Vietnam may emerge as example for recovery after COVID-19

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 record high economic growth in the post-pandemic period thanks to the swiftness of structural reforms and trade facilitating measures and emerge as the perfect example for recovery, an Indian scholar has said.

In an article published on moderndiplomacy.eu, Prof. Pankaj Jha of the Jindal School of International Affairs at India’s O P Jindal Global University, Sonepat, cited a report of the International Monetary Fund (IMF) saying that Vietnam’s economy was expected to grow at the rate of 2.7 percent in 2020, and is showing signs of better recovery in the post COVID-19 phase.

He added that Prime Minister Nguyen Xuan Phuc has stated that the economy will grow at the rate of 4 to 5 percent this year, exceeding previous predictions made by the IMF.

The acceleration that the Vietnamese economy has achieved after successfully defeating COVID-19 is on its way to recover faster than many Asian economies in the region, the scholar noted.

In the revised estimates of the IMF in May it was stated that Vietnamese economy will grow at the rate of 7 percent next year but given the encouraging signs of the economic momentum, it might surpass the projected economic growth. 

The country’s economic development indicators are promising in the second quarter, the article noted.

Vietnam has posted its trade surplus of 500 million USD in June although it suffered a trade deficit of 900 million USD a month earlier, according to a Bloomberg report.

The author said that the US-Vietnam trade is expected to touch 80 billion USD in the coming years and the EU-Vietnam Free Trade Agreement (EVFTA) has facilitated better trade avenues for Vietnam.

Vietnam has been witnessing rise in foreign direct investment from European and US companies because of improvement in legal aspects and better business facilitation environment.

Prof. Jindal Jha said that Vietnam has taken active intervention to address economic issues during the COVID-19 pandemic, including rationalising tax structure and improving infrastructure, among others. The Vietnamese dong has been kept within a certain range.

Vietnam is a highly literate nation and it is working hard to build a new education system to provide skilled workers and language experts to lure foreign firms to invest in the country.

One of the biggest achievements that the country has done in the last decade has been perceptible decline in corruption.

Vietnam is also making due efforts in bringing about more foreign direct investment from Asian and European countries to boost its manufacturing and industries in high technology sectors./.