Viet Nam's GDP growth may reach 3.5-4 percent in 2021 if pandemic well controlled in September

If the COVID-19 pandemic is put under good control in September, the country’s gross domestic product (GDP) growth may reach 3.5-4 percent in the whole year, said Minister of Planning and Investment Nguyen Chi Dung.
Vietnam's GDP growth may reach 3.5-4 percent in 2021 if pandemic well controlled in September
A view of Ho Chi Minh City. (Photo: VNA)

The minister held that although the predicted result is lower than the set target, it requires greater efforts of the whole political system and localities.

If this scenario becomes true, 2021 will be the second year that Viet Nam fails to complete its growth target, which will affect the implementation of the overall development plan for the 2021-2025 period. Last year, Viet Nam’s GDP growth only expanded 2.92 percent due to impacts from the pandemic.

Dung held that social distancing measures have greatly affected production and business activities as well as employment. Meanwhile, the cost for pandemic prevention and control is high, which affects the State budget collection and spending, he said, adding that the pandemic have also impacted on the establishment of new firms and the attraction of foreign direct investment.

Particularly, weak domestic consumption of agricultural products and high prices of input materials have also caused difficulties for businesses’ production expansion, he said.

The minister reminded localities to grasp all opportunities to catch up with the recovery trend of world major economies which have great impacts on the Vietnamese economy. He suggested that some localities should not depend on only one or two foreign-invested firms to secure economic growth.

In order to boost economic growth in the rest of the year and 2022, Dung pointed out a number of solutions, including the good control of COVID-19 and the avoidance of another outbreak that may crack down production and supply chains.

Besides, localities should increase meetings and dialogues with local businesses to create a more favourable investment environment for them, while ensuring social security, supporting pandemic-hit people, and actively building their own economic recovery plans.

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(Source: VNA)