VEPR: Vietnamese economy could grow by 6.3 pct in 2021
The Vietnamese economy could grow by about 6-6.3 percent in 2021, said chief economist Pham The Anh from the Viet Nam Institute for Economic and Policy Research (VEPR) during a workshop recently held to announce the Viet Nam Quarterly Macro-Economic Report.
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The VEPR’s report said the global economy has shown signs of recovery thanks to the availability of COVID-19 vaccines, but instability remains while growth is uneven among nations and economies.
In the first quarter, Viet Nam’s economic growth hit 4.48 percent thanks to the Government’s drastic actions to control the pandemic from the early stage, along with the signing of the European Union - Viet Nam Free Trade Agreement and the EU - Viet Nam Investment Protection Agreement.
Additionally, disbursement of public investment capital has been stepped up and the progress of key public investment projects accelerated while the wave of investment and trade is shifting to Viet Nam, helping maintain a stable macroeconomic environment with inflation under control.
However, Anh also warned that Viet Nam is facing challenges in an uncertain economic environment. The resurgence of the COVID-19 pandemic in many countries resulting in lockdown measures is prolonging the disruption of supply chains this year, weakening the resilience of enterprises. Geo-political conflicts among major powers could also expose Viet Nam to unexpected risks.
Other risks are related to fiscal imbalance, slow and low investment, vulnerable financial banking system, and growth’s heavy reliance on the foreign-invested sector.
The VEPR suggested that the top priority should be given to social welfare policies, targeting the right persons.
The report also proposed that corporate support policies should be continued with more substantial measures and greater focus.
According to Anh, Viet Nam should gradually build a fiscal cushion to prevent shocks like COVID-19 or its unexpected developments in coming years.
(Source: VNA)
