Vietnam continues to be an important link in the global supply chain

Vietnam will continue to be an important link in the global supply chain as its economy is predicted to recover strongly in 2022, starting from the end of the first quarter.

An overview of the seminar. Photo: vietnamfinance.vn

Tim Leelahaphan, economist for Thailand and Vietnam at Standard Chartered Bank, gave his prediction at the seminar “2022 Economic Outlook & Green Financial Policy” in Hanoi on February 18.

Addressing the event, Deputy Foreign Minister To Anh Dung assessed Vietnam is entering a very important stage of development with the expectation that the recovery and development in 2022 and 2023 will create a strong rebound for the next years, towards development goals in 2030 and 2045.

"Opportunities and challenges are intertwined, but opportunities are outstanding," he added.

Dung underlined the Vietnamese Government has been drastically and quickly implementing the program of socio-economic recovery and development with the largest scale ever. 

The Government of Vietnam has made strong commitments to reduce emissions by 2050 within the framework of the 26th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change and issued the national strategy on green growth for the 2021-30 period.

The Deputy Foreign Minister said Vietnam needs to take advantage of the support of its international partners for socio-economic recovery that must be reconciled with green growth.

At the event, economists from Standard Chartered Bank shared their views on the global and Vietnamese economic prospects and discussed green finance and its implications for Vietnam.

According to Edward Lee, Chief Economist, ASEAN, and South Asia at Standard Chartered Bank, the country’s economic growth will reach 6.7% in 2022 and 7% in 2023. Its outlook remains positive in the medium term.

“Vietnam will continue to be an important link in the global supply chain. Rising wage costs in China and the US-China trade war have prompted many businesses to move production out of China or use a "China plus one" strategy,” Lee said.

This process will continue in the medium term and Vietnam will likely remain a destination for many foreign businesses.“Foreign investment in Vietnam is expected to recover this year after being affected by the Covid-19 pandemic,” said Leelahaphan.

At the session on green finance and policy recommendations for Vietnam, organizations and many international partners have agreed that green finance is a trend that will gain momentum in the coming time, in which, capital will be mobilized from the public and private sectors, financial institutions and non-profit organizations to realize sustainable development goals and priorities.

Projects can mobilize support from green financial policies, focusing on areas such as renewable energy and improving energy efficiency, pollution treatment, biodiversity conservation, circular economy development, efficient use of natural resources and land resources, according to the delegates at the event.

At the seminar, specific ways and solutions were put forth for Vietnam to access and mobilize green financial resources to achieve its sustainable development goals.

Many partners and businesses highly appreciated Vietnam’s guidelines and policies on green growth and greenhouse emission reduction and pledged to continue cooperating and supporting the country to effectively implement green financial policies in the coming time. 

Ben Hung, Standard Chartered's Asia CEO said: “Building a sustainable future and moving towards net-zero requires our efforts and actions. Vietnam is an important market in Standard Chartered's network of operations in Asia. We are committed to investing in Vietnam to support sustainable development and create prosperity.”

He added Vietnam's economy is in the process of recovering in the context of the Covid-19 pandemic. In a recent survey conducted by Standard Chartered, respondents said that Vietnam has a lot of potential for growth and investment attraction and is playing an increasingly important role in international trade and global supply chains.

Within the framework of the seminar, the bank signed a Memorandum of Understandings (MOUs) totaling US$8.5 billion with three Vietnamese enterprises to support sustainable development projects.