Trade Drives Vietnam's Economic Growth Momentum in Seven Months

Trade has been the driving force behind Vietnam's economic growth in the first seven months of the year, with agro-forestry-fishery exports reaching nearly US$42.6 billion, up about 7% year-on-year. This performance reaffirms the sector's role as one of the country's economic mainstays, meeting 57.6% of the annual target. However, experts suggest that to sustain export growth in the second half of the year, businesses must navigate challenges such as rising costs, trade barriers, and intensifying competition. Furthermore, a shift in focus from achieving single-year double-digit growth to creating conditions for sustained high growth throughout the 2026-2030 period and beyond is deemed crucial for long-term economic development. Vietnam requires substantial capital for green projects, the circular economy, and its ESG transition to achieve its net-zero emissions target by 2050. Refining policy mechanisms, expanding the green finance ecosystem, and strengthening incentives for businesses are seen as breakthrough solutions to accelerate green credit development. The nation also aims to have 2 million active enterprises by 2030. Establishing institutions, funding channels, and support systems that allow businesses to develop at various stages could mark not just a numerical milestone but the emergence of a more resilient engine of growth. International cooperation is also advancing. The Czech Republic expressed strong interest in cooperation with Da Nang, ready to connect Czech enterprises with Vietnamese partners to boost bilateral investment and trade. Financial cooperation with the Netherlands has been strengthened, opening opportunities for experience sharing and market connections in finance, technology, and innovation. Dutch businesses are keen on Vietnam's reform agenda and expanding collaboration in sectors like semiconductors, AI, logistics, renewable energy, and green transition. Risks remain, with liquidity being the biggest challenge for the real estate market and user behavior posing risks for technology. Technology's full value is realized when it addresses practical market and human needs. Regarding the exchange rate, the ceiling rate for commercial banks is VND 26,605 per US dollar and the floor rate is VND 24,071, within the current trading band of +/- 5%. Household deposits at banks reached a new high of VND 10.8 quadrillion (US$414 billion) at the end of May, an increase of over VND 108 trillion from April and up 4.76% from the start of the year. Copyright, VietnamPlus, Vietnam News Agency (VNA)