Economic Recovery

Amid heightened uncertainty, continued policy support is essential to bolster the nascent economic recovery and facilitate the transition to the post-pandemic new normal.

To date, Hanoi has effectively contained the pandemic situation, which helps avoid disruption of economic activities and daily life of the public, Secretary of the Hanoi Party Committee Vuong Dinh Hue has said.

A low-interest rate environment in long term could make capital available for other investment channels, so banks are under pressure to readjust their savings mobilization rates to better attract idle capital.

Public investment, trade and domestic consumption remain key for Vietnam’s economic recovery in 2021.

Such extension in delay of taxes and land rental fees payment is essential for the business community to continue its economic recovery process and ensure the realization of the 6.5% economic growth target in 2021.

A recovery in consumer spending in Vietnam this year is in line with Fitch Solutions’ forecast that the country’s economy will grow by a real rate of 8.6% year-on-year over 2021 from 2.91% in the previous year.

In 2021, Vietnam is set to benefit from a tech-led recovery, consistent FDI inflows and numerous trade agreements.

Such growth rate, while remaining lower compared to the 12.7% recorded the previous year, was an encouraging sign for the business community amid global retail market suffering plunge in revenue during the pandemic.

The fact that interest rates are still very low, will help the local stock markets continue to be an attractive and profitable channel, thereby attracting domestic investor.