Economic growth from COVID-19 depends on vaccine rollout

Economic growth from COVID-19 pandemic will largely depend on the vaccine rollout, said experts.

Citizens get vaccinated in a clinic in the southern province of Bình Phước. Economic growth after the COVID-19 pandemic will largely depend on the vaccine rollout. — VNA/VNS Photo

Economic growth after the COVID-19 pandemic will largely depend on the vaccine rollout, according to experts.

They said that economic growth would also depend on the effectiveness and side effects of disease prevention measures and financial support packages. They said bad debts continued to be accumulated and could sharply increase to exceed the tolerance threshold of businesses. This is a potential financial risk in the post-pandemic economy.

Nguyễn Đức Thành, Director of the Việt Nam Centre for Economic and Strategic Studies (VESS), said because of the slow pace of vaccination, Việt Nam missed the beat of the world economy’s recovery in 2021. This might lead to the loss of relative advantage. Việt Nam’s vaccine rollout was relatively slow compared to other countries.

The pandemic outbreaks in 2021 slowed the country’s economy growth and caused supply chain disruptions and labour market disturbances. Domestic businesses had been severely hurt. In addition, geopolitical shifts and developments of the world economy might increase risks for businesses in terms of the price of raw material.

Thành said economic growth in the first nine months this year did not really reflect all the difficulties of the economy. The resistance of enterprises had declined, particularly businesses in the southern cities and provinces which were suffering great losses due to the fourth wave of COVID-19.

Phạm Thế Anh, Head of the Macroeconomics Department under the National Economics University, said the market demand had worsened due to the impact of the COVID-19 pandemic and goods circulation had also been severely affected.

Anh told participants that sooner or later, production costs would be reflected in the output prices such as expenses on gasoline, logistics, and costs of disease prevention. When social activities return to normal, consumer demand increases, the above factors would affect prices and put pressure on inflation. It was forecast that by the end of this year, the price of foodstuffs might rise due to difficulties in supply.

Thành forecast that the high growth scenario could be gained this year if all businesses reach adaption in terms of production and limit disruptions in goods supply as of the fourth quarter of 2021. With such a prediction, the country’s gross domestic product (GDP) could reach less than two per cent.

According to the expert the low growth scenario is that cities and provinces have not conducted synchronised measures in the fight against the pandemic. This will cause difficulties in goods circulation. This may lead to the disruption of contracts and production plans and a labour shortage. As a result, the country’s GDP can fluctuate at 0.2 per cent.

In order to ensure the country’s economic growth in the high growth scenario, the Government should speed up vaccination campaigns in cities and provinces and ensure smooth circulation of goods as well as work out fiscal packages for businesses and assist unemployed workers.

Provincial authorities are also required to offer jobs for those who had fled HCM City and nearby provinces of Bình Dương, Đồng Nai and Bình Phước several months ago due to the fourth COVID-19 wave that emerged in the country in late April. — VNS

Source: VNA
vietnamnews.vn

Related News

Lang Son: Bustling with exports at the beginning of the year

Lang Son: Bustling with exports at the beginning of the year

VCN - Lunar New Year Giap Thin 2024 is approaching. Bustling cargo trucks arriving at border gates in Lang Son province seem to paint a vivid picture of spring at the border.
Financial policy promotes green economic development

Financial policy promotes green economic development

VCN - To realize the goal of reducing net emissions to zero by 2050 as committed at COP26, Vietnam is urgently concretizing this commitment before the international community. Regarding the Finance sector, recently, the Ministry of Finance has promoted the completion of financial policies to concretize policies and create conditions for green economic development.
Solutions for safe international trade transactions

Solutions for safe international trade transactions

VCN - The increasingly strong trend of opening up international economic integration has been opening up many trade opportunities for the Vietnamese business community. This is an opportunity to promote the export of Vietnamese goods to potential markets around the world, but the larger the "playing field", the greater the associated risks. Around this issue, Mr. Hoang Minh Chien (photo), Deputy Director of the Department of Trade Promotion, Ministry of Industry and Trade, shared about solutions for businesses to exploit these opportunities.
Vietnam has the potential to achieve economic growth goals in 2024

Vietnam has the potential to achieve economic growth goals in 2024

VCN - According to Prof. Dr. Hoang Van Cuong, National Assembly Deputy, Vice Rector of the National Economics University, and Member of the Budget and Finance Committee of the National Assembly, in the difficult global context, along with the existing internal strengths and the ability to harness external resources, Vietnam has opportunities to achieve the economic growth goals set for 2024.

Latest News

Packaging among sectors with highest growth in Vietnam: insiders

Packaging among sectors with highest growth in Vietnam: insiders

The packaging industry, which is projected to expand 15-20% in the next few years, is among sectors posting highest growth rate in the country, experts said at a press conference held in Ho Chi Minh City on February 29 to introduce the 17th International Processing and Packaging Exhibition and Conference for Vietnam (ProPak Vietnam 2024.)
US extends investigations into wooden cabinets from Vietnam

US extends investigations into wooden cabinets from Vietnam

The US Department of Commerce (DOC) has announced the extension of the deadline to issue the final conclusion on the investigation of the product scope of wooden cabinets imported from Vietnam, according to the Trade Remedies Authority of Vietnam (TRAV).
Will Vietnam

Will Vietnam's seafood pass the IUU inspection in April 2024?

VCN - The 5th inspection on combating illegal, unreported, and unregulated (IUU) fishing in Vietnam by the EC is scheduled for April 2024. Localities are focusing on conclusively addressing existing limitations and restrictions, with an emphasis on implementing urgent tasks and solutions, particularly by April 30, 2024.
Fruit, vegetable exports see green shoots, targeting 7 billion USD

Fruit, vegetable exports see green shoots, targeting 7 billion USD

Vietnam’s fruit and vegetable exports in the first two months of this year surged 38% to about 749.7 million USD, which is expected to peak at nearly 7 billion USD this year.

More News

Tra fish leads Vietnam’s seafood exports to strong January growth

Tra fish leads Vietnam’s seafood exports to strong January growth

Vietnam's aquatic product exports saw a strong start to the year, recording a 60.8% annual increase to reach 730 million USD in January, reported the Ministry of Agriculture and Rural Development.
Agro-forestry-fishery trade surplus up nearly 2.9-fold

Agro-forestry-fishery trade surplus up nearly 2.9-fold

Vietnam earned some 9.84 billion USD from agro-forestry-fishery exports in the first two months of this year, representing a year-on-year rise of 50.3%, and a trade surplus of 2.68 billion USD, up nearly 2.9-fold, the Ministry of Agriculture and Rural Development reported.
3 recommendations of seafood businesses were promptly answered by the Ministry of Finance

3 recommendations of seafood businesses were promptly answered by the Ministry of Finance

VCN - Recommendations of seafood enterprises on declaring, calculating and paying Value Added Tax (VAT) at the commercial business stage for scrap and discarded products; Invoicing for returned goods; VAT refund, has been specifically answered by the Ministry of Finance.
Expected to catch up with the recovery of wood and furniture exports from trade promotion activities

Expected to catch up with the recovery of wood and furniture exports from trade promotion activities

VCN - With great interest from manufacturing businesses as well as international buyers, VIFA EXPO 2024 is expected to open opportunities for businesses to capture the ongoing recovery in the wooden furniture market, world furniture.
Falling rice price is only short-term, upward trend to continue: Experts

Falling rice price is only short-term, upward trend to continue: Experts

The recent falls in rice prices are only short-term and the upward trend will continue in 2024 on limited supply, providing significant opportunities for Vietnam’s rice export, analysts have said.
Businesses urged to seize opportunities to boost rice exports to Indonesia

Businesses urged to seize opportunities to boost rice exports to Indonesia

Vietnamese enterprises should seize the opportunities to increase rice exports to Indonesia which has allocated an additional rice import quota of 1.6 million tonnes for 2024 as dryness linked to the El Nino delayed harvest in the country, according to the Vietnam Trade Office in Indonesia.
Vietnam eyes semiconductor powerhouse status with new workforce scheme

Vietnam eyes semiconductor powerhouse status with new workforce scheme

By 2045, Vietnam will become an important link in the global semiconductor industry value chain with a contingent of engineers and experts capable of meeting the industry requirements in both quality and quantity, said Minister of Planning and Investment Nguyen Chi Dung.
Vietnam’s FDI inflow surges nearly 39% in two months

Vietnam’s FDI inflow surges nearly 39% in two months

Vietnam has attracted more than 4.29 billion USD in foreign direct investment (FDI) in the first two months of 2024, a year-on-year increase of 38.6%, according to the Ministry of Industry and Trade (MoIT)’s Foreign Trade Agency.
Busy export shipments in early spring at southern seaports

Busy export shipments in early spring at southern seaports

VCN - Thousands of containers of export goods left Vietnamese seaports in the early days of Giap Thin spring have marked prosperity and expectations for a successful year.
Read More

Your care

Latest Most read
Packaging among sectors with highest growth in Vietnam: insiders

Packaging among sectors with highest growth in Vietnam: insiders

The packaging industry, which is projected to expand 15-20% in the next few years, is among sectors posting highest growth rate in the country, experts said at a press conference held in Ho Chi Minh City on February 29 to introduce the 17th International Processing and Packaging Exhibition and Conference for Vietnam (ProPak Vietnam 2024.)
US extends investigations into wooden cabinets from Vietnam

US extends investigations into wooden cabinets from Vietnam

The US Department of Commerce (DOC) has announced the extension of the deadline to issue the final conclusion on the investigation of the product scope of wooden cabinets imported from Vietnam, according to the Trade Remedies Authority of Vietnam (TRAV).
Will Vietnam

Will Vietnam's seafood pass the IUU inspection in April 2024?

The 5th inspection on combating illegal, unreported, and unregulated (IUU) fishing in Vietnam by the EC is scheduled for April 2024
Fruit, vegetable exports see green shoots, targeting 7 billion USD

Fruit, vegetable exports see green shoots, targeting 7 billion USD

Vietnam’s fruit and vegetable exports in the first two months of this year surged 38% to about 749.7 million USD, which is expected to peak at nearly 7 billion USD this year.
Tra fish leads Vietnam’s seafood exports to strong January growth

Tra fish leads Vietnam’s seafood exports to strong January growth

Vietnam's aquatic product exports saw a strong start to the year, recording a 60.8% annual increase to reach 730 million USD in January, reported the Ministry of Agriculture and Rural Development.
Mobile Version