Feb 16, 2021 / 07:37

Experts confident Vietnam to realize 6.5% GDP growth target in 2021

Experts have said that Vietnam should further focus on administrative reform and improve the existing legislation framework to boost economic growth this year.

Many experts have expressed their confidence that Vietnam would be able to realize or even surpass the growth target of 6-6.5% in 2021.

 Production at Garment 10 Company. Photo: Thanh Hai. 

Vice Chairman of the European Chamber of Commerce in Vietnam (Eurocham) Nguyen Hai Minh in an interview with the World & Vietnam Report said the country’s GPD growth target of 6% in 2021 is both “ambitious and feasible.”

According to Mr. Minh, such a high growth remains challenging given the severe consequences of the Covid-19 pandemic to the world’s economy.

“However, for Vietnam, it is not impossible as the country has   successfully contained the pandemic in the past,” he said.

Mr. Minh also referred to the high optimism of the European business community towards Vietnam’s business and investment environment by giving it a score of 63.6 in Eurocham’s Business Climate Index (BCI) that was conducted in the fourth quarter of last year, the highest score since the first Covid-19 outbreak.

For Vietnam to continue pushing for high economic growth this year, Mr. Minh expected Vietnam to further press on administrative reform and improve the existing legislation framework.

Mr. Minh expected the EU – Vietnam Free Trade Agreement (EVFTA) that was signed last year could open up a new wave of investment capital and knowledge transfer from Europe to Vietnam.

For the time being, Mr. Minh expected Vietnamese companies to grasp opportunities from the ongoing diversification of global supply chains as a result of the Covid-19 pandemic.

“Local firms should take on innovation and adopt new technologies to further integrate into supply chains and enhance their linkages with multinationals,” he noted.

On the outlook of Vietnam’s economy, former Director of the Central Institute for Economic Management (CIEM) Nguyen Dinh Cung said the Vietnamese government has taken a cautious approach in setting a growth target of 6.5% for 2021.

“Vietnam could reach the target of 7-7.5% for this year,” Mr. Cung asserted.

Nguyen Van Toan, vice chairman of Vietnam's Association of Foreign Invested Enterprises (VAFIE) said a 6.5% growth target is “ attainable when taking into consideration what Vietnam had achieved last year.”

“A strong and resilient agricultural sector that is well-adapted to the current pandemic environment and high risks of natural disaster would be key for high economic growth in 2021,” said Mr. Toan.

“Meanwhile, exports should further improve in 2021 following the recent signing of major trade deals last year, including the EVFTA, Regional Comprehensive Economic Partnership (RCEP) and the UK-Vietnam Free Trade Agreement (UKVFTA).”

At the launch of World Bank’s report for Vietnam titled “Taking Stock” last December, the bank’s lead economist Jacques Morisset said Vietnam’s economy is on track to rebound to 6.8% this year and stays among world’s fastest growing economies.

Despite growing global uncertainties, the introduction of effective Covid-19 vaccines and resumption of trading activities would benefit Vietnam’s further growth, he noted.