According to the state-controlled media, Vietnam’s economic situation in 2024 continues to develop, and there are many signs of improvement. Forecasts for Vietnam’s economy in 2025 are largely positive. Experts predict that Vietnam’s GDP growth will average between 6.1% and 7.5%.
However, there are also opinions that Vietnam’s economy in 2024 and early 2025 will face many challenges, due to fluctuations in geopolitics and the global economy.
That is completely consistent with information on social networks that, at the end of the year, many shops in Hanoi and Saigon have stopped doing business. Many shops on busy streets are empty and have for rent signs.
VNExpress newspaper reported on December 23 that the number of customers stopping renting business premises in some central districts in Hanoi is increasing. The news said that many premises on busy streets in the center of Hanoi such as Nguyen Thai Hoc, Kim Ma, Pho Hue, Ba Trieu, etc. have been vacant for many months without any tenants.
Meanwhile, there is less than a month left until Lunar Festival (Tet). Accordingly, the time from the end of the Gregorian calendar to Tet is considered the peak shopping season of each year. However, prior to 2025, the actual situation signals that Vietnam’s economy will be extremely gloomy.
What does the above mentioned have to do with the political instability in Vietnam, which has been going on for a long time with seemingly no end in sight. How has that negatively affected the economy and people’s lives?
First of all, it will affect the economy, leading to a decrease in foreign investment, and political instability has reduced investor confidence. This negatively affects the financial market and the ability of businesses to raise capital. The anti-corruption campaign has also led to administrative paralysis, causing many projects to stagnate.
In the past 3 years from 2021 to 2023, Vietnam has lost at least $2.5 billion in foreign aid due to the inability to disburse on time. This affects infrastructure development and social programs, as well as the lives, incomes and employment opportunities of the people.
According to Reuters, the recent anti-corruption campaign by General Secretary To Lam could affect Vietnam’s ability to attract investment and economic stability, especially in the context of significantly increased regional competition. Many foreign investors have left Vietnam one after another, due to the unusual and continuous changes from the senior leadership team.
At the same time, the streamlining of the administrative apparatus in Vietnam in the final period of 2024 has also caused the economy to face a number of challenges. In particular, General Secretary To Lam has set a deadline for completing the streamlining of the apparatus in the first quarter of 2025.
The policy of streamlining the apparatus has led to anxiety among officials and civil servants. Many officials and civil servants are concerned about the risk of losing their jobs, affecting their regular income. This is the reason why a group of “state employees” have had to tighten their belts.
In short, the political instability in Vietnam has been negatively affecting the economy and people’s lives, while reducing the confidence of both people and investors in the country’s development prospects.
This is also the reason why the number of shoppers at traditional markets has decreased significantly compared to previous years, and business and trading activities are extremely sluggish as seen.
Tra My – Thoibao.de
