Bright growth outlook for Vietnam in 2021

Retail soars: A woman walks past a street stall selling helmets in Hanoi. In the first four months of this year, total retail sales of goods and consumer service revenue topped US$73bil, up 10% year-on-year. — AFP

HANOI: Leading economists have an optimistic growth outlook for Vietnam in 2021 despite the Covid-19 pandemic.

According to the Ministry of Planning and Investment, key indexes show the economy is bouncing back well and showing an optimistic trend.

In the first four months of this year, total retail sales of goods and consumer service revenue topped 1.69 quadrillion Vietnemese dong (more than US$73bil or RM300bil), up 10% year-on-year, while exports were estimated at US$103.9bil (RM427bil), rising 28.3%.

Assoc Prof Dinh Trong Thinh, a senior economist at the Academy of Finance, said nearly 44,200 new enterprises were established during the four months, registering 627.7 trillion Vietnemese dong and more than 340,000 employees. The figures respectively grew 17.5%, 41%, and 7.8% from a year earlier.

These encouraging statistics showed businesses were confident in the recovery and growth capacity of the economy, he added.

Assoc Prof Nguyen Thuong Lang from the National Economics University said the good macro-economic indexes indicated the economy had developed in the right direction over the last four months.

With that recovery trend, the economy would operate effectively in the coming months, he said.

The Vietnamese economy is still in the recovery process and needs policy and mechanism support from the government to accelerate recovery and growth, according to deputy director of the Academy of Finance’s Institute of Economics – Finance, Nguyen Duc Do.

Tran Thi Hong Minh, director of the Central Institute for Economic Management, said although Vietnam was one of the few countries to have succeeded in controlling Covid-19, which had created a prerequisite for promoting domestic production and safely reopening the economy, it was also necessary to make a plan for a longer-term that should include stepping up administrative reforms and boosting momentum for economic institutional reforms.

Andrew Jeffries, country director of the Asian Development Bank in Vietnam, noted the economy was forecast to expand by 6.7% in 2021, with growth drivers being industry, especially export-oriented processing and manufacturing, investment increases, and trade expansion.

The industry sector was predicted to grow 9.5% and the services sector 6%. Meanwhile, trade would remain strong this year thanks to exports and imports with the US and China, two major trading partners of Vietnam. — Viet Nam News/ANN

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