Vietnam achieves outstanding economic results during 2016-2020

Export growth during 2016-2020 is impressive. (Photo: VNA)

Hanoi (VNA) – Vietnam attained impressive achievements across economy, investment as well as international trade during 2016-2020 period thanks to drastic direction of the Prime Minister as well as joint efforts of competent ministries and sectors, Head of the Party Central Committee’s Economic Commission Tran Tuan Anh has said.

Anh, who is also the Minister of Industry and Trade, made the highlight during an interview with the Vietnam News Agency’s reporters on the eve of the traditional Lunar New Year.

Following is the full text of the interview:

Question: Could you please give your evaluation on the nation’s import-export activities during the 2016-2020 period in the context of current global trade?

Answer: The country witnessed a period with rapid growth of both imports and exports. There were years that shipments surged from 20-22 percent, and the figure was impressive enough to dazzle any foreign economists, experts and businesses.

Two-way trade during the four-year period topped 500 billion USD, which is significant in this tough time.

Actually, the protectionism has deeply affected the international trade flow, including Vietnam – a developing economy. As an export-oriented economy, Vietnam is easily hurt by trade protectionism, unilateralism or trade war.

Besides, many regional economic linkages were shaped up in this period, making significant contributions to consolidating the rule-based multilateral trade system. To this end, Vietnam could be left behind if the nation did not have drastic and rational policies.

Q: What are the Government’s contributions to the country’s rosy economic achievements in the past time?

A: The Government and the Prime Minister have played an important role in attaining the results.

To be more specific, import-export growth ranged 8-10 percent during the 2016-2020 period. Particularly in the COVID year 2020, Vietnam maintained a positive export growth of 6.5 percent while most countries in the world suffered negative expansion.

In the period, Vietnam was able to get access to the economic regions which account for some 60 percent of the global GDP by successfully clinching large free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), EU-Vietnam Free Trade Agreement (EVFTA), and Regional Comprehensive Economic Partnership (RCEP).

Thanks to the pacts, Vietnam saw significant growth in its shipments. In 2016, shipments made up 80.7 percent of the GDP. The figure rose to 107 percent in 2019 and more than 100 percent in 2020.

In 2016, we had 25 items of exports in the one-billion-USD club, but now the figure is 31.

Exports in the period enjoyed sustainable growth, and contributed greatly to the macro-economy, creating favourable conditions for us to carry out the economic restructuring strategy, as well as improve local livelihoods.

But the most important point is that the opening of markets has facilitated the expansion of economic scale and productivity, and improved our products’ competitive edge.

Previously, our trade relied heavily on exports of raw materials, but now processed products play an increasingly dominant role.

This means our import-export restructuring strategy is on the right track.

Head of the Party Central Committee’s Economic Commission Tran Tuan Anh. (Photo: VietnamPlus)

Q: The import-export strategy targets a trade balance and trade surplus by 2020; however, we consecutively enjoyed trade surplus in the five-year period. Could you please tell us the significance of trade surplus to the nation’s economy?

A:  Vietnam is among very few countries attaining positive economic growth in 2020. The country posted 19.1 billion USD in trade surplus in the year despite many challenges posed by the COVID-19 pandemic. This plays an important role in ensuring the country’s sustainable development targets.

In this period, together with an wider market access after joining several free trade deals, Vietnam also received an increasing FDI flow. This helped the country improve production capacity, technology and competitive capacity, as well as consolidate the sustainable trend of our import-export activities.

Also in the period, the Government spared no efforts to cut business and investment procedures, simplify inspection, and complete legal frameworks.

Vietnam witnessed a strong development in international trade during the five-year period, and ranked 22^nd worldwide in term of exports and 26^th in the international trade scale. The country reaped impressive results thanks to unceasing efforts made by competent sides. We have the right to be proud of the considerable achievement.

Thank you so much, Minister!./.