Log in
Econ

Vietnam sets high GDP target in 2021 to make breakthroughs

Pressure from high GDP target in 2021 is expected to help the Vietnamese government to create breakthroughs for growth in subsequent years.

While a GDP growth target of 6.5% in 2021, 0.5 percentage points higher than the goal set by the National Assembly, would no doubt put the government under pressure to take actions, but is necessary to create breakthroughs for development in subsequent years.

 Prime Minister Nguyen Xuan Phuc at Foster Company in VSIP Bac Ninh Industrial Park in May, 2020. Photo: Quang Hieu. 

“This comes on the fact that 2021 is the first year of Vietnam’s five-year socio-economic development plan (2021-25), but also a golden time for the country to take on new opportunities,” stated Minister of Planning and Investment Nguyen Chi Dung.

In 2021, the world economy continues to face four major challenges, including the complicated Covid-19 situation globally; tech and trade tensions between major powers; geopolitical risks; and volatility of international financial markets.

“In this context, a 6% GDP growth target for Vietnam remains ambitious, let alone a 6.5%,” economist Tran Dinh Thien said.

“However, there are reasons for Vietnam to be optimistic,” Mr. Thien noted, saying Vietnam continues to enjoy positive impacts from free trade agreements, including the EVFTA, RCEP and most recently, the UKVFTA.

Mr. Thien also pointed to the ongoing global shift of investment capital, Vietnam’s current efforts in digital transformation and promoting e-commerce, as well as the dynamic and abundant workforce.

“If Vietnam can address current internal issues and grasp opportunities with both hands, there is a high chance that Vietnam can attain the high GDP growth target in 2021 and for the 2021-25 period,” he suggested.

To realize these targets, Vietnam must continue to restructure the economy by revising its growth model based on science, technology, innovation, and working towards higher productivity, economic competitiveness and resilience against external shocks, Mr. Thien asserted.

“The Vietnamese government targets the digital economy to contribute 20% of the GDP by 2025, which would require strong efforts from both the government and local provinces/cities,” he added.

Along with that target, the government sets sight for the total factor productivity (TFP), which is determined by how efficiently and intensely the inputs are utilized in production, to contribute by 45-47% of the GDP and productivity growth of 6.5% per year, goals that Mr. Thien said are difficult even in the conditions of the pre-Covid-19 period.

“A developed digital economy, nevertheless, could boost the TFP and productivity to a new level,” stated Minster Dung.

The government is committed to further supporting the development of an ecosystem for innovative startups, including incentive policies and favorable access to financial resources, added Mr. Dung.

 

Further support for business community

Head of the Prime Minister’s Economic Advisory Group Nguyen Duc Kien said the Vietnamese economy is on the right direction for rapid and sustainable development by focusing on improving the institutional framework, human resources and infrastructure system.

In a difficult year with Covid-19, Vietnam gives priority to stabilizing the macro-economic conditions and providing support for the business community.

In the first quarter of 2020, the number of enterprises resuming operation stood at 14,800, down 1.6% year-on-year, but was on steady growth to 8.2% year-on-year in the second and third quarter.

As of November 2020, 40,800 businesses resumed operation, up 10.7% year-on-year, taking the total number of newly established and those resuming operation in the 11-month period to 165,100, up 0.9%.

Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said the business community expected stronger support from the government to help them better recover from the pandemic.

“Effective government support program and enterprises’ own efforts could lead to a more positive business performances in next year and contributing to the overall growth,” stated Mr. Loc.

Reactions:
Share:
Trending
Most Viewed
Related news
Vietnam’s top 8 economic events in 2020

Vietnam’s top 8 economic events in 2020

30 Dec, 14:54

As the world is struggling with unprecedented crisis from the Covid-19 pandemic, Vietnam has emerged as one of the most successful stories by putting the deathly virus under control and boosting strong economic growth.

Real estate firms sell bonds worth $402 million in May

Real estate firms sell bonds worth $402 million in May

Real estate companies have raised $862 million from bond issuance in April and May, thanks to an improved business environment and better access to funding.

Vietnam unveils new strategies to boost domestic market, aid businesses

Vietnam unveils new strategies to boost domestic market, aid businesses

As global trade uncertainties grow, Vietnam sees the domestic market not only as a key consumption driver but also a “lifeline” for businesses hit by protectionist export barriers.

Vietnam eyes US tilapia export boost as global supply falls

Vietnam eyes US tilapia export boost as global supply falls

Vietnam aims to increase tilapia output to 400,000 tons by 2030, making it the second-largest freshwater export species after pangasius.

Vietnam’s enterprises must act fast to weather US tariff shock: Experts 

Vietnam’s enterprises must act fast to weather US tariff shock: Experts 

Many of the key Vietnamese exports, such as wood products, electronics, and textiles, that are not on the US exclusion list could face steep tariffs.

Vietnam's mobile money pilot program extended to end of 2025

Vietnam's mobile money pilot program extended to end of 2025

Mobile Money, launched by the Ministry of Science and Technology, differs from e-wallets by linking users’ payment accounts directly to mobile phone numbers.

Vietnam taps innovation, global ties to elevate national brand

Vietnam taps innovation, global ties to elevate national brand

Vietnam is intensifying efforts to enhance its national brand, leveraging innovation, global partnerships, and strategic policies to bolster its global competitiveness and market presence.

Vietnam extends US$3.9 billion loan package for agro-forestry-fisheries

Vietnam extends US$3.9 billion loan package for agro-forestry-fisheries

The government has expanded the scope and scale of the credit program for the sectors which brought about US$62.4 billion worth of exports in 2024.

Vietnamese public shows rising satisfaction in 2024 PAPI survey

Vietnamese public shows rising satisfaction in 2024 PAPI survey

The 2024 PAPI survey found increasing citizen satisfaction with governance, but highlighted persistent administrative challenges, climate vulnerability, and gaps in access to public services.