Vietnam Pursues Economic Growth and International Cooperation Through Diverse Initiatives

Vietnam is pursuing multifaceted initiatives to drive economic growth and enhance international competitiveness, ranging from stabilizing currency rates to fostering industrial development and deepening international cooperation. The central bank has slightly adjusted the reference exchange rate against the US dollar within the +/- 5% band. The ceiling rate for commercial banks during the day is set at VND 26,892/USD, and the floor rate at VND 24,330/USD. This move appears intended to maintain economic stability while supporting export competitiveness. In the steel sector, Vietnam is solidifying its position as one of the world's top 10 producers. Crude steel production reached approximately 15.2 million tonnes in the first half of 2026, marking a 26.9% year-on-year increase. This growth is likely supported by domestic demand for construction and infrastructure investment, as well as increased exports. Significant growth is also evident in import-export activities. As of August 26, the total import-export turnover at the Lao Cai International Border Gate reached nearly US$1.6 billion, up 75% year-on-year. Exports, in particular, saw a substantial increase of 162%, indicating enhanced competitiveness of Vietnamese products in the global market. Efforts are also underway to establish Vietnam as an international business hub. Ho Chi Minh City is hosting "FOODS OF VIETNAM" and VIFA ASEAN, aiming to strengthen its role as a regional trading center for furniture. Furthermore, through the "German–Vietnam Hub," Leipzig plans to build a concentrated business advisory system to facilitate economic cooperation, investment, and knowledge transfer. These initiatives reflect Vietnam's strategy, pursued under its one-party system, to integrate into global supply chains and diversify its economy. Improving energy efficiency is another critical focus. Energy savings directly contribute to lowering production costs and enhancing operational efficiency for businesses. At the national level, efficient energy use reduces pressure on the power supply system and the need for new investments. Hanoisme has proposed support programs for green transition, intellectual property, traceability, and cross-border e-commerce, along with special credit packages for exporters. However, infrastructure development faces challenges, with some projects experiencing delays in site clearance and shortages of construction materials. Several projects scheduled for completion in 2026 still have a substantial volume of work remaining, indicating that achieving planned progress will require further effort. Vietnam's economic growth is increasingly emphasizing export market diversification and domestic industrial development, particularly in the context of its complex relationship with China. The various initiatives undertaken reflect Vietnam's determination to achieve sustainable economic development within this strategic framework. Source: VietnamPlus English