Vietnam's GDP to reach a solid 3.5 to 4 per cent this year despite Covid-19 issues

Vietnam's exports this year would increase by 10 per cent which is quite impressive in the current world context. - Vietnam News/ANN

HANOI, Sept 16 (Vietnam News/ANN): The country’s GDP this year is expected to reach 3.5 per cent to 4 per cent if the Covid-19 pandemic is controlled in September and a 'new normal' achieved from the fourth quarter, said Minister of Planning and Investment Nguyen Chí Dung.

Vietnam’s exports this year would increase by 10 per cent while State budget revenue will exceed the estimate. The growth will be low but quite impressive in the current global context.

“This forecast is lower than the set target of 6.5 per cent this year, but achieving this level needs a huge effort, requiring more drastic actions of both the political system and localities,” Dung said.

If GDP reaches the level, this will be the second year that Vietnam's GDP has not completed its growth plan. In 2020, GDP grew by 2.92 per cent due to the impact of the Covid-19 pandemic.

This would affect the implementation of the overall goal of the five-year plan in the 2021-25 period.

He said that social distancing has seriously affected production, business, labour and employment. Meanwhile, the country has spent large resources on the fight against the pandemic, affecting State budget revenue and expenditure. The pandemic also affects the establishment of businesses and attracting FDI.

In particular, domestic consumption of agricultural products faces difficulties due to low purchasing power. The increasing input prices have affected the psychology of production expansion and re-herding.

In addition, the price of animal feed continued to increase due to the difficulty of importing raw materials and high transportation costs, which greatly affected livestock development.

The minister said localities need to take advantage of the recovery momentum of major economies that have a great influence on Vietnam's economy. The country should rapidly restructure the economy and add elements of innovation and promote the values ​​of Vietnamese culture and people.

He asked localities to give priority to preventing the pandemic so as it doesn't re-emerge, leading to social distancing, disrupting production and supply chains.

In addition, they should have regular dialogues with businesses to create a favourable investment environment while closely following new trends to build socio-economic development plans, including public investment.

He added that during the current difficult time, the local authorities’ attitude to businesses is even more important than the above support.

The localities were also asked to ensure social security and support for affected people as well as actively develop local economic recovery plans, take advantage of the world’s new opportunities to achieve growth targets, and contribute to the overall growth of the country.

“Researching and proposing solutions to build an economic recovery programme after COVID-19 is important and urgent. The solutions should be implemented immediately after the pandemic is under control, focusing on recovering key sectors and areas,” he added.

Accordingly, the Ministry of Planning and Investment will submit to the Government an economic recovery project in October. It is expected that the next two years would be the economic recovery time of the whole country. - Vietnam News/ANN

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Vietnam , GDP , 2021 , Solid Numbers , Exports , Rising


Next In Aseanplus News

Hanoi to open Covid-19 vaccination for children above three as Vietnam reports 3,034 new cases on Tuesday (Oct 19)
Philippines daily infections goes below 5,000 as country logs 4,496 new Covid-19 cases on Tuesday (Oct 19)
China opens VPN services to foreign investment in Beijing
United States raises Covid-19 travel alert for Singapore to highest risk level
Indonesia's Jokowi urges developed countries to commit to climate funding goals
Thailand gears up vaccination roll-out ahead of planned reopening
Philippines: Eight-week oil price hikes hammer Filipinos still being battered by Covid-19
Vietnam PM praises frontline medical workers for sacrifice in the fight against Covid-19
Myanmar anti-junta protesters reunited with families in junta amnesty
Singapore regulator takes special measures to clinch energy security

Others Also Read