AsemconnectVietnam - Vietnam's economy has yet to bottom out despite a series of stimulus measures to bolster business confidence, Vietnam News reported on Friday.

Vietnam's exports in May extended the decline by a further 5.86 percent from a year ago, though at a slower pace than an annual contraction of 17.2 percent in April, according to the General Statistics Office (GSO).
The Southeast Asian country's exports have tumbled since last November, with a brief rebound in February, in the face of weaker demand abroad, adding urgency for support measures from the government, analysts said.
"There is no clear sign that Vietnam has bottomed out amid intensifying headwinds to growth," HSBC said in a report. "Indeed, sluggish external data remains the biggest downside risk to growth."
May industrial production index inches up 2.2%
The index of industrial production (IIP) in May increased by 2.2% against the previous month, according to the General Statistics Office (GSO).
Compared to last year, the index inched up 0.1%, with power production and distribution as well as waste/waste water management and treatment expanding 5% and 6.8%, and processing-manufacturing and mining shrinking by 0.5% and 2.9%, respectively.
However, the IIP for the first five months of 2023 fell 2% over the same period in 2022 as the global economy continued to face numerous difficulties and the number of orders for exports declined.
Specifically, the sub-indexes of the processing-manufacturing dropped 2.5%, and mining fell 3.5%.
The five-month index saw annual rises in 49 provinces and cities. The northern province of Bac Giang took the lead with a growth of 15.4%., followed by Phu Tho (15.2%), Hau Giang (13.9%), and Thai Binh (13.2%).
Manufacturing sector experienced third consecutive decline
Vietnam's manufacturing sector continued a declining path in May with economists and industry insiders saying weak demand is a major contributor, according to a report published on June 1 by SandP Global. They said output and the number of new orders have decreased sharply with companies looking to cut jobs and reduce purchases.
The report said the Southeast Asian economy's Purchasing Managers' Index (PMI) was reported to have fallen to 45.3 in May from 46.7 in April. It marked the third consecutive month of decline and the largest drop since September 2021. SandP Global said global demand for goods and services has remained weak, resulting in a significant drop in new orders. Revenue from export markets has also suffered for the third consecutive month.
Meanwhile, companies have taken measures to scale down production since the beginning of Q2, 2023, most notably in intermediate goods manufacturing. Weak demand has been hurting business confidence with Vietnam's PMI at its lowest level since November last year.
Focusing on export, investment, consumption to boost growth
Prime Minister Pham Minh Chinh on June 3 asked ministries, agencies and localities to push the three engines of export, investment and consumption in order to spur the country's economic growth in the time ahead.
Speaking at an online regular meeting between the Government and localities, the leader stressed the need to remove obstacles to production and business, and help enterprises in administrative procedures, interest rates and market expansion.
He also urged localities to accelerate the disbursement of public investment capital and the implementation of the socio-economic recovery and development programme as well as national target programmes, and focus on site clearance and material preparations for key projects.
Apart from promoting domestic consumption, it is necessary to expand export markets, the PM said, highlighting other tasks such as effectively optimising free trade agreements, materialising the National Power Development Plan VIII which has been approved recently, ensuring food for domestic consumption and exports, having the European Commission (EC)'s 'yellow card' warning against Vietnam's seafood exports lifted, and dealing with the shortage of medicines, vaccines and medical equipment, among others.
The move is to maintain the macro-economic stability, control inflation, boost growth and ensure major economic balances, PM Chinh emphasised.
Boost high-quality rice output and cut exports
Vietnam is seeking to boost high-quality rice production while cutting its exports in response to climate change, Vietnam News Agency reported on Friday.
Vietnam aims to cut its rice exports to 4 million tons a year by 2030, down 44 per cent from 2022 shipments, according to the government's latest rice export strategy.
According to the government, rice export earnings will drop to US$2.62 billion by 2030 from US$3.45 billion last year.
Like many other countries, Vietnam is vulnerable to climate change, which will make rice production more difficult, said Pham Thai Binh, chief executive of Trung An Hi-tech Farming, a listed company mainly engaged in rice-producing.
T.Huong
Source: Vitic/VNA