Vietnam might record high economic growth in the post-pandemic period thanks to the swiftness of structural reforms and trade facilitating measures (Illustrative photo: VTC)
Hanoi (VNA) – Vietnam might recordhigh economic growth in the post-pandemic period thanks to the swiftness ofstructural reforms and trade facilitating measures and emerge as the perfectexample for recovery, an Indian scholar has said.
In an article published onmoderndiplomacy.eu, Prof. Pankaj Jha of the Jindal School of InternationalAffairs at India’s O P Jindal Global University, Sonepat, cited a report of theInternational Monetary Fund (IMF) saying that Vietnam’s economy was expected togrow at the rate of 2.7 percent in 2020, and is showing signs of betterrecovery in the post COVID-19 phase.
He added that Prime Minister Nguyen XuanPhuc has stated that the economy will grow at the rate of 4 to 5 percent thisyear, exceeding previous predictions made by the IMF.
The acceleration that the Vietnamese economyhas achieved after successfully defeating COVID-19 is on its way to recoverfaster than many Asian economies in the region, the scholar noted.
In the revised estimates of the IMF in May itwas stated that Vietnamese economy will grow at the rate of 7 percent next yearbut given the encouraging signs of the economic momentum, it might surpass theprojected economic growth.
The country’s economic developmentindicators are promising in the second quarter, the article noted.
Vietnam has posted its trade surplus of 500million USD in June although it suffered a trade deficit of 900 million USD amonth earlier, according to a Bloomberg report.
The author said that the US-Vietnam tradeis expected to touch 80 billion USD in the coming years and the EU-Vietnam FreeTrade Agreement (EVFTA) has facilitated better trade avenues for Vietnam.
Vietnam has been witnessing rise in foreigndirect investment from European and US companies because of improvement inlegal aspects and better business facilitation environment.
Prof. Jindal Jha said that Vietnam hastaken active intervention to address economic issues during the COVID-19 pandemic,including rationalising tax structure and improving infrastructure, amongothers. The Vietnamese dong has been kept within a certain range.
Vietnam is a highly literate nation and itis working hard to build a new education system to provide skilled workers andlanguage experts to lure foreign firms to invest in the country.
One of the biggest achievements that thecountry has done in the last decade has been perceptible decline in corruption.
Vietnam is also making due efforts inbringing about more foreign direct investment from Asian and European countriesto boost its manufacturing and industries in high technology sectors./.
