Hanoi (VNA) - The Ministry of Planning and Investment (MPI) said it should not be too optimistic and subjective about economic growth given complicated developments of Covid-19 pandemic. 

MPI: COVID-19 pandemic may affect GDP hinh anh 1 Socio-economic report for the first four months of the year shows that macroeconomic indicators remain stable (Photo: VNA)

Minister of Planning and Investment Nguyen Chi Dung said socio-economic situation in April and the first four months of the year continued to recover despite complicated developments of Covid-19. Specifically, the macro-economy remained stable, average consumer price index (CPI) was rather low and credit growth recovered quickly, while governance efficiency, public administration, and provincial competitiveness continued to improve.

The minister added that although situations in Vietnam and the world are forecasted to be promising, risks and uncertainties are still high, especially in terms of prices and inflation. He emphasized that the complicated development of COVID-19 epidemic is expected to have a great impact on growth.

A recent report from the Ministry of Planning and Investment shows that macroeconomic indicators are still stable, while major economic balances are secured, and some other indicators have still shown positive signs. 

Specifically, trade and investment activities maintained a positive momentum, commodity exports increased continuously for four consecutive months reaching 103.9 billion USD, up 28.3% compared to the same period last year. Disbursement of investment capital from the State budget was promoted, reaching 86,000 billion VND or 18.65% of the plan assigned by the Prime Minister. 

Notably, foreign direct investment (FDI) reached 12.25 billion USD, of which disbursed capital was estimated at 5.5 billion USD, up 6.8% over the same period last year.

Besides, signs of recovery have seen in production and business activities, while the index of industrial production (IIP) in the first four months of this year bounced back to double-digit growth, reaching 10% over the same period in 2020. On the other hand, overall retail sales and services also increased by 10% year-on-year.

In the context of socio-economics being negatively affected by the epidemic, increasing competitive pressure has forced many businesses to withdraw from the market. But along with that, the number of newly registered businesses has also increased remarkably. In the first four months of the year, nearly 44,200 new enterprises were registered with a total registered capital of 627,700 billion dong, an increase of 41% over the same period last year.

Nearly 44,200 new businesses established in the first four months of 2021. (Photo: VNA)

Notably, reports have shown that public administration and governance effectiveness and provincial competitiveness have been improved.

Specifically, the Governance and Public Administration Performance Index (PAPI) has continuously soared over the years. Besides, the Provincial Competitiveness Index-PCI has also continuously improved. 

Hoang Cong Tuan, head of the economic department under the MB Securities Company said that the Government's issuance of Decree No. 52/ND-CP extended the time period for paying value added tax from 4 to 6 months, corporate income tax was postponed for 3 months and land rent deferred for 6 months. "These deferred taxes will increase short-term cash flow for businesses, boosting production and business activities in the coming time," Tuan said.

Minister Nguyen Chi Dung said interest rates continue to remain low with rapid credit growth, creating conditions to promote and recover economic growth.

For some important issues, such as price management, renewable energy and the taking advantage of opportunities from the FTA, the Government has assigned the Ministry of Industry and Trade to coordinate with relevant agencies to closely monitor price fluctuation, supply and demand in the market, especially raw materials and production inputs such as iron, steel, cement, animal feed.

In addition, the Ministry of Labor, War Invalids and Social Affairs should urgently research and implement policies and solutions to support workers, who are still facing difficulties due to impacts of the epidemic, while promoting supply-demand connections in the labor market and employment supporting activities./.