Vietnam PM targets positive economic growth for 2020

As the health crisis continues to rage, achieving positive economic growth for this year and shielding the economy from negative effects of the pandemic would require huge efforts, according to Prime Minister Nguyen Xuan Phuc.

Prime Minister Nguyen Xuan Phuc at the meeting. Photo: VGP.

Due to severe impacts of the Covid-19 pandemic on the global economy, countries have rolled out large scale stimulus packages and pursued an expansionary fiscal policy, Mr. Phuc said at a meeting of the 13th Party Congress’ socio-economic sub-committee on August 28.

According to Mr. Phuc, in addition to supporting programs for the people and businesses affected by the pandemic, the government is determined to ensure the dual target of containing the pandemic and pushing for a positive GDP growth rate.

The Vietnamese government no longer sets a specific figure for the growth target this year after the country's GDP grew at a 30-year low of 0.36% in the second quarter, and 1.81% in the first six months of the year.

After three months without any local infections, the pandemic reemerged in Vietnam with the first case confirmed in Danang on July 25.

As Covid-19 vaccines are still in the developing process, Vietnam requires the right strategy for both short- and long-term needs in a new normalcy, which is to live with the coronavirus, Mr. Phuc stressed.

At a time of growing uncertainties, Mr. Phuc requested government agencies to adjust socio-economic development targets in a new normalcy, especially major economic indicators under direct impacts of the pandemic, such as GDP growth or GDP per capita.

The World Bank in late July predicted Vietnam’s economic growth at 2.8% this year, the world's fifth-fastest-growing economy.

HSBC in its latest report also expected Vietnam to remain the strongest growth performer this year in the Southeast Asian region with a GDP growth rate of 2.9%, thanks to effective virus containment.