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Dear readers,

2023 has now come to an end. Vietnam has experienced testing times economically, with strong headwinds
continuing in the context of rapid, complex, and unpredictable developments in the region and the world,
resulting in outcomes worse than in 2022, though ten of the 15 main goals set out in the annual socio-economic
development plan were reached. Inflation was kept under control, major balances in the economy were guaranteed,
and the monetary and foreign exchange markets were basically stable, while interest rates were cut.

Some of the economic results posted in 2023, however, were lower than the target and short of results in the
previous year.

GDP growth, for instance, has been put at over 5 per cent; lower than the targeted 6.5 per cent and the 8.02 per
cent recorded in 2022. Meanwhile, trade turnover stood at $683 billion, as of December 20; short of the target of
over $700 billion and down significantly on the 2022 figure of $732.5 billion.

As a result of the domestic economic situation in 2023, in addition to continued unpredictability in the global
economy and rising geopolitical competitiveness, additional obstacles remain for Vietnam as it enters into the
new year.

Of the 15 main targets set out in the 2024 socio-economic development plan, which was passed by the National
Assembly on November 9, growth of 6-6.5 per cent will be the most challenging.

Vietnam will need greater effort and additional resources, both internal and external, over the next two years to
achieve the 2021-2025 socio-economic development plan.

Achieving the five-year goals will be anything but straightforward, as targets were dragged down by economic per-
formance in 2021, when growth was just 2.58 per cent.

With the application of the Global Minimum Tax (GMT) starting on January 1, as stipulated in a resolution on
applying additional corporate income taxes in accordance with Global Anti-Base Erosion Rules, adopted by the
National Assembly on November 29, tax incentives for foreign investors in Vietnam can no longer be continued.
To encourage and attract strategic investors and multinational corporations in the new era, the government
therefore intends to set up a specific support fund.

There should be no doubt that uncertainties remain for Vietnam in the time ahead.

Our Cover Story in this first issue of 2024 looks back at the country’s economic performance in 2023 and at its
prospects in the new year, providing analysis, assessments, comments, and forecasts from different perspectives.

DR. CHU VAN LAM
Editor-in-Chief