Vietnam Gov’t announces measures to boost economic growth in 2021

The Vietnamese Government has announced resolution No.01/NQ-CP in the first working day of 2021, targeting a strong economic rebound after a Covid-19 ravaged year.

The Government will continue to support enterpirses affected by Covid-19 in this year. Photo: Thanh Hai.

Under the resolution, the Government stressed its focus to pursue the dual target of both containing the pandemic and boosting economic recovery during a new normal situation.

“The Government remains cautious against the pandemic situation,” stated the resolution, adding local authorities will tighten procedures on incoming people and prevent possible import of the virus.

“Vietnam will review the opportunity of reopening international commercial flights when the conditions allow, while pushing for international cooperation in Covid-19 vaccine development for locals to be able to access such treatment at the earliest possible,” said Vice Minister of Planning and Investment Tran Quoc Phuong at the government’s press briefing on January 4.

Along with efforts against Covid-19 pandemic, Mr. Phuong said the Government is set to provide support measures in terms of credit access, taxes and expense cut for people and businesses affected by the virus.

“Government agencies continue to tighten procedures of issuing new legal documents related to business conditions, administrative procedures and specialized inspection to create a favorable and transparent business environment,” he stressed.

The resolution emphazied the needs to develop finance, stock and insurance markets, enhance State management of corporate bond market and ensure healthy development of labor market for greater competitiveness and global integration.

The Government requested the State Bank of Vietnam (SBV), the country’s central bank, to manage the monetary policy in a flexible and active manner, aiming to support economic recovery with stable macro-economic environment and putting inflation under control.

Taxation authorities are tasked with preventing tax losses, transfer pricing, tax evasion and expanding the use of e-invoices.

To ensure sustainable trade, the Government emphasizes the importance of diversifying import-export markets and avoid the over-reliance on a single market.

In parallel with these efforts, the economy should continue its restructuring process, aiming to promote green and hi-tech farming, multimodal transportation and higher efficiency of credit institutions.

State agencies are required to streamline sectors and fields in which the state holds 100% of capital, along with accelerating the privatization and divestment of state capital.

In 2021, the government targets a GDP growth of 6.5% and a GDP per capita of US$3,700. The consumer price index (CPI), the main gauge for inflation, is set to rise 4%.

The total factor productivity (TFP), which is determined by how efficiently and intensely the inputs are utilized in production, is expected contribute by 45-47% of the GDP and productivity growth of 6.5% per year.