Positive economic recovery following two years of COVID-19 impact

According to experts, Vietnamese GDP in the first quarter of this year reaching over 5% can be viewed as a very positive signal for the local economy, showing that the national economy is on the right track for recovery moving forward after two consecutive years suffering the adverse impacts of the COVID-19 pandemic.

Statistics detailed by the General Statistics Office (GSO) in the first quarter of this year indicate that the country’s GDP was estimated to have expanded by 5.03% over the same period last year, higher than the growth rates of 4.72% and 3.66% recorded in the same quarters of 2021 and 2020.

Furthermore, industrial production in the first quarter continued to prosper, with added value of the entire sector growing by 7.07% on year. This is in addition to the agriculture, forestry and fishery sector increasing by 2.45%, the industry and construction sector soaring by 6.38%, and the service sector rising by 4.58%.

At present, consumer activities are gradually regaining growth momentum thanks to flexible and effective anti-pandemic measures being put in place.

Nguyen Trung Tien, deputy director general of the GSO, highlighted the first quarter's GDP as a very positive signal, with growth seen across all industries and fields. This shows that the economic recovery under the Government’s Resolution 128 on safe and flexible adaption to and effective control of the COVID-19 pandemic has proved to be effective so far, thereby ensuring socio-economic development moving forward.

Sharing this view, according to economic expert Hoang Van Cuong, the Vietnamese economy is showing signs of a rapid recovery. Accordingly, up to 25,600 enterprises returned to operation, up 73.6% over the same period from last year.

Most notably, the amount of capital in newly-established and existing enterprises has increased, displaying their readiness for business activities, as well as production expansion.

This success is the combined result of all three factors, firstly, business support policies and tax extension, delay, and exemption measures which have helped local businesses escape from bearing the burden in order to make all-out efforts for the purpose of economic recovery.

The second factor is the fiscal-monetary policy package, which has just been approved by the National Assembly and issued by the Government. This has a direct impact on the economic recovery process, with the most typical example being tax reduction and consumption stimulation.

The third factor is the country’s consistent efforts in pursuing an open-door policy, Cuong concluded.