World Bank’s economic update for Vietnam “Taking Stock” was released on December 21. (Photo: VNA) Hanoi (VNA) - Vietnam’s prospects appear positive as the economy isprojected to grow by about 6.8 percent in 2021 and, thereafter, stabilise ataround 6.5 percent, according to the latest World Bank’s economic update forVietnam “Taking Stock”.
Thisprojection assumes that the COVID-19 crisis will be brought gradually undercontrol, notably through the introduction of an effective vaccine.
The reportemphasises that Vietnam might be exposed to fiscal, financial, and social risksthat should require greater attention from the authorities.
“Vietnam is standing at a crossroads ofpost-COVID-19 recovery. It has an opportunity to set itself on a greener,smarter, and more inclusive development path that will bolster resilience tofuture shocks from both pandemics and climate-related disasters,” said Carolyn Turk, World Bank Country Director forVietnam. “The authoritiesmust tackle the environmental and climate challenges with the same sense ofurgency as they have done with COVID-19 because the costs of inaction arealready visible and will become increasingly irreversible. The recent tropicalstorms in Vietnam’s central region and rising air pollution in the country’smajor cities are good illustration of this fragility.”
The WB said Vietnamis expected to grow by almost 3 percent in 2020 while the world economy isexpected to contract at least by 4 percent amidst the biggest global shock ofthe past decades.
The externalsector—the main driver of economic growth in Vietnam over the past decade—hasperformed exceptionally well since the beginning of the COVID-19 crisis.
Vietnam's economy is expected to grow by almost 3 percent in 2020 while the world is expected to contract at least by 4 percent amidst the biggest global shock of the past decades. (Photo: VNA) The country ison the verge of reporting not only its highest merchandise trade surplus everbut also an increase in international reserves. The continued inflows offoreign investment and the steady rise in merchandise exports more thancompensated for the losses in foreign exchange earnings from decreased tourismactivities and shrinking remittances, according to the report.
The reportsuggests that foreign investors have continued investing and/or shiftingproduction activities to Vietnam due to the country’s good management of thepandemic.
According tothe WB, two lessons from the successful management of the COVID-19 crisis couldbe extended to the environmental agenda.
The firstlesson is that the best way to cope with an external shock is to be prepared inadvance and move with early and bold actions. Second, beyond vision andcapacity, the ability to embrace innovation and experiments is instrumental tochange individual and collective behaviours, which lays at the root ofstrategies to cope with health and climate threats.
It argues thatVietnam’s ambition to become a high-economy will be determined not only by itscapacity to exit successfully from the COVID-19 crisis but also how it willmanage its natural resources and climate risks./.
VNA
