future: Opportunities and Challenges” seminar in HCM City on March 4.— Photo courtesy of ITPC

Organised by the Investment and Trade Promotion Centre of HCM City (ITPC) and Singaporean lender UOB Vietnam, the "Việt Nam Economy Future: Opportunities and Challenges” was attended by more than 100 business executives and economists.

The seminar focused on some key topics such as the new challenges arising from US trade policies, including a detailed analysis of trade tensions, new tariffs, global supply chain shifts, the impact of these policies on financial markets, particularly exchange rate fluctuations, interest rates and investment flows, and opportunities for Việt Nam in diversifying trade, and attracting investment.

Suan Teck Kin, executive director and head of Research of UOB Group, pointed out that Việt Nam was largely dependent on international trade, with exports accounting for 90 per cent of GDP, the second highest in Southeast Asia after Singapore’s 174 per cent.

Việt Nam’s largest market, the US, accounted for 30 per cent of its total exports, and this reliance would put it at risk if the US imposes tariffs, he said.

He emphasised the importance of diversifying markets to manage possible risks, and suggested businesses in Việt Nam should consider expanding their markets to Southeast Asia, the EU and elsewhere.

Leveraging free trade agreements would open up new markets, reduce trade barriers and enhance Việt Nam’s global competitiveness, he said.

Talking about financial market risks, including exchange rate volatility, he said they presented a significant challenge in the current global environment, especially for export-dependent economies like Việt Nam, and highlighted the importance of hedging.

But these challenges would also be an opportunity for Việt Nam to reduce its over-dependence, increase investment in domestic infrastructure and provide fiscal support to mitigate external risks and strengthen future competitiveness.

Cao Thị Phi Vân, ITPC’s deputy director, said in the context of global volatility, understanding trends and preparing appropriate business strategies would help Vietnamese enterprises seize opportunities and minimise risks.

The event was expected to help businesses gain useful insights for business planning, she added. 

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