Vietnamese economy sees bright prospects

Hanoi (VNA) - With more positive developments in the world economy and the rapid recovery of China, the Vietnamese economy has foundations to hope for a strong economic recovery in the future, according to Duong Manh Hung, Director of the General Statistic Office (GSO)’s National Accounts Department.

Hung made the remark in response to a report recently released by the S&P Global Ratings saying that Vietnam is likely to be the second best performer in terms of economic recovery in the Asia-Pacific region.

According to him, the recovery of the world economy increases the demand for goods, thereby promoting recovery and development of export turnover, especially of products of Vietnamese strength such as farm produce, textiles, footwear, and electronic components.

In addition, the EU-Vietnam Free Trade Agreement (EVFTA) has come into effect and is being actively implemented by agencies at all levels, sectors and localities. The General Department of Vietnam Customs has also issued a document instructing enterprises how to declare goods eligible for reduced tariffs under the EVFTA, helping to restore exports to Europe, which is a major traditional market of Vietnam. In particular, the rapid recovery of the Chinese economy is also a good signal for the Vietnamese economy as it is a large export and import market of the Southeast Asian country.

Agriculture is considered the "pillar" of the Vietnamese economy in 2020 because weather is favourable for cultivation and many fruit trees see bumper crops, Hung said, adding that rice prices and consumption markets for some agricultural products are stable.

The manufacturing industry in September increased sharply and is expected to continue growing in the fourth quarter, Hung stated.

At the same time, Vietnam has gone through four weeks without any new COVID-19 community infections, making market service activities recover and tend to grow again, he noted.

Vietnam is also considering the reopening of international and domestic air routes with measures to be put in place to ensure safety. It is expected that the transport, tourism, hotel, restaurant, entertainment industries will grow sharply at the end of the year.

“With these positive signs, it is forecast that Vietnam’s economy will grow strongly in the near future,” Hung said./.