Solutions sought to ensure targeted 6.5 percent GDP growth in 2021
Solutions sought to ensure targeted 6.5 percent GDP growth in 2021
Vietnam’s gross domestic product (GDP) growth reached an estimated 4.48 percent in the first quarter of the year, higher than the 3.68 percent recorded in the same period last year but lower than the government’s 5.12 percent target. Vietnam can still achieve the economic growth target of 6.5 percent for the whole year if it focuses on key solutions.
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Bright spots
According to Resolution 01/NQ-CP on major socioeconomic development tasks for 2021, Vietnam aims to post an annual GDP growth of 6.5 percent, with an increase of 5.12 percent, 7.11 percent, 6.71 percent and 6.67 percent in the respective quarters.
Le Dang Doanh, former director of the Central Institute for Economic Management under the Ministry of Planning and Investment, attributed the result to the drastic and timely direction of the government and efforts of ministries, departments, localities, and businesses in the context of the Covid-19 pandemic with complex developments.
Nguyen Thi Huong, director-general of the General Statistics Office of Vietnam, pointed to many bright spots in the first quarter socioeconomic picture. Rice and forestry production increased, while the industrial sector recorded 6.5 percent growth. The manufacturing and processing sector remained the driving force for Vietnam’s economic growth with an expansion of 9.45 percent. Total retail sales of consumer goods and services in the first quarter of 2021 increased by 5.1 percent compared to a year ago, while the disbursement of foreign investment increased by an estimated 6.5 percent year-on-year.
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Key solutions
Although trade and production activities have improved, they are still not back to pre-pandemic levels. Sectors like transport and tourism are still heavily affected and the entire business community is still reeling from the impact of Covid-19.
To achieve the 2021 economic growth target of 6.5 percent, Huong suggested focusing on seven solutions. First, it is important to continue to contain the Covid-19 pandemic and carry out the vaccination program.
Second, the country should maintain the agricultural sector’s growth momentum by promoting pig re-herding activities, increasing the proportion of poultry and cattle, and restructuring crops and livestock.
Third, linkages must be promoted between production, processing and consumption; scientific and technological achievements, especially post-harvest preservation and processing technologies for farm produce must be applied; deep processing and support industries must be developed further; and international standards in production and processing must be applied to achieve high added value.
Fourth, the country should bring into full play opportunities provided by new-generation free trade agreements to speed up import-export activities and improve the competitiveness and values of exported products.
Fifth, the country should focus on overcoming difficulties facing businesses in trade and production activities with effective policies and support packages.
Sixth, ministries and departments should speed up public investment disbursement.
Seventh, more attention should be paid to developing e-commerce, contributing to implementing the dual target of fighting the pandemic and stepping up economic recovery and development.
| The World Bank’s new edition of its East Asia and Pacific Economic Update is forecasting 6.6 percent economic growth for Vietnam in 2021. |
