Home / Socienty / Vietnam’s socio-economic development success in 2020 is not only a meaningful lesson for developing countries in their efforts to contain Covid-19 but also a prime example of economic growth amid a crisis. It is also important groundwork for Vietnam to successfully realise its socio-economic development plan for 2021-2025. Challenging goals Vietnam’s medium-term goal for the next five years is ensuring rapid and sustainable economic growth on a foundation of macroeconomic stability, scientific and technological development and innovation. Vietnam is targeting an average economic growth rate higher than that during the 2016-2020 period, and the hope is that by 2025 Vietnam will have become a modern industrial developing country, surpassing the low-middle income threshold. According to Do Thanh Trung, Director of the Ministry of Planning and Investment’s Department of National Economic Issues, the goals for the next five years are quite challenging and will require tremendous efforts to achieve. He said it is necessary to look at the country’s actual strengths in order to have a backup plan. Covid-19 has also been factored into the 2021 plan so that feasible measures can be put in place. Although the pandemic has had many negative effects, it has also brought along with it many opportunities. Trung believes that if Vietnam can adapt and manage well as in 2020, the country can take advantage of opportunities for development. In order to fulfil the set targets, the Ministry of Planning and Investment has laid out major solutions based on science and technology, innovation, digital transformation, institutions, human resources and even culture. Public investment is expected to continue as a driver of growth over the next five years, but in a completely different way. This means public investment must be focussed on inter-regional projects and key national projects so as to reduce costs and enhance the competitiveness of both enterprises and the broader economy. By assessing the factors affecting the global and domestic socio-economic situations, the National Centre for Socio-economic Information and Forecast (NCIF) has come up with two scenarios for growth during the 2021-2025 period. In the first scenario, the Vietnamese economy will grow by 6.3% per year on the assumption that the threat of Covid-19 remains serious, the Government’s support measures produce a moderate effect while the global situation remains uncertain and risky, and economic and trade growth remains slow. In a more optimistic scenario, average growth could reach 6.8% per year. Although economic growth is expected to be slower after a strong initial pace in 2021, it will make a steady recovery. Capitalising on new opportunities Beside the challenges, the Covid-19 pandemic has also created or accelerated many new trends, reshaped international finance, trade and investment, especially in respect of a shift in supply chains, presenting both challenges to and opportunities for long-term economic recovery. Utilising the new opportunities for economic recovery in 2021 and acceleration in the subsequent years is highly significant in terms of fulfilling the targets set in the 2021-2025 socio-economic development plan. According to the NCIF Deputy Director, the Covid-19 pandemic will remain complicated and unpredictable, continuing to affect the chances of recovery. Therefore it is necessary to focus on the two following major policy groups. Firstly, Vietnam needs to reduce costs by continuing the policy of waiving, cutting and extending the deadline for tax and land lease payments; eliminating business rules and compliance costs, focusing on enhancing the quality of human resources in order to move some exports to a higher value; and accelerating investment in technological infrastructure. Second, it is necessary for Vietnam to promote investment and expand the market by accelerating disbursement to major transport projects and important industrial projects from the beginning of the year; stepping up the export of key products to the EU; pushing through institutional reforms and improving the business climate; as well as fostering digital transformation in the corporate sector. The UNDP in Vietnam stated that the size of Vietnam’s fiscal package to support enterprises struggling due to Covid-19 is much smaller than other countries. The ADB estimated that policy measures in the Asia-Pacific region are equivalent to 15% of GDP on average while the figure in Vietnam is only 1%. According to economic experts, with many unpredictable risks and uncertainties, Vietnam needs to make a huge effort so as to reach a growth rate of over 6% in the coming years. Long-term support packages should be taken into consideration in order to create further drivers for growth. Deputy Director of the Central Institute of Economic Management Phan Duc Hieu has stated that new support packages need to serve two purposes: recovery and growth acceleration. For the goal of economic recovery, the Government’s measures should focus on sharing difficulties with enterprises in preventing and fighting against Covid-19, and avoiding policies creating a reverse effect. Regarding the goal of supporting growth acceleration, it is necessary to introduce measures to enhance labour productivity and to speed up the process of institutional reform and improving the business climate. Room for growth must be linked closely to productivity, which is not new because even without Covid-19, it is also a must to enhance productivity. What is new here is dynamism, meaning enterprises should be swift in restructuring themselves. Another key factor that drives growth is institutions which encourage business dynamism and promote competition. During such a process, well-performing enterprises will have a better chance of survival while ineffective ones will be replaced

Vietnam’s socio-economic development success in 2020 is not only a meaningful lesson for developing countries in their efforts to contain Covid-19 but also a prime example of economic growth amid a crisis. It is also important groundwork for Vietnam to successfully realise its socio-economic development plan for 2021-2025. Challenging goals Vietnam’s medium-term goal for the next five years is ensuring rapid and sustainable economic growth on a foundation of macroeconomic stability, scientific and technological development and innovation. Vietnam is targeting an average economic growth rate higher than that during the 2016-2020 period, and the hope is that by 2025 Vietnam will have become a modern industrial developing country, surpassing the low-middle income threshold. According to Do Thanh Trung, Director of the Ministry of Planning and Investment’s Department of National Economic Issues, the goals for the next five years are quite challenging and will require tremendous efforts to achieve. He said it is necessary to look at the country’s actual strengths in order to have a backup plan. Covid-19 has also been factored into the 2021 plan so that feasible measures can be put in place. Although the pandemic has had many negative effects, it has also brought along with it many opportunities. Trung believes that if Vietnam can adapt and manage well as in 2020, the country can take advantage of opportunities for development. In order to fulfil the set targets, the Ministry of Planning and Investment has laid out major solutions based on science and technology, innovation, digital transformation, institutions, human resources and even culture. Public investment is expected to continue as a driver of growth over the next five years, but in a completely different way. This means public investment must be focussed on inter-regional projects and key national projects so as to reduce costs and enhance the competitiveness of both enterprises and the broader economy. By assessing the factors affecting the global and domestic socio-economic situations, the National Centre for Socio-economic Information and Forecast (NCIF) has come up with two scenarios for growth during the 2021-2025 period. In the first scenario, the Vietnamese economy will grow by 6.3% per year on the assumption that the threat of Covid-19 remains serious, the Government’s support measures produce a moderate effect while the global situation remains uncertain and risky, and economic and trade growth remains slow. In a more optimistic scenario, average growth could reach 6.8% per year. Although economic growth is expected to be slower after a strong initial pace in 2021, it will make a steady recovery. Capitalising on new opportunities Beside the challenges, the Covid-19 pandemic has also created or accelerated many new trends, reshaped international finance, trade and investment, especially in respect of a shift in supply chains, presenting both challenges to and opportunities for long-term economic recovery. Utilising the new opportunities for economic recovery in 2021 and acceleration in the subsequent years is highly significant in terms of fulfilling the targets set in the 2021-2025 socio-economic development plan. According to the NCIF Deputy Director, the Covid-19 pandemic will remain complicated and unpredictable, continuing to affect the chances of recovery. Therefore it is necessary to focus on the two following major policy groups. Firstly, Vietnam needs to reduce costs by continuing the policy of waiving, cutting and extending the deadline for tax and land lease payments; eliminating business rules and compliance costs, focusing on enhancing the quality of human resources in order to move some exports to a higher value; and accelerating investment in technological infrastructure. Second, it is necessary for Vietnam to promote investment and expand the market by accelerating disbursement to major transport projects and important industrial projects from the beginning of the year; stepping up the export of key products to the EU; pushing through institutional reforms and improving the business climate; as well as fostering digital transformation in the corporate sector. The UNDP in Vietnam stated that the size of Vietnam’s fiscal package to support enterprises struggling due to Covid-19 is much smaller than other countries. The ADB estimated that policy measures in the Asia-Pacific region are equivalent to 15% of GDP on average while the figure in Vietnam is only 1%. According to economic experts, with many unpredictable risks and uncertainties, Vietnam needs to make a huge effort so as to reach a growth rate of over 6% in the coming years. Long-term support packages should be taken into consideration in order to create further drivers for growth. Deputy Director of the Central Institute of Economic Management Phan Duc Hieu has stated that new support packages need to serve two purposes: recovery and growth acceleration. For the goal of economic recovery, the Government’s measures should focus on sharing difficulties with enterprises in preventing and fighting against Covid-19, and avoiding policies creating a reverse effect. Regarding the goal of supporting growth acceleration, it is necessary to introduce measures to enhance labour productivity and to speed up the process of institutional reform and improving the business climate. Room for growth must be linked closely to productivity, which is not new because even without Covid-19, it is also a must to enhance productivity. What is new here is dynamism, meaning enterprises should be swift in restructuring themselves. Another key factor that drives growth is institutions which encourage business dynamism and promote competition. During such a process, well-performing enterprises will have a better chance of survival while ineffective ones will be replaced

Leaders paid visits and presented gifts to policy beneficiaries, workers and poor households nationwide on the occasion of the upcoming Lunar New Year (Tet) Festival 2021.

On February 7, Pham Minh Chinh, Member of the Politburo, Head of the Party Central Committee’s Organisation Commission and Nguyen Dinh Khang, Member of the Party Central Committee and President of the Vietnam General Confederation of Labour (VGCL) visited Son La province and gave gifts to policy beneficiaries and workers in the province.

Speaking at the meeting, Politburo member Pham Minh Chinh suggested that Son La province further promote solidarity, self-reliance, dynamism, creativity and proactiveness in taking advantage of opportunities, overcoming difficulties and challenges, effectively implementing the dual goals of both withstanding the pandemic and promoting socio-economic development.

On this occasion, he presented 550 gifts to policy beneficiaries, workers, workers in difficult circumstances in Son La province; and VND 1 billion from the Vietnam Fatherland Front Central Committee to support the project on removing temporary houses in the province.

Vietcombank, Vietinbank and representatives of some businesses also presented many valuable gifts and support funds to assist in the removal of temporary houses in the area.

Earlier, the Politburo member and delegation came to offer incense at the Martyrs Memorial Hall in Xuan Nha commune, Van Ho district; gave gifts to the people of Long Luong commune and soldiers of Don Bien Phong 469, Moc Chau district.

On the same day, Politburo member Pham Minh Chinh and the delegation visited and gave gifts to poor households and workers in difficult circumstances in Hoa Binh province.

On this occasion, he gave the province VND 1.1 billion for poor and disadvantaged households; as well as presenting gifts to the Covid-19 epidemic prevention force. Ministry of Labor, Invalids and Social Affairs awarded VND 100 million to the local Department of Labour – Invalids and Social Affairs to take care of Tet for social protection subjects. The delegate also gave 400 gifts to poor households and workers in difficult circumstances in the area.

* On February 7, a Government delegation led by Permanent Deputy Prime Minister Truong Hoa Binh, visited the Venerable Danh Lung, Member of the Secretariat of the Vietnam Buddhist Sangha (VBS), Head of Chantarangsay Pagoda, at Vo Thi Sau Ward, District 3, Ho Chi Minh City.

On the occasion, on behalf of the Government, Permanent Deputy Prime Minister Truong Hoa Binh wished that Khmer dignitaries, monks, nuns and Buddhist followers enjoy a warm, peaceful, healthy, happy traditional Tet holiday.

The Venerable Danh Lung expressed his appreciation for the delegation’s visit and Tet greetings for Khmer dignitaries, monks, nuns and Buddhist followers, as well as Cambodian and Lao students living and studying in Vietnam and Ho Chi Minh City.

On this occasion, Deputy Prime Minister Truong Hoa Binh presented 130 Tet gifts to monks, nuns and Buddhist followers as well as Cambodian and Lao students living and studying in Ho Chi Minh City and workers facing difficult circumstances.

* On the same day, Politburo member Phan Dinh Trac, Head of the Party Central Committee’s Commission for Internal Affairs visited and gave Tet gifts to Thua Thien Hue province.

On the same day, Politburo member Phan Dinh Trac also visited the Border guard at A Dot border gate, and the Border Guard Command of Thua Thien Hue province and A Luoi district. He gave 400 Tet gifts to policy beneficiaries, families facing difficult circumstances in A Luoi district, each set worth VND 1.15 million.

* On February 7, several Politburo members: Chief Justice of the Supreme People’s Court of Vietnam Nguyen Hoa Binh; Chairman of the Party Central Committee’s Economic Commission and Tran Tuan Anh, who is Minister of Industry and Trade had a working session with Quang Ngai province.

The leaders visited and gave Tet gifts to policy beneficiaries, workers and poor households in the province.

On the same day, Hai Duong city ,Binh Duong city and other cities and provinces across the country organized many activities to support policy families and poor people to have a happy, warm Tet, helping them overcome their difficulties and fight against the epidemic.

Source: Nhan Dan Online

Related Posts