Vietnam’s post-COVID-19 economic recovery

14/05/2020

In recent years, the Politburo, the Secretariat and the Government have issued timely resolutions to protect people's health, stabilize society, minimize damage to the economy, and create favorable conditions maintain and soon restore production and business activities, and take advantage of opportunities after the epidemic is over so that the economy can develop quickly and sustainably.

According to the Minister of Planning and Investment Nguyen Chi Dung, the impact of the COVID-19 epidemic resonates with the decline since 2019 that has comprehensively affected all economic and social fields of the above countries. world. For Vietnam, the impact of the epidemic is very serious. The growth rate of gross domestic product (GDP) in the first quarter was estimated to increase only 3.82% over the same period, the lowest from 2011 to the present.
 
The Prime Minister issued Directive No. 11 / CT-TTg on March 4, 2020 to direct ministries and branches to promptly implement measures such as interest rate reduction, debt restructuring, service fee exemption and reduction, implementing preferential credit programs; extending, extending and delaying payable amounts of enterprises on taxes and land rents; reducing electricity, petrol, service price ... with the total value of nearly 22 billion USD.
 
The longer the epidemic becomes, the more serious the economic impact is, the 6.8% GDP growth target for the whole year is very challenging and difficult to achieve. In the case an epidemic is controlled in the second quarter, GDP growth is forecasted at about 5.32% and in case the epidemic lasts until the third quarter, GDP growth is forecast at 5.05%.

Some macro indicators are at risk of strong impact such as: state budget revenue may decrease by VND 145,000 billion; import-export, investment of private sector and FDI dropped sharply due to the sharp decrease in "global demand" of investors, investors tended to be more cautious in making investment decisions and redirect safer investments.
 
The model of economic recovery after COVID epidemic


 
 
 
In this context, the Government assigned the Ministry of Planning and Investment to assume the prime responsibility and coordinate with the concerned ministries and branches in drafting a Government's specialized resolution on tasks and solutions to overcome difficulties. for production and business, promoting disbursement of public investment in the context of COVID-19 pandemic.
 
The Prime Minister has issued a Resolution of the Government on measures to support people meeting with difficulties caused by pandemics. The resolution will support about 20 million people with a budget of about VND 62,000 billion.
Regarding the scenario of proactive economic recovery after the epidemic, Minister Nguyen Chi Dung said that the COVID-19 epidemic caused many difficulties and damages to economies around the world, but it was an opportunity for those countries. If the economy can take advantage of the adjustment and rearrangement of the global economic and trade situation caused by epidemic.

Since the onset of the COVID - 19 pandemic early in the year, Vietnam has actively increased the interest of the international business community and investors to Vietnam as an investment and business destination. safe, sustainable.

On the other hand, the Government also assesses the impact of the epidemic on industries, sectors and estimated land economy; study and forecast trends, opportunities and identify new drivers of growth as a basis for accelerating the restructuring of the economy to accommodate new shifts and structures, such as development needs. and digital transformation, labor demand, investment trends, consumption trends ...

The Government drastically directs the early formation of "economic revitalization" scenarios, concretizing them to each industry, field, locality and enterprise area before the translation ends so that the economy is ready to transfer. to a new operating state; competitive, proactively participating in the new link chains and value chains formed after the epidemic. Take advantage of all opportunities to take advantage of the country to develop quickly and sustainably not only by but also before the time of the outbreak.

 
“The Vietnamese government has responded quickly to the Covid-19 pandemic. Vietnam’s economic policies seem quite in line with the situation. ”
Prof. Andreas Stoffers -
Country Director of Friedrich Naumann for Freedom (FNF) in Vietnam
 

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