International media in search for the elucidation to 'beacon' of Viet Nam - 'Asian miracle' in 2020

Viet Nam has become the 'beacon', 'Asia's miracle' in 2020. (Source: Getty Images)

National Stance elevated

"Covid-19: an Exception of Viet Nam", "Viet Nam - New Asia miracle?" - that is the title of two articles, one in the French newspaper Les Echos, the other in the New York Times of America.

In the context of the Covid-19 pandemic raging around the world, the international opinions imprint an impression on a Viet Nam which is both a "beacon" in the combat against epidemics and a "shining spot" in economic growth, while making active contributions, actively cooperating and sharing with the international community in the combat against Covid-19 and adapting to a new normal status.

Under the leadership of the Party, with the determination of the entire political system, the consensus of the people and businesses, in the past 5 years (2015-2020) term, Viet Nam has overcome all challenges.

In total, the Vietnamese economy has generated a GDP of over US$ 1,200 billion within 5 years, on a stable macroeconomic foundation.

Although heavily affected by the pandemic, the growth rate for the whole 2020 reaches 2.91%; ranked as the world's leading high growth rate. GDP scale increases by about 1.4 times compared to 2015 (rated by International Monetary Fund, by 2020 Viet Nam could become the 4th ranked ASEAN economy); GDP per capita in 2020 is estimated at about US$ 2,750.

Its labor productivity has been significantly improved, on average in the 2016-2020 period, it increases 5.8% per year, higher than the 2011-2015 period (4.3%) and exceed the set target (5%). The contribution of total factor productivity (TFP) in 5 years is about 45.2% (the target is 30-35%). Growth has gradually shifted from extensiveness to depth, relying on science and technology increasingly.

Its macro economy is kept stable; The consumer price index (CPI) decreases from 18.6% in 2011 to less than 4% in the period 2016-2020. The exchange rate and foreign exchange market are stable; interest rates tend to decrease gradually; payment balance turns surplus; national credit rating has been improved. Financial rules and disciplines have been strengthened.

The state budget revenue in 2020 reaches 96% of the estimate. The Restructuring of State budget achieves positive results, the proportion of domestic revenue increases to 81.6% (the period 2011-2015 it was 68.7%); the proportion of development investment expenditures increases to 27-28%, the proportion of recurrent expenditures decreases to 62-63%. State budget deficit and public debt are controlled within safe limits and decreased compared to the previous period.

The total social investment capital compared to GDP is about 33.4%. Total export and import turnover in 2020 is estimated at US$ 543.9 billion, the trade surplus in 5 consecutive years (estimated at US$ 19.1 billion in 2020). The domestic market is attended with more concerns; and the performance in market management, anti-smuggling and trade fraud is strengthened.

In August 2020 issue The Economist magazine ranks Vietnam in the top 16 most successful emerging economies in the world. According to the World Bank (WB), with an average economic growth of 6.8% a year in the 2016-2019 period, Viet Nam is rated among the top 10 highest growing countries.

While most economies fall into recession in 2020, Viet Nam still persistently maintains its positive growth at a fair rate with synchronous and drastic undergoing for its "dual goals".

With the growth rate of 2.12% in the first 9 months of the year, the Nikkei Asia Review (Japan) states that Viet Nam is becoming the "only economic success story of Southeast Asia in the pandemic".

According to a report dated December 22 of the World Bank, Viet Nam's economy has achieved steady results, in stark contrast to the gloomy economic situation worldwide.

In particular, Viet Nam's external economic sector hit spectacular achievements during the Covid-19 crisis. Although the port-entry restrictions on international tourists reduced the tourism industry's foreign currency income, and remittances are expected to drop by around 7.8% in 2020, many foreign investors continue select Viet Nam as the investment destination, and the export turnover of goods in the first 10 months of 2020 increases by about 4.8% over the same period in 2019.

Not only on the momentum of the highest export surplus value ever, Viet Nam also accumulated a large amount of foreign exchange reserves.

Meanwhile, according to the National Brands 2020 report recently announced by British brand valuation firm Brand Finance, thanks to handling of medical and economic crisis, Viet Nam keeps its commercial value as the world's strongest national brands in 2020, going against the global downturn caused by the Covid-19 pandemic, in contrast to an estimated 100 most valuable national brands in the world losing US$ 13,100 billion this year, down from US$ 98,000 billion in 2019 to US$ 84,900 billion.

The impressive anti-epidemic achievements in 2020, along with persistent efforts and solutions in institutional reforms and improvement of the business environment over the years, have made Viet Nam a leading destination for manufacturing activities, to attract more investors.

“Proper control of the Covid-19 crisis is the best promotional tool for Viet Nam, a way to encourage foreign businesses to move production from other countries, where their factories are still closed, to Viet Nam, thereby contributing to bringing about steady export results”, commented by the World Bank.

According to the American Chamber of Commerce (AmCham) in Viet Nam, the success in disease prevention helped Vietnam start an economic recovery early and in the context of companies constantly adjusting the global supply chains, the Vietnamese Government's effective response to the pandemic further enhances Viet Nam's stance as an attractive investment destination.

Inspiration for international mass media

The signing of the Regional Comprehensive Economic Partnership (RCEP) facilitates Vietnam's economic growth. (Photo: Nguyen Hong)

Recently, in an article titled “Viet Nam economy is Asia's shining star during Covid-19. Viet Nam economy is Asia's shining star during Covid-19 pandemic", BBC emphasizes that Viet Nam has mitigated the economic losses caused by the Covid-19 pandemic and is the only economy in Southeast Asia "on the rise" this year.

In the article "Viet Nam shining bright as Covid crisis winner", the Asia Times based in Hong Kong (China) says that the government does not put economic interests above the people’s health, but Viet Nam still achieved its positive economic growth in 2020. It is this phenomenon that makes people surprised.

The article argues that exports are the driving force behind Viet Nam's total GDP growth. The economy is also less dependent on tourism than other Southeast Asian countries, and thus less pressured when international tourism is stagnant.

The ratification of the European Union Free Trade Agreement (EVFTA) and the signing of the Regional Comprehensive Economic Partnership (RCEP) help boost Viet Nam's economic growth. The IMF's forecast shows that Viet Nam will achieve positive economic growth this year "is clearly a recognition of the Vietnamese Communist Party's quick, efficient and transparent response to the Covid-19 pandemic".

“Viet Nam is not only the envy of its Covid-hit Southeast Asian neighbors, all of which will face severe economic contractions this year and only marginal recoveries in 2021, but it has also earned international plaudits for its resilience", the Asia Times confirms.

Sharing the same optimistic outlook, the UK's Proactive website forecasts that Viet Nam's economy will regain a growth rate of over 6% by 2021 due to "many growth driving motives". According to Proactive, the resilience between the pandemic has "helped to elevate Viet Nam's stance as a major trading partner" and "energize" Viet Nam's trade relations with other countries.

Most recently, on a serial column "Viet Nam in foreign press", the Russian company Sputnik has published an overview digest, which reviews the comments about Viet Nam on the Russian press and other countries, thereby reflecting brilliant achievements in many fields, especially foreign affairs and economics, in the context of the worldwide raging Covid-19 pandemic.

In that Sputnik article, besides praising Viet Nam's success in the fight against the pandemic, it quotes a large number of articles in foreign press in the past year also to focus on Viet Nam as one of the economies with the highest growth rates in the world during this difficult year, and Viet Nam has adequate prerequisites to achieve stronger growth next year.

Sputnik puts foward a general assessment, “it can be said that Viet Nam is the true heroic model of 2020, the year that has caused shocking impact to the global economy and community life. Viet Nam has faced and overcome the hard challenges, it demonstrates the resilience of the people and the wisdom of the country's leadership, well worth of the respect and sincere admiration of the world community. It uplifts the reputation of Viet Nam in the international arena".

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