Vietnam confident about strong economic rebound after virus crisis

Vietnam’s government is full of expectation about a strong recovery after the country managed the coronavirus crisis comparably well. Prime Minister Nguyen Xuan Phuc said Vietnam’s export-dependent economy could sustain growth of four to five per cent this year as the government looks to attract more foreign investment from businesses seeking to readjust their supply chains, Bloomberg News reported

While growth is likely to be lower than a previously targeted 6.8 per cent, and down from seven per cent in 2019, the economy is still expected to remain robust, unlike most of Vietnam’s neighbours which are facing recessions.

The most important goal for the nation was to maintain economic stability and a low inflation rate to help businesses, investors and the people, Phuc said. The government would watch the movement of domestic and international markets to have suitable monetary policies to ensure reasonable growth, he said.

The Vietnamese government’s ambitious goal is significantly higher than the prediction of the International Monetary Fund for Vietnam, which announced that it was expecting Vietnam’s gross domestic product to grow by 2.7 per cent. Even that prediction puts Vietnam ahead of its neighbours and ensures that the country will continue to be Southeast Asia’s fastest growing economy.

While disruptions to global supply chains caused by the pandemic are indeed weighing on Vietnam’s exports, the country is benefitting more than its regional peers from companies looking to diversify their manufacturing base away from China.

Early and effective response to the virus crisis

Vietnam’s government, which has reported just 324 coronavirus infections and no deaths, is credited by the World Health Organisation and others for its early and effective response to the virus that has slammed the brakes on the global economy. It has not had any community-spread infections in 35 days, according to the health ministry.

The government has also enacted policies such as restructuring of bank loans, freezing debt, reducing or exempting loan interest payments and implementing assistance packages, including 62 trillion dong ($2.7 billion) in aid for 20 million workers. It is also looking to quickly disburse government investments and put in place administrative reforms to help quicken a recovery, Phuc said.

Vietnam’s strong economic fundamentals should enable the country to rebound even stronger in 2021 in case the pandemic remains relatively under control in the nation and globally, according to the World Bank.

Vietnam’s government is full of expectation about a strong recovery after the country managed the coronavirus crisis comparably well. Prime Minister Nguyen Xuan Phuc said Vietnam’s export-dependent economy could sustain growth of four to five per cent this year as the government looks to attract more foreign investment from businesses seeking to readjust their supply chains, Bloomberg News reported While growth is likely to be lower than a previously targeted 6.8 per cent, and down from seven per cent in 2019, the economy is still expected to remain robust, unlike most of Vietnam’s neighbours which are facing recessions. The most...

Vietnam’s government is full of expectation about a strong recovery after the country managed the coronavirus crisis comparably well. Prime Minister Nguyen Xuan Phuc said Vietnam’s export-dependent economy could sustain growth of four to five per cent this year as the government looks to attract more foreign investment from businesses seeking to readjust their supply chains, Bloomberg News reported

While growth is likely to be lower than a previously targeted 6.8 per cent, and down from seven per cent in 2019, the economy is still expected to remain robust, unlike most of Vietnam’s neighbours which are facing recessions.

The most important goal for the nation was to maintain economic stability and a low inflation rate to help businesses, investors and the people, Phuc said. The government would watch the movement of domestic and international markets to have suitable monetary policies to ensure reasonable growth, he said.

The Vietnamese government’s ambitious goal is significantly higher than the prediction of the International Monetary Fund for Vietnam, which announced that it was expecting Vietnam’s gross domestic product to grow by 2.7 per cent. Even that prediction puts Vietnam ahead of its neighbours and ensures that the country will continue to be Southeast Asia’s fastest growing economy.

While disruptions to global supply chains caused by the pandemic are indeed weighing on Vietnam’s exports, the country is benefitting more than its regional peers from companies looking to diversify their manufacturing base away from China.

Early and effective response to the virus crisis

Vietnam’s government, which has reported just 324 coronavirus infections and no deaths, is credited by the World Health Organisation and others for its early and effective response to the virus that has slammed the brakes on the global economy. It has not had any community-spread infections in 35 days, according to the health ministry.

The government has also enacted policies such as restructuring of bank loans, freezing debt, reducing or exempting loan interest payments and implementing assistance packages, including 62 trillion dong ($2.7 billion) in aid for 20 million workers. It is also looking to quickly disburse government investments and put in place administrative reforms to help quicken a recovery, Phuc said.

Vietnam’s strong economic fundamentals should enable the country to rebound even stronger in 2021 in case the pandemic remains relatively under control in the nation and globally, according to the World Bank.

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