📝 OP-ED Economic growth in new situation - result of joint efforts

Hanoi (VNA) – The 5.03 percent growth in national gross domestic product (GDP) in the first quarter of this year, the highest ever since the outset of COVID-19 in 2020, is proof of the positive outcome brought about by changes in the mindset and vision as well as the timely decisions and policies taken by the government to deal with the pandemic. 

The result will create a firm foundation for the next period of development, with the entire political system and the business circle making joint efforts to achieve the growth target set for 2022.

A decisive factor is the government's persistently pursuing the COVID-19 vaccine strategy with the aim of reaching herd immunity. Drastic solutions have been taken, from the establishment of a vaccine fund, vaccine diplomacy, and study on home-grown vaccines to a large-scale free-of-charge vaccination drive.

In mid-2021, the Straits Times of Singapore said that it would take Vietnam more than 10 years to vaccinate 75 percent of its population. 

But with a flexible vaccine diplomacy and contributions to the COVID-19 vaccine fund by the whole society and the business community, the vaccination drive has been rolled out fast in Vietnam with more than 205 million doses of COVID-19 vaccines  administered so far, including nearly 49 million third shots.

Speaking on the occasion of the establishment of the COVID-19 vaccine fund in mid-2021, Prime Minister Pham Minh Chinh affirmed that vaccination is the essential, long-term, decisive and strategic solution to the pandemic.

Along with changes in mindset and vision, the government also quickly issued decisions and policies to support economic recovery, notably Resolution No. 11/NQ-CP on socio-economic recovery and development programme and implementation of the National Assembly’s Resolution No. 43/2022/QH15 on fiscal and monetary policies in support of the programme; a proposal on cutting environmental protection tax rates on petrol, oil and lubricants to the National Assembly Standing Committee, which has been adopted and is scheduled to take effect until December 31, 2022; and the decision to resume international air routes and tourism activities.

Such decisions, along with the "vaccine" weapon, have energised people and enterprises, and consolidated confidence of international organisations and foreign investors in Vietnam.

During the first quarter of this year, despite price escalation, global uncertainties and Russia-Ukraine tensions, Vietnam’s consumer price index (CPI) inched up only 1.92 percent. The country also reported a trade surplus of 809 million USD and its FDI disbursement hit a five-year high.  

The national economy is bouncing back strongly thanks to the timely decisions and policies and flexible mindset to adapt to the pandemic as well as the global political uncertainties.

In a report released on March 28, Fitch Ratings maintained Vietnam’s long-term foreign-currency issuer default rating (IDR) at “BB” with a positive outlook.

It forecast that efforts to maintain macroeconomic stability, strive for a high economic growth rate, reduce the disparity in GDP per capita compared to its peers and further improve public finances through sustained fiscal consolidation, expansion of the collection base, and medium-term debt stabilisation, overcoming weaknesses in the banking sector in terms of capitalisation, transparency regarding asset quality and regulatory frameworks, will be positive factors to help further enhance the country's credit rating in the coming time.

Fitch Ratings noted the rapid recovery of economic activities thanks to the Government's flexible approach in response to the pandemic and high vaccination rates.

However, the picture is not all rosy. The disbursement of public investments in localities remains sluggish, plus other problems like bubble land price or illegal trading of shares on the stock market. 

Red tape has still been reported in public agencies, causing difficulties in administrative procedures to people and businesses. Meanwhile, enterprises have also created difficulties for themselves when they failed to stay updated on export-import procedures and regulations.

Such issues would be obstacles to Vietnam’s economic reopening and development.

To achieve the yearly growth target of 6-6.5 percent, it requires not only visions and efforts by the Government but also the performance of State management agencies, ministries, all-level authorities and businesses.

In the context of the pandemic, the world's unpredictable, complicated geopolitical situation and slow global economic recovery and other difficulties ahead, concerted efforts of the entire political system will ensure the country's success in the time ahead./.