Vietnam gov't strives to ensure positive economic growth this year
The Hanoitimes - Priorities would be to avoid any disruption to the economy and a negative growth scenario as Vietnam’s major economic partners face severe impacts from the pandemic.
The Vietnamese government would continue to pursue two objectives of containing the Covid-19 pandemic and ensuring positive economic growth this year, according to Prime Minister Nguyen Xuan Phuc.
|Prime Minister Nguyen Xuan Phuc at the meeting. Photo: VGP.|
The priority would be to avoid any potential disruption to the economy, Phuc said at a government meeting on August 2.
Among measures to boost economic growth, Phuc requested government agencies to continue speeding up disbursement of public investment and further ease both monetary and fiscal policies prudently to support businesses’ recovery during the Covid-19 pandemic.
In previous meetings, Phuc had requested the Ministry of Finance to propose more fiscal stimulus packages in forms of tax breaks, deferral of tax payments, as well as measures to mobilize additional resources to stimulate economic growth.
With the current public debt below 55% of GDP, significantly lower than the mandated ceiling of 65%, Vietnam's fiscal deficit and public debt could widen by an additional 3 – 4 percentage points without affecting national financial security in the short and long term.
In the first seven months of this year, the Vietnamese government disbursed VND203 trillion (US$8.83 billion) worth of public investment, equivalent to 42.7% of the year’s target and up 27.7% year-on-year.
This year, Vietnam plans to disburse VND700 trillion (US$30 billion), more than double the 2019 actual amount at VND312 trillion (US$13.4 billion).
According to Phuc, solutions are needed to further boost three main driving forces of the economy, including investment, consumption and exports, which are key to stimulate aggregate demand.
Phuc expected Vietnam to take advantage of new free trade agreements (FTAs) such as the EU – Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans – Pacific Partnership (CPTPP) to boost exports, while greater efficiency in logistics services is required to reduce costs for enterprises.
The World Bank in its latest forecast expected Vietnam’s economy to expand 2.8% year-on-year in 2020, making it the fifth fastest-growing economy in the world, behind a small group of African countries.
Such a prediction is similar with that of HSBC, which predicted the country’s GDP expansion at 3% this year, the only ASEAN country to have positive growth.
Vietnam reported an economic expansion of 1.81% in the first half of this year, far from the offical target of 6.8% set last year.
- Cryptocurrency is not a legal payment method in Vietnam: C.bank
- Weak credit demand leads to credit growth at only 4.81% in Jan-Sept
- Strong liquidity in Vietnam stock markets boosts stock exchanges revenue
- Large growth potential for Vietnam banking services in long-term
- Vietnam c.bank to finalize legal framework for fintech, digital banking
- Vietnam benchmark Vn-Index expected to surpass June’s peak to 920 in Sept
- Vietnam 2020 government debt to stay in line with current sovereign rating: Fitch
- USD/VND rate expected to remain stable until year-end
- Over 98% Vietnam enterprises pay taxes online
- Vietnam c.bank ensures harmony in managing policy rates
EVFTA to help realize Vietnam's high-income status ambition: Expert
UN and SOVICO help develop Hanoi into creative city
First international flight to Vietnam is from South Korea
Slow extension of FiT scheme hurts investor appetite in Vietnam wind power: GWEC
Apple partner Pegatron mulls US$1-billion investment in hi-tech projects in Vietnam
Hanoi’s weekend pedestrian streets allowed to reopen from September 18
European investors propose US$1 billion logistics project in Vietnam
Vietnam says ASEAN doesn’t want to get trapped between competition of major powers
Vietnam launches advisory message to prevent Covid-19 spread