According to a Ministry of Planning and Investment (MPI) report delivered at the Government meeting for August, MPI Minister Nguyen Chi Dung projected that the Vietnamese economy will continue to face hurdles moving into next year due to the novel coronavirus (COVID-19) pandemic expected to remain an unpredictable factor globally, VOV reported.

Dung added that although it typically takes between two to four years for economies to bounce back following a global economic downturn, especially for countries that are the nation’s major partners, the growth rate of Vietnamese GDP is likely to reach 6.7% next year.

The Government has also assigned the MPI and the Ministry of Finance to conduct a review and adjust the year’s budget plans before submitting them to the Prime Minister for approval before September 25, while also speeding up the disbursement of public investment capital this year.

Vietnam’s economy is projected to grow by between 6% and 6.5% next year Photo: VOV

Priority will be given to actions that serve to fulfill the dual goal of economic recovery and preventive prevention.

The State Bank of Vietnam has been requested to continue regulating its monetary policy in a flexible manner, while also working in close conjunction with fiscal and other policies in an effort to accelerate economic growth, control inflation, and sustain macro-economic development.

The Ministry of Planning and Investment has been committed to enhancing the efficiency of foreign investment by screening quality FDI projects, with a particular focus placed on the shift of supply chains from large corporations.

The Ministry of Industry and Trade plans to promote trade, boost exports to potential markets, stimulate local consumption demand, and prevent trade fraud in all forms, while also protecting domestic production and consumption.

Vietnam recorded a decade low GDP growth of 1.8 percent in the first half of the year and experts warned that the economy could contract for the first time in decades as the pandemic crippled trade and key sectors such as aviation and tourism, VNExpress reported.

PM directs further accelerating production and disbursement of public investment capital

Prime Minister Nguyen Xuan Phuc has just issued Dispatch No.1259/TTg-KTTH directing ministries, ministerial-level agencies, governmental agencies, and the People's Committees of provinces and centrally-run cities to remove difficulties to promote production, business, consumption, and disbursement of public investment capital, Nhan Danreported.

The dispatch stated that from the beginning of 2020, the global and regional situation has witnessed complicated and unprecedented difficulties and long-term challenges due to the impact of the COVID-19 pandemic.

Global economic growth has fallen into its most severe recession since the Great Depression in 1929-1933. All of Vietnam's major partners have been affected heavily. As a deeply integrated and open economy, many branches and fields of the Vietnamese economy have been greatly affected by the epidemic, especially industry, trade, service, and tourism.

Workers build Ben Thanh - Suoi Tien, the first metro line in Ho Chi Minh City in April 2020. Photo: VnExpress/Quynh Tran.

Facing this situation, the Party, State, Government, and Prime Minister have directed all levels and sectors to synchronously and drastically implement tasks and solutions to realize the dual tasks of fighting the COVID-19 pandemic and boosting socio-economic development. Attention has been paid to solving problems and provide timely support to businesses facing difficulties, ensuring social security, and improving the quality of people's lives.

Thanks to the drastic action of the entire political system, the business community, and the people, Vietnam has achieved positive initial results in epidemic control and socio-economic recovery and development. However, difficulties and challenges still remain.

In order to strive to achieve the set targets and tasks of 2020 as well as create a favorable premise for 2021 and the near future, the Government and PM requested Ministers and Heads of ministerial-level agencies, Chairmen of People's Committees of provinces and centrally-run cities continue to thoroughly grasp and focus on directing the serious, drastic, synchronous and effective implementation of the set tasks and solutions in accordance with the resolutions and directions of the Party, the National Assembly, the Government, and Prime Minister.

The PM also stressed the importance of focusing on strongly promoting business production, domestic consumption, exportation, and promoting the disbursement of public investment capital to contribute to early socio-economic recovery and further development in the “new normal”.

Malie Nguyen

Source: VNT