Reopening of economy – important to reverse GDP growth in Q4

Hanoi (VNA) – Reopening the economy is being considered an inevitable path to create an opportunity to reverse gross domestic product (GDP) growth in the fourth quarter and improve that of the whole year 2021.

This is also a way for Vietnam not to miss a beat of the world economy’s recovery, according to experts.

The nation’s GDP declined by 6.17 percent annually in the third quarter of 2021, making the GDP growth rate in the first nine months up only 1.42 percent, much lower than the target set at the beginning of this year.

Speaking at a recent webinar on Vietnam’s economic outlook, economist Nguyen Xuan Thanh, senior lecturer at Fulbright Vietnam University, affirmed that reopening is crucial to recover the economy. To achieve positive economic growth, Vietnam should soon reopen its economy, maintain the opening status, and avoid the imposition of large-scale social distancing again.

Vu Tien Loc, President of the Vietnam International Arbitration Centre (VIAC), said that GDP will continue contracting if the situation is not improved.

According to him, the world economy is forecast to grow by 5.6 percent in 2021. Therefore, if Vietnam does not reopen its economy soon, it can miss the world’s recovery beat, and stand apart from the resumption of global supply chains.

Based on the growth rates in the third quarter and the first nine months of 2021, the Ministry of Planning and Investment has proposed two GDP growth scenarios for the whole year, at 3 or 3.5 percent. To achieve the GDP growth rate of 3 percent or 3.5 percent in 2021, that of the fourth quarter must hit at least 7.06 percent or 8.84 percent, respectively.

Representatives from the foreign business associations suggested the Vietnamese Government have a clear roadmap for the reopening as soon as possible./.