The Government would prioritize restructuring the monetary, corporate bond, securities, and real estate markets in 2023 to ensure the lawful rights of businesses and investors.

Mechanics manufacturing at Tam Hop Company in Soc Son District, Hanoi. Photo: Viet Linh

The move was part of Government resolution No. 01, signed off by Prime Minister Pham Minh Chinh on a plan for socio-economic development in 2023.

According to the resolution, Vietnam's economy continues to face great challenges in 2023 due to the complicated global situation, including rising tension between world powers and protracted trade wars.

"The conflict between Russia and Ukraine and the serious effects of the Covid-19 pandemic is expected not to abate in the short term," the resolution stated.

On the domestic front, rising inflationary pressure and the possibility of rising interest rates and exchange rates continue to put a financial burden on the local business community and the people.

Meanwhile, Vietnam’s major export markets are still struggling with economic woes, which could undermine the country’s trade outlook in 2023.

In this context, the Government has set 11 objectives and solutions to ensure stable macroeconomic fundamentals, contain inflation, and boost growth.

The resolution expects Vietnam to manage monetary policy in line with the expansionary fiscal policy.

“A stable monetary and foreign exchange markets, along with the smooth operation of the banking sector under all circumstances, should be the top priority for the finance-banking management efforts this year,” stated the resolution.

Regarding the capital market, the Government stressed its commitment to restructure the monetary, corporate bond, securities, and real estate markets.

"In this context, safe and sustainable development of these markets should play a key role in solidifying the macro fundamentals and enhancing Vietnam’s economic resilience and independence," said the resolution.

“It is essential to ensure the safety of the capital market and lawful rights of businesses and investors.”

Resolution No.01 also mentioned addressing six weak banks, rising bad debts, and large-scale projects suffering huge losses.

The Government added it would tighten the price management of strategic commodities, such as electricity or petroleum products.

Long-term efforts for sustainable development are the ongoing administrative reform closely associated with the formation of e-Government and Digital Government.

"Priority will be given to promoting human resources, especially high-quality manpower and the application of science-technology, guaranteeing territorial sovereignty, national defense and security," the resolution added.

The government tasked ministries and agencies with closely monitoring the international and domestic situation to mitigate negative effects on the economy and businesses in time.

This year, Vietnam targets GDP growth of 6.5% and a GDP per capita of US$4,400.

Other key economic indicators are the expansion of the consumer price index (CPI) of 4.5% and the share of the manufacturing and processing sector in GDP of 25.4-25.8%.