Specific economic recovery criteria needed in implementing “dual targets”: experts hinh anh 1The business community has become exhausted after four COVID-19 waves (Illustrative image. Source: VNA)

Hanoi (VNA) – Specific tasks and targets should be assigned to localities to motivate them in controlling the pandemic and boosting economic development at the same time, according to experts.

Many economists hold that despite the stable macroeconomic situation in the first nine months of this year, the worsening “health” condition of the business sector is making it difficult to meet the target of 3 percent in gross domestic product (GDP) growth for the whole year.

Particularly, specific and detailed criteria in economic recovery are crucial to realising the “dual targets”, they asserted.

Specific economic recovery targets needed

According to Truong Van Cam, Vice President of the Vietnam Textile and Apparel Association, the Government has set the “dual targets”, but yet to assign specific economic development goals for each locality other than pandemic control targets. Therefore, many localities have focused all resources and efforts on pandemic control activities to secure their “green zone” status, he said.

He stressed the need to assign specific economic recovery tasks to each locality, ensuring a balance in efforts to control the pandemic and boost economic development.

He underlined that the most important thing to the business community is the coherence between pandemic prevention, control regulations and socio-economic strategy of each locality as well as the close coordination with their neighbouring localities.

According to economist Can Van Luc, authorities from the central to local levels should give clear roadmaps and plans for reopening. The implementation should be open and transparent. This will provide a foundation for businesses to prepare resources, workforce and production conditions as well as accommodations for workers to promote their production recovery, he said.

Luc held that it is to clarify measures to live safely with COVID-19, stressing the need for a socio-economic recovery framework programme in each locality to ensure coherence and connections among the localities.

Support package should go to right addresses

Dr. Luc noted that the Vietnamese economy has never experienced a low expansion like in the first three quarters of this year. Meanwhile, people and businesses have become exhausted after four waves of COVID-19, he added.

At the same time, Cam said that enterprises in the garment and textile sectors, especially those in southern localities, are very desperate, with only 10-15 percent able to apply the “three-on-site” model to maintain production.

Meanwhile, the supply, selling and production chains have been burdened by severe shortages of materials and sharp drops in demands of the US and European markets.

Specific economic recovery criteria needed in implementing “dual targets”: experts hinh anh 2Illustrative image (Source: VNA)

Cam also mentioned the risk of interruption of the currency flow. The VITAS has made many requests to the Government for support packages for businesses to avoid the crackdown of currency flow. These would allow businesses to recover their production.

Cam said that the recovery of production of the sector in 2022 greatly depends on the developments of the pandemic. Currently, 90 percent of businesses are on standstill, 60 percent of these will see little chance for recovery, he noted.

However, many experts hold that support packages given by the Government have yet to prove effective. They pointed to problems in administrative procedure and poor access to capital.

Luc suggested that new policy support packages should pay more attention to businesses’ capacity to access the capital.

In order to complete GDP growth target in the fourth quarter and pave the way for economic recovery in 2022, Dr. Nguyen Xuan Thanh holds that the Government should roll out comprehensive support policies in currency in parallel with the expansion of the “fiscal package”. These would include maintaining a low interest rate and accepting a higher State budget over-expenditure in 2022.

The most important policy right now is opening the door and maintaining macroeconomic stability, Thanh underscored./.